Press release

Fribourg, 30 September 2015

AEVIS VICTORIA: Revenue growth of 8.2% to CHF 291.0 million in first Half-year 2015

AEVIS VICTORIA SA (AEVIS) today published its Half-Year Report 2015. The company further sharpened its profile and increased its level of specialisation in the reporting period. Most importantly, AEVIS successfully completed the build-up of its third pillar of activities with the 100% integration of the luxury hotel business and the integration of Victoria in its name.

AEVIS realised total revenues of CHF 291.0 million, up by 8.2% from the previous year. EBITDA declined slightly to CHF 33.0 million (2014: CHF 36.1 million) or 11.3% (2014: 13.4%) of revenues, amongst others due to lower TARMED and DRG tariffs for GSMN, fewer foreign patients and the negative impact of the consolidation of the hotel subsidiary as of Q1 2015, the three first months of the year traditionally being the least performing in the hotel sector (in 2014, the hotel business was consolidated as of the second quarter). Financial expenses of more than CHF 11 million following substantial investments, acquisitions and the issuance of three bonds in the recent past further impacted results. As a consequence, a net profit for the period under review of CHF 0.07 million was achieved compared to CHF 2.80 million a year ago.

Consolidation of Genolier Swiss Medical Network advanced
Genolier Swiss Medical Network (GSMN) continued its development with the integration of Clinique Montbrillant in La Chaux-de-Fonds. Surging business with Swiss patients resulted in total revenues of the 15 clinics and associate activities of CHF 217.0 million in the reporting period, 2.3% above the previous year. Anticipated TARMED (the ambulatory tariff structure) price reductions of 8.5% for 2015 had a negative impact on the turnover in the amount of CHF 1.7 million. In addition, DRG system changes together with reduced Baserates in the combined amount of CHF 0.8 million further impacted the revenues. These decreases have a direct impact on the net result. The number of foreign patients decreased, mainly due to sanctions against Russia, the decrease of oil prices and intensified competition in the field of medical tourism, and led to a loss of sales in the amount of CHF 7 million. To counteract these developments, GSMN initiated additional measures to increase its activity and efficiency.

Swiss Healthcare Properties grows rental income
Swiss Healthcare Properties (SHP) acquired several buildings and projects in the first half-year 2015. SHP generated a rental income of CHF 18.5 million up by 16.7% compared to the same period last year. The real estate portfolio of SHP consisted of 29 properties, all fully let (no vacancies), with a total rentable surface of 126'195 m2. The portfolio reached a market value of CHF 740.7 million at the end of June 2015. The hotel buildings will be integrated in the real estate pillar during the second half year of 2015, thus increasing the portfolio value to over CHF 900 million.

Victoria-Jungfrau Collection attracts more guests
Victoria Jungfrau Collection (VJC) achieved a turnover of CHF 32.9 million in the first half-year 2015, down 3.5% from the previous year. The number of guests increased by 2% to 75'415, mainly due to a positive development in business groups and leisure groups, while the number of overnight stays dropped by 1.2% to 45'265 and the average room rate declined by 2.8% to CHF 345. The first quarter is usually the most challenging period for hotels in Switzerland and 2015 was no exception. Since April, however, results have been constantly improving and the summer months were clearly above average. As a consequence, results at the end of July 2015 were already above the previous year, highlighted by a turnover of CHF 40.5 million, a total of 93'794 guests and an average room rate of CHF 359.

Mid-term outlook
In the current business year 2015, AEVIS expects to realise a turnover of approximately CHF 600 million, based on an unchanged portfolio consolidated over a 12-month period. Despite the seasonal impacts on AEVIS' profitability level during the first half-year 2015, AEVIS continues to target an EBITDA margin of more than 20% in the mid-term based on optimised processes and higher utilisation of its infrastructure. This will imply a free cash flow margin of around 10% on which a payout ratio of 30% will be applied.

Detailed reporting
AEVIS VICTORIA SA's Half-year Report 2015 can be downloaded via this link:

http://www.aevis.com/aevis/pdf/AEVIS_HY_2015.pdf

For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Edwin van der Geest, vdg@dynamicsgroup.ch, +41 (0) 43 268 32 35 or +41 (0) 79 330 55 22
Philippe R. Blangey, prb@dynamicsgroup.ch, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32

AEVIS VICTORIA SA - Investing for a better life
AEVIS VICTORIA SA invests in services to people, healthcare, life sciences, hotels and lifestyle. AEVIS's main shareholdings are Genolier Swiss Medical Network, the second largest group of private clinics in Switzerland, Victoria-Jungfrau Collection AG, a luxury hotel group managing four palace hotels in Switzerland, Swiss Healthcare Properties AG, a company specialised in healthcare real estate and NESCENS SA, a brand dedicated to better aging. AEVIS is also active in the ambulance business with Ambulances Services Odier SA. AEVIS is listed on the Swiss Reporting Standard of the SIX Swiss Exchange (AEVS.SW).
www.aevis.com