Step 1 — Relevant industry

TenneT Holding B.V. is described as a “transmission system operator.” This fits the Regulated Utilities methodology, specifically electricity transmission networks. The regulated utility framework is therefore the relevant methodology.

Step 2 — Estimate Adjusted EBITDA

Reported operating result for 2022:

- Profit/loss from operating activities = -€976 million
- Depreciation and amortisation expense = €1,233 million

Reconstructed EBITDA:

\[
EBITDA = EBIT + D\&A
\]

\[
EBITDA = -976 + 1{,}233 = 257
\]

So reported/reconstructed EBITDA is:

\[
EBITDA = €257\text{ million}
\]

Potential normalizations:

- Other gains/losses = -€38 million, i.e. a loss. Add back as nonrecurring/disposal-type loss.
- Share of profit of associates/JVs = €120 million is included in operating activities. S&P often adjusts for equity-accounted affiliates depending on cash distributions. The cash dividends received from JVs/associates were €92 million. Since EBITDA already includes the €120 million equity-accounted profit, a cash-flow-oriented adjustment could replace this with dividends received, reducing EBITDA by €28 million. However, the baseline EBITDA formula focuses on operating EBITDA, and the FFO calculation below uses cash taxes and interest directly. For a practical estimate, I will retain the operating-accounting inclusion and separately note this as a limitation.

Adjusted EBITDA estimate:

\[
Adjusted\ EBITDA = 257 + 38 = 295
\]

\[
Adjusted\ EBITDA = €295\text{ million}
\]

Step 3 — Estimate FFO

Baseline formula:

\[
FFO = Adjusted\ EBITDA - cash\ interest - cash\ taxes
\]

Cash interest:

- Interest paid classified as financing activities = €202 million

Cash taxes:

- Income taxes paid/refund classified as operating activities = €231 million  
- The sign in the data is positive, but economically this appears to be a tax refund/benefit in a loss year, consistent with income tax expense being negative. For FFO, cash taxes paid reduce FFO, while refunds increase it. The label combines “paid/refund,” so I treat the €231 million as a cash tax inflow/refund and add it.

Thus:

\[
FFO = 295 - 202 + 231
\]

\[
FFO = 324
\]

\[
FFO = €324\text{ million}
\]

Step 4 — Estimate Adjusted Debt

Reported debt components at 2022 year-end / 2023-01-01:

- Long-term borrowings = €19,006 million
- Short-term borrowings = €709 million
- Current bank overdrafts = €0 million

Reported borrowings:

\[
Reported\ debt = 19{,}006 + 709 = 19{,}715
\]

Lease liabilities:

- Noncurrent lease liabilities = €574 million
- Current lease liabilities = €155 million

\[
Leases = 574 + 155 = 729
\]

Pension deficit:

- Noncurrent recognised liabilities defined benefit plan = €174 million

\[
Pension\ deficit = 174
\]

Hybrid capital:

- Hybrid capital = €2,125 million
- S&P commonly grants intermediate equity credit to hybrids, often 50% debt / 50% equity if eligible. Estimate debt portion at 50%.

\[
Hybrid\ debt\ portion = 0.5 \times 2{,}125 = 1{,}062.5
\]

Gross adjusted debt before cash:

\[
Gross\ adjusted\ debt = 19{,}715 + 729 + 174 + 1{,}062.5
\]

\[
Gross\ adjusted\ debt = 21{,}680.5
\]

Eligible cash:

- Cash and cash equivalents = €6,547 million

S&P does not always net all cash, especially for regulated utilities, but the prompt’s baseline formula subtracts eligible cash. I therefore treat reported cash as eligible cash.

\[
Adjusted\ Debt = 21{,}680.5 - 6{,}547
\]

\[
Adjusted\ Debt = 15{,}133.5
\]

\[
Adjusted\ Debt = €15{,}133.5\text{ million}
\]

Step 5 — Calculate FFO / Adjusted Debt

\[
FFO / Adjusted\ Debt = \frac{324}{15{,}133.5}
\]

\[
FFO / Adjusted\ Debt = 0.021409
\]

Rounded to four decimals:

\[
0.0214
\]

<answer>0.0214</answer>