I'll work through this step-by-step for REN - Redes Energéticas Nacionais, SGPS, S.A.

## Step 1: Identify the Relevant Industry

REN is a Portuguese energy transmission company operating electricity and natural gas transmission/distribution networks under concession agreements. This is a **Regulated Utility** (specifically, a transmission network operator). The intangible assets (concession assets ~€4.1B) confirm this is a concession-based regulated utility.

## Step 2: Estimate Adjusted EBITDA

**Reconstructing EBITDA from the income statement (FY2022, period 2022-01-01 to 2023-01-01):**

Revenue from services: 588,130
Revenue from sale of goods: 96
Revenue from construction services: 197,420
Share of profit of associates: 11,812
Other operating income: 27,225
**Total Revenue & Operating Income: 824,683**

Operating expenses: 584,962
**Operating Profit (EBIT): 239,721**

Add back D&A: 249,276
Add back impairment: 1,437
Add back provisions: -2,230 (this is a net change; negative means increase in provisions = expense)

**EBITDA = EBIT + D&A = 239,721 + 249,276 = 488,997**

However, for S&P purposes, construction revenue and costs for concession assets are typically netted out (pass-through items):
- Construction revenue: 197,420
- Construction costs: 175,095
- Construction margin: 22,325

S&P typically strips out construction pass-through. Let me adjust:
EBITDA excluding construction: 488,997 - 22,325 = 466,672 (but S&P often leaves the margin in for concession utilities, so I'll keep the full EBITDA).

**Pension adjustment:** Pension deficit (employee benefits provision):
- At 2023-01-01: 64,939
- Change in OCI for remeasurement: 27,254 pre-tax gain

S&P typically adds back the service cost component and removes the actual cash contributions, but with limited data, I'll use the reported figures.

**Lease adjustment:** From cash flow, lease payments = 2,157 (principal) + 26 (interest) = 2,183. S&P adds back the depreciation component of leases to EBITDA. Approximately the full lease payment ~2,183 would be added.

**Adjusted EBITDA ≈ 488,997 + 2,183 = 491,180** (thousands EUR)

## Step 3: Estimate FFO

**Cash interest:**
Interest paid (financing): 40,545
Lease interest: 26
Total cash interest: 40,571

S&P lease interest adjustment: add lease interest = already included above.

**Cash taxes:**
Income taxes paid: 77,970
Energy sector extraordinary contribution: 28,019 (this is a tax-like item in Portugal)
Total cash taxes: 77,970 + 28,019 = 105,989

**FFO = Adjusted_EBITDA - cash_interest - cash_taxes**
FFO = 491,180 - 40,571 - 105,989 = 344,620

## Step 4: Estimate Adjusted Debt

**Reported debt:**
- Long-term borrowings: 1,695,362
- Current borrowings: 638,944
- Total reported debt: 2,334,306

**Lease obligations:** Already included in borrowings likely, but lease payments suggest small operating leases. Capitalizing at ~8x annual payment: 2,183 × 8 ≈ 17,464. But since IFRS 16 is applied, leases are likely already on balance sheet within borrowings. The small lease payments suggest minimal separate adjustment.

**Pension deficit:** 64,939 (noncurrent provisions for employee benefits at 2023-01-01)

**Surplus cash deduction:** S&P for regulated utilities typically doesn't deduct much cash. I'll be conservative and not deduct cash.

**Adjusted_Debt = 2,334,306 + 64,939 = 2,399,245**

## Step 5: Calculate FFO / Adjusted_Debt

FFO / Adjusted_Debt = 344,620 / 2,399,245 = 0.14364

Rounding to four decimal places: 0.1436

<answer>0.1436</answer>