I'll work through this step-by-step following S&P methodology for EDP, S.A.

## Step 1: Identify the Relevant Industry

EDP, S.A. is a Portuguese energy company engaged in generation, transmission, distribution, and supply of electricity and gas. It has both regulated utility operations (distribution/transmission networks) and unregulated operations (renewable generation, merchant power). Given its mixed profile, I'll treat it as a utility with both regulated and unregulated components. The methodology references for regulated utilities and unregulated power and gas both apply.

## Step 2: Estimate Adjusted EBITDA

Starting with the reported figures for 2022:

**Reconstructing EBITDA from the income statement:**
- Revenue: 20,650,764,000
- Cost of Energy Sales: (14,529,713,000)
- Net Revenue: 6,121,051,000
- Other Income: 927,450,000
- Services Expense: (1,103,668,000)
- Employee Benefits: (770,800,000)
- Other Expenses: (829,724,000)
- Impairment on receivables: (60,199,000)
- Joint Ventures & Associates: 239,429,000
- **EBITDA (before provisions):** 4,523,539,000

This matches "Profit Loss Before Provisions Amortisation And Impairment..." = 4,523,539,000

**S&P Adjustments:**

1. **Lease adjustment:** Right-of-use assets = 1,320,270,000. S&P adds back lease depreciation to EBITDA. From the cash flow statement, lease payments = 133,696,000. I'll approximate lease depreciation as similar to lease payments. The lease interest component needs to be added back too. Approximate lease interest ~40,000,000 (estimated at ~3% of average ROU). Total lease add-back to EBITDA ≈ 133,696,000 (already captured in operating expenses, so the EBITDA already reflects lease costs being expensed - under IFRS 16, D&A and interest replace the operating lease expense, so EBITDA already benefits). Under S&P methodology with IFRS 16, we need to reverse IFRS 16 and add back the full lease payment as an operating expense, then add back the imputed lease depreciation. Actually, S&P treats operating leases as debt. Under IFRS 16, EBITDA is already inflated because lease costs are below EBITDA. S&P's approach: no adjustment needed to EBITDA for leases under IFRS 16 since they already add the full lease liability to debt.

2. **Equity method JV income:** The 239,429,000 from JVs/associates is included. S&P may replace this with dividends received. Dividends received = 81,394,000. Adjustment: remove 239,429,000 and add 81,394,000 = -158,035,000.

3. **Provisions:** The provisions expense of 14,539,000 - typically S&P would add this back if non-cash. I'll leave it as is since it's relatively small.

4. **Pension adjustments:** S&P adjusts for pension. Current service cost should be in EBITDA (it already is through employee benefits). The adjustment relates to adding back any pension P&L charge and replacing with service cost only. Without detailed breakdown, I'll use the change in pension obligations. Net pension deficit: Current = 644,299,000 + 126,767,000 = 771,066,000 (2022); Prior = 940,266,000 + 179,534,000 = 1,119,800,000 (2021). The deficit decreased significantly, partly due to actuarial gains (277,479,000 + 8,065,000 pre-tax). I'll make a modest pension service cost adjustment but given complexity, I'll keep it simple.

**Adjusted EBITDA:**
= 4,523,539,000 - 158,035,000
= 4,365,504,000

## Step 3: Estimate FFO

**Cash Interest:**
From the cash flow statement:
- Interest and similar costs of financial debt: 716,454,000
- Interest on loans from NCI: 12,885,000
- Interest on loans from related parties: 111,000
- Total cash interest: 729,450,000

**Cash Taxes:**
From cash flow: Income Tax and CESE paid = 258,849,000

**FFO = Adjusted_EBITDA - cash_interest - cash_taxes**
= 4,365,504,000 - 729,450,000 - 258,849,000
= 3,377,205,000

## Step 4: Estimate Adjusted Debt

**Reported Debt:**
- Long-term borrowings: 15,782,604,000
- Current borrowings: 4,239,869,000
- Total reported debt: 20,022,473,000

**S&P Adjustments:**

1. **Lease liabilities:** ROU assets = 1,320,270,000. Lease liabilities ≈ 1,320,270,000 (proxy).

2. **Pension deficit:** 771,066,000 (net of current + non-current provisions for employee benefits)

3. **Institutional Partnerships (tax equity - debt-like):** 2,212,162,000 - These are essentially debt-like obligations in S&P's view.

4. **Other non-current financial liabilities:** 5,159,496,000 - These include derivatives and other items. Not all would be debt-like. I'll exclude most as derivative mark-to-market.

5. **Cash deduction:** Cash = 4,900,205,000. S&P typically allows partial netting. For utilities, I'll deduct a portion. Let's use ~75%: 3,675,154,000.

**Adjusted Debt:**
= 20,022,473,000 + 1,320,270,000 + 771,066,000 + 2,212,162,000 - 3,675,154,000
= 20,650,817,000

## Step 5: Calculate FFO/Adjusted Debt

FFO / Adjusted_Debt = 3,377,205,000 / 20,650,817,000 = 0.1635

<answer>0.1635</answer>