AEVIS VICTORIA SA (AEVS.SW) – Publication of the 2023 revenue – Biotech Investments

Ad hoc announcement pursuant to Art. 53 LR

Fribourg, 21 March 2024

AEVIS VICTORIA SA (AEVS.SW) – Publication of the 2023 revenue

AEVIS VICTORIA SA (AEVIS) saw contrasting revenue developments in its holdings in 2023. A record year for hospitality & services, while healthcare experienced a stagnation. However, the overall value of the participations increased significantly. The investment company expects a net loss of between CHF 35 and 45 million due to the absence of M&A transactions affecting the result.

MRH Switzerland SA (ex-Victoria Jungfrau AG), the subsidiary dedicated to the hotel operations, achieved revenues of CHF 170.5 million in 2023, up by 10.3% (2022: CHF 154.5 million). Benefiting from investments and repositioning, the average room rate increased from CHF 412 in 2019 to CHF 559 in 2023, enabling the absorption of rising costs due to inflation and the geopolitical situation. Destinations like Zermatt and Interlaken performed exceptionally well, buoyed by the positive momentum in Switzerland’s tourism sector. The organic growth of 6.4% recorded in 2023 continued into the first months of 2024.

Swiss Hotel Properties SA, the hotel real estate subsidiary, saw the value of its real estate portfolio grow to approximately CHF 855 million, mainly due to acquisitions and developments in Zermatt and Interlaken.

Batgroup, a minority and non-consolidated subsidiary of AEVIS specializing in on-demand home services, increased revenues by 10.0% to CHF 34.1 million, of which CHF 31.5 million in Switzerland. In the fourth quarter of 2023, the company achieved a positive EBITDA for the first time. Batgroup acquired Putzfrau.ch in 2023, the leading company in the sector in the German-speaking part of Switzerland, securing its top position in Switzerland.

Swiss Medical Network, an operating subsidiary dedicated to healthcare, generated revenues of CHF 768.7 million, taking into account the deconsolidation of Réseau de l’Arc. On a like-for-like basis, revenues remained stable, with organic growth of 0.3%. The overall increase in costs, especially energy, personnel expenses and materials, heavily impacts margins, as the fixed medical and hospital tariffs do not allow for the inflation to be passed onto revenues. This problem affects the entire Swiss healthcare sector, both public and private. Swiss Medical Network has initiated various cost-optimization measures in order to regain the margins achieved in 2022 by 2024.

Several exceptional factors have also affected Swiss Medical Network’s profitability, but are essential investments for the future. The development of the integrated care and the Viva project require the creation of structures (primary care) and a dedicated organization, which temporarily affect overall profitability and will only bear fruit in a few years with the development of new integrated care regions. Another exceptional factor is various construction projects, particularly at the Clinique de Genolier (Genolier Innovation Hub) and Privatklinik Bethanien (integration of Privatklinik Pyramide) campuses, which also weighed on the activity and profitability of these two entities in 2023.

Visana Beteiligungen’s investment in Swiss Medical Network, which allowed the realization of the Viva-Réseau de l’Arc integrated care model designed to transform the Swiss healthcare system, confirmed the value of AEVIS’ participation at over CHF 1.4 billion.

Investments in Well Gesundheit AG and AD Swiss Net AG, two minority holdings in digital health platforms, are showing promising developments, with Well becoming the most widely used health app in Switzerland, with over 300’000 users. The digital solutions offered by Well and AD Swiss Net are used in setting up integrated healthcare regions such as Réseau de l’Arc.

Infracore SA, a minority holding of AEVIS dedicated to healthcare infrastructures, achieved stable revenues (excluding revaluation changes) of CHF 59.6 million (2022: CHF 60.0 million). Due to new constructions and increased rental space, the total value of the real estate portfolio rose to CHF 1.29 billion (2022: CHF 1.25 billion), despite negative value adjustments of CHF 16.8 million on existing properties. Infracore SA has 206’267 sqm of rental space across 19 sites, with an average valuation per sqm of CHF 6’238 (2022: CHF 6’368).

AEVIS’ consolidated revenue, a less representative indicator for an investment company, amounted to CHF 953.0 million (2022: CHF 1.14 billion), down due to the deconsolidation of Réseau de l’Arc and the absence of M&A transactions affecting the result. On a like-for-like basis, organic growth stood at 1.5%.

AEVIS will publish its 2023 Annual Report on Thursday 28 March 2024. The investment company expects a net loss after depreciation, amortization and financial expenses of between CHF 35 and 45 million.

For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey, prb@dynamicsgroup.ch, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren, svanderschueren@aevis.com, +41 (0) 79 635 04 10

AEVIS VICTORIA SA – Investing for a better life
AEVIS VICTORIA SA invests in healthcare, hospitality & lifestyle and infrastructure. AEVIS′s main shareholdings are Swiss Medical Network SA (80%, directly and indirectly), the only Swiss private network of hospitals present in the country’s three main language regions, MRH Switzerland AG, a luxury hotel group managing eleven luxury hotels in Switzerland and abroad, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, Swiss Hotel Properties SA, a hospitality real estate division, and NESCENS SA, a brand dedicated to better aging. AEVIS is listed on the Swiss Reporting Standard of the SIX Swiss Exchange (AEVS.SW). www.aevis.com.