To estimate S&P’s adjusted leverage trend, use:

**Net Debt / EBITDA**

Approximate **Net Debt** as:

**Financial liabilities − Cash and cash equivalents**

Using year-end balance sheet figures:

### 2021 / beginning of 2022
- Noncurrent financial liabilities: EUR 1,834.155m
- Current financial liabilities: EUR 1,462.453m
- Cash and cash equivalents: EUR 318.562m

Net debt = 1,834.155 + 1,462.453 − 318.562 = **EUR 2,978.046m**

EBITDA for 2021 = **EUR 1,578.959m**

Net Debt / EBITDA = 2,978.046 / 1,578.959 = **1.89x**

### 2022 / beginning of 2023
- Noncurrent financial liabilities: EUR 2,844.559m
- Current financial liabilities: EUR 1,109.297m
- Cash and cash equivalents: EUR 409.252m

Net debt = 2,844.559 + 1,109.297 − 409.252 = **EUR 3,544.604m**

EBITDA for 2022 = **EUR 3,160.679m**

Net Debt / EBITDA = 3,544.604 / 3,160.679 = **1.12x**

### Year-on-year change
Change = 1.12x − 1.89x = **−0.77x**

Since the leverage ratio decreased by more than 0.3x, the adjusted leverage trend is **Improving**.

<answer>Improving</answer>