I'll work through this step-by-step for VERBUND AG.

## Step 1: Identify the relevant industry

VERBUND AG is an Austrian energy company primarily focused on hydropower generation and electricity transmission/distribution. It has both regulated (grid) and unregulated (generation/trading) operations. Given its mix, it falls primarily under **Unregulated Power and Gas** with some regulated utility components. I'll apply the general corporate methodology with sector-specific considerations.

## Step 2: Estimate Adjusted EBITDA

**Reported EBITDA (2022):** 3,160,679,000 EUR

**Adjustments:**

1. **Lease adjustment:** Right-of-use assets exist (146,613M at end 2022). S&P typically adds back depreciation of ROU assets and adds an imputed lease cost. The lease payments per the financing activities = 11,447,000 EUR. For S&P, operating lease adjustments add the lease depreciation to EBITDA. Since EBITDA already excludes depreciation (including ROU depreciation), I need to consider the operating lease rental expense that may have been reclassified. Under IFRS 16, the lease expense is split into depreciation and interest - both excluded from EBITDA. S&P adds back the full lease payment to EBITDA as an operating lease adjustment. The lease payment = ~11,447,000 (from cash flow). However, this is already largely captured. S&P's approach: add lease depreciation back (already in EBITDA since D&A is excluded) and add the full lease payment. Net adjustment ≈ lease payment of ~11,447,000.

2. **Non-recurring items:** The impairment loss of 197,761,000 and reversal of 125,973,000 are already excluded from EBITDA (they appear below EBITDA). The "Valuation and Realisation of Energy Derivatives" of -857,961,000 is included in EBITDA - this relates to mark-to-market on derivatives, which S&P may normalize. However, this is a recurring feature of the business for energy companies, so I'll leave it.

3. **Pension adjustments:** S&P adjusts for pension service costs vs. cash contributions. Without specific data, I'll use a modest estimate. The remeasurement gains of 172,041,000 are in OCI, not EBITDA, so no adjustment needed there.

**Adjusted EBITDA ≈ 3,160,679,000 + 11,447,000 ≈ 3,172,126,000 EUR**

## Step 3: Estimate FFO

**Cash interest paid:** 36,100,000 EUR (from cash flow statement)
**Cash taxes paid:** 343,100,000 EUR (from cash flow statement)

S&P's FFO also adjusts interest for lease interest. The lease payments of 11,447,000 include an interest component. I'll estimate lease interest at ~3,000,000 (rough estimate given the ROU asset size and typical rates).

**FFO = Adjusted_EBITDA - cash_interest - cash_taxes**
**FFO = 3,172,126,000 - 36,100,000 - 343,100,000 = 2,792,926,000 EUR**

## Step 4: Estimate Adjusted Debt

**Reported debt:**
- Non-current financial liabilities: 2,844,559,000
- Current financial liabilities: 1,109,297,000
- Total reported debt = 3,953,856,000

**Lease liabilities:** ROU assets of ~146,613,000; lease liabilities approximately similar. S&P capitalizes operating leases. Estimated at ~146,613,000.

**Pension deficit:** Non-current provisions include pensions. The provisions are 619,486,000 (non-current) + 50,855,000 (current). Not all are pension-related, but pension obligations are significant. Given remeasurement gains of 172,041,000, I'll estimate pension deficit at ~300,000,000.

**Cash adjustment:** S&P typically nets surplus cash. Cash = 409,252,000. I'll assume some portion is operational; net ~350,000,000 as surplus cash.

**Adjusted_Debt = 3,953,856,000 + 146,613,000 + 300,000,000 - 350,000,000 = 4,050,469,000 EUR**

## Step 5: Calculate FFO / Adjusted_Debt

**FFO / Adjusted_Debt = 2,792,926,000 / 4,050,469,000 = 0.6895**

Reviewing for reasonableness - VERBUND had an exceptional year in 2022 with very high electricity prices. This high ratio is consistent with strong cash generation.

<answer>0.6895</answer>