21 Segment Reporting

The business activities of BUWOG are currently being integrated into the Vonovia Group. For this reason, the revenue contribution from the BUWOG business is initially being assigned to the segment “Other” in the Interim Financial Report. Ultimately, the earnings contribution of BUWOG will be added as a line under Reconciliation of Profit for the Period and in total as EBITDA IFRS BUWOG. It is expected that, with the provisional conclusion of the integration of BUWOG, a new management system and thus a new structure for segment reporting will be presented within the reporting on the third quarter of 2018.

In order to ensure the reconciliation of revenue from the segments with the Group in the segment reporting, the entire revenue of BUWOG in all business areas is represented in the column “Other” and operating expenses are readjusted accordingly. This means that the reported exclusively represents the figures for Vonovia without BUWOG.

The following table shows the segment information for the reporting period:

in € million

 

Rental

 

Value-add Business

 

Sales

 

Other*

 

Group

 

 

 

 

 

 

 

 

 

 

 

Jan. 1–June 30, 2018

 

 

 

 

 

 

 

 

 

 

Segment income

 

838.8

 

610.4

 

354.2

 

-60.6

 

1,742.8

thereof external income

 

838.8

 

88.3

 

354.2

 

461.5

 

1,742.8

thereof internal income

 

 

 

522.1

 

 

 

-522.1

 

 

Carrying amount of assets sold

 

 

 

 

 

-321.2

 

 

 

 

Revaluation from disposal of assets held for sale

 

 

 

 

 

26.7

 

 

 

 

Expenses for maintenance

 

-131.6

 

 

 

 

 

 

 

 

Operating expenses

 

-110.2

 

-558.7

 

-11.4

 

44.5

 

 

Adjusted EBITDA

 

597.0

 

51.7

 

48.3

 

-16.1

 

680.9

 

 

 

 

 

 

 

 

 

 

 

Non-recurring items

 

 

 

 

 

 

 

 

 

-50.5

Period adjustments from assets held for sale

 

 

 

 

 

 

 

 

 

7.8

Income from investments in other real estate companies

 

 

 

 

 

 

 

 

 

13.9

EBITDA IFRS BUWOG**

 

 

 

 

 

 

 

 

 

40.7

EBITDA IFRS**

 

 

 

 

 

 

 

 

 

692.8

 

 

 

 

 

 

 

 

 

 

 

Net income from fair value adjustments of investment properties**

 

 

 

 

 

 

 

 

 

1,372.9

Depreciation and amortization**

 

 

 

 

 

 

 

 

 

-23.3

Income from other investments**

 

 

 

 

 

 

 

 

 

-21.4

Financial income**

 

 

 

 

 

 

 

 

 

26.6

Financial expenses**

 

 

 

 

 

 

 

 

 

-200.9

EBT**

 

 

 

 

 

 

 

 

 

1,846.7

 

 

 

 

 

 

 

 

 

 

 

Income taxes**

 

 

 

 

 

 

 

 

 

-646.7

Profit for the period**

 

 

 

 

 

 

 

 

 

1,200.0

in € million

 

Rental

 

Value-add Business

 

Sales

 

Other*

 

Group

*

The income for the segments Rental, Value-add Business and Sales constitutes income that is regularly reported to the Management Board as the chief operating decision-maker. The income in the column “Other” results from the onward charging of ancillary costs and consolidation effects. These are not part of the regular reporting to the Management Board and have thus been presented in the “Other” column.

**

All key figures only for Vonovia Group without BUWOG and Victoria Park except key figures including BUWOG marked with **. Reporting of the overall revenue of BUWOG under “Other,” adjustment of operating expenses in “Other” in the same amount to have no effect on adjusted EBITDA.

 

 

 

 

 

 

 

 

 

 

 

Jan. 1–June 30, 2018

 

 

 

 

 

 

 

 

 

 

Segment income

 

838.8

 

610.4

 

354.2

 

-60.6

 

1,742.8

thereof in Germany

 

827.0

 

610.4

 

323.4

 

-155.1

 

1,605.7

thereof in Austria

 

10.7

 

 

 

5.4

 

94.4

 

110.5

thereof in other countries

 

1.1

 

 

 

25.4

 

0.1

 

26.6

in € million

 

Rental

 

Value-add Business

 

Sales

 

Other*

 

Group

 

 

 

 

 

 

 

 

 

 

 

Jan. 1–June 30, 2017

 

 

 

 

 

 

 

 

 

 

Segment income

 

833.2

 

483.8

 

701.9

 

-124.6

 

1,894.3

thereof external income

 

833.2

 

80.1

 

701.9

 

279.1

 

1,894.3

thereof internal income

 

 

 

403.7

 

 

 

-403.7

 

 

Carrying amount of assets sold

 

 

 

 

 

-664.9

 

 

 

 

Revaluation from disposal of assets held for sale

 

 

 

 

 

20.1

 

 

 

 

Expenses for maintenance

 

-127.3

 

 

 

 

 

 

 

 

Operating expenses

 

-132.4

 

-438.2

 

-12.8

 

113.1

 

 

Adjusted EBITDA

 

573.5

 

45.6

 

44.3

 

-11.5

 

651.9

 

 

 

 

 

 

 

 

 

 

 

Non-recurring items

 

 

 

 

 

 

 

 

 

-46.3

Period adjustments from assets held for sale

 

 

 

 

 

 

 

 

 

32.9

Income from investments in other real estate companies

 

 

 

 

 

 

 

 

 

12.9

EBITDA IFRS

 

 

 

 

 

 

 

 

 

651.4

 

 

 

 

 

 

 

 

 

 

 

Net income from fair value adjustments of investment properties

 

 

 

 

 

 

 

 

 

1,164.7

Depreciation and amortization

 

 

 

 

 

 

 

 

 

-14.9

Income from other investments

 

 

 

 

 

 

 

 

 

-19.4

Financial income

 

 

 

 

 

 

 

 

 

43.7

Financial expenses

 

 

 

 

 

 

 

 

 

-172.9

EBT

 

 

 

 

 

 

 

 

 

1,652.6

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

 

 

 

 

 

 

 

-588.0

Profit for the period

 

 

 

 

 

 

 

 

 

1,064.6

in € million

 

Rental

 

Value-add Business

 

Sales

 

Other*

 

Group

*

The income for the segments Rental, Value-add Business and Sales constitutes income that is regularly reported to the Management Board as the chief operating decision-maker. The income in the column “Other” results from the onward charging of ancillary costs as well as consolidation effects. These are not part of the regular reporting to the Management Board and have thus been presented in the “Other” column.

 

 

 

 

 

 

 

 

 

 

 

Jan. 1–June 30, 2017

 

 

 

 

 

 

 

 

 

 

Segment income

 

833.2

 

483.8

 

701.9

 

-124.6

 

1,894.3

thereof in Germany

 

809.4

 

483.8

 

462.8

 

-132.4

 

1,623.6

thereof in Austria

 

22.7

 

 

 

238.6

 

7.7

 

269.0

thereof in other countries

 

1.1

 

 

 

0.5

 

0.1

 

1.7

The following table gives a detailed list of the non-recurring items for the reporting period:

in € million

 

Jan. 1–June 30, 2017

 

Jan. 1–June 30, 2018

*

Including takeover costs and one-time expenses in connection with acquisitions, such as HR measures relating to the integration process.

**

Vonovia Group original non-recurring items from BUWOG and Victoria Park. Includes acquisition and integration costs for BUWOG and Victoria Park that accrue to the Vonovia Group without BUWOG and Victoria Park.

 

 

 

 

 

Business model optimisation/development of new fields of business

 

9.4

 

7.7

Acquisition costs incl. integration costs*

 

28.9

 

29.7

Refinancing and equity measures

 

0.9

 

-0.2

Severance payments/pre-retirement part-time work arrangements

 

7.1

 

13.3

Total Non-Recurring Items**

 

46.3

 

50.5

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
Adjusted EBITDA is the result before interest, taxes, depreciation and amortization (including income from other operational investments) adjusted for effects that do not relate to the period, recur irregularly or that are atypical for business operation, and for net income from fair value adjustments to investment properties. These non-recurring items include the development of new fields of business and business processes, acquisition projects, expenses for refinancing and equity increases (where not treated as capital procurement costs), IPO preparation costs and expenses for pre-retirement part-time work arrangements and severance payments.