To estimate the Net Debt / EBITDA ratio for 2022 based on the S&P methodology, I will follow these steps: 1. **Calculate EBITDA**: S&P typically calculates EBITDA as Profit or Loss before financial income/costs, income tax, depreciation, amortization, and impairment. From the provided data, this corresponds to the line item "Profit Loss Before Provisions Amortisation And Impairment Financial Income And Financial Expenses Income Tax Expense And Extraordinary Contribution To The Energy Sector CESE". However, S&P generally includes provisions in EBITDA (treating them as a non-cash item), so the standard EBITDA figure is often exactly the one before provisions, amortization, and impairment. * Let's verify: The data states "Profit Loss Before Provisions Amortisation And Impairment..." which is exactly the standard EBITDA definition. * 2022 value: 4,523,539,000 EUR. 2. **Calculate Net Debt**: Under S&P methodology, net debt typically includes: * Short-term and long-term debt (borrowings). * Lease liabilities (usually included in borrowings, but we must check if 'Right-of-use Assets' have a corresponding liability; the given "Longterm Borrowings" and "Current Borrowings" usually contain lease liabilities under IFRS 16, but the cash flow statement shows "Payments Of Lease Liabilities" as a separate financing outflow, so the debt figures likely already include them). * Other financial liabilities that are debt-like. * Less: Cash and cash equivalents. * We should generally avoid including trade payables, provisions, and derivative instruments unless they are explicitly debt-like. S&P generally considers derivatives as non-debt unless they are structured to raise finance. Collateral deposits associated with financial debt might be netted or added to debt, but they are small. * We will take: * Long-term borrowings: 15,782,604,000 EUR * Current borrowings: 4,239,869,000 EUR * Institutional Partnerships in North America: 2,212,162,000 EUR (these are often treated as debt-like or minority interests, but S&P generally classifies them as debt if they are financing arrangements; given they are listed under non-current liabilities separately from trade payables, they are likely debt-like). * Other non-current financial liabilities: 5,159,496,000 EUR (often includes derivatives, but we will stick to broad debt items). * Other current financial liabilities: 3,600,893,000 EUR (again, includes derivatives, but part of total financial liabilities). * Minus: Cash and cash equivalents: 4,900,205,000 EUR. * Let's refine based on the S&P adjustments typically made for utilities: they often include "Financial debt" which here seems to be grouped in Long-term borrowings, Current borrowings, Institutional partnerships in NA, and potentially other financial liabilities. * Let’s calculate Net Debt for this exercise as: * Long-term borrowings (15,782,604,000) * + Current borrowings (4,239,869,000) * + Institutional Partnerships in North America (2,212,162,000) [Note: This is often treated as a hybrid/minority but listed as NCL] * + Other Non-current financial liabilities (5,159,496,000) * + Other Current financial liabilities (3,600,893,000) * - Cash (4,900,205,000) * This gives a very broad net debt figure. However, S&P often excludes derivative liabilities (which are included in "Other financial liabilities") and focuses on straight debt. EDP's balance sheet likely has "Other Financial Liabilities" heavily composed of derivatives. * A cleaner S&P calculation often uses: Gross Debt (Long-term + Short-term borrowings + Lease liabilities) - Cash. * Gross Debt = 15,782,604,000 + 4,239,869,000 = 20,022,473,000 EUR. * Cash = 4,900,205,000 EUR. * Net Debt = 20,022,473,000 - 4,900,205,000 = 15,122,268,000 EUR. * Wait, should I include "Institutional Partnerships in North America"? S&P usually adds these to debt if they are fixed-obligation instruments. I'll include it: 15,122,268,000 + 2,212,162,000 = 17,334,430,000 EUR. 3. **Calculate the Ratio**: * Net Debt / EBITDA = 17,334,430,000 / 4,523,539,000 = 3.832. Let's re-verify EBITDA. S&P standard EBITDA doesn't deduct provisions. The line item "Profit Loss Before Provisions Amortisation And Impairment Financial Income And Financial Expenses Income Tax Expense And Extraordinary Contribution To The Energy Sector CESE" is exactly EBITDA. Value = 4,523,539,000. Let's re-verify Net Debt. Short-term + Long-term borrowings is the safest bet for Gross Debt. S&P generally adds asset retirement obligations (included in provisions, but the long-term provisions are 922M), but typically standard net debt uses: Cash and cash equivalents. I'll stick to the standard textbook Net Debt definition used in credit metrics: (Short-term debt + Current portion of long-term debt + Long-term debt) - Cash. Gross Debt = 15,782,604,000 (Long-term) + 4,239,869,000 (Current) = 20,022,473,000. Cash = 4,900,205,000. Net Debt = 15,122,268,000. Ratio = 15,122,268,000 / 4,523,539,000 = 3.34. However, S&P often includes "Institutional Partnerships" as debt. If Net Debt = 17,334,430,000 Ratio = 17,334,430,000 / 4,523,539,000 = 3.83. Given standard S&P adjustments for EDP, they typically adjust EBITDA slightly but here I'll use the straight pre-provision operating income as EBITDA. The ratio is a clean calculation. I will provide the calculation using standard gross debt + cash. Let's use the standard formula: Net Debt = Total Debt - Cash. Total Debt = 15,782,604,000 + 4,239,869,000 = 20,022,473,000. Net Debt = 20,022,473,000 - 4,900,205,000 = 15,122,268,000. EBITDA = 4,523,539,000. Ratio = 15,122,268,000 / 4,523,539,000 = 3.343. I will provide the value rounded to two decimals. Let me double check if Collateral Deposits Associated To Financial Debt should be netted. Collateral deposits (non-current 23.7M + current 29.3M) = 53M. Not a big difference. I'll just use the standard Net Debt / EBITDA calculation. Ratio = 3.343.34