15 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 | Care | Segments total | Other* | Consolida- tion* | Group | ||||||||||
Jan. 1–June 30, 2023 | |||||||||||||||||||
Segment revenue | 1,606.4 | 619.8 | 141.4 | 414.2 | 143.9 | 2,925.7 | 1,020.7 | -729.2 | 3,217.2 | ||||||||||
thereof external revenue | 1,606.4 | 66.4 | 141.4 | 220.6 | 143.9 | 2,178.7 | 1,020.7 | 17.8 | 3,217.2 | ||||||||||
thereof internal revenue | 553.4 | 193.6 | 747.0 | -747.0 | |||||||||||||||
Carrying amount of assets sold** | -108.2 | -108.2 | -99.3 | ||||||||||||||||
Revaluation from disposal of assets held for sale | 11.1 | 11.1 | 6.9 | ||||||||||||||||
Expenses for maintenance | -207.0 | -2.6 | -209.6 | ||||||||||||||||
Cost of development to sell | -195.7 | -195.7 | |||||||||||||||||
Cost of development to hold*** | -179.4 | -179.4 | 179.4 | ||||||||||||||||
Operating expenses | -201.2 | -575.7 | -7.3 | -15.3 | -106.1 | -905.6 | -21.3 | 540.6 | |||||||||||
Ancillary costs | -909.1 | ||||||||||||||||||
Adjusted EBITDA Total | 1,198.2 | 44.1 | 37.0 | 23.8 | 35.2 | 1,338.3 | -2.1 | -9.2 | 1,327.0 | ||||||||||
Non-recurring items | -119.2 | ||||||||||||||||||
Period adjustments from assets held for sale | 2.4 | ||||||||||||||||||
Income from investments/ amortization in other real estate companies | 5.2 | ||||||||||||||||||
Net income from fair value adjustments of investment properties | -6,382.9 | ||||||||||||||||||
Depreciation and amortization (incl. depreciation on financial assets) | -371.4 | ||||||||||||||||||
Net income from investments accounted for using the equity method | -12.3 | ||||||||||||||||||
Income from other investments | -19.7 | ||||||||||||||||||
Interest income | 49.9 | ||||||||||||||||||
Interest expenses | -383.2 | ||||||||||||||||||
Other financial result | 35.5 | ||||||||||||||||||
EBT | -5,868.7 | ||||||||||||||||||
Income taxes | 1,738.3 | ||||||||||||||||||
Profit for the period | -4,130.4 | ||||||||||||||||||
- *The revenue for the Rental, Value-add, Recurring Sales, Development and Care 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.
- **Incl. cost of sold real estate inventories in the Recurring Sales segment.
- ***Excluding capitalized interest on borrowed capital of € 0.5 million.
Segment Reporting – Reporting Period Previous Year
in € million | Rental | Value-add | Recurring Sales | Develop- ment | Care | Segments total | Other* | Consolida- tion* | Group | ||||||||||
Jan. 1–June 30, 2022 | |||||||||||||||||||
Segment revenue | 1,570.5 | 637.4 | 295.2 | 462.0 | 136.9 | 3,102.0 | 3,225.9 | -663.1 | 5,664.8 | ||||||||||
thereof external revenue | 1,570.5 | 57.6 | 295.2 | 365.0 | 136.9 | 2,425.2 | 3,225.9 | 13.7 | 5,664.8 | ||||||||||
thereof internal revenue | 579.8 | 97.0 | 676.8 | -676.8 | |||||||||||||||
Carrying amount of assets sold** | -239.0 | -239.0 | -2,637.5 | ||||||||||||||||
Revaluation from disposal of assets held for sale | 35.3 | 35.3 | 40.9 | ||||||||||||||||
Expenses for maintenance | -215.1 | -2.9 | -218.0 | ||||||||||||||||
Cost of development to sell | -292.0 | -292.0 | |||||||||||||||||
Cost of development to hold*** | -68.2 | -68.2 | 68.2 | ||||||||||||||||
Operating expenses**** | -243.7 | -553.5 | -9.2 | -16.9 | -91.0 | -914.3 | 19.2 | 548.3 | |||||||||||
Ancillary costs | -618.7 | ||||||||||||||||||
Adjusted EBITDA Total**** | 1,111.7 | 83.9 | 82.3 | 84.9 | 43.0 | 1,405.8 | 29.8 | -46.6 | 1,389.0 | ||||||||||
Non-recurring items | -7.5 | ||||||||||||||||||
Period adjustments from assets held for sale | -37.9 | ||||||||||||||||||
Income from investments in other real estate companies | 5.0 | ||||||||||||||||||
Net income from fair value adjustments of investment properties | 3,115.9 | ||||||||||||||||||
Depreciation and amortization (incl. depreciation on financial assets) | -1,104.9 | ||||||||||||||||||
Net income from investments accounted for using the equity method | -334.6 | ||||||||||||||||||
Income from other investments | -16.7 | ||||||||||||||||||
Interest income | 35.8 | ||||||||||||||||||
Interest expenses | -152.5 | ||||||||||||||||||
Other financial result | -4.4 | ||||||||||||||||||
EBT | 2,887.2 | ||||||||||||||||||
Income taxes | -1,016.8 | ||||||||||||||||||
Profit for the period | 1,870.4 | ||||||||||||||||||
- *The revenue for the Rental, Value-add, Recurring Sales, Development and Care 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.
- **Incl. cost of sold real estate inventories in the Recurring Sales segment.
- ***Excluding capitalized interest on borrowed capital of € 0.0 million.
- ****Prior-year figures adjusted to new adjusted EBITDA definition (excluding results from at-equity investments), adjustments to Adjusted EBITDA Rental: € 4.3 million, Adjusted EBITDA Other: € -0.6 million.
In the 2023 reporting period, the non-recurring items eliminated in the Adjusted EBITDA Total came to € 119.2 million (H1 2022: € 7.5 million). The change is mainly attributable to positive non-recurring items in the previous year, as well as higher expenses for pre-retirement part-time work arrangements and one-off effects linked to the Südewo transaction in the 2023 reporting period.
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, 2022 | Jan. 1–June 30, 2023 | |||
Transactions* | -3.9 | 82.9 | |||
Personnel matters | 2.1 | 26.6 | |||
Business model optimization | 7.0 | 6.2 | |||
Research & development | 1.5 | 3.4 | |||
Refinancing and equity measures | 0.8 | 0.1 | |||
Total non-recurring items | 7.5 | 119.2 | |||
- *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 15.114 et seq./information as in annual financial statements for 2022) 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 | Care | Other | Total | ||||||||
Jan. 1–June 30, 2023 | |||||||||||||||
Revenue from ancillary costs (IFRS 15) | 850.7 | 850.7 | |||||||||||||
Income from the disposal of real estate inventories | 4.2 | 218.3 | 222.5 | ||||||||||||
Other revenue from contracts with customers | 17.5 | 65.8 | 0.4 | 143.8 | 227.5 | ||||||||||
Revenue from contracts with customers | 17.5 | 65.8 | 4.2 | 218.7 | 143.8 | 850.7 | 1,300.7 | ||||||||
thereof period-related | 97.8 | 97.8 | |||||||||||||
thereof time-related | 17.5 | 65.8 | 4.2 | 120.9 | 143.8 | 850.7 | 1,202.9 | ||||||||
Revenue from rental income (IFRS 16) | 1,606.4 | 0.5 | 2.3 | 0.1 | 1,609.3 | ||||||||||
Revenue from ancillary costs (IFRS 16)* | 69.0 | 69.0 | |||||||||||||
Other revenue | 1,606.4 | 0.5 | – | 2.3 | 0.1 | 69.0 | 1,678.3 | ||||||||
Revenue | 1,623.9 | 66.3 | 4.2 | 221.0 | 143.9 | 919.7 | 2,979.0 | ||||||||
Jan. 1–June 30, 2022* | |||||||||||||||
Revenue from ancillary costs (IFRS 15) | 464.2 | 464.2 | |||||||||||||
Income from the disposal of real estate inventories | 17.3 | 363.2 | 380.5 | ||||||||||||
Other revenue from contracts with customers | 13.3 | 57.0 | 0.4 | 136.8 | 207.5 | ||||||||||
Revenue from contracts with customers | 13.3 | 57.0 | 17.3 | 363.6 | 136.8 | 464.2 | 1,052.2 | ||||||||
thereof period-related | 234.8 | 234.8 | |||||||||||||
thereof time-related | 13.3 | 57.0 | 17.3 | 128.8 | 136.8 | 464.2 | 817.4 | ||||||||
Revenue from rental income (IFRS 16) | 1,570.5 | 0.6 | 1.8 | 0.1 | 1,573.0 | ||||||||||
Revenue from ancillary costs (IFRS 16)** | 134.5 | 134.5 | |||||||||||||
Other revenue | 1,570.5 | 0.6 | – | 1.8 | 0.1 | 134.5 | 1,707.5 | ||||||||
Revenue | 1,583.8 | 57.6 | 17.3 | 365.4 | 136.9 | 598.7 | 2,759.7 | ||||||||
- *Adjusted to the new segment structure.
- **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
Revenue | Assets | ||||||||
in € million | Jan. 1–June 30, 2022 | Jan. 1–June 30, 2023 | Dec. 31, 2022 | June 30, 2023 | |||||
Germany | 2,306.8 | 2,683.4 | 84,885.3 | 79,495.3 | |||||
Austria | 269.8 | 118.4 | 3,581.6 | 3,404.5 | |||||
Sweden | 181.4 | 174.9 | 7,098.5 | 6,368.2 | |||||
France | 0.0 | 0.0 | 95.7 | 0.0 | |||||
Other countries | 1.6 | 2.4 | 97.2 | 111.3 | |||||
Total | 2,759.6 | 2,979.1 | 95,758.3 | 89,379.3 | |||||