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

## Step 1: Calculate EBITDA

S&P's EBITDA typically starts with operating income and adds back depreciation, amortization, and impairment losses.

**Operating Income (after equity method):** 2,333,300,000 EUR (for 2022-01-01 to 2023-01-01 period, which is FY2022)

**Operating Depreciation, Amortization, Provisions and Impairment Losses:** 3,178,600,000 EUR

However, S&P EBITDA is typically calculated as:
- EBITDA = Operating Income before equity method + D&A

Operating Income before share of equity-accounted entities: 2,206,300,000 EUR
Plus D&A: 3,178,600,000 EUR

**EBITDA = 2,206,300,000 + 3,178,600,000 = 5,384,900,000 EUR**

Under S&P methodology, we should also consider lease liabilities (IFRS 16). S&P typically adds back lease depreciation and treats leases as debt. However, since the D&A figure likely already includes IFRS 16 right-of-use asset depreciation, and we'll include lease liabilities in debt, this is consistent.

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

S&P Net Debt includes:
- Non-current financial liabilities (excluding concession): 19,692,100,000
- Current financial liabilities (excluding concession): 6,521,400,000
- Non-current lease liabilities: 1,656,200,000
- Current lease liabilities: 496,500,000
- Non-current concession liabilities: 1,680,500,000
- Current concession liabilities: 243,200,000
- Bank overdrafts: 213,600,000

**Gross Debt = 19,692,100,000 + 6,521,400,000 + 1,656,200,000 + 496,500,000 + 1,680,500,000 + 243,200,000 + 213,600,000 = 30,503,500,000 EUR**

S&P typically treats deeply subordinated securities (hybrid bonds) with 50% equity / 50% debt treatment. The hybrid securities amount is 3,496,300,000 EUR, so 50% debt = 1,748,150,000 EUR. But these are already classified in equity, so we need to add the debt portion.

**Adjusted Gross Debt = 30,503,500,000 + 1,748,150,000 = 32,251,650,000 EUR**

**Cash and Cash Equivalents:** 9,012,200,000 EUR

S&P may not give full credit for cash. However, for a standard calculation, let's subtract cash:

**Net Debt = 32,251,650,000 - 9,012,200,000 = 23,239,450,000 EUR**

## Step 3: Adjust EBITDA for S&P

S&P also adjusts EBITDA for the 50% hybrid coupon treatment and operating lease reclassification. However, since IFRS 16 is already applied, lease payments are already split between depreciation and interest in the income statement.

For hybrid coupons: 88,300,000 EUR coupons. Under 50% equity treatment, 50% would be treated as interest expense (already not in operating income since it's in equity). No adjustment needed to EBITDA.

**EBITDA ≈ 5,384,900,000 EUR**

## Step 4: Calculate Ratio

**Net Debt / EBITDA = 23,239,450,000 / 5,384,900,000 ≈ 4.31**

If we exclude concession liabilities (which some methodologies treat differently) and simplify:

Without concession liabilities: 30,503,500,000 - 1,680,500,000 - 243,200,000 = 28,579,800,000
Net: 28,579,800,000 + 1,748,150,000 - 9,012,200,000 = 21,315,750,000
Ratio = 21,315,750,000 / 5,384,900,000 ≈ 3.96

Given S&P typically includes all financial obligations, I'll go with the more comprehensive calculation:

**Net Debt / EBITDA ≈ 4.3**

<answer>4.3</answer>