29.03.2018 – 07:19

AEVIS VICTORIA SA

EQS-Adhoc: AEVIS VICTORIA SA: Publication of Annual Report 2017

EQS Group-Ad-hoc: AEVIS VICTORIA SA / Key word(s): Final Results
AEVIS VICTORIA SA: Publication of Annual Report 2017

29-March-2018 / 07:10 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Press release

Fribourg, 29 March 2018


AEVIS VICTORIA - Publication of Annual Report 2017:
Total revenues of CHF 663.1 million, EBITDA up 6.4% to CHF 79.4 million
Sale of participations and strategic considerations on the real estate segment

AEVIS VICTORIA SA today published its Annual Report 2017. Total revenues
increased by 11.9% from CHF 592.6 million to CHF 663.1 million, mainly due to
the integration of Clinique Générale-Beaulieu in Geneva into Swiss Medical
Network in late 2016. Net revenue (medical fees excluded) reached CHF 582.5
million (CHF 517.1 million in 2016). On a Group level, EBITDA amounted to CHF
79.4 million, representing an EBITDA margin of 13.6% (CHF 74.6 million, 14.4% in
2016). During the reporting period, AEVIS VICTORIA proceeded with two
divestments, which resulted in a financial gain of CHF 10.4 million: an 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. Net profit before
taxes surged by 72.5% to CHF 7.9 million. Net profit before extraordinary items
(amortisations and taxes) amounted to CHF 6.1 million (strongly up compared to
2016). Net profit decreased to CHF 1.1 million (2016: CHF 2.7 million). The
Board of Directors will propose to the Annual General Meeting a distribution
from capital contribution reserves of CHF 0.55 per share and is assessing
various strategic options for its real estate segment, in order to create and
distribute value to its shareholders.

Participations
The sale of a participation in LifeWatch AG to BioTelemetry and of a minority
participation in Linde Holding Biel/Bienne AG to Hirslanden group generated a
substantial financial gain. In line with its investment focus on innovative
companies, AEVIS VICTORIA has acquired a participation of 20% in iKentoo,
operating a cloud-based point of sale and business management system for the
hospitality sector (www.ikentoo.com). Medgate has pursued its international and
national development strategy, thus reinforcing its leadership position in
telemedicine in Switzerland. In 2018, AEVIS VICTORIA will pursue its investment
strategy focused on companies offering services to people, in which the Group
will be able to contribute with synergies and expertise.

Real Estate
With a valuation of well over CHF 1 billion, the Group's real estate portfolio
represents an important part of AEVIS VICTORIA's assets. The 45 properties are
very well located and have an above-average standard, as intensive investments
have been completed in the past. Long-term leases have been concluded with high
quality tenants. Almost all properties are rented to the hospitals of Swiss
Medical Network or the hotels of Victoria-Jungfrau Collection. The vacancy rate
stands at zero. Net revenues in the real estate segment amounted to CHF 58.4
million, up by 14.0% (2016: CHF 51.2 million). EBITDAR soared by 12.2% from CHF
42.4 million to CHF 47.6 million. The property portfolio focused on healthcare
and hospitality represents an infrastructure asset class, which is highly
resilient to economic downturns and not well represented on the Swiss Stock
Exchange, while it is very present in most of European and American markets.

Hospitals
All hospitals of Swiss Medical Network but Privatklinik Lindberg achieved a
positive operating result (EBITDAR) in 2017. At the same time, the focus going
forward will be on further internal improvements. Organic growth will be boosted
by a partnership strategy and the development of medical centres. Profitability
will be increased by exploiting synergies within the hospital Group, creating
regional centres of excellence and increasing internal efficiencies. After
having outsourced IT and standardised operational processes, a new cost-saving
program of over CHF 15 million has been initiated as of September 2017 for 2018.
The efficiency gains realised since 2016 have allowed the listed hospitals of
Swiss Medical Network to be ranked amongst the least expensive of Switzerland
according to the Confederation's price comparator.

Total revenues of Swiss Medical Network reached CHF 586.0 million, up from CHF
521.0 million in the previous year, representing a growth of 12.5%. 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 13.4% to
CHF 506.1 million (2016: CHF 446.2 million). The hospital segment generated an
EBITDAR of CHF 95.6 million, corresponding to an EBITDAR margin of 18.9%.

Hospitality
Net revenues for the five hotels (4 fully consolidated; one under management)
reached CHF 64.3 million, up by 6.0% compared to the previous year. All hotels
of Victoria-Jungfrau Collection achieved operational improvements. The gross
operating profit (GOP) surged significantly, as the Average Room Rate increased
by 7% to CHF 397. EBITDAR reached CHF 12.3 million, corresponding to an EBITDAR
margin of 19.1%. It is important to note that these solid results were achieved
despite the closure of the Eden au Lac in October 2017 and the Palace Lucerne in
November 2017 for extensive renovation and refurbishment.

Outlook
AEVIS VICTORIA will pursue its growth and collaboration strategy in the various
Group segments whilst improving and optimising its operations. The acquisition
pipeline of the Group is attractive, and several projects are being evaluated.
Based on an unchanged portfolio, AEVIS VICTORIA expects to realise single digit
revenue growth and to significantly improve profitability in the current
business year 2018 by pursuing its initiated cost-saving programmes.

Detailed reporting
AEVIS VICTORIA SA's Annual Report 2017 can be downloaded via this link:
http://www.aevis.com/aevis/pdf/AEVIS_AR_2017.pdf

Webcast today at 10.00 CET
AEVIS VICTORIA SA will present an overview of its operational and financial
results in 2017 as well as its future development plans during a webcast today
at 10.00 CET. The results call will be headed by Antoine Hubert, Delegate of the
Board. The conference will be held in English.

Link to live audio webcast:http://aevis290318-live.audio-webcast.com

Dial-in numbers for conference call function only:
CH: +41225805970
DE: +4969222229043
UK: +442030092452
USA: +18554027766
PIN Code: 60482397#

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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670165  29-March-2018 CET/CEST