# Net Debt / EBITDA Ratio Estimation (S&P Methodology)

## Step 1: Calculate EBITDA

Under S&P methodology, EBITDA = Operating Profit + Depreciation & Amortization

From the income statement for the period 2022-01-01 to 2023-01-01 (fiscal year 2022):

**Operating Profit (Profit Loss From Operating Activities):** 423,000,000 EUR

**Depreciation & Amortization:** 299,000,000 EUR

**EBITDA = 423 + 299 = 722 million EUR**

However, S&P typically considers EBITDA from continuing operations and may include discontinued operations. Let me also note that the gross profit from discontinued operations was 155 million EUR. But for a cleaner calculation, I'll focus on the reported figures.

S&P methodology also typically adjusts for equity method investees and may add back certain items, but let's work with what we have. The share of profit from associates (165M) is below operating profit, and S&P sometimes includes dividends received from associates instead. Dividends received from associates classified as operating activities = 284M EUR.

For S&P, a more adjusted EBITDA might be:
EBITDA = Operating Profit (before equity method) + D&A + Dividends from associates
= 423 + 299 = 722M (basic EBITDA from continuing operations)

Including discontinued operations EBITDA: The gross profit from discontinued operations is 155M, so total EBITDA including discontinued operations ≈ 722 + 155 = 877M. But let's be conservative and use the continuing operations figure plus some adjustment.

Actually, let me use a simpler S&P approach: EBITDA = Gross Profit (including discontinued) - which is given as 883M, plus amortization of 299M... No, that's not right. Gross profit already includes D&A subtracted after it.

Let me recalculate:
- Revenue and Operating Income: 7,553M
- Operating Expense: 6,825M  
- Gross Profit: 728M
- Amortisation: 299M
- Operating Profit before impairment: 429M

**EBITDA (continuing operations) = 429 + 299 = 728M** (which equals Gross Profit, confirming consistency)

Including discontinued operations: Gross Profit Including Discontinued = 883M. This likely represents EBITDA including discontinued operations.

I'll use **EBITDA ≈ 883M EUR** as a broad measure, but the core continuing EBITDA = 728M.

## Step 2: Calculate Net Debt (S&P Methodology)

S&P Net Debt = Total Debt - Cash & Cash Equivalents (with adjustments)

**Total Debt:**
- Noncurrent borrowings: 10,776M
- Noncurrent lease liabilities: 120M
- Current borrowings: 877M
- Current lease liabilities: 64M
- Other noncurrent financial liabilities: 838M (S&P may include this)

S&P includes lease liabilities in debt.

Total Debt = 10,776 + 120 + 877 + 64 = 11,837M (excluding other financial liabilities)
Or including other noncurrent financial liabilities: 11,837 + 838 = 12,675M

**Cash & Equivalents:** 5,130M

However, S&P typically considers restricted cash as not available, so:
- Unrestricted cash: 5,130 - 168 (infrastructure project cash which may be restricted) = 4,962M
- But restricted cash in current assets (38M) is already part of the 168M infrastructure cash

S&P would likely use cash excluding infrastructure project restricted amounts.
Available cash ≈ 4,962M (cash excluding infrastructure projects)

**Net Debt = 11,837 - 5,130 = 6,707M** (using total cash)
Or **Net Debt = 12,675 - 5,130 = 7,545M** (including other financial liabilities)

## Step 3: Net Debt / EBITDA

Using core figures:
- Net Debt (with leases, without other financial liabilities) = 6,707M
- EBITDA (continuing + discontinued) = 883M

**Net Debt / EBITDA = 6,707 / 883 ≈ 7.6x**

Using continuing operations EBITDA:
**Net Debt / EBITDA = 6,707 / 728 ≈ 9.2x**

Given S&P's typical approach including leases and using broader EBITDA:

**Net Debt / EBITDA ≈ 7.6x**

<answer>7.6</answer>