AEVIS VICTORIA SA (AEVS.SW) – Publication of the Annual Report 2023

Ad hoc announcement pursuant to Art. 53 LR

Fribourg, 28 March 2024

AEVIS VICTORIA SA (AEVS.SW) – Publication of the Annual Report 2023

During the year 2023, all investments of AEVIS VICTORIA SA (AEVIS) achieved significant, transformative milestones. The overall value of the holdings continued to increase, driven primarily by Swiss Medical Network, a leader in integrated healthcare in Switzerland, with the entry of the insurance group Visana into its capital. The inflationary environment, interest rates, energy costs, and the geopolitical situation weighed on their profitability, but each of the companies in which AEVIS is a shareholder managed to navigate this challenging environment and implement the necessary compensatory measures.

Swiss Medical Network with positive start into 2024
Swiss Medical Network achieved total revenues of CHF 768.7 million, taking into account the deconsolidation of Réseau de l’Arc. On a like-for like basis, revenue remained stable with organic growth of 0.3%. The operating profit at the EBITDAR level reached CHF 106.8 million, 24.1% less than in the previous year (2022: CHF 140.6 million). This corresponds to an operating margin of 16.5%. On a like-for-like basis, the operating profit amounted CHF 106.6 million compared to CHF 124.5 million a year ago. Swiss Medical Network has initiated various revenue and cost-optimization measures in order to regain the margins achieved in 2022 by 2024. Activity in January and February of 2024 showed positive effects of these measures, with turnover being around 8% above the same period in 2023 and profitability sequentially improving again.

MRH Switzerland achieves best result ever
Revenues at MRH Switzerland AG (formerly Victoria Jungfrau AG), the subsidiary of the Group’s hotel operations, increased by 10.3% to CHF 170.5 million (2022: CHF 154.5 million). Organic growth amounted to 6.4%. EBITDAR reached CHF 34.6 million, corresponding to an operating margin of 20.3%. Most hotels, except for the newly acquired Adula in Flims and the L’Oscar in London, contributed to the better operational performance. The destinations of Zermatt and Interlaken per formed particularly well, both in winter and summer.

Real estate portfolios strengthened
Swiss Hotel Properties SA, the consolidated hotel real estate subsidiary, saw the value of its real estate portfolio increase to CHF 857.8 million, mainly due to acquisitions and developments in Zermatt and Interlaken. The NAV (net asset value) amounted to CHF 363.4 million as at 31 December 2023.

Infracore SA, a minority holding (30%) of AEVIS dedicated to healthcare infrastructures, saw the total value of the real estate portfolio rising to CHF 1.29 billion (2022: CHF 1.25 billion), due to new constructions and increased rental space, despite negative value adjustments of CHF 16.8 million on existing properties related to higher interest rates. The NAV amounted to CHF 566.3 million at the end of the reporting period.

AEVIS consolidated results
AEVIS’ consolidated revenue in 2023 amounted to CHF 953.0 million (2022: CHF 1.14 billion), down due to the deconsolidation of Réseau de l’Arc and the absence of M&A transactions affecting the result. On a like-for-like basis, organic growth stood at 1.5%. EBITDAR reaches CHF 119.9 million (2022: CHF 209.6 million), corresponding to a margin of 14.4% (2022: 20.5%). On a like-for-like basis, the operating profit margin reached 14.6%. After depreciation, amortization and financial expenses, a net loss of CHF 41.9 million resulted. The Board of Directors will not propose a distribution to the Annual General Meeting.

Statutory equity of CHF 549.3 million
At the statutory level (holding company, non-consolidated) revenue reached CHF 15.6 million. The balance sheet remained very strong with equity of CHF 549.3 million, corresponding to an equity ratio of 68.3%. AEVIS will continue to monitor market conditions and may return to the capital markets, depending on opportunities and acquisitions.

Senior management changes
As announced on 12 March 2024, Fabrice Zumbrunnen, former Chairman of the Executive Management of Migros Group, will become the CEO of AEVIS as of 1 May 2024. In addition, Michel Keusch will join the senior management of AEVIS as CFO (Chief Financial Officer) and CIO (Chief Investment Officer) as of 1 June 2024. Senior Investment Manager at Bellevue Asset Management, Michel Keusch will bring strong competencies in strategy and financial analysis as well as valuation and investment banking transactions. The current CFO Gilles Frachon will retire at the end of May 2024 and is proposed to become a member of AEVIS’ Audit Committee. We would like to thank Gilles Frachon for his 12 years of service for AEVIS and are looking forward to continue our collaboration within the Audit Committee. Séverine Van der Schueren, CAO (Chief Administration Officer), who has been working for the Group since 2008, first as Secretary General of Swiss Medical Network and then as CAO of AEVIS, will complete the senior management of AEVIS as of 1 June 2024.

Outlook 2024
In line with its with its mission of “Investing for a better life”, AEVIS will continue to prioritize innovative projects and companies that bring real added value to its customers, while further strengthening its strong market position in the fields of healthcare, hospitality and real estate sectors.

Operationally, AEVIS expects continued positive development in the hospitality sector and expects that the cost pressure in the healthcare sector will normalize and that higher margins can be achieved again through targeted efficiency programs. The Group’s real estate portfolios generate regular, stable rental income and are valued at conservative average prices per square meter.

Due to the diversity of its investments and the current macroeconomic challenges, AEVIS refrains from issuing consolidated revenue or margin targets for the financial year 2024.

Detailed reporting
AEVIS VICTORIA SA’s Annual Report 2023 can be downloaded via this link:
Annual Report 2023

Conference call today at 11.00 CET
AEVIS VICTORIA SA will present its Annual Results 2023 during a conference call today at 11:00 CET. The results call will be headed by Antoine Hubert, Delegate of the Board. The conference will be held in English.

Please register for the conference call via the link below, to receive the access numbers automatically by email: https://webcast.meetyoo.de/reg/UInIf3UNncoh  

Dial-in numbers for registered participants:
CH: +41 43 550 14 74
DE: +49 69 66 773 8007
UK: +44 20 3872 0888
US: +1 516 269 8975

Dial-in via the operator for non-registered participants:  DE: +49 89 90 40 6993

Audio Webcast:
Live-Link: https://www.webcast-eqs.com/aevis-2023-ar

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, 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.