Quarterly Report • Sep 18, 2020
Quarterly Report
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| Share and Bond Information | 4 |
|---|---|
| Letter to the Shareholders | 6 |
| Portfolio Companies | 10 |
| Consolidated Financial Statements | 13 |
CHF 347M TOTAL REVENUE STABLE
AEVIS VICTORIA SA is an investment company founded in 2006 and listed under the Swiss Reporting Standard of the SIX Swiss Exchange. In keeping with its mission, investing for a better life, the company pursues an investment strategy that focuses on three areas with high added value and strong growth potential: healthcare, lifestyle and infrastructure. AEVIS VICTORIA′s main shareholdings are Swiss Medical Network SA, the only Swiss private network of hospitals present in the country's three main language regions, Victoria-Jungfrau AG, a luxury hotel group managing eight luxury hotels in Switzerland, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, Swiss Hotel Properties AG, a hospitality real estate division, Medgate (40%), the leading telemedicine provider in Switzerland, and NESCENS SA, a brand dedicated to better aging.
12.7% EBITDAR MARGIN
REAL ESTATE PORTFOLIO OF 18 PROPERTIES CHF 452M
MARKET CAPITALISATION CHF 984M
www.aevis.com
Investing for a better life
| (In thousands of CHF | |||
|---|---|---|---|
| unless otherwise stated) | HY 2020 | HY 2019 | FY 2019 |
| Total revenue | 346'554 | 545'587 | 933'169 |
| Net revenue | 302'791 | 501'182 | 844'845 |
| EBITDAR* | 38'343 | 241'676 | 308'424 |
| EBITDAR margin | 12.7% | 48.2% | 36.5% |
| EBITDA | 14'416 | 229'988 | 266'495 |
| EBITDA margin | 4.8% | 45.9% | 31.5% |
| EBIT | (9'411) | 201'083 | 179'130 |
| EBIT margin | –3.1% | 40.1% | 21.2% |
| Profit/(loss) for the period | (14'101) | 202'118 | 173'690 |
| Market price per share at end of period (in CHF) |
12.30 | 12.70 | 14.00 |
| Number of outstanding shares | 79'983'797 | 78'576'061 | 80'325'264 |
| Market capitalisation | 983'801 | 997'916 | 1'124'554 |
*Earnings before interest, taxes, depreciation, amortisation and rental expenses
| 30.06.2020 | 31.12.2019 | ||
|---|---|---|---|
| Share Register Computershare Schweiz AG Tel. +41 62 205 77 00 share.register@computer share.ch |
Share capital (in CHF) | 80'391'035 | 80'391'035 |
| Number of registered shares issued | 80'391'035 | 80'391'035 | |
| Nominal value per registered share (in CHF) | 1 | 1 | |
| Number of treasury shares | 407'238 | 65'771 | |
| Number of registered shares outstanding | 79'983'797 | 80'325'264 |
| (in CHF unless otherwise stated) | 30.06.2020 | 31.12.2019 |
|---|---|---|
| EBITDA per share | 0.18 | 3.42 |
| High | 14.75 | 14.70 |
| Low | 10.00 | 11.60 |
| End price | 12.30 | 14.00 |
| Average volume per day (in units) | 9'167 | 29'789 |
| Market capitalisation | 983'800'703 | 1'124'553'696 |
4
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).
Media & Investor Relations c/o Dynamics Group AG Philippe Blangey Tel. +41 43 268 32 32 [email protected]
| Valor symbol: | AEVS | Bloomberg: | AEVS SW |
|---|---|---|---|
| Valor no.: | 47863410 | Reuters: | AEVS.S. |
| ISIN: | CH0478634105 |
The following shareholders held more than 3% on 30 June 2020:
| Total shareholders (30 June 2020) | 1'752 |
|---|---|
| of the State of Kuwait | |
| Kuwait Investment Office as agent for the Government | 3.32% |
| Medical Properties Trust, Inc. | 4.79% |
| Services & Investments SA | |
| Group A. Hubert / M. Reybier / M.R.S.I. Medical Research, | 75.75% |
AEVIS VICTORIA SA has issued two fixed rate bonds shown in the table below.
| AEV16 | AEV161 | |
|---|---|---|
| Bond type | Fixed rate | Fixed rate |
| Nominal amount | CHF 150.0 million | CHF 145.0 million |
| Securities number | CH0325429162 | CH0337829276 |
| Interest rate | 2.50% | 2.00% |
| Term | 07.06.2016 to 07.06.2021 | 19.10.2016 to 19.10.2022 |
| Maturity | 07.06.2021 at par value | 19.10.2022 at par value |
| November 2020 | Publication of 3Q 2020 Revenue |
|---|---|
| February 2021 | Publication of 2020 Revenue |
| 26 March 2021 | Publication of the 2020 Annual Results |
| 29 April 2021 | Ordinary general shareholders meeting for the year 2020 |
| May 2021 | Publication of 1Q 2021 Revenue |
| 17 September 2021 | Publication of the 2021 Half-Year Results |
| November 2021 | Publication of 3Q 2021 Revenue |
In the first half-year 2020, AEVIS VICTORIA SA (AEVIS) achieved revenues of CHF 346.6 million, 1.5% below the previous year on an adjusted basis (1H2019: CHF 351.8 million). Progress in the year 2020, which for the hospitality segment had begun under the best possible prospects with the integration of the Seiler Hotels in Zermatt, the InterContinental in Davos and the reopening of the Eden au Lac in Zurich under the brand "La Réserve", was suddenly interrupted by the Covid-19 pandemic. The hospital segment, which had also benefited from a promising start to the year, saw its activities severely disrupted by the federal ban on elective surgery, despite active participation in the cantonal schemes of the various cantons in which Swiss Medical Network is present.
The management of each entity reacted quickly and implemented various operational optimisation and cost-cutting measures, with a view to preserving liquidity, which resulted in a positive cash flow in both key segments and an increase in the cash flow from operating activities at the Group level by 76% to CHF 12.6 million (1H2019: CHF 7.1 million). After repayment of the CHF 55.0 million bond at maturity in June 2020, short- and medium-term liquidity is secured with cash and available credit lines in the amount of CHF 65.5 million at the end of the reporting period. Overall, in view of the exceptional circumstances, all the participations of the Group performed honourably well, with an EBITDAR margin of 12.7%, corresponding to an EBITDAR of CHF 38.3 million (1H2019: CHF 47.9 million). Due to the debt reduction, the Group's financial expenses strongly decreased to CHF 7.9 million (1H2019: CHF 12.3 million). The covenants did not have to be renegotiated and were all well respected as at 30 June 2020. Since the beginning of the second half of the year, business is almost back to normal for Swiss Medical Network, which was able to recover some of the business lost due to Covid-19. On the other hand, occupancy rates and activity in the hotels remain well below normal levels.
The results of Swiss Medical Network in the first half of the year were impacted by the restrictions related to the outbreak of Covid-19. While business was still developing well and in line with the budget until mid-March, the ban on non-urgent medical interventions imposed by the Swiss Federal Council between 16 March and 27 April 2020 led to a significant decline in activity during 45 days. As a direct consequence of the ban and the fact that in various cantons some employees and medical equipment were temporarily transferred to cantonal hospitals, capacity utilization was only 35% in March and April but 90% in May and even above previous year in June. Since the beginning of the second half of the year, the situation has almost returned to normal, and Swiss Medical Network's hospitals are operating again, although in budget catch-up mode. Collaboration with the cantons within the framework of health systems has been adapted to each situation, and Swiss Medical Network has now organised itself so that it can make its resources and capacities available in less than 48 hours, which should make a preventive interruption of activity in the event of a recurrence unnecessary.
Swiss Medical Network responded quickly to the pandemic. Externally, the group immediately cooperated with all cantons in a flexible way in order to support efforts to fight the pandemic. Internally, Swiss Medical Network immediately adapted operating processes to mitigate the impact of the forced slowdown in activity of its hospitals. Cost savings were achieved by introducing short-time work during the lockdown and simplifying the hotel services as well as negotiating with property owners or suppliers. The 5-year business plan was extended by one year and certain non-urgent investments were postponed by one year or more. In total, Swiss Medical Network limited the decline in turnover to 5.9%, or CHF 294.6 million (1H2019: CHF 313.0 million). EBITDAR fell from CHF 51.1 million in the previous year to CHF 39.4 million in the reporting period. The solid margin of 15.7% (1H2019: 19.0%) in these challenging times proves the resilience of the business model.
With the exception of technical unemployment, no compensation has for now been paid by the Confederation, the cantons or insurance companies for the losses caused by the ban on consultations and non-urgent medical interventions promulgated by the Federal Council and the ensuing measures.
Swiss Medical Network believes that this health crisis will be an additional catalyst for the healthcare services sector. Indeed, this crisis shows the importance of a well-organized care network, with strong and flexible healthcare infrastructure. Furthermore, the development of integrated care clusters is being pursued in various regions of Switzerland. The integration of Medizinisches Zentrum Biel, a large medical center with a broad array of medical specialties in the city center of Biel, in September 2020, is a good example of the Group's strategy in the Arc Jurassien. Swiss Medical Network is currently discussing possible acquisitions with several healthcare providers, mainly in outpatient activity. Also, as previously disclosed, AEVIS could progressively reduce its stake in Swiss Medical Network if new strategic investors were to come on board.
After an excellent 2019/2020 winter season, particularly in the mountain hotels, the closure of all hotels as of 19 March 2020 had a lasting impact on the results of the hospitality segment. Since the staggered reopening of four hotels (La Réserve Eden au Lac, Bellevue Palace, Grand Hotel Victoria-Jungfrau and Mont Cervin Palace), the level of activity and the average prices in the summer season 2020 were well below previous years. In addition to the lack of foreign guests, the almost complete absence of MICE business (meetings, incentives, conventions, exhibitions), especially in the Bellevue Palace in Berne, was a particular burden. Greater popularity among domestic guests and the growing restaurant business were only partially able to compensate for this decline. The Group reacted quickly and with targeted measures to the pandemic. The InterContinental in Davos and the Crans Ambassador in Crans Montana were not reopened for economic reasons while only one hotel was returned to operation in Zermatt. Additionally, with the introduction of short-time working and Group-wide personnel planning, the Group succeeded in outperforming its competitors even under difficult conditions.
The number of overnight stays rose by 13.6% to 62'238, while the average room rate remained stable at CHF 384. Revenues in the hospitality segment increased by 49.8% to CHF 43.8 million (1H2019: CHF 29.2 million) driven by the acquisitions of the Mont Cervin Palace and Monte Rosa hotels in Zermatt (consolidated since 1 November 2019) and the Hotel InterContinental in Davos (consolidated since 1 January 2020). In organic terms, the recorded decrease in revenues was 51.5%. The increase of the mountain hotel portfolio led to a positive operating result, as highlighted by an EBITDAR of CHF 5.5 million, corresponding to a margin of 12.6%.
In order to ensure optimum long-term cooperation between its different hotels, the real estate subsidiary Swiss Hotel Properties SA will focus on owning four- and fivestar hotels. It now controls 17 unique landmark properties in its portfolio, located in the most sought-after locations of Switzerland, totalling 92'272 sqm and 663 rooms. The total value of the portfolio amounts to approximately CHF 435 million, with yearly rental income between CHF 15 million and CHF 20 million. The properties in Zermatt, namely the Mont Cervin Palace hotel and Petit Cervin buildings, were formally added to the portfolio in July 2020, after the balance sheet date, and will reduce rental charges in the consolidated result.
Total revenues reached CHF 346.6 million, 1.5% below the CHF 351.8 million (adjusted, excluding the investment gain of CHF 193.8 million in 2019) achieved a year ago. EBITDAR amounted to CHF 38.3 million compared to CHF 47.9 million (excluding the investment gain of 193.8 million) in the previous year. This corresponds to a very solid operating margin of 12.7% and confirms the good work that AEVIS delivered in the challenging reporting period.
In June 2020, AEVIS repaid its CHF 55.0 million bond that reached maturity. In the reporting period, the company's balance sheet was extended to CHF 1.3 billion after the addition of further real estate assets, while it continues to be solidly capitalized with an equity ratio of 31.2%.
The start to 2020 was encouraging in all of AEVIS's focus sectors and helped to mitigate the negative effects of the Covid-19 crisis during the spring and early summer. In recent weeks, visibility improved in the hospital segment, while developments in the hospitality sector, which contributes approximately one fifth of Group revenues, remain impossible to predict as long as the Confederation maintains its policy of quarantines with variable geometry. AEVIS is therefore refraining from publishing revenue objectives at the Group level for the remainder of 2020, but the EBITDA margin and cash flow from operating activities will remain largely positive, provided that the current trend continues and no further restrictive measures are resumed.
Capacity utilization in the hospitals is very good again since June, but the losses in revenue and margins suffered in the second quarter will not be offset until the end of the year. Swiss Medical Network benefits from its decentralised organisation and agility. Teleworking was already introduced in the Group five years ago, and the administration is largely digitised, with a cloud-based IT architecture implemented in recent years with Swisscom.
The coming months will of course continue to be challenging for the tourism and hotel industry. The Group's hotels cannot rely on additional domestic tourism to cushion the cancellations of international guests and the continuing weak MICE activities. The planning of the coming winter season is still subject to the Swiss framework policies that will be applicable, and bookings are being received more slowly and at much shorter notice than in previous years. AEVIS will probably take the opportunity of this troubled period to close several hotels and perform the planned substantial makeover and transformation works, in order to be able to reinforce its market share and remain a leader in the industry when the situation normalizes. The hotel portfolio is solely made up of the jewels of the Swiss hotel industry and its value can only continue to increase once the crisis is over.
Christian Wenger Antoine Hubert Chairman of the Board Delegate of the Board
The network's growth path continued with the integration of Klinik Belair in Schaff hausen (4Q2019) and the two clinics of Hôpital du Jura bernois in January 2020. As such, Swiss Medical Network has extended its footprint to 21 hospitals and a network of health centres in 13 diff erent cantons in all three language regions of Switzerland.
I Privatklinik Villa im Park
I Schmerzklinik Basel
I Privatklinik Siloah I Hôpital du Jura Bernois
(35%, from 2020)
I Clinique Générale Ste-Anne
GENEVA I Clinique Générale- Beaulieu
SCHAFFHAUSEN I Privatklinik Belair
I Privatklinik Obach
I Rosenklinik Rapperswil (40%)
I Clinica Sant'Anna I Clinica Ars Medica
I Clinique de Valère
294.6
EMPLOYEES
EBITDAR MARGIN
3'830
15.7%
26'937
ADMITTING PHYSICIANS
1'193
BEDS
2'467
INTERVENTIONS
With the acquisition of the Seiler Hotels in Zermatt (4Q2019) and the InterContinental in Davos as well as the reopening of the La Réserve Eden au Lac in Zurich in January 2020, the portfolio of operating hotels increased to eight luxury establishments in attractive locations. The portfolio is diversified between typical winter destinations, summer locations and city hotels.
I InterContinental Davos
I La Réserve Eden au Lac
OVERNIGHT STAYS
62'238
12.6%
EMPLOYEES
827
TOTAL ROOMS 847
SUITES
279
Ø ROOM RATE
384
Victoria-Jungfrau Collection l Hospitality
11
Spontini
Following the deconsolidation of the healthcare infrastructure properties, the real estate segment consists of hotel properties, the building of Clinique Nescens Paris Spontini and a plot of land in Crans Montana. The portfolio was strengthened by acquiring several properties in Zermatt and Davos and the Group progressed to become a major player in the Swiss luxury hotel industry.
I Victoria-Jungfrau Grand Hotel & SPA
I InterContinental Davos
I La Réserve Eden au Lac
* As of July 2020
MARKET VALUE IN CHF MILLION*
PROPERTIES
LOCATIONS
18
6
EBITDAR MARGIN
15–20
RENTAL INCOME IN CHF MILLION
93'382
RENTAL SURFACE SQM
Consolidated Financial Statements
| (In thousands of CHF) | NOTE | HY 2020 | HY 2019 |
|---|---|---|---|
| Revenue from operations | 338'350 | 345'102 | |
| Other revenue | 6 | 8'204 | 200'485 |
| Total revenue | 346'554 | 545'587 | |
| External services | (43'763) | (44'405) | |
| Net revenue | 302'791 | 501'182 | |
| Production expenses | (76'253) | (71'753) | |
| Personnel expenses | (138'007) | (139'660) | |
| Other operating expenses | (50'188) | (48'093) | |
| EBITDAR (Earnings before interest, taxes, depreciation, amortisation and rental expenses) |
38'343 | 241'676 | |
| Rental expenses | (23'927) | (11'688) | |
| EBITDA | 14'416 | 229'988 | |
| Depreciation on tangible assets | (20'577) | (22'480) | |
| Amortisation on intangible assets | (3'250) | (6'425) | |
| EBIT | (9'411) | 201'083 | |
| Financial result | 7 | (7'374) | (11'951) |
| Share of profit/(loss) of associates | 3'047 | (1'701) | |
| Profit/(loss) before taxes | (13'738) | 187'431 | |
| Income taxes | 8 | (363) | 14'687 |
| Profit/(loss) for the period | (14'101) | 202'118 | |
| - Thereof attributable to shareholders of AEVIS VICTORIA SA | (15'777) | 192'312 | |
| - Thereof attributable to minority interests | 1'676 | 9'806 | |
| Non-diluted earnings per share (in CHF) | 9 | (0.20) | 2.49 |
| Diluted earnings per share (in CHF) | 9 | (0.20) | 2.44 |
| Assets Cash and cash equivalents 41'819 Marketable securities 845 Trade receivables 124'223 Other receivables 38'693 Inventories 27'786 Accrued income and prepaid expenses 47'780 Total current assets 281'146 Tangible assets 785'005 Intangible assets 25'311 Financial assets 226'580 Total non-current assets 1'036'896 Total assets 1'318'042 Liabilities and equity Trade payables 82'497 Other current liabilities 41'437 Short-term financial liabilities 165'314 Other short-term borrowings 11'056 Accrued expenses and deferred income 62'986 Short-term provisions 572 Total current liabilities 363'862 Long-term financial liabilities 458'193 Other long-term borrowings 16'981 Other non-current liabilities 10'366 Long-term provisions 57'062 Total non-current liabilities 542'602 Total liabilities 906'464 Equity Share capital 80'391 Capital reserves 186'777 Treasury shares (5'037) |
(In thousands of CHF) | 30.06.2020 | 31.12.2019 | |
|---|---|---|---|---|
| 40'236 | ||||
| 845 | ||||
| 136'530 | ||||
| 41'708 | ||||
| 26'738 | ||||
| 36'780 | ||||
| 282'837 | ||||
| 673'885 | ||||
| 24'730 | ||||
| 209'109 | ||||
| 907'724 | ||||
| 1'190'561 | ||||
| 100'632 | ||||
| 28'742 | ||||
| 68'221 | ||||
| 1'856 | ||||
| 60'568 | ||||
| 573 | ||||
| 260'592 | ||||
| 410'231 | ||||
| 15'065 | ||||
| 3'082 | ||||
| 57'756 | ||||
| 486'134 | ||||
| 746'726 | ||||
| 80'391 | ||||
| 186'827 | ||||
| (864) | ||||
| Offset goodwill (107'358) |
(93'924) | |||
| Currency translation differences (1'561) |
(1'278) | |||
| Retained earnings 199'225 |
215'161 | |||
| Shareholders' equity excl. minority interests 352'437 |
386'313 | |||
| Minority interests 59'141 |
57'522 | |||
| Shareholders' equity incl. minority interests 411'578 |
443'835 | |||
| Total liabilities and equity 1'318'042 |
1'190'561 |
| (In thousands of CHF) | CAPITAL SHARE |
RESERVES CAPITAL |
TREASURY SHARES |
GOODWILL OFFSET |
TRANSLATION DIFFERENCES CURRENCY |
EARNINGS RETAINED |
TOTAL EXCL. INTERESTS MINORITY |
INTERESTS MINORITY |
TOTAL INCL. INTERESTS MINORITY |
|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2019 | 78'591 | 244'114 | (13'575) | (36'037) | (825) | 51'960 | 324'228 | 120'798 | 445'026 |
| Profit for the period | – | – | – | – | – | 192'312 | 192'312 | 9'806 | 202'118 |
| Dividend payments | – | – | – | – | – | – | – | (1'592) | (1'592) |
| Acquisition of subsidiaries | – | – | – | (663) | – | – | (663) | – | (663) |
| Disposal of subsidiaries | – | – | – | (17'816) | – | – | (17'816) | (48'918) | (66'734) |
| Purchase of minority interests | – | – | – | – | – | 6 | 6 | (31) | (25) |
| Purchase of treasury shares | – | – | (23'522) | – | – | – | (23'522) | – | (23'522) |
| Sale of treasury shares | – | 4'775 | 36'940 | – | – | – | 41'715 | – | 41'715 |
| Share-based payments | – | 182 | – | – | – | – | 182 | – | 182 |
| Currency translation differences | – | – | – | – | (146) | – | (146) | – | (146) |
| Balance at 30 June 2019 | 78'591 | 249'071 | (157) | (54'516) | (971) | 244'278 | 516'296 | 80'063 | 596'359 |
| Balance at 1 January 2020 | 80'391 | 186'827 | (864) | (93'924) | (1'278) | 215'161 | 386'313 | 57'522 | 443'835 |
| Profit/(loss) for the period | – | – | – | – | – | (15'777) | (15'777) | 1'676 | (14'101) |
| Dividend payments | – | – | – | – | – | – | – | (118) | (118) |
| Acquisition of subsidiaries | – | – | – | (13'434) | – | – | (13'434) | – | (13'434) |
| Purchase of minority interests | – | – | – | – | – | (159) | (159) | 61 | (98) |
| Purchase of treasury shares | – | – | (5'279) | – | – | – | (5'279) | – | (5'279) |
| Sale of treasury shares | – | (50) | 1'106 | – | – | – | 1'056 | – | 1'056 |
| Currency translation differences | – | – | – | – | (283) | – | (283) | – | (283) |
| Balance at 30 June 2020 | 80'391 | 186'777 | (5'037) | (107'358) | (1'561) | 199'225 | 352'437 | 59'141 | 411'578 |
| (In thousands of CHF) | HY 2020 | HY 2019 |
|---|---|---|
| Profit/(loss) for the period | (14'101) | 202'118 |
| Changes in provisions (incl. deferred taxes) | (769) | (18'868) |
| Depreciation and amortisation | 23'827 | 28'905 |
| (Gain)/loss from sale of tangible assets | 70 | (43) |
| (Gain)/loss from sale of subsidiaries | – | (193'799) |
| (Gain)/loss from sale of financial assets and marketable securities | (20) | – |
| Share of (profit)/loss from associates | (3'047) | 1'701 |
| Dividends received from associates | 8'343 | – |
| Share-based payments | – | 182 |
| Change in contribution reserve and other non-cash items | (4) | 2'069 |
| Cash flow from operating activities before changes in working capital | 14'299 | 22'265 |
| Change in trade receivables | 13'495 | 3'186 |
| Change in inventories | (764) | (1'400) |
| Change in other receivables and prepaid expenses | (7'030) | 20'079 |
| Change in trade payables | (18'278) | (33'137) |
| Change in other liabilities and accrued expenses | 10'858 | (3'856) |
| Cash flow from operating activities | 12'580 | 7'137 |
| Purchase of tangible assets | (124'764) | (46'195) |
| Proceeds from disposal of tangible assets | 9 | 101 |
| Purchase of intangible assets | (3'841) | (5'176) |
| Acquisition of subsidiaries, net of cash acquired | 1'376 | (62) |
| Divestment of subsidiaries, net of cash disposed | – | 305'957 |
| Investments in financial assets and marketable securities | (32'784) | (7'911) |
| Divestments of financial assets and marketable securities | 1'575 | 1 |
| Cash flow from investing activities | (158'429) | 246'715 |
| Dividends paid to minority interests | (118) | (1'592) |
| Repayment of bond | (55'000) | (145'000) |
| Sale/(purchase) of treasury shares | (4'223) | 18'193 |
| Change in minority interests | (98) | (25) |
| Change in short-term financial liabilities | 2'093 | (45) |
| Change in long-term financial liabilities | 186'401 | (81'376) |
| Change in other long-term liabilities and borrowings | 18'401 | (43'940) |
| Cash flow from financing activities | 147'456 | (253'785) |
| Currency translation effect on cash and cash equivalents | (24) | (3) |
| Change in cash and cash equivalents | 1'583 | 64 |
| Cash and cash equivalents at beginning of the period | 40'236 | 34'466 |
| Cash and cash equivalents at the end of the period | 41'819 | 34'530 |
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 2020. 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 2019.
The consolidated interim financial statements were authorised for issue by the Board of Directors on 17 September 2020.
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 coronavirus pandemic has had a significant impact on the Group's business performance during the first half of 2020. The Group's subsidiaries, which operate in different sectors, were affected to varying degrees by this global pandemic. The Board of Directors and the Management have analysed the possible scenarios depending on the pandemic's course and have defined and initiated corresponding measures. The situation is continuously reassessed and the implementation of the measures systematically monitored. The Board of Directors also analysed the effects of the global pandemic in regards to the recognition of income and expenses in the extraordinary result.
The following changes to the scope of consolidation took place in the first half of 2020:
| CAPITAL SHARE | CAPITAL SHARE | ||
|---|---|---|---|
| ENTITY | EVENT / DATE | 30.06.2020 | 31.12.2019 |
| GENERALE BEAULIEU HOLDING SA | Increase in participation on 07.02.2020 | 69.45% | 69.40% |
| Laboratoires Genolier SA | Increase in participation on 07.01.2020 | 92.26% | 89.13% |
| Weriwald AG | Acquired on 01.01.2020 | 100.00% | – |
| HOPITAL DU JURA BERNOIS S.A. | Acquired on 01.01.2020 | 35.00% | – |
| NESCENS SA | Increase in participation on 07.01.2020 | 43.40% | 36.17% |
GENERALE BEAULIEU HOLDING SA and HOPITAL DU JURA BERNOIS S.A. are holding companies with several subsidiaries. All group companies are listed in note 11.
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.
19
The Group consists of the reported segments in the tables below. The decision makers measure the performance of the segments using the key figure EBITDA (Earnings before interest, taxes, depreciation, amortisation). The financial information for each segment is thus shown up to EBITDA.
| HY 2020 | HOSPITA | REAL | CORPO | ELIMINA | |||
|---|---|---|---|---|---|---|---|
| (In thousands of CHF) | HOSPITALS | LITY | ESTATE | OTHERS | RATE | TIONS | TOTAL |
| Net revenue 3rd | 250'718 | 43'777 | 4 | 8'207 | 85 | – | 302'791 |
| Net revenue IC | 76 | – | 3'631 | 124 | – | (3'831) | – |
| Net revenue | 250'794 | 43'777 | 3'635 | 8'331 | 85 | (3'831) | 302'791 |
| Production expenses | (66'183) | (8'868) | – | (1'229) | – | 27 | (76'253) |
| Personnel expenses | (107'174) | (21'608) | (295) | (5'753) | (3'177) | – | (138'007) |
| Other operating expenses | (37'996) | (7'793) | (768) | (2'309) | (1'495) | 173 | (50'188) |
| EBITDAR* | 39'441 | 5'508 | 2'572 | (960) | (4'587) | (3'631) | 38'343 |
| EBITDAR margin | 15.7% | 12.6% | 70.8% | – | – | – | 12.7% |
| Rental expenses | (21'176) | (4'847) | – | (1'203) | (332) | 3'631 | (23'927) |
| EBITDA | 18'265 | 661 | 2'572 | (2'163) | (4'919) | – | 14'416 |
| EBITDA margin | 7.3% | 1.5% | 70.8% | – | – | – | 4.8% |
| HY 2019 (In thousands of CHF) |
HOSPITALS | HOSPITA LITY |
REAL ESTATE |
OTHERS | CORPO RATE |
ELIMINA TIONS |
TOTAL |
|---|---|---|---|---|---|---|---|
| Net revenue 3rd | 268'770 | 28'358 | 2'620 | 7'457 | 193'977 | – | 501'182 |
| Net revenue IC | 138 | 871 | 23'706 | 1'745 | – | (26'460) | – |
| Net revenue | 268'908 | 29'229 | 26'326 | 9'202 | 193'977 | (26'460) | 501'182 |
| Production expenses | (67'233) | (4'796) | – | (1'368) | – | 1'644 | (71'753) |
| Personnel expenses | (113'435) | (15'992) | (169) | (6'569) | (3'495) | – | (139'660) |
| Other operating expenses | (37'133) | (4'427) | (2'520) | (2'461) | (2'662) | 1'110 | (48'093) |
| EBITDAR* | 51'107 | 4'014 | 23'637 | (1'196) | 187'820 | (23'706) | 241'676 |
| EBITDAR margin | 19.0% | 13.7% | 89.8% | – | – | – | 48.2% |
| Rental expenses | (27'279) | (5'410) | (727) | (1'607) | (371) | 23'706 | (11'688) |
| EBITDA | 23'828 | (1'396) | 22'910 | (2'803) | 187'449 | – | 229'988 |
| EBITDA margin | 8.9% | –4.8% | 87.0% | – | – | – | 45.9% |
* Earnings before interest, taxes, depreciation, amortisation and rent
| (In thousands of CHF) | HY 2020 | HY 2019 |
|---|---|---|
| Gain on sale of subsidiaries | – | 193'799 |
| Other revenue | 8'204 | 6'686 |
| Total other revenue | 8'204 | 200'485 |
The gain on sale of subsidiaries in 2019 resulted from the partial sale of Infracore SA.
| (In thousands of CHF) | HY 2020 | HY 2019 |
|---|---|---|
| Interest income | 300 | 280 |
| Gain on sale of financial assets and marketable securities | 20 | – |
| Dividend income | 10 | – |
| Other financial income | 229 | 63 |
| Total financial income | 559 | 343 |
| Interest expenses | (7'251) | (11'160) |
| Other financial expenses | (682) | (1'134) |
| Total financial expenses | (7'933) | (12'294) |
| Financial result | (7'374) | (11'951) |
The positive effect in 2019 results from the changes in income tax rates in connection with the Federal Act on Tax Reform and AHV Financing (TRAF) accepted by public referendum on 19 May 2019. The Group has adjusted the applicable tax rates for the calculation of the deferred tax liabilities on assets and liabilities in those cantons where the legislative process has been completed and an enactment date of the new law defined.
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 2020 | HY 2019 | |
|---|---|---|
| Net profit/(loss) attributable to AEVIS VICTORIA SA shareholders (in thousands of CHF) |
(15'777) | 192'312 |
| Weighted average number of shares outstanding | 80'149'263 | 77'136'079 |
| Non-diluted earnings per share (in CHF) | (0.20) | 2.49 |
| Net profit/(loss) attributable to AEVIS VICTORIA SA shareholders (in thousands of CHF) |
(15'777) | 192'312 |
| Weighted average number of shares outstanding | 80'149'263 | 77'136'079 |
| Adjustment for assumed exercise of share-based payments | – | 1'800'000 |
| Weighted average potential number of shares outstanding | 80'149'263 | 78'936'079 |
| Diluted earnings per share (in CHF) | (0.20) | 2.44 |
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 | 30.06.2020 | 31.12.2019 | |
| 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) | 69.5% | 69.4% |
| Centre Médico-Chirurgical des Eaux-Vives SA | Geneva | Day clinic | a) | 100.0% | 100.0% |
| CLINIQUE GENERALE-BEAULIEU SA | Geneva | Hospital | a) | 69.5% | 69.4% |
| GRGB Santé SA | Geneva | Hospital | b) | 34.7% | 34.7% |
| GSMN Suisse SA | Genolier | Hospitals | a) | 100.0% | 100.0% |
| HerzGefässKlinik Bethanien AG | Zurich | Laboratory | c) | 20.0% | 20.0% |
| Hôpital de Moutier SA | Moutier | Hospital | c) | 35.0% | – |
| HOPITAL DU JURA BERNOIS S.A. | Saint-Imier | Hospital | c) | 35.0% | – |
| IRJB Institut de Radiologie du Jura Bernois SA | Saint-Imier | Radiology institute | a) | 51.0% | 51.0% |
| IRJB Institut de Radiologie du Jura Bernois SA (held by HOPITAL DU JURA BERNOIS S.A.) |
Saint-Imier | Radiology institute | c) | 17.2% | – |
| IRP Institut de Radiologie Providence SA | Neuchâtel | Radiology institute | a) | 51.0% | 51.0% |
| Klinik Belair AG | Schaffhausen | Hospital | a) | 100.0% | 100.0% |
| Klinik Pyramide am See AG | Zurich | Hospital | c) | 20.0% | 20.0% |
| MEDICENTRE MOUTIER SA | Moutier | Health center | c) | 17.9% | – |
| Médicentre Tavannes SA | Tavannes | Health center | c) | 35.0% | – |
| Permanence médicale de Fribourg SA | Fribourg | Health center | c) | 33.3% | 33.3% |
| Pharmacie Interjurassienne SA PIJ | Moutier | Institutional pharmacy | c) | 17.5% | – |
| Rosenklinik AG | Rapperswil-Jona | Hospital | c) | 40.0% | 40.0% |
| Swiss Medical Network Hospitals SA | Fribourg | Hospitals | a) | 100.0% | 100.0% |
| Swiss Visio SA | Genolier | Ophthalmology | a) | 80.0% | 80.0% |
| Hospitality | |||||
| Victoria-Jungfrau AG | Interlaken | Holding company | a) | 100.0% | 100.0% |
| CACM hôtels SA | Sion | Hotel | a) | 100.0% | 100.0% |
| Golf Mischabel AG | Randa | Golf course | c) | 23.9% | 23.9% |
| 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% |
| Seiler Hotels AG | Zermatt | Hotels | a) | 100.0% | 100.0% |
| Welcome Parking AG | Täsch | Parking | c) | 50.0% | 50.0% |
| Weriwald AG | Davos | Hotel | a) | 100.0% | – |
| Real estate | |||||
| GENERALE-BEAULIEU IMMOBILIERE SA | Geneva | Healthcare real estate | c) | 29.8% | 29.8% |
| Infracore SA | Fribourg | Healthcare real estate | c) | 29.8% | 29.8% |
| SCI Foncière François 1er | Paris (FR) | Healthcare real estate | a) | 100.0% | 100.0% |
| Swiss Property Advisors AG | Fribourg | Real estate management | a) | 100.0% | 100.0% |
| Swiss Hotel Properties AG | Interlaken | Hospitality real estate | a) | 100.0% | 100.0% |
| IN % ON GROUP LEVEL | ||||||
|---|---|---|---|---|---|---|
| SEGMENT / COMPANY NAME | LOCATION | ACTIVITY | 30.06.2020 | 31.12.2019 | ||
| Telemedicine | ||||||
| Medgate Holding AG 1) | Basel | Holding company | c) | 40.0% | 40.0% | |
| Medgate Integrated Care Holding AG | Basel | Holding company | c) | 40.0% | 40.0% | |
| Medgate (Asia) Holdings Pty Ltd | Darlinghurst (AU) | Holding company | c) | 32.0% | 32.0% | |
| Medgate (Indonesia) Holdings Pty Ltd | Sydney (AU) | Holding company | c) | 32.0% | 32.0% | |
| Medgate (Philippines) Holdings Pty Ltd | Sydney (AU) | Holding company | c) | 32.0% | 32.0% | |
| TMIP Holdings Pty Ltd | Sydney (AU) | Holding company | c) | 32.0% | 32.0% | |
| 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% | 24.0% | |
| Medgate Asia-Pacific AG (merged) 1) | Basel | Telemedicine | c) | – | 40.0% | |
| Medgate Deutschland GmbH | Bad Neustadt (DE) | Telemedicine | c) | 19.6% | 19.6% | |
| Medgate International AG (merged) 1) | Basel | Telemedicine | c) | – | 40.0% | |
| Medgate Mini Clinic AG | Basel | Mini clinic | c) | 39.0% | 39.0% | |
| Medgate Philippines Inc | Manila (PH) | Telemedicine | c) | 32.0% | 32.0% | |
| Medgate Technologies AG | Basel | IT service company | c) | 24.0% | 24.0% | |
| Medgate (Philippines) Holdings Pty Ltd-Branch Manila (PH) | Telemedicine | c) | 32.0% | 32.0% | ||
| Others | ||||||
| Nescens | ||||||
| Laboratoires Genolier SA | Genolier | Cosmetics | a) | 92.3% | 89.1% | |
| Nescens Genolier SA | Genolier | Patient hotel | a) | 100.0% | 100.0% | |
| NESCENS SA | Genolier | Better-aging | c) | 43.4% | 36.2% | |
| Healthcare incubator | ||||||
| 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) | 100.0% | 100.0% | |
| 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% |
1) Medgate Asia-Pacific AG and Medgate International AG were merged in Mai 2020 into Medgate Holding AG with retroactive effect from 01.01.2020.
a) Fully consolidated
b) Proportional method
c) Equity method
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