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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
investment properties

-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
at amortized cost

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
the equity method

-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
other real estate companies/other

Net income from fair value adjustments of
investment properties

0.7

Depreciation and amortization

22.2

Net income from investments accounted for using
the equity method

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

  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.