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2 Adjustment to Prior-year Figures

The conclusion of the purchase price allocation in connection with the acquisition of the Deutsche Wohnen Group (see [A4] Scope of Consolidation and Business Combinations) resulted in the adjustments set out below for December 31, 2021:

Balance Sheet

The tables below illustrate the changes as against the prior-year presentation in the balance sheet:

Adjustment to Prior-year Figures – Consolidated Balance Sheet – Assets

in € million

Dec. 31, 2021

Adjustment

Dec. 31, 2021 (adjusted)

Intangible assets

3,005.3

-282.4

2,722.9

Property, plant and equipment

654.1

654.1

Investment properties

94,100.1

94,100.1

Financial assets

1,016.7

1,016.7

Investments accounted for using the equity method

548.9

-123.6

425.3

Other assets

199.6

199.6

Deferred tax assets

19.8

19.8

Total non-current assets

99,544.5

-406.0

99,138.5

Inventories

16.4

16.4

Trade receivables

449.9

449.9

Financial assets

1,063.3

1,063.3

Other assets

220.9

220.9

Income tax receivables

201.9

201.9

Cash and cash equivalents

1,432.8

1,432.8

Real estate inventories

671.2

671.2

Assets held for sale

2,719.4

2,719.4

Total current assets

6,775.8

6,775.8

Total assets

106,320.3

-406.0

105,914.3

Adjustment to Prior-year Figures – Consolidated Balance Sheet – Equity and Liabilities

in € million

Dec. 31, 2021

Adjustment

Dec. 31, 2021 (adjusted)

Subscribed capital

776.6

776.6

Capital reserves

15,458.4

15,458.4

Retained earnings

16,925.9

-390.4

16,535.5

Other reserves

126.2

126.2

Total equity attributable to Vonovia shareholders

33,287.1

-390.4

32,896.7

Non-controlling interests

3,258.0

-15.6

3,242.4

Total equity

36,545.1

-406.0

36,139.1

Provisions

866.3

866.3

Trade payables

5.4

5.4

Non-derivative financial liabilities

40,171.9

40,171.9

Derivatives

66.2

66.2

Lease liabilities

634.9

634.9

Liabilities to non-controlling interests

224.5

224.5

Financial liabilities from tenant financing

44.9

44.9

Other liabilities

5.2

5.2

Deferred tax liabilities

18,693.9

18,693.9

Total non-current liabilities

60,713.2

60,713.2

Provisions

727.2

727.2

Trade payables

444.4

444.4

Non-derivative financial liabilities

6,857.1

6,857.1

Derivatives and put options

266.0

266.0

Lease liabilities

44.2

44.2

Liabilities to non-controlling interests

16.0

16.0

Financial liabilities from tenant financing

112.6

112.6

Other liabilities

228.8

228.8

Liabilities associated with assets classified as held for sale

365.7

365.7

Total current liabilities

9,062.0

9,062.0

Total liabilities

69,775.2

69,775.2

Total equity and liabilities

106,320.3

-406.0

105,914.3

The change in the item Investments accounted for using the equity method is due to the adjusted assessment of the measurement of the acquired joint ventures and associates. This reassessment of the information already known as of the date of consolidation results in a reduction in the provisional value recognized by € 123.6 million, with € 15.6 million attributable to non-controlling interests. By contrast, the goodwill resulting from the acquisition of the Deutsche Wohnen Group has increased by € 108.0 million.

The impairment test for goodwill as of December 31, 2021 was also recalculated. This took account not only of the adjusted goodwill for the Deutsche Wohnen Group in terms of amount, but also of the final allocation to the relevant cash-generating units. All in all, the final impairment loss to be recognized for the 2021 fiscal year is up by € 390.4 million.

Income Statement

The table below illustrates the changes as against the prior-year presentation in the income statement:

Adjustment to Prior-year Figures – Consolidated Income Statement

in € million

2021

Adjustment

2021 (adjusted)

Revenue from property letting

3,465.0

3,465.0

Other revenue from property management

158.9

158.9

Revenue from property management

3,623.9

3,623.9

Income from the disposal of properties

1,122.2

1,122.2

Carrying amount of properties sold

-1,044.6

-1,044.6

Revaluation of assets held for sale

87.4

87.4

Profit from the disposal of properties

165.0

165.0

Revenue from disposal of real estate inventories

519.6

519.6

Cost of sold real estate inventories

-381.7

-381.7

Profit from disposal of real estate inventories

137.9

137.9

Net income from fair value adjustments of investment properties

7,393.8

7,393.8

Capitalized internal expenses

662.6

662.6

Cost of materials

-1,671.1

-1,671.1

Personnel expenses

-682.3

-682.3

Depreciation and amortization

-3,482.2

-390.4

-3,872.6

Other operating income

276.9

276.9

Impairment losses on financial assets

-39.2

-39.2

Net income from the derecognition of financial assets measured at amortized cost

-2.5

-2.5

Other operating expenses

-388.9

-388.9

Net income from investments accounted for using the equity method

15.7

15.7

Interest income

21.5

21.5

Interest expenses

-411.6

-411.6

Other financial result

-137.1

-137.1

Earnings before tax

5,482.4

-390.4

5,092.0

Income taxes

-2,651.5

-2,651.5

Profit for the period

2,830.9

-390.4

2,440.5

Attributable to:

Vonovia’s shareholders

2,641.9

-390.4

2,251.5

Vonovia’s hybrid capital investors

38.4

38.4

Non-controlling interests

150.6

150.6

Earnings per share (diluted) in €

4.22

-0.63

3.59

Earnings per share (basic) in €

4.22

-0.63

3.59

Segment Report

In the 2022 fiscal year, Vonovia continued with the 2021 management system for the time being. Details can be found in the chapter Management System of the 2021 Annual Report. Vonovia’s business was managed via the five segments: Rental, Value-add, Recurring Sales, Development and Deutsche Wohnen.

In the course of the fourth quarter of 2022, the Deutsche Wohnen segment was dissolved and transferred to the Rental, Value-add, Recurring Sales, Development and Care segments. Details on the allocation of Deutsche Wohnen’s segment figures for 2021 to the five segments are presented below.

Details on the allocation of Deutsche Wohnen’s segment figures for 2021

2021

Adjustments

2021 (adjusted)

Allocation to the segments

in € million

Deutsche Wohnen

Removal of at-equity-investment from Adjusted EBITDA*

Lineshifts**

Segments total

Rental

Value-add

Recurring Sales

Develop- ment

Care

Jan. 1–Dec. 31, 2021

Segment revenue

307.7

36.6

344.3

206.9

10.5

14.2

43.9

68.8

thereof external revenue

302.2

-1.1

301.1

206.9

9.1

14.2

2.1

68.8

thereof internal revenue

5.5

37.7

43.2

1.4

41.8

Carrying amount of assets sold

-0.2

-11.6

-11.8

-11.8

Revaluation from disposal of assets held for sale

Expenses for maintenance

-41.7

-2.5

-44.2

-41.8

-2.4

Cost of development to sell

-14.5

11.6

-2.9

-2.9

Cost of development to hold

-41.8

-41.8

-41.8

Operating expenses

-80.5

-6.3

7.7

-79.1

-26.0

-5.4

-3.2

-1.6

-42.9

Adjusted EBITDA Total

170.8

-6.3

164.5

139.1

5.1

-0.8

-2.4

23.5

  1. * Adjusted to new adjusted EBITDA definition (excluding results from at-equity investments), due to Vonovia's minor control influence on the operating results of companies consolidated using the equity method.
  2. ** The amounts shown in this column are transactions that took place in the old segment structure within the Deutsche Wohnen segment and now represent transactions between the segments of the new segment structure.