# Reasoning for FFO / Net Debt Ratio (S&P Methodology) for 2022

## FFO (Funds From Operations) Calculation

Under S&P methodology, FFO is typically calculated as:
**FFO = Net Income + Depreciation & Amortization - Changes in Working Capital + Other Adjustments**

For VINCI 2022 (fiscal year 2022-01-01 to 2023-01-01):

1. **Net Income (Profit attributable to owners of parent)**: €4,259 million
2. **Depreciation & Amortization**: €3,613 million
3. **Changes in Working Capital**: €-392 million (increase in WC reduces FFO)
4. **Share-based payments (add back)**: €162 million
5. **Gains on disposal of assets (subtract)**: €-68 million
6. **Fair value adjustments (subtract)**: €-236 million
7. **Share of profits from JVs/Associates (subtract)**: €22 million (already in net income, subtract to avoid double counting)

**FFO = 4,259 + 3,613 - 392 + 162 - 68 - 236 - 22 = 7,316 million EUR**

## Net Debt Calculation

**Net Debt = Total Debt - Cash and Cash Equivalents**

From the balance sheet at 2023-01-01 (end of 2022 fiscal year):

**Total Debt Components:**
- Noncurrent Bonds Issued: €20,425 million
- Noncurrent Other Borrowings: €3,205 million
- Short-term Borrowings: €6,368 million
- Current Lease Liabilities: €522 million
- Noncurrent Lease Liabilities: €1,580 million

**Total Debt = 20,425 + 3,205 + 6,368 + 522 + 1,580 = €32,100 million**

**Less: Cash and Cash Equivalents: €12,578 million**

**Net Debt = 32,100 - 12,578 = €19,522 million**

## FFO / Net Debt Ratio

**FFO / Net Debt = 7,316 / 19,522 = 0.375**

<answer>0.375</answer>