--- title: "Interim Financial Report as at 30 September 2024" period: "2024-9m" kind: "financial-report" source_url: "https://corporate.amplifon.com/content/dam/amplifon/archive/en/investors/financial-reports/2024/Interim%20Financial%20Report%20as%20at%2030%20September%202024.pdf" downloaded_at: "2026-06-06" pdf_sha256: "f606249c3264964115395e259bb13bec4e70bf5de57f00e9027d8b2d91ba537e" pdf_size_bytes: 3077722 extractor: "pdfjs-dist-6.0.227" --- --- Interim Financial Report as at 30 September 2024 INDEX PREFACE ....................................................................................................................................4 INTERIM MANAGEMENT REPORT AS AT 30 SEPTEMBER 2024.....................................................5 HIGHLIGHTS...............................................................................................................................6 MAIN ECONOMIC AND FINANCIAL FIGURES ...............................................................................7 INDICATORS...............................................................................................................................8 SHAREHOLDER INFORMATION ................................................................................................. 10 RECLASSIFIED CONSOLIDATED INCOME STATEMENT ................................................................ 12 RECLASSIFIED BALANCE SHEET ................................................................................................. 15 CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT....................................... 17 INCOME STATEMENT REVIEW .................................................................................................. 18 BALANCE SHEET REVIEW .......................................................................................................... 35 ACQUISITION OF COMPANIES AND BUSINESSES ....................................................................... 46 OUTLOOK ................................................................................................................................ 47 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 SEPTEMBER 2024 .... 50 CONSOLIDATED STATEMENT OF FINANCIAL POSITION.............................................................. 50 CONSOLIDATED INCOME STATEMENT ...................................................................................... 52 STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME ..................................................... 53 STATEMENT OF CHANGES IN CONSOLIDATION EQUITY............................................................. 54 STATEMENT OF CONSOLIDATED CASH FLOWS .......................................................................... 56 SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS .......... 57 NOTES...................................................................................................................................... 58 1. General Information.............................................................................................................58 2 --- Interim Financial Report as at 30 September 2024 2. Impacts of the conflict in Middle-East, Ukraine and climate change on the Group’s performance and financial position...............................................................................................59 3. Acquisitions e goodwill.........................................................................................................60 4. Intangible fixed assets with finite useful life........................................................................63 5. Property, plant, and equipment...........................................................................................64 6. Right-of-use assets ...............................................................................................................65 7. Other non-current assets.....................................................................................................66 8. Share capital and treasury shares........................................................................................67 9. Net financial indebtedness...................................................................................................68 10. Financial liabilities ................................................................................................................71 11. Provision for risks and charges.............................................................................................74 12. Lease liabilities .....................................................................................................................75 13. Revenues from sales and services........................................................................................75 14. Operating costs, depreciation and impairment, financial income-expenses and taxes......76 15. Performance Stock Grant.....................................................................................................77 16. Non-recurring significant events..........................................................................................78 17. Earnings (loss) per share ......................................................................................................79 18. Transactions with parents and other related parties ..........................................................80 19. Contingent liabilities ............................................................................................................81 20. Financial risk management ..................................................................................................81 21. Translation of foreign companies’ financial statements......................................................82 22. Segment reporting ...............................................................................................................83 23. Accounting policies ..............................................................................................................88 24. Subsequent events...............................................................................................................93 ANNEXES ................................................................................................................................. 94 Consolidation scope ......................................................................................................................94 Declaration in respect of the Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98 ....................................................................................................99 Disclaimer This report contains forward looking statements (“Outlook”) relating to future events and the Amplifon Group’s operating, economic and financial results. These forecasts, by definition, contain elements of risk and uncertainty, insofar as they are linked to the occurrence of future events and developments. The actual results may be very different with respect to the original forecast due to several factors, the majority of which are out of the Group’s control. 3 --- Interim Financial Report as at 30 September 2024 PREFACE This Interim Financial Report as at 30 September 2024 was prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) endorsed by the European Union and should be read together with the Group’s consolidated financial statements as at and for the year ended 31 December 2023 that includes additional information on the risks and uncertainties that could impact the Group’s operating results or its financial position. 4 --- INTERIM MANAGEMENT REPORT AS AT 30 SEPTEMBER 2024 --- Interim Financial Report as at 30 September 2024 > Interim Management Report HIGHLIGHTS In the first nine months of 2024 Amplifon recorded an increase in revenues which was particularly significant in Americas and APAC thanks to high organic growth and acquisitions, with a slight increase in profitability despite what is still a weak European market and the dilution stemming from the decided acceleration in the growth of the direct Miracle-Ear store network in the United States. First nine months 2024 First nine months 2023 (€ thousands) Recurring Total Recurring Total Economic figures: Revenues from sales and services 1,744,833 1,744,833 1,645,065 1,645,065 Gross operating profit (loss) (EBITDA) 412,234 407,813 385,806 372,585 Operating profit (loss) (EBIT) 191,960 187,539 192,890 179,669 Profit (loss) before tax 148,363 143,942 155,997 142,776 Group net profit (loss) 107,379 104,181 112,815 103,438 The first nine months of the year closed with: - Turnover of €1,744,833 thousand, an increase of 6.1% compared to the same period of the prior year (+8.0% at constant exchange rates); - a gross operating margin (EBITDA) of €407,813 thousand, 9.5% higher than in the nine months of 2023 (+6.9% on a recurring basis); - Group net profit of €104,181 thousand, an increase of €743 thousand compared to the first nine months of 2023, €5,436 lower (-4.8%) on a recurring basis. Net financial debt, excluding lease liabilities, amounts to €1,068,279 thousand compared to €852,130 thousand at year-end 2023. Free cash flow reached a positive €50,560 thousand (compared to € 68,772 thousand in the first nine months of the prior year) and was impacted primarily by higher rent and interest payments, as well as greater absorption of working capital. The significant cash-outs for acquisitions, which amounted to €184,077 thousand (€83,243 thousand in the first nine months of 2023), along with the payment of €65,593 thousand in dividends (€65,361 thousand in the comparison period), the purchase of treasury shares for €20,258 thousand (none were purchased in the comparison period) and the positive cash flow generated by other financial assets of €5,562 thousand, bring cash flow for the reporting period to negative €214,292 thousand versus a negative €83,847 thousand in the first nine months of 2023. 6 --- Interim Financial Report as at 30 September 2024 > Interim Management Report MAIN ECONOMIC AND FINANCIAL FIGURES First nine months 2024 First nine months 2023 (€ thousands) % on % on Change % Non- revenues Non- revenues on Recurring recurring Total recurring Recurring recurring Total recurring recurring Economic figures: Revenues from sales and 1,744,833 - 1,744,833 100.0% 1,645,065 - 1,645,065 100.0% 6.1% services Gross operating profit (loss) 412,234 (4,421) 407,813 23.6% 385,806 (13,221) 372,585 23.5% 6.9% (EBITDA) Operating profit (loss) before the depreciation and 231,076 (4,421) 226,655 13.2% 229,538 (13,221) 216,317 14.0% 0.7% amortization of PPA related assets (EBITA) Operating profit (loss) 191,960 (4,421) 187,539 11.0% 192,890 (13,221) 179,669 11.7% -0.5% (EBIT) Profit (loss) before tax 148,363 (4,421) 143,942 8.5% 155,997 (13,221) 142,776 9.5% -4.9% Group net profit (loss) 107,379 (3,198) 104,181 6.2% 112,815 (9,377) 103,438 6.9% -4.8% 09/30/2024 12/31/2023 Change (€ thousands) Financial figures: Non-current assets 3,172,074 2,976,387 195,687 Net invested capital 2,693,482 2,451,239 242,243 Group net equity 1,118,112 1,100,919 17,193 Total net equity 1,118,265 1,101,678 16,587 Net financial indebtedness 1,068,279 852,130 216,149 Lease liabilities 506,939 497,431 9,508 Total lease liabilities and net financial indebtedness 1,575,217 1,349,561 225,656 First nine months 2024 First nine months 2023 (€ thousands) Free cash flow 50,560 68,772 Cash flow generated from (absorbed by) business combinations (184,077) (83,243) Cash flow provided by (used in) financing activities (80,775) (69,376) Net cash flow from the period (214,292) (83,847) Effect of exchange rate fluctuations on the net financial position (1,857) (3,793) Net cash flow from the period with changes for exchange rate fluctuations (216,149) (87,640) - EBITDA is the operating result before charging amortization, depreciation, impairment of both tangible and intangible fixed assets and the right of use depreciation. - EBITA is the operating result before amortization and impairment of customer lists, trademarks, non-competition agreements and other fixed assets arising from business combinations. - EBIT is the operating result before financial income and charges and taxes. 7 --- Interim Financial Report as at 30 September 2024 > Interim Management Report - Free cash flow represents the cash flow of operating and investing activities before the cash flows used in acquisitions and payment of dividends and the cash flows from or used in other financing activities. INDICATORS 09/30/2024 12/31/2023 09/30/2023 Net financial indebtedness (€ thousands) 1,068,279 852,130 917,633 Lease liabilities (€ thousands) 506,939 497,431 487,635 Total lease liabilities & net financial indebtedness (€ thousands) 1,575,217 1,349,561 1,405,268 Net equity (€ thousands) 1,118,265 1,101,678 1,070,715 Group Net Equity (€ thousands) 1,118,112 1,100,919 1,069,770 Net financial indebtedness/Net Equity 0.96 0.77 0.86 Net financial indebtedness/Group Net Equity 0.96 0.77 0.86 Net financial indebtedness/EBITDA 1.78 1.50 1.63 EBITDA/Net financial expenses 17.20 18.03 21.58 Earnings per share (EPS) (€) 0.46111 0.69285 0.45805 Diluted EPS (€) 0.45766 0.68809 0.63150 EPS (€) adjusted for non-recurring transactions and amortization/depreciation 0.62242 0.91271 0.63150 related to purchase price allocations to tangible and intangible assets Group Net Equity per share (€) 4.958 4.880 4.744 Period-end price (€) 25.81 31.34 28.12 Highest price in period (€) 35.14 36.27 36.27 Lowest price in period (€) 25.74 24.49 25.02 Share price/net equity per share 5.205 6.422 5.928 Market capitalization (€ millions) 5,819.22 7,074.89 6,341.36 Number of shares outstanding 225,501,321 225,746,472 225,510,487 - Net financial indebtedness/net equity is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to total net equity. - Net financial indebtedness/Group net equity is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to the Group’s net equity. - Net financial indebtedness/EBITDA is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to EBITDA for the last four quarters (determined with reference to recurring operations only, based on pro forma figures in case of significant changes to the structure of the Group). - EBITDA/net financial expenses ratio is the ratio of EBITDA for the last four quarters (determined with reference to recurring operations only, based on restated figures in case of significant changes to the structure of the Group) to net interest payable and receivable of the same last four quarters. - Earnings per share (EPS) (€) is the net profit for the period attributable to the parent’s ordinary shareholders divided by the weighted average number of shares outstanding during 8 --- Interim Financial Report as at 30 September 2024 > Interim Management Report the period, considering purchases and sales of treasury shares as cancellations or issues of shares, respectively. - Diluted earnings per share (EPS) (€) is the net profit for the period attributable to the parent’s ordinary shareholders divided by the weighted average number of shares outstanding during the period adjusted for the dilution effect of potential shares. In the calculation of outstanding shares, purchases and sales of treasury shares are considered as cancellations and issues of shares, respectively. - Earnings per share (EPS) adjusted for non-recurring transactions, amortization/depreciation and impairment related to purchase price allocations to tangible and intangible assets (€) is the profit for the period from recurring operations attributable to the parent’s ordinary shareholders divided by the weighted average number of outstanding shares in the period adjusted to reflect the amortization of purchase price allocations. When calculating the number of outstanding shares, the purchases and sales of treasury shares are considered cancellations and share issues, respectively. - Net Equity per share (€) is the ratio of Group equity to the number of outstanding shares. - Period-end price (€) is the closing price on the last stock exchange trading day of the period. - Highest price (€) and lowest price (€) are the highest and lowest prices from 2 January to the end of the period. - Share price/Net equity per share is the ratio of the share closing price on the last stock exchange trading day of the period to net equity per share. - Market capitalization is the closing price on the last stock exchange trading day of the period multiplied by the number of outstanding shares. - The number of shares outstanding is the number of shares issued less treasury shares. 9 --- Interim Financial Report as at 30 September 2024 > Interim Management Report SHAREHOLDER INFORMATION Main shareholders The main shareholders of Amplifon S.p.A. as at 30 September 2024 are: Ampliter S.r.l. Treasury shares Market 42.0% 57.6% 0.4% % of the total share No. of ordinary Shareholder % held capital in voting shares (*) rights Ampliter S.r.l. 95,165,392 42.04% 59.09% Treasury shares 887,299 0.39% 0.28% Market 130,335,929 57.57% 40.63% Total 226,388,620 100.00% 100.00% (*) Number of shares related to the share capital registered with the Company registrar on 30 September 2024 Pursuant to article 2497 of the Italian Civil Code, Amplifon S.p.A. is not subject to management and coordination either by its direct parent Ampliter S.r.l. or its indirect parent. The shares of the parent Amplifon S.p.A. have been listed on the screen-based stock market Euronext Milano (EXM) since 27 June 2001 and since 10 September 2008 in the STAR segment. Amplifon is also included in the FTSE MIB index and in the Stoxx Europe 600 index. The chart shows the performance of the Amplifon share price and its trading volumes from 30 December 2023 to 30 September 2024. As at 30 September 2024 market capitalization was €5,820.19 million. 10 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Dealings in Amplifon shares in the screen-based stock market Euronext Milano (EXM) during the period 30 December 2023 – 30 September 2024, showed: - average daily value: €18,027,489.90; - average daily volume: 579,459 shares; - total volume traded of 113,573,890 shares, or 50.37% of the total number of shares comprising the share capital, net of treasury shares. 11 --- Interim Financial Report as at 30 September 2024 > Interim Management Report RECLASSIFIED CONSOLIDATED INCOME STATEMENT First nine months 2024 First nine months 2023 (€ thousands) Change Non- % on Non- % on % on Recurring recurring (*) Total recurring Recurring Recurring(*) Total recurring recurring Revenues from sales and 1,744,833 - 1,744,833 100.0% 1,645,065 - 1,645,065 100.0% 6.1% services Operating costs (**) (1,337,759) (4,421) (1,342,180) -76.7% (1,264,767) (13,221) (1,277,988) -76,9% -5.8% Other income and costs (**) 5,160 - 5,160 0.3% 5,508 - 5,508 0,3% -6.3% Gross operating profit (loss) 412,234 (4,421) 407,813 23.6% 385,806 (13,221) 372,585 23.5% 6.9% (EBITDA) Depreciation, amortization and impairment losses on non- (84,271) - (84,271) -4.8% (68,360) - (68,360) -4.2% -23.3% current assets Right-of-use depreciation (96,887) - (96,887) -5.6% (87,908) - (87,908) -5.3% -10.2% Operating result before the amortization and impairment 231,076 (4,421) 226,655 13.2% 229,538 (13,221) 216,317 14.0% 0.7% of PPA related assets (EBITA) PPA related depreciation, (39,116) - (39,116) -2.2% (36,648) - (36,648) -2.3% -6.7% amortization and impairment Operating profit (loss) (EBIT) 191,960 (4,421) 187,539 11.0% 192,890 (13,221) 179,669 11.7% -0.5% Income, expenses, valuation and adjustments of financial 283 - 283 0.0% 210 - 210 0.0% 34.8% assets Net financial expenses (41,634) - (41,634) -2.4% (33,410) - (33,410) -2.0% -24.6% Exchange differences, inflation accounting and Fair Value (2,246) - (2,246) -0.1% (3,693) - (3,693) -0.2% 39.2% valuation Profit (loss) before tax 148,363 (4,421) 143,942 8.5% 155,997 (13,221) 142,776 9.5% -4.9% Tax (40,850) 1,223 (39,627) -2.3% (43,179) 3,844 (39,335) -2.6% 5.4% Net profit (loss) 107,513 (3,198) 104,315 6.2% 112,818 (9,377) 103,441 6.9% -4.7% Profit (loss) of minority interests 134 - 134 0.0% 3 - 3 0.0% - Net profit (loss) attributable to 107,379 (3,198) 104,181 6.2% 112,815 (9,377) 103,438 6.9% -4.8% the Group (*) See table at page 14 for details of non-recurring transactions. (**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. 12 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Third Quarter 2024 Third Quarter 2023 (€ thousands) Change Non- % on Non- % on % on Recurring recurring (*) Total recurring Recurring recurring (*) Total recurring recurring Revenues from sales and 567,582 - 567,582 100.0% 531,296 - 531,296 100.0% 6.8% services Operating costs (**) (453,541) (955) (454,496) -79.9% (422,283) (1,937) (424,221) -79.5% -7.4% Other income and costs (**) 953 - 953 0.2% 753 - 753 0.1% 26.6% Gross operating profit (loss) 114,994 (955) 114,039 20.3% 109,765 (1,937) 107,828 20.7% 4.8% (EBITDA) Depreciation, amortization and impairment losses on (28,851) - (28,851) -5.1% (23,010) - (23,010) -4.3% -25.4% non-current assets Right-of-use depreciation (32,834) - (32,834) -5.8% (29,233) - (29,233) -5.6% -12.3% Operating result before the amortization and 53,309 (955) 52,354 9.4% 57,522 (1,937) 55,585 10.8% -7.3% impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (13,762) - (13,762) -2.4% (12,132) - (12,132) -2.3% -13.4% impairment Operating profit (loss) (EBIT) 39,547 (955) 38,592 7.0% 45,390 (1,937) 43,453 8.5% -12.9% Income, expenses, valuation and adjustments of financial - - - 0.0% 3 - 3 0.0% - assets Net financial expenses (15,294) - (15,294) -2.8% (13,568) - (13,568) -2.6% -12.7% Exchange differences, inflation accounting and Fair (789) - (789) -0.1% 389 - 389 0.2% - Value valuation Profit (loss) before tax 23,464 (955) 22,509 4.1% 32,214 (1,937) 30,277 6.1% -27.2% Tax (6,313) 245 (6,068) -1.1% (8,708) 548 (8,160) -1.7% 27.5% Net profit (loss) 17,151 (710) 16,441 3.0% 23,506 (1,389) 22,117 4.4% -27.0% Profit (loss) of minority (330) - (330) -0.1% 35 - 35 0.0% - interests Net profit (loss) attributable 17,481 (710) 16,771 3.1% 23,471 (1,389) 22,082 4.4% -25.5% to the Group (*) See table at page 14 for details of non-recurring transactions. (**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. 13 --- Interim Financial Report as at 30 September 2024 > Interim Management Report The costs relating to the non-recurring transactions highlighted above relate specifically to: - for €1,678 thousand, the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily tax, legal and financial consultancies, as well as the expenses related to the organization of the Extraordinary Shareholders Meeting held on 30 April 2024; - for €1,478 thousand, the second phase of the GAES integration; - for €1,138 thousand, the notional cost of the free, one-off assignment made by the shareholder Ampliter of its Amplifon shares to the Chief Executive Officer recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”; - for €127 thousand, the Bay Audio integration in Australia. First nine First nine (€ thousands) months 2024 months 2023 Costs incurred to define and implement amendments to the Articles of Association including the (1,678) - enhanced voting rights GAES second phase integration costs (1,478) (1,433) Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO (1,138) (11,614) Bay Audio integration costs (127) (174) Impact of the non-recurring items on EBITDA (4,421) (13,221) Impact of the non-recurring items on EBIT (4,421) (13,221) Impact of the non-recurring items on profit before tax (4,421) (13,221) Impact of the above items on the tax burden for the period 1,223 3,844 Impact of the non-recurring items on net profit (3,198) (9,377) Q3 2024 Q3 2023 (€ thousands) Costs incurred to define and implement amendments to the Articles of Association including the - - enhanced voting rights GAES second phase integration costs (755) (543) Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO (158) (1,220) Bay Audio integration costs (42) (174) Impact of the non-recurring items on EBITDA (955) (1,937) Impact of the non-recurring items on EBIT (955) (1,937) Impact of the non-recurring items on profit before tax (955) (1,937) Impact of the above items on the tax burden for the period 245 548 Impact of the non-recurring items on net profit (710) (1,389) 14 --- Interim Financial Report as at 30 September 2024 > Interim Management Report RECLASSIFIED BALANCE SHEET The reclassified Consolidated Balance Sheet aggregates assets and liabilities according to operating functionality criteria, subdivided by convention into the following three key functions: investments, operations and finance. 09/30/2024 12/31/2023 Change (€ thousands) Goodwill 1,942,331 1,799,574 142,757 Customer lists, non-compete agreements, trademarks and location rights 265,927 255,683 10,244 Software, licenses, other int.ass, wip and advances 162,990 160,906 2,084 Property, plant, and equipment 243,501 221,516 21,985 Right of use assets 487,092 478,153 8,939 Fixed financial assets (1) 26,810 16,704 10,106 Other non-current financial assets (1) 43,423 43,851 (428) Total fixed assets 3,172,074 2,976,387 195,687 Inventories 92,868 88,320 4,548 Trade receivables 220,673 231,253 (10,580) Other receivables 143,783 107,042 36,741 Current assets (A) 457,324 426,615 30,709 Total assets 3,629,398 3,403,002 226,396 Trade payables (316,965) (358,955) 41,990 Other payables (2) (368,282) (379,290) 11,008 Provision for risks (current portion) (2,148) (1,268) (880) Short term liabilities (B) (687,395) (739,513) 52,118 Net working capital (A) - (B) (230,071) (312,898) 82,827 Derivative instruments (3) 6,632 12,933 (6,301) Deferred tax assets 82,756 82,701 55 Deferred tax liabilities (102,491) (98,451) (4,040) Provisions for risks (non-current portion) (21,811) (19,379) (2,432) Employee benefits (non-current portion) (12,818) (12,963) 145 Loan fees (4) 2,122 3,007 (885) Other long-term payables (202,911) (180,098) (22,813) NET INVESTED CAPITAL 2,693,482 2,451,239 242,243 Shareholders' equity 1,118,112 1,100,919 17,193 Third parties' equity 153 759 (606) Net equity 1,118,265 1,101,678 16,587 Medium/Long term net financial debt (4) 726,642 719,428 7,214 Short term net financial debt (4) 341,637 132,702 208,935 Total net financial debt 1,068,279 852,130 216,149 Lease liabilities 506,939 497,431 9,508 Total lease liabilities & net financial debt 1,575,217 1,349,561 225,656 NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT 2,693,482 2,451,239 242,243 15 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Notes for reconciling the condensed balance sheet with the statutory balance sheet: (1) “Financial fixed assets” and “Other non-current financial assets” include equity interests valued by using the net equity method, financial assets at fair value through profit and loss and other non-current assets; (2) “Other payables” includes other liabilities, accrued liabilities and deferred income, current portion of liabilities for employees’ benefits and tax liabilities; (3) "Derivatives instruments" includes cash flow hedging instruments not included in the item “Net medium and long-term financial indebtedness”; (4) The item "loan fees" is presented in the balance sheet as a direct reduction of the short-term and medium/long- term components of the items "financial payables" and "financial liabilities" for the short-term and long-term portions, respectively. 16 --- Interim Financial Report as at 30 September 2024 > Interim Management Report CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT The condensed consolidated cash flow statement is a summarized version of the reclassified statement of cash flows set out in the following pages and its purpose is, starting from the EBIT, to detail the cash flows from or used in operating, investing and financing activities. First nine months 2024 First nine months 2023 (€ thousands) Operating profit (loss) (EBIT) 187,539 179,669 Amortization, depreciation and write-downs 220,274 192,916 Provisions, other non-monetary items and gain/losses from disposals 17,024 28,735 Net financial expenses (40,563) (33,971) Taxes paid (54,480) (60,679) Changes in net working capital (84,087) (52,970) Cash flow provided by (used in) operating activities before repayment of lease 245,707 253,700 liabilities Repayment of lease liabilities (96,112) (85,095) Cash flow provided by (used in) operating activities (A) 149,595 168,605 Cash flow provided by (used in) operating investing activities (B) (99,035) (99,833) Free Cash Flow (A) + (B) 50,560 68,772 Net cash flow provided by (used in) acquisitions (C) (184,077) (83,243) Cash flow provided by (used in) investing activities (B) + (C) (283,112) (183,076) Cash flow provided by (used in) operating activities and investing activities (133,517) (14,471) Dividends (65,593) (65,361) Treasury Shares (20,258) - Fees paid on medium/long-term financing (104) (1,413) Capital increases, third parties’ contributions and dividends paid by subsidiaries to (382) (137) third parties Hedging instruments - (1,483) Change in non-current assets 5,562 (982) Net cash flow from the period (214,292) (83,847) Net financial indebtedness at the beginning of the period net of lease liabilities (852,130) (829,993) Effect of exchange rate fluctuations on net financial debt (1,857) (3,793) Changes in net financial debt (214,292) (83,847) Net financial indebtedness at the end of the period net of lease liabilities (1,068,279) (917,633) The impact of non-recurring transactions on free cash flow in the period is shown in the following table. (€ thousands) First nine months 2024 First nine months 2023 Free cash flow 50,560 68,772 Free cash flow generated by non-recurring transactions (see page 46 for details) (2,053) (2,740) Free cash flow generated by recurring transactions 52,613 71,512 17 --- Interim Financial Report as at 30 September 2024 > Interim Management Report INCOME STATEMENT REVIEW Consolidated income statement by segment and geographic area First nine months 2024 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,101,713 366,417 276,466 237 1,744,833 Operating costs (797,387) (277,727) (203,190) (63,876) (1,342,180) Other income and costs 3,070 2,312 (326) 104 5,160 Gross operating profit (loss) (EBITDA) 307,396 91,002 72,950 (63,535) 407,813 Depreciation, amortization and impairment of (36,356) (13,288) (14,287) (20,340) (84,271) non-current assets Right-of-use depreciation (62,504) (10,528) (22,079) (1,776) (96,887) Operating result before the amortization and 208,536 67,186 36,584 (85,651) 226,655 impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (26,647) (3,202) (9,242) (25) (39,116) impairment Operating profit (loss) (EBIT) 181,889 63,984 27,342 (85,676) 187,539 Income, expenses, revaluation and - - - - 283 adjustments of financial assets Net financial expenses - - - - (41,634) Exchange differences, inflation accounting and - - - - (2,246) Fair Value valuation Profit (loss) before tax - - - - 143,942 Tax - - - - (39,627) Net profit (loss) - - - - 104,315 Profit (loss) of minority interests - - - - 134 Net profit (loss) attributable to the Group - - - - 104,181 First nine months 2024 - Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,101,713 366,417 276,466 237 1,744,833 Gross operating profit (loss) (EBITDA) 308,874 91,002 73,077 (60,719) 412,234 Operating profit (loss) before the depreciation 210,014 67,186 36,711 (82,835) 231,076 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 183,367 63,984 27,469 (82,860) 191,960 Profit (loss) before tax - - - - 148,363 Net profit (loss) - - - - 107,513 Net profit (loss) attributable to the Group - - - - 107,379 18 --- Interim Financial Report as at 30 September 2024 > Interim Management Report First nine months 2023 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,067,232 321,984 255,511 338 1,645,065 Operating costs (*) (771,871) (239,671) (189,209) (77,237) (1,277,988) Other income and costs (*) 3,473 1,636 (10) 409 5,508 Gross operating profit (loss) (EBITDA) 298,834 83,949 66,292 (76,490) 372,585 Depreciation, amortization and impairment (30,769) (8,919) (10,329) (18,343) (68,360) of non-current assets Right-of-use depreciation (58,042) (8,675) (19,491) (1,700) (87,908) Operating result before the amortization and impairment of PPA related assets 210,023 66,355 36,472 (96,533) 216,317 (EBITA) PPA related depreciation, amortization and (24,733) (3,135) (8,738) (42) (36,648) impairment Operating profit (loss) (EBIT) 185,290 63,220 27,734 (96,575) 179,669 Income, expenses, revaluation and - - - - 210 adjustments of financial assets Net financial expenses - - - - (33,410) Exchange differences, inflation accounting - - - - (3,693) and Fair Value valuation Profit (loss) before tax - - - - 142,776 Tax - - - - (39,335) Net profit (loss) - - - - 103,441 Profit (loss) of minority interests - - - - 3 Net profit (loss) attributable to the Group - - - - 103,438 (*) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. First nine months 2023 - Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,067,232 321,984 255,511 338 1,645,065 Gross operating profit (loss) (EBITDA) 300,267 83,949 66,465 (64,875) 385,806 Operating result before the amortization and impairment of PPA related assets 211,457 66,351 36,643 (84,917) 229,534 (EBITA) Operating profit (loss) (EBIT) 186,723 63,220 27,907 (84,960) 192,890 Profit (loss) before tax - - - - 155,997 Net profit (loss) - - - - 112,818 Net profit (loss) attributable to the Group - - - - 112,815 19 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Third Quarter 2024 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 344,246 125,999 97,281 56 567,582 Operating costs (263,475) (97,200) (71,253) (22,568) (454,496) Other income and costs 886 491 (232) (192) 953 Gross operating profit (loss) (EBITDA) 81,657 29,290 25,796 (22,704) 114,039 Depreciation, amortization and impairment of (12,834) (4,346) (4,785) (6,886) (28,851) non-current assets Right-of-use depreciation (21,049) (3,542) (7,643) (600) (32,834) Operating result before the amortization and 47,774 21,402 13,368 (30,190) 52,354 impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (9,451) (1,068) (3,218) (25) (13,762) impairment Operating profit (loss) (EBIT) 38,323 20,334 10,150 (30,215) 38,592 Income, expenses, revaluation and - - - - - adjustments of financial assets Net financial expenses - - - - (15,294) Exchange differences, inflation accounting and - - - - (789) Fair Value valuation Profit (loss) before tax - - - - 22,509 Tax - - - - (6,068) Net profit (loss) - - - - 16,441 Profit (loss) of minority interests - - - - (330) Net profit (loss) attributable to the Group - - - - 16,771 Third Quarter 2024 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 344,246 125,999 97,281 56 567,582 Gross operating profit (loss) (EBITDA) 82,412 29,290 25,838 (22,546) 114,994 Operating profit (loss) before the depreciation 48,529 21,402 13,410 (30,032) 53,309 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 39,078 20,334 10,192 (30,057) 39,547 Profit (loss) before tax - - - - 23,464 Net profit (loss) - - - - 17,151 Net profit (loss) attributable to the Group - - - - 17,481 20 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Third Quarter 2023 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 331,750 109,323 90,130 93 531,296 Operating costs (*) (250,125) (82,575) (66,435) (25,085) (424,221) Other income and costs (*) 720 97 (25) (40) 753 Gross operating profit (loss) (EBITDA) 82,345 26,845 23,670 (25,032) 107,828 Depreciation, amortization and impairment (10,486) (2,859) (3,130) (6,535) (23,010) of non-current assets Right-of-use depreciation (19,368) (3,285) (6,012) (568) (29,233) Operating result before the amortization and impairment of PPA related assets 52,491 20,701 14,528 (32,135) 55,585 (EBITA) PPA related depreciation, amortization and (8,418) (873) (2,841) - (12,132) impairment Operating profit (loss) (EBIT) 44,073 19,828 11,687 (32,135) 43,453 Income, expenses, revaluation and - - - - 3 adjustments of financial assets Net financial expenses - - - - (13,568) Exchange differences, inflation accounting - - - - 389 and Fair Value valuation Profit (loss) before tax - - - - 30,277 Tax - - - - (8,160) Net profit (loss) - - - - 22,117 Profit (loss) of minority interests - - - - 35 Net profit (loss) attributable to the Group - - - - 22,082 (*) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. Third Quarter 2023 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 331,750 109,323 90,130 93 531,296 Gross operating profit (loss) (EBITDA) 82,889 26,845 23,843 (23,812) 109,765 Operating profit (loss) before the depreciation and amortization of PPA 53,035 20,701 14,701 (30,915) 57,522 related assets (EBITA) Operating profit (loss) (EBIT) 44,617 19,828 11,860 (30,915) 45,390 Profit (loss) before tax - - - - 32,214 Net profit (loss) - - - - 23,506 Net profit (loss) attributable to the Group - - - - 23,471 21 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Revenues from sales and services First nine months First nine months Change Change % (€ thousands) 2024 2023 Revenues from sales and 1,744,833 1,645,065 99,768 6.1% services Third quarter 2024 Third quarter 2023 Change Change % (€ thousands) Revenues from sales and 567,582 531,296 36,286 6.8% services Consolidated revenues from sales and services amounted to €1,744,833 thousand in the first nine months of 2024, an increase of €99,768 thousand (+6.1%) with respect to the first nine months of prior year. The increase against the first nine months of 2023 is explained for €71,177 thousand (+4.3%) by organic growth and for €59,903 thousand (+3.7%) by acquisitions. The foreign exchange effect was negative for €31,312 thousand (-1.9%). Revenues of the Argentine subsidiary were impacted by the inflation accounting used pursuant to IAS 29 (Inflation Accounting), which had a positive impact of 0.3% on the Group’s organic growth and a negative impact on the exchange rate effect. The performance was positive in APAC and AMERICAs, thanks to the organic growth and external growth while, EMEA, even if is growing, continues to be a soft market. In the third quarter alone, consolidated revenues from sales and services amounted to €567,582 thousand, an increase of €36,286 thousand (+6.8%) compared to the third quarter of 2023, explained for €20,764 thousand (+3.9%) by organic growth and for €21,602 thousand (+4.1%) by acquisitions while the foreign exchange effect was negative for €6,080 thousand (-1.2%). The breakdown of revenues from sales and services by geographic area is shown below. First nine First nine Change % in months months local (€ thousands) 2024 % on Total 2023 % on Total Change Change % Exchange diff. currency 1,101,713 63.2% EMEA 1,067,232 64.9% 34,481 3.2% 857 3.1% 366,417 21.0% Americas 321,984 19.6% 44,433 13.8% (28,385) 22.6% 276,466 15.8% Asia Pacific 255,511 15.5% 20,955 8.2% (3,784) 9.7% 237 0.0% Corporate 338 0.0% (101) -29.9% - -29.9% Total 1,744,833 100.0% 1,645,065 100.0% 99,768 6.1% (31,312) 8.0% 22 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Europe, Middle-East, Africa 2024 2023 Change Change % Period (€ thousand) I quarter 376,058 359,707 16,351 4.5% II quarter 381,409 375,775 5,634 1.5% I Half Year 757,467 735,482 21,985 3.0% III quarter 344,246 331,750 12,496 3.8% First nine months 1,101,713 1,067,232 34,481 3.2% Consolidated revenues from sales and services amounted to €1,101,713 thousand in the first nine months of 2024, an increase of €34,481 thousand (+3.2%) compared to the same period of the prior year, of which €12,455 thousand (+1.2%) is attributable to organic growth. Acquisitions contributed €21,169 thousand (+1.9%) and exchange differences had a positive impact of €857 thousand (+0.1%). In the third quarter the organic performance reflected the general softness of the reference market, and especially of the French one. On this result impacted, in Spain, some contingent operational challenges, now resolved. The other countries of the area recorded a solid performance. In the third quarter alone, consolidated revenues from sales and services amounted to €344,246 thousand, an increase of €12,496 thousand (+3.8%) against the comparison period. This increase is explained mainly by acquisitions which contributed €8,220 thousand (+2.5%), while organic growth was positive for €4,273 thousand (+1.3%) and exchange differences were slightly positive at €3 thousand. Americas 2024 2023 Change Change % Period (€ thousand) I quarter 110,821 100,864 9,956 9.9% II quarter 129,597 111,797 17,800 15.9% I Half Year 240,418 212,661 27,757 13.1% III quarter 125,999 109,323 16,676 15.3% First nine months 366,417 321,984 44,433 13.8% Consolidated revenues from sales and services amounted to €366,417 thousand in the first nine months of 2024, an increase of €44,433 thousand (+13.8%) compared to the first nine month of 2023, attributable for €43.566 thousand (+13.5%) to organic growth which was fueled primarily by the outstanding performance of Miracle-Ear Direct Retail and Amplifon Hearing Health Care and for €29,252 thousand (+9.1%) by acquisitions which includes the Uruguayan subsidiaries which were consolidated for the first time. The foreign exchange effect was negative for €28,385 thousand (-8.8%). 23 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Revenues of the Argentine subsidiary were impacted by inflation accounting used in accordance with IAS 29 (Inflation Accounting), which had a positive impact of 1.2% on organic growth and a negative impact on the exchange effect. In the third quarter alone, consolidated revenues from sales and services amounted to 125,999 thousand, an increase of €16,676 thousand (+15.3%) against the comparison period attributable for 13,253 thousand (+12.1%) to organic growth and for €10,433 thousand (+9.5%) to acquisitions. The exchange effect was negative for €7,010 thousand (-6.3%). Asia Pacific 2024 2023 Change Change % Period (€ thousand) I quarter 86,164 79,595 6,569 8.3% II quarter 93,021 85,786 7,235 8.4% I Half Year 179,185 165,381 13,804 8.3% III quarter 97,281 90,130 7,151 7.9% First nine months 276,466 255,511 20,955 8.2% Revenues from sales and services amounted to €276,466 thousand in the first nine months of 2024, an increase of €20,955 thousand (+8.2%) compared to the same period of 2023 explained for €15,257 thousand (+6.0%) by organic growth and for €9,482 thousand (+3.7%) by acquisitions made in China. The foreign exchange effect was negative for €3,784 thousand (-1.5%). In the third quarter alone, revenues from sales and services amounted to €97,281 thousand, an increase of €7,151 thousand (+7.9%) attributable for €3,275 thousand (+3.6%) to organic growth and for €2,949 thousand (+3.3%) to acquisitions while the foreign exchange effect was positive for €927 thousand (+1.0%). 24 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Gross operating profit (EBITDA) First nine months 2024 First nine months 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Gross operating profit (loss) (EBITDA) 412,234 (4,421) 407,813 385,806 (13,221) 372,585 Third Quarter 2024 Third Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Gross operating profit (loss) (EBITDA) 114,994 (955) 114,039 109,765 (1,937) 107,828 Gross operating profit (EBITDA) amounted to €407,813 thousand in the first nine months of 2024, an increase of €35,228 thousand (+9.5%) with respect to the comparison period. The EBITDA margin came to 23.4%, 0.8 p.p. higher than in the comparison period. The costs relating to the non-recurring transactions amount to €4,421 thousand. In the first nine months of 2023 non-recurring expenses amounted to €13,221 thousand. See table at page 14 for details of non-recurring transactions. Net of these items, EBITDA would have been €26,428 thousand (+6.9%) higher than in the first nine months of 2023 with the EBITDA margin up +0.1 p.p. In the third quarter alone, EBITDA amounted to €114,039 thousand (20.1% of revenues from sales and services), an increase of €6,211 thousand (+5.8%) against the comparison period with a 0.2 p.p. decrease in the EBITDA margin. The result for the quarter reflects non-recurring expenses of €955 thousand. In the third quarter of 2023 non-recurring expenses amounted to €1,937 thousand. See table at page 14 for details of non-recurring transactions. Net of this item, recurring EBITDA would have been €5,229 thousand (+4.8%) higher than in the third quarter of 2023 with the EBITDA margin down -0.4 p.p. 25 --- Interim Financial Report as at 30 September 2024 > Interim Management Report The breakdown of EBITDA by geographic region is shown below. First nine EBITDA First nine EBITDA Change Change % months 2024 Margin months 2023 Margin (€ thousands) EMEA 307,396 27.9% 298,834 28.0% 8,562 2.9% Americas 91,002 24.8% 83,949 26.1% 7,053 8.4% Asia Pacific 72,950 26.4% 66,292 25.9% 6,658 10.0% Corporate (*) (63,535) -3.6% (76,490) -4.6% 12,955 16.9% Total 407,813 23.4% 372,585 22.6% 35,228 9.5% Q3 EBITDA Q3 EBITDA Change Change % (€ thousands) 2024 Margin 2023 Margin EMEA 81,657 23.7% 82,345 24.8% (688) -0.8% Americas 29,290 23.2% 26,845 24.6% 2,445 9.1% Asia Pacific 25,796 26.5% 23,670 26.3% 2,126 9.0% Corporate (*) (22,704) -4.0% (25,032) -4.7% 2,328 9.3% Total 114,039 20.1% 107,828 20.3% 6,211 5.8% (*) Centralized costs are shown as a percentage of the Group’s total sales. The breakdown of recurring EBITDA by geographic region is shown below. First nine EBITDA First nine EBITDA Change Change % (€ thousands) months 2024 Margin months 2023 Margin EMEA 308,874 28.0% 300,267 28.1% 8,607 2.9% Americas 91,002 24.8% 83,949 26.1% 7,053 8.4% Asia Pacific 73,077 26.4% 66,465 26.0% 6,612 9.9% Corporate (*) (60,719) -3.5% (64,875) -3.9% 4,156 6.4% Total 412,234 23.6% 385,806 23.5% 26,428 6.9% Q3 EBITDA Q3 EBITDA Change Change % (€ thousands) 2024 Margin 2023 Margin EMEA 82,412 23.9% 82,889 25.0% (477) -0.6% Americas 29,290 23.2% 26,845 24.6% 2,445 9.1% Asia Pacific 25,838 26.6% 23,843 26.5% 1,995 8.4% Corporate (*) (22,546) -4.0% (23,812) -4.5% 1,266 5.3% Total 114,994 20.3% 109,765 20.7% 5,229 4.8% (*) Centralized costs are shown as a percentage of the Group’s total sales. 26 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Europe, Middle-East, Africa Gross operating profit (EBITDA) amounted to €307,396 thousand in the first nine months of 2024, an increase of €8,562 thousand (+2.9%) with respect to the comparison period. The EBITDA margin came to 27.9%, a decrease of 0.1 p.p. compared to the first nine months of 2023. The result for the reporting period was impacted for €1,478 thousand by non-recurring expenses relating to the second phase of the GAES integration. In the first nine months of 2023 non-recurring expenses amounted to €1,433 thousand. Net of this item, EBITDA would have been €8,607 thousand higher (+2.9%) than in the first nine months of 2023 with the EBITDA margin down -0.1 p.p. In the third quarter alone, EBITDA amounted to €81,657 thousand, a decrease against the comparison period of €688 thousand (-0.8%). The EBITDA margin was 1.1 p.p. lower than in comparison period coming in at 23.7%. The result for the quarter was impacted for €755 thousand by non-recurring expenses relating to the second phase of the GAES integration. In the third quarter of 2023 non-recurring expenses amounted to €543 thousand. Net of this item, recurring EBITDA would have been €477 thousand (-0.6%) lower compared to the third quarter of 2023 with the EBITDA margin down -1.1 p.p. Americas Gross operating profit (EBITDA) amounted to €91,002 thousand in the first nine months of 2024, an increase of €7,053 thousand (+8.4%) with respect to the comparison period. The EBITDA margin came to 24.8%, down 1.3 p.p. against the third quarter of 2023, stemming from the decided acceleration in the growth of the direct Miracle-Ear store network in the United States In the third quarter alone EBITDA came to €29,290 thousand, an increase of €2,445 thousand (+9.1%) against the comparison period. The EBITDA margin was 1.4 p.p. lower than in the comparison period, coming in at 23.2%. Asia Pacific Gross operating profit (EBITDA) amounted to €72,950 thousand in the first nine months of 2024, an increase of €6,658 thousand (+10.0%) with respect to the comparison period. The EBITDA margin came to 26.4%, +0.5 p.p. higher than in the first nine months of 2023. Non-recurring expenses of €127 thousand were incurred in the reporting period. In the first nine months of 2023 non-recurring expenses amounted to €174 thousand. Net of this item, EBITDA would have been €6,612 thousand higher (+9.9%) with the EBITDA margin up +0.4 p.p. In the third quarter alone EBITDA amounted to €25,796 thousand, an increase of €2,126 thousand (+9.0%) with respect to the comparison period. The EBITDA margin reached 26.5%, an increase of +0.2 p.p. against the comparison period. 27 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Non-recurring expenses, of €42 thousand, relating to the Bay Audio integration were incurred in the reporting period. In the third quarter of 2023 non-recurring expenses amounted to €174 thousand. Net of these items, recurring EBITDA would have been €1,995 thousand (+8.4%) higher with the EBITDA margin up +0.1 p.p. Corporate In the first nine months of 2024 the net cost of centralized corporate functions (corporate bodies, general management, business development, procurement, treasury, legal affairs, human resources, IT systems, global marketing and internal audit) which do not qualify as operating segments under IFRS 8 amounted to €63,535 thousand, a decrease of €12,955 thousand (-16.9%) with respect to the same period of the prior year. The EBITDA margin was 3.6 p.p. (1.0 p.p. lower than in the first nine months of 2023). The result for the reporting period reflects the non-recurring expenses of €2,816 thousand explained for €1,678 thousand by the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily the tax, legal and financial consultancies, and for €1,138 thousand by the notional cost recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”. In the first nine months of 2023 non-recurring expenses of €11,614 thousand were also recognized. Net of these items, costs would have been €4,156 thousand (+6.4%) lower than in the first nine months of 2023, with the margin down by 0.4 p.p. In the third quarter, the net cost for corporate functions amounted to €22,704 thousand (4.0% of the Group’s revenues from sales and services), a decrease of €2,328 thousand (-9.3%) compared to the third quarter of 2023. The result for the third quarter was impacted for €158 thousand by non-recurring expenses relating to the notional cost recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”. In the third quarter of 2023 non-recurring expenses amounted to €1,220 thousand. Net of these items, costs would have been €1,266 thousand (+5.3%) lower than in the third quarter of 2023, with the margin down by 0.5 p.p. 28 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Operating Profit (EBIT) First nine months 2024 First nine months 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Operating profit (loss) (EBIT) 191,960 (4,421) 187,539 192,890 (13,221) 179,669 Third Quarter 2024 Third Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Operating profit (loss) (EBIT) 39,547 (955) 38,592 45,390 (1,937) 43,453 Operating profit (EBIT) amounted to €187,539 thousand in the first nine months of 2024, an increase of €7,870 thousand (+4.4%) with respect to the comparison period. The EBIT margin came to 10.7%, a decrease of 0.2 p.p. against the comparison period. The reporting period was impacted for €4,421 by non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €13,221 thousand. See table at page 14 for details of non-recurring transactions. Net of these items, EBIT would have been €930 thousand lower (-0.5%) than in the first nine months of 2023, with the EBIT margin down -0.7 p.p. With respect to the gross operating profit (EBITDA), EBIT was also impacted by an increase in amortization and depreciation stemming from network expansion, as well as from the right of use assets, from the investments made in innovation and digital transformation and the initial recognition of assets in accordance with Purchase Price Allocation accounting. In the third quarter alone operating profit (EBIT) amounted to €38,592 thousand, a decrease of €4,861 thousand (-11.2%) with respect to the comparison period. The EBIT margin came to 6.8%, 1.4 p.p. lower in the comparison period. The reporting period was impacted for €955 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €1,937 thousand. See table at page 14 for details of non-recurring transactions. Net of this item, recurring EBIT would have been €5,843 thousand lower (-12.9%) than in the third quarter of 2023, with the EBIT margin down -1.5 p.p. 29 --- Interim Financial Report as at 30 September 2024 > Interim Management Report The breakdown of EBIT by geographic area is shown below. First nine EBIT First nine EBIT Change Change % (€ thousands) months 2024 Margin months 2023 Margin EMEA 181,889 16.5% 185,290 17.4% (3,401) -1.8% Americas 63,984 17.5% 63,220 19.6% 764 1.2% Asia Pacific 27,342 9.9% 27,734 10.9% (392) -1.4% Corporate (*) (85,676) -4.9% (96,575) -5.9% 10,899 11.3% Total 187,539 10.7% 179,669 10.9% 7,870 4.4% Q3 EBIT Q3 EBIT Change Change % (€ thousand) 2024 Margin 2023 Margin EMEA 38,323 11.1% 44,073 13.3% (5,750) -13.0% Americas 20,334 16.1% 19,828 18.1% 506 2.6% Asia Pacific 10,150 10.4% 11,687 13.0% (1,537) -13.2% Corporate (*) (30,215) -5.3% (32,135) -6.0% 1,920 6.0% Total 38,592 6.8% 43,453 8.2% (4,861) -11.2% (*) Centralized costs are shown as a percentage of the Group’s total sales. The breakdown of EBIT by geographic area with reference to recurring operations is shown below. First nine EBIT First nine EBIT Change Change % (€ thousands) months 2024 Margin months 2023 Margin EMEA 183,367 16.6% 186,723 17.5% (3,356) -1.8% Americas 63,984 17.5% 63,220 19.6% 764 1.2% Asia Pacific 27,469 9.9% 27,907 10.9% (438) -1.6% Corporate (*) (82,860) -4.7% (84,960) -5.2% 2,100 2.5% Total 191,960 11.0% 192,890 11.7% (930) -0.5% First nine EBIT First nine EBIT Change Change % (€ thousand) months 2024 Margin months 2023 Margin EMEA 39,078 11.4% 44,617 13.4% (5,539) -12.4% Americas 20,334 16.1% 19,828 18.1% 506 2.6% Asia Pacific 10,192 10.5% 11,860 13.2% (1,668) -14.1% Corporate (*) (30,057) -5.3% (30,915) -5.8% 858 2.8% Total 39,547 7.0% 45,390 8.5% (5,843) -12.9% (*) Centralized costs are shown as a percentage of the Group’s total sales. 30 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Europe, Middle East, Africa Operating profit (EBIT) amounted to €181,889 thousand in the first nine months of 2024, a decrease of €3,401 thousand (-1.8%) with respect to the comparison period. The EBIT margin came to 16.5%, 0.9 p.p. lower than in the comparison period. The result was impacted for €1,478 thousand non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €1,433 thousand. Net of these items, EBIT would have been €3,356 thousand higher (-1.8%) than in the first nine months of 2023, with the EBIT margin down 0.9 p.p. In the third quarter alone, EBIT was €5,750 thousand (-13.0%) lower than in the comparison period, coming in at €38,323 thousand. The EBIT margin came to 11.1%, 2.2 p.p. lower than in the comparison period. The result was impacted for €755 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €544 thousand. Net of this item, recurring EBIT would have been €5,539 thousand lower (-12.4%) than in the third quarter of 2023, with the EBIT margin down 2.0 p.p. Americas Operating profit (EBIT) amounted to €63,984 thousand in the first nine months of 2024, an increase of €764 thousand (+1.2%) with respect to the comparison period. The EBIT margin was 2.1 p.p. lower than in the first nine months of 2023, coming in at 17.5%. In the third quarter alone, EBIT rose €506 thousand (+2.6%) to €20,334. The EBIT margin was 2.0 p.p. lower at 16.1%. Asia Pacific Operating profit (EBIT) amounted to €27,342 thousand in the first nine months of 2024, a decrease of €392 thousand (-1.4%) with respect to the comparison period. The EBIT margin came to 9.9%, 1.0 p.p. lower than in the first nine month of 2023. The result of the period was impacted for €127 thousand by non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €174 thousand. Net of these items, EBIT would have been €438 thousand lower (-1.6%), with the EBIT margin down 1.0 p.p. In the third quarter alone, operating profit (EBIT) amounted to €10,150 thousand, a decrease of €1,537 thousand (-13.2%) with respect to the comparison period. The EBIT margin came to 10.4%, 2.6 p.p. lower than in the third quarter of 2023. The result for the third quarter of 2024 was impacted for €42 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €174 thousand. 31 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Net of these items, EBIT would have been €1,668 thousand lower (-14.1%), with the EBIT margin down 2.7 p.p. Corporate The net Corporate costs at the EBIT level amounted to €85,676 thousand in the first nine months of 2024 (-4.9% of the revenues generated by the Group’s sales and services), a decrease of €10,899 thousand against the first nine months of 2023. The result posted in the reporting period was impacted for €2,816 by non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €11,614 thousand. Net of these items, the costs would have been €2,100 thousand lower (-2.5%) with the margin down 0.5 p.p. In the third quarter alone, the net Corporate costs amounted to €30,215 thousand (-5.3% of the revenues generated by the Group’s sales and services), a decrease of €1,920 thousand (-6.0%) compared to the third quarter of 2023. The third quarter of 2024 was impacted for €158 thousand non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €1,220 thousand. Net of these items, the costs would have been 858 thousand lower (-2.8%) with the margin down 0.5 p.p. 32 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Profit before taxes First nine months 2024 First nine months 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Profit before taxes 148,363 (4,421) 143,942 155,997 (13,221) 142,776 Third Quarter 2024 Third Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Profit before taxes 23,464 (955) 22,509 32,214 (1,937) 30,277 Profit before tax amounted to €143,942 thousand in the first nine months of 2024, an increase of €1,166 thousand (+0.8%) against the comparison period, with a gross profit margin of 8.2% (- 0.5 p.p. with respect to the comparison period). The results for the reporting period were impacted for €4,421 thousand non-recurring expenses. In the first nine months of 2023 non-recurring expenses of €13,221 thousand were incurred. See table at page 14 for details of non-recurring transactions. On a recurring basis, profit before tax was €7,634 thousand lower (-4.9%) compared to the first nine months of 2023, with the profit margin down 1.0 p.p. In addition to the change in EBIT described above, this result reflects an increase in net financial expenses of €6,704 thousand. The increase in interest payable linked to both higher average debt (that includes also the IFRS 16 accounting of higher lease liability stemming from the network expansion) as well as increased interest rates compared to first nine month of 2023 were partially offset by lower exchange differences and financial income stemming from the recognition of tax credits for the deferred payment of acquisitions contained in and regulated by Articles 119 and 121 of Legislative Decree n. 34/2020 (“Decreto Rilancio”). In the third quarter alone, profit before tax was €7,768 thousand (-25.7%) lower, coming in at €22,509 thousand. The gross profit margin was 4.0% (-1.7 p.p. compared to the comparison period). The increase in financial expenses amounted to €2,907 thousand. The results for the third quarter of 2024 were impacted by 955 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses of €1,937 thousand were incurred. Net of this item, there would have been a decrease of €8,750 thousand (-0.9%) compared to the third quarter of 2023. The gross profit margin would have reached 4.1% or -2.0 p.p. less than in the third quarter of 2023. 33 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Group net profit First nine months 2024 First nine months 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Group net profit 107,379 (3,198) 104,181 112,815 (9,377) 103,438 Third Quarter 2024 Third Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Group net profit 17,481 (710) 16,771 23,471 (1,389) 22,082 The Group’s net profit came to €104,181 thousand in the first nine months of 2024, an increase of €743 thousand (+0.7%) against the comparison period, with a profit margin of 6.0% (-0.3 p.p. lower against the comparison period). The result for the reporting period was impacted for €3,198 thousand by the same non-recurring expenses (described above), net of the tax effect. In the first nine months of 2023 net non- recurring expenses amounted to €9,337 thousand. See table at page 14 for details of non- recurring transactions. On a recurring basis, the Group’s net profit was €5,436 thousand (-4.8%) lower than in the first nine months of 2023, with the profit margin down 0.7 p.p. The tax rate was 27.5% in the reporting period compared to 27.6% in the first nine months of 2023. In the third quarter alone the Group’s net profit reached €16,771 thousand (3.0% of revenues from sales and services), showing an decrease of €5,311 thousand (-24.1%) against the comparison period, with the profit margin down -1.2 p.p. Net of the non-recurring expenses, the Group’s net profit would have been €5,990 thousand lower (-25.5%), with the profit margin down -1.3 p.p. 34 --- Interim Financial Report as at 30 September 2024 > Interim Management Report BALANCE SHEET REVIEW (*) Consolidated balance sheet by geographical area 09/30/2024 (€ thousands) EMEA Americas APAC Eliminations Total Goodwill 1,028,294 294,503 619,534 - 1,942,331 Non-competition agreements, trademarks, customer lists and lease 182,129 30,403 53,395 - 265,927 rights Software, licenses, other intangible fixed assets, fixed assets in progress and 124,413 30,147 8,430 - 162,990 advances Property, plant, and equipment 163,879 37,478 42,144 - 243,501 Right-of-use assets 377,716 45,522 63,854 - 487,092 Financial fixed assets 20,106 6,473 231 - 26,810 Other non-current financial assets 39,073 2,562 1,788 - 43,423 Non-current assets 1,935,610 447,088 789,376 - 3,172,074 Inventories 69,038 14,347 9,483 - 92,868 Trade receivables 217,189 68,356 18,819 (83,691) 220,673 Other receivables 117,464 16,940 9,574 (195) 143,783 Current assets (A) 403,691 99,643 37,876 (83,886) 457,324 Operating assets 2,339,301 546,731 827,252 (83,886) 3,629,398 Trade payables (282,495) (75,884) (42,277) 83,691 (316,965) Other payables (282,211) (43,691) (42,575) 195 (368,282) Provisions for risks and charges (current (1,544) (604) - - (2,148) portion) Current liabilities (B) (566,250) (120,179) (84,852) 83,886 (687,395) Net working capital (A) - (B) (162,559) (20,536) (46,976) - (230,071) Derivative instruments 6,632 - - - 6,632 Deferred tax assets 59,258 11,040 12,458 - 82,756 Deferred tax liabilities (66,202) (22,272) (14,017) - (102,491) Provisions for risks and charges (non- (19,825) (1,139) (847) - (21,811) current portion) Liabilities for employees’ benefits (non- (12,037) (5) (776) - (12,818) current portion) Loan fees 2,122 - - - 2,122 Other non-current liabilities (185,846) (14,600) (2,465) - (202,911) NET INVESTED CAPITAL 1,557,153 399,576 736,753 - 2,693,482 Group net equity 1,118,112 Minority interests 153 Total net equity 1,118,265 Net medium and long-term financial 726,642 indebtedness Net short-term financial indebtedness 341,637 Total net financial indebtedness 1,068,279 Lease liabilities 393,491 49,490 63,958 506,939 Total lease liabilities & net financial 1,575,217 indebtedness NET EQUITY, LEASE LIABILITIES AND NET 2,693,482 FINANCIAL INDEBTEDNESS (*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA. 35 --- Interim Financial Report as at 30 September 2024 > Interim Management Report 12/31/2023 (€ thousands) EMEA Americas APAC Eliminations Total Goodwill 955,383 237,178 607,013 - 1,799,574 Non-competition agreements, trademarks, customer lists and lease 176,887 21,126 57,670 - 255,683 rights Software, licenses, other intangible fixed assets, fixed assets in progress and 123,344 29,520 8,042 - 160,906 advances Property, plant, and equipment 148,081 29,929 43,506 - 221,516 Right-of-use assets 373,293 44,949 59,911 - 478,153 Financial fixed assets 3,629 12,841 234 - 16,704 Other non-current financial assets 39,701 2,440 1,710 - 43,851 Non-current assets 1,820,318 377,983 778,086 - 2,976,387 Inventories 70,314 8,729 9,277 - 88,320 Trade receivables 231,870 56,961 27,187 (84,765) 231,253 Other receivables 85,597 14,464 7,176 (195) 107,042 Current assets (A) 387,781 80,154 43,640 (84,960) 426,615 Operating assets 2,208,099 458,137 821,726 (84,960) 3,403,002 Trade payables (327,768) (70,879) (45,073) 84,765 (358,955) Other payables (293,855) (43,725) (41,905) 195 (379,290) Provisions for risks and charges (current (586) (682) - - (1,268) portion) Current liabilities (B) (622,209) (115,286) (86,978) 84,960 (739,513) Net working capital (A) - (B) (234,428) (35,132) (43,338) - (312,898) Derivative instruments 12,933 - - - 12,933 Deferred tax assets 63,112 7,307 12,282 - 82,701 Deferred tax liabilities (62,023) (19,725) (16,703) - (98,451) Provisions for risks and charges (non- (17,668) (896) (815) - (19,379) current portion) Liabilities for employees’ benefits (non- (12,119) (143) (701) - (12,963) current portion) Loan fees 3,007 - - - 3,007 Other non-current liabilities (160,811) (12,853) (6,434) - (180,098) NET INVESTED CAPITAL 1,412,321 316,541 722,377 - 2,451,239 Group net equity 1,100,919 Minority interests 759 Total net equity 1,101,678 Net medium and long-term financial 719,428 indebtedness Net short-term financial indebtedness 132,702 Total net financial indebtedness 852,130 Lease liabilities 387,130 48,433 61,868 - 497,431 Total lease liabilities & net financial 1,349,561 indebtedness NET EQUITY, LEASE LIABILITIES AND NET 2,451,239 FINANCIAL INDEBTEDNESS 36 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Non-Current Assets Non-current assets amounted to €3,172,074 thousand at 30 September 2024, an increase of €195,687 thousand with respect to the €2,976,387 thousand recorded at 31 December 2023. The changes in the reporting period are explained (i) for €207,806 thousand by acquisitions made in the first nine months of the year; (ii) for €99,849 thousand by capital expenditure; (iii) for €98,695 thousand by the recognition of right-of-use assets acquired during the year; (iv) for €220,274 thousand, by amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; (v) for €9,611 thousand by the recognition of tax credits for the deferred payment of acquisitions contained in and regulated by Articles 119 and 121 of Legislative Decree n. 34/2020 (the Relaunch Decree) and foreign exchange differences. The following table shows the breakdown of non-current assets by geographical area. 09/30/2024 12/31/2023 Change (€ thousands) Goodwill 1,028,294 955,383 72,911 Non-competition agreements, trademarks, customer lists and 182,129 176,887 5,242 lease rights Software, licenses, other intangible fixed assets, fixed assets in 124,413 123,344 1,069 progress and advances Tangible assets 163,879 148,081 15,798 EMEA (*) Right-of-use assets 377,716 373,293 4,423 Financial fixed assets 20,106 3,629 16,477 Other non-current financial assets 39,073 39,701 (628) Non-current assets 1,935,610 1,820,318 115,292 Goodwill 294,503 237,178 57,325 Non-competition agreements, trademarks, customer lists and 30,403 21,126 9,277 lease rights Software, licenses, other intangible fixed assets, fixed assets in 30,147 29,520 627 progress and advances Americas Tangible assets 37,478 29,929 7,549 Right-of-use assets 45,522 44,949 573 Financial fixed assets 6,473 12,841 (6,368) Other non-current financial assets 2,562 2,440 122 Non-current assets 447,088 377,983 69,105 Goodwill 619,534 607,013 12,521 Non-competition agreements, trademarks, customer lists and 53,395 57,670 (4,275) lease rights Software, licenses, other intangible fixed assets, fixed assets in 8,430 8,042 388 progress and advances Asia Pacific Tangible assets 42,144 43,506 (1,362) Right-of-use assets 63,854 59,911 3,943 Financial fixed assets 231 234 (3) Other non-current financial assets 1,788 1,710 78 Non-current assets 789,376 778,086 11,290 Total 3,172,074 2,976,387 195,687 (*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA. 37 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Europe, Middle-East and Africa Non-current assets amounted to €1,935,610 thousand at 30 September 2024, an increase of €115,292 thousand with respect to the €1,820,318 thousand recorded at 31 December 2023. This increase is explained by: - for €118,547 thousand, acquisitions made during the reporting period; - for €60,848 thousand, right-of-use assets acquired in the year as a result of the renewal of existing leases and network expansion. - for €37,858 thousand, investments in plant, property and equipment, relating primarily to the opening of new stores and the renewal of existing ones, as well as the purchase of hardware needed to implement Group IT projects detailed below; - for €32,250 thousand, investments in intangible assets, relating to new Front Office solutions and the expansion of the sales network, as well as the continuous implementation and standardization of the Group ERP cloud system; - for €147,648 thousand, amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; - for €13,437 thousand, to other increases stemming mainly from the recognition of acquisitions with deferred payments using tax credits arising from concessions contained in and regulated by Articles 119 and 121 of Law Decree No. 34/2020 (“Decreto Rilancio”) Americas Non-current assets amounted to €447,088 thousand at 30 September 2024, an increase of €69,105 thousand against the €377,983 thousand recorded at 31 December 2023. This increase is explained: - for €73,782 thousand, by acquisitions made in the reporting period; - for €12,492 thousand, by investments in property, plant and equipment, relating to the opening of new stores, and the renewal of existing ones; - for €11,817 thousand, by right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion; - for €5,762 thousand, investments in intangible assets, relating largely to the continuous implementation and standardization of the Group ERP cloud system primarily at the US subsidiaries; - for €27,018 thousand, by amortization and depreciation, including the amortization of the right-of-use assets referred to above; - for €7,230 thousand, by foreign exchange losses. 38 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Asia Pacific Non-current assets amounted to €789,376 thousand at 30 September 2024, an increase of €11,290 thousand against the €778,086 thousand recorded at 31 December 2023. This change is explained by: - for €26,030 thousand, an increase in right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion; - for €15,977 thousand, by acquisitions made in the reporting period; - for €8,911 thousand, investments in property, plant and equipment, relating mainly to the opening of stores and the renewal of existing ones, as well as the purchase of the hardware needed to implement IT projects; - for €2,576 thousand, investments in intangible assets relating mainly to the ongoing implementation and standardization of the Group’s cloud-based ERP system; - for €45,608 thousand, amortization and depreciation, including the amortization of the right of-use assets referred to above; - for €3,404 thousand by other increases relating to foreign exchange gains which mainly affected goodwill. Net invested capital Net invested capital amounted to €2,693,482 thousand at 30 September 2024, an increase of €242,243 thousand against the €2,451,239 thousand recorded at 31 December 2023. This increase is attributable mainly to the change in non-current assets described above, as well as a slight increase in working capital. The breakdown of net invested capital by geographic area is shown below. 09/30/2024 12/31/2023 Change (€ thousands) EMEA (*) 1,557,153 1,412,321 144,832 Americas 399,576 316,541 83,035 Asia Pacific 736,753 722,377 14,376 Total 2,693,482 2,451,239 242,243 (*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA. Europe, Middle-East and Africa Net invested capital came to €1,557,153 thousand at 30 September 2024, an increase of €144,832 thousand against the €1,412,321 thousand recorded at 31 December 2023. In addition to the increase in non-current assets described above, there was an increase in working capital. Factoring without recourse in the period involved trade receivables with a face value of € 164,640 thousand (€170,930 thousand in the same period of the prior year) and VAT credits with a face value of € 15,671 thousand (€19,055 thousand in the same period of the prior year). As of 39 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Q4 2023 factoring without recourse includes the receivables payable to German insurance companies through specialized intermediaries; the figures in the comparison period were adjusted to reflect this change. Americas Net invested capital came to €399,576 thousand at 30 September 2024, an increase of €83,035 thousand against the €316,541 thousand recorded at 31 December 2023. This increase is attributable mainly to the change in non-current assets along with a slight increase in net working capital. Factoring without recourse in the reporting period involved trade receivables with a face value of €589 thousand (€1,126 thousand in the same period of the prior year). Asia Pacific Net invested capital came to €736,753 thousand at 30 September 2024, an increase of €14,376 thousand against the €722,377 thousand recorded at 31 December 2023. Along with a slight decrease in net working capital, there was also a significant decrease in other long-term payables. Factoring without recourse in the period involved trade receivables with a face value of €3,878 thousand (€5,652 thousand in the same period of the prior year). 40 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Net financial indebtedness 09/30/2024 12/31/2023 Change (€ thousands) Net medium and long-term financial indebtedness 726,642 719,428 7,214 Net short-term financial indebtedness 509,269 326,733 182,536 Cash and cash equivalents (167,632) (194,031) 26,399 Net financial indebtedness (A) 1,068,279 852,130 216,149 Lease liabilities – current portion 124,224 113,522 10,702 Lease liabilities – non-current portion 382,715 383,909 (1,194) Lease liabilities (B) 506,939 497,431 9,508 Total lease liabilities & net financial indebtedness 1,575,217 1,349,561 225,656 (A)+(B) (C) Group net equity (D) 1,118,112 1,100,919 17,193 Minority interests 153 759 (606) Net Equity (E) 1,118,265 1,101,678 16,586 Financial indebtedness/Group net equity (A/D) 0.96 0.77 Financial indebtedness/Net equity (A/E) 0.96 0.77 Financial indebtedness/EBITDA (*) 1.78 1.50 (*) Net financial indebtedness/EBITDA is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to EBITDA for the last four quarters (determined with reference to recurring operations only, based on pro forma figures in case of significant changes to the structure of the Group). Net financial debt, excluding lease liabilities, amounts to €1,068,279 thousand compared to €852,130 thousand at year-end 2023. Free cash flow reached a positive €50,560 thousand (compared to € 68,772 thousand in the first nine months of the prior year) and was impacted primarily by higher rent and interest payments, as well as greater absorption of working capital. The significant cash-outs for acquisitions, which amounted to €184,077 thousand (€83,243 thousand in the first nine months of 2023), along with the payment of €65,593 thousand in dividends (€65,361 thousand in the comparison period), the purchase of treasury shares for €20,258 thousand (none were purchased in the comparison period) and the positive cash flow generated by other financial assets of €5,562 thousand, bring cash flow for the reporting period to negative €214,292 thousand versus a negative €83,847 thousand in the first nine months of 2023. The main transactions occurred during the period are as follows: • In June 2024 the Group subscribed the last €50 million tranche of the €350 million loan with the European Investment Bank (EIB), of which €300 million was already subscribed, to support innovation and digitalization. This loan increases the available, unutilized irrevocable credit lines which amounted to €675 million at 30 September 2024. • In September 2024, Crédit Agricole Italia, backed by SACE’s Garanzia Futuro, financed for 50 million euros the international roll-out of Amplifon’s new store format, aimed at providing consumers with an immersive and completely personalized experience 41 --- Interim Financial Report as at 30 September 2024 > Interim Management Report through visual and digital elements integrated into an innovative and sustainable architectural design. • In the second quarter, as agreed with the lenders and based on the original loan agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit were updated to reflect the new targets included in the new sustainability plan. In addition to the irrevocable credit lines referred to above, at 30 September 2024 the Group also had cash and cash equivalents, as well as other liquid investments, of €167,632 thousand versus total financial indebtedness of €1,236 million, net of lease liabilities. Medium-Long term net financial debt, excluding lease liabilities, amounted to €726,642 thousand at 30 September 2024 (€719,428 thousand at 31 December 2023) substantially in line with 2023: the reclassification as short-term debt of the portions of long-term debt maturing in the next 12 months and of the deferred payments for acquisition was net by new subscriptions. The short-term portion of net financial debt, excluding lease liabilities, amounts to €509,269 showing an increase of €182,536 thousand due primarily to hot money transactions and utilization of short-term credit lines temporary coverage of higher total debt. More specifically, the short-term portion includes mainly other bank debt linked to hot-money transactions and utilization of short-term credit lines (€316,101 thousand), the short-term portions of long-term bank loans (€173,508 thousand), interest payable on other bank borrowings (€2,320 thousand) and the Eurobond (€2,481 thousand) and lastly, the best estimate of the deferred payments for acquisitions (€12,785 thousand). Net of cash and cash equivalent, short net financial indebtedness amounts to €341,637 thousand, compared to €132,702 of comparison period. After first nine months of 2024, as of 14th October 2024, Amplifon signed with UniCredit and Cassa Depositi e Prestiti (CDP) €200 million credit facility ESG linked, divided as follows: €100 million from UniCredit to support the Group's development initiatives and €100 million from CDP which co-financed Amplifon's investments in innovation in Italy, as already done by the loan signed with European Investment Bank (EIB) mentioned above. In this way, a similar reduction in the use of short-term lines was allowed and a reduction of the net short-term debt to approximately €140 million, aligned with the comparative period. The chart below shows the debt maturities compared to: - the €167.6 million in cash and cash equivalents; - the unutilized portions of irrevocable credit lines which amount to €450 million; - the unutilized €225 million of the EIB loan taken out to support investments in innovation and digitalization. 42 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Thanks to the subscription in October 2024 of the €200 million loan from Unicredit and CDP mentioned above, the demand share of financial debts would fall from €322 to €122 million, as shown by the "pro-forma" chart below: Interest payable on financial debt amounted to €28,740 thousand at 30 September 2024 versus €20,579 thousand at 30 September 2023. Interest payable on leases recognized in accordance with IFRS 16 amounted to €13,786 thousand versus €10,846 thousand at 30 September 2023. Interest receivable on bank deposits came to €2,550 thousand at 30 September 2024 versus €1,543 thousand at 30 September 2023. The reasons for the changes in net debt are described in the next section on the statement of cash flows. 43 --- Interim Financial Report as at 30 September 2024 > Interim Management Report CASH FLOW STATEMENT The reclassified statement of cash flows shows the change in net financial indebtedness from the beginning to the end of the period. Pursuant to IAS 7, the consolidated financial statements include a statement of cash flows that shows the change in cash and cash equivalents from the beginning to the end of the period. First nine months First nine months (€ thousands) 2024 2023 OPERATING ACTIVITIES: Net profit (loss) attributable to the Group 104,181 103,438 Minority interests 134 3 Amortization, depreciation and impairment: - Intangible fixed assets 77,137 65,345 - Tangible fixed assets 46,250 39,663 - Right-of-use assets 96,887 87,908 Total amortization, depreciation and impairment 220,274 192,916 Provisions, other non-monetary items and gains/losses from disposals 17,024 28,735 Group’s share of the result of associated companies (283) (207) Financial income charges 43,880 37,102 Current and deferred income taxes 39,627 39,333 Change in assets and liabilities: - Utilization of provisions (2,365) (7,356) - (Increase) decrease in inventories (3,734) (8,505) - Decrease (increase) in trade receivables 9,357 (14,469) - Increase (decrease) in trade payables (49,324) 3,011 - Changes in other receivables and other payables (38,021) (25,651) Total change in assets and liabilities (84,087) (52,970) Dividends collected - 3 Net interest charges (40,563) (33,974) Taxes paid (54,480) (60,679) Cash flow provided by (used in) operating activities before repayment of lease liabilities 245,707 253,700 Repayment of lease liabilities (96,112) (85,095) Cash flow generated from (absorbed) by operating activities 149,595 168,605 INVESTING ACTIVITIES: Purchase of intangible fixed assets (40,588) (51,313) Purchase of property, plant and equipment (59,261) (50,347) Consideration from sale of tangible fixed assets and businesses 814 1,827 Cash flow generated from (absorbed) by investing activities (99,035) (99,833) Cash flow generated from operating and investing activities (Free Cash Flow) 50,560 68,772 Business combinations (*) (184,077) (83,243) Net cash flow generated from acquisitions (184,077) (83,243) Cash flow generated from (absorbed) by investing activities and acquisitions (283,112) (183,076) 44 --- Interim Financial Report as at 30 September 2024 > Interim Management Report First nine months First nine months (€ thousands) 2024 2023 FINANCING ACTIVITIES: Derivatives - (1,483) Other non-current assets 5,562 (982) Fees paid on medium/long-term financing (104) (1,413) Treasury shares (20,258) - Dividends (65,593) (65,361) Capital increases and minority shareholders’ contributions and dividends paid to third (382) (137) parties by subsidiaries Cash flow generated from (absorbed) by financing activities (80,775) (69,376) Changes in net financial indebtedness net of lease liabilities (214,292) (83,847) Net financial indebtedness at the beginning of the period net of lease liabilities (852,130) (829,993) Effect of exchange rate fluctuations on net financial debt (1,857) (3,793) Changes in net financial debt (214,292) (83,847) Net financial indebtedness at the end of the period net of lease liabilities (1,068,279) (917,633) (*) The item refers to the net cash flows used in the acquisition of businesses and equity investments. The change in net financial indebtedness of €214,292 thousand is attributable to: (i) Investing activities: - capital expenditure on property, plant and equipment and intangible assets of € 99,849 thousand relating primarily to the new Front-Office solution and network expansions ongoing implementation and standardization of the Group cloud based ERP system; - acquisitions amounting to €184,077 thousand, including the impact of the acquired companies’ debt and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years; - net proceeds from the disposal of assets of €814 thousand. (ii) Operating activities: - interest payable on financial indebtedness, on leases due to IFRS16 accounting standards application and other net financial expenses for €40,563 thousand; - payment of taxes amounting to €54,480 thousand; - payment of principle on lease obligations of €96,112 thousand; - cash flow generated by current operations of €340,750 thousand. (iii) Financing activities: - dividends distribution for €65,593 thousand; - fees paid on medium/long-term financing for €104 thousand; - treasury shares purchase for €20,258 thousand; - collection of other non-current assets for €5,562 thousand. (iv) Net debt was also impacted by exchange losses of €1,857 thousand. 45 --- Interim Financial Report as at 30 September 2024 > Interim Management Report Non-recurring transactions had a negative impact on cash flow of €2,053 thousand, of which €1,481 thousand for costs related to GAES integration, €490 thousand for costs related to define and implement amendments to the Articles of Association and €82 thousand to the integration of Bay Audio. ACQUISITION OF COMPANIES AND BUSINESSES During the first nine months of 2024, the Group continued with external growth operations and acquired 365 points of sale, mainly through the acquisitions made in the Uruguayan and Chinese markets and in the American market with two important franchisees’ acquisition, for a total investment of €184,077 thousand, including the debt consolidated and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years. More in detail, in the first nine months of 2024: - 95 points of sale were acquired in the United States; - 94 points of sale were acquired in China; - 58 points of sale were acquired in Germany; - 43 points of sale were acquired in France; - 34 points of sale were acquired in Spain - 23 points of sale were acquired in Uruguay; - 11 points of sale were acquired in Canada; - 6 points of sale were acquired in Italy; - 1 point of sale was acquired in Argentina. 46 --- Interim Financial Report as at 30 September 2024 > Interim Management Report OUTLOOK In the third quarter of 2024, the European hearing care market was still soft and below expectations, while the US was solid and in line with expectations, even if slower than in the first half. In the first nine months, despite a market environment characterized by different performances across geographic areas, the Group continued along its path of strong revenue growth. Profitability was higher than in the same period of the prior year, despite, on the one hand, lower operating leverage and higher marketing investments to overcome market softness in EMEA, and, on the other, the dilution effect due to the Miracle-Ear direct retail network accelerated growth and the integration of the recent acquisitions in the United States. In the fourth quarter of 2024, Amplifon expects: • the European market to progressively normalize, while the US market is expected to continue to grow, in line with initial expectations; • to grow faster than the reference market. In light of the above and assuming that there are no further slowdowns in global economic activity due to, among others, the well-known inflation related issues and the geopolitical situation, for 2024 Amplifon, also with regards to what was previously communicated, expects: • consolidated revenues to grow high-single-digit growth at constant exchange rates (expect exchange rate EUR/ARS assumed equals to 1,100 as of 31th December 2024), supported by market share gains and bolt-on acquisitions, the latter contributing to revenue growth for at least 3%; • a recurring EBITDA margin broadly in line with 2023, despite the lower operating leverage and the higher investments in marketing to overcome market softness in EMEA, as well as the dilution effect due to Miracle-Ear direct retail network accelerated growth and the integration of recent acquisitions in the United States. In the medium-term the Group remains extremely optimistic about its prospects for sustainable growth in sales and profitability, thanks to the fundamentals of the hearing care market and its even stronger competitive positioning. th Milan, October 30 , 2024 CEO Enrico Vita 47 --- Interim Financial Report as at 30 September 2024 > Interim Management Report 48 --- Interim Financial Report as at 30 September 2024 > Interim Management Report 49 --- CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 SEPTEMBER 2024 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements CONSOLIDATED STATEMENT OF FINANCIAL POSITION(*) 09/30/2024 12/31/2023 Change (€ thousands) ASSETS Non-current assets Goodwill Note 3 1,942,331 1,799,574 142,757 Intangible fixed assets with finite useful life Note 4 428,917 416,589 12,328 Property, plant, and equipment Note 5 243,501 221,516 21,985 Right-of-use assets Note 6 487,092 478,153 8,939 Equity-accounted investments 2,724 2,444 280 Hedging instruments 5,753 12,933 (7,180) Deferred tax assets 82,756 82,701 55 Contract costs 11,585 11,275 310 Other assets Note 7 55,924 46,835 9,089 Total non-current assets 3,260,583 3,072,020 188,563 Current assets Inventories 92,868 88,320 4,548 Trade receivables 220,673 231,253 (10,580) Contract costs 7,156 6,840 316 Other receivables 136,610 100,184 36,426 Hedging instruments 2,040 549 1,491 Other financial assets 875 901 (26) Cash and cash equivalents Note 9 166,775 193,148 (26,373) Total current assets 626,997 621,195 5,802 Total assets 3,887,580 3,693,215 194,365 50 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 09/30/2024 12/31/2023 Change (€ thousands) LIABILITIES Net Equity Share capital Note 8 4,528 4,528 - Share premium reserve 202,712 202,712 - Treasury shares (24,620) (17,495) (7,125) Other reserves (70,274) (53,608) (16,666) Retained earnings 901,585 809,643 91,942 Profit (loss) for the period 104,181 155,139 (50,958) Group net equity 1,118,112 1,100,919 17,193 Minority interests 153 759 (606) Total net equity 1,118,265 1,101,678 16,587 Non-current liabilities Medium/long-term financial liabilities Note 10 719,749 710,267 9,482 Lease liabilities Note 12 382,715 383,909 (1,194) Provisions for risks and charges Note 11 21,811 19,379 2,432 Liabilities for employees’ benefits 12,818 12,963 (145) Deferred tax liabilities 102,491 98,451 4,040 Payables for business acquisitions 5,725 7,229 (1,504) Contract liabilities 162,912 153,716 9,196 Other long-term liabilities 39,998 26,379 13,619 Total non-current liabilities 1,448,219 1,412,293 35,926 Current liabilities Trade payables 316,965 358,955 (41,990) Payables for business acquisitions 12,785 9,554 3,231 Contract liabilities 119,954 120,043 (89) Tax liabilities 61,786 74,433 (12,647) Other payables 182,523 181,101 1,422 Hedging instruments 341 242 99 Provisions for risks and charges Note 11 2,148 1,268 880 Liabilities for employees’ benefits 4,176 3,713 463 Short-term financial liabilities Note 10 496,194 316,413 179,781 Lease liabilities Note 12 124,224 113,522 10,702 Total current liabilities 1,321,096 1,179,244 141,852 TOTAL LIABILITIES 3,887,580 3,693,215 194,365 (*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 18 for more details 51 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements CONSOLIDATED INCOME STATEMENT(*) First nine months 2024 First nine months 2023 (€ thousands) Non- Non- Recurring Total Recurring Total Change recurring recurring Revenues from sales and services Note 13 1,744,833 - 1,744,833 1,645,065 - 1,645,065 99,768 Operating costs (**) Note 14 (1,337,759) (4,421) (1,342,180) (1,264,767) (13,221) (1,277,988) (64,192) Other income and costs (**) 5,160 - 5,160 5,508 - 5,508 (348) Gross operating profit (EBITDA) 412,234 (4,421) 407,813 385,806 (13,221) 372,585 35,228 Amortization, depreciation and impairment Amortization of intangible fixed assets Note 4 (77,036) - (77,036) (65,319) - (65,319) (11,717) Depreciation of property, plant, and Note 5 (45,663) - (45,663) (39,486) - (39,486) (6,177) equipment Right-of-use depreciation Note 6 (96,887) - (96,887) (87,908) - (87,908) (8,979) Impairment losses and reversals of (688) - (688) (203) - (203) (485) non-current assets (220,274) - (220,274) (192,916) - (192,916) (27,358) Operating result 191,960 (4,421) 187,539 192,890 (13,221) 179,669 7,870 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity 283 - 283 210 - 210 73 and gains/losses on disposals of equity investments Interest income and expenses (26,190) - (26,190) (19,036) - (19,036) (7,154) Interest expenses on lease liabilities (13,786) - (13,786) (10,846) - (10,846) (2,940) Other financial income and expenses (1,658) - (1,658) (3,528) - (3,528) 1,870 Exchange gains and losses, and (2,759) - (2,759) (4,438) - (4,438) 1,679 inflation accounting Gain (loss) on assets accounted at fair 513 - 513 745 - 745 (232) value (43,597) - (43,597) (36,893) - (36,893) (6,704) Profit (loss) before tax 148,363 (4,421) 143,942 155,997 (13,221) 142,776 1,166 Current and deferred income tax Current tax (39,666) 1,223 (38,443) (50,062) 3,844 (46,218) 7,775 Deferred tax (1,184) - (1,184) 6,883 - 6,883 (8,067) (40,850) 1,223 (39,627) (43,179) 3,844 (39,335) (292) Net profit (loss) 107,513 (3,198) 104,315 112,818 (9,377) 103,441 874 Net profit (loss) attributable to 134 - 134 3 - 3 131 Minority interests Net profit (loss) attributable to the 107,379 (3,198) 104,181 112,815 (9,377) 103,438 743 Group (*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 18 for more details. (**) It is specified that, on the comparative period reclassifications between “Operating costs” and “Other income and costs” have been made in order to better represent financial information. Earnings per share (€ per share) Note 17 First nine months 2024 First nine months 2023 Earnings per share 0.46111 0.46167 - Basic 0.45766 0.45805 - Diluted 52 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME First nine months First nine months (€ thousands) 2024 2023 Net income (loss) for the period 104,315 103,441 Other comprehensive income (loss) that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (423) (943) Tax effect on components of other comprehensive income that will not be reclassified 94 201 subsequently to profit or loss Total other comprehensive income (loss) that will not be reclassified subsequently to (329) (742) profit or loss after the tax effect (A) Other comprehensive income (loss) that will be reclassified subsequently to profit or loss: Gains/(losses) on cash flow hedging instruments (6,301) (6,694) Gains/(losses) from Foreign Currency Basis Spread on hedging instruments - 516 Gains/(losses) on exchange differences from translation of financial statements of foreign (9,422) (41,167) entities Tax effect on components of other comprehensive income that will be reclassified 1,512 1,482 subsequently to profit or loss Total other comprehensive income (loss) that will be reclassified subsequently to profit or (14,211) (45,863) loss after the tax effect (B) Total other comprehensive income (loss) (A)+(B) (14,540) (46,605) Comprehensive income (loss) for the period 89,775 56,836 Attributable to the Group 89,827 57,116 Attributable to Minority interests (52) (280) 53 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements STATEMENT OF CHANGES IN CONSOLIDATION EQUITY Share Treasury Stock Share Legal Other premium shares grant capital reserve reserves reserve reserve reserve (€ thousands) Balance at 01/01/2023 4,528 202,712 934 3,636 (49,895) 35,182 Allocation of profit (loss) for 2022 Share capital increase Treasury shares Dividend distribution Notional cost of stock grants 22,758 Other changes 25,970 (18,467) - Stock Grant 25,970 (18,467) - Inflation accounting - Other changes Total comprehensive income (loss) for the period - Hedge accounting - Actuarial gains (losses) - Translation differences - Profit for the first nine months of 2023 Balance at 30 September 2023 4,528 202,712 934 3,636 (23,925) 39,473 Share Treasury Stock Legal Other Share capital premium shares grant reserve reserves (€ thousands) reserve reserve reserve Balance at 01/01/2024 4,528 202,712 934 3,636 (17,495) 41,299 Allocation of profit (loss) for 2023 Share capital increase Treasury shares (20,258) Dividend distribution Notional cost of stock grants 13,610 Other changes 13,133 (15,922) - Stock Grant 13,133 (15,922) - Inflation accounting - Other changes Total comprehensive income (loss) for the period - Hedge accounting - Actuarial gains (losses) - Translation differences - Profit for the first nine months of 2024 Balance at 30 September 2024 4,528 202,712 934 3,636 (24,620) 38,987 54 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Foreign Cash flow Total Curr. Basis Actuarial gains Retained Translation Profit (loss) Minority Total net hedge Shareholders' Spread and losses earnings differences for the period interests equity reserve equity Reserve 19,913 (392) 2,782 691,409 (50,825) 178,525 1,038,509 1,841 1,040,350 178,525 (178,525) - - - - - - (65,361) (65,361) (65,361) 22,758 22,758 9,245 16,748 (616) 16,132 (4,138) 3,365 3,365 14,429 14,429 14,429 (1,046) (1,046) (616) (1,662) (5,088) 392 (742) (40,884) 103,438 57,116 (280) 56,836 (5,088) 392 (4,696) (4,696) (742) (742) (742) (40,884) (40,884) (283) (41,167) 103,438 103,438 3 103,441 14,825 - 2,040 813,818 (91,709) 103,438 1,069,770 945 1,070,715 Total Cash flow Actuarial gains Retained Translation Profit (loss) for Minority Total net Shareholders' hedge reserve and losses earnings differences the period interests equity equity 9,888 (957) 809,643 (108,408) 155,139 1,100,919 759 1,101,678 155,139 (155,139) - - - - (20,258) (20,258) (65,593) (65,593) (65,593) 13,610 13,610 2,396 (393) (554) (947) 1,486 (1,303) (1,303) 14,848 14,848 14,848 (13,938) (13,938) (554) (14,492) (4,789) (329) (9,236) 104,181 89,827 (52) 89,775 (4,789) (4,789) (4,789) (329) (329) (329) (9,236) (9,236) (186) (9,422) 104,181 104,181 134 104,315 5,099 (1,286) 901,585 (117,644) 104,181 1,118,112 153 1,118,265 55 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements STATEMENT OF CONSOLIDATED CASH FLOWS First nine months First nine months (€ thousands) 2024 2023 OPERATING ACTIVITIES Net profit (loss) 104,315 103,441 Amortization, depreciation and impairment: - intangible fixed assets 77,137 65,345 - property, plant, and equipment 46,250 39,663 - right-of-use assets 96,887 87,908 Provisions, other non-monetary items and gain/losses from disposals 17,024 28,735 Group’s share of the result of associated companies (283) (207) Financial income and expenses 43,880 37,102 Current and deferred taxes 39,627 39,333 Cash flow from operating activities before change in net working capital 424,837 401,320 Utilization of provisions (2,365) (7,356) (Increase) decrease in inventories (3,734) (8,505) Decrease (increase) in trade receivables 9,357 (14,469) Increase (decrease) in trade payables (49,324) 3,011 Changes in other receivables and other payables (38,021) (25,651) Total change in assets and liabilities (84,087) (52,970) Dividends received - 3 Interest received (paid) (38,160) (34,120) Taxes paid (54,480) (60,679) Cash flow generated from (absorbed by) operating activities (A) 248,110 253,554 INVESTING ACTIVITIES: Purchase of intangible fixed assets (40,588) (51,313) Purchase of tangible fixed assets (59,261) (50,347) Consideration from sale of non-current assets 814 1,827 Cash flow generated from (absorbed by) operating investing activities (B) (99,035) (99,833) Purchase of subsidiaries and business units net of cash and cash equivalents acquired or (184,077) (83,243) dismissed Increase (decrease) in payables for business acquisitions 4,235 (13,993) Cash flow generated from (absorbed by) acquisition activities (C) (179,842) (97,236) Cash flow generated from (absorbed by) investing activities (B)+(C) (278,877) (197,069) FINANCING ACTIVITIES: Increase (decrease) in financial payables 183,610 67,953 (Increase) decrease in financial receivables 24 (829) Principal portion of lease payments (96,112) (85,095) Hedging instruments - (1,483) Fees paid on long-term borrowings (104) (1,413) Other non-current assets and liabilities 5,562 (982) Dividend distributed (65,593) (65,361) Treasury shares purchase (20,258) - Capital increases and minority shareholders’ contributions and dividends paid to third (382) (137) parties by subsidiaries Cash flow generated from (absorbed by) financing activities (D) 6,747 (87,347) Net increase in cash and cash equivalents (A)+(B)+(C)+(D) (24,020) (30,862) 56 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements First nine months First nine months (€ thousands) 2024 2023 Cash and cash equivalents at beginning of period 193,148 179,654 Effect of exchange rate fluctuations on cash & cash equivalents (2,353) (2,025) Flows of cash and cash equivalents (24,020) (30,862) Cash and cash equivalents at end of period 166,775 146,767 Related-party transactions relate to lease of the main office and certain stores, to recharges of maintenance costs and general services of the above-mentioned buildings and to commercial transactions, personnel costs and loans. Such operations are detailed in Note 18. SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS The fair values of the assets and liabilities acquired are summarized in the table below: First nine months First nine months (€ thousands) 2024 2023 - Goodwill 137,452 63,481 - Customer lists 45,072 22,897 - Trademarks, licenses and non-competition agreements 1,508 1 - Other intangible fixed assets 4,470 502 - Property, plant, and equipment 9,087 4,979 - Right-of-use assets 9,746 938 - Current assets 15,964 6,189 - Provision for risks and charges (1,865) 3 - Current liabilities (26,153) (8,348) - Other non-current assets and liabilities (22,113) (6,172) - Third parties equity 14,088 1,645 Total investments 187,256 86,115 Net financial debt acquired 3,517 976 Total business combinations 190,773 87,091 (Increase) decrease in payables through business acquisition (4,235) 13,993 Cash flow absorbed by (generated from) acquisitions 186,538 101,084 (Cash and cash equivalents acquired) (6,696) (3,848) Net cash flow absorbed by (generated from) acquisitions 179,842 97,236 57 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements NOTES 1. General Information The Amplifon Group is global leader in the distribution of hearing solutions and the fitting of customized products. The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy. The Group is controlled directly by Ampliter S.r.l. (42.04% as at 30 September 2024), held by Amplifin S.r.l, which is owned at 100% by Susan Carol Holland. As a result of increased voting rights, at 30 September 2024 Ampliter S.r.l. held 59.09% of the voting rights. On 30 April 2024 the Extraordinary Shareholders’ Meeting approved a few amendments to the Articles of Association, including enhanced voting rights as a result of which voting rights may be increased by one vote per share held for each 12-month period in which the shares are owned without interruption for a total of up to 10 votes per share based on a mechanism calling for a gradual increase. As none of the conditions for termination materialized, the amendments took full effect. The condensed interim consolidated financial report as at 30 September 2024 was prepared in accordance with International Accounting Standards, as well as the implementation regulations set out in Article 9 of Legislative Decree no. 38 of 28 February 2005. These standards include the IAS and IFRS issued by the International Accounting Standard Board, as well as the SIC and IFRIC interpretations issued by the International Financial Reporting Interpretations Committee, which were endorsed in accordance with the procedure set out in Article 6 of Regulation (EC) no. 1606 of 19 July 2002 by 30 September 2024. The International Accounting Standards endorsed after that date and before the preparation of this report were adopted in the preparation of the condensed interim consolidated financial report only if early adoption is allowed by the Endorsing Regulation and the standard itself and if the Group had elected to do so. The condensed interim consolidated financial statements at 30 September 2024 was prepared in accordance with IAS 34 “Interim Financial Reporting” and does not include all the additional information required by the annual financial statements and must be read together with the Group’s annual consolidated financial statements at 31 December 2023. The publication of the condensed interim consolidated financial statements of the Amplifon Group at 30 September 2024 was authorized by a resolution of the Board of Directors of 30 October 2024 which approved their publication. According to the Consob Communication of 28 July 2006, it is specified that during the first nine months of 2024 the Group did not carry out atypical and/or unusual transactions, as defined by the Communication itself. 58 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 2. Impacts of the conflict in Middle-East, Ukraine and climate change on the Group’s performance and financial position The geopolitical uncertainty continues and persists due to the conflicts underway in the Middle East and Ukraine. The situation in the Middle East is currently extremely tense and complex. In the last quarter tensions spread to nearby countries like Lebanon and Iran. This situation could have significant repercussions in the region, but also globally, above all for energy and the financial markets. The Group, however, only has about 25 points of sale in this geographic area (in Israel) which generate sales equal to approximately 1% of annual consolidated revenues and limited activities in surrounding countries (Egypt) and does not have any business activities, direct or indirect, in either Lebanon or Iran. As for the conflict between Ukraine and Russia, the situation remains tense and has not changed significantly since the prior quarter. The Group has no business activities, direct or indirect, in either Ukraine, Russia or Byelorussia and limited activities in surrounding countries (Poland and Hungary). In the first nine months of the year, the hearing aid market was characterized by performances that differed across the geographic areas. The US market was solid, even if slower than in the first quarter, while the European market was softer than expected, particularly as of the second quarter. The Group recognizes that the current global and geopolitical uncertainties, with inflation that has yet to stabilize, could cause a few potential customers to postpone non- essential purchases in the near-term, even if hearing aids are non-discretional products which meet medium-term needs and benefit people’s physical, emotional and relational health significantly. Customers are also assisted by public and private insurances, as well as consumer loans. While the Group monitors the changing macroeconomic environment constantly, it cannot exclude the possibility of further slowdowns in the demand for its services and products even though in the past the sector has shown resilience in periods of economic crisis and geopolitical uncertainty. With regard to climate change, the Group’s business model is based on providing retail hearing solutions. The goals, therefore, connected to transitioning to alternative sources of energy and the actions needed to address climate change are pursued through the steps taken by the Group to improve the energy efficiency of its business activities, as well as report on the greenhouse gas emissions generated along the value chain. Toward this end, the Group is committed to defining and presenting short-term targets for reducing emissions aligned with the Science- Based Target Initiative (SBTi) by 2025. Furthermore, the Group’s activities and business model do not entail significant exposure to the environmental risks connected specifically to climate change. 59 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 3. Acquisitions e goodwill The Group continued its own balancing strategy between internal and external growth during the first nine months of 2024 acquiring 365 points of sale. In detail, there were 141 points of sale purchased in EMEA, 130 in Americas (with the entrance in Uruguayan market and acquisition of two of main franchisees in the United States) and 94 in Asia Pacific. The total investment, including the indebtedness consolidated and the best estimate of the net change in the earn-out linked to sales and profitability targets payable over the next few years, amounted to €184,077 thousand. The changes in goodwill and amounts recognized as a result of the acquisitions made in the period are reported in the table below and shown by groups of Cash Generating Units. Net carry at Business Net carry at Disposals Impairment Other net changes 12/31/2023 combinations 09/30/2024 (€ thousands) EMEA 955,383 73,085 - - (174) 1,028,294 AMERICAS 237,178 55,153 - - 2,172 294,503 APAC 607,013 9,214 - - 3,307 619,534 Total 1,799,574 137,452 - - 5,305 1,942,331 “Business combination” refers to the temporary allocation to goodwill of the portion of the purchase price paid, including deferments and contingent consideration (earn-outs), which is not directly attributable to the fair value of assets and liabilities, but is based on the positive contribution to cash flows that is expected to be made for an indefinite period of time. “Other net changes” refers almost entirely to foreign exchange differences. Identification of the Groups of Cash Generating Units For the purposes of impairment testing the total goodwill stemming from the cost incurred for a business combination was allocated to groups of Cash Generating Units; these groups of Cash Generating Units were identified by region and benefit from synergies, as well as shared policies, and are autonomous in the management and use of resources. The assets allocated to the groups of Cash Generating Units and the methods used to determine these groups are the same as those applied to the financial Statements as at 31 December 2023. The groups of Cash Generating Units recognized to perform impairment are: • EMEA which includes Italy, France, the Netherlands, Germany, Belgium, Switzerland, Spain, Portugal, the UK, Hungary, Poland, Israel and Egypt; • AMERICAS which includes both the single businesses through which operations are carried out in the US market (Franchising, Retail and Managed Care) and the countries (Canada, Argentina, Chile, Mexico, Panama, Ecuador, Colombia and Uruguay); • ASIA PACIFIC which includes Australia, New Zealand, India and China. 60 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements The recoverable value of goodwill is determined based on the value in use or, if the latter is less than book value, on fair value. As at 31 December 2023 the management’s valuations were made taking into consideration the value in use. No loss in value was identified as a result of the impairment tests conducted at 31 December 2023. The Group tests for impairment of goodwill once a year and in the event of any impairment indicators. In the first nine months of 2024, overall, the Group posted results (revenues and EBITDA) which were higher than in the prior year in all geographic areas. While positive and increased, these results do not fully meet the budget targets, specifically in EMEA, but there are gaps in APAC and AMERICAS, also. These shortfalls are largely offset by greater corporate efficiency. The Group EBITDA margin is, in fact, above budget. The decrease in revenues is more than offset by the decrease in interest and discount rates. The sensitivity analyses carried out show that the headroom in all areas has increased. There is ample headroom, therefore, to absorb any significant changes in cash flows in the future. No indicators of impairment emerged, therefore, no specific impairment tests were made. For the purposes of measuring the recoverable value of goodwill reference should be made to the impairment tests reported in the Annual Report 2023. 61 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements A summary of the book value and the fair value of assets and liabilities, deriving from the temporary allocation of the purchase price made as a result of business combinations and the purchase of minority interests in subsidiaries, is provided in the following table. EMEA Americas APAC Total (€ thousands) Cost of acquisitions of the period 65,477 30,065 91,714 187,256 Assets and liabilities acquired – Book value Current assets 6,044 3,224 - 9,268 Current liabilities (11,759) (5,182) - (16,941) Net working capital (5,715) (1,958) - (7,673) Other intangible, tangible and right-of-use assets 16,648 4,783 1,881 23,312 Provision for risks and charges (1,865) - - (1,865) Other non-current assets and liabilities (7,875) (884) - (8,759) Non-current assets and liabilities 6,908 3,899 1,881 12,688 Net invested capital 1,193 1,941 1,881 5,015 Third Parties Equity - - 14,088 14,088 Net financial position 1,590 1,589 - 3,179 NET EQUITY ACQUIRED - BOOK VALUE 2,783 3,530 15,969 22,282 DIFFERENCE TO BE ALLOCATED 61,947 14,096 164,974 88,931 ALLOCATIONS Trademarks 1,308 - 1,319 11 Non-competition agreements - 41 148 189 Customer lists 28,350 11,988 4,734 45,072 Contract liabilities - Short and long-term (5,636) - (14,649) (9,013) Deferred tax assets 1,428 2,623 - 4,051 Deferred tax liabilities (4,930) (3,530) - (8,460) ALLOCATIONS 15,846 6,794 4,882 27,522 GOODWILL 73,085 55,153 9,214 137,452 62 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 4. Intangible fixed assets with finite useful life The following table shows the changes in intangible assets. Accumulated Accumulated amortization amortization Historical cost Net book value Historical cost Net book value and write- and write- at 12/31/2023 at 12/31/2023 at 09/30/2024 at 09/30/2024 downs at downs at (€ thousands) 12/31/2023 09/30/2024 Software 289,839 (171,112) 118,727 322,058 (203,107) 118,951 Licenses 29,731 (20,618) 9,113 34,572 (24,418) 10,154 Non-competition agreements 19,484 (14,614) 4,870 22,842 (17,795) 5,047 Customer lists 474,972 (276,910) 198,062 519,366 (307,744) 211,622 Trademarks and concessions 95,028 (50,803) 44,225 96,306 (55,844) 40,462 Other 14,056 (4,197) 9,859 17,172 (5,215) 11,957 Fixed assets in progress and 31,733 - 31,733 30,724 - 30,724 advances Total 954,843 (538,254) 416,589 1,043,040 (614,123) 428,917 Net book Other Net book Business value at Investments Disposals Amortization Impairment net value at combinations (€ thousands) 12/31/2023 changes 09/30/2024 Software 118,727 16,458 - (32,980) 110 (76) 16,712 118,951 Licenses 9,113 2,683 (10) (3,815) 8 (1) 2,176 10,154 Non-competition 4,870 2,116 - (3,270) 189 (53) 1,195 5,047 agreements Customer lists 198,062 28 - (30,781) 45,072 - (759) 211,622 Trademarks and 44,225 14 (10) (4,994) 1,311 - (84) 40,462 concessions Other 9,859 272 20 (1,196) 3,264 (108) (154) 11,957 Fixed assets in progress and 31,733 19,017 (12) - 1,096 137 (21,247) 30,724 advances Total 416,589 40,588 (12) (77,036) 51,050 (101) (2,161) 428,917 The investments in intangible assets (€40,588 thousand) are attributable to the ongoing implementation and standardization of the Group cloud-based ERP system for back-office functions (HR, Procurement, Administration and Finance), the new front office solutions and the AI technologies used to provide customers with a highly personalized experience. The change in “Business combinations” comprises: - For €30,028 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; - For €16,140 thousand the temporary allocation of the price paid for acquisitions made in Americas; - For €4,882 thousand the temporary allocation of the price paid for acquisitions made in APAC. The item "Other net changes" is explained almost entirely by foreign exchange differences and the reclassification of work in progress completed in the period. 63 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 5. Property, plant, and equipment The following table shows the changes in property, plant, and equipment. Accumulated Accumulated amortization amortization Historical cost Net book value Historical cost Net book value and write- and write- at 12/31/2023 at 12/31/2023 at 09/30/2024 at 09/30/2024 downs at downs at (€ thousands) 12/31/2023 09/30/2024 Land 129 - 129 158 - 158 Buildings, constructions and 321,929 (215,933) 105,996 352,587 (237,624) 114,963 leasehold improvements Plant and machines 43,102 (34,441) 8,661 47,274 (37,888) 9,386 Industrial and commercial 91,892 (71,140) 20,752 96,123 (75,615) 20,508 equipment Motor vehicles 1,259 (838) 421 1,380 (741) 639 Computers and office 90,415 (69,133) 21,282 100,006 (78,959) 21,047 machinery Furniture and fittings 136,733 (100,349) 36,384 150,141 (110,117) 40,024 Other tangible fixed assets 6,686 (4,228) 2,458 6,709 (4,765) 1,944 Fixed assets in progress and 25,433 - 25,433 34,832 - 34,832 advances Total 717,578 (496,062) 221,516 789,210 (545,709) 243,501 Net book Other Net book Business value at Investments Disposals Amortization Impairment net value at combinations (€ thousands) 12/31/2023 changes 09/30/2024 Land 129 - - - - - 29 158 Buildings, constructions and leasehold 105,996 18,679 (18) (19,148) 1,571 (350) 8,233 114,963 improvements Plant and machines 8,661 1,373 (2) (1,925) 1,221 (40) 98 9,386 Industrial and commercial 20,752 3,078 (43) (4,731) 462 (34) 956 20,508 equipment Motor vehicles 421 139 (103) (118) 143 (17) 174 639 Computers and office 21,282 6,151 (1) (9,973) 1,741 (14) 1,861 21,047 machinery Furniture and fittings 36,384 7,771 (64) (9,258) 2,009 (69) 3,251 40,024 Other tangible fixed assets 2,458 122 12 (510) 60 - 46 1,944 Fixed assets in progress 25,433 22,192 (139) - 1,880 (131) (14,403) 34,832 and advances Total 221,516 59,261 (358) (45,663) 9,087 (587) 245 243,501 The investments of the reporting period (€59,261 thousand) are mainly related to opening and renewal of shops, and to the purchase of hardware components for IT Group projects implementation. The change in “Business combinations” comprises: - For €6,115 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; 64 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements - For €1,091 thousand, the temporary allocation of the price paid for acquisitions made in Americas; - For €1,881 thousand, the temporary allocation of the price paid for acquisitions made in APAC. “Other net changes” is explained primarily by foreign exchange differences recorded in the reporting period and the reclassification of work in progress completed in the period. 6. Right-of-use assets Right-of-use assets are reported here below: Accumulated Accumulated amortization amortization Historical cost Net book value Historical cost Net book value and write- and write- at 12/31/2023 at 12/31/2023 at 09/30/2024 at 09/30/2024 downs at downs at (€ thousands) 12/31/2023 09/30/2024 Stores and offices 880,210 (418,590) 461,620 939,894 (471,703) 468,191 Motor vehicles 31,377 (17,828) 13,549 36,477 (20,113) 16,364 Electronic machinery 4,644 (1,660) 2,984 4,384 (1,847) 2,537 Total 916,231 (438,078) 478,153 980,755 (493,663) 487,092 Net book Other Net book Business value at Increase Decrease Depreciation Impairment net value at combinations (€ thousands) 12/31/2023 changes 09/30/2024 Stores and offices 461,620 101,056 (12,486) (89,870) 9,597 - (1,726) 468,191 Motor vehicles 13,549 10,808 (2,043) (6,159) 150 - 59 16,364 Electronic machinery 2,984 415 (3) (858) - - (1) 2,537 Total 478,153 112,279 (14,532) (96,887) 9,746 - (1,667) 487,092 The increase in right of use assets acquired in the period (€112,279 thousand) is explained by the renewal of existing leases and the network expansion. The change in “business combinations” comprises: - for €8,857 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; - for €889 thousand, the temporary allocation of the price paid for acquisitions made in Americas. “Other changes” refers mainly to foreign exchange differences recorded in the reporting period. 65 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 7. Other non-current assets Balance at 09/30/2024 Balance at 12/31/2023 Change (€ thousands) Long-term financial receivables 6,046 12,916 (6,870) Asset Plans and other restricted amounts 1,615 1,362 253 Other non-current assets 48,263 32,557 15,706 Total 55,924 46,835 9,089 Other non-current assets amounted to €55,924 thousand at 30 September 2024 (€46,835 at 31 December 2023). The increase against the prior year is attributable mainly to the recognition of tax credits stemming from the super bonus discounts in accordance with Art. 119 and 121 of Legislative Decree 34/2020, purchased from a top-tier bank with a nominal value of €69,995 thousand for €65,694 thousand to be repaid as the credits are used. In accordance with the current tax laws, these credits may be used to offset tax payments and other fiscal contributions. These credits (and the related payments) are recognized at amortized cost and when utilized any remaining difference between the value at amortized cost and the nominal offsetting amount is recognized as financial income. In the first nine months of 2024, credits used for offsetting amounted to €36,210 thousand and financial income, that include also the effect of actualization, amounted to €2,818 thousand. Financial expenses for discounting payables amounted to €196 thousand. The statement of financial position at 30 September 2024 includes: • Tax credits recognized in the Other Receivables line for €13,533 thousand and in the Other Non-Current Assets line for €16,173 thousand; • Payables recognized in the Other Liabilities line for €17,494 thousand and in the Other Payables line for €18,918 thousand. 66 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 8. Share capital and treasury shares At 30 September 2024 the share capital comprised 226,388,620 ordinary shares with a par value of €0.02 fully paid in and subscribed, unchanged concerning 31 December 2023. A total of 437,349 of the performance stock grant rights were exercised in the period, as a result of which the company transferred the same number of treasury shares to the beneficiaries. During the reporting period 720,000 treasury shares have been purchased for a total amount of €20,258 thousand. During the reporting period, a total of 37,500 shares were transferred as a second deferred payment for Otohub's acquisition in 2019. A total of 887,299 treasury shares, or 0.392% of the parent’s share capital, were held at 30 September 2024. Information relating to the treasury shares held is shown below: Average purchase price (Euro) No. of treasury Total amount shares (€ thousands) FV of transferred rights (Euro) Held at 12/31/2023 642,148 27.245 17,495 Purchases 720,000 28.136 20,258 Transfers due to exercise of performance stock grants (437,349) 27.657 (12,096) Transfer due to exercise of acquisition’s deferred payment (37,500) 27.657 (1,037) Held at 09/30/2024 887,299 27.747 24,620 67 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 9. Net financial indebtedness The Group’s net financial indebtedness, including lease liabilities, prepared in accordance with the ESMA guideline 32-382-1138 of 4 March 2021 and CONSOB’s Warning Notice n. 5/21 of 29 April 2021, is shown below. (€ thousands) 09/30/2024 12/31/2023 Change A Cash 166,775 193,148 (26,373) B Cash equivalent - - - C Short term investments 857 883 (26) D Total Cash, Cash Equivalents and Short-Term Investments (A+B+C) 167,632 194,031 (26,399) Current financial payables (including bonds, but excluding current E 315,280 146,200 169,080 portion of medium/long-term debt) - Other financial payables and bank overdrafts 316,101 146,507 169,594 - - Hedging derivatives (821) (307) (514) F Current portion of medium/long-term financial debt 318,212 294,055 24,157 - Financial accruals and deferred income 7,695 6,001 1,694 - Payables for business acquisitions 12,785 9,554 3,231 - Bank borrowings 173,508 164,978 8,530 - Lease Liability – current portion 124,224 113,522 10,702 G Current Financial Indebtedness (E+F) 633,492 440,255 193,237 H Net Current Financial Indebtedness (G-D) 465,860 246,224 219,636 I Non current financial payables 759,357 753,337 6,020 - Bank borrowings – Non current portion 370,917 362,199 8,718 - Payables for business acquisitions – Non current portion 5,725 7,229 (1,504) - Lease Liability – Non current portion 382,715 383,909 (1,194) J Bonds 350,000 350,000 - - Eurobond 2020-2027 350,000 350,000 - K Trade and other non current payables - - - L Non Current Financial Indebtedness (I+J+K) 1,109,357 1,103,337 6,020 M Total Financial Indebtedness (H+L) 1,575,217 1,349,561 225,656 68 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Excluding lease liabilities (€506,939 thousand at 30 September 2024), net financial indebtedness amounted to €1,068,279 thousand at 30 September 2024, broken down as follows: Balance at 09/30/2024 Balance at 12/31/2023 Change (€ thousands) Cash and Cash Equivalents 166,775 193,148 (26,373) Short Term Investments 857 883 (26) Cash, Cash Equivalents and Short Term Investments 167,632 194,031 (26,399) Current Financial Indebtedness (excluding lease 509,269 326,733 182,536 liabilities) Net Current Financial Indebtedness (excluding lease 341,637 132,702 208,935 liabilities) Non current Financial Indebtedness (excluding lease 726,642 719,428 7,214 liabilities) Total Financial Indebtedness (excluding lease liabilities) 1,068,279 852,130 216,149 The main transactions occurred during the period are as follows: • In June 2024 the Group subscribed the last €50 million tranche of the €350 million loan with the European Investment Bank (EIB), of which €300 million was already subscribed, to support innovation and digitalization. This loan increases the available, unutilized irrevocable credit lines which amounted to €675 million at 30 September 2024. • In September 2024, Crédit Agricole Italia, backed by SACE’s Garanzia Futuro, financed for 50 million euros the international roll-out of Amplifon’s new store format, aimed at providing consumers with an immersive and completely personalized experience through visual and digital elements integrated into an innovative and sustainable architectural design. • In the second quarter, as agreed with the lenders and based on the original loan agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit were updated to reflect the new targets included in the new sustainability plan. Medium-Long term net financial debt, excluding lease liabilities, amounted to €726,642 thousand at 30 September 2024 (€719,428 thousand at 31 December 2023) substantially in line with 2023: the reclassification as short-term debt of the portions of long-term debt maturing in the next 12 months and of the deferred payments for acquisition was net by new subscriptions. The short-term portion of net financial debt, excluding lease liabilities, increased by €208,935 thousand, going from €132,702 thousand at 31 December 2023 to €341,637 thousand at 30 September 2024 due primarily to hot money transactions and utilization of short-term credit lines temporary coverage of higher total debt. More specifically, the short-term portion includes mainly other bank debt linked to hot money transactions and utilization of short-term credit lines (€316,101 thousand), the short-term portions of long-term bank loans (€173,508 thousand), interest payable on other bank 69 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements borrowings (€2,320 thousand) and the Eurobond (€2,481 thousand) and lastly, the best estimate of the deferred payments for acquisitions (€12,785 thousand). After first nine months of 2024, as at 14 October 2024, Amplifon signed with UniCredit and Cassa Depositi e Prestiti (CDP) €200 million credit facility ESG linked, divided as follows: €100 million from UniCredit to support the Group's development initiatives and €100 million from CDP which co-financed Amplifon's investments in innovation in Italy, as already done by the loan signed with European Investment Bank (EIB) mentioned above. In this way, a similar reduction in the use of short-term lines was allowed and a reduction of the net short-term debt to approximately €140 million, aligned with the comparative period. The Group has unutilized, irrevocable lines of credit of €450 million which, in addition to the unutilized portion of the EIB loan of €225 million, the €69 million in available uncommitted credit lines and the cash generation expected for 2024, ensure enough liquidity to satisfy current obligations and support business needs. Bank loans, and the Eurobond 2020-2027 are included in the statement of financial position as follows: a. under the item “medium/long-term financial liabilities”: Balance at 09/30/2024 (€ thousands) Eurobond 2020-2027 350,000 Loan with the European Investment Bank 125,000 Other medium/long-term debt 245,917 Fees on Eurobond 2020-2027 and bank loans (1,168) Medium/long-term financial liabilities 719,749 b. under the item “financial payables (current)”: Balance at 09/30/2024 (€ thousands) Bank overdraft and other short-term debt (including current portion of other long-term debt) 489,452 Other financial payables 7,695 Fees on bank loans (953) Short-term financial liabilities 496,194 All the other items in the net financial position table can be easily referred to in the financial consolidated statements. 70 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 10. Financial liabilities The financial liabilities breakdown is as follows: Balance at Balance at Change (€ thousands) 09/30/2024 12/31/2023 Eurobond 2020-2027 350,000 350,000 - Loan with European Bank of Investments 125,000 75,000 50,000 Other medium long-term bank loans 245,917 287,199 (41,282) Fees on Eurobond 2020-2027 and bank loans (1,168) (1,932) 764 Total long-term financial liabilities 719,749 710,267 9,482 Short term debt 496,194 316,413 179,781 - of which debts for account overdrafts and other short-term liabilities 315,128 146,299 168,829 - of which current portion of short-term bank loans 173,508 164,978 8,530 - of which for bank loans (953) (1,075) 121 Total short-term financial liabilities 496,194 316,413 179,781 Total financial liabilities 1,215,943 1,026,679 189,263 The main financial liabilities are detailed below. - Eurobond 2020-2027 This is a €350,000 thousand 7-year non-convertible bond with a fixed annual coupon of 1.125% that is listed on the Luxembourg Stock Exchange’s unregulated market. Nominal value Nominal interest rate Euro interest rate after Issue Date Debtor Maturity (€/000) (*) hedging 02/13/2020 Amplifon S.p.A. 02/13/2027 350,000 1.125% N/A Total in Euro 350,000 (*) The nominal interest rate is equal to the mid swap plus a spread. 71 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements - Bank loans These are the main bilateral and pooled loans which are detailed below: Hedged Nominal Outstan Nominal nominal Interest rate after Issue Date Debtor Type Maturity value ding interest amount hedging (**) (€/000) debt rate (*) (**) (€/000) Loan EIB 12/15/23 Amplifon S.p.A. Amortizing 12/15/32 125,000 125,000 (***) 04/06/20 Amplifon S.p.A. Amortizing 04/06/25 50,000 14,285 5.141% 14,285 0.880% 04/28/20 Amplifon S.p.A. Amortizing 04/28/25 50,000 37,500 4.855% 04/23/20 Amplifon S.p.A. Amortizing 06/30/25 35,000 16,625 4.572% 16,625 0.785% 08/03/20 Amplifon S.p.A. Amortizing 06/30/25 10,000 1,534 4.850% Other bank 12/23/21 Amplifon S.p.A. Amortizing 12/23/26 210,000 159,600 4.472% 159,600 0.963% loans 04/07/20 Amplifon S.p.A. Amortizing 04/07/25 150,000 60,000 4.884% 40,000 1.05% 04/29/20 Amplifon S.p.A. Amortizing 04/29/25 78,000 19,500 5.325% 13,650 1.414% RCF (no 12/29/23 Amplifon S.p.A. 09/30/26 60,000 60,000 4.900% cleandown) 09/30/24 Amplifon S.p.A. Amortizing 09/30/26 50,000 50,000 4.319% 50,000 3.226% Total 818,000 544,044 294,160 (*) The nominal interest rate comprises the benchmark rate (Euribor) plus the applicable spread. (**) An Interest Rate Swap was used to hedge these loans against interest rate risk at the IRS rate plus a spread. (***) The rate for €75 million granted in 2023 is equal to 3.653% until 12/15/2027. It will subsequently be adjusted to reflect current market conditions and the Group may choose either a fixed or a floating rate. For the €50 million granted in 2024, the rate applied is 3.902% and it’s fixed to the end of loan. Group’s loans, bonds, and revolving credit lines are subject to the following financial covenants: - the net financial indebtedness, excluding lease liabilities, to Group net equity (Net Worth Ratio) must not exceed 1.65; - the Leverage Ratio, calculated as the ratio of net financial debt, excluding lease liabilities, to EBITDA recorded in the last four quarters (determined excluding the fair value of the stock-based payments, based solely on recurring business, and restated if the Group’s structure should change significantly), must not exceed 2.85; - the Interest Cover, calculated as the ratio of EBITDA (restated like the EBITDA used to calculate the leverage ratio) recorded in the last four quarters and the net interest owed in the same four quarters, must not exceed 4.9. Typically, in the event of relevant acquisitions, the first two ratios may be increased to 2.20 and 3.26, respectively, for a period of not more than 12 months, twice over the life of the respective loans. 72 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements The trigger events for these covenants and the “spikes” relative to significant acquisitions (i.e. increase in benchmark index for maximum 12 months and twice along the duration of the financial liability) are summarized below: Primary Credit Facility Agreement Leverage Ratio Net Worth Ratio Interest Cover Spike - Medium/long-term bilateral loans ≤ 3.26 (Leverage with top-tier banking institutions of Ratio) €99 million. ≤ 2.85 ≤ 1.65 - - Irrevocable credit lines with top-tier ≤ 2.20 (Net Worth banking institutions of €110 million. Ratio) - €14.3 million bank loan expiring in ≤ 3.26 (Leverage ≤ 2.85 - > 4.90 2025; Ratio) -Medium/long-term bilateral loans ≤ 3.26 (Leverage with top-tier banking institutions of Ratio) €96.1 million; ≤ 2.85 ≤ 1.65 > 4.90 -Irrevocable lines of credit with ≤ 2.20 (Net Worth premier banks amounted to €40 Ratio) million. The loan negotiated at the end of 2021, which replaced the syndicated loan used for the GAES acquisition with a residual amount of €159.6 million, the new €300 million revolving facility negotiated at the end of May 2023, the loan of €50 million negotiated at the end of September 2024 (which are all sustainability-linked) and the €350 million loan, to date used for €125 million, granted by the European Investment Bank are not subject to covenants. However, the financial covenants on the other credit facilities will also be extended to these lenders as a result of a most favoured clause. The three financial covenants and the relative spikes, shown in the table above, are, therefore, applied to these credit lines to the extent that they are also applied to the other facilities. As at 30 September 2024 these ratios were as follows Value as at 09/30/2024 Net financial indebtedness excluding lease liabilities/Group net equity (Net Worth Ratio) 0.96 Net financial position excluding lease liabilities/EBITDA for the last four quarters (Leverage Ratio) 1.78 EBITDA for the last 4 quarters/Net financial expenses (Interest Cover) 17.20 73 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements The above-mentioned ratios were determined based on an EBITDA which was restated and normalized, in order to reflect the main changes. (€ thousands) Value as at 09/30/2024 Group EBITDA first nine months 2024 407,813 EBITDA October-December 2023 154,263 Fair value of stock grant assignment 18,893 EBITDA normalized (from acquisitions and disposals) 11,027 Acquisitions and non-recurring costs 6,611 EBITDA for the covenant calculation 598,607 The same agreements are also subject to other covenants applied in current international practice which limit the ability to issue guarantees and complete sales and lease backs, as well as extraordinary transactions involving the sale of assets. 11. Provision for risks and charges Provisions for risks and charges amounted to €23,959 thousand, slightly higher than the €20,647 thousand recorded at 31 December 2023. The provisions for risks at 30 September 2024 are detailed below: Balance at 09/30/2024 Balance at 12/31/2023 Change (€ thousands) Product warranty provision 1,268 1,191 77 Provision on contract risks 3,763 3,420 343 Agents' leaving indemnities 14,209 13,092 1,117 Other reserves for risks and charges 2,571 1,676 895 Total Long-term provision for risks and charges 21,811 19,379 2,432 Product warranty provision 197 205 (8) Other reserves for risks and charges 1,951 1,063 888 Total Short-term provision for risks and charges 2,148 1,268 880 Total provision for risks and charges 23,959 20,647 3,312 74 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 12. Lease liabilities The lease liabilities stem from long-term leases and rental agreements. These liabilities are equal to the present value of future installments payable over the lease term. The finance lease liabilities are shown in the statement of financial position as follows: Balance at Balance at Change (€ thousands) 09/30/2024 12/31/2023 Short term lease liabilities 124,224 113,523 10,701 Long term lease liabilities 382,715 383,909 (1,195) Total lease liabilities 506,939 497,431 9,507 During the reporting period, following costs have been booked in profit and loss: First Nine month of (€ thousands) 2024 Interest charges on leased assets (13,786) Right-of-use depreciation (96,887) Costs for short-term leases and leases for low value assets (14,856) 13. Revenues from sales and services First Nine month of First nine month of Change (€ thousands) 2024 2023 Revenues from sale of products 1,521,997 1,430,065 91,932 Revenues from services 222,836 215,000 7,836 Total revenues from sales and services 1,744,833 1,645,065 99,768 Goods and services provided at a point in time 1,521,997 1,430,065 91,932 Goods and services provided over time 222,836 215,000 7,836 Total revenues from sales and services 1,744,833 1,645,065 99,768 Consolidated revenues from sales and services amounted to €1,744,833 thousand in the first nine months of 2024, an increase of €99,768 thousand (+6.1%) compared to the same period of the prior year. The increase compared to the first nine month of 2023 is attributable for €71,177 thousand to organic growth (+4.3%), acquisitions for €59,903 thousand (+3.7%) and negative exchange differences for €31,312 thousand (-1.9%). Revenues of the Argentine subsidiary were impacted by the inflation accounting used pursuant to IAS 29 (Inflation Accounting), which had a positive impact on the Group’s organic growth and a negative impact on the exchange effect of 0.3%, respectively. 75 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 14. Operating costs, depreciation and impairment, financial income-expenses and taxes Operating costs amounted to €1,342,180 thousand in the first nine months of 2024 (€1,277,988 thousand in the first nine months of 2023), an increase of €64,192 thousand (+5%). “Amortization, depreciation and impairment” amounted to €220,274 thousand at 30 September 2024 higher than the €192,916 thousand recorded in the first nine months of 2023. “Financial income, expenses and value adjustments to financial assets” came to €43,597 thousand in the first nine months of 2024 (€36,893 thousand in the first nine months of 2023). The change in the reporting period of €6,704 thousand is explained by the increase in interest payable linked to both higher average debt (that includes also the IFRS 16 accounting of higher lease liability stemming from the network expansion) as well as increased interest rates compared to first nine month of 2023 were partially offset by lower exchange differences and financial income stemming from the recognition of tax credits for the deferred payment of acquisitions contained in and regulated by Articles 119 and 121 of Legislative Decree n. 34/2020 (“Decreto Rilancio”). Current and deferred tax amounted to €39,627 thousand in the first nine months of 2024, €292 thousand lower than in the first nine months of 2023 (€39,335 thousand). The tax rate was 27.5% in the reporting period versus 27.6% at 30 September 2023. 76 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 15. Performance Stock Grant On May 7, 2024, the Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99 and subsequent amendments, resolved to allocate 551,800 target rights at the end of a 3-year vesting period as the first tranche of the Stock Grant Cycle 2024- 2026. The fair value per unit of these granted stock grants during the reported period is €31.46. The assumptions used in determining the fair value are as follows: Valuation Model Binomial Tree (Cox-Ross-Rubinstein method) Price at grant date €32.26 Threshold - € Exercise price 0.00 Volatility (3 years) 33.51% Risk-free interest rate 3.038% Maturiy (in years) 3 March 31, 2027 Maturity date Expected Dividend Yield 0.87% The figurative cost of this grant cycle recorded in the income statement as of September 30, 2024 amounts to €1,265 thousand. Sustainable value sharing plan 2022-2027 The Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99, has resolved to allocate a maximum of 109,200 rights under the Sustainable Value Sharing Plan 2022-2027, reserved for the CEO and Key Executives of the Group (Beneficiaries), as described in the Information Document approved by the Shareholders' Meeting on April 24, 2024. The scheme is a composite incentive tool that operates through two distinct phases, of which the second phase is contingent and dependent on the progress of the first phase (referred to as "Phase A" and "Phase B," respectively). Phase A: Starting from the 2024 fiscal year, the Target MBO achieved and hypothetically due to the Beneficiaries under the applicable MBO Plan for the previous fiscal year (including the one related to 2023) will not be paid out. Instead, the Beneficiaries will receive a certain number of rights (the "Co-invested Rights") that will entitle them to receive shares at the end of the vesting period of Phase B described below, or earlier if Phase B does not vest. Phase B: If, in a given fiscal year, the Beneficiaries receive Co-invested Rights under the mechanism described above, they will participate in an additional and separate incentive tool based on financial instruments, wherein the Company allocates additional rights to them, equal 77 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements in number to the Co-invested Rights. These rights (the "Matched Rights") will entitle the Beneficiaries to receive shares provided that certain performance targets linked to value generation and sustainable success of the Group are met by the end of the vesting period. Regarding the Sustainable Value Sharing Plan 2022-2027 reserved for the CEO and Key Executives of the Group, the conversion of the accrued MBO led to the allocation of 54,600 Co- invested Rights and 54,600 Matched Rights. The assumptions used in determining the fair value are as follows: PHASE A PHASE B Binomial Tree (Cox-Ross-Rubinstein method) Binomial Tree (Cox-Ross-Rubinstein method) Valuation model FV €31.46 €24.83 KPI - ESG/TSR Exercise price 0.00 0.00 Volatility (3 years) 33.51% 33.51% Risk-free interest rate 3.038% 3.038% Maturity (in years) 3 3 Maturity date March 31, 2027 March 31, 2027 Expected dividend yield 0.87% 0.87% 16. Non-recurring significant events The first nine months of 2024 were impacted by the following non-recurring items: First nine months First nine month (€ thousands) of 2024 of 2023 Costs incurred to define and implement amendments to the Articles of (1,678) - Association including the enhanced voting rights Costs related to second phase of the GAES integration (1,478) (1,433) Operating costs Notional cost of the Amplifon shares assigned by the shareholder Ampliter (1,138) (11,614) to the CEO Costs related to Bay Audio integration (127) (174) EBITDA (4,421) (13,221) Profit (loss) before tax (4,421) (13,221) Impact of the above items on the tax burden for the period 1,223 3,844 Total net profit (loss) (3,198) (9,377) 78 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 17. Earnings (loss) per share Basic Earnings (loss) per share Basic earnings (loss) per share is obtained by dividing the net profit for the year attributable to the ordinary shareholders of the parent company by the weighted average number of shares outstanding in the period, considering purchases and disposals of own shares as cancellations and issues of shares. Earnings per share are determined as follows: First nine months First nine months Earnings per share 2024 2023 Net profit (loss) attribuable to ordinary shareholders (€ thousand) 104,181 103,438 Average number of shares outstanding in the period 225,934,134 224,054,021 Average number per share (€ per share) 0.46111 0.46167 Diluted earnings (loss) per share Diluted earnings (loss) per share is obtained by dividing the net profit for the period attributable to the ordinary shareholders of the parent by the weighted average number of shares outstanding during the year adjusted by the diluting effects of potential shares. In the calculation of shares outstanding, purchases and sales of treasury shares are considered as cancellation or issue of shares. The potential ordinary share categories refer to the possible conversion of Group employees’ stock options and stock grants’ attribution. The computation of the average number of outstanding potential shares is based on the average fair value of shares for the period; stock options and stock grants are excluded from the calculation since they have anti-diluting effects. First nine months First nine months Weighted average diluted number of shares outstanding 2024 2023 Average number of shares outstanding in the period 225,934,134 224,054,021 Weighted average of potential and diluting ordinary shares 1,705,974 1,766,662 Weighted average of shares potentially subject to options in the period 227,640,108 225,820,683 The diluted earnings per share were determined as follows: First nine months First nine months Diluted earnings per share 2024 2023 Net profit attributable to ordinary shareholders (€ thousand) 104,181 103,438 Average number of shares outstanding in the period 227,640,108 225,820,683 Average diluted earnings per share (€) 0.45766 0.45805 79 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 18. Transactions with parents and other related parties The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy. The Group is controlled directly by Ampliter S.r.l. (42.04% of share capital and 59.09% of voting rights), held for 100.0% by Amplifin S.r.l., which is owned for 100% by Susan Carol Holland. The transactions with related parties, including intercompany transactions, do not qualify as atypical or unusual, and fall within the Group’s normal course of business and are conducted at arm's-length as dictated by the nature of the goods and services provided. The following table details transactions with related parties. 09/30/2024 First Nine months 2024 Interest Trade Trade Other Revenues for Operating income and (€ thousand) receivables payables receivables sales and services (costs)/revenues expense Amplifin S.r.l. 8 (5) - - 15 - Total – Parent company 8 (5) - - 15 - Comfoor BV (The Netherlands) 38 2,036 - 40 (1,151) - Ruti Levinson Institute Ltd (Israel) 20 - - - - - Afik - Test Diagnosis & Hearing 23 - - - - - Aids Ltd (Israel) Total – Other related parties 81 2,036 . 40 (1,151) - Total related parties 89 2,031 . 40 (1,136) - Total as per financial statements 220,673 316,965 136,610 1,744,833 (1,342,181) (26,190) % of financial statements total 0.04% 0.64% 0.00% 0.00% 0.08% 0.00% The trade and other receivables refer primarily to: - the recovery of maintenance costs and building fees from Amplifin S.r.l.; - the receivables due by Amplifin S.r.l. for the renovation of the headquarters based on modern and efficient standards for the use of workspaces; - the trade receivables due by associates (mainly in Israel) who act as resellers and to which the Group supplies hearing aids. The trade payables and operating costs refer primarily to commercial transactions with Comfoor BV, a joint venture from which hearing protection devices are purchased and then distributed in Group stores. Services costs charged to Amplifon S.p.A. as a result of the contracts with Amplifin S.r.l. include for €1,698 thousand the rental fees related to the lease agreement concluded for the property, located in Milan, via Ripamonti n. 133, legal and administrative headquarters of Amplifon S.p.A. The lease costs for the Milan headquarters (leased to Amplifon by the parent company Amplifin) are no longer shown as operating costs and trade payables but are recognized under right-of- 80 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements use depreciation for €1,367 thousand, interest on leases for €348 thousand, lease liabilities of € 10,728 thousand and right-of-use asset of €9,571 thousand. 19. Contingent liabilities Currently the Group is not exposed to any particular risks, uncertainties or legal disputes in excess of the provisions already made in the financial statements, shown in Note 11. The usual tax audits are currently underway and no findings of note have been reported so far and the Group is, at any rate, confident in the adequacy of the measures implemented. 20. Financial risk management As this condensed consolidated interim financial report does not include all the additional information that is mandatorily included in the Annual Report relating to the management of financial risk, for a detailed analysis of financial risk management reference should be made to the Group’s 2023 Annual Report. 81 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 21. Translation of foreign companies’ financial statements The exchange rates used to translate non-Euro zone companies’ financial statements are as follows: 30 September 2024 2023 30 September 2023 As at As at Average exchange As at Average exchange rate 30 September 31 December rate 30 September Panamanian balboa 1.0871 1.1196 1.1050 1.0833 1.0594 Australian dollar 1.6415 1.6166 1.6263 1.6205 1.6339 Canadian dollar 1.4787 1.5133 1.4642 1.4576 1.4227 New Zealand dollar 1.7832 1.7616 1.7504 1.7547 1.7575 Singapore dollar 1.4539 1.4342 1.4591 1.4523 1.4443 US dollar 1.0871 1.1196 1.1050 1.0833 1.0594 Hungarian florin 391.2500 396.8800 382.80 381.7600 389.5000 Swiss franc 0.9581 0.9439 0.9260 0.9774 0.9669 Egyptian lira 47.7407 54.1396 34.1589 33.1383 32.7298 New Israeli shekel 4.0239 4.1491 3.9993 3.9474 4.0472 Argentine peso (*) 1082.8093 1082.8093 892.9239 370.8149 370.8149 Chilean peso 1018.4400 1006.9300 977.07 890.0800 959.8000 Colombian peso 4328.4100 4676.6100 4267.52 4772.1400 4312.3900 Mexican peso 19.2951 21.9842 18.7231 19.2804 18.5030 Chinese renminbi 7.8248 7.8511 7.8509 5.4245 5.3065 Indian rupee 90.6822 93.8130 91.9045 7.6235 7.7352 British pound 0.8514 0.8354 0.8691 89.2314 88.0165 Polish zloty 4.3053 4.2788 4.3395 0.8707 0.8646 Uruguayan peso 42.8203 46.6281 N.A. N.A. N.A. (*) Argentina is a highly inflationary country. As requested by IAS 29, profit and loss items have been converted at the closing exchange rate. The average Argentine peso exchange rate as at 30 September 2024 is 964.6541 and 253.2357 at 30 September 2023. 82 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 22. Segment reporting In accordance with IFRS 8 “Operating Segments”, the schedules related to each operating segment are shown below. The Amplifon Group’s business (distribution and customization of hearing solutions) is organized into three specific geographical areas which comprise the Group’s operating segments: Europe, Middle-East and Africa - EMEA - (Italy, France, The Netherlands, Germany, the United Kingdom, Spain, Portugal, Switzerland, Belgium, Hungary, Egypt, Poland, and Israel), Americas (USA, Canada, Chile, Argentina, Ecuador, Colombia, Panama, Mexico and Uruguay) and Asia-Pacific (Australia, New Zealand, India, and China). The Group also operates via centralized Corporate functions (Corporate bodies, general management, business development, procurement, treasury, legal affairs, human resources, IT systems, global marketing and internal audit) which do not qualify as operating segments under IFRS 8. These areas of responsibility, which coincide with the geographical areas (the Corporate functions are recognized under EMEA), represent the organizational structure used by management to run the Group’s operations. The reports periodically analyzed by the Chief Executive Officer and Top Management are divided up accordingly, by geographical area. Performances are monitored and measured for each operating segment/geographical area, through operating profit including amortization and depreciation (EBIT), along with the portion of the results of equity investments in associated companies valued by using the equity method. Financial expenses are not monitored insofar as they are based on corporate decisions regarding the financing of each region (own funds versus borrowings) and, consequently, neither are taxes. Items in the statement of financial position are analyzed by the geographical area without being separated from the Corporate functions which remain part of EMEA. All the information relating to the income statement and the statement of financial position is determined using the same criteria and accounting standards used to prepare the consolidated financial statements. 83 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements th (*) Statement of Financial Position as at September 30 , 2024 EMEA AMERICAS APAC ELIM. CONSOLIDATED (€ thousands) ASSETS Non-current assets Goodwill 1,028,294 294,503 619,534 - 1,942,331 Intangible fixed assets with finite useful life 306,542 60,550 61,825 - 428,917 Property, plant, and equipment 163,879 37,478 42,144 - 243,501 Right-of-use assets 377,716 45,522 63,854 - 487,092 Equity-accounted investments 2,724 - - - 2,724 Hedging instruments 5,753 - - - 5,753 Deferred tax assets 59,258 11,040 12,458 - 82,756 Deferred contract costs 10,313 1,256 16 - 11,585 Other assets 46,141 7,780 2,003 - 55,924 Total non-current assets 3,260,583 Current assets Inventories 69,038 14,347 9,483 - 92,868 Receivables 328,601 84,345 28,223 (83,886) 357,283 Deferred contract costs 6,036 950 170 - 7,156 Hedging instruments 2,040 - - - 2,040 Other financial assets 875 Cash and cash equivalents 166,775 Total current assets 626,997 TOTAL ASSETS 3,887,580 LIABILITIES Net Equity 1,118,265 Non-current liabilities Medium/long-term financial liabilities 719,749 Lease liabilities 304,773 37,164 40,778 - 382,715 Provisions for risks and charges 19,825 1,139 847 - 21,811 Liabilities for employees’ benefits 12,037 5 776 - 12,818 Deferred tax liabilities 66,202 22,272 14,017 - 102,491 Payables for business acquisitions 2,172 3,553 - - 5,725 Contract liabilities 146,343 14,151 2,418 - 162,912 Other long-term liabilities 39,502 449 47 - 39,998 Total non-current liabilities 1,448,219 Current liabilities Trade payables 282,495 75,884 42,277 (83,691) 316,965 Payables for business acquisitions 6,318 6,193 274 - 12,785 Contract liabilities 95,264 16,626 8,064 - 119,954 Other payables and tax payables 186,007 26,632 31,865 (195) 244,309 Hedging instruments 341 - - - 341 Provisions for risks and charges 1,544 604 - - 2,148 Liabilities for employees’ benefits 1,097 433 2,646 - 4,176 Short-term financial liabilities 496,194 Lease liabilities 88,718 12,326 23,180 - 124,224 Total current liabilities 1,321,096 Total liabilities 3,887,580 (*) The items in the statement of financial position are analyzed by the CEO and Top Management by geographic area without being separated from the Corporate functions which are included in EMEA. 84 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements st (*) Statement of Financial Position as at December 31 , 2023 EMEA AMERICAS APAC ELIM. CONSOLIDATED (€ thousands) ASSETS Non-current assets Goodwill 955,383 237,178 607,013 - 1,799,574 Intangible fixed assets with finite useful life 300,231 50,646 65,712 - 416,589 Property, plant, and equipment 148,081 29,929 43,506 - 221,516 Right-of-use assets 373,293 44,949 59,911 - 478,153 Equity-accounted investments 2,444 - - - 2,444 Hedging instruments 12,933 - - - 12,933 Deferred tax assets 63,112 7,307 12,282 - 82,701 Deferred contract costs 9,988 1,257 30 - 11,275 Other assets 30,896 14,025 1,914 - 46,835 Total non-current assets 3,072,020 Current assets Inventories 70,314 8,729 9,277 - 88,320 Receivables 311,674 70,510 34,213 (84,960) 331,437 Deferred contract costs 5,776 914 150 - 6,840 Hedging instruments 549 - - - 549 Other financial assets 901 Cash and cash equivalents 193,148 Total current assets 621,195 TOTAL ASSETS 3,693,215 LIABILITIES Net Equity 1,101,678 Non-current liabilities Medium/long-term financial liabilities 710,267 Lease liabilities 305,426 37,599 40,884 - 383,909 Provisions for risks and charges 17,668 896 815 - 19,379 Liabilities for employees’ benefits 12,119 143 701 - 12,963 Deferred tax liabilities 62,023 19,725 16,703 - 98,451 Payables for business acquisitions 5,088 2,141 - - 7,229 Contract liabilities 139,036 12,341 2,339 - 153,716 Other long-term liabilities 21,773 511 4,095 - 26,379 Total non-current liabilities 1,412,293 Current liabilities Trade payables 327,768 70,879 45,073 (84,765) 358,955 Payables for business acquisitions 4,283 4,889 382 - 9,554 Contract liabilities 96,941 15,279 7,823 - 120,043 Other payables and tax payables 195,847 28,063 31,819 (195) 255,534 Hedging instruments 242 - - - 242 Provisions for risks and charges 586 682 - - 1,268 Liabilities for employees’ benefits 1,069 381 2,263 - 3,713 Short-term financial liabilities 316,413 Lease liabilities 81,704 10,834 20,984 - 113,522 Total current liabilities 1,179,244 Total liabilities 3,693,215 (*) The items in the statement of financial position are analyzed by the CEO and Top Management by geographic area without being separated from the Corporate functions which are included in EMEA. 85 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements (*) Income statement - September 30, 2024 EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED (€ thousands) Revenues from sales and services 1,101,713 366,417 276,466 237 - 1,744,833 Operating costs (797,387) (277,727) (203,190) (63,876) - (1,342,180) Other income and costs 3,070 2,312 (326) 104 - 5,160 Gross operating profit by segment 307,396 91,002 72,950 (63,535) - 407,813 (EBITDA) Amortization, depreciation and impairment Intangible assets amortization (35,450) (10,658) (11,726) (19,202) - (77,036) Property, plant, and equipment (26,905) (5,832) (11,763) (1,163) - (45,663) depreciation Right-of-use depreciation (62,504) (10,528) (22,079) (1,776) - (96,887) Impairment losses and reversals of non- (648) - (40) - - (688) current assets (125,507) (27,018) (45,608) (22,141) - (220,274) Operating result by segment 181,889 63,984 27,342 (85,676) - 187,539 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and 283 - - - - 283 gains/losses on disposals of equity investments Interest income and expenses (26,190) Interest expenses on lease liabilities (13,786) Other financial income and expenses (1,658) Exchange gains and losses, and inflation (2,759) accounting Gain (loss) on assets accounted at fair 513 value (43,597) Net profit (loss) before tax 143,942 Current and deferred income tax Current income tax (38,443) Deferred tax (1,184) (39,627) Net profit (loss) 104,315 Net profit (loss) attributable to Minority 134 interests Net profit (loss) attributable to the Group 104,181 (*) The figures of the operating segments are net of the intercompany eliminations. 86 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Income statement - September 30, 2023 (*) EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED (€ thousands) Revenues from sales and services 1,067,232 321,984 255,511 338 - 1,645,065 Operating costs (**) (771,871) (239,671) (189,209) (77,237) - (1,277,988) Other income and costs (**) 3,473 1,636 (10) 409 - 5,508 Gross operating profit by segment 298,834 83,949 66,292 (76,490) - 372,585 (EBITDA) Amortization, depreciation and impairment Intangible assets amortization (30,732) (7,322) (10,948) (16,317) - (65,319) Property, plant, and equipment (24,581) (4,727) (8,110) (2,068) - (39,486) depreciation Right-of-use depreciation (58,042) (8,675) (19,491) (1,700) - (87,908) Impairment losses and reversals of non- (189) (5) (9) - - (203) current assets (113,544) (20,729) (38,558) (20,085) - (192,916) Operating result by segment 185,290 63,220 27,734 (96,575) - 179,669 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and 210 - - - - 210 gains/losses on disposals of equity investments Interest income and expenses (19,036) Interest expenses on lease liabilities (10,846) Other financial income and expenses (3,528) Exchange gains and losses, and inflation (4,438) accounting Gain (loss) on assets accounted at fair 745 value (36,893) Net profit (loss) before tax 142,776 Current and deferred income tax Current income tax (46,218) Deferred tax 6,883 (39,335) Net profit (loss) 103,441 Net profit (loss) attributable to Minority 3 interests Net profit (loss) attributable to the Group 103,438 (*) The figures of the operating segments are net of the intercompany eliminations. (**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information 87 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 23. Accounting policies 23.1 Presentation of the financial statements The consolidated financial statements as at September 30, 2024 were prepared in accordance with the historical cost method with the exception of derivatives, a few financial investments measured at fair value and assets and liabilities hedged against changes in fair value, as explained in more detail in this report, as well as on a going concern basis. With regard to the financial statements, the following is specified: - in the statement of financial position, the Group distinguishes between non-current and current assets and liabilities; - in the income statement, the Group classifies costs by nature insofar as this is deemed to more accurately represent the primarily commercial and distribution activities carried out by the Group; - comprehensive income statement: in addition to the net result for the year, it includes the effects of changes in exchange rates, the cash flow hedge reserve, the foreign currency basis spread reserve on derivative instruments and the actuarial gains and losses that have been recognized directly in changes in shareholders' equity, these items are divided according to whether or not they can be subsequently reclassified to the income statement; - statement of changes in net equity: the Group reports all the changes in net equity, including those deriving from shareholder transactions (payment of dividends and capital increases); - statement of cash flows: is prepared using the indirect method to determine cash flow from operations. 23.2 Use of estimates in preparing the financial statements The preparation of the financial statements and explanatory notes requires the use of estimates and assumptions particularly with regard to the following items: - revenues for services rendered over time recognized based on the effort or the input expended to satisfy the performance obligation; - allowances for impairment made based on the asset’s estimated realizable value; - provisions for risks and charges made based on a reasonable estimate of the amount of the potential liability, including with regard to any counterparty claims; - provisions for obsolete inventories in order to align the carrying value of inventories with the estimated realizable value; - provisions for employee benefits, calculated based on actuarial valuations; - amortization and depreciation of intangible assets and tangible fixed assets recognized based on the estimated remaining useful life and the recoverable amount; - income tax recognized based on the best estimate of the tax rate for the full year; - IRS and currency swaps (instruments not traded on regulated markets), marked to market at the reporting date based on the yield curve and market exchange rates, which are subject to credit/debit valuation adjustments based on market prices; 88 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements - the lease term duration was determined on a lease-by-lease basis and is comprised of the “non-cancellable” period along with the impact of any extension or early termination clauses if exercise of that clause is reasonably certain. This property valuation took into account circumstances and facts specific to each asset; - discount rate of leases falling within the scope of IFRS 16 (incremental borrowing rate) determined based on the IRS (reference interbank rate used as an index for fixed-rate mortgage loans) in the individual countries in which Amplifon Group companies operate, for maturities commensurate with the duration of the specific rental contract, plus the Parent Company’s credit spread and any costs for additional guarantees. In the rare instances when the IRS rate is not available (Egypt, Ecuador, Mexico and Panama), the risk-free rate was determined based on government bonds with maturities similar to the duration of the specific rental contract. Estimates and assumptions are periodically reviewed, and any changes made, following the change of the circumstances or the availability of better information, are recognized in the income statement. The use of reasonable estimates is essential to the preparation of the financial statements and does not affect their overall reliability. The Group verifies the existence of a loss in value of goodwill regularly once a year or in the event of impairment indicators. The impairment test is conducted for the groups of cash generating units to which the goodwill refers and based on which the Group values, directly or indirectly, the return on the investment that includes the goodwill. 89 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 23.3 IFRS standards/interpretations IFRS/interpretations approved by the IASB, endorsed in Europe and applied for the first time this year The following table lists the IFRS/interpretations approved by the IASB, endorsed in Europe and applied for the first time this year. Endorsement Publication in Effective date for Description Effective date date the G.U.C.E. Amplifon Amendments to IAS 1: “Presentation of Financial Statements: Classification of liabilities as current or non- current”, “Classification of Liabilities as Current or Non- 19 Dec ‘23 20 Dec ‘23 1 Jan ‘24 1 Jan ‘24 current - Deferral of Effective Date” and ‘’Non-current Liabilities with Covenants’’ (issued on 23 January 2020, 15 July 2020 and 31 October 2022, respectively) Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback” 20 Nov ‘23 21 Nov ‘23 1 Jan ‘24 1 Jan ‘24 (issued on 22 September 2022) Amendments to IAS 7’Statement of Cash Flows and IFRS 7 Financial 15 May 24 16 Jun ‘24 1 Jan ‘24 1 Jan ‘24 Instruments: Disclosures: Supplier Finance Arrangements’ (issued on 25 May 2023) IAS 1 amendments are related to the definitions of current and non-current liabilities, providing a more generalized approach to the classification of liabilities under the standard, based on the contractual agreements. The amendments clarify the criteria for classifying a liability as current or non-current and require new disclosures in financial statements regarding non-current liabilities that include covenants to be satisfied within twelve months after the reporting period. The Amplifon Group has applied the temporary exemption provided by the amendment to IAS 12, issued by the International Accounting Standards Board (“IASB”) on 23 May 2023, regarding the recognition and related disclosure to be provided in the consolidated financial statements in relation to deferred tax assets and liabilities arising from the application of the minimum level of taxation (“Global Minimum Tax”) provided by Directive (EU) 2022/2523 of 14 December 2022 (the “Directive”), under the Global Anti-Base Erosion Model Rules (Pillar Two). Toward this end, on 28 December 2023, Legislative Decree No. 209 of 27 December 2023 implementing the international tax reform which came into effect on 29 December 2023, containing the Italian provisions related to Pillar Two, was published in the Official Gazette. 90 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements In light of the above, an analysis was carried out in order to estimate the potential impact of Pillar Two application on the Group in 2024. Based on this analysis, the Pillar Two rules should not have a material impact on the Group in 2024. IFRS 16 amendments are related to the definitions of liabilities derived from leasebacks and the accounting treatment of any gains or losses stemming from these transactions. IAS 7 and IFRS 7 amendments refer to the disclosure of information deemed relevant for the purposes of Supplier Finance Arrangements.The purpose of these amendments is to make it easier for financial statement users to understand the effects of these arrangements on liabilities, cash flows and exposure to liquidity risk. The adoption of the standards and interpretations described above did not have a material impact on the measurement of the Group’s assets, liabilities, costs, and revenues. 23.4 Future accounting standards and interpretations IFRS standards/interpretations approved by IASB, but not endorsed in Europe The following are the international accounting standards, interpretations, amendments to existing accounting standards and interpretations, or specific provisions contained in the standards and interpretations approved by the IASB which, at 21st October 2024, have yet to be endorsed for adoption in Europe. Description Effective date Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack Periods beginning on or after 1 Jan ‘25 of Exchangeability” (issued on 15 August 2023) Annual improvements volume 11 (issued on 18 July 2024) Periods beginning on or after 1 Jan ‘26 Amendments to IFRS 9 and IFRS7 “Classification and Measurement of Financial Periods beginning on or after 1 Jan ‘26 Instruments” (issued on 30 May 2024) IAS 7 amendments refer to the disclosure of information deemed relevant for the purposes of Supplier Finance Arrangements. The amendments to IAS 21 proposed by IASB provide clarification as to exchange whether a currency is exchangeable and which exchange rate to be use if it is not. The amendments to IFRS9 and IFRS7 proposed by IASB are related to the settlement of liabilities through electronic payment systems and to clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features. The document Annual improvement. Volume 11 lists improvements limited to changes that either clarify the wording in an IFRS Accounting Standard, or correct relatively minor unintended consequences, oversights or conflicts between requirements of the Accounting Standards. In particular, the amendments relate to IFRS1, IFRS7, IFRS9, IFRS10 and IAS7. 91 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements The adoption of the standards and interpretations approved and not endorsed above is not expected to have a material impact on the measurement of the Group’s assets, liabilities, costs and revenues. The adoption of the standards and interpretations described above did not have a material impact on the measurement of the Group’s assets, liabilities, costs, and revenues. 92 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements 24. Subsequent events As at 14 October 2024, Amplifon signed with UniCredit and Cassa Depositi e Prestiti (CDP) €200 million credit facility ESG linked with a 5-year term, divided as follows: €100 million from UniCredit to support the Group's development initiatives and €100 million from CDP which co-financed Amplifon's investments in innovation in Italy After 30 September 2024, the Amplifon Group continued its external growth with the acquisition of 15 stores in China, 5 in France and 3 in the United States. th Milan, October 30 , 2024 CEO Enrico Vita 93 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Annexes Annex I Consolidation scope As required by articles 38 and 39 of Law 127/91 and article 126 of Consob’s resolution 11971 dated 14 May 1999, as amended by resolution 12475 dated 6 April 2000, the following is the list of companies included in the consolidation scope of Amplifon S.p.A. at 30 September 2024. Parent company: Company name Head office Currency Share capital Amplifon S.p.A. Milan (Italy) EUR 4,527,772 Subsidiaries consolidated using the line-by-line method: Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 09/30/2024 Amplifon Rete Milano (Italy) I EUR 19,250 2.6% Amplifon Italia S.p.A. Milano (Italy) D EUR 100,000 100.0% Amplifon France SAS Arcueil (France) D EUR 173,550,898 100.0% SCI Eliot Leslie Lyon (France) I EUR 610 100.0% New Ear SAS Guidel (France) I EUR 502,830 100.0% Ghama EURL Guidel (France) I EUR 5,000 100.0% Adagio SARL Guidel (France) I EUR 14,000 100.0% Audition Guidel EURL Guidel (France) I EUR 1,500 100.0% Labo Audio SAS Libourne (France) I EUR 50,000 100.0% Audio Montfermeil SAS Montfermeil (France) I EUR 1,000 100.0% Amplitude Audition SAS Prades-le-Lez (France) I EUR 1,000 100.0% Boulben Audition – Majuni SAS Queven (France) I EUR 15,000 100.0% OSX Solutions Auditives SAS Vitry-Sur-Seine (France) I EUR 1,000 100.0% Roquefort-Les-Pins Nouvelle Audition SAS I EUR 5,000 100.0% (France) Ondes DBR SAS Baillargues (France) I EUR 3,000 100.0% Audition Fontaine SAS Barentin (France) I EUR 100,000 100.0% Armor audition SAS Brest (France) I EUR 7,622 100.0% AFL audition Frank Lefevre SAS Brest (France) I EUR 200,000 100.0% GFL audition SAS Rennes (France) I EUR 10,000 100.0% Grousseau SAS Beauvais (France) I EUR 7,700 100.0% Nadov Audition SAS Juvisy (France) I EUR 5,000 100.0% Villefranche de Lauragais Pastel Audiologie SAS I EUR 835,970 100.0% (France) Villefranche de Lauragais Pastel Audition SAS I EUR 10,000 100.0% (France) Acoustiques des Halles SAS Biarritz (France) I EUR 80,000 100.0% Saint-André-de-Sangonis Audition Détente SAS I EUR 2,222 100.0% (France) Belletente SAS Saint-Étienne (France) I EUR 6,000 100.0% 94 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 09/30/2024 Audiloire SAS Tours (France) I EUR 1,000 100.0% L'Oreillette Du Mans SAS Le Mans (France) I EUR 10,800 100.0% Aurissimans SAS Savigné l'Eveque (France) I EUR 6,000 100.0% L'Effet L'Arsene Tours (France) I EUR 1,000 100.0% François Audition Ballan-Mire (France) I EUR 3,000 100.0% Audition Freres François Tours (France) I EUR 6,000 100.0% Chambray-Lès-Tours FFF Audio I EUR 6,000 100.0% (France) Vouvray Audition Vouvray (France) I EUR 6,000 100.0% Amplifon Ibérica, S.A.U. Barcelona (Spagna) D EUR 26,578,809 100.0% Microson S.A. Barcelona (Spagna) D EUR 61,752 100.0% Amplifon LATAM Holding, S.L.U. Barcelona (Spagna) I EUR 3,000 100.0% Audifonos factory, S.L. Malaga (Spain) 3,000 100.0% I EUR Audifonos sevillaudio, S.L. Malaga (Spain) 10,000 100.0% I EUR Audio diagnostics, S.L. Malaga (Spain) I EUR 30,000 100.0% Audio elite sur, S.L. Malaga (Spain) I EUR 20,000 100.0% Audiolmenes, S.L. Malaga (Spain) 3,000 100.0% I EUR Corbaudio centros auditivos, S.L. Cordoba (Spain) 3,000 100.0% I EUR Talayoaudio, S.L.U. Marbella (Spain) I EUR 3,000 100.0% Tecnoaudifonos, S.L.U. (*) Malaga (Spain) I EUR 6,000 100.0% Audio nevada, S.L. Malaga (Spain) 10,000 100.0% I EUR Audioliva, S.L. Jaen (Spain) 3,000 100.0% I EUR Centro audio granada, S.L. Granada (Spain) I EUR 36,000 100.0% Futurooigo, S.L. Malaga (Spain) I EUR 3,000 100.0% Centro auditivo sent, S.L. Granada (Spain) 3,000 100.0% I EUR Esteponaudio, S.L. Estepona (Spain) 3,000 100.0% I EUR Recimetal cordoba, S.L. (*) Marbella (Spain) I EUR 23,095 100.0% Soluciones auditivas de la subbetica, S.L. Rute (Spain) I EUR 3,000 100.0% Soluciones auditivas y visuales gonzales, Malaga (Spain) I EUR 29,000 100.0% S.L. Soluciones profesionales de audiologia, Malaga (Spain) 23,408 100.0% I EUR S.L. Sonic technology españa, S.L. Fuengirola (Spain) I EUR 9,015 100.0% Sontec centros auditivos, S.L. Mijas (Spain) 6,000 100.0% I EUR Amplifon Portugal SA Lisboa (Portogallo) I EUR 15,520,187 100.0% Amplifon Magyarország Kft Budapest (Hungary) D HUF 723,500,000 100.0% Amplibus Magyarország Kft Budaörs (Hungary) I HUF 3,000,000 100.0% Amplifon AG Baar (Switzerland) D CHF 1,000,000 100.0% Doesburg (The Amplifon Nederland B.V. D EUR 74,212,052 100.0% Netherlands) Doesburg (The Auditech B.V. I EUR 22,500 100.0% Netherlands) Doesburg (The Electro Medical Instruments B.V. I EUR 16,650 100.0% Netherlands) Doesburg (The Beter Horen B.V. I EUR 18,000 100.0% Netherlands) Amplifon Customer Care Service B.V. Elst (The Netherlands) I EUR 18,000 100.0% Amplifon Belgium N.V. Bruxelles (Belgium) D EUR 495,800 100.0% 95 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 09/30/2024 Lussemburgo Amplifon RE SA D EUR 3,700,000 100.0% (Luxembourg) Pilot Blankenfelde Medizinisch- Blankenfelde-Mahlow D EUR 34,595 100.0% Elektronische Gerate GmbH (Germany) Amplifon Deutschland GmbH Hamburg (Germany) D EUR 6,026,000 100.0% Focus Hören AG Willroth (Germany) I EUR 485,555 100.0% Focus hören Deutschland GmbH Willroth (Germany) I EUR 25,000 100.0% Pavel Hören und Sehen GmbH & Co. KG Münster (Germany) I EUR 122,566 100.0% Hörwelt Duisburg GmbH Duisburg (Germany) I EUR 25,000 100.0% Amplifon Poland Sp. z o.o. Lodz (Poland) D PLN 3,348,280 100.0% Manchester (United Amplifon UK Ltd D GBP 130,951,168 100.0% Kingdom) Manchester (United Amplifon Ltd I GBP 1,800,000 100.0% Kingdom) Manchester (United Ultra Finance Ltd I GBP 75 100.0% Kingdom) Amplifon Cell Ta' Xbiex (Malta) D EUR 2,500,125 100.0% Medtechnica Ortophone Ltd (**) Tel Aviv (Israel) D ILS 1,100 90.0% Amplifon Middle East SAE Cairo (Egypt) D EGP 3,000,000 51.0% Miracle Ear Inc. St. Paul (United States) I USD 5 100.0% Minneapolis (United Elite Hearing, LLC I USD 1,000 100.0% States) Amplifon Hearing Health Care. Inc. St. Paul (United States) I USD 10 100.0% Ampifon IPA, LLC New York (United States) I USD - 100.0% Amplifon USA Inc. Dover (United States) D USD 52,500,010 100.0% METX, LLC Waco (United States) I USD - 100.0% MEFL, LLC Waco (United States) I USD - 100.0% METampa, LLC Waco (United States) I USD - 100.0% MENM, LLC Waco (United States) I USD - 100.0% ME Flagship, LLC Wilmington (United States) I USD - 100.0% Minneapolis (United ME Pivot Holdings, LLC I USD 2,000,000 100.0% States) Minneapolis (United MEOH, LLC I USD - 100.0% States) Miracle Ear Canada Ltd. Vancouver (Canada) I CAD 169,601,200 100.0% 2829663 Ontario Inc (*) Milton (Canada) I CAD - 100.0% Raindrop Hearing Clinic Inc. (*) Toronto (Canada) I CAD - 100.0% The Hearing Clinic (*) Scarborough (Canada) I CAD - 100.0% Lisa Reid Audiology Hearing Centres (*) Manitoba (Canada) I CAD - 100.0% - Great to Hear, Inc. (*) Manitoba (Canada) I CAD 100.0% - Living Sounds Hearing Centre Ltd. (*) Alberta (Canada) I CAD 100.0% Professional Hearing Services - Ontario (Canada) I CAD 100.0% Ltd./100391416 Ontario Ltd. (*) - Sackville Hearing Centre Limited (*) Nova Scotia (Canada) I CAD 100.0% - Hometown Hearing Centre Inc (*) Bancroft (Canada) I CAD 100.0% - Newlife Hearing Inc. (*) St. John's (Canada) I CAD 100.0% Provincial Hearing Aid Service (Halifax) - Halifax (Canada) I CAD 100.0% Ltd. (*) I CAD - 100.0% Audia Hearing Aid Centre Inc. (*) Ontario (Canada) I CAD - 100.0% The Hearing Institute of Ontario, Inc. (*) Ontario (Canada) 96 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 09/30/2024 - Rupert Hearing Ltd (*) Prince Rupert (Canada) I CAD 100.0% Pure Audiology & Hearing Aid Services, Oakville (Canada) I CAD - 100.0% Inc. (*) GAES S.A. (Chile) Santiago de Chile (Chile) I CLP 1,901,686,034 100.0% GAES Servicios Corporativo de Santiago de Chile (Chile) I CLP 10,000,000 100.0% Latinoamerica SpA Audiosonic Chile S.A. Santiago de Chile (Chile) I CLP - 99.0% GAES S.A. (Argentina) Buenos Aires (Argentina) I ARS 120,542,331 100.0% GAES Colombia S.A.S. Bogotà (Colombia) I COP 22,000,000,000 100.0% Audiovital Cìa. Ltda. Quito (Ecuador) I USD 430,337 100.0% Centros Auditivos GAES Mexico sa de cv Ciudad de México (Mexico) I MXN 276,477,133 100.0% Compañía de Audiologia y Servicios Aguascalientes (Mexico) I MXN 43,306,212 100.0% Medicos sa de cv GAES Panama S.A. Panama (Panama) I PAB 510,000 100.0% Audical S.A.S Montevideo (Uruguay) D UYU 500,000 100.0% Centro Auditivo S.A.S Montevideo (Uruguay) D UYU 500,000 100.0% Ikako S.A. Montevideo (Uruguay) D UYU 100,000 100.0% Amplifon Australia Holding Pty Ltd Sydney (Australia) D AUD 392,000,000 100.0% National Hearing Centres Pty Ltd Sydney (Australia) I AUD 100 100.0% National Hearing Centres Unit Trust Sydney (Australia) I AUD - 100.0% Otohub Unit Trust (in liquidazione) Brisbane (Australia) D AUD - 100.0% Otohub Australasia Pty Ltd Brisbane (Australia) D AUD 10 100.0% Attune Hearing Pty Ltd Brisbane (Australia) D AUD 14,771,093 100.0% Attune Workplace Hearing Pty Ltd Brisbane (Australia) I AUD 1 100.0% Ear Deals Pty Ltd Brisbane (Australia) I AUD 300,000 100.0% Bay Audio Pty Ltd Sydney (Australia) D AUD 10,000 100.0% Amplifon Asia Pacific Pte Limited Singapore (Singapour) I SGD 1,000,000 100.0% Auckland Hearing Ltd Auckland (New Zealand) I NZD - 100.0% Amplifon NZ Ltd Takapuna (New Zealand) I NZD 130,411,317 100.0% Bay Audiology Ltd Takapuna (New Zealand) I NZD - 100.0% Dilworth Hearing Ltd Auckland (New Zealand) I NZD - 100.0% Amplifon India Pvt Ltd Gurgaon (India) I INR 2,050,000,000 100.0% Beijing Amplifon Hearing Technology Běijīng (China) D CNY 2,143,685 100.0% Center Co., Ltd Tianjin Amplifon Hearing Technology Tianjin (China) I CNY 3,500,000 100.0% Co., Ltd Shijiazhuang Amplifon Hearing Shijiazhuang (China) I CNY 100,000 100.0% Technology Center Co. Ltd Amplifon (China) Investment Co., Ltd Shanghai (China) D CNY 608,750,000 100.0% Hangzhou Amplifon Hearing Aid Co., Ltd Hangzhou (China) D CNY 11,000,000 100.0% Zhengzhou Yuanjin Hearing Technology Zhengzhou (China) I CNY - 100.0% Co., Ltd. Wuhan Amplifon Hearing Aid Co., Ltd Wuhan (China) I CNY 40,000,000 100.0% Shanghai Amplifon Hearing Technology Shanghai (China) I CNY 50,000,000 100.0% Co. Ltd, Nanjing Amplifon Hearing Aid Co., Ltd Nanjing (China) I CNY 15,000,000 100.0% Shanxi Amplifon Hearing Aid Co., Ltd. Taiyuan (China) I CNY 30,000,000 100.0% Henan Amplifon Hearing Aid Co., Ltd. Luoyang (China) I CNY 1,000,000 100.0% 97 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 09/30/2024 Fuzhou Tingan Medical Device Co., Ltd Fuzhou (China) I CNY 20,000,000 100.0% Chongqing Amplifon Hearing Aids Co., Chongqing (China) I CNY 10,000,000 100.0% Ltd. Sichuan Amplifon Hearing Aid Co., Ltd. Chengdu (China) I CNY 24,000,000 100.0% Xi'an Ansheng Medical Equipment Co., Xi'an (China) I CNY 16,000,000 100.0% Ltd. Ningxia Listening Shunan Medical Yinchuan (China) I CNY 16,000,000 100.0% Equipment Co., Ltd Yunnan Amplifon Hearing Aid Co., Ltd. Kunming (China) I CNY 16,000,000 100.0% Shanxi Amplifon Hearing Aid Business Xi'an (China) I CNY 18,000,000 100.0% Co., Ltd Anhui Amplifon Hearing Aid business Ma'anshan (China) I CNY 30,000,000 100.0% Co., Ltd. AnLaiSheng (Inner Mongolia) Medical Hohhot (China) I CNY 47,000,000 100.0% Equipment Co.Ltd (*) Medtechnica Ortophone Ltd, despite being 90% owned by Amplifon, is consolidated at 100% without exposure of non-controlling interests due to the put-call option exercisable from 2019 and related to the purchase of the remaining 10%. (**) Dormant companies Companies valued using the equity method: Direct/Indirect Share % held as at Company name Head office Currency ownership Capital 09/30/2024 Doesburg (The Comfoor BV (*) I EUR 18,000 50.0% Netherlands) Emmerich am Rhein Comfoor GmbH (*) I EUR 25,000 50.0% (Germany) Ramat HaSharon Ruti Levinson Institute Ltd (**) I ILS 105 20.0% (Israel) Afik - Test Diagnosis & Hearing Aids Jerusalem (Israel) I ILS 100 20.0% Ltd (**) Mairangi Bay (New Lakeside Specialist Centre Ltd (**) I NZD - 50.0% Zealand) (*) Joint Venture (**) Related companies 98 --- Interim Financial Report as at 30 September 2024 > Condensed Interim Consolidated Financial Statements Declaration in respect of the Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98 We, the undersigned, Enrico Vita, Chief Executive Officer and Gabriele Galli, Executive Responsible for Corporate Accounting Information for Amplifon S.p.A., taking into account the provisions of article 154-bis, paragraphs 3 and 4 of Law no. 58/98, certify: - the adequacy, by reference to the characteristics of the business and - the effective application of the administrative and accounting procedures for the preparation of the condensed interim consolidated financial statements during the period 1 January – 30 September 2024. We also certify that the condensed interim consolidated financial statements at 30 September 2024: - have been prepared in accordance with the international accounting standards recognized in the European Union under the EC regulation no. 1606/2002 of the European Parliament and of the Council of 19 July 2002; - correspond to the underlying accounting entries and records; - provides a true and fair view of the performance and financial position of the issuer and of all of the companies included in the consolidation area. The report on operations includes a reliable operating and financial review of the Company and all of the companies included in the consolidation area. th Milan, October 30 , 2024 CEO Executive Responsible for Corporate Accounting Information Enrico Vita Gabriele Galli 99