AEVIS VICTORIA SA

Earnings Release • Sep 18, 2020

AEVIS VICTORIA – 2020 Half-Year Results Presentation

Investing for a better life

Disclaimer

This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond AEVIS VICTORIA SA's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in AEVIS VICTORIA SA's past and future filings and reports and in past and future filings, press releases, reports and other information posted on AEVIS VICTORIA SA's group companies websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. AEVIS VICTORIA SA disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation does not constitute an offer to sell or a solicitation to purchase any securities of AEVIS VICTORIA SA.

Financials

Highlights

• Operating results remained solid despite the crisis
• Operating margin/profit and cash generation was very good
• Hotels satisfying considering zero MICE activity and very low tourist activity from abroad

AEVIS profit & loss key figures

(In thousands of CHF)	HY 2020	HY 2019 Operating	HY 2019
Total revenue	346'554	351'788	545'587
Net revenue	302'791	307'383	501'182
EBITDAR	38'343	47'877	241'676
EBITDAR margin	12.7%	15.6%	48.2%

Operating 2019

1) Excluding gain on sale Infracore

• In HY2020, AEVIS VICTORIA (AEVIS) achieved total revenues of CHF 346.6m, 1.5% below the previous year on an adjusted basis
• A federal ban on elective surgery, travel restrictions and the forced closure of all hotels for several weeks in Q2 resulted in an activity slowdown in both the hospitality and the hospital segment
• Thanks to swift adaptation of measures, the group performed well under these special circumstances and was able to defend a high margin of 12.7%, corresponding to an EBITDAR of CHF 38.3m

AEVIS profit & loss segment break down

HY 2020 (In thousands of CHF)	Hospitals	Hospitality	Real estate	Others	Corporate	Eliminations	Total
Net revenue	250'794	43'777	3'635	8'331	85	(3'831)	302'791
EBITDAR	39'441	5'508	2'572	(960)	(4'587)	(3'631)	38'343
EBITDAR margin	15.7%	12.6%	70.8%	-	-	-	12.7%
EBITDA	18'265	661	2'572	(2'163)	(4'919)	-	14'416
EBITDA margin	7.3%	1.5%	70.8%	-	-	-	4.8%

HY 2019 adj. (In thousands of CHF)	Hospitals	Hospitality	Real estate	Others	Corporate	Eliminations	Total
Net revenue	268'908	29'229	26'326	9'202	177	(26'460)	307'383
EBITDAR	51'107	4'014	23'637	(1'196)	(5'979)	(23'706)	47'877
EBITDAR margin	19.0%	13.7%	89.8%	-	-	-	15.6%
EBITDA	23'828	(1'396)	22'910	(2'803)	(6'350)	-	36'188
EBITDA margin	8.9%	-4.8%	87.0%	-	-	-	11.8%

Operating adjustments 2019

1) Excluding gain on sale

AEVIS balance sheet key figures

(In thousands of CHF)	30.06.2020	31.12.2020
Cash and cash equivalents	41'819	40'236
Available credit lines	23'670	130'120
Total cash available	65'489	170'356
Short-term financial liabilities	176'370	70'077
Long-term financial liabilities	475'174	425'296
Total financial liabilities	651'544	495'373
Cash and cash equivalents	41'819	40'236
Total net financial liabilities	609'725	455'137
Shareholder's equity incl. minority interests	411'578	443'835
Total assets	1'318'042	1'190'561
Equity ratio	31.2%	37.3%
Leverage	49.4%	41.6%

• In the reporting period, the company's balance sheet was extended to CHF 1.3bn by the addition of further real estate assets
• Good capitalization structure with an equity ratio of 31.2% and a solid financial position
• After repayment of the CHF 55.0m bond at maturity in June, short- and medium-term liquidity is secured with cash and available credit lines in the amount of CHF 65.5m

Operational cash flow

• AEVIS had a strong focus on safeguarding liquidity in the crisis
• Implementation of various operational optimization and cost-cutting measures resulted in a positive cash flow in both key segments and increased the cash flow from operating activities at the Group level by 76.3% to CHF 12.6m

Rent reductions

• Negotiated rent reductions across all segments lowered rental expenses by CHF 13.5m
• Both the Hospitals and the Hospitality segment benefitted from these operational measures

Reduced financing cost

• Substantial reduction of financial expenses thanks to deconsolidation of Infracore SA and improvement of financial facilities
• COVID-19 loans at very low interest rates

AEVIS VICTORIA SA

Our long-term vision

AEVIS VICTORIA

• Investing for a better life – We invest in services to people
• Creating value – We grow and manage companies for long term value
• Partnerships – Our expertise and culture makes us a preferred investment partner

Our focus sectors

Impact of COVID-19 on AEVIS VICTORIA SA

AEVIS was well prepared for the ongoing COVID-19 crisis thanks to…

• High level of digitalization and decentralized organizational structure
• Mindset focused on adaptability and reactivity to attractive opportunities coming up
• Good capital base and sufficient liquidity reserves

…nevertheless certain measures have been implemented to weather the crisis

• All capex have been strongly reduced or stopped
• All available tools (short time work, etc.) and supports (state backed financings, etc.) from the state have been used if applicable
• No ordinary dividend for 2019
• Strong focus on management of liquidity through the group to be able to seize opportunities and maximize flexibility
• Rent waivers for operating companies have been negotiated
• Optimization of cash cycle (faster invoicing, faster collection)

Overall good resilience during the Covid-19 crisis – thanks to the dedicated hard work of all employees and partners, financial results exceeded expectations given the circumstances

Healthcare

Swiss Medical Network

100% participation of AEVIS

Integration of non-consolidated entities

• Swiss Medical Network currently counts two participations which are not yet 100% consolidated: Hôpital du Jura-Bernois SA and Rosenklinik AG
• Swiss Medical Network has options to acquire a majority of the share capital and thus fully integrate these hospitals in the future
• Especially with HJB, Swiss Medical Network becomes an integrated care provider in the Arc Jurassien and the Espace Mittelland
• The table below shows the group's footprint as if all entities were already fully consolidated

Operational key figures 1HY 2020	SMN	HJB	Rosen klinik	TOTAL
Physicians	2'346	97	24	2'467
Interventions	24'832	1'425	680	26'937
Beds	1'085	91	17	1'193

Solid growth outside the period of forced slowdown in activity

	16.03.2020	27.04.2020
	Initiation of lock down by federal order	1st stage of reopening
Jan Feb	Mar	Apr May	June	July
Pre-COVID-19	Lock-down		Partial re-opening	H2 2020
• Business developing well and above budget • Until end of February, all hospitals were running 3.0% above last year	• Hospital activity strongly reduced due to ban on non urgent medical interventions • Capacity utilization only 35% in March and April	• •	All 21 hospitals and 26 health centers fully operational again Capacity utilization increases to 90% in May and 120% in June compared to budget	• of Normalization situation • Organizational measures to make resources available in <48h to make another preventive interruption unnecessary

Highlights HY 2020 – COVID 19 impact

Adaption, collaboration, reactivity

• Comprehensive hygiene and protection measures implemented immediately
• Flexible cooperation: Various hospitals were part of the cantonal pandemic plans
• Cost savings achieved: introducing short-time work, reducing overtime, simplifying the gastronomic offer and renegotiating rent contracts
• 5-year investment plan and CAPEX stop until 2021

Resilient business with solid EBITDAR margin of 15.7%

The importance of telemedicine

• Medgate as important partner for the Federal Office of Public Health and also part of various task forces e.g. helping to set up testing facilities
• Set-up of a highly performing hotline both for patients and healthcare professionals
• Increased capacity (+100 staff, +IT, etc.) to handle double the volume of calls within 2 weeks

Ongoing consolidation

• Health crisis likely to be an additional catalyst for the consoldiation in the healthcare services sector
• Importance of well-organized care networks with strong and flexible healthcare infrastructure going forward
• SMN to pursue the development of integrated care clusters in various regions of Switzerland

Further benefit from this trend expected in the future

Integrated care as the way forward

Vision of an integrated care platform for Switzerland

AEVIS intends to form an alliance of relevant actors creating local integrated health systems

• Focusing on maintaining good health (paradigm shift)
• Developing accompanying measures (prevention and proactivity)
• Aligning incentives and interest to avoid unnecessary treatments
• Promoting digitalization through the system to improve efficiency of treatments

Holistic composition

To be functional, we believe that this new organization should comprise hospitals (inpatient care), medical centers and clinics (outpatient care and diagnostics), general practitioner groups and insurance infrastructure and a strong technology partner

AEVIS is committed to an efficient health system that puts the citizen at the center Becoming a true integration platform will boost the values of Swiss Medical Network and Medgate (hospitals-health centers-telemedicine)

Integrated care network Arc Jurassien

• The integrated care network in the Arc Jurassien was further strengthened by the acquisition of Medizinisches Zentrum Biel, a large medical center with a broad array of medical specialties in the city center of Biel, in September 2020

Medgate 40% participation of AEVIS

Medgate is the partner of BAG in the current Corona crisis operating hotlines, performing tests, etc.

Hospitality & Lifestyle

Hospitality group 100% participations of AEVIS

COMPANIES	OVERNIGHT STAYS
Victoria–Jungfrau Collection, Seiler Hotels, InterContinental Davos	62'238
ROOMS IN OPERATION	AVERAGE ROOM RATE IN CHF
847	384
EMLOYEES	F&B SEATS
827	2'501

Current hotel portfolio

Fully owned hotels

Hotel Victoria-Jungfrau, Interlaken La Réserve EDEN AU LAC, Zurich Bellevue Palace, Bern Crans Ambassador, Crans Montana Mont Cervin Palace, Zermatt Monte Rosa, Zermatt Petit Cervin, Zermatt Hotel InterContinental, Davos

Highlights HY 2020 – COVID 19 impact

Strong start into the year

• Excellent winter season (+15.8% until Feb 2020)
• Revenues up by 49.8% driven by the acquisitions:
  • − Mont Cervin Palace, Zermatt
  • − Hotel Monte Rosa, Zermatt
  • − Hotel InterContinental, Davos
• In organic terms, activity and revenues were significantly impacted and down by 51.5%

Increase in revenues due to acquisitions in Davos and Zermatt

Challenging summer season

• Staggering reopening postlock-down of the hotels
• Satisfying summer in Zermatt and Interlaken in terms of activity, but at lower prices: the lack of foreign guests could partially be off-set through an increase of domestic demand
• The hotel in Zurich is running at a satisfying rate especially regarding F&B, while the Bellevue Palace is suffering from the absence of MICE Business

Operating under difficult circumstances

Effective reaction to the pandemic

• Quick implementation of measures to mitigate the negative impact of the pandemic
• Some hotels remained closed post-lockdown for economic reasons
• Introduction of short-time work and negotiation of temporarily lower rents helped the Group in managing its liquidity
• Planning of winter season 2021 on hold due to lack of visibility

Solid EBITDAR margin of 12.6% thanks to quick reaction

Reopening of La Réserve Eden Au Lac Zurich

Re-opening in January 2020

• 40 luxurious rooms designed by Philippe Starck
• New F&B offering attracting local and international guests
• Eden Kitchen & Bar with 172 seats (+82 to pre-renovation): Relaxed atmosphere and dedicated restaurant entrance reduce barriers to welcome walk-in guests
• La Muña: located on the top floor with 67 restaurant seats (+67 pre-renovation): 2 unique roof top terraces with splendid views of Zurich, the lake and the Alps

Infrastructure

Real Estate 100% participations of AEVIS

*As of July 2020

Broad geographical footprint across Switzerland with focus on four- and five stars in the most sought-after locations

Hotel Victoria-Jungfrau Interlaken

6 additional properties Interlaken

La Reserve EDEN AU LAC Zürich

Notre-Dame (land reserve) Crans-Montana

Acquired in July 2020

Hotel Intercontinental Davos

Acquired in early 2020

No material impact on asset values expected thanks to the high quality of the properties

Strong winter: Winter season completed by Alpine hotels without major cutbacks

Timing: Several hotels were scheduled to be closed during the lockdown period

No CAPEX backlog: no CAPEX required in 2020, no impact on productivity

Considering the good diversification of city and mountain hotels and the positioning of the hotels in the portfolio we expect no material value impact on the hotel properties of the group

Infracore 30% participation of AEVIS

*weighted average unexpired lease term

Infracore – 2020 Financials Summary

Guidance / Q&A

AEVIS VICTORIA SA

Thank you for your attention