Step 1 — Relevant industry

ERG S.p.A. is primarily a renewable power generation company operating wind and solar assets across Europe. Based on the methodologies provided, the closest fit is Unregulated Power And Gas, rather than regulated utilities or oil and gas E&P.

Step 2 — Estimate Adjusted_Debt

Use the baseline S&P-style formula:

Adjusted_Debt = reported_debt + leases + pension_deficit + other debt-like items − eligible_cash

From the 2022 year-end balance sheet, i.e. 2023-01-01:

Reported financial debt:
- Other noncurrent financial liabilities: €1,751.255 million
- Other current financial liabilities: €389.716 million

Leases:
- Noncurrent lease liabilities: €150.955 million
- Current lease liabilities: €6.362 million

Reported pension/employee benefit provision:
- Noncurrent provisions for employee benefits: €3.723 million

Cash:
- Cash and cash equivalents: €392.811 million

Calculation:

Reported debt = 1,751.255 + 389.716 = €2,140.971 million

Lease debt = 150.955 + 6.362 = €157.317 million

Pension deficit proxy = €3.723 million

Gross adjusted debt = 2,140.971 + 157.317 + 3.723 = €2,302.011 million

Adjusted_Debt = 2,302.011 − 392.811 = €1,909.200 million

So:

Adjusted_Debt ≈ €1,909.2 million

Step 3 — Estimate Adjusted_EBITDA

The company reports:

- Profit/loss from operating activities before interest, taxes, depreciation and amortisation expense, 2022: €499.430 million

This is effectively reported EBITDA from continuing operations. The facts also include discontinued operations profit, but without enough detail to reconstruct discontinued EBITDA. Since the continuing EBITDA line is explicitly provided and ERG underwent disposals in 2022, the cleaner estimate is to use reported continuing EBITDA.

Lease adjustment:

Under S&P corporate adjustments, operating leases are commonly capitalized and the lease-related expense is added back to EBITDA. The available annual lease cash payment is:

- Payments of lease liabilities classified as financing activities: €8.337 million

Using this as a proxy for lease EBITDA adjustment:

Adjusted_EBITDA = 499.430 + 8.337 = €507.767 million

No clear separate nonrecurring gains/losses, JV EBITDA, or pension service-cost adjustments are provided with sufficient detail for further reliable adjustment.

So:

Adjusted_EBITDA ≈ €507.8 million

Step 4 — Adjusted_Debt / Adjusted_EBITDA

Adjusted_Debt / Adjusted_EBITDA = 1,909.200 / 507.767 = 3.75999

Rounded to two decimals:

<answer>3.76</answer>