Publication of Annual Report 2019

AEVIS VICTORIA SA / Key word(s): Annual Results

27-March-2020 / 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.

Press release

Fribourg, 27 March 2020

AEVIS VICTORIA SA: Publication of Annual Report 2019

EBITDAR surges to 36.5% and net profit jumps to CHF 173.7 million

As it transitions to a pure investment company, AEVIS VICTORIA achieved an outstanding result in the 2019 financial year. Total revenue increased by 42.0% to CHF 933.2 million, including participation gains of CHF 199.4 million from the sale of a 70% stake in Infracore and CHF 22.0 million from the sale of Générale-Beaulieu Immobilière SA. Organic growth was 3.6% and operating income increased to CHF 308.4 million, corresponding to an EBITDAR margin of 36.5%. Net profit rose sharply to CHF 173.7 million. After a promising start to the new 2020 financial year, the spread of the coronavirus, and especially the gradually increased state of lockdown in Switzerland, are having an impact on daily operations in both the hospital and hospitality segments. Although the Group is very well diversified and, thanks to its healthcare participations, positioned to make a contribution in overcoming this healthcare crisis, the financial consequences of the ongoing lockdown cannot yet be quantified. For this reason, the Board of Directors of AEVIS VICTORIA has decided not to propose to pay a dividend for the year under review.

Swiss Medical Network achieves organic growth of 4.0%
Despite the ongoing shift to more outpatient care and the reduction of TARMED tariffs, organic growth reached a solid 4.0%, enabled by past acquisitions, the reopening of renovated facilities and the recruitment of additional medical talent. Total net revenue (excluding medical fees) amounted to CHF 534.8 million, 7.7% more than in the previous year. Operating income reached CHF 87.7 million, corresponding to an EBITDAR margin of 16.4%. With the integrations of Rosenklinik AG in Rapperswil, Privatklinik Belair in Schaffhausen and Hôpital du Jura bernois (in January 2020), the network has grown to 21 hospitals in 13 cantons in all language regions, and thereby the long-term goal, set nearly 10 years ago, is being approached. With the consolidation of Rosenklinik and Hôpital du Jura bernois, Swiss Medical Network is expected to achieve a turnover of approximately one billion in 2022.

Swiss Medical Network is well prepared for the ongoing transition of the Swiss healthcare system. Already today, the network operates 26 outpatient centers in all parts of Switzerland treating more than 160’000 ambulatory patients in 2019. In addition, the group strives to develop more integrated care offerings to be even closer to the patients and to cover the entire value chain from prevention to treatment in the hospital and rehabilitation after the hospital stay. Part of these efforts is the ongoing expansion of the telemedical offerings of Medgate (40% participation of AEVIS VICTORIA). It is worth mentioning in this context that Medgate has been chosen by the Federal Office of Public Health (Bundesamt für Gesundheit) to run the nationwide coronavirus hotline.

In 2020 and 2021, the growth strategy of the healthcare segment will be continued and extended also on the vertical value chain. In this context, AEVIS VICTORIA might be joined by new strategic shareholders in Swiss Medical Network to build up a truly Integrated Care Provider for Switzerland, following the example of Kaiser Permanente in the USA.

Participation in Infracore reduced to 30%
After the sale of a 20% stake in Infracore to Bâloise in December 2018, a further 15% was sold to Bâloise and 46% to Medical Properties Trust (MPT) on 27 May 2019. In December 2019, the portfolio was significantly enlarged with the acquisition of Générale-Beaulieu Immobilière SA. The transaction was paid in cash and Infracore shares, thereby bringing the AEVIS VICTORIA stake in Infracore back to 30%, while the participations of MPT and Bâloise were reduced to 40% and 30%, respectively. For the financial year 2019, Infracore is expected to pay out CHF 28.0 million, which would lead to a distribution to AEVIS VICTORIA of CHF 8.4 million later in 2020. Infracore and its shareholders are fully committed to supporting Swiss Medical Network in its acquisition strategy, giving it strong bargaining power.

Hotel property portfolio growing strongly
Following the deconsolidation of the healthcare infrastructure properties, the hotel real estate portfolio will be strengthened by acquisitions and the Group progressed to become a major player in the Swiss luxury hotel industry. The existing portfolio of seven buildings in Interlaken and Zürich with a market value of CHF 204.8 million as of 31 December 2019 will be enlarged to a size of up to CHF 500 million.

Victoria-Jungfrau now operates seven luxury hotels across Switzerland
In line with a flourishing tourism industry in Switzerland, the operational hotels of Victoria-Jungfrau performed well in the reporting period and achieved a turnover of CHF 69.4 million, 11.3% more than in the previous year (CHF 62.4 million). All three operating hotels (Victoria-Jungfrau Grand Hotel & Spa, Bellevue Palace and Crans Ambassador) contributed to this pleasing result. Following the successful acquisition of 100% of Seiler & Partenaires Holding SA, the Mont Cervin Palace and Monte Rosa hotels in Zermatt have been operated by the Group since 1 November 2019. In addition, after the reporting period, the Hotel InterContinental in Davos became part of Victoria-Jungfrau at the beginning of 2020. The Hotel Eden au Lac in Zurich, which has been closed since October 2017 for total renovation, was reopened in January 2020 under the brand name La Réserve Eden au Lac Zurich. Victoria-Jungfrau has thus progressed to become the largest provider of luxury hotels in Switzerland, with a diversified portfolio including both typical winter and summer destinations as well as city hotels, and with 847 rooms and more than 800 employees.

Strengthened balance sheet
The sale of the stake in Infracore and of Générale-Beaulieu Immobilière SA resulted in substantial cash inflow. Overall, the balance sheet was reduced significantly from CHF 1’855 million to CHF 1’191 million, the leverage ratio was substantially reduced, and the equity ratio strengthened from 24.0% to 37.3%. The CHF 145 million 2.75% bond maturing in the summer was repaid on maturity. Despite the good results, the Board of Directors will not propose a dividend distribution because the financial consequences of the ongoing lockdown cannot yet be quantified.

Total turnover approaching the billion mark
Reported total revenues increased to CHF 933.2 compared to CHF 657.2 million a year ago. Net revenues (without medical fees) reached CHF 844.8 million (2018: CHF 577.9 million). On a Group level, EBITDAR amounted to CHF 308.4 million, up from CHF 84.7 million, corresponding to an EBITDAR margin of 36.5% (2018: 14.7%). The profit surged to CHF 173.7 million compared to a net loss of CHF 6.6 million in the previous year.

Outlook 2020
The start to 2020 was encouraging in both the hospital and hospitality segments but was suddenly interrupted with the COVID-19 crisis. Every hospital in Swiss Medical Network is playing a major role in its canton’s cooperation with public hospitals to fight against the coronavirus, and the individual hospitals are prepared to compensate for potentially postponed elective surgeries in the months to come. We expect very strong activities when elective surgery reopens. The pandemic is expected to broadly impact the hospitality business this summer, since cancellations of trips and conferences as well as group travels have been observed on a broad front. However, national tourism might be able to compensate in part the cancellations. The winter hotels have completed the season a few weeks ahead of schedule and the other hotels have been closed until further notice. In general, visibility has decreased markedly, and it is difficult to make any predictions about the coming months. At the time of the publication of the annual report, the financial impacts of COVID-19 and the gradually increased state of lockdown in Switzerland for the Group cannot be reliably measured due to the uncertainties regarding the duration and the severity of the spread of COVID-19. The Board of Directors and the Management have defined and implemented measures to ensure in particular the short-term availability of liquidity. The Swiss Federal Government announced a large compensation program for business losses, and our businesses would qualify for such compensation. We are confident that, like the Canton of Berne, all cantons will compensate hospitals and clinics for their loss of revenue.

Detailed reporting
AEVIS VICTORIA SA’s Annual Report 2019 can be downloaded via this link:

Webcast today at 10.00 CET
AEVIS VICTORIA SA will present its Annual Results 2019 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.


For participants to the conference call (slides only):

Dial-in numbers for conference call function only:
Switzerland: ++41 44 580 6522
Germany: ++49 692 0174 4220
UK: ++44 203 009 2470
US: ++1 877 423 0830
Code PIN participants: 43500834#

For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey,, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren,, +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, the only Swiss private network of hospitals present in the country’s three main language regions, Victoria-Jungfrau AG, a luxury hotel group managing luxury hotels in Switzerland, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, a hospitality real estate division, Medgate (40%), 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).

End of ad hoc announcement

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