Step 1 — Relevant industry

IBERDROLA SA is an integrated electricity utility with substantial regulated network operations and power generation/retail activities. Based on the supplied methodologies, the most relevant industry is Regulated Utilities, with some exposure to unregulated power and gas. For estimating the S&P-adjusted debt-to-EBITDA ratio, the regulated utility framework points to using S&P corporate adjustments, including debt-like treatment for leases, pensions, hybrids, and eligible cash.

Step 2 — Estimate Adjusted_Debt

Use year-end 2022 balance sheet values, shown as 2023-01-01.

Reported financial debt:
- Noncurrent debt with credit institutions and bonds: EUR 36,129m
- Current debt with credit institutions and bonds: EUR 10,458m

Reported gross debt = 36,129 + 10,458 = EUR 46,587m

Lease liabilities:
- Noncurrent lease liabilities: EUR 2,287m
- Current lease liabilities: EUR 151m

Total lease liabilities = 2,287 + 151 = EUR 2,438m

Pension deficit:
- Noncurrent provisions for employee benefits: EUR 1,226m
- Current provisions for employee benefits: EUR 42m

Estimated pension-related debt-like amount = 1,226 + 42 = EUR 1,268m

Hybrid / debt-like instruments:
- Noncurrent instruments of capital with characteristics of financial liability: EUR 576m
- Current instruments of capital with characteristics of financial liability: EUR 87m

Total = 576 + 87 = EUR 663m

Because these are already classified as financial liabilities and not included in the “debt with credit institutions and bonds” line, include them as debt-like financial obligations.

Other debt-like items:
- No specific guarantees or additional off-balance-sheet obligations are provided.
- Derivative liabilities are not treated as debt in this simplified estimate.
- Trade payables and other financial liabilities are not included as core debt absent clear debt-like classification.

Eligible cash:
- Cash and cash equivalents: EUR 4,608m

Adjusted_Debt = reported debt + leases + pension deficit + hybrid/debt-like instruments - eligible cash

Adjusted_Debt = 46,587 + 2,438 + 1,268 + 663 - 4,608 = EUR 46,348m

Step 3 — Estimate Adjusted_EBITDA

Reported EBITDA:
- “Beneficio Bruto De Explotacion Ebitda” 2022: EUR 13,228m

Lease adjustment:
- Since IFRS 16 lease liabilities are already capitalized and EBITDA generally excludes lease depreciation and interest, no additional EBITDA lease adjustment is made from the given data.

Nonrecurring gains/losses:
- “Other gains/losses” is EUR 911m, but the facts do not clearly identify it as nonrecurring. No adjustment is made.

Pension, JV, or other normalization adjustments:
- No sufficiently detailed data is provided to make reliable S&P-style normalization adjustments.
- Equity-method income is relatively small and not adjusted further.

Adjusted_EBITDA ≈ EUR 13,228m

Step 4 — Calculate Adjusted_Debt / Adjusted_EBITDA

Adjusted_Debt / Adjusted_EBITDA = 46,348 / 13,228 = 3.5036

Rounded to two decimals = 3.50

<answer>3.50</answer>