Earnings Release • Sep 14, 2018
Earnings Release
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CHF 319M TOTAL REVENUE
13.8% EBITDAR
REAL ESTATE CHF 1.2BN
MARKET CHF 918M 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 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).
| HY 2018 | HY 2017 | FY 2017 |
|---|---|---|
| 319'125 | 336'628 | 663'069 |
| 280'566 | 295'245 | 582'494 |
| 38'828 | 50'197 | 93'066 |
| 13.8% | 17.0% | 16.0% |
| 31'807 | 42'944 | 79'406 |
| 11.3% | 14.5% | 13.6% |
| 5'926 | 18'936 | 26'276 |
| 2.1% | 6.4% | 4.5% |
| (1'576) | 12'156 | 1'132 |
| 58.10 | ||
| 15'560'726 | 15'381'588 | 15'463'618 |
| 918'083 | 938'277 | 898'436 |
| 59.00 | 61.00 |
* Earnings before interest, taxes, depreciation, amortisation and rental expenses
| Share and bond information | 4 |
|---|---|
| Letter to the Shareholders | 6 |
| Portfolio Companies | 10 |
| Financial Statements | 16 |
| Number of registered shares outstanding | 15'560'726 | 15'463'618 |
|---|---|---|
| Number of treasury shares | 157'481 | 154'589 |
| Nominal value per registered share (in CHF) | 5 | 5 |
| Number of registered shares issued | 15'718'207 | 15'618'207 |
| Share capital (in CHF) | 78'591'035 | 78'091'035 |
| 30.06.2018 | 31.12.2017 |
| Market capitalisation | 918'082'834 | 898'436'206 |
|---|---|---|
| Average volume per day (in units) | 2'764 | 2'130 |
| End price | 59.00 | 58.10 |
| Low | 57.20 | 54.70 |
| High | 62.80 | 66.20 |
| EBITDA per share* (in CHF) | 2.04 | 5.19 |
| 30.06.2018 | 31.12.2017 |
* EBITDA divided by the weighted average number of shares outstanding, excluding treasury shares.
The registered shares of AEVIS VICTORIA SA are traded on the Swiss Reporting Standard of SIX Swiss Exchange and are part of the Swiss Performance Index SPI, the SXI Life Sciences Index (SLIFE) and the SXI Bio+Medtech Index (SBIOM).
| Valor symbol: | AEVS | Bloomberg: | AEVS SW Equity |
|---|---|---|---|
| Valor no.: | 1248819 | Reuters: | AEVS.S. |
| ISIN: | CH0012488190 |
| in million | AEV13 | AEV14 | AEV16 | AEV161 | AEV18 |
|---|---|---|---|---|---|
| Bond type | Fixed rate | Fixed rate | Fixed rate | Fixed rate | Fixed rate |
| Nominal amount | CHF 100.0 | CHF 145.0 | CHF 150.0 | CHF 145.0 | CHF 55.0 |
| Securities number | CH0214926096 | CH0240109592 | CH0325429162 | CH0337829276 CH0420465954 | |
| Interest rate | 3.50% | 2.75% | 2.50% | 2.00% | 2.25% |
| 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 |
29.06.2018 to 29.06.2020 |
| 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 |
29.06.2020 at par value |
AEVIS VICTORIA SA has issued five fixed rate bonds shown in the table below.
The following shareholders held more than 3% on 30 June 2018.
| Total shareholders (30 June 2018) | 1'679 |
|---|---|
| of the State of Kuwait | |
| Kuwait Investment Office as agent for the Government | 3.39% |
| Services and Investments SA | |
| Group A. Hubert / M. Reybier / M.R.S.I. Medical Research, | 79.54% |
| November 2018 | Publication of 3Q 2018 Revenue |
|---|---|
| February 2019 | Publication of 2018 Revenue |
| 29 March 2019 | Publication of the 2018 Annual Results |
| May 2019 | Publication of 1Q 2019 Revenue |
| 27 May 2019 | Ordinary general shareholders meeting for the year 2018 |
| 13 September 2019 | Publication of the 2019 Half-Year Results |
| November 2019 | Publication of 3Q 2019 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] |
AEVIS VICTORIA continued with the implementation of its investment strategy, which is based on mergers & acquisitions combined with a long-term and entrepreneurial approach to restructure and grow companies and business concepts. In the reporting period, AEVIS VICTORIA's participations achieved important milestones: extensive restructuring, standardisation and important investments within the hospital segment, steady improvements in the running hotels as well as on schedule refurbishment of the hotel in Zurich, attractive options for the real estate segment and further clean ups in the other participations segment.
The results in the hospital segment were influenced by a challenging market environment as well as several hospitals currently being under construction, which temporarily lowers capacity. Regardless, the growth strategy of Swiss Medical Network continued and is highlighted by the 100% integration of Medgate Health Centers AG as of 30 June 2018, after which the network became the operator of two health centres in Solothurn and Zurich. After the reporting period, Swiss Medical Network announced the acquisition of the surgical hospital of Siloah AG as of 1 October 2018, offering a strengthened and high-quality range of services in the Berne region. Swiss Medical Network is thereby extending its footprint in a new canton as well as its activity in general (45 beds, 38 affiliated physicians, approx. 2'400 interventions per year). These two acquisitions will contribute an additional annual turnover of more than CHF 30 million. Additional very interesting potential acquisitions are being negotiated in both the German- and French-speaking parts of the country.
Total revenues of Swiss Medical Network reached CHF 283.2 million (2017: CHF 301.7 million). Net revenues (excluding medical fees) decreased by 6.1% to CHF 245.0 million (2017: CHF 260.8 million). EBITDAR amounted to CHF 42.2 million, 22.4% less than in the first half-year 2017, representing a margin of 17.2% (2017: 20.9%). The lower activity and operational profitability were mainly impacted by lower TARMED tariffs applied since the beginning of 2018, a one-off writedown following a judgment of the federal court allowing a retroactive TARMED reduction for the fiscal years 2014 to 2017 and a temporarily reduced activity due to construction works in the hospitals in Rothrist, Geneva and Sion. Factoring out these one-off factors revenues experienced a slight organic growth and profitability remained on the level of 2017.
In September 2017, Swiss Medical Network initiated a cost-saving program, which is expected to reduce operating expenses by around CHF 15 million per annum. The restructuring measures will start to impact the results in the second half of 2018. Savings of CHF 12 million (annualised) are expected from a leaner structure with lower personnel and overhead costs, while the IT outsourcing to Swisscom will lead to savings of CHF 2 million annually. Further efficiency gains are targeted in facility management, laundry services and from medical equipment purchases. The digitalisation of various processes continues and the investment programs in most hospitals have been completed.
In the same context, Swiss Medical Network merged the six legal entities operating the listed hospitals of the group into one. This rationalised legal structure allows Swiss Medical Network to realise important cost savings thanks to simplified governance, a reduced administration and increased fiscal efficiency. The legal reorganisation has no impact on patients, employees or physicians. The names and internal organisations of the hospitals remain the same.
The recruitment of 63 additional independent physicians in the first six months 2018 as well as an increase in foreign patients, enabled by Genolier Patient Services that offers premium care from prestigious doctors and full trip planning for international patients, will further bolster the network's leading market position and facilitate revenue growth in the future.
Dino Cauzza, who joined Swiss Medical Network in April 2017 as Delegate of the Board of the two Lugano-based hospitals, was appointed new CEO of Swiss Medical Network in spring 2018. A graduate of the University of St. Gallen, he has many years of experience in the health sector in Switzerland, amongst which almost 15 years at the Ente Ospedaliero Cantonale. His experience has already considerably strengthened the Swiss Medical Network management.
The Victoria-Jungfrau Collection hotels performed very well during the reporting period and results improved compared to last year in terms of sales, operational profits and margins. The three hotels achieved net revenues of CHF 28.2 million in the first half-year of 2018 compared to CHF 28.8 million in 2017. Factoring out a CHF 3.5 million contribution in the 2017 figures from the Eden au Lac in Zurich, which is closed since late 2017, revenues surged by more than 11% in the reporting period. In particular, the hotels in Interlaken and Crans-Montana achieved better results based on a well-diversified customer portfolio, intensified marketing activities and new amenities in the hotels. Overall, overnight stays rose to 56'393. The gross operating profit surged, as the Average Room Rate increased from CHF 354 to CHF 364. EBITDAR reached CHF 3.9 million, corresponding to a margin of 13.7%, up from CHF 3.2 million and 11.3%, respectively. Results in the second semester are expected to be positively impacted by seasonality effects, the strong results during the summer and efficiency gains based on the completion of extensive restructuring program which was initiated in 2017.
Investments in upgraded facilities continue. By summer 2019, 80% of the rooms at the Victoria-Jungfrau Grand Hotel & Spa in Interlaken will have been updated and be air-conditioned, which is very important for guests from the Middle East and Asia. At the Bellevue Palace in Berne, a new restaurant will be opened in November 2018. The ongoing extensive renovation by world-famous designer Philippe Starck will transform the Hotel Eden au Lac into a landmark for a truly unique city hotel experience. Reopening is scheduled for summer 2019. The management contract for Palace Luzern, which has been closed since November 2017, will expire at the end of September 2018.
Beat Sigg, who has led Victoria-Jungfrau Collection for almost 10 years, decided to step down from his function as CEO at the end of August 2018. He will remain active on a strategic level as a Board member of Victoria-Jungfrau Collection. He has been succeeded by Raouf Finan, who has been working for the Michel Reybier Group for twenty years.
In the real estate segment, net revenues amounted to CHF 28.9 million (2017: CHF 29.3 million), to which healthcare real estate contributed CHF 26.0 million, while the hospitality-related buildings contributed CHF 2.9 million. The hotel Eden au Lac in Zurich remains closed for a complete makeover and refurbishment and thus did not contribute any rent in the reporting period. EBITDAR reached CHF 24.9 million, corresponding to an EBITDAR margin of 86.1%, compared to CHF 24.8 million and 84.7%, respectively, in the previous year. The 45 properties are very well located and have an above-average standard because of the intensive investment activity in the last few years. The market value of the entire property portfolio amounts to CHF 1.2 billion. The loan to value remained very low at 35.0% and the average interest on mortgages was 1.66% at the end of the reporting period.
After having analysed several strategic options for the healthcare real estate portfolio, AEVIS VICTORIA believes that important value can be created by increasing the independence of Swiss Healthcare Properties SA to allow the company to continue growing its healthcare infrastructure portfolio in Switzerland. Therefore, Swiss Healthcare Properties SA is renamed Infracore SA, a new Board of Directors and management will be appointed while a partial spin-off is evaluated.
In the period under review, revenues of CHF 6.3 million (2017: CHF 5.2 million) resulted from the incubator segment (excluding the 40% stake in Medgate, which is consolidated at equity). iKentoo continued its development with the launch of iKentoo 3.0, including blockchain technology to secure data and improve fiscal records.
Two divestments are envisaged, which should positively impact both balance sheet and profit and loss statement of AEVIS VICTORIA. The stake in Clinique Nescens Paris Spontini will be sold and replaced with a management contract. The participation in Swiss Ambulance Rescue will be reduced from 100% to 40% with the subsequent deconsolidation of the company, and be accompanied by an investment of CHF 5 million for the development of Swiss Ambulance Rescue in Switzerland.
AEVIS VICTORIA SA sold its 1.6% stake in US-based BioTelemetry, Inc. (BEAT), obtained as a result of their public acquisition and exchange offer on LifeWatch AG. This transaction led to a financial gain of CHF 6.6 million, which has positively impacted first half-year results in 2018. Combined with the realised gain of CHF 7.8 million in 2017, AEVIS VICTORIA's capital gain on its investment in LifeWatch reached a total of CHF 14.3 million.
Overall, reported total revenues of AEVIS VICTORIA decreased by 5.2% to CHF 319.1 million (2017: CHF 336.6 million). Factoring out the various described one-off effects, total revenues would have grown by 3.0%. Net revenues (medical fees excluded) reached CHF 280.6 million (2017: CHF 295.2 million). On a Group level, EBITDA amounted to CHF 31.8 million, representing an EBITDA margin of 11.3% (2017: CHF 42.9 million, 14.5%). Factoring out the described one-off effects, the consolidated EBITDA margin would have been 12.8%. A net loss of CHF 1.6 million was achieved for the period, in comparison to a net profit of CHF 12.2 million in the first half of 2017 (of which CHF 11.7 million was generated by two divestments). Without one-offs, a net profit of CHF 2.0 million would have resulted in the first six months 2018.
In June 2018, AEVIS VICTORIA issued a 2-year CHF 55 million straight bond with a coupon of 2.25%. The net proceeds of the bond were used for the redemption of a CHF 100 million, 3.5% bond that matured in early July 2018, in addition to the funds already available to the company. With this refinancing and reimbursement, AEVIS VICTORIA will significantly reduce its annual financial expenses, positively impacting the results in in the second half-year 2018.
AEVIS VICTORIA will pursue its growth and collaboration strategy in the various Group segments whilst improving and optimising operational excellence. The acquisition pipeline of the Group is attractive, and several projects are being evaluated. Based on an unchanged portfolio and excluding one-off factors, AEVIS VICTORIA expects to realise single-digit revenue growth and improve profitability in the current business year 2018 by pursuing the initiated cost reduction programmes. The cost-savings measures will be fully effective as of fiscal year 2019 with an expected annual contribution of CHF 25 million on Group level.
Christian Wenger Antoine Hubert Chairman of the Board Delegate of the Board
Net revenues reached CHF 245.0 million in the first half-year 2018. The network growth path continued after the end of reporting period with the acquisition of the surgical activities of Siloah AG in Gümlingen/Berne. On 1 Octobre 2018, Swiss Medical Network will regroup 17 hospitals and will be active in 11 cantons.
INTERVENTIONS (ON AN ANNUAL BASIS)
51'263
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. As at 30 June 2018, the network extends to 16 private institutions and one affiliated hospital in Switzerland, which count 2'020 doctors and employ 2'855 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
Net revenues of the fully consolidated hotels reached CHF 28.2 million, based on a well-diversified customer portfolio. The Eden au Lac in Zurich remained closed for the entire period due to extensive renovations works and did therefore not contribute to
12 Hospitality l Victoria-Jungfrau Collection
364
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, the Eden au Lac in Zurich, the renowned Bellevue Palace in Bern and 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 175′000 overnight bookings.
AEVIS VICTORIA owns 100% of the Interlaken based luxury hotel group.
www.vjc.ch
The Group owns a high-quality real estate investment portfolio including properties in the healthcare and hospitality sectors. As of 1 October 2018, the portfolio will consist of 46 properties in 19 locations across Switzerland after the integration of the building of Klinik Siloah.
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 790.2 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 45′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 192.2 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 and a development property (land) in Crans-Montana. The properties represent a rental surface of 41′572 sqm and a market value of CHF 182.3 million. SHP II is a 100% subsidiary of AEVIS VICTORIA.
www.shp.net
| (In thousands of CHF) NOTES |
HY 2018 | HY 2017 |
|---|---|---|
| Revenue from operations | 312'893 | 331'122 |
| Other revenue | 6'232 | 5'505 |
| Total revenue | 319'125 | 336'627 |
| External services | (38'559) | (41'382) |
| Net revenue | 280'566 | 295'245 |
| Production expenses | (64'523) | (66'864) |
| Personnel expenses | (131'966) | (135'241) |
| Other operating expenses | (45'249) | (42'943) |
| EBITDAR (Earnings before interest, taxes, depreciation, amortisation and rental expenses) |
38'828 | 50'197 |
| Rental expenses | (7'021) | (7'253) |
| EBITDA | 31'807 | 42'944 |
| Depreciation on tangible assets | (21'781) | (20'909) |
| Amortisation on intangible assets | (4'100) | (3'099) |
| EBIT | 5'926 | 18'936 |
| Financial result | 6 (7'409) |
(1'740) |
| Share of profit/(loss) of associates | (66) | (776) |
| Profit/(loss) before taxes | (1'549) | 16'420 |
| Income taxes | (27) | (4'265) |
| Profit/(loss) for the period | (1'576) | 12'155 |
| – Thereof attributable to shareholders of AEVIS VICTORIA SA | (2'924) | 10'075 |
| – Thereof attributable to minority interests | 1'348 | 2'080 |
| Non-diluted earnings per share (in CHF) | 7 (0.19) |
0.67 |
| Diluted earnings per share (in CHF) | 7 (0.18) |
0.64 |
| (In thousands of CHF) | 30.06.2018 | 31.12.2017 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 9'358 | 18'187 |
| Marketable securities | – | 15'115 |
| Trade receivables | 117'454 | 115'895 |
| Other receivables | 48'535 | 36'341 |
| Inventories | 20'096 | 20'444 |
| Accrued income and prepaid expenses | 41'838 | 32'325 |
| Total current assets | 237'281 | 238'307 |
| Fixed assets | 1'436'977 | 1'407'260 |
| Intangible assets | 45'966 | 44'384 |
| Financial assets | 67'813 | 60'689 |
| Total non-current assets | 1'550'756 | 1'512'333 |
| Total assets | 1'788'037 | 1'750'640 |
| Liabilities and equity | ||
| Trade payables | 94'351 | 104'783 |
| Other current liabilities | 28'954 | 19'844 |
| Short-term financial liabilities | 118'573 | 119'778 |
| Other short-term borrowings | 9'843 | 800 |
| Accrued expenses and deferred income | 51'841 | 42'625 |
| Short-term provisions | 90 | 90 |
| Total current liabilities | 303'652 | 287'920 |
| Long-term financial liabilities | 935'684 | 914'303 |
| Other long-term borrowings | 16'800 | 18'960 |
| Other non-current liabilities | 12'350 | 9'426 |
| Long-term provisions | 135'119 | 136'837 |
| Total non-current liabilities | 1'099'953 | 1'079'526 |
| Total liabilities | 1'403'605 | 1'367'446 |
| Equity | ||
| Share capital | 78'591 | 78'091 |
| Capital reserves | 252'303 | 249'245 |
| Treasury shares | (8'874) | (8'139) |
| Offset goodwill | (30'354) | (30'689) |
| Currency translation differences | (685) | (609) |
| Retained earnings | 22'031 | 25'239 |
| Shareholders' equity excl. minority interests | 313'012 | 313'138 |
| Minority interests | 71'420 | 70'056 |
| Shareholders' equity incl. minority interests | 384'432 | 383'194 |
| Total liabilities and equity | 1'788'037 | 1'750'640 |
| (In thousands of CHF) | CAPITAL SHARE |
RESERVES CAPITAL |
TREASURY SHARES |
GOODWILL OFFSET |
TION DIFFE CURRENCY TRANSLA RENCES |
RETAINED EARNINGS |
TOTAL EXCL. MINORITY INTERESTS |
MINORITY INTERESTS |
TOTAL INCL. MINORITY INTERESTS |
|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Balance at 1 January 2018 | 78'091 | 249'245 | (8'139) | (30'689) | (609) | 25'239 | 313'138 | 70'056 | 383'194 |
| Profit/(loss) for the period | – | – | – | – | – | (2'924) | (2'924) | 1'348 | (1'576) |
| Dividend payments | – | – | – | – | – | – | – | (98) | (98) |
| Capital increase | 500 | 2'900 | – | – | – | – | 3'400 | – | 3'400 |
| Acquisition of subsidiaries | – | – | – | 335 | – | – | 335 | – | 335 |
| Purchase of minority interests | – | – | – | – | – | (284) | (284) | 114 | (170) |
| Purchase of treasury shares | – | – | (9'982) | – | – | – | (9'982) | – | (9'982) |
| Sale of treasury shares | – | (18) | 9'247 | – | – | – | 9'229 | – | 9'229 |
| Share-based payments | – | 176 | – | – | – | – | 176 | – | 176 |
| Currency translation differences | – | – | – | – | (76) | – | (76) | – | (76) |
| Balance at 30 June 2018 | 78'591 | 252'303 | (8'874) | (30'354) | (685) | 22'031 | 313'012 | 71'420 | 384'432 |
| (In thousands of CHF) | HY 2018 | HY 2017 |
|---|---|---|
| Profit/(loss) for the period | (1'576) | 12'155 |
| Changes in provisions (incl. deferred taxes) | (1'910) | (1'696) |
| Depreciation and amortisation | 25'881 | 24'008 |
| (Gain)/loss from sale of fixed assets | (20) | 19 |
| (Gain)/loss from sale of financial assets and marketable securities | (6'638) | (11'651) |
| Share of (profit)/loss from associates | 66 | 776 |
| Share-based payments | 176 | 252 |
| Change in contribution reserve and other non-cash items | (925) | (177) |
| Cash flow from operating activities before changes in working capital | 15'054 | 23'686 |
| Change in trade receivables | (1'100) | 7'109 |
| Change in inventories | 420 | (542) |
| Change in other receivables and prepaid expenses | (20'562) | (21'954) |
| Change in trade payables | (10'501) | (10'876) |
| Change in other liabilities and accrued expenses | 16'512 | 10'043 |
| Cash flow from operating activities | (177) | 7'466 |
| Purchase of tangible assets | (40'071) | (21'980) |
| Proceeds from disposal of tangible assets | 87 | 66 |
| Purchase of intangible assets | (5'716) | (2'206) |
| Acquisition of subsidiaries, net of cash acquired | (1'573) | (79) |
| Investments in financial assets and marketable securities | (8'378) | (9'224) |
| Divestments of financial assets and marketable securities | 24'773 | 30'092 |
| Cash flow from investing activities | (30'878) | (3'331) |
| Dividends paid to minority interests | (98) | (147) |
| Proceeds from issuance of share capital, net of costs | 3'400 | 10'220 |
| Proceeds from issuance of bond | 55'000 | – |
| Sale/(purchase) of treasury shares | (754) | (53) |
| Change in minority interests | (170) | (2'625) |
| Change in short-term financial liabilities | (1'206) | (5'097) |
| Change in long-term financial liabilities | (41'691) | (10'509) |
| Change in other long-term liabilities and borrowings | 7'748 | (2'133) |
| Cash flow from financing activities | 22'229 | (10'344) |
| Currency translation effect on cash and cash equivalents | (3) | 3 |
| Change in cash and cash equivalents | (8'829) | (6'206) |
| Cash and cash equivalents at beginning of the period | 18'187 | 15'207 |
| Cash and cash equivalents at the end of the period | 9'358 | 9'001 |
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 2018. 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 2017.
The consolidated interim financial statements were authorised for issue by the Board of Directors on 13 September 2018.
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 Group has applied the same accounting policies as described in the 2017 Annual Report.
The following changes to the scope of consolidation took place in the first half of 2018:
| ENTITY | EVENT / DATE | CAPITAL SHARE 30.06.2018 |
CAPITAL SHARE 31.12.2017 |
|---|---|---|---|
| Clinique médico-chirurgicale de Valère SA | Increase in participation on 19.06.2018 | 100.00% | 94.72% |
| Medgate Health Centers AG | Increase in participation on 30.06.2018 | 100.00% | 40.00% |
| Health Professional Sourcing Spain SL | Established on 04.06.2018 | 24.00% | – |
| TMIP Holdings Pty Ltd | Acquired on 15.05.2018 | 32.94% | – |
TMIP Holdings Pty Ltd 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 2018 | HOSPITA | REAL | CORPO | ELIMINA | |||
|---|---|---|---|---|---|---|---|
| (In thousands of CHF) | HOSPITALS | LITY | ESTATE | OTHERS | RATE | TIONS | TOTAL |
| Net revenue 3rd | 244'006 | 27'819 | 2'531 | 6'062 | 148 | – | 280'566 |
| Net revenue IC | 953 | 425 | 26'403 | 259 | – | (28'040) | – |
| Net revenue | 244'959 | 28'244 | 28'934 | 6'321 | 148 | (28'040) | 280'566 |
| Production expenses | (59'099) | (4'576) | – | (926) | – | 78 | (64'523) |
| Personnel expenses | (107'418) | (15'438) | (308) | (5'027) | (3'775) | – | (131'966) |
| Other operating expenses | (36'238) | (4'370) | (3'704) | (1'335) | (1'161) | 1'559 | (45'249) |
| EBITDAR* | 42'204 | 3'860 | 24'922 | (967) | (4'788) | (26'403) | 38'828 |
| EBITDAR margin | 17.2% | 13.7% | 86.1% | – | – | – | 13.8% |
| 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% |
* Earnings before interest, taxes, depreciation, amortisation and rent
| (In thousands of CHF) | HY 2018 | HY 2017 |
|---|---|---|
| Interest income | 273 | 32 |
| Gain on sale of financial assets and marketable securities | 6'638 | 11'700 |
| Dividend income | 6 | – |
| Other financial income | 43 | 102 |
| Total financial income | 6'960 | 11'834 |
| Interest expenses | (13'599) | (12'839) |
| Loss on sale of financial assets and marketable securities | – | (49) |
| Other financial expenses | (770) | (686) |
| Total financial expenses | (14'369) | (13'574) |
| Financial result | (7'409) | (1'740) |
The change compared to prior year mainly results from the gain on sale of investments in unconsolidated companies. In 2018 the Group sold its stake in Bio-Telemetry Inc, Malvern (USA) and in 2017 the Group sold its investments in 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 2018 | HY 2017 | |
|---|---|---|
| Net profit/(loss) attributable to AEVIS VICTORIA SA shareholders (in thousands of CHF) |
(2'924) | 10'075 |
| Weighted average number of shares outstanding | 15'401'002 | 15'147'285 |
| Non-diluted earnings per share (in CHF) | (0.19) | 0.67 |
| Net profit/(loss) attributable to AEVIS VICTORIA SA shareholders (in thousands of CHF) |
(2'924) | 10'075 |
| Weighted average number of shares outstanding | 15'401'002 | 15'147'285 |
| Adjustment for assumed exercise of share-based payments | 410'000 | 510'000 |
| Weighted average potential number of shares outstanding | 15'811'002 | 15'657'285 |
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 | 30.06.2018 | 31.12.2017 | ||
| 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% | 69.4% | |
| Centre Médico-Chirurgical des Eaux-Vives SA | Geneva | Day clinic | a) | 100.0% | 100.0% | |
| CLINIQUE GENERALE-BEAULIEU SA | Geneva | Hospital | a) | 69.4% | 69.4% | |
| Clinique médico-chirurgicale de Valère SA (merged) 1) |
Sion | Hospital | a) | 100.0% | 94.7% | |
| Genolier Swiss Visio Network SA | Genolier | Ophthalmology | a) | 80.0% | 80.0% | |
| GRGB Santé SA | Geneva | Hospital | b) | 34.7% | 34.7% | |
| GSMN Neuchâtel SA (merged) 1) | Neuchâtel | Hospitals | a) | 100.0% | 100.0% | |
| GSMN Suisse SA | Genolier | Hospitals | a) | 100.0% | 100.0% | |
| GSMN Ticino SA (merged) 1) | 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 (merged) 1) | Rothrist | Hospital | a) | 100.0% | 100.0% | |
| Medgate Health Centers AG | Basel | Health centers | a) | 100.0% | 40.0% | |
| Nescens Genolier SA | Genolier | Patient hotel | a) | 100.0% | 100.0% | |
| Privatklinik Obach AG (merged) 1) | Solothurn | Hospital | a) | 100.0% | 100.0% | |
| Schmerzklinik Basel AG (merged) 1) | Basel | Hospital | a) | 100.0% | 100.0% | |
| Swiss Medical Network Hospitals SA (formerly Clinique Générale – Ste-Anne SA) 1) |
Fribourg | Hospitals | 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% | 69.4% | |
| 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 | Interlaken | Hospitality real estate | a) | 100.0% | 100.0% |
1) Clinique médico-chirurgicale de Valère SA, GSMN Neuchâtel SA, GSMN Ticino SA, Klinik Villa im Park AG, Privatklinik Obach AG and Schmerzklinik Basel AG were merged in June 2018 into Clinique Générale – Ste-Anne SA which was then renamed to Swiss Medical Network Hospitals SA with retroactive effect from 31.12.2017.
| SEGMENT / COMPANY NAME | LOCATION | ACTIVITY | 30.06.2018 | 31.12.2017 | |
|---|---|---|---|---|---|
| Telemedicine | |||||
| Medgate Holding AG | Zug | Holding company | c) | 40.0% | 40.0% |
| Medgate Integrated Care Holding AG | Zug | Holding company | c) | 40.0% | 40.0% |
| Medgate (Asia) Holdings Pty Ltd | Darlinghurst (AU) |
Holding company | c) | 32.9% | – |
| Medgate (Indonesia) Holdings Pty Ltd | Sydney (AU) | Holding company | c) | 32.9% | – |
| Medgate (Philippines) Holdings Pty Ltd | Sydney (AU) | Holding company | c) | 29.6% | – |
| TMIP Holdings Pty Ltd | Sydney (AU) | Holding company | c) | 32.9% | – |
| Medgate AG | Basel | Telemedicine | c) | 24.0% | 24.0% |
| Health Professional Sourcing GmbH | Lörrach (DE) | Telemedicine | c) | 24.0% | 24.0% |
| Health Professional Sourcing Spain SL | Madrid (ES) | Telemedicine | c) | 24.0% | – |
| Medgate Asia-Pacific AG | Zug | Telemedicine | c) | 40.0% | 40.0% |
| Medgate International AG | Zug | Telemedicine | c) | 40.0% | 40.0% |
| Medgate Mini Clinic AG | Basel | Mini clinic | c) | 24.0% | 24.0% |
| Medgate Philippines Inc | Manila (PH) | Telemedicine | c) | 29.6% | – |
| Medgate Technologies AG | Zug | IT service company | c) | 24.0% | 24.0% |
| Medgate (Philippines) Holdings Pty Ltd-Branch | Manila (PH) | Telemedicine | c) | 29.6% | – |
| 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) | 100.0% | 100.0% |
| Swiss Medical Transport AG | Baar | Ambulance services | c) | 40.0% | 40.0% |
| Swiss Stem Cell Science SA | Fribourg | Stem Cells | a) | 100.0% | 100.0% |
| 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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