To estimate Moody’s adjusted leverage trend, use a debt-to-earnings/cash-flow proxy.

Key movements in 2022:

- Borrowings increased materially:
  - Long-term borrowings rose from EUR 12.366bn to EUR 19.006bn.
  - Short-term borrowings fell from EUR 1.339bn to EUR 0.709bn.
  - Total borrowings increased from about EUR 13.705bn to EUR 19.715bn, up roughly EUR 6.0bn.
  - Lease liabilities also increased from EUR 0.404bn to EUR 0.729bn.

- Cash increased significantly:
  - Cash and cash equivalents rose from EUR 3.204bn to EUR 6.547bn.
  - Net debt therefore still increased, but less sharply than gross debt:
    - Approximate net borrowings 2021 year-end: EUR 13.705bn - EUR 3.204bn = EUR 10.501bn.
    - Approximate net borrowings 2022 year-end: EUR 19.715bn - EUR 6.547bn = EUR 13.168bn.
    - Net borrowings increased by about EUR 2.7bn.

- Operating performance weakened:
  - Operating loss deteriorated from EUR -275m to EUR -976m.
  - Net loss worsened from EUR -340m to EUR -879m.
  - Cash flow from operating activities fell sharply from EUR 5.705bn to EUR 1.196bn.
  - Finance costs increased from EUR 202m to EUR 300m.

Even though cash balances rose, leverage pressure increased because debt rose substantially while profitability and operating cash flow weakened. On a Moody’s-style adjusted leverage basis, this points to a deterioration in leverage metrics during 2022.

<answer>Deteriorating</answer>