13 Segment Reporting
The following table shows the segment information for the reporting period:
Segment Reporting – Reporting period
in € million | Rental | Value-add | Recurring Sales | Develop- ment | Deutsche Wohnen | Segments total | Other* | Consolida- tion* | Group | ||||||||||
Jan. 1–June 30, 2022 | |||||||||||||||||||
Segment revenue | 1,188.7 | 618.6 | 268.6 | 456.9 | 578.2 | 3,111.0 | 3,225.8 | -672.0 | 5,664.8 | ||||||||||
thereof external revenue | 1,188.7 | 42.2 | 268.6 | 359.8 | 566.0 | 2,425.3 | 3,225.8 | 13.7 | 5,664.8 | ||||||||||
thereof internal revenue | 576.4 | 97.1 | 12.2 | 685.7 | – | -685.7 | |||||||||||||
Carrying amount of assets sold | -233.0 | -3.6 | -236.6 | -2,626.6 | |||||||||||||||
Revaluation from disposal of assets held for sale | 46.1 | 46.1 | 30.1 | ||||||||||||||||
Expenses for maintenance | -166.8 | -51.3 | -218.1 | ||||||||||||||||
Cost of development to sell | -287.1 | -18.2 | -305.3 | ||||||||||||||||
Cost of development to hold** | -68.2 | -68.2 | 68.2 | ||||||||||||||||
Operating expenses | -199.3 | -540.1 | -7.6 | -16.2 | -163.7 | -926.9 | 15.0 | 561.3 | |||||||||||
Ancillary costs | -618.7 | ||||||||||||||||||
Adjusted EBITDA Total | 822.6 | 78.5 | 74.1 | 85.4 | 341.4 | 1,402.0 | 25.6 | -42.5 | 1,385.1 | ||||||||||
Non-recurring items | -7.5 | ||||||||||||||||||
Period adjustments from assets held for sale | -37.9 | ||||||||||||||||||
Income from investments/ amortization in other real estate companies | 5.0 | ||||||||||||||||||
Net income from fair value adjustments of investment properties | 3,115.9 | ||||||||||||||||||
Depreciation and amortization | -1,268.4 | ||||||||||||||||||
Impairments on financial assets accounted for using the equity method | -281.4 | ||||||||||||||||||
Income from other investments | -16.7 | ||||||||||||||||||
Interest income | 35.8 | ||||||||||||||||||
Interest expenses | -152.5 | ||||||||||||||||||
Other financial result | -4.4 | ||||||||||||||||||
EBT | 2,773.0 | ||||||||||||||||||
Income taxes | -976.6 | ||||||||||||||||||
Profit for the period | 1,796.4 | ||||||||||||||||||
- * The revenue for the Rental, Value-add, Recurring Sales, Development and Deutsche Wohnen segments constitutes income that is regularly reported to the Management Board as the chief operating decision-maker and that reflects Vonovia’s sustainable business. The revenue/costs in the “Other” and “Consolidation” columns are not part of the Management Board’s segment management.
- ** Excluding capitalized interest on borrowed capital of € 0.0 million.
Segment Reporting – Reporting period 2021
in € million | Rental | Value-add | Recurring Sales | Develop- ment | Deutsche Wohnen | Segments total | Other* | Consolida- tion* | Group | ||||||||||
Jan. 1–June 30, 2021 | |||||||||||||||||||
Segment revenue | 1,170.5 | 557.4 | 327.8 | 256.6 | – | 2,312.3 | 427.4 | -583.3 | 2,156.4 | ||||||||||
thereof external revenue | 1,170.5 | 27.9 | 327.8 | 192.2 | – | 1,718.4 | 427.4 | 10.6 | 2,156.4 | ||||||||||
thereof internal revenue | 529.5 | 64.4 | – | 593.9 | – | -593.9 | |||||||||||||
Carrying amount of assets sold | -285.4 | – | -285.4 | -25.4 | |||||||||||||||
Revaluation from disposal of assets held for sale | 49.0 | 49.0 | 4.3 | ||||||||||||||||
Expenses for maintenance | -163.4 | – | -163.4 | ||||||||||||||||
Cost of development to sell | -160.2 | – | -160.2 | ||||||||||||||||
Cost of development to hold** | -45.5 | -45.5 | 45.5 | ||||||||||||||||
Operating expenses | -183.3 | -478.2 | -7.9 | -15.6 | – | -685.0 | -11.7 | 503.0 | |||||||||||
Ancillary costs | -388.0 | ||||||||||||||||||
Adjusted EBITDA Total | 823.8 | 79.2 | 83.5 | 35.3 | – | 1,021.8 | 6.6 | -34.8 | 993.6 | ||||||||||
Non-recurring items | -91.7 | ||||||||||||||||||
Period adjustments from assets held for sale | -21.9 | ||||||||||||||||||
Income from investments in other real estate companies | 13.6 | ||||||||||||||||||
Net income from fair value adjustments of investment properties | 3,698.6 | ||||||||||||||||||
Depreciation and amortization | -234.3 | ||||||||||||||||||
Income from other investments | -24.1 | ||||||||||||||||||
Interest income | 3.9 | ||||||||||||||||||
Interest expenses | -179.8 | ||||||||||||||||||
Other financial result | -66.6 | ||||||||||||||||||
EBT | 4,091.3 | ||||||||||||||||||
Income taxes | -1,411.2 | ||||||||||||||||||
Profit for the period | 2,680.1 | ||||||||||||||||||
- * The revenue for the Rental, Value-add, Recurring Sales and Development segments constitutes income that is regularly reported to the Management Board as the chief operating decision-maker and that reflects Vonovia’s sustainable business. The revenue/costs in the “Other” and “Consolidation” columns are not part of the Management Board’s segment management.
- ** Excluding capitalized interest on borrowed capital of € 0.0 million (H1 2021 € 0.0 million).
The year-on-year increase in segment revenue in the “Other” column is primarily due to the sale of portfolios as part of the Berlin Deal.
The creation of the new subportfolio for less profitable strategic holdings also changes the segment definitions in the segment reporting pursuant to IFRS 8. In the future, in addition to the regular and sustainable disposals of individual condominiums and single-family houses, the Recurring Sales segment can also include sales of multifamily residences outside of urban neighborhoods with a low gross yield. Other sales of entire buildings or land will still be reported as Non-core Disposals. The new subportfolio does not result in any changes to the segment allocation of previous sales.
In the 2022 reporting period, the non-recurring items eliminated in the Adjusted EBITDA Total came to € 7.5 million compared to € 91.7 million in the first half of 2021. This was largely due to special effects resulting from the debt recovery action in connection with the loan granted to the Adler Group.
The following table gives a detailed list of the non-recurring items:
Non-recurring items for the reporting period
in € million | Jan. 1– June 30, 2021 | Jan. 1– June 30, 2022 | |||
Transactions* | 89.2 | -3.9 | |||
Personnel matters | -0.5 | 2.1 | |||
Business model optimization | 3.7 | 7.0 | |||
Research & development | 2.2 | 1.5 | |||
Refinancing and equity measures | -2.9 | 0.8 | |||
Total non-recurring items | 91.7 | 7.5 | |||
- * Including one-time expenses in connection with acquisitions, such as HR measures relating to the integration process and other follow-up costs.
The breakdown of non-Group revenue from contracts with customers (pursuant to IFRS 15.114f.) and its allocation to the segments referred to above is as follows:
Breakdown of non-Group revenue from contracts with customers (pursuant to IFRS 15.114f)
in € million | Rental | Value-add | Recurring Sales | Development | Deutsche Wohnen | Other | Consolidation | Total | |||||||||
Jan. 1–June 30, 2022 | |||||||||||||||||
Revenue from ancillary costs (IFRS 15) | – | – | – | – | – | 134.6 | – | 134.6 | |||||||||
Income from the disposal of investment properties | – | – | 99.7 | – | – | 3.6 | – | 103.3 | |||||||||
Income from the disposal of real estate inventories | – | – | – | 358.4 | 22.1 | – | – | 380.5 | |||||||||
Other revenue from contracts with customers | – | 41.6 | – | – | 152.2 | – | 13.7 | 207.5 | |||||||||
Revenue from contracts with customers | – | 41.6 | 99.7 | 358.4 | 174.3 | 138.2 | 13.7 | 825.9 | |||||||||
thereof period-related | – | – | – | 230.0 | 4.8 | – | 234.8 | ||||||||||
thereof time-related | – | 41.6 | 99.7 | 128.4 | 169.5 | 138.2 | 13.7 | 591.1 | |||||||||
Revenue from rental income (IFRS 16) | 1,188.7 | 0.6 | – | 1.4 | 382.3 | – | – | 1,573.0 | |||||||||
Revenue from ancillary costs (IFRS 16)* | – | – | – | – | – | 464.2 | – | 464.2 | |||||||||
Income from sale of assets held for sale (IFRS 5) | – | – | 168.9 | – | 9.4 | 2,623.4 | – | 2,801.7 | |||||||||
Other revenue | 1,188.7 | 0.6 | 168.9 | 1.4 | 391.7 | 3,087.6 | – | 4,838.9 | |||||||||
Revenue | 1,188.7 | 42.2 | 268.6 | 359.8 | 566.0 | 3,225.8 | 13.7 | 5,664.8 | |||||||||
Jan. 1–June 30, 2021 | 2,623.4 | ||||||||||||||||
Revenue from ancillary costs (IFRS 15) | – | – | – | – | – | 299.3 | – | 299.3 | |||||||||
Income from the disposal of investment properties | – | – | 130.0 | – | – | 16.5 | – | 146.5 | |||||||||
Income from the disposal of real estate inventories | – | – | – | 191.7 | – | – | – | 191.7 | |||||||||
Other revenue from contracts with customers | – | 27.3 | – | – | – | – | 10.6 | 37.9 | |||||||||
Revenue from contracts with customers | – | 27.3 | 130.0 | 191.7 | – | 315.8 | 10.6 | 675.4 | |||||||||
thereof period-related | – | – | – | 187.0 | – | – | – | 187.0 | |||||||||
thereof time-related | – | 27.3 | 130.0 | 4.7 | – | 315.8 | 10.6 | 488.4 | |||||||||
Revenue from rental income (IFRS 16) | 1,170.5 | 0.6 | – | 0.5 | – | 0.1 | – | 1,171.7 | |||||||||
Revenue from ancillary costs (IFRS 16)* | – | – | – | – | – | 98.9 | – | 98.9 | |||||||||
Income from sale of assets held for sale (IFRS 5) | – | – | 197.8 | – | – | 12.6 | – | 210.4 | |||||||||
Other revenue | 1,170.5 | 0.6 | 197.8 | 0.5 | – | 111.6 | – | 1,481.0 | |||||||||
Revenue | 1,170.5 | 27.9 | 327.8 | 192.2 | 0.0 | 427.4 | 10.6 | 2,156.4 | |||||||||
- * Includes land tax and buildings insurance.
External income and non-current assets, excluding financial instruments, deferred taxes, post-employment benefits and rights under insurance contracts, are distributed among Vonovia’s country of origin and other countries as follows. The revenue and the assets are allocated based on the registered office of the unit providing the service.
External income and non-current assets
External income | Assets | ||||||||
in € million | Jan. 1– June 3, 2021 | Jan. 1– June 30, 2022 | Dec. 31, 2021 | June 30, 2022 | |||||
Germany | 1,739.9 | 5,133.4 | 87,506.6 | 89,571.3 | |||||
Austria | 236.3 | 348.2 | 3,382.7 | 3,504.0 | |||||
Sweden | 180.1 | 181.6 | 7,588.9 | 7,555.2 | |||||
France | 0.0 | 0.0 | 109.7 | 93.8 | |||||
Other countries | 0.1 | 1.6 | 387.9 | 189.7 | |||||
Total | 2,156.4 | 5,664.8 | 98,975.8 | 100,914.0 | |||||