I need to calculate the Net Debt / EBITDA ratio for 2022 using S&P methodology. First, let me identify the key components needed: **EBITDA for 2022 (2022-01-01 to 2023-01-01):** From the data, I can find "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" = 499,430,000 EUR Let me verify this by calculating from the income statement: - Revenue: 713,840,000 - Other Income: 12,678,000 - Total income = 726,518,000 Expenses to subtract to get to operating profit before depreciation/amortization: - Other Purchase Expense: 15,188,000 - Services Expense And Miscellaneous Other Operating Expense: 156,792,000 - Impairment Loss Recognised In Profit Or Loss Trade Receivables: 300,000 - Employee Benefits Expense: 54,808,000 Total operating expenses (excluding depreciation and amortization) = 15,188,000 + 156,792,000 + 300,000 + 54,808,000 = 227,088,000 Operating profit before depreciation and amortization = 726,518,000 - 227,088,000 = 499,430,000 This matches the reported EBITDA figure of 499,430,000 EUR. **Net Debt for 2022:** Net Debt = Total Debt - Cash and Cash Equivalents I need to identify debt items. From the balance sheet at 2023-01-01 (end of 2022) and 2022-01-01 (end of 2021): For 2022 year-end (2023-01-01): - Other Noncurrent Financial Liabilities: 1,751,255,000 - Noncurrent Lease Liabilities: 150,955,000 - Current Financial Liabilities At Fair Value Through Profit Or Loss: 76,644,000 - Other Current Financial Liabilities: 389,716,000 - Current Lease Liabilities: 6,362,000 Total Debt = 1,751,255,000 + 150,955,000 + 76,644,000 + 389,716,000 + 6,362,000 = 2,374,932,000 Wait - let me reconsider. The S&P methodology typically includes: - Financial liabilities (debt) - Less: Cash and cash equivalents But I need to be careful about what constitutes "debt" in S&P methodology. Typically: - Borrowings and debt instruments - Lease liabilities may or may not be included depending on version Let me check if there are specific debt items. Looking at "Other Noncurrent Financial Liabilities" - this likely includes bonds and bank debt. Actually, let me look more carefully. The S&P methodology for Net Debt typically includes: - Short-term borrowings - Current portion of long-term debt - Long-term debt - Less: Cash and cash equivalents - Less: Marketable securities (sometimes) From the balance sheet at 2023-01-01 (end of 2022): - Other Noncurrent Financial Liabilities: 1,751,255,000 - Other Current Financial Liabilities: 389,716,000 - Current Financial Liabilities At Fair Value Through Profit Or Loss: 76,644,000 These look like the main debt items. Lease liabilities are sometimes excluded in older S&P methodology but included in newer versions. Let me also check 2022-01-01 for comparison and to understand the structure better. Actually, for S&P methodology, I need to check if they include lease liabilities. Standard S&P Global Ratings methodology typically includes: - Total debt (including lease liabilities in recent versions) - Less: Cash and cash equivalents Let me calculate with lease liabilities included (current approach): Debt at 2023-01-01: - Other Noncurrent Financial Liabilities: 1,751,255,000 - Noncurrent Lease Liabilities: 150,955,000 - Current Financial Liabilities At Fair Value Through Profit Or Loss: 76,644,000 - Other Current Financial Liabilities: 389,716,000 - Current Lease Liabilities: 6,362,000 Total Debt = 2,374,932,000 Cash and Cash Equivalents at 2023-01-01: 392,811,000 Net Debt = 2,374,932,000 - 392,811,000 = 1,982,121,000 But wait - I should also consider if there are other cash-like items. "Current Financial Assets At Fair Value Through Profit Or Loss" (141,568,000) and "Other Current Financial Assets" (211,136,000) might be liquid investments. However, standard S&P Net Debt typically only subtracts Cash and Cash Equivalents, not all financial assets. Let me reconsider - the question asks for 2022. The period 2022-01-01 to 2023-01-01 represents fiscal year 2022, and the balance at 2023-01-01 is year-end 2022. Actually, I need to double-check my debt identification. Let me look at what changed: From 2022-01-01 to 2023-01-01: - Other Noncurrent Financial Liabilities: 2,064,088,000 → 1,751,255,000 (decrease) - Noncurrent Lease Liabilities: 122,663,000 → 150,955,000 (increase) - Current Financial Liabilities At Fair Value Through Profit Or Loss: 170,857,000 → 76,644,000 (decrease) - Other Current Financial Liabilities: 1,342,688,000 → 389,716,000 (decrease significantly) - Current Lease Liabilities: 6,282,000 → 6,362,000 The large decrease in Other Current Financial Liabilities suggests debt repayment. For S&P methodology, let me verify if I should use average or year-end values. Typically Net Debt/EBITDA uses year-end net debt. But I need to be more careful. Let me check if "Other Current Financial Assets" includes things that should be subtracted. In some S&P methodologies, liquid financial assets are subtracted. Actually, looking more carefully at standard S&P Global Ratings methodology: - Gross debt includes: short-term debt, current portion of long-term debt, long-term debt, and finance lease obligations - Net debt = Gross debt - cash and cash equivalents - marketable securities (if readily marketable) Let me check if "Current Financial Assets At Fair Value Through Profit Or Loss" (141,568,000) should be considered as marketable securities. These are likely derivatives or trading assets, not necessarily liquid cash equivalents. For a cleaner approach, let me use the standard definition: - Debt = Noncurrent financial liabilities (debt portion) + Current financial liabilities (debt portion) + Lease liabilities Actually, I realize I need to look more carefully at what's in "Other Noncurrent Financial Liabilities" and "Other Current Financial Liabilities". These are broad categories. Looking at the cash flow statement: - Repayments Of Noncurrent Borrowings: 350,218,000 - Cash Flows From Used In Increase Decrease In Current Borrowings: -1,000,134,000 (negative means repayment) This confirms significant debt repayment in 2022. Let me try a different approach. In S&P methodology, sometimes they specifically look at "adjusted debt" which includes certain items. For practical purposes, let me calculate Net Debt as: - Total financial liabilities (excluding derivatives at FVTPL if they are not debt-like) - Less: Cash and cash equivalents Actually, "Current Financial Liabilities At Fair Value Through Profit Or Loss" at 76,644,000 - these could be derivative liabilities, not debt. Let me check if they should be included. Looking at the 2022-01-01 balance: 170,857,000. And in cash flows: "Adjustments For Gains Losses On Change In Fair Value Of Derivatives" = 34,549,000. This suggests these are derivative instruments. For S&P debt calculations, derivative liabilities are typically excluded from debt (they're operating/financing but not debt principal). So let me recalculate debt excluding derivative liabilities at FVTPL: Debt at 2023-01-01: - Other Noncurrent Financial Liabilities: 1,751,255,000 - Noncurrent Lease Liabilities: 150,955,000 - Other Current Financial Liabilities: 389,716,000 - Current Lease Liabilities: 6,362,000 Total Debt = 2,298,288,000 Net Debt = 2,298,288,000 - 392,811,000 = 1,905,477,000 But I need to check if lease liabilities should be included. In modern S&P methodology post-IFRS 16, lease liabilities are included in debt. Let me verify by checking if there's a "Noncurrent Financial Liabilities At Fair Value Through Profit Or Loss" - yes, at 2023-01-01 it's -0.0 (essentially zero), and at 2022-01-01 it was 44,763,000. These are also likely derivatives. Actually, let me reconsider whether to include the FVTPL financial liabilities. The current ones at 76,644,000 might include some debt-like instruments. However, given the context and typical classification, these are more likely derivative liabilities. Let me also check if "Other Current Financial Assets" should be subtracted. At 2023-01-01: 211,136,000. These could include deposits, loans receivable, etc. S&P typically doesn't subtract these unless they're very liquid. For a conservative S&P approach, let me use: - Gross debt = Other Noncurrent Financial Liabilities + Other Current Financial Liabilities + Lease liabilities (noncurrent and current) - Net debt = Gross debt - Cash and Cash Equivalents Gross debt = 1,751,255,000 + 389,716,000 + 150,955,000 + 6,362,000 = 2,298,288,000 Net debt = 2,298,288,000 - 392,811,000 = 1,905,477,000 Net Debt / EBITDA = 1,905,477,000 / 499,430,000 = 3.815 But let me also consider if I should include the FVTPL liabilities. If I include current FVTPL financial liabilities: Gross debt = 2,298,288,000 + 76,644,000 = 2,374,932,000 Net debt = 2,374,932,000 - 392,811,000 = 1,982,121,000 Ratio = 1,982,121,000 / 499,430,000 = 3.968 Hmm, let me think about this more carefully. The S&P methodology specifically... Actually, I realize I should check whether to use 2022 year-end or average net debt. S&P typically uses year-end net debt for leverage ratios, though some calculations use averages. Also, I need to verify my EBITDA. Let me recheck: "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" = 499,430,000 This is clearly EBITDA. Wait - I need to be more careful. Is this truly EBITDA or is it something else? The label says "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" - this is exactly EBITDA. Let me verify by building up: Revenue: 713,840,000 Other Income: 12,678,000 Less: Other Purchase Expense: (15,188,000) Less: Services Expense And Miscellaneous Other Operating Expense: (156,792,000) Less: Impairment Loss Recognised In Profit Or Loss Trade Receivables: (300,000) Less: Employee Benefits Expense: (54,808,000) = 713,840,000 + 12,678,000 - 15,188,000 - 156,792,000 - 300,000 - 54,808,000 = 726,518,000 - 227,088,000 = 499,430,000 ✓ Now for debt, let me think more carefully about S&P methodology. S&P Global Ratings typically defines debt as: - Bank loans and notes/bonds - Finance lease obligations - Commercial paper - Certain other obligations In the balance sheet, I need to identify these. "Other Noncurrent Financial Liabilities" and "Other Current Financial Liabilities" are the main categories that likely contain bank debt and bonds. But wait - I should check if there are specific debt instruments. Looking at the cash flow statement: - "Proceeds From Issue Of Bonds Notes And Debentures" = 0 in 2022 (was 500,000,000 in 2021) - "Repayments Of Noncurrent Borrowings" = 350,218,000 in 2022 This confirms there are bonds/notes and borrowings in the debt structure. Also: "Cash Flows From Used In Increase Decrease In Current Borrowings" = -1,000,134,000 (repayment) And: "Payments For Early Redemption Fees Classified As Financing Activities" = 2,900,000 This suggests early redemption of some debt. For S&P Net Debt, I think the most appropriate calculation includes: - All interest-bearing debt (including lease liabilities) - Less: Cash and cash equivalents Let me verify by checking if "Other Current Financial Assets" includes anything that should be treated as cash. At 2023-01-01: 211,136,000. These decreased from 424,282,000. This could include time deposits or other liquid investments. However, S&P typically only subtracts "Cash and Cash Equivalents" unless other items are explicitly identified as liquid. Actually, let me reconsider whether to use a more comprehensive "Net Debt" definition. Some S&P calculations use: - Gross debt - cash - short-term liquid investments But without more detail on what's in "Other Current Financial Assets", I'll stick with standard Cash and Cash Equivalents. Let me also check if I should include "Current Financial Assets At Fair Value Through Profit Or Loss" (141,568,000). These are likely not cash equivalents but trading derivatives or equity investments. Now, one more consideration: Should I use year-end 2022 or average 2022 net debt? For leverage ratios, S&P typically uses year-end or latest available. I'll use year-end 2022 (2023-01-01 balance). Let me finalize my calculation with two scenarios: **Scenario 1: Include all financial liabilities (excluding FVTPL assets/liabilities that are derivatives)** Debt = Other Noncurrent Financial Liabilities + Noncurrent Lease Liabilities + Other Current Financial Liabilities + Current Lease Liabilities = 1,751,255,000 + 150,955,000 + 389,716,000 + 6,362,000 = 2,298,288,000 Net Debt = 2,298,288,000 - 392,811,000 = 1,905,477,000 Ratio = 1,905,477,000 / 499,430,000 = 3.815 **Scenario 2: Also include Current Financial Liabilities At Fair Value Through Profit Or Loss** Debt = 2,298,288,000 + 76,644,000 = 2,374,932,000 Net Debt = 2,374,932,000 - 392,811,000 = 1,982,121,000 Ratio = 1,982,121,000 / 499,430,000 = 3.968 I think Scenario 1 is more appropriate for S&P methodology, as FVTPL liabilities are typically derivative liabilities, not debt. But wait - let me double check. The item "Noncurrent Financial Liabilities At Fair Value Through Profit Or Loss" went from 44,763,000 to -0.0. These are also likely derivatives. I already excluded these. Actually, I want to reconsider whether lease liabilities should be included. In S&P's corporate methodology, finance lease obligations are included in debt. Operating leases were historically off-balance-sheet but with IFRS 16, all leases are on balance sheet as lease liabilities. S&P includes these in adjusted debt. So my calculation including lease liabilities is correct. Let me also verify by checking if there are any "debt-like" items in other categories. "Non Current Provisions For Discontinued Operations" (84,691,000) - these are provisions, not debt. "Longterm Provision For Decommissioning Restoration And Rehabilitation Costs" (92,613,000) - these are asset retirement obligations, which S&P may or may not include depending on the specific methodology version. For standard Net Debt/EBITDA, I'll stick with financial liabilities and lease liabilities. Actually, let me reconsider one more time. I want to check if "Other Noncurrent Financial Liabilities" includes anything that shouldn't be in debt. At 1,751,255,000, this is a large amount. Could it include derivative liabilities? Looking at 2022-01-01: "Noncurrent Financial Liabilities At Fair Value Through Profit Or Loss" was 44,763,000. This is separate from "Other Noncurrent Financial Liabilities" which was 2,064,088,000. So the FVTPL items are broken out separately. This suggests "Other Noncurrent Financial Liabilities" is mostly debt (loans, bonds). Similarly for current: "Current Financial Liabilities At Fair Value Through Profit Or Loss" (76,644,000) is separate from "Other Current Financial Liabilities" (389,716,000). So my Scenario 1 seems correct: exclude the FVTPL derivative liabilities. Final calculation: Net Debt = 1,751,255,000 + 150,955,000 + 389,716,000 + 6,362,000 - 392,811,000 = 1,905,477,000 EBITDA = 499,430,000 Net Debt / EBITDA = 1,905,477,000 / 499,430,000 = 3.8153... Let me round to 3.82 or provide more precision. Actually, let me recheck the arithmetic: 1,751,255,000 + 150,955,000 = 1,902,210,000 1,902,210,000 + 389,716,000 = 2,291,926,000 2,291,926,000 + 6,362,000 = 2,298,288,000 2,298,288,000 - 392,811,000 = 1,905,477,000 1,905,477,000 / 499,430,000 = 3.815302... Hmm, but I want to double-check one thing. Should I include "Current Tax Liabilities" or other items? No, those are not debt. Also, should I check if there's any debt in "Trade And Other Current Payables To Trade Suppliers"? No, those are trade payables, not debt. Let me also verify my EBITDA is correct by checking if there are any other income/expense items I missed. Looking at the P&L structure again: - Revenue - Other Income - Various expenses leading to EBITDA The EBITDA figure given is 499,430,000. Let me trust this as the correct figure. Actually, I want to make one more check. S&P sometimes adjusts EBITDA for certain items. But without specific guidance, I'll use the reported EBITDA. Wait - I need to re-read the question more carefully. It says "estimate the Net Debt / EBIDTA ratio for 2022, based on the S&P methodology." S&P methodology might specifically define what to include. Let me think about whether S&P includes lease liabilities in their main leverage ratios. In S&P Global Ratings methodology, "Debt" typically includes: - All borrowed money and debt instruments - Finance leases - Operating leases (post-IFRS 16, included in adjusted debt) So yes, lease liabilities should be included. One more consideration: Should I use 2022 year-end or 2021 year-end net debt? The question asks for 2022 ratio, which typically means using 2022 year-end net debt and 2022 EBITDA. But sometimes ratios are calculated using average debt. Let me check if there's a convention. For annual ratios, year-end debt / annual EBITDA is common. Actually, let me also consider if I should use continuing operations EBITDA or total EBITDA. The EBITDA figure of 499,430,000 appears to be for total operations (continuing + discontinued, or perhaps just continuing). Looking at the cash flow statement: "Cash Flows From Used In Operating Activities Continuing Operations" = 502,520,000 "Cash Flows From Used In Operating Activities Discontinued Operations" = 43,594,000 And for investing: "Cash Flows From Used In Investing Activities Continuing Operations" = 754,429,000 "Cash Flows From Used In Investing Activities Discontinued Operations" = -4,407,000 The discontinued operations seem to relate to assets held for sale. Looking at the balance sheet: "Noncurrent Assets Or Disposal Groups Classified As Held For Sale" = 226,086,000 at 2023-01-01 (down from 776,220,000) And "Liabilities Included In Disposal Groups Classified As Held For Sale" = 89,421,000 at 2023-01-01. There was a major disposal: "Cash Flows From Losing Control Of Subsidiaries Or Other Businesses Classified As Investing Activities" = 1,264,826,000 in 2022. This suggests significant M&A activity. The EBITDA of 499,430,000 might need to be adjusted if discontinued operations contributed significantly. However, looking at the P&L: "Profit Loss From Continuing Operations" = 88,966,000 "Profit Loss From Discontinued Operations" = 294,131,000 Discontinued operations contributed much more to net profit! This is unusual. Let me check if this is because of a gain on disposal. Actually, "Cash Flows From Losing Control Of Subsidiaries" = 1,264,826,000. This is a cash inflow from investing, suggesting a sale transaction. The profit from discontinued operations (294,131,000) likely includes this gain. But the EBITDA figure is from operating activities before interest, taxes, depreciation, and amortization. Is this for continuing operations only or total? Looking at the label: "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" - this doesn't specify continuing or discontinued. Typically this would be for the total entity before separation. Actually, in IFRS, when operations are classified as discontinued, they're separately presented in the P&L. The EBITDA figure might only be for continuing operations, or it might be total. Let me check if there's a way to verify. The operating profit (EBIT) is: "Profit Loss From Operating Activities" = 220,814,000 If I add back D&A and impairment reversal: Depreciation: 176,689,000 Amortisation: 58,741,000 Impairment reversal: (43,185,000) - this is a reversal, so it increased operating profit 220,814,000 + 176,689,000 + 58,741,000 - 43,185,000 = 413,059,000? Wait, that doesn't equal 499,430,000. Let me recalculate. Actually, "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Intangible Assets And Property Plant And Equipment" = 43,185,000. This is a positive item (reversal). So: EBIT + Depreciation + Amortisation - Impairment Reversal? No wait, the reversal is already included in EBIT. Let me think again. EBIT = Operating profit before interest and taxes. EBITDA = EBIT + Depreciation + Amortisation But if there's an impairment reversal, it's included in EBIT. So: EBITDA = EBIT + Depreciation + Amortisation (no adjustment for impairment reversal as it's already in EBIT) 220,814,000 + 176,689,000 + 58,741,000 = 456,244,000 But reported EBITDA is 499,430,000. There's a difference of 43,186,000. That's exactly the impairment reversal amount! Hmm, so maybe the reported "EBITDA" is actually before the impairment reversal? Or perhaps the impairment reversal is treated differently. Wait, let me re-read: "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" - this is EBITDA by definition. It should include all operating items except interest, taxes, depreciation, and amortisation. But if impairment reversal is not part of "operating activities" in this definition... Actually, impairment reversal of PPE and intangibles is typically considered part of operating activities. Let me recalculate from the P&L more carefully: Starting from Revenue and going down: Revenue: 713,840,000 Other Income: 12,678,000 Total income: 726,518,000 Expenses: Other Purchase Expense: (15,188,000) Services Expense: (156,792,000) Impairment Loss Trade Receivables: (300,000) Employee Benefits: (54,808,000) Depreciation: (176,689,000) - add back for EBITDA Amortisation: (58,741,000) - add back for EBITDA Operating profit before D&A = 726,518,000 - 15,188,000 - 156,792,000 - 300,000 - 54,808,000 = 499,430,000 ✓ Then after D&A and impairment reversal: 499,430,000 - 176,689,000 - 58,741,000 + 43,185,000 = 307,185,000? But reported "Profit Loss From Operating Activities" = 220,814,000. There's a gap. Let me check what else is in operating profit. There must be other expenses not listed in my initial items. Looking back at the data, I see I might be missing some items. Let me check if there are other operating expenses. Actually, I think the issue is that "Other Purchase Expense" and "Services Expense" might not be all operating expenses. There could be other items. But wait - the EBITDA figure is explicitly given as 499,430,000. I should use this. Now, the discrepancy between my EBIT calculation and the reported 220,814,000 suggests there are other items. Let me not worry about this and use the reported EBITDA. Back to Net Debt/EBITDA. I calculated 3.815. But let me reconsider if I should include or exclude certain items. Actually, I want to check one more thing. In some S&P methodologies, they use "Adjusted Debt" which might include: - Reported debt + Pension liabilities (if underfunded) + Asset retirement obligations - Cash and cash equivalents But without specific S&P guidance for this company, I'll use the standard definition. Let me also verify by looking at whether there are any debt-like items I missed. "Non Current Provisions For Discontinued Operations" = 84,691,000. These are provisions, not debt. "Longterm Provision For Decommissioning Restoration And Rehabilitation Costs" = 92,613,000. These are AROs (Asset Retirement Obligations). In some S&P methodologies, these are included in debt. Let me check if I should include them. For oil & gas or mining companies, AROs are often included in debt-like obligations. For a renewable energy company (ERG is primarily wind/solar), decommissioning costs of wind farms might be significant. However, standard S&P corporate methodology typically does not include AROs in "Debt" for the Net Debt/EBITDA ratio unless specifically adjusted. They might be included in "Adjusted Debt" for certain industries. Given ERG is a renewable energy company, let me consider if AROs should be included. Wind farms have decommissioning obligations. S&P might include these in their adjusted debt calculation. If I include AROs: Additional debt-like items = 92,613,000 Adjusted Gross Debt = 2,298,288,000 + 92,613,000 = 2,390,901,000 Adjusted Net Debt = 2,390,901,000 - 392,811,000 = 1,998,090,000 Ratio = 1,998,090,000 / 499,430,000 = 4.001 This is close to 4.0. But I'm not sure if S&P includes AROs for renewable energy companies in their standard Net Debt calculation. Let me stick with the more standard definition excluding AROs, giving 3.82. Actually, I want to do one more verification. Let me check if the EBITDA should be adjusted for discontinued operations. Since discontinued operations generated a large profit (294,131,000 vs 88,966,000 for continuing), and this seems to include a gain on sale, should EBITDA exclude discontinued operations? Looking at the cash flows, discontinued operations had: Operating cash flow: 43,594,000 Investing cash flow: -4,407,000 Financing cash flow: 29,189,000 The operating cash flow from discontinued operations is positive but not huge. The large gain on sale (1,264,826,000 cash inflow) is in investing activities. For EBITDA, if discontinued operations were still part of the business for part of 2022, their operating EBITDA would be included. But if they were sold during the year, only the period up to sale would be included. Actually, looking more carefully, the balance sheet shows "Noncurrent Assets Or Disposal Groups Classified As Held For Sale" decreased from 776,220,000 to 226,086,000. So not all were sold. The 2022 P&L shows profit from discontinued operations of 294,131,000. This likely includes both operating results and the gain on disposal. For S&P leverage calculations, they typically want a sustainable metric. If the discontinued operations were sold, future EBITDA won't include them. However, for historical ratio calculation, we use actual reported EBITDA. I think using the reported EBITDA of 499,430,000 is correct for a historical ratio. Let me finalize my answer with Net Debt / EBITDA = 3.82 (or more precisely 3.815). Actually, let me reconsider one more time whether to include the FVTPL current financial liabilities. At 76,644,000, these could include: - Derivative liabilities (negative fair value of hedges) - Short-term debt instruments classified as FVTPL Without more detail, it's hard to know. But given the name "Financial Liabilities At Fair Value Through Profit Or Loss", and the fact that they're separate from "Other Current Financial Liabilities" (which likely contains bank debt), I think these are more likely derivative liabilities. However, looking at the 2022-01-01 balance: 170,857,000. And in 2021, there was significant volatility in cash flow hedges (OCI before tax: -380,508,000). The derivative values can be large. For S&P debt calculations, derivative liabilities are typically not included in gross debt (they're part of financial exposure but not debt principal). So I'll exclude them. Final answer: Net Debt / EBITDA = 1,905,477,000 / 499,430,000 = 3.815 Rounding to two decimal places: 3.82 Or should I provide more precision? Let me provide 3.82. Wait, I want to check one more thing. Should I use 3.8 or 3.82? The calculation gives 3.8153... Actually, let me see if I can verify this makes sense. ERG is an Italian renewable energy company. A net debt/EBITDA around 3.8x seems reasonable for a utility/energy company with significant infrastructure investments. Let me also do a quick check using 2021 year-end debt to see the trend: At 2022-01-01 (end of 2021): - Other Noncurrent Financial Liabilities: 2,064,088,000 - Noncurrent Lease Liabilities: 122,663,000 - Other Current Financial Liabilities: 1,342,688,000 - Current Lease Liabilities: 6,282,000 - Cash and Cash Equivalents: 860,352,000 Net Debt at end 2021 = 2,064,088,000 + 122,663,000 + 1,342,688,000 + 6,282,000 - 860,352,000 = 2,675,369,000 2021 EBITDA = 396,680,000 2021 Net Debt/EBITDA = 2,675,369,000 / 396,680,000 = 6.74 So the ratio improved significantly from 6.74x to 3.82x. This makes sense given: - EBITDA increased from 396.7M to 499.4M (+26%) - Net debt decreased from 2,675M to 1,905M (-29%) This improvement is consistent with strong cash generation and debt repayment (including the 1.2B from sale of subsidiaries). I'm fairly confident in my calculation. Let me provide the final answer as 3.82. Actually, I want to double-check my arithmetic one more time: Debt: - Other Noncurrent Financial Liabilities: 1,751,255,000 - Noncurrent Lease Liabilities: 150,955,000 - Other Current Financial Liabilities: 389,716,000 - Current Lease Liabilities: 6,362,000 Total = 2,298,288,000 Less Cash: 392,811,000 Net Debt = 1,905,477,000 EBITDA = 499,430,000 Ratio = 1,905,477,000 / 499,430,000 = 3.815302... To two decimal places: 3.82 I'll provide 3.82 as my final answer. 3.82