To estimate the Net Debt / EBITDA ratio for EDP, S.A. for the year 2022 (period 2022-01-01 to 2023-01-01) using the S&P methodology, we need to calculate two components: Adjusted EBITDA and Net Debt.

**1. Calculate Adjusted EBITDA**

S&P Global Ratings typically defines EBITDA as Earnings Before Interest, Taxes, Depreciation, and Amortization. For utility companies like EDP, S&P often uses "Funds From Operations (FFO) before changes in working capital" or a similar operating cash flow proxy, but a standard EBITDA calculation from the P&L is the baseline. Let's derive EBITDA from the provided Profit and Loss statement items.

*   **Profit Before Income Tax and CESE:** 1,619,773,000 EUR
*   **Add back Finance Costs:** 1,753,220,000 EUR
*   **Subtract Finance Income:** (843,000,000) EUR
    *   *Note: Standard EBITDA adds back net interest expense. Here, Net Interest = 1,753,220,000 - 843,000,000 = 910,220,000 EUR.*
*   **Add back Income Tax Expense:** 398,490,000 EUR
*   **Add back Extraordinary Contribution (CESE):** 51,534,000 EUR
*   **Add back Depreciation, Amortization, and Impairment:** 1,979,007,000 EUR

Let's verify this against the "Profit Loss Before Provisions Amortisation And Impairment Financial Income And Financial Expenses..." line item, which is essentially EBITDA before some adjustments.
The item "Profit Loss Before Provisions Amortisation And Impairment Financial Income And Financial Expenses Income Tax Expense And Extraordinary Contribution To The Energy Sector CESE" is 4,523,539,000 EUR.
This figure represents Revenue - Cost of Sales - Operating Expenses (excluding D&A, Provisions, Interest, Tax).
So, **EBITDA** = 4,523,539,000 EUR.

However, S&P methodology for utilities often adjusts EBITDA for certain non-recurring items or specific regulatory impacts. Looking at the cash flow statement, "Cash Flows From Used In Operations" is 4,200,324,000 EUR. This is close to EBITDA but includes working capital changes and tax/interest paid.

Let's stick to the standard definition derived from the P&L which aligns with the "EBITDA" label often used in reporting:
**EBITDA** = Profit Before Tax + Net Interest + Tax + D&A
Profit Before Tax (including CESE) = 1,619,773,000
Net Interest = Finance Costs (1,753,220,000) - Finance Income (843,000,000) = 910,220,000
Tax = 398,490,000
CESE = 51,534,000
D&A = 1,979,007,000

EBITDA = 1,619,773,000 + 910,220,000 + 398,490,000 + 51,534,000 + 1,979,007,000
EBITDA = 4,959,024,000 EUR.

Wait, let's re-read the line item: "Profit Loss Before Provisions Amortisation And Impairment Financial Income And Financial Expenses Income Tax Expense And Extraordinary Contribution To The Energy Sector CESE" = 4,523,539,000 EUR.
This line item is effectively **EBITDA** if we assume "Provisions" here refers to specific provision expenses not included in operating costs, or if it's EBITDA before provisions.
Let's check the reconciliation:
EBITDA (calculated above) = 4,959,024,000.
The difference is 4,959,024,000 - 4,523,539,000 = 435,485,000.
Looking at the items:
"Provisions Expenses" = 14,539,000.
"Impairment Loss... IFRS9" = 60,199,000.
"Joint Ventures And Associates" income = 239,429,000.
The line item 4,523,539,000 excludes Financial Income/Expenses, Tax, CESE, Provisions, Amortisation, and Impairment.
So, 4,523,539,000 + Provisions (14,539,000) + Impairment (60,199,000) + Joint Ventures (239,429,000 - wait, JV income is usually added back to get to operational EBITDA if it's equity accounted, but here it's likely included in the profit before tax).
Actually, the standard EBITDA calculation is:
Revenue (20,650,764,000) - Cost of Energy Sales (14,529,713,000) = Gross Margin 6,121,051,000.
Operating Expenses:
Services Expense: 1,103,668,000
Employee Benefits: 770,800,000
Other Expense: 829,724,000
Impairment IFRS9: 60,199,000
Other Income: 927,450,000 (Add)
Joint Ventures: 239,429,000 (Add)
Net Operating Expenses = 1,103,668 + 770,800 + 829,724 + 60,199 - 927,450 - 239,429 = 1,597,512,000.
EBITDA = Gross Margin - Net Operating Expenses + D&A? No, D&A is separate.
Let's use the provided subtotal: "Profit Loss Before Provisions Amortisation And Impairment Financial Income And Financial Expenses Income Tax Expense And Extraordinary Contribution To The Energy Sector CESE" = 4,523,539,000.
This figure essentially represents **EBITDA** before provisions and specific impairments.
S&P often adds back provisions and impairments to get to Adjusted EBITDA.
Provisions Expenses: 14,539,000
Impairment Loss IFRS9: 60,199,000
Depreciation Amortisation And Impairment Loss Reversal... : 1,979,007,000.
The line item 4,523,539,000 *excludes* Depreciation and Amortization. So it is **EBITDA**.
Let's verify:
EBITDA = 4,523,539,000.
Is there anything else to add back? S&P might adjust for "Other Income" if it's non-recurring, but "Other Income" of 927M is significant. However, the line item 4,523,539,000 is explicitly "Before... Financial Income...". It likely includes Operating Other Income.
Let's assume **EBITDA = 4,523,539,000 EUR**.
Some methodologies might use "Funds From Operations (FFO)". S&P defines FFO as Net Income + D&A + Deferred Taxes + Other non-cash items.
Net Income (Profit Loss) = 1,169,749,000.
Add D&A = 1,979,007,000.
Add Deferred Tax change? Not directly available, but Income Tax Expense is 398,490,000.
Add Net Interest = 910,220,000.
Add Tax = 398,490,000.
Add CESE = 51,534,000.
FFO approx = 1,169,749 + 1,979,007 + 910,220 + 398,490 + 51,534 = 4,509,000,000.
This is very close to the EBITDA figure of 4,523,539,000.
S&P typically uses **Debt/EBITDA** where EBITDA is roughly the operating cash flow generation.
Let's use **EBITDA = 4,523,539,000 EUR**.

**2. Calculate Net Debt**

Net Debt = Total Debt - Cash and Cash Equivalents.
S&P methodology for Net Debt usually includes:
- Short-term borrowings
- Long-term borrowings
- Current portion of long-term debt
- Less: Cash and cash equivalents
- Sometimes includes lease liabilities (IFRS 16). S&P often treats lease liabilities as debt for leverage ratios.

From the Balance Sheet (2023-01-01, which is the end of the 2022 fiscal year):
- **Long-term Borrowings:** 15,782,604,000 EUR
- **Current Borrowings And Current Portion Of Noncurrent Borrowings:** 4,239,869,000 EUR
- **Other Noncurrent Financial Liabilities:** 5,159,496,000 EUR. (S&P often includes "Other financial liabilities" if they are debt-like. In utilities, this can include derivatives or other instruments. However, standard Net Debt usually focuses on interest-bearing borrowings. Let's look at "Other Current Financial Liabilities": 3,600,893,000 EUR. These often include derivatives and short-term debt. S&P typically includes all interest-bearing debt. Without a breakdown, "Borrowings" are the core debt. "Other Financial Liabilities" might include trade payables financed or derivatives. S&P usually adds back lease liabilities.
- **Lease Liabilities:** Not explicitly listed as a single line item, but "Right-of-use Assets" are 1,320,270,000. Under IFRS 16, there is a corresponding lease liability. Part is current, part non-current. "Payments Of Lease Liabilities Classified As Financing Activities" is 133,696,000. This is the cash flow, not the balance.
However, looking at the liabilities:
"Other Noncurrent Financial Liabilities" (5,159M) and "Other Current Financial Liabilities" (3,600M) are large. In EDP's case, these often include derivative financial instruments and other funding. S&P's definition of debt for utilities typically includes **Gross Debt** which comprises bank loans, bonds, commercial paper, and **lease liabilities**. It may or may not include derivatives depending on whether they are hedging (often excluded from debt principal but impacts interest).
Let's look at a standard Net Debt calculation using the explicit "Borrowings" lines first, as these are the clearest debt instruments.
Total Borrowings = Long-term (15,782,604,000) + Current (4,239,869,000) = 20,022,473,000 EUR.

Does S&P include "Other Financial Liabilities"?
In many utility reports, "Other Financial Liabilities" include derivatives. S&P usually excludes derivative liabilities from the debt numerator for leverage ratios, unless they are synthetic debt.
What about Lease Liabilities? S&P includes lease liabilities as debt.
The balance sheet doesn't have a specific "Lease Liabilities" line. It has "Other Noncurrent Financial Liabilities" and "Other Current Financial Liabilities".
Let's check the change in equity/liabilities.
If we assume "Other Financial Liabilities" are largely derivatives and not principal debt, we might exclude them. However, 5.1B + 3.6B is huge.
Let's look at EDP's typical reporting. EDP reports "Net Debt" in its own presentations.
EDP's Net Debt usually = Borrowings + Lease Liabilities - Cash.
Let's try to estimate Lease Liabilities.
Right of Use Assets = 1,320,270,000.
Typically, Lease Liabilities are close to ROU Assets.
If we add Lease Liabilities (~1.3B) to Borrowings (~20.0B), Total Debt ~ 21.3B.

Let's look at the "Other Noncurrent Financial Liabilities" (5,159M) and "Other Current Financial Liabilities" (3,600M).
In EDP's 2022 annual report, "Other financial liabilities" primarily consist of derivative financial instruments. S&P generally **excludes** derivative liabilities from the debt calculation for leverage ratios, as they are marked-to-market and not principal amounts owed.
So, Debt = Borrowings + Lease Liabilities.
We don't have an explicit Lease Liability line. However, we can infer it or check if it's embedded.
Often, "Other Noncurrent Financial Liabilities" might contain the non-current portion of lease liabilities, and "Other Current Financial Liabilities" the current portion. But given the size (5.1B vs 1.3B ROU), it's likely mostly derivatives.
Let's assume S&P uses **Gross Debt = Borrowings**.
Gross Debt = 15,782,604,000 + 4,239,869,000 = 20,022,473,000 EUR.

**Cash and Cash Equivalents:**
Cash And Cash Equivalents (2023-01-01) = 4,900,205,000 EUR.

**Net Debt** = Gross Debt - Cash
Net Debt = 20,022,473,000 - 4,900,205,000 = 15,122,268,000 EUR.

*Refinement on S&P Methodology:*
S&P often adjusts Debt to include **Lease Liabilities**.
If we assume Lease Liabilities are approximately equal to ROU Assets (1,320,270,000), then:
Adjusted Gross Debt = 20,022,473,000 + 1,320,270,000 = 21,342,743,000 EUR.
Adjusted Net Debt = 21,342,743,000 - 4,900,205,000 = 16,442,538,000 EUR.

Let's check if "Other Financial Liabilities" contains lease liabilities.
In IFRS, lease liabilities are often presented separately or within "Other financial liabilities". Given the magnitude of "Other" liabilities (8.7B total) vs ROU (1.3B), it's safe to assume the bulk is derivatives. S&P excludes derivatives from debt.
So, the main question is whether to include Leases. S&P **does** include leases in debt for utilities.
So, Debt = Borrowings (20,022M) + Leases (~1,320M) = 21,342M.
Net Debt = 21,342M - 4,900M = 16,442M.

**EBITDA Adjustment:**
S&P EBITDA for utilities is often "FFO before changes in working capital".
From Cash Flow:
Cash Flows From Used In Operations = 4,200,324,000.
This is after tax and interest paid? No, "Cash Flows From Used In Operations" in IFRS indirect method usually starts with Profit Before Tax.
Let's trace:
Profit Before Tax (1,619M) + D&A (1,979M) + Provisions (14M) + Impairment (60M) - JV Income (239M) + Working Capital Changes...
The line "Cash Flows From Used In Operations" is 4,200,324,000.
Then "Other Inflows Outflows..." (-422M) leads to "Cash Flows From Used In Operating Activities" (3,777M).
S&P's "FFO before changes in working capital" is typically closer to the EBITDA figure we calculated earlier (4,523M) or the Operating Cash Flow before WC changes.
The item "Cash Flows From Used In Operations" (4,200M) likely includes interest and tax paid.
S&P adds back interest and tax to get to a pre-interest, pre-tax metric if starting from OCF.
However, the standard ratio is Net Debt / EBITDA.
Using EBITDA = 4,523,539,000 EUR.

**Calculation:**
Net Debt (with Leases) = 16,442,538,000 EUR.
EBITDA = 4,523,539,000 EUR.
Ratio = 16,442,538,000 / 4,523,539,000 = 3.63x.

If we **exclude Leases** (some simplified definitions):
Net Debt = 15,122,268,000 EUR.
Ratio = 15,122,268,000 / 4,523,539,000 = 3.34x.

S&P Global Ratings' criteria for utilities explicitly state: "We include lease liabilities in our definition of debt."
Therefore, the 3.63x figure is more methodologically correct for S&P.

Let's double check the Debt components.
Long-term Borrowings: 15,782,604,000
Current Borrowings: 4,239,869,000
Total Borrowings: 20,022,473,000

Lease Liabilities:
We don't have the exact number. We have ROU Assets of 1,320,270,000.
In many cases, Lease Liabilities are slightly higher or lower than ROU assets depending on prepayments/accruals. Using ROU as a proxy is standard when the liability line is not explicit.
Total Debt = 20,022,473,000 + 1,320,270,000 = 21,342,743,000.

Cash: 4,900,205,000.
Net Debt = 16,442,538,000.

EBITDA:
The line "Profit Loss Before Provisions Amortisation And Impairment Financial Income And Financial Expenses Income Tax Expense And Extraordinary Contribution To The Energy Sector CESE" is 4,523,539,000.
This is effectively EBITDA + Other Operating Income/Expense (excluding provisions/impairment).
Is this the right EBITDA?
Yes, it represents the operating profit before D&A and financing/tax.
S&P may adjust for "Provisions" and "Impairment".
Provisions: 14,539,000.
Impairment (IFRS 9): 60,199,000.
If we add these back to the 4,523,539,000 (which excludes them), we get:
Adjusted EBITDA = 4,523,539,000 + 14,539,000 + 60,199,000 = 4,598,277,000.
Note: The line item says "Before Provisions...". So the 4,523M figure *already excludes* the expense of provisions. Wait.
"Profit ... Before Provisions ...". This means Provisions were NOT subtracted to arrive at this number. So this number is higher than Operating Profit. It is effectively EBITDA + Provisions + Impairment?
No, "Before Provisions, Amortisation and Impairment".
This means: Revenue - OpEx (excluding Prov, Amort, Imp) = 4,523,539,000.
So this figure IS EBITDA (if we consider Provisions and Impairment as non-operating or add-backs).
Standard EBITDA adds back D&A. This figure is before D&A. So it is EBITDA.
Does it include Provisions? It is "Before Provisions", meaning Provisions are not deducted. So it is EBITDA *before* provision expense. Since provisions are an expense, excluding them makes the figure higher. S&P often adds back provisions to EBITDA. So this figure is consistent with S&P's "Adjusted EBITDA" regarding provisions.
What about Impairment? It is "Before ... Impairment". So Impairment is not deducted. This is also consistent with adding back impairment.
So, **EBITDA = 4,523,539,000 EUR** is a robust S&P-style EBITDA figure.

Ratio = 16,442,538,000 / 4,523,539,000 = 3.6348...

Let's check if there are other debt items.
"Institutional Partnerships In North America" (Liability? No, it's listed under Noncurrent Liabilities? No, looking at the list:
"Institutional Partnerships In North America" 2023-01-01: 2,212,162,000 EUR.
This item appears in the list of liabilities?
Let's check the context.
"Noncurrent Liabilities" includes:
Longterm Borrowings
Noncurrent Provisions
Other Longterm Provisions
Deferred Tax Liabilities
**Institutional Partnerships In North America**
Trade Payables...
Other Noncurrent Financial Liabilities
...
Yes, "Institutional Partnerships In North America" is listed as a Noncurrent Liability.
S&P methodology for utilities often treats "Institutional Partnerships" (like those in EDPR) as debt-like if they have mandatory redemption or fixed returns. In EDP's case, these are often treated as **debt** by rating agencies because they behave like preferred equity or mezzanine debt with mandatory buybacks.
If we include this 2,212,162,000 EUR as debt:
Total Debt = Borrowings (20,022M) + Leases (1,320M) + Institutional Partnerships (2,212M) = 23,554,635,000 EUR.
Net Debt = 23,554,635,000 - 4,900,205,000 = 18,654,430,000 EUR.
Ratio = 18,654,430,000 / 4,523,539,000 = 4.12x.

Let's verify S&P's treatment of EDP's Institutional Partnerships.
In S&P reports for EDP, "Institutional Partnerships" are typically included in the debt calculation. They are considered "debt-like" instruments.
So, the Debt numerator should likely include:
1. Borrowings (Current + Non-Current)
2. Lease Liabilities
3. Institutional Partnerships

Debt Components:
- Long-term Borrowings: 15,782,604,000
- Current Borrowings: 4,239,869,000
- Institutional Partnerships: 2,212,162,000
- Lease Liabilities: ~1,320,270,000 (Proxy from ROU)

Total Gross Debt = 15,782,604,000 + 4,239,869,000 + 2,212,162,000 + 1,320,270,000 = 23,554,905,000 EUR.
Cash = 4,900,205,000 EUR.
Net Debt = 23,554,905,000 - 4,900,205,000 = 18,654,700,000 EUR.

EBITDA = 4,523,539,000 EUR.

Ratio = 18,654,700,000 / 4,523,539,000 ≈ 4.12.

Let's refine the Lease Liability.
If "Other Noncurrent Financial Liabilities" (5,159M) and "Other Current Financial Liabilities" (3,600M) are derivatives, they are excluded.
If "Institutional Partnerships" are included, the debt is higher.
EDP's own Net Debt definition often includes Institutional Partnerships.
S&P's criteria for "Utilities: General Methodology" states that they include "hybrid securities" that are debt-like. Institutional partnerships in renewable energy vehicles are typically treated as debt.

So, 4.12x seems the most accurate S&P-aligned estimate.

Let's double check the EBITDA.
Is there any other adjustment?
S&P might deduct "Maintenance CapEx" from EBITDA to get "Discretionary Cash Flow", but the ratio requested is Net Debt / EBITDA.
So we stick with EBITDA.

Final Check:
Numerator: Net Debt
- Borrowings: 20,022,473,000
- Inst. Partnerships: 2,212,162,000
- Leases: 1,320,270,000
- Total Debt: 23,554,905,000
- Cash: 4,900,205,000
- Net Debt: 18,654,700,000

Denominator: EBITDA
- EBITDA: 4,523,539,000

Ratio: 18,654,700,000 / 4,523,539,000 = 4.1239...

Rounding to two decimal places: 4.12.

<answer>4.12</answer>