I need to estimate the Net Debt / EBITDA ratio for 2022 using S&P methodology. First, let me identify the relevant components from the data. **Net Debt Calculation (S&P methodology):** Net Debt = Total Debt - Cash and Cash Equivalents From the balance sheet data at 2022-01-01 (beginning of 2022, which represents end of 2021): Total Debt components: - Noncurrent Portion Of Other Noncurrent Borrowings: 9,513,000,000 EUR - Current Borrowings And Current Portion Of Noncurrent Borrowings: 1,096,000,000 EUR Total Debt = 9,513,000,000 + 1,096,000,000 = 10,609,000,000 EUR Cash and Cash Equivalents at 2022-01-01: 5,536,000,000 EUR Net Debt = 10,609,000,000 - 5,536,000,000 = 5,073,000,000 EUR Wait - I need to check if there are other debt-like items. Let me also check: - Noncurrent Lease Liabilities: 115,000,000 EUR - Current Lease Liabilities: 58,000,000 EUR S&P methodology typically includes capitalized leases in debt. So: Total Debt = 9,513,000,000 + 1,096,000,000 + 115,000,000 + 58,000,000 = 10,782,000,000 EUR Net Debt = 10,782,000,000 - 5,536,000,000 = 5,246,000,000 EUR Actually, let me re-read: the period 2022-01-01 to 2023-01-01 represents the year 2022. The balance sheet at 2023-01-01 is end of 2022, and at 2022-01-01 is end of 2021. For 2022 ratio, I should use end of 2022 (2023-01-01) or average? S&P typically uses end-of-period or average. Let me use end of 2022 figures (at 2023-01-01): At 2023-01-01: - Noncurrent Portion Of Other Noncurrent Borrowings: 10,776,000,000 EUR - Current Borrowings And Current Portion Of Noncurrent Borrowings: 877,000,000 EUR - Noncurrent Lease Liabilities: 120,000,000 EUR - Current Lease Liabilities: 64,000,000 EUR Total Debt = 10,776,000,000 + 877,000,000 + 120,000,000 + 64,000,000 = 11,837,000,000 EUR Cash and Cash Equivalents at 2023-01-01: 5,130,000,000 EUR Net Debt = 11,837,000,000 - 5,130,000,000 = 6,707,000,000 EUR **EBITDA Calculation:** For S&P methodology, EBITDA typically starts from Operating Profit and adds back depreciation and amortization. From the income statement for 2022 (2022-01-01 to 2023-01-01): Profit Loss From Operating Activities: 423,000,000 EUR But I need to work back to EBITDA. Let me use: - Profit From Operations Before Impairment And Disposals Of Non Current Assets: 429,000,000 EUR - Add back: Impairment And Gains Or Losses On Disposal Of Non Current Assets: -6,000,000 EUR (this is a loss, so adding back gives higher EBIT) Actually, let me think more carefully. S&P defines EBITDA as: EBITDA = Operating Profit + D&A + Other non-cash charges + Other adjustments From the data: - Profit Loss From Operating Activities (EBIT): 423,000,000 EUR - Amortisation Expense: 299,000,000 EUR But wait - is depreciation included in "Miscellaneous Other Operating Expense"? Let me check if there's separate depreciation. Looking at the adjustments for cash flow: - "Ajustes Al Resultado Por Gastos Por Depreciacion YAmortizacion" (Adjustments for Depreciation and Amortization Expenses): 299,000,000 EUR This suggests total D&A is 299,000,000 EUR. So EBITDA = EBIT + D&A = 423,000,000 + 299,000,000 = 722,000,000 EUR Wait, let me verify this is correct. The "Profit Loss From Operating Activities" of 423,000,000 should already include D&A as an expense. So: EBITDA = Operating Profit (before D&A) = 423,000,000 + 299,000,000 = 722,000,000 EUR But actually, let me check if "Profit From Operations Before Impairment And Disposals" is a better starting point: - Profit From Operations Before Impairment And Disposals Of Non Current Assets: 429,000,000 EUR - Less: Impairment And Gains Or Losses On Disposal Of Non Current Assets: -6,000,000 EUR - = Profit Loss From Operating Activities: 423,000,000 EUR For S&P, EBITDA typically includes results before impairment and disposals. So: EBIT = 429,000,000 EUR (before impairment) EBITDA = 429,000,000 + 299,000,000 = 728,000,000 EUR Or using the final operating profit: EBITDA = 423,000,000 + 299,000,000 = 722,000,000 EUR Actually, looking more carefully at S&P methodology, they typically use: EBITDA = Operating profit + depreciation + amortization + other non-cash charges And operating profit usually means before exceptional items. The "Profit From Operations Before Impairment And Disposals" seems like the right starting point. Let me also check if there's any other D&A. The cash flow adjustment shows 299,000,000 for depreciation and amortization. Also, I should check if we need to include discontinued operations. The "Gross Profit Loss From Discontinued Operations" is 155,000,000 EUR for 2022, and "Gross Profit Loss Including Discontinued Operations" is 883,000,000 EUR. For S&P methodology, EBITDA typically includes continuing operations only, or sometimes total EBITDA including discontinued. Let me check what makes sense. Actually, for Net Debt/EBITDA, S&P Global Ratings typically uses: - Total debt (including leases, hybrid adjustments, etc.) - Minus cash and cash equivalents - Divided by EBITDA (usually from continuing operations, or total if discontinued is material) Let me recalculate more carefully: **Net Debt at end 2022 (2023-01-01):** Borrowings: - Noncurrent Debt Securities And Bank Borrowings Of Infrastructure Projects: 7,893,000,000 - Noncurrent Debt Securities And Bank Borrowings Excluding Infrastructure Projects: 2,883,000,000 - Current Debt Securities And Bank Borrowings Of Infrastructure Projects: 74,000,000 - Current Debt Securities And Bank Borrowings Excluding Infrastructure Projects: 803,000,000 Total Debt Securities and Bank Borrowings = 7,893,000,000 + 2,883,000,000 + 74,000,000 + 803,000,000 = 10,653,000,000 EUR Wait, this doesn't match "Noncurrent Portion Of Other Noncurrent Borrowings" of 10,776,000,000. Let me check what "Other Noncurrent Borrowings" includes. Actually, looking more carefully: - Noncurrent Portion Of Other Noncurrent Borrowings: 10,776,000,000 - This includes: Noncurrent Debt Securities And Bank Borrowings Of Infrastructure Projects (7,893,000,000) + Noncurrent Debt Securities And Bank Borrowings Excluding Infrastructure Projects (2,883,000,000) = 10,776,000,000 ✓ And current borrowings: - Current Borrowings And Current Portion Of Noncurrent Borrowings: 877,000,000 - Which includes: Current Debt Securities And Bank Borrowings Of Infrastructure Projects (74,000,000) + Current Debt Securities And Bank Borrowings Excluding Infrastructure Projects (803,000,000) = 877,000,000 ✓ So total debt = 10,776,000,000 + 877,000,000 = 11,653,000,000 EUR Plus lease liabilities: - Noncurrent Lease Liabilities: 120,000,000 - Current Lease Liabilities: 64,000,000 Total leases = 184,000,000 EUR Total Debt = 11,653,000,000 + 184,000,000 = 11,837,000,000 EUR Cash and Cash Equivalents = 5,130,000,000 EUR Net Debt = 11,837,000,000 - 5,130,000,000 = 6,707,000,000 EUR **EBITDA for 2022:** From the income statement 2022-01-01 to 2023-01-01: Let me trace through the P&L: - Revenue And Operating Income: 7,553,000,000 - Operating Expense: 6,825,000,000 - Gross Profit: 728,000,000 Wait, that doesn't work: 7,553,000,000 - 6,825,000,000 = 728,000,000 ✓ Then: - Amortisation Expense: 299,000,000 - Profit From Operations Before Impairment And Disposals: 429,000,000 So: 728,000,000 - 299,000,000 = 429,000,000 ✓ (this is after amortization but seems to be operating profit before impairment) Then: - Impairment And Gains Or Losses On Disposal Of Non Current Assets: -6,000,000 - Profit Loss From Operating Activities: 423,000,000 So 429,000,000 - 6,000,000 = 423,000,000 ✓ For EBITDA, we need to add back D&A to operating profit. But which operating profit? If we use Profit Loss From Operating Activities (423,000,000) + Amortisation (299,000,000) = 722,000,000 But wait - is there depreciation as well? The line item says "Ajustes Al Resultado Por Gastos Por Depreciacion YAmortizacion" which is "Adjustments for Depreciation and Amortization Expenses" = 299,000,000. This seems to be the total. However, looking at the P&L structure, the amortization expense of 299,000,000 is already deducted to get from Gross Profit to Profit From Operations Before Impairment. Gross Profit (728,000,000) - Amortisation Expense (299,000,000) = 429,000,000... but wait, that's not right because 728 - 299 = 429. Yes, it is. So EBITDA = Gross Profit + any other operating expenses that are non-D&A? No, that's not right either. Actually, let me think about this more carefully. The typical structure is: Revenue - Cost of sales = Gross Profit - Operating expenses (SGA, etc.) - D&A = EBIT ± Other items = Operating profit From the data: - Revenue And Operating Income: 7,553,000,000 - Raw Materials And Consumables Used: 1,197,000,000 - Employee Benefits Expense: 1,446,000,000 - Miscellaneous Other Operating Expense: 4,182,000,000 Total operating expenses = 1,197 + 1,446 + 4,182 = 6,825,000,000 Revenue - Operating Expenses = 7,553 - 6,825 = 728 = Gross Profit Then from Gross Profit to Profit From Operations Before Impairment: - Amortisation Expense: 299,000,000 So 728 - 299 = 429... but is this right? Actually, amortization is typically included in operating expenses, not deducted after gross profit. Looking at the "Miscellaneous Other Operating Expense" of 4,182,000,000 - this likely includes D&A. But then there's a separate "Amortisation Expense" of 299,000,000. Actually, I think the presentation is: - Revenue And Operating Income: 7,553 - Operating Expense: 6,825 (which includes D&A) - Gross Profit: 728 Wait, that doesn't make sense if Gross Profit = Revenue - COGS, and Operating Expense is separate. Let me re-read: "Gross Profit" is 728,000,000. Then "Amortisation Expense" is 299,000,000. Then "Profit From Operations Before Impairment And Disposals" is 429,000,000. Hmm, 728 - 299 = 429. So it seems like Amortisation is deducted from Gross Profit. But that's unusual - normally you'd have SGA expenses too. Unless... "Miscellaneous Other Operating Expense" of 4,182,000,000 includes most operating expenses, and the 299,000,000 amortization is additional? Let me check: Revenue: 7,553 - Raw Materials: 1,197 - Employee Benefits: 1,446 - Miscellaneous Other Operating: 4,182 = 7,553 - 6,825 = 728 (Gross Profit) Then 728 - 299 (Amortisation) = 429 (Profit From Operations Before Impairment) This suggests that "Gross Profit" here is actually more like "Operating Profit before D&A" or the expenses are structured differently. Actually, looking more carefully at typical Spanish/international formats, "Gross Profit" might be used differently. But the math works: 728 - 299 = 429. For EBITDA, if we define it as Earnings Before Interest, Taxes, Depreciation and Amortization: - Start from Profit Loss From Operating Activities: 423,000,000 - Add back Amortisation: 299,000,000 - Add back any Depreciation: included in the 299,000,000 based on the line item description EBITDA = 423,000,000 + 299,000,000 = 722,000,000 EUR But wait - S&P also typically adjusts EBITDA for items like dividends from associates, or uses a different starting point. Let me think... Actually, S&P Global Ratings methodology for EBITDA: - Starts from operating profit (continuing operations) - Adds back depreciation and amortization - Adds back other non-cash items - Makes other standard adjustments For 2022, using continuing operations: - Profit Loss From Operating Activities (continuing): 423,000,000 - Add back D&A: 299,000,000 - EBITDA = 722,000,000 EUR But we should check if there's any discontinued operations EBITDA to include. The "Gross Profit Loss From Discontinued Operations" is 155,000,000. If we include this: Total EBITDA = 722,000,000 + 155,000,000 = 877,000,000? Or is the 155,000,000 already part of the 423,000,000? Looking at "Profit Loss From Discontinued Operations" of 64,000,000 - this is after-tax, so the 155,000,000 gross profit is pre-tax operating result from discontinued. Actually, looking at the structure: - "Profit Loss" total = 302,000,000 - "Profit Loss From Continuing Operations" = 238,000,000 - "Profit Loss From Discontinued Operations" = 64,000,000 Check: 238 + 64 = 302 ✓ So the 423,000,000 operating profit is for continuing operations only (or includes some discontinued?). Actually, looking more carefully: "Profit Loss From Operating Activities" of 423,000,000 - is this total or continuing? The pattern suggests it's total, because then: - Financial costs, associates, tax lead to 238,000,000 continuing - Plus 64,000,000 discontinued = 302,000,000 total Hmm, but "Profit Loss From Continuing Operations" is 238,000,000 and "Profit Loss From Discontinued Operations" is 64,000,000. The operating profit of 423,000,000 likely includes both or is just continuing. Actually, looking at standard IFRS presentation, "Profit Loss From Operating Activities" would typically be for total operations (continuing + discontinued), or just continuing. Given the detailed breakdown, let me assume the 423,000,000 is for continuing operations, and discontinued is separate. For S&P Net Debt/EBITDA, they typically use: - Total debt (including leases, hybrid adjustments) - Minus cash and cash equivalents - Divided by EBITDA (last 12 months, usually continuing operations or total depending on context) Given the complexity, let me use the simpler approach: - Net Debt = 6,707,000,000 EUR - EBITDA = 722,000,000 EUR (from continuing: 423 + 299) But wait, I should double-check if 423,000,000 includes discontinued. Looking at "Gross Profit Loss Including Discontinued Operations" = 883,000,000 and "Gross Profit Loss From Discontinued Operations" = 155,000,000, so continuing gross profit = 883 - 155 = 728,000,000. This matches the "Gross Profit" of 728,000,000. So "Gross Profit" is continuing only. Then "Profit Loss From Operating Activities" of 423,000,000 is also continuing only. For S&P, if discontinued operations are being sold, they might exclude them. But if they're still part of the group, they might include them. Let me check if there's total EBITDA. Actually, I realize I need to be more careful. The "Gross Profit Loss From Discontinued Operations" of 155,000,000 - is this EBITDA? No, it's gross profit. We'd need to add back D&A from discontinued, which we don't have separately. For simplicity and following standard practice, I'll use continuing operations EBITDA. Net Debt / EBITDA = 6,707,000,000 / 722,000,000 = 9.29 Hmm, that seems high. Let me recheck. Actually, I want to double-check my debt calculation. Let me look at "Other Noncurrent Financial Liabilities" of 838,000,000 EUR. Should this be included in debt? S&P methodology includes: - Bank borrowings and bonds - Capitalized leases - Pension deficits (sometimes) - Other debt-like items "Other Noncurrent Financial Liabilities" of 838,000,000 - this could include derivatives, put options, or other debt-like items. But it might also include normal operating liabilities. Also, I should check "Noncurrent Derivative Financial Liabilities" and "Current Derivative Financial Liabilities" - these are typically not included in gross debt for leverage calculations (they're fair value adjustments). And "Deferred Tax Liabilities" are not debt. What about "Noncurrent Deferred Income Other Than Noncurrent Contract Liabilities" of 1,410,000,000? This is deferred income, not debt. Let me also check if there are other borrowings I missed. Looking at the current liabilities: - Current Borrowings And Current Portion Of Noncurrent Borrowings: 877,000,000 And noncurrent: - Noncurrent Portion Of Other Noncurrent Borrowings: 10,776,000,000 These seem to be the main debt items. Total borrowings = 10,776,000,000 + 877,000,000 = 11,653,000,000 Plus leases = 184,000,000 Total Debt = 11,837,000,000 Less Cash = 5,130,000,000 Net Debt = 6,707,000,000 Now for EBITDA, let me also consider if S&P would use a different figure. They sometimes use "Adjusted EBITDA" which adds back certain items. Looking at the cash flow, "Cash Flows From Used In Operating Activities" is 1,002,000,000. This is much higher than the 722,000,000 EBITDA I calculated, suggesting working capital improvements, dividends received, etc. Actually, let me recalculate EBITDA more carefully using a different approach: From the P&L: Revenue: 7,551,000,000 Other Income: 2,000,000 Total Income: 7,553,000,000 Operating Expenses: Raw Materials: 1,197,000,000 Miscellaneous Other Operating: 4,182,000,000 (includes -1,000,000 fair value adjustment) Employee Benefits: 1,446,000,000 Total Operating Expenses: 6,825,000,000 Gross Profit: 728,000,000 Then: Amortisation Expense: 299,000,000 Profit From Operations Before Impairment: 429,000,000 So EBITDA = 429,000,000 + 299,000,000 = 728,000,000? Wait, 429 + 299 = 728, not 722. Let me check: 429,000,000 + 299,000,000 = 728,000,000. Yes! But earlier I said EBITDA = 423 + 299 = 722. That's also correct if starting from final operating profit. Which is right? S&P typically uses EBIT + D&A, where EBIT is before impairment and exceptional items. So: EBIT = Profit From Operations Before Impairment And Disposals = 429,000,000 EBITDA = 429,000,000 + 299,000,000 = 728,000,000 Or if using the final operating profit after impairment: EBIT = 423,000,000 EBITDA = 423,000,000 + 299,000,000 = 722,000,000 S&P typically adjusts out impairments and gains/losses on disposals for EBITDA calculations, so 728,000,000 is more appropriate. Actually, let me verify: 728,000,000 Gross Profit - 299,000,000 Amortisation = 429,000,000. This means Gross Profit is before amortisation, which is unusual. Normally gross profit is after COGS but before SGA and D&A. Unless... the amortisation here is specifically for intangible assets related to infrastructure projects, and it's treated as part of operating costs? Actually, looking at the structure again, I think "Gross Profit" in this context might actually be what we'd normally call "Operating Profit before D&A" or there's a different presentation convention. Let me just use the standard calculation: EBITDA = Operating Profit + D&A = 423,000,000 + 299,000,000 = 722,000,000, or with pre-impairment operating profit = 728,000,000. I'll use 728,000,000 as it's cleaner (before impairment). Net Debt / EBITDA = 6,707,000,000 / 728,000,000 = 9.21 Hmm, but let me also check if I should use average net debt or end-of-period. S&P typically uses end-of-period debt and last-12-months EBITDA. Actually, I want to double-check one more thing. Should "Restricted Cash Relating To Infrastructure Projects And Other Financial Assets" of 597,000,000 be deducted from debt or added to cash? In the balance sheet, this is under Noncurrent Financial Assets, not cash. And "Current Restricted Cash And Cash Equivalents Infrastructure Projects" is 38,000,000. S&P methodology typically excludes restricted cash from the cash deduction unless it's truly available to pay debt. For project finance, restricted cash in infrastructure projects is usually not available to the parent company. So my cash figure of 5,130,000,000 might need adjustment. But actually, the main "Cash And Cash Equivalents" of 5,130,000,000 includes "Cash And Cash Equivalents Infrastructure Projects" of 168,000,000 and "Cash And Cash Equivalents Excluding Infrastructure Projects" of 4,962,000,000. If we exclude infrastructure project cash (which is restricted/ring-fenced), available cash = 4,962,000,000 + 130,000,000 (other infrastructure) - restricted portion? Actually, looking more carefully: - Cash And Cash Equivalents Infrastructure Projects: 168,000,000 - Current Restricted Cash And Cash Equivalents Infrastructure Projects: 38,000,000 - Other Cash And Cash Equivalents Infrastructure Projects: 130,000,000 So not all infrastructure cash is restricted. Only 38,000,000 is restricted current cash. For S&P, typically only unrestricted cash is deducted. But this gets complicated. Let me use total cash as reported, which is standard for most calculations unless specified otherwise. Net Debt = 11,837,000,000 - 5,130,000,000 = 6,707,000,000 Actually, I want to also check if there are other debt-like items. "Long Term Loans To Associates" of 246,000,000 - is this a receivable or payable? It's an asset, so not debt. What about "Noncurrent Financial Assets" of 1,095,000,000? These are assets, not liabilities. Let me recheck my debt figure. I have: - Noncurrent borrowings: 10,776,000,000 - Current borrowings: 877,000,000 - Lease liabilities: 184,000,000 Total: 11,837,000,000 Is "Other Noncurrent Financial Liabilities" of 838,000,000 debt? This could include: - Derivatives (but we have separate line for derivative liabilities of 66,000,000) - Put options to non-controlling interests - Other financial liabilities For S&P, put options to NCI are typically included in debt. But without more detail, I'll exclude this to be conservative, or note that it might increase debt. Actually, let me include it as it's likely debt-like: Total Debt = 11,837,000,000 + 838,000,000 = 12,675,000,000 Net Debt = 12,675,000,000 - 5,130,000,000 = 7,545,000,000 Net Debt / EBITDA = 7,545,000,000 / 728,000,000 = 10.36 Hmm, this is getting higher. But I'm not sure if Other Noncurrent Financial Liabilities should be included. Let me look at the structure more carefully. "Noncurrent Liabilities" total is 13,142,000,000, which includes: - Noncurrent Provisions For Employee Benefits: 2,000,000 - Noncurrent Provisions: 416,000,000 - Noncurrent Lease Liabilities: 120,000,000 - Noncurrent Portion Of Other Noncurrent Borrowings: 10,776,000,000 - Other Noncurrent Financial Liabilities: 838,000,000 - Deferred Tax Liabilities: 924,000,000 - Noncurrent Derivative Financial Liabilities: 66,000,000 Total: 2 + 416 + 120 + 10,776 + 838 + 924 + 66 = 13,142,000,000 ✓ For S&P debt, typically included: - Borrowings: 10,776,000,000 - Lease liabilities: 120,000,000 - Other noncurrent financial liabilities (if debt-like): 838,000,000? Maybe partially - Derivatives (fair value): usually excluded for leverage - Deferred tax: excluded - Provisions: excluded (operating liabilities) So my base case is 10,776 + 120 + current borrowings 877 + current leases 64 = 11,837,000,000. I'll stick with this and not include Other Noncurrent Financial Liabilities without more information. Net Debt = 6,707,000,000 EBITDA = 728,000,000 Ratio = 9.21 But let me also try the lower EBITDA of 722,000,000: Ratio = 6,707 / 722 = 9.29 Or if I use EBITDA including discontinued operations... Actually, I realize I should check one more thing. Is there depreciation in addition to amortization? The line item "Ajustes Al Resultado Por Gastos Por Depreciacion YAmortizacion" suggests total D&A is 299,000,000. And "Amortisation Expense" is 299,000,000. This suggests it's all amortization, or depreciation is included in this figure. In many infrastructure companies, most D&A is amortization of intangible assets (concessions) rather than depreciation of tangible assets. So 299,000,000 is likely the total D&A. Let me finalize with: Net Debt = 6,707,000,000 EBITDA = 728,000,000 (using pre-impairment operating profit + D&A) Ratio = 9.21 Or using post-impairment operating profit: EBITDA = 722,000,000 Ratio = 9.29 I think S&P would use 728,000,000 as they typically adjust out impairments for EBITDA calculations. Actually, wait. Let me re-read the P&L. "Profit From Operations Before Impairment And Disposals Of Non Current Assets" is 429,000,000. The impairment and disposals is -6,000,000 (a loss). For EBITDA, S&P Global Ratings typically uses: EBITDA = Operating profit before depreciation, amortization, interest, taxes, and non-recurring items So starting from 429,000,000 (before impairment) and adding back 299,000,000 D&A = 728,000,000. But they might also adjust out the -6,000,000 impairment as it's non-recurring. Since we're adding back D&A to pre-impairment profit, we already have 728,000,000. Actually, I want to verify: is 429,000,000 before or after other operating expenses? Looking at the structure: - Gross Profit: 728,000,000 - Amortisation Expense: 299,000,000 - = 429,000,000 This suggests there are no other operating expenses between Gross Profit and Profit From Operations, which is unusual. Unless "Miscellaneous Other Operating Expense" of 4,182,000,000 is included in the 6,825,000,000 operating expenses that get us to Gross Profit? Let me recalculate: Revenue And Operating Income: 7,553,000,000 Less: Raw Materials And Consumables Used: 1,197,000,000 Less: Employee Benefits Expense: 1,446,000,000 Less: Miscellaneous Other Operating Expense: 4,182,000,000 = 7,553 - 1,197 - 1,446 - 4,182 = 728,000,000 = Gross Profit Then from Gross Profit: Less: Amortisation Expense: 299,000,000 = 429,000,000 = Profit From Operations Before Impairment Then less: Impairment: 6,000,000 = 423,000,000 = Profit Loss From Operating Activities So yes, the structure is unusual with amortization deducted after "Gross Profit" (which is more like a contribution margin or operating profit before D&A). For standard EBITDA, we'd use: Revenue - Operating Expenses (excluding D&A) = 728,000,000 Or: Profit From Operations Before Impairment + Amortisation = 429 + 299 = 728,000,000 EBITDA = 728,000,000 EUR Net Debt = 6,707,000,000 EUR Net Debt / EBITDA = 6,707 / 728 = 9.2129... Rounding to one decimal place: 9.2 Or should I use more precision? Let me check if I should use exact figures. Actually, I want to reconsider the EBITDA one more time. Should I include discontinued operations? "Gross Profit Loss From Discontinued Operations" is 155,000,000. If this is already EBITDA-like (i.e., before D&A of discontinued), then total EBITDA = 728 + 155 = 883,000,000? But wait, "Gross Profit Loss Including Discontinued Operations" is 883,000,000, and continuing Gross Profit is 728,000,000. So 883 - 728 = 155,000,000 from discontinued. But "Gross Profit" for discontinued might not be the same as EBITDA. We'd need to know D&A of discontinued. Given the complexity and that S&P typically focuses on continuing operations for trend analysis, I'll use continuing operations EBITDA of 728,000,000. Final calculation: Net Debt / EBITDA = 6,707,000,000 / 728,000,000 = 9.2129... Let me round to 9.2 or provide more precision. The question asks for an estimate, so 9.2 seems reasonable. But let me see if I should use 9.21 or 9.3. Actually, let me recalculate with exact numbers: 6,707,000,000 / 728,000,000 = 9.212912... Or if using EBITDA = 722,000,000: 6,707,000,000 / 722,000,000 = 9.289... The difference is whether to use pre-impairment or post-impairment operating profit. S&P Global Ratings methodology specifically says to use operating profit before impairment and non-recurring items for EBITDA calculations. So 728,000,000 is correct. Wait, I need to re-verify my net debt calculation. Let me check if there are current portion of noncurrent borrowings that I captured correctly. "Current Borrowings And Current Portion Of Noncurrent Borrowings" = 877,000,000 This includes: - Current Debt Securities And Bank Borrowings Of Infrastructure Projects: 74,000,000 - Current Debt Securities And Bank Borrowings Excluding Infrastructure Projects: 803,000,000 Total: 877,000,000 ✓ And "Noncurrent Portion Of Other Noncurrent Borrowings" = 10,776,000,000 This includes: - Noncurrent Debt Securities And Bank Borrowings Of Infrastructure Projects: 7,893,000,000 - Noncurrent Debt Securities And Bank Borrowings Excluding Infrastructure Projects: 2,883,000,000 Total: 10,776,000,000 ✓ So total borrowings = 11,653,000,000 Plus lease liabilities: - Noncurrent: 120,000,000 - Current: 64,000,000 Total leases: 184,000,000 Total debt-like liabilities: 11,837,000,000 Less cash and equivalents: 5,130,000,000 Net debt: 6,707,000,000 This seems correct. One final check: should I include "Other Current Financial Assets" of 0 and "Current Derivative Financial Assets" of 184,000,000? These are assets, not liabilities, so they don't affect debt. But should liquid assets beyond cash be deducted? S&P typically only deducts cash and cash equivalents, not derivative assets or other financial assets. So my net debt calculation stands. Final answer: 6,707 / 728 = 9.21 (rounded to two decimal places) Or if we want one decimal: 9.2 I'll provide 9.2 as a reasonable estimate, or more precisely 9.21. Let me check if the question wants more precision. Given the data is in millions, I think 9.2 or 9.21 is appropriate. Let me use 9.2 as a clean estimate, or calculate more carefully. Actually, let me see if I can get a more precise EBITDA. The "Adjustments For Reconcile Profit Loss" is -697,000,000 for 2022. This is used in cash flow reconciliation. And "Ajustes Al Resultado Por Gastos Por Depreciacion YAmortizacion" is 299,000,000. The cash flow from operations is 1,002,000,000. Starting from profit of 302,000,000, adjustments total -697,000,000... wait, that doesn't work. 302 - 697 = -395, not 1,002. Actually, looking at cash flow reconciliation: Profit Loss: 302,000,000 Adjustments For Reconcile Profit Loss: -697,000,000 Adjustments For Non Controlling Interests: 116,000,000 Adjustment For Net Profit Loss From Discontinued Operations: -64,000,000 Adjustments For Income Tax Expense: -30,000,000 Adjustments For Undistributed Profits Of Investments Accounted For Using Equity Method: -165,000,000 Adjustments For Finance Income Cost: 320,000,000 Adjustments For Gain Loss On Disposals Property Plant And Equipment: 6,000,000 Ajustes Al Resultado Por Gastos Por Depreciacion YAmortizacion: 299,000,000 Sum: 302 - 697 + 116 - 64 - 30 - 165 + 320 + 6 + 299 = 87,000,000? That doesn't equal 1,002,000,000. Hmm, there must be working capital and other items. "Increase Decrease In Working Capital" is 83,000,000. And "Dividends Received Classified As Operating Activities" is 284,000,000. And "Income Taxes Paid Refund Classified As Operating Activities" is 82,000,000 (but this is usually a use, not source). Let me try: 302 - 697 + 116 - 64 - 30 - 165 + 320 + 6 + 299 + 83 + 284 + 82 = 536? Still not 1,002. Actually, I think "Income Taxes Paid Refund" of 82,000,000 might be negative (paid), so -82. And there might be other items. Anyway, this is getting too detailed. Let me stick with my EBITDA calculation from the P&L. EBITDA = 728,000,000 (or 722,000,000) I'll use 728,000,000 as the more standard pre-impairment figure. Net Debt / EBITDA = 6,707 / 728 = 9.21 Let me provide 9.2 as my final answer, rounding to one decimal place as is common for this ratio. 9.2