AEVIS VICTORIA SA – Publication of the half-year report 2023

Ad hoc announcement pursuant to Art. 53 LR

Fribourg, 14 September 2023

AEVIS VICTORIA SA (AEVS:SW) – Publication of the half-year report 2023

The two main operating segments performed well, with an organic growth of 4.1% for Swiss Medical Network and 7.4% for the hospitality segment. Consolidated revenues are down due to the deconsolidation of Réseau de l’Arc and the absence of portfolio activities. After the end of the reporting period, AEVIS's equity ratio strengthened to 35.5%, following the entry of Visana Beteiligungen AG into the shareholding of Swiss Medical Network in July 2023.

AEVIS VICTORIA SA (AEVIS) achieved revenues of CHF 488.3 million (1H2022: CHF 584.2 million). This decline materialised because of the deconsolidation of Réseau de l'Arc (formerly Hôpital du Jura Bernois SA) and the absence of portfolio activities during the first half of 2023. Operationally, the business developed well during the first half year as expected, which is highlighted by an organic growth of 4.7%. The lower revenues in combination with noticeable inflationary effects on various levels compared led to a slightly negative net result of CHF 10.2 million.

Strategically, a significant step was taken early July 2023, with Visana Beteiligungen AG becoming a new shareholder of Swiss Medical Network in the context of a CHF 150 million capital increase. This investment will be used to accelerate the development of integrated care structures in Switzerland, in addition to the Réseau de l’Arc region.  On the AEVIS level, the transaction led to a reduction in net debt of CHF 150 million, and the equity ratio enhanced to a solid 35.5% as of August 2023.

Swiss Medical Network obtained 4.1% organic growth

Swiss Medical Network SA achieved revenues of CHF 394.6 million (1H2022: CHF 378.3 million, Réseau de l’Arc excluded). On a like-for-like basis, organic growth was 4.1%. Réseau de l’Arc SA, a now 35.1% participation of Swiss Medical Network, was deconsolidated as of 31.12.2022 following the entry in the share capital of Visana Beteiligungen AG. The deconsolidation of Réseau de l’Arc has also eliminated the dilutive effect on profitability of this hospital and the operating margin at EBITDAR level increased to 19.3% (1H2022: 16.8%).

Growth in the Hospitality segment continued

Activity was advancing in almost all hotels and the good figures of 2022 were even exceeded. Consolidated revenues are up by 10.1% to CHF 88.3 million (1H2022: CHF 80.2 million), driven by an organic growth of 7.4%. EBITDAR amounted to CHF 20.0 million (22.6%). In total, 73’656 overnight stays were recorded in the 1’030 available rooms, with an average room rate of CHF 687, in-line with the same period last year. Victoria-Jungfrau AG, the operating company of the hotels, will soon be renamed into MRH Switzerland AG.

Consolidated real estate portfolio valued at CHF 771.4 million

The value of the consolidated hotel properties amounted to CHF 771.4 million at 30 June 2023. Infracore’s healthcare portfolio (direct and indirect 30% stake, not consolidated), mainly consisting of the various hospitals of Swiss Medical Network, was further strengthened with investments in various hospitals.

Outlook

Operationally, AEVIS expects a further positive development in its healthcare, hospitality and real estate activities. Swiss Medical Network will continue to create integrated care structures and strengthen its primary care network through the acquisition or development of medical centers and home care organizations, aiming to create two to three additional integrated care regions similar to Réseau de l’Arc. Due to the diversity and the evolution of its portfolio of participations, the Group is refraining from issuing consolidated revenue or margin targets for the financial year 2023.

The dividend policy will continue in line with the Group's investment activity and the realisation of further capital gains on the current investments portfolio.

Detailed reporting

AEVIS VICTORIA SA’s Half-Year Report 2023 can be downloaded via this link:
https://www.aevis.com/_media/2023/09/aevis_hy_2023.pdf

For further information:

AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey, prb@dynamicsgroup.ch, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren, svanderschueren@aevis.com, +41 (0) 79 635 04 10

AEVIS VICTORIA SA - Investing for a better life

AEVIS VICTORIA SA invests in healthcare, hospitality & lifestyle and infrastructure. AEVIS′s main shareholdings are Swiss Medical Network SA (80%, directly and indirectly), the only Swiss private network of hospitals present in the country's three main language regions, MRH Switzerland AG (ex-Victoria-Jungfrau AG), a luxury hotel group managing eleven luxury hotels in Switzerland and abroad, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, Swiss Hotel Properties SA, a hospitality real estate division, and NESCENS SA, a brand dedicated to better aging. AEVIS is listed on the Swiss Reporting Standard of the SIX Swiss Exchange (AEVS.SW). www.aevis.com.