I need to calculate the Net Debt / EBITDA ratio for 2022 using S&P methodology. First, let me identify the components needed: **EBITDA for 2022:** From the data, "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" for 2022-01-01 - 2023-01-01 is: **32,057,000,000 DKK** This is essentially EBITDA. **Net Debt calculation:** Net Debt = Total Debt - Cash and Cash Equivalents I need to find total borrowings (short-term + long-term): Long-term borrowings (2023-01-01): 60,451,000,000 DKK Short-term borrowings (2023-01-01): 2,830,000,000 DKK Total Debt = 60,451,000,000 + 2,830,000,000 = 63,281,000,000 DKK Cash and Cash Equivalents (2023-01-01): 16,175,000,000 DKK Net Debt = 63,281,000,000 - 16,175,000,000 = 47,106,000,000 DKK Wait - I need to check the S&P methodology more carefully. S&P typically uses year-end debt figures, and for EBITDA they use the last 12 months. Let me verify I'm using the right period. For 2022 annual report (period 2022-01-01 to 2023-01-01), the balance sheet figures at 2023-01-01 represent the end of 2022. However, I should also check if there are lease liabilities included. Under S&P methodology, lease liabilities are typically included in debt. Lease liabilities: Noncurrent Lease Liabilities (2023-01-01): 7,697,000,000 DKK Current Lease Liabilities (2023-01-01): 569,000,000 DKK Total Lease Liabilities = 8,266,000,000 DKK Total Debt including leases = 63,281,000,000 + 8,266,000,000 = 71,547,000,000 DKK Net Debt including leases = 71,547,000,000 - 16,175,000,000 = 55,372,000,000 DKK Actually, let me reconsider. S&P Global Ratings methodology for Net Debt typically includes: - Short-term borrowings - Long-term borrowings - Lease liabilities (both current and non-current) - Less: Cash and cash equivalents - Less: Liquid investments (if any) Looking at the data more carefully, I need to check if there are other items. Let me also check "Current Financial Assets At Fair Value Through Profit Or Loss Classified As Held For Trading" - these might be considered liquid investments. However, for standard Net Debt/EBITDA, I'll use: - Total borrowings (short and long term) - Plus lease liabilities - Less cash and cash equivalents Let me recalculate: Borrowings: - Long-term: 60,451,000,000 - Short-term: 2,830,000,000 Total borrowings: 63,281,000,000 Lease liabilities: - Noncurrent: 7,697,000,000 - Current: 569,000,000 Total leases: 8,266,000,000 Gross Debt = 63,281,000,000 + 8,266,000,000 = 71,547,000,000 Cash and Cash Equivalents: 16,175,000,000 (at 2023-01-01) Net Debt = 71,547,000,000 - 16,175,000,000 = 55,372,000,000 EBITDA = 32,057,000,000 Net Debt / EBITDA = 55,372,000,000 / 32,057,000,000 = 1.727 Let me double-check by also considering if we should use average or year-end figures. S&P typically uses year-end net debt and LTM EBITDA. Actually, I want to verify my EBITDA figure. Let me also calculate EBITDA from the components to cross-check: Revenue: 132,277,000,000 Cost of Sales: -97,163,000,000 Other External Expenses: -7,049,000,000 Employee Benefits: -5,278,000,000 Other Income: +14,119,000,000 Share of Profit (core): +114,000,000 Operating profit before D&A = 132,277 - 97,163 - 7,049 - 5,278 + 14,119 + 114 = 37,020,000,000? Wait, that doesn't match. Let me look at the given EBITDA figure again. The stated "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" is 32,057,000,000. This already includes Other Income and Share of Profit. Let me verify: Revenue - Cost of Sales - Other External Expenses - Employee Benefits + Other Income + Share of Profit (core) - Other Expense By Nature? 132,277 - 97,163 - 7,049 - 5,278 + 14,119 + 0.114 - 4,963 = 32,057? 132,277 - 97,163 = 35,114 35,114 - 7,049 = 28,065 28,065 - 5,278 = 22,787 22,787 + 14,119 = 36,906 36,906 + 114 = 37,020 37,020 - 4,963 = 32,057 Yes! That matches. So EBITDA = 32,057,000,000 DKK. Now for Net Debt, I need to be more careful about S&P methodology. S&P typically includes: - All interest-bearing debt - Lease liabilities (operating and finance) - Pension liabilities (sometimes) - Less: Cash and cash equivalents - Less: Marketable securities/liquid investments Looking at the balance sheet, "Current Financial Assets At Fair Value Through Profit Or Loss Classified As Held For Trading" at 25,197,000,000 DKK - these are likely trading assets, not necessarily liquid cash equivalents. For standard Net Debt/EBITDA as commonly used: Net Debt = Total Debt - Cash & Cash Equivalents Where Total Debt = Short-term borrowings + Long-term borrowings + Current portion of long-term debt + Lease liabilities Using the figures at 2023-01-01 (end of 2022): - Short-term borrowings: 2,830,000,000 - Long-term borrowings: 60,451,000,000 - Noncurrent lease liabilities: 7,697,000,000 - Current lease liabilities: 569,000,000 Total Debt = 71,547,000,000 Cash & Cash Equivalents = 16,175,000,000 Net Debt = 55,372,000,000 Net Debt / EBITDA = 55,372 / 32,057 = 1.7273... Let me round to a reasonable precision: 1.73 or about 1.7 Actually, I want to double-check if S&P includes lease liabilities in Net Debt. In recent years with IFRS 16, S&P does include lease liabilities in adjusted debt metrics. However, some variations of Net Debt/EBITDA exclude leases from debt but also exclude lease-related depreciation from EBITDA. Since our EBITDA is pre-IFRS 16 impact (it's operating EBITDA), we should include lease liabilities in debt for consistency. Let me verify my calculation once more: 55,372,000,000 / 32,057,000,000 = 1.7273... Or if we use a simpler definition without leases: Net Debt = 63,281,000,000 - 16,175,000,000 = 47,106,000,000 Ratio = 47,106 / 32,057 = 1.469 Given S&P methodology explicitly includes leases in total debt, I'll use the higher figure. Actually, let me reconsider whether to use 2022-01-01 or 2023-01-01 figures for debt. Since we're calculating for 2022, and the period is 2022-01-01 to 2023-01-01, the ending balance sheet at 2023-01-01 represents the state at end of 2022. For the most accurate S&P calculation, I should check if there are other debt-like items: - Deferred tax liabilities? No, these are not debt - Provisions? Typically not included in Net Debt - Derivative liabilities? These are mark-to-market, not principal debt - Contract liabilities? These are operating, not debt So my calculation stands: Net Debt = 55,372,000,000 DKK EBITDA = 32,057,000,000 DKK Ratio = 1.73 Let me do the exact division: 55372 / 32057 = 1.727296... 1.73