AEVIS VICTORIA SA

Earnings Release • Sep 16, 2016

AEVIS VICTORIA SA Half-year Report 2016 Abstract

Consolidated Income Statement

(In thousands of CHF)	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	(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

Consolidated Balance Sheet

(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

Consolidated Cash Flow Statement

(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

Notes to the Consolidated Financial Statements

1. Seasonality effect

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%

2. Segment information

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%

3. Subsequent events

On July 3, 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.