The management system has a modular structure and makes a distinction between performance indicators at Group level (most meaningful performance indicators within the meaning of DRS 20) and those at segment level.
We make a distinction between financial and non-financial performance indicators.
We have an integrated Group-wide planning and controlling system in place that is based on central performance indicators. Based on the medium-term plans derived from our strategy, which are subject to an annual review and are updated during the year in the event of significant transactions, we prepare a budget for all areas of the Group. In the course of the fiscal year, current business developments are compared with these targets and the current forecasts on a regular basis for all key figures that are relevant to control. The business is then steered accordingly in a targeted manner, with any necessary countermeasures being initiated and tracked.
At Group level, Group FFO, the Adjusted EBITDA Total, the Adjusted NAV per share and the CSI are our most meaningful performance indicators.
In light of the increasingly dynamic development in social megatrends and the increasing importance of sustainable economic management and a sustainable business model, the management reviewed Vonovia’s strategy, which it has been pursuing successfully since the IPO, as part of the annual strategy process. The existing strategy was supplemented in a targeted manner to include Environment, Social and Governance (ESG) aspects. As a result, these aspects will also be included in the management system in the future. Details on the new strategic alignment are set out in the chapter Fundamental Information About the Group.
The new corporate strategy, focusing on sustainability, has been expanded to include a sustainability indicator with the implementation of a Sustainability Performance Index (non-financial key figure for Environment, Social, Governance). The components of the Sustainability Performance Index are described in the chapter entitled “Non-Financial Performance Indicators.”
The previous performance indicator Adjusted NAV per share is being replaced by the EPRA NTA per share. The EPRA NRV and EPRA NDV are also calculated and published for information purposes.
This means that, as of 2021, our most meaningful performance indicators at Group level are the Group FFO, the Adjusted EBITDA Total, the EPRA NTA per share and the Sustainability Performance Index (SPI).
At the segment level, we look at the segment revenues, in addition to Adjusted EBITDA, in order to measure not only rental income in the Rental segment but also performance in the Value-add, Development and Recurring Sales segments. The segment revenue generated by all of the segments make up the Total Segment Revenue. Its development over time serves as an additional growth indicator for Vonovia.
Our new management system includes the following key figures: