Ad hoc announcement pursuant to Art. 53 LR
Fribourg, 31 March 2023
AEVIS VICTORIA SA – Publication of the Annual Report 2022
Consolidated revenues exceeded one billion Swiss francs for the first time, up 27.9% to CHF 1.14 billion, generating an EBITDA of CHF 130.0 million, up 65.7%, and a net profit of CHF 61.8 million.
Board of Directors will propose a distribution of CHF 0.75 per share to the Annual General Meeting.
AEVIS VICTORIA SA (AEVIS) reports strong growth in all its operating activities, driven by acquisitions and the normalisation of the hospitality business. With the constitution of Réseau de l’Arc together with the Canton of Berne and Visana insurance group, Swiss Medical Network is emerging as a leader in the transformation of the Swiss healthcare system. Victoria-Jungfrau, the hotel division of AEVIS, achieved a record year with the return of foreign guests. The investment activities, with the sale of the stake in Medgate, also contributed to the Group's good results. The Board of Directors will propose an increased ordinary dividend of CHF 0.45 per share and an extraordinary dividend of CHF 0.30 per share to the Annual General Meeting.
Swiss Medical Network positions itself as a pioneer in integrated healthcare
Swiss Medical Network, the hospitals and medical centers group, continued to develop and achieved a pleasing result, with revenues of CHF 916.5 million, up 20.6% (2021: CHF 760.1 million). Hôpital du Jura Bernois SA, consolidated over 12 months, contributed to this increase, whilst organic growth amounted to 4.9%. The entry of Visana Beteiligungen AG into the capital of Réseau de l'Arc SA (formerly Hôpital du Jura Bernois SA) led to the de-consolidation of this entity as of 31 December 2022, as Swiss Medical Network’s stake decreases from 52 to 35%. Swiss Medical Network’s key priority is to implement integrated healthcare networks in other regions in Switzerland, which involves strengthening the range of services, amongst others in primary care. From 2023 onwards, Swiss Medical Network will accelerate the development and acquisition of medical centers and homebased care organizations. Various investments in new private and public hospitals are also under evaluation.
Victoria-Jungfrau achieved a record year and continues to grow
With the normalisation of travel conditions, Victoria-Jungfrau, the hospitality division managing the hotel operations, has realised the best year in its history so far. Victoria-Jungfrau recorded a 35.1% increase in revenue to CHF 154.5 million (2021: CHF 114.3 million), with business returning to 2019 levels. Organic growth was 30.2%. Total overnight stays surged from 183’900 to 258’266 and the average room rate jumped from CHF 427 to CHF 618, supported by a higher number of individual guests. MICE (meetings, incentives, conventions and events) activity is gradually picking up and should return to a pre-pandemic level by 2025. Victoria-Jungfrau wants to concentrate its activities in Switzerland on its city hotels (Zurich and Bern) as well as on the tourist destinations of Zermatt and Interlaken. The expansion abroad, initiated with the acquisition of the Hotel L’Oscar in London, is expected to accelerate with targeted acquisitions in leading destinations. The close collaboration with Michel Reybier Hospitality, which has enabled this strong development, will be intensified in the future.
Swiss Hotel Properties, real estate for the hotel industry
The portfolio of Swiss Hotel Properties now consists of 20 unique buildings in six top locations. The market value amounts to CHF 753.0 million as at 31 December 2022. Major investments were made in the Grand Hotel Victoria-Jungfrau in Interlaken, including the creation of a park with an outdoor swimming pool, further enhancing the resort character of the luxury hotel. In 2022, two buildings were acquired in London (Hotel L'Oscar) and one building in Flims (Hotel Adula). The portfolio will evolve in 2023, in line with the Group's hotel strategy. Following the return of the World Economic Forum to Davos and the success of the January 2023 edition, the group has received several indications of interest for acquiring the AlpenGold Hotel in Davos. The group is examining the possibility of such a sale, which would accelerate the refocusing of its hotel business on its flagship destinations.
Infracore SA, a strong partnership for the development of healthcare networks
The value of Infracore's portfolio (direct and indirect 30% stake, not consolidated) reached CHF 1.26 billion. The company generated a net profit of CHF 103.7 million with revenues of CHF 131.2 million (including CHF 71.2 million of revaluation gains on properties and development projects). The construction of Genolier Innovation Hub, a research and training center on the Genolier campus, advances according to plan and budget and is expected to be completed in March 2024. The building will accommodate various healthcare industries and will generate an annual rental income of approximately CHF 5 million for an investment of approximately CHF 65 million. A fully integrated conference center will also be available on site.
Investment activities
AEVIS increased its stake in Batgroup SA, the parent company of Batmaid, the leading Swiss home cleaning service, in several steps, reaching 27.3% in January 2023. In June 2022, AEVIS acquired a stake in the digital health platform Well. The 40% investment in Medgate was sold in March 2022 to the German company Otto Group, generating a significant capital gain for AEVIS and enabling Medgate's international expansion. AEVIS will continue to invest in its various subsidiaries and discussions are underway to expand the shareholding of Swiss Medical Network to other strategic partners, to enable further development.
Statutory profit of CHF 67.4 million
At the statutory level (holding, non-consolidated) revenues were CHF 82.9 million, mainly from dividend payments received from participations and the gain on the sale of the minority participation Medgate. The statutory profit amounted to CHF 67.4 million. The Board of Directors will thus propose to the Annual General Meeting a distribution of CHF 0.75 per share, composed of an ordinary distribution of CHF 0.45 per share and an extraordinary distribution of CHF 0.30 per share.
Outlook 2023
In line with its investment activity, the Group’s current investment portfolio should generate significant dividends and capital gains in 2023, which should allow it to continue and intensify its dividend policy in 2024.
Operationally, AEVIS expects a further positive development in its healthcare, hospitality and real estate businesses. Nevertheless, AEVIS’s consolidated turnover for 2023 is likely to decrease following the deconsolidation of Réseau de l’Arc SA (formerly Hôpital du Jura Bernois SA). The overall profitability of the Group is, however, expected to increase. Due to the diversity of its participations and the current macroeconomic challenges, the Group is refraining from issuing consolidated revenue or margin targets for the financial year 2023.
Detailed reporting
AEVIS VICTORIA SA’s Annual Report 2022 can be downloaded via this link:
https://www.aevis.com/_media/2023/03/ar_2022.pdf
Webcast today at 10.30 CET
AEVIS VICTORIA SA will present its Annual Results 2022 during a webcast today at 10:30 CET. The results call will be headed by Antoine Hubert, Delegate of the Board. The conference will be held in English.
Live-Link: https://www.webcast-eqs.com/aevis-2022-ar
For participants to the conference call (slides only, no audio, no delay):
https://www.webcast-eqs.com/aevis-2022-ar/no-audio
Conference Call login:
Please register for the conference call via the link below. Afterwards you will receive the access numbers automatically by email: https://webcast.meetyoo.de/reg/53TKkCsrwwB5
Alternatively, you can also register via the operator: +49 30 232531366
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 (90%, directly and indirectly), the only Swiss private network of hospitals present in the country's three main language regions, Victoria-Jungfrau AG, a luxury hotel group managing ten 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.
