15.09.2017 – 07:18

AEVIS VICTORIA SA

EQS-Adhoc: AEVIS VICTORIA SA: Net profit up by 168% to CHF 12.2 million in first six months of 2017

EQS Group-Ad-hoc: AEVIS VICTORIA SA / Key word(s): Half Year Results
AEVIS VICTORIA SA: Net profit up by 168% to CHF 12.2 million in first six months
of 2017

15-Sep-2017 / 07:10 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press release

Fribourg, 15 September 2017

AEVIS VICTORIA - Net profit up by 168% to CHF 12.2 million in first six months
of 2017

AEVIS VICTORIA SA (AEVIS VICTORIA) today published its Half-Year Report 2017.
The revenues of AEVIS VICTORIA are earned through the operational activities of
its consolidated subsidiaries and through dividends and capital gains of
non-consolidated minority participations. In the first half of 2017, revenues
from operations increased by 14.7% from CHF 293.5 million to CHF 336.6 million,
due to the integration of Clinique Générale-Beaulieu in Geneva into Swiss
Medical Network in late 2016. On the group level, EBITDA amounted to CHF 42.9
million, up slightly compared to 2016 (CHF 42.2 million). During the reporting
period, AEVIS VICTORIA proceeded with two divestments, which resulted in a
financial gain on investments of CHF 11.7 million. The 11.9% stake in LifeWatch
AG was sold to Biotelemetry and a minority shareholding in Linde Holding
Biel/Bienne AG was sold to the Hirslanden Group. A net profit of CHF 12.2
million was achieved for the period, in comparison to a net profit of CHF 4.5
million in the first half of 2016. The surge in profitability is expected to be
sustained and will allow the company to propose an increased distribution to its
shareholders at next year's Annual Ordinary General Meeting.

Hospitals - Strong increase of the cash flow from operating activities
Total revenues of Swiss Medical Network reached CHF 301.7 million, up from CHF
259.2 million in the previous year, representing a growth of 16.4%. The increase
was mainly due to the integration of Clinique Générale-Beaulieu in Geneva during
the last quarter of 2016. Net revenues, excluding medical fees, grew by 17.4%
from CHF 222.2 million last year to CHF 260.8 million in the reporting period.
The hospital segment generated an EBITDAR (earnings before interest, taxes,
depreciation, amortization, and and rent) of CHF 54.4 million, a plus of 8.1%
compared to the CHF 50.3 million achieved in the first half of 2016. The cash
flow from operating activities of Swiss Medical Network nearly doubled from CHF
8.9 million to CHF 17.5 million.

Hospitality - Average Room Rate increased by 5.0%
Net revenues for the five hotels (4 fully consolidated; management fees for the
Palace in Lucerne) reached CHF 28.8 million, 7.9% more than in the previous
year, based on a well-diversified customer portfolio and the addition of the
Crans-Ambassador to the portfolio in December 2016. Additional customers came
from the United States and China, while the number of guests coming from the
Middle East and Switzerland remained nearly unchanged. The gross operating
profit surged significantly as the Average Room Rate increased by 5.0% from CHF
340 to CHF 357. EBITDAR reached CHF 3.3 million, corresponding to an EBITDAR
margin of 11.3%, compared to CHF 3.0 million and 11.2% a year ago. The first
half-year is historically the weaker semester for Victoria-Jungfrau Collection
due to seasonality.

Real Estate - Portfolio valued at CHF 1.15 billion
In the real estate segment, net income amounted to CHF 29.3 million (HY 2016:
CHF 25.6 million), to which Swiss hospital-related real estate (mainly the
hospital buildings used by Swiss Medical Network) contributed CHF 25.5 million
and Swiss Hospitality Properties (the hotel buildings owned by the Group)
contributed CHF 3.8 million. EBITDAR increased to CHF 24.8 million,
corresponding to an EBITDAR margin of 84.7%. All properties were fully let at
the end of the reporting period. The loan to value remains very low at 34.9% and
the average interest on mortgages was 1.72% at the end of June 2017.

Considerable funds for continued growth
AEVIS VICTORIA has substantial funds available for further expansion projects
and acquisitions. On top of a CHF 120 million credit line, the Annual General
Meeting on 13 June 2017 approved the extension and increase of the authorised
capital. The Board is thus authorised to increase the share capital by a nominal
value of maximum CHF 37.8 million until 12 June 2019. This will allow AEVIS
VICTORIA to make targeted acquisitions in the quarters ahead and support its
existing portfolio companies. The participations of AEVIS VICTORIA harbour an
important valorisation potential in the context of the actually ongoing
consolidation process, both at national and international level.

Outlook
AEVIS VICTORIA will pursue the optimisation of its operational subsidiaries, its
acquisition and collaboration strategy in its expertise areas. Several projects
are currently being evaluated. Based on an unchanged portfolio, AEVIS VICTORIA
expects to realise a total revenue of more than CHF 700 million and an EBITDAR
of more than CHF 100 million in 2017.

Detailed reporting
AEVIS VICTORIA SA's full Half-Year Report 2017 can be downloaded via this
link:http://www.aevis.com/aevis/pdf/AEVIS_HY_2017.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) 26 350 02 02

AEVIS VICTORIA SA - Investing for a better life
AEVIS VICTORIA SA invests in services to people, healthcare, hospitality, life
sciences and lifestyle. AEVIS VICTORIA′s main shareholdings are Swiss Medical
Network SA, the second largest group of private hospitals in Switzerland,
Victoria-Jungfrau Collection AG, a luxury hotel group managing five luxury
hotels in Switzerland, a hospitals and hospitality real estate division,
Medgate, the leading telemedicine provider in Switzerland, 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.

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End of ad hoc announcement------------------------------------------------------

609941  15-Sep-2017 CET/CEST