I need to calculate the Net Debt / EBITDA ratio for 2022 using S&P methodology. Let me work through this step by step. ## Understanding S&P Methodology for Net Debt/EBITDA S&P typically defines: - **Net Debt** = Total Debt (short-term + long-term borrowings) - Cash and Cash Equivalents - **EBITDA** = Earnings Before Interest, Tax, Depreciation and Amortization For EBITDA, I can use: Operating Profit (EBIT) + Depreciation & Amortization Or from the income statement: Revenue - Operating Expenses + D&A (since Operating Profit = Revenue - Operating Expenses) Let me verify with the data provided. ## Step 1: Calculate Net Debt **Total Debt:** - Short-term borrowings: 18,392,000,000 EUR - Current portion of long-term borrowings: 2,835,000,000 EUR - Long-term borrowings: 68,191,000,000 EUR Total Debt = 18,392 + 2,835 + 68,191 = **89,418,000,000 EUR** **Cash and Cash Equivalents:** From the balance sheet: 11,041,000,000 EUR **Net Debt** = 89,418 - 11,041 = **78,377,000,000 EUR** ## Step 2: Calculate EBITDA First, let me find EBIT/Operating Profit: - "Profit Loss From Operating Activities" 2022: **11,193,000,000 EUR** This is EBIT (Earnings Before Interest and Tax), as it's profit from operating activities. Now I need to add back Depreciation and Amortization: - "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" 2022: **7,447,000,000 EUR** However, this includes impairment losses. For EBITDA, we typically want just D&A. Let me check if there's a cleaner D&A figure. Looking at cash flow adjustments: - "Adjustments For Depreciation And Amortisation Expense And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" 2022: 8,809,000,000 EUR This is higher, suggesting the 7,447M includes some impairment reversals. Actually, let me recalculate EBITDA more carefully. The standard approach is: EBITDA = Operating Profit + Depreciation + Amortization Using "Profit Loss From Operating Activities" = 11,193,000,000 EUR as EBIT For D&A, I'll use the income statement line: "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 7,447,000,000 EUR But wait - this line includes "Impairment Loss Reversal" which is net. Let me check if there's a separate impairment line. Looking at the data: - "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" = 1,278,000,000 EUR (this is for trade receivables only) The D&A line of 7,447M includes impairment. For S&P methodology, they typically use reported D&A including impairments when calculating EBITDA, or they may adjust. Actually, let me think more carefully. The standard EBITDA calculation from S&P typically uses: - EBIT (Operating Profit) + Depreciation & Amortization If "Depreciation Amortisation And Impairment Loss" is 7,447M, this is the total charge. But EBITDA adds back only D&A, not impairment losses. However, looking more carefully at the structure, in many European financial statements, this line item is the total D&A charge. The "impairment loss reversal" part suggests it could be net of reversals. Let me use a different approach. I can calculate EBITDA from the cash flow statement or build it up. From the cash flow statement: - "Adjustments For Depreciation And Amortisation Expense And Impairment Loss Reversal" = 8,809,000,000 EUR This is the add-back in cash flow from operations, which suggests the actual expense was 8,809M. But wait - the income statement shows 7,447M. The difference might be due to discontinued operations or other adjustments. Let me verify EBIT first. The operating profit is 11,193M. Actually, let me check: Revenue - Operating Expense should equal Operating Profit. - Revenue 2022: 140,517,000,000 - Operating Expense 2022: 131,689,000,000 - Difference: 8,828,000,000 But "Profit Loss From Operating Activities" is 11,193,000,000. There's a difference of 2,365M. This difference is explained by "Net Results From Commodity Contracts" = 2,365,000,000 EUR, which is likely included in operating profit but not in the Revenue - Operating Expense calculation. Let me verify: 140,517 - 131,689 + 2,365 = 11,193. Yes! ✓ So Operating Profit (EBIT) = 11,193,000,000 EUR For EBITDA, I need to add back D&A. Let me use the cash flow adjustment figure which should be the actual D&A expense: 8,809,000,000 EUR. But actually, looking more carefully at S&P methodology, they typically use: EBITDA = Operating Profit + Depreciation & Amortization (as reported, or from cash flow statement) However, the 8,809M includes impairment. Let me see if I can separate this. Looking at the income statement line: "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 7,447M And the impairment on trade receivables = 1,278M (which is likely included in the 7,447M or separate) Actually, the 1,278M is "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" - this is a separate line item, likely part of operating expenses. Let me look at this differently. The total D&A and impairment in the income statement is 7,447M. But the cash flow adds back 8,809M. The difference (8,809 - 7,447 = 1,362M) might be impairment losses or other items. For conservative S&P methodology, let me use: - EBIT = 11,193M - D&A = 8,809M (from cash flow, as this represents the actual non-cash charges) EBITDA = 11,193 + 8,809 = **20,002,000,000 EUR** Wait - but this might double count. Let me reconsider. Actually, standard approach: EBITDA = EBIT + D&A expense (not including impairment) If the 7,447M is the total line item "Depreciation Amortisation And Impairment Loss", and it includes impairment, I should try to separate. But for practical purposes, S&P Global Ratings typically uses "adjusted EBITDA" which may include adding back certain items. They often use reported D&A. Let me use a cleaner approach. Looking at the data more carefully: EBITDA can be calculated as: - Revenue + Other Income - Cash Operating Costs + D&A Or simply: Operating Profit + D&A (where D&A is depreciation and amortization only) Given the data limitations, let me use: - EBIT (Operating Profit) = 11,193M - Add back: Depreciation and Amortization From the cash flow statement, the add-back is 8,809M. But this includes impairment. Actually, let me check if there's a better way. The line "Adjustments For Depreciation And Amortisation Expense And Impairment Loss Reversal" = 8,809M suggests this is total non-cash charges. For S&P methodology, they typically calculate EBITDA as: EBIT + D&A + other adjustments (like impairments if they're non-recurring) But standard EBITDA includes D&A, not impairments. However, in practice, when impairments are recurring or hard to separate, they may be included. Let me use the most common approach: EBITDA = Operating Profit + Depreciation & Amortization (using the income statement figure of 7,447M as the best proxy, or trying to estimate pure D&A) Actually, I realize I need to be more careful. Let me look at what S&P typically does. S&P Global Ratings' "adjusted EBITDA" often starts with reported EBITDA and makes adjustments. For a standard calculation, let me use: EBITDA = EBIT + D&A Where EBIT = 11,193M (operating profit) And D&A = I'll use the cash flow add-back of 8,809M as the most comprehensive figure for depreciation, amortization and impairment. But wait - if I use 8,809M, I'm adding back impairment losses which reduces EBITDA, making the ratio worse. Actually no - adding back increases EBITDA, making ratio better. Hmm, let me think again. If operating profit already has D&A and impairment deducted, then: EBITDA = Operating Profit + D&A + Impairment (if impairment is deducted to get to operating profit) Actually, operating profit (EBIT) is before interest and tax. It includes the impact of D&A and impairment expenses. So EBITDA = EBIT + D&A + Impairment losses (added back) If 7,447M is "Depreciation Amortisation And Impairment Loss", then adding this back gives us EBITDA before any other adjustments. EBITDA = 11,193 + 7,447 = 18,640,000,000 EUR But let me verify with another approach. Revenue - Cash costs = approximate EBITDA. Revenue = 140,517M Operating Expenses = 131,689M Difference = 8,828M But this includes D&A and other non-cash items in operating expenses. So this is not EBITDA. Actually, let me think about this more carefully. Operating Expenses of 131,689M includes: - Raw Materials: 96,896M - Services: 20,228M - Employee Benefits: 4,570M - D&A and Impairment: 7,447M - Other Expense: 4,685M - Less: Other Work Capitalized: (3,415)M - Less: Impairment Reversal on receivables: (1,278)M? Wait, let me check: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 = 130,411M. This doesn't equal 131,689M. The difference is 1,278M, which happens to be the impairment reversal on trade receivables. But that's a positive, so it would reduce expenses. 130,411 - 1,278 = 129,133M? No, that's not right either. Let me recalculate: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 = 130,411 But operating expense is 131,689. Difference is 1,278M. Hmm, maybe the impairment reversal is added to revenue or subtracted from expenses differently. Or maybe there are other items. Actually, let me check: 131,689 - 130,411 = 1,278. This equals the impairment reversal. But impairment reversal would reduce expenses, not increase them. So maybe it's recorded differently. Actually, looking at this again: "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" = 1,278M. This is a positive (reversal), so it increases profit. It might be in revenue or other income, or reducing operating expenses. Given the complexity, let me use the simplest and most standard approach: **EBITDA = Operating Profit + Depreciation & Amortization** Using: - Operating Profit = 11,193M - D&A = 7,447M (from income statement, the standard line item) EBITDA = 11,193 + 7,447 = **18,640,000,000 EUR** But wait - I want to double check if this D&A figure includes impairment. The line says "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss". This suggests it's net of impairment reversals. For S&P methodology, they might want to adjust this. But without more detail, let me proceed with this. Actually, I want to try another verification. Let me look at the cash flow from operations: Cash Flow from Operating Activities = 8,674M This is after working capital changes and other adjustments. Let me work backwards: Operating Profit: 11,193M + D&A and impairment (add back): 8,809M - Finance income/cost adjustment: -2,499M - Undistributed profits of equity method: 23M - Income tax expense: 3,470M + Working capital changes: 3,961M + Other adjustments... This is getting complex. Let me just use the standard EBITDA = EBIT + D&A approach. Actually, I realize I should check S&P's specific methodology more carefully. S&P Global Ratings typically uses: **Debt** = Short-term debt + Long-term debt + Current portion of long-term debt + Other debt-like items For Net Debt, they subtract cash and liquid investments. Let me recalculate more carefully: **Gross Debt:** - Short-term borrowings: 18,392M - Current portion of long-term borrowings: 2,835M - Long-term borrowings: 68,191M Total = 89,418M **Cash and Cash Equivalents:** 11,041M (from balance sheet) **Net Debt** = 89,418 - 11,041 = 78,377M For EBITDA, let me use the most standard calculation: From the income statement, I can build up: - Revenue: 140,517M - Less: Operating Expenses (cash costs): ? Actually, let me try: EBITDA = Revenue - Cash Operating Costs Cash operating costs would exclude D&A and impairment. But this is hard to calculate precisely. Let me use EBIT + D&A. EBIT = 11,193M D&A = ? From the cash flow, the add-back is 8,809M for "Depreciation And Amortisation Expense And Impairment Loss Reversal". This is the actual charge that was deducted to get to operating profit. So if operating profit of 11,193M was after deducting 8,809M of D&A and impairment, then: EBITDA = 11,193 + 8,809 = 20,002M Wait, but this 8,809M includes impairment reversals. Let me check if the 7,447M from income statement is a better measure. Actually, I think the 7,447M is the net line item in the income statement, while 8,809M is the cash flow adjustment. They might differ due to discontinued operations or other reasons. Looking at the data again: "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 7,447M And "Adjustments For Depreciation And Amortisation Expense And Impairment Loss Reversal" in cash flow = 8,809M The difference is 1,362M. This could be related to discontinued operations or other adjustments. For the most accurate S&P-style calculation, I should probably use the income statement figures for the continuing operations. Let me try: EBITDA = Operating Profit + D&A = 11,193 + 7,447 = 18,640M But actually, I want to verify if operating profit of 11,193M is before or after the 7,447M charge. Operating profit is definitely after D&A. So adding back gives EBITDA. However, I realize the 7,447M includes "Impairment Loss Reversal". If there was a reversal, this means impairment expense was negative (i.e., a credit). So the actual D&A might be higher. For example, if D&A was 8,000M and impairment reversal was 553M, then net is 7,447M. In this case, EBITDA = EBIT + D&A (not including impairment reversal) = 11,193 + 8,000 = 19,193M But we don't know the exact split. For conservative S&P analysis, they might use reported figures without adjustment. Let me use 18,640M or try to estimate better. Actually, let me look at this from another angle. The cash flow add-back of 8,809M is likely the most comprehensive figure for total D&A and impairment charges (net of reversals) for the period. If I use EBITDA = 11,193 + 8,809 = 20,002M, this might be more accurate. But wait - I need to check if operating profit of 11,193M includes discontinued operations or not. The data shows "Profit Loss From Operating Activities" without specifying. But there's also "Cash Flows From Used In Operating Activities Discontinued Operations" = -391M, suggesting discontinued operations are separated. Let me assume "Profit Loss From Operating Activities" is for continuing operations or total operations as reported. Given the ambiguity, let me use the most common approach in practice: **EBITDA = EBIT + Depreciation & Amortization** Where I'll use the income statement D&A figure of 7,447M as the standard add-back. EBITDA = 11,193 + 7,447 = 18,640M But I'm concerned this might understate EBITDA if the 7,447M includes a credit from impairment reversal. Let me try yet another approach. Looking at the cash flow statement more carefully: "Cash Flows From Used In Operating Activities" = 8,674M This starts from profit and adds back non-cash items. Let me see if I can derive EBITDA from this. Actually, a cleaner approach for EBITDA from cash flow: Cash from operations before working capital changes = 8,674 - 3,961 (working capital) = 4,713M? No, that's not right because other adjustments are also in there. Let me look at the adjustments to operating profit in cash flow: - Operating profit is not explicitly stated as starting point, but we can infer Actually, looking at standard cash flow presentation: Start with Profit Before Tax: 8,741M + Adjustments for non-cash items... But the data doesn't give me this directly. Let me try a completely different approach. I'll calculate EBITDA as: EBITDA = Revenue - Cash Costs (excluding D&A) From the income statement, total costs that are operating: Raw Materials: 96,896M Services: 20,228M Employee Benefits: 4,570M Other Expense: 4,685M Less: Other Work Capitalized: (3,415)M Total cash operating costs = 96,896 + 20,228 + 4,570 + 4,685 - 3,415 = 122,964M Wait, I need to check if this includes all operating expenses. Revenue = 140,517M Less: Operating Expense = 131,689M = Operating Profit before commodity contracts? No, operating profit is 11,193M. Actually, Revenue - Operating Expense = 8,828M, but operating profit is 11,193M. The difference is 2,365M = Net Results From Commodity Contracts. So the income statement structure seems to be: Revenue: 140,517M + Net Results from Commodity Contracts: 2,365M - Operating Expenses: 131,689M = Operating Profit: 11,193M Wait, that doesn't work: 140,517 + 2,365 - 131,689 = 11,193. Yes it does! ✓ So operating expenses of 131,689M includes all costs including D&A. If I want cash operating costs, I need to add back D&A to operating expenses: Cash operating costs = 131,689 + 7,447 = 139,136M? No wait, if D&A is included in operating expenses, then cash operating costs = 131,689 - 7,447 = 124,242M? But that assumes 7,447 is the only non-cash item, which isn't true because there's also impairment. Actually, let me think again. Operating expenses include: - Raw materials: 96,896M - Services: 20,228M - Employee benefits: 4,570M - D&A and impairment: 7,447M - Other expense: 4,685M - Less: Other work capitalized: (3,415)M - Plus/minus: other items? Let me add: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 = 130,411M But operating expenses are 131,689M. Difference is 1,278M. Hmm, this 1,278M equals the impairment reversal on trade receivables. But that's a positive item, so if it's in operating expenses, it would reduce them, not increase. Unless... the impairment reversal is recorded as negative expense (i.e., a credit), so: 130,411 - 1,278 = 129,133M? No, that goes the wrong way. Actually, maybe the 1,278M impairment reversal is not in operating expenses but elsewhere, or maybe my component sum is missing something. Let me check: 131,689 - 130,411 = 1,278. So there's 1,278M more expense than my sum. Maybe "Other Work Performed By Entity And Capitalised" of 3,415M is deducted, but I deducted it. Or maybe there's another item I'm missing. Actually, looking at the data again, I see "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" = 1,278M. This is a reversal (positive), so it increases profit. If it's included in revenue or as a separate positive line, it wouldn't be in operating expenses. But wait - I need to check if operating expenses are presented gross or net. If the 1,278M reversal is netted against impairment expense in operating expenses, then operating expenses would be lower, not higher. I'm getting confused with the sign conventions. Let me just use the direct approach: **EBITDA = Operating Profit + D&A** And for D&A, I'll use the most standard figure. Let me check if S&P typically uses reported D&A or adjusted. After all this analysis, let me settle on: EBIT = 11,193M (Operating Profit) D&A = 7,447M (from income statement, standard line item) But I want to also consider: if the 7,447M includes "Impairment Loss Reversal", then the actual D&A charge might be higher. For example, if gross D&A is 8,000M and impairment reversal is 553M, then net reported is 7,447M. In this case, true D&A = 8,000M and EBITDA = 11,193 + 8,000 = 19,193M. But we don't know this split. The cash flow add-back of 8,809M suggests total non-cash charges might be around this level. Let me use the cash flow figure as the most comprehensive: EBITDA = 11,193 + 8,809 = 20,002M Actually, I want to re-examine. The cash flow statement shows: "Adjustments For Depreciation And Amortisation Expense And Impairment Loss Reversal" = 8,809M This is added back to profit to get to cash flow. This means 8,809M was deducted as expense in arriving at profit. So if profit before this adjustment was X, then X - 8,809 = reported profit (or part of the path to reported profit). For EBITDA, we want to add back D&A to EBIT. If the 8,809M is the total non-cash charge deducted to get from EBITDA to EBIT, then: EBITDA - 8,809 = EBIT (approximately) So EBITDA = EBIT + 8,809 = 11,193 + 8,809 = 20,002M This makes sense. The 7,447M in the income statement might be for continuing operations only, while 8,809M includes all operations. Actually, let me check if discontinued operations have separate D&A. The data doesn't show separate D&A for discontinued operations. Given all this, I'll use: - **Net Debt** = 78,377M - **EBITDA** = 20,002M (using EBIT + total D&A and impairment from cash flow) Wait, I want to double-check the debt calculation. S&P might include other debt-like items. Looking at the balance sheet: - Short-term borrowings: 18,392M - Current portion of long-term borrowings: 2,835M - Long-term borrowings: 68,191M Are there other debt items? Let me check: - Current Derivative Financial Liabilities: 16,141M (these are derivatives, not debt) - Noncurrent Derivative Financial Liabilities: 5,895M (derivatives) - Other financial liabilities: various S&P typically includes in debt: - All borrowings (short-term, long-term, current portion) - Finance lease obligations - Pension deficits (sometimes) - Preferred shares (sometimes) - Minority interests in certain cases For a basic calculation, I'll stick with borrowings only. But let me also check if there are debt-like items in "Other Current Financial Liabilities" or "Other Noncurrent Financial Liabilities". Other Current Financial Liabilities: 853M Other Noncurrent Financial Liabilities: 0M These might include debt-like items, but without more detail, I'll exclude them for a standard calculation. Also, I should check if there are lease liabilities. The data doesn't explicitly show "Lease Liabilities", so they might be included in borrowings or other categories. For a standard S&P calculation, let me use: **Total Debt** = 89,418M **Cash** = 11,041M **Net Debt** = 78,377M For EBITDA, let me reconsider one more time. I'll use the most common and defensible approach: EBITDA = Operating Profit + Depreciation & Amortization Using Operating Profit = 11,193M And D&A = 7,447M (income statement figure) EBITDA = 18,640M But I want to verify this makes sense. Let me check the ratio: Net Debt / EBITDA = 78,377 / 18,640 = 4.20x If I use EBITDA = 20,002M: ratio = 78,377 / 20,002 = 3.92x The difference is meaningful. Let me see if I can find more clues. Actually, I realize I should look at whether S&P adjusts EBITDA for commodity contracts or other items. The "Net Results From Commodity Contracts" of 2,365M might be something S&P adjusts. But in standard EBITDA, this would be included as it's part of operating profit. Let me try yet another verification. I can calculate EBITDA from the cash flow statement: Cash from Operations = 8,674M + Interest Paid (in operating activities) = 5,016M? - Interest Received (in operating activities) = 2,622M? + Income Taxes Paid = 1,934M + Working Capital Changes = -3,961M (actually this is already in cash from ops) Hmm, the cash flow statement is already presented in a certain format. Let me not try to reverse-engineer. Actually, a standard relationship is: Cash from Operations (before working capital) ≈ EBITDA - Interest - Taxes But this is approximate. Let me just make a decision. I'll use: **EBITDA = EBIT + D&A = 11,193 + 7,447 = 18,640M** This is conservative and standard. The 7,447M is the reported D&A and impairment line, and if impairment reversal is included, it slightly understates true D&A, making EBITDA conservative. Actually wait - I want to check one more thing. Is the 7,447M a positive or negative number in the income statement? It's presented as "Depreciation Amortisation And Impairment Loss Reversal" which suggests it's an expense (positive amount = expense). And "Impairment Loss Reversal Of Impairment Loss" = 1,278M - this is a reversal, so it's income (positive amount = income). If the 7,447M includes a reversal, it would be net of the reversal. So gross D&A might be higher. For example: D&A = 8,725M, Impairment reversal = (1,278M), Net = 7,447M. In this case, adding back 7,447M to EBIT gives EBITDA that includes the benefit of the impairment reversal, which might not be appropriate for a normalized metric. For S&P's "adjusted EBITDA", they might normalize this by excluding the impairment reversal. But without knowing the exact split, I'll use reported figures. Final decision: - **Net Debt** = 78,377 million EUR - **EBITDA** = 18,640 million EUR (11,193 + 7,447) Wait, I want to do one more verification. Let me check if there's an alternative EBITDA calculation using revenue and cash costs. From the income statement components: Revenue: 140,517M - Raw Materials: 96,896M - Services: 20,228M - Employee Benefits: 4,570M - Other Expense: 4,685M + Other Work Capitalized: 3,415M (this is a reduction of expense) = 140,517 - 96,896 - 20,228 - 4,570 - 4,685 + 3,415 = 17,553M Hmm, this doesn't equal 18,640M. The difference is 1,087M. This difference could be due to: - Net Results from Commodity Contracts: 2,365M (but this would increase, not decrease) - Or the fact that my cost items don't sum to total operating expenses Let me check: 96,896 + 20,228 + 4,570 + 7,447 + 4,685 - 3,415 = 130,411M Plus other items to get to 131,689M = difference of 1,278M If I exclude D&A (7,447M) from operating expenses: Cash costs = 131,689 - 7,447 = 124,242M Then EBITDA = Revenue + Commodity results - Cash costs = 140,517 + 2,365 - 124,242 = 18,640M ✓ This matches! So my calculation is consistent. Actually wait, I need to be more careful. Is "Net Results From Commodity Contracts" part of revenue or a separate item? Looking at the data, "Revenue" is 140,517M and "Net Results From Commodity Contracts" is 2,365M separately. If Revenue includes commodity contracts, then total income is 140,517M. If not, then total revenue-like income is 142,882M. But "Revenue From Sales And Services" is 135,653M, and "Other Income" is 4,864M, summing to 140,517M = "Revenue". So "Revenue" is the total of these. Then "Net Results From Commodity Contracts" of 2,365M is additional operating income. So total operating income = 140,517 + 2,365 = 142,882M Then EBITDA = 142,882 - 124,242 = 18,640M ✓ This confirms: EBITDA = 18,640M Now for Net Debt, let me also verify: Total Borrowings = 18,392 + 2,835 + 68,191 = 89,418M Cash = 11,041M Net Debt = 78,377M Net Debt / EBITDA = 78,377 / 18,640 = 4.204... Let me calculate more precisely: 78,377 / 18,640 = 4.204774678... Rounding to two decimal places: 4.20 But let me also consider if S&P would include other items in debt. For example: - Current Derivative Financial Liabilities: 16,141M (these are typically not debt) - Noncurrent Derivative Financial Liabilities: 5,895M (not debt) S&P might also subtract more liquid items from cash, or include restricted cash. For a standard calculation, I'll use 4.20. But wait - I want to check one more thing. Should I use "Cash And Cash Equivalents" from the balance sheet (11,041M) or from the cash flow note (11,543M)? The balance sheet shows: "Cash And Cash Equivalents" 2023-01-01: 11,041M The cash flow shows: "Cash And Cash Equivalents If Different From Statement Of Financial Position" 2023-01-01: 11,543M And "Cash And Cash Equivalents Of Continuing Operations" 2023-01-01: 11,041M The 11,543M includes discontinued operations and held for sale: 11,041 + 98 + 326 = 11,465? Hmm, that doesn't sum to 11,543. Actually: 11,041 + 78 + 98 + 326 = 11,543? Let me check: 11,041 + 78 = 11,119; +98 = 11,217; +326 = 11,543. Yes! So 11,543M = continuing operations cash (11,041M) + short-term investments (78M) + held for sale (98M) + discontinued operations (326M). For Net Debt calculation, S&P typically uses unrestricted cash and cash equivalents. They might use 11,041M or 11,543M depending on methodology. If they include all cash and cash equivalents: 11,543M Net Debt = 89,418 - 11,543 = 77,875M Ratio = 77,875 / 18,640 = 4.178 If they use continuing operations only: 11,041M Net Debt = 78,377M Ratio = 4.205 I'll use the balance sheet figure of 11,041M as it's the standard "Cash And Cash Equivalents" line item. Final calculation: Net Debt = 89,418 - 11,041 = 78,377 million EUR EBITDA = 11,193 + 7,447 = 18,640 million EUR Net Debt / EBITDA = 78,377 / 18,640 = 4.204774678... Rounded to two decimal places: **4.20** 4.20