4 Adjustment to Prior-year Figures
Disclosure of the Care Segment
As part of a strategic review of the Care segment, the management decided to discontinue these business activities and sell off this segment in the 2023 fiscal year. Endeavors to sell the Care segment have begun and it is expected to have been sold before December 2024.
The criteria for presentation as a disposal group held for sale are met. At the same time, the criteria for definition as a discontinued operation are also met. Accordingly, the majority of the segment is presented separately in the balance sheet as a disposal group held for sale/discontinued operation, and the results from the discontinued operation are shown separately in the income statement. Pursuant to IFRS 5, retrospective adjustments were made to presentation in the income statement; IFRS 5 does not provide for the restatement of the prior-year figures in the balance sheet.
The share of revenue from nursing care properties that are not part of the disposal group was reclassified from “Other revenue from property management” to “Revenue from property letting,” since these properties will make a longer-term contribution to revenue in the Rental segment by being let to third parties. The other adjustments represent the profit share attributable to the disposal group to be hived off.
Intra-Group transactions were eliminated from the consolidated financial results in full. The eliminations were allocated to continuing operations and discontinued operations so as to take account of the decision not to continue these transactions after the disposal, as the Management Board considers this type of presentation to be useful.
For this purpose, Vonovia has eliminated the revenue, and the associated expenses, resulting from transactions with continuing operations generated prior to the reclassification in the result from continuing operations, since no services will be exchanged between the continuing operations and the discontinued operation after the sale.
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 | Jan. 1–Jun. 30, 2023 | Adjustment | Jan. 1–Jun. 30, 2023 (adjusted) | Apr. 1–Jun. 30, 2023 | Adjustment | Apr. 1–Jun. 30, 2023 (adjusted) | |||||||
Revenue from property letting | 2,529.0 | 11.9 | 2,540.9 | 1,270.0 | 5.8 | 1,275.8 | |||||||
Other revenue from property management | 227.6 | -143.9 | 83.7 | 109.2 | -73.3 | 35.9 | |||||||
Revenue from property management | 2,756.6 | -132.0 | 2,624.6 | 1,379.2 | -67.5 | 1,311.7 | |||||||
Income from disposal of properties | 238.1 | 238.1 | 125.8 | 125.8 | |||||||||
Carrying amount of properties sold | -204.1 | -204.1 | -112.0 | -112.0 | |||||||||
Revaluation of assets held for sale | 20.4 | 20.4 | 13.2 | 13.2 | |||||||||
Profit from the disposal of properties | 54.4 | – | 54.4 | 27.0 | – | 27.0 | |||||||
Revenue from disposal of real estate inventories | 222.5 | 222.5 | 188.8 | 188.8 | |||||||||
Cost of sold real estate inventories | -199.0 | -199.0 | -171.3 | -171.3 | |||||||||
Profit from disposal of real estate inventories | 23.5 | – | 23.5 | 17.5 | – | 17.5 | |||||||
Net income from fair value adjustments of | -6,382.9 | 0.7 | -6,382.2 | -2,770.7 | 0.7 | -2,770.0 | |||||||
Capitalized internal expenses | 225.7 | 225.7 | 110.3 | 110.3 | |||||||||
Cost of materials | -1,262.9 | 27.8 | -1,235.1 | -602.7 | 14.8 | -587.9 | |||||||
Personnel expenses | -465.5 | 80.7 | -384.8 | -227.5 | 40.1 | -187.4 | |||||||
Depreciation and amortization | -349.8 | 22.0 | -327.8 | -319.9 | 19.0 | -300.9 | |||||||
Other operating income | 106.3 | -11.5 | 94.8 | 55.2 | -3.2 | 52.0 | |||||||
Impairment losses on financial assets | -6.5 | 0.0 | -6.5 | -3.6 | -3.6 | ||||||||
Net income from the derecognition of financial assets measured | 0.6 | -0.1 | 0.5 | -0.6 | -0.6 | ||||||||
Other operating expenses | -258.1 | 10.7 | -247.4 | -176.5 | 4.7 | -171.8 | |||||||
Net income from investments accounted for using | -12.3 | -12.3 | -12.2 | -12.2 | |||||||||
Interest income | 49.9 | 49.9 | 16.6 | -0.1 | 16.5 | ||||||||
Interest expenses | -383.2 | 0.6 | -382.6 | -187.3 | 0.3 | -187.0 | |||||||
Other financial result | 35.5 | 35.5 | 10.5 | 10.5 | |||||||||
Earnings before tax | -5,868.7 | -1.1 | -5,869.8 | -2,684.7 | 8.8 | -2,675.9 | |||||||
Income taxes | 1,738.3 | -2.0 | 1,736.3 | 642.4 | -4.2 | 638.2 | |||||||
Profit for the period from continuing operations | -4,130.4 | -3.1 | -4,133.5 | -2,042.3 | 4.6 | -2,037.7 | |||||||
Profit for the period from discontinued operations | 3.1 | 3.1 | -4.6 | -4.6 | |||||||||
Profit for the period | -4,130.4 | -4,130.4 | -2,042.3 | -2,042.3 | |||||||||
Attributable to: | |||||||||||||
Vonovia’s shareholders | -3,918.0 | -3,918.0 | -1,955.9 | -1,955.9 | |||||||||
Non-controlling interests | -212.4 | -212.4 | -86.4 | -86.4 | |||||||||
Earnings per share (diluted) in € | -4.81 | -4.81 | -2.34 | -2.34 | |||||||||
Earnings per share (basic) in € | -4.81 | -4.81 | -2.34 | -2.34 | |||||||||
Segment Report
As part of a strategic review of the Care segment at the end of the 2023 fiscal year, the management decided to discontinue these business activities and sell off this segment. Endeavors to sell the Care segment have now begun and it is expected to have been sold before December 2024. A small part of the segment, with a fiscal year volume of € 24.0 million in segment revenue, was transferred to the Rental segment in 2023. Specifically, this relates to rental income for 25 properties operated by third parties. The previous year’s figures were adjusted accordingly:
Adjustment to segment figures
in € million | Rental | Value-add | Recurring Sales | Develop- ment | Care | Segments total | Other* | Consolida- tion* | Group | ||||||||||
Jan. 1–Jun. 30, 2023 Changes | |||||||||||||||||||
Segment revenue | 12.2 | -193.6 | -143.9 | -325.3 | -0.3 | 193.6 | -132.0 | ||||||||||||
thereof external revenue | 12.2 | – | -143.9 | -131.7 | -0.4 | -132.0 | |||||||||||||
thereof internal revenue | -193.6 | -193.6 | 193.6 | ||||||||||||||||
Carrying amount of assets sold | – | ||||||||||||||||||
Revaluation from disposal of assets held for sale | |||||||||||||||||||
Expenses for maintenance | 0.1 | 2.6 | 2.7 | ||||||||||||||||
Cost of development to sell | |||||||||||||||||||
Cost of development to hold | 179.4 | 179.4 | -179.4 | ||||||||||||||||
Operating expenses | -1.5 | 0.1 | 106.1 | 104.7 | -15.0 | – | |||||||||||||
Ancillary costs | 15.1 | ||||||||||||||||||
Adjusted EBITDA Total | 10.8 | -14.1 | -35.2 | -38.5 | -0.3 | 14.2 | -24.6 | ||||||||||||
Non-recurring items | – | ||||||||||||||||||
Period adjustments from assets held for sale | – | ||||||||||||||||||
Income from investments/amortization in | – | ||||||||||||||||||
Net income from fair value adjustments of | 0.7 | ||||||||||||||||||
Depreciation and amortization | 22.2 | ||||||||||||||||||
Net income from investments accounted for using | – | ||||||||||||||||||
Income from other investments | – | ||||||||||||||||||
Interest income | – | ||||||||||||||||||
Interest expenses | 0.6 | ||||||||||||||||||
Other financial result | – | ||||||||||||||||||
EBT | -1.1 | ||||||||||||||||||
Income taxes | -2.0 | ||||||||||||||||||
Profit from continuing operations | -3.1 | ||||||||||||||||||
Profit from discontinued operations | 3.1 | ||||||||||||||||||
Profit for the period | – | ||||||||||||||||||
- *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.