Share and Bond Information	4
Letter to the Shareholders	6
Portfolio Companies	10
Consolidated Financial Statements	13

Half-Year Report 2020

CHF 347M TOTAL REVENUE STABLE

AEVIS VICTORIA SA is an investment company founded in 2006 and listed under the Swiss Reporting Standard of the SIX Swiss Exchange. In keeping with its mission, investing for a better life, the company pursues an investment strategy that focuses on three areas with high added value and strong growth potential: healthcare, lifestyle and infrastructure. AEVIS VICTORIA′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 eight luxury hotels in Switzerland, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, Swiss Hotel Properties AG, a hospitality real estate division, Medgate (40%), the leading telemedicine provider in Switzerland, and NESCENS SA, a brand dedicated to better aging.

12.7% EBITDAR MARGIN

Tab l e o f C o n t en ts

REAL ESTATE PORTFOLIO OF 18 PROPERTIES CHF 452M

MARKET CAPITALISATION CHF 984M

Key Figures

www.aevis.com

Investing for a better life

(In thousands of CHF
unless otherwise stated)	HY 2020	HY 2019	FY 2019

Total revenue	346'554	545'587	933'169
Net revenue	302'791	501'182	844'845

EBITDAR*	38'343	241'676	308'424
EBITDAR margin	12.7%	48.2%	36.5%

EBITDA	14'416	229'988	266'495
EBITDA margin	4.8%	45.9%	31.5%
EBIT	(9'411)	201'083	179'130
EBIT margin	–3.1%	40.1%	21.2%
Profit/(loss) for the period	(14'101)	202'118	173'690
Market price per share at end of period (in CHF)	12.30	12.70	14.00
Number of outstanding shares	79'983'797	78'576'061	80'325'264
Market capitalisation	983'801	997'916	1'124'554

*Earnings before interest, taxes, depreciation, amortisation and rental expenses

Share and bond information

Number of shares

		30.06.2020	31.12.2019
Share Register Computershare Schweiz AG Tel. +41 62 205 77 00 share.register@computer share.ch	Share capital (in CHF)	80'391'035	80'391'035
	Number of registered shares issued	80'391'035	80'391'035
	Nominal value per registered share (in CHF)	1	1
	Number of treasury shares	407'238	65'771
	Number of registered shares outstanding	79'983'797	80'325'264

Data per share

(in CHF unless otherwise stated)	30.06.2020	31.12.2019
EBITDA per share	0.18	3.42
High	14.75	14.70
Low	10.00	11.60
End price	12.30	14.00
Average volume per day (in units)	9'167	29'789
Market capitalisation	983'800'703	1'124'553'696

Share price performance

Registered shares

The registered shares of AEVIS VICTORIA SA are traded on the Swiss Reporting Standard of SIX Swiss Exchange and are part of the Swiss Performance Index SPI, the SXI Life Sciences Index (SLIFE) and the SXI Bio+Medtech Index (SBIOM).

Media & Investor Relations c/o Dynamics Group AG Philippe Blangey Tel. +41 43 268 32 32 [email protected]

Valor symbol:	AEVS	Bloomberg:	AEVS SW
Valor no.:	47863410	Reuters:	AEVS.S.
ISIN:	CH0478634105

Major shareholders

The following shareholders held more than 3% on 30 June 2020:

Total shareholders (30 June 2020)	1'752
of the State of Kuwait
Kuwait Investment Office as agent for the Government	3.32%
Medical Properties Trust, Inc.	4.79%
Services & Investments SA
Group A. Hubert / M. Reybier / M.R.S.I. Medical Research,	75.75%

AEVIS VICTORIA SA Bonds

AEVIS VICTORIA SA has issued two fixed rate bonds shown in the table below.

	AEV16	AEV161
Bond type	Fixed rate	Fixed rate
Nominal amount	CHF 150.0 million	CHF 145.0 million
Securities number	CH0325429162	CH0337829276
Interest rate	2.50%	2.00%
Term	07.06.2016 to 07.06.2021	19.10.2016 to 19.10.2022
Maturity	07.06.2021 at par value	19.10.2022 at par value

Financial reporting

November 2020	Publication of 3Q 2020 Revenue
February 2021	Publication of 2020 Revenue
26 March 2021	Publication of the 2020 Annual Results
29 April 2021	Ordinary general shareholders meeting for the year 2020
May 2021	Publication of 1Q 2021 Revenue
17 September 2021	Publication of the 2021 Half-Year Results
November 2021	Publication of 3Q 2021 Revenue

le t t er to t H e sHar eH o l d ers

Le t t er to the Shar eh o l d ers

In the first half-year 2020, AEVIS VICTORIA SA (AEVIS) achieved revenues of CHF 346.6 million, 1.5% below the previous year on an adjusted basis (1H2019: CHF 351.8 million). Progress in the year 2020, which for the hospitality segment had begun under the best possible prospects with the integration of the Seiler Hotels in Zermatt, the InterContinental in Davos and the reopening of the Eden au Lac in Zurich under the brand "La Réserve", was suddenly interrupted by the Covid-19 pandemic. The hospital segment, which had also benefited from a promising start to the year, saw its activities severely disrupted by the federal ban on elective surgery, despite active participation in the cantonal schemes of the various cantons in which Swiss Medical Network is present.

The management of each entity reacted quickly and implemented various operational optimisation and cost-cutting measures, with a view to preserving liquidity, which resulted in a positive cash flow in both key segments and an increase in the cash flow from operating activities at the Group level by 76% to CHF 12.6 million (1H2019: CHF 7.1 million). After repayment of the CHF 55.0 million bond at maturity in June 2020, short- and medium-term liquidity is secured with cash and available credit lines in the amount of CHF 65.5 million at the end of the reporting period. Overall, in view of the exceptional circumstances, all the participations of the Group performed honourably well, with an EBITDAR margin of 12.7%, corresponding to an EBITDAR of CHF 38.3 million (1H2019: CHF 47.9 million). Due to the debt reduction, the Group's financial expenses strongly decreased to CHF 7.9 million (1H2019: CHF 12.3 million). The covenants did not have to be renegotiated and were all well respected as at 30 June 2020. Since the beginning of the second half of the year, business is almost back to normal for Swiss Medical Network, which was able to recover some of the business lost due to Covid-19. On the other hand, occupancy rates and activity in the hotels remain well below normal levels.

Swiss Medical Network: Solid growth outside the period of forced slowdown in activity

The results of Swiss Medical Network in the first half of the year were impacted by the restrictions related to the outbreak of Covid-19. While business was still developing well and in line with the budget until mid-March, the ban on non-urgent medical interventions imposed by the Swiss Federal Council between 16 March and 27 April 2020 led to a significant decline in activity during 45 days. As a direct consequence of the ban and the fact that in various cantons some employees and medical equipment were temporarily transferred to cantonal hospitals, capacity utilization was only 35% in March and April but 90% in May and even above previous year in June. Since the beginning of the second half of the year, the situation has almost returned to normal, and Swiss Medical Network's hospitals are operating again, although in budget catch-up mode. Collaboration with the cantons within the framework of health systems has been adapted to each situation, and Swiss Medical Network has now organised itself so that it can make its resources and capacities available in less than 48 hours, which should make a preventive interruption of activity in the event of a recurrence unnecessary.

Swiss Medical Network responded quickly to the pandemic. Externally, the group immediately cooperated with all cantons in a flexible way in order to support efforts to fight the pandemic. Internally, Swiss Medical Network immediately adapted operating processes to mitigate the impact of the forced slowdown in activity of its hospitals. Cost savings were achieved by introducing short-time work during the lockdown and simplifying the hotel services as well as negotiating with property owners or suppliers. The 5-year business plan was extended by one year and certain non-urgent investments were postponed by one year or more. In total, Swiss Medical Network limited the decline in turnover to 5.9%, or CHF 294.6 million (1H2019: CHF 313.0 million). EBITDAR fell from CHF 51.1 million in the previous year to CHF 39.4 million in the reporting period. The solid margin of 15.7% (1H2019: 19.0%) in these challenging times proves the resilience of the business model.

With the exception of technical unemployment, no compensation has for now been paid by the Confederation, the cantons or insurance companies for the losses caused by the ban on consultations and non-urgent medical interventions promulgated by the Federal Council and the ensuing measures.

Swiss Medical Network believes that this health crisis will be an additional catalyst for the healthcare services sector. Indeed, this crisis shows the importance of a well-organized care network, with strong and flexible healthcare infrastructure. Furthermore, the development of integrated care clusters is being pursued in various regions of Switzerland. The integration of Medizinisches Zentrum Biel, a large medical center with a broad array of medical specialties in the city center of Biel, in September 2020, is a good example of the Group's strategy in the Arc Jurassien. Swiss Medical Network is currently discussing possible acquisitions with several healthcare providers, mainly in outpatient activity. Also, as previously disclosed, AEVIS could progressively reduce its stake in Swiss Medical Network if new strategic investors were to come on board.

Hospitality: Higher operating result due to strong winter season

After an excellent 2019/2020 winter season, particularly in the mountain hotels, the closure of all hotels as of 19 March 2020 had a lasting impact on the results of the hospitality segment. Since the staggered reopening of four hotels (La Réserve Eden au Lac, Bellevue Palace, Grand Hotel Victoria-Jungfrau and Mont Cervin Palace), the level of activity and the average prices in the summer season 2020 were well below previous years. In addition to the lack of foreign guests, the almost complete absence of MICE business (meetings, incentives, conventions, exhibitions), especially in the Bellevue Palace in Berne, was a particular burden. Greater popularity among domestic guests and the growing restaurant business were only partially able to compensate for this decline. The Group reacted quickly and with targeted measures to the pandemic. The InterContinental in Davos and the Crans Ambassador in Crans Montana were not reopened for economic reasons while only one hotel was returned to operation in Zermatt. Additionally, with the introduction of short-time working and Group-wide personnel planning, the Group succeeded in outperforming its competitors even under difficult conditions.

The number of overnight stays rose by 13.6% to 62'238, while the average room rate remained stable at CHF 384. Revenues in the hospitality segment increased by 49.8% to CHF 43.8 million (1H2019: CHF 29.2 million) driven by the acquisitions of the Mont Cervin Palace and Monte Rosa hotels in Zermatt (consolidated since 1 November 2019) and the Hotel InterContinental in Davos (consolidated since 1 January 2020). In organic terms, the recorded decrease in revenues was 51.5%. The increase of the mountain hotel portfolio led to a positive operating result, as highlighted by an EBITDAR of CHF 5.5 million, corresponding to a margin of 12.6%.

Growing high-quality hotel real estate portfolio

In order to ensure optimum long-term cooperation between its different hotels, the real estate subsidiary Swiss Hotel Properties SA will focus on owning four- and fivestar hotels. It now controls 17 unique landmark properties in its portfolio, located in the most sought-after locations of Switzerland, totalling 92'272 sqm and 663 rooms. The total value of the portfolio amounts to approximately CHF 435 million, with yearly rental income between CHF 15 million and CHF 20 million. The properties in Zermatt, namely the Mont Cervin Palace hotel and Petit Cervin buildings, were formally added to the portfolio in July 2020, after the balance sheet date, and will reduce rental charges in the consolidated result.

Operating margin remains at a solid 12.7%

Total revenues reached CHF 346.6 million, 1.5% below the CHF 351.8 million (adjusted, excluding the investment gain of CHF 193.8 million in 2019) achieved a year ago. EBITDAR amounted to CHF 38.3 million compared to CHF 47.9 million (excluding the investment gain of 193.8 million) in the previous year. This corresponds to a very solid operating margin of 12.7% and confirms the good work that AEVIS delivered in the challenging reporting period.

Successful bond repayment

In June 2020, AEVIS repaid its CHF 55.0 million bond that reached maturity. In the reporting period, the company's balance sheet was extended to CHF 1.3 billion after the addition of further real estate assets, while it continues to be solidly capitalized with an equity ratio of 31.2%.

Outlook

The start to 2020 was encouraging in all of AEVIS's focus sectors and helped to mitigate the negative effects of the Covid-19 crisis during the spring and early summer. In recent weeks, visibility improved in the hospital segment, while developments in the hospitality sector, which contributes approximately one fifth of Group revenues, remain impossible to predict as long as the Confederation maintains its policy of quarantines with variable geometry. AEVIS is therefore refraining from publishing revenue objectives at the Group level for the remainder of 2020, but the EBITDA margin and cash flow from operating activities will remain largely positive, provided that the current trend continues and no further restrictive measures are resumed.

Capacity utilization in the hospitals is very good again since June, but the losses in revenue and margins suffered in the second quarter will not be offset until the end of the year. Swiss Medical Network benefits from its decentralised organisation and agility. Teleworking was already introduced in the Group five years ago, and the administration is largely digitised, with a cloud-based IT architecture implemented in recent years with Swisscom.

The coming months will of course continue to be challenging for the tourism and hotel industry. The Group's hotels cannot rely on additional domestic tourism to cushion the cancellations of international guests and the continuing weak MICE activities. The planning of the coming winter season is still subject to the Swiss framework policies that will be applicable, and bookings are being received more slowly and at much shorter notice than in previous years. AEVIS will probably take the opportunity of this troubled period to close several hotels and perform the planned substantial makeover and transformation works, in order to be able to reinforce its market share and remain a leader in the industry when the situation normalizes. The hotel portfolio is solely made up of the jewels of the Swiss hotel industry and its value can only continue to increase once the crisis is over.

Christian Wenger Antoine Hubert Chairman of the Board Delegate of the Board

Swiss Medical Network – Key Figures HY-2020

The network's growth path continued with the integration of Klinik Belair in Schaff hausen (4Q2019) and the two clinics of Hôpital du Jura bernois in January 2020. As such, Swiss Medical Network has extended its footprint to 21 hospitals and a network of health centres in 13 diff erent cantons in all three language regions of Switzerland.

AARGAU

I Privatklinik Villa im Park

BASEL

I Schmerzklinik Basel

BERNE

I Privatklinik Siloah I Hôpital du Jura Bernois

(35%, from 2020)

FRIBOURG

I Clinique Générale Ste-Anne

GENEVA I Clinique Générale- Beaulieu

NEUCHÂTEL

I Clinique Montbrillant
I Hôpital de la Providence

I Privatklinik Belair

SCHAFFHAUSEN

SOLOTHURN

I Privatklinik Obach

ST. GALLEN

I Rosenklinik Rapperswil (40%)

TICINO

I Clinica Sant'Anna I Clinica Ars Medica

VALAIS

I Clinique de Valère

VAUD

I Clinique de Genolier I Clinique de Montchoisi
I Clinique Valmont

NET REVENUE IN CHF MILLION

TOTAL REVENUE IN CHF MILLION

294.6

3'830

EBITDAR MARGIN

15.7%

EMPLOYEES

INTERVENTIONS 26'937

ADMITTING PHYSICIANS

2'467

1'193

BEDS

Hospitality – Key Figures HY-2020

With the acquisition of the Seiler Hotels in Zermatt (4Q2019) and the InterContinental in Davos as well as the reopening of the La Réserve Eden au Lac in Zurich in January 2020, the portfolio of operating hotels increased to eight luxury establishments in attractive locations. The portfolio is diversified between typical winter destinations, summer locations and city hotels.