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 | |||||||||
- * 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.
- ** 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.