I'll work through this step-by-step, analyzing ITALGAS S.P.A. based on the provided financial data.

## Step 1: Identify the Relevant Industry

ITALGAS S.P.A. is a gas utility company. Looking at the provided methodologies:
- The company is described as providing gas distribution services
- It operates under regulatory frameworks (Italian gas distribution)
- It has "Core Business Revenue" with significant related-party transactions typical of regulated utilities

This fits the **Regulated Utilities** sector, specifically the **Gas** subsector.

## Step 2: Estimate Adjusted_Debt

For Regulated Utilities, I need to follow S&P's guidelines. Let me first identify the debt components from the balance sheet data (using 2023-01-01 values for year-end 2022):

### Reported Debt Components:
- **Short Term Financial Liabilities**: 142,437,000 EUR (excluding related party: 118,000 EUR, so total is 142,437,000)
  - Actually, let me check: "Short Term Financial Liabilities Excluding Other Current Financial Liabilities" 2023-01-01: 142,437,000 EUR
  - Related Parties Member: 118,000 EUR
  - Total short-term financial liabilities = 142,437,000 + 118,000 = 142,555,000 EUR? 
  - Actually, the base amount likely already includes related party, or the related party is additional. Looking at structure, the "Related Parties Member" seems to be a breakdown. Let me use the main figure: 142,437,000 EUR

- **Long Term Financial Liabilities**: 6,402,913,000 EUR (with Related Parties Member: -2,048,000 EUR)
  - Total long-term financial liabilities = 6,402,913,000 + (-2,048,000) = 6,400,865,000 EUR? 
  - Or the base is already consolidated. Let me use 6,402,913,000 as the main reported figure.

- **Other Current Financial Liabilities**: 290,000 EUR
- **Other Noncurrent Financial Liabilities**: 34,000 EUR

Let me also check for lease-related items. Looking at cash flow: "Cash Outflow For Leases" 2022-01-01 - 2023-01-01: 27,865,000 EUR

For regulated utilities, S&P mentions: "Where substantial seasonal working capital requirements--for example, at natural gas distribution utilities--distort leverage measures, we adjust inventory and debt balances by netting the value of inventory against outstanding short-term borrowings."

However, I need to be careful about what's already in the financial liabilities.

Let me reconstruct total reported debt:
- Short-term financial liabilities (excluding other): 142,437,000
- Other current financial liabilities: 290,000
- Long-term financial liabilities (excluding other): 6,402,913,000  
- Other noncurrent financial liabilities: 34,000

Total reported debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000 EUR

Wait - I need to check if "Other Current Financial Liabilities" and "Other Noncurrent Financial Liabilities" are already included or excluded. The naming suggests:
- "Short Term Financial Liabilities Excluding Other Current Financial Liabilities" - so other current financial liabilities are separate
- "Long Term Financial Liabilities Excluding Other Non Current Financial Liabilities" - so other noncurrent financial liabilities are separate

So total debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000 EUR

But I need to check for related party amounts. Looking more carefully:
- Short Term Financial Liabilities Excluding Other Current Financial Liabilities: 142,437,000 (base) + 118,000 (related party) = 142,555,000?
- Or is 142,437,000 the total and 118,000 is the portion from related parties?

Given the data structure where "Related Parties Member" appears as a child/dimension, the base figure likely includes related parties, and the "Related Parties Member" shows the portion. So:
- Short-term financial liabilities total = 142,437,000 (this includes 118,000 from related parties)
- Long-term financial liabilities = 6,402,913,000 (includes -2,048,000 from related parties? That seems odd with negative)

Actually, looking at 2022-01-01: "Related Parties Member" for long-term is 1,351,000, and for 2023-01-01 it's -2,048,000. This negative value suggests some consolidation adjustment. The base figure 6,402,913,000 is likely the consolidated figure already.

Let me use the main figures as reported:
- Short-term financial liabilities: 591,188,000 (2022) → 142,437,000 (2023)
- Long-term financial liabilities: 5,785,707,000 (2022) → 6,402,913,000 (2023)

For 2022 year-end (2023-01-01):
Reported debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000 EUR

### Leases:
From cash flow statement: "Cash Outflow For Leases" = 27,865,000 EUR for 2022-2023.
This is a cash flow item. For debt-like leases, I need to estimate the lease liability. 

Looking at the balance sheet, I don't see explicit lease liabilities. The cash outflow for leases suggests operating leases. Under IFRS 16, these would be on balance sheet. Let me check if there are right-of-use assets or lease liabilities disclosed.

Actually, looking more carefully at the data, I don't see explicit "Lease Liabilities" line items. The "Cash Outflow For Leases" in financing activities suggests these might be already included in financial liabilities or treated as operating.

For S&P purposes, if leases are already capitalized on balance sheet (IFRS 16), they're in debt. If not, I need to add them. Given this is 2022 data and IFRS 16 is in effect, leases are likely capitalized.

However, I need to estimate. The annual cash outflow for leases is 27,865,000. If average lease term is say 5 years, lease liability might be around 5 × 27,865,000 ≈ 139,325,000. But this is rough.

Actually, let me check if there are other clues. Looking at "Costs For The Use Of Third Party Assets" = 102,319,000 EUR for 2022-2023. This includes operating lease expenses. But under IFRS 16, only short-term and low-value leases remain as expenses.

Let me be more conservative. For regulated utilities with seasonal working capital, S&P allows netting inventory against short-term borrowings if confident of near-term cost recovery.

Looking at inventories: 120,486,000 EUR at 2023-01-01
Short-term borrowings: 142,437,000 EUR

Net seasonal adjustment could reduce short-term debt by inventory amount if applicable.

But actually, for gas distribution, inventory (gas in storage) is typically recoverable through tariffs.

Let me proceed with a more straightforward approach and check if I need pension adjustments.

### Pension Deficit:
Looking at "Noncurrent Provisions For Employee Benefits": 69,917,000 EUR at 2023-01-01
This is a provision, not necessarily a deficit. For funded pension plans, I'd need the deficit. Without more detail, I'll note this but may not adjust if it's already captured.

Actually, "Adjustments For Increase Decrease In Employee Benefit Liabilities" in cash flow: -17,574,000 EUR (negative means increase in liability or decrease in benefit).

For S&P, pension deficit = pension obligations - plan assets. Without plan assets data, I'll use the provision as a proxy if underfunded, or note that Italian companies often have defined contribution or TFR (trattamento di fine rapporto) which are not classic pensions.

The "Noncurrent Provisions For Employee Benefits" of 69,917,000 likely includes TFR and other post-employment benefits. This is already in liabilities.

### Guarantees and Other Debt-like Items:
Not explicitly disclosed in the data provided.

### Hybrid Debt:
Not identified in the data.

### Cash and Equivalents:
- Cash And Cash Equivalents: 451,946,000 EUR
- Current Financial Assets Excluding Other Current Financial Assets: 5,770,000 EUR (with 2,246,000 from related parties)
  - This includes items like short-term investments, not necessarily cash equivalents
- Other Current Financial Assets: 17,455,000 EUR

For S&P, eligible cash typically includes cash and cash equivalents, and sometimes very liquid short-term investments.

Total liquid assets = 451,946,000 + 5,770,000 + 17,455,000 = 475,171,000 EUR? 

But "Current Financial Assets Excluding Other Current Financial Assets" might include receivables-like items. Let me be more conservative and use just Cash And Cash Equivalents = 451,946,000 EUR, or perhaps add the "Current Financial Assets" if they're liquid.

Actually, looking at 2022-01-01: Cash = 1,391,763,000, and "Current Financial Assets Excluding Other" = 5,120,000. The big drop in cash suggests the 5,770,000 is likely liquid financial assets (maybe short-term deposits or bonds).

Let me use: Cash and cash equivalents = 451,946,000 EUR
Plus potentially liquid current financial assets = 5,770,000 EUR
Total eligible cash = 457,716,000 EUR

Or more conservatively, just 451,946,000 EUR.

### Seasonal Working Capital Adjustment for Regulated Gas Utilities:
S&P specifically mentions: "we adjust inventory and debt balances by netting the value of inventory against outstanding short-term borrowings"

Inventory at 2023-01-01: 120,486,000 EUR
Short-term borrowings: 142,437,000 EUR

If we net inventory against short-term borrowings:
Adjusted short-term borrowings = 142,437,000 - 120,486,000 = 21,951,000 EUR

But this only applies if we're "very confident of near-term cost recovery" through tariffs. For a regulated gas distributor, this seems reasonable.

Let me calculate with and without this adjustment.

**Without seasonal adjustment:**
Reported debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000 EUR

**With seasonal adjustment:**
Adjusted short-term = 142,437,000 - 120,486,000 = 21,951,000 (but not below zero, and only if we net)
Actually, S&P says "netting the value of inventory against outstanding short-term borrowings" - this reduces both inventory and debt for ratio purposes.

So adjusted debt = (142,437,000 - 120,486,000) + 290,000 + 6,402,913,000 + 34,000 = 21,951,000 + 290,000 + 6,402,913,000 + 34,000 = 6,425,188,000 EUR

But wait - this seems inconsistent. Let me re-read: "we adjust inventory and debt balances by netting the value of inventory against outstanding short-term borrowings. This adjustment informs balance sheet analysis by reducing seasonal debt balances"

So the debt is reduced, but inventory is also reduced (though inventory doesn't affect debt directly, it affects working capital). For debt calculation, we reduce short-term borrowings by inventory amount.

However, this is optional and depends on confidence in cost recovery. Let me proceed without this adjustment first, then consider it.

### Lease Adjustment:
Given IFRS 16, leases should be on balance sheet. But I need to check if they're in the financial liabilities. Looking at the cash flow, "Cash Outflow For Leases" is in financing activities, suggesting these are principal repayments of lease liabilities, which would be in debt already.

The amount 27,865,000 is the cash outflow. If this is a repayment, the lease liability would have been higher at start of year. But without knowing opening lease liability, I can't easily estimate.

For 2022-2023, if we assume average lease liability of say 100,000,000 to 150,000,000 based on 5-year term, this might already be in the 6.4 billion long-term debt.

Actually, looking at Italian gas utilities, lease liabilities for meters, offices, vehicles are typically included in financial liabilities under IFRS 16.

Let me proceed with reported debt and check if I need to add estimated leases.

### Final Adjusted Debt Calculation:

Using reported financial liabilities:
- Short-term financial liabilities: 142,437,000
- Other current financial liabilities: 290,000  
- Long-term financial liabilities: 6,402,913,000
- Other noncurrent financial liabilities: 34,000
- Total: 6,545,674,000 EUR

Less: Cash and cash equivalents: 451,946,000
Less: Current financial assets (liquid): 5,770,000

Adjusted Debt = 6,545,674,000 - 451,946,000 - 5,770,000 = 6,087,958,000 EUR

Or with just cash: 6,545,674,000 - 451,946,000 = 6,093,728,000 EUR

Let me also consider if we should subtract more liquid assets. "Other Current Financial Assets" = 17,455,000. If these are liquid financial assets, we could include them.

Total liquid = 451,946,000 + 5,770,000 + 17,455,000 = 475,171,000

Adjusted Debt = 6,545,674,000 - 475,171,000 = 6,070,503,000 EUR

Hmm, but "Other Current Financial Assets" at 2022-01-01 was 0, so this 17,455,000 is new in 2022. Could be derivatives or other items.

Let me use a middle ground: Cash + Current Financial Assets Excluding Other = 451,946,000 + 5,770,000 = 457,716,000

Adjusted Debt = 6,545,674,000 - 457,716,000 = 6,087,958,000 EUR

Or approximately 6,088 million EUR.

Actually, let me re-examine. The "Current Financial Assets Excluding Other Current Financial Assets" - this awkward phrasing suggests it's a subcategory. Looking at 2022: 5,120,000 and 2023: 5,770,000. These are small amounts, likely short-term deposits or similar.

I'll use: Adjusted Debt ≈ 6,088 million EUR (with cash and liquid financial assets deducted)

But let me also check if there are derivatives or other items that S&P might treat differently. For regulated utilities, S&P mentions they "deconsolidate securitized debt (and associated revenue and expense) that has been accorded specialized recovery provisions." I don't see evidence of securitization here.

## Step 3: Estimate Adjusted_EBITDA

For regulated utilities, EBITDA is typically used. Let me reconstruct from the income statement data.

From the data for period 2022-01-01 to 2023-01-01 (FY 2022):

Revenue and Operating Income: 2,312,476,000 EUR

Operating Expense: 1,191,952,000 EUR

Wait, "Revenue And Operating Income" seems to be total revenue, not operating income. Let me check:
- "Core Business Revenue": 2,182,712,000
- "Other Revenue And Income": 129,764,000
- Total: 2,312,476,000 = "Revenue And Operating Income"

So "Revenue And Operating Income" is actually total revenue, not operating income. The naming is confusing.

Then "Operating Expense" = 1,191,952,000

But this doesn't include depreciation. We have:
"Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 479,186,000

And "Profit Loss From Operating Activities" = 641,338,000

Let me verify: Revenue - Operating Expense - D&A = Operating Profit?
2,312,476,000 - 1,191,952,000 - 479,186,000 = 641,338,000 ✓

Yes! So:
EBIT = Profit Loss From Operating Activities = 641,338,000 EUR
D&A = 479,186,000 EUR
EBITDA = EBIT + D&A = 641,338,000 + 479,186,000 = 1,120,524,000 EUR

Or: Revenue - Operating Expense + D&A - D&A? No wait:
Operating Expense in this context seems to be cash operating costs, not including D&A.

Actually let me verify: "Operating Expense" = 1,191,952,000
If this includes all operating costs except D&A, then:
EBITDA = Revenue - Cash Operating Expenses = 2,312,476,000 - 1,191,952,000 = 1,120,524,000
Or EBIT = 1,120,524,000 - 479,186,000 = 641,338,000 ✓

So EBITDA = 1,120,524,000 EUR

### Adjustments for S&P:

For regulated utilities, S&P mentions they do not adjust GAAP earnings for regulatory accounting effects. They focus on economics and actual cash flow.

Let me check for non-recurring items and other adjustments:

1. **Leases**: If we added lease liabilities to debt, we should add back lease expenses to EBITDA. But under IFRS 16, lease expenses are already split into depreciation and interest. The "Costs For The Use Of Third Party Assets" = 102,319,000 includes short-term and low-value lease expenses. Under IFRS 16, most lease costs are in D&A and interest, not operating expense.

Actually, looking at "Costs For The Use Of Third Party Assets" = 102,319,000. Under IFRS 16, this would be mainly for short-term leases, low-value leases, and variable lease payments not included in lease liability.

For S&P, if we capitalize operating leases (add to debt), we add back lease expense to EBITDA. But under IFRS 16, this is already largely done. The remaining "Costs For The Use Of Third Party Assets" might need to be adjusted if S&P treats it differently.

However, for simplicity and given IFRS 16 adoption, I'll assume the accounting EBITDA is close to S&P's adjusted EBITDA for lease purposes.

2. **Non-recurring items**: Looking for one-time gains/losses.

From cash flow adjustments:
- "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" = -25,357,000 (negative means gain)
This is a gain on disposal, which S&P would typically exclude.

- "Other Income Expense From Equity Investments" = 2,722,000 (income)
This is from equity investments, might be non-operating.

- "Adjustments For Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 895,000 (impairment)
This is already in D&A line.

- "Adjustments For Effect Of Valuation Using The Equity Method" = -662,000 (deducted)
This is equity method earnings, already excluded from operating profit.

Let me look more carefully at what's in operating profit vs. below the line.

From the P&L structure:
- Profit Loss From Operating Activities: 641,338,000
- Then: Finance Costs, Finance Income, Gains On Change In Fair Value Of Derivatives
- Then: Effect Of Valuation Using The Equity Method, Revenue From Dividends, Other Income Expense From Equity Investments
- Share Of Profit Loss Of Associates: 3,432,000
- Profit Loss Before Tax: 588,495,000

So operating profit is clean at 641,338,000 before financing and equity items.

For EBITDA, I have 1,120,524,000.

Non-recurring or items to normalize:
- Gain on disposal of non-current assets: 25,357,000 (from cash flow, negative adjustment means gain was deducted, so it was included in profit)
  Wait, the cash flow adjustment is "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" = -25,357,000. This means a gain of 25,357,000 was deducted to get to cash flow (i.e., it was in profit but not cash). So this gain is in operating profit.

Actually, let me check if this gain is in "Profit Loss From Operating Activities" or below. The cash flow starts from "Profit Loss" (net income) or from operating activities? Looking at the structure, the adjustments are to reconcile to "Cash Flows From Used In Operations".

The adjustments start from profit and add back D&A, etc. So the gain on disposal affected net income. Was it in operating profit or financial? Typically, gains on disposal of PPE are in operating profit or below. Given it's an investing activity, it might be below operating profit.

Actually, "Proceeds From Sales Of Property Plant And Equipment" is in investing activities. The gain would be the difference between proceeds and book value. If it's in operating profit, we need to exclude it.

Let me assume the gain on disposal is non-recurring and should be excluded from S&P EBITDA.

Also: "Other Income From Equity Investments" = -2,722,000 (deducted in cash flow, meaning it was income). This is below operating profit.

"Revenue From Dividends" = 48,000 - also below operating.

For S&P Adjusted EBITDA, typical adjustments:
- Add back non-recurring losses / subtract non-recurring gains
- Normalize for one-time items

The gain on disposal: 25,357,000 - this should be subtracted from EBITDA if included.

Let me check if it's in operating profit. Looking at "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" in cash flow from operations section. Since it's an adjustment to get from profit to operating cash flow, and it's negative (gain), this suggests the gain was included in profit but not in operating cash flow. 

If the gain was in "Profit Loss From Operating Activities", then EBITDA includes it. But typically, gains on disposal of non-current assets are not in operating profit - they're either in operating or financial depending on classification.

Given uncertainty, let me be conservative and check materiality. 25,357,000 / 1,120,524,000 = 2.3%. Material but not huge.

Also, "Other Expense By Nature" includes "Related Parties Member" of 155,131,000. This seems like related-party expenses. Are these at arm's length? For S&P, if related-party transactions are not at arm's length, we might adjust. But this is complex.

Looking at the big picture: Core Business Revenue has Related Parties Member of -229,456,000 (negative!). This is strange - related party revenue is negative? This suggests significant related-party adjustments or net positions.

Actually, looking more carefully: "Core Business Revenue" "Related Parties Member" 2022-01-01 - 2023-01-01: -229,456,000 EUR

Negative related party revenue? This could mean that the related party amount is a net deduction, or there's some consolidation adjustment. This is unusual.

Similarly, "Trade And Other Current Payables" "Related Parties Member" 2023-01-01: 444,040,000 - very large.

And "Trade And Other Current Receivables" "Related Parties Member" 2023-01-01: 28,586,000

The large related party payables suggest significant related-party transactions. For S&P, if these are not at arm's length, adjustments might be needed. But without more information, I'll proceed with reported numbers.

Let me also check for pension adjustments. The "Adjustments For Increase Decrease In Employee Benefit Liabilities" = -17,574,000. This is a cash flow adjustment. For EBITDA, pension service cost is typically included in operating expenses, so no adjustment needed unless there's a non-service component.

For regulated utilities, S&P notes: "We do not adjust GAAP earnings or balance-sheet figures to remove the effects of regulatory accounting." So I should use reported EBITDA.

### Final Adjusted EBITDA Calculation:

Base EBITDA = 1,120,524,000 EUR

Potential adjustments:
- Subtract gain on disposal of non-current assets: 25,357,000 (if in operating profit)
- Other normalization: uncertain

Let me check if there are other items. "Other Revenue And Income" = 129,764,000. Is this recurring? For utilities, this might include various items.

Actually, looking at the structure, "Other Revenue And Income" includes "Related Parties Member" of 17,863,000. This seems like recurring other income.

I'll use base EBITDA of 1,120,524,000 EUR, and consider if I need to adjust for the gain.

Given that the gain on disposal is likely not in operating profit (it's probably classified as financial or extra), I'll keep EBITDA as is. But to be safe, let me subtract it:

Adjusted EBITDA = 1,120,524,000 - 25,357,000 = 1,095,167,000 EUR

Or if not in operating profit: 1,120,524,000 EUR.

Let me also consider: "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" = -342,000. This is a reversal of impairment (credit). Small, ignore.

And "Net Accrual To Provisions For Risk And Charges" = -1,797,000 (release of provisions). This affects operating profit. Is this non-recurring? Provisions can be recurring. Small anyway.

Let me use Adjusted EBITDA ≈ 1,120,524,000 EUR (or ~1,095 million if adjusting for gain).

Actually, let me recalculate EBITDA more carefully from the components to make sure:

From cash flow:
- "Adjustments For Depreciation And Amortisation Expense" = 478,290,000
- "Adjustments For Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 895,000

Total D&A and impairment = 479,185,000 ≈ 479,186,000 (matches P&L)

Operating profit = 641,338,000
So EBITDA = 641,338,000 + 479,186,000 = 1,120,524,000 ✓

Now, from cash flow, "Cash Flows From Used In Operations" = 548,169,000
This is operating cash flow. 

FCF = OCF - Capex = 548,169,000 - (10,645,000 + 766,585,000 + 874,741,000 - 47,733,000) ... wait, investing activities are complex.

Actually, let me check if my EBITDA makes sense with OCF:
OCF = 548,169,000
Typical: OCF ≈ EBITDA - Working capital changes - Cash taxes + other

Working capital increase (use of cash) = 336,750,000 (from "Increase Decrease In Working Capital" negative)
Finance costs paid = 53,720,000
Finance income received = 4,043,000
Dividends received = 1,372,000
Income taxes paid = 152,372,000

Rough check: EBITDA 1,120,524,000 - Working capital increase 336,750,000 - Cash taxes 152,372,000 - Interest paid (net) ~50,000,000 ≈ 581,000,000. Close to 548,169,000 with other items.

So EBITDA seems correct.

## Step 4: Calculate Adjusted_Debt / Adjusted_EBITDA

Let me finalize numbers:

**Adjusted Debt options:**
1. Conservative: 6,545,674,000 - 451,946,000 = 6,093,728,000 (just cash)
2. Moderate: 6,545,674,000 - 457,716,000 = 6,087,958,000 (cash + liquid financial assets)
3. With seasonal adjustment: ~6,425,188,000 - 451,946,000 = 5,973,242,000

Actually, let me reconsider the seasonal adjustment. S&P says "we adjust inventory and debt balances by netting the value of inventory against outstanding short-term borrowings." This is for "natural gas distribution utilities" where seasonal working capital distorts leverage. 

For ITALGAS, inventory is 120,486,000 and short-term financial liabilities are 142,437,000. If we net:
Adjusted short-term borrowings = 142,437,000 - 120,486,000 = 21,951,000
This reduces debt by 120,486,000.

But is this appropriate? ITALGAS is a gas distributor, so yes, it likely has seasonal gas storage. And as a regulated utility, cost recovery is likely.

With seasonal adjustment:
Total debt = 21,951,000 + 290,000 + 6,402,913,000 + 34,000 = 6,425,188,000
Less cash = 451,946,000
Adjusted Debt = 5,973,242,000

Without seasonal adjustment:
Adjusted Debt = 6,093,728,000 (with just cash)

Difference is about 120 million, or ~2% of debt. Not huge.

Let me use without seasonal adjustment for conservatism, or with if following S&P guidance specifically for gas utilities.

Actually, re-reading: "Where substantial seasonal working capital requirements--for example, at natural gas distribution utilities--distort leverage measures, we adjust inventory and debt balances by netting the value of inventory against outstanding short-term borrowings."

This suggests S&P does make this adjustment for gas distribution utilities. So I should use it.

Adjusted Debt with seasonal adjustment and cash:
= 6,425,188,000 - 451,946,000 = 5,973,242,000 EUR

Or with liquid financial assets too:
= 5,973,242,000 - 5,770,000 = 5,967,472,000 EUR

**Adjusted EBITDA:**
= 1,120,524,000 EUR (base)
Or 1,095,167,000 (if adjusting for gain)

Let me check if the gain is material enough. 25,357,000 gain. Looking at "Proceeds From Sales Of Property Plant And Equipment" = 2,502,000 and "Proceeds From Sales Of Intangible Assets" = 293,213,000. Total proceeds 295,715,000. The gain of 25,357,000 on these sales is about 8.6% of proceeds, reasonable.

Where is this gain recorded? Looking at cash flow adjustments, it's deducted from profit to get to operating cash flow. This means it was included in profit. But was it in operating profit or net profit?

Typically, gains on disposal of PPE and intangibles are NOT in operating profit. They're usually in "other income" or financial results. Let me check the P&L structure again.

Below operating profit:
- Finance Costs: 61,367,000
- Finance Income: 4,043,000
- Gains On Change In Fair Value Of Derivatives: 1,049,000
- Effect Of Valuation Using The Equity Method: 662,000
- Revenue From Dividends: 48,000
- Other Income Expense From Equity Investments: 2,722,000
- Share Of Profit Loss Of Associates: 3,432,000

I don't see "gains on disposal" explicitly. It might be in "Other Income Expense From Equity Investments" or it might be in operating profit.

Actually, looking at IFRS, gains on disposal of PPE can be in operating activities if it's part of normal operations, or in investing. The cash flow classification shows proceeds in investing, so the gain is likely not in operating profit.

Therefore, I won't adjust EBITDA for the gain.

**Final numbers:**
- Adjusted Debt = 5,973,242,000 EUR (with seasonal adjustment and cash deduction)
  Or 6,093,728,000 without seasonal adjustment
  
Let me use the seasonal adjustment since S&P specifically mentions it for gas distribution utilities.

Adjusted Debt = 5,973,242,000 EUR

Adjusted EBITDA = 1,120,524,000 EUR

Ratio = 5,973,242,000 / 1,120,524,000 = 5.33

Without seasonal adjustment:
Ratio = 6,093,728,000 / 1,120,524,000 = 5.44

Let me also check if I should use average or year-end debt. S&P typically uses year-end or latest available, but sometimes average for seasonal businesses. Given the seasonal adjustment addresses this, year-end should be fine.

Actually, let me recalculate more carefully with the exact numbers:

Debt components at 2023-01-01 (end of FY 2022):
- Short Term Financial Liabilities Excluding Other Current Financial Liabilities: 142,437,000
- Related Parties Member for short term: 118,000 (is this included or additional?)

Looking at 2022 data: 591,188,000 + 464,000 = 591,652,000 total short-term? Or is 464,000 part of 591,188,000?

The way the data is structured, "Related Parties Member" appears as a separate fact with the same concept. This suggests it's a breakdown. So 591,188,000 is total, of which 464,000 is related party.

Similarly for 2023: 142,437,000 total, of which 118,000 is related party.

So my original figures are correct - use 142,437,000.

For long-term: 6,402,913,000 total, of which -2,048,000 is related party (negative due to consolidation adjustment).

Other current financial liabilities: 290,000 (no related party)
Other noncurrent financial liabilities: 34,000 (no related party)

Total debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000

With seasonal netting of inventory against short-term borrowings:
- Short-term borrowings after netting = 142,437,000 - 120,486,000 = 21,951,000
- But wait, can this go below zero? No, minimum is zero. 21,951,000 > 0, so OK.

Adjusted debt before cash = 21,951,000 + 290,000 + 6,402,913,000 + 34,000 = 6,425,188,000

Less cash and equivalents: 451,946,000
Less current financial assets (liquid): 5,770,000? 

Actually, S&P's "eligible cash" typically includes:
- Cash and cash equivalents
- Short-term liquid investments that are readily convertible to cash

"Current Financial Assets Excluding Other Current Financial Assets" - this is an awkward label. Looking at 2022: 5,120,000 and 2023: 5,770,000. These are small amounts. "Other Current Financial Assets" at 2023 is 17,455,000.

I think "Current Financial Assets Excluding Other Current Financial Assets" means financial assets other than the "Other" category. So it's like "main" current financial assets. These could be short-term deposits, marketable securities, etc.

I'll include both as eligible cash:
Total eligible cash = 451,946,000 + 5,770,000 + 17,455,000 = 475,171,000

But wait, "Other Current Financial Assets" was 0 in 2022 and 17,455,000 in 2023. This increase might be derivatives or other items. Let me check if there's a related party amount: "Other Current Financial Assets" "Related Parties Member" 2023-01-01: 0 EUR. So no related party amount.

For conservatism, I'll use just Cash and Cash Equivalents plus "Current Financial Assets Excluding Other" = 457,716,000.

Adjusted Debt = 6,425,188,000 - 457,716,000 = 5,967,472,000 EUR

Adjusted EBITDA = 1,120,524,000 EUR

Ratio = 5,967,472,000 / 1,120,524,000 = 5.325... ≈ 5.33

Let me also try without seasonal adjustment:
Adjusted Debt = 6,545,674,000 - 457,716,000 = 6,087,958,000
Ratio = 6,087,958,000 / 1,120,524,000 = 5.433... ≈ 5.43

Given S&P's specific guidance for gas distribution utilities to make this seasonal adjustment, I should use it.

But let me double-check - is ITALGAS primarily a gas distribution utility? Looking at the name and "Core Business Revenue" structure, yes. The negative related party revenue is strange but the overall business is gas distribution.

Actually, let me reconsider the seasonal adjustment. S&P says "when we are very confident of near-term cost recovery." For a regulated Italian gas distributor with regulatory asset base mechanisms, this seems reasonable. But is "near-term" recovery assured? In Italy, gas distribution tariffs are set by ARERA (regulator) and typically allow for cost recovery, but there can be lags.

Given the specific mention of "natural gas distribution utilities" as an example where this adjustment is made, and ITALGAS being a major Italian gas distributor, I'll apply it.

Final calculation:
Adjusted Debt = 5,967,472,000 EUR
Adjusted EBITDA = 1,120,524,000 EUR
Ratio = 5.325

Rounded to two decimal places: 5.33

Wait, let me recheck: 5,967,472,000 / 1,120,524,000

= 5967472000 / 1120524000

Let me do this division more carefully:
5967.472 / 1120.524 = ?

1120.524 × 5 = 5602.62
5967.472 - 5602.62 = 364.852

364.852 / 1120.524 = 0.3256...

So 5.3256... ≈ 5.33

Actually, let me verify my debt calculation once more:

Without seasonal adjustment:
Total debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000

With seasonal adjustment (net inventory against short-term borrowings):
Short-term borrowings become: 142,437,000 - 120,486,000 = 21,951,000
Total debt becomes: 21,951,000 + 290,000 + 6,402,913,000 + 34,000 = 6,425,188,000

Cash deducted: 451,946,000 + 5,770,000 = 457,716,000

Adjusted Debt = 6,425,188,000 - 457,716,000 = 5,967,472,000

Hmm, but should I also deduct the "Other Current Financial Assets" of 17,455,000? 

If I include that:
Eligible cash = 451,946,000 + 5,770,000 + 17,455,000 = 475,171,000
Adjusted Debt = 6,425,188,000 - 475,171,000 = 5,950,017,000
Ratio = 5,950,017,000 / 1,120,524,000 = 5.310... ≈ 5.31

Or if I only use Cash and Cash Equivalents (conservative):
Adjusted Debt = 6,425,188,000 - 451,946,000 = 5,973,242,000
Ratio = 5,973,242,000 / 1,120,524,000 = 5.331... ≈ 5.33

I think using just Cash and Cash Equivalents is more standard for S&P, unless other items are clearly liquid investments. The "Current Financial Assets Excluding Other Current Financial Assets" is ambiguous.

Let me use Adjusted Debt = 5,973,242,000 and Ratio = 5.33.

But actually, I want to double-check my EBITDA. Is it possible that "Operating Expense" already includes some items I need to adjust?

Looking at the detailed operating expense breakdown:
- Raw Materials And Consumables Used: 154,746,000
- Services Expense: 654,094,000
- Costs For The Use Of Third Party Assets: 102,319,000
- Employee Benefits Expense: 257,492,000
- Net Accrual To Provisions For Risk And Charges: -1,797,000 (release)
- Impairment Loss Reversal... Trade Receivables: -342,000 (reversal)
- Other Expense By Nature: 25,440,000

Sum: 154,746,000 + 654,094,000 + 102,319,000 + 257,492,000 - 1,797,000 - 342,000 + 25,440,000 = 1,191,952,000 ✓

This matches "Operating Expense". 

Then D&A = 479,186,000
Operating profit = 2,312,476,000 - 1,191,952,000 - 479,186,000 = 641,338,000 ✓

EBITDA = 2,312,476,000 - 1,191,952,000 = 1,120,524,000 
Or = 641,338,000 + 479,186,000 = 1,120,524,000 ✓

Now, for S&P Adjusted EBITDA, should I add back the lease expense that was in operating costs? Under IFRS 16, lease expenses are split:
- Depreciation of right-of-use assets: in D&A
- Interest on lease liabilities: in finance costs
- Variable lease payments, short-term leases, low-value leases: in operating costs

The "Costs For The Use Of Third Party Assets" = 102,319,000 likely includes some lease-related costs. But under IFRS 16, most lease costs are not in operating expenses.

Actually, let me check: "Cash Outflow For Leases" = 27,865,000. This is the principal repayment of leases. The total lease expense under IFRS 16 would be higher (including interest).

For S&P's pre-IFRS 16 methodology, they would capitalize operating leases by adding to debt and adding back lease expense to EBITDA. Under IFRS 16, this is already largely reflected.

However, if S&P wants to maintain comparability with pre-IFRS 16 metrics, they might make adjustments. But the methodology document doesn't explicitly mention this for utilities.

Given the complexity and that IFRS 16 is now standard, I'll use the accounting EBITDA.

One more check: should I use reported EBITDA or "adjusted" for non-recurring items?

Looking at the operating expenses, "Net Accrual To Provisions For Risk And Charges" = -1,797,000. This is a release of provisions, which reduces operating expenses and increases profit. Is this non-recurring? Provisions can be recurring as they're re-estimated. But a release (negative accrual) might be one-time.

Similarly, "Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss Trade Receivables" = -342,000. This is a reversal of prior impairment, also reducing operating expenses.

These are small items: 1,797,000 + 342,000 = 2,139,000 total. Very small vs 1,120,524,000 EBITDA (0.2%). Ignore.

What about "Other Expense By Nature" = 25,440,000 with Related Parties Member = 155,131,000? Wait, that doesn't add up. The total is 25,440,000 but related party portion is 155,131,000? That would imply negative third-party portion.

Actually, looking more carefully: "Other Expense By Nature" 2022-01-01 - 2023-01-01: 25,440,000 EUR
"Other Expense By Nature" "Related Parties Member" 2022-01-01 - 2023-01-01: 155,131,000 EUR

This is impossible if related party is a subset. Unless... the related party amount is not a subset but something else? Or there's a sign issue?

Wait, looking at 2021-2022: "Other Expense By Nature" = 25,783,000 and "Related Parties Member" = 99,170,000. Also impossible as subset.

This suggests the "Related Parties Member" might not be a simple breakdown. Perhaps it's a net amount or there's some accounting where related party transactions are recorded differently.

Actually, looking at "Trade And Other Current Payables" "Related Parties Member" 2023-01-01: 444,040,000. This is very large compared to total payables of 1,197,117,000. That's 37% related party.

And "Trade And Other Current Receivables" "Related Parties Member" 2023-01-01: 28,586,000 vs total 1,142,950,000. Only 2.5% related party.

The asymmetry suggests complex related-party arrangements, possibly with the parent company or major shareholders.

For S&P, if related-party payables represent financing-like arrangements (e.g., amounts owed to parent company that function like equity or long-term financing), they might be reclassified. But without more information, I'll treat them as normal trade payables.

Given all this, let me finalize:

**Adjusted Debt:** 5,973,242,000 EUR (with seasonal inventory netting and cash deduction)
**Adjusted EBITDA:** 1,120,524,000 EUR
**Ratio:** 5.33

Actually, I want to try one more variation. What if I don't do the seasonal adjustment but do everything else?

Adjusted Debt = 6,545,674,000 - 451,946,000 = 6,093,728,000
Ratio = 6,093,728,000 / 1,120,524,000 = 5.438... ≈ 5.44

And with more cash deducted:
Adjusted Debt = 6,545,674,000 - 475,171,000 = 6,070,503,000
Ratio = 5.42

The seasonal adjustment makes about 0.1 difference. Given S&P's explicit mention for gas distribution, I'll use it.

Final answer: 5.33

But wait - let me also consider if I should use average debt rather than year-end. For utilities with seasonal patterns, S&P might use average or latest. The seasonal adjustment is meant to address this by adjusting year-end figures. So year-end adjusted should be fine.

One more thing: should I include noncontrolling interests in the debt or equity treatment? S&P typically includes NCI in equity, not debt. The equity section shows NCI of 282,308,000 at 2023-01-01. This is already in equity.

Also, should I consider the equity method investments? "Investment Accounted For Using Equity Method" = 47,243,000. This is an asset, not debt.

And "Noncurrent Financial Assets" = 22,945,000. Not relevant for debt.

Let me also verify my debt figure by looking at total liabilities and equity:
Total Liabilities 2023-01-01: 8,639,987,000
Total Equity: 2,390,570,000
Total: 11,030,557,000 = Assets ✓

Debt is a subset of liabilities. Total current liabilities = 1,386,021,000, noncurrent = 7,253,966,000.

Financial liabilities portion: short-term 142,437,000 + other current financial 290,000 + long-term 6,402,913,000 + other noncurrent financial 34,000 = 6,545,674,000.

This is about 76% of total noncurrent liabilities and 48% of total liabilities. The rest is trade payables, provisions, taxes, deferred tax, etc.

This seems reasonable for a capital-intensive utility.

OK, I'm comfortable with the calculation. Let me provide the final answer.

Actually, one last check: should I use the average of beginning and ending debt? S&P sometimes uses this for ratios. 

Debt at 2022-01-01 (beginning of year):
- Short term: 591,188,000
- Other current financial: 290,000
- Long term: 5,785,707,000
- Other noncurrent financial: 670,000
- Total: 6,377,855,000

With seasonal adjustment (inventory at 2022-01-01: 105,294,000):
Adjusted short-term = 591,188,000 - 105,294,000 = 485,894,000
Total adjusted debt before cash = 485,894,000 + 290,000 + 5,785,707,000 + 670,000 = 6,272,561,000
Less cash (1,391,763,000 + 5,120,000 = 1,396,883,000)
= 4,875,678,000

Average adjusted debt = (4,875,678,000 + 5,973,242,000) / 2 = 5,424,460,000

With this average debt, ratio = 5,424,460,000 / 1,120,524,000 = 4.84

This is quite different! But S&P typically uses latest or year-end for leverage ratios, not average, unless specified. For "Adjusted_Debt / Adjusted_EBITDA", they usually use latest debt and last 12 months EBITDA.

So I'll stick with year-end debt.

Final verification of calculation:
Adjusted Debt = 5,973,242,000
Adjusted EBITDA = 1,120,524,000
Ratio = 5.973242 / 1.120524 = 5.3313...

Rounded to two decimal places: 5.33

<answer>5.33</answer>