AEVIS VICTORIA SA

Earnings Release • Sep 14, 2023

Investora 2023

Investing for a better life

14 September 2023 AEVIS VICTORIA SA

AEVIS VICTORIA

AEVIS invests in services to people in stable and resilient focus areas Focus sectors – Investing for a better life

Visana Beteiligungen AG acquires a minority stake in Swiss Medical Network SA

A strategic partnership as a driver of the paradigm shift in the Swiss healthcare system

11.1% Stake acquired by Visana Beteiligungen AG

CHF 2.2bn Enterprise Value (post-money)

Post-deal financial effect on AEVIS level:

• Pro-forma equity ratio increases to 35.5% (vs. 28.5% in 2022)
• Net debt reduction of CHF 150m decreases pro-forma leverage ratio to 49.5% (vs. 54.2% in 2022)

Transaction Joint Integrated Care strategy

• Integrated care as a solution for the growing challenges in the Swiss healthcare system
• Nationwide expansion as a next step:
• Full capitation basic insurance plan VIVA ready to be offered to members as of 2024
• Ongoing discussions for the establishment of additional integrated care networks
• Vision: Start at least 5 more clusters within the next 5 years

Swiss Medical Network is optimally positioned to actively shape the future of healthcare:

• Clear Integrated Care strategy (missing link for insurance companies)
• Very experienced and visionary leadership team

Share price development above SPIX benchmark

Key share price information

Key price and value information
	CURRENT SHARE PRICE (13.09.2023)	KEPLER CHEUVREUX TARGET PRICE*
MARKET CAPITALISATION (13.09.2023)
CHF 1.6bn	CHF 18.95	CHF 21.50
52 WEEKS LOW	52 WEEKS HIGH
CHF 16.80	CHF 21.10	*based on sum-of-the-parts valuation methodology

AEVIS/SPIX performance comparison

• AEVIS VICTORIA is listed on the SIX Swiss Exchange (AEVS)
• The shares are part of
• − Swiss Performance Index (SPI)
• − SXI Life Sciences Index (SLIFE) and
• − SXI Bio+Medtech Index (SBIOM)
• All shares are registered shares

Group results

Group results

Main internal and external factors in the first half of 2023

Deconsolidation of Réseau de l'Arc SA (RdA)

• Deconsolidation as of 31.12.2022, following the entry into the share capital by Visana Beteiligungen
• That resulted in a decrease in net revenues and an increase in profitability

Hospital segment net revenues (CHFm)

Hospital segment EBITDAR margin

Swiss Medical Network Capital Increase Inflationary environment

• Strategic expansion of the shareholder base with entry of Visana Beteiligungen in a CHF 150m capital increase
• The capital increase strengthens the consolidated balance sheet
• It also confirms the significative value creation achieved

11.1%

• The Group has identified increased inflationary pressure through several cost channels and has taken targeted measures to mitigate the impact:

Personnel - tight labor markets

Production - higher material and infrastructure costs

Energy - ongoing energy crisis

Interests - central banks fighting inflation

Consolidated AEVIS income statement figures

Expected decline in revenues and improvement of purely operating result after deconsolidation

Consolidated income statement (in CHF000)	HY 2022	HY 2023
Total revenue	584'169	488'323
Growth	n.a.	-16 4%
External services	(57'731)	(60'339)
Net revenue	526'438	427'984
Growth	n.a.	-18 7%
EBITDAR	125'737	72'321
EBITDAR margin	23 9%	16 9%
Rental expenses	(39'804)	(41'064)
EBITDA	85'933	31'257
EBITDA margin	16 3%	3% 7
EBIT	53'893	1'656
EBIT margin	10 2%	0 4%

As expected, decline of total revenues after the deconsolidation of Réseau de L'Arc and the absence of capital gains in the reporting period
However, the purely operating result improved, as the dilutive effect of Réseau de l'Arc was eliminated
Organic revenue growth of 4.7% highlights a strong operating result
Good performance with EBITDAR margin of 16.9%
Factoring out results from M&A activities in HY 2022, this represents an 10.5% margin increase
The lower revenues in combination with noticeable inflation effects on various cost items led to lower margins compared to the previous year
The second semester started promisingly and AEVIS expects a good year overall in 2023

Consolidated AEVIS balance sheet figures

Improved leverage and equity ratios

Consolidated balance sheet (in CHF000)	31/12/2022	30/06/2023	30 06 2023 pro-forma
Cash and cash equivalents	75'427	54'623	104'623
Accounts receivable	159'075	163'353	163'353
Other current assets	146'053	117'406	117'406
Non-current assets	1'410'170	1'443'496	1'443'496
Total assets	1'790'726	1'778'878	1'828'879
Financial liabilities and other borrowings	970'035	1'005'295	905'295
Other liabilities	310'555	272'737	274'237
Total liabilities	1'280'590	1'278'031	1'179'532
Equity excl . minority interests	469'339	459'147	592'989
Minority interests	40'798	41'700	56'358
Equity incl . minority interests	510'137	500'847	649'347
Total liabilities and equity	1'790'728	1'778'878	1'828'879
Equity ratio	28.5%	28.2%	35.5%
Leverage ratio	54.2%	56.5%	49.5%
Net debt in CHFm	(894.6)	(950.7)	(800.7)

Pro-forma balance sheet shows the effects of the CHF 150m capital increase of Swiss Medical Network subscribed by Visana Beteiligungen AG

Ongoing deleveraging process

Significant increase in shareholders' equity

Improvement of equity ratio from 28.5% to 35.5% Reduction of leverage ratio from 54.2% to 49.5%

Swiss Medical Network contributes a significant majority to total revenues

Segment snapshot half-year 2023

2023	Hospitals	Hospitality	Hotel real estate
Financial Performance
Gross revenues HY 2023 (HY 2022)	CHF 394.6m (450.0m)	n.a.	n.a.
Net revenues HY 2023 (HY 2022)	CHF 334.2m (392.2m)	CHF 88.3m (80.2m)	CHF 12.8m (9.4m)
Net revenue growth	-14.8%	+10.1%	+36.9%
Organic revenue growth	+4.1%	+7.4%	n.a.
EBITDAR margin	19.3%	22.6%	90.0%
EBITDA margin	8.0%	8.9%	89.9%
Highlights HY 2023	Capital increase subscribed by Visana Beteiligungen	Record results achieved overall	Strong revenue increase

Note: Illustration does not include the segments: Others, Corporate, and Eliminations.

Inflationary environment and mitigating counter-measures

Various initiatives since 2022 showing results starting in 2HY 2023

Upward renegotiation of base rates with insurers enables the group to pass on part of the price increases

✓ Staggered tariff increases over the next years secured (+3% in 2023, +1% in 2024 , +0.5% in 2025)

Active deleveraging lowering overall net debt and financing expenses

✓ Significant deleveraging implemented

Longer term contracts with utility companies lock in power prices and offer protection from price increases

✓ Long-term contracts secured

~ Ongoing investments in renewable energies and energy-saving solutions (ESG program)

Operational efficiency and employee retention programs will reduce exposure to tight labor markets

Statutory AEVIS financials Solid capital basis

Statutory income statement (in CHF000)	HY 2022	HY 2023
Total revenue	33'191	13'208
profit Net	16'985	(1'924)
Statutory balance sheet (in CHF000)	31 12 2022	30 06 2023
Total assets	883'684	894'701
Current interest-bearing debt Other liabilities current Non-current interest bearing debt Other liabilities non-current Total liabilities	70'885 2'952 185'834 - 259'671	66'360 4'384 203'730 - 274'473
equity Total	624'013	620'228
Total liabilities and equity	883'684	894'701
Equity ratio Leverage ratio	70 6% 29 1%	69 3% 30 2%

As no major divestments were made, financial revenues and net profit have decreased after high proceeds in H1 2022 from the sale of AEVIS' 40% stake in Medgate

Stable balance sheet structure after repayment of last bond in Q3 2022

Healthcare

Swiss Medical Network Majority investment of AEVIS

Swiss Medical Network is one of the two leading Swiss private hospital groups. In its hospitals in all three language regions, patients from Switzerland and abroad receive first-class hospital treatment, care and nursing.

Size and positioning allow active shaping of the healthcare market - especially as a pioneer in the introduction of integrated care models

4'095 / 2'250 Employees / Physicians

>75'000 Interventions

1'443 Beds

INVESTMENT STRATEGY

• Bolt-on acquisitions
• Add-on acquisitions
• Focus on further growth and integrated care implementation

Healthcare

Highly established healthcare clusters across Switzerland

Nationwide presence with seven health clusters

Case Study Réseau de l'Arc - a pioneering project VIVA la revolución!

Shareholders and their roles

35.1% stake medical-professional development of the health organization

32.4% stake Development of health insurance plan

32.4% stake Fostering of political framework

New health plan VIVA VIVA – Aimer Vivre

From «Sick Care» to «Health Care»

New financing model promotes cost efficiency, quality and patient-centered care

Main goals of the integrated care strategy: prevention by prioritizing members' health, individualized and high-quality treatment and care when ill, reduction of financial disincentives

Healthcare

New health plan VIVA: «Full Capitation» model

Healthcare provider receives a fixed amount per plan member with which it covers all services

Healthcare

Governance Strong addition to the Board of Directors of Swiss Medical Network

Hospitality & Lifestyle

Hospitality group 100% investment of AEVIS

CHF 687 Average Room Rate

1'030 Rooms in operation

Employees

73'656 Overnight stays

INVESTMENT STRATEGY

• Bolt-on acquisitions
• Dedicated growth in the 4- and 5-star boutique hotel category in European metropolises

*ex Victoria-Jungfrau AG

14.09.2023 22

The Victoria-Jungfrau Grand Hotel & Spa

Transformation into a resort

In H1 2023, the Grand Hotel Victoria Jungfrau & Spa
achieved the best result in its history

Since 2018, the hotel aims to become the leading family friendly resort in Europe

Infrastructure

Infracore

30% investment of AEVIS (50% voting rights)

Swiss Hotel Properties (SHP) 100% investment of AEVIS

Infrastructure

12.2 Net revenues H1 2023 in CHFm

22

4.1 Net income H1 2023 in CHFm

121'148 Rental surface in sqm

INVESTMENT STRATEGY

• Buy, build & hold strategy
• Driven by growth in the hospitality segment

Conservative valuation of assets

Below average valuations / m2

Hotel real estate portfolio (SHP)	Healthcare real estate portfolio (Infracore)
CHF 771m Market value 30.06.2023	CHF 1'276m Market value 30.06.2023	hospitals	Portfolio of leading landmark hotels and state-of-the-art
121'148 Rental area as of 30.06.2023	195'930 Rental area as of 30.06.2023		Prime hotel locations in Switzerland and the UK and diversified hospital footprint across all Swiss language
CHF 6'367 Implied value / m2	CHF 6'513 Implied value / m2	regions
	CHF 10'000* Benchmark value / m2		Conservative valuation levels (low value per sqm) in comparison to benchmark values

Outlook

Outlook AEVIS is continuing its successful value creation journey

AEVIS	• AEVIS will continue its transformation strategy into a pure investment company with a portfolio of 30-60% participations • This is expected to unlock further value for shareholders • Focus on healthcare and hospitality provides long term growth fundamentals with steady yields • Capital market activity (equity and debt) will be planned depending on market conditions
Hospitals	• Swiss Medical Network will continue to invest in the further development of integrated care • Full pipeline to complement and launch new integrated care clusters for the next 6 to 12 months • No capex backlog and the hospitals can focus on scale and efficiency as well as sustainability initiatives
Hospitality & Lifestyle	• After record results in H1 2023, the hospitality segment is expected to remain strong in 2023 • Activity for the next few years is expected to continue to benefit strongly from post-covid travel and conference backlog • Dedicated growth in the 4- and 5-star boutique hotel category
Infrastructure	• All buildings are in prime locations and maintained at the highest standard • Valuations are at very reasonable per square meter levels both in the healthcare and the hospitality areas • Infracore and SHP are expected to yield substantial annual dividend payments as well as important value creation opportunities

Thank you for your attention