To estimate the S&P-adjusted debt-to-EBITDA ratio for Veolia Environnement for the fiscal year ended December 31, 2022, we follow the workflow outlined below.

### Step 1: Identify the Relevant Industry

Veolia Environnement is a global leader in optimized resource management, providing water, waste, and energy services. While it has regulated utility components (water distribution, district heating), it also has significant unregulated activities (waste management, energy services, industrial solutions). In S&P Global Ratings' methodology, diversified utilities or those with significant unregulated exposure often fall under **Regulated Utilities** if the regulated portion is dominant and stable, or **Unregulated Power and Gas** / General Corporate if not. However, Veolia is typically assessed under the **Regulated Utilities** methodology due to the essential nature of its water and waste services and the regulatory frameworks governing them, or potentially a hybrid approach. Given the prompt provides specific methodologies for "Regulated Utilities," "Oil And Gas," "Unregulated Power And Gas," and "Transportation Infrastructure," Veolia fits best within the **Regulated Utilities** sector description ("Companies that provide an essential or near-essential infrastructure product... subject to comprehensive regulation"). Even if considered a diversified utility, the baseline corporate adjustments for debt and EBITDA are the primary drivers, with specific adjustments for leases and hybrids.

### Step 2: Estimate Adjusted Debt

The baseline formula for Adjusted Debt is:
`Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash`

**1. Reported Debt:**
We identify interest-bearing financial liabilities from the balance sheet items provided for 2023-01-01 (end of fiscal year 2022).
*   Noncurrent Financial Liabilities Excluding Concession Liabilities: 19,692,100,000 EUR
*   Current Financial Liabilities Excluding Concession Liabilities: 6,521,400,000 EUR
*   Noncurrent Concession Liabilities: 1,680,500,000 EUR
*   Current Concession Liabilities: 243,200,000 EUR
*   Bank Overdrafts And Other Cash Position Items: 213,600,000 EUR (Usually treated as debt)

Total Reported Financial Debt = 19,692.1 + 6,521.4 + 1,680.5 + 243.2 + 213.6 = **28,350.8 million EUR**

**2. Leases:**
S&P typically capitalizes operating leases or includes lease liabilities in debt.
*   Noncurrent Lease Liabilities: 1,656,200,000 EUR
*   Current Lease Liabilities: 496,500,000 EUR
Total Lease Liabilities = 1,656.2 + 496.5 = **2,152.7 million EUR**

**3. Hybrid Debt:**
S&P often treats a portion of hybrid securities as debt. The item "Titres Super Subordonnes A Duree Indeterminee" (Perpetual Subordinated Securities) is listed under Equity in the provided data ("Equity" section includes "Deeply Subordinated Securities Member"). However, for credit ratio calculations, S&P typically reclassifies 100% or 50% of hybrids to debt depending on their equity credit assessment. In many standard S&P calculations for utilities, if not specified, we might treat the full amount as debt or apply a standard equity credit (e.g., 50% equity credit means 50% is debt). Let's look at the value:
*   Titres Super Subordonnes A Duree Indeterminee (2023-01-01): 3,496,300,000 EUR.
*   S&P methodology for Regulated Utilities often grants 50% equity credit to hybrids with strong features, meaning 50% is treated as debt. Without specific rating details, a conservative standard adjustment is to include 50% of hybrids in debt. However, many simplified "Adjusted Debt" calculations in this context might include the full amount if they are mandatory redeemable or if the prompt implies a standard corporate baseline where hybrids are often debt-like. Let's assume a standard 50% equity credit (50% debt inclusion) which is common for investment-grade utilities, or check if "Baseline" implies 100%. The prompt says "hybrid_debt_portion". Let's assume 50% is treated as debt for S&P adjusted metrics for a utility like Veolia.
    *   Hybrid Debt Portion = 50% * 3,496.3 = **1,748.15 million EUR**.
    *   *Alternative*: If treated as 100% debt (more conservative/standard for "debt-like"), it would be 3,496.3. Let's look at the "Equity" section. It is explicitly listed as a component of Equity. S&P adjusts this. Let's stick with the 50% convention for high-quality hybrids, or 100% if they lack equity features. Given the "Super Subordinated" nature, they likely have equity features. Let's use 50% debt inclusion.

**4. Pension Deficit:**
The provided facts do not explicitly list a "Net Pension Liability" or "Pension Deficit". We see "Noncurrent Provisions" (2,844.4 million) and "Current Provisions" (1,015.3 million). These likely include environmental and restructuring provisions. Without a specific breakdown of pension deficits, we cannot add a specific pension adjustment. We will assume the pension deficit is netted within provisions or is not material enough to be separately identified from the given line items, or that the "Provisions" are not purely pension. In absence of specific "Pension Liability" data, we omit this or assume it's zero for the calculation based *strictly* on provided facts.

**5. Eligible Cash:**
S&P allows the deduction of unrestricted cash and cash equivalents.
*   Cash And Cash Equivalents (2023-01-01): 9,012,200,000 EUR.
*   Bank Overdrafts were added to debt, so we deduct the gross cash.
*   Eligible Cash = **9,012.2 million EUR**.

**Calculation of Adjusted Debt:**
Adjusted Debt = (Reported Financial Debt + Lease Liabilities + Hybrid Debt Portion) - Eligible Cash
Reported Financial Debt (incl overdrafts) = 28,350.8
Lease Liabilities = 2,152.7
Hybrid Debt (50%) = 1,748.15
Total Debt Components = 28,350.8 + 2,152.7 + 1,748.15 = 32,251.65 million EUR
Less Eligible Cash = 9,012.2 million EUR
**Adjusted Debt = 23,239.45 million EUR**

*(Note: If 100% of hybrids were included, Adjusted Debt would be higher by ~1,748m. If 0%, lower. 50% is a standard S&P assumption for such instruments in utilities unless stated otherwise.)*

### Step 3: Estimate Adjusted EBITDA

The baseline formula is:
`Adjusted_EBITDA = EBITDA + adjustment_leases + nonrecurring_losses - nonrecurring_gains ...`

**1. Calculate Reported EBITDA:**
We can reconstruct EBITDA from the Income Statement data for the period 2022-01-01 to 2023-01-01.
*   Operating Income Before Share of Net Income/Loss of Equity Accounted Entities: 2,206,300,000 EUR
*   Add: Operating Depreciation, Amortization, Provisions, and Impairment Losses: 3,178,600,000 EUR
*   Reported EBITDA (Operating) = 2,206.3 + 3,178.6 = **5,384.9 million EUR**

*Verification via Net Income:*
*   Profit Loss From Continuing Operations: 1,076.2
*   Add: Income Tax: 419.8
*   Add: Net Finance Costs: 632.7
*   Add: Share of Net Income of Equity Accounted Entities (Core): 127.0 (This is usually included in Operating Income in some formats, but here "Operating Income Before Share..." excludes it. The line "Resultat Operationnel Apres Quote Part..." is 2,333.3. Let's stick to the Operating Income line provided).
*   The line "Operating Income Before Share Of Net Income Loss Of Equity Accounted Entities" is 2,206.3.
*   Add back D&A: 3,178.6.
*   EBITDA = 5,384.9 million EUR.

**2. Adjustments:**
*   **Lease Adjustment:** S&P often adds back the interest portion of lease expenses to EBITDA if they are capitalized in debt, or simply uses EBITDA as reported if leases are already expensed in Operating Income. In IFRS, lease depreciation and interest are separate. The "Operating Depreciation..." line likely includes depreciation on Right-of-Use assets. The "Net Finance Costs" includes interest on leases. S&P Adjusted EBITDA typically adds back the interest on leases to maintain consistency with the debt inclusion.
    *   Interest on Lease (from Cash Flow or Notes): The data provides "Interest On Lease" under financing/cash flow sections? No, it lists "Interest On Lease" in the list: **52,500,000 EUR** (52.5 million).
    *   Add back Interest on Leases: **+52.5 million EUR**.
*   **Share of Joint Ventures/Associates:** S&P often adjusts EBITDA to include the proportional EBITDA of equity-accounted entities rather than just the share of net income. However, without specific EBITDA data for JVs, we might stick to the reported EBITDA and add back the share of net income if it was excluded, or make no adjustment if data is missing. The Operating Income line *excludes* the share of equity entities. The share of net income is 127.0 million. To get a "Group EBITDA" comparable to the debt, we should ideally include the underlying EBITDA of JVs. Lacking that, a common proxy is to add back the Share of Net Income of Equity Accounted Entities to the Operating Income before adding D&A, or simply leave it if the "Operating Income" is the standard metric.
    *   Let's check the definition. "Operating Income Before Share..." is 2,206.3.
    *   If we add the Share of Net Income (127.0), we get 2,333.3 (which matches "Resultat Operationnel Apres Quote Part...").
    *   Then add D&A (3,178.6).
    *   Adjusted EBITDA base = 2,333.3 + 3,178.6 = 5,511.9 million EUR.
    *   This effectively includes the earnings contribution of JVs.
*   **Non-recurring items:** The data lists "Gains Losses On Disposal Of Operating Assets": -299,000,000 EUR (Loss). This is a non-recurring loss. We add it back.
    *   Add back Loss on Disposal: **+299.0 million EUR**.
    *   There is also "Plus Ou Moins Values De Cessions Dactifs Financiers": -370,000,000 EUR. This is a financial item, usually below EBITDA, but if it's considered part of normalized earnings, it might be adjusted. However, EBITDA is pre-interest and pre-tax. Gains/losses on financial assets are usually below Operating Income. The Operating Income line is 2,206.3. The disposal loss of operating assets (-299m) is likely included in "Other Operating Income Expense" (-769.2m).
    *   Let's verify: Other Operating Income Expense is -769.2. If we add back the 299 loss, the normalized operating expense is lower.
    *   So, Adjusted EBITDA = Reported EBITDA + Add-backs.
    *   Reported EBITDA (from Ops Inc before JV) = 5,384.9.
    *   Add: Share of JV/Assoc Net Income (to reflect full economic earnings): 127.0.
    *   Add: Loss on Disposal of Operating Assets (Non-recurring): 299.0.
    *   Add: Interest on Leases (Financing cost add-back for EBITDA consistency with Debt): 52.5.
    *   Total Adjusted EBITDA = 5,384.9 + 127.0 + 299.0 + 52.5 = **5,863.4 million EUR**.

*(Self-Correction/Refinement)*:
Standard S&P EBITDA for utilities often starts with Operating Income.
Operating Income (after JV share) = 2,333.3.
Add: D&A = 3,178.6.
Subtotal = 5,511.9.
Add: Non-recurring operating losses (Loss on disposal of operating assets) = 299.0.
Add: Interest on Leases (if not in EBITDA, which it isn't, it's in Finance) = 52.5.
Total = 5,511.9 + 299.0 + 52.5 = 5,863.4 million EUR.

Are there other adjustments?
"Other Operating Income Expense" is -769.2. The loss on disposal is 299. The remaining ~470 might be other items. Without detail, we assume they are recurring or not specified as non-recurring.
The "Gains Losses On Disposal Of Operating Assets" is explicitly listed.

Let's check the Hybrid Coupon. The coupon on deeply subordinated securities is 88.3 million. This is a finance cost. It is not added back to EBITDA.

So, **Adjusted EBITDA ≈ 5,863.4 million EUR**.

### Step 4: Calculate the Ratio

Adjusted Debt = 23,239.45 million EUR
Adjusted EBITDA = 5,863.4 million EUR

Ratio = 23,239.45 / 5,863.4 ≈ 3.963

Let's double check the Hybrid Debt treatment. If S&P treats the hybrids as 100% debt (common for "Super Subordinated" if they don't meet strict equity criteria, or if the user wants a conservative "Debt" estimate):
Hybrid Debt = 3,496.3.
Adj Debt = 28,350.8 + 2,152.7 + 3,496.3 - 9,012.2 = 24,987.6.
Ratio = 24,987.6 / 5,863.4 ≈ 4.26.

If S&P treats hybrids as 0% debt (pure equity):
Adj Debt = 28,350.8 + 2,152.7 - 9,012.2 = 21,491.3.
Ratio = 21,491.3 / 5,863.4 ≈ 3.66.

Veolia's hybrids (OCEANE/TSSDI) are often given 50% equity credit by rating agencies. Let's stick with the 50% assumption (1,748.15 debt portion).

Let's re-evaluate the Cash.
"Cash And Cash Equivalents" 2023-01-01: 9,012,200,000.
"Bank Overdrafts" 2023-01-01: 213,600,000.
Net Cash position in balance sheet is often presented net. But for S&P, we gross up debt and deduct eligible cash.
Debt includes overdrafts. Cash deduction is the gross cash.
This is correct.

Let's re-evaluate EBITDA.
Is the "Share of Net Income" of JVs added back?
S&P prefers "Proportionate Consolidation" for EBITDA if possible. If not, adding the share of net income is a partial proxy, but it misses the D&A and Tax of the JVs. However, without JV-specific EBITDA, adding the net income share is the standard "best effort" adjustment to include their contribution in the earnings metric corresponding to the debt (which is consolidated).
Actually, if Debt is consolidated (100% of parent debt + share of JV debt? No, usually consolidated debt includes 100% of sub debt, but JV debt is equity method so not in debt).
Wait. "Investments In Joint Ventures Accounted For Using Equity Method". This means the JV debt is **not** on Veolia's balance sheet. Therefore, the Adjusted Debt calculated above (23.2bn) does **not** include JV debt.
Consequently, the EBITDA should ideally only include the parent's share of JV earnings (which is what the Share of Net Income is) to match the debt scope? Or should we deconsolidate?
S&P usually calculates ratios on a consolidated basis. For equity-method JVs, the debt is not included. The earnings included are the "Share of Net Income".
So, including the 127m Share of Net Income in the EBITDA proxy is appropriate to match the earnings stream available to service the *consolidated* debt (which excludes JV debt).
However, EBITDA is an operating metric. The Share of Net Income is after tax and interest of the JV. Adding it to EBITDA is a mismatch (adding after-tax/interest income to pre-tax/interest earnings).
A better proxy for "Adjusted EBITDA" in the absence of JV EBITDA data is to just use the Consolidated Operating EBITDA (Parent + Subsidiaries) and ignore the JV income, OR assume the JV income is a dividend-like flow.
Given the magnitude (127m vs 5,384m), the impact is small (~2%).
Let's look at the "Resultat Operationnel Apres Quote Part..." (Operating Result after share of equity entities). This is 2,333.3.
If we use this as the starting point for "Operating Income", and add back D&A (3,178.6), we get 5,511.9.
This 5,511.9 includes the JV net income share.
Then we add back non-recurring losses (299) and Lease Interest (52.5).
Total = 5,863.4.

Let's consider if "Concession Liabilities" should be treated as debt. Yes, they are financial liabilities. Included.

Let's consider if "Eligible Cash" should be reduced by restricted cash. We don't have that breakdown. We assume all cash is eligible.

Recalculating with precision:
**Adjusted Debt:**
Noncurrent Fin Liab (excl Concession): 19,692.1
Current Fin Liab (excl Concession): 6,521.4
Noncurrent Concession Liab: 1,680.5
Current Concession Liab: 243.2
Bank Overdrafts: 213.6
Leases (Noncurrent + Current): 1,656.2 + 496.5 = 2,152.7
Hybrids (50% of 3,496.3): 1,748.15
Total Debt Gross = 19,692.1 + 6,521.4 + 1,680.5 + 243.2 + 213.6 + 2,152.7 + 1,748.15 = 32,251.65
Less Cash: 9,012.2
Net Adjusted Debt = 23,239.45

**Adjusted EBITDA:**
Op Income (after JV share): 2,333.3
Add D&A: 3,178.6
Add Loss on Disposal (Op): 299.0
Add Lease Interest: 52.5
Total Adj EBITDA = 5,863.4

**Ratio:**
23,239.45 / 5,863.4 = 3.9634...

Rounding to two decimal places: 3.96

<answer>3.96</answer>