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

### Step 1: Identify the Relevant Industry

HERA S.P.A. is described in the facts as a "società per azioni (Spa)" domiciled in Italy, with the name of the reporting entity being "Gruppo Hera". The revenue and expense structure (Raw Materials, Services, Employee Benefits) and the asset base (Property Plant and Equipment, Intangible Assets) are consistent with a utility company. Specifically, Hera is a multi-utility company operating in the water, gas, and power sectors. According to the provided text, "Multi-utilities" fall under the **Regulated Utilities** sector description. Therefore, we apply the Regulated Utilities methodology.

### Step 2: Estimate Adjusted EBITDA

The baseline formula for Adjusted EBITDA is:
`Adjusted_EBITDA = EBITDA (reported or reconstructed) + adjustment_leases + nonrecurring_losses - nonrecurring_gains ± pension_adjustments ± joint_venture_proportional_EBITDA ± other_normalization_adjustments`

First, we reconstruct EBITDA from the Income Statement data for the period 2022-01-01 to 2023-01-01:
*   **Profit Loss From Operating Activities (EBIT):** 533,800,000 EUR
*   **Amortisation Depreciation And Provisions:** 667,100,000 EUR

Note: The line item "Amortisation Depreciation And Provisions" typically includes depreciation and amortization. In S&P calculations, we add back D&A to EBIT to get EBITDA. The "Provisions" part might need scrutiny, but usually, the cash flow statement adjustments clarify the non-cash nature. Let's look at the Cash Flow from Operations (CFO) indirect method data to verify the add-backs.
*   Cash Flows From Used In Operations Before Changes In Working Capital: 1,202,000,000 EUR.
*   This figure is derived from Net Profit + Adjustments.
*   Let's stick to the standard reconstruction: EBITDA = EBIT + Depreciation & Amortization.
*   EBIT = 533,800,000 EUR.
*   D&A = 667,100,000 EUR.
*   **Reported EBITDA** = 533,800,000 + 667,100,000 = **1,200,900,000 EUR**.

Now, we apply adjustments based on S&P Regulated Utilities guidelines:
1.  **Leases:** S&P typically adds back lease expenses included in EBITDA if they are treated as operating leases in accounting but debt-like for credit analysis, or adjusts EBITDA to be consistent with the debt definition. However, the standard S&P FFO definition starts with EBITDA. For utilities, lease liabilities are often included in Adjusted Debt. The EBITDA itself usually remains as reported unless there are specific non-recurring items. The prompt asks for `adjustment_leases`. In IFRS 16, lease depreciation and interest are separated. The "Amortisation Depreciation And Provisions" likely includes right-of-use asset depreciation. The "Finance Costs" include lease interest. S&P often adds back the implied interest portion of lease payments to EBITDA if it was deducted, but under IFRS 16, EBITDA already excludes lease interest (which is below EBIT) and includes ROU depreciation (added back). So, Reported EBITDA is generally a good starting point. We will assume no specific non-recurring lease adjustments are needed beyond standard treatment.
2.  **Non-recurring items:** The facts do not explicitly label any items as non-recurring. We assume the reported figures are recurring.
3.  **Joint Ventures:** The "Share Of Profit Loss Of Associates And Joint Ventures" is 10,000,000 EUR. This is included in the Profit Before Tax but is *not* part of Operating Profit (EBIT) in many formats, or it is separate. In the provided data, "Profit Loss From Operating Activities" is 533.8M. Then "Share of Profit... Associates" is 10M. Then Finance Income/Cost. Then Profit Before Tax.
    *   Check: 533.8 + 10 - 125 (Net Finance Cost) = 418.8? No, Profit Before Tax is 408.8.
    *   Let's check the math: 533.8 (Op Profit) + 10 (Assoc) - 125 (Net Fin) = 418.8. The reported PBT is 408.8. There is a 10M difference. Perhaps "Other Expense" or similar.
    *   Regardless, S&P FFO usually focuses on the core operating cash generation. For joint ventures accounted for using the equity method, S&P often adds back the share of profit (if included in EBITDA/EBIT) and subtracts dividends received, or treats them proportionally. However, a simpler and common approximation for FFO in utilities when detailed JV data is missing is to use the consolidated EBITDA and adjust debt. Given the small size (10M) relative to the total, and lack of specific JV EBITDA data, we will proceed with the consolidated EBITDA.
4.  **Pension Adjustments:** No specific pension deficit or surplus adjustment data is provided other than "Noncurrent Provisions For Employee Benefits". We will assume no significant non-cash pension adjustment to EBITDA is required beyond what's in the reported numbers.

So, **Adjusted EBITDA** ≈ **1,200,900,000 EUR**.

*Self-Correction/Refinement:* Let's look at the Cash Flow statement provided.
"Cash Flows From Used In Operations Before Changes In Working Capital" is 1,202,000,000 EUR.
This figure is effectively EBITDA adjusted for non-cash items included in operating profit (like provisions changes) and excluding working capital changes.
S&P FFO is often approximated as CFO before working capital changes minus cash interest and cash taxes? No, FFO is typically Net Income + D&A + other non-cash items.
Let's use the standard S&P definition: `FFO = Net Income + Depreciation & Amortization + Deferred Taxes + Other Non-Cash Items`.
Alternatively, `FFO = Adjusted EBITDA - Cash Interest - Cash Taxes`.

Let's calculate Cash Interest and Cash Taxes.
*   **Cash Interest:** The Income Statement shows "Finance Costs" of 217,200,000 EUR and "Finance Income" of 82,200,000 EUR. Net Finance Cost = 135,000,000 EUR.
    However, the Cash Flow statement provides:
    *   "Finance Income Received Classified As Operating Activities": 41,800,000 EUR
    *   "Finance Costs Paid Classified As Operating Activities": 128,000,000 EUR
    *   Net Cash Interest Paid = 128,000,000 - 41,800,000 = **86,200,000 EUR**.
    *   Note: S&P usually uses gross cash interest paid for coverage, but for FFO calculation (which is a funds flow metric), we subtract the cash outflow for interest. The formula `FFO = Adjusted EBITDA - Cash Interest - Cash Taxes` implies subtracting the cash paid.

*   **Cash Taxes:**
    *   Income Tax Expense (P&L): 103,500,000 EUR.
    *   "Income Taxes Paid Classified As Operating Activities": **165,900,000 EUR**.
    *   We use the cash paid figure for the FFO calculation as per the formula `FFO = ... - Cash Taxes`.

So, using the formula:
`FFO = Adjusted EBITDA - Cash Interest Paid - Cash Taxes Paid`
`FFO = 1,200,900,000 - 86,200,000 - 165,900,000`
`FFO = 948,800,000 EUR`.

Let's double check this FFO estimate against the "Funds From Operations" concept.
Net Income = 305,300,000.
Add back D&A = 667,100,000.
Add back Deferred Tax?
Change in Deferred Tax Assets: 229.4 -> 240.4 (Increase of 11.0M, use of cash/non-cash expense?)
Change in Deferred Tax Liabilities: 132.1 -> 215.7 (Increase of 83.6M, source of cash/non-cash benefit?)
Net Deferred Tax Benefit/Liability increase = 83.6 - 11.0 = 72.6M.
Tax Expense (103.5) = Current Tax + Deferred Tax.
Current Tax Expense ≈ Tax Paid (165.9) + Change in Tax Payables/Receivables.
Change in Current Tax Assets: 21.2 -> 46.0 (Increase 24.8M).
Change in Current Tax Liabilities: 27.9 -> 17.1 (Decrease 10.8M).
Current Tax Expense ≈ Paid (165.9) + Increase in Asset (24.8) + Decrease in Liability (10.8) = 201.5M? This seems high compared to Total Tax Expense of 103.5M.
Actually, Tax Expense (103.5) = Current Tax Expense + Deferred Tax Expense.
If Deferred Tax Liability increased by 83.6M and Asset increased by 11.0M, the net Deferred Tax *Benefit* (reduction in expense) is roughly 72.6M? Or is it an expense?
Increase in DTL is a credit to P&L (benefit). Increase in DTA is a debit to P&L (expense).
Net Deferred Tax Benefit = 83.6 - 11.0 = 72.6M.
Current Tax Expense = Total Tax (103.5) - Deferred Tax Benefit (-72.6)? No.
Total Tax = Current + Deferred.
103.5 = Current + (Change in DTL - Change in DTA)?
Usually, Deferred Tax Expense = Change in DTL - Change in DTA.
If DTL goes up, it's a benefit (negative expense). If DTA goes up, it's an expense.
Let's assume the standard reconciliation:
FFO ≈ Net Income + D&A + Deferred Taxes + Other Non-Cash.
FFO ≈ 305.3 + 667.1 + (Deferred Tax Adjustment).
If we use the Cash Flow approach:
CFO before working capital = 1,202.0M.
This includes interest and taxes paid?
"Cash Flows From Used In Operating Activities" = 35.7M.
This is after interest and taxes paid and working capital changes.
Working Capital Change = -927.6M (Increase in WC is a use of cash, so negative flow).
So, CFO before WC = CFO + WC Change = 35.7 + (-927.6)? No.
The line "Increase Decrease In Working Capital" is -927,600,000.
In the indirect method: CFO = Operating Cash Flow before WC + Change in WC.
35.7M = 1,202.0M + (-927.6M) - Interest Paid? - Taxes Paid?
Let's check the structure of the provided Cash Flow data.
"Cash Flows From Used In Operations Before Changes In Working Capital" = 1,202,000,000.
Then adjustments for WC: -927,600,000.
Then "Dividends Received...", "Finance Income Received...", "Finance Costs Paid...", "Income Taxes Paid...".
Usually, "Cash Flows From Operations" (CFO) in IFRS can present interest and taxes as operating, investing, or financing. Here they are listed separately after the WC adjustment, implying they are deducted from the "Operations Before WC" figure to arrive at the final "Cash Flows From Used In Operating Activities".
Let's verify:
1,202.0 (Op Before WC)
+ (-927.6) (WC Change)
+ 13.4 (Div Rec)
+ 41.8 (Fin Inc Rec)
- 128.0 (Fin Cost Paid)
- 165.9 (Tax Paid)
= 1,202.0 - 927.6 + 13.4 + 41.8 - 128.0 - 165.9
= 274.4 + 13.4 + 41.8 - 128.0 - 165.9
= 329.6 - 128.0 - 165.9
= 201.6 - 165.9
= 35.7M.
This matches the reported "Cash Flows From Used In Operating Activities" of 35,700,000 EUR.

So, the figure **1,202,000,000 EUR** represents the Operating Cash Flow before Working Capital changes, but *after* adding back non-cash items to Net Income?
Actually, "Cash Flows From Used In Operations Before Changes In Working Capital" is typically defined as Net Income + Non-Cash Adjustments (D&A, Provisions, etc.) +/- Non-Operating items.
Does it include Interest and Taxes?
In many IFRS indirect presentations, the starting point is Profit Before Tax or Net Income.
If it starts from Net Income, Interest and Taxes are already deducted.
If it starts from EBITDA, Interest and Taxes are not deducted.
Given that "Finance Costs Paid" and "Income Taxes Paid" are listed *below* the WC adjustment in the summation to reach final CFO, it implies that the 1,202M figure **does not** deduct cash interest and cash taxes. It is effectively an EBITDA-like proxy adjusted for non-cash operating items.
Therefore, `Adjusted EBITDA` can be approximated by this 1,202M figure, or our calculated 1,200.9M. They are very close. We will use **1,202,000,000 EUR** as the robust "Funds from Operations before Interest and Taxes" proxy.

Thus:
`FFO = 1,202,000,000 - Cash Interest Paid - Cash Taxes Paid`
`FFO = 1,202,000,000 - 128,000,000 (Interest Paid) + 41,800,000 (Interest Received)?`
Wait, the formula `FFO = Adjusted EBITDA - Cash Interest - Cash Taxes` usually refers to net cash interest.
S&P defines FFO as funds available to service debt. Interest received is a cash inflow. Interest paid is an outflow.
Net Cash Interest = Paid - Received = 128.0 - 41.8 = 86.2M.
Cash Taxes Paid = 165.9M.

`FFO = 1,202,000,000 - 86,200,000 - 165,900,000`
`FFO = 949,900,000 EUR`.

Let's refine the "Adjusted EBITDA" vs the 1,202M figure.
The 1,202M figure is "Cash Flows From Used In Operations Before Changes In Working Capital".
This is effectively `EBITDA + Non-Cash Operating Items - Cash Interest? - Cash Taxes?`
Since Interest and Taxes are deducted *later* in the provided cash flow bridge, the 1,202M figure **excludes** the deduction of Interest and Taxes.
So, 1,202M is a pre-interest, pre-tax operating cash flow measure.
Is it exactly Adjusted EBITDA?
EBITDA was 1,200.9M.
The difference is 1.1M. This could be due to "Share of profit of associates" (10M) or other non-cash items like "Allocation to Provisions" (188.5M) vs "Amortisation Depreciation And Provisions" (667.1M).
The Cash Flow adjustment "Allocation To Provisions" is 188.5M.
The P&L "Amortisation Depreciation And Provisions" is 667.1M.
The difference suggests that the "Provisions" in the P&L line might include non-cash provisions that are added back in CF.
Given the closeness, using 1,202M as the starting "Operating Cash Generation" is reasonable.

So, **FFO = 949,900,000 EUR**.

### Step 3: Estimate Adjusted Debt

Formula: `Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash`

1.  **Reported Debt:**
    *   Noncurrent Financial Liabilities: 5,689,900,000 EUR
    *   Current Financial Liabilities: 650,100,000 EUR
    *   Total Reported Financial Debt = 5,689.9 + 650.1 = **6,340,000,000 EUR**.

2.  **Leases:**
    *   Noncurrent Lease Liabilities: 55,100,000 EUR
    *   Current Lease Liabilities: 21,300,000 EUR
    *   Total Lease Liabilities = 55.1 + 21.3 = **76,400,000 EUR**.
    *   S&P adds lease liabilities to debt.

3.  **Pension Deficit:**
    *   "Noncurrent Provisions For Employee Benefits": 92,000,000 EUR.
    *   S&P typically adjusts for the underfunded status of defined benefit plans. Without specific actuarial valuation data (Plan Assets vs Obligations), we often use the provision on the balance sheet as a proxy for the net liability/deficit, or assume the provision reflects the deficit. We will add **92,000,000 EUR**.

4.  **Other Debt-like Items:**
    *   "Other Longterm Provisions": 565,600,000 EUR. These are typically not debt-like unless specified (e.g., asset retirement obligations). We generally exclude these unless they are mandatory and fixed. We will exclude them for now.
    *   "Noncurrent Derivative Financial Liabilities": 6,300,000 EUR. Usually marked-to-market, not debt. Exclude.
    *   "Current Derivative Financial Liabilities": 1,347,600,000 EUR. This is a very large number. Derivatives are generally not included in Adjusted Debt unless they are debt-like hedges with significant termination values that represent a fixed obligation. However, in utility contexts, large derivative liabilities often relate to energy hedging. S&P usually excludes mark-to-market derivatives from debt. We will exclude them.

5.  **Eligible Cash:**
    *   "Cash And Cash Equivalents": 1,942,400,000 EUR.
    *   S&P allows netting cash against debt if it is unrestricted and available. For utilities, cash is often considered eligible.
    *   However, S&P may cap the cash netting or exclude cash if it's needed for working capital. Given the large WC increase (-927M), some cash is tied up. But typically, "Cash and Cash Equivalents" are netted.
    *   Let's check "Current Financial Assets": 77,700,000 EUR. These might be short-term investments. We'll stick to Cash and Cash Equivalents.
    *   Eligible Cash = **1,942,400,000 EUR**.

**Calculation of Adjusted Debt:**
Adjusted Debt = (Financial Debt + Leases + Pension Deficit) - Eligible Cash
Adjusted Debt = (6,340,000,000 + 76,400,000 + 92,000,000) - 1,942,400,000
Adjusted Debt = 6,508,400,000 - 1,942,400,000
**Adjusted Debt = 4,566,000,000 EUR**.

*Note on Cash Netting:* S&P methodology for Regulated Utilities often allows full netting of cash against debt.

### Step 4: Calculate FFO / Adjusted Debt Ratio

`FFO = 949,900,000 EUR`
`Adjusted Debt = 4,566,000,000 EUR`

`Ratio = 949,900,000 / 4,566,000,000`
`Ratio ≈ 0.208037...`

Let's double-check the components.
**FFO Check:**
If we used the reconstructed EBITDA (1,200.9M):
FFO = 1,200.9 - 86.2 - 165.9 = 948.8M.
Ratio = 948.8 / 4,566 = 0.2078.

If we consider that "Finance Costs Paid" (128M) might include lease interest, and we added lease principal to debt, this is consistent.

Is there any other debt-like item?
"Noncurrent Financial Liabilities" (5,689.9) + "Current Financial Liabilities" (650.1) = 6,340.
Leases (76.4).
Pension (92).
Total Gross Debt = 6,508.4.
Cash = 1,942.4.
Net Debt = 4,566.0.

FFO = 949.9.

Ratio = 0.2080.

Let's consider if "Eligible Cash" should be reduced.
Sometimes S&P excludes cash that is not freely available. However, without specific restrictions noted, we assume full eligibility.

Let's consider if "Adjusted EBITDA" needs to be higher.
Did we miss any add-backs?
"Share Of Profit Loss Of Associates" (10M) is equity income. It is not cash. Dividends received from associates are cash.
"Dividends Received Classified As Operating Activities" = 13.4M.
In the FFO calculation `EBITDA - Cash Interest - Cash Taxes`, EBITDA does not include equity income. So we shouldn't add it back. But we should ensure we didn't subtract it.
Our starting point 1,202M is "Cash Flows From Operations Before WC".
This figure is derived from Net Income.
Net Income includes the 10M equity income.
The Cash Flow statement adds back "Adjustments For Undistributed Profits Of Investments Accounted For Using Equity Method" of -10M.
This means the 1,202M figure has effectively removed the non-cash equity income (by adding back the negative adjustment? No, "Adjustments For Undistributed Profits" is -10M. If Net Income includes +10M, and we add back -10M, we are subtracting it?
Actually, the adjustment line is "Adjustments For Undistributed Profits... -10,000,000".
If the share of profit is 10M, and dividends received are 0 (or less), the undistributed profit is 10M.
In the indirect method, you subtract undistributed profits from Net Income to get operating cash flow.
So, 1,202M excludes the non-cash equity income.
However, we *did* include "Dividends Received Classified As Operating Activities" (13.4M) in the final CFO, but is it in the 1,202M?
The list shows:
1. Cash Flows From Used In Operations Before Changes In Working Capital: 1,202
2. Adjustments for WC...
3. Dividends Received...
4. Finance Income Received...
5. Finance Costs Paid...
6. Income Taxes Paid...
7. Cash Flows From Used In Operating Activities: 35.7

This structure implies that items 3-6 are **not** included in item 1.
Therefore, Item 1 (1,202M) is Operating Cash Flow before WC, before Interest, before Taxes, and before Dividends/Finance Income.
So, 1,202M is a pure Operating measure.
To get FFO (funds available for debt service), we need:
Operating Cash Generation (1,202)
- Cash Interest Paid (128)
+ Cash Interest Received (41.8) ?
- Cash Taxes Paid (165.9)
+ Dividends Received (13.4)?

S&P FFO definition: `FFO = Net Income + Depreciation + ...`
Or `FFO = EBITDA - Cash Interest - Cash Taxes`.
Does FFO include Dividends Received? Yes, if they are from unconsolidated subsidiaries, they are often part of FFO.
Does FFO include Interest Received? Yes, it's part of operating cash flow or investing, but for debt service coverage, net interest is often used, or gross.
Standard S&P FFO: `FFO = Net Income + D&A + Deferred Taxes + Other Non-Cash`.
Net Income includes Interest Received and Dividends Received.
So, if we start from Net Income, we have them.
If we start from 1,202M (which excludes them), we must add them back.

Let's trace Net Income to 1,202M.
Net Income = 305.3.
+ D&A (667.1)
+ Deferred Tax (approx 72.6 benefit? No, add back expense. If benefit, subtract. Let's assume the CF adjustments handle this).
+ Interest Expense (217.2)
- Interest Income (82.2)
- Tax Expense (103.5)
- Equity Income (10)
+ Undistributed Equity Income (10) -> Net 0 effect on cash from equity income unless dividends received.
+ Other adjustments (Provisions 188.5, etc.)

The 1,202M figure is "Before Changes in Working Capital".
It essentially equals `EBITDA + Non-Cash Operating Items`.
It does **not** include Interest or Taxes or Dividends.
So, to get FFO:
FFO = 1,202 (Op Cash Gen)
- Cash Interest Paid (128.0)
+ Cash Interest Received (41.8)
- Cash Taxes Paid (165.9)
+ Dividends Received (13.4)

FFO = 1,202 - 128 + 41.8 - 165.9 + 13.4
FFO = 1,202 - 86.2 - 165.9 + 13.4
FFO = 949.9 + 13.4
**FFO = 963,300,000 EUR**.

Let's re-evaluate if Dividends Received are part of FFO.
Yes, dividends from equity method investments are typically included in FFO.
Interest Received is also typically included in FFO (as it is part of Net Income).

So, FFO = 963,300,000 EUR.

Adjusted Debt = 4,566,000,000 EUR.

Ratio = 963,300,000 / 4,566,000,000
Ratio = 0.21097...

Rounding to four decimal places: **0.2110**.

Let's do a sanity check on "Eligible Cash".
If we don't net cash:
Debt = 6,508.4M.
Ratio = 963.3 / 6,508.4 = 0.1480.
S&P Regulated Utilities methodology typically nets cash. "We adjust inventory and debt balances by netting the value of inventory against outstanding short-term borrowings...". It also generally allows netting of unrestricted cash.

Let's check if there are other debt-like items.
"Current Derivative Financial Liabilities" 1,347.6M.
If these are energy hedges, they are volatile. S&P usually excludes them from debt.
"Noncurrent Derivative Financial Liabilities" 6.3M.

What about "Other Longterm Provisions" 565.6M?
If these are asset retirement obligations, they are often excluded from debt but may be considered in leverage if material. However, standard FFO/Debt uses Financial Debt + Leases.

I will stick with Adjusted Debt = 4,566M.

Final Calculation:
FFO = 963,300,000
Adj Debt = 4,566,000,000
Ratio = 0.210972...

<answer>0.2110</answer>