I need to estimate Moody's adjusted leverage trend for 2022 (the fiscal year ending January 1, 2023).

Moody's adjusted leverage is typically measured as Adjusted Debt / Adjusted EBITDA.

**Step 1: Estimate EBITDA**

EBITDA = Operating Profit + Depreciation & Amortization

For FY2022 (2022-01-01 to 2023-01-01):
- Operating Profit: 1,333,500,000 EUR
- D&A: 725,700,000 EUR
- EBITDA = 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR

For FY2021 (2021-01-01 to 2022-01-01):
- Operating Profit: 1,200,400,000 EUR
- D&A: 654,400,000 EUR
- EBITDA = 1,200,400,000 + 654,400,000 = 1,854,800,000 EUR

**Step 2: Estimate Adjusted Debt**

Moody's typically includes reported debt plus adjustments for operating leases, pensions, hybrid bond treatment, etc.

Reported debt (FY2022 end = 2023-01-01):
- Long-term borrowings: 8,416,700,000
- Short-term borrowings: 444,100,000
- Current portion of long-term: 1,909,300,000
- Total reported debt: 10,770,100,000

Reported debt (FY2021 end = 2022-01-01):
- Long-term borrowings: 8,835,000,000
- Short-term borrowings: 1,947,000,000
- Current portion of long-term: 1,640,000,000
- Total reported debt: 12,422,000,000

Note: In FY2022, Terna issued a hybrid bond (989,000,000 EUR) classified as equity. Moody's typically gives 50% equity credit to hybrid bonds, meaning 50% (~494,500,000) would be added back as debt.

Adjusted Debt FY2022: ~10,770,100,000 + 494,500,000 (hybrid 50%) + pension adjustments ≈ ~11,313,000,000
Adjusted Debt FY2021: ~12,422,000,000 + pension adjustments ≈ ~12,483,000,000

**Step 3: Moody's Adjusted EBITDA**
Moody's adds back operating lease expenses and other adjustments, but the core EBITDA growth is significant.

**Step 4: Calculate Leverage**

FY2022 Leverage ≈ 11,313,000,000 / 2,059,200,000 ≈ 5.5x
FY2021 Leverage ≈ 12,483,000,000 / 1,854,800,000 ≈ 6.7x

Even without the hybrid adjustment, the raw debt decreased significantly (from ~12.4B to ~10.8B) while EBITDA increased from ~1.85B to ~2.06B.

Leverage ratio:
- FY2021: ~12,422/1,855 ≈ 6.7x
- FY2022: ~10,770/2,059 ≈ 5.2x (without hybrid adjustment)
- FY2022: ~11,265/2,059 ≈ 5.5x (with 50% hybrid as debt)

Either way, leverage improved significantly - debt decreased materially (short-term borrowings dropped from 1,947M to 444M) and EBITDA grew ~11%.

The leverage trend is clearly **improving**.

<answer>Improving</answer>