Earnings Release • Sep 15, 2017
Earnings Release
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14.5% EBITDA MARGIN
PROFIT STRONGLY UP CHF 12.2M
AEVIS VICTORIA SA invests in services to people, healthcare, hospitality, life sciences and lifestyle. AEVIS VICTORIA′s main shareholdings are Swiss Medical Network SA, the second largest group of private hospitals in Switzerland, Victoria-Jungfrau Collection AG, a luxury hotel group managing five luxury hotels in Switzerland, a healthcare and hospitality real estate division, Medgate, 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).
www.aevis.com
| (In thousands of CHF | |||
|---|---|---|---|
| unless otherwise stated) | HY 2017 | HY 2016 | FY 2016 |
| Total revenue | 336'627 | 293'488 | 592'595 |
| Net revenue | 295'245 | 256'068 | 517'106 |
| EBITDAR* | 50'197 | 48'366 | 87'141 |
| EBITDAR margin | 17.0% | 18.9% | 16.9% |
| EBITDA | 42'944 | 42'175 | 74'605 |
| EBITDA margin | 14.5% | 16.5% | 14.4% |
| EBIT | 18'936 | 20'582 | 31'448 |
| EBIT margin | 6.4% | 8.0% | 6.1% |
| Profit for the period | 12'155 | 4'543 | 2'692 |
| Market price per share at end of period (in CHF) | 61.00 | 44.50 | 64.00 |
| Number of outstanding shares | 15'381'588 | 14'951'369 | 15'016'768 |
| Market capitalisation | 938'277 | 665'336 | 961'073 |
| 8 |
|---|
| 12 |
| 20 |
| Number of registered shares outstanding | 15'381'588 | 15'016'768 |
|---|---|---|
| Number of treasury shares | 116'619 | 115'639 |
| Nominal value per registered share (in CHF) | 5 | 5 |
| Number of registered shares issued | 15'498'207 | 15'132'407 |
| Share capital (in CHF) | 77'491'035 | 75'662'035 |
| 30.06.2017 | 31.12.2016 |
| 30.06.2017 | 31.12.2016 | |
|---|---|---|
| High (in CHF) | 66.40 | 64.40 |
| Low (in CHF) | 54.00 | 37.50 |
| End price (in CHF) | 61.00 | 64.00 |
| Average volume per day (in units) | 1'255 | 1'692 |
| Market capitalisation (in CHF) | 938'276'868 | 961'073'152 |
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).
| Valor symbol: | AEVS | Bloomberg: | AEVS SW Equity |
|---|---|---|---|
| Valor no.: | 1248819 | Reuters: | AEVS.S. |
| ISIN: | CH0012488190 |
| AEV13 | AEV14 | AEV16 | AEV161 | |
|---|---|---|---|---|
| Bond type | Fixed rate | Fixed rate | Fixed rate | Fixed rate |
| Nominal amount | CHF 100.0 million | CHF 145.0 million | CHF 150.0 million | CHF 145.0 million |
| Securities number | CH0214926096 | CH0240109592 | CH0325429162 | CH0337829276 |
| Interest rate | 3.50% | 2.75% | 2.50% | 2.00% |
| Term | 02.07.2013 to 02.07.2018 |
04.06.2014 to 04.06.2019 |
07.06.2016 to 07.06.2021 |
19.10.2016 to 19.10.2022 |
| Maturity | 02.07.2018 at par value |
04.06.2019 at par value |
07.06.2021 at par value |
19.10.2022 at par value |
AEVIS VICTORIA SA has issued four fixed rate bonds shown in the table below.
The following shareholders held more than 3% on 30 June 2017.
| Total shareholders (30 June 2017) | 1'708 |
|---|---|
| of the State of Kuwait | |
| Kuwait Investment Office as agent for the Government | 3.44% |
| Services and Investments SA | |
| Group Hubert/Reybier/M.R.S.I. Medical Research, | 78.02% |
| November 2017 | Publication of 3Q 2017 Revenue |
|---|---|
| March 2018 | Publication of 2017 Revenue |
| 29 March 2018 | Publication of the 2017 Annual Results |
| May 2018 | Publication of 1Q 2018 Revenue |
| 24 May 2018 | Ordinary general shareholders meeting for the year 2017 |
| 14 September 2018 | Publication of the 2018 Half-Year Results |
| November 2018 | Publication of 3Q 2018 Revenue |
| Computershare Schweiz AG | |
|---|---|
| Tel. +41 62 205 77 00 | |
| [email protected] |
| c/o Dynamics Group AG | |
|---|---|
| Philippe Blangey | |
| Tel +41 43 268 32 32 | |
| [email protected] |
As an investment company, AEVIS VICTORIA SA (AEVIS VICTORIA) realises income in two ways – through the operational activities of its fully consolidated subsidiaries and through gains or dividends on investments in unconsolidated companies. In the first half of 2017, revenues from operations increased by 14.7% from CHF 293.5 million to CHF 336.6 million, mainly due to the integration of Clinique Générale-Beaulieu in Geneva into Swiss Medical Network in late 2016. During the reporting period, AEVIS VICTORIA proceeded with two divestments, which resulted in a financial gain on investments of CHF 11.7 million. The 11.9% stake in LifeWatch AG was sold to Biotelemetry and a minority shareholding in Linde Holding Biel/Bienne AG was sold to the Hirslanden Group. A net profit of CHF 12.2 million was achieved for the period, in comparison to a net profit of CHF 4.5 million in the first half of 2016. The surge in profitability is expected to be sustained and will allow the company to propose an increased distribution to its shareholders at next year's Annual General Meeting.
Total revenues of Swiss Medical Network reached CHF 301.7 million, up from CHF 259.2 million in the previous year, representing a growth of 16.4%. The increase was mainly due to the integration of Clinique Générale-Beaulieu in Geneva during the last quarter of 2016. Net revenues, excluding medical fees, grew by 17.4% from CHF 222.2 million last year to CHF 260.8 million in the reporting period. The hospital segment generated an EBITDAR of CHF 54.4 million, a plus of 8.1% compared to the CHF 50.3 million achieved in the first half of 2016. The cash flow from operating activities of Swiss Medical Network nearly doubled from CHF 8.9 million to CHF 17.5 million.
AEVIS VICTORIA realised a financial gain on investments of CHF 11.7 million
Swiss Medical Network continues to work closely with various stakeholders in the Swiss healthcare system in order to improve processes, create new, innovative insurance models and drive change in the regulations, in the best interest of the patients. The Group was actively involved in the discussions regarding the revision of the TARMED System and contributed to it with a study realised in collaboration with PricewaterhouseCoopers. The study detailed the possible effects on the system of a shift from inpatient to more outpatient treatments. Swiss Medical Network continues to work on the establishment of strategic alliances with the public system in various cantons in order to further improve the positioning of the respective hospitals. The new TARMED regime will put further pressure on the system as a whole and we expect it to lead to a new round of consolidation. As the second largest network of private hospitals in Switzerland, Swiss Medical Network is certain to profit from this trend, especially in outpatient surgery.
The Victoria-Jungfrau Collection hotels performed well during the reporting period despite numerous challenges affecting the tourism industry in Switzerland. Net revenues for the five hotels (4 fully consolidated; management fees for the Palace in Lucerne) reached CHF 28.8 million, 7.9% more than in the previous year, based on a well-diversified customer portfolio and the addition of the Crans-Ambassador to the portfolio in December 2016. Additional customers came from the United States and China, while the number of guests coming from the Middle East and Switzerland remained nearly unchanged. Fewer arrivals were noted from Great Britain, Japan and Thailand. In total, the number of overnight stays remained at the previous year's level. The gross operating profit surged significantly as the Average Room Rate increased by 5.0% from CHF 340 to CHF 357. EBITDAR reached CHF 3.3 million, corresponding to an EBITDAR margin of 11.3%, compared to CHF 3.0 million and 11.2% a year ago. The first half-year is historically the weaker semester for Victoria-Jungfrau Collection due to seasonality.
New rooms at the Victoria-Jungfrau Grand Hotel & Spa in Interlaken and the Bellevue Palace in Berne contributed to the higher room rates. An additional 42 renovated rooms, all of them with contemporary features, will be made available in Interlaken by the end of the year. Renovation plans for the Eden au Lac have been finalised. The hotel will close in late 2017 for a radical makeover by worldclass designer Philippe Starck and re-open in 2018. The fully modernised lakefront hotel will be a new product for Zurich and offer state-of-the-art city restaurant and hotel experiences. The Palace in Lucerne will also close for a major renovation lasting until 2019. Nevertheless, a management fee will remain applicable during this phase. The Crans-Ambassador will be repositioned to exploit market opportunities in the well-known resort of Crans-Montana. The team is being built-up and a new manager has been hired since April to lead the hotel through the coming winter season.
In the real estate segment, net income amounted to CHF 29.3 million (HY 2016: CHF 25.6 million), to which Swiss hospital-related real estate (mainly the hospital buildings used by Swiss Medical Network) contributed CHF 25.5 million and Swiss Hospitality Properties (the hotel buildings owned by the Group) contributed CHF 3.8 million. EBITDAR increased to CHF 24.8 million, corresponding to an EBITDAR margin of 84.7%, compared to CHF 23.8 million in the previous year. The market value of the 44 properties with a rental surface of 193'880 sqm reached CHF 1.15 billion (based on a Wüest Partner appraisal at the end of December 2016). All properties were fully let at the end of the reporting period. The loan to value remains very low at 34.9% and the average interest on mortgages was 1.72% at the end of June 2017.
In order to meet the expected future demand and maintain the high standard of the properties, development projects on various sites are being conducted or evaluated. The construction of an additional building in Rothrist for Privatklinik Villa im Park started in April 2017. The new building will increase the rental floor space by 2'300 sqm and offer 28 rooms and 3 operating theatres, as well as an underground parking with 90 places. In Zurich, on a plot of 4'623 sqm adjacent to Privatklinik Bethanien, old buildings will be replaced by a new structure, adding approximately 7'000 sqm to the hospital. Municipality approval was received for a zoning change in Genolier (an additional 15'000 sqm) while progress was made with the commune and the State of Ticino regarding a new land use plan, enabling the expansion of Clinica Ars Medica in Gravesano. In Lindberg, the possibility to start building an additional 11'000 sqm is nearing finalisation.
AEVIS VICTORIA SA invests in various other activities along the value chain of its main divisions. Although these ventures account for a small portion of total revenues, they reflect the Group's vision of becoming an integrated healthcare provider with holdings in various complementary fields. In the first six months of 2017, revenues of CHF 5.2 million (HY 2016: CHF 5.6 million) resulted in this incubator segment (without Medgate, which is not consolidated). Despite the sale of LifeWatch, AEVIS VICTORIA believes that telemedicine and eHealth solutions will shape the future of medicine and that investments in leading companies in this field usefully complement its portfolio of solutions for a better life. AEVIS VICTORIA therefore works closely together with Medgate, the leading provider of integrated outpatient healthcare in Switzerland, to develop new innovative solutions both for the Swiss market and internationally.
AEVIS VICTORIA launched a public takeover bid for all publicly held registered shares of LifeWatch AG (LifeWatch) in early 2017. On 9 April 2017, BioTelemetry communicated a competing offer for LifeWatch that was subsequently revised. The improved offer of BioTelemetry gave shareholders of LifeWatch the option of receiving either CHF 10.00 in cash and 0.1617 shares of BioTelemetry stock or CHF 8.00 in cash and 0.2350 shares of BioTelemetry stock. As a consequence, AEVIS VICTORIA decided not to increase its offer price but to tender all its 2'207'089 owned shares of LifeWatch to the revised public offer of BioTelemetry. The sale of 11.9% of LifeWatch to BioTelemetry generated a financial profit of CHF 10.0 million and AEVIS VICTORIA retained a 1.6% shareholding in US-based Biotelemetry (BEAT).
AEVIS VICTORIA is convinced that LifeWatch will benefit from the support of a reference shareholder like Biotelemetry with a strong presence in the health sector. The American and European telemedicine markets present a strong potential, due in part to changes in demographics and the public health sector. AEVIS VICTORIA therefore kept its position in Biotelemetry to profit from expected value creation potential. Since the start of the second semester, the position has gained approximately CHF 2.8 million in value.
Substantial funds available for further expansion projects and acquisitions
In May 2017 AEVIS VICTORIA, through its subsidiary Swiss Medial Network, submitted an acquisition offer in cash or shares to all shareholders of Linde Holding Biel/Bienne AG, owner of Clinique des Tilleuls in Bienne. The Hirslanden Group launched a counteroffer and the subsequent bidding process ended with the decision of a majority of Linde Holding's shareholders to accept Hirslanden's offer. As a consequence, Swiss Medical Network sold its entire minority stake in Linde Holding Biel/Bienne AG to Hirslanden, resulting in a financial profit of CHF 1.6 million.
AEVIS VICTORIA has substantial funds available for further expansion projects and acquisitions. On top of a CHF 120 million credit line, the Annual General Meeting on 13 June 2017 approved the extension and increase of the authorised capital. The Board is thus authorised to increase the share capital by a nominal value of maximum CHF 37.8 million until 12 June 2019. This will allow AEVIS VICTORIA to make targeted acquisitions in the quarters ahead and support its existing portfolio companies. Each of the three main subsidiaries is well positioned and financially able to be an active participant in the expected future consolidation waves.
In general, the investment strategy of AEVIS VICTORIA is based on the acquisition of participations in private and public companies with promising strategies or products that are in line with its "services to people" investment focus. AEVIS VICTORIA therefore takes an active investment approach for each participation and always tries to build up participations around comprehensive industry platforms, networks and knowhow. It is closely involved in the development of its participations on an operational, strategic and financial level. Having a long-term investment horizon, AEVIS VICTORIA pursues an indirect exit strategy by combining its participations with larger strategic market players.
AEVIS VICTORIA will pursue its optimisation, acquisition and collaboration strategy in its expertise areas. Several projects are currently being evaluated. Based on an unchanged portfolio, AEVIS VICTORIA expects to realise a total revenue of more than CHF 700 million and an EBITDAR of more than CHF 100 million in 2017.
Fribourg, 15 September 2017
Christian Wenger Antoine Hubert Chairman of the Board Delegate of the Board
The network's growth path continued after the successful integrasurged by 17.4% to CHF 260.8 million in the reporting period com-
INTERVENTIONS (ON AN AN NUAL BASIS)
52′785
12 Swiss Medical Network l Hospitals
Swiss Medical Network, founded in 2002, is one of Switzerland′s leading private hospitals groups. Its hospitals, which are located in all three of the country′s main language regions, provide first-class hospital treatment, care and assistance to patients from Switzerland and abroad.
All Swiss Medical Network hospitals are renowned for the quality of their services, their excellent medical facilities, their top-notch hotellerie and their pleasant ambience. With their state-of-the-art medical technology and their comprehensive specialist expertise, the hospitals of Swiss Medical Network offer reliable medical care of the very highest calibre which puts the patient′s comfort and well-being firmly centre stage.
Swiss Medical Network continues to develop and expand its Swiss-wide network by acquiring and restructuring further hospital facilities. The network currently extends to 16 private institutions and one affiliated hospital in Switzerland, which count 1'969 doctors and employ 3'017 other personnel. Swiss Medical Network is linked with Klinik Pyramide am See AG, which operates a hospital in the canton of Zürich.
The medical competences of the Swiss Medical Network hospitals are recognised beyond the Swiss borders with, for example, the first Breast Centre of a group of private hospitals to be certified in French speaking Switzerland, a pain clinic in Basel, expertise and high-tech oncology equipment and recognised maternity wards.
Swiss Medical Network SA is a fully-owned subsidiary of AEVIS VICTORIA.
www.swissmedical.net
again proved advantageous in times where travel destinations change quickly.
The Victoria-Jungfrau Collection is a small but exclusive hotel group with a unique portfolio of luxury five-star hotels of long standing. The Victoria-Jungfrau Grand Hotel & Spa in Interlaken and the Palace Luzern on the shores of Lake Lucerne were joined as members of the Victoria-Jungfrau Collection by the Eden au Lac in Zurich in November 2005 and the renowned Bellevue Palace in Bern in January 2007. The latest hotel to have joined the Collection is the Crans Ambassador Hotel in Crans-Montana.
All hotels are individually managed but share a commitment to personal hospitality and top-quality service. The historic establishments with Swiss tradition offer luxurious accommodation, gourmet cuisine, wellness and contemporary infrastructure to their guests. The Victoria-Jungfrau Collection yearly counts around 170′000 overnight bookings.
AEVIS VICTORIA owns 100% of the Interlaken based luxury hotel group.
www.vjc.ch
corresponds to inter-company payments with AEVIS VICTORIA's hospital and hospitality segments.
Swiss Healthcare Properties AG (SHP I), founded in 1997, is a unique healthcarerelated real estate company in Switzerland. The portfolio of SHP I, with a market value of CHF 779.4 million and a rental surface of 133′318 sqm consists of 33 quality entities situated in premium locations. All properties are fully let, mainly to the various Swiss Medical Network hospitals, and have been bought or constructed in the context of the development of the group. SHP I′s properties present a development potential of 35′000 sqm. SHP I has a buy/build & hold strategy with a long-term perspective of ongoing renovation and maintenance programs.
The real estate company is committed over the long-term to the hospital′s operations growth but also aims to realise healthcare-related real estate acquisitions with reliable operators outside the Swiss Medical Network. SHP I is a 100% subsidiary of AEVIS VICTORIA.
Générale-Beaulieu Immobilière SA owns the hospital premises of Clinique-Générale-Beaulieu as well as several other buildings surrounding the hospital. The three properties represent a rental surface of 18′990 sqm and a market value of CHF 190.8 million.
Swiss Hospitality Properties (SHP II) in Interlaken AG owns the buildings of the hotels Eden au Lac in Zurich and Victoria-Jungfrau Grand Hotel & Spa in Interlaken, as well as six smaller annex properties in Interlaken. The 8 properties represent a rental surface of 41′572 sqm and a market value of CHF 178.1 million. SHP II is a 100% subsidiary of AEVIS VICTORIA.
www.shp.net
| Revenue from operations 331'122 289'086 Other revenue 5'505 4'402 Total revenue 336'627 External services (41'382) (37'420) Net revenue 295'245 Production expenses (66'864) (57'081) Personnel expenses (135'241) (114'970) Other operating expenses (42'943) (35'651) EBITDAR (Earnings before interest, taxes, 50'197 depreciation, amortisation and rental expenses) Rental expenses (7'253) (6'191) EBITDA 42'944 Depreciation on tangible assets (20'909) Amortisation on intangible assets (3'099) EBIT 18'936 Financial result 6 (1'740) (12'005) Share of profit / (loss) of associates (776) (325) Ordinary result 16'420 Extraordinary result – (27) Profit before taxes 16'420 Income taxes (4'265) Profit for the period 12'155 – Thereof attributable to shareholders of AEVIS VICTORIA SA 10'075 – Thereof attributable to minority interests 2'080 Non-diluted earnings per share (in CHF) 7 0.67 Diluted earnings per share (in CHF) 7 0.64 |
(In thousands of CHF) | NOTES | HY 2017 | HY 2016 |
|---|---|---|---|---|
| 293'488 | ||||
| 256'068 | ||||
| 48'366 | ||||
| 42'175 | ||||
| (19'333) | ||||
| (2'260) | ||||
| 20'582 | ||||
| 8'252 | ||||
| 8'225 | ||||
| (3'682) | ||||
| 4'543 | ||||
| 4'196 | ||||
| 347 | ||||
| 0.28 | ||||
| 0.27 |
| (In thousands of CHF) | 30.06.2017 | 31.12.2016 | |
|---|---|---|---|
| Assets | |||
| Cash and cash equivalents | 9'001 | 15'207 | |
| Marketable securities | 2 | 9'829 | |
| Trade receivables | 106'272 | 113'381 | |
| Other receivables | 61'677 | 40'147 | |
| Inventories | 19'457 | 19'201 | |
| Accrued income and prepaid expenses | 35'557 | 35'108 | |
| Total current assets | 231'966 | 232'873 | |
| Fixed assets | 1'387'009 | 1'377'935 | |
| Intangible assets | 38'019 | 40'249 | |
| Financial assets | 67'663 | 68'704 | |
| Total non-current assets | 1'492'691 | 1'486'888 | |
| Total assets | 1'724'657 | 1'719'761 | |
| Liabilities and equity | |||
| Trade payables | 81'502 | 92'371 | |
| Other current liabilities | 24'095 | 19'398 | |
| Short-term financial liabilities | 18'087 | 23'172 | |
| Other short-term borrowings | 800 | 800 | |
| Accrued expenses and deferred income | 48'527 | 43'662 | |
| Short-term provisions | 282 | 282 | |
| Total current liabilities | 173'293 | 179'685 | |
| Long-term financial liabilities | 988'955 | 993'125 | |
| Other long-term borrowings | 16'340 | 16'270 | |
| Other non-current liabilities | 11'173 | 13'919 | |
| Long-term provisions | 133'573 | 135'262 | |
| Total non-current liabilities | 1'150'041 | 1'158'576 | |
| Total liabilities | 1'323'334 | 1'338'261 | |
| Equity | |||
| Share capital | 77'491 | 75'662 | |
| Capital reserves | 254'735 | 245'945 | |
| Treasury shares | (5'829) | (5'630) | |
| Offset goodwill | (30'456) | (30'370) | |
| Currency translation differences | (971) | (1'077) | |
| Retained earnings | 36'531 | 26'198 | |
| Shareholders' equity excl. minority interests | 331'501 | 310'728 | |
| Minority interests | 69'822 | 70'772 | |
| Shareholders' equity incl. minority interests | 401'323 | 381'500 | |
| Total liabilities and equity | 1'724'657 | 1'719'761 |
| (In thousands of CHF) | Capital Share |
Reserves Capital |
Treasury Shares |
Goodwill Offset |
Translation Differences Currency |
Retained Earnings |
Total Excl. Minority Interests |
Minority Interests |
Total Incl. Minority Interests |
|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2016 | 75'176 | 251'075 | (1'075) | (45'548) | (990) | 24'021 | 302'659 | (176) | 302'483 |
| Changes in accounting principles | – | – | – | (1'932) | – | – | (1'932) | – | (1'932) |
| Balance at 1 January 2016 (restated) | 75'176 | 251'075 | (1'075) | (47'480) | (990) | 24'021 | 300'727 | (176) | 300'551 |
| Profit for the period | – | – | – | – | – | 4'196 | 4'196 | 347 | 4'543 |
| Purchase of treasury shares | – | – | (13'611) | – | – | – | (13'611) | – | (13'611) |
| Sale of treasury shares | – | 78 | 11'148 | – | – | – | 11'226 | – | 11'226 |
| Share-based payments | – | 265 | – | – | – | – | 265 | – | 265 |
| Currency translation differences | – | – | – | – | (2) | – | (2) | – | (2) |
| Balance at 30 June 2016 (restated) | 75'176 | 251'418 | (3'538) | (47'480) | (992) | 28'217 | 302'801 | 171 | 302'972 |
| Balance at 1 January 2017 | 75'662 | 245'945 | (5'630) | (30'370) | (1'077) | 26'198 | 310'728 | 70'772 | 381'500 |
| Profit for the period | – | – | – | – | – | 10'075 | 10'075 | 2'080 | 12'155 |
| Dividend payments | – | – | – | – | – | – | – | (147) | (147) |
| Capital increase | 1'829 | 8'391 | – | – | – | – | 10'220 | – | 10'220 |
| Acquisition of subsidiaries | – | – | – | (86) | – | – | (86) | – | (86) |
| Purchase of minority interests | – | – | – | – | – | 258 | 258 | (2'883) | (2'625) |
| Purchase of treasury shares | – | – | (1'403) | – | – | – | (1'403) | – | (1'403) |
| Sale of treasury shares | – | 147 | 1'204 | – | – | – | 1'351 | – | 1'351 |
| Share-based payments | – | 252 | – | – | – | – | 252 | – | 252 |
| Currency translation differences | – | – | – | – | 106 | – | 106 | – | 106 |
| Balance at 30 June 2017 | 77'491 | 254'735 | (5'829) | (30'456) | (971) | 36'531 | 331'501 | 69'822 | 401'323 |
| (In thousands of CHF) | HY 2017 | HY 2016 |
|---|---|---|
| Profit for the period | 12'155 | 4'543 |
| Changes in provisions (incl. deferred taxes) | (1'696) | (1'043) |
| Depreciation and amortisation | 24'008 | 21'593 |
| (Gain)/loss from sale of fixed assets | 19 | 16 |
| (Gain)/loss from sale of subsidiaries | – | (4) |
| (Gain)/loss from sale of financial assets and marketable securities | (11'651) | – |
| Share of (profit)/loss from associates | 776 | 325 |
| Dividends received from associates | – | 252 |
| Share-based payments | 252 | 265 |
| Change in contribution reserve and other non-cash items | (177) | (189) |
| Cash flow from operating activities before changes in working capital | 23'686 | 25'758 |
| Change in trade receivables | 7'109 | (3'584) |
| Change in inventories | (542) | 722 |
| Change in other receivables and prepaid expenses | (21'954) | 2'151 |
| Change in trade payables | (10'876) | (14'639) |
| Change in other liabilities and accrued expenses | 10'043 | 18'566 |
| Cash flow from operating activities | 7'466 | 28'974 |
| Purchase of fixed assets | (21'980) | (25'018) |
| Proceeds from disposal of fixed assets | 66 | 27 |
| Purchase of intangible assets | (2'206) | (2'012) |
| Acquisition of subsidiaries, net of cash acquired | (79) | (2'300) |
| Divestment of subsidiaries, net of cash disposed | – | 3 |
| Investments in financial assets and marketable securities | (9'224) | (22'084) |
| Divestments of financial assets and marketable securities | 30'092 | 25 |
| Cash flow from investing activities | (3'331) | (51'359) |
| Dividends paid to minority interests | (147) | – |
| Proceeds from issuance of share capital, net of costs | 10'220 | – |
| Proceeds from issuance of bond | – | 150'000 |
| Sale/(purchase) of treasury shares | (53) | (9'386) |
| Change in minority interests | (2'625) | – |
| Change in short-term financial liabilities | (5'097) | (5'087) |
| Change in long-term financial liabilities | (10'509) | (118'069) |
| Change in other long-term liabilities and borrowings | (2'133) | 34 |
| Cash flow from financing activities | (10'344) | 17'492 |
| Currency translation effect on cash and cash equivalents | 3 | 2 |
| Change in cash and cash equivalents | (6'206) | (4'891) |
| Cash and cash equivalents at beginning of the period | 15'207 | 13'068 |
| Cash and cash equivalents at the end of the period | 9'001 | 8'177 |
AEVIS VICTORIA SA (hereafter "The Company") has its registered offices at 1700 Fribourg, Switzerland. The Company's purpose consists of holding interests in financial, commercial and industrial enterprises in Switzerland and abroad, in areas such as medical treatment, healthcare and hotels.
These consolidated financial statements cover the unaudited interim results for the six months ended 30 June 2017. They have been prepared in accordance with Swiss GAAP FER 31 "Supplementary recommendation for listed companies". They comply with the Swiss law and with the listing rules of the SIX Swiss Exchange.
The Swiss GAAP FER apply to all companies included in the scope of consolidation. As the consolidated interim financial statements do not include all the information contained in the consolidated annual financial statements, they should be read in conjunction with the consolidated financial statements for the year ended 31 December 2016.
The consolidated interim financial statements were authorised for issue by the Board of Directors on 14 September 2017.
The consolidated interim financial statements are those of the Company and all subsidiaries in which the company holds either directly or indirectly more than 50% of the voting rights (together "The Group"). These entities are fully consolidated. Joint ventures in which the Company has a direct or indirect interest of 50% or for which the Company exercises joint control are included in the consolidated financial statements by applying the proportional consolidation method. Associates are those entities in which the Group has significant influence, but no control (between 20% and 50% of voting rights). Associates are included in the consolidated financial statements by applying the equity method.
The assets and liabilities of fully consolidated and associated companies included in the consolidation for the first time are valued at current values which do include a purchase price allocation. The goodwill arising from this revaluation is offset against equity.
The clarification of the goodwill accounting in the Annual Report of 2016 resulted in a restatement of the interim consolidated statement of changes in equity of 2016 (CHF 1.9 million).
The Group has applied the same accounting policies as described in the 2016 Annual Report.
The following changes to the scope of consolidation took place in the first half of 2017:
| CAPITAL SHARE | CAPITAL SHARE | ||
|---|---|---|---|
| ENTITY | EVENT / DATE | 30.06.2017 | 31.12.2016 |
| GENERALE BEAULIEU HOLDING SA | Increase in participation during 2017 | 69.39% | 67.99% |
| Swiss Stem Cell Science SA | Increase in participation on 10.03.2017 | 100.00% | 70.00% |
GENERALE BEAULIEU HOLDING SA is a holding company with several subsidiaries. All group companies are listed in note 9.
As a result of higher activity levels in the Hospitality segment during the second half year, the Hospitality segment could generate higher revenues and margins then in the first half year. This seasonality effect has an impact on the revenues and operating results of the Group. For the other segments, the seasonality effect is more equally spread over the entire year.
The Group consists of the reported segments in the tables below. The decision makers measure the performance of the segments using the key figure EBITDAR (Earnings before interest, taxes, depreciation, amortisation and rent). Thus, the financial information for each segment is shown up to EBITDAR. For reconciliation purposes between the consolidated financial statements and the segment information, the key figure EBITDAR is also disclosed in the consolidated income statement of the Group.
| HY 2017 | HOSPITA | REAL | CORPO | ELIMINA | |||
|---|---|---|---|---|---|---|---|
| (In thousands of CHF) | HOSPITALS | LITY | ESTATE | OTHERS | RATE | TIONS | TOTAL |
| Net revenue 3rd | 259'216 | 28'498 | 2'560 | 4'971 | – | – | 295'245 |
| Net revenue IC | 1'583 | 279 | 26'770 | 216 | 110 | (28'958) | – |
| Net revenue | 260'799 | 28'777 | 29'330 | 5'187 | 110 | (28'958) | 295'245 |
| Production expenses | (61'592) | (4'504) | – | (849) | – | 81 | (66'864) |
| Personnel expenses | (111'233) | (16'332) | (215) | (4'428) | (3'033) | – | (135'241) |
| Other operating expenses | (33'586) | (4'676) | (4'271) | (1'314) | (1'204) | 2'108 | (42'943) |
| EBITDAR* | 54'388 | 3'266 | 24'844 | (1'404) | (4'127) | (26'769) | 50'197 |
| EBITDAR margin | 20.9% | 11.3% | 84.7% | – | – | – | 17.0% |
| HY 2016 | HOSPITA | REAL | CORPO | ELIMINA | |||
|---|---|---|---|---|---|---|---|
| (In thousands of CHF) | HOSPITALS | LITY | ESTATE | OTHERS | RATE | TIONS | TOTAL |
| Net revenue 3rd | 222'204 | 26'649 | 1'731 | 5'480 | 4 | – | 256'068 |
| Net revenue IC | 6 | 21 | 23'884 | 120 | 128 | (24'160) | – |
| Net revenue | 222'210 | 26'670 | 25'615 | 5'600 | 132 | (24'160) | 256'068 |
| Production expenses | (52'018) | (4'252) | – | (847) | – | 36 | (57'081) |
| Personnel expenses | (92'663) | (14'928) | (152) | (5'040) | (2'187) | – | (114'970) |
| Other operating expenses | (27'202) | (4'513) | (1'615) | (1'633) | (928) | 240 | (35'651) |
| EBITDAR* | 50'327 | 2'977 | 23'848 | (1'920) | (2'983) | (23'884) | 48'366 |
| EBITDAR margin | 22.6% | 11.2% | 93.1% | – | – | – | 18.9% |
* Earnings before interest, taxes, depreciation, amortisation and rent
| (In thousands of CHF) | HY 2017 | HY 2016 |
|---|---|---|
| Interest income | 32 | 62 |
| Gain on sale of financial assets and marketable securities | 11'700 | – |
| Other financial income | 102 | 88 |
| Total financial income | 11'834 | 150 |
| Interest expenses | (12'839) | (11'677) |
| Loss on sale of marketable securities | (49) | – |
| Other financial expenses | (686) | (478) |
| Total financial expenses | (13'574) | (12'155) |
| Financial result | (1'740) | (12'005) |
The change compared to prior year mainly results from the gain on sale of investments in unconsolidated companies (LifeWatch AG, Zug and Linde Holding Biel/ Bienne AG, Biel)
For the calculation of earnings per share, the number of shares has been reduced by the weighted average number of shares held by the Group.
| HY 2017 | HY 2016 | |
|---|---|---|
| Net profit attributable to AEVIS VICTORIA SA shareholders (in thousands of CHF) |
10'075 | 4'196 |
| Weighted average number of shares outstanding | 15'147'285 | 14'998'240 |
| Non-diluted earnings per share (in CHF) | 0.67 | 0.28 |
| Net profit attributable to AEVIS VICTORIA SA shareholders (in thousands of CHF) |
10'075 | 4'196 |
| Weighted average number of shares outstanding | 15'147'285 | 14'998'240 |
| Adjustment for assumed exercise of share-based payments | 510'000 | 698'000 |
| Weighted average potential number of shares outstanding | 15'657'285 | 15'696'240 |
| Diluted earnings per share (in CHF) | 0.64 | 0.27 |
There are no subsequent events between the balance sheet date and the authorisation for issue by the Board of Directors.
| IN % ON GROUP LEVEL | ||||||
|---|---|---|---|---|---|---|
| SEGMENT / COMPANY NAME | LOCATION | ACTIVITY | 30.06.2017 | 31.12.2016 | ||
| Corporate | ||||||
| AEVIS VICTORIA SA | Fribourg | Holding company | a) | 100.0% | 100.0% | |
| Hospitals | ||||||
| Swiss Medical Network SA | Genolier | Holding company | a) | 100.0% | 100.0% | |
| GENERALE BEAULIEU HOLDING SA | Geneva | Holding company | a) | 69.4% | 68.0% | |
| Centre Médico-Chirurgical des Eaux-Vives SA | Geneva | Day clinic | a) | 100.0% | 100.0% | |
| CLINIQUE GENERALE-BEAULIEU SA | Geneva | Hospital | a) | 69.4% | 68.0% | |
| Clinique Générale - Ste-Anne SA | Fribourg | Hospital | a) | 100.0% | 100.0% | |
| Clinique médico-chirurgicale de Valère SA | Sion | Hospital | a) | 94.7% | 94.7% | |
| Genolier Swiss Visio Network SA | Genolier | Ophthalmology | a) | 80.0% | 80.0% | |
| GRGB Santé SA | Geneva | Hospital | b) | 34.7% | 34.0% | |
| GSMN Neuchâtel SA | Neuchâtel | Hospitals | a) | 100.0% | 100.0% | |
| GSMN Suisse SA (1) | Genolier | Hospitals | a) | 100.0% | 100.0% | |
| GSMN Ticino SA | Sorengo | Hospitals | a) | 100.0% | 100.0% | |
| IRJB Institut de Radiologie du Jura Bernois SA | Saint-Imier | Radiology institute | a) | 51.0% | 51.0% | |
| IRP Institut de Radiologie Providence SA | Neuchâtel | Radiology institute | a) | 51.0% | 51.0% | |
| Klinik Pyramide am See AG | Zurich | Hospital | c) | 20.0% | 20.0% | |
| Klinik Villa im Park AG | Rothrist | Hospital | a) | 100.0% | 100.0% | |
| Nescens Genolier SA | Genolier | Patient hotel | a) | 100.0% | 100.0% | |
| Privatklinik Obach AG | Solothurn | Hospital | a) | 100.0% | 100.0% | |
| Schmerzklinik Basel AG | Basel | Hospital | a) | 100.0% | 100.0% | |
| Hospitality | ||||||
| Victoria-Jungfrau Collection AG | Interlaken | Holding company | a) | 100.0% | 100.0% | |
| CACM hôtels SA | Sion | Hotel | a) | 100.0% | 100.0% | |
| Grand Hotel Victoria-Jungfrau AG | Interlaken | Hotel | a) | 100.0% | 100.0% | |
| Hotel Bellevue Palace AG | Bern | Hotel | a) | 100.0% | 100.0% | |
| Hotel Eden au Lac AG | Zurich | Hotel | a) | 100.0% | 100.0% | |
| VJC-Management AG | Interlaken | Management | a) | 100.0% | 100.0% | |
| Real estate | ||||||
| GENERALE-BEAULIEU IMMOBILIERE SA | Geneva | Healthcare real estate | a) | 69.4% | 68.0% | |
| Patrimonium Healthcare Property Advisors AG | Baar | Real estate management | b) | 50.0% | 50.0% | |
| Swiss Healthcare Properties SA | Fribourg | Healthcare real estate | a) | 100.0% | 100.0% | |
| Swiss Hospitality Properties AG (2) | Interlaken | Hospitality real estate | a) | 100.0% | 100.0% | |
| Prolival SA (merged) (2) | Vouvry | Real estate | a) | – | – |
1) GSMN Suisse SA does mainly operate in the Hospitals segment. Additionally, the company does also provide services for the entire group which are disclosed under the Corporate segment in the Segment information (see note 5).
2) Prolival SA was merged in March 2017 into Swiss Hospitality Properties AG with retroactive effect from 31.12.2016.
| SEGMENT / COMPANY NAME | LOCATION | ACTIVITY | 30.06.2017 | 31.12.2016 | |
|---|---|---|---|---|---|
| Telemedicine | |||||
| Medgate Holding AG | Zug | Holding company | c) | 40.00% | 40.00% |
| Medgate Integrated Care Holding AG | Zug | Holding company | c) | 40.00% | 40.00% |
| Medgate AG | Basel | Telemedicine | c) | 24.00% | 24.00% |
| Health Professional Sourcing GmbH | Lörrach (DE) | Telemedicine | c) | 24.00% | 24.00% |
| Medgate Asia-Pacific AG | Zug | Telemedicine | c) | 40.00% | 40.00% |
| Medgate Health Centers AG | Basel | Health centers | c) | 40.00% | 40.00% |
| Medgate International AG | Zug | Telemedicine | c) | 40.00% | 40.00% |
| Medgate Technologies AG | Zug | IT service company | c) | 24.00% | 24.00% |
| Others | |||||
| Healthcare incubator | |||||
| Laboratoires Genolier SA | Genolier | Cosmetics | a) | 84.0% | 84.0% |
| NESCENS SA | Genolier | Better-aging | c) | 36.2% | 36.2% |
| Société Clinique Spontini SAS | Paris (FR) | Aesthetic clinic | a) | 100.0% | 100.0% |
| Swiss Ambulance Rescue Genève SA | Geneva | Ambulance services | a) | 93.4% | 93.4% |
| Swiss Stem Cell Science SA | Fribourg | Stem Cells | a) | 100.0% | 70.0% |
| Non-core participations | |||||
| Academy & Finance SA | Geneva | Organisation of seminars | c) | 22.5% | 22.5% |
| Agefi Com SA | Geneva | Publishing | c) | 49.0% | 49.0% |
| Publications de l'économie et de la finance AEF SA |
Lausanne | Publishing | c) | 49.0% | 49.0% |
| Publications Financières LSI SA | Geneva | Publishing (dormant) | a) | 100.0% | 100.0% |
a) Fully consolidated
b) Proportional method
c) Equity method
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