Interim / Quarterly Report • Sep 27, 2016
Interim / Quarterly Report
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AEVIS VICTORIA SA Half-year Report 2016
AEVIS VICTORIA invests in services to people, healthcare, hospitality, life sciences and lifestyle. AEVIS′s main shareholdings are Swiss Medical Network SA, one of Switzerland′s two leading private hospitals groups, Victoria-Jungfrau Collection AG, a hotel group operating four luxury hotels in Switzerland, a hospitals and hospitality real estate division comprising 41 properties, 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) and included in the Swiss Performance Index (SPI), the SXI Life Sciences Index (SLIFE) and the SXI Bio+Medtech Index (SBIOM).
www.aevis.com
| (In thousands of CHF unless otherwise stated) | HY 2016 | HY 2016 Normalised |
HY 2015 Restated |
FY 2015 Restated |
|---|---|---|---|---|
| Total revenue | 293'488 | 297'279 | 289'906 | 576'057 |
| Net revenue | 256'068 | 259'859 | 254'903 | 508'606 |
| EBITDAR | 48'366 | 52'956 | 39'917 | 78'452 |
| EBITDAR margin | 18.9% | 20.4% | 15.7% | 15.4% |
| EBITDA | 42'175 | 46'931 | 32'987 | 64'513 |
| EBITDA margin | 16.5% | 18.1% | 12.9% | 12.7% |
| EBIT | 20'582 | 25'338 | 12'993 | 23'862 |
| EBIT margin | 8.0% | 9.8% | 5.1% | 4.7% |
| Profit for the period | 4'196 | 8'952 | 71 | 3'770 |
| Market price per share at end of period (in CHF) | 44.50 | 46.40 | 40.95 | |
| Number of outstanding shares | 14'951'369 | 15'029'954 | 15'010'091 | |
| Market capitalisation | 665'336 | 697'390 | 614'663 |
Hospitals Swiss Medical Network
Swiss Medical Network is one of Switzerland′s two 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-theart 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 today operates 14 hospitals and one ambulatory clinic. The group counts 1′230 doctors and 2′490 employees. Swiss Medical Network is also affiliated with Klinik Pyramide am See AG, which operates a hospital in the canton of Zurich. Swiss Medical Network′s objective is to continue expanding its Swiss-wide network by acquiring and restructuring further hospital facilities. Swiss Medical Network SA is a fully-owned subsidiary of AEVIS VICTORIA. www.gsmn.ch
Hospitality Victoria-Jungfrau Collection
Victoria-Jungfrau Collection operates four leading five-star hotels situated in the most sought-after locations in Switzerland: Victoria-Jungfrau Grand Hotel & Spa in Interlaken, Palace Luzern, Eden au Lac in Zurich and Bellevue Palace in Bern. The four hotels are individually managed but all 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.
The Interlaken based luxury hotel group is a 100% subsidiary of AEVIS VICTORIA, which owns the hotels in Interlaken and Zürich and holds long-term Management contracts for the properties in Berne and Lucerne.
www.vjc.ch
Hospital and Hospitality Real Estate
AEVIS VICTORIA′s real estate portfolio is composed of healthcare and hospitality real estate and organised in two dedicated entities. The total real estate portfolio counts 41 properties on 17 sites, representing a rental surface of approx. 175′000 sqm and a market value of CHF 940 million.
Swiss Healthcare Properties AG, founded in 1997, is a unique healthcare-related real estate company in Switzerland. The portfolio, with a market value of CHF 776 million and a rental surface of 133′400 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′s properties present a development potential of 30′000 to 35′000 sqm. Swiss Healthcare Properties 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.
Swiss Hospitality Properties 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′600 sqm and a market value of CHF 164 million. Both companies are 100% subsidiaries of AEVIS. www.shp.net
Telemedicine Medgate and LifeWatch
Medgate was founded in 1999 by flying doctor and surgeon Andy Fischer, economist Lorenz Fitzi, and IT specialist André Moeri. Today it is one of the leading providers of integrated ambulant healthcare in Switzerland. The Medgate Telemedicine Center and Medgate Health Center business units, and the Medgate Partner Network foundation integrate their work closely. If a physical consultation is needed following a teleconsultation, patients from the Medgate Telemedicine Center can be referred to a Medgate Health Center or to a specialist from the Medgate Partner Network. At the same time, physicians in the Health Center can involve specialists from the Telemedicine Center or Partner Network quickly and easily in the care of their patients. This guarantees comprehensive, high-quality care for our patients. Thanks to Medgate International – the newest business unit – the successful concept is also being exported beyond Switzerland. AEVIS VICTORIA holds a participation of 40% in the Medgate Group. www.medgate.ch
LifeWatch AG, is a leading healthcare technology and solution company, specialising in advanced digital health systems and wireless remote diagnostic patient monitoring services. LifeWatch′s services provide physicians with critical information to determine appropriate treatment and thereby improve patient outcomes. LifeWatch is listed on the International Reporting Standard of the SIX Swiss Exchange (LIFE). AEVIS VICTORIA holds a participation of 10.64% in LifeWatch AG.
www.lifewatch.com
Nescens is the result of a unique blend of medical and scientific expertise, born out of the vision of Professor Jacques Proust, a pioneer in the field of the biology of aging who created the Centre for the Prevention of Aging at Clinique de Genolier.
Nescens is the first brand that developed a comprehensive and personalized medical accompaniment for successful aging. In its Preventive Medicine Centres, health Spas and Clinics, Nescens offers medical check-ups, better-aging programmes, plastic surgery and aesthetic medicine and also anti-aging cosmeceuticals. Nescens also created a centre of excellence in regenerative medicine in the form of Nescens Swiss Stem Cell Science. Its main activity is to promote, manage and organise the collection, treatment, cryopreservation and autologous use of stem cells for therapies or aesthetic enhancements.
AEVIS VICTORIA owns 36.2% of Nescens SA, 84% of Laboratoires Genolier SA, the company developing high-end cosmeceuticals, 70% of Swiss Stem Cell Science SA and 100% of Clinique Nescens Paris Spontini, its first hospital dedicated to plastic surgery. www.nescens.com
Swiss Ambulance Rescue is an ambulance company specialised in the transportation of patients and injured. With 15 ambulances and 65 employees, Swiss Ambulance Rescue is the most important private player in Geneva. The company is specialised in repatriations, urgent patient transports, hospital transfers and assistance for insurance companies.
AEVIS VICTORIA owns 93.4% of Swiss Ambulance Rescue Genève SA.
www.swissambulancerescue.ch
| 30.06.2016 | 31.12.2015 | |
|---|---|---|
| Share capital (in CHF) | 75′176′035 | 75′176′035 |
| Number of registered shares issued | 15′035′207 | 15′035′207 |
| Nominal value per registered shares (in CHF) | 5 | 5 |
| Number of treasury shares | 83′838 | 25′116 |
| Number of registered shares outstanding | 14′951′369 | 15′010′091 |
| (In CHF unless otherwise stated) | 30.06.2016 | 31.12.2015 |
|---|---|---|
| High | 45.10 | 47.10 |
| Low | 37.05 | 39.50 |
| End price | 44.50 | 40.95 |
| Average volume per day (in units) | 1′172 | 1′517 |
| Market capitalisation | 665′335′921 | 614′663′226 |
The registered shares of AEVIS VICTORIA SA are traded on the Swiss Reporting Standard of SIX Swiss Exchange. The shares of AEVIS VICTORIA are included in the Swiss Performance Index (SPI) and are also part of the SXI Life Sciences Index (SLIFE) and SXI Bio+Medtech Index (SBIOM).
| Valor symbol: | AEVS | Bloomberg: | AEVS SW Equity |
|---|---|---|---|
| Valor no.: | 1248819 | Reuters: | AEVS.S. |
| ISIN: | CH0012488190 |
AEVIS VICTORIA SA has issued four fixed rate bonds, of which one arrived at maturity on 3 August 2016.
| AEV12 | AEV13 | AEV14 | AEV16 | |
|---|---|---|---|---|
| Bond type | Fixed rate | Fixed rate | Fixed rate | Fixed rate |
| Nominal amount | CHF 80.0 million | CHF 100.0 million | CHF 145.0 million | CHF 150.0 million |
| Securities number | CH0187896698 | CH0214926096 | CH0240109592 | CH0325429162 |
| Interest rate | 4.25% | 3.50% | 2.75% | 2.50% |
| Term | 03.08.2012 to 03.08.2016 |
02.07.2013 to 02.07.2018 |
04.06.2014 to 04.06.2019 |
07.06.2016 to 07.06.2021 |
| Maturity | 03.08.2016 at par value |
02.07.2018 at par value |
04.06.2019 at par value |
07.06.2021 at par value |
On 20 September 2016, AEVIS VICTORIA has successfully issued a 6-year bond in the amount of CHF 130 million, maturing on 19 October 2022. The coupon was set at 2.00%. Listing will be applied in accordance with the standard for bonds of the SIX Swiss Exchange.
The following shareholders held more than 3% on 30 June 2016:
| Total shareholders (30 June 2016) | 1′629 |
|---|---|
| Kuwait Investment Office | 3.55% |
| Group Hubert/Reybier/M.R.S.I. Medical Research, Services and Investments SA | 78.06% |
| November 2016 | Publication of 3Q 2016 Revenue |
|---|---|
| March 2017 | Publication of 2016 Revenue |
| 28 April 2017 | Publication of the 2016 Annual Results |
| May 2017 | Publication of 1Q 2017 turnover |
| 13 June 2017 | Ordinary general shareholders meeting for the year 2016 |
| 22 September 2017 | Publication of the 2017 half-year results |
| November 2017 | Publication of 3Q 2017 turnover |
SIX SAG SA Tel +41 58 399 61 00 [email protected]
c/o Dynamics Group AG Philippe Blangey Tel +41 43 268 32 32 [email protected]
AEVIS VICTORIA SA (AEVIS) continued to expand its activities in the first half-year 2016. The real estate portfolio was slightly enlarged and the build-up of a fourth pillar of business in the field of telemedicine was successfully started with the acquisition of a participation in both Medgate Group and listed LifeWatch AG. The hospitals of Swiss Medical Network made further progress, highlighted by turnover growth and better utilization of infrastructure resulting in substantially improved margins. Total revenues grew by 1.2% to CHF 293.5 million (HY 2015: CHF 289.9 million) and net revenues (medical fees excluded) increased to CHF 256.1 million (HY 2015: CHF 254.9 million) in the first six months of 2016. At constant perimeter (without Palace Lucerne in 2015) revenue growth reached 3.6%. Consolidated EBITDA surged by 27.9% to CHF 42.2 million, corresponding to an EBITDA margin of 16.5%, up from CHF 12.9% a year ago. The normalised EBITDA, mainly factoring out seasonality effects in the hospitality segment, reached CHF 46.9 million, corresponding to a normalised EBITDA margin of 18.1%. As a result, the profit for the period increased from CHF 0.07 million in 2015 to CHF 4.2 million in the reporting period.
AEVIS VICTORIA was once again active on the capital markets. It successfully issued a new 5-year CHF 150 million straight bond with a coupon of 2.5%. The net proceeds of the bond were partially used to refinance the CHF 80 million, 4.25% bond AEV12 that matured on 3 August 2016.
As the free-float soared above the 20% threshold following the full integration of Victoria-Jungfrau Collection, the nominal shares of AEVIS VICTORIA were included in the Swiss Performance Index (SPI) in late July 2016. They are also part of the indices SXI Life Sciences Index (SLIFE) and SXI Bio+Medtech Index (SBIOM) since 19 September 2016.
Swiss Medical Network reached a turnover of CHF 222.2 million, up from CHF 213.7 in the previous year. This solid result was mainly based on an overall increase of the number of patients treated in the network's hospitals while lower DRG and TARMED rates for the domestic activity remained a challenge. Medical tourism recovered and the turnover with foreign patients surged by around 10%, partially offsetting last year's decline. In addition, the exploitation of synergies and efficiency gains also contributed to the improved EBITDAR of CHF 50.3 million, corresponding to an EBITDAR margin of 22.6%, in comparison to an EBITDAR of CHF 40.6 million and an EBITDAR margin of 19.0% a year ago.
Swiss Medical Network has an outstanding track record in acquiring and restructuring private hospitals. This buy-and-build strategy paid off in the first half-year 2016. 14 out of 15 hospitals achieved a positive EBITDAR, as all of them are now in the optimisation phase of the business cycle. Privatklinik Lindberg is the only entity of the network that remains in the repositioning phase. The inflow of admitting physicians continued. This is a confirmation of the underlying attractiveness of the network and its hospitals. In early March, Swiss Medical Network introduced a common flat rate payment system for all its listed hospitals, with tariffs that are, on average, 5% lower than those of public hospitals. In early July, a new tariff agreement was signed with insurer KPT lasting for the next 5 years that also includes an equitable compromise for services provided back in 2015. Both these measures will help to dampen rising healthcare costs in Switzerland.
After the reporting period, on 14 September 2016, Swiss Medical Network submitted a takeover offer to all shareholders of GENERALE BEAULIEU Holding SA allowing Clinique Générale-Beaulieu in Geneva to join Swiss Medical Network. Clinique Générale-Beaulieu is a multi-disciplinary private hospital that accounts for around 5′700 hospitalisations per year, and it has approximately 400 employees and 600 admitting physicians.
Seasonality effects had the usual impact on the performance of the city hotels. Furthermore, tourism in Switzerland was also affected by the terrorist attacks in Europe as travellers became more cautious. With its solid and diversified guest portfolio, Victoria-Jungfrau Collection was able to absorb these influences and nearly match the results from the previous year in the consolidated hotels. Total turnover declined to CHF 26.7 million (HY 2015: CHF 32.6 million) but this decrease is mainly attributed to the deconsolidation of the Palace Hotel in Lucerne (turnover of CHF 6.5 million in HY 2015) due to the new management contract structure in place since 1 January 2016. The number of overnight stays reached 34′145 (HY 2015: 45′265), while occupancy rate reached 46.6% (HY 2015: 47.0%) also in light of the deconsolidation of Palace Lucerne. The average room rate was nearly unchanged and reached CHF 340 (HY 2015: CHF 344). Lower personnel expenses and efficiency gains contributed to an improved EBITDAR of CHF 3.0 million, representing an EBITDAR margin of 11.2%.
Clients at the Victoria-Jungfrau Grand Hotel & Spa in Interlaken, the flagship house of the group, are served even better since the successful reopening of the renovated "La Terrasse" restaurant in spring, the opening of the new outlet "The Garden" during summer months and the planned launch of a new spa concept in autumn 2016. Nevertheless, the management team has further intensified its national and international sales activities in order to respond to the challenging market environment. At the same time, it continues with its diversification strategy to avoid a cluster risk from certain markets. Additional synergies in IT, marketing, procurement and human resources were identified.
In the real estate segment, net revenue amounted to CHF 25.6 million (HY 2015: CHF 18.6 million), to which Swiss Healthcare Properties contributed CHF 21.8 million and Swiss Hospitality Properties, the hospitality-related real estate, CHF 3.8 million. EBITDAR increased to CHF 23.8 million compared to CHF 16.8 million in the previous year. The market value of the 33 properties of Swiss Healthcare Properties reached CHF 775.8 million and the value of the hospitality properties amounted to CHF 164.0 million. All properties were fully let at the end of the reporting period.
Swiss Healthcare Properties finalized one acquisition in the reporting period and bought an office building in Echandens in January 2016. The property offers rental space of 1′768 sqm with 53 parking spaces and is mainly rented to Swiss Medical Network and Patrimonium Asset Management. Furthermore, investments are planned in various hospitals of Swiss Medical Network, including a new building for Privatklinik Villa im Park in Rothrist and an extensive refurbishment program at Clinique de Valère in Sion. The current portfolio has a further development potential of nearly 30′000 to 35′000 sqm rentable space. Considering the development of the hospital′s activities in the next years, that create a need for additional surfaces on various sites, actions are being taken in anticipation to meet this demand. These can include the increase of ground area ratios, the change of area plans or the acquisition of buildings near to current hospitals.
AEVIS VICTORIA is building up a fourth pillar of activities in the field of telemedicine. Two participations have been made so far. In January 2016 the acquisition of 40% of Medgate Group, the leading provider of telemedical services in Switzerland, was completed. Since July 2016, AEVIS holds a participation in listed LifeWatch AG, a leading developer and provider of medical solutions and remote diagnostic monitoring services in the digital health market. After the purchase of a 4.6% stake within the context of LifeWatch's rights offering, the shareholding was further increased to 10.6% in August 2016. AEVIS VICTORIA believes that telemedicine and eHealth solutions will shape the future of medicine and that investments in leading companies in that field usefully complement its portfolio of solutions for a better life.
AEVIS VICTORIA SA invests in various other activities along the value chain of its main pillars of activity. The rescue entity based in Geneva will be rebranded into Swiss Ambulance Rescue in late September 2016. NESCENS preventive medical check-up centres are now operative in Genolier, Lausanne, Lugano and soon in Zurich, while NESCENS better-aging medspa programs are available in Interlaken and Geneva. For the first time, the anti-aging cosmetics of NESCENS are also sold in a dedicated e-shop targeting international buyers. Les Hauts de Genolier has been rebranded into Nescens Clinique de Genolier.
For the entire business year 2016, AEVIS VICTORIA SA expects to realise a turnover of approximately CHF 600 million, based on an unchanged portfolio consolidated over a 12-month period. AEVIS VICTORIA SA continues to target an EBITDA margin of more than 20% in the mid-term, based on optimised processes and higher utilisation of its infrastructure. This will imply a free cash flow margin of around 10%, on which a pay-out ratio of 30% would be applied.
Christian Wenger Antoine Hubert Chairman of the Board Delegate of the Board
Consolidated financial statements of AEVIS VICTORIA SA
| (In thousands of CHF) | NOTE | HY 2016 | HY 2015 Restated |
|---|---|---|---|
| Revenue from operations | 289'086 | 286'384 | |
| Other revenue | 4'402 | 3'522 | |
| External services | (37'420) | (35'003) | |
| Net revenue | 256'068 | 254'903 | |
| Production expenses | (57'081) | (57'152) | |
| Personnel expenses | (114'970) | (118'672) | |
| Other operating expenses | (35'651) | (39'162) | |
| EBITDAR | 48'366 | 39'917 | |
| Rental expenses | (6'191) | (6'930) | |
| EBITDA | 42'175 | 32'987 | |
| Depreciation on tangible assets | (19'333) | (18'019) | |
| Amortisation on intangible assets | (2'260) | (1'975) | |
| EBIT | 20'582 | 12'993 | |
| Financial result | (12'005) | (11'122) | |
| Share of profit / (loss) of associates | (325) | 39 | |
| Ordinary result | 8'252 | 1'910 | |
| Extraordinary result | 6 | (27) | (75) |
| Profit before taxes | 8'225 | 1'835 | |
| Income taxes | (3'682) | (1'849) | |
| Profit/(loss) for the period before minority interests | 4'543 | (14) | |
| Minority interests | (347) | 85 | |
| Profit for the period | 4'196 | 71 | |
| Weighted average number of outstanding shares | 14'998'240 | 14'256'059 | |
| Earnings per share (in CHF) | 0.28 | 0.00 | |
| Potential dilutive effect of share-based payment plans | (0.01) | (0.00) | |
| Diluted earnings per share (in CHF) | 0.27 | 0.00 |
| (In thousands of CHF) | 30.06.2016 | 31.12.2015 Restated |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 8'177 | 13'068 |
| Trade receivables | 116'734 | 113'150 |
| Other receivables | 36'033 | 49'848 |
| Inventories | 16'792 | 17'514 |
| Accrued income and prepaid expenses | 30'835 | 23'308 |
| Total current assets | 208'571 | 216'888 |
| Fixed assets | 1'137'934 | 1'126'161 |
| Intangible assets | 25'245 | 25'491 |
| Financial assets | 45'931 | 19'450 |
| Total non-current assets | 1'209'110 | 1'171'102 |
| Total assets | 1'417'681 | 1'387'990 |
| Liabilities and equity | ||
| Trade payables | 74'334 | 88'972 |
| Other current liabilities | 26'967 | 20'243 |
| Short-term financial liabilities | 95'113 | 100'197 |
| Other short-term borrowings | 800 | 800 |
| Accrued expenses and deferred income | 50'468 | 47'181 |
| Short-term provisions | 482 | 482 |
| Total current liabilities | 248'164 | 257'875 |
| Long-term financial liabilities | 742'155 | 703'621 |
| Other long-term borrowings | 16'991 | 16'755 |
| Other non-current liabilities | 13'666 | 14'412 |
| Long-term provisions | 91'801 | 92'844 |
| Total non-current liabilities | 864'613 | 827'632 |
| Total liabilities | 1'112'777 | 1'085'507 |
| Equity | ||
| Share capital | 75'176 | 75'176 |
| Capital reserves | 251'418 | 251'075 |
| Treasury shares | (3'538) | (1'075) |
| Offset goodwill | (45'548) | (45'548) |
| Currency translation differences | (992) | (990) |
| Retained earnings | 28'217 | 24'021 |
| Shareholder's equity excl. minority interests | 304'733 | 302'659 |
| Minority interests | 171 | (176) |
| Shareholders's equity incl. minority interests | 304'904 | 302'483 |
| Total liabilities and equity | 1'417'681 | 1'387'990 |
| (In thousands of CHF) | Share capital |
Capital reserves |
Treasury shares |
Offset goodwill |
Currency trans lation diffe rences |
Retained earnings / (accu mulated deficit) |
Total excl. minority interests |
Minority interests |
Total incl. minority interests |
|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2015 (before restatement) |
71'981 | 232'991 | (248) | (44'626) | (151) | 10'509 | 270'456 | 48'746 | 319'202 |
| Changes in accounting principles | – | – | – | 1'932 | – | – | 1'932 | – | 1'932 |
| Balance at 1 January 2015 (restated) |
71'981 | 232'991 | (248) | (42'694) | (151) | 10'509 | 272'388 | 48'746 | 321'134 |
| Profit for the period | – | – | – | – | – | 71 | 71 | (85) | (14) |
| Capital increase | 3'195 | (2) | – | – | – | – | 3'193 | – | 3'193 |
| Acquisition of subsidiaries | – | – | – | (211) | – | – | (211) | (162) | (373) |
| Purchase of minority interests | – | 25'493 | – | – | – | 9'739 | 35'232 | (48'737) | (13'505) |
| Purchase of treasury shares | – | – | (18'095) | – | – | – | (18'095) | – | (18'095) |
| Sale of treasury shares | – | (85) | 18'132 | – | – | – | 18'047 | – | 18'047 |
| Share-based payments | – | 174 | – | – | – | – | 174 | – | 174 |
| Currency translation differences | – | – | – | – | (1'072) | – | (1'072) | – | (1'072) |
| Balance at 30 June 2015 (restated) |
75'176 | 258'571 | (211) | (42'905) | (1'223) | 20'319 | 309'727 | (238) | 309'489 |
| Balance at 1 January 2016 (restated) |
75'176 | 251'075 | (1'075) | (45'548) | (990) | 24'021 | 302'659 | (176) | 302'483 |
| 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 | 75'176 | 251'418 | (3'538) | (45'548) | (992) | 28'217 | 304'733 | 171 | 304'904 |
| (In thousands of CHF) | HY 2016 | HY 2015 |
|---|---|---|
| Profit for the period | 4'196 | 71 |
| Minority interests | 347 | (85) |
| Changes in provisions (incl. deferred taxes) | (1'043) | (712) |
| Depreciation and amortisation | 21'593 | 19'994 |
| (Gain)/loss from sale of fixed assets | 16 | (154) |
| (Gain)/loss from sale of subsidiaries | (4) | – |
| Share of (profit)/loss from associates | 325 | (39) |
| Dividends received from associates | 252 | – |
| Share-based payments | 265 | 174 |
| Change in contribution reserve and other non-cash items | (189) | (1'077) |
| Cash flow from operating activities before changes in working capital | 25'758 | 18'172 |
| Change in trade receivables | (3'584) | (16'221) |
| Change in inventories | 722 | (600) |
| Change in other receivables and prepaid expenses | 2'151 | (14'150) |
| Change in trade payables | (14'639) | 10'829 |
| Change in other liabilities and accrued expenses | 18'566 | 12'022 |
| Cash flow from operating activities | 28'974 | 10'052 |
| Purchase of fixed assets | (25'018) | (49'059) |
| Proceeds from disposal of fixed assets | 27 | 392 |
| Purchase of intangible assets | (2'012) | (1'415) |
| Acquisition of subsidiaries, net of cash acquired | (2'300) | (13'526) |
| Divestment of subsidiaries, net of cash disposed | 3 | – |
| Investments in financial assets and loans to associates | (22'084) | (174) |
| Divestments of financial assets and loans to associates | 25 | 759 |
| Cash flow from investing activities | (51'359) | (63'023) |
| Proceeds from issuance of bond | 150'000 | – |
| Sale/(purchase) of treasury shares | (9'386) | (47) |
| Change in minority interests | – | (10'311) |
| Change in short-term financial liabilities | (5'087) | 25'715 |
| Change in long-term financial liabilities | (118'069) | 13'005 |
| Change in other long-term liabilities and borrowings | 34 | (1'256) |
| Cash flow from financing activities | 17'492 | 27'106 |
| Currency translation effect on cash and cash equivalents | 2 | (87) |
| Change in cash and cash equivalents | (4'891) | (25'952) |
| Cash and cash equivalents at beginning of the period | 13'068 | 48'574 |
| Cash and cash equivalents at the end of the period | 8'177 | 22'622 |
AEVIS VICTORIA SA (hereafter "The Company") has its registered offices at rue Georges-Jordil 4, 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 2016. They have been prepared in accordance with Swiss GAAP FER 31 "Supplementary recommendation for listed companies".
An Abstract of the consolidated financial statements was authorised for issue by the Board of Directors on 15 September 2016. The full consolidated financial statements were authorised for issue by the Board of Directors on 23 September 2016 and include the Company, its subsidiaries and its interests in associates (together "The Group").
The first time adoption of the changes in Swiss GAAP FER related to the revenue recognition impacts the following areas of corporate accounting of the Group:
Revenue is recognised at the fair value of the consideration received or receivable, net of discounts, losses on accounts receivables and changes in allowances for doubtful accounts. Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the services at the reporting date. The stage of completion is assessed by reference to surveys of work performed. Other revenue does include gain from disposal of assets and the profit resulting from the sale of subsidiaries.
The implementation of the revised revenue recognition resulted in a restatement of the financial statements of 2015. The following adjustments were made to the income statement for the first six months of 2015:
| (In thousands of CHF) | 2015 |
|---|---|
| Profit for the period before adjustment | 71 |
| Effects from change in revenue recognition | |
| Revenue from operations | (2'174) |
| Other revenue | 1'111 |
| External services | (2'445) |
| Production expenses | 2'448 |
| Other operating expenses | 1'060 |
| Profit for the period after adjustment | 71 |
As from 2016, the Group recognises goodwill from investments in associates as a part of the investment, instead of offsetting the goodwill with equity. The prior year figures have been adjusted accordingly. The change has an impact of CHF 1.9 million on both the financial assets and the shareholders′ equity of the 2015 consolidated financial statements.
As from 2015, the Group uses the proportional consolidation method instead of the equity method to include joint venture companies in the scope of consolidation.
Except for the above mentioned changes, the Group has applied the same accounting policies as described in the 2015 Annual Report.
The following changes to the scope of consolidation took place in the first half of 2016:
| ENTITY | EVENT / DATE | CAPITAL SHARE 30.06.2016 |
CAPITAL SHARE 31.12.2015 |
|---|---|---|---|
| Medgate Holding AG | Acquired on 22.01.2016 | 40.0% | – |
| Medgate Integrated Care AG | Acquired on 22.01.2016 | 40.0% | – |
| Swiss Hospitality Properties AG | Sold on 01.01.2016 | – | 100.0% |
Medgate Holding AG and Medgate Integrated Care AG are holding companies with several subsidiaries. All group companies are listed in note 8.
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 than in the first half year. This seasonality effect has an impact on the revenues and operating result of the Group. For the other segments, the seasonality effect is more equally spread over the entire year.
| HY 2016 (In thousands of CHF) |
HOSPITALS | HOSPITA LITY |
REAL ESTATE |
OTHERS | CORPO RATE |
ELIMINA TIONS |
TOTAL |
|---|---|---|---|---|---|---|---|
| Net revenue | 222'204 | 26'649 | 1'731 | 5'480 | 4 | – | 256'068 |
| Net revenue Interco | 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% |
| HY 2015 (Restated) (In thousands of CHF) |
HOSPITALS | HOSPITA LITY |
REAL ESTATE |
OTHERS | CORPO RATE |
ELIMINA TIONS |
TOTAL |
|---|---|---|---|---|---|---|---|
| Net revenue | 213'723 | 32'595 | 1'264 | 7'528 | (206) | – | 254'903 |
| Net revenue Interco | – | 4 | 17'380 | – | 102 | (17'486) | – |
| Net revenue | 213'723 | 32'599 | 18'644 | 7'528 | (104) | (17'486) | 254'903 |
| Production expenses | (51'032) | (5'117) | (2) | (1'172) | 170 | – | (57'152) |
| Personnel expenses | (93'357) | (18'519) | (114) | (5'429) | (1'253) | – | (118'672) |
| Other operating expenses | (28'771) | (6'367) | (1'756) | (1'964) | (48) | (256) | (39'162) |
| EBITDAR | 40'563 | 2'596 | 16'772 | (1'037) | (1'235) | (17'742) | 39'917 |
| EBITDAR margin | 19.0% | 8.0% | 90.0% | – | – | – | 15.7% |
The extraordinary result is only related to the legal case of 2010 (2015: CHF 0.1 million).
On 3 July 2016, Swiss Medical Network and KPT concluded a new tariff agreement and found an equitable compromise for services provided in 2015. The latter has a negative impact of CHF 1.2 million on the P&L.
On 13 September 2016, AEVIS VICTORIA, through its subsidiary Swiss Medical Network SA, announced an acquisition offer to all shareholders of Générale Beaulieu Holding SA (GBH) for all registered shares of GBH at a price of CHF 25′000 per share. Swiss Medical Network SA also signed an agreement with Albin Kistler AG regarding the acquisition of a participation of 29.36% of GBH at the price of CHF 25′000 per share.
On 20 September 2016, AEVIS VICTORIA has successfully issued a 6-year bond in the amount of CHF 130 million, maturing on 19 October 2022. The coupon was set at 2.00%. Listing will be applied in accordance with the standard for bonds of the SIX Swiss Exchange.
| IN % ON GROUP LEVEL | |||||
|---|---|---|---|---|---|
| COMPANY NAME | LOCATION | ACTIVITY | 30.06.2016 | 31.12.2015 | |
| 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% |
| Centre Médico-Chirurgical des Eaux-Vives SA | Geneva | Day clinic | a) | 100.0% | 100.0% |
| Clinique Générale – Ste-Anne SA | Fribourg | Hospital | a) | 100.0% | 100.0% |
| Clinique Médico-Chirurgicale de Valère SA | Sion | Hospital | a) | 92.3% | 92.3% |
| Genolier Swiss Visio Network SA | Genolier | Ophthalmology | a) | 80.0% | 80.0% |
| GSMN Neuchâtel SA | Neuchâtel | Hospitals | a) | 100.0% | 100.0% |
| GSMN Suisse SA | 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 (formerly Les Hauts de 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% |
| 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% |
| IN % ON GROUP LEVEL | |||||
|---|---|---|---|---|---|
| COMPANY NAME | LOCATION | ACTIVITY | 30.06.2016 | 31.12.2015 | |
| Real estate | |||||
| Patrimonium Healthcare Property Advisors AG |
Baar | Real estate management |
b) | 50.0% | 50.0% |
| Prolival SA | Sierre | Real estate | a) | 100.0% | 100.0% |
| Swiss Healthcare Properties AG | Fribourg | Healthcare real estate | a) | 100.0% | 100.0% |
| Swiss Hospitality Properties AG (formerly Park Résidence AG in Interlaken) |
Interlaken | Hospitality real estate | a) | 100.0% | 100.0% |
| Swiss Hospitality Properties AG (sold) | Interlaken | Real estate | a) | – | 100.0% |
| Telemedicine | |||||
| Medgate Holding AG | Zug | Holding company | c) | 40.00% | – |
| Medgate International AG | Zug | Telemedicine | c) | 40.00% | – |
| Medgate Asia-Pacific AG | Zug | Telemedicine | c) | 40.00% | – |
| Medgate Integrated Care AG | Zug | Holding company | c) | 40.00% | – |
| Medgate AG | Basel | Telemedicine | c) | 24.00% | – |
| Medgate Technologies AG | Zug | IT service company | c) | 24.00% | – |
| Medgate Health Centers AG | Basel | Health centers | c) | 40.00% | – |
| 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 | Aesthetic clinic | a) | 100.0% | 100.0% |
| Swiss Ambulance Rescue Genève SA (formerly Ambulances Services Odier SA) |
Geneva | Rescue services | a) | 93.4% | 93.4% |
| Swiss Stem Cell Science SA | Fribourg | Stem Cells | a) | 70.0% | 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% |
| AGEFI, Société de l'Agence Economique et Financière 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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