To estimate the FFO / Net Debt ratio for Ørsted A/S for the year 2022 based on S&P methodology, we need to calculate Funds From Operations (FFO) and Net Debt. **1. Calculate Funds From Operations (FFO)** According to S&P Global Ratings criteria, FFO is generally calculated as: $$FFO = \text{Net Income} + \text{Depreciation and Amortization} + \text{Other Non-Cash Items} + \text{Change in Working Capital (sometimes excluded or adjusted, but standard FFO often starts with EBITDA or Net Income + D&A)}$$ A common simplified S&P definition for industrial/utilities is: $$FFO = \text{Net Income} + \text{Depreciation, Amortization, and Impairment} + \text{Deferred Taxes} + \text{Other Non-Cash Adjustments}$$ However, a more robust starting point often used is: $$FFO = \text{EBITDA} - \text{Cash Taxes} - \text{Cash Interest} + \text{Change in Working Capital?}$$ Actually, S&P typically defines FFO as: $$FFO = \text{Net Income} + \text{Depreciation and Amortization} + \text{Deferred Income Taxes} + \text{Other Non-Cash Charges/Credits}$$ Let's look at the available data: * **Profit Loss (Net Income)**: 14,996,000,000 DKK * **Depreciation Amortisation And Impairment Loss**: 12,283,000,000 DKK * **Income Tax Expense**: 2,613,000,000 DKK (This is total tax expense, not just deferred). * **Deferred Tax Assets/Liabilities changes**: We can estimate deferred tax expense from the balance sheet changes or look for specific line items. The data provides "Income Tax Expense Continuing Operations" (2,613m). It does not explicitly split current vs deferred tax expense in the P&L lines provided, but we can infer non-cash tax if needed. However, standard FFO adds back *deferred* taxes. If we don't have the split, we might use a proxy or assume the tax expense is largely cash or adjust using balance sheet changes. * Change in Deferred Tax Assets: $13,719 - 13,281 = 438$ million (Increase in asset -> Cash outflow/Non-cash expense add-back?) * Change in Deferred Tax Liabilities: $7,414 - 5,616 = 1,798$ million (Increase in liability -> Non-cash expense add-back). * Net Deferred Tax Expense $\approx$ Change in DTL - Change in DTA? Or simply the non-cash portion. * Let's stick to the core components: Net Income + D&A. * S&P often adjusts for "Non-controlling interests" and "Hybrid capital". * **Profit Loss Attributable To Owners Of Parent**: 14,549,000,000 DKK. * **Profit Loss Attributable To Hybrid Capital Owners**: 577,000,000 DKK. * **Profit Loss Attributable To Noncontrolling Interests**: -130,000,000 DKK. Standard S&P FFO calculation usually starts with Consolidated Net Income. $$FFO \approx \text{Consolidated Net Income} + \text{D\&A} + \text{Deferred Tax} + \text{Other Non-Cash}$$ Let's refine the "Other Non-Cash" and working capital. S&P FFO for utilities often includes changes in working capital in the "Funds From Operations" metric *before* deducting dividends, or sometimes they use "FFO" as Net Income + D&A + Deferred Tax. Let's look at the Cash Flow from Operations (CFO) to cross-verify. CFO = 11,924,000,000 DKK. S&P Definition: $$FFO = \text{Net Income} + \text{Depreciation/Amortization} + \text{Deferred Taxes} + \text{Other Non-Cash Items}$$ Let's calculate: 1. **Net Income**: 14,996 million DKK. 2. **Depreciation & Amortization**: 12,283 million DKK. 3. **Deferred Taxes**: We need the deferred tax expense. * Total Tax Expense: 2,613 million. * Current Tax Paid (from Cash Flow): 1,263 million. * This difference isn't exactly deferred tax expense due to timing differences in payments vs accruals and balance sheet movements. * Let's look at the change in Deferred Tax Liabilities and Assets. * $\Delta$ DTL = $7,414 - 5,616 = +1,798$ million. * $\Delta$ DTA = $13,719 - 13,281 = +438$ million. * An increase in DTL is a source of funds (add back). An increase in DTA is a use of funds (subtract). * Net Deferred Tax Add-back $\approx 1,798 - 438 = 1,360$ million. * Alternatively, look at "Income Tax Relating To Components Of Other Comprehensive Income". This is equity, not P&L. * Let's assume the deferred tax expense is roughly the net change in deferred tax balances on the balance sheet related to P&L. * Let's use a simpler proxy if exact deferred tax expense is missing: S&P often accepts EBITDA - Cash Interest - Cash Taxes + Change in Working Capital as a proxy for Cash Flow from Operations, but FFO is an accrual-based metric adjusted for non-cash items. Let's try the standard formula: $$FFO = \text{Net Income} (14,996) + \text{D\&A} (12,283) + \text{Deferred Tax} (\approx 1,360) + \text{Other Non-Cash}$$ Are there other significant non-cash items? * "Share Of Profit Loss Of Associates...": 114 million. This is equity income, usually non-cash until dividends received. Dividends received from associates are investing cash flows. So we should subtract the equity income and add back dividends received? Or just leave it if it's small. * "Gains Losses On Disposals Of Investments": 331 million. This is a gain/loss. If it's a gain, subtract it. If loss, add it. The label is "Gains Losses...", value is positive 331m. In 2021 it was -742m. Usually, gains are subtracted from Net Income in FFO. Let's assume 331m is a net gain. Subtract 331. * "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" in Cash Flow is -10,885 million. This suggests a large *gain* on disposal (since it's subtracted in CFO indirect method). Wait, if CFO starts with Net Income, gains are subtracted. The adjustment is -10,885. This implies a gain of 10,885 million was included in Net Income? * Let's check the P&L. "Profit Loss From Operating Activities" is 19,774. * Revenue (132,277) - Cost of Sales (97,163) - Other Ext Exp (7,049) - Emp Ben (5,278) + Other Income (14,119) - Other Exp (4,963) + Share of Assoc (114) = Gross Profit approx. * Let's reconcile Operating Profit: $132,277 - 97,163 - 7,049 - 5,278 + 14,119 - 4,963 + 114 = 32,057$. This matches "Profit Loss From Operating Activities Before Interest Taxes Depreciation And Amortisation Expense" (EBITDA)? No, the label says "Before Interest Taxes Depreciation And Amortisation". So this is EBITDA. EBITDA = 32,057 million. * Depreciation = 12,283 million. * EBIT = $32,057 - 12,283 = 19,774$ million. This matches "Profit Loss From Operating Activities". * Finance Income (15,514) - Finance Costs (18,050) = Net Finance Cost -2,536. * Share of Assoc Non-Core (40). * Gains on Disposals of Investments (331). * Profit Before Tax = $19,774 - 2,536 + 40 + 331 = 17,609$. Matches "Profit Loss Before Tax". * Tax = 2,613. * Net Income = $17,609 - 2,613 = 14,996$. Matches. So, the "Gain on Disposal of Investments" is 331 million. The "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" in the Cash Flow statement is -10,885 million. This is a huge discrepancy. Why? Looking at "Other Income" (14,119) and "Other Expense" (4,963). Often, gains on disposal of *property, plant, and equipment* are included in Other Income/Expense or a separate line. The Cash Flow adjustment "-10,885" suggests a large non-cash gain or a reclassification. Actually, Ørsted had significant one-off items in 2022 related to impairment reversals or gains on contract modifications/asset sales. The line "Depreciation Amortisation And Impairment Loss Reversal..." is 12,283. If there were impairments, they would be added back. If there were reversals, they would be subtracted? The label includes "Reversal". Let's look at S&P's specific treatment. S&P adds back impairments. It subtracts gains on asset sales. Let's calculate FFO using the standard add-back method: Start with Net Income: 14,996 Add: Depreciation & Amortization: 12,283 Add: Deferred Taxes: Estimate ~1,360 (based on BS changes). Subtract: Gains on Asset Sales/Investments: The cash flow statement shows an adjustment of -10,885 for "Losses Gains On Disposal Of Noncurrent Assets". This implies a *gain* of 10,885 was included in Net Income that needs to be removed for CFO. However, FFO *also* removes gains on asset sales. So we subtract 10,885? Wait, the line item "Gains Losses On Disposals Of Investments" is only 331. The -10,885 likely relates to disposals of PPE or other non-current assets included in Operating Profit or Other Income. If we subtract 10,885, FFO drops significantly. Let's check "Other Income" of 14,119. This is high. It likely contains the gains. Let's try a different approach: **EBITDA - Cash Interest - Cash Taxes + Change in Working Capital**? No, that's CFO roughly. S&P FFO is closer to CFO but adjusts for working capital changes? No, S&P FFO is an *accrual* metric. $$FFO = \text{Net Income} + \text{D\&A} + \text{Deferred Tax} + \text{Impairments} - \text{Gains on Asset Sales}$$ Let's assume the -10,885 adjustment in CFO is the net gain on disposals of non-current assets (PPE etc). So, Gain on Disposal = 10,885. We must subtract this from Net Income. Revised FFO Calculation: Net Income: 14,996 + D&A: 12,283 + Deferred Tax: ~1,360 (Estimate: $\Delta$DTL 1,798 - $\Delta$DTA 438) - Gain on Disposal of Non-Current Assets: 10,885 (From CFO adjustment) - Gain on Disposal of Investments: 331 (From P&L, likely already in the CFO adjustment or separate? The CFO line is "Disposal of Noncurrent Assets". Investments might be separate. The CFO has "Gains Losses On Disposals Of Investments" in P&L, but in CFO indirect method, this gain would also be subtracted. The line "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" usually covers PPE/Intangibles. The investment gain might be in "Other Adjustments" or included. Let's assume the 10,885 covers the major asset sales. The 331 is small. Let's subtract both to be safe, or assume 10,885 is the total. Given the magnitude, 10,885 is the dominant factor. Let's look at "Other Adjustments To Reconcile Profit Loss": -278. Let's sum: $14,996 + 12,283 + 1,360 - 10,885 - 331 = 17,423$ million DKK. Is there anything else? S&P adds back "Non-controlling interest" share of income? No, FFO is usually consolidated. S&P adjusts for "Preferred Dividends"? Hybrid capital coupons are treated as interest or dividends? S&P typically treats hybrid coupons as interest for leverage ratios but may add them back to FFO if they are discretionary? Or deduct them? Standard S&P FFO definition: "FFO is net income... plus depreciation... plus deferred taxes... plus/minus other noncash items." It does *not* deduct dividends paid. Let's refine the Deferred Tax. Tax Expense: 2,613. Cash Tax Paid: 1,263. Difference: 1,350. This aligns well with our balance sheet estimate of 1,360. Let's use 1,350. So, FFO $\approx 14,996 + 12,283 + 1,350 - 10,885 - 331 = 17,413$ million DKK. Let's double check the "Gain" sign. CFO = Net Income + D&A + ... - Gains + Losses + Decrease in WC ... Adjustment for Gains on Disposal is -10,885. This means a gain of 10,885 was subtracted. So yes, subtract 10,885 from Net Income for FFO. One more check: Does S&P add back impairments? The D&A line is "Depreciation Amortisation And Impairment Loss Reversal...". If there was a net impairment *loss*, it would be added back. If it's a net *reversal*, it would be subtracted. The value is positive 12,283 expense. This suggests net depreciation and impairment charges. So we add it all back. So, **FFO $\approx$ 17,413 million DKK**. **2. Calculate Net Debt** Net Debt = Total Debt - Cash and Cash Equivalents. S&P may also adjust for "Hybrid Capital" (treating it as equity or debt?). S&P typically treats hybrid capital as *equity* for leverage ratios if it meets certain criteria (perpetual, deferrable), but for *Net Debt* calculation in the denominator of FFO/Net Debt, it depends. However, the standard "Net Debt" metric usually includes interest-bearing debt. Let's look at the liabilities: * Longterm Borrowings: 60,451 * Shortterm Borrowings: 2,830 * Lease Liabilities (Current + Noncurrent): $569 + 7,697 = 8,266$ * Hybrid Capital: 19,793. (S&P often treats hybrids as 50% debt / 50% equity or fully equity depending on terms. For Ørsted, these are likely treated as equity for rating purposes, but let's check standard Net Debt definition. Usually, Net Debt = Interest Bearing Debt - Cash. Hybrids are interest-bearing. But in S&P methodology for utilities, hybrids are often added to Equity. If we treat them as equity, they are excluded from Net Debt. If we treat them as debt, they are included. Given the "Hybrid Capital" label and S&P's general preference to treat qualifying hybrids as equity, I will exclude them from Net Debt, or provide a range. However, the prompt asks for "S&P methodology". S&P's *adjusted* debt often includes 50% of hybrids or excludes them if they are strong equity. Let's look at the "Equity" section. Hybrid Capital is listed under Equity. S&P usually deducts hybrids from debt for leverage calculations if they are "equity-like". Let's assume they are excluded from Net Debt for the ratio denominator, or included? * Actually, S&P's "Debt" definition for leverage ratios (Debt/EBITDA) usually includes hybrids as 50% debt or full debt if not strong. But for FFO/Net Debt, "Net Debt" is often reported as Gross Debt minus Cash. * Let's calculate Gross Interest-Bearing Debt first. * Long-term Borrowings: 60,451 * Short-term Borrowings: 2,830 * Lease Liabilities: 8,266 (S&P includes leases in debt). * Total Debt (excluding Hybrids) = $60,451 + 2,830 + 8,266 = 71,547$ million. * Cash and Cash Equivalents: 16,175 million (from Balance Sheet "Cash" 16,178? Wait. "Cash" 2023-01-01 is 16,178. "Cash And Cash Equivalents" 2023-01-01 is 16,175. Let's use 16,175). * Net Debt (excluding Hybrids) = $71,547 - 16,175 = 55,372$ million. What if Hybrids are included? Hybrids: 19,793. Total Debt (with Hybrids) = $71,547 + 19,793 = 91,340$. Net Debt (with Hybrids) = $91,340 - 16,175 = 75,165$. S&P Methodology for "FFO to Net Debt": S&P defines Net Debt as Total Debt minus Cash and Short-term Investments. Does Total Debt include Hybrids? In S&P's criteria for Utilities, "Debt" includes bank debt, bonds, commercial paper, capital leases, and *hybrid securities* (often with a 50% equity credit, meaning 50% is treated as debt). If we apply a 50% equity credit to Hybrids: Debt portion of Hybrids = $19,793 \times 0.5 = 9,896.5$. Adjusted Total Debt = $71,547 + 9,896.5 = 81,443.5$. Adjusted Net Debt = $81,443.5 - 16,175 = 65,268.5$. Let's check the FFO numerator again. Does FFO add back Hybrid Coupons? S&P FFO usually adds back interest expense. Hybrid coupons are often treated as interest. Finance Costs: 18,050. This likely includes hybrid coupons. Coupon Payments on Hybrid Capital: 529. Since we started with Net Income (which has deducted Finance Costs), and we are adding back D&A and Deferred Tax, we are *not* adding back Interest. Wait. **FFO does NOT add back Interest.** EBITDA adds back Interest. FFO is Net Income + D&A + Deferred Tax. So Interest remains deducted. This is consistent. Now, which Net Debt denominator to use? Standard market practice for "Net Debt" often includes Hybrids as debt. S&P *Adjusted* Debt might treat them differently. However, the ratio "FFO / Net Debt" is a standard S&P metric. In S&P's public reports for Ørsted, they often cite "FFO to net debt". Let's look at the magnitude. FFO ~ 17.4 billion. Net Debt (excl hybrids) ~ 55.4 billion. Ratio = $17.4 / 55.4 \approx 31.4\%$. Net Debt (incl hybrids) ~ 75.2 billion. Ratio = $17.4 / 75.2 \approx 23.1\%$. Net Debt (50% hybrids) ~ 65.3 billion. Ratio = $17.4 / 65.3 \approx 26.6\%$. Let's refine the FFO calculation. Is there a simpler way? Sometimes FFO is approximated as CFO - Change in Working Capital? No. Let's check Ørsted's reported metrics if possible from general knowledge or strict derivation. Ørsted's 2022 Annual Report might report "FFO". Without external lookup, we must rely on the derivation. One major adjustment: **Working Capital**. S&P FFO is an accrual metric. It does *not* include changes in working capital. However, some definitions of "Funds From Operations" in real estate (REITs) are different. For corporates/utilities, S&P uses the Net Income + D&A + Deferred Tax definition. Let's re-evaluate the "Gain on Disposal". The adjustment -10,885 in CFO is huge. Net Income is 14,996. If we subtract 10,885, we get ~4,000. Add D&A 12,283 -> ~16,300. Add Def Tax 1,350 -> ~17,650. Subtract Inv Gain 331 -> ~17,300. Is it possible the -10,885 includes something else? "Adjustments For Losses Gains On Disposal Of Noncurrent Assets". In 2021, it was -7,920. These are likely gains from selling offshore wind farm stakes (e.g., to partners). These are operating activities for Ørsted? Or investing? If they are considered part of core operations, S&P might *not* subtract them from FFO? S&P criteria: "We subtract gains from the sale of assets... unless they are part of the company's recurring business operations." For a utility/developer like Ørsted, selling stakes in projects is a recurring business model (recycling capital). If these gains are considered **recurring**, they should **NOT** be subtracted from FFO. Given Ørsted's business model of building and partially selling wind farms, these gains are likely considered recurring/operating. If we do *not* subtract the 10,885 gain: FFO = $14,996 + 12,283 + 1,350 - 331 (investment gain, likely non-recurring) = 28,298$ million. Let's check the nature of the 10,885 gain. Revenue is 132 billion. Operating Profit 19.7 billion. If the gain is operating, it's in EBITDA/EBIT. S&P FFO for utilities often looks like EBITDA - Cash Interest - Cash Taxes? Let's try that proxy. EBITDA: 32,057. Cash Interest: Finance Costs (18,050) - Non-cash interest? + Finance Income? Net Cash Interest Paid (from CFO): Interest Paid (8,548) - Interest Received (7,985) = 563? No, "Interest Paid Classified As Operating Activities" is 8,548. "Interest Received" is 7,985. Net Cash Interest Outflow = $8,548 - 7,985 = 563$ million. Cash Taxes: 1,263 million. Proxy FFO = EBITDA - Net Cash Interest - Cash Taxes? $32,057 - 563 - 1,263 = 30,231$ million. This is close to the 28,298 figure derived above (where we kept the gains). The difference (30,231 vs 28,298) is about 2 billion. Differences could be due to: - Equity income (114). - Other non-cash items. - The 331 investment gain. S&P typically prefers the Net Income + D&A + Deferred Tax approach, adjusting for non-recurring items. If the 10.8bn gain is recurring, we keep it. If we keep it, FFO is approx **28,300 million DKK**. Now, Net Debt. If we use the standard Net Debt (Gross Debt - Cash): Gross Debt = Borrowings (LT + ST) + Leases. LT Borrowings: 60,451. ST Borrowings: 2,830. Leases: 8,266. Total Debt = 71,547. Cash = 16,175. Net Debt = 55,372. Ratio = $28,300 / 55,372 \approx 51.1\%$. If we include Hybrids as 50% debt: Debt = $71,547 + 9,896 = 81,443$. Net Debt = $81,443 - 16,175 = 65,268$. Ratio = $28,300 / 65,268 \approx 43.4\%$. If we include Hybrids as 100% debt: Debt = 91,340. Net Debt = 75,165. Ratio = $28,300 / 75,165 \approx 37.6\%$. Which is the "S&P Methodology"? S&P's "Key Credit Metrics" for utilities usually report "FFO to net debt". In their definitions, "Net Debt" typically includes **hybrid securities** as debt (often with a 50% equity credit applied to the *rating* analysis, but for the *metric* calculation, they might show adjusted debt). However, looking at Ørsted's investor presentations, they often report "Net Debt" excluding hybrids or including them? Ørsted defines Net Debt as interest-bearing liabilities less cash. Interest-bearing liabilities usually include hybrids. But S&P *adjusts* this. Let's look at the FFO numerator again. If the 10.8bn gain is *not* recurring, FFO drops to ~17.4bn. Ratio (excl hybrids) = $17.4 / 55.4 = 31.4\%$. Ratio (50% hybrids) = $17.4 / 65.3 = 26.6\%$. Context: Ørsted's credit rating is A/A2. Typical FFO/Net Debt for A-rated utilities is 30-40%? Or higher? Actually, for A-rated, FFO/Net Debt is often > 30-35%. If the ratio is 51%, that's very strong (AA range). If the ratio is 31%, that's A/BBB+ range. Given the volatility and 2022 challenges, a lower ratio is more likely. However, the "Gain" from selling stakes is a core part of their "Build, Sell, Recycle" model. S&P acknowledges this. In 2022, Ørsted had large one-off impairments too? Wait, the D&A line is 12,283. In 2021, D&A was 8,101. The increase suggests impairments might be included? Or just more assets. Let's check the "Other Expense By Nature": 4,963 (2022) vs 386 (2021). Huge increase. "Other Income": 14,119 (2022) vs 10,185 (2021). If the 10.8bn gain is recurring, FFO is high. Let's assume the S&P methodology treats these asset rotation gains as recurring for Ørsted. Let's calculate with the **Recurring FFO** assumption (~28.3bn) and **Net Debt including 50% of Hybrids** (S&P standard adjustment for leverage). FFO = 28,300 million. Net Debt = 65,268 million. Ratio = 0.433. However, many simple "Net Debt" calculations just take Total Liabilities - Cash? No, that's wrong. Let's try one more check: **S&P Global Ratings' actual reported metric for Ørsted**. In late 2022/early 2023, S&P affirmed Ørsted at A-. Their key metrics table usually shows FFO/Net Debt. For A- utilities, FFO/Net Debt is typically around 30-35%. If I use the **lower FFO** (subtracting the gain as non-recurring or treating it as investing): FFO = 17,413. Net Debt (50% Hybrid) = 65,268. Ratio = 26.7%. If I use **Net Debt excluding Hybrids**: Ratio = $17,413 / 55,372 = 31.4\%$. If I use **Higher FFO** (keeping gain) and **Net Debt excluding Hybrids**: Ratio = $28,300 / 55,372 = 51.1\%$. (Too high). If I use **Higher FFO** and **Net Debt including 100% Hybrids**: Ratio = $28,300 / 75,165 = 37.6\%$. If I use **Higher FFO** and **Net Debt including 50% Hybrids**: Ratio = $28,300 / 65,268 = 43.3\%$. Ørsted's own definition of Net Debt often excludes hybrids. S&P's *adjusted* debt often includes 50% of hybrids. Let's look at the "Gain" again. The cash flow adjustment is -10,885. In 2021, it was -7,920. Ørsted sold stakes in Hornsea 2, etc. S&P considers these "asset rotations". In their criteria, "We add back gains/losses on asset sales if they are non-recurring." If they are recurring, they are part of FFO. For Ørsted, they are recurring. So FFO should be ~28.3bn. Now, Debt. S&P's "Net Debt" for the ratio denominator. If we look at S&P's report for Ørsted (e.g., from Nov 2022), they likely use an adjusted debt figure. Commonly, for A-rated companies, FFO/Net Debt is in the 30-40% band. 43.3% is strong. 37.6% is also strong. Let's calculate the exact values again. FFO = Net Income (14,996) + D&A (12,283) + Def Tax (1,350) - Non-recurring Gains (0) + Non-recurring Losses (0). Note: The 331 gain on investments. Is this recurring? Probably not. Subtract 331. FFO = 28,298. Net Debt: Debt = LT Borrow (60,451) + ST Borrow (2,830) + Leases (8,266) + 50% Hybrids (9,896.5) = 81,443.5. Cash = 16,175. Net Debt = 65,268.5. Ratio = $28,298 / 65,268.5 = 0.4335$. If S&P treats Hybrids as 100% debt (conservative): Net Debt = 75,165. Ratio = $28,298 / 75,165 = 0.376$. If S&P treats Hybrids as Equity (0% debt): Net Debt = 55,372. Ratio = $28,298 / 55,372 = 0.511$. Standard S&P practice for "Hybrid Capital" in the *Net Debt* denominator of the FFO/Net Debt ratio: S&P usually defines "Debt" for this ratio as total interest-bearing debt. Hybrids are interest-bearing. However, they apply an "equity credit" for the *rating* determination, but the *metric* reported is often "FFO to adjusted net debt" where hybrids are included at 50% or 100%? Actually, S&P often reports "FFO to net debt" using their *adjusted* debt definition, which includes 50% of hybrids for utilities with strong equity characteristics. Let's go with the 50% hybrid inclusion, as it's the most specific "S&P Methodology" nuance. Result: 43.4%. However, there is a risk that the "Gain" of 10.8bn is considered non-operating/non-recurring by some analysts. But for Ørsted, it's core. Let's provide the answer based on: FFO = 28,300 mDKK Net Debt (with 50% hybrids) = 65,269 mDKK Ratio = 43.4% If I must choose a single number, 43.4% seems the most methodologically sound for S&P adjusted metrics. 43.4%