--- title: "Annual Report 2024" period: "2024-fy" kind: "annual-report" source_url: "https://corporate.amplifon.com/content/dam/amplifon/archive/en/investors/financial-reports/2025/250321_Amplifon_REPORT_ENG_WEB.pdf" downloaded_at: "2026-06-06" pdf_sha256: "f0355c5330b9f32e54267f363863d50d1be80e2f444af09fd571efc83a98f4ac" pdf_size_bytes: 18805194 extractor: "pdfjs-dist-6.0.227" --- ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL & SUSTAINABILITY STATEMENTS --- INTERACTIVE PDF Index Search Print Email PDF PDF info page --- ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL & SUSTAINABILITY STATEMENTS --- ANNUAL REPORT 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A G LANCE 2 --- ANNUAL REPORT 2024 INDEX ANNUAL REPORT 2024 > AMPLIFON AT A GLANCE 4 > REPORT ON OPERATIONS st AS AT DECEMBER 31 , 2024 26 CONSOLIDATED SUSTAINABILITY STATEMENTS STATEMENT st CONSOLIDATED FINANCIAL AS AT DECEMBER 31 , 2024 90 > CONSOLIDATED FINANCIAL STATEMENTS st AS AT DECEMBER 31 , 2024 212 REPORT ON OPERATIONS > REPORT ON CORPORATE > REMUNERATION GOVERNANCE AND REPORT 2025 OWENERSHIP STRUCTURE ST AT DECEMBER 31 , 2024 AMPLIFON AT A GLANCE 3 --- ANNUAL REPORT 2024 AMPLIFON AT A GLANCE STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 4 --- ANNUAL REPORT 2024 INDEX AMPLIFON AT A GLANCE > LETTER TO STAKEHOLDERS 6 > DIGITAL INNOVATION 15 > 2024 HIGHLIGHTS 8 > BUSINESS MODEL 18 > KEY EVENTS 11 > DISTRIBUTION NETWORK 20 STATEMENTS > CORPORATE CULTURE 12 > STRENGTHS 21 CONSOLIDATED FINANCIAL > MARKET 13 > INVESTORS’ REPORT 22 > STRATEGY 14 > 2025 FINANCIAL CALENDAR 25 REPORT ON OPERATIONS AMPLIFON AT A GLANCE 5 --- ANNUAL REPORT 2024 LETTER TO STAKEHOLDERS DEAR STAKEHOLDERS, The acceleration in acquisitions allowed us to add about 400 new stores, above all in core markets (North We are pleased to present you with another Annual America, France, Germany and China) and to exceed Report that shows once again a year of growth for 10,000 points of sale worldwide. If Europe is still our our company, albeit in a global hearing care market main market, for the first time in Amplifon’s history, the STATEMENTS still below historical growth levels, above all in United States was the top market in terms of revenues, Europe, and a particularly volatile geopolitical and confirming the soundness of the expansion strategy CONSOLIDATED FINANCIAL macroeconomic environment. implemented over the past few years. In China our network now comprises more than 500 stores, allowing Despite this, we continued along our path, for market share gains and creating a solid foundation growing at a faster pace than our reference for the Group’s future growth. market, thanks to a solid organic performance and the significant contribution of acquisitions, As mentioned, 2024 was also a year of sizeable and further strengthened our competitive investments to support our future growth. In addition positioning, while preparing to reap the fruits to the acquisitions made to expand our global network, of the long-awaited recovery of the European we also invested a lot in our brand – above all through market. the launch of new advertising campaigns in Italy and Spain - in our hearing care professionals, particularly in The Group’s revenues reached the highest level France in preparation for the expected market recovery REPORT in our 75-year history coming in at more than 2.4 related to the anniversary of the 2021 reform, and in ON OPERATIONS billion euros, an increase of 7% at constant exchange technological innovation to support our stores and the rates compared to 2023. Recurring EBITDA amounted customer experience. We are getting ready, therefore, to 568 million euro, 4.8% higher than in the prior year, to take advantage of all further growth opportunities with the margin at 23.6% (compared to 24% in 2023), stemming from the gradual normalization of the global in a context characterized by a soft European market hearing care market expected in the coming years. and strong M&A acceleration, above all in the United States, and despite the significant investments made All of this is possible thanks to the Group’s solidity, in our brand, network expansion and our hearing care confirmed by the main balance sheet and financial professionals to prepare for 2025. indicators. More in detail, in 2024 we generated free AMPLIFON AT A GLANCE 6 --- ANNUAL REPORT 2024 cash flow of around 176 million euros, an increase of the Top Employer 2025 certification, which we have worldwide, helping them to rediscover all the emotions 10% compared to 2023, while net financial debt came in achieved in three regions (Europe, North America of sound. These results would not have been possible at 962 million euros with financial leverage of 1.63x at and Latam) and in 16 countries, demonstrating our without the commitment, professionalism, passion and st December 31 , 2024. strategies to promote employee wellbeing and improve dedication of the more than 20,900 Amplifon employees the workplace environment. In 2024 approximately and collaborators worldwide, of the management team STATEMENTS As for sustainability, we continue to integrate ESG 575,000 hours of training were also provided to our and the directors. topics in our business strategy in order to share the employees and the new Diversity, Equity, Inclusion & CONSOLIDATED FINANCIAL value created with all of you, our Stakeholders. It was Belonging (DEIB) Action Plan was launched including We would like to thank all of you, Shareholders and in 2024 that we launched the new “Listening Ahead” bias-free workshops for the members of the DEIB Stakeholders, for your continuous support, the spur Sustainability Plan with 20 concrete and measurable, Committee and for global leaders. received and the trust you have placed in us. We look to multi-year (through 2026, 2027 and 2030) targets for the years that lie ahead with optimism, beginning with th the core dimensions (Product and Service Stewardship, Lastly, we continued to contribute to the wellbeing of the 2025, which marks the 75 anniversary of the founding People Empowerment, Community Impact, Ethical communities in which we operate, offering free hearing of our Group in Milan by Charles Holland, strengthened Conduct and Environmental Responsibility). tests which allowed customers to save approximately by the unchanged fundamentals of the hearing 200 million euros. We also encouraged our employees care market and our increasingly solid competitive Among the results achieved in 2024, we would like to to participate in social inclusion initiatives sponsored positioning. We are convinced that, together with you, highlight the reduction in our carbon footprint and by our Foundations and increased awareness about we will be able to continue along our sustainable growth the increase in the use of electricity from renewable hearing health through the “Listen Responsibly” path, improving the quality of life for millions of people sources, which jumped from 74% in 2023 to 80% program. We are also very happy to have supported worldwide. REPORT in 2024. All of the direct suppliers also adhered to Amplifon Foundation’s internationalization process ON OPERATIONS Amplifon’s Supplier Code of Conduct, as well as 50% of which in 2024 introduced the “Ciao!” project, focused the indirect ones, and we carried out ESG assessments on the social inclusion of the elderly, in Australia and Susan Carol Holland Enrico Vita on 90% of the direct suppliers. We also obtained a “B” France. Chairperson Chief Executive Officer score on the CDP Climate Change questionnaire, above the sector average, and launched the new Amplifon We are particularly proud of the results achieved, of the product packaging which is entirely reusable and made speed with which we responded to the challenges we had for more than 70% out of recycled materials. to face during the year and the further strengthening of our role as the hearing care global leader. All of this Another aspect of our commitment to our people is allows us to serve an ever-increasing number of people AMPLIFON AT A GLANCE 7 --- ANNUAL REPORT 2024 2024 HIGHLIGHTS 1 1,2 1,2 REVENUES EBITDA NET PROFIT (MILLION EUROS) (MILLION EUROS) (MILLION EUROS) 1,503.3 1,948.1 2,119.1 2,260.1 2,409.2 365.8 482.8 525.3 541.6 567.7 96.6 175.2 183.3 165.8 151.7 Mln € Mln € Mln € 2.500 600 200 500 2.000 160 400 1.500 120 STATEMENTS 300 1.000 80 CONSOLIDATED FINANCIAL 200 500 40 100 0 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 EBITDA 24.3% 24.8% 24.8% 24.0% 23.6% MARGIN 3 REVENUES BY REGION FREE CASH FLOW NET FINANCIAL DEBT (MILLION EUROS) (MILLION EUROS) REPORT ON OPERATIONS Mln € 256.9 254.9 246.7 160.2 175.9 Mln € 633.7 871.2 830.0 852.1 961.8 63.6% 300 1000 EMEA 800 225 21.1% 600 AMERICA 150 400 15.3% 75 200 APAC 0 0 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 AMPLIFON AT A GLANCE 1. Figures for 2020 presented without the contribution of the Elite wholesale business, winded-down at the end of 2021 and treated as discontinued operations according to the accounting principle IFRS 5. 2. Recurring data. 3. Data without lease liabilities. 8 --- ANNUAL REPORT 2024 2024 HIGHLIGHTS GLOBAL LEADER IN HEARING CARE EMPLOYEES > BY ROLE 13% > GLOBAL MARKET SHARE 49.1% HEARING CARE PROFESSIONALS 26 STATEMENTS 34.8% > COUNTRIES OTHER STORE CONSOLIDATED FINANCIAL PERSONNEL 5,480 16.1% > CORPORATE SHOPS SUPPORT FUNCTIONS > BY REGION 1,210 > SHOPS IN FRANCHISING 56.4% EMEA 3,310 16.2% AMERICAS > SHOP-IN-SHOPS REPORT & CORNERS 25.0% ON OPERATIONS APAC 2.4% 20,900 CORPORATE > PEOPLE > BY GENDER 15,070 > EMPLOYEES 73.4% WOMEN 26.4% MEN 0.2% NOT DISCLOSED AMPLIFON AT A GLANCE 9 --- ANNUAL REPORT 2024 2024 HIGHLIGHTS PRODUCT & SERVICE PEOPLE STEWARDSHIP EMPOWERMENT ~200 M€ ~50% > SAVED BY CUSTOMERS & PROSPECTS > EMPLOYEES IN STEM POSITIONS THANKS TO FREE HEARING TESTS New STATEMENTS Packaging ~47% CONSOLIDATED FINANCIAL > REUSABLE AND MADE BY OVER 70% > MANAGERIAL POSITIONS COVERED OF RECYCLED MATERIALS BY WOMEN ETHICAL CONDUCT & ENVIRONMENTAL COMMUNITY REPORT RESPONSIBILITY IMPACT ON OPERATIONS 3% >89,000 > REDUCTION IN GREENHOUSE GAS > NOISE MEASUREMENTS THROUGH THE (GHG) EMISSIONS VS 2023 LISTEN RESPONSIBLY APP SINCE 2020 ~80% >3,800 > RENEWABLE ELECTRICITY IN STORES > EMPLOYEE PARTICIPATIONS IN AND OFFICES FOUNDATIONS’ VOLUNTEERING AND SOCIAL AMBASSADORSHIP INITIATIVES ~290 mln AMPLIFON AT A GLANCE > BATTERIES SAVED 10 --- ANNUAL REPORT 2024 KEY EVENTS > JANUARY 2024 > MARCH 2024 > JULY 2024 Acquisition of the Audical Group, the Launch of the Group’s new sustainability Third acquisition in the United States main national player in the hearing plan with targets integrated into the since the beginning of the year, adding care market in Uruguay. Thanks to this business strategy, reflected in the top further 15 points of sales to Miracle- STATEMENTS transaction Amplifon now operates in management remuneration and linked Ear’s direct retail network, which CONSOLIDATED FINANCIAL 26 countries worldwide. to ESG-linked credit facilities, for an reaches 400 stores. even more responsible and sustainable business growth. > THIRD AND FOURTH REPORT > JANUARY 2024 > APRIL 2024 QUARTER 2024 ON OPERATIONS Acquisition of one of the main Miracle- Growth acceleration in the United States Signing of three new sustainability- Ear franchisees in the United States, with through the acquisition of 35 additional linked credit facilities for a total amount around 50 points of sales and annual points of sale from a Miracle-Ear of €325 million, further optimizing the revenues of around 20 million dollars, franchisee in Pennsylvania, with annual Group’s financial structure, diversifying further strengthening the Company’s revenues of around 20 million dollars. the sources of funding and extending position in the largest market worldwide. the average debt maturity. AMPLIFON AT A GLANCE 11 --- ANNUAL REPORT 2024 PURPOSE CORPORATE We empower people to rediscover all the emotions of sound. CULTURE MISSION Amplifon’s purpose is the reason We transform the way in which hearing care is the Company exists and has been perceived and experienced across the world, so that everyone naturally turns to the high-quality service serving its customers for 75 years. and professionalism offered by our specialists. Helping people rediscover all the Each day we strive to understand the unique needs emotions of sound motivates and STATEMENTS of each customer, guaranteeing each and every one guides Amplifon every day. The of them the best solution and a fantastic experience. CONSOLIDATED FINANCIAL Company’s values shape how its We select, develop and grow the best talent who people act, uniting them and making share our ambition to change the lives of millions of people around the world. unique the experience they offer. VALUES CUSTOMER PERSONAL DEVOTION IMPACT REPORT We serve our customers’ We empower our people to think ON OPERATIONS best interests with freely, perform and succeed, working passion and seek to together to make a lasting difference. surprise them by always going the extra-mile. EVERYDAY FORWARD ACTING EXCELLENCE THINKING RESPONSIBLY We take accountability We listen to the world We do well by doing good, for setting and around us and embrace acting with true integrity, delivering the highest every challenge with the and showing respect to standards of quality, ambition to learn, grow everyone, every time. AMPLIFON AT A GLANCE and never give up. and innovate. 12 --- ANNUAL REPORT 2024 KEY DRIVERS MARKET LIFE EXPECTANCY The global retail hearing care market is estimated at around 18 billion euros in 2024, with positive growth Increase in life expectancy is a fact. In 2018, for the first time in the expected in the medium and long-term thanks to its history of mankind, the number of people aged over 65 exceeded the solid fundamentals and secular trends. It is a highly 430 mln number of children under 5 years old. By 2050, it is estimated that 2.1 billion people will be 60 years old or more. fragmented market, although in consolidation, in which > PEOPLE WITH HEARING LOSS THAT REQUIRES HEARING CARE Amplifon holds a global leadership position with around 13% market share. Currently over 1.5 billion 700 mln people have some degree of hearing loss across the > BY 2050 ACTIVE LIFESTYLE world. Among those, it is estimated that at least 430 million people have a hearing loss that would require People nowadays have a much longer life expectancy than the 4 rehabilitation. By 2050 they will be 700 million . The previous generations and their quality of life is much higher. The so- STATEMENTS United Nations estimates that the number of people called active agers represent a new generation that won’t compromise 1.5 bln on quality of life as the years go by. aged above 60 years old will increase from the current CONSOLIDATED FINANCIAL > PEOPLE WITH SOME DEGREE OF 1.1 billion (14% of global population) to 2.1 billion HEARING LOSS WORLDWIDE 5 (22%) by 2050 , determining a considerable increase in the number of seniors who could develop hearing 2.5 bln TECHNOLOGY difficulties, both due to increasing life expectancy and > BY 2050 higher exposure to acoustic pollution (currently over 1 Advances in technology such as miniaturization, connectivity, billion young people are at risk of avoidable hearing rechargeability, and artificial intelligence contribute towards the loss). Finally, untreated hearing loss can negatively higher intake and accessibility of hearing devices. Thus, more and more people decide to take care of their own hearing impact people’s health, leading to cognitive decline, 1 bln depression, and falls. Today it represents a global annual > YOUNG PEOPLE AT RISK OF AVOIDABLE HEARING LOSS cost of approximately 1 trillion US dollars, linked to health sector spending, lost productivity, and related DIGITALIZATION social costs. Notwithstanding these implications, REPORT hearing aids adoption rate (the ratio between how The use of digital devices, such as smartphones and tablets, is ON OPERATIONS $ 1 trillion many people use a hearing aid and how many would rapidly increasing also among seniors. This makes it possible to offer > ANNUAL COST OF UNTREATED need one) is still very low, estimated at around 38% personalized and interconnected value-added services through new HEARING LOSS touchpoints such as apps. in high-income countries and between 5 and 10% in 6 emerging economies . RESILIENCE The importance of hearing well for people’s overall health makes the reference market resilient even in periods of deep economic crisis. In addition, consumers in many countries, mainly characterized by retirees with fixed incomes, can still rely on both government 4. Source: «World Report on Hearing», World Health Organization, KNOW MORE reimbursement and consumer credit to finalize their purchases. 2021: https://www.who.int/publications/i/item/9789240020481. 5. Source: United Nations website: https://www.un.org/en/global- issues/population e United Nations Population Fund website: HOW HEARING https://www.unfpa.org/ageing. AMPLIFON AT A GLANCE 6. Source: World Health Organization, EuroTrak, MarkeTrak. WORKS 13 --- ANNUAL REPORT 2024 STRATEGY Amplifon’s strategy is simple and focused, supported by three important pillars. The Group is focu- In Australia the Group In EMEA the Group 1. LEADERSHIP sed on growing in aims at consolidating aims at consolidating CONSOLIDATION the United States, its leadership throu- its leadership posi- AT GLOBAL LEVEL the largest market gh three perfectly tion through organic worldwide, where it complementary busi- growth supported The Group aims to strengthen aims to capture an nesses: Amplifon, At- by significant invest- its leadership in all core mar- STATEMENTS AMERICA even larger portion APAC tune, and Bay Audio. EMEA ments in marketing kets, consolidating its position of the value chain, In the very attractive and in customer where it is already a leader and CONSOLIDATED FINANCIAL leveraging its strategic businesses: Chinese market, destined to grow stron- experience innovation, with the pro- achieving leadership in markets Miracle-Ear (both direct retail and gly, Amplifon will continue to pursue its gressive roll-out of the Amplifon Product where the Company is not lea- franchising) and Amplifon Hearing growth path via M&A in new areas, as well Experience and Ampli-care, as well as der yet. Health Care. as organically around the existing hubs of through targeted M&A to reach optimal Beijing, Zhejiang, Shanxi, Jiangsu, Hubei, scale in France and Germany. Shaanxi, Inner Mongolia, Sichuan, Henan, Ningxia, Yunnan, Fujian, Shanghai, Tianjin, Chongqing, Hebei e Anhui. REPORT ON OPERATIONS COMMITMENT TO 2. A UNIQUE AND UNMATCHABLE 3. EFFECTIVE AND TALENTED SUSTAINABLE GROWTH CUSTOMER PROPOSITION ORGANIZATION Listening Ahead, the Group’s Sustainability Plan, outlines ambitious targets in line with the United Amplifon continues to enrich the customer proposi- The Group aims to increase the investments dedica- Nations Sustainable Development Goals to tion its offers by leveraging three distinctive assets: the ted to its people, both in its stores and in the back-of- continue to grow, every day, in a sustainable way. undisputed leading brands in the industry; a superior fice, with the goal of further improving their skills, customer knowledge deriving from the quantity and fostering the sharing of best practices within the quality of data the Company owns and uses to build the Group, and attracting the best talents every day to finest customer insights; and an innovative customer better support the implementation of the Company’s experience, in which digital technologies play a key role strategy and become even more competitive every in enriching the customer journey and enhancing pro- day. KNOW MORE tocols both inside and outside the stores, from the first contact to the after-sales service. SUSTAINABILITY AMPLIFON AT A GLANCE PLAN 14 --- ANNUAL REPORT 2024 DIGITAL INNOVATION AMPLIFON PRODUCT EXPERIENCE Amplifon Product Experience, namely the Amplifon Product Line, represents a unique lever to further strengthen the brand identity, differentiate the service offered, and deliver a complete value proposition made of product, service and experience. STATEMENTS CONSOLIDATED FINANCIAL The Amplifon Product Experience, which includes the and high value-added services to further increase Belgium, Portugal, New Zealand, and Switzerland), where Amplifon Product Line and the Amplifon multichannel customer satisfaction. the penetration rate of the private and paid-up market ecosystem, is an integrated system that synergically reached around 95%, and currently represents around combines service and product to redefine the entire Within the ecosystem, the Amplifon App is the first 70% of the Group’s consolidated revenues. customer journey by placing people at its center. touchpoint for consumers and, with a penetration of 23%, allows them to manage device functions while With the aim of making the business even more The Amplifon multichannel ecosystem is a cutting-edge providing suggestions related to battery replacement sustainable, the Company re-imagined the packaging system that uses digital technologies and big data to or the most suitable program for the surrounding of the Amplifon Product Line as to make it entirely collect and analyze information on the use of hearing sounds through the use of artificial intelligence. reusable and made by over 70% of recycled materials, devices, as well as feedback and needs from consumers, bearing in consideration its sustainability footprint and REPORT employing them to offer a unique, customized, and The Amplifon Product Experience was successfully how useful it can be to the final customer. The roll-out ON OPERATIONS distinctive experience. In fact, the Amplifon Product launched in 12 countries (Italy, France, Germany, Spain, the of the new packaging has already reached 5 countries: Experience redefines the entire customer journey (also Netherlands, the United States - Miracle-Ear and Amplifon Italy, Spain, Germany, New Zealand and Australia. outside our stores), offering fast access to differentiated Hearing Health Care -, Australia, United Kingdom, KNOW MORE INNOVATION & TECHNOLOGY AMPLIFON AT A GLANCE 15 --- ANNUAL REPORT 2024 AMPLI-CARE Amplifon’s platform to deliver a revolutionary and personalized audiological care experience, within the stores and at every step of the customer journey. With Ampli-care, a full ecosystem is activated around the customer, in which the unrivaled quantity and quality of data Amplifon possesses, as well as digital technologies play a key role in delivering a unique, innovative, and engaging experience along a seamless audiological care journey across all touchpoints. STATEMENTS AMPLI-CARE IS BASED ON THREE PILLARS CONSOLIDATED FINANCIAL IMMERSIVE EXPERIENCE HYPERPERSONALIZED SOLUTIONS ALWAYS CONNECTED SUPPORT Within Ampli-care, the stores, the primary touchpoint Thanks to a complex remote monitoring and support Thanks to the adoption of technologies that foster an in- in the customer journey, are completely revolutionized system, Amplifon hearing care professionals are always depth 360° knowledge of the single customer through an thanks to the new immersive store format which is being connected to intercept hearing solutions usage trends omnichannel approach, Ampli-care provides more and progressively rolled-out as part of our internal renovation and specific customer needs. Thus, they are able to more elements to hearing care professionals to offer a program. Currently present in around 500 stores support customers also when they are not in the store. hyperpersonalized service and experience. worldwide, the new format aims at offering consumers In the future, assistance will also be provided remotely a unique experience and reinforcing Amplifon’s global via videocalls and systems aimed at performing remote Ampli-care also supports them in identifying the best brand also through an innovative architectural design. fine-tunings to the hearing devices. Moreover, both solution for each customer through a proprietary system It focuses on both the retail area, consisting of the caregivers and ENTs, crucial influencers in the hearing called “solution builder engine”, already present in shops REPORT reception and the waiting area, with product displays, as solution adoption process, will also play a more active across Spain, the United Kingdom, and Belgium. ON OPERATIONS well as the Solution Room, where the customer remains role. at the center, between the caregiver and the hearing care This technology allows them to identify and propose professional, while enjoying an immersive experience the most suitable product, service offering and fitting also through visual and digital elements. Thanks to its for each customer, based on the audiological profile modular design for a scalable approach, it fits the needs and personal information gathered during the visit and of all the different stores around the world. The stores through other touchpoints. are also being equipped with an innovative diagnostic tool (the so-called Otopad, the first and only Ipad-based audiometer, developed internally) to provide interactive and engaging touch-based experiences, perform sophisticated audiological tests, as well as standardize the quality of service provided at the highest level and optimize hearing care professionals’ time. AMPLIFON AT A GLANCE 16 --- ANNUAL REPORT 2024 CUSTOMER SATISFACTION DIGITAL LEADERS AMPLIFON X To better understand customers’ expectations and The Amplifon.com website ranks first in organic traffic in Amplifon X is the internal start-up entirely dedicated to offer them an even more satisfactory level of service, 7 of the 8 major markets within the hearing care industry the Group’s digital innovation strategy. It is responsible Amplifon is committed to a customer feedback and the Company continues to invest to consolidate its for the software design and the end-to-end development collection and management program which foresees leadership also online. Customers and their caregivers of highly innovative digital solutions to enhance the continuous development of tools to measure and (friends and family) are also constantly engaged via the service offered in-store and, most importantly, monitor customer expectations and satisfaction in a other digital channels such as social media, leveraging remotely. With a team fully devoted to innovation, standardized fashion across the main countries where all the brands owned by the Group. In fact, thanks to an Amplifon X enables the Company to continue to redefine it operates. The surveys are conducted using different in-house team dedicated to content creation, Amplifon’s the standards of the audiological experience globally, contact channels (including call centers, e-mails, websites and social media are constantly optimized consolidating its significant competitive advantage and and SMS) and provide the Company with customers’ using a data-driven approach and fully integrated with creating a unique and unmatchable experience for both STATEMENTS satisfaction level throughout the key moments of their Customer Relationship Management systems to be customers and hearing care professionals. relation with Amplifon: the hearing test and the trial, increasingly effective. Today, more than 25% of the leads CONSOLIDATED FINANCIAL the purchase phase, the follow-up phase, the decision come from the Company’s digital platforms, and the not to proceed with the purchase, and the entire after number of appointments booked online has increased care phase. by around 20% globally compared to just one year ago. Finally, thanks to Earpros.com, the Group’s unbranded In 2021 the entire process to measure customer platform available in 10 countries, additional 4.8 million satisfaction based on the Net Promoter Score (NPS) users have been reached, on average 4 years younger was redesigned. Since then, customers evaluate their than the users reached by the Amplifon sites. overall experience, awarding a score on a scale of 0 to 10 on the point of sale, services, and product, by DIGITAL FOSTERING ACCESSIBILITY replying to the question “to what extent would you recommend Amplifon to friends and family?”. The final In the same way consumer websites allow customers NPS value is calculated as the difference between the and potential customers to easily access services such REPORT so-called promoters (who awarded a score of 9 or 10) as the store locator and the online hearing test, the ON OPERATIONS and the so-called detractors (who gave a score of 6 Amplifon App also offers high value-added services. or less). In 2022 the program was implemented in 11 In addition to checking hearing device functions in real countries, among which important markets such as time, the app services include the online appointment Italy, France, Spain, Germany and Australia, and - in the booking, video tutorials to solve small problems, and the following years - specific actions have been carried out “Companion”, which provides an essential support in to leverage on promoters’ word of mouth, as well as to the early stages of the device utilization. In this way, and improve detractors’ satisfaction. Finally, in 2024, the also thanks to the App’s rapid and intuitive navigation survey was further enriched thanks to the inclusion of 4 paths, customers are supported also remotely, thus additional moments of evaluation by clients with a view increasing the accessibility of our services. to gathering as much information as possible in order to improve their satisfaction. AMPLIFON AT A GLANCE 17 --- ANNUAL REPORT 2024 BUSINESS MODEL Amplifon offers unique hearing care services directly to the end-customer thanks to extensive technical expertise, innovative technologies and, above all, empathy: those who choose Amplifon enjoy an exclusive and fully personalized experience. THE AMPLIFON 360 PROTOCOL STATEMENTS The success of hearing solutions relies above all on the hearing care specialist’s ability to perform CONSOLIDATED FINANCIAL hearing tests, select the most suitable devices among the most advanced technologies by the best manufacturers worldwide, and correctly fit them based on each single person’s needs. 7 For this very reason the Company conceived Amplifon 360 , the patented store protocol that, through its data-driven approach, employs pioneering tools and user-friendly technologies to assess hearing quality and guides Amplifon’s hearing care professionals towards the identification of the best hearing solution for each person’s needs. Amplifon 360 increases customers’ involvement in the hearing evaluation process, improving the analysis of their needs and individual lifestyles. The protocol is illustrated to the customer with the support of digital applications through a video interface that allows the customer to enjoy an immersive experience, understand their hearing requirements and the benefits of the proposed hearing solution. As evidence of its benefits, the Amplifon 360 protocol was approved REPORT by SIAF (the Italian society of audiology and phoniatrics) and patented in the US, Australia, and Europe, thus certifying its uniqueness and novelty as well as demonstrating its importance in ON OPERATIONS the development of hearing care. Amplifon 360, thanks to the free hearing tests offered to anyone entering Amplifon’s stores, further increases accessibility to hearing care to countless people thereby generating a considerable economic saving for customers, prospects, and community in general. KNOW MORE CUSTOMER-DEVOTED AMPLIFON AT A GLANCE 7. Available in most countries of operation. 18 --- ANNUAL REPORT 2024 BUSINESS-TO-CONSUMER In EMEA, APAC, Canada, and Latin America, Amplifon serves its customers through direct points of sale. In the United States, the Company operates around 400 direct points of sale under the Miracle- Ear brand. BUYS BUYS PRODUCT & PRODUCT CUSTOMER MANUFACTURERS SERVICE FRANCHISING STATEMENTS Miracle-Ear operates in the United States mainly through a franchised network. It’s around 1,210 points of sales provide hearing care services to end-customers independently while following Amplifon’s CONSOLIDATED FINANCIAL strategic guidelines. BUYS PRODUCT & BUYS HIGH BUYS PRODUCT & VALUE- PRODUCT CUSTOMER SERVICE FRANCHISEE MANUFACTURERS ADDED SERVICES MANAGED CARE REPORT Amplifon Hearing Health Care offers hearing care solutions to health plan members in the United ON OPERATIONS State through a distribution network made of the 1,600 Miracle-Ear shops, as well as over 5,400 independent retailers. OUTSOURCES SUBSCRIBES BUYS SERVICE INSURANCE PRODUCT CUSTOMER INSURANCE MANAGEMENT MANUFACTURERS COVERAGE COMPANY PROVIDES PRODUCT & SERVICE NETWORK INDEPENDENT THROUGH STORES AMPLIFON AT A GLANCE THIRD- PARTIES 19 --- ANNUAL REPORT 2024 EMEA DISTRIBUTION Corporate shops Shop-in-shops & corner 3,600 3,070 NETWORK Amplifon is a global leader in terms of geographic coverage and distribution network capillarity, recognized for its quality of STATEMENTS service and competencies. CONSOLIDATED FINANCIAL The Group operates under three regions – EMEA, Americas and APAC. Each region corresponds to a business area and is responsible for pursuing the Company’s strategy at local level and for sharing its know-how among the various countries. Thanks to the capillarity of its distribution network, composed of REPORT around 5,480 direct points of sale and ON OPERATIONS 1,210 shops in franchising, Amplifon is always close to those suffering from hearing loss, allowing everyone, even those with reduced mobility, to easily access quality audiological service. With around 3,310 shop-in-shops & corners AMERICA APAC located in third-party premises such Corporate shops Franchisees Corporate shops Shop-in-shops & corner as pharmacies, opticians and medical clinics, the Company is able to reach 730 1,210 1,150 240 people with hearing loss also in rural areas or in areas that are not as densely populated and, thanks to home visits, it serves customers with reduced mobility who cannot physically get to stores. AMPLIFON AT A GLANCE 20 --- ANNUAL REPORT 2024 STRENGTHS > PROFESSIONAL EXPERTISE > GLOBAL SCALE Around 8,200 hearing care specialists perform hundreds of thousands of hearing tests The Group’s global distribution network, interconnected through systems and and keep up to date by completing around 345,000 hours of training each year. They databases, allows Amplifon to stay close to its customers, share excellence among its bring together innovation, scientific knowledge and a highly personalized approach hearing care specialists in 26 Countries and diversify exposure to different markets. following the exclusive Amplifon 360 protocol to ensure an excellent customer experience. > BRANDS > EMPLOYER OF CHOICE The Group’s portfolio of strong, well-known brands allows the Company to drive a Amplifon is the employer of choice thanks to its corporate culture, constant investment real cultural change in the sector, redefining the way in which customers relate to their in talent and incentives for their professional development, also through assignments STATEMENTS hearing well-being. United under the Amplifon brand, all trademarks invite people to within global project. enjoy unique experiences. CONSOLIDATED FINANCIAL > INNOVATION > SCIENTIFIC LEADERSHIP Through Amplifon X, the agile business unit entirely dedicated to developing highly Amplifon’s Centre for Research and Studies is a specialist partner for the medical innovative digital solutions, Amplifon expresses its attitude of always looking ahead and scientific community in the fields of audiology and ENT since 1971. Its prestige and pushing its limits. The Amplifon multichannel ecosystem of customer-centric, is linked to the contribution of internationally recognized experts, whose innovative omni-channel and omni-persona solutions enables data mining activities, thus contribution is fundamental for the continuous theoretical and practical development allowing the Company to develop high value-added services to further differentiate of the medical community. the customer journey and the experience offered. REPORT ON OPERATIONS Our global positioning and our 75 years of experience allow us to aspire to be the best at interpreting the needs of people who won’t settle for anything else apart from living life to the full. AMPLIFON AT A GLANCE 21 --- ANNUAL REPORT 2024 INVESTORS’ REPORT AMPLIFON IN THE STOCK EXCHANGE SHAREHOLDING ST 11 Amplifon (Bloomberg ticker: AMP:IM / Reuters ticker: AMPF.MI) is listed on the SHAREHOLDER STRUCTURE AS OF DECEMBER 31 , 2024 Euronext Milan market of the Italian Stock Exchange since 2001 and it is part of the Euronext STAR Milan segment since 2008. In December 2018, Amplifon became part of the FTSE MIB index, made of the 40 largest capitalization stocks of the Milan Stock 42.0% Exchange. Since June 2019, Amplifon is also part of the Stoxx Europe 600 index and AMPLITER S.r.l. since November 2020 it is part of the MSCI Global Standard index as well. Finally, in October 2021 Amplifon was included in the MIB ESG index launched by Euronext and 0.5% Borsa Italiana, dedicated to the 40 Italian blue chips which demonstrate strong ESG TREASURY STATEMENTS SHARES (Environment, Social & Governance) practices. CONSOLIDATED FINANCIAL 2024 PERFORMANCE 22% 57.5% MARKET 12% 12.6%12.6% 2% 2.9%2.9% -8% ENHANCED INCREASED VOTING RIGHTS -18% -20.7%-20.7% The possibility of accruing increased voting rights, in place since 2015, was enhanced th by the Extraordinary Shareholders’ Meeting held on April 30 , 2024 in line with the -28% REPORT Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec new legal provisions in Italy, with a view to encouraging a capital structure more ON OPERATIONS supportive of the Company’s further growth path in the long-term at global level. Amplifon FTSE Mib STOXX Europe 600 Health Care The enhanced increased voting rights mechanism gives all shareholders the option to obtain increased voting rights equal to two votes for each share held for at least 24 consecutive months from the registration date shown in the shareholder register prepared by the Company, in continuity with the past, and to accrue the third vote after a further year from such date and the subsequent votes (i.e., fourth, fifth vote and so KEY SHARE DATA on) year by year up to a maximum of 10 votes per share, in accordance with current law st and regulations. On December 31 , 2024, there were 95,592,712 registered shares with Stock exchange EXM Nominal value € 0.02 2 voting rights (59.38% of the Company’s voting capital), of which 95,105,392 shares (59.08% of the voting capital) owned by the majority shareholder Ampliter S.r.l.. 10 Bloomberg/Reuters ticker AMP:IM /AMPF.MI Average price € 29.663 8 10 Share capital € 4.528 Average volumes 609,233 8,9 8,9 N° of shares outstanding 225,320,371 Market capitalization € 5.599 8. At 31.12.2024, in million euros. 9. Excluding treasury shares. AMPLIFON AT A GLANCE 10.Last 12 months. st 11. Percentages refer to the share capital on December 31 , 2024. 22 --- ANNUAL REPORT 2024 RELATIONS WITH THE FINANCIAL COMMUNITY STOCK COVERAGE st As of December 31 , 2024, the Amplifon stock was covered by 19 brokers who followed the Company with specific research and analyses, generally with positive recommendations. Goldman Sachs and Stifel restarted coverage in December 2024, while coverage by Bernstein Research is temporarily suspended. AlphaValue Citi JP Morgan Banca Akros Equita SIM Kepler Cheuvreux Bank of America Goldman Sachs Mediobanca STATEMENTS Barclays HSBC Morgan Stanley Bernstein Research Intermonte Oddo BHF Corporates & Markets CONSOLIDATED FINANCIAL BNP Paribas Exane Intesa Sanpaolo Stifel Carnegie Jefferies RESULTS CONFERENCE CALLS Amplifon organizes conference calls and audiowebcasts with the financial community (analysts and institutional investors) for the release of its annual, half-year and quarterly results. On average, there were over 150 people connected to each conference call. MEETINGS WITH THE FINANCIAL COMMUNITY REPORT During 2024, the Company’s management - Chief Executive Officer, Chief Financial ON OPERATIONS Officer and Investor Relator - took part in 8 roadshows, both in person and virtually, with investors in the main international financial centers (London, Milan, Paris, Frankfurt, Edinburg, New York, Boston, Chicago and Toronto), meeting around 140 institutional investors in one-on-one and group meetings. Furthermore, the Company attended 10 international conferences, both in the Healthcare and Hearing Aids sectors, organized SHAREHOLDER ENGAGEMENT POLICY by leading institutions such as Bank of America, BNP Paribas Exane, Jefferies, JP Morgan The Investor Relations and Shareholders Engagement Policy describes the principles and Kepler Cheuvreux, and conferences dedicated to Italian and/or mid-capitalization and practices that Amplifon applies for managing the constant and ongoing relationship companies organized by Borsa Italiana, Equita SIM, Kepler Cheuvreux, Mediobanca and with shareholders, potential investors and the Company’s main stakeholders, always Unicredit. During these conferences, the management met around 350 institutional based on active listening and on principles of fairness and transparency. The policy investors in both one-on-one and group meetings. In addition, management met describes the relationships within the competences of the corporate functions and around 200 institutional investors during company visits, via video or conference calls, regulates the engagement activities designed to promote dialogue between the leading to a total of more than 400 investors met throughout 2024. Company and its shareholders, defining the related topics, setting out the procedures and identifying the parties responsible for the engagement activities and the other persons potentially involved. AMPLIFON AT A GLANCE 23 --- ANNUAL REPORT 2024 DEBT & CREDIT RATING Amplifon leverages on a solid financial structure capable of supporting its ambitious growth projects and future opportunities also thanks to a strong cash flow generation. In order to ensure consistency between its financial structure and strategic objectives, the Company diversifies the debt composition and maturity. FINANCIAL STRUCTURE BANKING MARKET Strong cash generation in 2024 with the operating cash flow at 320.9 million euros In June 2024 the Company signed the last tranche for 50 million euros out of the overall STATEMENTS and free cash flow at 175.9 million euros, after capex of around 145.0 million euros. 350-million-euro financing granted by the European Investment Bank, 300 million This result allowed to finance cash-outs for acquisitions for 192.5 million euros, share euros of which were already subscribed in 2023 to support the Group’s innovation CONSOLIDATED FINANCIAL buybacks for 25.4 million euros, and dividend distribution for 65.6 million euros. As and digitalization process. Moreover, in September and October, Amplifon signed two st of December 31 , 2024, the Group has liquidity of 288.8 million euros versus gross new sustainability-linked credit facilities, both amortizing with a 5-year term, for a total financial debt, excluding lease liabilities, of 1.250,0 million euros. amount of 250 million euros. In detail, a 200-million-euro credit facility was signed with UniCredit and Cassa Depositi e Prestiti (CDP), divided as follows: 100 million euros from The medium to long-term component of debt amounts to 76.8% of the total debt, while UniCredit to support the Group’s development initiatives and 100 million euros from the short-term is 23.2%. Around 80% of the debt can be considered fixed-rate debt CDP which co-financed Amplifon’s investments in innovation in Italy. Furthermore, since most of the variable-rate debt is swapped. During the year, the average cost of Crédit Agricole Italia, backed by SACE’s Garanzia Futuro, financed for 50 million euros debt was around 2.9 %. the international roll-out of Amplifon’s new store format, aimed at providing consumers with an immersive and completely personalized experience. Amplifon enjoys an average debt maturity of approximately two and a half years and a strong headroom (available liquidity and committed credit lines) totaling around 1 Finally, in December 2024, Amplifon signed a further sustainability-linked credit facility billion euros. for a total amount of 75 million euros, amortizing with a 5-year term, with Mediobanca. REPORT ON OPERATIONS In line with the Group’s sustainability strategy, these new credit lines are linked to specific indicators of the Sustainability Plan, which if reached will activate a margin adjustment mechanism applied to the credit lines. Through these facilities, characterized by particularly favorable conditions, Amplifon further optimizes its financial structure thanks to an even more solid liquidity position, more diversified sources of funding and an extension of the average debt maturity. DEBT CAPITAL MARKETS th On February 5 , 2020, Amplifon placed non-convertible bond notes for 350 million euros with 7-year maturity. Amplifon has a public “BB+” corporate credit rating with a stable outlook by S&P Global Ratings Europe Limited (“S&P”), the same rating is also assigned to the bond notes. AMPLIFON AT A GLANCE 24 --- ANNUAL REPORT 2024 2025 FINANCIAL CALENDAR RD TH > APRIL 23 , 2025 > JULY 29 , 2025 Shareholders’ General Meeting (Single Board of Directors’ meeting to approve Call) to approve Amplifon S.p.A.’s the Interim Management Report at June st th Financial Statement at December 31 , 30 , 2025. STATEMENTS 2024 and the allocation of 2024 Net CONSOLIDATED FINANCIAL Result, as well as appoint the new Board of Directors. TH TH TH > MARCH 6 , 2025 > MAY 6 , 2025 > OCTOBER 29 , 2025 REPORT ON OPERATIONS Board of Directors’ meeting to Board of Directors’ meeting to approve Board of Directors’ meeting to approve the Consolidated Financial & the Interim Financial Report at March approve the Interim Financial Report st th Sustainability Statements, the draft of 31 , 2025. at September 30 , 2025. Amplifon S.p.A.’s Financial Statements at st December 31 , 2024 and the proposed allocation of 2024 Net Result. AMPLIFON AT A GLANCE 25 --- ANNUAL REPORT 2024 REPORT ON OPERATIONS st as at December 31 , 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 26 --- ANNUAL REPORT 2024 INDEX ST REPORT ON OPERATIONS AS AT DECEMBER 31 , 2024 > COMMENTS ON THE FINANCIAL RESULTS 28 • TRANSACTIONS WITHIN THE GROUP AND WITH RELATED PARTIES 77 28 • REVENUES PERFORMANCE • CONTINGENT LIABILITIES 77 28 • PROFITABILITY PERFORMANCE • ATYPICAL/UNUSUAL TRANSACTIONS 77 29 • NET FINANCIAL POSITION CHANGES • OUTLOOK 78 30 • CONSOLIDATED INCOME STATEMENT • COMMENTS ON THE ECONOMIC-FINANCIAL 33 • RECLASSIFIED BALANCE SHEET RESULTS OF AMPLIFON S.P.A. 79 STATEMENTS • CONDENSED RECLASSIFIED CONSOLIDATED • RECLASSIFIED CONDENSED BALANCE SHEET 81 CASH FLOW STATEMENT 34 • CONDENSED RECLASSIFIED CASH FLOW 82 CONSOLIDATED FINANCIAL • INDICATORS 35 STATEMENT • INCOME STATEMENT REVIEW 38 • REVENUES FROM SALES AND SERVICES 83 • REVENUES FROM SALES AND SERVICES 42 • GROSS OPERATING PROFIT (EBITDA) 83 • GROSS OPERATING PROFIT (EBITDA) 46 • OPERATING PROFIT (EBIT) 84 • OPERATING PROFIT (EBIT) 50 • PROFIT BEFORE TAX 84 • PROFIT BEFORE TAX 54 • NET PROFIT ATTRIBUTABLE TO THE GROUP 85 • GROUP NET RESULT 55 • NON-CURRENT ASSETS 86 • BALANCE SHEET REVIEW 56 • NET INVESTED CAPITAL 86 • INVESTMENTS 58 • NET FINANCIAL POSITION 86 • NON-CURRENT ASSETS 58 • NET EQUITY 87 • NET INVESTED CAPITAL 61 • RECLASSIFIED CONDENSED CASH FLOW 88 • NET FINANCIAL POSITION 62 STATEMENT REPORT • CASH FLOW STATEMENT 64 • DATA CONTROLLER 89 ON OPERATIONS • ACQUISITION OF COMPANIES AND BUSINESSES 66 • SUBSIDIARIES 89 • STATEMENT OF CHANGES BETWEEN THE NET • OUTLOOK 89 EQUITY AND THE RESULTS OF THE PARENT • YEARLY REPORT ON CORPORATE COMPANY AMPLIFON S.P.A. AND THE NET GOVERNANCE AND OWNERSHIP STRUCTURE ST EQUITY AND THE RESULTS OF THE GROUP FOR AS AT DECEMBER 31 2024 89 ST THE PERIOD AS AT DECEMBER 31 , 2024 66 • RISK MANAGEMENT 67 > CONSOLIDATED SUSTAINABILITY • TREASURY SHARES 76 STATEMENT 90 • RESEARCH AND DEVELOPMENT 77 AMPLIFON AT A GLANCE 27 --- ANNUAL REPORT 2024 Revenue growth was very significant in Americas and Asia Pacific, while Europe, albeit COMMENTS ON THE higher, continues to be impacted by what is still a soft market. FINANCIAL RESULTS PROFITABILITY PERFORMANCE In 2024 Amplifon recorded a significant increase in revenues overall, well balanced Gross operating profit (EBITDA) amounted to €561,090 thousand in 2024, an increase between organic growth and the contribution of acquisitions, driven mainly by against the comparison period of 34,241 thousand (+6.5%). The EBITDA margin stood Americas and Asia Pacific. Profitability was down slightly due to what is still a soft at 23.3%, in line with 2023. European market and the dilutive effects of the accelerated growth in Miracle-Ear’s direct store network in the United States. The result for the reporting period reflects non-recurring expenses of €6,587 thousand explained: The year closed with: STATEMENTS • for €3,447 thousand, by the second phase of the GAES integration; • turnover of €2,409,241 thousand, up 7.0% at constant exchange rates and 6.6% at • for 1,678 thousand, by the costs incurred to implement amendments to the CONSOLIDATED FINANCIAL current exchange rates compared to 2023; Company’s Articles of Association, including relative to the enhanced voting rights, • a recurring gross operating margin (EBITDA) of €567,677 thousand, an increase of comprising primarily tax, legal and financial consultancies, as well as the expenses €26,090 thousand (+4.8%) with the EBITDA margin at 23.6% (-0.4 p.p. against the related to the organization of the Extraordinary Shareholders’ Meeting held on 30 comparison period); April 2024; • Group net profit on a recurring basis of €151,747 thousand, a decrease of €14,043 • for €1,282 thousand, by the notional cost of the one-off assignment made by the thousand (-8.5%) compared to 2023 due to higher amortization, depreciation and shareholder Ampliter of 500,000 of its Amplifon shares to the Chief Executive financial expenses. Officer recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”; • for €180 thousand, by the integration of Bay Audio. REVENUES PERFORMANCE Net of these items, EBITDA would have been €26,090 thousand (+4.8% higher than in 2023) with a decrease in the EBITDA margin of -0.4 p.p. REPORT Consolidated revenues from sales and services amounted to €2,409,241 thousand in ON OPERATIONS 2024, an increase of €149,157 thousand (+6.6%) compared to 2023, of which €76,186 thousand (+3.4%) attributable to organic growth. Acquisitions contributed €82,594 thousand (+3.7%), while the foreign exchange effect was negative for €9,623 thousand (-0.4%). AMPLIFON AT A GLANCE 28 --- ANNUAL REPORT 2024 NET FINANCIAL POSITION CHANGES Excluding lease liabilities, net financial debt amounted to €961,805 thousand compared to €852,130 thousand at year-end 2023. Free cash flow reached a positive €175,855 thousand, an increase of €15,673 thousand compared to the €160,182 thousand in the prior year). The significant net cash-outs for acquisitions of €192,531 thousand (versus €108,469 thousand in 2023), along with the €65,593 dividend payment (€65,361 thousand in the comparison period), the €25,396 thousand used to purchase treasury shares (no treasury shares were purchased in 2023) and the €5,290 thousand in positive flows generated by financial assets, bring cash flow for the reporting period to negative €104,307 thousand versus a negative €17,532 thousand in 2023. STATEMENTS Gross debt, excluding lease liabilities, amounted to €1,250,639 thousand on 31 December 2024, €960,387 thousand of which long-term. The short-term portion CONSOLIDATED FINANCIAL amounted to €290,252 thousand which is offset by cash and cash equivalents and other current financial assets of €288,834 thousand. The latter, along with the €480 million in unutilized irrevocable credit lines, the unutilized portion of the loan signed with the European Investment Bank amounting to €225 million and the €222 million in other available uncommitted credit lines, provide ample headroom and ensure the flexibility needed to take advantage of any opportunities to consolidate and develop business that might materialize. If the lease liabilities of €514,337 thousand are taken into account, net financial debt totals €1,476,142 thousand (€1,349,561 thousand on 31 December 2023). REPORT ON OPERATIONS AMPLIFON AT A GLANCE 29 --- ANNUAL REPORT 2024 CONSOLIDATED INCOME STATEMENT (€ thousands) FY 2024 FY 2023 Change % on (*) (*) Recurring Non-recurring Total % on recurring Recurring Non-recurring Total % on recurring recurring Revenues from sales and 2,409,241 - 2,409,241 100.0% 2,260,084 - 2,260,084 100.0% 6.6% services Operating costs (1,848,006) (6,587) (1,854,593) -76.7% (1,727,574) (14,738) (1,742,312) -76.4% -7.0% Other income and costs 6,442 - 6,442 0.3% 9,077 - 9,077 0.4% -29.0% Gross operating profit (loss) 567,677 (6,587) 561,090 23.6% 541,587 (14,738) 526,849 24.0% 4.8% (EBITDA) Depreciation, amortization STATEMENTS and impairment losses on non- (120,403) - (120,403) -5.0% (99,371) - (99,371) -4.4% -21.2% current assets CONSOLIDATED FINANCIAL Right-of-use depreciation (131,586) - (131,586) -5.5% (119,292) - (119,292) -5.3% -10.3% Operating result before the amortization and impairment 315,688 (6,587) 309,101 13.1% 322,924 (14,738) 308,186 14.3% -2.2% of PPA related assets (EBITA) PPA related depreciation, (50,729) (1,558) (52,287) -2.1% (48,974) - (48,974) -2.2% -3.6% amortization and impairment Operating profit (loss) (EBIT) 264,959 (8,145) 256,814 11.0% 273,950 (14,738) 259,212 12.1% -3.3% Income, expenses, revaluation and adjustments of financial 225 - 225 - 555 - 555 - -59.5% assets Net financial expenses (57,062) - (57,062) -2.4% (48,511) - (48,511) -2.1% -17.6% Exchange differences, inflation accounting and Fair value (3,197) - (3,197) -0.1% (1,509) - (1,509) -0.1% -111.9% REPORT valuation ON OPERATIONS Profit (loss) before tax 204,925 (8,145) 196,780 8.5% 224,485 (14,738) 209,747 9.9% -8.7% Tax (52,982) 1,772 (51,210) -2.2% (58,809) 4,087 (54,722) -2.6% 9.9% Net profit (loss) 151,943 (6,373) 145,570 6.3% 165,676 (10,651) 155,025 7.3% -8.3% Profit (loss) of minority interests 196 - 196 - (114) - (114) - Net profit (loss) attributable 151,747 (6,373) 145,374 6.3% 165,790 (10,651) 155,139 7.3% -8.5% to the Group (*) See table at page 32 for details of non-recurring transactions. AMPLIFON AT A GLANCE 30 --- ANNUAL REPORT 2024 (€ thousands) Fourth quarter 2024 Fourth quarter 2023 Change % on (*) (*) Recurring Non-recurring Total % on recurring Recurring Non-recurring Total % on recurring recurring Revenues from sales and 664,408 - 664,408 100.0% 615,019 - 615,019 100.0% 8.0% services Operating costs (510,246) (2,166) (512,412) -76.8% (462,774) (1,517) (464,291) -75.2% -9.8% Other income and costs 1,282 - 1,282 0.2% 3,535 - 3,535 0.6% -76.0% Gross operating profit (loss) 155,444 (2,166) 153,278 23.4% 155,780 (1,517) 154,263 25.3% -0.2% (EBITDA) Depreciation, amortization STATEMENTS and impairment losses on non- (36,133) - (36,133) -5.4% (31,010) - (31,010) -5.0% -16.5% current assets CONSOLIDATED FINANCIAL Right-of-use depreciation (34,699) - (34,699) -5.3% (31,383) - (31,383) -5.1% -10.6% Operating result before the amortization and impairment 84,612 (2,166) 82,446 12.7% 93,387 (1,517) 91,870 15.2% -9.4% of PPA related assets (EBITA) PPA related depreciation, (11,614) (1,558) (13,172) -1.7% (12,327) - (12,327) -2.0% 5.8% amortization and impairment Operating profit (loss) (EBIT) 72,998 (3,724) 69,274 11.0% 81,060 (1,517) 79,543 13.2% -9.9% Income, expenses, revaluation and adjustments of financial (58) - (58) 0.0% 344 - 344 0.1% -116.9% assets Net financial expenses (15,428) - (15,428) -2.4% (15,101) - (15,101) -2.6% -2.2% Exchange differences, inflation accounting and Fair value (950) - (950) -0.1% 2,185 - 2,185 0.4% -143.5% REPORT valuation ON OPERATIONS Profit (loss) before tax 56,562 (3,724) 52,838 8.5% 68,488 (1,517) 66,971 11.1% -17.4% Tax (12,133) 549 (11,584) -1.8% (15,629) 242 (15,387) -2.5% 22.4% Net profit (loss) 44,429 (3,175) 41,254 6.7% 52,859 (1,275) 51,584 8.6% -15.9% Profit (loss) of minority interests 61 - 61 - (117) - (117) - Net profit (loss) attributable 44,368 (3,175) 41,193 6.7% 52,976 (1,275) 51,701 8.6% -16.2% to the Group (*) See table at page 32 for details of non-recurring transactions. AMPLIFON AT A GLANCE 31 --- ANNUAL REPORT 2024 In order to allow for a better understanding of the Group’s economic-financial The impact of the non-recurring transactions referred to above is shown in the performance, in addition to the standard IFRS indicators, alternative performance following table: indicators are also provided which are not in substitution of the standard IFRS performance indicators. (€ thousands) The criteria used to determine the main alternative performance indicators deemed FY 2024 FY 2023 useful by the Board of Directors for the purposes of understanding the Group’s GAES integration costs (3,447) (1,931) performance and its business are provided below. Costs incurred to define and implement amendments to the (1,678) - Articles of Association including the enhanced voting rights • EBITDA is the operating result before charging financial gain or loss, taxes, Notional cost of the Amplifon una tantum shares assigned in amortization, depreciation, impairment of both tangible and intangible fixed assets (1,282) (12,433) 2023 by the shareholder Ampliter to the CEO and the right of use depreciation. Bay Audio integration costs (180) (374) • EBITAis the operating result before charging financial gain or loss, taxes, amortization and impairment of customer lists, trademarks, non-competition agreements and Impact of the non-recurring items on EBITDA (6,587) (14,738) STATEMENTS other fixed assets arising from business combinations. Cost relating to the writedown of the equity investment in (1,558) - • EBIT is the operating result before financial income and charges and taxes. Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH CONSOLIDATED FINANCIAL Impact of the non-recurring items on EBIT (8,145) (14,738) The costs relating to the non-recurring transactions highlighted above relate Impact of the non-recurring items on profit before tax (8,145) (14,738) specifically to: Impact of the above items on the tax burden for the period 1,772 4,087 • for €3,447 thousand, the second phase of the GAES integration; Impact of the non-recurring items on net profit (6,373) (10,651) • for €1,678 thousand, the costs incurred to define and implement the amendments to the Articles of Association, including the enhanced voting rights, comprising primarily tax, legal and financial consultancies, as well as the expenses related to (€ thousands) the organization of the Extraordinary Shareholders Meeting held on 30 April 2024; • for €1,558 thousand, the writedown of goodwill relating to the equity investment in Q4 2024 Q4 2023 Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH, in accordance with IAS GAES integration costs (1,969) (498) 36, operating in a business not directly related to hearing aids; REPORT • for €1,282 thousand, the notional cost of the one-off assignment made in 2023 by Notional cost of the Amplifon una tantum shares assigned in (144) (819) ON OPERATIONS 2023 by the shareholder Ampliter to the CEO the shareholder Ampliter of 500,000 of its Amplifon shares to the Chief Executive Officer; Bay Audio integration costs (53) (200) • for €180 thousand, the Bay Audio integration in Australia. Costs incurred to define and implement amendments to the - - Articles of Association including the enhanced voting rights Impact of the non-recurring items on EBITDA (2,166) (1,517) Cost relating to the writedown of the equity investment in (1,558) - Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH Impact of the non-recurring items on EBIT (3,724) (1,517) Impact of the non-recurring items on profit before tax (3,724) (1,517) Impact of the above items on the tax burden for the period 549 242 Impact of the non-recurring items on net profit (3,175) (1,275) AMPLIFONLANCE G A AT 32 --- ANNUAL REPORT 2024 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. Items related to the discontinued operation are included in the following table for the comparative period. (€ thousands) 12/31/2024 12/31/2023 Change Goodwill 1,945,495 1,799,574 145,921 Customer lists, non-compete agreements, trademarks and location rights 259,447 255,683 3,764 Software, licenses, other int.ass., wip and advances 168,913 160,906 8,007 Tangible assets 253,925 221,516 32,409 Right of use assets 492,064 478,153 13,911 (1) Fixed financial assets 24,472 16,704 7,768 (1) Other non-current financial assets 41,432 43,851 (2,419) Total fixed assets 3,185,747 2,976,387 209,360 STATEMENTS Inventories 93,180 88,320 4,860 CONSOLIDATED FINANCIAL Trade receivables 226,754 231,253 (4,499) Other receivables 115,304 107,042 8,262 Current assets (A) 435,238 426,615 8,623 Total assets 3,620,985 3,403,002 217,983 Trade payables (377,100) (358,955) (18,145) (2) Other payables (374,272) (379,290) 5,018 Provisions for risks (current portion) (2,403) (1,268) (1,135) Short term liabilities (B) (753,775) (739,513) (14,262) Net working capital (A) - (B) (318,537) (312,898) (5,639) (3) Derivative instruments 3,680 12,933 (9,253) Deferred tax assets 77,332 82,701 (5,369) Deferred tax liabilities (99,493) (98,451) (1,042) Provisions for risks (non-current portion) (20,925) (19,379) (1,546) REPORT Employee benefits (non-current portion) (15,457) (12,963) (2,494) ON OPERATIONS (4) Loan fees 3,452 3,007 445 Other long-term payables (189,433) (180,098) (9,335) NET INVESTED CAPITAL 2,626,366 2,451,239 175,127 Shareholders' equity 1,150,002 1,100,919 49,083 Third parties' equity 222 759 (537) Net equity 1,150,224 1,101,678 48,546 (4) Long term net financial debt 960,387 719,428 240,959 (4) Short term net financial debt 1,418 132,702 (131,284) Total net financial debt 961,805 852,130 109,675 Lease liabilities 514,337 497,431 16,906 Total lease liabilities & net financial debt 1,476,142 1,349,561 126,581 NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT 2,626,366 2,451,239 175,127 Notes for reconciling the condensed balance sheet with the statutory balance sheet: (1) “Fixed financial 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; AMPLIFON AT A GLANCE (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. 33 --- ANNUAL REPORT 2024 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. (€ thousands) FY 2024 FY 2023 EBIT 256,814 259,212 Amortization, depreciation and write-downs 304,276 267,637 Provisions, other non-monetary items and gain/losses from disposals 18,103 35,871 Net financial expenses (57,220) (49,103) Taxes paid (68,926) (77,679) Changes in net working capital (3,198) (19,711) Cash flow provided by (used in) operating activities before repayment of lease liabilities 449,849 416,227 STATEMENTS Repayment of lease liabilities (128,959) (116,187) CONSOLIDATED FINANCIAL Cash flow provided by (used in) operating activities (A) 320,890 300,040 Cash flow provided by (used in) operating investing activities (B) (145,035) (139,858) Free Cash Flow (A) + (B) 175,855 160,182 Net cash flow provided by (used in) acquisitions (C) (192,531) (108,469) Cash flow provided by (used in) investing activities (B+C) (337,566) (248,327) Cash flow provided by (used in) in operating and investing activities (16,676) 51,713 Dividends (65,593) (65,361) Treasury shares (25,396) - Fees paid on medium/long-term financing (1,807) (1,413) Hedging instruments - (1,483) Other changes in non-current assets 5,290 (773) Capital increases, third parties’ contributions and dividends paid by subsidiaries to third parties (125) (215) REPORT Net cash flow from the period (104,307) (17,532) ON OPERATIONS 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 indebtedness (5,368) (4,605) Changes in net indebtedness (104,307) (17,532) Net financial indebtedness at the end of the period net of lease liabilities (961,805) (852,130) The impact of non-recurring transactions on free cash flow in the period is shown in the following table. (€ thousands) FY 2024 FY 2023 Free cash flow 175,855 160,182 Free cash flow generated by non-recurring transactions (see page 65 for details) (2,444) (3,731) AMPLIFON Free cash flow generated by recurring transactions 178,299 163,913 AT A GLANCE 34 --- ANNUAL REPORT 2024 INDICATORS 12/31/2024 12/31/2023 Net financial indebtedness net of lease liabilities (€ thousands) 961,805 852,130 Lease liabilities (€ thousands) 514,337 497,431 Total lease liabilities & net financial indebtedness (€ thousands) 1,476,142 1,349,561 Net equity (€ thousands) 1,150,224 1,101,678 Group Net Equity (€ thousands) 1,150,002 1,100,919 Net financial indebtedness/Net Equity 0.84 0.77 Net financial indebtedness/Group Net Equity 0.84 0.77 Net financial indebtedness/EBITDA 1.63 1.50 STATEMENTS EBITDA/Net financial expenses 17.77 18.03 Earnings per share (EPS) (€) 0.64384 0.69285 CONSOLIDATED FINANCIAL Diluted EPS (€) 0.64214 0.68809 EPS (€) adjusted for non-recurring transactions and amortization/depreciation related to purchase price allocations to tangible and intangible assets 0.86873 0.91271 Group Net Equity per share (€) 5.104 4.880 Dividend per share (DPS) (€) (*) 0.29 0.29 Pay out ratio (%) (*) 45.04% 41.86% Dividend yield (%) (*) 1.17% 0.93% Period-end price (€) 24.850 31.340 Highest price in period (€) 35.140 36.270 Lowest price in period (€) 22.890 24.490 REPORT Price/earnings ratio (P/E) 38.60 45.23 ON OPERATIONS Share price/net equity per share 4.869 6.422 Market capitalization (€ millions) 5,599.21 7,074.89 Number of shares outstanding 225,320,371 225,746,472 (*) Dividend to be proposed by the Board of Directors to the Shareholders’ Meeting convened on 23 April 2025. AMPLIFON AT A GLANCE 35 --- ANNUAL REPORT 2024 • Net financial indebtedness/net equity is the ratio of net financial indebtedness, • Period-end price is the closing price on the last stock exchange trading day of the excluding lease liabilities and short-term investments not cash equivalents, to total period. net equity. • Highest price and lowest price are the highest and lowest prices from 1 January to • Net financial indebtedness/Group net equity is the ratio of the net financial the end of the period. indebtedness, excluding lease liabilities and short-term investments not cash • Price/Earnings ratio (P/E) is the ratio of the share price determined during the last equivalents, to the Group’s net equity. stock exchange trading day of the period on earnings per share. • Net financial indebtedness/EBITDA is the ratio of net financial indebtedness, • Share price/Net equity per share is the ratio of the share closing price on the last excluding lease liabilities and short-term investments not cash equivalents, to stock exchange trading day of the period to net equity per share. EBITDA for the last four quarters (determined with reference to recurring operations • Market capitalization is the closing price on the last stock exchange trading day of only, based on pro forma figures in case of significant changes to the structure of the period multiplied by the number of outstanding shares. the Group). • The number of shares outstanding is the number of shares issued less treasury • EBITDA/net financial expenses ratiois the ratio of EBITDA for the last four quarters shares. (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 STATEMENTS and receivable of the same last four quarters. • Earnings per share (EPS) is the net profit for the period attributable to the CONSOLIDATED FINANCIAL parent’s ordinary shareholders divided by the weighted average number of shares outstanding during 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 and amortization/depreciation 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 REPORT number of outstanding shares in the period adjusted to reflect the amortization ON OPERATIONS 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. • Dividend per share (DPS) is the dividend, paid in the following year, decided by the shareholders’ meeting following the approval of the financial statements of the reported year. This ratio is not given in the interim reports because it is meaningful only with reference to the full year result. • Pay-out ratio (%) is the ratio of the dividend paid on EPS. • Dividend yield (%) is the ratio of the dividend per share, paid in the following year, st on the share price determined on December 31 of the reported year. AMPLIFONLANCE G A AT 36 --- ANNUAL R E P ORT 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 37 --- ANNUAL REPORT 2024 INCOME STATEMENT REVIEW CONSOLIDATED INCOME STATEMENT BY SEGMENT AND GEOGRAPHIC AREA (€ thousands) FY 2024 EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,531,284 507,269 370,346 342 2,409,241 Operating costs (1,120,997) (381,073) (273,307) (79,216) (1,854,593) Other income and costs 3,027 3,372 (390) 433 6,442 Gross operating profit (loss) (EBITDA) 413,314 129,568 96,649 (78,441) 561,090 STATEMENTS Depreciation, amortization and impairment of non-current assets (51,851) (18,850) (20,271) (29,431) (120,403) Right-of-use depreciation (84,833) (14,338) (30,041) (2,374) (131,586) CONSOLIDATED FINANCIAL Operating profit (loss) before the depreciation 276,630 96,380 46,337 (110,246) 309,101 and amortization of PPA related assets (EBITA) PPA related depreciation, amortization and impairment (35,777) (4,347) (12,098) (65) (52,287) Operating profit (loss) (EBIT) 240,853 92,033 34,239 (110,311) 256,814 Income, expenses, revaluation and adjustments of financial assets - - - - 225 Net financial expenses - - - - (57,062) Exchange differences, inflation accounting and Fair value valuation - - - - (3,197) Profit (loss) before tax - - - - 196,780 Tax - - - - (51,210) Net profit (loss) - - - - 145,570 REPORT Profit (loss) of minority interests - - - - 196 ON OPERATIONS Net profit (loss) attributable to the Group - - - - 145,374 (€ thousands) FY 2024 – Only recurring operations EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,531,284 507,269 370,346 342 2,409,241 Gross operating profit (loss) (EBITDA) 416,761 129,568 96,829 (75,481) 567,677 Operating profit (loss) before the depreciation 280,077 96,380 46,517 (107,286) 315,688 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 244,300 92,033 34,419 (105,793) 264,959 Profit (loss) before tax - - - - 204,925 AMPLIFON Net profit (loss) of Group and minority - - - - 151,943 AT A GLANCE Net profit (loss) attributable to the Group - - - - 151,747 38 --- ANNUAL REPORT 2024 (€ thousands) FY 2023 EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,485,278 429,577 344,738 491 2,260,084 Operating costs (1,072,587) (318,249) (255,571) (95,905) (1,742,312) Other income and costs 4,354 3,637 304 782 9,077 Gross operating profit (loss) (EBITDA) 417,045 114,965 89,471 (94,632) 526,849 STATEMENTS Depreciation, amortization and impairment of non-current assets (42,666) (15,785) (14,858) (26,062) (99,371) Right-of-use depreciation (78,464) (11,714) (26,837) (2,277) (119,292) CONSOLIDATED FINANCIAL Operating profit (loss) before the depreciation 295,915 87,466 47,776 (122,971) 308,186 and amortization of PPA related assets (EBITA) PPA related depreciation, amortization and impairment (33,197) (4,034) (11,701) (42) (48,974) Operating profit (loss) (EBIT) 262,718 83,432 36,075 (123,013) 259,212 Income, expenses, revaluation and adjustments of financial assets - - - - 555 Net financial expenses - - - - (48,511) Exchange differences, inflation accounting and Fair value valuation - - - - (1,509) Profit (loss) before tax - - - - 209,747 Tax - - - - (54,722) Net profit (loss) - - - - 155,025 REPORT Profit (loss) of minority interests - - - - (114) ON OPERATIONS Net profit (loss) attributable to the Group - - - - 155,139 (€ thousands) FY 2023 – Only recurring operations EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 1,485,278 429,577 344,738 491 2,260,084 Gross operating profit (loss) (EBITDA) 418,976 114,965 89,845 (82,199) 541,587 Operating profit (loss) before the depreciation 297,847 87,466 48,149 (110,538) 322,924 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 264,649 83,432 36,448 (110,579) 273,950 Profit (loss) before tax - - - - 224,485 AMPLIFON Net profit (loss) of Group and minority - - - - 165,676 AT A GLANCE Net profit (loss) attributable to the Group - - - - 165,790 39 --- ANNUAL REPORT 2024 (€ thousands) Fourth Quarter 2024 EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 429,571 140,852 93,880 105 664,408 Operating costs (323,610) (103,345) (70,118) (15,339) (512,412) Other income and costs (43) 1,059 (64) 330 1,282 Gross operating profit (loss) (EBITDA) 105,918 38,566 23,698 (14,904) 153,278 STATEMENTS Depreciation, amortization and impairment of non-current assets (15,495) (5,562) (5,984) (9,092) (36,133) Right-of-use depreciation (22,329) (3,809) (7,961) (600) (34,699) CONSOLIDATED FINANCIAL Operating profit (loss) before the depreciation 68,094 29,195 9,753 (24,596) 82,446 and amortization of PPA related assets (EBITA) PPA related depreciation, amortization and impairment (9,130) (1,146) (2,857) (39) (13,172) Operating profit (loss) (EBIT) 58,964 28,049 6,896 (24,635) 69,274 Income, expenses, revaluation and adjustments of financial assets - - - - (58) Net financial expenses - - - - (15,428) Exchange differences, inflation accounting and Fair value valuation - - - - (950) Profit (loss) before tax - - - - 52,838 Tax - - - - (11,584) Net profit (loss) - - - - 41,254 REPORT Profit (loss) of of minority interests - - - - 61 ON OPERATIONS Net profit (loss) attributable to the Group - - - - 41,193 (€ thousands) Fourth quarter 2024 – Only recurring operations EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 429,571 140,853 93,880 104 664,408 Gross operating profit (loss) (EBITDA) 107,887 38,566 23,751 (14,760) 155,444 Operating profit (loss) before the depreciation 70,063 29,195 9,806 (24,452) 84,612 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 60,933 28,049 6,949 (22,933) 72,998 Profit (loss) before tax - - - - 56,562 AMPLIFON AT A GLANCE Net profit (loss) of Group and minority - - - - 44,429 Net profit (loss) attributable to the Group - - - - 44,368 40 --- ANNUAL REPORT 2024 (€ thousands) Fourth Quarter 2023 EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 418,046 107,593 89,226 154 615,019 Operating costs (300,716) (78,546) (66,362) (18,667) (464,291) Other income and costs 881 1,969 316 369 3,535 Gross operating profit (loss) (EBITDA) 118,211 31,016 23,180 (18,144) 154,263 STATEMENTS Depreciation, amortization and impairment of non-current assets (11,897) (6,865) (4,528) (7,720) (31,010) Right-of-use depreciation (20,423) (3,039) (7,347) (574) (31,383) CONSOLIDATED FINANCIAL Operating profit (loss) before the depreciation 85,891 21,112 11,305 (26,438) 91,870 and amortization of PPA related assets (EBITA) PPA related depreciation, amortization and impairment (8,463) (900) (2,964) - (12,327) Operating profit (loss) (EBIT) 77,428 20,212 8,341 (26,438) 79,543 Income, expenses, revaluation and adjustments of financial assets - - - - 344 Net financial expenses - - - - (15,101) Exchange differences, inflation accounting and Fair value valuation - - - - 2,185 Profit (loss) before tax - - - - 66,971 Tax - - - - (15,387) Net profit (loss) - - - - 51,584 REPORT Profit (loss) of minority interests - - - - (117) ON OPERATIONS Net profit (loss) attributable to the Group - - - - 51,701 (€ thousands) Fourth quarter 2023 – Only recurring operations EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 418,046 107,593 89,226 154 615,019 Gross operating profit (loss) (EBITDA) 118,710 31,016 23,380 (17,326) 155,780 Operating profit (loss) before the depreciation 86,389 21,112 11,506 (25,620) 93,387 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 77,926 20,212 8,542 (25,620) 81,060 Profit (loss) before tax - - - - 68,488 AMPLIFON Net profit (loss) of Group and minority - - - - 52,859 AT A GLANCE Net profit (loss) attributable to the Group - - - - 52,976 41 --- ANNUAL REPORT 2024 REVENUES FROM SALES AND SERVICES (€ thousands) FY 2024 FY 2023 Change Change % Revenues from sales and services 2,409,241 2,260,084 149,157 6.6% (€ thousands) Fourth quarter 2024 Fourth quarter 2023 Change Change % Revenues from sales and services 664,408 615,019 49,389 8.0% STATEMENTS Consolidated revenues from sales and services amounted to €2,409,241 thousand in 2024, an increase of €149,157 thousand (+6.6%) compared to the prior year. CONSOLIDATED FINANCIAL The increase against 2023 is explained by 76,186 thousand (+3.4%) by organic growth and for €82,594 thousand (+3.6%) by acquisitions, while the foreign exchange effect was negative for €9,623 thousand (-0.4%). Revenues from the Argentinian subsidiary were impacted by the inflation accounting used in accordance with IAS 29 (Inflation accounting), which contributed positively to Group’s organic growth (+0.2%) and did not impact the foreign exchange effect. The increase in revenues was very significant in Americas and Asia Pacific, while Europe, albeit higher, continues to be impacted by what is still a soft market. In the fourth quarter of 2024, consolidated revenues from sales and services were €49,389 thousand (+8.0%) higher than in the prior year, coming in at €664,408 thousand. The increase is explained for €5,009 thousand (+8.0%) by organic growth and for €22,691 thousand (+3.7%) by acquisitions. The exchange effect was positive for €21,689 thousand (+3.5%). REPORT ON OPERATIONS Revenues from the Argentinian subsidiary were impacted by the inflation accounting used in accordance with IAS29, which had a negative impact on Group’s organic growth (-0.3%) and a positive impact (+0.5%) on the foreign exchange effect. AMPLIFON AT A GLANCE 42 --- ANNUAL REPORT 2024 The breakdown of revenues from sales and services by segment is shown below. (€ thousands) Change % in local FY 2024 % on total FY 2023 % on total Change Change % Exchange diff. currency EMEA 1,531,284 63.6% 1,485,278 65.7% 46,006 3.1% 1,247 2.9% Americas 507,269 21.1% 429,577 19.0% 77,692 18.1% (7,397) 19.8% Asia Pacific 370,346 15.3% 344,738 15.3% 25,608 7.4% (3,473) 8.4% Corporate 342 - 491 - (149) -30.3% - -30.3% Total 2,409,241 100.0% 2,260,084 100.0% 149,157 6.6% (9,623) 7.0% STATEMENTS EUROPE, MIDDLE-EAST AND AFRICA CONSOLIDATED FINANCIAL (€ thousands) Period 2024 2023 Change Change % I quarter 376,058 359,707 16,351 4.5% II quarter 381,409 375,775 5,634 1.5% I half 757,467 735,482 21,985 3.0% III quarter 344,246 331,750 12,496 3.8% IV quarter 429,571 418,046 11,525 2.8% II half 773,817 749,796 24,021 3.2% REPORT Total year 1,531,284 1,485,278 46,006 3.1% ON OPERATIONS Revenues from sales and services amounted to €1,531,284 thousand in 2024, an increase of €46,006 thousand (+3.1%) compared to the prior year, of which €13,621 thousand is attributable to organic growth (+0.9%). Acquisitions contributed €31,138 thousand (+2.1%) and the foreign exchange effect was positive for €1,247 thousand (+0.1%). The organic performance has been affected by the overall weakness of the European market, particularly the French market. Additionally, some temporary operational factors in Spain, now resolved, have influenced this result. The other countries in the region have reported good performance. The contribution made by acquisitions is attributable mainly to the bolt-on acquisitions made in France, Germany and Spain. In the fourth quarter of 2024, consolidated revenues from sales and services amounted to €429,571 thousand, €11,525 thousand (+2.8%) higher than in the comparison period. The difference is explained for €1,166 thousand (+0.3%) by organic growth and for €9,969 thousand (+2.4%) by acquisitions. The foreign exchange effect had a marginal impact of €390 thousand. AMPLIFON AT A GLANCE 43 --- ANNUAL REPORT 2024 AMERICAS (€ thousands) Period 2024 2023 Change Change % I quarter 110,821 100,865 9,956 9.9% II quarter 129,597 111,797 17,800 15.9% I half 240,418 212,662 27,756 13.1% III quarter 125,999 109,322 16,677 15.3% IV quarter 140,852 107,593 33,259 30.9% II half 266,851 216,915 49,937 23.0% STATEMENTS Total year 507,269 429,577 77,692 18.1% CONSOLIDATED FINANCIAL Consolidated revenues from sales and services amounted to €507,269 thousand in 2024, an increase of €77,692 thousand (+18.1%) compared to 2023. This outstanding result is explained for €45,430 thousand by excellent organic growth (+10.6%) fueled by Miracle-Ear and Amplifon Hearing Health Care. Acquisitions, including the first-time consolidation of the subsidiaries in Uruguay, contributed €39,659 thousand (+9.2%); the foreign exchange effect was negative for €7,397 thousand (-1.7%), due mainly to the devaluation of the Argentine and Chilean pesos. Revenues for the Argentinian subsidiary were affected by the inflation accounting used in accordance with IAS 29 (inflation accounting), which contributed positively to Region’s organic growth (+0.9%) and negatively to the foreign exchange effect (-0.1%). In the fourth quarter of 2024, consolidated revenues from sales and services amounted to €140,852 thousand, an increase of €33,259 thousand (+30.9%) against the comparison period attributable to organic growth for €1,864 thousand (+1.7%), acquisitions for €10,407 thousand (+9.7%), while the foreign exchange effect was positive for REPORT €20,988 thousand (+19.5%). ON OPERATIONS Revenues of the Argentinian subsidiary were affected by the inflation accounting used in accordance with IAS 29 (inflation accounting), which had a negative impact on Region’s organic growth (-1.8%) and a positive impact on the foreign exchange effect (+3.0%). AMPLIFON AT A GLANCE 44 --- ANNUAL REPORT 2024 ASIA PACIFIC (€ thousands) Period 2024 2023 Change Change % I quarter 86,164 79,595 6,569 8.3% II quarter 93,021 85,786 7,235 8.4% I half 179,185 165,381 13,804 8.3% III quarter 97,281 90,131 7,151 7.9% IV quarter 93,880 89,226 4,654 5.2% II half 191,161 179,357 11,805 6.6% STATEMENTS Total year 370,346 344,738 25,608 7.4% CONSOLIDATED FINANCIAL Consolidated revenues from sales and services amounted to €370,346 thousand in 2024, an increase of €25,608 thousand (+7.4%) compared to 2023 explained for €17,284 thousand (+5.0%), by excellent organic growth and for €11,797 thousand (+3.4%), by the acquisitions made in China. The foreign exchange effect was negative for €3,473 thousand (-1.0%). In the fourth quarter of 2024, consolidated revenues from sales and services amounted to € 93,880 thousand, an increase of €4,654 thousand (+5.2%) explained for €2,028 thousand (+2.3%) by organic growth and for €2,315 thousand (+2.6%) by the acquisitions made in China. The foreign exchange effect was positive for €311 thousand (+0.3%). REPORT ON OPERATIONS AMPLIFON AT A GLANCE 45 --- ANNUAL REPORT 2024 GROSS OPERATING PROFIT (EBITDA) (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Gross operating profit (loss) 567,677 (6,587) 561,090 541,587 (14,738) 526,849 (EBITDA) (€ thousands) Fourth quarter 2024 Fourth quarter 2023 Recurring Non-recurring Total Recurring Non-recurring Total STATEMENTS Gross operating profit (loss) 155,444 (2,166) 153,278 155,780 (1,517) 154,263 (EBITDA) CONSOLIDATED FINANCIAL Gross operating profit (EBITDA) amounted to €561,090 thousand in 2024, an increase of €34,241 thousand (+6.5%) with respect to the comparison period. The EBITDA margin came to 23.3%, in line with the comparison period. The result for the reporting period reflects non-recurring expenses of €6,587 thousand. In 2023 non-recurring expenses of €14,738 thousand were incurred. The breakdown of the non-recurring transactions is shown on page 32. Net of these items, EBITDA would have been €26,090 thousand (+4.8%) higher than in 2023 with the EBITDA margin down -0.4 p.p. compared to 2023 at 23.6%. In the fourth quarter of 2024, the gross operating profit (EBITDA) amounted to €153,278 thousand, a decrease of €985 thousand (-0.6%) with respect to the comparison period. The EBITDA margin came to 23.1%, 2.0 p.p. lower than in the comparison period. REPORT The quarter was impacted by non-recurring expenses of €2,166 thousand. In the fourth quarter of 2023 non-recurring expenses of €1,517 thousand were incurred. The ON OPERATIONS breakdown of the non-recurring transactions is shown on page 32. Net of this item, recurring EBITDA would have been €336 thousand lower (-0.2%) than in 2023 with the EBITDA margin (23.4%) -1.9 p.p. lower than in 2023. AMPLIFON AT A GLANCE 46 --- ANNUAL REPORT 2024 The breakdown of EBITDA by geographic region is shown below. (€ thousands) FY 2024 EBITDA Margin FY 2023 EBITDA Margin Change Change % EMEA 413,314 27.0% 417,045 28.1% (3,731) -0.9% Americas 129,568 25.5% 114,965 26.8% 14,603 12.7% Asia Pacific 96,649 26.1% 89,471 26.0% 7,178 8.0% (*) Corporate (78,441) -3.3% (94,632) -4.2% 16,191 17.1% Total 561,090 23.3% 526,849 23.3% 34,241 6.5% (€ thousands) STATEMENTS Fourth quarter 2024 EBITDA Margin Fourth quarter 2023 EBITDA Margin Change Change % EMEA 105,918 24.7% 118,211 28.3% (12,293) -10.4% CONSOLIDATED FINANCIAL Americas 38,566 27.4% 31,016 28.8% 7,550 24.3% Asia Pacific 23,698 25.2% 23,180 26.0% 518 2.2% (*) Corporate (14,904) -2.2% (18,144) -3.0% 3,240 17.9% Total 153,278 23.1% 154,263 25.1% (985) -0.6% (*) Centralized costs are shown as a percentage of the Group’s total sales. The table below shows the breakdown of the EBITDA by segment with reference to the recurring operations. (€ thousands) FY 2024 EBITDA Margin FY 2023 EBITDA Margin Change Change % REPORT EMEA 416,761 27.2% 418,976 28.2% (2,215) -0.5% ON OPERATIONS Americas 129,568 25.5% 114,965 26.8% 14,603 12.7% Asia Pacific 96,829 26.1% 89,845 26.1% 6,984 7.8% (*) Corporate (75,481) -3.1% (82,199) -3.6% 6,718 8.2% Total 567,677 23.6% 541,587 24.0% 26,090 4.8% (€ thousands) Fourth quarter 2024 EBITDA Margin Fourth quarter 2023 EBITDA Margin Change Change % EMEA 107,887 25.1% 118,709 28.4% (10,822) -9.1% Americas 38,566 27.4% 31,016 28.8% 7,550 24.3% Asia Pacific 23,751 25.3% 23,380 26.2% 371 1.6% (*) Corporate (14,760) -2.2% (17,325) -2.8% 2,565 14.8% AMPLIFON Total 155,444 23.4% 155,780 25.3% (336) -0.2% AT A GLANCE (*) Centralized costs are shown as a percentage of the Group’s total sales. 47 --- ANNUAL REPORT 2024 EUROPE, MIDDLE-EAST AND AFRICA AMERICAS Gross operating profit (EBITDA) amounted to €413,314 thousand in 2024, a decrease Gross operating profit (EBITDA) amounted to €129,568 thousand in 2024, an increase of €3,731 thousand (-0.9%) with respect to the comparison period. The EBITDA margin, of €14,603 thousand (+12.7%) with respect to the comparison period. The EBITDA which was impacted by the extreme weather event (so-called “DANA”) that struck margin, which was impacted by the dilutive effects of the accelerated growth in Spain in October 2024, came to 27.0%, 1.1 p.p. lower than in 2023. Miracle-Ear’s direct store network in the United States, came to 25.5 %, 1.3 p.p. lower than in 2023. The result for the reporting period reflects non-recurring expenses of €3,447 thousand attributable to the second phase of GAES integration. In 2023 non-recurring expenses In the fourth quarter of 2024, the gross operating profit (EBITDA) amounted to of €1,931 thousand were also incurred. €38,566 thousand, an increase of €7,550 thousand (+24.3%) with respect to the comparison period. The EBITDA margin came to 27.4%, a decrease of 1.4 p.p. against Net of this item, recurring EBITDA would have been €2,215 thousand lower (-0.5%) than the fourth quarter of 2023. in 2023 with the EBITDA margin down -1.0 p.p. against 2023 at 27.2%. STATEMENTS In the fourth quarter of 2024, gross operating profit (EBITDA) amounted to €105,918 CONSOLIDATED FINANCIAL thousand, a decrease of €12,293 thousand (-10.4%) with respect to the comparison period. The EBITDA margin was -3.6 p.p. lower than in the comparison period, coming in at 24.7%. The result for the reporting period reflects non-recurring expenses of €1,969 thousand attributable to the second phase of the GAES integration. In the fourth quarter of 2023 non-recurring expenses of €498 thousand were also incurred. Net of this item, recurring EBITDA would have been €10,822 thousand (-9.1%) lower than in the fourth quarter of 2023 with the EBITDA margin down -3.3 p.p. against fourth quarter 2023 at 25.1%. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 48 --- ANNUAL REPORT 2024 ASIA PACIFIC CORPORATE Gross operating profit (EBITDA) amounted to €96,649 thousand in 2024, an increase In 2024 the net cost of centralized corporate functions (corporate bodies, general of €7,178 thousand (+8.0%) with respect to the comparison period. The EBITDA management, business development, procurement, treasury, legal affairs, human margin came to 26.1%, 0.1 p.p. higher than in 2023. resources, IT systems, global marketing and internal audit) which do not qualify as operating segments under IFRS 8 (“Operating segments”) amounted to €78,441 The result reflects non-recurring expenses of €180 thousand linked to the Bay Audio thousand (3.3% of the revenues generated by the Group’s sales and services), integration. In 2023 non-recurring expenses of €374 thousand were also incurred. compared to €94,632 thousand (-4.2% of the revenues generated by the Group’s sales and services). Net of this item, EBITDA would have been €6,984 thousand higher (+7.8%) than in 2023, with the EBITDA margin in line with 2023 at 26.1%. The EBITDA for the reporting period reflects the non-recurring expenses of €2,960 thousand stemming from the costs incurred to define and implement the In the fourth quarter of 2024 gross operating profit (EBITDA) amounted to €23,698 amendments to the Articles of Association, including enhanced voting rights, as STATEMENTS thousand, an increase of €518 thousand (+2.2%) with respect to the comparison well as the notional cost recognized in the reporting period in accordance with IFRS period. The EBITDA margin was 0.8 p.p. lower than in the comparison period, coming 2 “Share Based Payments”. In 2023 non-recurring expenses amounted to €12,433 CONSOLIDATED FINANCIAL in at 25.2%. thousand. The result for the reporting period reflects non-recurring costs of €53 thousand Net of these items, EBITDA improved by €6,718 thousand (-8.2%) against 2023, with linked to the Bay Audio integration. In the fourth quarter of 2023 non-recurring the margin up 0.5 p.p. expenses of €200 thousand were also incurred. In the fourth quarter of 2024 EBITDA was negative for €14,904 thousand (-2.2% of the Net of this item, the EBITDA of the 2024 fourth quarter would have been €371 revenues generated by the Group’s sales and service), compared to €18,144 thousand thousand higher (+1.6%) with the EBITDA margin down 0.9 p.p. against fourth quarter in the fourth quarter of 2023 ( -2.8% of the revenues generated by the Group’s sales 2023 at 25.3%. and services). The result for the fourth quarter of 2024 reflects the non-recurring expenses of €144 thousand stemming from the notional cost of the shares assigned as described REPORT above. In 2023 non-recurring expenses amounted to €819 thousand. ON OPERATIONS Net of these items, EBITDA improved by €2,565 thousand (-14.8%) against the fourth quarter of 2023 with margin up 0.6 p.p. AMPLIFON AT A GLANCE 49 --- ANNUAL REPORT 2024 OPERATING PROFIT (EBIT) (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Operating profit (loss) (EBIT) 264,959 (8,145) 256,814 273,950 (14,738) 259,212 (€ thousands) Fourth quarter 2024 Fourth quarter 2023 Recurring Non-recurring Total Recurring Non-recurring Total Operating profit (loss) (EBIT) 72,998 (3,724) 69,274 81,060 (1,517) 79,543 STATEMENTS CONSOLIDATED FINANCIAL Operating profit (EBIT) amounted to €256,814 thousand in 2024, a decrease of €2,398 thousand (-0.9%) with respect to the comparison period. The EBIT margin came to 10.7%, a decrease of 0.8 p.p. against the comparison period. The result for the reporting period reflects €8,145 thousand in non-recurring expenses which, in addition to those already described in the section on EBITDA, include the writedown of the goodwill recognized for Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH, operating in a business not directly related to hearing aids. For a more complete description of these non-recurring expenses, refer to p. 14. FY 2023 was also impacted by non-recurring expenses of €14,738 thousand. Net of these items, recurring EBIT would have been €8,991 thousand lower (-3.3%) than in 2023, with the EBIT margin down 1.1 p.p. against 2023 at 11.0%. With respect to the gross operating profit (EBITDA), EBIT was also impacted by an increase in depreciation and amortization as a result of the strong growth in investments made over the last few years in network stores, digitalization, IT systems, and acquisitions resulting in the temporary allocation of the price paid to intangible assets, as well REPORT as higher amortization for right-of-use assets. ON OPERATIONS In the fourth quarter of 2024 operating profit (EBIT) amounted to €69,274 thousand, a decrease of €10,269 thousand (12.9%) against the comparison period. The EBIT margin was 2.2 p.p. lower than in 2023, coming in at 10.4%. The 2024 fourth quarter result was impacted for €3,724 thousand by non-recurring expenses. In the fourth quarter of 2023 non-recurring expenses of €1,517 thousand were also recorded. Net of this item, recurring EBIT would been €8,062 thousand (-9.9%) lower than in the fourth quarter of 2023 with the margin down -2.2 p.p. at 11.0%. AMPLIFON AT A GLANCE 50 --- ANNUAL REPORT 2024 The breakdown of EBIT by sector/geographic area is shown below. (€ thousands) FY 2024 EBIT Margin FY 2023 EBIT Margin Change Change % EMEA 240,853 15.7% 262,718 17.7% (21,865) -8.3% Americas 92,033 18.1% 83,432 19.4% 8,601 10.3% Asia Pacific 34,239 9.2% 36,075 10.5% (1,836) -5.1% (*) Corporate (110,311) -4.6% (123,013) -5.4% 12,702 10.3% Total 256,814 10.7% 259,212 11.5% (2,398) -0.9% (€ thousands) STATEMENTS Fourth Fourth quarter 2024 EBIT Margin EBIT Margin Change Change % quarter 2023 CONSOLIDATED FINANCIAL EMEA 58,964 13.7% 77,428 18.5% (18,464) -23.8% Americas 28,049 19.9% 20,212 18.8% 7,837 38.8% Asia Pacific 6,896 7.3% 8,341 9.3% (1,445) -17.3% (*) Corporate (24,635) -3.7% (26,438) -4.3% 1,803 6.8% Total 69,274 10.4% 79,543 12.9% (10,269) -12.9% (*) Centralized costs are shown as a percentage of the Group’s total sales. The following table shows the breakdown of EBIT by segment with reference to the recurring transactions: (€ thousands) FY 2024 EBIT Margin FY 2023 EBIT Margin Change Change % REPORT EMEA 244,300 16.0% 264,649 17.8% (20,349) -7.7% ON OPERATIONS Americas 92,033 18.1% 83,432 19.4% 8,601 10.3% Asia Pacific 34,419 9.3% 36,449 10.6% (2,030) -5.6% (*) Corporate (105,793) -4.4% (110,580) -4.9% 4,787 4.3% Total 264,959 11.0% 273,950 12.1% (8,991) -3.3% (€ thousands) Fourth quarter 2024 EBIT Margin Fourth quarter 2023 EBIT Margin Change Change % EMEA 60,933 14.2% 77,926 18.6% (16,993) -21.8% Americas 28,049 19.9% 20,212 18.8% 7,837 38.8% Asia Pacific 6,949 7.4% 8,541 9.6% (1,592) -18.6% (*) Corporate (22,933) -3.5% (25,619) -4.2% 2,686 10.5% AMPLIFON Total 72,998 11.0% 81,060 13.2% (8,062) -9.9% AT A GLANCE (*) Centralized costs are shown as a percentage of the Group’s total sales. 51 --- ANNUAL REPORT 2024 EUROPE, MIDDLE-EAST AND AFRICA AMERICAS Operating profit (EBIT) amounted to €240,853 thousand in 2023, a decrease of Operating profit (EBIT) amounted to €92,033 thousand in 2023, an increase of €8,601 €21,865 thousand (-8.3%) with respect to the comparison period. The EBIT margin thousand (+10.3%) with respect to the comparison period. The EBIT margin came to came to 15.7% (-2.0 p.p. compared to 2023). 18.1%, 1.3 p.p. lower than in 2023. EBIT was impacted for €3,447 thousand by non-recurring expenses. In FY 2023 non- In the fourth quarter of 2024 perating profit (EBIT) amounted to €28,049 thousand, recurring expenses amounted to €1,931 thousand. an increase of €7,837 thousand (+38.8%) with respect to the comparison period. The EBIT margin was 1.1 p.p. higher, coming in at 19.9%. Net of these items, recurring EBIT would have been €20,349 thousand lower (-7.7%) than in 2023, with the EBIT margin down -1.8 p.p. against 2023 at 16.0%. In the fourth quarter of 2024 operating profit (EBIT) amounted to €58,964 thousand, STATEMENTS a decrease of €18,464 thousand (-23.8%) against the comparison period with the EBIT margin down 4.8 p.p. against the comparison period at 13.7%. CONSOLIDATED FINANCIAL The result for the fourth quarter of 2024 was impacted for €1,969 thousand by non- recurring expenses. In the fourth quarter of 2023 non-recurring expenses amounted to €498 thousand. Net of this item, EBIT would have been €16,993 thousand lower (-21.8%) than in the fourth quarter of 2023, with the EBIT margin down -4.4 p.p. against fourth quarter 2023 at 14.2%. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 52 --- ANNUAL REPORT 2024 ASIA PACIFIC CORPORATE Operating profit (EBIT) amounted to €34,239 thousand in 2023, a decrease of €1,836 The net Corporate costs at the EBIT level amounted to €110,311 thousand in 2024 thousand (-5.1%) with respect to the comparison period. The EBIT margin came to (4.6% of the revenues generated by the Group’s sales and services), compared to 9.2%, 1.3 p.p. lower than in 2023. €123,013 thousand in 2023 (5.4% of the revenues generated by the Group’s sales and services). The result for the reporting period was impacted for €180 thousand by non-recurring expenses. In FY 2023 non-recurring expenses amounted to €374 thousand. EBIT was impacted for €4,518 thousand by non-recurring expenses which, in addition to those already described in the section on EBITDA, include the writedown of the Net of this item, EBIT would have been €2,030 thousand lower (-5.6%) with the EBIT goodwill recognized for Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH, margin -1.3 p.p. lower than in 2023, coming in at 9.3%. operating in a business not directly related to hearing aids. In FY 2023 non-recurring expenses amounted to €12,433 thousand. In the fourth quarter of 2024 operating profit (EBIT) amounted to €6,896 thousand, STATEMENTS a decrease of €1,445 thousand (-17.3%) against the comparison period with the EBIT Net of this item, corporate EBIT would have been €4,787 thousand (+4.3%) higher margin down 2.0 p.p. against the comparison period at 7.3%. compared to 2023 with the margin at 4.4%, an improvement of 0.5 p.p. against 2023. CONSOLIDATED FINANCIAL The result for the fourth quarter of 2024 was impacted for €53 thousand by non- In the fourth quarter of 2024 the net Corporate costs at the EBIT level amounted to recurring expenses. In the fourth quarter of 2023 non-recurring expenses amounted €24,635 thousand (3.7% of the revenues generated by the Group’s sales and services), to €200 thousand. compared to €26,438 in 2023 (4.3% of the revenues generated by the Group’s sales and services). Net of this item, EBIT would have been €1,592 thousand lower (-18.6%) than in the fourth quarter of 2023, with the EBIT margin down -2.2 p.p. against the fourth quarter The fourth quarter of 2024 was impacted for €1,702 thousand by non-recurring of 2023 at 7.4%. expenses. Non-recurring expenses amounted to €819 thousand in the fourth quarter of 2023. Net of these items, corporate EBIT would have improved by €2,686 thousand (+10.5%) with the margin lower by 0.7 p.p. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 53 --- ANNUAL REPORT 2024 PROFIT BEFORE TAX (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Profit (loss) before tax 204,925 (8,145) 196,780 224,485 (14,738) 209,747 (€ thousands) Fourth quarter 2024 Fourth quarter 2023 Recurring Non-recurring Total Recurring Non-recurring Total STATEMENTS Profit (loss) before tax 56,562 (3,724) 52,838 68,488 (1,517) 66,971 CONSOLIDATED FINANCIAL Profit before tax amounted to €196,780 thousand in 2024, a decrease of €12,967 thousand (-6.2%) against the comparison period, with a gross profit margin of 8.2% (-1.1 p.p. with respect to the comparison period). The 2024 profit before tax was also impacted for €8,145 thousand by non-recurring expenses. In 2023 non-recurring expenses amounted to €14,738 thousand. Net of these items, the profit before tax would have been €19,560 thousand (-8.7%) lower. In addition to the change in EBIT described above, the profit before tax was also impacted by an increase in financial expenses of €10,569 thousand. The increase in market rates with respect to the 2023 average and the refinancing maturing portions of loans (which were subscribed in 2020-2021 with more favorable interest rates) at current rates caused costs to rise by €8,054 thousand, net the higher interest received on liquidity investments. Interest recognized based on lease accounting was €4,330 thousand higher, including as a result of the increased number of network stores. An increase of €449 thousand in the interest payable on factoring and other working capital management transactions was also recorded. The impact of inflation accounting on the Argentinian subsidiary and currency management was slightly higher than in the REPORT prior year, even though was more than offset by the financial income stemming from the recognition of acquisitions with deferred payments using tax credits arising from ON OPERATIONS concessions contained in and regulated by Articles 119 and 121 of Law Decree No. 34/2020 (Decreto Rilancio). In the fourth quarter of 2024 profit before tax amounted to €52,838 thousand, a decrease of €14,133 thousand (-21.1%) against the comparison period, with a gross profit margin of 8.0% (-2.9 p.p. against 2023). The result recorded in the fourth quarter of 2024 was impacted for €3,724 thousand by non-recurring expenses. In the fourth quarter of 2023 non-recurring expenses amounted to €1,517 thousand. Net of this item, profit before tax would have been €11,926 thousand (-17.4%) lower than in the fourth quarter of 2023. AMPLIFON AT A GLANCE 54 --- ANNUAL REPORT 2024 GROUP NET RESULT (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Group net result 151,747 (6,373) 145,374 165,790 (10,651) 155,139 (€ thousands) Fourth quarter 2024 Fourth quarter 2023 Recurring Non-recurring Total Recurring Non-recurring Total Group net result 44,368 (3,175) 41,193 52,976 (1,275) 51,701 STATEMENTS CONSOLIDATED FINANCIAL The Group’s net profit came to €145,374 thousand in 2024, a decrease of €9,765 thousand (-6.3%) against the comparison period, with a profit margin of 6.0% (-0.9 p.p. against the comparison period). The result for the reporting period was impacted for €6,373 thousand by the same non-recurring expenses described above, net of the tax effect. In 2023 non-recurring expenses amounted to €10,651 thousand. On a recurring basis, there would have been a decrease of €14,043 thousand (-8.5%) with respect to 2023, with the profit margin down 1.0 p.p. The tax rate was 26.0% in the reporting period, compared to 26.1% in 2023. In the fourth quarter of 2024 the Group’s net profit came to €41,193 thousand (6.2% of revenues from sales and services), a decrease of €10,508 thousand (-20.3%) against the comparison period with the profit margin down -2.2 p.p. REPORT ON OPERATIONS The result recorded in the quarter reflects €3,175 thousand in non-recurring expenses, net of the tax effect. In 2023 the non-recurring expenses amounted to €1,275 thousand. Net of the non-recurring expenses, net profit would have been €8,608 thousand lower, with the profit margin down -1.9 p.p. AMPLIFON AT A GLANCE 55 --- ANNUAL REPORT 2024 BALANCE SHEET REVIEW (*) CONSOLIDATED BALANCE SHEET BY GEOGRAPHICAL AREA (€ thousands) 12/31/2024 EMEA Americas Asia Pacific Eliminations Total Goodwill 1,031,163 313,631 600,701 - 1,945,495 Non-competition agreements, trademarks, customer lists and lease rights 176,203 31,101 52,143 - 259,447 Software, licenses, other intangible fixed assets, fixed assets in progress and advances 127,637 32,008 9,268 - 168,913 Tangible assets 168,319 41,075 44,530 - 253,924 Right-of-use assets 381,119 49,770 61,175 - 492,064 Financial fixed assets 17,326 6,890 256 - 24,472 Other non-current financial assets 36,942 2,640 1,850 - 41,432 STATEMENTS Non-current assets 1,938,709 477,115 769,923 - 3,185,747 Inventories 71,792 11,777 9,611 - 93,180 CONSOLIDATED FINANCIAL Trade receivables 233,432 66,043 15,120 (87,841) 226,754 Other receivables 93,370 16,633 5,489 (188) 115,304 Current assets (A) 398,594 94,453 30,220 (88,029) 435,238 Operating assets 2,337,303 571,568 800,143 (88,029) 3,620,985 Trade payables (343,885) (70,137) (50,919) 87,841 (377,100) Other payables (287,489) (45,154) (41,817) 188 (374,272) Provisions for risks and charges (current portion) (1,787) (616) - - (2,403) Current liabilities (B) (633,161) (115,907) (92,736) 88,029 (753,775) Net working capital (A) - (B) (234,567) (21,454) (62,516) - (318,537) Derivative instruments 3,680 - - - 3,680 Deferred tax assets 56,435 5,762 15,135 - 77,332 Deferred tax liabilities (66,211) (23,234) (10,048) - (99,493) REPORT Provisions for risks and charges (non-current portion) (18,896) (1,158) (871) - (20,925) ON OPERATIONS Liabilities for employees’ benefits (non-current portion) (14,753) - (704) - (15,457) Loan fees 3,452 - - - 3,452 Other non-current liabilities (171,840) (14,740) (2,853) - (189,433) NET INVESTED CAPITAL 1,496,008 422,291 708,067 - 2,626,366 Group net equity 1,150,002 Minority interests 222 Total net equity 1,150,224 Net medium and long-term financial indebtedness 960,387 Net short-term financial indebtedness 1,418 Total net financial indebtedness 961,805 Lease liabilities 398,120 53,845 62,372 - 514,337 Total lease liabilities & net financial indebtedness 1,476,142 NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL INDEBTEDNESS 2,626,366 AMPLIFON (*) The balance sheet items are analyzed by geographical area without separation of the Corporate structures that are natively included in EMEA. AT A GLANCE 56 --- ANNUAL REPORT 2024 (€ thousands) 12/31/2023 EMEA Americas Asia Pacific Eliminations Total Goodwill 955,383 237,178 607,013 - 1,799,574 Non-competition agreements, trademarks, customer lists and lease rights 176,887 21,126 57,670 - 255,683 Software, licenses, other intangible fixed assets, fixed assets in progress and advances 123,344 29,520 8,042 - 160,906 Tangible assets 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 STATEMENTS Other receivables 85,597 14,464 7,176 (195) 107,042 CONSOLIDATED FINANCIAL 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 portion) (586) (682) - - (1,268) 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-current portion) (17,668) (896) (815) - (19,379) REPORT Liabilities for employees’ benefits (non-current portion) (12,119) (143) (701) - (12,963) ON OPERATIONS 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 indebtedness 719,428 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 indebtedness 1,349,561 NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL INDEBTEDNESS 2,451,239 AMPLIFON AT A GLANCE 57 --- ANNUAL REPORT 2024 INVESTMENTS In 2024 Amplifon Group continued with its growth strategy and invested more than €145 million. In 2024 the Group continued and accelerated its program to invest in innovation and digitalization. The constant focus on the customer and the desire to increase control of operations fueled the significant work done on both technological infrastructures through the Symphony project, centered around providing customers with a highly personalized experience, as well as on the optimization of in-store systems and tools to support the Amplifon Product Experience, which has redefined Amplifon’s entire customer journey including by renewing stores. Work was also done on the operating and back-office processes, as well as on systems designed to streamline the Group’s STATEMENTS procurement and centralize purchasing. The investments made totaled more than €39 million. CONSOLIDATED FINANCIAL In addition, the Group continued and accelerated development of the distribution network by opening new stores, as well as renewing others, and relocating existing points of sale for a total investment of almost €66 million. NON-CURRENT ASSETS Non-current assets amounted to €3,185,747 thousand on 31 December 2024, an increase of €209,360 thousand with respect to the €2,976,387 thousand recorded on 31 December 2023. REPORT ON OPERATIONS The changes in the period are explained (i) for €223,871 thousand by acquisitions; (ii) for €146,555 thousand by capital expenditure; (iii) for €144,616 thousand by the recognition of right-of-use assets acquired in the period; (iv) for €304,276 thousand by depreciation, amortization and impairment which includes the amortization of the right-of-use assets and the depreciation and amortization of PPA related assets; (v) for a negative amount of €1,406 thousand by foreign exchange differences and the early terminations of rent contracts due to store relocations, partially offset 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 (Decreto Rilancio). AMPLIFON AT A GLANCE 58 --- ANNUAL REPORT 2024 The following table shows the breakdown of non-current assets by geographical region: (€ thousands) 12/31/2024 12/31/2023 Change Goodwill 1,031,163 955,383 75,780 Non-competition agreements, trademarks, customer lists and lease rights 176,203 176,887 (684) Software, licenses, other intangible fixed assets, fixed assets in progress and advances 127,637 123,344 4,293 Tangible assets 168,319 148,081 20,238 (*) EMEA Right-of-use assets 381,119 373,293 7,826 Financial fixed assets 17,326 3,629 13,697 STATEMENTS Other non-current financial assets 36,942 39,701 (2,759) Non-current assets 1,938,709 1,820,318 118,391 CONSOLIDATED FINANCIAL Goodwill 313,631 237,178 76,453 Non-competition agreements, trademarks, customer lists and lease rights 31,101 21,126 9,975 Software, licenses, other intangible fixed assets, fixed assets in progress and advances 32,008 29,520 2,488 Tangible assets 41,075 29,929 11,146 Americas Right-of-use assets 49,770 44,949 4,821 Financial fixed assets 6,890 12,841 (5,951) Other non-current financial assets 2,640 2,440 200 Non-current assets 477,115 377,983 99,132 Goodwill 600,701 607,013 (6,312) REPORT Non-competition agreements, trademarks, customer lists and lease rights 52,143 57,670 (5,527) ON OPERATIONS Software, licenses, other intangible fixed assets, fixed assets in progress and advances 9,268 8,042 1,226 Tangible assets 44,530 43,506 1,024 Asia Pacific Right-of-use assets 61,175 59,911 1,264 Financial fixed assets 256 234 22 Other non-current financial assets 1,850 1,710 140 Non-current assets 769,923 778,086 (8,163) Total 3,185,747 2,976,387 209,360 (*) The balance sheet items are analyzed by geographical area without separation of the Corporate structures that are natively included in EMEA. AMPLIFON AT A GLANCE 59 --- ANNUAL REPORT 2024 renewal of existing leases and network expansion; EUROPE, MIDDLE-EAST AND AFRICA • for €37,535 thousand, by amortization and depreciation, including amortization of the right-of-use assets and the depreciation and amortization of PPA related assets; Non-current assets amounted to €1,938,709 thousand on 31 December 2024, an • for €9,270 thousand, other increases, relating mainly to revaluations stemming from increase of €118,391 thousand against the €1,820,318 thousand recorded on 31 inflation accounting at the Argentine subsidiary which mainly impacted goodwill; December 2023. • for €8,428 thousand, to positive exchange difference which mainly impacted goodwill. This increase is explained: • for €125,853 thousand, by acquisitions made in the reporting period; ASIA PACIFIC • for €87,721 thousand, by right-of-use assets acquired in the year as a result of the renewal of existing leases and network expansion; Non-current assets amounted to €769,923 thousand on 31 December 2024, a decrease • for €53,491 thousand, by investments in plant, property and equipment, relating of €8,163 thousand against the €778,086 thousand recorded on 31 December 2023. primarily to the opening of new stores and the renewal of existing ones, as well STATEMENTS as the purchase of hardware needed to implement Group Information Technology This change is explained: projects detailed below; CONSOLIDATED FINANCIAL • for €47,360 thousand, by investments in intangible assets, relating to new front • for €38,711 thousand, by right-of-use assets acquired during the year as a result of office solutions and the expansion of the sales network, as well as continuous the renewal of existing leases and network expansion; implementation and standardization of the Group ERP cloud system; • for €22,105 thousand, by acquisitions made in the reporting period; • for €204,331 thousand, by amortization and depreciation, including amortization of • for €15,253 thousand, by investments in property, plant and equipment, relating the right-of-use assets and the depreciation and amortization of PPA related assets; mainly to the opening of stores and the renewal of existing ones, as well as the • for €8,297 thousand, by other increases, relating primarily to the recognition of purchase of the hardware needed to implement IT projects; acquisitions with deferred payments using tax credits arising from concessions • for €5,579 thousand, by investments in intangible assets relating mainly to the contained in and regulated by Articles 119 and 121 of Law Decree No. 34/2020 development of IT systems; (Decreto Rilancio) and the early terminations of rent contracts due to store • for €62,410 thousand, by amortization and depreciation, including the amortization relocations. of the right of-use assets and the depreciation and amortization of PPA related assets; • for €27,401 thousand, by other decreases relating to the early terminations of rent REPORT AMERICAS contracts due to store relocations and the foreign exchange differences which ON OPERATIONS mainly affected goodwill. Non-current assets amounted to €477,115 thousand on 31 December 2024, an increase of €99,132 thousand against the €377,983 thousand recorded on 31 December 2023. This change is explained: • for €75,913 thousand, by acquisitions made in the reporting period; • for €16,226 thousand, by investments in plant, property and equipment, relating primarily to the opening of new stores and the renewal of existing ones; • for €8,646 thousand, by investments in intangible assets relating mainly to the development of front office IT systems at the US subsidiaries; • for €18,184 thousand, by right-of-use assets acquired in the year as a result of the AMPLIFONLANCE G A AT 60 --- ANNUAL REPORT 2024 NET INVESTED CAPITAL AMERICAS Net invested capital came to €2,626,366 thousand on 31 December 2024, an increase Net invested capital amounted to €422,291 thousand on 31 December 2024, an of €175,127 thousand against the €2,451,239 thousand recorded on 31 December increase of €105,750 thousand against the €316,541 thousand recorded on 31 2023. December 2023. The increase is related to the above-mentioned change in net invested capital In addition to the change in non-current assets referred to above, there was a slight partially offset by a decrease in working capital, a decrease both in derivatives and in increase in working capital and a decrease in deferred tax liabilities. deferred tax assets, and an increase in other long-term debts. Factoring without recourse in the period involved trade receivables with a face value The breakdown of net invested capital by geographical region is shown below. of €5,239 thousand (€1,543 thousand in the same period of the prior year). (€ thousands) STATEMENTS ASIA PACIFIC 12/31/2024 12/31/2023 Change CONSOLIDATED FINANCIAL Net invested capital came to €708,067 thousand on 31 December 2024, a decrease (*) EMEA 1,496,008 1,412,321 83,687 of €14,310 thousand against the €722,377 thousand recorded on 31 December 2023. Americas 422,291 316,541 105,750 In addition to the decrease in non-current assets described above, there was also a Asia Pacific 708,067 722,377 (14,310) decrease in working capital, partially offset by a decrease in deferred tax liabilities. Total 2,626,366 2,451,239 175,127 Factoring without recourse in the period involved trade receivables with a face value (*) The balance sheet items are analyzed by geographical area without separation of the Corporate of €5,766 thousand (€5,679 thousand in the same period of the prior year). structures that are natively included in EMEA. EUROPE, MIDDLE EAST AND AFRICA REPORT ON OPERATIONS Net invested capital came to €1,496,008 thousand on 31 December 2024, an increase of €83,687 thousand against the €1,412,321 thousand recorded on 31 December 2023. The change in non-current assets was partially offset by a decrease in working capital, a decrease in derivatives and an increase in deferred tax assets and other long-term debt. Factoring without recourse in the period involved trade receivables with a face value of €228,341 thousand (€232,575 thousand in the same period of the prior year) and VAT credits with a face value of €19,771 thousand (€23,755 thousand in the prior year). AMPLIFON AT A GLANCE 61 --- ANNUAL REPORT 2024 €108,469 thousand in 2023), along with the dividends paid (€65,593 thousand versus NET FINANCIAL POSITION €65,361 thousand in the comparison period) and the purchase of treasury shares (€25,396 thousand, while no treasury shares were purchased in 2023) and the positive flows generated by financial assets (€5,290 thousand) bring cash flow for the (€ thousands) reporting period to a negative €104,307 thousand versus negative €17,532 thousand in 2023. 12/31/2024 12/31/2023 Change Net medium and long-term financial The financial structure was strengthened by a few important transactions in 2024: 960,386 719,428 240,958 indebtedness Net short-term financial indebtedness 290,253 326,733 (36,480) • In June 2024 Amplifon S.p.A. subscribed the last €50 million tranche of the €350 Cash and cash equivalents (288,834) (194,031) (94,803) million loan granted by the European Investment Bank (EIB) to support innovation and digitalization. €300 million of this loan had already been subscribed in 2023. Net financial indebtedness (A) 961,805 852,130 109,675 • In September 2024 Amplifon S.p.A. signed a €50 million ESG-linked facility, backed Lease liabilities – current portion 126,740 113,523 13,217 by SACE’s Garanzia Futuro, which will be used to finance the international rollout of STATEMENTS Lease liabilities – non-current portion 387,597 383,908 3,689 Amplifon’s new store format which aims to provide consumers with an immersive and highly personalized experience, thanks to the visual and digital elements Lease liabilities (B) 514,337 497,431 16,906 CONSOLIDATED FINANCIAL integrated in an innovative and sustainable design. Total lease liabilities & net financial 1,476,142 1,349,561 126,581 • In October 2024 Amplifon S.p.A. signed a 5-year €200 million ESG linked credit facility indebtedness (A+B) (C) with UniCredit and Cassa Depositi e Prestiti (CDP) comprising 2 tranches: €100 million Group net equity (D) 1,150,002 1,100,919 49,083 granted by UniCredit, to support the Group’s development initiatives and €100 million Minority interests 222 759 (537) granted by CDP which co-financed Amplifon’s investments in innovation in Italy that Net Equity (E) 1,150,224 1,101,678 48,546 are already supported by the above-mentioned loan with EIB. Financial indebtedness • In December 2024, Amplifon S.p.A. signed another €75 million ESG-linked credit 0.84 0.77 /Group net equity (A/D) facility with Mediobanca - Banca di Credito Finanziario to support the Group’s Financial indebtedness development initiatives. 0.84 0.77 /Net equity (A/E) • During the year, as agreed with the lenders and based on the original loan (*) Financial indebtedness/EBITDA 1.63 1.50 agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit were updated to reflect the KPIs and targets included in the new sustainability plan. (*) Net financial indebtedness/EBITDA is the ratio of net financial indebtedness, excluding lease liabilities REPORT and short-term investments not cash equivalents, to EBITDA for the last four quarters (determined with ON OPERATIONS On 31 December 2024, the Group had cash and cash equivalents of €288,834 reference to recurring operations only, based on pro forma figures in case of significant changes to the thousand with respect to a financial debt of €1,250 million, net of lease liabilities. structure of the Group). Net financial debt, excluding lease liabilities, amounted to €961,805 thousand on 31 Long-term debt amounts to €960,386 thousand, €5,885 thousand of which refers December 2024, an increase of €109,675 thousand against 31 December 2023. to the long- term portion of deferred payments for acquisitions. The increase in the period of €240,958 thousand is attributable mainly to the new facilities stipulated Net financial debt, excluding lease liabilities, amounted to €961,805 thousand on 31 during the year which were used to refinance short-term debt, net the reclassification December 2024, compared to €852,130 thousand on 31 December 2023, with free of portions of long-term bank debt expiring in the next 12 months, from long-to cash flow positive for €175,855 thousand (compared to €160,182 thousand in the short-term. prior year). The significant net cash-out for acquisitions (€192,531 thousand versus AMPLIFON AT A GLANCE 62 --- ANNUAL R E P ORT 2024 Short-term debt amounts to €290,253 thousand, a decrease of €36,480 thousand. Together the above provide ample headroom and ensure the flexibility needed to The available liquidity (€288,834 thousand), is close to the overall value of short- take advantage of any opportunities to consolidate and develop business that might term debt which comprises primarily the short-term portion of long-term bank debt materialize. (€131,949 thousand), the hot money accounts used to support treasury activities and other short-term credit lines (€139,765 thousand), the interest payable on the The other uncommitted lines of credit amount to €343 million, of which €222 million Eurobond (€3,474 thousand) and on other bank loans (€1,929 thousand) and, lastly, unutilized. the best estimate of the deferred payments for acquisitions (€11,510 thousand). Interest payable on financial indebtedness amounted to €38,618 thousand on 31 The chart below shows the debt maturities compared to: December 2024, compared to €29,814 thousand on 31 December 2023. • the €288 million in cash and cash equivalents; Interest payable on leases recognized in accordance with IFRS 16 amounted to • the unutilized portions of irrevocable credit lines which amount to €480 million; €19,138 thousand versus €14,808 thousand on 31 December 2023. • the unutilized portion of the loan received from EIB to support investments in innovation and digitalization which amounts to €225 million. Interest receivable on bank deposits amounted to €3,878 thousand on 31 December STATEMENTS 2024 versus €2,077 thousand on 31 December 2023. CONSOLIDATED FINANCIAL The reasons for the changes in net indebtedness are described in the next section on the statement of cash flows. Debt Maturity & Cash Equivalents at 12.31.2024 Eurobond Bank Loans European Investment Bank Loan REPORT Bilateral revolving committed medium-term lines undrawn 1,250.6 70.0 Hot money, bank overdraft and accrued interests 128.1 ON OPERATIONS 64.0 16.7 Debt for acquisitions and others 16.7 Gross Debt 0.2 350.0 Liquidity 63.7 16.7 2.5 228.7 5.0 36.4 2.9 3.2 87.6 1.1 3.1 2.8 131.2 3.6 16.5 on demand 03/31/25 06/30/25 09/30/25 12/31/25 2026 2027 2028 2029 2030 Gross Debt -288.8 -480.0 -225.0 AMPLIFON AT A GLANCE 63 --- ANNUAL REPORT 2024 CASH FLOW STATEMENT The reclassified statement of cash flow 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. (€ thousands) FY 2024 FY 2023 OPERATING ACTIVITIES: Net profit (loss) attributable to the Group 145,374 155,139 Minority interests 196 (114) Amortization, depreciation and impairment: STATEMENTS - Intangible fixed assets 108,446 93,506 - Tangible fixed assets 62,686 54,839 CONSOLIDATED FINANCIAL - Right-of-use assets 131,586 119,292 - Goodwill 1,558 - Total amortization, depreciation and impairment 304,276 267,637 Provisions, other non-monetary items and gain/losses from disposals 18,103 35,871 Group’s share of the results of associated companies (221) (550) Financial income and charges 60,255 50,017 Current and deferred income taxes 51,210 54,720 Change in assets and liabilities: - Utilization of provisions (2,837) (10,871) - (Increase) decrease in inventories (2,465) (11,361) - Decrease (increase) in trade receivables 3,133 (49,121) - Increase (decrease) in trade payables 6,681 24,152 REPORT - Changes in other receivables and other payables (7,710) 27,490 ON OPERATIONS Total change in assets and liabilities (3,198) (19,711) Dividends received 147 198 Net interest charges (57,367) (49,301) Taxes paid (68,926) (77,679) Cash flow provided by (used in) operating activities before repayment of lease liabilities 449,849 416,227 Repayment of lease liabilities (128,959) (116,187) Cash flow generated from (absorbed) by operating activities 320,890 300,040 INVESTING ACTIVITIES: Purchase of tangible fixed assets (61,451) (66,313) Purchase of intangible fixed assets (84,970) (75,340) Consideration from sale of tangible fixed assets and businesses 1,386 1,795 Cash flow generated from (absorbed) by investing activities (145,035) (139,858) Cash flow generated from operating and investing activities (Free cash flow) 175,855 160,182 (*) AMPLIFON Business combinations (192,531) (108,469) AT A GLANCE Net cash flow generated from acquisitions (192,531) (108,469) Cash flow generated from (absorbed) by investing activities and acquisitions (337,566) (248,327) 64 --- ANNUAL REPORT 2024 FY 2024 FY 2023 FINANCING ACTIVITIES: Dividends (65,593) (65,361) Treasury shares (25,396) - Fees paid on medium/long-term financing (1,807) (1,413) Other non-current assets 5,290 (773) Hedging instruments - (1,483) Capital increases, third parties’ contributions and dividends paid by subsidiaries to third parties (125) (215) Cash flow generated from (absorbed) by financing activities (87,631) (69,245) Changes in net financial indebtedness net of lease liabilities (104,307) (17,532) Net financial indebtedness at the beginning of the period (852,130) (829,993) Effect of exchange rate fluctuations on net financial indebtedness (5,368) (4,605) Changes in net indebtedness (104,307) (17,532) Net financial indebtedness at the end of the period net of lease liabilities (961,805) (852,130) STATEMENTS (*) The item refers to the net cash flows used in the acquisition of businesses and equity investments. CONSOLIDATED FINANCIAL The change in net financial indebtedness of €104,307 thousand is attributable to: (i) Investing activities: - capital expenditure on property, plant and equipment and intangible assets of €146,421 thousand relating to the new Front-Office solutions and network expansion, as well as the ongoing implementation and standardization of the Group’s cloud-based ERP system; - acquisitions amounting to €192,531 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 €1,386 thousand. (ii) Operating activities: - interest payable on financial indebtedness, on leases after application of IFRS16 and other net financial expenses amounting to €57,367 thousand; - payment of €68,926 thousand in taxes; REPORT - payment of principle on lease obligations of €128,959 thousand; ON OPERATIONS - cash flow generated by current operations of €576,142 thousand. (iii) Financing activities: - distribution of €65,593 thousand in dividends to shareholders; - purchase of €25,396 thousand in treasury shares; - collection of €5,290 thousand in other non-current receivables; - payment of commissions on medium/long term financing of €1,807 thousand; - payment of €125 thousand in dividends to third parties. (iv) Net debt was also impacted by exchange losses of €5,368 thousand. Non-recurring transactions had a negative impact on cash flow of €2,444 thousand in 2024 attributable for €1,560 thousand to the costs incurred for the GAES Integration, for €678 thousand to the costs incurred to define and implement the amendments to the Articles of Incorporation and for €206 thousand to the integration of Bay Audio. AMPLIFON AT A GLANCE 65 --- ANNUAL REPORT 2024 ACQUISITION OF COMPANIES STATEMENT OF CHANGES BETWEEN AND BUSINESSES THE NET EQUITY AND THE RESULTS The Group continued with external growth in 2024 and acquired 393 points of sale, primarily as a result of the acquisitions made in China, the US (where two important OF THE PARENT COMPANY acquisitions of franchisees were finalized), and Uruguay for a total investment of €192,531 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. AMPLIFON S.P.A. AND THE NET In 2024: EQUITY AND THE RESULTS OF THE • 109 points of sale were acquired in China; STATEMENTS • 98 points of sale were acquired in the United States; • 58 points of sale were acquired in Germany; GROUP FOR THE PERIOD AS CONSOLIDATED FINANCIAL • 50 points of sale were acquired in France; • 36 points of sale were acquired in Spain; ST • 23 points of sale were acquired in Uruguay; AT DECEMBER 31 , 2024 • 12 points of sale were acquired in Canada; • 6 points of sale were acquired in Italy; (€ thousands) • 1 point of sale was acquired in Argentina. Net equity Net result Net equity and year-end result as reported 760,769 95,180 in the Parent company’sfinancial statements Elimination of carrying amount of consolidated investments: - Difference between carrying amount and the pro-quota REPORT 273,743 - value of net equity ON OPERATIONS - pro-quota results reported by the subsidiaries 136,386 136,386 - pro-quota results reported by investments 2,298 221 valued at equity Elimination of the effects of intercompany transactions: - Elimination of impairment net of reversals of - 2,836 investments and intercompany receivables - Intercompany dividends - (99,573) - Intercompany profits included in the year-end (22,624) 8,597 value of inventories net of fiscal effect - Exchange differences and other changes (348) 1,923 Net equity and year-end result as stated 1,150,224 145,570 in the consolidated financial statements Minority equity and result for the year 222 196 AMPLIFON AT A GLANCE Group net equity and result for the year 1,150,002 145,374 66 --- ANNUAL REPORT 2024 The Group’s Enterprise Risk Management framework has six components: RISK MANAGEMENT • Risk Governance: structure through which the organization leads, conducts, and Considering the importance of creating sustainable value for the stakeholders, we reports its risk management activities by defining the roles and responsibilities of ensure that the way we carry out our business is consistent with our mission and the functions and bodies involved. our strategic, operational and compliance objectives, by promoting an adequate risk • Risk Culture: values and attitude consistent with the organization’s risk management management process as part of our business management. Sound risk management culture. allows for better informed business decisions, reduces the gaps between actual • Risk Appetite: guidelines and indicators intended to support the achievement of the results and targets, and can create a competitive advantage. Group’s objectives. • Risk Assessment & Measurement: the process of identifying and assessing the Group’s Our Enterprise Risk Management (ERM) model, updated and in line with the best main risks. practices and international standards (e.g., Committee of Sponsoring Organization • Risk Management & Monitoring: activities aimed at mitigating, managing, monitoring of Treadway Commission), as well as with the recommendations of the Corporate or accepting risks. Governance Code, is aimed - through a structured and systematic risk assessment, • Risk Reporting: reporting of risks and related information to the main internal and STATEMENTS monitoring and reporting process - at the effective management of the Group’s main external stakeholders, including the Chief Executive Officer, the Risk, Control and risks, as well as providing adequate information to the stakeholders involved. Sustainability Committee, and the Board of Directors. CONSOLIDATED FINANCIAL The methodology is formalized within the Company regulations through specific policies and procedures (“Enterprise Risk Management Policy” approved by the Board of Directors) that promote the proactive and integrated management of risks, leveraging on existing management systems and allowing an adequate information flow to the administrative and control bodies. The methodology provides for the integration, within the ERM model and in line with the most recent regulatory developments (e.g., Corporate Sustainability Reporting Directive - CSRD), of the risks related to the main sustainability topics, including those associated with climate change. These risks have been included in the financial materiality activities as part of the Double Materiality analysis, aimed at REPORT identifying the relevant sustainability topics for Amplifon for the purposes of the ON OPERATIONS Consolidated Sustainability Statement. The goal is to provide a complete overview of the organization, supporting its resilience and ESG (Environmental, Social and Governance) performance. AMPLIFON AT A GLANCE 67 --- ANNUAL REPORT 2024 The risk management activities are coordinated and facilitated by the Group Risk Management Function, which supports the involved stakeholders (Countries, Regional Executive Vice Presidents, Corporate Executive Officers, selected Directors) in the identification, assessment, management and monitoring of the Group’s main risks. The Enterprise Risk Assessment process, outlined in the Enterprise Risk Management framework, is carried out annually, taking into account the Group’s strategic guidelines, and includes a half-yearly review to incorporate any updates regarding the risks to which the Company might be exposed, while also integrating the results of any specific analyses carried out by other company functions (e.g., Climate Change Risk Assessment 1 executed by the Investor Relations & Sustainability Function in 2023 ). The process also involves the integration of medium/long-term analyses (3-5 STATEMENTS years and 10-years) into the Enterprise Risk Assessment activities. The Group pays attention to monitoring possible trends and changes in the reference context, which CONSOLIDATED FINANCIAL could potentially impact the business or the industry. The Group’s main risks, classified by relevance within the Risk Model categories, as 2 well as, if present, the related ESRS Topical Standard for ESG purposes, are reported below. CONTEXTUAL BACKDROP During the year, Amplifon continued to carefully monitor the developments related to the macroeconomic and geopolitical situation, with particular focus on the inflation and interest rates trends and the related impact on demand, as well REPORT as on the overall slowdown in global economic activities, despite uneven signs of ON OPERATIONS recovery across the different geographical areas. As for climate change, given that the Group’s business model is based on providing retail hearing solutions, the goals related to the transition to alternative sources of energy and to the actions addressing climate change are pursued through the improvement in the energy supply from renewable sources and the energy efficiency of its business activities. In this regard, the company annually reports its carbon footprint based on its own emissions (Scope 1), those related to energy supply (Scope 2) and the indirect emissions from the value chain (Scope 3). AMPLIFON AT A GLANCE 1. In accordance with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). 2. For further information, refer to Section “Amplifon’s Double Materiality” of the Consolidated Sustainability Statement. Please note that, for the purposes of the Consolidated Sustainability Statement all ESG risks identified as material from the Double Materiality analysis have been taken into account (i.e., not only the ones presented in the Section below). 68 --- ANNUAL REPORT 2024 EXTERNAL RISKS External risks derive from factors exogenous to the Group. The current macroeconomic and geopolitical context, affected by conflicts and political elections in different countries, continues to be characterized by uncertainty and volatility. Although inflation and interest rates showed signs of a progressive reduction at the end of the year, at varying speeds across the different geographies, these factors could continue to influence demand and various cost categories (e.g., cost of debt). In general, the hearing aid market has historically proven significant resilience even in times of economic crisis. This Details resilience is attributable to the importance and the non-discretionary nature of hearing care, which remains a priority for consumers regardless of economic conditions, as well as to the presence of public and private reimbursement systems and consumer loans, which support access to hearing aids and services; this helps stabilizing demand even in times of economic uncertainty. The persistent uncertainty and volatility, particularly in certain geographical areas (e.g., Europe), could generally influence consumer confidence, RISKS CONNECTED potentially leading to the postponement of the purchase of a device that would still be necessary in the medium term. TO THE MACROECONOMIC AND GEOPOLITICAL CONTEXT Although Amplifon operates in a market segment that has historically proven a lower sensitivity to fluctuations in the general economic cycle, albeit in not directly comparable contexts, the Group continues to monitor the evolution of the macroeconomic and geopolitical STATEMENTS 3 environment and the relative impact on the business. 4 Regarding the possible direct impact of interest rates and inflation on different cost categories, in addition to the Group’s considerable Management Measures CONSOLIDATED FINANCIAL negotiation power in direct and indirect procurement, as well as in the negotiation of fixed rate financing agreements, various efficiency and productivity improvement actions on, for example, labor cost and marketing expenses are underway. Lastly, with regard to the ongoing conflicts, Amplifon Group has around 24 stores in Israel which generate sales less than approximately 1% of annual consolidated revenues and has no business in Ukraine and Russia. The retail hearing care market is expected to grow over the medium/long-term, considering the increasing average age of the population, the rising penetration of hearing solutions in the market, as well as greater consumers healthcare awareness. The market, while still fragmented, is showing a trend of consolidation due to both vertical and horizontal integration of hearing aid manufacturers, as well as growth of market players (including Amplifon). For these reasons, also in light of the current macroeconomic context, the market may experience increased competition. Details The Group’s main competitors are specialty retailers (which include the manufacturers of hearing aids, and, in specific counties, local independent players), non-specialty retailers (like optical chains, pharmacies and big box stores) which are generally low-cost providers, as well as new emerging players with innovative technologies. It’s possible that these competitors may continue to pursue an expansion strategy, with a potential impact on market share, sales margins, as well as competition in the recruitment and retention of hearing aid COMPETITION professionals and qualified store personnel. REPORT ON OPERATIONS Amplifon’s strategy continues to focus on strong brand recognition, high quality service, as well as on a deep understanding of the consumer, thanks also to the quality of the available data which enables a very unique and innovative customer experience. Toward this end, the Group applies sales protocols aimed at excellence in customer service (e.g., Amplifon 360, Ampli-Care), also through training and Management Measures awareness programs for store personnel and continuous after-sales assistance. An increasingly customer-centric approach enhances the Amplifon Product Experience (APE), comprising Amplifon-branded products and a multichannel ecosystem characterized by an increasingly functional App. Moreover, Amplifon continues to strengthen its leadership in core markets by consolidating its role, also through an approach of continuous inorganic expansion. 3. In the context of the geopolitical landscape, it is also important to consider the recent developments in trade tariff policies affecting the United States, which could potentially involve some of the Group’s suppliers. In this regard, the Company continues to closely monitor the evolving business environment and can also rely on significant negotiating power, the diversification of supply sources, the relative flexibility of AMPLIFON AT A GLANCE suppliers in the logistics of the production process, and, last but not least, the Group’s geographical diversification. 4. Despite the improvement in the economic environment compared to the previous year, the Argentine subsidiary continues to operate in a high-inflation context; however, its size remains non-significant relative to the overall scale of the Group. 69 --- ANNUAL REPORT 2024 STRATEGIC RISKS Strategic risks are typical of any given business. If managed correctly they can be the source of a competitive advantage or, conversely, they can compromise the ability to reach targets. Consistent with its strategy, Amplifon continues to make significant investments in marketing in order to strengthen its brands and increase the penetration rate of hearing aids with a view to an organic growth of the organization. In the face of scenario characterized Details by an uncertain and volatile macroeconomic context, a conceivable evolution of competition, and an increase in media cost, these goals require activities and instruments increasingly focused on positive return on investment, leveraging on both cost containment and the effectiveness of the initiative. MARKETING INVESTMENTS Marketing initiatives focus on offline media advertising (e.g., television campaigns) and digital channels (e.g., Paid Advertising, Search Engine Optimization, messaging architecture, social media). The Group also invests in advanced Customer Relationship Management (CRM) campaigns to ensure unique and personalized experiences for its customers, as well as in the technological innovation program, Management Measures which comprises Amplifon-branded products and the multi-channel eco-system (the “Amplifon Product Experience”) to provide a complete value proposition, comprising product, service and experience. Amplifon works to ensure that the global marketing investments are efficient and effective, monitoring the costs and returns and STATEMENTS assessing different investment strategies, as well as the selected media mix. CONSOLIDATED FINANCIAL The development of innovative technologies, specifically alternative solutions to the hearing aid for core customers with moderate to severe hearing loss (e.g., new technologies, new pharmaceutical products, surgical techniques), as well as potential relevant transformations in terms of service and operating model, even if considered remote, would possibly lead to significant impacts, also in Details terms of accessibility of services provided to its customer base. The quality of the service and the continuous customer care provided, both during the sales process and throughout the hearing aid’s life cycle, are in fact the distinctive elements that characterize Amplifon. The customization of the hearing aid itself is done on the basis of the specific needs of each customer, combining technical and relational aspects, in order to provide the best service possible and, at the same time, constitute a strong element of differentiation. TECHNOLOGICAL CHANGES IN PRODUCTS AND/OR THE Investments continue with the aim of finding the best resources for the development of technologies, in order to both anticipate and OPERATING MODEL better respond to any change in the business. Moreover, with a view to monitoring and increasing the service and customer satisfaction, the Group invests significant resources in developing its own line of products and digital technologies, like the Amplifon App, and in Management Measures redefining its customers audiological experience through Ampli-Care and integrating new services and features. These investments make it possible to maintain an ongoing relationship with clients and provide a better customer experience, both inside and outside the Group’s stores, also through experiments with self and remote care solutions in an omnichannel perspective. REPORT ON OPERATIONS ESRS S4 – Consumers and end-users Related ESRS Topical Standard (Sub-topic: Social inclusion of consumers and/or end-users) In light of the increasing relevance of the Company and stakeholders’ expectations, in addition to the mandatory financial and Details sustainability disclosures, the Amplifon Group is increasingly involved in initiatives of public interest and in communication activities focused on relevant/emerging topics. COMMUNICATION Amplifon proceeds with the timely implementation of regulatory standards and continuously monitors potential evolutions of the Management Measures legislations. The Group also adopts internal measures (e.g., specific procedures) to manage external communication activities. ESRS G1 – Business Conduct Related ESRS Topical Standard (Sub-topic: Corporate culture) AMPLIFON AT A GLANCE 70 --- ANNUAL REPORT 2024 OPERATIONAL RISKS Operational risks are those inherent in the business’ organization, processes and systems, which could impact the efficiency and effectiveness of the Group’s operations. The strong reliance on technology and the gradual acceleration toward digitalization continue to expose companies to different types of Details internal and external IT risks, including third party vulnerabilities. The cyber-attacks, which have become more widespread and relevant globally, also considering the changes in the geopolitical scenario, pose a constant threat from which Amplifon must protect itself. Amplifon constantly monitors potential threats and any possible changes, including regulatory evolutions, with a view to preventing as well as minimizing the impact that these attacks could have on the Group. The continuous monitoring carried out aims at guaranteeing CYBER SECURITY Management Measures business continuity, as well as preventing the loss of data/information or financial resources, through activities focused on the security of processes, people and systems (e.g., training, phishing simulation, multi-factor authentication, business impact analysis, specific insurance policies). Related ESRS Topical Standard Risk not associated with any ESRS Topical Standard but deemed relevant and considered Entity Specific. In line with its development goals, the Group works on different projects for the implementation and integration of new IT systems, STATEMENTS including the centralization of purchasing activities and the release of the ERP system within Group companies, as well as the Details implementation of the new front-end system for stores. CONSOLIDATED FINANCIAL IMPLEMENTATION AND These projects continue to be highly complex and relevant, also considering the Group’s expansion path, particularly with respect to the INTEGRATION OF NEW IT management of unique, local characteristics, the roll-out phases and change management. SYSTEMS Taking the experience and lessons learned as reference, Amplifon dedicates the necessary resources to these projects, focusing Management Measures particularly on developing and increasing the know-how of internal resources, as well as including a robust training program aimed at training system users and assisting them with change management. Consistent with the goal of sustainable growth in the medium/long-term, to address the organizational needs and complexity of the business (with particular reference to specific countries), and considering also the evolution of the external environment, the Group confirms its commitment to attracting, developing and retaining the best talents, including internationally, above all with respect to key managerial positions and qualified store personnel. With the aim of being the “employer of choice”, Amplifon invests significantly in both the development of a unique and innovative Employer Details Branding as well as in its talents through specific recruiting initiatives and professional development programs designed to ensure the availability of key competencies. The Group has also developed and maintains structured channels, which facilitate the recruiting of talents with specific expertise. The current context, characterized by growing competition, could have an impact on the attraction and retention of qualified store personnel, REPORT considering also the high level of qualification of the audiologists available to the Group. ON OPERATIONS Amplifon continues to dedicate great attention to training activities and professional development of both store and back-office personnel, HUMAN RESOURCES maintaining also productive partnerships with universities and reference organizations. Performances are assessed based on “ad hoc” compensation mechanisms and incentives. In order to guarantee success in the medium/long-term, talent mapping and succession planning activities are carried out regularly, analyzing and anticipating future needs for key roles, also in view of the growth of the business and changes in core markets. The level Management Measures of efficiency achieved by the Group in relation to these elements is constantly monitored through KPIs related to succession planning, recruiting and retention. Amplifon pays particular attention to the workplace environment, its people and the organization. This commitment is recognized through 5 the international certifications received for human resources management (e.g., Top Employer , Top 100 global Most Loved Workplaces, Global Leading Employer). ESRS S1 – Own workforce Related ESRS Topical Standard (Sub-topic: Working conditions) AMPLIFON AT A GLANCE 5. Region Europe (Italy, Spain, the Netherlands, Portugal, Germany, France, Belgium), Region Americas (United States, Canada and Panama), Region LATAM (Colombia, Argentina, Chile and Ecuador), New Zealand and Australia. 71 --- ANNUAL REPORT 2024 REGULATORY RISKS Regulatory risk stems from compliance with the laws and regulations within the different markets in which the Company operates. Amplifon operates in a medical sector which is regulated differently in the countries where it is present. The main areas of interest for the Group relate to: i) reimbursement conditions from national healthcare systems and/or third parties, such as insurance companies; ii) selling requirements/conditions for the distribution of hearing aids; iii) requisites and qualifications of the professionals authorized to select, apply and sell hearing solutions. Therefore, a change in regulations (e.g., in reimbursement conditions - their amount or accessibility to the national healthcare service - in the role of otolaryngologists and, above all, of hearing aid specialists, in the requirements needed to sell hearing aids and related services, in sustainability standards) could have a direct, even significant, impact on the market (considering Details also the possible attention from local authorities and the influence by health insurance companies) and, consequently, on performance. In this context, the market evolution includes the sale of “Over the Counter (OTC)” as well as “Direct to Consumer (DTC)” devices; the Group continues to monitor the relevant regulations as well as possible investments by new players. More specifically, with reference to the entry into force of the regulation governing the sale of OTC devices in the United States in 2022, it is noted that is having a limited impact on the business, given the importance of the service component and the consumers involved (with mild to moderate hearing loss versus the Group’s current core customers with moderate to severe hearing loss), considering also STATEMENTS Amplifon’s uniqueness in terms of products and services offered. INDUSTRY REGULATIONS CONSOLIDATED FINANCIAL Amplifon continues to monitor the evolution of the global regulatory landscape, including with respect to sustainability and the sale of OTC and DTC hearing aids. The Group continues with its monitoring in order to detect any potential changes in the current scenario (e.g., possible new entries, the role of large retail players), while also considering the potential benefits for Amplifon in terms of hearing aid penetration, as a greater number of potential customers become interested in the sector, thanks also to the investments and the global Management Measures campaigns to raise awareness about hearing loss and the importance of hearing care. Overall, considering the current macroeconomic context, Amplifon constantly monitors regulatory topics in the countries in which operates and the implementation of possible actions (e.g., processes/procedures update) in order to promptly react to potential changes in the regulatory landscape. ESRS S4 – Consumers and end-users Related ESRS Topical Standard (Sub-topic: Social inclusion of consumers and/or end-users) Given the nature of its business, Amplifon manages personal data, and in some circumstances sensitive data, of customers, employees and job candidates. The possibility that the processing of personal data does not comply with the relevant regulations, also due to Details REPORT potential data breaches and incidents as well as in consideration of the expansion and the investments in innovation, could lead to ON OPERATIONS possible sanctions by Privacy Authorities. PRIVACY & The Group continues to maintain adequate security standards and is committed to protecting any personal data processed, in order DATA PROTECTION to guarantee compliance with data protection laws. Toward this end, Amplifon continuously monitors potential legislative changes and Management Measures amendments that could materialize over the next few years, takes the necessary measures (e.g., appointing a Data Protection Officer, policies), and provides training activities. ESRS S4 – Consumers and end-users Related ESRS Topical Standard (Sub-topic: Information-related impacts for consumers and/or end-users) AMPLIFON AT A GLANCE 72 --- ANNUAL R E P ORT 2024 FINANCIAL RISK MANAGEMENT With a view to structured management of treasury activities and financial risks, the Group had already adopted a Treasury Policy in 2012 which contains guidelines for the management of: • currency risk; • interest rate risk; • credit risk; • price risk; • liquidity risk. This policy is updated periodically in order to guarantee proactive risk management. Currency Risk includes the following types of risk: - foreign exchange transaction risk, that is the risk that the value of a financial asset or liability, a forecasted transaction or a firm commitment, fluctuates due to STATEMENTS changes in exchange rates; - foreign exchange translation risk, that is the risk that the translation of the assets, liabilities, costs and revenues relating to net investment in a foreign operation CONSOLIDATED FINANCIAL into the reporting currency gives rise to an exchange gain or loss. The Amplifon Group’s foreign exchange transaction risk relates to: - the currency risk stemming from the Procurement and Supply Chain activities carried out by the parent company which involves the direct management of the purchase of hearing aids and accessories, which are then resold to the subsidiaries. The purchases from suppliers are generally made in the same currency used Details in the subsidiaries’ invoices with payment terms that are similar to those negotiated with the suppliers, which limits the exchange risk. However, the amounts can be significant and the risk significant, particularly with respect to year-end adjustments; - other transactions in which the purchase costs or sales revenue are denominated in currencies other than the local currency as is the case in a few countries of lesser importance (Israel, Canada and the Central and Latin American subsidiaries), where the purchasing costs are incurred in Euros and US dollars; - other intercompany transactions (medium/long-term and short-term loans, charge backs based on intercompany service agreements, other centralized, intercompany dividends, etc.) which result in currency risk for the companies operating in currencies other than that of the intercompany transaction; - the period between the signing and closing of any commitments to purchase equity interests. Foreign exchange translation risk arises from investments in the United States and Canada, the United Kingdom, Switzerland, Hungary, Poland, Israel, Australia, New Zealand, India, China, Chile, Argentina, Ecuador, Colombia, Panama, Mexico and Egypt. CURRENCY RISK Foreign Exchange transaction risk REPORT The Group’s strategy aims to minimize the impact of currency volatility on the income statement and calls for risks stemming from significant positions in currencies other than the currency used in the financial statements of each company to be hedged. ON OPERATIONS Regarding operational transactions, including those stemming from the Parent Company’s Global Procurement activities, the intercompany services provided and cash-pooling, the risk is covered, when possible, by using a natural hedge which aims to balance active and passive positions for each company by maintaining currency deposits which can be used to cover any differences. Any risk exposure linked to differences in assets and liabilities that cannot be managed using bank deposits in foreign currency will be adequately hedged using instruments deemed adequate. These include, for example, currency forwards. Any exposures to exchange risks stemming from financial transactions are hedged using derivatives. Management Measures The risks arising from other intercompany transactions (both operational and financial) worth less than €1 million (or the equivalent if denominated in another currency) are not hedged as the amounts are not material. Foreign Exchange Translation Risk The foreign exchange translation risk, in accordance with the Group Treasury Policy, is not hedged. Overall, the impact of the foreign exchange translation risk can be seen in the Group’s Euro denominated EBITDA which was around €3 million lower than the Group’s total EBITDA. Approximately €1 million of this difference is attributable to the Argentinian subsidiary. The latter operates in a high-inflation country but, as the size of the subsidiary is immaterial, the impact on the Group is not significant. AMPLIFON AT A GLANCE 73 --- ANNUAL REPORT 2024 Interest rate risk involves the following situations: - fair value risk, namely the risk that the value of a fixed rate financial asset or liability changes due to fluctuations in market interest rates; - cash flow risk, namely the risk that the future cash flows of a floating rate financial asset or liability fluctuate due to changes in market interest rates. Details In the Amplifon Group fair value risk arises on the issue of €350 million Eurobonds, the €125 million tranche disbursed as part of the European Investment (EIB) loan, the €100 million tranche disbursed by Cassa Depositi e Prestiti (CDP) as part of the pool facility subscribed by CDP and Unicredit. The cash flow risk stems from floating rate bank loans. The Group’s strategy is to minimize cash flow risk, especially with respect to long-term exposures, through a balanced mix of fixed- and floating-rate loans and assessing whether to switch floating rate borrowings to fixed-rate when each loan is taken out, as well as over the life of the loans included in light of the current market rates. On 31 December 2024, the Group’s medium/ long- term debt amounted to €1,250 million, of which €988 million at fixed rate or has been swapped to fixed rate debt. In accordance with company strategy, hedging instruments are used by the Group exclusively to mitigate interest rate and currency risk and consist solely in financial derivatives. In order to maximize the effectiveness of these hedges the Group’s strategy calls for: - large counterparties with excellent credit standing and transactions which fall within the limits determined in the treasury policy in order to minimize counterparty risk; - the use of instruments which match, to the extent possible, the characteristics of the risk hedged; - monitoring of the adequacy of the instruments used in order to check and, possibly, optimize the structure of the instruments used to achieve the purposes of the hedge. The Group’s Treasury Policy also defines the rigorous criteria to be used when selecting counterparties. STATEMENTS The derivatives used by the Group are generally plain vanilla financial instruments. More in detail, the types of derivatives used include: CONSOLIDATED FINANCIAL - interest rate swaps; - foreign exchange forwards. INTEREST RATE RISK On initial recognition these instruments are measured at fair value. At subsequent reporting dates the fair value of derivatives must be re-measured and: (i) If these instruments fail to qualify for hedge accounting, any changes in fair value that occur after initial recognition are taken to profit and loss; (ii) If these instruments subsequently qualify as fair value hedges, from that date any changes in the fair value of the derivative are taken to profit and loss; at Management the same time, any fair value changes due to the hedged risk are recorded as an adjustment to the book value of the hedged item and the same amount is Measures recorded in profit and loss; any ineffectiveness of the hedge is taken to profit and loss; (iii) If these instruments qualify as cash flow hedges, from that date any changes in the fair value of the derivative are taken to net equity. Changes in the fair value of the derivative that are recognized in net equity are subsequently reclassified in the income statement in the period in which the hedged transaction affects profit and loss. When the object of the hedge is the purchase of a non-financial asset, changes to the fair value of the derivative taken to net equity are reclassified to adjust the purchase cost of the asset hedged (basis adjustment). Any ineffectiveness of the hedge is recognized in profit and loss. The Group’s hedging strategy is reflected in the accounts described above as of the moment the following conditions are satisfied: - the hedging relationship, its purpose and the overall strategy are formally defined and documented; the documentation includes the identification of the hedging REPORT instrument, the hedged item, the nature of the risk to be neutralized and the procedures whereby the entity will assess the effectiveness of the hedge; - the effectiveness of the hedge may be reliably assessed and there is a reasonable expectation, confirmed by evidence, that the hedge will be highly effective for ON OPERATIONS the period in which the hedged risk exists; - the hedged risk relates to changes in cash flow connected to a future transaction, the latter is highly probable and entails exposure to changes in cash flow which could affect profit and loss. Derivatives are recognized as assets if their fair value is positive and as liabilities if their fair value is negative. These balances are shown under current assets or liabilities if related to derivatives which do not qualify for hedge accounting, conversely, they are classified consistently with the hedged item. More specifically, if the hedged item is classified as a current asset or liability, the positive or negative fair value of the hedging instrument is included under current assets or liabilities; if the hedged item is classified as a non-current asset or liability, the positive or negative fair value of the hedging instrument is included under non- current assets or liabilities. The Group does not have any net investment hedges. AMPLIFON AT A GLANCE 74 --- ANNUAL REPORT 2024 Credit risk is the risk that the issuer of a financial instrument defaults on its obligations resulting in a financial loss for the investor. In the Amplifon Group credit risk arises from: Details (i) sales made as part of ordinary business operations, when client default can be verified; (ii) the use of financial instruments that require settlement of positions with other counterparties which could fail to honor their obligations; (iii) the loans granted to members of the indirect channel and commercial partners in the United States for investments and business development which could fail to be repaid. Regarding the risk (i) above, the only positions with a high unit value are amounts due from Italian public-sector entities for which the risk of insolvency, while it exists, is remote and further mitigated by the fact that each quarter they are factored without recourse by specialized factoring companies. Conversely, there is credit risk associated with the sales to private individuals based on instalment payment plans and arising from sales to US indirect channel operators (franchisees). This credit risk, however, is spread out over a number of partners and the amount owed by any single individual is limited. The largest of these amounts does not CREDIT RISK exceed a few million US dollars. Due to typical business risks, some may not be able to honor their debts. This would result in higher working capital and credit losses. While each subsidiary is responsible for collection of receivables, the Group, through its Corporate functions, has set up a centralized system of monthly reporting relative to trade receivables in order to monitor the composition and due dates for each country, and shares credit recovery initiatives and commercial policies with local management. Payment options like installment plans or loans (with terms limited to a few months) are offered to private customers, the majority Management of which do, however, use cash. These are managed by external finance companies which advance the whole amount of the sale to Amplifon, while the situation of Measures the indirect channel in the US is closely monitored by local management. STATEMENTS The risk referred to in (ii) above, notwithstanding the inevitable uncertainties linked to sudden and unforeseeable counterparty default, is managed by making diversified investments with the main national and international investment grade financial institutions and through the use of specific counterparty limits with CONSOLIDATED FINANCIAL regard to both liquidity invested and/or deposited and to the notional amount of the derivatives. The counterparty limits are determined based on the short-term ratings of each counterparty or, if a public rating is not available, on capital ratios (Tier 1). The risk referred to in (iii) above refers to receivables that are typically guaranteed personally by the loan beneficiaries and repayments are generally made when the invoices for the purchases of hearing aids are paid or settled at the time the Group acquires the business of the franchisee. This arises from the possibility that the value of a financial asset or liability may change due to fluctuations in market prices (other than those caused by currency or interest rate fluctuations). These fluctuations may be caused by: - characteristics specific to the financial asset or liability or the issuer of the financial liability, Details - independent market factors not connected to the specific asset or liability. This risk is typical of financial assets not listed on an active market, which may not be easy to liquidate quickly at a level close to their fair value. The Amplifon Group PRICE RISK does not have investments in these kinds of instruments and, therefore, this risk currently does not exist. REPORT Management ON OPERATIONS The Amplifon Group does not have investments in these kinds of instruments and, therefore, this risk currently does not exist. Measures Liquidity Risk typically arises when an entity is experiencing difficulty finding sufficient funds to meet its obligations and includes the risk that the counterparties that have granted loans and/or “uncommitted” short-term lines of credit may request repayment, as well as difficulty in refinancing long-term loans which have reached maturity. Details The current interest rate environment, which in the last few years has been characterized by a significant increase in rates, followed by a slight decrease/ stabilization in the last few months. These increases impact refinancing costs, making the refinanced debt more costly than the loans being refinanced which were LIQUIDITY RISK originally taken out in 2020-2021. At the end of 2024, the Group Net Financial position displays a gross debit of €1,250 million, and approximately 80% of the Group’s debt had maturities beyond Management 12 months. The liquidity for € 289 million and the irrevocable credit lines and the unutilized portion of the EIB loan amount to €705 million which provides ample Measures headroom. This suggests that the Group’s liquidity risk is immaterial. The Group also has short-term revocable credit lines which amounted to €343 million on 31 December 2024, of which only €121 million has been utilized. AMPLIFON AT A GLANCE 75 --- ANNUAL REPORT 2024 TREASURY SHARES On 31 December 2024 the share capital comprised 226,388,620 ordinary shares with a par value of €0.02 fully paid in and subscribed, unchanged with respect to 31 December 2023. In 2024 920,000 treasury shares were purchased and 456,399 shares were transferred following the exercise of performance stock grants. During the reporting period 37,500 shares were transferred as the second deferred payment for the Otohub S.r.l. acquisition made in 2019. A total of 1,068,249 treasury shares, equal to 0.472% of the share capital, were held STATEMENTS on 31 December 2024. CONSOLIDATED FINANCIAL Movements in the treasury shares held are shown in the following table. Average purchase price (Euro) Total amount N. of shares (€ thousand) FV of transferred rights (Euro) Held at 12/31/2023 642,148 27.245 17,495 Purchases 920,000 27.605 25,396 Transfer due to exercise of (456,399) 27.396 (12,503) performance stock grant Transfer due to exercise of Otohub S.r.l. acquisition’s (37,500) 27.457 (1,030) deferred payment REPORT Total at 12/31/2024 1,068,249 27.482 29,358 ON OPERATIONS AMPLIFON AT A GLANCE 76 --- ANNUAL REPORT 2024 RESEARCH AND DEVELOPMENT CONTINGENT LIABILITIES While the Group does not typically carry out any research and development in Currently the Group is not exposed to any particular risks, uncertainties or legal relation to hearing aids (insofar as this is carried out by the manufacturers), it does disputes which exceed the provisions already made in the financial statements, invest important resources in both innovation and technology through the” Amplifon shown in Note 19 and 25. There are currently underway usual tax audits. These Product Experience”, as well as other innovative digital marketing solutions and front- audits are presently in the preliminary phase and no findings have been reported so office systems and processes, in order to provide its customers with an excellent far. The Group is confident in the correctness of its actions. “Customer Experience”. Moreover in 2024 Group continued in roll-out of project “Otopad” that will give the opportunity to increase in efficiency of hearing-test process and in its operation ATYPICAL/UNUSUAL TRANSACTIONS phase, progressively replacing traditional devices. Please note that in 2024 the Group carried out no atypical and/or unusual transactions STATEMENTS as defined in the Consob Bulletin of 28 July 2006. CONSOLIDATED FINANCIAL TRANSACTIONS WITHIN THE GROUP AND WITH RELATED PARTIES Pursuant to and in accordance with the Consob Regulation n. 17221 issued on 12 March 2010 and after having received a favorable opinion from the Independent Directors’ Committee for Related Parties transactions, on 3 November 2010 Amplifon S.p.A.’s Board of Directors adopted a new version of the regulations of procedures and fulfillments for related party transactions which has been updated several times. The regulation currently in force was approved by the Board of Directors on 29 April 2021 with entry into force on 1 July 2021. REPORT ON OPERATIONS 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 managed at arm’s length, given the nature of the goods and of the services provided. Information on transactions with related parties is provided in Note 39 of the consolidated financial statements and in Note 37 of the separate financial statements. AMPLIFON AT A GLANCE 77 --- ANNUAL REPORT 2024 OUTLOOK In 2024, despite a market environment characterized by different performances across the various geographies, the Group continued along its path of strong, above-market revenue growth, supported by the strengthening of its competitive positioning in the core countries. At the same time, the Group made significant investments to consolidate the leadership of its brands, expand the distribution network and strengthen the audiologist capacity to prepare for the anticipated recovery of the European market in 2025. In 2025 the Group expects another positive year for the hearing care market in the STATEMENTS United States, despite the challenging comparison base, and a progressive return to growth in the European market after three years of soft demand, thanks, above all, CONSOLIDATED FINANCIAL to the Rest-à-Charge Zéro regulatory reform anniversary in France. 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 2025 Amplifon expects: • Consolidated revenues to grow mid to high single-digit at constant exchange rates, supported by an above-market and more balanced performance across regions, as well as bolt-on acquisitions, the latter contributing to revenue growth for around 2%; • Recurring EBITDA margin of at least 24%, thanks mainly to an improved operating leverage in EMEA. REPORT ON OPERATIONS In further detail, the Group expects an acceleration in revenue growth from the second quarter, as the French market is anticipated to gain momentum from the second quarter onwards, and in light of the challenging comparison base of the first quarter of 2024, which also had 1.5 trading days more than the first quarter of 2025. In the medium term, the Group remains extremely positive on its prospects for sustainable growth in sales and profitability, thanks to the secular fundamentals of the hearing care market and its even stronger competitive positioning. AMPLIFON AT A GLANCE 78 --- ANNUAL REPORT 2024 COMMENTS ON THE ECONOMIC-FINANCIAL RESULTS OF AMPLIFON S.P.A. RECLASSIFIED INCOME STATEMENT (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total % on recurring Recurring Non-recurring Total % on recurring Total revenues 409,687 - 409,687 100.0% 480,539 - 480,539 100.0% Operating costs (297,172) (2,960) (300,132) -72.5% (329,415) (12,433) (341,848) -68.6% Other income and costs (31,489) - (31,489) -7.7% (70,537) - (70,537) -14.7% STATEMENTS Gross operating profit (loss) (EBITDA) 81,026 (2,960) 78,066 19.8% 80,587 (12,433) 68,154 16.8% CONSOLIDATED FINANCIAL Depreciation, amortization and impairment (30,214) - (30,214) -7.4% (27,598) - (27,598) -5.7% losses on non-current assets Right-of-use depreciation (2,782) - (2,782) -0.7% (3,153) - (3,153) -0.7% Operating profit (loss) (EBIT) 48,030 (2,960) 45,070 11.7% 49,836 (12,433) 37,403 10.0% Income, expenses, valuation 89,361 (3,178) 86,183 21.8% 86,472 - 86,472 18.0% and adjustments of financial assets Net financial expenses (35,656) - (35,656) -8.7% (28,693) - (28,693) -6.0% Exchange differences and FV adjustments (283) - (283) -0.1% (822) - (822) -0.2% Profit (loss) before tax 101,452 (6,138) 95,314 24.8% 106,793 (12,433) 94,360 22.2% Tax (989) 855 (134) -0.2% (7,225) 3,492 (3,733) -1.5% Net profit (loss) 100,463 (5,283) 95,180 24.5% 99,568 (8,941) 90,627 20.7% REPORT ON OPERATIONS EBITDA: operating result before interest, taxes, depreciation and write-down of tangible and intangible fixed assets and usage rights on lease agreements. EBIT: operating result before financial income and charges and taxes. AMPLIFON AT A GLANCE 79 --- ANNUAL REPORT 2024 The table below shows the impact of the non-recurring transactions referred to in the statements above, for the periods 2024 and 2023: • for €1,678 thousand, by the costs incurred to implement amendments to the Company’s Articles of Association, including relative to 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 €1,282 thousand, by the notional cost of the one-off assignment made by the shareholder Ampliter of a portion of of its Amplifon shares to the Chief Executive Officer recognized 2023 in accordance with IFRS 2 “Share Based Payments”; • Write-down for € 3,178 thousand of investments in Pilot Blankenfelde Medizinisch- Elektronische Geräte GmbH – Germania (€ 1,558 thousand) e Amplifon Cell – Malta (€ 1,620 thousand) operating in a business not directly related to hearing aids. STATEMENTS CONSOLIDATED FINANCIAL (€ thousands) FY 2024 FY 2023 Imputed cost of assignment by Ampliter shareholder (1,282) (12,433) of Amplifon shares to the CEO Donation to UNHCR (1,678) - Impact of the non-recurring items on EBITDA (2,960) (12,433) Impact of the non-recurring items on EBIT (2,960) (12,433) Write-down of investments in Pilot Blankenfelde Medizinisch- (3,178) - Elektronische Geräte GmbH and Amplifon Cell Impact of the non-recurring items on profit before tax (6,138) (12,433) REPORT Impact of the above items on the tax burden of the period 855 3,492 ON OPERATIONS Impact of the non-recurring items on net profit (5,283) (8,941) AMPLIFONLANCE G A AT 80 --- ANNUAL REPORT 2024 RECLASSIFIED CONDENSED BALANCE SHEET The reclassified Condensed Balance Sheet aggregates assets and liabilities according to operating functionality criteria, subdivided by convention into the following three key functions: investments, operations and finance. (€ thousands) 12/31/2024 12/31/2023 Change Goodwill 8,025 8,025 - Other intangible fixed assets 79,078 80,712 (1,634) Buildings, plants and machinery 4,174 6,133 (1,959) Right-of-use assets 10,819 18,540 (7,721) Fixed financial assets 1,924,246 1,837,302 86,944 STATEMENTS Other non-current financial assets 8,980 3,519 5,461 Total fixed assets 2,035,322 1,954,231 81,091 CONSOLIDATED FINANCIAL Inventories 420 520 (100) (1) Trade receivables 171,342 231,647 (60,305) (2) Other receivables 50,146 33,099 17,047 Current assets (A) 221,908 265,266 (43,358) Total assets 2,257,230 2,219,497 37,733 (3) Trade payables (237,891) (269,671) 31,780 (4) Other payables (52,282) (35,750) (16,532) Short term liabilities (B) (290,173) (305,421) 15,248 Net working capital (A)+(B) (68,265) (40,155) (28,110) (5) Derivative instruments 4,836 12,933 (8,097) Deferred tax assets 11,639 16,711 (5,072) REPORT Provisions for risks (non-current portion) (89) (92) 3 ON OPERATIONS Employee benefits (non-current portion) (586) (773) 187 (6) Loan fees 3,452 3,006 446 Other long-term payables (12,294) (5,221) (7,073) NET INVESTED CAPITAL 1,974,016 1,940,640 33,376 Net equity 760,769 748,861 11,908 Short term net financial debt 247,123 453,842 (206,719) Long term net financial debt 954,118 716,805 237,313 Total net financial debt 1,201,241 1,170,647 30,594 Lease liabilities 12,006 21,132 (9,126) Total lease liabilities & net financial debt 1,213,247 1,191,779 21,468 NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT 1,974,016 1,940,640 33,376 (1) The item “Trade receivables” includes “Receivables from suppliers of acoustic solutions for chargebacks” and “Receivables from subsidiaries and parent company deriving from the sale of goods and services”. (2) The item “Other receivables” includes “Other receivables” and “Other receivables from subsidiaries and parent company”. AMPLIFON AT A GLANCE (3) The item “Trade payables” includes “Trade payables from suppliers” and “Payables to subsidiaries and parent company”. (4) “Other payables” includes other liabilities, accrued liabilities and deferred income, current portion of liabilities for employees’ benefits and tax liabilities. (5) “Derivatives instruments” includes cash flow hedging instruments not included in the item “Net medium and long-term financial indebtedness”. (6) 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. 81 --- ANNUAL REPORT 2024 CONDENSED RECLASSIFIED CASH FLOW STATEMENT The condensed reclassified cash flow statement, starting from the operating result, presents an indication of the monetary flows generated or absorbed by the operating, investment and financing functions. (€ thousands) FY 2024 FY 2023 Amortization, depreciation and write-down 45,070 37,403 Provisions, other non-monetary items and gain/losses from disposals 32,996 30,751 Net financial expenses 10,031 24,627 Dividends collected (37,321) (30,780) STATEMENTS Taxes paid 90,500 88,524 Changes in net working capital 823 (10,038) CONSOLIDATED FINANCIAL Amortization, depreciation and write-down 39,947 60,284 Cash flow provided by (used in) operating activities before repayment of lease liabilities 182,046 200,771 Repayment of lease liabilities (2,673) (2,086) Cash flow provided by (used in) operating activities (A) 179,373 198,685 Cash flow provided by (used in) operating investing activities (B) (27,248) (34,772) Free Cash Flow (A+B) 152,125 163,913 Net cash flow provided by (used in) acquisitions equity investments/ capital increases in related parties (C) (90,705) (75,426) (Purchase) sale of other investment and securities, liquidation of subsidiary (D) 880 9,331 Cash flow provided by (used in) investing activities (B+C+D) (117,073) (100,867) REPORT Cash flow provided by (used in) operating activities and investing activities 62,300 97,818 ON OPERATIONS Other non-current assets (98) (18) Hedging instruments - (1,483) Fees paid on medium/long-term financing (1,807) (1,413) Dividends distribution (65,593) (65,361) Purchases of treasury shares (25,396) - Capital increases - - Net cash flow from the period (30,594) 29,543 Net financial indebtedness at the beginning of the period net of lease liabilities (1,170,647) (1,200,190) Change in net financial position (30,594) 29,543 Net financial indebtedness at the end of the period net of lease liabilities (1,201,241) (1,170,647) AMPLIFON AT A GLANCE 82 --- ANNUAL REPORT 2024 REVENUES FROM SALES AND SERVICES (€ thousands) FY 2024 FY 2023 Change Change % Revenues from sales and services to subsidiaries 409,687 480,539 (70,852) (14.7%) Total 409,687 480,539 (70,852) (14.7%) Revenues for services rendered to subsidiaries include the sale of hearing aids and related accessories (Amplifon S.p.A. acts as the Group’s procurement center), and the recharge of centralized services provided, including human resources management, marketing, implementation of shared IT systems. STATEMENTS The decrease of €70,852 thousands with respect to the previous year results is attributable to the lowering of transfer prices, in compliance with applicable tax and accounting regulations, and the creation of efficiencies that reduced centralized costs, thus lowering the amount invoiced to the subsidiaries. CONSOLIDATED FINANCIAL GROSS OPERATING PROFIT (EBITDA) (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Gross operating profit (loss) 81,026 (2,960) 78,066 80,587 (12,433) 68,154 (EBITDA) REPORT Gross operating profit (EBITDA) amounted to €78,066 thousands (19.1% of the revenues generated by sales and services) compared to €68,154 thousands on 31 December ON OPERATIONS 2023. In the comparing period the gross operating profit (EBITDA) was affected for €12,433 thousand by the notional cost of the one-off assignment made by the shareholder Ampliter of 500,000 of its Amplifon shares to the Chief Executive Officer in accordance with IFRS 2 “Share Based Payments”, while the reporting period was affected not only by the current amount related to the previous mentioned assignment for €1,282 thousand, but also by the costs incurred to implement amendments to the Company’s Articles of Association for €1,678 thousand, 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. Net of these non-recurring items, the increase of gross operating profit (EBITDA) amounted to €439 thousand (+0.5%) and the impact on revenues was up to 19.8%. AMPLIFON AT A GLANCE 83 --- ANNUAL REPORT 2024 OPERATING PROFIT (EBIT) (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Operating profit (loss) (EBIT) 48,030 (2,960) 45,070 49,836 (12,433) 37,403 Operating profit (EBIT) amounted to €45,070 thousands (11.0% of the revenues generated by sales and services). In 2023 the operating profit (EBIT) was impacted for €12,433 thousands by non-recurring costs, while in 2024 non-recurring costs amounted to €2,960, as described in the section related to the gross operating profit (EBITDA). Net of these non-recurring items, the operating result (EBIT) decreased by €1,806 thousands (-3.6%) and the incidence on revenues from sales and services referring only STATEMENTS to recurring operations stood at 11.7%. The slight increase in the gross operating result (EBITDA) was in fact more than absorbed by the greater amortization resulting from the important investments made in innovation and digital transformation, in operating systems with reference to front-office solutions for the hyper-personalization of CONSOLIDATED FINANCIAL the customer experience, and the continuous implementation of the Group cloud ERP system. These were only partially offset by the transfer of some assets to the French subsidiary Amplifon France SAS following the closure process of the French branch. PROFIT BEFORE TAX (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Profit (loss) before tax 101,452 (6,138) 95,314 106,793 (12,433) 94,360 REPORT Profit before tax amounted to €95,314 thousands in 2024 compared to €94,360 thousands in 2023, an increase of €954 thousands. ON OPERATIONS In 2023 the profit before tax was impacted by €12,433 thousands in non-recurring costs, while in 2024 non-recurring costs amounted to €6,138, as described in the section related to the gross operating profit (EBITDA) they include the write-down of two investments in sectors not directly related to hearing aids amounting to €3,178 thousands. Net of these non-recurring items, profit before tax decreased by €5,338 thousands compared to 2023. The increase in market rates with respect to the 2023 average and the refinancing maturing portions of loans (which were subscribed in 2020-2021 with more favorable interest rates) at current rates caused costs to rise by €9,441 thousand, partially adjusted by the higher interest received on liquidity investments and by the net amount of interest recognized and collected by subsidiaries on the cash pooling and financing arrangements, and from higher dividends received from subsidiaries. AMPLIFON AT A GLANCE 84 --- ANNUAL REPORT 2024 NET PROFIT ATTRIBUTABLE TO THE GROUP (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Net profit 100,463 (5,283) 95,180 99,568 (8,941) 90,627 Net profit amounted to €95,180 thousands in 2024 compared to €90,627 thousands in 2023, due to the changes mentioned above. Taking into consideration only recurring activities the increase in net profit has amounted to €895 thousands. The small incidence of taxes was determined by the amount of dividends form subsidiaries that composed the profit before tax (around €90 millions) which have a tax rate of only 5%. Furthermore, the benefits related to the Patent box and other tax credits from R&D and Industry 4.0, further contributed to lower taxes. STATEMENTS Excluding the impact of dividends, non-deductible write-down of investments and benefits from Patent box, the tax rate would have reached 24%. CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 85 --- ANNUAL REPORT 2024 NON-CURRENT ASSETS NET INVESTED CAPITAL st Net invested capital came to €1,974,016 thousands at 31 December 2024, an increase (€ thousands) st of €33,376 thousands against the €1,940,640 thousands recorded at 31 December 2023. 12/31/2024 12/31/2023 Change Goodwill 8,025 8,025 - The change in net invested capital has been partially offset by the changes in working capital, the decrease of deferred tax credits and derivatives, and the increase of Other intangible fixed assets 79,078 80,712 (1,634) other long-term debt. Tangible assets 4,174 6,133 (1,959) Right-of-use assets 10,819 18,540 (7,721) Financial fixed assets 1,924,246 1,837,302 86,944 NET FINANCIAL POSITION Other non-current financial assets 8,980 3,519 5,461 STATEMENTS Non-current assets 2,035,322 1,954,231 81,091 CONSOLIDATED FINANCIAL (€ thousands) Non-current assets amounted to €2,035,322 thousands on 31 December 2024 versus 12/31/2024 12/31/2023 Change €1,945,231 thousands on 31 December 2023, an increase of €81,091 thousands Net medium and long-term financial mainly attributable to: 954,118 716,805 237,313 indebtedness Net short-term financial indebtedness 516,898 566,775 (49,877) • the capital increases and other cash contributions related to investments in the Cash and cash equivalents, other Chinese and American subsidiaries for a total of €73,988 thousands; financial activities and short-term (269,775) (112,933) (156,842) • an increase in financial fixed assets of €19,078 thousands following the acquisition financial receivables in January 2024 of 100% of the capital of the companies Audical S,A,S,, Centro Net financial indebtedness (A) 1,201,241 1,170,647 30,594 Auditivo del Uruguay S,A,S, and Ikako S,A, based in Uruguay; Lease liabilities – current portion 2,780 2,993 (213) • the decrease of the investment in the company Amplifon Cell – Malta for a total of €2,500 thousands as a result of its liquidation; Lease liabilities – non-current portion 9,226 18,139 (8,913) REPORT • the write-down of the investment in the company Pilot Blankenfelde Medizinisch- Lease liabilities (B) 12,006 21,132 (9,126) ON OPERATIONS Elektronische Geräte GmbH for €1,558 thousands; Total lease liabilities & net financial • the adjustment of the value of the Israeli shareholding following the revaluation of 1,213,247 1,191,779 21,468 indebtedness (A+B) (C) the related put and call option for €119 thousands and of the Chinese shareholding following the extinction of the related put and call option for €2,361 thousands; • the increase in other non-current financial assets following the subscription of Net financial debt, excluding lease liabilities, amounted to €1,201,241 thousand on 31 €7,243 thousands of tax credits deriving from superbonus discounts in accordance December 2024 and €1,170,647 thousand on 31 December 2023, with free cash flow with articles 119 and 121 of Legislative Decree 34/2020 purchased from a positive for €152,127 thousand (compared to €163,913 thousand in the prior year). The primary financial institution for a nominal value of €46,263 thousands against a significant net cash-out for acquisitions (€89,825 thousand versus €66,095 thousand in consideration of €43,149 thousands to be paid according to timescales in line with 2023), along with the dividends paid (€65,593 thousand versus €65,361 thousand in the the forecasts for the use of the credits themselves. In compliance with current comparison period), the purchase of treasury shares (€25,396 thousand, while no treasury tax legislation, these credits are used as compensation for the payment of taxes, shares were purchased in 2023), the commissions paid on loans and other variations in withholdings and contributions; financial assets (€1,905 thousand versus €2,914 in 2023) bring cash flow for the reporting • the decrease in right-of-use assets following the transfer of certain assets to the period to a negative €30,588 thousand versus positive €29,543 thousand in 2023. French subsidiary Amplifon France SAS, resulting from the process of closing the AMPLIFON French branch. AT A GLANCE 86 --- ANNUAL R E P ORT 2024 The financial structure was strengthened by a few important transactions in 2024: Short-term debt amounts to €516,898 thousand, with a decrease of €49,877 thousand which comprises primarily the short-term portion of long-term bank debt • In June 2024 Amplifon S.p.A. subscribed the last €50 million tranche of the €350 (€131,949 thousand), the hot money accounts used to support treasury activities million loan granted by the European Investment Bank (EIB) to support innovation and other short-term credit lines (€128,214 thousand), the interest payable on the and digitalization. €300 million of this loan had already been subscribed in 2023. Eurobond (€3,474 thousand) and on other bank loans (€2,358 thousand), financial • In September 2024 Amplifon S.p.A. signed a €50 million ESG-linked facility, backed debts towards subsidiaries of €274,721 and, lastly, the best estimate of the deferred by SACE’s Garanzia Futuro, which will be used to finance the international rollout of payments for acquisitions (€1,989 thousand). Amplifon’s new store format which aims to provide consumers with an immersive and highly personalized experience, thanks to the visual and digital elements Gross debt, excluding lease liabilities, amounted to €1,201,241 thousand on 31 integrated in an innovative and sustainable design. December 2024, €954,118 thousand of which long-term. The short-term portion • In October 2024 Amplifon S.p.A. signed a 5-year €200 million ESG linked credit amounted to €516,898 thousand which is partially offset by cash and cash equivalents facility with UniCredit and Cassa Depositi e Prestiti (CDP) comprising 2 tranches: and other current financial assets of €269,775 thousand. The latter, along with the €100 million granted by UniCredit, to support the Group’s development initiatives €480 million in unutilized irrevocable credit lines, the unutilized portion of the loan and €100 million granted by CDP which co-financed Amplifon’s investments in signed with the European Investment Bank amounting to €225 million and the €216 STATEMENTS innovation in Italy that are already supported by the above-mentioned loan million in other available uncommitted credit lines, provide ample headroom and with EIB. ensure the flexibility needed to take advantage of any opportunities to consolidate CONSOLIDATED FINANCIAL • In December 2024, Amplifon S.p.A. signed another €75 million ESG-linked credit and develop business that might materialize. facility with Mediobanca - Banca di Credito Finanziario to support the Group’s development initiatives. • During the year, 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 NET EQUITY were updated to reflect the KPIs and targets included in the new sustainability plan. (€ thousands) Long-term debt amounts to €954,118 thousand and includes the Eurobond debt (€350 million) and the other long-term bank debts (€604,118 thousand). The increase 12/31/2024 12/31/2023 Change in the period is attributable mainly to the new facilities stipulated during the year Net Equity 760,769 748,861 11,908 which were used to refinance short-term debt, net the reclassification of portions of long-term bank debt expiring in the next 12 months, from long-to short-term. REPORT Net equity amounted to €760,769 thousands on 31 December 2024 versus €748,861 ON OPERATIONS thousands on 31 December 2023, an increase of €11,908 thousands, explained by the net profit for the year and the recognition of Stock Grant plans net of the decrease explained by the payment of dividends and the share buyback for €25,396 thousands. AMPLIFON AT A GLANCE 87 --- ANNUAL REPORT 2024 The change in net financial debt of €30,588 thousands is attributable mainly to: RECLASSIFIED CONDENSED a) investing activities: - the net increase in property, plant and equipment and intangible assets of €27,248 CASH FLOW STATEMENT thousands, mainly attributable to investments in digitalization and information technology. In particular, the constant focus on the customer and the aim of increasing control over operational activities have driven a significant effort in (€ thousands) the development of technological infrastructures through the Symphony project, FY 2024 FY 2023 focused on offering highly personalized experiences to customers, and in the Operating profit (loss) (EBIT) 45,070 37,403 optimization of store systems and equipment to support the Amplifon Product Amortization, depreciation and write-down 32,996 30,751 Experience, which has redefined the entire Amplifon customer journey. At the Provisions, other non-monetary items and gain/losses same time, investments in back-office systems and operational processes have 10,031 24,627 from disposals continued. Net financial expenses (37,321) (30,780) - Capital increases of subsidiaries for €89,825 thousands, of which capital increases STATEMENTS and other cash contributions made to the shareholdings in the Chinese and Dividends collected 90,500 88,524 American subsidiaries for a total amount of €73,988 thousands, an increase of Taxes paid 823 (10,038) CONSOLIDATED FINANCIAL €19,078 thousands following the acquisition in January 2024 of 100% of the capital Changes in net working capital 39,947 60,284 of the companies Audical S.A.S., Centro Auditivo del Uruguay S.A.S. and Ikako S.A. Cash flow provided by (used in) operating 182,046 200,771 (Audical Group), a national leader in the hearing care sector based in Uruguay, activities before repayment of lease liabilities a benefit of €2,361 thousands for the failure to exercise the put and call option Repayment of lease liabilities (2,673) (2,086) on the company Soundbridge and a decrease of €880 thousands following the Cash flow provided by (used in) operating activities (A) 179,373 198,685 reimbursement received with the liquidation of the company Amplifon Cell, which Cash flow provided by (used in) operating took place on 30 December 2024. (27,248) (34,772) investing activities (B) Free Cash Flow (A+B) 152,125 163,913 b) operating activities: Net cash flow provided by (used in) equity investments/ capital (90,705) (75,426) - interest expense on financial indebtedness and other net financial charges of increases in related parties (C) €37,321 thousands, of which €636 thousands relative to imputed interest on (Purchase) sale of other investment and securities, liquidation 880 9,331 leases; of subsidiary (D) REPORT - dividends received from subsidiaries amounting to €90,500 thousands; Cash flow provided by (used in) investing activities (B+C+D) (117,073) (100,867) ON OPERATIONS - payment of principal portions of leasing debts for €2,673 thousands. Cash flow provided by (used in) operating activities 62,300 97,818 and investing activities c) financing activities: Other non-current assets (98) (18) - payment of €65,593 thousands in dividends; Hedging instruments and other changes in non-current assets - (1,483) - shares buyback amounting to €25,396 thousands; Fees paid on medium/long-term financing (1,807) (1,413) - payment of commissions on medium-long term financing for €1,807 thousands; Dividends distribution (65,593) (65,361) - other disbursements for non-recurring activities which amount to €98 thousands. Purchases of treasury shares (25,396) - Capital increases - - Net cash flow from the period (30,594) 29,543 Net financial indebtedness at the beginning (1,170,647) (1,200,190) of the period net of lease liabilities Change in net financial position (30,594) 29,543 Net financial indebtedness at the end AMPLIFON (1,201,241) (1,170,647) AT A GLANCE of the period net of lease liabilities 88 --- ANNUAL REPORT 2024 DATA CONTROLLER YEARLY REPORT ON CORPORATE th The Board of Directors, held on May 7 , 2019, appointed the Chief Executive Officer as representative of “Data Controller” for all processing of personal data relating to the GOVERNANCE AND OWNERSHIP purposes of Amplifon S.p.A., as well as for data processing of personal data deriving from the management of the world market and from the governance of the Group. STRUCTURE AS AT DECEMBER ST SUBSIDIARIES 31 2024 Amplifon S.p.A. detains a branch office, Amplifon Succursale de Paris, with offices (PURSUANT TO ART. 123-BIS TUF) at 9 Boulevard Romain Rolland, Paris. On October 30, 2024, the Board of Directors STATEMENTS of Amplifon S.p.A. decided to close this branch. The activities for the closure are The report on Corporate Governance and Ownership Structure is available on the ongoing, and it is expected that they will be completed in the first part of 2025. company’s website at https://corporate.amplifon.com/en/governance/governance- CONSOLIDATED FINANCIAL system/corporate-governance-reports. OUTLOOK In 2024 Amplifon S.p.A. will also continue with the direction and management of the Group, as well as its role in centralizing procurement for the whole Group. The operating performance of the Company is connected to the Group expectations, where growth results are anticipated. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 89 --- ANNUAL REPORT 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS 2024 CONSOLIDATED SUSTAINABILITY STATEMENT ST AS AT DECEMBER 31 2024 AMPLIFON AT A GLANCE 90 --- ANNUAL REPORT 2024 INDEX 2024 CONSOLIDATED SUSTAINABILITY STATEMENT > GENERAL DISCLOSURES (ESRS 2) 92 > SOCIAL INFORMATION 158 • METHODOLOGICAL NOTE 92 • ESRS S1 – OWN WORKFORCE 158 • SUSTAINABILITY GOVERNANCE 94 • ESRS S2 – WORKERS IN THE VALUE CHAIN 178 • SUSTAINABILITY STRATEGY 103 • ESRS S4 – CONSUMERS AND END-USERS 182 • VALUE CHAIN 107 • ENTITY-SPECIFIC SOCIAL DISCLOSURE 189 • AMPLIFON’S DOUBLE MATERIALITY 120 • PROCESS FOR IDENTIFYING AND ASSESSING > GOVERNANCE INFORMATION 195 STATEMENTS IMPACTS, RISKS, AND OPPORTUNITIES 130 • POLICIES, ACTIONS, METRICS AND TARGETS 133 • ESRS G1 – BUSINESS CONDUCT 195 CONSOLIDATED FINANCIAL • ENTITY-SPECIFIC GOVERNANCE DISCLOSURE 199 > ENVIRONMENTAL INFORMATION 139 > ANNEX 202 • EU TAXONOMY 139 • ESRS E1 – CLIMATE CHANGE 147 REPORT ON OPERATIONS AMPLIFON AT A GLANCE 91 --- ANNUAL REPORT 2024 GENERAL VALUE CHAIN ESTIMATION The definition of the contents of the 2024 Sustainability Statement involved key DISCLOSURES corporate functions, which worked in close collaboration under the coordination of the Investor Relations & Sustainability function (hereinafter also “IR & Sustainability). Performance indicators were selected based on the double materiality assessment (ESRS 2) and collected annually through a structured process of data collection, aggregation, and transmission at Group level. This process is governed by a specific procedure for drafting and approving the Sustainability Statement, which standardises the METHODOLOGICAL NOTE collection and validation of data. The process is managed through dedicated IT platforms for the collection and consolidation of sustainability data. For the sake of accurately representing performance and ensuring the reliability of the data, the [BP-1] GENERAL BASIS FOR PREPARATION use of estimates has been minimised as much as possible. Where estimates are STATEMENTS OF SUSTAINABILITY STATEMENTS present, they are based on the best available methodologies and are duly indicated. In particular, it is specified that Scope 1, 2, and 3 emissions have included the use of CONSOLIDATED FINANCIAL The Consolidated Sustainability Statement (hereinafter also “Sustainability estimations. Statement”, “Statement”) of the Amplifon Group (hereinafter also “Group” or “Amplifon”) has been prepared on a consolidated basis and includes in its scope SOURCES OF ESTIMATION the parent company Amplifon S.p.A. (hereinafter also “Company”) and all legal entities consolidated in the financial statements, with the exclusion of legal entities AND OUTCOME UNCERTAINTY consolidated using the equity method, as they are joint ventures and associates over which the Group has no operational control. Amplifon has not identified any quantitative metrics and/or monetary amounts The information contained in this document is the result of the double materiality subject to a high level of measurement uncertainty. assessment, which identifies the relevant impacts, risks, and opportunities (hereinafter also “IROs”) for Amplifon. Details on the double materiality analysis can CHANGES IN PREPARATION OR PRESENTATION be found in “Amplifon’s double materiality” paragraph of this chapter. The definition REPORT and assessment of IROs have taken into account the Group’s own operations, the OF SUSTAINABILITY INFORMATION ON OPERATIONS upstream and downstream value chain in which the Group operates, and its business relationships. Amplifon does not omit information relating to intellectual property, know-how, or the outcomes of innovation. Regarding changes in preparation of sustainability information, it should be noted that the 2023 carbon footprint has been revised following the refinement of the [BP-2] DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES calculation methodology for the various categories that make up Scope 3 emissions. The affected categories are: TIME HORIZONS • 3.1 Purchased goods and services; • 3.2 Capital goods; The definition of time horizons adopted by Amplifon and its application reflect the • 3.4 Upstream transportation and distribution; practices historically adopted within the company’s Enterprise Risk Management • 3.6 Business travel. system, in particular, they are defined as follows: • Short-term = 1 year; AMPLIFON • Medium-term = 1-3 years; AT A GLANCE • Long-term = 3-10 years. 92 --- ANNUAL REPORT 2024 Furthermore, it should be noted that the Sustainability Plan has been slightly revised in some of its targets and supplemented with three new targets. For more details, INCORPORATION BY REFERENCE please refer to the “Sustainability Strategy” paragraph of this chapter. Some elements of the reporting also refer to other sections of this document, more details are given below: REPORTING ERRORS IN PRIOR PERIODS • Explanatory notes 4 “Intangible fixed assets with useful life“, 5 “Property, plant This document does not report any changes due to material reporting errors in and equipment” and 6 “Right-of-use assets” within the Consolidated Financial previous reference periods. Statements and Related Notes, which show the values of changes in investments in tangible and intangible assets and assets with right of use, including those arising from business combinations; DISCLOSURES STEMMING FROM • Explanatory Note 29 “Revenues from Sales and Services” within the Consolidated Financial Statements and Related Notes section, which shows the Group’s OTHER LEGISLATION OR GENERALLY revenues; STATEMENTS • Explanatory Note 30 “Operating Costs” within the section Consolidated Financial ACCEPTED SUSTAINABILITY REPORTING Statements and Related Notes, which shows the operating costs for the year 2024; CONSOLIDATED FINANCIAL • Explanatory Note 44 section “Segment Information” within the Consolidated PRONOUNCEMENTS Financial Statements and Related Notes, which shows the Group’s revenue broken down by region; The information contained within this document is reported in accordance with • Section “Risk Management” within the Management Report for information on the European Sustainability Reporting Standards (hereinafter also “ESRS”). For further Group’s ERM methodology. details on the requirements stemming from other European legislations, please refer to the “List of datapoints in cross-cutting and topical standards that derive from other EU legislation” section. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 93 --- ANNUAL REPORT 2024 SUSTAINABILITY GOVERNANCE [GOV-1] THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES Amplifon’s Corporate Governance structure is based on the principles outlined in the Italian Corporate Governance Code of January 2020, promoted by the Corporate Governance Committee of Borsa Italiana. The Company has adhered to the Code since its first version in 2001, promptly aligning with subsequent updates. The Board of 1 Directors of Amplifon S.p.A. (hereinafter also “BoD” or “Board”), is characterised by a well-balanced mix of professional backgrounds and competencies, including business leaders, executives from other industries, financial experts, and professionals with international experience, as well as professionals with experience in hearing care and Environmental, Social and Governance (hereinafter also “ESG”) matters. Furthermore, more than half of the Board members are women, and the average age of directors has significantly decreased from 72 in 2011 to 62 today, with the youngest director being 41 and the oldest 76. Finally, approximately 80% of the Board consists of independent directors, with only one executive director - the Chief Executive Officer. In 2024, the Board of Directors met six times, with an attendance rate of 98.1%. The average meeting duration was two hours and forty-five minutes. STATEMENTS Year of first 2 3 4 Role Name Executive Independent RCSC CRN Gender Attendance rate Competencies appointment CONSOLIDATED FINANCIAL Chairperson Susan Carol Holland F 1988 100% Chief Executive Enrico Vita M 2015 100% Officer Director Maurizio Costa M 2007 100% Director Veronica Diquattro F 2022 100% Director Laura Donnini F 2016 100% Director Maria Patrizia Grieco F 2016 83,3% 5 Director Lorenza Morandini F 2022 100% REPORT Director Lorenzo Pozza M 2016 100% ON OPERATIONS Director Giovanni Tamburi M 2013 100% Business development Finance ESG and climate change HR and organisational change and strategic planning Risk, crisis and audit management IT, digital and cyber Governance, legal and regulatory International context 1. The Board of Directors was appointed by the Shareholders’ Meeting on 22 April 2022 and will remain in office until the approval of the financial statements as of 31 December 2024. The CVs of the BoD members are available on the Company’s corporate website. 2. Directors that declare they qualify as independent in accordance with current regulations and the Italian Corporate Governance Code (Codice di Corporate Governance di Borsa Italiana). AMPLIFON AT A GLANCE 3. RCSC: Members of the Risk, Control and Sustainability Committee. 4. CRN: Members of the Remuneration and Appointment Committee. 5. Directors appointed by the the minority list and independent pursuant to the Italian Corporate Governance Code (Borsa Italiana). 94 --- ANNUAL REPORT 2024 Amplifon’s Board of Directors, appointed by the Shareholders’ Meeting on 22 April RELATED-PARTY TRANSACTIONS COMMITTEE 2022, consists of a total of 9 members, of whom: 1 is an executive director (11.1%), 8 Role Name are non-executive directors (88.9%), 2 are non-independent directors (22.2%) and 7 are independent directors (77.8%). Demonstrating the Group’s strong commitment Chairperson Laura Donnini 6 to diversity, the BoD includes four men (44.4%) and five women (55.6%) . The Board Member Maurizio Costa of Statutory Advisors, on the other hand, is composed of one man and two women, Member Lorenza Morandini for a total of three members. Furthermore, within the Board of Directors, the Chief Executive Officer and the members of three committees have been appointed to support its activities: Risk, Control and Sustainability Committee (hereinafter also SUPERVISORY BODY “RCSC”), Remuneration and Appointment Committee (hereinafter also “RAC”) and Related-Party Transactions Committee. Role Name Chairperson Lorenzo Pozza 7 BOARD OF STATUTORY ADVISORS Member Laura Donnini STATEMENTS Role Name Laura Ferrara Member (Chief Internal Audit & Risk Management Officer) CONSOLIDATED FINANCIAL 8 Chairperson Gabriella Chersicla Standing Patrizia Arienti Standing Alfredo Malguzzi EXECUTIVE RESPONSIBLE FOR FINANCIAL 8 AND SUSTAINABILITY REPORTING Alternate Mario Stella Richter Alternate Riccardo Foglia Taverna Name Gabriele Galli REMUNERATION AND APPOINTMENT COMMITTEE Role Name Attendance rate SECRETARY OF THE BOARD OF DIRECTORS Chairperson Maurizio Costa 100% Name REPORT Member Susan Carol Holland 100% Federico Dal Poz ON OPERATIONS Member Veronica Diquattro 100% Member Maria Patrizia Grieco 100% EXTERNAL AUDITORS Firm RISK, CONTROL AND SUSTAINABILITY COMMITTEE KPMG S.p.A. Role Name Attendance rate Chairperson Lorenzo Pozza 100% LEAD INDEPENDENT DIRECTOR Member Susan Carol Holland 60% Member Laura Donnini 80% Name Member Lorenza Morandini 100% Lorenzo Pozza AMPLIFON AT A GLANCE 6. The gender diversity within the Board of Directors, calculated as the average ratio of female to male board members, is 1.25. 7. The Board of Statutory Advisors was appointed by the Shareholders’ Meeting on 24 April 2024 and will remain in office until the approval of the financial statements as of 31 December 2026. 8. Member of the supervisory body nominated from the minority list. 95 --- ANNUAL REPORT 2024 In line with the Italian Corporate Governance model, Amplifon does not provide SHAREHOLDERS’ MEETING for formal and direct employee or worker representation within its administrative, management, and supervisory bodies. This reflects a governance structure in which The Shareholders’ Meeting (hereinafter also “Meeting”) has the authority, in an workers involvement is regulated through other mechanisms, such as trade unions, ordinary session, to approve the financial statements, appoint and dismiss Directors company trade union representatives (RSA), or unitary trade union representatives and Statutory Auditors, determine their remuneration, and deliberate on matters (RSU), rather than through direct presence on boards or decision-making bodies. within its competence as provided by law. In extraordinary sessions, the Shareholders’ Meeting resolves on amendments to the Articles of Association and other matters Amplifon’s Board of Directors possesses adequate and diverse experience and falling within its competence under legal provisions. competencies to effectively fulfil its role in overseeing the processes, controls, and governance procedures used to monitor, manage, and control impacts, risks, and The Company’s Articles of Association stipulate that, unless otherwise resolved opportunities. A detailed analysis of the competencies of the Board of Directors by the Shareholders’ Meeting at the time of appointment, the Board of Directors members is provided through the charts below, illustrating their areas of expertise is granted, within the limits established by law, the broadest powers of ordinary and personal skills, ensuring transparency and completeness in assessing their and extraordinary administration and management, as well as full disposal powers suitability to manage the Company’s strategic and operational challenges. STATEMENTS without limitation. CONSOLIDATED FINANCIAL 9 BOD MEMBERS BY AREA OF EXPERTISE ENHANCED INCREASED VOTING RIGHTS Hearing care 100% Following the adoption of Law 116/2014, which introduced the principle of increased Healthcare 100% voting rights into the Italian legal framework, on 29 January 2015, the Extraordinary Industrial 78% Shareholders’ Meeting amended the Articles of Association to allow shareholders to Consumer Discretionary 67% request two votes per each share held continuously for at least 24 months from the Financials 56% date of registration in the dedicated shareholder register prepared by the Company. Information Technology 44% Real Estate 33% In line with the decision taken in 2015 and following the entry into force of Italian Consumer Staples 33% Law No. 21/2024 (the so-called “Capital Law”), on 30 April 2024, the Extraordinary Shareholders’ Meeting adopted the enhanced increased voting rights mechanism to Telco 22% REPORT encourage a capital structure more supportive of the Group’s further growth path in Utilities 22% ON OPERATIONS the long-term at a global level while more effectively and incisively rewarding long- Communication Services 22% term shareholders. This mechanism allows shareholders to accrue an increased Materials 11% voting right, starting with two votes per share if the share has been held continuously Energy 11% for at least 24 months from the date of registration in the Company’s shareholder register. An additional voting right is accrued - resulting in a third vote per share - after a further year, with subsequent voting rights (i.e., fourth, fifth vote, and so on) up to a maximum of 10 votes per share, in compliance with applicable laws and regulations. As of 31 December 2024, 95,592,712 shares (representing 59.38% of the Company’s voting capital) were registered in the dedicated list with two voting rights. Of these, 95,105,392 shares (59.08% of the voting capital) were held by the majority shareholder, Ampliter S.r.l.. AMPLIFON AT A GLANCE 9. The areas of expertise have been identified based on the MSCI Global Industry Classification Standard: http://www.msci.com/our-solutions/indexes/gics. 96 --- ANNUAL REPORT 2024 BOD MEMBERS BY COMPETENCY part of its support activities for the BoD, is responsible for overseeing sustainability- related activities and the management of ESG topics. Moreover, this commitment Business development and 100% is clearly expressed and integrated within the Group’s policies, which establish the strategic planning strategic guidelines for the responsible and sustainable management of corporate International context 100% activities. Financials 89% The Board of Directors approves the Sustainability Statement, ensuring that it is HR and organisational 78% prepared and published in compliance with Italian Legislative Decree 125/24. The change Governance, legal & Group policies, including the Sustainability Policy (which formalises the four areas 67% regulatory of commitment for the Group), play a key role in guiding its sustainability strategy. Risk, crisis and audit 56% Furthermore, following the review and validation of the ESG strategic guidelines management (including the Sustainability Plan) by the RCSC and the BoD, the Group ensures ESG and climate change 56% oversight of the impacts, risks, and opportunities across all areas of sustainability. IT, digital & cyber 33% Supporting the BoD, the Risk, Control and Sustainability Committee is responsible STATEMENTS for supervising internal control and risk management matters, including ESG-related issues affecting the Company’s operations and stakeholder interactions. Additionally, CONSOLIDATED FINANCIAL The administrative, management, and supervisory bodies possess, or where the RCSC monitors the adequacy and effectiveness of the internal control system. necessary update, the necessary expertise to effectively address sustainability- related topics. In particular, the Board of Directors has direct sustainability expertise, with members bringing specific experience gained through dedicated training [ESRS G1 - GOV-1] THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT programmes. Over the past three years, the members of the Board of Directors AND SUPERVISORY BODIES have participated to induction sessions on sustainability topics to gain deeper insights into the Group’s ESG-related risks and sustainability reporting. As per Amplifon has a Code of Ethics that, in line with its corporate culture, defines the standard practice, a dedicated discussion on the Sustainability Plan was conducted, principles, values, and rules of conduct that guide the Group and its employees. The ensuring a thorough understanding of its objectives and targets. These activities are Code of Ethics is distributed across all the countries where the Group operates to complemented by dedicated sessions on corporate policies (e.g., DEIB Policy, Supplier ensure its local dissemination and effective implementation. Its provisions apply to Code of Conduct, Whistleblowing Policy, etc.) when updated, ensuring a coherent and all employees and all Amplifon companies, as well as to third parties whose actions structured approach. This enables the members of the administrative, management, are attributable to the Group. REPORT and supervisory bodies to gain not only a deep understanding of ESG principles ON OPERATIONS and best practices, but also familiarity with relevant corporate policies. The synergy The Group’s Code of Ethics is approved by the Board of Directors, which promotes between these efforts ensures a comprehensive vision and effective management of its implementation and compliance, ensuring alignment with industry best practices. sustainability-related impacts, risks, and opportunities. The Board of Directors plays a central role in ensuring that the Company’s conduct adheres to the principles of ethics, honesty, integrity, fairness, and good faith, The monitoring of sustainability impacts, risks, and opportunities is also ensured fostering a corporate culture based on compliance with applicable regulations and through the Sustainability Plan, which is reviewed and monitored in dedicated best governance practices. For more details on the Board of Directors responsibilities sessions by the responsible Committee. This role is assigned to the RCSC, which, as regarding corporate conduct, please refer to the previous section. AMPLIFON AT A GLANCE 97 --- ANNUAL REPORT 2 0 2 4 [GOV-2] INFORMATION PROVIDED TO AND SUSTAINABILITY MATTERS Group. In the Enterprise Risk Management process, all material ESG topics, including ADDRESSED BY THE UNDERTAKING’S ADMINISTRATIVE, MANAGEMENT those related to environmental aspects and climate change, were assessed with AND SUPERVISORY BODIES key stakeholders in terms of potential risks and opportunities identified, as well as proposed management and mitigation strategies; material risks and opportunities To enhance awareness of ESG topics and risks, regular updates on impacts, risks, have been presented to the RCSC and the BoD. opportunities, and sustainability initiatives are provided, if necessary, during meetings of the Board of Directors and the Risk, Control and Sustainability Committee, which The Board of Directors members annually address specific sustainability topics take place five times a year. These updates include insights into efforts related to that have emerged as relevant, through dedicated sessions allowing for in-depth climate change mitigation and adaptation. At these governance meetings, reports discussions on related impacts, risks, and opportunities. These meetings provide on the activies performed in preparation for the Sustainability Statement are an opportunity to review and validate corporate strategies, such as Sustainability presented, including developments (such as the double materiality analysis, which Plan updates and the definition of ESG objectives and targets, as well as ensure was also validated by the BoD in 2024). Updates are shared on new projects and compliance with the latest regulatory requirements for climate-related disclosures key milestones achieved in relation to the objectives set out in the Sustainability and sustainability reporting. Furthermore, the Board, in addition to approving Plan (for further details, see the “Sustainability Strategy” paragraph of this chapter). material impacts, risks and opportunities (for more information, please refer to the STATEMENTS Communication and engagement activities are also discussed, covering interactions paragraph on “Amplifon’s double materiality” within this chapter), is also responsible with the financial community, ESG rating agencies, and all relevant stakeholders. The for assessing and approving any updates to corporate policies related to sustainability CONSOLIDATED FINANCIAL Internal Control and Risk Management System (ICRMS) consists of rules, procedures, governance, thus strengthening its role in overseeing the Group’s commitment to and organisational structures designed to ensure sound corporate management by these issues. facilitating an effective risk identification and management process. Through the adoption of the Enterprise Risk Management (hereinafter also “ERM”) model, Amplifon promotes a structured and systematic process of risk assessment, monitoring and reporting, aimed at the correct management of the main risks of the Group. This activity is coordinated and facilitated by the Group Risk Management function, which provides support to the internal stakeholders involved (Corporate Executive Officers, Executive Vice Presidents of the three Regions, Country General Managers and their respective local management teams, and selected Directors). The process takes place annually, with a semi-annual review to incorporate any updates on potential risks to which the organisation may be exposed, ensuring a structured identification, REPORT assessment, management, and monitoring of key risks. The resulting Group Top ON OPERATIONS Risks map is presented biannually to the RCSC (June/December) and to the BoD, first as a note from the RCSC Chairperson in June and then as a specific agenda item in December. The monitoring of specific ESG goals included in the Sustainability plan is delegated to the BoD, which ensures effective operational implementation aligned with corporate strategies. Management continuously verifies progress and results within their respective areas of responsibility. The administrative and supervisory bodies play a broader, more strategic oversight role, monitoring the achievement of the Company’s overall objectives and ensuring that all activities align with its vision, mission, and values. In addition, these governance bodies approve and/or oversee policies designed to address emerging impacts, risks, and opportunities, such as the Sustainability Policy, the Environmental Policy, the DEIB Policy, and the Code of Ethics, which are explored in greater detail in the “Policies, actions, metrics and targets” paragraph of this chapter. During the definition of the Sustainability Plan, the Global Investor Relations & Sustainability function engaged Top Management AMPLIFON in open discussions on key ESG opportunities, evaluating strategic priorities for the AT A GLANCE 98 --- ANNUAL REPORT 2024 [GOV-3] INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN • Ethical Conduct and Environmental Responsibility: increasing the adoption and INCENTIVE SCHEMES use of rechargeable hearing aids, saving millions of disposable batteries annually. Since 2020, Amplifon has sought to ensure the alignment of the Remuneration Policy with Amplifon’s Sustainable Value Sharing Plan is 50% linked to achieving these four the Group’s sustainability strategy, by setting the main objectives of the Sustainability ESG objectives, accounting for 16% of the total target pay mix for Amplifon’s Chief Plan within the company’s performance development review (the so-called “ PDR “). and Executive Officer. Given that 27% of the target pay mix consists of fixed remuneration, short-term variable incentive (MBO) schemes fortop management(CEO/General Manager ESG metrics represent 11% of the company’s overall incentive system. and Executives with Strategic Responsibilities). Under the MBO incentive mechanism, the bonus awarded based on performance target achievement is subject to a multiplier or demultiplier, depending on the attainment of individual objectives outlined in the PDR [ESRS E1 - GOV-3] INTEGRATION OF SUSTAINABILITY-RELATED Scorecard. Each individual’s objectives include at least one sustainability-related goal, PERFORMANCE IN INCENTIVE SCHEMES ensuring full alignment between short-term incentives and the Group’s sustainability objectives. Further demonstrating Amplifon’s increasing focus on ESG issues, in 2022 the It should be noted that the incentive system includes an environmental sustainability- company launched a new performance-based remuneration scheme, the Sustainable related target under the “Ethical Conduct and Environmental Responsibility” pillar, STATEMENTS Value Sharing Plan. Initially introduced for the Chief Executive Officer/General Manager, specifically aimed at annual battery savings. For further details refer to the previous the plan was extended in 2023 to Executives with Strategic Responsibilities and selected section. However, at present, there are no specific climate-related considerations CONSOLIDATED FINANCIAL key personnel, reinforcing a strong commitment to achieving ESG targets. In every within the remuneration structure for members of the administrative, management, country where Amplifon operates, short-term incentives are also in place for employees and supervisory bodies. outside of Top Management, designed to reward individual and collective contributions towards achieving company objectives. Additionally, sales incentives are provided for [GOV-4] STATEMENT ON DUE DILIGENCE employees working in stores and sales structures, aimed at driving performance and encouraging the achievement of commercial targets. In preparing its Sustainability Statement, Amplifon Group has initiated a process of data collection and analysis regarding its due diligence practices (hereinafter “due The development of Amplifon’s Remuneration Policy involves multiple stakeholders, diligence”), although this process has not yet been formally structured. In relation in line with the regulatory requirements applicable to publicly listed companies. Every to supply chain due diligence, Amplifon has already adopted a structured and aspect of the incentive system is reviewed by the Remuneration and Appointment cyclical approach to prevent and mitigate significant negative impacts on workers Committee, which assesses its robustness before submitting it for approval by the within its value chain. This process is ongoing, involving continuous monitoring of Board of Directors. Certain equity-based incentive plans also require approval from the supplier performance and compliance with the Supplier Code of Conduct, fostering REPORT Amplifon S.p.A. Shareholders’ Meeting. improvements throughout the supply chain. This approach ensures that preventing ON OPERATIONS negative impacts is an integral part of the Group’s procurement and value chain For the 2024-2026 cycle of the Sustainable Value Sharing Plan 2022-2027, ESG management strategy. performance is assessed based on four key metrics, each corresponding to a pillar of the Sustainability Plan: However, Amplifon has not yet implemented an explicitly defined policy dedicated to this activity. The initiatives and projects outlined in the table below provide a • Product and Service Stewardship: providing complete free hearing tests, fundamental contribution to building a framework for managing the environmental, generating over €600 million in savings for customers and prospects between 2024 social, and governance impacts the Group may generate or is already generating. and 2026; These initial steps lay the foundation for the development of a more structured • People Empowerment: achieving Top Employer Global certification; strategy in the near future. • Community Impact: securing at least 5,000 employee participations in the Amplifon Foundation’s volunteering initiatives and Social Ambassadorship programmes; AMPLIFON AT A GLANCE 99 --- ANNUAL REPORT 2024 ELEMENTS OF DUE DILIGENCE A) EMBEDDING DUE DILIGENCE IN GOVERNANCE, STRATEGY B) ENGAGING WITH AFFECTED STAKEHOLDERS IN ALL AND BUSINESS MODEL KEY STEPS OF THE DUE DILIGENCE As a foundation for integrating social and environmental responsibility, Amplifon For Amplifon, stakeholder engagement represents an opportunity for dialogue has adopted a range of policies that reflect its commitment to sustainability. These and collaboration. Specifically, to identify and manage the key aspects relevant to include: the Group, Amplifon employs various methods to maintain active communication • Sustainability Policy with its stakeholders. • Code of Ethics • Stakeholder engagement process: • Supplier Code of Conduct - The Group developed a structured, multi-year Stakeholder Engagement STATEMENTS • Whistleblowing Policy Plan, which facilitates a rotational approach to involving a broad range of • Anti-corruption Policy stakeholders through interactive dialogue. CONSOLIDATED FINANCIAL • Environmental Policy - This initiative aims to deepen stakeholder engagement and integrate their • DEIB (Diversity, Equity, Inclusion, and Belonging) Policy perspectives into assessments of human rights and environmental impacts. • As part of the impact assessment within the double materiality assessment In addition, due diligence governance activities are embedded within and defined process, several stakeholder categories were consulted in 2024 to identify by the following processes: significant impacts caused by the organisation; • Through the Risk Control and Sustainability Committee and its role in supporting • Amplifon’s Whistleblowing Channel provides an accessible and secure the BoD in identifying, considering, and managing the impacts generated by the communication platform for all stakeholders, enabling them to report concerns Group’s activities. of various kinds; • The double materiality assessment, which evaluates impacts, risks, and • Recipients of the Group Code of Conduct are encouraged to play an active role opportunities and serves as an input for potential modifications to the business in reporting any violations of its provisions. To support this, a dedicated email model. address (scoc@amplifon.com) is available, ensuring a transparent working environment that complies with regulatory requirements. REPORT ON OPERATIONS • Paragraph “Policies, actions, metrics and targets” of this chapter. • Paragraph “Sustainability Strategy” of this chapter. • Paragraph “Sustainability Governance” of this chapter. • Paragraph “Amplifon’s double materiality” of this chapter. • Paragraph “Amplifon’s double materiality” of this chapter. • Paragraph “Policies, actions, metrics and targets” of this chapter. AMPLIFON AT A GLANCE 100 --- ANNUAL REPORT 2024 ELEMENTS OF DUE DILIGENCE C) IDENTIFYING AND ASSESSING D) TAKING ACTION TO ADDRESS THOSE ADVERSE IMPACTS NEGATIVE IMPACTS • The Group’s double materiality process has placed particular emphasis on the • The Sustainability Plan serves as a key tool for effectively addressing the Group’s assessment and prioritisation of impacts, aiming to identify those most relevant negative impacts, outlining targeted actions to reduce its environmental to both the organisation and its stakeholders. footprint, promote social responsibility, and ensure strong governance. • Product non-compliance monitoring serves as a key mechanism for identifying • Where necessary, the Group Whistleblowing procedure provides for the carrying potential negative impacts arising from the use and commercialisation of the out of specific investigation activities, which may eventually result in corrective Group’s products. This system allows for the early detection of non-compliance or disciplinary measures. STATEMENTS issues that could pose risks to safety, quality, and the environment. • The supplier due diligence process concerning ESG issues includes a set of specific • The Group Whistleblowing Channels are a crucial resource for receiving reports actions aimed at resolving identified concerns. It is important to note that such CONSOLIDATED FINANCIAL from the Group’s stakeholders. These reports may relate to potential or actual actions are undertaken only when gaps are detected in the self-assessment negative impacts attributable to the scope of Whistleblowing channels, which procedure, i.e. the questionnaire completed by the supplier. These gaps may Amplifon causes as a result of its activities. relate to deficiencies in the practices adopted or insufficient documentation • The supplier due diligence process, specifically in relation to ESG criteria, provided to support the required evidence. offers a detailed analysis of impacts within the Group’s value chain (upstream). • The Group adopts specific actions, aimed at mitigating negative impacts and Amplifon utilises the EcoVadis platform to evaluate suppliers based on social, enhancing positive ones, in the respective sections of this document. environmental, and ethical criteria, classifying them into low, medium, or high- risk categories. Risk assessment considers factors such as industry sector, product category, geography, and the criticality of the service or product for Amplifon. Where necessary, additional insights are gathered directly from suppliers regarding their ESG practices. Following a risk-based approach, an ESG self-assessment questionnaire is required to conduct a more in-depth due REPORT diligence process for suppliers identified as medium or high risk, based on their ON OPERATIONS geography and sector. • Paragraph “Amplifon’s double materiality” of this chapter. • Paragraph “Sustainability Governance” of this chapter. • Paragraph “Sustainability Governance” of this chapter. • Paragraph “Policies, actions, metrics and targets” of this chapter. • Paragraph “Policies, actions, metrics and targets” of this chapter. • Paragraph “Actions, metrics and targets” of chapter “ESRS S1 – Own workforce”, • Paragraph “Actions, metrics and targets” of chapter “ESRS S2 – Workers in the chapter “ESRS S2 – Workers in the value chain”, chapter “ESRS S4 – Consumers value chain”. and end-users” and chapter “ESRS G1 – Business conduct”. AMPLIFON AT A GLANCE 101 --- ANNUAL REPORT 2024 [GOV-5] RISK MANAGEMENT AND INTERNAL CONTROLS OVER THE ELEMENTS OF DUE DILIGENCE SUSTAINABILITY REPORTING E) TRACKING THE EFFECTIVENESS OF THESE EFFORTS Amplifon’s Internal Control and Risk Management System is designed to ensure AND COMMUNICATING the presence of structured safeguards for mitigating potential risks related to the Sustainability Statement. The Global Accounting and Compliance function plays a central role in this system, with its key responsibilities outlined in the “Internal Control and Risk Management System – Risk Control and Sustainability Committee” section of • The Sustainability Plan and the achievement of its targets are continuously the Corporate Governance and Ownership Structure Report. This document details monitored. the processes and mechanisms used to manage risks related to the preparation of • The Group’s Whistleblowing procedure provides for the preparation of a half- the Sustainability Statement. To support this system, an annual scoping exercise is yearly report, or timely if necessary, to the Risk Control and Sustainability conducted to identify the Group entities where the control model should be applied, Committee and the Supervisory Body – for reports relevant for the purposes of considering business developments and consolidation scope. Italian Legislative Decree 231/01 – on the process of handling reports and the STATEMENTS status of reports received. In this context, Risk Control Matrices (hereinafter also “RCM”) are implemented to • The supplier due diligence process related to ESG topics incorporates a dedicated oversee the monitoring process of the Sustainability Statement for the individual CONSOLIDATED FINANCIAL monitoring system to ensure that, in cases where suppliers are classified as Disclosure Requirements. These matrices define key controls linked to identified medium-to-high risk, the actions outlined in the action plan are implemented risks, ensuring the effectiveness and adequacy of mitigation measures. within the established timeframe. This contributes to enhancing the supplier’s overall ESG performance. Through an in-depth analysis of data collection flows underlying reporting obligations, • The Group defines specific metrics and targets, which are discussed in the the Group has formally defined risk categories and corresponding control measures respective sections of this document, to ensure that the actions taken are to mitigate them. These measures outline the nature, frequency, and responsible measurable, effective and aligned with the objectives set. parties for their execution. For each identified risk, the Risk Control Matrix defines mitigation strategies and corresponding controls, supported by an ongoing audit plan and periodic testing conducted by the Global Accounting and Compliance function. These assessments evaluate the control structure, identify potential gaps, and propose corrective REPORT actions, such as implementing compensatory controls or modifying operational ON OPERATIONS • Paragraph “Sustainability Governance” of this chapter. processes, to ensure effective oversight of critical areas. • Paragraph “Policies, actions, metrics and targets” of this chapter. • Paragraph “Actions, metrics and targets” of chapter “ESRS S1 – Own workforce”, The integration of internal controls into business processes is further strengthened chapter “ESRS S2 – Workers in the value chain”, chapter “ESRS S4 – Consumers through the semi-annual reporting of key findings and corrective actions to the Risk and end-users” and chapter “ESRS G1 – Business conduct”. Control and Sustainability Committee and the Board of Directors. This reporting process enables the monitoring of the effectiveness of the Internal Control System, ensuring that governance bodies receive timely and accurate information. Beyond compliance with regulatory requirements and corporate governance principles, this approach supports alignment with sustainability objectives, providing a solid foundation for integrated risk management and transparent reporting. AMPLIFON AT A GLANCE 102 --- ANNUAL REPORT 2024 SUSTAINABILITY STRATEGY [SBM-1] STRATEGY, BUSINESS MODEL AND VALUE CHAIN EMPLOYEE DISTRIBUTION BY GEOGRAPHICAL AREA THE GROUP’S MARKETS AND CUSTOMERS Amplifon provides hearing care products and services to individuals affected by hearing loss, leveraging the expertise of hearing care professionals across its extensive distribution network in every market where it operates. The Group operates through three regional structures: STATEMENTS • EMEA CONSOLIDATED FINANCIAL • Americas • APAC Amplifon is present in 26 countries with a network of over 10,000 points of sale, including: Italy, Spain, France, Germany, the Netherlands, Switzerland, Belgium, Portugal, the United Kingdom, Hungary, Poland, Israel, Egypt, the United States, Canada, Argentina, Chile, Ecuador, Panama, Colombia, Mexico, Uruguay, Australia, New Zealand, India, and China. 10 At a global level, over 1.5 billion people experience some degree of hearing loss, with 430 million requiring rehabilitation. With increasing life expectancy and rising noise exposure, the number of people affected is projected to grow significantly, REPORT potentially reaching 700 million by 2050. Amplifon is therefore expanding its efforts ON OPERATIONS to raise awareness of hearing health across all age groups. At the same time, it is important to note that most of Amplifon’s customers experience moderate to severe AMERICAS EMEA CORPORATE APAC hearing loss, according to the hearing impairment classification established by the 2,449 8,499 361 3,761 World Health Organization (hereinafter also “WHO”). The Group relies on more than 8,200 highly qualified specialists to provide personalised solutions aimed at enhancing the hearing health and overall quality of life of its customers. TOTAL GROUP 15,070 AMPLIFON AT A GLANCE 10. Source: World Health Organization. 103 --- ANNUAL REPORT 2024 packaging has already been completed in 5 countries: Italy, Spain, Germany, New THE GROUP’S PRODUCTS AND SERVICES Zealand and Australia. Amplifon provides hearing care products and services for individuals experiencing Ampli-Care hearing loss. To do so, the Group sources hearing aids from leading global manufacturers and employs hearing care specialists who fit the devices to each Ampli-care is Amplifon’s cutting-edge platform, designed to deliver a revolutionary customer’s hearing profile and specific needs. and personalised hearing experience, both during in-store visits and at every stage of the customer journey. Ampli-care is built on three pillars: In 2018, Amplifon introduced its own Amplifon-branded product line, which today accounts for approximately 70% of the Group’s consolidated revenue, while 1. IMMERSIVE EXPERIENCE continuing to offer manufacturer-branded hearing aids in social market segments As part of the Ampli-care ecosystem, Amplifon stores are undergoing a complete and in countries not yet included in the roll-out plan. transformation, gradually adopting an immersive store format as part of the company’s internal network renewal programme. With the aim of offering a unique Indeed, the Amplifon Product Experience serves as a unique driver for strengthening experience to its consumers and strengthening the global brand, also through STATEMENTS brand identity, differentiating services, and offering a comprehensive value innovative architectural design, this new format - already present in nearly 500 stores proposition, combining product, service, and experience. The Amplifon Product worldwide - focuses on two key areas. The retail zone features a welcoming reception CONSOLIDATED FINANCIAL Experience, which includes Amplifon-branded products and the Amplifon and waiting area, showcasing hearing solutions, while the Solution Room places the omnichannel ecosystem, is an integrated system that places customers at the customer at the centre of the experience, alongside their caregiver and hearing centre of a seamless experience where service and product work in full synergy. The care professional. This space is enhanced by immersive visual and digital elements, Amplifon omnichannel ecosystem is an advanced digital platform that harnesses creating an engaging and interactive environment. The modular design follows a cutting-edge technology and big data analytics to collect and analyse hearing device scalable approach, ensuring adaptability to the diverse layouts and needs of stores usage patterns, customer feedbacks, and consumer needs. This data is then used across different markets. In addition, Amplifon stores are equipped with state-of- to create a unique, personalised, and distinctive experience. The Amplifon Product the-art diagnostic tools, such as Otopad, enabling interactive, touch-based audiology Experience goes beyond the in-store visit, redefining the entire customer journey. experiences. This technology allows for sophisticated hearing assessments, ensures It provides quick access to tailored, high-value services, designed to continuously standardised service quality at the highest level, and optimises the efficiency of enhance customer satisfaction. Within this ecosystem, the Amplifon App serves as hearing care professionals, ultimately enhancing the customer experience. the first touchpoint for consumers. With a 23% adoption rate, it enables users to manage device functions, receive battery replacement alerts, and access AI-driven 2. HYPER-PERSONALISED SOLUTIONS REPORT recommendations for optimising hearing settings based on surrounding sounds. With cutting-edge technology and a 360° omnichannel approach, Ampli-care enables ON OPERATIONS a deeper understanding of each customer, providing hearing care professionals with The Amplifon Product Experience has been successfully launched in 12 countries - more insights than ever before to deliver a truly hyper-personalised experience. Italy, France, Germany, the Netherlands, Spain, the United States (Miracle-Ear and Ampli-care also supports professionals in identifying the best hearing solution for Amplifon Hearing Health Care), Australia, the United Kingdom, Belgium, Portugal, New each customer through a proprietary system known as the “solution builder engine”, Zealand, and Switzerland. In these markets, penetration has reached approximately already implemented in stores across Spain, the United Kingdom, and Belgium. 95% of private and paid-up revenues, accounting for around 70% of the Group’s total revenue. 3. ALWAYS-CONNECTED SUPPORT With an advanced remote monitoring and assistance system, Amplifon’s hearing care With a strong commitment to continuous sustainability improvement, the Group professionals remain constantly connected, allowing them to track how customers has developed its Amplifon-branded product packaging to be fully reusable and use their devices and identify specific needs - even outside of store visits. Looking made with over 70% recycled materials. This initiative ensures both environmental ahead, assistance will also be provided remotely through video call systems aimed at responsibility and practical benefits for the end consumer. The roll-out of the new fine tuning the hearing aids. AMPLIFON AT A GLANCE 104 --- ANNUAL REPORT 2024 Digital leadership BUSINESS MODEL Amplifon.com ranks first for organic traffic in the hearing care sector across seven of the eight major markets in which Amplifon operates. Alongside the Group’s other Amplifon provides exceptional hearing care services directly to consumers by brands and digital channels, including social media, it continuously engages not only combining technical expertise, cutting-edge technology, and - above all - empathy. its customers but also their caregivers -friends and family members who play a key Those who choose Amplifon experience a tailored, exclusive journey that goes role in their hearing journey. With an in-house content creation team, Amplifon’s beyond simply purchasing a hearing device. websites are constantly optimised using a data-driven approach that is fully integrated with the company’s Customer Relationship Management (hereinafter also “CRM”) Amplifon 360 protocol systems, ensuring ever greater effectiveness. Today, over 25% of all new leads come from Amplifon’s digital platforms, and the number of online appointment bookings The success of a hearing solution depends on the expertise of Amplifon’s hearing has increased by approximately 20% globally compared to 2023. Additionally, through care professionals, who conduct hearing tests, select the most suitable device Earpros.com, the Group’s unbranded platform, present in seven countries, Amplifon from the world’s leading hearing technology manufacturers, and ensure a perfect has reached an additional 4.8 million users, who, on average, are four years younger fit based on each person’s individual needs. To support this process, the Group STATEMENTS than those engaging with Amplifon’s branded websites. developed the Amplifon protocol (hereinafter also “Amplifon 360”), a patented protocol that combines a data-driven approach with advanced yet easy-to-use CONSOLIDATED FINANCIAL DIGITAL SOLUTIONS FOR ACCESSIBILITY technologies to assess hearing capabilities and guide audiologists in identifying Just as Amplifon’s consumer websites allow customers and prospects to easily the best hearing solution for each customer. Amplifon 360 enhances customer access services such as the store locator and the online hearing test, the Amplifon engagement during the evaluation process, allowing for a more in-depth analysis App also offers a suite of high-value services. Beyond enabling real-time control of of individual needs and lifestyle factors. The protocol is presented to customers hearing device functions, the app provides direct access to essential services via through interactive digital applications featuring a video interface, offering an smartphone, including online appointment booking and the “Companion” feature, immersive experience that helps them better understand their hearing profile and which is particularly beneficial for customers in their initial adjustment phase with the benefits of their recommended solution. Demonstrating its effectiveness, the their new hearing device. By integrating remote support, the app enhances service Amplifon 360 protocol has been approved by the Italian Society of Audiology and accessibility, making it easier for customers to navigate their hearing journey. Built- Phoniatrics (hereinafter also “SIAF”) and has received patents in the United States, in video tutorials help users resolve minor issues, while intuitive navigation paths Australia, and Europe, validating its uniqueness and innovative nature. These ensure a seamless and user-friendly experience. recognitions highlight its significant role in advancing audiological techniques. Importantly, Amplifon 360 makes hearing care more accessible to countless REPORT AMPLIFON X individuals by offering free hearing tests to anyone visiting an Amplifon store. This ON OPERATIONS Amplifon X is the Group’s internal start-up, fully dedicated to its digital innovation initiative has generated substantial economic savings for customers, prospective strategy. It is responsible for software design and the end-to-end development of clients, and the wider community. highly innovative digital solutions, aimed at enhancing both in-store and remote hearing care services. With a team solely focused on digital innovation, Amplifon X enables the Group to continuously redefine the global standards of audiological care, strengthening its competitive advantage and delivering a unique, inimitable experience for both customers and hearing care professionals. AMPLIFON AT A GLANCE 105 --- ANNUAL REPORT 2024 Business model BUYS BUYS PRODUCT & PRODUCT MANUFACTURERS SERVICE CUSTOMER STATEMENTS CONSOLIDATED FINANCIAL BUYS PRODUCT & BUYS BUYS HIGH PRODUCT & PRODUCT VALUE- MANUFACTURERS FRANCHISEE SERVICE CUSTOMER ADDED SERVICES REPORT ON OPERATIONS OUTSOURCES SUBSCRIBES BUYS SERVICE INSURANCE PRODUCT MANUFACTURERS MANAGEMENT INSURANCE COVERAGE CUSTOMER COMPANY PROVIDES PRODUCT & SERVICE INDEPENDENT NETWORK THROUGH STORES THIRD- PARTIES AMPLIFON AT A GLANCE 106 --- ANNUAL REPORT 2024 VALUE CHAIN Amplifon’s value chain is designed to meet the evolving needs of the market and consumers, ensuring high quality, technological innovation, and a strong commitment to sustainability and customer care. The Group’s value chain activities are specifically structured across several key phases, ranging from raw material sourcing and product research & development to the distribution of finished products, delivery of high-value services, product usage, and disposal. The Group’s value chain also stands out for its use and optimisation of certain intangible assets, such as brand and reputation, to foster trust-based relationships with its customers; innovation, which enhances the Group’s competitiveness and ability to meet market demands with high-quality solutions and highly specialised expertise, acquired both through rigorous talent acquisition and specific training programmes provided by the Group to its employees, serving as a key driver of differentiation and excellence. STATEMENTS CONSOLIDATED FINANCIAL Procurement through indirect suppliers Sales Sales goods and services not Distribution through through direct intended to be sold or franchise retail stores offered to end customers stores (including ATG) Raw material Device usage procurement by the end End of life customer R&D Procurement through direct suppliers Distribution Promotion of products Hearing care products and and services related accessories REPORT ON OPERATIONS After-sales services (assistance and technical support) Activities carried out by Amplifon Subscription Activities carried out by third parties Provision of the service included and provision in the insurance coverage of insurance Activities carried out by both services Amplifon and third parties AMPLIFON AT A GLANCE UPSTREAM OWN OPERATIONS DOWNSTREAM 107 --- ANNUAL REPORT 2024 Procurement friendly devices and continuous monitoring, ultimately enhancing their quality of life and hearing well-being. The procurement of raw materials is a critical upstream stage of the Group’s value chain. This phase involves key material suppliers providing components such as Amplifon operates through three key business models: microchips, electronic circuits, and external casing materials (e.g., plastic, metal, and silicone) to hearing aid manufacturers. These components must be technologically • Business-to-Consumer: In EMEA, APAC, Canada, and Latin America, Amplifon serves advanced and reliable, but also safe and biocompatible, ensuring durability and customers through directly operated stores. In the United States, operations are optimal performance of hearing aids. carried out through approximately 400 Miracle-Ear branded stores. • Franchising: Miracle-Ear operates in the United States primarily through a franchise Regarding direct suppliers, the Group works with a limited number of key partners network. Its approximately 1,210 locations run their business independently while with whom it has built long-standing relationships over the years. The consolidation of aligning with the Group’s strategic guidelines. these relationships enables continuous improvement in collaboration with suppliers, • Managed care: Through agreements with leading insurance providers in the United both in terms of business operations and sustainability initiatives. As a global leader, States, Amplifon Hearing Health Care offers policyholders hearing solutions and and considering the crucial role of hearing technology in customer interactions, services via a network that includes 1,600 Miracle-Ear locations and more than STATEMENTS Amplifon collaborates with the most reputable hearing aid manufacturers, carefully 5,400 independent partner stores. selecting the most suitable products and technologies for different markets. This CONSOLIDATED FINANCIAL ensures the safety and quality of the devices sold while providing comprehensive support to customers throughout the entire product lifecycle. Promotion of products and services Amplifon actively promotes its products and services through targeted marketing Distribution campaigns, events, and collaborations with healthcare professionals. The company’s promotional efforts also focus on raising awareness of the benefits of hearing aids The distribution of Amplifon products integrates both direct and indirect channels, and audiological solutions, emphasising the importance of early diagnosis and ensuring broad market coverage and a high-quality service across the downstream appropriate treatment for hearing loss. As an industry leader, Amplifon is committed segment of the value chain. The Group is actively optimising its logistics and to creating a synergistic regional network of creative partners, reinforcing its distribution model, including demand and inventory planning, warehouse and presence and impact across different markets. transport operations, and reverse logistics management. By leveraging end-to-end integration between upstream suppliers and retail outlets, Amplifon is enhancing REPORT its entire distribution network. This improvement is further supported by the Device usage, assistance and technical support ON OPERATIONS implementation of new planning methodologies, automated stock replenishment technologies for stores, and the digitalisation of key processes. The use phase of a hearing aid is designed to be intuitive and fully supported by ongoing assistance. This stage is considered critical, as it directly determines the effectiveness of the hearing solution for the customer and significantly impacts their Sale of high value-added products and services quality of life. Post-sale support is a fundamental part of Amplifon’s value chain. The Group provides continuous technical assistance, which includes: training on device Amplifon provides both hearing aids and accessories, along with a full range of usage and maintenance, scheduled follow-up visits, adjustments and fine-tuning of professional services designed to ensure the optimal use and effectiveness of its hearing aids, device cleaning and ongoing customer support. devices. These services include counselling, hearing tests, selection of the most suitable hearing solution, fitting (adjusting device parameters to match individual hearing needs), and assessment tests to evaluate improvements. The Group is committed to ensuring that every customer enjoys an optimal experience, with user- AMPLIFON AT A GLANCE 108 --- ANNUAL REPORT 2024 End of life The end-of-life phase of hearing aids occurs when devices are no longer functional or no longer meet the customer’s needs, making their disposal necessary. At this stage, hearing aids are collected and properly disposed of, as they can no longer serve their original function. Devices may be outdated, irreparably damaged, or simply replaced with more advanced models. The information provided is based on continuous updates to industry knowledge and insights, enabling the sector to maintain high standards of information quality. These updates are shared within the European Hearing Instrument Manufacturers Association (hereinafter also “EHIMA”), where the Group actively participated in several meetings throughout 2024. A more in-depth analysis of the Group’s customer composition will be included in the ESRS S4 chapter on users and end consumers. STATEMENTS However, the very nature of Amplifon’s products and services brings significant benefits to its customers, in line with the company’s mission: to enhance people’s CONSOLIDATED FINANCIAL lives by helping them rediscover the full range of sounds and emotions. KEY HIGHLIGHTS OF ECONOMIC AND FINANCIAL RESULTS In 2024, Amplifon recorded higher revenues compared to the previous year. Specifically, the financial year closed with total revenue of €2,409.2 million, up 7.0% at constant exchange rates and 6.6% at current exchange rates compared to 2023. REPORT In particular, with respect to the different geographical areas: ON OPERATIONS • EMEA revenues of €1,531.3 million, increasing by 3.0% at constant exchange rates and 3.1% at current exchange rates year-on-year; • Americas revenues of €507.3 million, reflecting strong growth of 19.8% at constant exchange rates and 18.1% at current exchange rates; • APAC revenues of €370.3 million, rising by 8.4% at constant exchange rates and 7.4% at current exchange rates compared to 2023; • Furthermore, the Group operates through Corporate structures, which include central functions such as corporate bodies, general management, business development, procurement, treasury, legal affairs, human resources, information systems, global marketing, and internal audit. These do not qualify as operating segments under IFRS 8. These central functions generated revenues of 342 thousand euros in 2024. For further information, please refer to the Explanatory Note 44 “Segment AMPLIFON Information” within the Consolidated Financial Statements and Related Notes section AT A GLANCE of the Annual Report. 109 --- ANNUAL REPORT 2024 Sustainability Plan, integrating three new targets to strengthen its commitment to THE GROUP’S SUSTAINABILITY STRATEGY people and the environment. The Sustainability Plan takes into account the priorities and expectations of key stakeholders, including employees, communities, suppliers, investors, and ESG rating agencies. It remains consistent with Amplifon’s corporate culture while highlighting the company’s contribution to the United Nations 2030 Sustainability plan Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) most relevant to its business. Following review and validation by the RCSC In 2024, Amplifon updated its Sustainability Plan, setting new targets aligned and the BoD, the Plan has been periodically monitored and shared internally through with the Group’s business strategy. These objectives take into account global ESG dedicated update sessions to track and present the progress achieved. megatrends and emerging regulations, reinforcing Amplifon’s commitment in key areas. They have also been integrated into the company’s performance evaluation With the active involvement of key business functions, specific actions have been and variable incentive systems for Top Management. With the publication of implemented to support each objective. Performance is monitored through regular this consolidated Sustainability Statement, Amplifon has further updated its updates to Top Management and governance bodies. STATEMENTS CONSOLIDATED FINANCIAL OUR SUSTAINABILITY STRATEGY EMPOWERING PEOPLE TO REDISCOVER BUSINESS STRATEGY ALL THE EMOTIONS OF SOUND Product & service stewardship STAKEHOLDER REPORT REQUESTS People ON OPERATIONS empowerment Community impact Ethical Conduct and Environmental REGULATORY EFFORTS Responsibility VALUE CREATION AMPLIFON AT A GLANCE 110 --- ANNUAL REPORT 2024 SUSTAINABILITY PLAN Target completed New target PRODUCT & SERVICE STEWARDSHIP Goal Target KPI BASELINE 2024 11 Offer free complete hearing tests , generating Facilitate access to hearing care and improve the Clients and prospects’ annual economic saving a total saving of more than €600 million for € 184 million (2023) € 200 million lives of as many people as possible (€ million) prospects and customers in the period 2024-2026 Promote increasingly innovative and engaging Implement the New Store Protocol in at least one Percentage of countries adopting the New Store 4% (2023) 15% hearing experience third of countries by 2026 Protocol (%) Globally invest in future audiologists and hearing STATEMENTS Support students and professionals in joining the care professionals by offering adult professional Number of students, professionals and junior 12 (2023) 265 363 hearing care sector programs and licensing support involving at least professionals supported (nr.) 800 people in the period 2024-2026 CONSOLIDATED FINANCIAL Define and launch a new Amplifon-branded product re-usable packaging with reduced Launch of the new re-usable packaging (yes/no) - (2023) Packaging launched dimensions and revised material, by 2025 Improve the sustainability characteristics of the Amplifon branded products’ packaging Launch the new Amplifon-branded product re- usable packaging with revised material, in 85% of Percentage of APE countries with new packaging (%) 42% (2024) 42% 13 APE countries, by 2026 REPORT ON OPERATIONS 11. This target is calculated on the only individuals who received a complete test (i.e., on four frequencies) for a selection of countries (10 out of 26) for which data is available in the new front office systems. Savings are AMPLIFON AT A GLANCE estimated on the basis of the average cost of hearing tests offered free of charge to customers. 12. Please note that the baseline has been changed from 365 to 363 due to an improvement in the calculation and data collection methodology. 13. APE countries (Amplifon Product Experience) refer to countries where the Amplifon branded product line is present. 111 --- ANNUAL REPORT 2024 Target completed New target PEOPLE EMPOWERMENT Goal Target KPI BASELINE 2024 Average number of days of training per back-office 3.6 (2023) 3.4 employee per year (days a year) Provide at least 3 days on average of training per year per capita for back-office employees (of Strengthen the leadership and functional Average number of sustainability training hours which at least 2 hours on average of training 0.4 (2023) 2.9 skills of all employees globally per back office employee per year (hours a year) on sustainability-related topics) and field force employees, up to 2026 Average number of training days per field force STATEMENTS 3.7 (2023) 4.1 14 employee per year (days a year) CONSOLIDATED FINANCIAL Ensure that at least 40% of the back-office Percentage of talents & high performers per year population is assessed as talents & high 43% (2023) 46% in the back-office population (%) performers every year up to 2026 Ensure a solid succession pipeline for key roles Ensure that at least 30% of the field force is Percentage of talents & high performers per year assessed as talents & high performers by 2026 in in the field force population according to the new 27% (2023) 30% the countries where the new assessment system assessment system (%) for the field force is implemented Certification achieved for Certification achieved for Ensuring a healthy and inclusive winning Obtain the Top Employer Global certification Global Top Employer Certification obtained Europe, North America, Europe, North America, workplace by 2026 (yes/no) Colombia, and New Zealand LATAM, Australia, and New (2023) Zealand Percentage of female employees in the global Maintain an appropriate level of gender 53% (2023) 53% back-office population (%) REPORT representation in the global back-office population (at least above 50%) every year up ON OPERATIONS to 2028, and increase it in the global leadership Percentage of female employees in the global Promote equal opportunities 27% (2023) 23% population (at least up to 35%) by 2028 leadership population (%) at all levels of the organization Launch a new Global DEIB Action Plan by 2024, including bias-free workshops for Launch of the DEIB Action Plan with bias-free DEIB Action - (2023) the DEIB committee & core team, and all global workshops (yes/no) Plan launched leaders, by 2024 AMPLIFON AT A GLANCE 14. Including non-employee field force, excluding franchisees. 112 --- ANNUAL REPORT 2024 Target completed New target COMMUNITY IMPACT Goal Target KPI BASELINE 2024 Extend the “Listen Responsibly” program to involve 15 a total of at least 20 million people under 35 Number of people under 35 reached via the Listen 16 48,763 (2023) 9,601,503 (including students) through digital communication Responsibly program (nr.) Promote awareness about responsible listening and campaigns and events by 2028 increase awareness about hearing care well-being 17 Reach at least 110,000 total noise Number of noise measurements mapped measurements via the noise tracker of the 22,779 (2023) 89,027 (nr. of total measurements) “Listen Responsibly” app by 2026 Reach at least 5,000 employees’ participations STATEMENTS Support employee volunteering, ambassadorship, in Foundations’ volunteering initiatives and Social Number of participations (nr.) 1,553 (2023) 3,846 and engagement initiatives Ambassadorship initiatives in the period CONSOLIDATED FINANCIAL 2024-2026 Contribute to the development of Amplifon Support the Group Foundations’ activities to Foundation’s activities, also to expand its activities Amplifon’s financial contribution to the Amplifon €4.3 million €1.75 million spread the “sound of inclusion” in other countries outside Italy, with at least Foundation (€ millions) (2021-2023) €5 million donated in the three years 2024-2026 REPORT ON OPERATIONS AMPLIFON AT A GLANCE 15. The target has been recalibrated from 10 million under 35 to 20 million under 35 to extend the Group’s commitment further. 16.The 2023 baseline only includes students involved in “Listen Responsibly” initiatives in schools, excluding digital campaigns that have been included from 2024. 17. The target has been recalibrated from 50,000 measurements to 110,000 measurements to extend the Group’s commitment further. 113 --- ANNUAL REPORT 2024 Target completed New target ETHICAL CONDUCT & ENVIRONMENTAL RESPONSIBILITY Goal Target KPI BASELINE 2024 Direct suppliers SCoC acceptance coverage 79% (2023) 100% (% by spend) Direct suppliers ESG assessment coverage Achieve Supplier Code of Conduct (SCoC) 0% (2023) 93% (% by spend) acceptance and conduct supplier ESG assessment Integrate sustainability criteria into the 18 of 100% of the main direct suppliers and at responsible management of the supply chain 19 least 50% of key indirect suppliers , by spend, Key indirect suppliers’ SCoC acceptance STATEMENTS by 2026 coverage 20% (2023) 41% (% by spend) CONSOLIDATED FINANCIAL Key indirect suppliers’ ESG assessment 0% (2023) 23% coverage (% by spend) Reach 100% of green electricity supply for Share of green electricity supply for HQs 74% (2023) 80% HQs and direct stores by 2030 and direct stores (%) Increase the supply of green electricity and Reach more than 60% hybrid or fully electric Share of hybrid/fully electric cars within reduce GHG emissions to limit Amplifon’s 13% (2023) 25% global car fleet by 2030 the global fleet (%) carbon footprint Set and submit near-term decarbonization Commitment Commitment SBTi submission (yes/no) Science-based Targets by 2025 to SBTi (2023) to SBTi REPORT Increase the penetration and use of rechargeable 20 ON OPERATIONS Number of batteries “saved” each year hearing aids avoiding the use of more than 320 254 million (2023) 289 million (millions of batteries) Promote the use of rechargeable hearing aids million batteries per year by 2028 to reduce the use of disposable batteries and Install in at least 50% of direct stores end- properly dispose end-of-life batteries Share of direct stores provided with the of-life battery collectors for a new centralized - (2023) 47% new battery collectors (%) collection and recycling process by 2026 Foster a culture of respect and accountability for Ensure the development and launch of a Human Launch of a Human Rights Policy (yes/no) - (2024) - human rights across all levels of the organization. Rights Policy by the end of 2025 18.“Direct Suppliers” are global and regional hearing instruments, accessories and battery manufacturers with an annual spend above 1000€. AMPLIFON AT A GLANCE 19. “Key indirect suppliers” are global and regional suppliers mainly concentrated on providing worldwide Marketing, IT and Retail goods and services. 20.The amount of batteries “saved” per year is estimated based on the number of rechargeable devices sold and in circulation, the average amount of batteries used annually by a non-rechargeable device, and an average device life of five years. 114 --- ANNUAL REPORT 2024 SUSTAINABLE FINANCE: SUSTAINABILITY-LINKED FINANCINGS As part of its ongoing integration between financial strategy and sustainability goals, Amplifon has secured six sustainability-linked credit facilities since 2021: • A €100 million sustainability-linked revolving credit facility, signed in September 2021 with Intesa Sanpaolo (IMI Corporate & Investment Banking Division). This five- year facility is linked to key Sustainability Plan indicators and forms part of the Group’s refinancing and expansion strategy for existing revolving credit facilities. • The refinancing of the facility agreement originally signed following the acquisition of GAES, amounting to €210 million over five years. This agreement, signed in December STATEMENTS 2021, involved a syndicate of banks comprising UniCredit, Mediobanca, and BNPP- BNL and includes sustainability-linked KPIs from Amplifon’s Sustainability Plan. CONSOLIDATED FINANCIAL • A €300 million sustainability-linked revolving credit facility, signed in June 2023 with a syndicate of banks (BNP Paribas, CaixaBank, Crédit Agricole Corporate and Investment Bank, UniCredit, and Banca Nazionale del Lavoro). This three- year facility includes an option to extend for an additional two years at Amplifon’s discretion. Like previous credit lines, this facility is linked to specific sustainability targets, with an adjustment mechanism for the applicable interest margin based on performance against these targets. • A €200 million financing agreement, signed in the second half of 2024, structured as follows: €100 million from UniCredit, supporting the Group’s expansion initiatives. €100 million from Cassa Depositi e Prestiti (CDP), co-financing Amplifon’s innovation investments in Italy. Cassa Depositi e Prestiti funds complement the European Investment Bank (EIB) financing granted in July 2023, dedicated to innovation REPORT projects across Europe. ON OPERATIONS • A €50 million loan from Crédit Agricole Italia, secured in the second half of 2024, backed by SACE’s Garanzia Futuro. This financing supports the international rollout of Amplifon’s new store format, designed to offer customers a fully immersive, highly personalised experience with integrated digital and visual elements, all within a sustainable and innovative architectural concept. • A €75 million amortizing loan, signed with Mediobanca in December 2024, with a five-year maturity. The applicable margin will be adjusted based on the achievement of specific Sustainability Plan indicators. These financing agreements reaffirm Amplifon’s commitment to integrating sustainability into its financial strategy, leveraging innovative funding instruments that support the Group’s growth and ESG objectives. AMPLIFON AT A GLANCE 115 --- ANNUAL REPORT 2024 [SBM-2] INTERESTS AND VIEWS OF STAKEHOLDERS The Group operates in a dynamic international environment, where stakeholder engagement and open dialogue are essential to achieving the goal of creating shared economic and social value. In 2022, the Group updated its stakeholder mapping, identifying key stakeholder categories and assessing their relevance based on relationship types and roles. A structured, multi-year Stakeholder Engagement Plan was also introduced, which facilitates a rotational approach to involving a broad range of stakeholders through interactive dialogue. STATEMENTS CONSOLIDATED FINANCIAL HEARING AID MANUFACTURERS WORKFORCE TRADE UNIONS FRANCHISEES & AGENTS ACADEMIA & MEDICAL CLASS INDUSTRY AND CONSUMERS ASSOCIATIONS REPORT INDIRECT SUPPLIERS & OTHER VALUE CHAIN ACTORS ON OPERATIONS HEARING-IMPAIRED REGULATORY AUTHORITIES & CARE GIVERS & HEALTH CARE SYSTEMS SHAREHOLDERS, PROVIDERS LOCAL & GLOBAL COMMUNITIES OF CAPITAL & FINANCIAL COMMUNITY MEDIA AMPLIFON AT A GLANCE 116 --- ANNUAL REPORT 2024 The following section outlines the main stakeholder engagement activities carried out in 2024. These activities are detailed based on the engagement channels used, the issues raised, and Amplifon’s responses. In addition to these activities, since 2018, Amplifon has annually engaged certain stakeholder categories to prioritise material topics, progressively integrating their expectations and feedback into the Sustainability Statement. For more details, please refer to “Amplifon’s double materiality” paragraph of this chapter. Stakeholder Type of engagement activity Issues/expectations expressed by stakeholders Amplifon’s response Implementation of the You@Amplifon People Management programme, including onboarding modules for back office and store employees Ensuring a unified One Employee Experience across the Group Introduction of an Exit Interview process to better understand employee turnover motivations (both back office and field employees) Enhancing the global talent attraction and acquisition strategy, Strengthening recruitment efforts in key areas such as marketing, including the Employee Value Proposition and international digital, CRM, and retail excellence STATEMENTS mentorship initiatives Internal sharing Digital Amplifon Global Onboarding (DaGO) programme CONSOLIDATED FINANCIAL Enhancement of the training offer for Talent Development and Career growth and skills development Internal sharing programmes (One Amplifon, Leadership implementation of Ampli Academy Touchpoint, Townhall, Global Functional Conference), Recognition and rewards Leadership Development, Awards, and CHA programmes anytime & continuous feedback mechanism in individual performance evaluations, regional meetings and store Workplace quality by simplifying and harmonising internal Workforce Symphony, 1AT, and 1PC projects visits, Global Internal Communication Framework, updates processes on projects and global initiatives, internal newsletter (“Good DEIB Policy Morning Amplifon”), induction activities and corporate intranet communications Establishment of a DEIB Committee Company intranet in 23 countries with a continuous increase in unique users and page views Update of the double materiality analysis Inclusion and respect for employee diversity Creation of an ad hoc sustainability newsletter REPORT Hearing tests for Group employees ON OPERATIONS Breakfast chats on topics of interest to the Company Company volunteering programmes Store visits by global and local management Enhancing usability and accessibility of the Amplifon app and Improving customer experience at every Amplifon’s physical and optimising the Amplifon 360 protocol to strengthen the audiologist- digital touchpoint Quantitative and qualitative market research, including customer relationship focus groups, individual interviews (phone and online), Better understanding the characteristics of the products and the Developing a new communication approach to reduce stigma and usability testing, customer satisfaction surveys and process of selecting the auditory solution to get the most benefit present hearing solutions in a simple and accessible manner Hearing-impaired & feedback collection on customer experience (paper from it care givers questionnaires, call centres, email, SMS), workshops and Raising awareness about the impact of untreated hearing loss and Implementing actions to improve customer experience (products, research initiatives with audiologists and key stakeholders reducing prejudice associated with hearing impairment services, physical and digital touchpoints) (hearing care experience experts) + User Interface and User Creation of a communication campaign or initiatives dedicated to Experience design activities Supporting caregivers in their role to help family members and raising awareness among caregivers in order to facilitate the search friends with hearing difficulties for a solution to hearing loss AMPLIFON AT A GLANCE 117 --- ANNUAL REPORT 2024 Stakeholder Type of engagement activity Issues/expectations expressed by stakeholders Amplifon’s response Work quality Continuous improvement of training programmes Focus groups, annual conventions Franchisees & Agents Skill development and training Recognition and rewards programme Timely updates on recent events through investor presentations Transparency of financial information and earnings calls Financial results conference calls, participation in Progressive improvement of the Corporate website, including more Corporate performance roadshows and industry conferences, including one-to- sustainability-related information Shareholders, one and group meetings with institutional investors (both Potential impacts of regulatory changes on the achievement of providers of equity and debt), company visits by analysts and investors, Definition of sustainability goals and targets strategic goals capital & financial feedback sharing with rating agencies (both credit and ESG) community and sustainability-focused investors Continuous updates on key strategic events (e.g. acquisitions) STATEMENTS Increasing integration of sustainability into business strategy CONSOLIDATED FINANCIAL Raising awareness about hearing care Collaboration in research projects Focus groups, seminars, conferences, public presentations Industry and and joint projects, consultation with European and global Enhancing customer satisfaction Developing joint initiatives consumer associations associations Participation in EHIMA (European Hearing Instrument Further improving our customer-focused business approach Manufacturers Association) Market, industry, and technology trends Sharing market and customer insights Business review meetings, negotiations on terms and Sharing development prospects for Amplifon’s multichannel Potential impacts of regulatory changes Hearing aid conditions for new contracts, strategic partnerships ecosystem manufacturers Development of Amplifon’s multichannel ecosystem REPORT ON OPERATIONS Sharing of mutual interests, as well as information on commercial Future business development activity and customers Direct meetings and on-site visits, participation in supplier-organised speaking opportunities, strategic Indirect suppliers partnerships, negotiations on terms and conditions & other value chain for new contracts actors Adoption of new technologies Joint projects (e.g. Amplifon App development) Ensuring that research activities are evidence-based Joint participation in research projects Collaboration on scientific research projects and audiological partnerships Medical class Organisation of conferences and activities of scientific interest and Strengthening relationships with the medical community relevance on audiological topics AMPLIFON AT A GLANCE 118 --- ANNUAL REPORT 2024 Stakeholder Type of engagement activity Issues/expectations expressed by stakeholders Amplifon’s response Top Management involvement in speaking opportunities and Up-to-date information on business and company performance interviews New technologies supporting both customers and employees Top Management positioning on social media channels Press releases, conference calls, social media channels, Media media conferences, interviews, participation in speaking Participation in events (e.g. Trento Festival of Economics and Social opportunities, brand awareness initiatives Innovation, university lectures) Amplifon’s social role and raising awareness among young people Partnership with Teatro Alla Scala about hearing care Digital communication initiatives Promotion of the “Ci Sentiamo Dopo” app for noise monitoring Ongoing dialogue with union representatives and trade Implementation of tailored local contracts aligned with global Promoting employee work-life balance STATEMENTS unions, negotiation and implementation of local contracts policies Trade unions CONSOLIDATED FINANCIAL Dialogue with institutions and participation in working Promoting quality, sustainability, and accessibility in the hearing Developing joint actions in collaboration with consumer and groups, regular consultations and joint projects care sector industry associations Enhancing accessibility to hearing care solutions Sharing sector-specific insights Regulatory authorities & Surveys, industry studies, and meetings with healthcare Participation in awareness campaigns healthcare systems organisations and policymakers (EU, WHO) Raising awareness about hearing care Awareness-raising initiatives for ENT specialists Participation in local and global events Engagement in local and global volunteering initiatives Press office activities and participation in local and global events, global PR initiatives and membership in Sharing Amplifon’s mission and vision Proactive and transparent communication REPORT Local & global associations, corporate volunteering programmes communities Top Employer certification ON OPERATIONS Adherence to the UN Global Compact Bringing young talent closer to the workforce through Funding scholarships practical initiatives Establishing global partnerships with student associations University partnerships, internships, and career days, and universities Academia mentoring projects, contributions to academic programmes Providing training and tools for young professionals Offering international internships for back office roles through guest lectures, project work, and contests through skill-oriented internships Creating networking opportunities for young talents Graduate programmes The various engagement processes involved collecting and analysing stakeholder feedback, revealing that stakeholder expectations align closely with the Group’s strategic objectives. This is particularly evident in the growing demand for sustainable practices, social responsibility, and technological innovation. It should be noted that, throughout 2024, no significant updates were made to the strategy or business model in response to stakeholder interests and opinions. For governance bodies’ communication and AMPLIFON management of ESG impacts, please refer to paragraph “Sustainability Governance” of this chapter. AT A GLANCE 119 --- ANNUAL REPORT 2024 risks, and opportunities (herinafter also “IROs” or “IRO”). AMPLIFON’S DOUBLE The assessment then focused on identifying impacts on people and the environment, along with risks and opportunities related to Amplifon’s operations, considering both MATERIALITY direct activities and the entire value chain, with a particular emphasis on upstream 21 activities and Tier 1 suppliers . Following this, the identified IROs were evaluated by Top Management and selected [SBM-3] MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR stakeholder groups through dedicated stakeholder engagement sessions. This process, INTERACTION WITH STRATEGY AND BUSINESS MODEL together with the definition of materiality thresholds, resulted in the establishment of Amplifon’s double materiality, which was subsequently submitted to the Risk Control [IRO-1] DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS and Sustainability Committee and formally approved by the Board of Directors in MATERIAL IMPACTS, RISKS AND OPPORTUNITIES December 2024. STATEMENTS [IRO-2] DISCLOSURE REQUIREMENTS IN ESRS COVERED BY THE As an outcome, the double materiality assessment determined the material Disclosure UNDERTAKING’S SUSTAINABILITY STATEMENT Requirements (jereinafter also “DRs”) for the Group’s sustainability reporting, ensuring CONSOLIDATED FINANCIAL full alignment with the guidelines provided by the EFRAG SRB working group. The list of disclosure requirements covered by the Amplifon 2024 Sustainability Statement is OVERVIEW detailed in the tables included in the Annex of this document. Since 2021, Amplifon has adopted the principle of double materiality to evaluate key ESG topics, considering both Amplifon’s impact on each topic (impact materiality) DETAILS OF THE DOUBLE MATERIALITY and how these topics may influence the Group’s ability to create value and affect its financial performance (financial materiality). This assessment is based on sector- PROCESS - IDENTIFICATION OF IMPACTS, RISKS, wide macro-trend analyses, authoritative research sources, and best ESG practices, with the awareness that topics currently deemed less material may become more AND OPPORTUNITIES relevant over time. The impact identification process for the Group was based on a review of previously REPORT From this year onwards, Amplifon has incorporated the new requirements introduced identified impacts from prior reporting years. This list was updated and refined ON OPERATIONS by the Corporate Sustainability Reporting Directive (CSRD), further enhancing the through the analyses previously described (desk research, review of institutional double materiality process to ensure full compliance with the European Sustainability sources, and regulatory framework analysis) to ensure it reflects the current reporting Reporting Standards (ESRS). year. As a result, a long list of over 70 impacts was compiled, categorised in line with ESRS requirements. METHODOLOGY ESG risks were identified and reviewed based on the Group’s Risk Universe, which is regularly updated through the Enterprise Risk Assessment process. This framework The double materiality process began with an in-depth analysis of Amplifon’s already includes risks associated with material sustainability reporting topics for operating environment, which included a desk research on a panel of companies 2023, as well as physical and transition risks identified in the Group’s Climate Risk operating in the same sector and/or comparable industries, the review of Assessment conducted the same year. ESG opportunities were identified based on institutional sources and the regulatory framework analysis. This phase was also Amplifon’s strategic pillars, sustainability objectives outlined in the Sustainability supported by analyses from the previous reporting year and internal corporate Plan and ESG initiatives implemented across different areas of the Group. Also in this documentation, particularly the Enterprise Risk Management (herinafter also case, the approach resulted in the definition of a long list of approximately 40 risks “ERM”) framework. These elements formed the foundation for identifying impacts, and opportunities. AMPLIFON AT A GLANCE 21. The Group operates in three main markets (EMEA, Americas and APAC) where it is present with more than 10,000 points of sale. For more details, please refer to the sub-paragraphs “The Group’s Markets and Customers” and “The Value Chain” of this chapter. 120 --- ANNUAL REPORT 2024 In this phase, the Group considered negative or positive impacts, actual or potential, on people or the environment in the short, medium and long term. The identified IROS EVALUATION METHODOLOGY impacts include those related to Amplifon’s own operations, as well as its entire value chain (both upstream and downstream), including those linked to products, services, The evaluation and prioritisation of impacts were conducted based on four key and business relationships. Similarly, the risks and opportunities considered may parameters: have or currently have a positive or negative impact on the Group in the short, medium, or long term, arising from either past or future events. • Scale: how grave the negative impact is or how benecicial the positive impact is for people or the environment; • Scope: how widespread the negative or positive impacts are, considering the STAKEHOLDER ENGAGEMENT percentage of employees, geographic sites, or markets affected; • Probability: the likelihood of the impact occurring within the given timeframe. To ensure a precise and comprehensive analysis of the Group’s IROs, the double Probability is considered only for potential impacts. materiality process incorporated the perspectives of key stakeholders. • Irremediable character: whether and to what extent the negative impacts could be remediated, meaning whether the environment or affected individuals can be STATEMENTS In the context of the impacts, consultations with stakeholders were conducted restored to their original state. through the dedicated and direct involvement of different categories of stakeholders, CONSOLIDATED FINANCIAL following what was defined by the Group’s Stakeholder Engagement Plan, formalised The score assigned to each impact (severity) was determined by multiplying the factors in 2022. Two engagement methods were used: participation in focus groups, involving of scale and scope, with an additional probability factor applied. Each parameter was dedicated discussions on impacts and real-time voting sessions, and online surveys, assessed using a rating scale from 1 to 5. If a negative impact was deemed irreversible, distributed to individual stakeholders for self-completion. The internal and external a proportional increase in severity was applied. stakeholder groups involved in this process included: capital providers, franchisees, employees, hearing device manufacturers (direct suppliers), and indirect suppliers. The assessment and prioritisation of risks and opportunities were conducted based on two key parameters: In the context of risks and opportunities, and in line with the formalisedriskassessment process as well as the activities carried out in previous years for ESG risks evaluation, • Scale: the potential positive or negative financial impact, including effects assessed selected internal stakeholders were involved (such as members of the Executive through operational, reputational, compliance, or social impact criteria, linked to Leadership Team (hereinafter also “ELT”) and Top Management). Additionally, the CEO the occurrence of risks and opportunities; and CFO, the Risk Control and Sustainability Committee, and the Board of Directors, • Probability: the likelihood of occurrence within the considered time horizon. REPORT were engaged throughout the process. By incorporating these perspectives, the ON OPERATIONS Group was able to gain a comprehensive view of its IROs and establish a strong The risk assessment involved analysing both the magnitude and probability of awareness of the most relevant ESG topics for the organisation. occurrence, considering residual risk, starting from the theoretical inherent risk, except for climate-related risks, which were assessed using an inherent risk approach. For more information on the Group’s ERM methodology, please refer to the section “Risk Management” in the Report on Operations. For both impacts and risks and opportunities, the evaluations were conducted across three time horizons: • Short-term: 1 year; • Medium-term: 1-3 years; • Long-term: 3 to 10 years. AMPLIFON AT A GLANCE 121 --- ANNUAL REPORT 2 0 2 4 Topical Standard Impacts Risks Opportunities DEFINITION OF MATERIALITY THRESHOLDS ESRS E1 – Climate change 1 5 1 Following the evaluation of all potentially relevant IROs, materiality thresholds ESRS S1 – Own workforce 6 1 1 were defined to identify the most significant IROs for the Group. IROs with a score ESRS S2 – Workers in the value chain 0 1 0 below the materiality threshold were excluded from the final list of material IROs. ESRS S4 – Consumers and end-users 3 3 1 Therefore, IROs were considered material if their final score was equal or exceeded ESRS G1 – Business conduct 5 3 0 the materiality threshold in at least one of the three time horizons. Unrelated 4 1 0 More specifically, the materiality threshold was set at a score of 6 for risks (taking Total 19 14* 3 a prudent approach, considering the evaluation in terms of residual risk, except for climate risks). * The total number of risks reported in the table amounts to 14 instead of 12. This difference is due to double counting, as two risks are associated with multiple ESRS standards, as evidenced in the IROs list below. The threshold for impacts and opportunities was set at 8, reflecting an unadjusted STATEMENTS analysis, meaning that potential mitigating actions or initiatives undertaken by the The next section of this paragraph provides a complete list of material IROs, Group were not considered in the evaluation. accompanied by a detailed description including information on the correlation CONSOLIDATED FINANCIAL between those IROs and the effects of the impacts on people and the environment, and an indication of how the impacts originate from or relate to the company’s APPROVAL AND INTERNAL CONTROL SYSTEM strategy and business model, including relevant time horizons. The same section also provides a description of the short-term financial impact of risks and opportunities, Each year, the results of the double materiality Analysis are approved by the Global it should be noted that the analysis of these does not reveal any material current Investor Relations & Sustainability Director and subsequently presented to the CEO financial effects. and CFO, who review the outcome. The results are also reviewed by the Risk Control and Sustainability Committee and the Board of Directors, which formally approves Additionally, some IROs have been identified that are not currently aligned with the outcomes of the double materiality analysis. sector-agnostic ESRS standards. These cover various aspects, including the well-being of communities and people in need, technological innovation, customer satisfaction and service quality, raising awareness on responsible listening, and cybersecurity. RESULTS OF THE DOUBLE REPORT The double materiality analysis highlights Amplifon’s strong focus on social matters, ON OPERATIONS MATERIALITY ANALYSIS emphasising the need to manage and report information related to its own workforce, workers in the value chain, and end-users/consumers (ESRS S1, S2, and S4). Following the double materiality analysis, the assessment identified 19 impacts, 12 risks, and 3 opportunities, with 16 of these linked to the value chain (both upstream From an environmental perspective, the identified impacts, risks, and opportunities and downstream). The ESRS areas covered by the identified IROs encompass are closely linked to climate change (E1). This applies to both an inside-out environmental, social, and governance aspects, including: perspective, where Amplifon contributes to greenhouse gas emissions, and an outside-in perspective, where the company faces various climate-related risks, including: business and supply chain disruptions due to extreme weather events, increased operational costs for compliance with climate regulations, and shifting consumer preferences and stakeholder perceptions regarding the Group’s approach to sustainability. AMPLIFON AT A GLANCE 122 --- ANNUAL REPORT 2024 The results confirm Amplifon’s long-standing strategic focus areas, which align found that no material impacts, risks, or opportunities were relevant to these with the nature and characteristics of its business model and are consistent ESRS categories, either due to the intrinsic significance of the IROs or the nature of with the analyses conducted as part of the strategic planning process (i.e. Group Amplifon’s business activities. Strategy), with the Risk Management Model (ERM) and with the findings of the Group’s Climate Change Risk Assessment (hereinafter also “CCRA”). The “Listening Below is the full list of material IROs, providing a detailed breakdown of the Ahead” Sustainability Plan (for further details, see paragraph “Sustainability identified risks, opportunities, and impacts. The table illustrates: the origin of Strategy” of this chapter) has been developed also in response to the priorities and each IRO, the connection to Amplifon’s business activities (Own Operations) or its expectations of key stakeholders, that the Group has collected over the years, thus relevance to the company’s value chain (Upstream or Downstream), as well as how also responding to the areas of the IRO identified materials, incorporating concrete the company is involved whether through its operations or business relationships actions to enhance its performance and long-term sustainability. (for further details, please refer to sub-paragraph “The value chain” of this chapter). Additionally, the table includes columns for the three time horizons, The remaining sustainability topics (E2, E3, E4, E5, and S3) have been deemed non- which are activated when the IRO is deemed material, indicating whether this material for Amplifon, and therefore, all associated disclosure requirements have occurs in the short, medium, or long term. An IRO may also be considered material been omitted. This decision is based on the double materiality assessment, which across multiple time horizons. STATEMENTS CONSOLIDATED FINANCIAL E1 – CLIMATE CHANGE POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Generation of GHG emissions produced throughout own operations and the value chain as a result of Actual negative Climate change mitigation the Group’s activities, contributing to climate change. impact Potential risk of business interruption caused by weather events that might damage Amplifon’s REPORT distribution centres and affect the Group’s ability to guarantee the regular distribution of hearing aids ON OPERATIONS and accessories to its retail network. Climate change adaptation Short-term qualitative financial impact (1 year): Risk Extreme weather events possibly impacting Amplifon’s distribution centers might result in a negligible decline in expected revenues mainly related to the interruption/reduction of the distribution chain in the affected geographical areas and to the potential loss of stock, as well as negligible costs related to potential extraordinary maintenance on distribution centers. Potential risk of interruption of suppliers’ production and distribution activities due to extreme weather events that might damage the production sites or distribution centers of Amplifon’s direct suppliers and that might reduce the availability of hearing aids and accessories for regular supply to Amplifon’s stores. Climate change adaptation Risk Short-term qualitative financial impact (1 year): Extreme weather events possibly affecting suppliers’ production sites or distribution centers might lead to a negligible decrease in expected revenues for Amplifon related to potential delays in the supply of products, considering the current suppliers diversification strategy. AMPLIFON AT A GLANCE 123 --- ANNUAL REPORT 2024 E1 – CLIMATE CHANGE POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Potential risk of changes in consumer preferences, due to increased awareness on climate, and perception of stakeholders (e.g., investors) on Amplifon’s approach regarding climate topics Risk Climate change mitigation (resulting from Short-term qualitative financial impact (1 year): impact) Potential decrease in Amplifon’s attractiveness towards stakeholders given the Company’s approach on climate topics might result in a negligible increase in cost of financial investments. STATEMENTS Potential risk of increased operational costs due to higher cost of materials and utilities used to CONSOLIDATED FINANCIAL meet government requirements related to climate change (e.g., promotion of more energy-efficient solutions, use of renewable sources, reduction of emissions). Risk Climate change mitigation; Energy (resulting Short-term qualitative financial impact (1 year): from impact) Potential evolutions by Governments climate change requirements (e.g., renewable resources) and prices fluctuations (e.g., energy/carbon prices) might result in a negligible increase in operating costs (e.g., transportation, utilities). Adopting best-in-class market practices in reference to climate regulations may strengthen Amplifon’s reputation, which can result in attracting more investors, as well as creating stronger partnerships with stakeholders (e.g., financial institutions, suppliers). Climate change mitigation Opportunities Short-term qualitative financial impact (1 year): Adoption of climate best-in-class market practices enhancing Amplifon’s reputation among investors might lead to a negligible increase in expected benefits from different stakeholders. Potential risk related to evolving climate change regulations (e.g., European Taxonomy, Green Deal, REPORT 22 reporting) to be compliant with. Risk ON OPERATIONS Climate change mitigation (resulting Short-term qualitative financial impact (1 year): from impact) Potential non-compliance with climate-change regulations might lead to a negligible increase in costs for the implementation of additional initiatives to be fully compliant with the new standards. AMPLIFON AT A GLANCE 22.This risk has been deemed material under both ESRS E1 (Climate change) and ESRS G1 (Business conduct). 124 --- ANNUAL REPORT 2024 S1 – OWN WORKFORCE POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Enhancement of employee skills (both field force and back-office) through training and professional Equal treatment and opportunities for all Actual positive development programmes, coaching and mentorship activities, and onboarding initiatives, leading to Training and skills development impact positive outcomes in terms of personal growth for employees Equal treatment and opportunities for all Negative consequences on the company’s perceived attractiveness due to a decline in engagement Potential negative Training and skills development perception and insufficient talent attraction initiatives impact STATEMENTS Equal treatment and opportunities for all Concrete commitment to fostering an ethical work environment, centred on inclusivity, equity, Employment and inclusion of persons with Actual positive and human rights protection, thereby promoting employee satisfaction, freedom of expression, CONSOLIDATED FINANCIAL disabilities; Measures against violence and impact representation, and safety harassment in the workplace; Diversity. Working conditions Potential talent loss and low retention rates due to a slowdown in career progression (linked to Potential negative Working time; Adequate wages; working conditions and remuneration) impact Work-life balance Working conditions Employee well-being and satisfaction, as well as trust in the company, fostered by the implementation Actual positive Working time; Work-life balance of dedicated welfare and well-being programmes (e.g., parental support, services for caregivers) impact Equal treatment and opportunities for all Employment and inclusion of persons with Potential discrimination against certain categories of employees in the workplace, including Potential negative disabilities; Measures against violence and psychological harassment and/or unequal treatment impact harassment in the workplace; Diversity The fast business growth and the increasing organization complexity of Amplifon may represent a challenge in identifying, attracting and retaining the talents requested for conducting the business as well as in developing a talent pipeline for the succession plan process. REPORT Working conditions Working time; Risk (resulting Adequate wages Short-term qualitative financial impact (1 year): from impact) ON OPERATIONS Potential evolution of external environment and increasing organization complexity might lead to a negligible increase in costs for attracting and retaining skilled talents (e.g., recruitment, training, onboarding) to ensure a sustained business growth. Amplifon could rely on its positive reputation and perception as an inclusive and sustainability-driven organization that is also proactive in the promotion of a diverse and inclusive environment, to improve talent attraction and retention. Equal treatment and opportunities for all Employment and inclusion of persons with Short-term qualitative financial impact (1 year): Opportunities disabilities; Skill development and training; Initiatives to foster a strong and positive workplace culture and to maintain the Company’s “employer Diversity of choice” position, confirming its reputation, as well as the promotion of a diverse and inclusive environment, may lead to a minor decrease in the cost of attracting/retaining skilled resources (e.g., recruitment, training, onboarding). AMPLIFON AT A GLANCE 125 --- ANNUAL REPORT 2024 S2 – WORKERS IN THE VALUE CHAIN POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Potential risk related to business partners along the Group supply chain not fully respecting the ethical and social standards, including human rights, also due to not structured control on third parties, 23 potentially leading to non-compliance events and reputational impacts on the Group. Working conditions Risk Health and Safety Short-term qualitative financial impact (1 year): (resulting Other work-related rights Potential non-compliance of Amplifon’s suppliers with ethical standards might expose the Group to from impact) STATEMENTS Child labour; Forced labour potential sanctions and/or lead to a loss of reputation with an impact on stakeholders’ commitment. Moreover, the implementation of additional specific controls on third parties might lead to negligible CONSOLIDATED FINANCIAL increase in costs (e.g., third parties assessment, IT tools). REPORT ON OPERATIONS AMPLIFON AT A GLANCE 23.This risk has been deemed material under both ESRS S2 (Workers in the value chain) and ESRS G1 (Business conduct). 126 --- ANNUAL REPORT 2024 S4 – CONSUMERS AND END-USERS POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Social inclusion of consumers and/or end-users Difficulties for customers and people with hearing loss in accessing and using hearing care products Actual negative Non-discrimination; Access to products and services due to physical, social, and digital barriers impact and services Personal safety of consumers Maintaining the quality, reliability, and safety standards of products, accessories, and services offered Actual positive STATEMENTS and/or end-users by leveraging the expertise of hearing care specialists, resulting in customer and end-user safety and impact Health and safety satisfaction CONSOLIDATED FINANCIAL Information-related impacts for Loss of personal data and customer information due to breaches in data privacy systems and non- Potential negative consumers and/or end-users compliance with the Global Privacy Policy impact Privacy Risk of possible non-compliance with international and national regulations related to Privacy and Data Protection, that may lead to fines, sanctions, litigations and reputational impacts. Information-related impacts for Risk consumers and/or end-users (resulting Short-term qualitative financial impact (1 year): Privacy from impact) Potential non-compliance with local data protection regulations, in particular related to clients master data, might result in penalties and fines by Privacy Authorities. Potential risk that the development of innovative technologies / services may require changes in Amplifon’s business model. Social inclusion of consumers Risk Short-term qualitative financial impact (1 year): and/or end-users (resulting Potential development of alternative innovative technologies/services to the hearing aid, even if Access to products and services from impact) considered rare, might lead to a minor increase in costs related to additional investments aimed at REPORT responding to changes in the business and at guaranteeing/facilitating accessibility of products/services ON OPERATIONS to Amplifon’s customer base, and negligible costs of monitoring the external landscape. A change in regulations (e.g., reimbursement conditions, insurance tenders, accessibility to the national health service, selling requirements), as well the increasing attention to the industry from the different stakeholders, could have an effect on the market and therefore on performance. Social inclusion of consumers and/or end-users Risk Short-term qualitative financial impact (1 year): Access to products and services Potential regulatory changes affecting the industry and higher government attention could lead to increasing costs for the evolution of the Company in terms of processes and governance, as well as have an impact on the portion of revenues. Amplifon is committed in investing in activities that promote the accessibility to hearing care (e.g., free complete hearing tests), including the digitalization and innovation of processes and services provided (e.g., innovative solutions, diagnostic tools), that may increase the consumers base and foster social Social inclusion of consumers inclusion/hearing care awareness. and/or end-users Opportunities Access to products and services Short-term qualitative financial impact (1 year): Promotion of hearing care awareness/accessibility, also through the digitalization and optimization of processes and services, might expand the customer base, simplify access to hearing and improve AMPLIFON AT A GLANCE brand reputation. 127 --- ANNUAL REPORT 2024 G1 – BUSINESS CONDUCT POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Increased customer loyalty and employee trust resulting from the strengthening and dissemination of Corporate culture; Actual positive an ethical corporate culture based on principles of integrity, fairness, non-discrimination, and respect Protection of whistle-blowers impact for human rights Negative impacts on the economy, markets, and stakeholder trust due to potential anti-competitive Potential negative Corporate culture behaviour, monopolistic practices, and instances of corruption impact STATEMENTS Corruption and bribery Non-compliance with applicable laws, regulations, and internal and external standards, potentially Potential negative Prevention and detection including training leading to negative economic and legal repercussions for stakeholders impact CONSOLIDATED FINANCIAL Management of relationships with Strengthening ESG criteria in supply chain management and supplier performance (both direct and Actual positive suppliers including payment practices indirect), generating positive social and environmental impacts in the communities in which they operate impact Potential failure to meet minimum ethical conduct standards along the supply chain, as well as missed Potential negative Corporate culture opportunities for responsible sourcing impact Potential risk related to misleading communication on financial disclosure, non-financial disclosure and / or other communication initiatives that may have an impact on corporate reputation, given also the Company’s increasing relevance and the involvement in initiatives of public interest. Risk Corporate culture (resulting Short-term qualitative financial impact (1 year): from impact) Potential non-compliance with mandatory external disclosures, as well as misleading/delayed communications, might lead to sanctions and/or have a minor impact on stakeholders’ commitment. Potential risk related to evolving climate change regulations (e.g., European taxonomy, Green Deal, reporting) to be compliant with. Risk Corporate culture (resulting REPORT Short-term qualitative financial impact (1 year): from impact) Potential non-compliance with climate-change regulations might lead to a negligible increase in costs for ON OPERATIONS the implementation of additional initiatives to be fully compliant with the new standards. Potential risk related to business partners along the Group supply chain not fully respecting the ethical and social standards, including human rights, also due to not structured control on third parties, potentially leading to non-compliance events and reputational impacts on the Group. Risk Management of relationships with Short-term qualitative financial impact (1 year): (resulting suppliers including payment practices Potential non-compliance of Amplifon’s suppliers with ethical standards might expose the Group to from impact) potential sanctions and/or lead to a loss of reputation with an impact on stakeholders’ commitment. Moreover, the implementation of additional specific controls on third parties might lead to negligible increase in costs (e.g., third parties assessment, IT tools). AMPLIFON AT A GLANCE 128 --- ANNUAL REPORT 2024 ENTITY SPECIFIC POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Positive impact on community well-being and support for people in need through local development Actual positive - initiatives and philanthropic activities impact The reliance on technology and the acceleration towards digitalization could be accompanied by an increasing relevance of cybersecurity, as well as the changes in the geopolitical scenario and potential third-party vulnerabilities could lead to an increasing number of cyber-attacks. STATEMENTS Risk (resulting - Short-term qualitative financial impact (1 year): from impact) Potential business interruptions and/or leakage of sensitive/personal data due to cyber-attacks could CONSOLIDATED FINANCIAL result in possible sanctions, increase in costs (e.g., restore security levels, ransom payments) as well as possible loss of revenues. Positive impacts on individuals and economic systems generated by technological innovations in Actual positive - processes, services, and products impact Increased customer satisfaction and improved service quality due to the development of systems that Potential positive - analyse customer needs and efficiently manage reports and complaints impact Increased awareness and sensitivity regarding the importance of hearing well-being and responsible Actual positive - listening impact Compared to the identification of impacts in the 2023 double materiality assessment, significant changes have emerged in the identified impacts. More specifically, adjustments were made to the wording of some descriptions, and new impacts were integrated that had not emerged in the previous year’s analysis. Furthermore, as shown in the “Sustainability Topic” column of the table above, four impacts and one Entity-Specific risk have been integrated, which are not associated with any ESRS and will be REPORT addressed through additional disclosure. ON OPERATIONS AMPLIFON AT A GLANCE 129 --- ANNUAL REPORT 2024 PROCESS FOR IDENTIFYING AND ASSESSING IMPACTS, RISKS, AND OPPORTUNITIES [E1 IRO-1] DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS The analyses on physical and transition risks carried out in the context of the MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO CLIMATE “Climate Change Risk Assessment (also referred to as “CCRA”) and described in the CHANGE section “[E1 SBM-3] Impacts, relevant risks and opportunities and their interaction with the strategy and business model” of the chapter “ESRS E1 - Climate Change” [E2 IRO-1] DESCRIPTION OF THE PROCESSES TO IDENTIFY AND were integrated during 2024 within the dual materiality process, where, jointly, ASSESS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO Amplifon investigated its possible impacts in the climate context. When identifying STATEMENTS POLLUTION environmental impacts, the Group considered its own activities, potential effects along the value chain, and strategic directions to determine current and potential CONSOLIDATED FINANCIAL [E3 IRO-1] DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS sources of GHG emissions, as well as additional factors that may contribute to MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO WATER climate-related impacts and various relevant time horizons. AND MARINE RESOURCES [E4 IRO-1] DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS, DEPENDENCIES AND OPPORTUNITIES RELATED TO BIODIVERSITY AND ECOSYSTEMS [E5 IRO-1] DESCRIPTION OF THE PROCESSES TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES ASSOCIATED WITH RESOURCE USE AND CIRCULAR ECONOMY REPORT ON OPERATIONS AMPLIFON AT A GLANCE 130 --- ANNUAL REPORT 2024 These activities led to the identification of specific risks, impacts, and opportunities related to climate change, particularly: E1 – CLIMATE CHANGE POSITION ALONG THE VALUE CHAIN TIME HORIZON SUSTAINABILITY TOPIC DESCRIPTION IRO PHYSICAL /TRANSITIONUpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Generation of GHG emissions produced throughout the own operations and the value chain as a Actual negative Climate change mitigation NA result of the Group's activities, contributing to climate change impact STATEMENTS Potential risk of business interruption caused by weather events that might damage Amplifon's Climate change adaptation distribution centres and affect the Group's ability to guarantee the regular distribution of hearing Risk Physical aids and accessories to its retail network CONSOLIDATED FINANCIAL Potential risk of interruption of suppliers' production and distribution activities due to extreme weather events that might damage the production sites or distribution centers of Amplifon's Climate change adaptation Risk Physical direct suppliers and that might reduce the availability of hearing aids and accessories for regular supply to Amplifon’s stores Potential risk of changes in consumer preferences, due to increased awareness on climate, and Risk (resulting Climate change mitigation Transition perception of stakeholders (e.g., investors) on Amplifon’s approach regarding climate topics from impact) Potential risk of increased operational costs due to higher cost of materials and utilities used Climate change mitigation; Risk (resulting to meet government requirements related to climate change (e.g., promotion of more energy- Transition Energy from impact) efficient solutions, use of renewable sources, reduction of emissions) Adopting best-in-class market practices in reference to climate regulations may strengthen Climate change mitigation Amplifon's reputation, which can result in attracting more investors, as well as creating stronger Opportunities NA partnerships with stakeholders (e.g., financial institutions, suppliers) Potential risk related to evolving climate change regulations (e.g., European Taxonomy, Green Deal, Risk (resulting Climate change mitigation Transition reporting) to be compliant with from impact) REPORT ON OPERATIONS AMPLIFON AT A GLANCE 131 --- ANNUAL REPORT 2 0 2 4 In line with the approach previously described for determining impacts, risks, and Manufacturers Association (EHIMA) and the organization of periodic meetings, held opportunities, the Group has considered various environmental aspects referenced at least every two months, dedicated to sustainability topics. These discussions in the relevant reporting standards. No IROs have been identified as associated with provide opportunities to share updates, identify areas for improvement, and Standards E2, E3, E4, and E5, specifically: ensure strategic alignment on environmental, social, and governance matters relevant to the Hearing Care sector. While no critical issues have been identified, • Given the nature of the Group’s business model, which does not involve direct Amplifon remains committed to continuously monitoring these aspects, actively production activities, monitoring environmental impacts related to pollution is collaborating with suppliers and other stakeholders to ensure responsible and not considered material. The Group’s activities, including the management of its sustainable management of natural resources. company fleet of approximately 1,900 vehicles, are not deemed significant in terms • Regarding biodiversity and ecosystems, including the protection of natural habitats, of pollution, both due to the type of vehicles used and the fleet’s overall scale. the preservation of key natural resources, and the prevention of habitat reduction, Regarding pollution, during periodic consultations with members of the European no specific analyses have yet been conducted on transition risks, physical risks, Hearing Instrument Manufacturers Association (EHIMA), no significant impacts, or potential dependencies. Periodic consultations with market stakeholders have risks, or opportunities were identified that would require further investigation. not highlighted any significant impacts, risks, or opportunities requiring further Furthermore, the production of hearing aids and the provision of related services investigation, considering both the nature of Amplifon’s business model and the STATEMENTS do not generate relevant impacts on air, water, or soil. This is due to the use of configuration of its value chain. Upstream production activities do not involve advanced technologies and the minimization of plastics and plastic derivatives, intensive use of materials whose extraction or consumption could be harmful to the CONSOLIDATED FINANCIAL thereby reducing the risk of microplastic release into the environment. The environment and ecosystems. Downstream, the territorial presence of Amplifon activities do not involve the intensive use of substances or materials that could stores is concentrated in urban centres, away from areas of high biodiversity. This generate hazardous or contaminating waste. Additionally, hearing devices are location minimizes the risk of ecosystem impacts and renders consultations with designed to be durable and safe, consuming limited natural resources, thereby local communities on these topics unnecessary. preventing significant contributions to pollution during both usage and disposal. • Amplifon acknowledges its impact concerning resource use and the circular No consultations with affected communities have been conducted to identify and economy. However, the analyses conducted have not identified impacts, risks, assess pollution-related impacts, risks, and opportunities. or opportunities significant enough to classify the circular economy as a material • Similarly, no significant impacts, relevant risks, or opportunities requiring further topic for the GroupAdditionally, Amplifon has identified increasing the penetration examination have been identified in relation to water consumption, withdrawal, rate of rechargeable devices as a strategic objective within its plan. or discharge. This assessment is based on Amplifon’s business model, which does This decision reflects the Group’s commitment to reducing the environmental not involve intensive water usage, and on the production activities of its suppliers, impact of its products and promoting innovative and responsible solutions. No which are also not associated with significant water consumption. This conclusion consultations with affected communities have been conducted to identify and REPORT is supported by the continuous dialogue that Amplifon maintains with key direct assess impacts, risks, and opportunities related to resource use and the circular ON OPERATIONS suppliers, primarily through its participation in the European Hearing Instrument economy. AMPLIFON AT A GLANCE 132 --- ANNUAL REPORT 2024 POLICIES, ACTIONS, METRICS AND TARGETS [MDR] MINIMUM DISCLOSURE REQUIREMENT POLICIES The policies adopted by Amplifon represent a key element in managing relevant sustainability topics. The table below highlights the correlation between the most significant sustainability topics for Amplifon and the related company policies, providing an overview of the Group’s strategic approach. Supplier Code Anti Whistleblow- ESRS Sustainability topic Sustainability Environment DEIB Code of Ethics Data Privacy of Conduct -corruption ing Climate change adaptation STATEMENTS E1 Climate change mitigation Energy CONSOLIDATED FINANCIAL Working conditions Working time Adequate wages Work-life balance S1 Equal treatment and opportunities for all Training and skills development Employment and inclusion of persons with disabilities Measures against violence and harassment in the workplace Diversity Working conditions REPORT Health and safety ON OPERATIONS S2 Other work-related rights Child labour Forced labour Information-related impacts on consumers and/or end-users Privacy Personal safety of consumers and/or end-users S4 Health and safety Social inclusion of consumers and/or end-users Access to products and services Corporate culture Protection of whistle-blowers Management of relationships with suppliers including payment practices G1 AMPLIFON Corruption and bribery AT A GLANCE Prevention and detection including training Incidents 133 --- ANNUAL REPORT 2024 Code of Ethics The Group’s Code of Ethics defines, in alignment with its corporate culture, the values, principles, and behavioural rules that guide the Group’s daily operations. In addition to being an integral part of the Organisation, Management, and Control Model pursuant to Italian Legislative Decree 231/2001, the Code of Ethics specifically establishes fundamental behavioural principles concerning: • Business conduct policies, including conflict of interest, confidentiality of information, responsibility in work activities, compliance with applicable regulations (such as those on privacy, anti-money laundering, and intellectual property), and the fight against corruption, unlawful favours, collusive behaviour, and solicitations of undue advantages; • Human resources management, including the fight against any form of discrimination, the rejection of child labour exploitation, the promotion of equal opportunities in all aspects STATEMENTS of employment relationships, the fight against any form of workplace harassment, and the maintenance of a healthy and safe work environment; CONSOLIDATED FINANCIAL • Clarity and completeness in accounting records, through the adoption of high standards of financial planning and control, as well as consistent and adequate accounting systems; • Sustainability, particularly concerning the creation of long-term sustainable and shared value, the generation of a positive and lasting social impact, and the awareness of the importance of environmental protection; • Relations with external stakeholders, specifically regarding interactions with suppliers, public officials and institutions, customers, the media, and the financial community, including the management of gifts and promotional items. The principles and provisions of the Code of Ethics apply to all employees and Amplifon Group entities, as well as to any third parties whose actions may be attributed to the Group. Amplifon ensures that the principles of the Code of Ethics are shared by agents, consultants, suppliers, REPORT business partners, and any other stakeholders with whom it maintains long-term business ON OPERATIONS relationships. Violations of the Code may constitute a breach of contractual obligations, Below is an introduction to these policies, which will be further potentially leading to legal consequences. The Code of Ethics is distributed across all countries detailed throughout the report, in line with the specific disclosure where the Group operates, ensuring its local implementation and effective application. requirements outlined in the relevant ESRS. To prevent, mitigate, and, where necessary, remediate impacts, RESPONSIBILITY AND GOVERNANCE manage risks, and seize opportunities identified in the area of The Board of Directors promotes the implementation and compliance with the Code of Ethics sustainability, Amplifon has updated specific policies to address and across all Group companies and ensures that its principles are regularly updated to remain monitor them, incorporating considerations related to the material aligned with best practices. IROs identified through the double materiality analysis. In accordance The Group Internal Audit Department, as part of the periodic audits included in the plan, with the minimum disclosure requirements set by regulations, an verifies, among other things, compliance with the principles contained in the Code of Ethics. overview of the implemented policies will be provided, with further details on the following policies: AMPLIFON AT A GLANCE 134 --- ANNUAL REPORT 2024 Sustainability Policy Environmental Policy The Sustainability Policy, which applies across the entire Amplifon Group, focuses on The Environmental Policy aims to guide the Group’s actions in the responsible four key areas: management of environmental impacts, with the goal of reducing its ecological footprint and contributing to the fight against climate change. The policy covers • Product and Service Stewardship the following areas: energy consumption and greenhouse gas emissions, waste Commitment to social inclusion, through actions aimed at overcoming economic, management and circular economy initiatives, and water consumption. physical, and geographical barriers, while promoting innovation to meet the individual needs of customers, offering high-quality solutions that ensure Additionally, the policy addresses environmental and climate risks, extreme weather effectiveness, personalisation, and safety, and delivering a customer experience events and evolving regulatory frameworks, promoting adaptation and mitigation tailored to each individual. measures to strengthen the company’s resilience. The performance monitoring • People Empowerment process is based on specific Key Performance Indicators (KPIs) and a transparent and Commitment to creating an inclusive, diverse, and safe work environment, where accurate reporting system, ensuring clear evidence of the actions taken. This process employees can grow professionally and contribute to the company’s success, with is further supported by regular updates on progress made and objectives achieved. STATEMENTS the awareness that employee well-being and satisfaction are priorities, and with the goal of attracting and retaining top talent; The contents of the Policy apply to the entire Amplifon Group, covering both its CONSOLIDATED FINANCIAL • Community Impact business activities and facilities as well as its internal and external stakeholders. Raising awareness on hearing health by supporting educational and advocacy The policy is designed to guide all Amplifon employees and collaborators, whether initiatives; working in direct stores or corporate offices, towards responsible management of • Ethical Conduct and Environmental Responsibility daily activities. Commitment to conducting business with the highest ethical and moral standards: Amplifon strongly condemns unethical practices, integrates environmental In developing the Environmental Policy, Amplifon has taken into account: the interests sustainability into its various activities, promotes responsible behaviours and needs of relevant stakeholders, the 10 Principles of the UN Global Compact, the throughout the value chain, and reduces environmental impact through mitigation recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for measures and sustainability performance improvements. climate risk reporting. The Policy is made available to all interested parties through publication on the corporate website. Through the Sustainability Policy, Amplifon is committed to upholding the United Nations International Bill of Human Rights, the ILO Declaration on Fundamental REPORT Principles and Rights at Work and its applicable conventions, the 10 Principles of the RESPONSIBILITY AND GOVERNANCE ON OPERATIONS UN Global Compact, and the Women’s Empowerment Principles (WEPs). The Global Investor Relations & Sustainability function, with the active support of relevant corporate functions, is responsible for monitoring, periodically reviewing, In defining the Sustainability Policy, Amplifon has taken into account the interests and and updating the Environmental Policy as needed. needs of relevant stakeholders, who have access to the policy through its publication In line with sustainability aspects related to corporate activities and the Sustainability on the company website. Policy, the priorities and commitments outlined in the Environmental Policy regarding environmental matters are overseen by the Risk Control and Sustainability Committee. This committee supports the Board of Directors in fulfilling its duties. RESPONSIBILITY AND GOVERNANCE The Policy was reviewed and approved by the Group CEO in December 2024. The Global Investor Relations & Sustainability, with the active support of relevant corporate functions, monitors, periodically reviews, and updates the policy where necessary. The Risk Control and Sustainability Committee oversees and validates its contents to support the Company’s Board of Directors in fulfilling its functions. The policy was reviewed and approved by the Board of Directors on 17 December 2024. AMPLIFON AT A GLANCE 135 --- ANNUAL REPORT 2024 Supplier Code of Conduct Diversity, Equity, Inclusion and Belonging Policy In 2022, Amplifon adopted the Supplier Code of Conduct to share its standards and Through the Diversity, Equity, Inclusion, and Belonging (DEIB) Policy, Amplifon is principles for responsible business conduct with its suppliers and business partners. committed to fostering a workplace environment that promotes diversity, equality, Amplifon requires all direct and indirect suppliers, as well as business partners, inclusion, and belonging. This policy applies across all business areas and to all to comply with all applicable laws and regulations in the countries where they employees, with the goal of overcoming biases and stereotypes, fostering collaborative operate and to commit to meeting the minimum standards and principles set out work environments, and valuing individual differences as a source of strength. The in the Supplier Code of Conduct. The document aims to strengthen the commercial Policy applies to all Amplifon employees and collaborators and extends to clients, relationship between Amplifon and its suppliers, going beyond mere compliance. For stakeholders, and partners, covering all company processes and activities. Its core this reason, Amplifon requires suppliers and business partners to integrate these pillars are reinforced through an action plan that includes the implementation of standards into their operations, procedures, and business practices, adopt them as concrete initiatives and a monitoring system based on KPIs, with progress regularly their own, and communicate them to their employees, suppliers, and stakeholders. reported in the Sustainability Plan. The Policy aligns with and upholds the principles The areas covered include: business ethics and compliance, including anti-corruption, of the United Nations Global Compact and the Women’s Empowerment Principles. health, safety, and workers’ rights, and environmental protection. In developing the DEIB Policy, Amplifon considered the interests and needs of STATEMENTS relevant stakeholders. The Policy is publicly available on the company’s website. To ensure that all recipients of the Code play an active role in its implementation, CONSOLIDATED FINANCIAL Amplifon encourages its suppliers, including their employees, to reach out via a dedicated email address (scoc@amplifon.com) for questions or to report potential RESPONSIBILITY AND GOVERNANCE violations of the minimum standards and principles outlined in the Supplier Code of The Human Resources department is responsible for implementing the Policy Conduct. concerning key Diversity, Equity, Inclusion, and Belonging (DEIB) topics. The DEIB Policy was approved by the Chief Executive Officer and shared with the Board of Directors in July 2022. RESPONSIBILITY AND GOVERNANCE The Supplier Code of Conduct was approved by the Board of Directors of Amplifon S.p.A. in March 2022 and is publicly available on Amplifon’s corporate website. The Company periodically reviews the Supplier Code of Conduct to ensure its adoption and enforcement and to align it with regulatory developments and the application of best practices. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 136 --- ANNUAL REPORT 2024 Data Privacy Policy Anti-corruption Policy Amplifon’s Data Privacy Policy is designed to ensure the proper, secure, and lawful Since 2017, Amplifon’s Anti-corruption Policy has ensured ethical business conduct, handling of personal data belonging to employees, clients, prospects, and other safeguarding value creation and reinforcing the Group’s core principles. The Policy individuals. The monitoring process includes regular audits, risk assessments, and guidelines, inspired by the Group’s corporate culture and Code of Ethics, were continuous updates to ensure that data protection measures remain effective. developed by analyszing business activities that could expose Amplifon to corruption risks. These guidelines promote the highest ethical and moral standards in all The Data Privacy Policy applies to all entities within the Group and serves to ensure business relationships, ensuring that activities are conducted with loyalty, fairness, compliance with the legal and regulatory framework for personal data protection, transparency, honesty, and integrity. The Policy also sets out specific rules to prevent, referring to the applicable legislation in the various countries where the Group detect, and manage corruption risks. All Group directors, employees, suppliers, entities operate. In addition to applicable laws, some Group entities may be subject consultants, and any individuals acting on behalf of Amplifon must adhere to the to additional privacy requirements imposed by government authorities, public values, standards, and principles set out in the Policy, as well as comply with legal agencies, and health plan partners. Amplifon is committed to complying with these requirements. Updated in 2021, the Policy aligns with international best practices requirements in accordance with relevant regulations. The Policy is accessible to all and standards, outlining general principles and specific behavioural and control STATEMENTS Group entities and employees via internal platforms and official documentation. measures in key areas that may be exposed to corruption risks (e.g. relations with Public Institution Representatives, agents, suppliers, and business partners, gift- CONSOLIDATED FINANCIAL giving, donations, and sponsorships). These areas are overseen by specific corporate RESPONSIBILITY AND GOVERNANCE functions, responsible for managing processes through dedicated Policies and General Managers in each country are responsible for implementing the Data Procedures. Privacy Policy. In 2023, the Policy was updated and shared with the Risk, Control and Sustainability Committee and the Board of Directors, without requiring formal The Anti-corruption Policy is made available to employees on the company intranet approval. and to all interested parties through the publication of a summary on the website. RESPONSIBILITY AND GOVERNANCE Each country within the Group is responsible for adopting the Policy and establishing an anti-corruption system. The Group Internal Audit function conducts compliance assessments in selected countries to assess the implementation level of the controls REPORT outlined in the Policy. The Policy was approved by the Board of Directors in 2021. ON OPERATIONS AMPLIFON AT A GLANCE 137 --- ANNUAL REPORT 2 0 2 4 Whistleblowing Policy ACTIONS, METRICS AND TARGETS Since 2020, Amplifon has introduced a structured process for handling reports (“Whistleblowing”), formalised in the Group Whistleblowing Policy. This Policy was In the various chapters of the Sustainability Report, Amplifon has detailed the updated in 2023 to ensure continued alignment with international best practices actions undertaken to manage impacts, risks, and opportunities related to material and whistleblowing principles. sustainability topics, in compliance with the requirements of the relevant ESRS thematic standards. Actions, metrics, and targets have been identified in alignment The Group Whistleblowing Policy defines the types of unlawful behaviours that with the objectives of the Sustainability Plan; in fact, the Group has chosen to Amplifon employees or third parties can report, the process for managing reports, focus its efforts on specific priority areas. Topics that are not yet covered will be as well as the rights and obligations of the whistleblower, in accordance with addressed in the coming years through targeted actions, aiming to progressively applicable regulations. Additionally, the reporting methods are explicitly stated, and effectively respond to all identified needs. Where available, metrics and including a digital platform that enables reports to be made simply, securely, and objectives have been integrated into the disclosure, ensuring consistency with the confidentially. This platform also allows for further confidential communication described actions and providing a clear overview of the company’s performance with the whistleblower for additional clarifications. and progress. With reference to the paragraph “Entity Specific Governance STATEMENTS Disclosures”, actions, metrics and targets, where present, are addressed within The Whistleblowing reporting channel can be accessed via the digital reporting the relevant Disclosure Requirements , consistent with the structure proposed by CONSOLIDATED FINANCIAL platform, voice messaging system, mail and meeting. Channels are also set up the reporting standard. to support the reporting of relevant reports under Legislative Decree no. 231/01. To date, the Group has no structured process for reporting the amount of current financial resources compared to the most relevant amounts presented in the Regarding Amplifon S.p.A., in compliance with Italian whistleblowing regulations budget. However, where possible, the Group undertakes to give an overview of (Italian Legislative Decree 24/2023), Amplifon S.p.A.’s Whistleblowing Policy was the expenses and investments made for the realisation of the activities expressed adopted in 2023 and also updated in 2024. in the respective chapters. RESPONSIBILITY AND GOVERNANCE The Amplifon Group’s Whistleblowing Policy was approved by the Board of Directors in March 2023. REPORT The Group Whistleblowing Policy mandates the establishment of a Whistleblowing ON OPERATIONS Committee, composed of HR, Legal Affairs, and Internal Audit & Risk Management representatives. The Committee is responsible for receiving, analyszing, and eventually investigating reports, and proposing disciplinary measures for centrally managed cases (i.e. at Group level). Furthermore, as part of the report management process, the policy requires the Whistleblowing Committee to update the Risk Control and Sustainability Committee and the Supervisory Body - for reports relevant to Italian Legislative Decree 231/01 - every six months, or promptly where appropriate, with a summary report of the activities carried out in relation to the reports received. AMPLIFON AT A GLANCE 138 --- ANNUAL REPORT 2024 • Turnover: the economic activities generating revenue for the Group pertain to the ENVIRONMENTAL sale of Hearing Aids under the sector “retail sale of medical and orthopaedic goods in specialised stores” (NACE Code 47.74). In light of this, the Group reviewed the activities defined under the EU Taxonomy and concluded that, under the current INFORMATION regulatory framework, its core business is not included among the Taxonomy- eligible activities. • Capital Expenditure: as part of the analysis, specific assessments were carried out EU TAXONOMY regarding the presence of CapEx related to the purchase of products originating from Taxonomy-aligned economic activities, as well as individual measures that enable activities contributing to the climate change mitigation objective to 24 The purpose of the European Union (EU) Taxonomy is to redirect public and private achieve low-carbon emissions or greenhouse gas (GHG) reductions. This analysis investments toward environmentally sustainable economic activities, thereby determined the eligibility of the economic activity “Installation, maintenance and contributing to the European Commission’s goal of achieving carbon neutrality by repair of energy efficiency equipment” (activity 7.3), particularly concerning CapEx 2050. The EU Taxonomy defines environmentally sustainable economic activities as associated with the installation of LED lighting technology. STATEMENTS those that: At present, the Group does not have a process in place to verify compliance with the CONSOLIDATED FINANCIAL • make a substantial contribution to one of the six environmental objectives: (i) technical screening criteria. For this reason, it is not able to report any Taxonomy- Climate change mitigation; (ii) Climate change adaptation; (iii) Sustainable use and aligned amounts. protection of water and marine resources; (iv) Transition to a circular economy; (v) Pollution prevention and control; (vi) Protection and restoration of biodiversity MINIMUM SAFEGUARDS and ecosystems; • do no significant harm (DNSH) to any of the other environmental objectives; • comply with minimum safeguards. In carrying out activities in accordance with the requirements of the EU Taxonomy Regulation, the Amplifon Group has conducted an analysis to assess compliance Recognizing the EU Taxonomy as a key tool to guide the private sector toward with the Minimum Safeguards. Specifically, the Group has examined all the aspects sustainable practices, and in order to ensure clear and transparent communication outlined in Article 18.1 of the Regulation, assessing compliance and the corresponding about its activities, the Group has been carrying out monitoring activities since management approaches. While the Group already implements policies, governance 2021 to understand regulatory obligations, track legislative updates, and plan the models, and actions in the areas of human rights, anti-corruption, taxation, and fair REPORT reporting process. The Amplifon Group initially focused on regulatory analysis and competition, it does not yet fully meet all the requirements set out in Regulation (EU) ON OPERATIONS the contextualisation of its sector for the purpose of applying the EU Taxonomy 2020/852. However, considering the rapidly evolving regulatory landscape, the Group Regulation. Subsequently, in 2023 and later in 2024, the Group carried out a review will complete the necessary assessments to identify and implement any required and update of the analysis conducted in order to identify and disclose information adjustments. regarding the share of turnover, capital expenditure (CapEx), and operating expenditure (OpEx) derived from products or services associated with Taxonomy- eligible and/or Taxonomy-aligned economic activities. This phase was conducted with the involvement of the Group Procurement and Accounting functions, examining all legal entities included within the reporting scope and proceeding with the analysis as follows: AMPLIFON AT A GLANCE 24.The EU Taxonomy framework is established by the following regulations: Regulation (EU) 2020/852 of the European Parliament and the Council of 18 June 2020; Climate Delegated Act: Regulation (EU) 2021/2139 of the European Commission; Complementary Climate Delegated Act or Regulation (EU) 2022/1214 of the European Commission; Environmental Delegated Act or Regulation (EU) 2023/1114 of the European ommission. 139 --- ANNUAL REPORT 2024 TURNOVER, CAPEX, AND OPEX ANALYSIS Turnover Based on the analysis outlined in the previous section, the Group does not generate revenue from economic activities within the scope of the EU Taxonomy. As a result, the numerator of the turnover KPI is zero. The total turnover value of €2,409 million coincides, also in consideration of the currency in which the figure is stated, with the sales and services for the financial year 2024 as also indicated in Note 29 “Revenues from Sales and Services” within the Consolidated Financial Statements and Related Notes section of the Annual Report. The KPI, as required by Regulation (EU) 2020/852, is defined as the portion of revenue eligible under the Taxonomy (numerator) divided by the total revenue (denominator). STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 140 --- ANNUAL REPORT 2024 Financial Year 2024 Substantial contribution criteria DNSH criteria («Does Not Significantly Harm») (17) (20) (9) (15) (4) (1) (10) Economic Activities (16) (6) (12) (5) (11) (8) (14) (3) (19) (7) (13) (2) (18) turnover, Code TurnoverProportion ofTurnover, 2024Climate ChangeMitigationClimate ChangeAdaptationWater PollutionCircular EconomyBiodiversityClimate ChangeMitigationClimate ChangeAdaptationWater PollutionCircular EconomyBiodiversittMinimum SafeguardsProportion of Taxonomyaligned (A.1.) or eligible(A.2.)2023Category enablingactivityCategorytransitional activity Yes; No; Yes; No; Yes; No; Yes; No; Yes; No; Yes; No; K€ % Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No E T N/EL N/EL N/EL N/EL N/EL N/EL A. TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities (Taxonomy-aligned) STATEMENTS Turnover of environmentally sustainable activities 0 0% - - - - - - - - - - - - - 0% CONSOLIDATED FINANCIAL (Taxonomy-aligned) (A.1) Of which enabling 0 0% - - - - - - - - - - - - - 0% E Of which transitional 0 0% - - - - - - - 0% T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; EL; EL; EL; EL; EL; N/EL N/EL N/EL N/EL N/EL N/EL Turnover of Taxonomy-eligible but not environmentally sustainable 0 0% - - - - - - 0% activities (not Taxonomy-aligned activities) (A.2) Turnover of Taxonomyeligible 0 0% - - - - - - 0% activities (A.1+A.2) B. TAXONOMY-NON-ELIGIBLE ACTIVITIES REPORT Turnover of Taxonomy-non ON OPERATIONS 2,409,241 100% eligible activities TOTAL 2,409,241 100% PROPORTION OF TURNOVER/TOTAL TURNOVER Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 0% 0% CCA 0% 0% WTR 0% 0% CE 0% 0% PPC 0% 0% AMPLIFON AT A GLANCE BIO 0% 0% 141 --- ANNUAL REPORT 2024 CapEx The KPI for capital expenditure (CapEx) corresponds to the portion of this item related to the modernisation of lighting systems in the Group’s owned stores. Total CapEx includes changes in investments in tangible and intangible assets, and right of use assets including those arising from business combinations, as reported in Notes 4 “Intangible fixed assets with useful life”, 5 “Property, plant, and equipment” and 6 “Right-of-use assets” within the section Consolidated Financial Statements and Related Notes of the Annual Report. The KPI, as required by Regulation (EU) 2020/852, is defined as the portion of CapEx eligible under the Taxonomy (numerator) divided by the total CapEx (denominator). STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 142 --- ANNUAL REPORT 2024 Financial Year 2024 Substantial contribution criteria DNSH criteria («Does Not Significantly Harm») (17) (20) (9) (15) (1) (10) Economic Activities (16) (6) (12) (5) (11) (8) (14) (19) (3) (7) (13) (2) (4) (18) turnover, Code CapEx Proportion of CapEx,2024 Climate ChangeMitigationClimate ChangeAdaptationWater PollutionCircular EconomyBiodiversityClimate ChangeMitigationClimate ChangeAdaptationWater PollutionCircular EconomyBiodiversittMinimum SafeguardsProportion of Taxonomyaligned (A.1.) or eligible(A.2.)2023Category enablingactivityCategorytransitional activity Yes; No; Yes; No; Yes; No; Yes; No; Yes; No; Yes; No; K€ % Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No % E T N/EL N/EL N/EL N/EL N/EL N/EL A. TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities (Taxonomy-aligned) STATEMENTS CapEx of environmentally sustainable activities 0 0% - - - - - - - - - - - - - 0% CONSOLIDATED FINANCIAL (Taxonomy-aligned) (A.1) Of which enabling 0 0% - - - - - - - - - - - - - 0% E Of which transitional 0 0% - - - - - - - 0% T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; EL; EL; EL; EL; EL; N/EL N/EL N/EL N/EL N/EL N/EL Installation, maintenance and repair of energy CCM 7.3 262 0.07% EL N/EL N/EL N/EL N/EL N/EL 0% efficiency equipment CapEx of Taxonomy-eligible but not environmentally sustainable 262 0.07% 100% 0% 0% 0% 0% 0% 0% activities (not Taxonomy-aligned activities) (A.2) REPORT A. CapEx of Taxonomy-eligible 262 0.07% 100% 0% 0% 0% 0% 0% 0% activities (A.1+A.2) ON OPERATIONS B. TAXONOMY-NON-ELIGIBLE ACTIVITIES CapEx of Taxonomy-non-eligible 371,494 99.93% activities TOTAL 371,756 100% PROPORTION OF CAPEX/TOTAL CAPEX Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 0% 0.07% CCA 0% 0% WTR 0% 0% CE 0% 0% PPC 0% 0% AMPLIFON AT A GLANCE BIO 0% 0% 143 --- ANNUAL REPORT 2024 OpEx Based on the analysis conducted, the Group does not incur operational expenses related to economic activities within the scope of the EU Taxonomy. Therefore, the numerator of the OpEx KPI is zero. Total OpEx includes expenses related to repairs and maintenance, short-term leases, and any other direct costs associated with the day-to-day maintenance of leased properties, store equipment, and other miscellaneous costs and services. The KPI, as required by Regulation (EU) 2020/852, is defined as the portion of OpEx eligible under the Taxonomy (numerator) divided by the total OpEx (denominator). STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 144 --- ANNUAL REPORT 2024 Financial Year 2024 Substantial contribution criteria DNSH criteria («Does Not Significantly Harm») (17) (20) (9) (15) (1) (10) Economic Activities (16) (6) (12) (5) (11) (8) (14) (19) (7) (13) (2) (3) (4) (18) turnover, Code OpEx Proportion of OpEx,2024 Climate ChangeMitigationClimate ChangeAdaptationWater PollutionCircular EconomyBiodiversityClimate ChangeMitigationClimate ChangeAdaptationWater PollutionCircular EconomyBiodiversittMinimum SafeguardsProportion of Taxonomyaligned (A.1.) or eligible(A.2.)2023Category enablingactivityCategorytransitional activity Yes; No; Yes; No; Yes; No; Yes; No; Yes; No; Yes; No; K€ % Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No % E T N/EL N/EL N/EL N/EL N/EL N/EL A. TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities (Taxonomy-aligned) STATEMENTS OpEx of environmentally sustainable activities 0 0% - - - - - - - - - - - - - 0% (Taxonomy-aligned) (A.1) CONSOLIDATED FINANCIAL Of which enabling 0 0% - - - - - - - - - - - - - 0% E Of which transitional 0 0% - - - - - - - 0% T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; EL; EL; EL; EL; EL; N/EL N/EL N/EL N/EL N/EL N/EL OpEx of Taxonomy-eligible but not environmentally 0 0% - - - - - - 0% sustainable activities (not Taxonomy-aligned activities) (A.2) A. OpEx of Taxonomynon-eligible 0 0% - - - - - - 0% activities (A.1+A.2) B. TAXONOMY-NON-ELIGIBLE ACTIVITIES REPORT OpEx of Taxonomy non-eligible 44,036 100% activities ON OPERATIONS TOTAL 44,036 100% PROPORTION OF OPEX/TOTAL OPEX Taxonomy-aligned per objective Taxonomy-eligible per objective CCM 0% 0% CCA 0% 0% WTR 0% 0% CE 0% 0% PPC 0% 0% AMPLIFON AT A GLANCE BIO 0% 0% 145 --- ANNUAL REPORT 2024 NUCLEAR AND FOSSIL GAS-RELATED ACTIVITIES The Group does not carry out nuclear and fossil gas-related activities. NUCLEAR ENERGY-RELATED ACTIVITIES The company engages in, finances, or has exposure to research, development, 1 demonstration, and deployment of innovative power generation facilities that produce NO electricity from nuclear processes with minimal fuel cycle waste. STATEMENTS The company engages in, finances, or has exposure to the construction and safe operation of new nuclear power plants for electricity generation or process heat CONSOLIDATED FINANCIAL 2 NO applications, including district heating or industrial processes such as hydrogen production, and the enhancement of their safety using best available technologies. The company engages in, finances, or has exposure to the safe operation of existing nuclear power plants generating electricity or process heat, including district heating 3 NO or industrial processes such as hydrogen production from nuclear energy, and improvements in their safety. FOSSIL GAS-RELATED ACTIVITIES REPORT ON OPERATIONS The company engages in, finances, or has exposure to the construction or operation of 4 NO power plants that produce electricity from fossil gas fuels. The company engages in, finances, or has exposure to the construction, refurbishment, 5 NO or operation of combined heat/cooling and power generation plants using fossil gas fuels. The company engages in, finances, or has exposure to the construction, refurbishment, AMPLIFON AT A GLANCE 6 NO or operation of heat generation plants producing heat/cooling from fossil gas fuels. 146 --- ANNUAL REPORT 2024 ESRS E1 – CLIMATE CHANGE [E1 SBM-3] – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL POSITION ALONG THE VALUE CHAIN TIME HORIZON STATEMENTS SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term CONSOLIDATED FINANCIAL Generation of GHG emissions produced throughout own operations and the value chain as a result of Actual negative Climate change mitigation the Group's activities, contributing to climate change impact Potential risk of business interruption caused by weather events that might damage Amplifon's Climate change adaptation distribution centres and affect the Group's ability to guarantee the regular distribution of hearing Risk aids and accessories to its retail network Potential risk of interruption of suppliers' production and distribution activities due to extreme weather events that might damage the production sites or distribution centers of Amplifon's direct Climate change adaptation Risk suppliers and that might reduce the availability of hearing aids and accessories for regular supply to Amplifon’s stores Risk Potential risk of changes in consumer preferences, due to increased awareness on climate, and Climate change mitigation (resulting from perception of stakeholders (e.g., investors) on Amplifon’s approach regarding climate topics impact) Potential risk of increased operational costs due to higher cost of materials and utilities used to Risk Climate change mitigation; Energy meet government requirements related to climate change (e.g., promotion of more energy-efficient (resulting from REPORT solutions, use of renewable sources, reduction of emissions) impact) ON OPERATIONS Adopting best-in-class market practices in reference to climate regulations may strengthen Amplifon's Climate change mitigation reputation, which can result in attracting more investors, as well as creating stronger partnerships with Opportunities stakeholders (e.g., financial institutions, suppliers) Risk Potential risk related to evolving climate change regulations (e.g., European Taxonomy, Green Deal, Climate change mitigation (resulting from 25 reporting) to be compliant with impact) AMPLIFON AT A GLANCE 25.This risk has been deemed material under both ESRS E1 (Climate change) and ESRS G1 (Business conduct). 147 --- ANNUAL REPORT 2024 Climate change mitigation, adaptation, and the transition to a low-carbon economy calculated as the mean of the risk exposure scores for all physical assets, identified are among the most pressing global priorities. As a leader in the hearing care sector, risks, considered climate scenarios, and different time horizons. This methodology Amplifon is committed to responsibly managing its business activities in light of the made it possible to identify the number of occurrences of climate risk in a specific potential physical and transition risks associated with climate change. These risks country and within a specific time frame. include the increasing frequency and severity of extreme weather events, as well as rising fossil fuel prices and stricter energy efficiency and climate adaptation regulations. The types of physical risks to which Amplifon is exposed vary depending on the Given the growing significance of climate-related matters, in 2023, Amplifon deepened country where the Group operates. In general, under the RCP 2.6 scenario, almost its Climate Change Risk Assessment (hereinafter also “CCRA”) as part of its Enterprise all acute physical risks, such as wildfires, flash floods, and river floods, are classified Risk Management framework, aligning with the recommendations of the Task Force as very low or low. However, depending on the specific characteristics of the country on Climate-related Financial Disclosures (hereinafter also “TCFD”). This effort aims to analysed, these risks may be classified as very high even under the RCP 2.6 scenario ensure comprehensive and transparent disclosure of climate-related risks, impacts, by 2030. In some cases, these risks, which are not progressive, may even decrease in opportunities, and management systems. the RCP 4.5 and RCP 8.5 scenarios due to increased evapotranspiration. Heatwaves and coastal flooding risks are generally classified as very low or low under the RCP Within the CCRA, Amplifon mapped potential physical and transition climate risks, 2.6 scenario by 2030. However, all of them show an increase in the RCP 4.5 and RCP STATEMENTS assessing exposure and potential impacts on both Amplifon’s own assets (offices, 8.5 scenarios. By 2050, exposure to these risks may reach high or very high levels stores, warehouses/distribution centres) and direct suppliers’ facilities (production in the RCP 8.5 scenario. Regarding windstorms, risk exposure decreases over time. CONSOLIDATED FINANCIAL sites, distribution centres). This assessment considered geographical location, potential It remains constant under the RCP 2.6 scenario and in the early timeframes of the financial impacts, operational slowdowns, and reputational risks, based on Amplifon’s RCP 4.5 scenario, but then begins to decline under the RCP 4.5 scenario. In the RCP climate strategy and that of its key suppliers. The evaluation was conducted over three 8.5 scenario, the risk of windstorms is almost negligible. This is because there is no time horizons - short-term (2030), medium-term (2040) and long-term (2050) - and scientific basis proving that the severity and frequency of windstorms are linked to applied three climate change scenarios based on scientific data. climate change. As physical risks, six extreme weather events have been considered that could have Regarding transition risks and opportunities, which stem from the shift towards a a significant impact on Amplifon’s assets and those of its direct suppliers (heatwaves, low-carbon economy, the analysis was conducted using the transition scenarios of flash floods, coastal flooding, wildfires, windstorms, and river flooding) in relation to the Network for Greening the Financial System (hereinafter also “NGFS”). the three climate scenarios defined by the Intergovernmental Panel on Climate Change (hereinafter also “IPCC”): • The Net Zero 2050 scenario assumes the introduction of ambitious climate policies. Carbon dioxide removal systems are used to accelerate decarbonisation. Net REPORT • RCP 2.6 – Orderly: timely energy transition, with a gradual reduction in greenhouse CO2 emissions reach zero around 2050, with at least a 50% probability of limiting ON OPERATIONS gas emissions starting from 2020, reaching net zero by 2100; global warming to less than 1.5°C. This scenario is comparable to the IPCC’s RCP • RCP 4.5 – Disorderly: delayed energy transition, starting from 2030, carried out in 2.6 scenario; an uncoordinated manner among countries, resulting in higher costs compared to • Delayed Transition: scenario that envisions a delayed transition. It assumes that the RCP 2.6 scenario; no new climate policies are introduced before 2030 and that the degree of action • RCP 8.5 - Hot house world: worst-case scenario, which does not foresee any varies significantly between countries. It assumes limited availability of carbon reduction in greenhouse gas emissions. Associated with the concept of “Business dioxide removal systems and higher carbon prices than in the Net Zero 2050 as usual”, where the growth of greenhouse gas emissions continues at current scenario. There is a 67% probability of limiting global warming to less than 2°C. rates. This scenario corresponds to the IPCC’s RCP 4.5 scenario; • The Current Policies scenario assumes that only existing policies remain in place, To determine the risk exposure of each asset, five risk categories have been identified allowing emissions to continue growing until 2080, leading to approximately 3°C of for each climate event. The average level of exposure for the companies analysed was global warming. This scenario aligns with the IPCC’s RCP 8.5 scenario. AMPLIFON AT A GLANCE 148 --- ANNUAL REPORT 2024 Four risk categories aligned with the Task Force on Climate-related Financial activities were identified as incompatible with the transition to a climate-neutral Disclosures were analysed, which could pose adaptation challenges for Amplifon and economy, nor were any significant exposures to climate change risks detected in its suppliers. These include policy or legal risks, technological risks, market risks, and the short, medium, and long term. Nevertheless, Amplifon remains committed to reputational risks. maintaining continuous oversight of these risk categories and will continue to assess them annually within the ERM process. The analysis was conducted on the same panel of companies selected for the climate risk assessment, defining measurement indicators for each type of risk, such as For details on the nature and type of risks identified (physical or transitional), please Scope 1 and Scope 3 emissions intensity, carbon prices, energy intensity, emission refer to the paragraph “Processes for identifying and assessing impacts, risks and reduction targets, and ESG rating performance. Each indicator was assigned a score opportunities” of the “General Information (ESRS 2)” chapter. from 1 to 5. The average exposure to all transition risks was subsequently calculated using a weighted average of the resulting scores. Finally, to adapt transition risks to the climate scenarios mentioned above and to different time horizons, the average [E1-1] TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION exposure levels were adjusted, reflecting either improving or worsening trends, based on future exposure projection trends. To strengthen its strategic environmental path, Amplifon has initiated the STATEMENTS development of a structured transition plan in 2024 aimed at progressively reducing Topics such as Amplifon’s geographical presence in Europe and the completion in its greenhouse gas emissions and actively contributing to global climate change CONSOLIDATED FINANCIAL 2024 of preparatory activities for the submission of emission reduction targets in mitigation goals. The company is committed to defining concrete actions to reduce line with the Science Based Targets initiative (hereinafter also “SBTi”) have led to the both direct and indirect emissions, with the objective of submitting the transition assessment of Amplifon’s policy and legal risk as medium. Similar considerations plan for validation by the Science Based Targets initiative (SBTi) by 2025. were made regarding technological risk, where Amplifon’s exposure was deemed low due to the characteristics of its business and activities. Taking into account emission reduction targets, energy prices, and EU regulations, Amplifon’s exposure [E1-2] POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND to market risk was assessed as medium. Finally, given that Amplifon has lower Scope ADAPTATION 3 emissions compared to the panel of companies analysed and performs better than average in ESG ratings, its exposure to reputational risk was classified as medium. In alignment with its Code of Ethics and Sustainability Policy, Amplifon is increasingly focused on environmental topics and the challenges posed by climate Extreme climate events may pose risks to Amplifon’s business, particularly in relation change, monitoring its performance and carbon footprint not only at the office to stores and distribution centres. and store level but across the entire value chain. With the adoption and update REPORT of the Environmental Policy in 2024 (refer to paragraph “Policies, actions, metrics ON OPERATIONS The final climate risk assessment was therefore integrated into the ERM process, both and targets” of the “General disclosures” chapter), the Group has formalised its quantitatively and qualitatively, with a short-, medium-, and long-term time horizon commitments towards climate change mitigation and adaptation, energy efficiency, (2030, 2040, 2050). To integrate the final assessments into ERM, two intermediate reduction of consumption, and the use of renewable energy sources, as well as climate scenarios were considered in the analysis: the IPCC RCP 4.5 climate scenario additional environmental aspects such as waste management, circularity, and water for physical risks and the NGFS “Delayed Transition” scenario for transition risks and consumption management. Specifically, the policy outlines Amplifon’s commitments opportunities. The final rating, derived from probability and impact assessments in terms of improving and monitoring environmental performance, promoting conducted together with risk owners, provides an indication of Amplifon’s residual best practices, raising awareness and providing training, ensuring compliance with risk level, taking into account the adaptation and mitigation measures already applicable regulations, maintaining transparency with stakeholders, and monitoring implemented to reduce potential negative impacts. Based on the results of analyses and managing environmental impacts, risks, and opportunities. conducted in 2023 and considering the Group’s activities and business model, no AMPLIFON AT A GLANCE 149 --- ANNUAL REPORT 2024 [E1-3] ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE [E1-4] TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND POLICIES ADAPTATION In 2024, initiatives aimed at reducing emissions impact were implemented, in line with The Group is committed to defining a structured pathway for managing climate the Group’s Sustainability Plan. The Group’s commitment, focused on greenhouse impacts, with a particular focus on reducing emissions. Although a formalised gas (hereinafter also “GHG”) emissions, resulted in various climate change mitigation transition plan is not yet in place, Amplifon is actively working on identifying concrete actions, including: measures to limit both direct and indirect emissions, with the objective of developing a structured transition plan by next year. For further details on ongoing activities • A continuous increase in the share of purchased electricity certified as sourced related to Science-Based Targets,please refer to the “Transition plan for climate from renewable energy, reaching a total of 80% of total electricity consumption. change mitigation” section of this chapter. This activity involved an investment (OpEx) of over EUR 6 million, as reported in Currently, the Sustainability Plan already includes targets aimed at reducing GHG Note 30 “Operating Costs” in the Consolidated Financial Statements; emissions, such as: achieving 100% certified renewable electricity for offices and • Within the company’s fleet of over 1,950 vehicles, 25% are electric or hybrid cars (77 directly operated stores by 2030 and surpassing 60% hybrid or electric vehicles in and 417 respectively), in order to reduce the impact caused by fuel consumption; the corporate fleet by the same year. STATEMENTS • In alignment with the rollout of the new store format, which introduces an innovative architectural design for the Group’s points of sale, the installation of CONSOLIDATED FINANCIAL LED lighting systems is currently underway; for further information on economic [E1-5] ENERGY CONSUMPTION AND MIX valorisation, please refer to the paragraph “European Taxonomy” in this chapter. In 2024, the Group continued monitoring energy consumption across its corporate headquarters and network of directly operated stores, aiming to provide stakeholders with the most complete and transparent overview of its energy performance. As in previous years, heating, air conditioning, and lighting in offices and stores accounted for the majority of the Group’s energy consumption. The remaining energy consumption is attributed to heating offices and stores, primarily from natural gas consumption, along with smaller contributions from fuel oil, district heating, and fuel consumption from the corporate vehicle fleet. Reported consumption is derived from primary data collected from shops and offices and, where not available, is estimated on the basis of average consumption in the same country, where possible, REPORT and weighted in proportion to floor space. In total, the Group consumed 72,150.40 ON OPERATIONS MWh of energy, of which 42% came from renewable sources (30,415.09 MWh). AMPLIFON AT A GLANCE 150 --- ANNUAL REPORT 2024 ENERGY CONSUMPTION AND MIX (MWh) 26 Energy consumption and mix (MWh) 2024 Fuel consumption from coal and coal products - Fuel consumption from crude oil and petroleum products 21,280.80 Fuel consumption from natural gas 10,613.88 Fuel consumption from other fossil sources - Consumption of purchased or acquired electricity, heat, steam, and cooling from 9,840.63 fossil sources Total fossil energy consumption 41,735.31 Share of fossil sources in total energy consumption (%) 58% 27 Consumption from nuclear sources - STATEMENTS Share of consumption from nuclear sources in total energy consumption (%) - CONSOLIDATED FINANCIAL Fuel consumption for renewable sources, including biomass (also comprising 67.48 industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) Consumption of purchased or acquired electricity, heat, steam, and cooling from 30,347.61 renewable sources The consumption of self-generated non-fuel renewable energy - Total renewable energy consumption 30,415.09 Share of renewable sources in total energy consumption (%) 42% Total energy consumption 72,150.40 REPORT ON OPERATIONS Based on the provisions of Commission Delegated Regulation (EU) 2022/1288, the Amplifon Group is one of the companies belonging to the “high climate impact” sectors, in particular considering the sector “retail sale of medical and orthopaedic articles in specialised stores”. Energy intensity is calculated by considering the energy consumption and the total revenues of the Group (total Group revenues as also indicated in the explanatory note 29 “Revenues from Sales and Services” within the Consolidated Financial Statements and Related Notes section of the Annual Report) and is therefore equal to 29.95 MWh/million €. 26. Values are calculated using conversion factors from the DEFRA 2024 database. AMPLIFON AT A GLANCE 27. Amplifon does not consume energy through direct supply from nuclear sources; the share of energy from nuclear sources within the composition of the national energy mix considered is deemed immaterial. 151 --- ANNUAL REPORT 2024 [E1-6] GROSS SCOPE 1, 2, 3 AND TOTAL GHG EMISSIONS Emissions intensity is instead calculated by considering the total emissions and the total revenues of the Group (total consolidated revenues as also indicated in explanatory note Since 2022, Amplifon has been measuring its carbon footprint, which includes both 29 “Revenues from Sales and Services” within the Consolidated Financial Statements direct and indirect emissions generated by the Group’s activities (Scope 1 and 2), as and Related Notes section of the Annual Report) and is therefore equal to 63.44 tCO e/ 2 well as indirect emissions identified by the GHG Protocol along the value chain (Scope million € (location-based) and 60.69 tCO e/million € (market-based). Specifically, 2 3). Among the 15 Scope 3 emission subcategories identified by the GHG Protocol, 12 compared to the previous year, carbon intensity decreased by 10% (market-based) and 28 have been deemed relevant and applicable to the Group , considering the nature of 9% (location-based), thanks to a 3% and 2% reduction in total emissions, respectively, Amplifon’s business and the absence of manufacturing activities. and an increase of more than 6% in the Group’s overall revenue. In 2024, the Group implemented an emission inventory improvement plan, enhancing the granularity and quality of primary data and calculation models, also in preparation for the submission of “near-term” decarbonisation targets to the Science Based Targets initiative (SBTi) in 2025. This activity also led to a recalculation of the 2023 baseline, which resulted in a 4.5% STATEMENTS increase in total emissions from 143,913 tCO e to 150,399 tCO e, specifically: 2 2 CONSOLIDATED FINANCIAL • categories 3.1 and 3.2 recorded a 17% increase in emissions each, due to improved data granularity, methodological changes in assumptions and emission factors, and calculation adjustments; • category 3.4 recorded an 18% decrease in emissions, thanks to improved data quality from suppliers regarding product weights and logistics flows; • category 3.6 recorded a 43% decrease in emissions due to calculation adjustments. The total emissions volume for 2024 showed a 3% reduction compared to the measurements for 2023. The 9% increase in Scope 1 and 2 emissions is attributed to higher consumption linked to new store openings and greater data coverage. Regarding Scope 3, a 4% reduction in emissions impact was recorded, primarily due to improvements in data collection, which led to the integration of more primary data REPORT and supplier-specific information into calculation models. For the calculation, primary ON OPERATIONS data from suppliers were integrated where possible, such as for direct purchases and their end-of-life in categories 3.1 and 3.12 and for business trips booked with a travel agency in category 3.6. AMPLIFON AT A GLANCE 28.The emission categories related to downstream logistics (3.9), processing of sold products (3.10), and downstream leased assets (3.13) were considered not applicable to Amplifon’s operations, as they are not present along the value chain (3.10, 3.13) or because the Group has no potential to influence their reduction (3.9). 152 --- ANNUAL REPORT 2024 SCOPE 1, SCOPE 2 AND SCOPE 3 EMISSIONS CATEGORIES Fuel and Generation of energy and heat at Capital End of life energy-related the Group’s facilities goods of sold products Activities Upstream Purchased goods Company vehicles leased Investments and services assets STATEMENTS CONSOLIDATED FINANCIAL Refrigerant Employee Upstream transportation Use of sold gases commuting and distribution products Purchase of electricity, Business Waste generated Franchisees steam, heat & cooling travels in operations UPSTREAM ACTIVITY DOWNSTREAM ACTIVITY REPORT ON OPERATIONS 91.0% Scope 3 5.1% Scope 1 3.9% Scope 2 (Market-based) 133,122 tCO e 7,507 tCO e 5,600 tCO e 2 2 2 AMPLIFON AT A GLANCE 153 --- ANNUAL REPORT 2024 TABLE - GHG EMISSIONS (tCO e) 2 % change 2023 2024 (2024 vs 2023) Scope 1 GHG emissions Gross Scope 1 GHG emissions 7,203 7,507 4% Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 29 Scope 2 GHG emissions Gross location-based Scope 2 GHG emissions 10,560 12,220 16% 30 Gross market-based Scope 2 GHG emissions 4,815 5,600 16% Significant scope 3 GHG emissions Total Gross indirect (Scope 3) GHG emissions 138,381 133,122 -4% STATEMENTS 1 Purchased goods and services 67,389 64,768 -4% 2 Capital goods 26,876 22,321 -17% CONSOLIDATED FINANCIAL 3 Fuel and energy consumption-related activities (not included in Scope 1 or 2) 3,217 3,635 13% 4 Upstream transport and distribution 6,991 7,473 7% 5 Waste generated 224 242 8% 6 Business travels 7,371 6,307 -14% 7 Employee commuting 16,254 18,780 16% 8 Upstream leased assets 2,468 2,445 -1% 11 Use of sold products 69 82 19% 12 End of life of products sold 493 230 -53% 14 Franchisees 6,249 5,992 -4% REPORT 15 Investments 780 847 9% ON OPERATIONS Total GHG emissions Total GHG emissions (location-based) 156,144 152,849 -2% Total GHG emissions (market-based) 150,399 146,229 -3% AMPLIFON AT A GLANCE 29.The databases used for the calculation of Scope 2 emissions report Emission Factors in terms of CO /kWh. 2 30.In 2024, the share of electricity covered by RECs (Renewable Energy Certificates) or Renewable Energy Contracts is 30,283.47 MWh (80% of the total), of which specifically 10,389.32 MWh (27%) covered by RECS and 19,894.15 MWh (53%) covered by Renewable Energy Contracts. 154 --- ANNUAL REPORT 2024 SCOPE 3 EMISSIONS, 2024 BY SUBCATEGORY AND MAIN EMISSION SUBCATEGORIES 1.8% - Scope 3.8 0.6% - Scope 3.15 Upstream leased assets Investments 0.2% - Scope 3.5 Waste generated in operations 2.7% - Scope 3.3 0.2% - Scope 3.12 Fuel and energy-related Activities End-of-life treatment of sold products STATEMENTS 4.5% - Scope 3.14 Franchises 0.1% - Scope 3.11 CONSOLIDATED FINANCIAL Use of sold products 4.7% - Scope 3.6 Business travel 5.6% - Scope 3.4 Upstream transportation and distribution 48.7% - Scope 3.1 14.1% - Scope 3.7 Purchased good and services REPORT Employee commuting ON OPERATIONS 16.8% - Scope 3.2 Capital Goods AMPLIFON AT A GLANCE 155 --- ANNUAL REPORT 2024 CATEGORY DATA DESCRIPTION AND METHODOLOGY EMISSION FACTORS DATABASE Emissions from heating at offices and directly operated stores, fuel consumption for company vehicles, and the use of refrigerant gases. These emissions are calculated based on primary data collected from stores and Emission factors were sourced from the DEFRA 2024 database. Scope 1 offices or, where unavailable, estimated using the average consumption for the same country, where possible, weighted according to surface area. Indirect emissions from the consumption of purchased electricity and thermal energy, calculated using both the location-based and market-based For the location-based and market-based approaches, the following approaches, based on primary data collected from stores and offices. Where databases were used: IGES 2024 (CO only), AIB 2024 (CO only), eGrid Scope 2 2 2 primary data were unavailable, emissions were conservatively estimated 2023, and national databases where available. using the same methodology as for Scope 1. STATEMENTS Emissions associated with the production of products and services For activity data (as defined by GHG Protocol), Ecoinvent 3.11 and DEFRA purchased by the Group, mainly arising from direct procurement 2024 emission factors were applied. For expenditure data, emission CONSOLIDATED FINANCIAL Cat. 3.1 (hearing devices and related accessories, water consumption) and factors from CEDA 4.01 were used. For expenditure data related to indirect procurement (marketing services, general services, consulting, material suppliers, supplier-specific emission factors were applied, 48.7% of Scope 3 and IT services). The category was calculated using a hybrid approach, calculated based on publicly available data (Scope 1, 2, and 3 GHG incorporating both activity data and expenditure data. emissions and 2024 revenue). For activity data (as defined by GHG Protocol), Ecoinvent 3.11 emission Emissions associated with the production of capital goods purchased by factors were applied. For expenditure data, emission factors from CEDA the Group, primarily linked to the store network and IT infrastructure. The Cat. 3.2 4.01 were used. For expenditure data related to material suppliers, emissions calculation follows a hybrid approach, using activity data for IT supplier-specific emission factors were applied, calculated based on 16.8% of Scope 3 equipment and materials purchased for stores renovated according to the publicly available data (Scope 1, 2, and 3 GHG emissions and 2024 new store format, where available. revenue). Emissions from activities related to fuel and energy consumption. Cat. 3.3 REPORT The calculation is based on the same activity data used to estimate Scope 1 Emission factors were sourced from the IEA database. 2.7% of Scope 3 and 2 emissions. ON OPERATIONS Emissions generated by the transport of products purchased by the Group (hearing devices, related accessories, and packaging). Upstream logistics emissions were calculated using the distance-based method, considering Cat. 3.4 kilometres travelled and tonnes of goods transported. For countries where Emission factors were sourced from the DEFRA 2024 database. the number and location of stores were not provided, conservative distance 5.6% of Scope 3 averages were applied. In 2024, Amplifon initiated a detailed mapping of goods flows in collaboration with several suppliers, significantly improving the representativeness of the logistics emissions calculation. AMPLIFON AT A GLANCE 156 --- ANNUAL REPORT 2024 CATEGORY DATA DESCRIPTION AND METHODOLOGY EMISSION FACTORS DATABASE Emissions from the management and treatment of waste generated in Cat. 3.5 stores and offices. The calculation was based on the weight of the waste. In For the calculation, Ecoinvent 3.11 and DEFRA 2024 emission factors cases where data were unavailable, waste volumes were estimated using were applied, depending on the type of waste and its disposal method. 0.2% of Scope 3 average waste weights per surface area. Emissions generated by employee travel for business purposes, including air travel, train journeys, private and rental cars, taxis, as well as emissions For the calculation, DEFRA 2024 emission factors were used for Cat. 3.6 related to hotel stays. Primary data on distances travelled by mode of transport emissions, and Cornell Hotel Sustainability Benchmarking 4.7% of Scope 3 transport and hotel stays were centrally collected from the Travel Agency, Index 2023 was applied for hotel stays. while expenditure data were provided for taxis and rental cars. Emissions associated with employee commuting, calculated using primary STATEMENTS Cat. 3.7 data obtained from a mobility survey conducted on a significant sample of For the calculation, DEFRA 2024 emission factors were used. employees and extrapolated to the total number of Amplifon employees as 14.1% of Scope 3 CONSOLIDATED FINANCIAL of 2024. Emissions associated with upstream leased assets and franchisees, For the calculation, DEFRA 2024 emission factors were used for natural Cat. 3.8, 3.14 calculated using a hybrid model based on estimated average gas and gas, AIB 2024 was applied for electricity consumption, and CEDA 4.01 electricity consumption in directly operated stores and rental expenditure 6.3% of Scope 3 was used for expenditure-based data. data for shop-in-shops and corners. Emissions related to the use of sold products, calculated based on electricity For the calculation, market-based electricity grid emission factors from Cat. 3.11 consumption activity data for each hearing device (both rechargeable and the countries where hearing devices are sold were sourced from AIB 0.1% of Scope 3 non-rechargeable) throughout its lifecycle. 2024 and IGES 2024 databases. Cat. 3.12 Emissions from the end-of-life phase of sold products, calculated using For the calculation, Ecoinvent 3.11 and DEFRA 2024 emission factors REPORT primary weight data collected under Category 3.1 (direct procurement). were applied. 0.2% of Scope 3 ON OPERATIONS Cat. 3.15 Emissions from the Group’s investments in third-party companies, For the calculation, emission factors from CEDA 4.01 were used. calculated using the equity share approach. 0.6% of Scope 3 AMPLIFON AT A GLANCE 157 --- ANNUAL REPORT 2024 SOCIAL INFORMATION ESRS S1 – OWN WORKFORCE STRATEGY IN PEOPLE MANAGEMENT [ESRS S1 – SBM-3] MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL POSITION ALONG THE VALUE CHAIN TIME HORIZON STATEMENTS CONSOLIDATED FINANCIAL 31 SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Enhancement of employee skills (both field force and back-office) through training Equal treatment and opportunities for all and professional development programmes, coaching and mentorship activities, and Actual positive Training and skills development onboarding initiatives, leading to positive outcomes in terms of personal growth for impact employees Equal treatment and opportunities for all Negative consequences on the company’s perceived attractiveness due to a decline in Potential negative Training and skills development engagement perception and insufficient talent attraction initiatives impact Equal treatment and opportunities for all Concrete commitment to fostering an ethical work environment, centred on inclusivity, Employment and inclusion of persons with disabilities; Actual positive equity, and human rights protection, thereby promoting employee satisfaction, freedom Measures against violence and harassment in the impact of expression, representation, and safety workplace; Diversity. Working conditions Potential talent loss and low retention rates due to a slowdown in career progression Potential negative REPORT Working time; Adequate wages; Work-life balance (linked to working conditions and remuneration) impact ON OPERATIONS Employee well-being and satisfaction, as well as trust in the company, fostered by the Working conditions Actual positive implementation of dedicated welfare and well-being programmes (e.g., parental support, Working time; Work-life balance impact services for caregivers) Equal treatment and opportunities for all Employment and inclusion of persons with disabilities; Potential discrimination against certain categories of employees in the workplace, Potential negative Measures against violence and harassment in the including psychological harassment and/or unequal treatment impact workplace; Diversity The fast business growth and the increasing organization complexity of Amplifon may Working conditions represent a challenge in identifying, attracting and retaining the talents requested for Risk (resulting Working time; Adequate wages conducting the business as well as in developing a talent pipeline for the succession plan from impact) process Equal treatment and opportunities for all Amplifon could rely on its positive reputation and perception as an inclusive and Employment and inclusion of persons with disabilities; Skill sustainability-driven organization that is also proactive in the promotion of a diverse and Opportunities development and training; Diversity inclusive environment, to improve talent attraction and retention AMPLIFON AT A GLANCE 31. It is specified that, at present, the Group has not identified any material impacts on personnel arising from transition plans aimed at reducing negative environmental impacts and achieving more sustainable and carbon-neutral operations. Furthermore, given the nature of the Group’s business and operations, no risks of forced or compulsory labor have been identified. As part of the process of defining material risks related to its workforce, the functions involved have not highlighted any risks related to child labour. In both categories of the Company’s own workers considered, there have been no specific types of workers (e.g., persons with disabilities) who may be more exposed to the potential negative impacts identified by the Group. 158 --- ANNUAL REPORT 2024 In relation to the identified impacts, whether positive or negative, Amplifon considers As a testament to this commitment, in 2024, Amplifon was certified as a “Top and discloses in this report the related management approaches for all its workforce. Employer 2025” for the fourth consecutive year across 16 countries: Germany, This approach reflects the specific activities carried out by the business and the Italy, Spain, France, Portugal, the Netherlands, the United States, Canada, Panama, absence of impacts associated solely with specific situations or isolated incidents. Colombia, New Zealand, Belgium, Argentina, Chile, Ecuador, and Australia. Notably, the certification was achieved for the first time this year in the last five countries. The Group’s HR strategy reflects both the rapid growth of the business and the Additionally, Amplifon was recognised as a Top Employer in three regions: Europe, commitment to further consolidating Amplifon’s global leadership in the hearing North America, and, for the first time, Latin America. care market. These factors have enabled the development of a global HR strategy that effectively responds to the challenges of an increasingly complex and dynamic landscape. By leveraging the professionalism and talent of all employees, this strategy supports the achievements of business objectives. The Amplifon Group’s workforce of 20,926 in 2024 consists of 72% employees and 28% non-employees: STATEMENTS CONSOLIDATED FINANCIAL EMPLOYEES The Group’s employees, amounting to 15,070 (72% of the total workforce), are divided into back-office employees (workforce operating in Amplifon’s offices, including Executives, Directors, Managers, and Professionals) and field force (employees working in sales outlets across different territories, including Field Management, HC Professionals, HA Specialists, and client advisors). NON-EMPLOYEES Non-employees, amounting to 5,856 (28% of the total workforce), carry out complementary or support functions for employees, either in back-office roles (e.g., BoD Members, agency workers, consultants, trainees or interns) or within the field force (typically HA Specialists and Client Advisors). REPORT ON OPERATIONS Amplifon ensures that all its employees operate in an ethical working environment that fosters inclusivity, equity, and human rights protection. This is achieved through the implementation and communication of the Group’s Code of Ethics, which guarantees that all activities are conducted in compliance with the law, in a framework of fair competition, and in full respect of customer needs and the legitimate interests of employees, shareholders, business and financial partners, and the communities in which the Group operates. Furthermore, to foster well-being and employee satisfaction, the Group offers a personalised well-being programme, tailored to the regulatory requirements and best practices in each of the countries where Amplifon operates. This programme is continuously improved each year to ensure alignment with local and international compliance requirements, positioning Amplifon as a fair employer while ensuring that well-being initiatives are recognised as a strategic lever within the Group’s policies. This is considered a key factor in enhancing the Group’s AMPLIFON ability to attract, retain, and engage top talents. AT A GLANCE 159 --- ANNUAL REPORT 2024 MANAGEMENT OF IMPACTS, RISKS, AND OPPORTUNITIES CONCERNING THE GROUP’S WORKFORCE [S1-1] POLICIES RELATED TO OWN WORKFORCE In line with the principles of the UN Global Compact, the Universal Declaration 1. CULTURAL BACKGROUND of Human Rights, and in compliance with the International Labour Organization Amplifon places great value on bringing together individuals with diverse STATEMENTS Conventions on Fundamental Human Rights, Amplifon is committed to upholding cultures, backgrounds, ethnicities, languages, religions, and nationalities, as fundamental human and labour rights in all the countries where it operates. This this diversity fosters innovation, accelerates growth, and enhances decision- CONSOLIDATED FINANCIAL commitment extends to both its business activities and its relations with third making capabilities. parties, condemning all forms of forced and child labour while ensuring labour rights protection. Amplifon’s commitment to promoting respect for workers’ rights and ensuring dignified, respectful, and safe working conditions is explicitly outlined in its 2. GENDER Sustainability Policy. Additionally, Amplifon takes a proactive approach to engaging Amplifon believes in gender equality and promotes principles and actions its stakeholders, particularly its own workforce, to identify and address any potential aimed at improving equal opportunities, eliminating any potential barriers, or actual impacts on human rights. The Company is committed to monitoring including those related to sexual orientation, gender identity, and work-life negative human rights impacts, both current and potential, and implementing balance. corrective measures where necessary to prevent and/or remediate such impacts. The Group’s whistleblowing system also allows the reporting of aspects covered within the Group’s Code of Ethics, including human rights, thus ensuring a secure 3. RACE and confidential channel for reporting any violations or concerns regarding the Amplifon is committed to identifying and combating all forms of racism to REPORT protection of fundamental rights of its workforce. create a better future for future generations. All populations and ethnicities ON OPERATIONS are welcome and protected at Amplifon. The Group’s HR strategy reflects both the rapid growth of the business and the commitment to further consolidating Amplifon’s global leadership in the hearing care market. In line with the contents of the Code of Ethics and the Sustainability 4. DISABILITY Policy, in 2022 the global DEIB (Diversity, Equity, Inclusion, Belonging) Policy was Amplifon is committed to promoting the inclusion of people with disabilities formalised and approved; please refer to the paragraph “Policies, actions, metrics and is continuously working to make the workplace safe and inclusive for all. and targets” in the chapter “General disclosure (ESRS 2)” for more information), which consolidates the importance Amplifon attributes to an impartial, fair and inclusive work environment. With the aim of valuing human differences, the policy covers, 5. GENERATIONS among others, the following aspects: Amplifon fosters an inclusive work environment, embracing the presence of five generations and recognising the benefits of diverse values and experiences. Amplifon’s mission is to ensure that in the company, employees of all ages, feel valued. AMPLIFON AT A GLANCE 160 --- ANNUAL REPORT 2024 To ensure a consistent commitment at every organisational level, the policy outlines To ensure the effective implementation of the policy across business processes, specific actions regarding: Amplifon has developed a DEIB Action Plan, outlining current and future initiatives that will enable the company to translate the four pillars of the policy into concrete • developing a work environment rooted in diversity, fostering a tolerant, flexible, actions. and collaborative culture that adapts to the evolving needs of professional contexts; • emphasising equity as fairness and justice, acknowledging that not all individuals Furthermore, such policy is implemented in daily operations through specific are equal due to historical or systemic biases. Amplifon strongly believes in procedures aimed at preventing, reducing, and addressing discrimination while encouraging people to develop their unique talents and express their full potential, actively promoting diversity and inclusion, particularly in the following areas: welcoming anyone who can bring tangible value to the organisation and ensuring equal opportunities for all employees; • Selection: Amplifon assesses a diverse pool of candidates in terms of gender and • creating a workspace where everyone feels included, safe, and free to embrace age, ensuring a selection process focused on leadership, business, and technical their unique ideas and habits, feeling empowered and motivated. This commitment skills, conducted in a clear, transparent, evidence-based manner, free from any also extends to foster the inclusion of people with disabilities. In this regard, the discriminatory criteria. All stakeholders involved in the selection process receive Group is committed to providing access to training and development initiatives to training to ensure a bias-free evaluation, and all recruitment materials (e.g., job STATEMENTS support and enhance the careers and personal growth of all its people; descriptions) avoid any mention of personal characteristics or preferences, • fostering a culture of belonging that enables everyone to be themselves, express adhering to the principle of non-discrimination. CONSOLIDATED FINANCIAL themselves freely, and be creative and innovative, unlocking their full potential. The Group’s commitment translates into creating a workplace free from discrimination • Training: Amplifon promotes training and development programmes designed and harassment, where all employees can voice their opinions and report to connect individuals with different experiences, backgrounds, functions, and inappropriate behaviour. countries, allowing each employee to broaden their knowledge continuously and achieve professional growth solely based on merit. Through dedicated training programs (both digital and non-digital), available to employees, the Group promotes specific content to enhance diversity, encourage inclusive (bias-free) behaviours, communicate effectively across different cultures within the Group, and encourage intergenerational work and teams composed of different nationalities (e.g., the Managing across Cultures training). Furthermore, the Group strongly believes in global internal mobility as a catalyst for personal and professional growth. To facilitate movement within the Group, Amplifon implemented a competitive Global REPORT Mobility Policy. ON OPERATIONS • Performance evaluation and compensation: Individual performance assessments are based on a globally standardised framework of objectives and behaviours, without any geographical or gender-based distinctions. Additionally, equity principles embedded in the Group’s Remuneration Policy ensure full ethical integrity and fairness in the performance and compensation review process. During the definition of individual annual objectives, the Group encourages employees and managers to reflect on personal talents and strengths, ensuring that the process is conducted free from bias, as is the case in the Talent Review process. AMPLIFON AT A GLANCE 161 --- ANNUAL REPORT 2 0 2 4 • Delivery of a dedicated interactive training programme for the global senior leadership on diversity and unconscious bias management: This initiative aims at increasing awareness on diversity and unconscious biases, enhancing the management of global teams through a dedicated training programme for the Global Senior Leadership. The programme is designed to increase awareness of Diversity and Unconscious Bias issues, contributing to the creation of an inclusive and sustainable work environment. The training was delivered in person to Chief Officers, Regional VPs, their first-line reports (Directors: General Managers, and Regional Directors), as well as the DEIB Committee and Core Team, in alignment with the objective set out in the 2024 Sustainability Plan. • Online training on sustainability and diversity: three online courses on Sustainability and Diversity were assigned via the Ampli-Academy platform to the entire global back office population. The training sessions aimed to increase STATEMENTS awareness of the environmental impact of work activities and promote an inclusive, discrimination-free workplace. The courses covered topics such as energy CONSOLIDATED FINANCIAL efficiency, waste reduction, water resource consumption, workplace discrimination and harassment. Additionally, all Amplifon employees receive training on the Supplier Code of Conduct. The aim of the training is to increase awareness and knowledge of these issues and create a sustainable and inclusive work environment. This initiative supports the target of delivering two hours of training per capita for the back office workforce. The scope of application includes all direct employees within the back office area. Amplifon’s Code of Ethics defines guidelines applicable to all employees and third parties acting on behalf of the Group, ensuring the maintenance of a safe and healthy work environment and encouraging active participation in risk prevention and health and safety protection for themselves, colleagues, and third parties. Given the nature REPORT of the Group’s activities and the tools and procedures in place to comply with local ON OPERATIONS and regional regulations, the business presents a low level of occupational injury risk. Nevertheless, specific organisational models are in place in the countries where the Group operates to comply with local safety regulations and standards. In 2024, Amplifon S.p.A. and Amplifon Italia obtained the Gender Equality Certification from Winning Women Institute for the third time. As the first certification of its kind in Italy, based on the Dynamic Model Gender Rating methodology, it recognises the long-term commitment of Italian companies to valuing and fostering diversity—two fundamental principles of Amplifon’s philosophy in promoting equal opportunities across all aspects of employment. The Gender Equality Certification particularly acknowledged the tangible results achieved by the Group over the past three years in the framework of the “People Empowerment” pillar of the Sustainability Plan, which embraces diversity as a driver of enrichment and a key lever for corporate performance. AMPLIFON AT A GLANCE 162 --- ANNUAL REPORT 2024 [S1-2] PROCESSES FOR ENGAGING WITH OWN WORKFORCE AND applied. Collective bargaining agreements or equivalents cover all employees in WORKERS’ REPRESENTATIVES ABOUT IMPACTS countries where mandated by local regulations or partially, depending on local legal frameworks and specific contractual provisions. In 2024, 4,998 employees As part of its commitment to stakeholder engagement, Amplifon employs various were covered by collective bargaining agreements, representing 33.2% of the total channels to interact directly with its employees while also engaging with trade workforce. union representatives, who play a central role in advocating for workers’ needs and concerns. The following activities are aimed at identifying, managing, and addressing any impacts that the Group may have on its employees. Employee engagement [S1-3] PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS activities, which can range from formal consultations to informal meetings, ensure FOR OWN WORKFORCE TO RAISE CONCERNS that every individual within the Group has the opportunity to express their opinions. Among the most representative engagement initiatives are: Amplifon’s operations are based on the principles of lawfulness, fairness, honesty, integrity, equity, transparency, and efficiency, adopting internal policies and • Double materiality: through a selected population of the Group’s employees, operational processes aimed at preventing negative impacts on the well-being and evaluations were gathered regarding specific impacts affecting its workforce. This safety of its workforce. Amplifon employees and those working on behalf of the STATEMENTS activity allowed employees to provide direct feedback in four dedicated dialogue company are encouraged to report any concerns or complaints regarding harassment, sessions. For further details regarding update frequency and implementation alleged illegal behaviour, or other issues, directly to their manager or through the CONSOLIDATED FINANCIAL responsibilities, please refer to paragraph “Amplifon’s double materiality” of the Group’s independent whistleblowing mechanism. This tool defines the rules and “General disclosures (ESRS 2)” chapter. communication channels for reporting, ensuring confidentiality, any violations, suspected violations, or non-compliance with the Code of Ethics, Anti-Corruption • ”Your Voice”: a global survey conducted every two years and dedicated to all Policy, internal policies and procedures, including 231 Model, and applicable laws and employees of the Group, aimed at developing targeted action plans based on regulations. It should be noted that the whistleblowing channel can also be accessed the results obtained. The survey investigates topics such as job satisfaction, the anonymously and operates through a digital platform known as e-Whistle, which is purpose of one’s work, workplace happiness, and employee stress levels. The most powered by a proprietary third-party software. This platform enables simple, secure, recent edition was conducted in 2023, involving 12,000 employees, including, for and confidential reporting, while also allowing for confidential follow-ups between the first time, China and the company acquired in 2021 in Australia (Bay Audio Pty the whistleblower and the investigating party, should further clarification be needed. Ltd., hereinafter also “Bay Audio”). The company ensures that all employees are aware of these tools and how to access The next edition of the survey is scheduled for November 2025. them, through training sessions provided during the onboarding process, as well The HR function, coordinated by the Chief Human Resources Officer, is responsible as periodic company-wide communications. The company does not operate any REPORT for the implementation. For further details on results, engagement activities, and additional specific channels for its own workforce. ON OPERATIONS their effectiveness, refer to paragraph “Sustainability governance” of the “General disclosures (ESRS 2)” chapter. • Whistleblowing Reporting Mechanism: a process that allows all Group employees to confidentially and securely report any violations of the Code of Ethics, laws, regulations, internal policies, and procedures. For further information, please refer to paragraph “Policies, actions, metrics and targets” of the “General disclosures (ESRS 2)” chapter. • Interactions with trade union representatives: Amplifon establishes contractual conditions directly with its employees in line with local best practices. Where applicable, collective labour agreements or equivalent contracts are AMPLIFON AT A GLANCE 163 --- ANNUAL REPORT 2024 ACTIONS, METRICS AND TARGETS EQUAL TREATMENT [S1-4] TAKING ACTION ON MATERIAL IMPACTS AND APPROACHES AND OPPORTUNITIES FOR ALL TO MITIGATING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO OWN WORKFORCE, AND EFFECTIVENESS Performance Development Review (PDR) OF THOSE ACTIONS AND APPROACHES • Annual performance evaluation process for back office and Field Management [S1-5] TARGETS RELATED TO MANAGING MATERIAL IMPACTS, personnel (Area Managers, Regional Managers, Training Managers, and Field ADVANCING POSITIVE IMPACTS, AS WELL AS TO RISKS AND Trainers) to monitor individual performance and promote behaviours aligned with OPPORTUNITIES the Group’s leadership model across six dimensions: Strategic Thinking, Driving Success, Outstanding Execution, Building Relationships, People Champion and The Group is continuously committed to address potential negative impacts, Pioneering Change. To support employees in understanding the process and the enhancing positive impacts and managing risks concerning its own workforce. To this tools available for their professional development, regular training sessions are STATEMENTS end, the Group has developed targeted actions, setting specific objectives, metrics, organised for the involved personnel. These sessions aim to equip Directors and and targets, and allocating appropriate resources. The management of workforce- Managers with a clear understanding of their role in fostering the professional CONSOLIDATED FINANCIAL related matters involves various corporate functions, particularly the Human growth of their teams, while also empowering professionals with strong awareness Resources department, which, in synergy with other relevant functions, collaborates of their role in shaping their own development path within Amplifon. At a Group to continuously monitor and improve the working environment, promote training, level, in 2024, 88.8% of employees were included in the performance evaluation enhance talent development, and protect employees’ rights. The following sections process, excluding only those who, due to specific circumstances, could not take outline the key actions undertaken, along with the related measurement metrics and part (e.g. employees on long-term maternity/paternity leave or extended leave, objectives, where applicable. employees under study-work contracts with different evaluation mechanisms). This initiative is aligned with the Sustainability Plan’s objective of ensuring a robust succession pipeline for key roles. WORKING CONDITIONS Group Benefit Strategy – A common strategy has been developed for the entire Group, aimed at ensuring a consistent and competitive employee benefits offering REPORT across the various geographical areas in which Amplifon operates. This initiative ON OPERATIONS aims to integrate benefits as a strategic lever within the Total Reward Strategy, enhancing employee motivation, satisfaction, and organisational well-being. This project, primarily involving back office employees, will be implemented in the current financial year. Pay transparency and equality – Definition of a global strategy and action plan to align with the objectives of the new European Directive on Pay Transparency and Gender Pay Equality, adapting them to specific non-European countries where 46% 30% local directives already exist. This initiative aims at identifying regulatory impact areas, engage and raise awareness among internal stakeholders, plan targeted > PERCENTAGE OF TALENTS & HIGH > PERCENTAGE OF TALENTS & HIGH interventions, and strengthen the necessary competencies. The Group’s strategy PERFORMERS PER YEAR IN THE PERFORMERS PER YEAR IN THE FIELD focuses on ensuring equitable and transparent pay at all organisational levels, BACK-OFFICE POPULATION FORCE POPULATION ACCORDING TO with particular attention to back office employees. The actions are scheduled for THE NEW ASSESSMENT SYSTEM completion during the two-year period 2025-2026. This initiative aligns with the AMPLIFON Plan’s objective of promoting equal opportunities at all corporate levels. AT A GLANCE 164 --- ANNUAL REPORT 2024 • For the field force workforce (hearing care professionals, Client Advisors, and other Training activities - The Group promotes training and development programmes store personnel), the Group has developed a new performance monitoring system, designed to connect individuals with different experiences, backgrounds, functions, launched in 2023. By tracking store visits, target achievements, and individual and countries, allowing each employee to broaden their knowledge continuously and qualitative assessments for each role, this process ensures alignment with the achieve professional growth solely based on merit. Among the numerous training Group’s business performance. The new approach has enhanced efficiency and activities provided during 2024, which can be quantified at a cost of more than EUR automation for those subject to the evaluation as well as for Area Managers, who 11 million, as reported in Note 30 ‘Operating Costs’ within the Consolidated Financial are responsible for conducting the reviews. From a technological perspective, the Statements, the following are worth mentioning: new system has been integrated into the existing digital platform used for business monitoring, allowing Area Managers to access a single entry-point for the majority • The expansion of training offerings for back office employees, including the of their tasks. The new process was launched in 2023 across nine countries, introduction of the “Coursera 4 Work” programme, providing access to over 80 expanded to four additional countries in 2024, and will continue to be rolled out courses, alongside internal Amplifon training and courses delivered by external across the Group in alignment with the technological roll-out roadmap. partners, for a total of more than 20,000 courses. This initiative aims to enhance both functional and cross-disciplinary skills among back office employees, Your Voice - A global survey conducted every two years and open to all employees of ultimately contributing to improved individual and team performance. Support for STATEMENTS the Group, aimed at developing targeted action plans based on the results obtained. skills development essential for sustainable business growth, in line with the target The most recent edition was conducted in 2023, involving 12,000 employees, including, of 24 hours of training per back office employee (including at least two hours on CONSOLIDATED FINANCIAL for the first time, China and the company acquired in 2021 in Australia (Bay Audio). For sustainability and DEIB) throughout the year. the first time, the survey structure was differentiated between back office and field force employees, increasing the relevance of questions for each workforce segment. In this latest edition, the highest-ever participation rate (87%) was recorded, with over 10,400 responses and more than 24,500 qualitative comments. 88% of Group employees provided a positive opinion of the company, maintaining a consistently strong result in line with the 2021 edition. In 2024, countries defined and implemented action plans based on survey feedback, targeting key areas for improvement identified through the 3.4 2.9 4.1 survey. Additionally, in 2024, Amplifon expanded its Listening Strategy by launching offboarding surveys sent to employees who voluntarily leave the company. This > AVERAGE NUMBER > AVERAGE NUMBER > AVERAGE NUMBER initiative aims to maximise employee feedback throughout their career with Amplifon, OF DAYS OF TRAINING OF HOURS OF OF TRAINING DAYS PER supporting continuous improvement and understanding of the external job market. PER BACK-OFFICE SUSTAINABILITY FIELD FORCE EMPLOYEE REPORT The engagement survey includes specific questions such as “My team/workgroup 32 EMPLOYEE PER YEAR TRAINING PER PER YEAR ON OPERATIONS has a culture in which employees appreciate the differences that people bring to the BACK-OFFICE EMPLOYEE workplace” and “Amplifon does a good job of communicating with employees”. These PER YEAR enable monitoring and deeper understanding of employee perspectives, particularly for those more vulnerable to workplace impacts or marginalisation. The next survey is scheduled for November 2025. AMPLIFON AT A GLANCE 32.Including non-employee field force, excluding franchisees. 165 --- ANNUAL REPORT 2024 Leadership training and development programmes - In 2024, the Group updated • Professional development of the field force - To support the professional its Leadership Programme offering, aligning it with its transformation journey, HR growth of the field workforce, the Global Retail Academy, AmpliWay, has expanded processes, Leadership Model, and Employee Experience. The following training and its training offer, focusing on key skills for the Group’s sales force, delivering a total development programmes have taken place in collaboration with leading partners: of 509,003 hours of training to both direct and indirect field staff. This initiative has contributed to improving performance and enhancing the customer experience. • BE Leader: in partnership with ESADE Business School, this programme aims to The training offering is structured around three key pillars: Onboarding, which accelerate the development of managers who will take on People Leader roles in develops fundamental skills for the role at Amplifon; Performance, which supports the near future. the achievement of business objectives; Change and Transformation, which • BE Manager: delivered locally based on a global template, this programme focuses on change management and innovation within company protocols. This supports managerial development, fosters a shared culture, strengthens the High skills development approach aligns with the Group’s Sustainability Plan target of at Performing Team approach, and helps managers develop their teams. least three days of training for field force employees per year. • RIDE the Change: dedicated to young back office talents, this programme enhances digital skills to drive a culture of change and innovation. You@Amplifon - This initiative was created to ensure a consistent and high-quality work experience for all employees. The programme includes various moments of STATEMENTS discussion, updates, and internal sharing, supporting employees in their career journey from their entry into Amplifon to their professional growth. The programme CONSOLIDATED FINANCIAL centres on inclusion, achievements, recognition, and the enhancement of milestones reached, making it easier for employees to take an active role in shaping their career development. The approach is tailored to the unique characteristics and aspirations of each individual, allowing for a personalised career path. Career Compass - Introduced in 2023, this employee development tool is designed to guide employees through their career journey at Amplifon. The “Compass” is completed with the support of the direct manager, enabling employees to identify potential next career steps and plan development actions accordingly. Gender pay gap reduction - Implementation of a digital salary review system across all Group countries, aimed at ensuring global consistency and a meritocratic approach REPORT based on individual performance. This process seeks to maintain a balance between ON OPERATIONS internal equity and external competitiveness, reinforcing employee retention and engagement. The initiative targets direct employees within the back office area, with completion expected by 2024, contributing to promoting a fair and transparent work environment. AMPLIFON AT A GLANCE 166 --- ANNUAL REPORT 2024 Global Employer Value Proposition (EVP) - Review and creation of a new Employer Value Proposition, aimed at strengthening Amplifon’s position as an employer of choice in both the internal and external job market. This initiative aims to enhance brand perception and awareness among candidates for back office (junior and senior) and front office (HCP and CA) positions, as well as improve talent retention within the Group. The EVP launch and its associated communication campaign are scheduled for Q1 2025, with a follow-up plan in the following months. Creating a robust and high-quality talent pipeline for key roles within the Group is a primary objective of this initiative, involving both external candidates and internal talent on a global scale. This action aligns with the Sustainability Plan’s objective of ensuring a winning, healthy, and inclusive workplace, also supporting the attainment of the Global Top Employer certification by 2026. Women’s Empowerment Principles - Since early 2022, the Group has adhered to STATEMENTS the Women’s Empowerment Principles (WEPs) established by UN Women and the UN Global Compact. These principles guide organisations in promoting gender equality CONSOLIDATED FINANCIAL and women’s empowerment in the workplace, market, and community. In line with international labour and human rights standards, the WEPs acknowledge the role and responsibility of businesses in advancing gender equality and women’s empowerment. Valore D - Since July 2022, Amplifon S.p.A. has been a member of Valore D, the first association of companies in Italy (with over 350 members) dedicated to gender balance and fostering an inclusive corporate culture. Alongside other companies driving workplace inclusivity, Valore D promotes change based on the belief that “diversity is strength”, not only in terms of equality and fairness but also for economic and social growth. REPORT ON OPERATIONS 53% 23% > PERCENTAGE OF FEMALE > PERCENTAGE OF FEMALE EMPLOYEES IN THE GLOBAL BACK EMPLOYEES IN THE GLOBAL OFFICE POPULATION LEADERSHIP POPULATION AMPLIFON AT A GLANCE 167 --- ANNUAL REPORT 2024 EMPLOYEES BY PROFESSIONAL CATEGORY AND GENDER (FIELD FORCE) CHARACTERISTICS OF AMPLIFON’S 2023 2024 no. % no. % EMPLOYEES HA professionals 6,484 53.8% 6,854 54.2% (qualified by law/certified) Male 1,822 28.1% 1,879 27.4% [S1-6] CHARACTERISTICS OF THE UNDERTAKING’S EMPLOYEES Female 4,662 71.9% 4,966 72.5% The following tables provide a quantitative breakdown of Amplifon’s workforce. Other - - 1 0.0% The information presented includes the number of employees broken down by Not reported - - 8 0.1% gender, professional category, geographical area, contract type, and the number HA professionals of contracts terminated as of 31/12/2024. At the end of 2024, Amplifon employees 533 4.4% 537 4.2% (apprentices or equivalents) 33 total 15,070 people , reflecting an increase of over 5% compared to 2023. In fact, Male 189 35.5% 198 36.9% STATEMENTS in 2024, Amplifon’s employee turnover rate stood at 22.6% (equivalent to 3,402 Female 344 64.5% 332 61.8% employees), with 21.8% for men and 22.9% for women. All employees are guaranteed CONSOLIDATED FINANCIAL equal opportunities and fair working conditions. This commitment is evident in the Other - - - 0.0% significant presence of women across the entire organisation, representing over 72% Not reported - - 7 1.3% of total employees (more than 77% of the field force and around 53% of the back Client advisor and office workforce), and approximately 46.5% of all managerial positions. Additionally, 4,312 35.8% 4,531 35.8% other shop personnel 34 almost half of the workforce is employed in STEM roles, and among them, more Male 390 9.0% 423 9.3% than 70% are women. Female 3,922 91.0% 4,094 90.4% It should be noted that in the following tables, the categories “other” and “not Other - - 1 0.0% reported” in the gender breakdown are reported only for the 2024 reporting year. Not reported - - 13 0.3% Field management 729 6.0% 720 5.7% Male 343 47.1% 340 47.2% REPORT EMPLOYEES BY GENDER Female 386 52.9% 380 52.8% ON OPERATIONS 2023 2024 Other - - - 0.0% no. % no. % Not reported - - - 0.0% Male 3,838 26.7% 3,976 26.4% Total field force 12,058 100.0% 12,642 83.9% Female 10,541 73.3% 11,061 73.4% of which male 2,744 22.8% 2,840 22.5% Other - - 2 0.01% of which female 9,314 77.2% 9,772 77.3% of which others - - 2 0.0% Not reported - - 31 0.2% of which not reported - - 28 0.2% Total Group 14,379 15,070 100% 33.Consistent with Note 30 “Operating Costs” in the Consolidated Financial Statements and Related Notes. 34.STEM (Science, Technology, Engineering, Mathematics) roles at Amplifon include scientific, technological, engineering, and mathematical positions across various functions such as IT, digital, finance, medical, and AMPLIFON other related departments. AT A GLANCE 168 --- ANNUAL REPORT 2024 EMPLOYEES BY PROFESSIONAL CATEGORY AND GENDER EMPLOYEES BY GEOGRAPHICAL AREA (BACK OFFICE) 2023 2024 2023 2024 no. % no. % Udm Executives 15 0.6% 14 0.6% EMEA n. 8,496 8,499 Male 13 86.7% 13 92.9% AMERICAS n. 2,065 2,449 Female 2 13.3% 1 7.1% APAC n. 3,482 3,761 Other - - - 0.0% CORPORATE n. 336 361 Not reported - - - 0.0% Total Group n. 14,379 15,070 Directors 215 9.3% 240 9.9% Male 154 71.6% 181 75.4% STATEMENTS Female 61 28.4% 59 24.6% Other - - - 0.0% CONSOLIDATED FINANCIAL Not reported - - - 0.0% Managers 457 19.7% 491 20.2% Male 242 53.0% 248 50.5% Female 215 47.0% 243 49.5% Other - - - 0.0% Not reported - - - 0.0% Professionals 1,634 70.4% 1,683 69.3% Male 685 41.9% 694 41.2% Female 949 58.1% 986 58.6% REPORT Other - - - 0.0% ON OPERATIONS Not reported - - 3 0.2% Total back office 2,321 21.3% 2,428 16.1% of which male 1,094 47.1% 1,136 46.8% of which female 1,227 52.9% 1,289 53.1% of which others - - - 0.0% of which not reported - - 3 0.1% AMPLIFON AT A GLANCE 169 --- ANNUAL REPORT 2024 EMPLOYEES BY GEOGRAPHICAL AREA AND GENDER EMPLOYEES BY CONTRACT TYPE, EMPLOYMENT TYPE AND GENDER 2024 2023 2024 no. % no. % Udm Male Female Other Not reported Total Group EMEA no. 2,297 6,179 1 22 8,499 Number of employees 14,379 100.0% 15,070 100.0% Italy 181 257 - - 438 Male 3,838 26.7% 3,976 26.4% Spain 422 1,596 - - 2,018 Female 10,541 73.3% 11,061 73.4% France 373 1,243 - 3 1,619 Other - - 2 0.0% Germany 625 1,319 1 4 1,949 Not reported - - 31 0.2% Netherlands 272 374 - - 646 Permanent contract 12,715 88.4% 13,195 87.6% Switzerland 87 231 - - 318 Male 3,545 27.9% 3,665 27.8% Belgium 44 163 - - 207 Female 9,170 72.1% 9,502 72.0% STATEMENTS United Kingdom 86 182 - - 268 Other - - 1 0.0% Portugal 47 192 - - 239 CONSOLIDATED FINANCIAL Not reported - - 27 0.2% Israel 26 137 - - 163 Temporary contract 1,664 11.6% 1,875 12.4% Hungary 20 178 - 12 210 Male 293 17.6% 311 16.6% Poland 18 208 - 3 229 Female 1,371 82.4% 1,559 83.1% Egypt 84 86 - - 170 Other - - 1 0.1% EMEA Region 12 13 - - 25 Not reported - - 4 0.2% AMERICAS no. 620 1,829 - - 2,449 Flexible working time 0 0.0% 0 0.0% USA 328 820 - - 1,148 Male - - - - Canada 68 337 - - 405 Female - - - - Chile 30 150 - - 180 Other - - - - Argentina 15 143 - - 158 Not reported - - - - REPORT Colombia 24 91 - - 115 Full-time 11,097 77.2% 11,603 77.0% ON OPERATIONS Ecuador 33 86 - - 119 Male 3,417 30.8% 3,502 30.2% Mexico 30 57 - - 87 Female 7,680 69.2% 8,073 69.6% Panama 3 5 - - 8 Other 0 0.0% 2 0.0% Uruguay 15 70 - - 85 Not reported 0 0.0% 26 0.2% North America Region 60 63 123 Part-time 3,282 22.8% 3,467 23.0% Latin America Region 14 7 - - 21 Male 421 12.8% 474 13.7% APAC no. 846 2,905 1 9 3,761 Female 2,861 87.2% 2,988 86.2% Australia 394 1,222 1 - 1,617 Other - - - 0.0% New Zealand 82 460 - 9 551 Not reported - - 5 0.1% India 309 191 - - 500 China 54 1,026 - - 1,080 APAC Region 7 6 - 13 AMPLIFON CORPORATE no. 213 148 - - 361 AT A GLANCE Total Group no. 3,976 11,061 2 31 15,070 170 --- ANNUAL REPORT 2024 EMPLOYEES BY CONTRACT TYPE AND GEOGRAPHICAL AREA EMPLOYEES BY PROFESSIONAL CATEGORY AND GEOGRAPHICAL AREA Udm EMEA AMERICAS APAC CORPORATE GROUP Udm EMEA AMERICAS APAC CORPORATE GROUP 2023 2023 Number of employees no. 8,496 2,065 3,482 336 14,379 HA professionals (qualified by law/ no. 3,970 689 1,825 - 6,484 Permanent contract no. 7,758 2,048 2,573 336 12,715 certified) Temporary contract no. 738 17 909 - 1,664 HA professionals Flexible working time no. - - - - - (apprentices or no. 390 139 4 - 533 Full-time no. 5,787 1,937 3,040 333 11,097 equivalents) Part-time no. 2,709 128 442 3 3,282 Client advisor and other no. 2,663 613 1,036 - 4,312 shop personnel 2024 Field management no. 446 119 164 - 729 Number of employees no. 8,499 2,449 3,761 361 15,070 STATEMENTS Total Field force no. 7,469 1,560 3,029 - 12,058 Permanent contract no. 7,708 2,436 2,691 360 13,195 Executives no. 1 1 2 11 15 Temporary contract no. 791 13 1,070 1 1,875 CONSOLIDATED FINANCIAL Flexible working time no. - - - - - Directors no. 76 48 41 50 215 Full-time no. 5,697 2,268 3,281 357 11,603 Managers no. 206 60 81 110 457 Part-time no. 2,802 181 480 4 3,467 Professionals no. 744 396 329 165 1,634 Total back office no. 1,027 505 453 336 2,321 Total Employees no. 8,496 2,065 3,482 336 14,379 2024 HA professionals (qualified by law/ no. 4,005 828 2,021 - 6,854 certified) HA professionals (apprentices or no. 385 149 3 - 537 REPORT equivalents) ON OPERATIONS Client advisor and other no. 2,628 780 1,123 - 4,531 shop personnel Field management no. 442 115 163 - 720 Total Field force no. 7,460 1,872 3,310 - 12,642 Executives no. 1 1 1 11 14 Directors no. 85 52 41 62 240 Managers no. 214 77 79 121 491 Professionals no. 739 447 330 167 1,683 Total back office no. 1,039 577 451 361 2,428 Total Employees no. 8,499 2,449 3,761 361 15,070 AMPLIFON AT A GLANCE 171 --- ANNUAL REPORT 2024 [S1-7] CHARACTERISTICS OF NON-EMPLOYEE WORKERS IN THE UNDERTAKING’S OWN WORKFORCE The following table presents the total number of non-employee workers in Amplifon’s own workforce. As of the end of 2024, Amplifon had approximately 5,800 non- employee workers, marking slight decrease compared to 2023. TOTAL NUMBER OF NON-EMPLOYEES IN OWN WORKFORCE Udm 2023 2024 Total Group n. 5,939 5,856 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 172 --- ANNUAL REPORT 2024 EMPLOYEES BY AGE DIVERSITY, INCLUSION, 2023 2024 no. % no. % AND EQUAL OPPORTUNITIES < 30 2,944 20.5% 3,035 20.1% 30 - 50 8,446 58.7% 8,903 59.1% As a confirmation and reinforcement of Amplifon’s DEIB Policy, people empowerment, > 50 2,989 20.8% 3,132 20.8% diversity appreciation, and inclusion policies are integral to both the HR strategy Total Group 14,379 100% 15,070 100% and the sustainability strategy. To effectively oversee and manage DEIB-related matters, the Group established a dedicated DEIB Committee at the end of 2023. This committee includes the Chief Human Resources Officer, the Chief Marketing, EMPLOYEES BY PROFESSIONAL CATEGORY AND AGE (FIELD FORCE) Technology & Innovation Officer, the Chief Communication Officer, and the Global Investor Relations & Sustainability Senior Director. The committee is tasked with 2023 2024 STATEMENTS steering the global DEIB agenda, identifying shared objectives, and leading various no. % no. % working groups to align local needs with the Group’s global strategy. CONSOLIDATED FINANCIAL HA professionals 6,484 53.8% 6,854 54.2% (qualified by law/certified) [S1-9] DIVERSITY METRICS <30 1,593 24.6% 1,615 23.6% 30-50 3,912 60.3% 4,205 61.4% The tables below provide a quantitative overview of diversity within Amplifon. They >50 979 15.1% 1,034 15.1% include the number and percentage of employees in managerial positions by gender, HA professionals a breakdown of the total workforce by age group and nationality, as well as an 533 4.4% 537 4.2% (apprentices or equivalents) overview of managerial positions, sales-related roles, and STEM roles. <30 288 54.0% 274 51.0% 30-50 198 37.1% 206 38.4% EMPLOYEES IN MANAGEMENT POSITIONS >50 47 8.8% 57 10.6% 2023 2024 Client advisor and other REPORT 4,312 35.8% 4,531 35.8% shop personnel no. % no. % ON OPERATIONS <30 627 14.5% 685 15.1% Male 167 72.6% 193 76.3% 30-50 2,310 53.6% 2,418 53.4% Female 63 27.4% 60 23.6% >50 1,375 31.9% 1,428 31.5% Other - - - - Field management 729 6.0% 720 5.7% Not reported - - - - <30 43 5.9% 35 4.9% Total Group 230 100% 253 100% 30-50 492 67.5% 504 70.0% >50 194 26.6% 181 25.1% Total Field force 12,058 100.0% 12,642 100.0% <30 2,551 21.2% 2,609 20.6% 30-50 6,912 57.3% 7,333 58.0% >50 2,595 21.5% 2,700 21.4% AMPLIFON AT A GLANCE 173 --- ANNUAL REPORT 2024 PERCENTAGE OF EMPLOYEES BY NATIONALITY IN THE TOP 10 EMPLOYEES BY PROFESSIONAL CATEGORY AND AGE (BACK OFFICE) COUNTRIES WHERE AMPLIFON OPERATES 2023 2024 2024 no. % no. % % of total employees % employees in management positions Executives 15 0.6% 14 0.6% Spain 12.9% 11.0% <30 - 0.0% - 0.0% Germany 12.7% 7.1% 30-50 7 46.7% 7 50.0% France 10.5% 7.9% >50 8 53.3% 7 50.0% Australia 5.3% 4.8% Directors 215 9.3% 240 9.9% United States of America 8.2% 8.4% <30 - 0.0% - 0.0% China 7.4% 5.0% 30-50 171 79.5% 189 78.8% Italy 5.9% 24.5% STATEMENTS >50 44 20.5% 51 21.3% India 4.7% 3.3% Managers 457 19.7% 491 20.2% Netherlands 4.2% 3.2% CONSOLIDATED FINANCIAL <30 13 2.8% 19 3.9% New Zealand 2.7% 2.7% 30-50 374 81.8% 394 80.2% Total 74.5% 78.0% >50 70 15.3% 78 15.9% Professionals 1,634 70.4% 1,683 69.3% <30 380 23.3% 407 24.2% EMPLOYEES IN MANAGEMENT, SALES AND STEM ROLES 30-50 982 60.1% 980 58.2% >50 272 16.6% 296 17.6% 2023 2024 Totale back office 2,321 100.0% 2,428 100.0% no. Male Female no. Male Female <30 393 16.9% 426 17.5% Employees in 1,416 53.1% 46.9% 1,465 53.4% 46.6% REPORT management roles 30-50 1,534 66.1% 1,570 64.7% ON OPERATIONS >50 394 17.0% 432 17.8% Top management 230 72.6% 27.4% 254 76.4% 23.6% Junior management 1,186 49.3% 50.7% 1,211 48.6% 51.4% Employees with roles related to sales, products 11,268 25.5% 74.5% 12,296 25.5% 74.5% and services Employees in STEM roles 7,032 30.6% 69.4% 7,496 29.6% 70.4% AMPLIFON AT A GLANCE 174 --- ANNUAL REPORT 2024 [S1-10] ADEQUATE WAGES [S1-17] INCIDENTS, COMPLAINTS AND SEVERE HUMAN RIGHTS IMPACTS Amplifon is committed to ensure that all employees receive fair remuneration in line During the reporting year, there were no established incidents of discrimination with the benchmark standards established in the 26 countries where it operates. At (including harassment) or serious human rights incidents that resulted in the least once a year, the countries verify any wage cases that are below the threshold company being fined, sanctioned or compensated for related damages. of the local regulations and adjust the wage accordingly. With the exception of Switzerland and Singapore, all other markets in which the Group operates have During the financial year 2024, a total of 34 reports were received through the statutory minimum wage regulations, and as of 31 December 2024, no employee whistleblowing channel (alleged incidents of discrimination amounted to 12). All receives a salary below local minimum wage levels. reports were investigated pursuant to the relevant Group Whistleblowing Policy, and it should be noted that as at 31.12.2024, 5 of these reports were still being In countries without statutory minimum wage legislation, Amplifon adopts a investigated, 1 of which related to discrimination issues. structured approach to ensure fair and competitive remuneration. This approach is based on a continuous analysis of labour market dynamics to ensure that salaries remain aligned with local standards. STATEMENTS As a testament to this commitment, Amplifon has implemented a Total Reward Policy CONSOLIDATED FINANCIAL for several years, ensuring a remuneration system that is not only compliant with local standards but also designed to maintain strong external competitiveness and internal pay equity. [S1-12] PERSONS WITH DISABILITIES The table below presents the number and percentage of employees with disabilities within the Amplifon Group as of 31/12/2024. EMPLOYEES WITH DISABILITIES REPORT 2023 2024 ON OPERATIONS Udm Total Total Number of employees with disabilities no. 677 787 % employees with disabilities % 4.7% 5.2% AMPLIFON AT A GLANCE 175 --- ANNUAL REPORT 2024 AVERAGE NUMBER OF TRAINING HOURS PER EMPLOYEE AND GENDER TALENT GROWTH 2023 2024 Total hours Average hours Total hours Average hours Talent growth is a fundamental pillar for Amplifon. The Group continuously invests Male 120,110 31.3 152,600 38.4 in training and career development programmes for its employees, creating growth opportunities at both local and global levels. Female 298,500 28.3 421,998 38.0 Other - - - - Amplifon adopts an integrated approach to talent development, ensuring that Not reported - - - - the employee experience is consistent and shared globally. To support employee development, Amplifon has introduced initiatives such as the Career Compass, Total Group 418,610 29.1 574,597 38.1 which complements the annual Performance Development Review (PDR) and talent evaluation process. STATEMENTS Furthermore, Amplifon provides training and development programmes to all its EMPLOYEES WHO HAVE PARTICIPATED IN PERIODIC employees at national, regional, and global levels. The comprehensive training offering PERFORMANCE AND CAREER DEVELOPMENT REVIEWS CONSOLIDATED FINANCIAL is designed to meet local needs and requirements while also allowing employees to (BY PROFESSIONAL CATEGORY) benefit from best practices shared across the global network. Both in-person and 2023 2024 online courses are available for field force and back-office employees, complemented no. % no. % by one-on-one coaching and mentoring sessions. The training covers both professional and business skills, as well as behavioural and leadership competencies. For more Back Office information on the dedicated initiatives, please refer to the “Actions, metrics and Executives 13 86.7% 13 92.9% targets” paragraph of this chapter. Directors 198 93.8% 225 93.8% Managers 409 91.9% 442 90.0% [S1-13] TRAINING AND SKILLS DEVELOPMENT METRICS Professionals 1,442 92.2% 1,511 89.8% Totale Back Office 2,062 92.2% 2,191 90.2% Regarding training and skills development, the following key metrics are reported: number REPORT and percentage of employees who have participated in periodic performance and career Field force ON OPERATIONS development reviews, and average training hours per employee, broken down by gender. HA professionals The tables below present this information, further segmented by job category. 5,170 82.2% 6,448 94.1% (qualified by law/certified) HA professionals 504 94.6% 206 38.4% (apprentices or equivalents) EMPLOYEES WHO HAVE PARTICIPATED IN PERIODIC PERFORMANCE Client advisor and other shop AND CAREER DEVELOPMENT REVIEWS 3,689 94.3% 3,889 85.8% personnel 2023 2024 Field management 623 87.9% 654 90.8% no. % no. % Total Field force 9,986 87.2% 11,197 88.6% Male 3,483 90.8% 3,537 89.0% Female 8,565 81.3% 9,836 88.9% Other - - - - Not reported - - 15 48.4% AMPLIFON AT A GLANCE Total Group 12,048 83.8% 13,388 88.8% 176 --- ANNUAL REPORT 2024 AVERAGE NUMBER OF TRAINING HOURS PER EMPLOYEE AND GENDER (BY PROFESSIONAL CATEGORY) 2023 2024 Total hours Average hours Total hours Average hours Back Office Executives 252 17 275 20 Directors 9,523 44 8,544 36 Managers 14,575 32 15,464 31 Professionals 39,316 24 41,311 25 Totale Back Office 63,666 27 65,594 27 Field Force STATEMENTS HA professionals 206,126 32 289,973 42 (qualified by law/certified) CONSOLIDATED FINANCIAL HA professionals 25,211 47 55,028 102 (apprentices or equivalents) Client advisor and other shop 97,331 23 135,840 30 personnel Field management 26,276 36 28,162 39 Total Field force 354,944 29 509,003 40 Total Group 478,551 28 574,597 38 [S1-15] WORK-LIFE BALANCE METRICS REPORT All employees across the Group are entitled to take family leave. The table below ON OPERATIONS provides data on the number and percentage of employees who exercised this entitlement during the reporting period. ELIGIBLE EMPLOYEES WHO HAVE TAKEN FAMILY-RELATED LEAVE 2024 n. % Male 377 9.5% Female 1,461 13.2% Other 1 50% Not reported Total Group 1,839 12.2% AMPLIFON AT A GLANCE 177 --- ANNUAL REPORT 2024 ESRS S2 – WORKERS IN THE VALUE CHAIN STRATEGY FOR MANAGING PEOPLE ACROSS THE VALUE CHAIN [ESRS S2 – SBM-3] MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL POSITION ALONG THE VALUE CHAIN TIME HORIZON STATEMENTS CONSOLIDATED FINANCIAL SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Working conditions Health and Safety Potential risk related to business partners along the Group supply chain not fully respecting the ethical Risk and social standards, including human rights, also due to not structured control on third parties, (resulting from 35 36 potentially leading to non-compliance events and reputational impacts on the Group. impact) Other work-related rights Child labour; Forced labour From the double materiality analysis conducted, although considered in the preliminary phases, no significant negative impacts have been identified for workers within REPORT the company’s value chain, neither systemically nor generally in the regions where the company operates, sources, or maintains commercial relationships, nor linked to ON OPERATIONS specific events. Similarly, no relevant positive impacts were identified as a direct result of the company’s operations. However, the risk and opportunity analysis did highlight a potential risk related to the company’s business partners along the Group’s supply chain, particularly concerning the possibility that some partners may not fully comply with ethical and social standards, including human rights requirements. AMPLIFON AT A GLANCE 35.This risk has been deemed material under both ESRS S2 (Workers in the value chain) and ESRS G1 (Business conduct). 36.The risk assessment has determined that the impact is not material based on the double materiality evaluation. 178 --- ANNUAL REPORT 2024 These findings result from an analysis conducted by Amplifon to identify the Supplier Code of Conduct, which define, among other aspects, the expectations categories of workers within its value chain. The analysis includes the distribution of and responsibilities regarding suppliers in relation to workers throughout the entire a supplier questionnaire aimed at collecting evidence and confirmations regarding value chain, with a primary focus on the supply chain. The Supplier Code of Conduct the total number of employees with a regular employment contract, the percentage establishes the minimum standards and best practices regarding the following of outsourced operational activities performed by external suppliers or outside the aspects: European Union, the types of activities and roles performed, such as office work, construction, maintenance, and production, the average number of overtime hours • Business ethics and compliance: suppliers must operate in accordance with per employee per year, and the presence of a health and safety officer or a designated the highest ethical standards, in line with the principles and values expressed in role responsible for occupational safety. Amplifon’s Code of Ethics. Suppliers are required to ensure full compliance with applicable laws and act according to fair competition principles, anti-corruption The exposure of value chain workers to risks is primarily linked to the nature of their policies, integrity, and transparency. Furthermore, suppliers must protect third- roles and tasks. Based on Amplifon’s internal classification and a targeted assessment party privacy and intellectual property and ensure the responsible sourcing of considering the type of activities, geographical context, and ESG relevance, the conflict minerals; following key procurement categories have been identified for the above-mentioned • Health, safety, and workers’ rights: suppliers must treat all employees, external STATEMENTS topics, along with the primary types of workers in the value chain based on their job collaborators, and their own suppliers with respect, ensuring the protection of function: human dignity, health, safety, and fundamental human rights. Specifically, they CONSOLIDATED FINANCIAL are required to uphold child labour protections, prevent forced or coerced labour, • General facility and maintenance: renovation and maintenance work on promote diversity and inclusion, eliminate discrimination and harassment, company spaces, offices, and stores. Typical roles: maintenance technicians, guarantee fair wages and working hours, ensure occupational health and safety, construction workers, artisans; and respect freedom of association and collective bargaining rights; • Logistics and warehousing: transportation of goods and maintenance of • Environmental protection: suppliers must minimise the environmental impact warehouse equipment. Typical roles: warehouse staff, forklift operators, drivers, of their operations, particularly in relation to compliance and performance in the transporters, maintenance technicians; most relevant areas such as energy consumption, water resource management, • Marketing: call centres and telemarketing operations. Typical roles: call centre waste disposal, and biodiversity protection. operators, outsourced marketing data analysts; • Hearing aid: manufacturing activities. Typical roles: production workers, In 2023, mandatory acceptance of the Supplier Code of Conduct was integrated into automated machine operators; the qualification process for new suppliers, ensuring that all new suppliers formally • IT (Hardware): management, installation, and maintenance of corporate IT acknowledge and adhere to its principles. Additionally, the requirement to sign REPORT infrastructure. Typical roles: hardware technicians, network installers, technical the Code was extended to existing suppliers who were qualified before the Code’s ON OPERATIONS support staff, server maintenance personnel. adoption, with priority given to those with the largest global expenditure and those providing critical goods or services. At the same time, in terms of geographical risk - particularly concerning production in the Far East - the Hearing Aid and Hearing Aid Packaging categories have been The human rights protection of value chain workers is further reinforced in the identified as higher-risk areas. Sustainability Policy, previously detailed in the “Policies, actions, metrics and targets” paragraph of the “General disclosures (ESRS 2)” chapter, outlining the [S2-1] POLICIES RELATED TO VALUE CHAIN WORKERS guiding principles and initiatives the Group aims to pursue. In this regard, during the reporting year, no cases of non-compliance with human rights involving workers in To effectively manage the impacts, risks, and opportunities associated with workers Amplifon’s value chain were reported. Moreover, value chain workers have access to across its value chain, Amplifon implemented targeted policies that reinforce the Group’s whistleblowing system, which allows them to report concerns related its commitment to human rights protection and compliance with international to human rights violations, ensuring a safe and confidential channel to address any regulations. These principles are clearly outlined in the Code of Ethics and the breaches or concerns regarding the protection of fundamental rights. AMPLIFON AT A GLANCE 179 --- ANNUAL REPORT 2024 MANAGEMENT OF IMPACTS, RISKS, AND OPPORTUNITIES CONCERNING THE VALUE CHAIN WORKERS [S2-2] PROCESSES FOR ENGAGING WITH VALUE CHAIN WORKERS All Group suppliers are therefore informed about the contents of the Code, which also ABOUT IMPACTS encourages the dissemination and communication of available reporting channels to supplier employees, including the dedicated email address. The ESG supplier Given the nature and characteristics of its business relationships, Amplifon has not assessment process represents the next step following the signing of the Code and yet implemented a dedicated process aimed at considering the perspectives of value enables Amplifon to verify not only the acceptance of these standards but also their chain workers, including potentially vulnerable or marginalised workers, in decisions effective implementation by suppliers. or activities related to managing worker-related impacts. However, indirect tools are STATEMENTS in place, such as the supplier due diligence process on ESG topics and a dedicated email address (for further details, refer to paragraph “Sustainability governance” CONSOLIDATED FINANCIAL in “General disclosures (ESRS 2)” chapter). Through these channels, suppliers and value chain workers can at any time express their opinions and report any concerns regarding potential violations of the minimum standards and principles set out in the Supplier Code of Conduct. Additionally, the Whistleblowing system can support the Group in identifying specific impacts related to workers in its value chain. For further details on the operation, registration, and management of whistleblowing reports, please refer to paragraph “Policies, actions, metrics and targets” in “General disclosures (ESRS 2)” chapter. [S2-3] PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR VALUE CHAIN WORKERS TO RAISE CONCERNS REPORT To date, Amplifon has not identified any direct or indirect negative impacts affecting ON OPERATIONS workers in its value chain. However, should potential areas of impact be identified, Amplifon is committed to taking action to address any unfavourable condition and managing the situation promptly and appropriately. For this reason, as outlined in the Supplier Code of Conduct, a dedicated email address (scoc@amplifon.com), managed by the Global Procurement & Supply Chain team, has been established. This channel allows suppliers to report potential non-compliance related to ESG matters or to raise concerns regarding potential violations of the minimum standards and principles 37 set out in the Code . All new suppliers are required to accept the Supplier Code of Conduct during the onboarding phase - except for categories to which the Code does not apply (e.g., individuals, governments). For suppliers already qualified before the publication of the Code in 2022, Amplifon has requested them to sign an acceptance letter confirming their adherence to the Code. AMPLIFON AT A GLANCE 37. At present, there are no specific policies in place to protect individuals who use these reporting processes from retaliation. 180 --- ANNUAL REPORT 2024 significant risks emerge, additional corrective measures are defined in collaboration ACTIONS, METRICS AND TARGETS with the global ESG Procurement and Sustainability teams, along with the managers of the relevant business functions. These measures may include, if necessary, the termination of the partnership with the supplier. Specifically, in 2024, 12 suppliers [S2-4] TAKING ACTION ON MATERIAL IMPACTS ON VALUE CHAIN were required to develop an Action Plan, resulting in 37 corrective actions, of which WORKERS, AND APPROACHES TO MANAGING MATERIAL RISKS AND 6 have already been implemented by suppliers. These actions were distributed as PURSUING MATERIAL OPPORTUNITIES RELATED TO VALUE CHAIN follows: 9 in environmental areas, 12 in social aspects, and 16 in governance. WORKERS, AND EFFECTIVENESS OF THOSE ACTIONS The supplier evaluation and monitoring process is not a one-off initiative but a [S2-5] TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, continuous cycle that allows Amplifon to identify new critical issues, address potential ADVANCING POSITIVE IMPACTS, AND MANAGING MATERIAL RISKS misalignments between business objectives and social impacts, and ensure constant AND OPPORTUNITIES improvement along the value chain. This dynamic approach guarantees that the prevention and mitigation of negative STATEMENTS WORKING CONDITIONS AND OTHER WORK- impacts on workers are fully integrated into Amplifon’s procurement and supply chain management practices. Suppliers with stronger ESG performance are prioritised in CONSOLIDATED FINANCIAL RELATED RIGHTS the selection process, helping to steer business decisions towards more responsible partnerships. To manage and mitigate the identified risks, Amplifon uses the EcoVadis platform to: Through the structured questionnaire supported by EcoVadis platform, Amplifon • Conduct supplier risk mapping, based on sector and geography. aims to assess its suppliers’ performance in relation to ESG topics, aligning with its • Request the completion of a questionnaire. Sustainability Plan objective: “Achieve Supplier Code of Conduct (SCoC) acceptance • Define and monitor the implementation of specific action plans. and conduct supplier ESG assessment of 100% of the main direct suppliers and at least 50% of key indirect suppliers, by spend, by 2026”. Progress is monitored annually. The Based on the risk level identified during the mapping phase, Amplifon requests Procurement & Supply Chain function, led by the Chief Procurement & Supply Chain medium- to high-risk suppliers to complete the questionnaire. This questionnaire, Officer, is responsible for overseeing and implementing these measures. tailored to the supplier’s profile (size, geography, sector), serves as a key tool to ensure alignment with the ethical and sustainability practices promoted by Amplifon. The direct suppliers included in this evaluation are global and regional manufacturers REPORT Specifically, it includes an in-depth assessment of worker rights, covering working of hearing aids, accessories, and batteries with an annual expenditure exceeding ON OPERATIONS conditions, compliance with current regulations, workplace safety, and the protection €1,000. Meanwhile, indirect suppliers are global and regional suppliers primarily of fundamental rights. focused on providing goods and services in the Marketing, IT, and Retail sectors at a global level. Spending categories such as donations, human resources expenses, The analysis of these questionnaires helps identify potential social, environmental, professional fees and compensations, real estate and rents, travel and entertainment, and ethical risks, providing a clear overview of supplier sustainability and segmenting and other non-supplier-related expenses are excluded. Additionally, within the them based on risk level (low, medium, or high). For suppliers classified as medium- EcoVadis platform, suppliers who are required to complete the ESG assessment can to high-risk in the EcoVadis assessment, Amplifon provides a dedicated Action Plan access benchmark data comparing their ESG performance against their industry aimed at supporting them in improving their practices and mitigating identified peers. risks, fostering continuous progress towards higher standards. Where particularly AMPLIFON AT A GLANCE 181 --- ANNUAL REPORT 2024 ESRS S4 – CONSUMERS AND END-USERS STRATEGY FOR MANAGING CONSUMERS AND END-USERS [ESRS S4 – SBM-3] MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL POSITION ALONG THE VALUE CHAIN TIME HORIZON STATEMENTS CONSOLIDATED FINANCIAL SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Social inclusion of consumers and/or end-users Difficulties for customers and people with hearing loss in accessing and using hearing care Actual negative Non-discrimination; Access to products and products and services due to physical, social, and digital barriers impact services Maintaining the quality, reliability, and safety standards of products, accessories, and services Personal safety of consumers and/or end-users Actual positive offered by leveraging the expertise of hearing care specialists, resulting in customer and end- Health and safety impact user safety and satisfaction Information-related impacts for consumers Loss of personal data and customer information due to breaches in data privacy systems and Potential negative REPORT and/or end-users non-compliance with the Global Privacy Policy impact Privacy ON OPERATIONS Information-related impacts for consumers Risk of possible non-compliance with international and national regulations related to Privacy Risk (resulting and/or end-users and Data Protection, that may lead to fines, sanctions, litigations and reputational impacts from impact) Privacy Social inclusion of consumers and/or end-users Potential risk that the development of innovative technologies / services may require changes in Risk (resulting Access to products and services Amplifon’s business model from impact) A change in regulations (e.g., reimbursement conditions, insurance tenders, accessibility Social inclusion of consumers and/or end-users to the national health service, selling requirements), as well the increasing attention to the Risk Access to products and services industry from the different stakeholders, could have an effect on the market and therefore on performance Amplifon is committed in investing in activities that promote the accessibility to hearing care Social inclusion of consumers and/or end-users (e.g., free complete hearing tests), including the digitalization and innovation of processes and Opportunities Access to products and services services provided (e.g., innovative solutions, diagnostic tools), that may increase the consumers base and foster social inclusion/hearing care AMPLIFON AT A GLANCE 182 --- ANNUAL REPORT 2024 Amplifon includes in the considerations of this paragraph all end users that may The Group monitors regulatory developments, innovations, best practices, and be subject to relevant impacts, including those related to its own operations, value technological advancements and regularly organises training sessions for in-store chain, products, services, and commercial relationships. sales staff. These sessions cover key product features, usage, maintenance, and compliance requirements. The company is committed to ensure the highest standards Amplifon divides the potential end users of the products and services it sells into of safety, performance, and compliance for all products and services offered, strictly different categories, considering, among other things, age and level of hearing loss adhering to the Medical Device Regulation (EU), Food and Drug Administration (FDA) as relevant metrics for the purposes of their clustering. regulations for the US market, and all local regulatory provisions in the countries where Amplifon operates, including those governing the certification of professionals. Within these categories, customers over 70 and customers with a moderate or greater level of hearing loss constitute the most representative sample. Additionally, Amplifon is also the manufacturer of the Amplifon App, a CE-marked medical device Amplifon distinguishes its consumers and end customers (both current and developed in-house and distributed since 2019 in various EU and APAC countries, potential) based on their level of awareness and engagement regarding hearing loss as well as in the United States under the Miracle-Ear brand, with FDA approval. The management: Amplifon App complies with both the Medical Device Regulation (MDR) for medical devices and the latest European guidelines on medical devices. To obtain CE marking, STATEMENTS • No Action: individuals who have not yet taken any step to address their hearing Amplifon has established its own Quality Management System, ensuring compliance loss; with ISO 13485:2016 and the MDR regulation. The company has implemented CONSOLIDATED FINANCIAL • Leads: individuals aware of their hearing loss who have begun taking action; operational procedures, some of which are specifically designed to prevent and • Prospects: individuals who have contacted a store, gathered information, or are manage potential incidents. currently testing a hearing aid; • Adopters: individuals who already own a hearing aid. It should also be noted that the Medical Device Regulation (MDR) involves Amplifon in a dual role: as a distributor, through partnerships with leading hearing aid The products offered by the Group are characterised by various attributes; one of manufacturers, and as a manufacturer, thanks to the development of its own mobile these is that they are not intrinsically harmful to people or increase the risk of chronic app. diseases. In compliance with the requirements of the MDR, Amplifon ensures the regulatory At the same time, the services that the Group offers, by their nature, require the compliance of distributed devices, working closely with manufacturers to verify CE collection of a large amount of health information considered ‘sensitive’ pursuant to, marking, declarations of conformity, Unique Device Identification (UDI), and other among others, EU Regulation 2016/679 and therefore, due to the sensitivity of this mandatory documentation. REPORT data, the Group’s customers and end users could suffer a negative impact on their ON OPERATIONS rights if it is mismanaged. Amplifon is committed to maintaining full device traceability, ensuring optimal transportation and storage conditions, and collaborating with regulatory authorities In order to protect its customers from such negative impacts, Amplifon adopts strict and manufacturers to implement corrective actions when required. Additionally, measures to guarantee the protection of such data, operating in full compliance with post-market surveillance and adherence to Good Distribution Practices are key applicable regulations and adopting specific actions, see the paragraph “Actions, priorities for Amplifon. The Group also provides ongoing training to its personnel metrics and targets” in this chapter for more information. To ensure the safe and and collaborates with manufacturers to ensure hearing care professionals remain effective use of hearing devices, Amplifon guarantees that consumers and end users up to date on technological advancements and regulatory updates, guaranteeing a receive accurate and accessible information on the products and services offered. high-quality service for consumers. As a leader in the hearing care retail sector, Amplifon stipulates agreements with Regarding the Group’s positive impact in maintaining the quality, reliability, and manufacturers to ensure the supply of hearing devices that comply with regulatory safety standards of the products, accessories, and services it offers, this is directly requirements before being placed on the market. These devices bear the CE marking linked to the expertise of its audiologists, ensuring both security and satisfaction for the European market, Food and Drug Administration (FDA) approval for the for customers and end users. This commitment materialises through Ampli-care, US market, Unique Device Identification (UDI) compliance declarations (where a programme designed to improve accessibility and quality of life for individuals AMPLIFON applicable), and instructions for use in the official language of the respective country. with hearing difficulties. The programme is based on an integrated product AT A GLANCE 183 --- ANNUAL REPORT 2024 offerings, services, and personalised experiences. Furthermore, the Amplifon App [S4-1] POLICIES RELATED TO CONSUMERS AND END-USERS enhances accessibility to services by enabling remote support, eliminating the need for customers to visit a physical store. This is achieved through video tutorials for Amplifon has implemented targeted policies to manage the impacts, risks, and troubleshooting minor issues, the ability to control hearing device functions in opportunities associated with consumers and end-users, adopting a global approach real time directly from a smartphone, and “Companion”, an exclusive feature of that encompasses all consumer groups without distinction. The Group’s policies - the Amplifon App. The Companion function analyses hearing device usage data in including the Sustainability Policy (updated in the reporting year to reinforce key real time and processes them through an artificial intelligence algorithm, providing principles), the Code of Ethics, and the Privacy Policy - establish clear and rigorous tailored recommendations, such as battery replacement alerts or suggestions on the principles aligned with the highest international standards. most suitable programme based on surrounding sounds. Additionally, with more than 3,300 shop-in-shops and corners located in third-party retail outlets such as The Sustainability Policy, in particular, sets out specific commitments to promote pharmacies, optical stores, and medical clinics, the Group seeks to reach people with social inclusion among the Group’s customers, continuously enhancing accessibility hearing loss even in rural or low-density population areas. Moreover, through home to the products and services offered. This includes eliminating economic, physical, visits, Amplifon serves customers with reduced mobility, who may not be able to visit and geographical barriers, as well as strengthening customer safety and well-being. a store in person. For further details, please refer to the “Sustainability Governance” Furthermore, Amplifon is committed to ensure the responsible management of STATEMENTS paragraph of the “General disclosures (ESRS 2)” chapter. personal and sensitive data, safeguarding data subjects and their information through technical and organisational measures in compliance with applicable national and CONSOLIDATED FINANCIAL Given the nature of the services and products offered, all consumers and end international regulations. This commitment is also reinforced in the Code of Ethics users can be considered vulnerable. However, the Group acknowledges certain key and the Group Data Privacy Policy. For further details, please refer to the “Policies, demographics as particularly vulnerable, specifically customers over 70 years old and actions, metrics and targets” paragraph of the “General disclosures (ESRS 2)” chapter. individuals with moderate to severe hearing loss. These vulnerabilities, considering the characteristics of the Group’s customer base, may not only be health-related but The commitment is reflected in the adherence to internal customer management also extend to financial and economic aspects. For this reason, in several countries procedures and in the provision of products, services, and related information where the Group operates, the social market - which includes the reimbursement that meet or exceed customer expectations. Furthermore, the Group is committed of hearing aids and related services by national healthcare systems - helps address to ensure that marketing, sales, and communication activities are conducted this financial vulnerability. Additionally, the Group offers consumer credit financing, responsibly and reliably, in full compliance with local regulations and in accordance facilitating access to hearing care services and devices. with ethical and professional standards. For more information on the involvement of its customers, please refer to the section “Management of impacts, risks and Regarding the risk identification process, the Group, as a leader in the hearing care opportunities concerning consumers and end users” in this chapter. REPORT retail sector, provides the market and its customer base with a clearly defined and ON OPERATIONS highly specialised category of hearing care products and services. The analysis of Aspects related to the protection of human rights for consumers and end users Amplifon’s product and service portfolio suggests that exposure to material risks may are addressed within the Sustainability Policy, as described in the “Policies, actions, vary among target consumers based on differences in generational demographics, metrics and targets” paragraph of the “General disclosures (ESRS 2)” chapter. degree of hearing loss, or market type (private/public). AMPLIFON AT A GLANCE 184 --- ANNUAL REPORT 2024 MANAGEMENT OF IMPACTS, RISKS, AND OPPORTUNITIES CONCERNING CONSUMERS AND END-USERS [S4-2] PROCESSES FOR ENGAGING WITH CONSUMERS AND END-USERS ABOUT IMPACTS Amplifon recognises the crucial importance of consumer and end-user perspectives • Communication campaigns: the definition of commercial and service campaigns in shaping its decisions and activities, ensuring the effective identification and aims at engaging the audience, raise awareness, drive interactions, and ultimately management of both current and potential impacts. To achieve this goal, Amplifon lead to conversion. These campaigns are launched at different stages of the adopts an inclusive approach, integrating the expectations, needs, and feedback of customer journey. They aim to raise awareness among those who have not yet consumers and end users into decision-making processes and strategic initiatives undergone a hearing test, encourage those who have taken the test but have STATEMENTS through the following activities: not yet made a purchase to return to the store and complete their journey, and strengthen the relationship with existing customers in the post-purchase phase. CONSOLIDATED FINANCIAL • Amplifon 360: a proprietary protocol that integrates innovative methods and These campaigns undergo a pre-test phase to determine the most effective tools for assessing customers’ hearing capabilities and needs, providing tailored messaging and a post-test phase to collect feedback on understanding, appeal, solutions. It supports hearing care professionals on a daily basis in selecting the and intent of reacting to the message received. most suitable products and services for each customer profile; • Market research: studies conducted by external research institutes to assess Customer and end-user engagement primarily takes place through telephone customer satisfaction levels, understand needs, and identify drivers and barriers communications, the majority of which are outbound, initiated by Amplifon to the adoption of hearing devices among both customers and prospective users. towards the end consumer. A significant proportion of these interactions also These include interviews, focus groups, and surveys, conducted via telephone or involve caregivers, whom Amplifon recognises as playing a key role in both the online, with profiling based on age, level of hearing impairment, and consumer decision-making process and the overall interaction with the end consumer. For type. In key markets, these studies are conducted on average around ten times this reason, the Group has developed dedicated communication methodologies per year, though frequency may vary depending on specific needs; tailored to caregivers and has created dedicated spaces for them within its stores. • Voice of Customers (VOC): A feedback collection system managed through The operational responsibility for ensuring consumer and end-user engagement REPORT dedicated call centres, providing a direct and accessible channel for immediate and translating insights into business strategy lies with the Marketing function, ON OPERATIONS consumer interactions. Frequency managed ad hoc according to need and country; coordinated by the Chief Marketing, Technology and Innovation Officer. • Net Promoter Score (NPS): A metric used to measure customer satisfaction through messages and emails. This programme is centrally managed and Given the inherently vulnerable nature of its consumers and end users to identified implemented in Amplifon’s key markets. NPS surveys are sent daily, depending impacts, Amplifon implements the previously mentioned measures to understand on the eligibility of each customer in relation to the specific touchpoint they have their perspectives. This inclusive approach reflects Amplifon’s commitment to interacted with; equally addressing the needs of all consumers and end users. AMPLIFON AT A GLANCE 185 --- ANNUAL REPORT 2024 [S4-3] PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR CONSUMERS AND END-USERS TO RAISE CONCERNS Amplifon adopts a structured approach to effectively address and remedy any significant negative impacts caused or contributed to by its activities on consumers and end-users. This approach includes a range of dedicated channels designed to quickly identify issues, provide fair and transparent solutions, and monitor the effectiveness of corrective actions through consumer feedback and predefined evaluation metrics. Specifically, dedicated communication channels allow consumers and end-users to directly express concerns, make requests, and receive assistance. These channels include customer service support, digital platforms, online forms, and telephone hotlines, all of which are easily accessible via the Amplifon website or the Amplifon app. One of the most accessible and direct ways for consumers to communicate their needs and concerns is through call centres, which serve as a STATEMENTS dedicated service designed to provide timely and effective support. Amplifon has established specific performance objectives for these interactions (which may be of CONSOLIDATED FINANCIAL a commercial nature or expressions of concerns/complaints). Amplifon is committed to ensure that at least 97% of inbound calls are answered. The effectiveness of these channels is monitored through dedicated records, documenting the nature of consumer inquiries and their satisfaction levels. Additionally, all Amplifon stores provide customers with clear information on how to request support or submit feedback, ensuring a transparent and accessible process. For more details on the management of reports related to the products distributed by the Group, please refer to the paragraph on “Actions, metrics and targets” in the chapter “Entity Specific Social Disclosure”. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 186 --- ANNUAL REPORT 2024 ACTIONS, METRICS AND TARGETS INFORMATION-RELATED IMPACTS [S4-4] TAKING ACTION ON MATERIAL IMPACTS ON CONSUMERS AND FOR CONSUMERS AND/OR END-USERS END-USERS, AND APPROACHES TO MANAGING MATERIAL RISKS AND PURSUING MATERIAL OPPORTUNITIES RELATED TO CONSUMERS AND Based on its business operations and the outcomes of the double materiality END- USERS, AND EFFECTIVENESS OF THOSE ACTIONS assessment, Amplifon has adopted a set of actions aimed at preventing, mitigating, and, where necessary, remedying negative impacts and managing significant risks [S4-5] TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, for consumers and end-users. ADVANCING POSITIVE IMPACTS, AND MANAGING MATERIAL RISKS AND OPPORTUNITIES Policies, procedures, and programmes on data privacy and cybersecurity – The Group has implemented organisational measures to ensure the protection Amplifon is committed to continuously addressing significant impacts on consumers of personal data, aiming to reduce the risk of data breaches. These measures are and end-users, managing relevant risks, and capitalising on opportunities through uniformly applied across all Amplifon entities, ensuring a centralised and secure STATEMENTS targeted actions and the definition of objectives, metrics, and targets. To effectively management of personal data throughout the value chain. Amplifon has published manage identified significant impacts while ensuring an integrated and responsible a Global Privacy Policy, governing the management of personal data across all CONSOLIDATED FINANCIAL approach, the Group allocates dedicated financial resources and leverages the the regions where the Group operates. Additionally, it has defined guidelines for combined efforts of various corporate functions, including Marketing, Legal, and managing cross-border data transfers, as well as for the use of artificial intelligence Cybersecurity (IT). and data privacy. Amplifon has implemented various actions and additional initiatives with the primary Data privacy and cybersecurity control system – The Group, through its legal objective of contributing positively to improving social outcomes for consumers, entities, carries out regular compliance checks to ensure adherence to applicable particularly in relation to the protection of their personal data. Key actions undertaken privacy and cybersecurity regulations at the local level. These checks also assess the include: technical and organisational measures in place to safeguard personal and sensitive data. • Supplier Assessments: Amplifon has adopted a proactive approach in evaluating suppliers, with a particular focus on personal data protection. This approach Data privacy training initiatives – Awareness initiatives and training programmes involves conducting a preliminary assessment to determine the privacy risk level have been implemented to reinforce compliance with applicable regulations, REPORT of suppliers, helping to mitigate potential negative impacts on consumers; significantly improving employees’ awareness and competence in privacy matters ON OPERATIONS • BiannualRiskAssessment:Amplifoncarriesoutabiannualprivacyriskassessment and dedicated communication campaigns. Training on personal data protection is for its subsidiaries, enabling more timely and targeted risk management. mandatory and is assigned to all employees and new joiners, both in Europe and outside the EU, thus helping to ensure compliance with regulations and strengthen In 2024, no significant issues or incidents related to human rights involving consumers the company culture on the subject. and end-users were reported. PERSONAL SAFETY OF CONSUMERS AND/OR END-USERS Training Hearing Care Professionals – Amplifon has developed dedicated training programmes for HCPs, with the goal of ensuring a minimum of three training days, as outlined in the strategic plan. AMPLIFON AT A GLANCE 187 --- ANNUAL REPORT 2024 SOCIAL INCLUSION OF CONSUMERS AND/OR END-USERS Free complete hearing tests – This initiative provides free complete hearing tests to prospective and existing customers, enhancing accessibility to audiological services. The programme aims to generate total savings exceeding €600 million for prospects and customers over the 2024–2026 period. Progress will be monitored annually, using a baseline of €184 million recorded in 2023. The geographical scope covers 10 out of 26 countries, selected based on data availability in the new front-office systems, which allow for tracking completed tests across four frequency levels. The implementation period is set from 2024 to 2026, with continuous monitoring to ensure alignment with the defined targets and the achievement of expected results. STATEMENTS Percentage of countries adopting the New Store Protocol (%) - The Group aims to CONSOLIDATED FINANCIAL implement the New Store Protocol in at least one-third of its markets by 2026. This initiative is designed to enhance service quality, improve the customer experience, and optimise data collection, fostering increasingly innovative and engaging hearing experiences. Additionally, it contributes to the achievement of the Company’s objectives related to process efficiency and quality. The application scope is global, with a baseline of 4% recorded in 2023, the reference year for tracking progress. The implementation period spans from 2024 to 2026. Progress is monitored annually. As this is a new target, there are no changes compared to previous metrics or objectives. NPS – Net Promoter Score - The Net Promoter Score (NPS) measures customer satisfaction by asking how likely they are to recommend a company on a scale from 0 to 10. The score is calculated by subtracting the percentage of detractors (0–6) from REPORT the percentage of promoters (9–10). The objective is to collect statistically relevant ON OPERATIONS data, increasing the volume of responses to allow more in-depth analyses and the identification of concrete improvement actions. Additionally, specific actions will be implemented to further improve satisfaction among detractor customers (scores between 0 and 6), including a follow-up in-store visit aimed at restoring customer satisfaction. Inbound call management via call centre - As previously mentioned, the call management metric is designed to ensure that at least 97% of incoming calls - which may be commercial inquiries or concerns/complaints - are successfully handled. This objective aims to minimise unanswered calls and enhance the operational efficiency of the call centre. This target is directly linked to the Group’s Sustainability Policy, significantly impacting customer service quality. The target level is defined in relative terms. AMPLIFON AT A GLANCE 188 --- ANNUAL REPORT 2024 ENTITY-SPECIFIC SOCIAL DISCLOSURE POSITION ALONG THE VALUE CHAIN TIME HORIZON DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Positive impact on community well-being and support for people in need through local development initiatives STATEMENTS Actual positive impact and philanthropic activities CONSOLIDATED FINANCIAL Positive impacts on individuals and economic systems generated by technological innovations in processes, Actual positive impact services, and products Increased customer satisfaction and improved service quality due to the development of systems that analyse Potential positive impact customer needs and efficiently manage reports and complaints Increased awareness and sensitivity regarding the importance of hearing well-being and responsible listening Actual positive impact The impacts described in this section primarily highlight positive effects on the well-being of vulnerable communities, supported by targeted initiatives. Additionally, the REPORT importance of technological innovation is underscored, as it significantly improves processes and services, contributing to greater customer satisfaction and enhancing the ON OPERATIONS overall quality of Amplifon’s offering. Another key point is on raising awareness of hearing wellbeing and the importance of responsible listening, not only among customers and prospects but also among young people under 35, with the aim of creating a positive and lasting impact in society. AMPLIFON AT A GLANCE 189 --- ANNUAL REPORT 2 0 2 4 POLICIES ACTIONS, METRICS AND TARGETS Through the principles outlined in the Group Sustainability Policy, Amplifon promotes Amplifon is committed to enhancing community well-being, improving the quality of awareness and prevention activities, educating communities on hearing health and services offered, and raising awareness on hearing health through concrete actions. working to reduce the consequences of hearing loss. These efforts are supported In response to the identified impacts, Amplifon outlines the actions, metrics, and by the promotion of responsible listening behaviours, combining awareness targets addressed in this section. initiatives on the importance of protecting hearing and preventing long-term damage. Furthermore, in 2023, Amplifon adopted a Corporate Volunteering Policy, Positive impact on community well-being formalising its commitment to encouraging employee participation in volunteering and support for people in need through local activities promoted by the Group’s Foundations. This policy was drafted and issued development initiatives and philanthropic activities by Amplifon S.p.A. and is directly applicable to all its employees, while also serving as a reference framework for all Group companies. Amplifon is committed to supporting the activities of its Foundations to help spread Amplifon actively supports its Group Foundations - Amplifon Foundation, Fundación the “sound of inclusion”. Specifically: STATEMENTS GAES Solidaria, and Miracle-Ear Foundation - by promoting corporate volunteering, contributing to the dissemination of scientific knowledge, sponsoring clinical • Amplifon Foundation – Established in early 2020 in Italy, this foundation aims to CONSOLIDATED FINANCIAL research, and collaborating with universities, scientific institutions, national and give back to the communities in which the Group operates, ensuring that everyone international organisations. These initiatives aim to strengthen the positive impact on can reach their full potential through social inclusion, particularly for elderly and vulnerable communities, improving their quality of life through access to prevention vulnerable individuals. and treatment of hearing disorders, while also increasing public awareness of the • Miracle-Ear Foundation – Founded in 1990, this foundation provides hearing importance of responsible listening. For more information on the Group’s social aids, follow-up services, and educational resources to individuals with hearing loss impact commitments, please refer to the Sustainability Policy in the “Policies, actions, who lack financial resources for treatment. It also develops important prevention metrics and targets” paragraph of the “General disclosures (ESRS 2)” chapter. programmes. • Fundación GAES Solidaria – Established in 1996 and formally recognised as In its continuous efforts to enhance customer satisfaction and improve service a foundation in 2018, its mission is to create opportunities for individuals with quality, Amplifon remains committed at providing a highly personalised, premium hearing loss and limited financial means, enabling them to develop their language service that meets the specific needs of each individual customer. This commitment and communication skills through local and international hearing-related projects. aligns with the company’s purpose: helping people rediscover the full emotional The activities of these foundations are also supported by Amplifon employees and REPORT experience of sound, generating a positive impact on the quality of life of both customers. ON OPERATIONS customers and the communities in which they live. This dedication is also reflected in the principles of the Group Sustainability Policy. In line with its Sustainability Plan target, which includes supporting the development of Amplifon Foundation and expanding its activities beyond Italy through donations of at least €5 million between 2024 and 2026, the company donated €1.75 million to Amplifon Foundation in 2024. During the year, the Amplifon Foundation extended its activities to Australia and France. Beyond this financial contribution, in 2024, and in line with the target of reaching at least 5,000 employees’ participations in volunteering initiatives and Social Ambassadorship initiatives promoted by the Group’s Foundations over the 2024- 2026 period, Amplifon facilitated the participation of over 3,800 employees in these initiatives. AMPLIFON AT A GLANCE 190 --- ANNUAL REPORT 2024 EXAMPLES OF ACTIVITIES OF THE AMPLIFON FOUNDATION, THE GAES SOLIDARIA FOUNDATION AND THE MIRACLE-EAR FOUNDATION IN WHICH GROUP EMPLOYEES PARTICIPATED TI PASSO A PRENDERE TEAMING PROGRAM The project involves 40 elderly residents in the Corvetto district of Milan, A Fundación GAES Solidaria initiative involving around 600 employees, who implemented with Memorabilia and the Community of Sant’Egidio. Together with voluntarily donate €1 per month from their salaries. In 2024, the programme the elderly, the volunteers attend performances at some of the most famous raised approximately €17,000, which was allocated to local community support, theatres in Milan, from Teatro Menotti to Piccolo Teatro. medical research, and disaster relief efforts. In 2024 the Foundation awarded STATEMENTS seven grants of €2,000 each and one grant of €3,000 to research and solidarity projects directly selected by employees. CONSOLIDATED FINANCIAL LET’S DREAM This volunteering initiative involved 50 Amplifon employees, contributing a total +Q PALABRAS PROJECT IN EQUATORIAL GUINEA of 300 hours through ten events held in Italian care homes. The project brought together residents and volunteers for dance performances, meals prepared In collaboration with the NGO Más que Salud, Fundación GAES Solidaria deployed by renowned chefs, community outings, football matches, and other special a team of hearing care professionals to provide audiological assistance to the experiences. The activities are chosen based on the dreams and wishes of care local population. During the mission, the team conducted audiometric tests, home residents, which Amplifon volunteer teams work to make a reality. fitted hearing aids, and delivered training sessions for local healthcare workers, ensuring a long-lasting positive impact on the community. ONE DAY MIRACLE MISSIONS REPORT Organised in collaboration with care homes participating in Ciao! - an Amplifon ON OPERATIONS Foundation initiative aimed at strengthening the connection between care homes Hearing aid donation programmes carried out in collaboration with franchisees and local communities - this programme enhances entertainment opportunities and employees within the Miracle-Ear network. In 2024, three missions were and moments of social interaction for residents. Based on requests from care organised across the United States, resulting in the donation of over 800 hearing homes, a dedicated event is organised with a group of volunteers to enrich the aids to more than 400 individuals in underserved communities, along with ongoing lives of elderly residents. maintenance support to ensure continued benefit over time. INDOVINA CHI VIENE A CASA? (GUESS WHO’S COMING HOME?) This Amplifon Foundation initiative combats loneliness and promotes active ageing among elderly individuals facing socioeconomic and physical vulnerabilities. The programme engaged 80 beneficiaries and 30 volunteers in home support and social inclusion activities, fostering stronger community ties. AMPLIFON AT A GLANCE 191 --- ANNUAL REPORT 2024 Positive impact on community well-being and support for people in need through local development initiatives and philanthropic activities Given its role and significance within the communities in which it operates, Amplifon launched “We Care” in 2019. This programme encourages more responsible behaviours and consolidates the Group’s social impact initiatives, complementing the social inclusion activities promoted by the Group’s Foundations. Below are the key initiatives undertaken in 2024: Amplifon Italy donated approximately €200,000 to support various causes, including the “Una Laurea con Amplifon” project, which provides scholarships for high AMPLIFON ITALIA school graduates pursuing a university degree in Hearing Aid Technology. Additionally, the company donated over 70 hearing aids, along with receivers and ear domes, & CORPORATE to charity missions in developing countries. STATEMENTS The company continued its collaboration with the association Les Enfants Sourds du Cambodge, carrying out two humanitarian missions in Cambodia. During these AMPLIFON missions, approximately 500 hearing aids were distributed to children in local communities. Furthermore, Amplifon France employees contributed by donating an CONSOLIDATED FINANCIAL FRANCE additional 600 hearing devices to support the initiative. AMPLIFON Amplifon Portugal continued its support for Missão São Tomé, a programme that has been assisting over 120 children with hearing impairments for the past 13 years. PORTUGAL Amplifon employees in the United States actively supported local non-profit organisations in the Twin Cities, Minnesota (Minneapolis and Saint Paul), contributing both AMPLIFON financially - donating over $25,000 - and through more than 400 hours of volunteer work. Additionally, the We Care programme continued to support the Minnesota USA Wild Deaf & Hard of Hearing hockey team, an organisation dedicated to ensuring equal playing opportunities for individuals with hearing loss. REPORT AMPLIFON Colleagues in Australia participated in various We Care initiatives, including the donation of hearing aids to individuals in need through the industry association Hearing ON OPERATIONS AUSTRALIA Aid Bank, a donation of AUD 10,000 to the charity Salvation Army, and purchasing Christmas gifts for children living in poverty. AMPLIFON In Germany, Amplifon employees organised a Christmas gift drive for residents of a care facility in Hamburg. They also supported the initiative “Apparecchi acustici per il GERMANY Brasile” (Hearing Aids for Brazil), collecting and donating more than 2,500 hearing devices to individuals in need. AMPLIFON AT A GLANCE 192 --- ANNUAL REPORT 2024 Positive impacts on individuals and economic systems • Otokiosk An internally developed audiometer that also uses an iPad, but is specifically generated by technological innovations in processes, designed for customer self-use. As a medical device, it ensures high reliability of services, and products results while expanding access to hearing loss assessments by providing a faster, more autonomous testing experience outside of traditional stores. Additionally, Amplifon X – the Group’s internal start-up, fully dedicated to Amplifon’s digital Otokiosks can be used in-store to optimise productivity, enabling preliminary innovation strategy. It is responsible for the software design and end-to-end hearing tests to identify individuals who do not have hearing loss. In 2024, over 400 development of highly innovative digital solutions aimed at enhancing both in-store Otokiosks were installed. For 2025, the goal is to continue expanding installations, and remote services. The key digital solutions and initiatives by Amplifon X include: allowing an increasing number of people to evaluate their hearing independently. • Amplifon App • University research partnerships The App supports customers in using their hearing aids, achieving a 23% Amplifon collaborates with leading universities, including the University of Milan, penetration rate in 2024 and maintaining high user ratings ranging from 4.2 to 5. KU Leuven (Belgium), Vanderbilt University, and Amplifon CRSA, to develop new The app enables customers to manage hearing aid functions in real time, schedule hearing tests. These studies aim to enhance diagnostic accuracy and improve STATEMENTS appointments with their hearing care professional, access video tutorials for accessibility to hearing solutions. troubleshooting, and more, directly from their smartphone. This ensures that some CONSOLIDATED FINANCIAL customer needs can be met remotely, improving accessibility and convenience. Thanks to the “Companion” feature, exclusive to the Amplifon App, hearing aid usage data is analysed in real time and processed through an artificial intelligence algorithm. This provides personalised suggestions, such as battery replacement alerts or recommendations for the most suitable programme based on ambient sounds, making the initial adaptation period smoother and more enjoyable. • OtoPad This internally developed audiometer uses an iPad, designed to benefit both hearing care professionals and customers. For professionals, it improves the accuracy of test results, allowing for a more precise fitting of hearing aids. For customers, it enhances engagement in the hearing care journey, making the REPORT assessment process unique, interactive, and personalised. In 2024, more than ON OPERATIONS 300 OtoPads were installed in Amplifon stores, enabling hundreds of thousands of hearing tests. The 2025 objective is to continue the roll-out, expanding the installation in existing markets and introducing it in new countries. AMPLIFON AT A GLANCE 193 --- ANNUAL REPORT 2024 Centro Ricerche e Studi Amplifon (CRS) – founded in 1971 by Algernon Charles Additionally, the relationship between hearing care professionals and customers is Holland in Italy, the Centro Ricerche e Studi Amplifon (CRS) is now also active in supported by a Customer Relationship Management (CRM) system, which collects Spain and France. Its purpose is to consolidate investments and resources in the detailed insights on customer motivations and preferences. With its advanced data development, research, and theoretical-practical training in the fields of audiology management system, Amplifon can map customer behaviour, analyse purchasing and otolaryngology. The CRS has always been dedicated to advancing and sharing decisions, and even anticipate future trends. By integrating these systems and scientific knowledge in collaboration with universities and national and international adopting a data-driven approach, the Group, in alignment with its mission, seeks scientific societies. Since its inception, it has organised numerous scientific courses to understand the unique needs of each customer to provide them with the best and conferences, supported the publication of research studies, and provided possible solution and an exceptional experience, and transform the way hearing care scholarships - both nationally and internationally - for medical specialists (ENTs and is perceived and experienced, making it natural and intuitive for customers to rely on audiologists-phoniatrists) as well as speech therapists. high-quality service and the expertise of Amplifon’s specialists. In particular, in 2024 the CRS undertook the following initiatives: Additionally, the CRM system tracks customer interactions, enabling the company to efficiently manage feedback, concerns, and complaints. For further details, please • Training courses and ECM-accredited conferences: CRS organised a satellite session refer to the “[S4-2] Processes for engaging with consumers and end-users about STATEMENTS at the CRS International Conference during the World Congress of Audiology in impacts” paragraph of the “[ESRS S4] – Consumers and end-users” chapter. Paris, titled “There is More to Audiology than Meets the Ear”, in September 2024. CONSOLIDATED FINANCIAL Additionally, training courses for ENT specialists were conducted by local medical In addition, also for the purposes of MDR, a contact person has been appointed in teams in Italy and France. each European country where the Group operates to receive reports and complaints • CRS coordinated research projects and published specialised studies, including from end consumers. The purpose of this figure is to ensure compliance with the the “Study on the Impact of the Masker Babble Spectrum on the Acceptable Noise procedures and conditions expressed in the Quality Agreements defined with the Level”, and the CRS International Report, featuring the “What the Audiogram manufacturers and to manage the related activities. This achievement is testament Doesn’t Tell Us” presentation from the 2023 CRS International Congress. to the Group’s meticulous approach to upholding the integrity of the supply chain, • CRS maintains an extensive scientific library, dedicated to professionals, ensuring that the products distributed by the Group adhere to the required regulatory researchers, and students. standards, reinforcing the safety and reliability of the medical devices it distributes. These reports and complaints are handled on the basis of the relevance and recurrence of the complaint received; in 2024, 11 complaints were affected by ‘escalation’. Increased customer satisfaction and improved service quality due to the development of systems that analyse REPORT Increased awareness and sensitivity regarding the customer needs and efficiently manage reports and ON OPERATIONS importance of hearing well-being and responsible listening complaints Through Ampli-care, a platform designed to provide an exclusive and highly Listen Responsibly – Programme designed to increase awareness of hearing well- personalised audiological experience, both during in-store visits and throughout being and responsible listening. By 2028, its goal is to engage at least 20 million people the entire customer journey, Amplifon aims to establish a fully integrated ecosystem aged 18 to 35, including students, through digital communication campaigns and around the customer. By leveraging advanced data collection and cutting-edge events. To date, the programme has already reached over 9.6 million young people technologies, the Group ensures that personalisation and service quality remain at under 35. The educational journey is enhanced by the Listen Responsibly App, which the highest standard and consistent across all customer touchpoints. For further encourages students and citizens to become pioneers of a new acoustic ecology. The information, please refer to paragraph “Policies, actions, metrics and targets” of the app features a noise tracker, which detects environmental noise levels and generates “General disclosures (ESRS 2)” chapter; Moreover, a key component of Amplifon’s an interactive sound map of urban acoustic ecology. The Group has set a target of at offering is the Amplifon 360 Protocol, which is also described in the aforementioned least 110,000 total noise measurements by 2026. By the end of 2024, Amplifon had section as a differentiating element of the Group’s offering. This protocol delivers already recorded 89,027 measurements. higher customer engagement and unmatched personalisation, ensuring that each AMPLIFON individual receives a tailored hearing solution. It also serves to standardise service AT A GLANCE quality at an exceptionally high level across all locations. 194 --- ANNUAL REPORT 2024 GOVERNANCE INFORMATION ESRS G1 – BUSINESS CONDUCT IMPACTS, RISKS AND OPPORTUNITIES RELATED TO GOVERNANCE POSITION ALONG THE VALUE CHAIN TIME HORIZON STATEMENTS CONSOLIDATED FINANCIAL SUSTAINABILITY TOPIC DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term Increased customer loyalty and employee trust resulting from the strengthening Corporate culture; Protection of whistle- Actual positive and dissemination of an ethical corporate culture based on principles of integrity, fairness, blowers impact non-discrimination, and respect for human rights Negative impacts on the economy, markets, and stakeholder trust due to potential Potential negative Corporate culture anti-competitive behaviour, monopolistic practices, and instances of corruption impact Corruption and bribery Non-compliance with applicable laws, regulations, and internal and external standards, Potential negative Prevention and detection including training; potentially leading to negative economic and legal repercussions for stakeholders impact Incidents Strengthening ESG criteria in supply chain management and supplier performance (both direct REPORT Management of relationships with suppliers Actual positive and indirect), generating positive social and environmental impacts in the communities in which including payment practices impact ON OPERATIONS they operate Potential failure to meet minimum ethical conduct standards along the supply chain, as well as Potential negative Corporate culture missed opportunities for responsible sourcing impact Potential risk related to misleading communication on financial disclosure, non-financial Risk disclosure and / or other communication initiatives that may have an impact on corporate Corporate culture (resulting from reputation, given also the Company’s increasing relevance and the involvement in initiatives of impact) public interest. Risk Potential risk related to evolving climate change regulations (e.g., European taxonomy, Green Corporate culture (resulting from .38 Deal, reporting) to be compliant with impact) Potential risk related to business partners along the Group supply chain not fully respecting the Risk Management of relationships with suppliers ethical and social standards, including human rights, also due to not structured control on third (resulting from including payment practices 39 parties, potentially leading to non-compliance events and reputational impacts on the Group impact) AMPLIFON AT A GLANCE 38.This risk has been deemed material under both ESRS E1 (Climate change) and ESRS G1 (Business conduct). 39.This risk has been deemed material under both ESRS S2 (Workers in the value chain) and ESRS G1 (Business conduct). 195 --- ANNUAL REPORT 2024 with applicable regulations. The objective is to establish a system that facilitates the MANAGEMENT OF IMPACTS, RISKS, reporting of misconduct, safeguards the confidentiality of reports, and protects the identity of the whistleblower and all individuals involved in the reports. This approach is designed to reduce the risk of misconduct within the Group. To this end, the policy AND OPPORTUNITIES CONCERNING explicitly states that whistleblowers are protected against any form of retaliation or discrimination, whether direct or indirect, in connection with their report. Specifically, no employee or individual within the Group may be dismissed, demoted, suspended, THE GROUP’S GOVERNANCE threatened, harassed, or otherwise discriminated against in their working conditions for making a report in accordance with the Group’s Whistleblowing Policy. Protection is also guaranteed even if the report, though ultimately unfounded, was made based [G1-1] BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE on reasonable belief that the information was true at the time of reporting. The rollout of the Whistleblowing system continued throughout 2024, with its gradual adoption The Code of Ethics, detailed in the “Policies, actions, metrics and targets” paragraph across all Group countries, in full compliance with applicable regulations. As part of of the “General disclosures (ESRS 2)” chapter, is at the core of Amplifon’s corporate the progressive implementation of the Whistleblowing Policy and reporting channels STATEMENTS approach. It defines and promotes a corporate culture based on the principles of across different countries, an obligatory online training programme has been legality, honesty, integrity, fairness, transparency, and efficiency. The Code outlines developed. This programme is designed to inform and train all Amplifon employees CONSOLIDATED FINANCIAL the fundamental values and standards of conduct that guide the daily actions of all and collaborators on the appropriate conduct in cases where they become aware of individuals within the Group. Moreover, it forms an integral part of the Organisation, unlawful behaviour. Management, and Control Model adopted by Amplifon S.p.A., in compliance with Italian Legislative Decree 231/2001 (“Model 231”). For further details on anti-corruption policies related to the prevention of active and passive corruption, please refer to the “Policies, actions, metrics and targets” To reinforce these ethical values, Amplifon has adopted specific corporate policies paragraph on the Anti-Corruption Policy of the “General disclosures (ESRS 2)” chapter. that further strengthen the integrity and consistency of its corporate culture. Among which also contains information regarding the corporate functions most exposed to these, the Whistleblowing Policy, which establishes a reporting system for potential corruption risks. It should also be noted that the corporate functions that could be misconduct or violations, and the Anti-Corruption Policy, aimed at preventing and most exposed to the risk of active and passive corruption are those that perform addressing both active and passive corruption. activities considered ‘sensitive’ within the meaning of the Anti-Bribery Policy, e.g. the Procurement, Human Resources, Medical Area functions, and all those that have Amplifon has developed a structured reporting management process, formalised relations with representatives of public institutions. REPORT in the Whistleblowing Policy. This policy defines the rules, reporting channels, ON OPERATIONS and management procedures for handling reports, encouraging both internal and external stakeholders to report any actual or suspected violations of: the Code of [G1-2] MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS Ethics, the Anti-Corruption Policy, the Internal policies and procedures (including Model 231), the applicable laws and regulations within each Group entity. The Managing relationships with suppliers is a critical aspect for the Group, as it has a confidentiality of all received reports is ensured, in compliance with applicable direct impact on the quality of products and services offered, as well as on overall legislation. In 2024, Amplifon continued to closely monitor and manage the matters operational efficiency. For this reason, from the qualification phase onwards, all relevant to the Group, with the involvement of the relevant corporate functions also suppliers - whether involved in procurement contracts, sourcing, or the supply of in the area of compliance and/or organisation. goods and services - are required to sign Amplifon’s Code of Ethics. As outlined in this Code of Ethics, and in alignment with the UN Global Compact Principles and A dedicated section on the Whistleblowing System has been made available on the international conventions, Amplifon strictly opposes suppliers that, in violation of corporate website and intranet, providing clear guidance on reporting procedures fundamental human rights and principles of freedom and dignity, engage in forced and the relevant channels. Furthermore, the policy outlines the available reporting or child labour, or any form of discrimination. Furthermore, as in previous years, channels, the reporting process and how reports are handled, the roles and Amplifon continues to require all hearing device suppliers, whose contracts are responsibilities, and the rights and obligations of the whistleblower, in compliance subject to periodic renegotiation, to recognise and adhere to the principles outlined AMPLIFON AT A GLANCE 196 --- ANNUAL REPORT 2024 in Amplifon’s Sustainability Policy. Additionally, as previously mentioned in the Committee, as well as to the Supervisory Board in cases relevant to Italian Legislative “Policies, actions, metrics and targets” paragraph of the “General disclosures (ESRS Decree 231/2001. These updates include a summary report on the actions taken in 2)” chapter, the Supplier Code of Conduct defines the principles and standards of response to the reports received. conduct required from all suppliers and business partners across various areas, including: business ethics and compliance, anti-corruption, human and labour rights, As detailed in the “Policies, actions, metrics and targets” paragraph of the “General diversity and inclusion, health and safety, and environmental responsibility, among disclosures (ESRS 2)” chapter the Anti-Corruption Policy provides guidelines to others. As of 2023, the mandatory acceptance of this Code has been integrated into ensure that Amplifon operates based on loyalty, fairness, transparency, honesty, the qualification processes of new suppliers. Additionally, the requirement to sign and integrity. In the course of 2024, anti-corruption compliance assessments were the Code was extended to existing suppliers who were qualified before the Code’s carried out on selected countries in order to verify the level of implementation of the adoption, with priority given to those with the largest global expenditure and those Policy’s safeguards and the actions to be implemented locally to ensure its correct providing critical goods or services. Amplifon assesses the risks associated with its and complete application. supply chain by adopting a risk-based methodology, considering both the supplier’s industry sector and geographical location. This approach enables the identification The Organisation, Management, and Control Model (Model 231), together with the of potential risks within the supply chain. The progressive adoption of the Supplier Supervisory Board, regulates and oversees corporate administrative liability in STATEMENTS Code of Conduct and the identification of potential ESG risks among suppliers compliance with Italian legislation. Its implementation is aimed at ensuring corporate have been made possible through the global supplier assessment framework, activities are conducted with integrity and transparency with the aim of preventing the CONSOLIDATED FINANCIAL implemented in 2023. This framework consists of two internal tools: the first tool commission of offences under Italian Legislative Decree 231/2001, and safeguarding assesses a supplier’s inherent ESG risk level, based on industry sector (with a Amplifon’s reputation and protecting employees and business partners. Amplifon pilot phase in 2024 covering Marketing, IT, Store Furniture, and Construction) and S.p.A.’s Model 231 consists of a general and a special section. In the general part, geographical risk (sector- and country-specific), and the second tool evaluates the among the various topics covered, the contents of the Decree are illustrated, the residual ESG risk, based on ESG-related data and information provided directly by procedures for the establishment and functioning of the Supervisory Board are suppliers via a self-assessment questionnaire. Using the first tool, the framework defined, and the system of sanctions, communication and training of personnel, as classifies each supplier into low, medium, or high ESG inherent risk categories, well as the reporting channels that the Company has adopted, also with reference based on widely adopted and internationally recognised indicators covering key to violations pursuant to the Decree. In the special section, on the other hand, the ethical, social, and environmental topics. The ESG Self-Assessment Questionnaire control protocols for the corporate activities deemed as ‘sensitive’ for the purpose consists of a mandatory “Must-Have” section (e.g. compliance and policy-related of Italian Legislative Decree 231/2001 are outlined, and the conduct and measures information), and a “Best Practices” section (e.g. sustainability performance and to be observed are described in order to reduce the risk of committing the offences maturity level), which suppliers must complete. Their responses are then evaluated under the Decree. The Code of Ethics constitutes the essential foundation of Model REPORT using a specific scoring methodology. 231: the two documents form a set of internal rules aimed at disseminating a culture ON OPERATIONS based on ethics and corporate transparency. The need to update the Model 231 is periodically assessed in relation to regulatory developments and organizational [G1-3] PREVENTION AND DETECTION OF CORRUPTION AND BRIBERY changes, in line with best practices and industry standards. In particular, during 2024, Amplifon S.p.A. Model 231 was updated in order to incorporate the main regulatory Amplifon adopts a zero-tolerance approach towards corruption, both active and changes that have occurred, the organisational changes that have taken place and, passive, as well as illicit favours, collusive behaviour, and solicitations for undue also from an evolutionary perspective, the results of the in-depth studies carried out. advantages. To prohibit all forms of active and passive corruption, the Group has Additionally, the Model includes the update of Amplifon S.p.A. Whistleblowing Policy, established general principles outlined in its Anti-Corruption Policy. Amplifon has which has taken into account further details derived from the interpretative position implemented a whistleblowing system for managing reports, including any violations, papers published regarding Italy’s Whistleblowing Decree. suspected violations, or non-compliant behaviours related to the Anti-Corruption Policy. This system enables more effective monitoring of potential misconduct or The updated Model 231 was officially approved by the Board of Directors on 30 July non-compliance with the Policy, as well as with applicable laws and regulations. 2024. Reports are received by the Whistleblowing Committee, which provides semi-annual updates - or more frequently when necessary - to the Control, Risk, and Sustainability AMPLIFON AT A GLANCE 197 --- ANNUAL REPORT 2024 In general, Amplifon Group subsidiaries, where applicable, adopt compliance programmes in accordance with local regulations that establish corporate administrative liability. Amplifon ensures that all employees are promptly informed about updates to the Anti-Corruption Policy and Whistleblowing Policy via email and intranet communications. Regular awareness campaigns are conducted to reinforce key anti- corruption principles, and a summary version of the Policy - containing Amplifon’s core anti-corruption principles - is publicly available for third parties on Amplifon’s website. To strengthen employee awareness on corruption and bribery, Amplifon has implemented anti-corruption training programmes aligned with existing policies (Anti-Corruption Policy and Code of Ethics). These principles promote the highest STATEMENTS standards in all business relationships, ensuring that activities are conducted with loyalty, fairness, transparency, honesty, and integrity. The Policy also sets out CONSOLIDATED FINANCIAL specific rules to prevent, detect, and manage corruption risks. At the local level, anti-corruption training and awareness activities are adapted in line with Group guidelines, while taking into account the specific country-level requirements. The Anti-Corruption Policy identifies the main areas potentially exposed to the risk of corruption (e.g. management of relations with public institution representatives, agents, suppliers and business partners, giving of gifts, donations and sponsorships), which are associated with specific corporate functions. Despite these identified risk areas, anti-corruption and bribery training is mandatory for all employees, regardless of their specific function or role. Amplifon’s Board of Directors is regularly updated on regulatory developments, including anti-corruption matters, through periodic briefings from the Supervisory REPORT Board, which also provides them in the area of corruption. ON OPERATIONS [G1-4] INCIDENTS OF CORRUPTION OR BRIBERY In line with its commitment to transparency and integrity, Amplifon provides the following information regarding cases of active or passive corruption that occurred during the reporting period. Amplifon has not received any convictions, and consequent fines, for violations of the law on active and passive corruption. Consequently, due to the absence of such cases, no action was taken against violations of the procedures and rules for combating corruption and bribery. Similarly, the Group had no proven cases of active and passive bribery and no cases of contracts with business partners that were terminated or not renewed due to violations related to active and passive bribery in 2024. AMPLIFON AT A GLANCE 198 --- ANNUAL REPORT 2024 ENTITY-SPECIFIC GOVERNANCE DISCLOSURE POSITION ALONG THE VALUE CHAIN TIME HORIZON DESCRIPTION IRO UpstreamOwn OperationsDownstreamShort-termMedium-termLong-term The reliance on technology and the acceleration towards digitalization could be accompanied by an increasing relevance STATEMENTS of cybersecurity, as well as the changes in the geopolitical scenario and potential third-party vulnerabilities could lead Risk (resulting from impact) to an increasing number of cyber-attacks CONSOLIDATED FINANCIAL Amplifon addresses the risks associated with accelerated digitalisation and the increasing importance of cybersecurity through a structured and proactive approach. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 199 --- ANNUAL REPORT 2024 Cybersecurity and privacy assessment for new suppliers - Amplifon S.p.A. has POLICIES introduced a mandatory cybersecurity and privacy assessment programme for all new suppliers, covering every new contract and contract renewal for existing To mitigate cybersecurity risks, Amplifon has implemented specific policies aimed at business partners. This approach ensures proactive risk management concerning protecting data and preventing cyberattacks. The Global Data Privacy Policy governs data security and privacy. operations in this area; for more details, please refer to the “Policies, actions, metrics and targets” paragraph of the “General disclosures (ESRS 2)” chapter. Furthermore, Cybersecurity audits - systematic and in-depth evaluations of a company’s IT the Group has developed an operational cybersecurity framework to establish systems, networks, and security policies. Amplifon aims to conduct at least four clear security guidelines for employees, suppliers, and external developers. This annual audits targeting critical suppliers. framework will be officially published in 2025, ensuring that all new employees receive proper training on the Group’s cybersecurity policies. Digital transformation and security enhancements – Amplifon continued its digital transformation strategy in 2024, adopting new technologies to optimise secure business process management. These advancements reinforce cyber resilience while ACTIONS, METRICS AND TARGETS enabling more efficient and secure operations in an evolving digital environment. STATEMENTS Among the new technologies that have been implemented are, for example: In 2024, Amplifon reinforced its cybersecurity oversight, expanding its coverage to CONSOLIDATED FINANCIAL foster shared responsibility and enhance collaboration between departments. To • a Datalake solution that, acting as a vast data warehouse, allows the efficient and mitigate potential risks, the company launched several initiatives: secure collection, storage and analysis of large volumes of information and their correlation, enabling better business decisions based on accurate and complete Cybersecurity training - Amplifon invests in continuous cybersecurity training for data; employees, with a particular focus on emerging threats such as deepfake attacks and • an XDR (Extended Detection and Response) solution that contributes to the creation phishing. Through dedicated training programmes, the Company raises awareness of an integrated view of possible threats from different sources, facilitating the about cyber risks, equipping employees with the skills to detect and counteract detection of and immediate response to cyber-attacks; threats. The goal is to build an informed and proactive workforce, contributing to the • a sophisticated mail security solution, considering phishing attacks as one of the protection of corporate data and IT systems. This commitment includes the monthly main threats to Amplifon. deployment of phishing simulations to enhance employee preparedness. In 2024, the Company conducted 4,418 hours of cybersecurity training. Additionally, Amplifon is Security rating - In 2024, Amplifon’s cybersecurity team worked to maintain the developing a cybersecurity skills database to track employees’ competencies in the company’s “A” security rating on Security Scorecard - an independent platform REPORT field. that evaluates publicly available and open-source cybersecurity data to assess an ON OPERATIONS organisation’s security posture. In 2024, the company continued its efforts to obtain ISO 27001 Certification and NIS2 Compliance - Amplifon has launched a project to HiTrust certification (planned for next year in the Americas region) while maintaining obtain ISO 27001 certification at the corporate level, involving the preparation of a compliance with SOC 2 (System and Organization Controls) certification, already in comprehensive dossier detailing required processes, policies, and documentation. effect in the United States. This initiative serves as a preparatory phase for extending the certification to all countries where the company operates. The company is also working on compliance For further details on data privacy and cybersecurity activities and programme, with the EU Network and Information Systems Directive 2 (NIS2). For Q1 2025, please refer to the “Actions, metrics and targets” paragraph of the “ESRS S4 – Amplifon has scheduled assessments to prepare for ISO 27001 audits and NIS2 Consumers and end-users” chapter. compliance checks. To monitor the cybersecurity maturity level of individual countries regarding ISO certification and regulatory compliance, Amplifon has introduced a documentation framework and an internal assessment programme. This initiative helps identify areas for improvement and corrective actions. To ensure compliance, the Company conducts regular cybersecurity audits and penetration tests and has introduced specialised training pathways. AMPLIFON AT A GLANCE 200 --- ANNUAL REPORT 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 201 --- ANNUAL REPORT 2024 ANNEX INDEX OF DISCLOSURE REQUIREMENTS LIST OF MATERIAL DR PAGE REFERENCE ESRS 2 – GENERAL DISCLOSURES BP-1 – General basis for preparation of sustainability statement 92 BP-2 – Disclosures in relation to specific circumstances 92 GOV-1 – The role of the administrative, management and supervisory bodies 94 STATEMENTS GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 98 CONSOLIDATED FINANCIAL GOV-3 – Integration of sustainability-related performance in incentive schemes 99 GOV-4 – Statement on due diligence 99 GOV-5 – Risk management and internal controls over the sustainability reporting 102 SBM-1 – Strategy, business model and value chain 103 SBM-2 – Interests and views of stakeholders 116 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 120 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities 120 IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 120 ESRS E1 – CLIMATE CHANGE ESRS 2 SBM-3-E1 – Material impacts, risks and opportunities and their interaction with strategy and business model 147 REPORT ESRS 2 IRO-1-E1 – Description of processes to identify and assess relevant climate-related impacts, risks and opportunities 130 ON OPERATIONS E1-1 Transition plan for climate change mitigation 149 ESRS 2 GOV-3-E1 – Integration of sustainability-related performance in incentive schemes 99 E1-2 – Policies related to climate change mitigation and adaptation 149 E1-3 – Actions and resources in relation to climate change policies 150 E1-4 – Targets related to climate change mitigation and adaptation 150 E1-5 – Energy consumption and mix 150 E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions 152 E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities Disclosure subject to phase-in ESRS S1 – OWN WORKFORCE ESRS 2 SBM-3-S1 – Material impacts, risks and opportunities and their interaction with strategy and business model 158 S1-1 – Policies related to own workforce 160 AMPLIFON AT A GLANCE 202 --- ANNUAL REPORT 2024 LIST OF MATERIAL DR PAGE REFERENCE S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts 163 S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns 163 S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, 164 and effectiveness of those actions S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 164 S1-6 – Characteristics of the undertaking’s employees 168 S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce 172 S1-9 – Diversity metrics 173 S1-10 – Adequate wages 175 S1-12 – Persons with disabilities 175 STATEMENTS S1-17 – Incidents, complaints and severe human rights impacts 176 S1-13 – Training and skills development metrics 177 CONSOLIDATED FINANCIAL S1-15 – Work-life balance metrics 175 ESRS S2 – WORKERS IN THE VALUE CHAIN ESRS 2 SBM-3-S2 – Material impacts, risks and opportunities and their interaction with strategy and business model 178 S2-1 – Policies related to value chain workers 179 S2-2 – Processes for engaging with value chain workers about impacts 180 S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns 180 S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain 181 workers, and effectiveness of those actions S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 181 ESRS S4 – CONSUMERS AND END-USERS REPORT ESRS 2 SBM-3-S4 – Material impacts, risks and opportunities and their interaction with strategy and business model 182 ON OPERATIONS S4-1 – Policies related to consumers and end-users 184 S4-2 – Processes for engaging with consumers and end-users about impacts 185 S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 186 S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to 187 consumers and end- users, and effectiveness of those actions S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 187 ESRS G1 – BUSINESS CONDUCT ESRS 2 GOV-1-G1 – The role of the administrative, supervisory and management bodies 97 G1-1 – Business conduct policies and corporate culture 196 G1-2 – Management of relationships with suppliers 196 G1-3 – Prevention and detection of corruption and bribery 197 AMPLIFON AT A GLANCE G1-4 – Incidents of corruption or bribery 198 203 --- ANNUAL REPORT 2024 LIST OF DATAPOINTS IN CROSS-CUTTING AND TOPICAL STANDARDS THAT DERIVE FROM OTHER EU LEGISLATION Disclosure Requirement Benchmark Regulation SFDR reference Pillar 3 reference EU Climate Law reference Material/ Non-material Page reference and related datapoint reference ESRS 2 GOV-1 Board’s gender Annex I, Table 1, Indicator Delegated Regulation (EU) Material 95 diversity paragraph 21 (d) no. 13 2020/1816, Annex II ESRS 2 GOV-1 Percentage Delegated Regulation (EU) of board members who are Material 95 2020/1816, Annex II independent paragraph 21 (e) STATEMENTS ESRS 2 GOV-4 Statement on Annex I, Table 3, Indicator Material 99-102 due diligence paragraph 30 no. 10 CONSOLIDATED FINANCIAL Article 449a Regulation (EU) No 575/2013; Commission Implementing ESRS 2 SBM-1 Involvement in Indicator number 4 of Table Regulation (EU) 2022/2453(6) Delegated Regulation (EU) activities related to fossil fuel Data point not applicable #1 of Annex 1 Table 1: Qualitative 2020/1816, Annex II activities paragraph 40 (d) i information on Environmental risk and Table 2: Qualitative information on Social risk ESRS 2 SBM-1 Involvement in Indicator number 9 of Table Delegated Regulation (EU) activities related to chemical Data point not applicable #2 of Annex 1 2020/1816, Annex II production paragraph 40 (d) ii ESRS 2 SBM-1 Involvement Delegated Regulation (EU) in activities related to Indicator number 14 of Table 2020/1818(7), Article 12(1) Data point not applicable controversial weapons #1 of Annex 1 Delegated Regulation (EU) REPORT paragraph 40 (d) iii 2020/1816, Annex II ON OPERATIONS ESRS 2 SBM-1 Involvement in Delegated Regulation (EU) activities related to cultivation 2020/1818(7), Article 12(1) Data point not applicable and production of tobacco Delegated Regulation (EU) paragraph 40 (d) iv 2020/1816, Annex II ESRS E1-1 Transition plan to Regulation (EU) 2021/1119, reach climate neutrality by Data point not applicable Article 2(1) 2050 paragraph 14 AMPLIFON AT A GLANCE 204 --- ANNUAL REPORT 2024 Disclosure Requirement Benchmark Regulation SFDR reference Pillar 3 reference EU Climate Law reference Material/ Non-material Page reference and related datapoint reference Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation ESRS E1-1 Undertakings (EU) 2022/2453 Template 1: Delegated Regulation (EU) excluded from Paris-aligned Banking book-Climate Change 2020/1818, Article12.1 (d) to Data point not applicable Benchmarks paragraph 16 (g) transition risk: Credit quality (g), and Article 12.2 of exposures by sector, emissions and residual maturity Article 449a Regulation (EU) No 575/2013; Commission ESRS E1-4 GHG emission Implementing Regulation Indicator number 4 of Table Delegated Regulation (EU) STATEMENTS reduction targets (EU) 2022/2453 Template Data point not applicable #2 of Annex 1 2020/1818, Article 6 paragraph 34 3: Banking book – Climate CONSOLIDATED FINANCIAL change transition risk: alignment metrics ESRS E1-5 Energy consumption from fossil Indicator number 5 Table #1 sources disaggregated by and Indicator n. 5 Table #2 of Material 151 sources (only high climate Annex 1 impact sectors) paragraph 38 ESRS E1-5 Energy Indicator number 5 of Table consumption and mix Material 151 #1 of Annex 1 paragraph 37 ESRS E1-5 Energy intensity associated with activities in Indicator number 6 of Table Material 151 high climate impact sectors #1 of Annex 1 paragraphs 40 to 43 Article 449a Regulation (EU) REPORT No 575/2013; Commission ON OPERATIONS Implementing Regulation ESRS E1-6 Gross Scope 1, 2, (EU) 2022/2453 Template 1: Delegated Regulation (EU) Indicators number 1 and 2 3 and Total GHG emissions Banking book-Climate Change 2020/1818, Article 5(1), 6 and Material 154 Table #1 of Annex 1 paragraph 44 transition risk: Credit quality 8(1) of exposures by sector, emissions and residual maturity AMPLIFON AT A GLANCE 205 --- ANNUAL REPORT 2024 Disclosure Requirement Benchmark Regulation SFDR reference Pillar 3 reference EU Climate Law reference Material/ Non-material Page reference and related datapoint reference Article 449a Regulation (EU) No 575/2013; Commission ESRS E1-6 Gross GHG Implementing Regulation Indicator number 3 of Table Delegated Regulation (EU) emissions intensity (EU) 2022/2453 Template Material 152 #1 of Annex 1 2020/1818, Article 8(1) paragraphs 53 to 55 3: Banking book – Climate change transition risk: alignment metrics ESRS E1-7 GHG removals and Regulation (EU) 2021/1119, Non-material carbon credits paragraph 56 Article 2(1) ESRS E1-9 Exposure of the Delegated Regulation benchmark portfolio to (EU) 2020/1818, Annex II Disclosure subject to phase-in climate-related physical risks Delegated Regulation (EU) STATEMENTS paragraph 66 2020/1816, Annex II Article 449a Regulation (EU) CONSOLIDATED FINANCIAL Disaggregation of monetary No 575/2013; Commission amounts by acute and chronic Implementing Regulation (EU) physical risk paragraph 66 (a) 2022/2453 paragraphs 46 and Disclosure subject to phase-in ESRS E1-9 Location of 47; Template 5: Banking book significant assets at material - Climate change physical risk: physical risk paragraph 66 (c) Exposures subject to physical risk Article 449a Regulation (EU) No 575/2013; Commission ESRS E1-9 Breakdown of Implementing Regulation the carrying value of its real (EU) 2022/2453 paragraph estate assets by energy- 34; Template 2: Banking book Disclosure subject to phase-in efficiency classes paragraph -Climate change transition 67 (c) risk: Loans collateralised by immovable property - Energy REPORT efficiency of the collateral ON OPERATIONS ESRS E1-9 Degree of exposure of the portfolio to climate- Delegated Regulation (EU) Disclosure subject to phase-in related opportunities 2020/1818, Annex II paragraph 69 ESRS E2-4 Amount of each Indicator number 8 Table #1 pollutant listed in Annex II of Annex 1 Indicator number of the E-PRTR Regulation 2 Table #2 of Annex 1 (European Pollutant Release Non-material Indicator number 1 Table #2 and Transfer Register) of Annex 1 Indicator number emitted to air, water and soil, 3 Table #2 of Annex 1 paragraph 28 AMPLIFON AT A GLANCE 206 --- ANNUAL REPORT 2024 Disclosure Requirement Benchmark Regulation SFDR reference Pillar 3 reference EU Climate Law reference Material/ Non-material Page reference and related datapoint reference ESRS E3-1 Water and marine Indicator number 7 of Table Non-material resources paragraph 9 #2 of Annex 1 ESRS E3-1 Dedicated policy Indicator number 8 of Table Non-material paragraph 13 #2 of Annex 1 ESRS E3-1 Sustainable oceans Indicator number 12 of Table Non-material and seas paragraph 14 #2 of Annex 1 ESRS E3-4 Total water Indicator number 6.2 of Table recycled and reused Non-material #2 of Annex 1 paragraph 28 (c) ESRS E3-4 Total water consumption in m3 per net Indicator number 6.1 of Table Non-material revenue on own operations #2 of Annex 1 STATEMENTS paragraph 29 ESRS 2 IRO-1 – E4 paragraph Indicator number 7 of Table CONSOLIDATED FINANCIAL Material 132 16 (a) i #1 of Annex 1 ESRS 2 IRO-1 – E4 paragraph Indicator number 10 of Table Material 132 16 (b) #2 of Annex 1 ESRS 2 IRO-1 – E4 paragraph Indicator number 14 of Table Material 132 16 (c) #2 of Annex 1 ESRS E4-2 Sustainable land Indicator number 11 of Table / agriculture practices or Non-material #2 of Annex 1 policies paragraph 24 (b) ESRS E4-2 Sustainable oceans Indicator number 12 of Table / seas practices or policies Non-material #2 of Annex 1 paragraph 24 (c) ESRS E4-2 Policies to address Indicator number 15 of Table deforestation paragraph Non-material #2 of Annex 1 REPORT 24 (d) ESRS E5-5 Non-recycled waste Indicator number 13 of Table ON OPERATIONS Non-material paragraph 37 (d) #2 of Annex 1 ESRS E5-5 Hazardous waste Indicator number 9 of Table and radioactive waste Non-material #1 of Annex 1 paragraph 39 ESRS 2 - SBM3 - S1 Risk of Indicator number 13 of Table incidents of forced labour Material 158 #3 of Annex 1 paragraph 14 (f) ESRS 2 - SBM3 - S1 Risk of Indicator number 12 of Table incidents of child labour Material 158 #3 of Annex 1 paragraph 14 (g) ESRS S1-1 Human rights Indicator number 9 Table policy commitments #3 and Indicator number 11 Material 160 paragraph 20 Table #1 of Annex I AMPLIFON AT A GLANCE 207 --- ANNUAL REPORT 2024 Disclosure Requirement Benchmark Regulation SFDR reference Pillar 3 reference EU Climate Law reference Material/ Non-material Page reference and related datapoint reference ESRS S1-1 Due diligence policies on issues addressed by the fundamental Delegated Regulation (EU) Material 160 International Labor 2020/1816, Annex II Organisation Conventions 1 to 8, paragraph 21 ESRS S1-1 Processes and measures for preventing Indicator number 11 of Table Material 160 trafficking in human beings #3 of Annex 1 paragraph 22 ESRS S1-1 Workplace accident prevention policy Indicator number 1 of Table Material 162 STATEMENTS or management system #3 of Annex 1 paragraph 23 CONSOLIDATED FINANCIAL ESRS S1-3 Grievance/ Indicator number 5 of Table complaints handling Material 163 #3 of Annex 1 mechanisms paragraph 32 (c) ESRS S1-14 Number of fatalities and number Indicator number 2 of Table Delegated Regulation (EU) and rate of work- related Non-material #3 of Annex 1 2020/1816, Annex II accidents paragraph 88 (b) and (c) ESRS S1-14 Number of days lost to injuries, accidents, Indicator number 3 of Table Non-material fatalities or illness paragraph #3 of Annex 1 88 (e) ESRS S1-16 Unadjusted Indicator number 12 of Table Delegated Regulation (EU) gender pay gap paragraph Non-material #1 of Annex 1 2020/1816, Annex II REPORT 97 (a) ESRS S1-16 Excessive CEO pay Indicator number 8 of Table ON OPERATIONS Non-material ratio paragraph 97 (b) #3 of Annex 1 ESRS S1-17 Incidents of Indicator number 7 of Table discrimination paragraph Material 175 #3 of Annex 1 103 (a) ESRS S1-17 Non-respect of Delegated Regulation Indicator number 10 Table UNGPs on Business and (EU) 2020/1816, Annex II #1 and Indicator number 14 Material 175 Human Rights and OECD Delegated Regulation (EU) Table #3 of Annex I paragraph 104 (a) 2020/1818 Art 12 (1) ESRS 2 SBM-3 – S2 Significant risk of child labour or forced Indicators number 12 and n. Material 178 labour in the value chain 13 Table #3 of Annex I paragraph 11 (b) AMPLIFON AT A GLANCE 208 --- ANNUAL REPORT 2024 Disclosure Requirement Benchmark Regulation SFDR reference Pillar 3 reference EU Climate Law reference Material/ Non-material Page reference and related datapoint reference ESRS S2-1 Human rights Indicator number 9 Table policy commitments #3 and Indicator number 11 Material 179 paragraph 17 Table #1 of Annex I ESRS S2-1 Policies related Indicators number 11 and n. 4 to value chain workers Material 179 Table #3 of Annex I paragraph 18 ESRS S2-1 Non-respect of Delegated Regulation UNGPs on Business and Indicator number 10 of Table (EU) 2020/1816, Annex II Human Rights principles and Material 179 #1 of Annex 1 Delegated Regulation (EU) OECD guidelines paragraph 2020/1818 Art 12 (1) 19 ESRS S2-1 Due diligence STATEMENTS policies on issues addressed by the fundamental Delegated Regulation (EU) CONSOLIDATED FINANCIAL Material 179 International Labor 2020/1816, Annex II Organisation Conventions 1 to 8, paragraph 19 ESRS S2-4 Human rights issues and incidents Indicator number 14 of Table connected to its upstream Material 178 #3 of Annex 1 and downstream value chain paragraph 36 ESRS S3-1 Human rights Indicator number 9 Table policy commitments #3 and Indicator number 11 Non-material paragraph 16 Table #1 of Annex I ESRS S3-1 Non-respect of Delegated Regulation UNGPs on Business and Indicator number 10 of Table (EU) 2020/1816, Annex II Human Rights, ILO principles Non-material #1 of Annex 1 Delegated Regulation (EU) REPORT or and OECD guidelines 2020/1818 Art 12 (1) paragraph 17 ON OPERATIONS ESRS S3-4 Human rights Indicator number 14 of Table issues and incidents Non-material #3 of Annex 1 paragraph 36 ESRS S4-1 Policies related to Indicator number 9 Table consumers and end-users #3 and Indicator number 11 Material 184 paragraph 16 Table #1 of Annex I ESRS S4-1 Non-respect of Delegated Regulation UNGPs on Business and Indicator number 10 of Table (EU) 2020/1816, Annex II Human Rights principles and Material 184 #1 of Annex 1 Delegated Regulation (EU) OECD guidelines paragraph 2020/1818 Art 12 (1) 17 AMPLIFON AT A GLANCE 209 --- ANNUAL REPORT 2024 Disclosure Requirement Benchmark Regulation SFDR reference Pillar 3 reference EU Climate Law reference Material/ Non-material Page reference and related datapoint reference ESRS S4-4 Human rights Indicator number 14 of Table issues and incidents Material 184 #3 of Annex 1 paragraph 35 ESRS G1-1 United Nations Indicator number 15 of Table Convention against Material 137, 196 #3 of Annex 1 Corruption paragraph 10 (b) ESRS G1-1 Protection of Indicator number 6 of Table whistle- blowers paragraph Data point not applicable #3 of Annex 1 10 (d) ESRS G1-4 Fines for violation Indicator number 17 of Table Delegated Regulation (EU) of anti- corruption and anti- Material 200 #3 of Annex 1 2020/1816, Annex II bribery laws paragraph 24 (a) STATEMENTS ESRS G1-4 Standards of anti- Indicator number 16 of Table corruption and anti- bribery Data point not applicable CONSOLIDATED FINANCIAL #3 of Annex 1 paragraph 24 (b) Milano, March 6th 2025 for the Board of Directors REPORT Chief Executive Officer ON OPERATIONS Enrico Vita Disclaimer This report contains forward looking statements (“Outlook”) regarding 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. AMPLIFON AT A GLANCE 210 --- ANNUAL REPORT 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 211 --- ANNUAL REPORT 2024 CONSOLIDATED FINANCIAL STATEMENTS AS AT st DECEMBER 31 , 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 212 --- ANNUAL REPORT 2024 INDEX st CONSOLIDATED FINANCIAL STATEMENTS AS AT DECEMBER 31 , 2024 > CONSOLIDATED STATEMENT OF 7. OTHER NON-CURRENT ASSETS 232 FINANCIAL POSITION 215 8. DERIVATIVES AND HEDGE ACCOUNTING 233 9. INVENTORIES 235 > CONSOLIDATED INCOME STATEMENT 216 10. TRADE RECEIVABLES 236 11. CONTRACT COSTS 237 > STATEMENT OF CONSOLIDATED 12. OTHER RECEIVABLES 238 STATEMENTS COMPREHENSIVE INCOME 217 13. OTHER FINANCIAL ASSETS 238 14. CASH AND CASH EQUIVALENTS 239 CONSOLIDATED FINANCIAL > STATEMENT OF CHANGES 15. SHARE CAPITAL 239 IN CONSOLIDATED EQUITY 218 16. NET FINANCIAL POSITION 240 17. FINANCIAL LIABILITIES 242 > STATEMENT OF CONSOLIDATED 18. LEASE LIABILITIES 247 CASH FLOWS 220 19. PROVISIONS FOR RISKS AND CHARGES (MEDIUM/LONG-TERM) 248 > SUPPLEMENTARY INFORMATION TO THE 20. LIABILITIES FOR EMPLOYEES’ BENEFITS STATEMENT OF CONSOLIDATED CASH FLOWS 221 (MEDIUM/LONG-TERM) 249 21. OTHER LONG-TERM LIABILITIES 251 > NOTES 222 22. TRADE PAYABLES 251 23. CONTRACT LIABILITIES 252 1. GENERAL INFORMATION 222 24. OTHER PAYABLES 253 REPORT 2. IMPACT OF THE CONFLICT IN UKRAINE, 25. PROVISIONS FOR RISKS AND CHARGES ON OPERATIONS IN MIDDLE EAST, AND CLIMATE CHANGE (CURRENT PORTION) 254 ON THE GROUP’S PERFORMANCE AND 26. LIABILITIES FOR EMPLOYEES’ BENEFITS FINANCIAL POSITION 223 (CURRENT PORTION) 254 3. ACQUISITIONS AND GOODWILL 224 27. SHORT-TERM FINANCIAL DEBT 254 4. INTANGIBLE FIXED ASSETS WITH USEFUL LIFE 229 28. DEFERRED TAX ASSET AND LIABILITIES 255 5. PROPERTY, PLANT, AND EQUIPMENT 230 29. REVENUES FROM SALES AND SERVICES 257 6. RIGHT-OF-USE ASSETS 231 30. OPERATING COSTS 258 AMPLIFON AT A GLANCE 213 --- ANNUAL REPORT 2024 31. OTHER INCOME AND COSTS 260 > ANNEXES 301 32. AMORTIZATION, DEPRECIATION AND IMPAIRMENT 260 • CONSOLIDATION AREA 301 33. FINANCIAL INCOME, EXPENSES, AND VALUE • INFORMATION PURSUANT ADJUSTMENTS TO FINANCIAL ASSETS 261 TO ARTICLE § 149-DUODECIES 34. INCOME TAXES 263 OF CONSOB ISSUERS’ REGULATIONS 306 STATEMENTS 35. PERFORMANCE STOCK GRANT 264 • DECLARATION IN RESPECT OF THE 36. SUBSIDIARIES WITH RELEVANT MINORITY CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL INTERESTS, JOINT VENTURES AND ASSOCIATE PURSUANT TO ARTICLE 154-BIS COMPANIES 272 OF LEGISLATIVE DECREE NO. 58/98 307 37. NON-RECURRING SIGNIFICANT EVENTS 273 • ATTESTATION OF SUSTAINABILITY STATEMENT 38. EARNINGS (LOSSES) PER SHARE 274 PURSUANT TO ARTICLE 81-TER, COMMA 1, OF 39. TRANSACTIONS WITH PARENT COMPANIES CONSOB REGULATION NO. 11971 OF MAY 14, AND RELATED PARTIES 275 1999, AS AMENDED 312 40. GUARANTEES PROVIDED, COMMITMENTS, AND CONTINGENT LIABILITIES 278 41. TRANSACTIONS ARISING FROM ATYPICAL/UNUSUAL TRANSACTIONS 278 42. FINANCIAL RISK MANAGEMENT 279 43. TRANSLATION OF FOREIGN COMPANIES’ REPORT FINANCIAL STATEMENTS 282 ON OPERATIONS 44. SEGMENT INFORMATION 282 45. ACCOUNTING POLICIES 287 46. SUBSEQUENT EVENTS 300 AMPLIFON AT A GLANCE 214 --- ANNUAL REPORT 2024 (€ thousands) CONSOLIDATED STATEMENT 12/31/2024 12/31/2023 Change LIABILITIES (*) OF FINANCIAL POSITION Net Equity Share capital 4,528 4,528 - Note 15 Share premium reserve 202,712 202,712 - (€ thousands) Treasury shares (29,358) (17,495) (11,863) 12/31/2024 12/31/2023 Change Other reserves (77,628) (53,608) (24,020) ASSETS Retained earnings 904,374 809,643 94,731 Non-current assets Profit (loss) for the period 145,374 155,139 (9,765) Goodwill 1,945,495 1,799,574 145,921 Note 3 Group net equity 1,150,002 1,100,919 49,083 Intangible fixed assets with finite useful life 428,360 416,589 11,771 Note 4 Minority interests 222 759 (537) STATEMENTS Property, plant, and equipment 253,924 221,516 32,408 Note 5 Total net equity 1,150,224 1,101,678 48,546 Right-of-use assets 492,064 478,153 13,911 Note 6 Non-current liabilities CONSOLIDATED FINANCIAL Equity-accounted investments 2,527 2,444 83 Note 36 Medium/long-term financial liabilities 952,283 710,267 242,016 Note 17 Hedging instruments 4,454 12,933 (8,479) Note 8 Lease liabilities 387,597 383,909 3,688 Note 18 Deferred tax assets 77,332 82,701 (5,369) Note 28 Provisions for risks and charges 20,925 19,379 1,546 Note 19 Contract costs 10,494 11,275 (781) Note 11 Liabilities for employees’ benefits 15,457 12,963 2,494 Note 20 Other assets 52,884 46,835 6,049 Note 7 Hedging instruments 1,157 1,157 Note 8 - Total non-current assets 3,267,534 3,072,020 195,514 Deferred tax liabilities 99,493 98,451 1,042 Note 28 Current assets Payables for business acquisitions 5,885 7,229 (1,344) Note 21 Inventories 93,180 88,320 4,860 Note 9 Contract liabilities 153,766 153,716 50 Note 23 Trade receivables 226,754 231,253 (4,499) Note 10 Other long-term liabilities 35,667 26,379 9,288 Note 21 Contract costs 7,734 6,840 894 Note 11 Total non-current liabilities 1,672,230 1,412,293 259,937 Other receivables 107,552 100,184 7,368 Note 12 Current liabilities REPORT Hedging instruments 878 549 329 Note 8 Trade payables 377,100 358,955 18,145 Note 22 Other financial assets 296 901 (605) ON OPERATIONS Note 13 Payables for business acquisitions 11,510 9,554 1,956 Note 24 Cash and cash equivalents 288,834 193,148 95,686 Note 14 Contract liabilities 122,914 120,043 2,871 Note 23 Total current assets 725,228 621,195 104,033 Tax liabilities 49,830 74,433 (24,603) Note 24 TOTAL ASSETS 3,992,762 3,693,215 299,547 Other payables 197,460 181,101 16,359 Note 24 Hedging instruments 739 242 497 Note 8 Provisions for risks and charges 2,403 1,268 1,135 Note 25 Liabilities for employees’ benefits 4,094 3,713 381 Note 26 Short-term financial liabilities 277,518 316,413 (38,895) Note 27 Lease liabilities 126,740 113,522 13,218 Note 18 Total current liabilities 1,170,308 1,179,244 (8,936) TOTAL LIABILITIES 3,992,762 3,693,215 299,547 (*)Transactions with related parties have not been reported separately because not material both at single AMPLIFON entity and at consolidated level. Please refer to note 39 for more details. AT A GLANCE 215 --- ANNUAL REPORT 2024 (*) CONSOLIDATED INCOME STATEMENT (€ thousands) FY 2024 FY 2023 Recurring Non-recurring Total Recurring Non-recurring Total Change Revenues from sales and services 2,409,241 - 2,409,241 2,260,084 - 2,260,084 149,157 Note 29 Operating costs (1,848,006) (6,587) (1,854,593) (1,727,574) (14,738) (1,742,312) (112,281) Note 30 Other income and costs 6,442 - 6,442 9,077 - 9,077 (2,635) Note 31 Gross operating profit (EBITDA) 567,677 (6,587) 561,090 541,587 (14,738) 526,849 34,241 Amortization, depreciation and impairment Note 32 Amortization of intangible fixed assets with finite useful life (108,062) - (108,062) (93,448) - (93,448) (14,614) STATEMENTS Depreciation of property, plant, and equipment (61,710) - (61,710) (54,391) - (54,391) (7,319) CONSOLIDATED FINANCIAL Right-of-use depreciation (131,586) - (131,586) (119,292) - (119,292) (12,294) Impairment losses and reversals of non-current assets (1,360) (1,558) (2,918) (506) - (506) (2,412) (302,718) (1,558) (304,276) (267,637) - (267,637) (36,639) Operating result 264,959 (8,145) 256,814 273,950 (14,738) 259,212 (2,398) Financial income, expenses and value adjustments to financial assets Note 33 Group's share of the result of associated companies valued at equity 225 - 225 555 - 555 (330) and gains/losses on disposals of equity investments Interest income and expenses (34,740) - (34,740) (27,737) - (27,737) (7,003) (19,138) - (19,138) (14,808) - (14,808) (4,330) Interest expenses on lease liabilities Other financial income and expenses (3,184) - (3,184) (5,966) - (5,966) 2,782 REPORT Exchange gains and losses, and inflation accounting (2,647) - (2,647) (3,172) - (3,172) 525 ON OPERATIONS (550) - (550) 1,663 - 1,663 (2,213) Gain (loss) on assets accounted at fair value (60,034) - (60,034) (49,465) - (49,465) (10,569) Profit (loss) before tax 204,925 (8,145) 196,780 224,485 (14,738) 209,747 (12,967) Current and deferred income tax Note 34 Current tax (49,805) 1,772 (48,033) (65,713) 4,087 (61,626) 13,593 Deferred tax (3,177) - (3,177) 6,904 - 6,904 (10,081) (52,982) 1,772 (51,210) (58,809) 4,087 (54,722) 3,512 Net profit (loss) 151,943 (6,373) 145,570 165,676 (10,651) 155,025 (9,455) Net profit (loss) attributable to Minority interests 196 - 196 (114) - (114) 310 Net profit (loss) attributable to the Group 151,747 (6,373) 145,374 165,790 (10,651) 155,139 (9,765) (*)Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 39 for more details. AMPLIFON AT A GLANCE 216 --- ANNUAL REPORT 2024 Earnings and dividend per share (€ per share) Note 38 FY 2024 FY 2023 Earnings per share - basic 0,64384 0,69285 - Diluted 0,64214 0,68809 Dividend per share (*) 0,29 0,29 rd (*) Dividend proposed by the Board of Directors at the Shareholders General Meeting convened on April 23 , 2025. STATEMENTS CONSOLIDATED FINANCIAL STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME (€ thousands) FY 2024 FY 2023 Net income (loss) for the period 145,570 155,025 Other comprehensive income (loss) that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (2,603) (4,501) Note 20 Tax effect on components of other comprehensive income that will not be reclassified subsequently to profit or loss 489 762 Total other comprehensive income (loss) that will not be reclassified subsequently to profit or loss after the tax effect (A) (2,114) (3,739) REPORT Other comprehensive income (loss) that will be reclassified subsequently to profit or loss ON OPERATIONS Gains/(losses) on cash flow hedging instruments (9,253) (13,191) Note 8 Gains/(losses) from Foreign Currency Basis Spread on hedging instruments - 516 Note 8 Gains/(losses) on exchange differences from translation of financial statements of foreign entities (15,061) (57,935) Tax effect on components of other comprehensive income that will be reclassified subsequently to profit or loss 2,221 3,132 Total other comprehensive income (loss) that will be reclassified subsequently to profit or loss after the tax effect (B) (22,093) (67,478) Total other comprehensive income (loss) (A)+(B) (24,207) (71,217) Comprehensive income (loss) for the period 121,363 83,808 Attributable to the Group 121,346 84,274 Attributable to Minority interests 17 (466) AMPLIFON AT A GLANCE 217 --- ANNUAL REPORT 2024 STATEMENT OF CHANGES IN CONSOLIDATED EQUITY (€ thousands) Foreign Profit Share Treasury Stock Cash flow Curr, Actuarial Total Share Legal Other Retained Translation (loss) Minority Total net premium shares grant hedge Basis gains and Shareholders' capital reserve reserves earnings differences for the interests equity reserve reserve reserve reserve Spread losses equity period Reserve Balance at 01/01/2023 4,528 202,712 934 3,636 (49,895) 35,182 19,913 (392) 2,782 691,409 (50,825) 178,525 1,038,509 1,841 1,040,350 Allocation of profit 178,525 (178,525) - - (loss) for 2022 STATEMENTS Share capital increase - - Treasury shares - - CONSOLIDATED FINANCIAL Dividend distribution (65,361) (65,361) (65,361) Notional cost 27,305 27,305 27,305 Note 35 of stock grants Other changes 32,400 (21,188) 4,980 16,192 (616) 15,576 - Stock Grant 32,400 (21,188) (7,106) 4,106 4,106 - Inflation accounting 12,890 12,890 12,890 - Other changes (804) (804) (616) (1,420) Total comprehensive income (loss) for the (10,025) 392 (3,739) 90 (57,583) 155,139 84,274 (466) 83,808 REPORT period ON OPERATIONS - Hedge accounting Note 8 (10,025) 392 (9,633) (9,633) - Actuarial gains (losses) (3,739) (3,739) (3,739) - Deferred taxes accounted for 90 90 90 within Net Equity - Translation differences (57,583) (57,583) (352) (57,935) - Result for FY 2023 155,139 155,139 (114) 155,025 Balance at 12/31/2023 4,528 202,712 934 3,636 (17,495) 41,299 9,888 - (957) 809,643 (108,408) 155,139 1,100,919 759 1,101,678 AMPLIFON AT A GLANCE 218 --- ANNUAL REPORT 2024 (€ thousands) Share Treasury Stock Cash flow Actuarial Profit Total Share Legal Other Retained Translation Minority Total net premium shares grant hedge gains and (loss) for Shareholders' capital reserve reserves earnings differences interests equity reserve reserve reserve reserve losses the period equity Balance at 01/01/2024 4,528 202,712 934 3,636 (17,495) 41,299 9,888 (957) 809,643 (108,408) 155,139 1,100,919 759 1,101,678 Allocation of profit 155,139 (155,139) - - (loss) for 2023 Share capital increase - - STATEMENTS Treasury shares (25,396) (25,396) (25,396) CONSOLIDATED FINANCIAL Dividend distribution (65,593) (65,593) (65,593) Notional cost of stock 16,131 16,131 16,131 Note 35 grants Other changes 13,533 (16,123) 5,185 2,595 (554) 2,041 - Stock Grant 13,533 (16,123) 1,364 (1,226) (1,226) - Inflation accounting 17,484 17,484 17,484 - Other changes (13,663) (13,663) (554) (14,217) Total comprehensive income (loss) for the (7,032) (2,114) (14,882) 145,374 121,346 17 121,363 period REPORT ON OPERATIONS - Hedge accounting Note 8 (7,032) (7,032) (7,032) - Actuarial gains (losses) (2,114) (2,114) (2,114) - Translation differences (14,882) (14,882) (179) (15,061) - Result for FY 2024 145,374 145,374 196 145,570 Balance at 12/31/2024 4,528 202,712 934 3,636 (29,358) 41,307 2,856 (3,071) 904,374 (123,290) 145,374 1,150,002 222 1,150,224 AMPLIFON AT A GLANCE 219 --- ANNUAL REPORT 2024 (*) STATEMENT OF CONSOLIDATED CASH FLOWS (€ thousands) (€ thousands) FY 2024 FY 2023 FY 2024 FY 2023 INVESTING ACTIVITIES: OPERATING ACTIVITIES Purchase of intangible fixed assets (61,451) (66,313) Net profit (loss) 145,570 155,025 Purchase of tangible fixed assets (84,970) (75,340) Amortization, depreciation and impairment: Consideration from sale of non-current assets 1,386 1,795 108,446 93,506 - intangible fixed assets Cash flow generated from (absorbed by) operating investing (145,035) (139,858) 62,686 54,839 activities (B) - property, plant, and equipment Purchase of subsidiaries and business units net of cash and cash 131,586 119,292 - right-of-use assets (192,531) (108,469) STATEMENTS equivalents acquired or dismissed 1,558 - - goodwill Increase (decrease) in payables for business acquisitions 2,466 (13,154) CONSOLIDATED FINANCIAL Provisions, other non-monetary items and gain/losses from Cash flow generated from (absorbed by) acquisition activities (C) (190,065) (121,623) 18,103 35,871 disposals Cash flow generated from (absorbed by) investing activities (B+C) (335,100) (261,481) Group’s share of the result of associated companies (221) (550) FINANCING ACTIVITIES: Financial income and expenses 60,255 50,017 Increase (decrease) in financial payables 198,575 (15) Current and deferred taxes 51,210 54,720 (Increase) decrease in financial receivables (833) 50,390 Hedging instruments - (1,483) Cash flow from operating activities before change in working capital 579,193 562,720 Fees paid on long-term borrowings (1,807) (1,413) Utilization of provisions (2,837) (10,871) Principal portion of lease payments (128,959) (116,187) (Increase) decrease in inventories (2,465) (11,361) Other non-current assets and liabilities 5,290 (773) Decrease (increase) in trade receivables 3,133 (49,121) Dividend distributed (65,593) (65,361) Increase (decrease) in trade payables 6,681 24,152 Treasury shares purchase (25,396) - REPORT Capital increases and minority shareholders’ contributions and Changes in other receivables and other payables (7,710) 27,490 (125) (215) dividends paid to third parties by subsidiaries ON OPERATIONS Total change in assets and liabilities (3,198) (19,711) Cash flow generated from (absorbed by) financing activities (D) (18,848) (135,057) Dividends received 147 198 Net increase in cash and cash equivalents (A+B+C+D) 97,210 17,005 Interest received (paid) (56,058) (51,985) Cash and cash equivalents at beginning of period 193,148 179,654 Taxes paid (68,926) (77,679) Effect of exchange rate fluctuations on cash & cash equivalents (1,524) (3,511) Flows of cash and cash equivalents 97,210 17,005 Cash flow generated from (absorbed by) operating activities (A) 451,158 413,543 Cash and cash equivalents at end of period 288,834 193,148 (*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 39 for more details. 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 loans are detailed in Note 39. AMPLIFON AT A GLANCE 220 --- ANNUAL REPORT 2024 SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS The fair value of the assets and liabilities of the business combinations referred to in Note 3 are summarized below: (€ thousands) FY 2024 FY 2023 - Goodwill 143,151 81,339 - Customer lists 49,881 31,082 STATEMENTS - Trademarks and non-competition agreements 1,509 5 CONSOLIDATED FINANCIAL - Other intangible fixed assets 3,677 504 - Property, plant, and equipment 11,610 8,727 - Right-of-use assets 14,043 1,209 - Current assets 16,380 6,523 - Provisions for risks and charges (1,890) 2 - Current liabilities (31,353) (11,989) - Other non-current assets and liabilities (25,420) (7,623) - Third parties equity 14,088 1,653 Total investments 195,676 111,432 Net financial debt acquired 3,752 1,169 REPORT Total business combinations 199,428 112,601 ON OPERATIONS (Increase) decrease in payables through business acquisition (2,466) 13,154 Cash flow absorbed by (generated from) acquisitions 196,962 125,755 (Cash and cash equivalents acquired) (6,897) (4,132) Net cash flow absorbed by (generated from) acquisitions 190,065 121,623 AMPLIFON AT A GLANCE 221 --- ANNUAL REPORT 2024 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. (42.01% as at 31 December 2024), held by Amplifin S.r.l, which is owned at 88% by Susan Carol Holland. As a result of increased voting rights, on 31 December 2024 Ampliter S.r.l. held 59.08% of the voting rights. STATEMENTS The consolidated financial statements on 31 December 2024 have been prepared in CONSOLIDATED FINANCIAL accordance with International Financial Reporting Standards (IFRS) and the regulations implementing 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 31 December 2024. International Financial Reporting Standards endorsed after that date and before the preparation of these financial statements are adopted in the preparation of this annual report only if early adoption is allowed by the endorsing regulation, by the reporting standard itself and the Group has elected to do so. The publication of the consolidated financial statements of the Amplifon Group for REPORT the year closed on 31 December 2024, carried out in accordance with European ON OPERATIONS Commission Delegated Regulation n. 2019/815, as amended, was authorized by the Board of Directors on 7 March 2024. This annual report is subject to the approval of the Annual Shareholders’ Meeting of Amplifon S.p.A. convened on 23 April 2025. The accounting policies adopted in the preparation of the annual report and a summary of the accounting principles and interpretations to be applied in the future are detailed in section 45 “Accounting Policies”. AMPLIFON AT A GLANCE 222 --- ANNUAL REPORT 2024 Regarding climate change, the Amplifon Group’s business model is based on providing 2. IMPACT OF THE CONFLICT retail hearing solutions. The goals, therefore, connected to transitioning to alternative sources of energy and the actions needed to address climate change are pursued IN UKRAINE, IN MIDDLE EAST, 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 AND CLIMATE CHANGE ON 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. THE GROUP’S PERFORMANCE Furthermore, the Group’s activities and business model do not entail significant exposure to the environmental risks connected specifically to climate change. AND FINANCIAL POSITION The geopolitical uncertainty continues and persists due to the conflicts underway in the Middle East and Ukraine. There have been significant developments in the Middle STATEMENTS East over the last few months. After a period of intense fighting, at the beginning of 2025 the two sides agreed to a ceasefire. Despite the ceasefire, the situation remains CONSOLIDATED FINANCIAL delicate. Isolated incidents and tensions persist, which call for constant monitoring of the region. The conflict, furthermore, has impacted the entire region, resulting in the involvement of other countries including Iran and Lebanon and affecting geopolitical dynamics in the Middle East, above all with respect to energy and financial markets. In this region, however, the Group only has about 24 points of sale in Israel which generate sales less than 1% of annual consolidated revenues and limited activities in nearby countries (Egypt) and does not have any direct or indirect business activities in Lebanon and Iran. As for the conflict between Ukraine and Russia, the situation remains fluid and complex, with continuous developments on both military and diplomatic levels. The Group has no business activities, direct or indirect, in either Ukraine, Russia or Byelorussia and limited activities in surrounding countries (Poland and Hungary). REPORT The current macroeconomic and geopolitical backdrop, impacted by conflict and ON OPERATIONS political elections in various countries, continues to be characterized by uncertainty and volatility. While inflation and interest rates have shown signs of a progressive decline, albeit with different trends in the different geographic areas, these factors could continue to impact demand and different cost items including, for example, the cost of debt. Generally, the hearing aid market has shown great resilience even in times of economic crisis thanks to the importance and non-discretional nature of hearing care, which remains a priority for consumers regardless of the economic conditions. This along with the use of public/private insurances and consumer loans, which facilitate access to services and hearing aids, contributes to the stability of the demand even in periods of economic uncertainty. The persistent uncertainty and volatility, particularly in Europe, could impact consumer confidence in general and cause consumers to postpone the purchase of a hearing aid which would, however, still be needed in the medium term. AMPLIFON AT A GLANCE 223 --- ANNUAL REPORT 2024 3. ACQUISITIONS AND GOODWILL In detail: The Group continued with external growth in 2024 and acquired 393 points of sale, (*) SHARE DEALS primarily as a result of the acquisitions made in China, the US (where two important acquisitions of franchisees were finalized) and Uruguay, for a total investment of Company name Date Location €192,531 thousand, including the debt consolidated and the best estimate of the earn- Shaanxi Xinhongchun Medical Equipment Co. 01/01/2024 China out linked to sales and profitability targets payable over the next few years. Audical S.A.S 01/02/2024 Uruguay In 2024: Centro Auditivo S.A.S 01/02/2024 Uruguay Ikako S.A. 01/02/2024 Uruguay • 109 points of sale were acquired in China; Audition Fontaine S.A.S. 01/02/2024 France • 98 points of sale were acquired in the United States; Provincial Hearing Aid Service (Halifax) Ltd. 01/04/2024 Canada • 58 points of sale were acquired in Germany; • 50 points of sale were acquired in France; Rupert Hearing Ltd. 01/16/2024 Canada STATEMENTS • 36 points of sale were acquired in Spain; Hörvergnügen GmbH 01/22/2024 Germany • 23 points of sale were acquired in Uruguay; CONSOLIDATED FINANCIAL Armor Audition S.A.S. 02/01/2024 France • 12 points of sale were acquired in Canada; • 6 points of sale were acquired in Italy; AFL Audition Frank Lefevre S.A.S. 02/01/2024 France • 1 point of sale was acquired in Argentina. GFL Audition S.A.S. 02/01/2024 France Audea Hörcenter GmbH 02/01/2024 Germany Pavel Hören und Sehen GmbH & Co. KG 02/22/2024 Germany Grousseau S.A.S. 03/01/2024 France Nadov Audition S.A.S. 03/01/2024 France Hörwelt Duisburg GmbH 03/07/2024 Germany Clarity Hearing 03/15/2024 Canada Wilms Hörsysteme GmbH 04/01/2024 Germany REPORT Pastel Audiologie S.A.S. 04/01/2024 France ON OPERATIONS Pastel Audition S.A.S. 04/01/2024 France Audia Hearing Aid Centre Inc. 04/02/2024 Canada Acoustiques des Halles S.A.S. 06/01/2024 France Audition Détente S.A.S. 06/01/2024 France The Hearing Institute of Ontario, Inc. 06/14/2024 Canada Belletente S.A.S. 07/01/2024 France Audiloire S.A.S. 07/01/2024 France L’Oreillette Du Mans S.A.S. 07/01/2024 France Aurissimans S.A.S. 07/01/2024 France Anhui Amplifon Hearing Aid Business Co., Ltd. 07/01/2024 China AMPLIFON Pure Audiology & Hearing Aid Services, Inc. 07/26/2024 Canada AT A GLANCE 224 --- ANNUAL REPORT 2024 (*) SHARE DEALS ASSET DEALS Company name Date Location Name Date Location Ningxia Listening Shunan Medical Equipment Co. 01/01/2024 China AnLaiSheng (Inner Mongolia) Medical Equipment Co.Ltd 08/01/2024 China Shaanxi Xinhongchun Medical Equipment Co. 01/01/2024 China L’Effet L’Arsene S.A.S. 09/02/2024 France HGH GmbH 01/01/2024 Germany François Audition S.A.S. 09/02/2024 France HearingPro, Inc., Las Davis Enterprises, Inc., and Miracle-Ear Centers of Audition Freres François S.A.S. 09/02/2024 France 01/19/2024 United States Arkansas LLC FFF Audio S.A.S. 09/02/2024 France Auric Hörcenter Salzgitter GmbH & Co. KG 02/01/2024 Germany Vouvray Audition S.A.S. 09/02/2024 France Payne Communications, Inc. 02/23/2024 United States Audifonos factory, S.L. 09/12/2024 Spain Audiomedical 03/01/2024 Italy Châteaubriant 03/18/2024 France Audifonos sevillaudio, S.L. 09/12/2024 Spain Hörgeräte Wolfgang Grein 04/01/2024 Germany Audio diagnostics, S.L. 09/12/2024 Spain STATEMENTS auric Hörcenter Wolfsburg GmbH & Co. KG 04/01/2024 Germany Audio elite sur, S.L. 09/12/2024 Spain Beautiful Sound 04/15/2024 China Audiolmenes, S.L. 09/12/2024 Spain CONSOLIDATED FINANCIAL Hörgeräte-Akustik-Meisterbetrieb Dirk Hornig 04/15/2024 Germany Corbaudio centros auditivos, S.L. 09/12/2024 Spain Hearing Instruments, Inc. & Precision Hearing Aids, LLC 04/26/2024 United States Talayoaudio, S.L.U. 09/12/2024 Spain auric hörcenter Dachau GmbH & Co. KG 05/01/2024 Germany Tecnoaudifonos, S.L.U. 09/12/2024 Spain Der Hörgeräteladen 05/15/2024 Germany Audio nevada, S.L. 09/12/2024 Spain Hörgeräte Vogt 06/01/2024 Germany Audioliva, S.L. 09/12/2024 Spain August Akustik 06/01/2024 Germany Centro audio granada, S.L. 09/12/2024 Spain Weitkamp Hörgeräte 06/15/2024 Germany Futurooigo, S.L. 09/12/2024 Spain Zaddach Hörakustik 06/15/2024 Germany Optik Hallmann GmbH 06/15/2024 Germany Centro auditivo sent, S.L. 09/12/2024 Spain Hörakustik Hofmann 07/01/2024 Germany Esteponaudio, S.L. 09/12/2024 Spain REPORT Remstal Hörgeräte 07/01/2024 Germany Recimetal cordoba, S.L. 09/12/2024 Spain ON OPERATIONS Sitges Shop 07/02/2024 Spain Soluciones auditivas de la subbetica, S.L. 09/12/2024 Spain Ultimate Hearing Solutions II; III, IV; V; VI, LLC 07/12/2024 United States Soluciones auditivas y visuales gonzales, S.L. 09/12/2024 Spain Labat 2000 S.r.l. 07/15/2024 Italy Soluciones profesionales de audiologia, S.L. 09/12/2024 Spain Tecnoaudio di Luccini Ines 07/16/2024 Italy Sonic technology españa, S.L. 09/12/2024 Spain Franchisee Tucuman 09/01/2024 Argentina Sontec centros auditivos, S.L. 09/12/2024 Spain Fondettes, Tours La Tranchèe 09/02/2024 France Audioconseil S.A.S. 10/01/2024 France Carrera Dieguez Centro Auditivo SL 09/25/2024 Spain Audition Oscar Thuaire S.A.S. 10/01/2024 France Audiboisalnes SL 09/25/2024 Spain Clarté Audition Sanguinet S.A.S. 10/01/2024 France Rocket Tai 10/01/2024 China Clarté Audition Nord Landes S.A.S. 10/01/2024 France Pennsylvania Hearing Aid Centers, Inc. 10/18/2024 United States Audioral, S.L. 12/10/2024 Spain St. Thomas Hearing Clinic Inc. 11/01/2024 Canada AMPLIFON (*) All the companies were 100% acquired and were entirely consolidated on the acquisition date. AT A GLANCE 225 --- ANNUAL REPORT 2024 (€ thousands) Contribution Total Financial Expected Cash to turnover Purchase debts Total Cost annual acquired from the Price acquired turnover (*) purchase date Total share 123,041 (6,897) 3,752 119,896 46,560 31,614 deals Total asset deals 72,635 - - 72,635 41,942 27,116 Total 195,676 (6,897) 3,752 192,531 88,502 58,730 (*) Annual turnover is the best available estimate of the turnover of the firm or business acquired during 2024. Changes in goodwill and the amounts recognized during the year following acquisitions completed in the reporting period, broken down by Groups of Cash Generating Units, STATEMENTS are detailed in the table below. CONSOLIDATED FINANCIAL (€ thousands) Net Net carrying Business Other net carrying Disposals Impairment value at combinations changes value at 12/31/2023 12/31/2024 EMEA 955,383 76,666 - (1,558) 672 1,031,163 Americas 237,178 57,271 - - 19,182 313,631 Asia Pacific 607,013 9,214 - - (15,526) 600,701 Total goodwill 1,799,574 143,151 - (1,558) 4,328 1,945,495 REPORT “Acquisitions in the period“ refers to the temporary allocation to goodwill of the ON OPERATIONS portion of the purchase price paid, comprehensive of the deferred portion and the contingent consideration (earn-out) referred to in Notes 21 “Other long-term liabilities” and 24 “Other payables”, which is not directly attributable to the fair value of assets and liabilities but, rather, based on the assumption that the positive contribution to cash flow will last for an indefinite period of time. “Writedowns” refers to the impairment of goodwill in the equity investment Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH, active in a business not related directly to hearing aids. “Other net changes“ are almost entirely attributable to foreign exchange differences. AMPLIFON AT A GLANCE 226 --- ANNUAL REPORT 2024 The carrying amounts and the fair value of assets and liabilities, deriving from the IDENTIFICATION OF THE GROUPS temporary allocation of the purchase price paid for business combinations and non- controlling interests in subsidiaries, are summarized below. OF CASH GENERATING UNITS For the purposes of impairment testing the total goodwill stemming from the cost (€ thousands) incurred for a business combination was allocated to groups of Cash Generating Units; Asia these groups of Cash Generating Units were identified by region and benefit from EMEA Americas Total Pacific synergies, as well as shared policies, and are autonomous in the management and use Cost of acquisitions of the period 95,057 67,672 32,947 195,676 of resources. Assets and liabilities acquired – Book value The breakdown of Groups of Cash Generating Units and the criteria used to identify Current assets 6,154 3,329 - 9,483 these groups are the same with respect to the financial Statements as at 31 December Current liabilities (14,526) (6,063) (1,476) (22,065) 2023. Net working capital (8,372) (2,734) (1,476) (12,582) STATEMENTS The groups of cash generating units identified for the purpose of impairment testing Other intangible, tangible and right-of-use assets 17,864 5,071 6,402 29,337 in the period are: CONSOLIDATED FINANCIAL Provisions for risks and charges (1,890) - - (1,890) Other non-current assets and liabilities (8,472) (876) (2,253) (11,601) • EMEA that includes Italy, France, the Netherlands, Germany, Belgium, Switzerland, Spain, Portugal, the UK, Hungary, Poland, Israel, and Egypt; Non-current assets and liabilities 7,502 4,195 4,149 15,846 • AMERICAs which includes the individual businesses through which it operates in Net invested capital (870) 1,461 2,673 3,264 the US market (Franchising, Retail, and Managed Care) and the countries Canada, Third Parties Equity - - 14,088 14,088 Argentina, Chile, Mexico, Panama, Ecuador, Colombia and Uruguay; • ASIA PACIFIC which includes Australia, New Zealand, India, and China. Net financial position 1,597 1,548 - 3,145 NET EQUITY ACQUIRED - BOOK VALUE 727 3,009 16,761 20,497 The recoverable value of goodwill is assessed at the higher of fair value and value in DIFFERENCE TO BE ALLOCATED 94,330 64,663 16,186 175,179 use. As at 31 December 2024, management used value in use for its valuations. ALLOCATIONS Trademarks 11 1,308 - 1,319 REPORT IMPAIRMENT TESTS Customer lists - 42 148 190 ON OPERATIONS Contract liabilities - Short and long-term 30,849 12,206 6,824 49,879 All the groups of cash-generating units were subject to IAS 36 compliant impairment tests, based on the value in use calculated using the discounted cash flow (DCF) method Deferred tax assets (9,271) (5,257) - (14,528) net of tax consistent with the post-tax discount rates used. Deferred tax liabilities 1,442 2,680 - 4,122 Total allocations (5,367) (3,587) - (8,954) The value in use of the groups of cash-generating units was determined by discounting the estimated future cash flows forecast in the three-year business plan (2025-2027) GOODWILL 17,664 7,392 6,972 32,028 approved by the subsidiaries’ Board of Directors, as well as in Amplifon’s consolidated business plan (2025-2027) approved by the Board of Directors on 17 December 2024. The impairment test was approved by the Board of Directors of the Parent Company before the approval of the Amplifon Group’s consolidated financial statements. AMPLIFON AT A GLANCE 227 --- ANNUAL REPORT 2024 The main assumptions that management used to estimate value in use include the The perpetual growth rate for each country was adjusted to reflect the International discount rate (WACC), the growth rate (g), and the expected changes in revenues and Monetary Fund’s forecast for inflation in 2028. costs during the period assumed for the calculation. EMEA AMERICAS ASIA PACIFIC The rate adopted to discount the expected cash flows is the weighted average cost of capital (WACC) post-tax, which reflects the current market valuations, and was Growth rate 1.92% 2.69% 2.34% determined using the risk-free interest rate per CGU which is equal to the yield on WACC (*) 2024 6.81% 9.28% 7.05% ten-year government bonds, the beta, the equity risk premium and the cost of debt. Cash flow time horizon (explicit assumption) 3Y 3Y 3Y More in detail, the beta and equity risk premium were determined in accordance with WACC (*) 2023 8.05% 11.30% 8.85% best practices using a widely recognized, international database (Damodaran) which (*) The WACC of the Groups of CGUs was determined by weighting the WACCs of each CGU found in the takes into account market and macroeconomic risks to determine the Equity Risk region based on the respective EBITDA recorded in the last year of the business plan. Premium and the systematic risk of a financial asset and the specific risks of the market in which the Group operates to determine beta. As there is no specific analysis of the STATEMENTS hearing aid sector in the database, the beta was calculated based on the arithmetic No loss in value was identified as a result of impairment testing. average of the betas for Healthcare Products, Healthcare Support Services and Retail CONSOLIDATED FINANCIAL special lines. The current global market conditions are characterized by persistent All the Groups of Cash Generating Units were also subjected to sensitivity analyses in uncertainty and volatility, as well as high interest rates and inflation, which impacts order to determine the change in underlying assumptions which, in light of the impact the forecasts for global economic growth. Particular attention was, therefore, paid to of this change on other variables, would result in the Groups of Cash Generating the sensitivity analysis and verifying that all the Groups of Cash Generating Units had Units’ recoverable value being equal to its book value. This analysis, shown below, sufficient headroom in the event there was an increase in the discount rates and a showed that only significant deviations from the business targets, in interest rates and decrease in the growth rates described below. perpetual growth rates, would reduce the recoverable value to a level close to the book value of all the Groups of Cash Generating Units. Negative % Negative changes changes in cash Changes (percentage (percentage points) in flow expected on points) in the discount growth rate expected on the basis of each rates (WACC) which REPORT the basis of each business business plan which would make the CGU’s plan which would make the would make the ON OPERATIONS recoverable value equal to CGU’s recoverable value CGU’s recoverable its book value equal to its book value value equal to its book value EMEA 17 p.p. 71% 12 p.p. AMERICAS 32 p.p. 74% 18 p.p. ASIA PACIFIC 5 p.p. 48% 4 p.p. AMPLIFON AT A GLANCE 228 --- ANNUAL REPORT 2024 4. INTANGIBLE FIXED The change in “Business combinations” comprises: • For €31,569 thousand, the temporary allocation of the price paid for acquisitions ASSETS WITH USEFUL LIFE made in EMEA; • For €16,526 thousand, the temporary allocation of the price paid for acquisitions The following tables show the changes in intangible assets. made in Americas; • For €6,972 thousand, the temporary allocation of the price paid for acquisitions made in APAC. (€ thousands) Accumulated Accumulated The increase in intangiblefixed assets seen in the year (€61,451 thousand) is attributable Historical amortization Net book Historical amortization Net book mainly to investments in digital technology and information technology. The constant cost at and write- value at cost at and write- value at focus on the customer and the desire to increase control of operations fueled the 12/31/2023 downs at 12/31/2023 12/31/2024 downs at 12/31/2024 12/31/2023 12/31/2024 significant work done on both technological infrastructures through the Symphony project, focused on providing customers with a highly personalized experience, as well Software 289,839 (171,112) 118,727 356,982 (220,799) 136,183 STATEMENTS as on the optimization of in-store systems and tools to support the Amplifon Product Licenses 29,731 (20,618) 9,113 35,392 (26,093) 9,299 Experience, which has redefined Amplifon’s entire customer journey, including through Non-competition CONSOLIDATED FINANCIAL 19,484 (14,614) 4,870 23,601 (19,300) 4,301 store renovation. At the same time substantial work was also done on operating and agreements back-office processes, as well as on systems used to streamline and centralize Group Customer lists 474,972 (276,910) 198,062 524,674 (316,879) 207,795 procurement. Trademarks and 95,028 (50,803) 44,225 94,720 (56,145) 38,575 concessions The item “Other net changes” is explained by foreign exchange differences and the Other 14,056 (4,197) 9,859 18,378 (6,113) 12,265 reclassification of work in progress completed in the period. Fixed assets in progress and 31,733 - 31,733 19,942 - 19,942 advances Total 954,843 (538,254) 416,589 1,073,689 (645,329) 428,360 (€ thousands) REPORT Net book Other Net book ON OPERATIONS Business value at InvestmentsDisposals Amortization Impairment net value at combinations 12/31/2023 changes 12/31/2024 Software 118,727 28,241 (126) (48,226) 110 (63) 37,520 136,183 Licenses 9,113 3,370 (10) (5,564) 8 (3) 2,385 9,299 Non- competition 4,870 2,662 - (4,508) 190 (186) 1,273 4,301 agreements Customer 198,062 (150) (27) (41,059) 49,881 - 1,088 207,795 lists Trademarks and 44,225 14 - (6,627) 1,311 - (348) 38,575 concessions Other 9,859 (757) (4) (2,078) 3,431 (132) 1,946 12,265 Fixed assets AMPLIFON in progress AT A GLANCE 31,733 28,071 (482) - 136 - (39,516) 19,942 and advances Total 416,589 61,451 (649) (108,062) 55,067 (384) 4,348 428,360 229 --- ANNUAL REPORT 2024 (€ thousands) 5. PROPERTY, PLANT AND EQUIPMENT Net book Other Net book Business value atInvestments Disposals Amortization Impairment net value at The following table shows the changes in property, plant and equipment. combinations 12/31/2023 changes 12/31/2024 Land 129 - - - - - 36 165 (€ thousands) Buildings, constructions Accumulated Accumulated 105,996 30,805 471 (25,567) 1,621 (542) 16,482 129,266 andleasehold Historical amortization Net book Historical amortization Net book improvements cost at and write- value at cost at and write- value at 12/31/2023 downs at 12/31/2023 12/31/2024 downs at 12/31/2024 Plant and 8,661 2,168 (45) (2,655) 1,440 (40) 44 9,573 12/31/2023 12/31/2024 machines Industrial and Land 129 - 129 165 - 165 commercial 20,752 5,359 (79) (6,469) 480 - 2,445 22,488 Buildings, equipment constructions 321,929 (215,933) 105,996 371,383 (242,117) 129,266 Motor and leasehold 421 139 (137) (154) 161 (17) 238 651 STATEMENTS vehicles improvements Computers Plant and 43,102 (34,441) 8,661 47,495 (37,922) 9,573 and office 21,282 9,949 (180) (13,749) 2,536 (16) 4,432 24,254 CONSOLIDATED FINANCIAL machines machinery Industrial and Furniture and commercial 91,892 (71,140) 20,752 97,332 (74,844) 22,488 36,384 13,908 (17) (12,449) 2,074 (218) 5,398 45,080 fittings equipment Other tangible Motor vehicles 1,259 (838) 421 1,416 (765) 651 2,458 (93) (7) (667) 60 (14) 84 1,821 fixed assets Computers and Fixedassetsin 90,415 (69,133) 21,282 103,003 (78,749) 24,254 office machinery progressand 25,433 22,735 (313) - 3,238 (129) (30,338) 20,626 Furniture and advances 136,733 (100,349) 36,384 154,918 (109,838) 45,080 fittings Total 221,516 84,970 (307) (61,710) 11,610 (976) (1,179) 253,924 Other tangible 6,686 (4,228) 2,458 6,439 (4,618) 1,821 fixed assets The investments made in the reporting period (€84,970 thousand) refer primarily to Fixed assets in progress and 25,433 - 25,433 20,626 - 20,626 the opening of new stores and renewal of existing ones, as well as to the purchase of REPORT advances hardware needed for the implementation of Group Information Technology projects ON OPERATIONS previously described. Total 717,578 (496,062) 221,516 802,777 (548,853) 253,924 The change in “business combinations” comprises: • for €7,685 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; • for €1,213 thousand, the temporary allocation of the price paid for acquisitions made in Americas; • for €2,712 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 AMPLIFON period. AT A GLANCE 230 --- ANNUAL REPORT 2024 6. RIGHT-OF-USE ASSETS Right-of-use assets are broken down below: (€ thousands) Accumulated Accumulated The increase in right-of-use assets acquired in the year (€144,616 thousand) is Historical amortization Net book Historical amortization Net book explained by the renewal of existing leases and the network expansion. cost at and write- value at cost at and write- value at 12/31/2023 downs at 12/31/2023 12/31/2024 downs at 12/31/2024 The decreases in right-of-use assets refer to early terminations of rent contracts due 12/31/2023 12/31/2024 to store relocations. No significant costs or fees were incurred as a result of these early Stores and offices 880,210 (418,590) 461,620 955,892 (483,899) 471,993 terminations. Motor vehicles 31,377 (17,828) 13,549 35,504 (17,687) 17,817 Electronic The change in “business combinations” comprises: 4,644 (1,660) 2,984 4,368 (2,114) 2,254 STATEMENTS machinery Total 916,231 (438,078) 478,153 995,764 (503,700) 492,064 • for €9,464 thousand, the temporary allocation of the price paid for acquisitions CONSOLIDATED FINANCIAL made in EMEA; • for €889 thousand, the temporary allocation of the price paid for acquisitions made (€ thousands) in Americas; Net book Other Net book • for €3,690 thousand, the temporary allocation of the price paid for acquisitions Business value at Increase Decrease Depreciation Impairment net value at made in APAC. combinations 12/31/2023 changes 12/31/2024 Stores and 461,620 130,582 (10,215) (121,978) 13,893 - (1,909) 471,993 “Other changes” refers mainly to foreign exchange differences recorded in the offices reporting period. Motor 13,549 13,553 (1,197) (8,420) 150 - 182 17,817 vehicles For more details refer to Note 18 “Lease liabilities”. Electronic 2,984 481 (42) (1,188) - - 19 2,254 machinery Total 478,153 144,616 (11,454) (131,586) 14,043 - (1,708) 492,064 REPORT ON OPERATIONS AMPLIFON AT A GLANCE 231 --- ANNUAL REPORT 2024 Other non-current assets on 31 December 2024 refer mainly to: 7. OTHER NON-CURRENT ASSETS • for €14,489 thousand, suspended costs, commissions, and other compensation for post-sales services to be rendered in the future payable to agents in Italy who (€ thousands) manage most of the Amplifon Italia S.p.A. stores; Balance at Balance at Change • €12,480 thousand in security deposits called for in the leases for stores and offices. 12/31/2024 12/31/2023 Long-term financial receivables 6,120 12,915 (6,795) The long-term financial receivables refer largely to the loans granted to Miracle Ear Asset Plans and other restricted amounts 1,637 1,362 275 franchisees in the United States to support growth. Other non-current assets 45,127 32,558 12,569 Both long-term financial receivables and other non-current assets are held until the Total 52,884 46,835 6,049 contractual cash flows are received and discounted when the interest rate applied to the latter differs from the market rate. The increase in other non-current assets against the prior year is attributable mainly to the recognition of tax credits stemming from the super bonus discounts in accordance The non-current assets broken down by the accounting method applied is shown STATEMENTS with Art. 119 of Legislative Decree 34/2020 and Art. 21 of Legislative Decree 34/2020, below: purchased from a top-tier bank with a nominal value of €69,995 thousand for €65,694 CONSOLIDATED FINANCIAL thousand to be repaid as the credits are used. In accordance with the current tax (€ thousands) December 31st, 2024 laws, these credits may be used to offset tax payments, withholding and other fiscal Consolidated statement Fair Value contributions. Amortized cost Fair Value through P&L of financial position through OCI Non-current assets These credits (and the related payments) are recognized at amortized cost, and when Financial assets measured at FV utilized, any remaining difference between the value at amortized cost and the nominal through P&L offsetting amount is recognized as financial income. Financial long-term receivables 6,120 In 2024, credits used for offsetting amounted to €36,210 thousand and financial Asset plans and other restricted 1,637 income, including discounting of credits, amounted to €2,876 thousand. Financial amounts expenses for discounting payables amounted to €226 thousand. Other non-current assets 45,127 REPORT As of December 31, 2024, the amount of these receivables recorded under ‘Other ON OPERATIONS Non-current Assets’ amounts to €13,617 thousand, the short-term portion is recorded (€ thousands) December 31st, 2023 under ‘Other Receivables’ for €16,048 thousand, while the payables for the settlement Consolidated statement Fair Value of these receivables are classified under ‘Other Short-term Liabilities’ for €16,026 Amortized cost Fair Value through P&L of financial position through OCI thousand and under ‘Other Long-term Liabilities’ for €13,599 thousand. Non-current assets Financial assets measured at FV through P&L Financial long-term receivables 12,915 Asset plans and other restricted 1,362 amounts Other non-current assets 32,558 AMPLIFON AT A GLANCE 232 --- ANNUAL REPORT 2024 CASH FLOW HEDGES 8. DERIVATIVES AND Cash flow hedges were made against the interest rate risk relating to medium/long- HEDGE ACCOUNTING term outstanding debt of €413.1 million on 31 December 2024, of which €225 million negotiated during the year. These are instruments not listed on official markets, entered into for the purpose of hedging interest rate and/or currency risk. The fair value of these instruments is (€ thousands) determined by using valuation models based on market-derived inputs (source: Bloomberg) such as forward rates, exchange rates, etc. The valuation is performed Hedging purpose Hedged risk Fair value at 12/31/2024 Fair value at 12/31/2023 using the DCF method. Own risk and counterparty risk (credit/debit value adjustments) were taken into account. These credit/debit value adjustments were determined Hedging purpose Hedged risk Assets Liabilities Assets Liabilities based on market information such as the value of CDS (Credit Default Swaps) and Medium long-term bank Interest rate 4,836 1,157 12,933 - loans used to determine counterparty risk, also taking into account the mutual break clause if present. Total 4,836 1,157 12,933 - STATEMENTS The following table shows the fair values of the derivatives outstanding at the end CONSOLIDATED FINANCIAL of the comparison period and at the reporting date showing the fair value of those The following table details the gains or losses from the derivatives currently in place derivatives that qualify as fair value hedges and cash flow hedges, and those that do and the impact on the statement of financial position of the cash flow hedge reserve. not qualify for hedge accounting, separately. Amounts are shown before the tax effect. Reclassified to the Reclassified to the (€ thousands) Fair value at 12/31/2024 Fair value at 12/31/2023 Recognized (€ thousands) income statement - income statement - in net equity Effective portion Ineffective Type Assets Liabilities Assets Liabilities (Debit)/Credit (Loss) Gain (Loss) Gain Fair value hedge - - - - 1/1/2023 - 12/31/2023 (12,675) - - Cash flow hedge 4,836 1,157 12,933 - 1/1/2024 - 12/31/2024 (9,253) - - Total hedge accounting 4,836 1,157 12,933 - REPORT Non hedge accounting 496 739 549 242 ON OPERATIONS The maturity of the hedges is in line with the duration of the item hedged. Please refer Total 5,332 1,896 13,482 242 to Note 17 “Financial Payables” for details. AMPLIFON AT A GLANCE 233 --- ANNUAL REPORT 2024 NON-HEDGE ACCOUNTING DERIVATIVES Non-hedge accounting derivatives comprise forwards hedging the exchange risk The following table shows the fair value measurement on the basis of a hierarchy on transactions in currency other than the Company’s or the individual subsidiary’s which reflects the level of significance of the data used for the valuation. reporting currency. This hierarchy consists of the following levels: 1. listed (unadjusted) prices in active markets for identical assets and liabilities; VALUATION METHOD 2. input data other than the above listed prices, but which can be observed directly or indirectly in the market; The following tables show the breakdown of derivatives by the valuation method applied: 3. input data on assets or liabilities not based on observable market data. (€ thousands) December 31st, 2024 (€ thousands) 2024 2023 Consolidated statement of financial position Fair value Net Equity Fair Value through P&L Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total STATEMENTS Asset Derivative Instruments – Cash flow hedge 4,836 Assets CONSOLIDATED FINANCIAL Liability Derivative Instruments – Cash flow hedge 1,157 Hedging instruments Asset Derivative Instruments - Non-hedge accounting 496 - Long-term 4,454 12,933 4,454 12,933 Liability Derivative Instruments - Non-hedge accounting 739 - Short-term 878 549 878 549 Liabilities Hedging instruments (€ thousands) December 31st, 2023 - Long-term 1,157 - 1,157 - Consolidated statement of financial position Fair value Net Equity Fair Value through P&L - Short-term 739 242 739 242 Asset Derivative Instruments – Cash flow hedge 12,933 There were no transfers between levels in 2024. Liability Derivative Instruments – Cash flow hedge Asset Derivative Instruments - Non-hedge accounting 549 REPORT Liability Derivative Instruments - Non-hedge accounting 242 ON OPERATIONS AMPLIFON AT A GLANCE 234 --- ANNUAL REPORT 2024 9. INVENTORIES (€ thousands) Balance at 12/31/2024 Balance at 12/31/2023 Obsolescence Obsolescence Cost Net Cost Net provision provision Finished goods 105,968 (12,788) 93,180 100,268 (11,948) 88,320 Total 105,968 (12,788) 93,180 100,268 (11,948) 88,320 Movements in the provision for obsolete inventories during the year are shown below: STATEMENTS (€ thousands) CONSOLIDATED FINANCIAL Balance at 12/31/2023 (11,948) Provision (2,046) Utilization 1,920 Business combination (763) Translation differences and other movements 49 Balance at 12/31/2024 (12,788) REPORT ON OPERATIONS AMPLIFON AT A GLANCE 235 --- ANNUAL REPORT 2024 The face value of the factoring without recourse transactions carried out in the year 10. TRADE RECEIVABLES amounted to €239,346 thousand (versus €239,797 thousand in the prior year) and relate primarily to receivables generated in the year and, therefore, did not have a Trade receivables are detailed in the following table: significant impact on the comparison of working capital with the prior year. Movements in the allowance for doubtful accounts in the year were as follows: (€ thousands) Balance at Balance at Change (€ thousands) 12/31/2024 12/31/2023 Trade receivables 226,504 231,053 (4,549) Trade receivables - Subsidiaries 196 161 35 Balance at 12/31/2023 (14,840) Trade receivables - Parent company 14 13 1 Provisions (5,402) Trade receivables - Associated companies 40 26 14 and joint ventures Reversals 697 STATEMENTS Total trade receivables 226,754 231,253 (4,499) Utilization for charges 1,678 Business combinations (421) CONSOLIDATED FINANCIAL The composition of trade receivables is detailed in the following table: Translation differences and other net charges 52 Balance at 12/31/2024 (18,236) (€ thousands) Balance at Balance at In compliance with the mandatory disclosure requirements in Italy as per Law n. 124 of Change 12/31/2024 12/31/2023 4/8/17 n. 124, please note that in 2024 Amplifon Italia S.p.A. received a total of €56,734 Trade receivables 246,685 247,722 (1,037) thousand (as shown in 50,776 invoices) from public entities, of which €48,901 thousand (as shown in 43,766 invoices) through financial operators, and €7,833 thousand (as Sales returns liabilities (1,945) (1,829) (116) shown in 7,010 invoices) through direct deposits. Allowance for doubtful accounts (18,236) (14,840) (3,396) Total 226,504 231,053 (4,549) REPORT The average collection time was around 30 days in 2024 and there is no significant ON OPERATIONS concentration of credit risk. €218,314 thousand of the trade receivables are held as part of a “held to collect” business model based on which contractual cash flows are collected at maturity and €28,371 thousand are held as part of a “hold to collect and sell” business model based on which contractual cash flows are collected at maturity or through a sale. AMPLIFON AT A GLANCE 236 --- ANNUAL REPORT 2024 11. CONTRACT COSTS (€ thousands) Balance at Balance at Change 12/31/2024 12/31/2023 Contract costs – Short-term 7,734 6,840 894 Contract costs – Long-term 10,494 11,275 (781) Total 18,228 18,115 113 The contract costs, of €18,228 thousand, refer to the costs incurred to obtain or fulfil contracts capitalized in accordance with IFRS 15. These typically include commissions and bonuses paid to employees and agents for each sale made in Italy which manage the STATEMENTS majority of the Amplifon Italia S.p.A. stores. These costs are deferred and recognized in the income statement based on the level to which the relative contractual performance CONSOLIDATED FINANCIAL obligations were satisfied. The significant changes in contract cost balances are shown below: (€ thousands) Net value at 12/31/2023 18,115 Increase linked to customer contracts and reversals (72) Business combinations 58 REPORT Translation differences and other net changes 127 ON OPERATIONS Net value at 12/31/2024 18,228 The impact that the amortization of contract costs for contracts in place on 31 December 2024 will have on the income statement going forward is shown below: (€ thousands) 2029 and 2025 2026 2027 2028 beyond Contract costs 7,737 5,088 2,976 1,620 807 AMPLIFON AT A GLANCE 237 --- ANNUAL REPORT 2024 • €3,380 thousand to advertising; • € 1,994 thousand to costs related to leases which do not qualify as lease components 12. OTHER RECEIVABLES • as defined by IFRS16 – Leasing; • € 1,570 thousand to insurance premiums. (€ thousands) Balance at Balance at Change 12/31/2024 12/31/2023 Tax receivables 27,557 32,466 (4,909) 13. OTHER FINANCIAL ASSETS Other receivables 51,570 35,566 16,004 Non-financial prepayments 28,425 32,152 (3,727) and accrued income (€ thousands) Total 107,552 100,184 7,368 Balance at Balance at Change 12/31/2024 12/31/2023 Other financial assets 18 851 (833) STATEMENTS TAX RECEIVABLES Financial prepayments and accrued income 278 50 228 CONSOLIDATED FINANCIAL Total 296 901 (605) Tax receivables comprise mainly €17,035 thousand in VAT and other indirect tax credits held through maturity or through factoring without recourse (based on a held to collect business model) and €5,525 thousand in tax advances to be used to offset “Other financial assets” amounted to €296 thousand on 31 December 2024 compared future tax payables. to €901 thousand on 31 December 2023. Factoring without recourse of VAT credits amounted to €19,771 thousand in the reporting period with net proceeds reaching €19,279 thousand (€23,755 thousand and €23,156 thousand, respectively, on 31 December 2023). OTHER RECEIVABLES REPORT Other receivables are held with a view to collecting the contractual cash flows at ON OPERATIONS maturity. The increase against the prior year is attributable mainly to the recognition of tax credits stemming from the current portion of the superbonus discounts (current portion of €16,048 thousand), as reported in Note 7 “Other non-current assets”. NON-FINANCIAL ACCRUALS AND PREPAID EXPENSES This item refers for: • €11,996 thousand to services to be rendered in the future and for which revenue recognition is deferred (mainly post-sales services) relating primarily to agents in AMPLIFON Italy which manage the majority of the Amplifon Italia S.p.A stores; AT A GLANCE • € 9,485 thousand to other services and prepaid costs; 238 --- ANNUAL REPORT 2024 14. CASH AND CASH EQUIVALENTS 15. SHARE CAPITAL On 31 December 2024 the share capital comprised 226,388,620 ordinary shares (€ thousands) with a par value of €0.02 fully paid in and subscribed, unchanged with respect to 31 Balance at Balance at December 2023. Change 12/31/2024 12/31/2023 Bank current accounts 233,057 190,356 42,701 In 2024 920,000 treasury shares were purchased and 456,399 shares were transferred following the exercise of performance stock grants. Short-term bank deposits 53,957 1,262 52,695 Funds 97 117 (20) During the reporting period 37,500 shares were transferred as the second deferred Cash on hand 1,723 1,413 310 payment for the Otohub S.r.l acquisition made in 2019. Total 288,834 193,148 95,686 A total of 1,068,249 treasury shares, equal to 0.472% of the share capital, were held on 31 December 2024. STATEMENTS Cash and cash equivalents amounted to €288,834 thousand on 31 December 2024, an increase of €95,686 thousand compared to the €193,148 thousand recorded on 31 Movements in the treasury shares held are shown in the following table. CONSOLIDATED FINANCIAL December 2023. This change is explained mainly by the €75 million loan taken out with Mediobanca on 19 December 2024, used to refinance short-term debt maturing at the Average purchase price (Euro) No. of treasury Total amount beginning of 2025. shares (€ thousands) FV of transferred rights (Euro) Held at 12/31/2023 642,148 27.245 17,495 Cash and cash equivalents are deposited with top-rated banks and earn interest at Purchases 920,000 27.605 25,396 market rates. Transfers due to exercise of (456,399) 27.396 (12,503) performance stock grants The ratings assigned to financial assets by S&P are broken down below: Transfer due to exercise of (37,500) 27.457 (1,030) acquisition’s deferred payment (€ thousands) Rating S&P short-term Held at 12/31/2024 1,068,249 27.482 29,358 Balance at (*) A-1+ A-1 A-2 A-3 B Other REPORT 12/31/2024 ON OPERATIONS Non-current assets Hedging instruments – long-term 4,454 Current assets Hedging instruments – short-term 878 Bank current accounts, short- 287,111 17,595 70,830 158,653 327 193 39,513 term bank deposits, and funds Cash on hand 1,723 (*) The “Other” column refers primarily to time deposit balances with counterparties that are unrated, but which satisfy ECB’s minimum capital requirements, as well as with institutions not domiciled in the European Union. AMPLIFON AT A GLANCE 239 --- ANNUAL REPORT 2024 16. NET FINANCIAL POSITION Excluding lease liabilities (€514,337 thousand on 31 December 2024), net financial debt amounted to €961,805 thousand on 31 December 2024, broken down as follows: The Group’s net financial position, including lease liabilities, prepared in accordance with the ESMA guideline 32-382-1138 of 4 March 2021 and CONSOB’s Warning Notice (€ thousands) n. 5/21 of 29 April 2021, is shown below. Balance at Balance at Change 12/31/2024 12/31/2023 (€ thousands) Cash and Cash Equivalents 288,834 193,148 95,686 Short Term Investments - 883 (883) 12/31/2024 12/31/2023 Change Cash, Cash Equivalents and Short-Term Investments 288,834 194,031 94,803 Cash 288,834 193,148 (95,686) A Current Financial Indebtedness (excluding lease liabilities) 290,253 326,733 (36,480) Cash equivalent - - - B Current Financial Indebtedness (excluding lease liabilities) 1,419 132,702 (131,283) Short term investments - 883 (883) C Non-current Financial Indebtedness (excluding lease liabilities) 960,386 719,428 240,958 STATEMENTS Total Cash, Cash Equivalents and Short- D 288,834 194,031 (94,803) Term Investments (A+B+C) Total Financial Indebtedness (excluding lease liabilities) 961,805 852,130 109,675 CONSOLIDATED FINANCIAL Current financial payables (including bonds, but excluding current portion of medium/ 140,008 146,200 6,192 E The Group’s financial structure was strengthened by a few important transactions in long-term debt) 2024: - Other financial payables and bank 139,765 146,507 6,742 overdrafts • In June 2024 Amplifon S.p.A. subscribed the last €50 million tranche of the €350 - Hedging derivatives 243 (307) (550) million loan granted by the European Investment Bank (EIB) to support innovation Current portion of medium/long-term 276,985 294,055 (17,070) F and digitalization. €300 million of this loan had already been subscribed in 2023. financial debt • In September 2024 Amplifon S.p.A. signed a €50 million ESG-linked facility, backed - Financial accruals and deferred income 6,771 6,001 770 by SACE’s Garanzia Futuro, which will be used to finance the international rollout of - Payables for business acquisitions 11,510 9,554 1,956 Amplifon’s new store format which aims to provide consumers with an immersive - Bank borrowings 131,964 164,978 (33,014) and highly personalized experience, thanks to the visual and digital elements integrated in an innovative and sustainable design; - Lease Liability – current portion 126,740 113,522 13,218 REPORT • In October 2024 Amplifon S.p.A. signed a 5-year €200 million ESG linked credit G Current Financial Indebtedness (E+F) 416,993 440,255 (23,262) ON OPERATIONS facility with UniCredit and Cassa Depositi e Prestiti (CDP) comprising 2 tranches: Net Current Financial Indebtedness €100 million granted by UniCredit, to support the Group’s development initiatives H 128,159 246,224 219,636 (G-D) and €100 million granted by CDP which co-financed Amplifon’s investments in Non current financial payables 997,983 753,337 244,646 I innovation in Italy that are already supported by the above-mentioned loan with EIB. - Bank borrowings – Non current portion 604,501 362,199 242,302 • In December 2024, Amplifon S.p.A. signed another €75 million ESG-linked credit - Payables for business acquisitions – Non 5,885 7,229 (1,344) facility with Mediobanca - Banca di Credito Finanziario to support the Group’s current portion development initiatives. - Lease Liability – Non current portion 387,597 383,909 3,688 • During the year, as agreed with the lenders and based on the original loan Bonds 350,000 350,000 - J agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit - Eurobond 2020-2027 350,000 350,000 - were updated to reflect the KPIs and targets included in the new sustainability plan. Trade and other non current payables K - - - Non Current Financial Indebtedness L 1,347,983 1,103,337 244,646 (I+J+K) AMPLIFON AT A GLANCE M Total Financial Indebtedness (H+L) 1,476,142 1,349,561 126,581 240 --- ANNUAL REPORT 2024 Long-term debt, excluding lease liabilities, amounts to €960,386 thousand on 31 Bank loans, and the Eurobond 2020-2027, are included in the statement of financial December 2024 (€719,428 thousand on 31 December 2023), of which €5,885 thousand position as follows: refers to the long- term portion of deferred payments for acquisitions. The increase in the period of €240,958 thousand is attributable mainly to the new facilities stipulated a. under the item “Medium/long-term financial liabilities” described in the Note 17 during the year which were used to refinance short-term debt, net the reclassification “Financial liabilities” of the explanatory notes for the long-term portion. of portions of long-term bank debt expiring in the next 12 months, from long-to short- term. (€ thousands) The short-term portion of net financial debt, excluding lease liabilities, fell by €131,283 Balance at 12/31/2024 thousand, going from €132,702 thousand on 31 December 2023 to €1,419 thousand Eurobond 2020-2027 350,000 on 31 December 2024. Loan with the European Investment Bank 125,000 More in detail, short-term debt amounts to €290,253 thousand, a decrease of €36,480 Other medium/long-term debt 479,501 thousand. The available liquidity (€288,834 thousand), is close to the overall value of STATEMENTS Fees on Eurobond 2020-2027 and bank loans (2,218) short-term debt which comprises primarily the short-term portion of long-term bank debt (€131,964 thousand), the hot money accounts used to support treasury activities Medium/long-term financial liabilities 952,283 CONSOLIDATED FINANCIAL and other short-term credit lines (€139,765 thousand), the interest payable on the Eurobond (€3,474 thousand) and on other bank loans (€1,929 thousand) and, lastly, the best estimate of the deferred payments for acquisitions (€11,510 thousand). b. under the item “Financial liabilities (current)”, described in the Note 27 “Short-term financial debt” of the explanatory notes for the current portion. (€ thousands) Balance at 12/31/2024 Bank overdraft and other short-term debt 271,702 (including current portion of other long-term debt) Other financial payables 7,049 REPORT Fees on bank loans (1,233) ON OPERATIONS Short-term financial liabilities 277,518 The other items comprising net financial debt can be found in the financial statements. AMPLIFON AT A GLANCE 241 --- ANNUAL REPORT 2024 17. FINANCIAL LIABILITIES Financial liabilities are broken down as follows: (€ thousands) Balance at Balance at Change 12/31/2024 12/31/2023 Eurobond 2020-2027 350,000 350,000 - Loan with the European Investment Bank 125,000 75,000 50,000 Other medium long-term bank loans 479,501 287,199 192,302 Fees on Eurobond 2020-2027 and bank loans. (2,218) (1,932) (286) Total medium/long-term financial liabilities 952,283 710,267 242,016 STATEMENTS Short term debt 277,518 316,413 (38,895) CONSOLIDATED FINANCIAL - of which current portion of short-term bank loans 131,964 164,978 (33,014) - of which debts for account overdrafts and other short-term liabilities 139,765 146,299 (6,534) - of which fees for bank loans (1,233) (1,073) (160) Total short-term financial liabilities 277,518 316,413 (38,895) Total financial liabilities 1,229,801 1,026,680 203,121 The main financial liabilities are detailed below. EUROBOND 2020-2027 REPORT This is a €350,000 thousand 7-year nonconvertible bond with a fixed annual coupon of 1.125% that is listed on the Luxembourg Stock Exchange’s unregulated market. ON OPERATIONS Nominal value Fair value Issue Date Debtor Maturity Nominal interest rate Interest rate after hedging (€/000) (Eur/000) 02/13/2020 Amplifon S.p.A. 02/13/2027 350,000 337,490 1.125% N/A Total in Euro 350,000 337,490 AMPLIFON AT A GLANCE 242 --- ANNUAL REPORT 2024 BANK LOANS The main bilateral and pooled loans are detailed below: Outstanding Outstanding debt Swap rate+ Nominal value Fair Value (*) Issue Date Debtor Type Maturity debt Rate in use hedged applicable Fixed Rate Final rate in use (€//000) (Eur/000) (**) (€/000) (€/000) margin 04/06/2020 Amplifon S.p.A. 04/06/2025 50,000 7,142 7,203 4.96% 7,142 0.88% 0.88% Amortizing 04/07/2020 Amplifon S.p.A. 04/07/2025 150,000 30,000 30,256 4.10% 20,000 1.25% 1.25% Amortizing 04/23/2020 Amplifon S.p.A. 04/30/2025 35,000 11,375 11,420 3.67% 11,375 0.99% 0.99% Amortizing 04/28/2020 Amplifon S.p.A. 10/31/2025 50,000 25,000 25,362 3.94% 3.94% Amortizing 04/29/2020 Amplifon S.p.A. 04/29/2025 78,000 9,750 9,513 2.89% 6,825 1.56% 1.56% Amortizing 12/23/2021 Amplifon S.p.A. 12/23/2026 210,000 142,800 147,569 3.53% 142,800 1.11% 1.11% Amortizing STATEMENTS (***) 12/15/2023 Amplifon S.p.A. 12/15/2032 75,000 75,000 79,367 3.65% 3.65% 3.65% Amortizing CONSOLIDATED FINANCIAL 12/29/2023 Amplifon S.p.A. 09/30/2026 60,000 60,000 61,501 4.01% 4.01% 4.01% RCF - no cleandown (***) 06/27/2024 Amplifon S.p.A. 06/27/2033 50,000 50,000 53,741 3.90% 3.90% 3.90% Amortizing 06/30/2024 Amplifon S.p.A. 09/30/2029 50,000 50,000 51,284 3.66% 50,000 3.25% 3.25% Amortizing (****) 10/15/2024 Amplifon S.p.A. 10/15/2029 200,000 200,000 208,135 3.28% 100,000 3.43% 3.28% Amortizing 12/19/2024 Amplifon S.p.A. 12/19/2029 75,000 75,000 83,298 3.70% 75,000 3.33% 3.33% Amortizing Total 1,083,000 736,067 768,649 413,142 (*) 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 EIB is fixed rate through 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. (****) The rate for the €100 million tranche of this loan is 3.43% and 3.28% for the remainder. REPORT ON OPERATIONS AMPLIFON AT A GLANCE 243 --- ANNUAL REPORT 2024 The current loans, in thousands of euro and broken down by maturity, are shown below. Debtor Average interest rate Balance as at Repayments as at Balance as at Medium/Long term New loans Business combination Short term portion Maturity 2024/360 12/31/2023 12/31/2024 12/31/2024 portion Eurobond 2020-2027 Amplifon S.p.A. 1.125% 350,000 350,000 350,000 1.125% 02/13/2027 BNL amortizing Amplifon S.p.A. 0.88% (14,286) 7,142 21,428 7,142 Euribor 6m +1.25% 04/06/2025 Unicredit Amortizing Amplifon S.p.A. 2.95% (60,000) 30,000 90,000 30,000 Euribor 6m + margin grid 04/07/2025 Credit Agricole amortizing Amplifon S.p.A. 0.86% (10,500) 11,375 21,875 11,375 Euribor 6m +1.10% 06/30/2025 STATEMENTS Sparkasse amortizing Amplifon S.p.A. 4.81% (3,055) 3,055 - Euribor 3M + 1.05% CONSOLIDATED FINANCIAL 06/30/2025 BPM amortizing Amplifon S.p.A. 4.90% (25,000) 25,000 50,000 25,000 Euribor 6m +1.05% 10/31/2025 CDP/MPS amortizing Amplifon S.p.A. 3.16% (19,500) 9,750 29,250 9,750 Euribor 6m +1.65% 04/29/2025 Pool, (UCI, MB, BNL/BNP) (*) Amplifon S.p.A. 0.96% (33,600) 37,800 105,000 176,400 142,800 Euribor 6m + margin grid 12/23/2026 EIB fixed interest rate 2023- 2032 3.65% 5,000 70,000 75,000 75,000 Amplifon S.p.A. 12/15/2032 REPORT Intesa RCF no cleandown (*) ON OPERATIONS Amplifon S.p.A. 4.75% 60,000 60,000 60,000 Euribor 6m +1.15% 09/30/2026 EIB fixed interest rate 2023- 2033 3.90% 50,000 50,000 - 50,000 Amplifon S.p.A. 06/27/2033 Credit Agricole /SACE (*) Amplifon S.p.A. 3.25% 50,000 5,882 44,118 - 50,000 Euribor 3m +0.985% 09/30/2029 Unicredit Cassa Depositi e Prestiti (*) Amplifon S.p.A. 3.36% 200,000 200,000 - 200,000 Euribor 6m + margin grid 10/15/2029 Mediobanca (*) Amplifon S.p.A. 3.32% 75,000 75,000 - 75,000 Euribor 6m +1.25% 12/19/2029 Total long-term loans 877,008 (165,941) 375,000 1,086,067 131,949 954,118 AMPLIFON AT A GLANCE Others 302 82 384 384 TOTAL 877,310 (165,941) 375,000 82 1,086,451 131,949 954,502 (*) Loans “sustainability linked”, for which the achievement of specific indicators of the Amplifon S.p.A. Sustainability Plan will trigger a mechanism for adjusting the margin applied to the loan. It is confirmed that during the year, the ESG KPIs set for these loans have been met. 244 --- ANNUAL REPORT 2024 The maturities of financial debt on 31 December 2024 based on contractual obligations are shown below: (€ thousands) Eurobond 2020-2027 Loan EIB Bank loans Total 2025 5,000 126,949 131,949 2026 16,667 228,715 245,382 2027 350,000 16,667 63,715 430,382 2028 16,667 64,020 80,687 2029 16,667 128,052 144,719 2030 16,667 16,667 STATEMENTS 2031 16,667 16,667 2032 16,667 16,667 CONSOLIDATED FINANCIAL 2033 3,331 3,331 Total 350,000 125,000 611,451 1,086,451 The Group’s loans, bonds, and revolving credit lines are subject to the following financial covenants: • Net financial indebtedness, excluding lease liabilities, to the 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 consistently with 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. REPORT Typically, in the event of sizeable 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 ON OPERATIONS of the respective loans. The trigger events for these covenants and the spikes relative to sizeable acquisitions (i.e. increase in the ratios, for a period of not more than 12 months, twice over the life of the respective loans) are summarized below: Primary Credit Facility Agreement Leverage Ratio Net Worth Ratio Interest Cover Spike - Medium/long-term bilateral loans with top-tier banking institutions of €55 million, with last expiration in 2025; ≤ 3.26 (Leverage Ratio) ≤ 2.85 ≤ 1.65 - - Irrevocable credit lines with top-tier banking institutions of €140 million with last expiration in 2025. ≤ 2.20 (Net Worth Ratio) - €7.1 million bank loan expiring in 2025. ≤ 2.85 - > 4.90 ≤ 3.26 (Leverage Ratio) -Medium/long-term bilateral loans with top-tier banking institutions of €21.1 million with last expiration in 2025; ≤ 3.26 (Leverage Ratio) -Irrevocable lines of credit with top-tier banking institutions amounted to €100 million (explained by the sustainability-linked facility) ≤ 2.85 ≤ 1.65 > 4.90 expiring in 2026. ≤ 2.20 (Net Worth Ratio) AMPLIFON AT A GLANCE 245 --- ANNUAL REPORT 2024 (€ thousands) The following sustainability linked loans were not subject to financial covenants: Value as at 12/31/2024 • the loan negotiated at the end of 2021 which replaced the syndicated loan used for the GAES acquisition with a residual outstanding of €142.8 million; Group EBITDA FY 2024 561,090 • the €300 million revolving facility negotiated at the end of May 2023; Fair value of stock grant assignment 16,131 • the €50 million loan negotiated at the end of September 2024; EBITDA normalized (from acquisitions and disposals) 6,773 • the €200 million pool loan stipulated in October 2024; • the €75 million loan stipulated in December 2024. Acquisitions and non-recurring costs 7,809 EBITDA for the covenant calculation 591,803 Moreover, the €350 million loan stipulated with the European Investment Bank (EIB), of which €125 million utilized on 31 December 2024, are not subject to financial covenants. The same agreements are also subject to other covenants applied in current As a result of an MFL or Most Favorable Lender clause the financial covenants to which international practice which limits the ability to issue guarantees and complete sales other loans are subject (current or future) will also be applied to the banks financing and lease backs, as well as extraordinary transactions involving the sale of assets. STATEMENTS these lines. Based on management’s expectations (Group’s 2025-2027 3-year plan approved by CONSOLIDATED FINANCIAL The three financial covenants and the relative spikes shown in the table above are, the Parent Company’s Board of Directors on 17 December 2024) on 31 December therefore, applied to these credit lines to the extent that they are also applied to the 2024 there are no foreseeable circumstances which could cause the covenants to be other facilities. breached. The covenant ratios on 31 December 2024 were as follows: The breakdown of financial liabilities by the accounting method applied is shown below: Value as at 12/31/2024 (€ thousands) 12/31/2024 Net financial indebtedness excluding lease liabilities/Group net equity 0.84 (Net Worth Ratio) Fair value Fair Value Amortized cost Net financial position excluding lease liabilities/EBITDA for the last four quarters Net Equity through P&L 1.63 (Leverage Ratio) Total non-current financial liabilities 952,283 REPORT EBITDA for the last 4 quarters/Net financial expenses (Interest Cover) 17.77 Total current financial liabilities 277,518 ON OPERATIONS The above-mentioned ratios were determined based on an EBITDA which was restated (€ thousands) 12/31/2023 in order to reflect the main normalized, structural changes. Fair value Fair Value Amortized cost Net Equity through P&L Total non-current financial liabilities 710,267 Total current financial liabilities 316,413 AMPLIFON AT A GLANCE 246 --- ANNUAL REPORT 2024 18. LEASE LIABILITIES The maturities of the Group’s lease liabilities based on undiscounted contractual cash flows are summarized below: 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. (€ thousands) The finance lease liabilities are shown in the statement of financial position as follows: Between 1 Between 2 Between 3 Between 4 Description < 1 year > 5 years and 2 years and 3 years and 4 years and 5 years Undiscounted 130,953 114,895 91,253 69,607 53,217 128,991 (€ thousands) lease liabilities Value at Value at Change 12/31/2024 12/31/2024 The maturities of the Group’s lease liabilities based on discounted contractual Short term lease liabilities 126,740 113,522 13,218 payments are summarized below: Long term lease liabilities 387,597 383,909 3,688 (€ thousands) STATEMENTS Total lease liabilities 514,337 497,431 16,906 Between 1 Between 2 Between 3 Between 4 Description < 1 year > 5 years CONSOLIDATED FINANCIAL and 2 years and 3 years and 4 years and 5 years The impact that these lease liabilities had on the income statement in the reporting Lease liabilities 126,740 101,876 81,329 61,146 45,481 97,765 period is shown below: (€ thousands) 12/31/2024 Interest charges on leased assets (19,138) Right-of-use depreciation (131,586) Costs for short-term leases and leases for low value assets (19,655) REPORT ON OPERATIONS AMPLIFON AT A GLANCE 247 --- ANNUAL REPORT 2024 19. PROVISIONS FOR RISKS AND CHARGES (MEDIUM/LONG-TERM) (€ thousands) Value at 12/31/2024 Value at 12/31/2023 Change Product warranty provision 1,416 1,191 225 Contractual risk provision 3,399 3,420 (21) Agents’ leaving indemnity 13,515 13,092 423 Other risk provisions 2,595 1,676 919 Total 20,925 19,379 1,546 STATEMENTS (€ thousands) CONSOLIDATED FINANCIAL Net value as at Translation Business Net value at Provision Utilization Reversal Other net changes 12/31/2023 differences combinations 12/31/2024 Product warranty provision 1,191 872 (647) - - - - 1,416 Contractual risk provision 3,420 434 (615) (18) - (4) 182 3,399 Agents’ leaving indemnity 13,092 477 (119) - - 65 - 13,515 Other risk provisions 1,676 - (200) - 90 (23) 1,052 2,595 Total 19,379 1,783 (1,581) (18) 90 38 1,234 20,925 The “Agents’ leaving indemnity” refers mainly to Amplifon Italia S.p.A.’s provisions for the indemnity of €12,357 thousand. REPORT The main assumptions used in the actuarial calculation of Amplifon Italia S.p.A.’s agents’ leaving indemnity were: ON OPERATIONS FY 2024 Economic assumptions Annual discount rate 3.18% Demographic assumptions Probability of agency contract termination by the company 2.70% Probability of agent’s voluntary termination 8.25% Mortality rate RG48 Disability percentage INPS tables divided by age and sex AMPLIFON AT A GLANCE 248 --- ANNUAL REPORT 2024 20. LIABILITIES FOR EMPLOYEES’ BENEFITS (MEDIUM/LONG-TERM) (€ thousands) Balance at 12/31/2024 Balance at 12/31/2023 Change Defined-benefit plans 14,569 11,669 2,900 Other defined-benefit plans 775 758 17 Other provisions for personnel 113 536 (423) Total 15,457 12,963 2,494 STATEMENTS Provisions for defined-benefit plans mainly include the severance pay potentially owed CONSOLIDATED FINANCIAL by the Italian companies, as well as severance owed by the Swiss, French, Israeli and Belgian subsidiaries. The way in which these benefits are guaranteed varies based on the legal, tax and economic conditions of each country in which the Group operates. Movements in the provision for defined-benefit plans are detailed below: (€ thousands) FY 2024 REPORT Net present value of the liability at the beginning of the year 11,669 ON OPERATIONS Current service cost 417 Financial charges 132 Actuarial losses (gains) 2,603 Amounts paid (223) Translation differences (29) Reversal - Net present value of the liability at the end of the year 14,569 The current cost of severance indemnity is recognized under personnel expenses in the consolidated financial statements, while actuarial gains and losses are recognized in the statement of comprehensive income. AMPLIFON AT A GLANCE 249 --- ANNUAL REPORT 2024 The main assumptions used in the actuarial estimate of the liability for employee benefits include the following: FY 2024 Italy France Switzerland Israel Belgium Economic assumptions Annual discount rate 3.18% 3.16% 0.80% 5.73% 3.70% Expected annual inflation rate 2.00% 3.16% 2.00% 2.72% 2.10% Annual rate of increase 3.00% 3.00% 2.00% 5.99% 44.7% of severance indemnity Economic assumptions RG48 mortality tables published National mortality tables BVG 2020 GT Annual discount rate by the General Accounting Office INSEE 2022 Circular letter 2022-9-18 with a 5-year age setback STATEMENTS (generational) of the State adjustment INPS tables divided by age and CONSOLIDATED FINANCIAL Expected annual inflation rate N/A BVG 2020 Circular letter 2022-9-18 N/A sex 100% on meeting the Annual rate of increase 100% on meeting the age Male - 67 100% on meeting the age requirements for compulsory 60-67 years of severance indemnity requirements (65M/64F) Female - 62 requirements (65M/64F) national social insurance FY 2023 Italy France Switzerland Israel Economic assumptions Annual discount rate 3.08% 3.65% 1.40% 5.77% Expected annual inflation rate 2.00% 3.65% 2.00% 2.80% REPORT Annual rate of increase ON OPERATIONS 3.00% 3.00% 2.00% 6.03% of severance indemnity Economic assumptions RG48 mortality tables published by the BVG 2020 GT Annual discount rate INSEE 2022 Circular letter 2022-9-18 General Accounting Office of the State (generational) Expected annual inflation rate INPS tables divided by age and sex N/A BVG 2020 Circular letter 2022-9-18 Annual rate of increase 100% on meeting the requirements for 100% on meeting the age Male - 67 60-67 years of severance indemnity compulsory national social insurance requirements (65m/64f) Female - 62 Provisions for other benefits are attributable primarily to the mandatory benefits recognized by the Australian subsidiaries (€690 thousand) when an employee reaches a certain level of job seniority. AMPLIFON AT A GLANCE 250 --- ANNUAL REPORT 2024 21. OTHER LONG-TERM LIABILITIES 22. TRADE PAYABLES (€ thousands) (€ thousands) Value at Value at Value at Value at Change Change 12/31/2024 12/31/2024 12/31/2024 12/31/2024 Payables for business acquisitions 5,885 7,229 (1,344) Trade payables – Joint ventures 3,003 2,973 30 Other long-term debt 35,667 26,379 9,288 Trade payables – Related parties 22 493 (471) Trade payables – Third parties 374,075 355,489 18,586 Total 41,552 33,608 7,944 Total 377,100 358,955 18,145 Acquisition liabilities include the long-term portion of the contingent consideration (earn-out), determined based on income/economic estimates available at the end of The Group adheres to a credit agreement (reverse factoring or indirect factoring) based 2024, to be paid on acquisitions of companies and business units made in the United on which suppliers can transfer their credits with the Group to a financial institution STATEMENTS States, Spain, France and Germany, if certain sales and/or profitability targets are and receive early payment of their invoices. The Group does not eliminate the original reached. liabilities to which the agreement applies from its accounts insofar as no legal release CONSOLIDATED FINANCIAL has been obtained nor have any substantive changes been made to the original Other long-term debt shows an increase in the reporting period, explained mainly by liability as a result of the agreement. The agreement does not result in a significant the long-term portion of debt stemming mainly from the recognition of the purchase lengthening of the Group’s payment terms beyond the normal expirations established of €13,599 thousand in superbonus tax credits (not present on 31 December 2023). prior to adhering to the agreement or with the suppliers who do not adhere to the Refer to Note 7 “Other non-current assets” for further details. agreement. The Group, furthermore, may not postpone payment to the financial institution of its Lastly, long-term debt also includes the liabilities of Amplifon RE for the reinsurance trade payables and does not have to pay additional interest to the financial institution of loss & damage policies for €17,237 thousand (€16,544 thousand on 31 December on the amounts owed by the suppliers. The amounts factored by the suppliers are 2023) and the long-term portion of deferred payments to suppliers for the purchase of classified as trade payables as the nature and purpose of the financial liabilities are not fixed assets for € 3,906 thousand (€5,221 thousand on 31 December 2023). any different from those of the other trade payables. The trade payables which have yet to expire transferred to the factor by the suppliers amounted to €31,193 thousand The breakdown of long-term liabilities by the accounting method applied is shown on December 2024. REPORT below. ON OPERATIONS The average collection time on trade payables was around 110 days in 2024. (€ thousands) 12/31/2024 Amortized cost Fair value Net Equity Fair Value through P&L Payable for business acquisition 5,885 Other long-term debt 35,667 (€ thousands) 12/31/2023 Amortized cost Fair value Net Equity Fair Value through P&L Payable for business acquisition 3,652 3,577 AMPLIFON AT A GLANCE Other long-term debt 26,379 251 --- ANNUAL REPORT 2024 More in detail, the contract liabilities that should be extinguished over the next few 23. CONTRACT LIABILITIES years, resulting in the recognition of the revenue allocated, are shown below: (€ thousands) (€ thousands) 2029 and Value at 12/31/2024 Value at 12/31/2024 Change 2025 2026 2027 2028 beyond Contract liabilities – Short-term 122,914 120,043 2,871 Contract liabilities 123,112 73,518 43,834 23,581 12,635 Contract liabilities – Long-term 153,766 153,716 50 For a description of the performance obligations relating to goods and services Total 276,680 273,759 2,921 provided over time, please refer to Note 29 “Revenue from sales and services”. The contract liabilities refer to deferred income for goods and services provided to customers over time (e.g. after sales services, extended warranties, material rights, batteries). These are recognized in the income statement based on the level to which STATEMENTS the different contractual performance obligations have been satisfied. CONSOLIDATED FINANCIAL The changes in contract liabilities in the year are shown below: (€ thousands) Net value at 12/31/2023 273,759 Increase linked to customer contracts 47,948 Recognized revenues that were included in the opening balance (60,643) Business combinations 14,528 Currency translation differences and other net changes 1,088 REPORT Net value at 12/31/2024 276,680 ON OPERATIONS The revenue recognized in 2024 stemming from fulfilled contractual obligations, included in the opening balance of contract liabilities at January 1st, 2024, amounted to €60,643 thousand. AMPLIFON AT A GLANCE 252 --- ANNUAL REPORT 2024 24. OTHER PAYABLES Tax payables include: (i) €24,479 thousand in direct taxes; (ii) €10,073 thousand in withholding taxes; (iii) €15,278 thousand in VAT and other indirect taxes. (€ thousands) The €6,436 thousand provision for sales returns is calculated based on the best estimate of the liabilities for returns made through the direct channel. Value at 12/31/2024 Value at 12/31/2024 Change Other payables 175,085 163,133 11,952 The breakdown of other payables by the accounting method applied is shown below: Accrued expenses and deferred income 16,029 11,924 4,105 Sales returns - liability 6,346 6,044 302 (€ thousands) 12/31/2024 Total other payables 197,460 181,101 16,359 Amortized cost Fair value Net Equity Fair Value through P&L Tax payables 49,830 74,433 (24,603) Other debts 247,290 Payables for business acquisitions 11,510 9,554 1,956 Payables from business acquisitions 1,908 9,602 STATEMENTS Total 258,800 265,088 (6,288) CONSOLIDATED FINANCIAL The other payables comprise mainly: (i) €77,389 thousand relating to amounts owed to (€ thousands) 12/31/2023 the personnel; (ii) €52,479 thousand relating to commissions and bonuses payable to agents; (iii) €24,058 thousand relating to social security liabilities; (iv) €16,026 thousand Amortized cost Fair value Net Equity Fair Value through P&L relating to the short-term portion of the amount owed for the purchase of superbonus tax credits (which were not present on 31 December 2023, for further details refer Other debts 255,534 to Note 7 “Other non-current assets”), and (v) €5,029 thousand relating to customer Payables from business acquisitions 9,554 down-payments. Acquisition liabilities include the short-term portion of the contingent consideration (earn-out) to be paid long-term on acquisitions of companies and business units made in Germany, France, Belgium, Canada, the United States, and China if certain sales and/ or profit targets are reached. Acquisition liabilities include the fair value of the put and REPORT call options on the remaining minority interests in Medtechnica Ortophone Ltd (Israel). ON OPERATIONS These options are classified as Level 3 on the fair value hierarchy scale. AMPLIFON AT A GLANCE 253 --- ANNUAL REPORT 2024 25. PROVISIONS FOR RISKS AND 27. SHORT-TERM FINANCIAL DEBT CHARGES (CURRENT PORTION) (€ thousands) Value at 12/31/2024 Value at 12/31/2024 Change (€ thousands) Bank current accounts 2,615 58,287 (55,672) Short-term bank borrowings 121,552 88,012 33,540 Value at 12/31/2024 Value at 12/31/2024 Change Current portion of long-term debts 131,964 164,978 (33,014) Other provisions for risks 2,403 1,268 1,135 Payables to banks and other financing 256,131 311,277 (55,146) Total 2,403 1,268 1,135 Current portion of fees on loans (1,233) (1,073) (160) Short-term financial debt 15,571 208 15,363 The other provisions for risks and charges include mainly the potential liabilities for Financial accrued expenses and deferred STATEMENTS 7,049 6,001 1,048 costs allocated for restoring premises to the original condition when leases expire. income Total 277,518 316,413 (38,895) CONSOLIDATED FINANCIAL For current portions of medium-long term loans please see Note 17 “Financial 26. LIABILITIES FOR EMPLOYEES’ Liabilities”. BENEFITS (CURRENT PORTION) The €7,049 thousand in financial accruals and deferred income relates primarily to the interest owed on the Eurobond 2020-2027 (€3,474 thousand) and other medium/long term loans (€1,929 thousand). (€ thousands) Value at 12/31/2024 Value at 12/31/2024 Change Other provisions for risks – current portion 4,094 3,713 381 REPORT Total 4,094 3,713 381 ON OPERATIONS The amount refers to the current portion of liabilities for the employee benefits described in Note 20 “Liabilities for employees’ benefits (medium/long-term”). AMPLIFON AT A GLANCE 254 --- ANNUAL REPORT 2024 28. DEFERRED TAX ASSET AND LIABILITIES The net balance of deferred tax assets and liabilities on 31 December 2024 can be broken down as follows: (€ thousands) Value at 12/31/2024 Value at 12/31/2024 Change Deferred tax assets 77,332 82,701 (5,369) Deferred tax liabilities (99,493) (98,451) (1,042) Net position (22,161) (15,750) (6,411) The net change in deferred tax assets and liabilities is detailed below: STATEMENTS (€ thousands) CONSOLIDATED FINANCIAL Exchange differences Balance as at 12/31/2023 Recognized in P&L Recognized in net equity Business combinations Balance as at 12/31/2024 and other changes Deferred tax on severance indemnity and pension funds 4,084 (147) 489 - 72 4,498 Deferred tax on tax losses carried forward 2,186 2,722 - 1 98 5,007 Deferred tax on inventory 12,460 (3,497) - - - 8,963 Deferred tax on tangibles, intangibles and goodwill (43,977) (3,130) - 325 1,090 (45,692) Deferred tax on trademarks and concessions (38,130) 7,028 - (6,452) 202 (37,352) Deferred tax on other provisions 9,919 2,682 - - (2,477) 10,124 REPORT Deferred tax on contract liabilities and contract costs 12,215 (2,334) - 1,250 133 11,264 ON OPERATIONS Deferred tax on leasing 5,066 620 - - 29 5,715 Substitute tax on the release of goodwill 6,400 (1,280) - - 5,120 Other deferred tax 14,027 (5,841) 2,221 44 (259) 10,192 Total (15,750) (3,177) 2,710 (4,832) (1,112) (22,161) AMPLIFON AT A GLANCE 255 --- ANNUAL REPORT 2024 Deferred tax assets on prior year tax losses carried forward are as follows: (€ thousands) Value at 12/31/2024 Value at 12/31/2024 Change Spain 308 - 308 Germany 954 1,085 (131) Israel 113 18 95 China 3,282 714 2,568 Argentina 316 - 316 Poland 34 - 34 STATEMENTS Portugal - 369 (369) Total 5,007 2,186 2,821 CONSOLIDATED FINANCIAL No deferred tax assets for the following prior year tax losses were recognized on 31 December 2024 as recoverability is not reasonably certain. (€ thousands) Deferred tax assets not recognized Prior year tax losses Rate in the consolidated financial Due date statements Canada 22,760 26.50% 6,031 7-20 years China 4,941 25.00% 1,235 2-3 years Colombia 4,634 35.00% 1,622 5-12 years REPORT India 8,876 26.00% 2,308 1-8 years ON OPERATIONS Mexico 6,287 30.00% 1,886 4-10 years Panama 6 25.00% 2 1 year UK 92,616 25.00% 23,154 - Hungary 611 9.00% 55 1-3 years Total 140,731 36,293 AMPLIFON AT A GLANCE 256 --- ANNUAL REPORT 2024 29. REVENUES FROM The main goods and services provided by the Amplifon Group in 2024, as well as the nature and terms of the performance obligations, are described below. SALES AND SERVICES Goods and services Nature and fulfillment terms Part of a single and inseparable performance obligation, The breakdown of the Group’s revenues by customer contracts is shown below. comprised of the hearing aid, fitting and personalization of the solution using computerized systems to satisfy Hearing aid and fitting each person’s needs. The Group recognized the relative (€ thousands) revenue when the fitting has been completed or at the FY 2024 FY 2023 Change end of the trial period, when provided. Batteries, cleaning kits, and other accessories. Revenues from sale of products 2,091,093 1,956,353 134,740 The Group recognizes the revenue relative to other Revenues from services 318,148 303,731 14,417 Other goods goods when the goods are transferred, which can happen at the time of sale (ex. batteries, cleaning kits Total revenues from sales and services 2,409,241 2,260,084 149,157 and other accessories) or over time. STATEMENTS Goods and services provided at a point in time 2,091,093 1,956,353 134,740 After sales services include: - Cleaning, regulation and revision of the hearing aid; Goods and services provided over time 318,148 303,731 14,417 CONSOLIDATED FINANCIAL - Periodic hearing tests; - Post – sales assistance; Total revenues from sales and services 2,409,241 2,260,084 149,157 After sales services The Group recognizes the revenue generated by after sales services over the life of the contract, generally 4-5 Consolidated revenues from sales and services amounted to €2,409,241 thousand in years. The amount of the revenue recognized is based on 2024, an increase of €149,157 thousand (+6.6%) compared to the prior year. the input method. Extended warranties are provided in addition to mandatory warranties that the supplier must provide. The increase against 2023 is explained for €76,186 thousand (+3.4%) by organic growth Extended warranties The Group recognizes the revenue from extended and for €82,594 thousand (+3.6%) by acquisitions, while the foreign exchange effect warranties in equal amounts over the duration of the contributed negatively for €9,623 thousand (-0.4%). The revenues from the Argentinian extension. subsidiary were impacted by the inflation accounting used in accordance with IAS 29 Material rights include, for example, discounts on future “Inflation Accounting”, which contributed positively to organic growth (+0.2%), but had purchases or loyalty points. The Group recognizes the no impact on the foreign exchange effect. Material rights revenue from material rights when the rights are REPORT exercised by the customer or when the probability that ON OPERATIONS the customer exercises the remaining rights is remote. Revenues from services rendered were €14,417 thousand higher and refer mainly to the deferred revenues for post-sales services which are recognised over time based on the extent to which the performance obligations have been satisfied. The deferred revenues for goods transferred and services rendered over time which will be realized in subsequent years and included in the short- and long-term contract For the breakdown of revenues by geographical area refer to Note 44 “Segment liabilities on 31 December 2024 are shown below: Information”. (€ thousands) 2029 and 2025 2026 2027 2028 beyond Revenues for goods and services provided over 123,112 73,518 43,834 23,581 12,635 time AMPLIFON Services rendered over time refer mainly to after-sales services, extended warranties, AT A GLANCE material rights and batteries (if delivered over time). 257 --- ANNUAL REPORT 2024 30. OPERATING COSTS The breakdown of “Personnel expenses – Points of sale” and “Other personnel expenses” is as follows: (€ thousands) FY 2024 FY 2023 Change (€ thousands) Cost of raw materials, consumables and supplies FY 2024 FY 2023 Change and change in inventories of raw materials, (369,786) (348,857) (20,929) consumables and supplies Wages and salaries (675,193) (617,899) (57,294) Personnel expenses – Points of sale (533,409) (506,617) (26,792) Performance stock grant (16,131) (30,283) (14,152) Commissions – Points of sale (128,803) (121,553) (7,250) Social contributions (137,189) (127,950) (9,239) Rental costs – Points of sale (13,408) (13,189) (219) Other personnel costs (35,489) (28,372) (7,117) Total (1,045,406) (990,216) (55,190) Total (864,002) (804,504) (59,498) STATEMENTS Other personnel expenses (330,593) (297,887) (32,706) Other rental costs (6,248) (2,747) (3,501) CONSOLIDATED FINANCIAL Other costs for services (472,346) (451,462) (20,884) Total other operating costs (809,187) (752,096) (57,091) Total operating costs (1,854,593) (1,742,312) (112,281) The operating costs incurred in 2024 include non-recurring expenses of €6,587 thousand, explained for €3,447 thousand by the second phase of the GAES integration, for €1,678 thousand, by the costs incurred to implement amendments to the Company’s Articles of Association, including relative to 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 €1,282 thousand, by the notional cost of the one-off assignment made by the REPORT shareholder Ampliter of 500,000 of its Amplifon shares to the Chief Executive Officer ON OPERATIONS and for €180 thousand by the Bay Audio integration. The lease and rental costs refer to leases not subject to IFRS 16 application (leases for low value assets, short-term leases, leases with variable payment terms). AMPLIFON AT A GLANCE 258 --- ANNUAL REPORT 2024 The staff headcount by geographic area is shown below: 12/31/2024 12/31/2023 Number Average Number Average Italy 824 804 785 767 France 1,619 1,620 1,601 1,621 Switzerland 318 319 317 312 Hungary 210 206 202 206 Germany 1,949 1,970 1,963 1,920 Spain 2,018 1,978 1,966 2,014 STATEMENTS Portugal 239 246 244 251 Belgium 207 206 208 216 CONSOLIDATED FINANCIAL The Netherlands 646 663 671 667 Poland 226 220 221 212 United Kingdom 268 286 302 311 Israel 163 170 179 187 Egypt 173 175 173 183 Total EMEA 8,860 8,863 8,832 8,867 USA and Canada 1,676 1,631 1,423 1,333 Argentina 158 155 150 142 Chile 201 198 186 174 REPORT Ecuador 119 116 109 100 ON OPERATIONS Panama 8 8 8 8 Colombia 115 111 107 93 Mexico 87 88 82 75 Uruguay 85 88 - - Total Americas 2,449 2,395 2,065 1,925 Australia 1,617 1,594 1,518 1,539 New Zealand 551 553 547 545 India 500 514 498 493 Singapore 13 13 13 13 China 1,080 1,034 906 630 Total Asia Pacific 3,761 3,708 3,482 3,220 AMPLIFON AT A GLANCE Total Group 15,070 14,966 14,379 14,012 259 --- ANNUAL REPORT 2024 31. OTHER INCOME AND COSTS The increase in impairment is mainly referred to the writedown of goodwill relating to the equity investment in Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH, The breakdown of the Group’s other income and costs is shown below. active in a sector not related directly to hearing aids. (€ thousands) FY 2024 FY 2023 Change Other income and costs 6,442 9,077 (2,635) Total 6,442 9,077 (2,635) Other income and costs amounted to €6,442 thousand in 2024 and relate primarily to a few deferred payments on acquisitions of companies and business units which are STATEMENTS not to be paid as the specific sales and/or profitability targets were not reached. CONSOLIDATED FINANCIAL 32. AMORTIZATION, DEPRECIATION AND IMPAIRMENT The breakdown of the Group’s amortization, depreciation and impairment is shown below. (€ thousands) REPORT FY 2024 FY 2023 Change ON OPERATIONS Amortization of intangible fixed assets (108,062) (93,448) (14,614) Depreciation of property, plant, and equipment (61,710) (54,391) (7,319) Depreciation of right-of-use assets (131,586) (119,292) (12,294) Amortization and depreciation (301,358) (267,131) (34,227) Impairment (2,918) (506) (2,412) Total (304,276) (267,637) (36,639) Amortization, depreciation, and impairment amounted to €304,276 thousand in 2024, an increase of €36,639 thousand against the comparison period. The change is explained primarily by higher investments in intangible assets, property, plant and equipment, and rights of use assets described in Note 4 “Intangible assets with a useful life”, Note 5 “Property, plant and equipment”, and Note 6 “Right-of-use assets”, AMPLIFON respectively. AT A GLANCE 260 --- ANNUAL REPORT 2024 The interest payable on leases recognized in accordance with lease accounting 33. FINANCIAL INCOME, EXPENSES, amounted to €19,138 thousand on 31 December 2024, higher than the €14,808 thousand recorded on 31 December 2023 due to the growth of the store network. AND VALUE ADJUSTMENTS TO Other financial income and charges amounted to €3,184 thousand on 31 December FINANCIAL ASSETS 2024 compared to €5,966 thousand on 31 December 2023. The change is attributable mainly to higher charges for factoring and other working capital management The breakdown of the Group’s financial income, expenses and value adjustments to transactions, more than offset by financial income derived from recognition of financial assets is shown below. 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). (€ thousands) FY 2024 FY 2023 Change The change in “Gains/(losses) on financial assets at fair value” is attributable mainly to the impact of inflation accounting on the Argentinian subsidiary. In 2023 the Group Proportionate share of the results of associated STATEMENTS benefitted from significant financial income linked to revaluation at fair value of an companies valued at equity and gains/(losses) 225 555 (330) investment liquidated at the end of the year. on disposals of equity investments CONSOLIDATED FINANCIAL Interest income on bank accounts 3,878 2,077 1,801 Interest expenses on short and long-term bank loans (38,618) (29,814) (8,804) Interest income and expenses (34,740) (27,737) (7,003) INTEREST RATE RISK - SENSITIVITY ANALYSIS Interest expenses on lease liabilities (19,138) (14,808) (4,330) The Amplifon Group’s exposure to changes in interest rates is mitigated significantly Other financial income and charges (3,184) (5,966) 2,782 by the fact that a large part of the medium/long-term debt is fixed rate as a result of Exchange rate gains and inflation accounting 32,089 21,469 10,620 interest rate hedges or because the debt is fixed rate. Exchange rate losses and inflation accounting (34,736) (24,641) (10,095) More in detail: Gains/(losses) on financial assets at fair value – (550) 1,663 (2.213) non-hedge accounting derivatives • as a result of hedges, the average rate on the loans granted by Unicredit for €20 Exchange rate differences and gains/(losses) (3,197) (1,509) (1,688) REPORT on financial assets at fair value million, BNL for €7.1 million, CDP/MPS for €6.8 million, Credit Agricole for €11.4 ON OPERATIONS million, and the refinancing of the GAES acquisition for €142.8 million, Mediobanca Total (60,034) (49,465) (10,569) for €75 million, Unicredit/CDP for €100 million, Credit Agricole/SACE for €50 million, is 2.289%; Interest payable on financial indebtedness, net the higher interest received on liquidity • the bond issued in February 2020 has a fixed rate of 1.125%; investments, amounted to €34,740 thousand on 31 December 2024, versus €27,737 • the €75 million EIB loan has a fixed rate of 3.635%; thousand on 31 December 2023. The increase is attributable mainly to the refinancing • the €50 million EIB loan has a fixed rate of 3.902%; at current market conditions of the portions of loans mainly subscribed in 2020 and • the €100 million Unicredit/CDP loan has a fixed rate of 3.281%. reaching maturity, as well as the increase in market rates compared to the 2023 average. AMPLIFON AT A GLANCE 261 --- ANNUAL REPORT 2024 The impact on the income statement of plausible changes in interest rates, applied to CURRENCY RISK - SENSITIVITY ANALYSIS the consolidated figures on 31 December 2024, is shown below. The exchange risk stemming from financial transactions is hedged by derivatives; for operational transactions, the risk is covered, when possible, by using a natural hedge (€ thousands) which aims to balance active and passive positions for each company by maintaining Increase/decrease Impact on currency deposits which can be used to cover any differences which exceed €1 million. Amount at 2024 Note in interest rates profit before 12/31/2024 (in %) tax Given the management of foreign exchange risk described in Note 42, “Financial risk Current assets management”, the residual currency risk on receivables, payables and future revenue Current bank accounts and short-term streams which has not been hedged is not significant. 14 287,111 1% 2,871 bank deposits Non current liabilities Medium-long term bank loans with (60,000) 1% (600) variable interest rate STATEMENTS Current liabilities Bank current accounts 27 (2,616) 1% (26) CONSOLIDATED FINANCIAL Short-term bank borrowings 27 (121,552) 1% (1,216) Current portion of medium-long term (37,925) 1% (379) bank loans with variable interest rate Total impact on profit before tax 650 (€ thousands) Increase/decrease Impact on Amount at 2024 Note in interest rates profit before 12/31/2024 (in %) tax Current assets REPORT Current bank accounts and short-term 14 287,111 -1% (2,871) bank deposits ON OPERATIONS Non current liabilities Medium-long term bank loans with (60,000) -1% 600 variable interest rate Current liabilities Bank current accounts 27 (2,616) -1% 26 Short-term bank borrowings 27 (121,552) -1% 1,216 Current portion of medium-long term (37,925) -1% 379 bank loans with variable interest rate Total impact on profit before tax (650) AMPLIFON AT A GLANCE 262 --- ANNUAL REPORT 2024 34. INCOME TAXES The breakdown of the Group’s income taxes is shown below. (€ thousands) FY 2024 FY 2023 Change Current income tax (48,033) (61,626) 13,593 Deferred income tax (3,177) 6,904 (10,081) Total (51,210) (54,722) 3,512 (€ thousands) STATEMENTS FY 2024 FY 2023 Change Profit (loss) before tax 196,780 209,747 (12,967) CONSOLIDATED FINANCIAL Tax for the year (51,210) (54,722) 3,512 Tax rate -26.0% -26.1% 0.1% The following table reconciles tax recognized in the consolidated financial statements to theoretical tax charge calculated on the basis of Italy’s current tax rates. (€ thousands) December December 2024 % 2023 % Tax effect Tax effect REPORT Reconciliation with the effective tax rate: ON OPERATIONS 51,210 54,722 Effective tax/effective tax rate 26.0% 26.1% Non-recognition of deferred taxes on the year’s losses and earnings which were not taxed due to carried (3,147) -1.6% (1,763) -0.8% forward tax losses. Effect of companies taxed in countries other than Italy (520) -0.3% (1,508) -0.7% Deferred tax adjustments 1,857 0.9% 5,062 2.4% and other one-off adjustments Non-deductible expense net of non-taxable income 4,180 2.1% (626) -0.3% Effective tax rate net of IRAP and CVAE 53,580 27.2% 55,886 26.6% IRAP, CVAE and other taxes not tied to income tax (6,353) -3.2% (5,547) -2.6% Effective tax/theoretical tax rate 47,227 24.0% 50,339 24.0% The Group tax rate is in 2024 equal to 26% compared to 26.1% from last year. AMPLIFON AT A GLANCE 263 --- ANNUAL REPORT 2024 35. PERFORMANCE STOCK GRANT position of the same employee and/or associate belongs to, in the context of the Company’s banding system, subject to possible review on an annual basis; In the Amplifon Group as of 2024 there were two plans of Performance Stock Grant: - Amplifon Extraordinary Award Plan (AEA) Beneficiaries: the employees and the self- plan 2019-2025 and plan 2023-2028 described below. employees of a Group Company, identified based on retention, promotability and extraordinary recognition criteria. As far as the 2014-2021 Plan is concerned all rights existing as at 31 December 2023 - relating to the allocation of 2 May 2018 - were exercised during 2024. • With reference to all beneficiaries of the plan, unless otherwise provided elsewhere Below are the details: in these rules, the assigned rights granted will vest (the “vested rights”) provided that as of the date falling on the last day of the aggregate reference period, the beneficiary is an employee or a self-employee of a Group Company and no notice period is under way. nd A) Stock grant 2 May 2018 • With regard to the Long-Term Incentive Plan (LTI) beneficiaries, the vesting of the assigned rights is also subject to the achievement of the business objectives indicated in the Letter of Assignment of the Rights; ND STATEMENTS STOCK GRANT 2 MAY 2018 – GENERAL RULES • The shares corresponding to the vested rights shall be awarded to the beneficiary within 90 business days from the date of the notice of vesting of the assigned FY 2024 FY 2023 CONSOLIDATED FINANCIAL rights, subject to the implementation (also by the beneficiary) of all the fulfilments Market Price Market Price (including those of accounting and/or administrative nature) relating thereto. No. of rights No. of rights (Euro) (Euro) • The assignments relating to the Stock Grant Plan 2019-2025 do not distinguish st Rights at 1 January 81,915 31.34 505,055 27.82 between the different allocations under French Law No. 2015-990 of 6 August 2015 Rights granted in the period - - - - (the so-called Macron Law). Upside rights accrued - - - - upon reaching business goals Below are reported the details of the cycles of assignment of the Stock Grant plan (Rights converted into 2019-2025 currently in place: 81,915 31.54 (*) 417,940 29.23 (*) shares during the period) (Rights cancelled during the period) - - 5,200 - rd A) Stock Grant 3 May 2021 st Rights at 31 December - - 81,915 31.34 REPORT (*) Weighted average market price at the exercises. RD STOCK GRANT 3 MAY 2021 – GENERAL RULES ON OPERATIONS FY 2024 FY 2023 Market Price Market Price GENERAL FEATURES OF THE No. of rights No. of rights (Euro) (Euro) st Rights at 1 January 322,033 31.34 332,433 27.82 STOCK GRANT PLAN 2019-2025 Rights granted in the period - - - - th On May 7 2019 the Board of Directors of the Parent Company – as resolved by the Upside rights accrued - - - - th ordinary Shareholders’ Meeting held on 17 April 2019 and heard the opinion of the upon reaching business goals Remuneration and Appointments Committee – has approved the 2019 stock grant (Rights cancelled due to only partial 7,714 - achievement of business goals) assignment in relation to the Stock Grant Plan 2019 – 2025 with the following general (Rights converted into characteristics: 313,563 32.29 (*) - - shares during the period) (Rights cancelled during the period) 756 - 10,400 - • The Stock Grant Plan 2019-2025 provides for different guidelines according to the AMPLIFON st category the beneficiaries belong to: AT A GLANCE Rights at 31 December - - 322,033 31.34 - Long-Term Incentive Plan (LTI) Beneficiaries: the employees and the self-employees, (*) Weighted average market price at the exercises. of a Group Company – identified by virtue of the band to which the organizational 264 --- ANNUAL REPORT 2024 th th B) Stock Grant 28 October 2021 D) Stock Grant 5 May 2022 TH TH STOCK GRANT 28 OCTOBER 2021 – GENERAL RULES STOCK GRANT 5 MAY 2022 – GENERAL RULES FY 2024 FY 2023 FY 2024 FY 2023 Market Price Market Price Market Price Market Price No. of rights No. of rights No. of rights No. of rights (Euro) (Euro) (Euro) (Euro) st st Rights at 1 January 40,100 31.34 45,800 27.82 Rights at 1 January 373,550 31.34 406,050 27.82 Rights granted in the period - - - - Rights granted in the period - - - - Upside rights accrued Upside rights accrued upon reaching - - - - - - - - upon reaching business goals business goals (Rights cancelled due to only partial (Rights converted into shares during the 379 - - - - - achievement of business goals) period) STATEMENTS (Rights converted into (Rights cancelled during the period) 9,500 - 32,500 - 39,721 32.29 (*) - - shares during the period) st Rights at 31 December 364,050 24.85 373,550 31.34 CONSOLIDATED FINANCIAL (Rights cancelled during the period) - - 5,700 - st Rights at 31 December - - 40,100 31.34 (*) Weighted average market price at the exercises. th th C) Stock Grant 17 December 2021 E) Stock Grant 27 October 2022 TH TH STOCK GRANT 17 DECEMBER 2021 – GENERAL RULES STOCK GRANT 27 OCTOBER 2022 – GENERAL RULES FY 2024 FY 2023 FY 2024 FY 2023 REPORT Market Price Market Price Market Price Market Price No. of rights No. of rights No. of rights No. of rights (Euro) (Euro) (Euro) (Euro) ON OPERATIONS st st Rights at 1 January 1,000 31.34 1,000 27.82 Rights at 1 January 80,700 31.34 89,700 27.82 Rights granted in the period - - - - Rights granted in the period - - - - Upside rights accrued upon reaching Upside rights accrued upon reaching - - - - - - - - business goals business goals (Rights converted into shares during the (Rights converted into shares during the 1,000 32.29 (*) - - - - - period) period) (Rights cancelled during the period) - - - (Rights cancelled during the period) 14,500 - 9,000 - st st Rights at 31 December - - 1,000 31.34 Rights at 31 December 66,200 24.85 80,700 31.34 (*) Weighted average market price at the exercises. AMPLIFON AT A GLANCE 265 --- ANNUAL REPORT 2024 th F) Stock Grant 28 November 2022 With regard to the Long-Term Incentive Plan (LTI) beneficiaries, the vesting of the assigned rights is also subject to the achievement of the business objectives indicated in the Letter of Assignment of the Rights: TH STOCK GRANT 28 NOVEMBER 2022 – GENERAL RULES • The shares corresponding to the vested rights shall be awarded to the beneficiary FY 2024 FY 2023 within 90 business days from the date of the notice of vesting of the assigned Market Price Market Price rights, subject to the implementation (also by the beneficiary) of all the fulfilments No. of rights No. of rights (Euro) (Euro) (including those of accounting and/or administrative nature) relating thereto. st Rights at 1 January 8,400 31.34 8,400 27.82 • The assignments relating to the Stock Grant Plan 2023-2028 do not distinguish Rights granted in the period - - - - between the different allocations under French Law No. 2015-990 of 6 August 2015 (the so-called Macron Law). Upside rights accrued - - - - upon reaching business goals (Rights converted into Below are reported the details of the cycles of assignment of the Stock Grant Plan 2023- - - - - shares during the period) 2028 that took place in the year 2024: STATEMENTS (Rights cancelled during the period) 1,000 - - - st Rights at 31 December 7,400 24.85 8,400 31.34 CONSOLIDATED FINANCIAL rd A) Stock Grant 3 May 2023 RD STOCK GRANT 3 MAY 2023 – GENERAL RULES GENERAL CHARACTERISTICS OF THE FY 2024 FY 2023 STOCK GRANT PLAN 2023-2028 Market Price Market Price No. of rights No. of rights (Euro) (Euro) nd On May 2 2023 the Board of Directors of the Parent Company – as resolved by the ordinary st th Rights at 1 January 490,300 31.34 - - Shareholders’ Meeting held on 21 April 2023 and heard the opinion of the Remuneration Rights granted in the period - - 517,700 33.12 and Appointments Committee – has approved the 2023 stock grant assignment in relation Upside rights accrued to the Stock Grant Plan 2023 – 2028 with the following general characteristics: - - - - upon reaching business goals REPORT (Rights converted into • The Stock Grant Plan 2023-2028 provides for different guidelines according to the - - - - shares during the period) ON OPERATIONS category the beneficiaries belong to: (Rights cancelled during the period) 17,297 - 27,400 - - Long-Term Incentive Plan (LTI) beneficiaries: employees identified by virtue of the st Rights at 31 December 473,003 24.85 490,300 31.34 band to which the organizational position belongs, within the company’s banding system, subject to possible revision on an annual basis. - Amplifon Extraordinary Award (AEA) Plan Beneficiaries: refers to employees identified on the basis of retention, promotability and extraordinary recognition. • With reference to all beneficiaries of the plan, unless otherwise provided elsewhere in these rules, the assigned rights granted will vest (the “vested rights”) provided that as of the date falling on the last day of the aggregate reference period, the beneficiary is an employee or a self-employee of a Group Company. AMPLIFON AT A GLANCE 266 --- ANNUAL REPORT 2024 st th B) Stock Grant 31 October 2023 D) Stock Grant 7 May 2024 The assumptions adopted in the determination of fair value are as follows: ST STOCK GRANT 31 OCTOBER 2023 – GENERAL RULES FY 2024 FY 2023 ASSIGNMENT ACCORDING TO GENERAL RULES Market Price Market Price No. of rights No. of rights Model used Binomial Tree (Cox-Ross-Rubinstein method) (Euro) (Euro) st Rights at 1 January 73,900 31.34 - - Price at grant date 33.85 € Rights granted in the period - - 73,900 25.38 KPI - € Upside rights accrued upon reaching - - - - Exercise price 0.00 business goals (Rights converted into shares during the Volatiliy 33.51% - - - - period) Risk.free interest rate 3.038% STATEMENTS (Rights cancelled during the period) 8,333 - -- - Maturity (in years) 3 st Rights at 31 December 65,567 24.85 73,900 31.34 The date of approval by the Board of the draft CONSOLIDATED FINANCIAL Vesting date Consolidated Financial Statements as at 31.12.2026 Expected dividend yield 0.87% th C) Stock Grant 13 November 2023 31.46 € Fair value TH STOCK GRANT 13 NOVEMBER 2023 – GENERAL RULES FY 2024 FY 2023 TH STOCK GRANT 7 MAY 2024 – GENERAL RULES Market Price Market Price No. of rights No. of rights FY 2024 FY 2023 (Euro) (Euro) st Market Price Market Price Rights at 1 January 23,900 31.34 - - No. of rights No. of rights (Euro) (Euro) Rights granted in the period - - 23,900 26.96 REPORT st Rights at 1 January - - - - Upside rights accrued - - - - ON OPERATIONS upon reaching business goals Rights granted in the period 551,800 33.00 - - (Rights converted into Upside rights accrued upon reaching - - - - - - - - shares during the period) business goals (Rights cancelled during the period) - - - - (Rights converted into shares during the - - - - period) st Rights at 31 December 23,900 24.85 23,900 31.34 (Rights cancelled during the period) 17,000 - - - st Rights at 31 December 534,800 - - - AMPLIFON AT A GLANCE 267 --- ANNUAL REPORT 2024 st E) Stock Grant 31 October 2024 The assumptions adopted in the determination of fair value are as follows ASSIGNMENT ACCORDING TO GENERAL RULES Model used Binomial Tree (Cox-Ross-Rubinstein method) Price at grant date 25.70 € KPI - € Exercise price 0.00 Volatiliy 32.54% Risk.free interest rate 2.365% STATEMENTS Maturity (in years) 3 The date of approval by the Board of the draft CONSOLIDATED FINANCIAL Vesting date Consolidated Financial Statements as at 31.12.2026 Expected dividend yield 0.87% 26.23 € Fair value ST STOCK GRANT 31 OCTOBER 2024 – GENERAL RULES FY 2024 FY 2023 Market Price Market Price No. of rights No. of rights (Euro) (Euro) st Rights at 1 January - - - - REPORT Rights granted in the period 128,350 25.95 - - ON OPERATIONS Upside rights accrued - - - - upon reaching business goals (Rights converted into - - - - shares during the period) (Rights cancelled during the period) - - - - st Rights at 31 December 128,350 24.85 - - AMPLIFON AT A GLANCE 268 --- ANNUAL REPORT 2024 st GENERAL FEATURES OF THE SUSTAINABLE A) Assignment of 31 May 2022 VALUE SHARING PLAN 2022-2027 ST ASSIGNMENT OF 31 MAY 2022 The Board of Directors of Amplifon S.p.A. of May 3, 2022, on the basis of the resolution FY 2024 FY 2023 of the Ordinary Shareholders’ Meeting of April 22, 2022 and after consulting the Market Price Market Price Remuneration and Appointments Committee, approved the Sustainable Value Sharing No. of rights No. of rights (Euro) (Euro) Plan 2022-2027. st Rights at 1 January 48,000 31.34 48,000 27.82 The Co-investment Scheme, originally intended exclusively for the Chief Executive Rights granted in the period - - - - Officer/General Manager of the Company, was subsequently amended by the Upside rights accrued - - - - Shareholders’ Meeting of April 21, 2023 and approved by the Board of Directors of upon reaching business goals Amplifon S.p.A. on May 2, 2023, so that it could also be allocated to Executives with (Rights converted into - - - - shares during the period) Strategic Responsibilities and to some key Group resources (beneficiaries). STATEMENTS (Rights cancelled during the period) - - - - The Scheme is a composite incentive instrument that achieves its effects through two st Rights at 31 December 48,000 24.85 48,000 31.34 CONSOLIDATED FINANCIAL distinct phases, of which the second is only possible and depends on the development of the first (respectively, “Phase A” and “Phase B”). Phase A: the Target MBO achieved and hypothetically due to the beneficiaries under the th MBO Plan applicable in the previous year is not disbursed and instead of the Target B) Assignment of 29 May 2023 MBO the beneficiaries obtain a certain number of rights (the “Co-invested Rights”) that will allow them to receive shares at the end of the vesting period of Phase B referred to TH ASSIGNMENT OF 29 MAY 2023 below, or at an earlier time in the event that Phase B does not reach maturity. Phase B: if in a given year the beneficiaries receive Co-invested Rights by virtue of FY 2024 FY 2023 the mechanism described above, the beneficiaries will participate in an additional Market Price Market Price and separate incentive instrument based on financial instruments, under which the No. of rights No. of rights (Euro) (Euro) Company assigns additional rights, equal in number to the Co-invested Rights, which st Rights at 1 January 111,520 31.34 - - will allow the beneficiaries to receive shares provided that certain objectives are REPORT achieved by the end of a vesting period of performance linked to the generation of Rights granted in the period - - 122,620 33.35 ON OPERATIONS value and sustainable success of the Group (the “Matched Rights”). Upside rights accrued - - - - upon reaching business goals The details of the allocations of the Sustainable Value Sharing Plan 2022-2027, currently (Rights converted into - - 11,100 35.24 shares during the period) in place, including the new allocations that took place in the year 2024, are listed below: (Rights cancelled during the period) - - - - st Rights at 31 December 111,520 24.85 111,520 31.34 AMPLIFON AT A GLANCE 269 --- ANNUAL REPORT 2024 th st C) Assignment of 7 May 2024 D) Assignment of 31 October 2024 The assumptions adopted in the determination of fair value are as follows: The assumptions adopted in the determination of fair value are as follows: PLAN A PLAN B PLAN A PLAN B Binomial Tree Binomial Tree Binomial Tree Binomial Tree Model used Model used (Cox-Ross-Rubinstein method) (Cox-Ross-Rubinstein method) (Cox-Ross-Rubinstein method) (Cox-Ross-Rubinstein method) FV 31.46 € 24.83 € FV 26.23 € 18.73 € KPI - ESG/TSR KPI - ESG/TSR Exercise price 0,00 - Exercise price 0.00 - Volatiliy 33.51% 33.51% Volatiliy 32.54% 32.54% Risk.free interest rate 3.038% 3.038% Risk.free interest rate 2.365% 2.365% STATEMENTS Maturity (in years) 3 3 Maturity (in years) 3 3 The date of approval by the Board The date of approval by the Board The date of approval by the Board The date of approval by the Board CONSOLIDATED FINANCIAL Vesting date of the draft Consolidated Financial of the draft Consolidated Financial Vesting date of the draft Consolidated Financial of the draft Consolidated Financial Statements as at 31.12.2026 Statements as at 31.12.2026 Statements as at 31.12.2026 Statements as at 31.12.2026 Expected dividend yield 0.87% 0.87% Expected dividend yield 0.87% 0.87% TH ST ASSIGNMENT OF 7 MAY 2024 ASSIGNMENT OF 31 OCTOBER 2024 FY 2024 FY 2023 FY 2024 FY 2023 Market Price Market Price Market Price Market Price No. of rights No. of rights No. of rights No. of rights (Euro) (Euro) (Euro) (Euro) st st Rights at 1 January - - - - Rights at 1 January - - - - REPORT Rights granted in the period 109,200 33.00 - - Rights granted in the period 4,800 25.95 - - ON OPERATIONS Upside rights accrued Upside rights accrued - - - - - - - - upon reaching business goals upon reaching business goals (Rights converted into (Rights converted into 8,100 33.82 - - - - - - shares during the period) shares during the period) (Rights cancelled during the period) - - - - (Rights cancelled during the period) - - - - st st Rights at 31 December 101,100 24.85 - - Rights at 31 December 4,800 24.85 - - AMPLIFON AT A GLANCE 270 --- ANNUAL REPORT 2024 RESIDUAL LIFE OF STOCK GRANT, SUSTAINABLE VALUE SHARING PLAN AND OTHERS “SHARES BASED PAYMENTS” GRANTED RIGHTS ASSIGNED TILL 31 DECEMBER 2024 Vesting Exercise Average residual Plan Assignment date Within 1 year 1-5 years 5-10 years Total N, of rights useful life 05/05/2022 364,050 364,050 Stock Grant Plan 2019 - 2025 27/10/2022 66,200 66,200 28/11/2022 7,400 7,400 03/05/2023 473,003 473,003 Stock Grant Plan 2023 - 2028 STATEMENTS 28/10/2023 65,567 65,567 CONSOLIDATED FINANCIAL 13/11/2023 23,900 23,900 07/05/2024 534,800 534,800 31/10/2024 128,350 128,350 31/05/2022 48,000 48,000 Sustainable Value Sharing Plan 2022-2027 29/05/2023 111,520 111,520 07/05/2024 101,100 101,100 31/10/2024 4,800 4,800 Total 437,650 1,491,040 - 1,928,690 The imputed cost for the period for the Stock Grants and the Sustainable Value Sharing Plans amounted to Euro 16,137 thousand and includes Euro 1,282 thousand related to REPORT the one-off assignment of shares by the shareholder Ampliter S.r.l in favour of Amplifon’s Chief Executive Officer, classified as a non-recurring charge, and not related to the ON OPERATIONS performance stock grant and Sustainable Value Sharing Plan described in this note. AMPLIFON AT A GLANCE 271 --- ANNUAL REPORT 2024 36. SUBSIDIARIES WITH RELEVANT The income statement and statement of financial position highlights of the Dutch joint venture Comfoor BV, accounted for using the equity method, are provided below. The company is active in the hearing protection sector. MINORITY INTERESTS, JOINT VENTURES (€ thousands) AND ASSOCIATE COMPANIES 12/31/2024 12/31/2023 The following table shows the main income statement and statement of financial Non-current assets 298 position figures of the subsidiaries with relevant minority interests (as a reference 863 please refer to the Scope of Consolidation annex). The figures are shown before Current assets 6,027 5,911 intragroup eliminations. Non-current liabilities 263 358 Current liabilities 1,740 1,706 (€ thousands) Revenues 11,688 11,208 STATEMENTS 12/31/2024 12/31/2023 Amortization, depreciation and impairment (384) (318) CONSOLIDATED FINANCIAL Interest income and expenses (5) - Non-current assets 15,016 159 Net profit (loss) 1,099 442 Current assets 4,217 1,627 Net financial position 2,221 2,377 Non-current liabilities 1,471 71 Cash flows 721 156 Current liabilities 6,838 805 Revenues 14,040 2,796 A reconciliation of the economic-financial figures with the carrying amount of the equity Net profit (loss) for the year (344) 408 investment in the joint venture recognized in the consolidated financial statements is Dividends paid to minorities 137 125 provided below: Net financial positions 476 749 Cash flows (1,199) (514) (€ thousands) REPORT Value at 12/31/2024 Value at 12/31/2023 ON OPERATIONS Net equity of joint ventures 4,859 5,015 % held 50% 50% Book value 2,430 2,508 AMPLIFON AT A GLANCE 272 --- ANNUAL REPORT 2024 37. NON-RECURRING SIGNIFICANT EVENTS The following table shows the impact of the non-recurring transactions referred to in the financial statements above, which relate to five main streams including: • the costs relating to the second phase of the GAES integration; • the costs incurred to define and implement amendments to the Articles of Association including relative to the enhanced voting rights • the notional cost of the Amplifon shares assigned una tantum by the shareholder Ampliter to the Chief Executive Officer; • the costs relating to the Bay Audio integration; STATEMENTS • the writedown of goodwill relating to the equity investment in Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH, active in a sector not related directly to CONSOLIDATED FINANCIAL hearing aids, recognized in accordance with IAS 36. (€ thousands) FY 2024 FY 2023 the costs relating to the second phase of the GAES (3,447) (1,931) integration the costs incurred to define and implement amendments to the Articles of Association including (1,678) - Operating relative to the enhanced voting rights costs the notional cost of the Amplifon shares assigned in 2023 (1,282) (12,433) by the shareholder Ampliter to the Chief Executive Officer REPORT the costs relating to the Bay Audio integration (180) (374) ON OPERATIONS EBITDA (6,587) (14,738) Cost relative to the writedown of goodwill relating to the equity investment in Pilot Blankenfelde Medizinisch-Elektronische Geräte GmbH, (1,558) - active in a sector not related directly to hearing aids. EBIT (8,145) (14,738) Profit (loss) before tax (8,145) (14,738) Impact of the above items on the tax burden 1,772 4,087 Group net profit (loss) (6,373) (10,651) AMPLIFON AT A GLANCE 273 --- ANNUAL REPORT 2024 38. EARNINGS (LOSSES) PER SHARE DILUTED EPS Diluted earnings per share is obtained by dividing the net income for the year BASIC EPS attributable to ordinary shareholders of the parent company by the weighted-average number of shares outstanding during the year adjusted by the diluting effects of Basic earnings per share is obtained by dividing the net profit for the year attributable potential shares. In the calculation of shares outstanding, purchases and sales of to the ordinary shareholders of the parent company by the weighted average number treasury shares are considered as cancellations and issues of shares, respectively. of shares outstanding in the year, considering purchases and disposals of treasury shares as cancellations and issues of shares respectively. The ‘potential ordinary share’ categories refer to the possible conversion of Group employees’ stock options. The calculation of the average number of outstanding Earnings per share is determined as follows: potential shares is based on the average fair value of shares for the period; stock options and stock grants are excluded from this calculation as they have anti-dilutive effects. (€ thousands) STATEMENTS Earnings per share FY 2024 FY 2023 (€ thousands) CONSOLIDATED FINANCIAL Net profit (loss) attributable to ordinary 145,374 155,139 Weighted average diluted number of shares outstanding FY 2024 FY 2023 shareholders (€ thousand) Average number of shares outstanding in the year 225,791,949 223,912,788 Average number of shares outstanding in the year 225,791,949 223,912,788 Average earnings per share (€ per share) 0,64384 0.69285 Weighted average of potential and diluting ordinary shares 596,671 1,549,870 Weighted average of shares potentially subject to options in the 226,388,620 225,462,658 period The diluted earnings per share is determined as follows: (€ thousands) REPORT Diluted earnings per share FY 2024 FY 2023 ON OPERATIONS Net profit attributable to ordinary shareholders (€ thousands) 145,374 155,139 Average diluted number of outstanding shares 226,388,620 225,462,658 Average diluted earnings per share (€) 0,64214 0.68809 AMPLIFON AT A GLANCE 274 --- ANNUAL REPORT 2024 39. TRANSACTIONS WITH PARENT COMPANIES AND 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. (42.01% of share capital on 31 December 2024), which is held by Amplifin S.r.l., controlled 88% by Susan Carol Holland. Thanks to the enhanced voting rights, on 31 December 2024 Ampliter S.r.l. has 59.08% of the voting rights. In accordance with CONSOB Regulation n. 17221 of 12 March 2010, on 3 November 2010, Amplifon S.p.A.’s Board of Directors, after receiving a favorable opinion from the Committee of Independent Directors, adopted the regulation relative to the procedures for and obligations inherent in related party transactions (“Regulation for Related Party Transactions”) which has been updated on several occasions. The current Regulation for Related Party Transactions was approved by the Board of Directors on 29 April 2021 and took effect on 1 July 2021. Other 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. STATEMENTS The following table details transactions with related parties. CONSOLIDATED FINANCIAL PARENT COMPANY AND OTHER RELATED PARTIES (€ thousands) 12/31/2024 FY 2024 Interest income Trade receivables Trade payables Revenues from sales and services Operating costs and expenses Amplifin S.r.l. 14 - - 4 - Total – Parent Company 14 - - 4 - Comfoor BV (Netherland) 40 (3,003) 40 (3,187) - Ruti Levinson Institute Ltd (Israel) 40 - 91 - - REPORT Afik - Test Diagnosis & Hearing Aids Ltd (Israel) 43 - 394 - 1 ON OPERATIONS Total – Associated companies 123 (3,003) 525 (3,187) 1 Total related parties 137 (3,003) 525 (3,183) 1 Total as per financial statement 226,754 (377,100) 2,409,241 (1,854,593) (34,740) % of financial statement total 0.06% 0.80% 0.02% 0.17% 0.00% The trade payables and operating costs refer mainly to commercial transactions with Comfoor BV, a joint venture from which hearing protection devices are purchased and then distributed in Group stores. The lease for the Milan headquarters (leased to Amplifon by the parent company Amplifin) is recognized under right-of-use depreciation for €1,823 thousand, interest payable on leases for €456 thousand, lease liabilities for €10,269 thousand, and right-of-use assets for €9,115 thousand. AMPLIFON AT A GLANCE 275 --- ANNUAL REPORT 2024 The total remuneration of Group Directors, members of the Board of Statutory Auditors and Key Managers amounted to €23,182 thousand in the reporting period and is broken down as follows (in thousands of euros): REMUNERATION PAID TO MEMBERS OF THE BOARD OF DIRECTORS, MEMBERS OF THE BOARD OF STATUTORY AUDITORS, THE GENERAL MANAGER AND OTHER KEY MANAGERS OF THE GROUP Variable non-equity (€ thousands) Remuneration Severance Remuneration Bonuses Non- Fair Value indemnities Period of which the Fixed for Profit Other Name and Surname Office Expiry of Office and other monetary Total Equity and non- TOTAL Office was held Remuneration participation Sharing Remuneration incentives benefits Remuneration competition in Committees agreements Chairman 01/01/2024-12/31/2024 approval of 2024 financial statements 300 - - - 7 - 307 - - 307 Susan Carol Holland Chief Executive 01/01/2024-12/31/2024 approval of 2024 financial statements 400 - - - - - 400 - - 400 Officer Enrico Vita General Manager Permanent 1,109 - 1,260* - 40 - 2,410 2,935 - 5,345 Independent (1) 01/01/2024-12/31/2024 approval of 2024 financial statements 65 35 - - - - 100 - - 100 Maurizio Costa Director Independent 2) 01/01/2024-12/31/2024 approval of 2024 financial statements 65 40 - - - - 105 - - 105 Laura Donnini Director STATEMENTS Independent (3) 01/01/2024-12/31/2024 approval of 2024 financial statements 65 20 - - - - 85 - - 85 Maria Patrizia Grieco Director Independent CONSOLIDATED FINANCIAL (3) 01/01/2024-12/31/2024 approval of 2024 financial statements 65 20 - - - - 85 - - 85 Veronica Diquattro Director Independent (4) 01/01/2024-12/31/2024 approval of 2024 financial statements 65 25 - - - - 90 - - 90 Lorenza Morandini Director Independent (5) 01/01/2024-12/31/2024 approval of 2024 financial statements 65 45 - - - - 110 - - 110 Lorenzo Pozza Director Director 01/01/2024-12/31/2024 approval of 2024 financial statements 65 - - - - - 65 - - 65 Giovanni Tamburi Chair of the Board of 24/04/2024-12/31/2024 approval of 2026 financial statements 57 - - - - - 57 - - 57 Gabriella Chersicla Statutory Auditors Standing Auditor 01/01/2024-12/31/2024 approval of 2026 financial statements 53 - - - - - 53 - - 53 Arienti Patrizia Standing Auditor 24/04/2024-12/31/2024 approval of 2026 financial statements 38 - - - - - 38 - - 38 Alfredo Malguzzi Totale 2,412 185 1,260 0 47 0 3,905 2,935 0 6,840 Other Key Managers with Strategic Responsibilities of the Group (12) (Key Managers) REPORT F. Bardelli A. Bonacina ON OPERATIONS R. Cattaneo A. Ciccolini Permanent 5,175 - 5,010 ** - 871 , 11,056 5,248 - 16,304 F. Dal Poz E. Di Vincenzo C. Finotti G. Galli R. Hassan P. Lazzarini F. Morichini I. Pazzi Grand Total 7,587 185 6,270 0 919 0 14,961 8,183 0 23,143 FORMER ADMINISTRATORS/STANDING AUDITORS WHO LEFT OFFICE IN 2024 Chair of the Board of 01/01/2024-04/24/2024 approval of 2023 financial statements 23 - - - - - 23 - - Raffaella Pagani Statutory Auditors Standing Auditor 01/01/2024-04/24/2024 approval of 2023 financial statements 16 - - - - - 16 - - Dario Righetti (1) Remuneration as Chair of the Remuneration and Appointments Committee and for participation in the Independent Committee (Related Parties). (2) Remuneration as Chair of the Independent Committee (Related Parties) and for participation in the Risk, Control and Sustainability Committee, and the Supervisory Body. (3) Remuneration for participation in the Remuneration and Appointments Committee. (4) Remuneration for participation in the Independent Committee (Related Parties) and for participation in the Risk, Control and Sustainability Committee. (5) Remuneration as Chair of the Risk, Control and Sustainability Committee and as Chair of the Supervisory Board. AMPLIFON AT A GLANCE (*) Amounts subject to variations based on data approved by the Board of Directors on 06/03/2025. This amount includes (i) the pay-out relating to the recognition of the individual results, (ii) excluding the potential co-investment of the beneficiary in the Sustainable Value Sharing Plan 2022-2027, as the beneficiary’s right to co-invest in shares will occur following the publication of this document. (**) Amounts subject to variations based on data approved by the Board of Directors on 06/03/2025. This amount includes (i) the pay-out relating to the recognition of the individual results, (ii) excluding the potential co-investment of the beneficiaries in the Sustainable Value Sharing Plan 2022-2027, as the beneficiaries’ right to co-invest in shares will occur following the publication of this document. This amount includes, in addition to the amount paid as short-term variable remuneration (MBO), other bonuses whose value is equal to 2,032,587 €. 276 --- ANNUAL REPORT 2024 The stock grants awarded to the members of the Board of Directors, General Managers and Key Managers (including those employed by subsidiaries) are detailed below. INCENTIVE PLANS FOR THE MEMBERS OF THE BOARD OF DIRECTORS, THE GENERAL MANAGER AND MANAGERS WITH STRATEGIC RESPONSIBILITIES FINANCIAL FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS FINANCIAL GRANTED IN PREVIOUS INSTRUMENTS VESTED DURING INSTRUMENTS VESTED FINANCIAL YEARS, NOT FINANCIAL INSTRUMENTS GRANTED DURING THE FINANCIAL YEAR ACCRUED FOR THE FINANCIAL DURING THE FINANCIAL VESTED DURING THE THE FINANCIAL YEAR AND NOT YEAR AND ASSIGNABLE FINANCIAL YEAR YEAR AWARDED Number Number Number Fair Value at Number and Value at Fair value Name and and type and type Vesting Market Price at and type Office Plan Vesting period grant date Grant Date type of financial the date of (thousands Surname of financial of financial Period grant date (euro) of financial (euro) instruments Vesting of euro) instruments instruments instruments Stock Grant Plan 2019-2025 (1) 70,000 Mar - 2024 - - - - - - 68,054 32.8 121 rd (3 May 2021) Stock Grant Plan 2019-2025 (1) 65,000 Mar - 2025 - - - - - - - - 696 th (5 May 2022) Stock Grant Plan 2023-2028 (1) 78,000 Mar - 2026 - - - - - - - - 739 rd (3 May 2023) Stock Grant Plan 2023-2028 (1) - - 73,000 31.46 Mar - 2027 05/07/24 33.85 - - - 446 th STATEMENTS (7 May 2024) Sustainable Value Sharing Chief Executive st Plan 2022-2027 (31 May 24,000 Mar - 2025 - - - - - - - - 260 Enrico Vita Officer and (2) 2022) - Coinvested Shares CONSOLIDATED FINANCIAL General Manger Sustainable Value Sharing st Plan 2022-2027 (31 May 24,000 Mar - 2025 - - - - - - - - 177 (3) 2022) - Matched Shares Sustainable Value Sharing th Plan 2022-2027 (29 May 24,500 Mar - 2026 - - - 270 (3) 2023) - Coinvested Shares Sustainable Value Sharing th Plan 2022-2027 (29 May 24,500 Mar - 2026 - - - 225 (3) 2023) - Matched Shares Total 310,000 - 73,000 - - - - - 68,054 - 2,935 Stock Grant Plan 2019-2025 (1) 93,000 Mar - 2024 - - - - - - 90,415 33.22 161 (3 Maggio 2021) Stock Grant Plan 2019-2025 (1) 121,000 Mar - 2025 - - - - - - - - 1,296 (5 Maggio 2022) Stock Grant Plan 2023-2028 Other Key Managers with (1) 125,600 Mar - 2026 - - - - - - - - 1,190 (3 Maggio 2023) Strategic Responsibilities of the Group (12) Stock Grant Plan 2023-2028 (1) 18,500 Mar - 2026 169 REPORT (31 Ottobre 2023) (Key Managers) Stock Grant Plan 2023-2028 (1) 23,900 Mar - 2026 225 ON OPERATIONS F. Bardelli (13 Novembre 2023) A. Bonacina Stock Grant Plan 2023-2028 (1) - - 152,200 31.46 Mar - 2027 05/07/24 33.85 - - - 930 R. Cattaneo (7 Maggio 2024) A. Ciccolini Sustainable Value Sharing F. Dal Poz Plan 2022-2027 (29 Maggio 31,600 Mar - 2026 - - - 358 E. Di Vincenzo (3) 2023) - Coinvested Shares C. Finotti Sustainable Value Sharing G. Galli Plan 2022-2027 (29 Maggio 31,600 Mar - 2026 - - - 290 R. Hassan (3 2023) - Matched Shares ) P. Lazzarini F. Morichini Sustainable Value Sharing I. Pazzi Plan 2022-2027 (7 Maggio - - 48,800 31.46 Mar - 2027 05/07/24 33.85 - - - 351 (4) 2024) - Coinvested Shares Sustainable Value Sharing Plan 2022-2027 (7 Maggio - - 48,800 24.83 Mar - 2027 05/07/24 33.85 - - - 277 (4) 2024) - Matched Shares Total 445,200 - 249,800 - - - - - 90,415 - 5,248 Grand Total 755,200 - 322,800 - - - - - 158,469 - 8,183 (1) For the Chief Executive Officer/General Manager and Managers with Strategic Responsibilities, at the end of the vesting period, the plan provides for a lock-up period of a further year with reference to 30% of the vested shares. AMPLIFON AT A GLANCE (2) The amounts shown represent 2024 accrued fair value related to the 2022-2027 Sustainable Value Sharing Plan, cycle 2022-2024, following the beneficiary’s investment of its 2021 MBO. (3) The amounts shown represent 2024 accrued fair value related to the 2022-2027 Sustainable Value Sharing Plan, cycle 2023-2025, following the beneficiary’s investment of its 2022 MBO. (4) The amounts shown represent 2024 accrued fair value related to the 2022-2027 Sustainable Value Sharing Plan, cycle 2024-2026, following the beneficiary’s investment of its 2023 MBO. 277 --- ANNUAL REPORT 2024 40. GUARANTEES PROVIDED, 41. TRANSACTIONS ARISING FROM COMMITMENTS, AND ATYPICAL/UNUSUAL TRANSACTIONS CONTINGENT LIABILITIES Pursuant to Consob Communication of 28 July 2006, it should be noted that during 2023 the Group carried out no atypical and/or unusual transactions, as defined by the Communication. GUARANTEES PROVIDED TO THIRD PARTIES This comprised the following as at 31 December 2024: (€ thousands) Value at 12/31/2024 Value at 12/31/2023 STATEMENTS Guarantees provided to third parties 17,453 34,220 CONSOLIDATED FINANCIAL Total 17,453 34,220 Regarding the guarantees relating to financial liabilities recognized in the consolidated financial statements, only the amount of the guarantee in excess of the liability recognized in the financial statements is shown, in addition to the interest not yet paid (if applicable). The guarantees provided refer mainly to: • various sureties issued which include letters of patronage issued on behalf of subsidiaries to third parties amounting to €10,694 thousand; • guarantees issued to third parties for leases amounting to €6,759 thousand. REPORT ON OPERATIONS COMMITMENTS On December 20, 2024, Amplifon S.p.A. and Amplifon Italia S.p.A. signed a new joint agreement with a top-tier financial institution for the purchase of an additional €26 million in Superbonus tax credits, for the period 2025-2027, at a total consideration of €22.6 million. The tax credits are broken down by reference years: €10.1 million to be used in 2025, €10.1 million in 2026, and €5.8 million in 2027. According to the contractual conditions, these credits will be transferred to the beneficiary company (and paid by the company to the transferring bank) at the time of use and, therefore, are not recorded in the balance sheet as of December 31, 2024. CONTINGENT LIABILITIES AMPLIFON Currently the Group is not exposed to any particular risks, uncertainties or legal AT A GLANCE disputes which exceed the provisions already made in the financial statements. The usual periodic tax audits will continue, but to date no particular findings have emerged and, at any rate, the Group is confident in the correctness of its actions. 278 --- ANNUAL REPORT 2024 42. FINANCIAL RISK MANAGEMENT With a view to structured management of treasury activities and financial risks, the Group had already adopted a Treasury Policy in 2012 which contains guidelines for the management of: • currency risk; • interest rate risk; • credit risk; • price risk; • iquidity risk. This policy is updated periodically in order to guarantee proactive risk management. Currency Risk includes the following types of risk: STATEMENTS - foreign exchange transaction risk, that is the risk that the value of a financial asset or liability, a forecasted transaction or a firm commitment, fluctuates due to changes in exchange rates; CONSOLIDATED FINANCIAL - foreign exchange translation risk, that is the risk that the translation of the assets, liabilities, costs and revenues relating to net investment in a foreign operation into the reporting currency gives rise to an exchange gain or loss. The Amplifon Group’s foreign exchange transaction risk relates to: - the currency risk stemming from the Procurement and Supply Chain activities carried out by the parent company which involves the direct management of the purchase of hearing aids and accessories, which are then resold to the subsidiaries. The purchases from suppliers are generally made in the same currency used in the subsidiaries’ Details invoices with payment terms that are similar to those negotiated with the suppliers, which limits the exchange risk. However, the amounts can be significant and the risk significant, particularly with respect to year-end adjustments; - other transactions in which the purchase costs or sales revenue are denominated in currencies other than the local currency as is the case in a few countries of lesser importance (Israel, Canada and the Central and Latin American subsidiaries), where the purchasing costs are incurred in Euros and US dollars; - other intercompany transactions (medium/long-term and short-term loans, charge backs based on intercompany service agreements, other centralized intercompany dividends, etc.) which result in currency risk for the companies operating in currencies other than that of the intercompany transaction; - the period between the signing and closing of any commitments to purchase equity interests. Foreign exchange translation risk arises from investments in the United States and Canada, the United Kingdom, Switzerland, Hungary, Poland, Israel, Australia, New Zealand, India, China, Chile, Argentina, Ecuador, Colombia, Panama, Mexico and Egypt. REPORT CURRENCY RISK Foreign Exchange transaction risk ON OPERATIONS The Group’s strategy aims to minimize the impact of currency volatility on the income statement and calls for risks stemming from significant positions in currencies other than the currency used in the financial statements of each company to be hedged. With regard to operational transactions, including those stemming from the Parent Company’s Global Procurement activities, the intercompany services provided and cash- pooling, the risk is covered, when possible, by using a natural hedge which aims to balance active and passive positions for each company by maintaining currency deposits which can be used to cover any differences. Any risk exposure linked to differences in assets and liabilities that cannot be managed using bank deposits in foreign currency will be adequately hedged using instruments deemed adequate. These include, for example, currency forwards. Management Any exposures to exchange risks stemming from financial transactions are hedged using derivatives. Measures The risks arising from other intercompany transactions (both operational and financial) worth less than €1 million (or the equivalent if denominated in another currency) are not hedged as the amounts are not material. Foreign Exchange Translation Risk The foreign exchange translation risk, in accordance with the Group Treasury Policy, is not hedged. Overall, the impact of the foreign exchange translation risk can be seen in the Group’s Euro denominated EBITDA which was around €3 million lower than the Group’s total EBITDA. Approximately €1 million of this difference is attributable to the Argentinian subsidiary. The latter operates in a high-inflation country but, as the size of the subsidiary is immaterial, the impact on the Group is not significant. AMPLIFON AT A GLANCE 279 --- ANNUAL REPORT 2024 Interest rate risk involves the following situations: - fair value risk, namely the risk that the value of a fixed rate financial asset or liability changes due to fluctuations in market interest rates; - cash flow risk, namely the risk that the future cash flows of a floating rate financial asset or liability fluctuate due to changes in market interest rates. Details In the Amplifon Group fair value risk arises on the issue of the €350 million Eurobond, the €125 million tranche disbursed as part of the European Investment (EIB) loan, the €100 million tranche disbursed by Cassa Depositi e Prestiti (CDP) as part of the pool facility subscribed by CDP and Unicredit. The cash flow risk stems from floating rate bank loans. The Group’s strategy is to minimize cash flow risk, especially with respect to long-term exposures, through a balanced mix of fixed- and floating-rate loans and assessing whether to switch floating rate borrowings to fixed-rate when each loan is taken out, as well as over the life of the loans included in light of the current market rates. On 31 December 2024, the Group’s medium/ long- term debt amounted to €1,250 million, of which €988 million at fixed rate or has been swapped to fixed rate debt. In accordance with company strategy, hedging instruments are used by the Group exclusively to mitigate interest rate and currency risk and consist solely in financial derivatives. In order to maximize the effectiveness of these hedges the Group’s strategy calls for: - large counterparties with excellent credit standing and transactions which fall within the limits determined in the treasury policy in order to minimize counterparty risk; - the use of instruments which match, to the extent possible, the characteristics of the risk hedged; - monitoring of the adequacy of the instruments used in order to check and, possibly, optimize the structure of the instruments used to achieve the purposes of the hedge. STATEMENTS The Group’s Treasury Policy also defines the rigorous criteria to be used when selecting counterparties. CONSOLIDATED FINANCIAL The derivatives used by the Group are generally plain vanilla financial instruments. More in detail, the types of derivatives used include: - interest rate swaps; - foreign exchange forwards. INTEREST RATE RISK On initial recognition these instruments are measured at fair value. At subsequent reporting dates the fair value of derivatives must be re-measured and: (i) if these instruments fail to qualify for hedge accounting, any changes in fair value that occur after initial recognition are taken to profit and loss; (ii) if these instruments subsequently qualify as fair value hedges, from that date any changes in the fair value of the derivative are taken to profit and loss; at the same time, any fair value changes due to the hedged risk are recorded as an adjustment to the book value of the hedged item and the same amount is recorded in profit and Management loss; any ineffectiveness of the hedge is taken to profit and loss; Measures (iii) if these instruments qualify as cash flow hedges, from that date any changes in the fair value of the derivative are taken to net equity. Changes in the fair value of the derivative that are recognized in net equity are subsequently reclassified in the income statement in the period in which the hedged transaction affects profit and loss. When the object of the hedge is the purchase of a non-financial asset, changes to the fair value of the derivative taken to net equity are reclassified to adjust the purchase cost of the asset hedged (basis adjustment). Any ineffectiveness of the hedge is recognized in profit and loss. The Group’s hedging strategy is reflected in the accounts described above as of the moment the following conditions are satisfied: REPORT - the hedging relationship, its purpose and the overall strategy are formally defined and documented; the documentation includes the identification of the hedging instrument, ON OPERATIONS the hedged item, the nature of the risk to be neutralized and the procedures whereby the entity will assess the effectiveness of the hedge; - the effectiveness of the hedge may be reliably assessed and there is a reasonable expectation, confirmed by evidence, that the hedge will be highly effective for the period in which the hedged risk exists; - the hedged risk relates to changes in cash flow connected to a future transaction, the latter is highly probable and entails exposure to changes in cash flow which could affect profit and loss. Derivatives are recognized as assets if their fair value is positive and as liabilities if their fair value is negative. These balances are shown under current assets or liabilities if related to derivatives which do not qualify for hedge accounting, conversely, they are classified consistently with the hedged item. More specifically, if the hedged item is classified as a current asset or liability, the positive or negative fair value of the hedging instrument is included under current assets or liabilities; if the hedged item is classified as a non-current asset or liability, the positive or negative fair value of the hedging instrument is included under non-current assets or liabilities. The Group does not have any net investment hedges. AMPLIFON AT A GLANCE 280 --- ANNUAL REPORT 2024 Credit risk is the risk that the issuer of a financial instrument defaults on its obligations resulting in a financial loss for the investor. In the Amplifon Group credit risk arises from: (i) sales made as part of ordinary business operations, when client default can be verified; Details (ii) the use of financial instruments that require settlement of positions with other counterparties which could fail to honor their obligations; (iii) the loans granted to members of the indirect channel and commercial partners in the United States for investments and business development which could fail to be repaid. With regard to the risk (i) above, the only positions with a high unit value are amounts due from Italian public-sector entities for which the risk of insolvency, while it exists, is remote and further mitigated by the fact that each quarter they are factored without recourse by specialized factoring companies. Conversely, there is credit risk associated with the sales to private individuals based on instalment payment plans and arising from sales to US indirect channel operators (franchisees). This credit risk, however, is spread out over a number of partners and the amount owed by any single individual is limited. The largest of these amounts does not exceed a few million US dollars. Due to typical business risks, some may not be able to honor their debts. This would result in higher working capital and credit losses. While each subsidiary is responsible for CREDIT RISK collection of receivables, the Group, through its Corporate functions, has set up a centralized system of monthly reporting relative to trade receivables in order to monitor the composition and due dates for each country, and shares credit recovery initiatives and commercial policies with local management. Payment options like installment plans or loans (with terms limited to a few months) are offered to private customers, the majority of which do, however, use cash. These are managed by external finance Management companies which advance the whole amount of the sale to Amplifon, while the situation of the indirect channel in the US is closely monitored by local management. Measures The risk referred to in (ii) above, notwithstanding the inevitable uncertainties linked to sudden and unforeseeable counterparty default, is managed by making diversified STATEMENTS investments with the main national and international investment grade financial institutions and through the use of specific counterparty limits with regard to both liquidity invested and/or deposited and to the notional amount of the derivatives. The counterparty limits are determined based on the short-term ratings of each counterparty or, CONSOLIDATED FINANCIAL if a public rating is not available, on capital ratios (Tier 1). The risk referred to in (iii) above refers to receivables that are typically guaranteed personally by the loan beneficiaries and repayments are generally made when the invoices for the purchases of hearing aids are paid or settled at the time the Group acquires the business of the franchisee. This arises from the possibility that the value of a financial asset or liability may change due to fluctuations in market prices (other than those caused by currency or interest rate fluctuations). These fluctuations may be caused by: - characteristics specific to the financial asset or liability or the issuer of the financial liability, Details - independent market factors not connected to the specific asset or liability. This risk is typical of financial assets not listed on an active market, which may not be easy to liquidate quickly at a level close to their fair value. The Amplifon Group does not PRICE RISK have investments in these kinds of instruments and, therefore, this risk currently does not exist. Management The Amplifon Group does not have investments in these kinds of instruments and, therefore, this risk currently does not exist. Measures REPORT ON OPERATIONS Liquidity Risk typically arises when an entity is experiencing difficulty finding sufficient funds to meet its obligations and includes the risk that the counterparties that have granted loans and/or “uncommitted” short-term lines of credit may request repayment, as well as difficulty in refinancing long-term loans which have reached maturity. Details The current interest rate environment, which in the last few years has been characterized by a significant increase in rates, followed by a slight decrease/stabilization in the last few months. These increases impact refinancing costs, making the refinanced debt more costly than the loans being refinanced which were originally taken out in LIQUIDITY RISK 2020-2021. At the end of 2024, the Group Net Financial position displays a gross debit of €1,250 million, and approximately 80% of the Group’s debt had maturities beyond 12 months. The liquidity for € 289 million and the irrevocable credit lines and the unutilized portion of the EIB loan amount to €705 million which provides ample headroom. This Management suggests that the Group’s liquidity risk is immaterial. The Group also has short-term revocable credit lines which amounted to €343 million on 31 December 2024, of which Measures only €121 million has been utilized. AMPLIFON AT A GLANCE 281 --- ANNUAL REPORT 2024 43. TRANSLATION OF FOREIGN 44. SEGMENT INFORMATION In accordance with IFRS 8 “Operating Segments”, the schedules relative to each COMPANIES’ FINANCIAL STATEMENTS operating segment are shown below. The exchange rates used to translate non-Euro zone companies’ financial statements The Amplifon Group’s business (distribution and personalization of hearing solutions) are as follows: is organized in three specific geographical segments 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, 12/31/2024 12/31/2023 Hungary, Egypt, Poland and Israel), Americas (USA, Canada, Chile, Argentina, Ecuador, Average Year-end Average Year-end Colombia, Panama, Mexico and Uruguay) and Asia-Pacific (Australia, New Zealand, exchange rate exchange rate exchange rate exchange rate Singapore, India and China). Panamanian balboa 1.0824 1.0389 1.0813 1.1050 The Group also operates via centralized Corporate functions (Corporate bodies, Australian dollar 1.6397 1.6772 1.6288 1.6263 STATEMENTS general management, business development, procurement, treasury, legal affairs, Canadian dollar 1.4821 1.4948 1.4595 1.4642 human resources, IT systems, global marketing and internal audit) which do not qualify CONSOLIDATED FINANCIAL New Zealand dollar 1.7880 1.8532 1.7622 1.7504 as operating segments under IFRS 8. Singapore dollar 1.4458 1.4164 1.4523 1.4591 These areas of responsibility, which coincide with the geographical segments (the US dollar 1.0824 1.0389 1.0813 1.1050 Corporate Hungarian florin 395.3000 411.3500 381.85 382.80 functions are recognized under EMEA), represent the organizational structure used Swiss franc 0.9526 0.9412 0.9718 0.9260 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 Egyptian lira 49.0064 52.8202 33.1581 34.1589 geographical area. New Israeli shekel 4.0067 3.7885 3.9880 3.9993 Argentinian peso (*) 1070.8061 1070.8061 892.9239 892.9239 More in detail, economic performances are monitored and measured for each operating segment/geographical segment, through operating profit including amortization Chilean peso 1020.6600 1033.7600 908.20 977.07 and depreciation (EBIT), along with the portion of the results of equity investments Colombian peso 4407.1400 4577.5500 4675.00 4267.52 REPORT in associated companies valued using the equity method. Financial expenses are not Mexican peso 19.8314 21.5504 19.1830 18.7231 ON OPERATIONS monitored insofar as they are based on corporate decisions regarding the financing of Uruguayan peso 43.4678 45.4668 - - each region (own funds versus borrowings) and, consequently, neither are taxes. Items in the statement of financial position are analyzed by geographical segment without Chinese renminbi 7.7875 7.5833 7.6600 7.8509 being separated from the corporate functions which remain part of EMEA. All the Indian rupee 90.5563 88.9335 89.3001 91.9045 information relating to the income statement and the statement of financial position British pound 0.8466 0.8292 0.8698 0.8691 is determined using the same criteria and accounting standards used to prepare the consolidated financial statements. Polish zloty 4.3058 4.2750 4.5420 4.3395 (*) Argentina is a high-inflation country; therefore, pursuant to IAS 29, the items recognized in the income statement were converted based on the exchange rate at the end of the reporting period. The average exchange rate of the Argentine peso on 31 December 2024 was 989.9196 and 314.1127 on 31 December 2023. AMPLIFON AT A GLANCE 282 --- ANNUAL REPORT 2024 (*) INCOME STATEMENT – FY 2024 (€ thousands) EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED Revenues from sales and services 1,531,284 507,269 370,346 342 - 2,409,241 Operating costs (1,120,997) (381,073) (273,307) (79,216) - (1,854,593) Other income and costs 3,027 3,372 (390) 433 - 6,442 Gross operating profit by segment (EBITDA) 413,314 129,568 96,649 (78,441) - 561,090 Amortization, depreciation and impairment Intangible assets amortization (50,147) (15,234) (16,294) (26,387) - (108,062) Property, plant, and equipment depreciation (36,484) (7,963) (15,712) (1,551) - (61,710) STATEMENTS Right-of-use depreciation (84,833) (14,338) (30,041) (2,374) - (131,586) Impairment losses and reversals of non-current assets (997) - (363) (1,558) - (2,918) CONSOLIDATED FINANCIAL (172,461) (37,535) (62,410) (31,870) - (304,276) Operating result by segment 240,853 92,033 34,239 (110,311) - 256,814 Financial income, expenses and value adjustments to financial assets Group's share of the results of associated companies valued at equity and gains/losses on disposals of 225 - - - - 225 equity investments Interest income and expenses (34,740) (19,138) Interest expenses on lease liabilities Other financial income and expenses (3,184) Exchange gains and losses, and inflation accounting (2,647) (550) Gain (loss) on assets accounted at fair value REPORT (60,034) ON OPERATIONS Net profit (loss) before tax 196,780 Current and deferred income tax Current income tax (48,033) Deferred tax (3,177) (51,210) Net profit (loss) 145,570 Net profit (loss) attributable to Minority interests 196 Net profit (loss) attributable to the Group 145,374 AMPLIFON AT A GLANCE (*)The figures of the operating segments are net of the intercompany eliminations. 283 --- ANNUAL REPORT 2024 (*) INCOME STATEMENT – FY 2023 (€ thousands) EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED Revenues from sales and services 1,485,278 429,577 344,738 491 - 2,260,084 Operating costs (1,072,587) (318,249) (255,571) (95,905) - (1,742,312) Other income and costs 4,354 3,637 304 782 - 9,077 Gross operating profit by segment (EBITDA) 417,045 114,965 89,471 (94,632) - 526,849 Amortization, depreciation and impairment Intangible assets amortization (42,010) (13,256) (14,840) (23,342) - (93,448) Property, plant, and equipment depreciation (33,544) (6,557) (11,528) (2,762) - (54,391) STATEMENTS Right-of-use depreciation (78,464) (11,714) (26,837) (2,277) - (119,292) Impairment losses and reversals of non-current assets (309) (6) (191) - - (506) CONSOLIDATED FINANCIAL (154,327) (31,533) (53,396) (28,381) - (267,637) Operating result by segment 262,718 83,432 36,075 (123,013) - 259,212 Financial income, expenses and value adjustments to financial assets Group's share of the results of associated companies valued at equity and gains/losses on disposals of 555 - - - - 555 equity investments Interest income and expenses (27,737) (14,808) Interest expenses on lease liabilities Other financial income and expenses (5,966) Exchange gains and losses, and inflation accounting (3,172) 1,663 Gain (loss) on assets accounted at fair value REPORT (49,465) ON OPERATIONS Net profit (loss) before tax 209,747 Current and deferred income tax Current income tax (61,626) Deferred tax 6,904 (54,722) Net profit (loss) 155,025 Net profit (loss) attributable to Minority interests (114) Net profit (loss) attributable to the Group 155,139 AMPLIFON AT A GLANCE (*) The figures of the operating segments are net of the intercompany eliminations. 284 --- ANNUAL REPORT 2024 ST (*) STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31 , 2024 (€ thousands) EMEA AMERICAS APAC ELIM. CONSOLIDATED ASSETS Non-current assets Goodwill 1,031,163 313,631 600,701 - 1,945,495 Intangible fixed assets with finite useful life 303,840 63,109 61,411 - 428,360 Property, plant, and equipment 168,319 41,075 44,530 - 253,924 Right-of-use assets 381,119 49,770 61,175 - 492,064 Equity-accounted investments 2,527 - - - 2,527 Hedging instruments 4,454 - - - 4,454 Deferred tax assets 56,435 5,762 15,135 - 77,332 Deferred contract costs 9,165 1,254 75 - 10,494 Other assets 42,576 8,277 2,031 - 52,884 STATEMENTS Total non-current assets 3,267,534 Current assets Inventories 71,792 11,777 9,611 - 93,180 CONSOLIDATED FINANCIAL Receivables 320,174 81,671 20,490 (88,029) 334,306 Deferred contract costs 6,612 1,003 119 - 7,734 Hedging instruments 878 - - - 878 Other financial assets 296 Cash and cash equivalents 288,834 Total current assets 725,228 TOTAL ASSETS 3,992,762 LIABILITIES Net Equity 1,150,224 Non-current liabilities Medium/long-term financial liabilities 952,283 308,004 40,119 39,474 - 387,597 Lease liabilities Provisions for risks and charges 18,896 1,158 871 - 20,925 REPORT Liabilities for employees’ benefits 14,753 - 704 - 15,457 Hedging instruments 1,157 - - - 1,157 ON OPERATIONS Deferred tax liabilities 66,211 23,234 10,048 - 99,493 Payables for business acquisitions 2,136 3,749 - - 5,885 Contract liabilities 137,096 13,865 2,805 - 153,766 Other long-term liabilities 34,743 875 49 - 35,667 Total non-current liabilities 1,672,230 Current liabilities Trade payables 343,885 70,137 50,919 (87,841) 377,100 Payables for business acquisitions 5,143 6,107 260 - 11,510 Contract liabilities 97,435 17,796 7,683 - 122,914 Other payables and tax payables 188,954 26,910 31,614 (188) 247,290 Hedging instruments 739 - - - 739 Provisions for risks and charges 1,787 616 - - 2,403 Liabilities for employees’ benefits 1,128 447 2,519 - 4,094 Short-term financial liabilities 277,518 90,116 13,726 22,898 - 126,740 Lease liabilities AMPLIFON Total current liabilities 1,170,308 AT A GLANCE TOTAL LIABILITIES 3,992,762 (*) The items in the statement of financial position are analyzed by geographic area without being separated from the Corporate functions which are included in EMEA. 285 --- ANNUAL REPORT 2024 ST (*) STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31 , 2023 (€ thousands) EMEA AMERICAS APAC ELIM. CONSOLIDATED 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 STATEMENTS Total non-current assets 3,072,020 Current assets Inventories 70,314 8,729 9,277 - 88,320 CONSOLIDATED FINANCIAL 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 710,267 305,426 37,599 40,884 - 383,909 Lease liabilities Provisions for risks and charges 17,668 896 815 - 19,379 REPORT Liabilities for employees’ benefits 12,119 143 701 - 12,963 Deferred tax liabilities 62,023 19,725 16,703 - 98,451 ON OPERATIONS 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 81,704 10,834 20,984 - 113,522 Lease liabilities Total current liabilities 1,179,244 AMPLIFON TOTAL LIABILITIES 3,693,215 AT A GLANCE (*) The items in the statement of financial position are analyzed by geographic area without being separated from the Corporate functions which are included in EMEA. 286 --- ANNUAL REPORT 2024 45. ACCOUNTING POLICIES 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; 45.1 PRESENTATION OF • provisions for employee benefits, calculated based on actuarial valuations; • amortization and depreciation of intangible assets and tangible fixed assets THE FINANCIAL STATEMENTS recognized based on the estimated remaining useful life and the recoverable amount; The consolidated financial statements as at December 31, 2024 were prepared in • income tax recognized based on the best estimate of the tax rate for the full year; accordance with the historical cost method with the exception of derivatives, a few • IRS and currency swaps (instruments not traded on regulated markets), marked to financial investments measured at fair value and assets and liabilities hedged against market at the reporting date based on the yield curve and market exchange rates, changes in fair value, as explained in more detail in this report, as well as on a going which are subject to credit/debit valuation adjustments based on market prices; concern basis. • 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 With regard to the financial statements, the following is specified: termination clauses if exercise of that clause is reasonably certain. This property STATEMENTS valuation took into account circumstances and facts specific to each asset; • in the statement of financial position, the Group distinguishes between non-current • discount rate of leases falling within the scope of IFRS 16 (incremental borrowing CONSOLIDATED FINANCIAL and current assets and liabilities; rate) determined based on the IRS (reference interbank rate used as an index for • in the income statement, the Group classifies costs by nature insofar as this is fixed-rate mortgage loans) in the individual countries in which Amplifon Group deemed to more accurately represent the primarily commercial and distribution operates, for maturities commensurate with the duration of the specific rental activities carried out by the Group; contract, plus the Parent Company’s credit spread and any costs for additional • comprehensive income statement: in addition to the net result for the year, it includes guarantees. In the rare instances when the IRS rate is not available (Egypt, Ecuador, the effects of changes in exchange rates, the cash flow hedge reserve, the foreign Mexico and Panama), the risk-free rate was determined based on government currency basis spread reserve on derivative instruments and the actuarial gains and bonds with maturities similar to the duration of the specific rental contract. 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 Estimates and assumptions are periodically reviewed, and any changes made, to the income statement; following the change of the circumstances or the availability of better information, are • statement of changes in net equity: the Group reports all the changes in net equity, recognized in the income statement. The use of reasonable estimates is essential to including those deriving from shareholder transactions (payment of dividends and the preparation of the financial statements and does not affect their overall reliability. REPORT capital increases); ON OPERATIONS • statement of cash flows: it is prepared using the indirect method to determine cash The Group verifies the existence of a loss in value of goodwill regularly once a year or flow from operations. 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. 45.2 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; AMPLIFON • allowances for impairment made based on the asset’s estimated realizable value; AT A GLANCE • provisions for risks and charges made based on a reasonable estimate of the 287 --- ANNUAL REPORT 2024 Future IFRS standards/interpretations 45.3 IFRS STANDARDS/INTERPRETATIONS approved by IASB, endorsed in Europe The following table shows the future IFRS standards interpretation approved by us and IFRS/interpretations approved by the IASB, endorsed in endorsed in Europe. Europe and applied for the first time this year The following table lists the IFRS/interpretations approved by the IASB, endorsed in Endorsement Publication in Effective Effective date Europe and applied for the first time this year. Description date the G.U.C.E. date forAmplifon Amendments to IAS 21 “The Effects of Endorsement Effective Publication in Effective Changes in Foreign Exchange Rates: Description date date 12 Nov ‘24 13 Nov ‘24 1 Jan ‘25 1 Jan ‘25 the G.U.C.E. date Lack of Exchangeability” forAmplifon (issued on 15 August 2023) Amendments to IAS 1: “Presentation of Financial Statements: Classification of liabilities as current or non-current”, “Classification of The amendments to IAS 21 proposed by IASB provide clarification as to exchange 19 Dec ‘23 20 Dec ‘23 1 Jan ‘24 1 Jan ‘24 Liabilities as Current or Non-current - Deferral of STATEMENTS whether a currency is exchangeable and which exchange rate to be used if it is not. Effective Date” and ‘’Non-current Liabilities with Covenants’’ (issued on 23 January 2020, 15 July CONSOLIDATED FINANCIAL 2020 and 31 October 2022, respectively) 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 Amendments to IFRS 16 “Leases: Lease 20 Nov ‘23 21 Nov ‘23 1 Jan ‘24 1 Jan ‘24 Liability in a Sale and Leaseback” revenues. (issued on 22 September 2022) Amendments to IAS 7 ‘’Statement of Cash Flows and IFRS 7 Financial Instruments: 45.4 FUTURE ACCOUNTING 15 May 24 16 Jun ‘24 1 Jan ‘24 1 Jan ‘24 Disclosures: Supplier Finance Arrangements’’ (issued on 25 May 2023) STANDARDS AND INTERPRETATIONS IAS 1 amendments are related to the definitions of current and non-current liabilities, IFRS standards/interpretations approved by IASB, providing a more generalized approach to the classification of liabilities under the but not endorsed in Europe standard, based on the contractual agreements. The amendments clarify the criteria REPORT for classifying a liability as current or non-current and require new disclosures in The following are the international accounting standards, interpretations, amendments ON OPERATIONS financial statements regarding non-current liabilities that include covenants to be to existing accounting standards and interpretations, or specific provisions contained satisfied within twelve months after the reporting period. in the standards and interpretations approved by the IASB which, on 31 December 2024, have yet to be endorsed for adoption in Europe. 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. Description Effective date IAS 7 and IFRS 7 amendments refer to the disclosure of information deemed relevant Annual improvements volume 11 (issued on 18 July 2024) Periods beginning on or after 1 Jan ‘26 for the purposes of Supplier Finance Arrangements. The purpose of these amendments Amendments to IFRS 9 e IFRS7 “Classification and Periods beginning on or after 1 Jan ‘26 is to make it easier for financial statement users to understand the effects of these Measurement of Financial Instruments” (issued on 30 May 2024) arrangements on liabilities, cash flows and exposure to liquidity risk. Contracts Referencing Nature-dependent Electricity – Amendments Periods beginning on or after 1 Jan ‘26 to IFRS 9 and IFRS 7 (issued on 18 December 2024) 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. AMPLIFON AT A GLANCE 288 --- ANNUAL REPORT 2024 The document Annual improvement. Volume 11 lists improvements limited to changes The closing dates of subsidiaries are aligned with those of the parent company; where that either clarify the wording in an IFRS Accounting Standard, or correct relatively this is not the case, the subsidiaries prepare appropriate financial statements for minor unintended consequences, oversights or conflicts between requirements of consolidation purposes. the Accounting Standards. In particular, the amendments relate to IFRS1, IFRS7, IFRS9, IFRS10 and IAS7. 45.6 JOINTLY CONTROLLED COMPANIES 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 A joint control arrangement is an agreement based on which two or more parties financial assets with environmental, social and corporate governance (ESG) and similar have joint control. Joint control is the contractually agreed sharing of control of an features. arrangement which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The objective of the Amendments to IFRS 9 and IFRS 7 Contract Referencing Nature- dependent Electricity is to better reflect the effects of physical and virtual nature There are two types of joint control arrangements: joint operations and joint ventures. dependent electricity contracts in the financial statements through narrow-scope A joint operation is a joint arrangement whereby the parties that have joint control of amendments to the own-use, hedge accounting and disclosure requirements. the arrangement have rights to the assets, and obligations for the liabilities, relating to STATEMENTS the arrangement. These parties are referred to as joint operators. The adoption of the standards and interpretations described above did not have CONSOLIDATED FINANCIAL a material impact on the measurement of the Group’s assets, liabilities, costs, and With reference to investment in a joint operation, each part has to relocate: revenues. • Own assets, included share of jointly owned assets; • Own liabilities, included share of jointly owned liabilities; 45.5 SUBSIDIARIES • Revenues from sales of own production share arises from joint operation activity; • Share of revenues from production sales deriving from the jointly controlled activity; The consolidation area includes companies which are controlled by the Group. • Own costs, included parts of costs sustained with the other part. Control is defined as the power to influence the financial and operating policies of a company. The existence of control over a company is determined on the basis of: A joint venture is a joint arrangement whereby the parties that have joint control of the (i) voting rights, including potential ones, that the Group is entitled to and by virtue arrangement have rights to the net assets of the arrangement. of which the Group may exercise a majority of the votes that can be cast at ordinary Shareholders’ meetings; (ii) the content of possible agreements between shareholders In consolidated financial statements investment in joint ventures is valued with equity REPORT or the existence of specific clauses in the entity’s by-laws which grant the Group the method, accounted in income statement net profit and loss attributable to the group ON OPERATIONS power to manage the company; (iii) control by the Group of a sufficient number of occurred in the period. votes to exercise de facto control at ordinary Shareholders’ meetings of the company. With equity method, investment carry amount represents assets and liabilities fair Income statement items are included in the consolidated financial statements starting value of jointed at acquisition moment, as well goodwill arises at acquisition moment. from the date control is acquired and up to the date such control ceases. All payables and receivables, as well as the revenue and expense items deriving from transactions between companies included in the consolidation are eliminated entirely; capital gains and losses deriving from transfers of assets between consolidated companies are also eliminated, as are the profits and losses arising from transfers of assets between consolidated companies that come to form inventories of the acquiring company, write-downs and reversals of holdings in consolidated companies, and intragroup dividends. Assets, liabilities, costs and revenues of subsidiaries are recorded in full, allocating to minority shareholders their share of net equity and of the net result. AMPLIFON The financial statements of subsidiaries are adjusted in order to make the measurement AT A GLANCE criteria consistent with those adopted by the Group. 289 --- ANNUAL REPORT 2024 • any difference between the acquisition cost of the investment and the corresponding 45.7. ASSOCIATED COMPANIES share of the net assets acquired is recorded as goodwill, if positive, or it is charged to the income statement, if negative; Investments in associates are accounted for using the equity method. A company is • income items are included in the consolidated financial statements starting from considered an associate if the Group participates in decisions relating to the company’s the date control is acquired and up to the date control ceases. operating and financial policies even if the latter is not a subsidiary nor subject to joint control. Under the equity method, on initial recognition, an investment in an associate is recognized at cost in the statement of financial position and the carrying amount is increased or decreased to recognize the investor’s share of the profit or loss of the 45.9 FUNCTIONAL CURRENCY, PRESENTATION investee after the date of acquisition. The goodwill relating to the associate is included in the carrying amount and is not subject to amortization. The profits generated as a CURRENCY AND TRANSLATION CRITERIA result of transactions carried out by the Group with associates are eliminated to the extent of the Group’s interest in the associate. The financial statements of companies APPLIED TO FOREIGN CURRENCY ITEMS accounted for based on the equity method are adjusted to be in line with the Group’s accounting policies. The consolidated financial statements of the Amplifon Group are presented in Euros, STATEMENTS the functional currency of the parent company, Amplifon S.p.A. The financial statements of subsidiaries and jointly controlled companies are prepared CONSOLIDATED FINANCIAL 45.8 BUSINESS COMBINATIONS in the functional currency of each company. When this currency differs from the reporting currency of the consolidated financial statements, the financial statements Business combinations are accounted for in the financial statements as follows: are translated using the current exchange rate method: income statement items are translated using the average exchange rates of the year, asset and liability items are • acquisition cost is determined on the basis of the fair value of assets transferred, translated using year-end rates and net equity items are translated at historical rates. liabilities assumed, or the shares transferred to the seller in order to obtain control; Exchange differences are recorded under “translation difference” in the consolidated • The determination of the values of the assets and liabilities of the acquiree is made net equity; when the company is disposed, the cumulative differences booked in net provisionally until the activities of determining the fair value of the assets and equity are taken to the income statement. liabilities are completed. The completion of these activities must in any case take place within 12 months of the acquisition, where the latter are counted from the Foreign currency transactions are recorded at the exchange rate at the transaction date on which the acquisition took place and accounted for the first time. If, in the date. Monetary assets and liabilities denominated in foreign currency are translated period in which the allocation is made provisionally, different values should emerge at the exchange rate at the reporting date. Non-monetary assets and liabilities REPORT from those initially recorded following new information on facts and circumstances denominated in foreign currency and valued at cost are reported at the exchange ON OPERATIONS that in any case existed at the acquisition date, the recognized values are adjusted rate used upon initial recognition. Non-monetary assets and liabilities denominated in retrospectively; foreign currency and recognized at fair value, at recoverable value, or realizable value, • acquisition- costs related to business combinations are recognized in the income are translated using the exchange rate of the date when the value was determined. statement for the period in which the costs were incurred; • the fair value of the shares transferred is determined according to the market price Any exchange rate differences arising from the settlement of monetary assets and at the exchange date; liabilities or from the translation at exchange rates that are different from those • where the agreement with the seller provides for a price adjustment linked to used upon initial recognition, during the year or in previous financial statements, are the profitability of the business acquired, over a defined timeframe or at a pre- recognized in the income statement. established future date (earn-out), the adjustment is included in the acquisition price as of the acquisition date and is measured at fair value as at the date of acquisition; • at the acquisition date, the assets and liabilities, including contingent ones, of the acquired company are recognized at their fair value at that date. When determining the value of these assets we also consider the potential tax benefits applicable to the jurisdiction of the acquired company; AMPLIFON • when the carrying amounts of assets, liabilities and contingent liabilities recorded AT A GLANCE differ from their corresponding tax base at the acquisition date, deferred tax assets and liabilities are recognized; 290 --- ANNUAL REPORT 2024 45.10 INTANGIBLE ASSETS After the initial recognition, goodwill is not amortized but valued at cost less any cumulative impairment losses (see section 45.13). Intangible assets purchased separately and those acquired through business combinations carried out prior to the adoption of the IFRS are initially measured at cost, whilst those acquired through business combinations completed after the date 45.12 TANGIBLE FIXED ASSETS of transition to IFRS, are initially measured at fair value. Expenditure incurred after the initial acquisition is recorded as an increase in the cost of the intangible asset to the Tangible fixed assets are recorded at purchase or production cost, inclusive of ancillary extent that the expenditure can generate future economic benefits. costs that are directly attributable to the assets. Intangible assets having a finite useful life are amortized systematically over their useful The carrying amount upon initial recognition of tangible fixed assets, or their significant lives and written down for impairment (see section 45.13). Amortization begins when elements (except for land), net of their residual value, is depreciated on a straight-line an asset is available for use and ceases at the time of termination of the useful life or basis over their useful life and is written down for impairments (see section 45.13). when an asset is classified as held for sale (or included in a disposal group classified Depreciation starts when the asset becomes available for use and ceases at the time of as held for sale). Both the useful life and the amortization criterion are periodically termination of the useful life or when it is classified as held for sale (or included as part STATEMENTS reviewed and, where significant changes have occurred compared to the previously of a disposal group classified as held for sale). The useful life and the depreciation rate, adopted assumptions, the amortization charge for the current year and subsequent as well as the residual value, are periodically reviewed and, where significant changes CONSOLIDATED FINANCIAL ones is adjusted. have occurred compared to the previously adopted assumptions, the depreciation charge for the current year and subsequent ones is adjusted. The periods of amortization are shown in the following table: Maintenance costs that do not add value to an asset are charged to the income statement in the year in which they are incurred. Maintenance costs that add value to Asset Type Years an asset are recorded with the fixed asset item to which they relate and are depreciated on the basis of the future remaining useful life of the asset. Software 3-10 Licenses 1-15 Leasehold improvements, such as to premises, shops and branches held under Non-competition agreements 5 operating leases, are capitalized and depreciated over the shorter of the term of the Customer lists 10-15 lease and the useful life of the tangible asset installed. Trademarks and concessions 3-15 REPORT The periods of depreciation are shown in the following table: Other 5-9 ON OPERATIONS Asset Type Years 45.11 GOODWILL Buildings, constructions and leasehold improvements 5-25 Plant and machinery 5-16 Goodwill is recognized in the financial statements following business combinations Industrial and commercial equipment 4-10 and is initially recorded at cost, which is the excess of the cost of acquisition over the Group’s share in the fair values of the assets, liabilities and contingent liabilities Motor vehicles 3-9 acquired. Computers and office machinery 3-7 Furniture and fittings 3-10 Goodwill is classified as an intangible asset. As of the acquisition date, the goodwill Other tangible fixed assets 4-8 acquired in a business combination is allocated to each of the acquirer’s cash- generating units or groups of cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of AMPLIFON the acquiree are allocated to those units or groups of units. AT A GLANCE 291 --- ANNUAL REPORT 2024 45.13 IMPAIRMENT OF INTANGIBLE FIXED 45.14 LEASING ASSETS, TANGIBLE FIXED ASSETS, INVESTMENTS When a contract is signed the Group assesses whether a contract is or contains a lease, namely if the contract conveys the right to use an asset for a period of time in IN ASSOCIATED COMPANIES AND GOODWILL exchange for consideration. The Group checks the recoverable value of an asset whenever an impairment indicator ACCOUNTING POLICIES APPLICABLE TO THE GROUP AS A LESSEE exists and, for intangible fixed assets with an indefinite life, other tangible assets and The Group uses a single model to recognize and measure all leases, with the exception goodwill, the assessment is carried out yearly. The recoverable amount is defined as of short-term leases and leases for low value assets. The Group recognizes the lease the higher of the asset’s fair value less costs to sell and its value in use. liabilities and the right-of-use asset, namely the right to use the lease’s underlying asset. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement RIGHT-OF-USE ASSETS date. The Group recognizes the right-of-use assets as of the commencement date of the STATEMENTS lease (namely the date on which use of the underlying asset is conveyed). The right- Value in use is determined with reference to the present value of the estimated future of-use assets are valued at cost, net of any accumulated depreciation and impairment CONSOLIDATED FINANCIAL cash flows that are expected to be generated by the continued use of an asset and losses, adjusted to reflect any restated lease liabilities. The costs for the right-of-use its disposal at the end of its useful life, discounted using a pre-tax discount rate that assets include the lease liabilities recognized, the initial direct costs incurred, and the reflects current market assessments of the time value of money and the specific lease payments made as of the commencement date or before the commencement risks associated with the asset. Where the value in use of a specific asset cannot be date net of any incentives received. determined due to the fact that the asset does not generate independent cash flows, value in use is estimated with reference to the cash-generating unit to which the asset The right-of-use assets are amortized on a straight-line basis from the commencement belongs. date to the end of their useful life consistent with the right granted or, if before, the end of the lease term. With regard to goodwill, the impairment test is performed for the smallest cash- generating unit that the goodwill relates to and which is used by the Group to evaluate, The right-of-use assets are subject to impairment testing. Please refer to section 45.13. either directly or indirectly, the return on the investment which includes the goodwill Loss of value of non-financial assets. itself. REPORT LEASE LIABILITIES ON OPERATIONS Impairment losses are recognized in the income statement when the carrying value of At the commencement date of the lease, the Group recognizes a lease liability equal to an asset is higher than its recoverable value. Except for goodwill, for which impairment the payments that must be made in the future under the lease. The payments owed losses cannot be reversed, when there is an indication that an impairment loss is no include fixed lease payments less any lease incentives, variable lease payments linked longer justified or may have decreased, the carrying value of the asset is adjusted to to an index or a rate, and the guaranteed residual amount due. The lease payments its recoverable value. The increased carrying value of an asset due to an impairment also include the exercise price of a purchase price if it is reasonably certain that the reversal cannot, however, exceed the carrying value that the asset would have had option will be exercised by the Group and any penalties for terminating the lease (net of the write-down or depreciation) if the impairment had not been recognized in contemplated in the lease if the duration of the lease takes into account the exercise previous years. The reversal is immediately recognized in the income statement. by the Group of the option to terminate the lease itself. Variable lease payments that are not linked to an index or a rate are recognized as a cost in the period in which the event or the condition triggering the payment occurred. AMPLIFON AT A GLANCE 292 --- ANNUAL REPORT 2024 When calculating the present value of payments owed, the Group uses the marginal If the net book value of the right-of-use asset in the head lease exceeds the income borrowing rate at the commencement date if the implied borrowing rate is not easily expected from the sub-lease, this might indicate that there has been a loss in the value determined. After the commencement date the amount of the lease liabilities will be of the right-to-use asset in the head lease. The loss in value of a right-of-use asset is increased in order to reflect interest owed and decreased to reflect payments made. measured in accordance with IAS 36. The book value of the lease liabilities will also be restated if any changes are made to the lease terms or payment terms; it will also be restated if the value of the purchase If the sub-lease is classified as a finance lease, the head lessor eliminates the right- option on the underlying asset is changed or if any changes in the index or rate used of-use asset from the head lease as of the commencement date of the sub-lease and to determine future payments occur. continues to recognize the original lease liability as per the lessee’s accounting model. SHORT-TERM LEASES AND LOW VALUE ASSETS The Group applies the exemption relative to leases for low value assets like, for example 45.15 FINANCIAL ASSETS AND LIABILITIES PCs, printers, electronic equipment and short-term leases, namely leases with a term of less than 12 months without purchase options, with the exception of the assets classed as “stores”. The rent payable under short-term leases and leases for low value 45.15.1 Financial assets (excluding derivatives) STATEMENTS assets are recognized as costs on a straight-line basis over the lease term. The Group’s financial assets are classified based on the business model used to CONSOLIDATED FINANCIAL THE GROUP AS LESSOR manage them and the nature of the relative cash flows. Leases which leave all the risks and benefits associated with ownership of the asset are classified as operating leases. Lease income stemming for the operating lease must a) Financial assets valued at amortized cost be recognized on a straight-line basis over the lease term and recognized as revenue in the income statement. The initial negotiation costs are added to the book value Financial assets that meet the following requirements are classified in this category: of the leased asset and are recognized on a straight-line basis over the lease term. (i) assets held as part of a business model where the objective of the entity’s business Unplanned leases are recognized as revenue in the period in which they mature model is collecting contractual cash flows; and (ii) the cash flows contemplated under the contract refer solely to payments of the SUBLEASE principal and interest on the amount of the principal to be repaid. The Group, as an intermediate lessor in a subleasing contract, classifies a sublease as a finance or operating lease as follows: These are mainly trade receivables, loans and other receivables. REPORT a) If the head lease is accounted for as a short-term lease, for which the Group has The trade receivables without a significant financing component are recognized at the ON OPERATIONS made use of the practical expedient, the sublease is classified as an operating lease; price of the relative transaction (determined in accordance with IFRS 15 Revenue from b) otherwise, the sublease is classified by reference to the right-of-use asset arising contracts with customers). from the head lease, rather than by reference to the underlying asset (for example, property unit, leased plants or machinery). The other receivables and loans are recognized in the financial statements at fair value plus any ancillary costs attributable directly to the transactions that generated them. More in detail, if the sub-lease is classified as an operating lease, the head lessor continues to recognize the lease liabilities and the right-of-use assets in the head lease After initial recognition, the effective interest rate applied to financial assets measured like any other lease. at amortized cost, with the exception of receivables without a significant financing component, is used to determine interest income which is recognized in profit or loss. The effects of this measure are recognized among the financial components of income. AMPLIFON AT A GLANCE 293 --- ANNUAL REPORT 2024 With reference to the impairment model, the Group evaluates the receivables by c) Financial assets at fair value recognized through the consolidated income adopting an expected loss logic. statement (“FVPL”) The Group used a simplified approach to measure trade receivables which does not Financial assets which are not classified in the other categories (i.e. residual category). call for periodic adjustments of the credit risk nor of the expected credit loss (“ECL”) These are mainly derivatives. calculated over the life of the receivable (“lifetime ECL”). Assets belonging to this category are initially recognized at fair value. More in detail, the policy implemented by the Group calls for the stratification of trade receivables broken down into similar risk categories. Different percentages The ancillary costs incurred when the asset is recognized are immediately recognized of impairment are applied to these categories based on the expected level of in the consolidated income statement. After initial recognition, the FVPL are measured recoverability which refer to historical percentages and any forward-looking elements at fair value. that could affect recoverability. The trade receivables are written off entirely if there is not a reasonable expectation of recoverability (i.e. past due above a certain level, The gains and losses stemming from changes in fair value are recognized in the bankruptcy and/or legal proceedings). consolidated income statement for the reporting period under “Gains (losses) from STATEMENTS assets measured at fair value”. The Group uses a general approach for the measurement of the long-term financial CONSOLIDATED FINANCIAL receivables relating to the loans granted by American subsidiaries to franchisees and The purchases and disposals of financial assets are accounted for on the settlement members of the Elite network in order support investment and development in the date. United States which requires the checking of any increase in the credit risk at the end of each reporting period. Financial assets are derecognized from the financial statements when the related contractual rights expire, or when the Group transfers all the risks and rewards of Impairment recognized pursuant to IFRS 9 is presented in the income statement, net of ownership associated with the financial asset. any positive effects stemming from releases or reversals, as operating costs. b) Financial assets at fair value recognized through the comprehensive income 45.15.2 Financial liabilities (excluding derivatives) statement (“FVOCI”) Financial liabilities include financial payables, lease obligations and trade payables. Financial assets that meet the following requirements are classified in this category: Amounts payable to banks and other lenders are initially recognized at fair value less REPORT any directly attributable transaction costs and subsequently valued at amortized cost ON OPERATIONS (i) assets held as part of a business model where the objective of the entity’s business based on the effective interest rate. If there is a change in the forecast cash flow the model is collecting contractual cash flows and selling the assets; and value of the liabilities is recalculated in order to reflect this change based on the present (ii) the cash flows contemplated under the contract refer solely to payments of value of the new future cash flows and the internal rate of return initially determined. principal and interest on the amount of principal to be repaid. Whenever legal rights to compensation arise, the Group decides whether or not to These include trade receivables that the Group sometimes used in factoring without show cash and cash equivalents net of bank overdrafts. recourse transactions. Trade payables are obligations to pay for goods and services acquired from suppliers These assets are initially recognized in the financial statements at their fair value plus as part of general business operations. The amounts owed suppliers are classified as any ancillary costs directly attributable to the transactions generating them. After initial current liabilities if the payment will be made within a year of the relative reporting recognition, the measurement is updated and any changes in fair value are recognized period. Conversely, these payables are classified as non-current liabilities. in the comprehensive income statement. The impairment model used is described in a) above. The trade and other payables are initially measured at fair value and subsequently using the amortized cost method. AMPLIFON AT A GLANCE 294 --- ANNUAL REPORT 2024 When a financial liability is hedged against interest rate risk in a fair value hedge, any 45.15.3 Derivative financial instruments changes in fair value due to the hedged risk are not included in the amortized cost calculation. These changes are amortized starting from the moment fair value hedge As of 1 January 2019, the Amplifon Group opted to apply the provisions of IFRS 9 accounting is discontinued. relating to hedge accounting, rather than the provisions of IAS 39 used in the past. With regard to lease liabilities, please refer to section 45.14. Leasing. The Group enters into derivative financial instruments for the purpose of neutralizing the financial risks it is exposed to and which it decides to hedge in accordance with its Financial liabilities are derecognized when the underlying obligation is extinguished, adopted strategy (see note 43). cancelled or fulfilled. The documentation which formalizes the hedging relationship for the purpose of the Contractual amendments relating to financial liabilities are assessed from a qualitative application of hedge accounting includes the identification of: and quantitative point of view (using the 10% test) to determine whether they are of a substantial nature and therefore require a derecognition of the original debt In • the hedging instrument; the event of non-substantial amendments, the Group recognizes the impact of those • the hedged item or transaction; STATEMENTS changes in the income statement. • the nature of the risk; • the methods that the company intends to adopt to assess the effectiveness of the CONSOLIDATED FINANCIAL In the case of put and call granted to minority shareholders and which guarantee them hedge in offsetting the exposure to changes in the fair value of the hedged item or the settlement in cash in exchange for available liquidity or other financial assets, the the cash flows associated with the risk that is hedged against. Group, in accordance with IAS 32, records a financial liability equal to the best estimate of the exercise price of the option. This liability is subsequently remeasured at each On initial recognition these instruments are measured at fair value. On subsequent closing date. Based on the Group’s accounting policy any change in the value of the reporting dates the fair value of derivatives must be re-measured and: liability is recognized in net equity. (i) if these instruments fail to qualify for hedge accounting, any changes in fair value that occur after initial recognition are taken to profit and loss; (ii) if these instruments qualify as fair value hedges, from that date any changes in the fair value of the derivative are taken to profit and loss; at the same time, any fair value changes due to the hedged risk are recorded as an adjustment to the book value of the hedged item and the same amount is recorded in the income REPORT statement; any ineffectiveness of the hedge is recognized in profit and loss ON OPERATIONS in an item separate from that in which changes in the fair value of the hedging instrument and the hedged item are recognized; (iii) if these instruments qualify as cash flow hedges, starting from that date, any changes in the fair value of the derivative are recognized in net equity, but only to the extent of the effective amount of the hedge, with the amount of any hedge ineffectiveness being recognized in the income statement; changes in the fair value of the derivative that are recognized in net equity are subsequently transferred to the income statement in the period in which the transaction that is hedged against affects the income statement; when the hedged item is the purchase of a non-financial asset, changes to the fair value of the derivative taken to equity are reclassified and adjusted according to the purchase cost of the asset which is the hedged item (referred to as basis adjustment); (iv) if these instruments qualify as hedges of net investment of a foreign operation, starting from that date any changes in the fair value of the derivative are adjusted AMPLIFON AT A GLANCE 295 --- ANNUAL REPORT 2024 as part of the “translation difference”, to the extent of the effective amount of the 45.16 INVENTORIES hedge and the ineffective portion is charged to the income statement; (v) hedging is carried out by the designated instrument, considered as a whole. In Inventories are valued at the lower of purchase or production cost and their net the case of options or forward contracts, however, only part of the derivative realizable value, represented by their open market value. Inventories are valued using instrument is designated as the hedging instrument; the remainder is recognized the weighted average cost method. in the income statement. More specifically, in the case of options, only the changes in fair value due to changes in the intrinsic value are designated as a hedging instrument; conversely, fair value changes of options due to changes in 45.17 CASH AND CASH EQUIVALENTS the time value are recognized in the income statement and are not considered in the assessment of the hedge effectiveness. In the case of forward contracts, only AND FINANCIAL ASSETS changes in fair value due to changes in the spot rate are designated as a hedging instrument; conversely fair value changes due to changes in the forward points are The item cash and cash equivalents comprise liquid funds and financial investments recognized in the income statement and are not considered in the assessment of with a maturity, at the acquisition date, of less than three months and for which there the hedge effectiveness. is an insignificant risk of a change in value. These financial assets are recorded at their STATEMENTS nominal value. If the hedge becomes ineffective or the Group changes its hedging strategies, CONSOLIDATED FINANCIAL hedge accounting is discontinued. In particular, hedge accounting is discontinued prospectively when the hedge becomes ineffective or when there is a change in the 45.18 PROVISIONS FOR RISKS AND CHARGES hedging strategies. Provisions for risks and charges relate to costs and charges of a specific nature which If, in a fair value hedge, the hedged item is a financial instrument measured using are certain or probable and whose amount or timing is uncertain at the reporting date. the effective interest rate method, the adjustments made to the book value of the hedged item are amortized starting from the date when fair value hedge accounting Provisions are recognized if the following conditions apply: (i) the Group has a present is discontinued and the hedged item is no longer adjusted for fair value changes obligation (legal or constructive) that has arisen as a result of a past event; (ii) it is attributable to the hedged risk. probable that the fulfilment of the obligation will require the use of resources which produce economic benefits; (iii) the amount can be estimated reliably. Financial instruments hedging exchange rate risk due to forecasted transactions and firm commitments are represented on the statement of financial position according to The amount recognized as a provision in the financial statements represents the best REPORT the cash-flow hedge accounting model. estimate of the expenditure required by the company to settle the obligation at the ON OPERATIONS reporting date or to transfer it to a third party. Derivatives are recognized as assets if their fair value is positive and as liabilities if their fair value is negative. These balances are shown under current assets or liabilities if When the financial effect of time is significant and the settlement dates of the related to derivatives which do not qualify for hedge accounting criteria, conversely, obligations can be reliably estimated, the provision is discounted; when the provision they are classified according to the hedged item. is discounted, the increase in the provision due to the passage of time is recognised in the income statement as a finance cost. In particular, if the hedged item is classified as a current asset or liability, the positive or negative fair value of the hedging instrument is included under current assets or Specifically: liabilities; if the hedged item is classified as a non-current asset or liability, the positive or negative fair value of the hedging instrument is included under non-current assets • the agents’ leaving indemnity includes the estimate of amounts due to agents, or liabilities. calculated using actuarial methods and having regard to the probability that such amounts will be paid, as well as the expectations as to the time of payment; • the warranty and repair provision includes the estimate of costs for warranty services to be provided on products sold, calculated on the basis of historical/ AMPLIFON statistical data and the warranty period; AT A GLANCE 296 --- ANNUAL REPORT 2024 • the provision for risks arising from legal disputes includes the estimate of charges At each reporting date, the Group reviews the assumptions about the number of rights relating to legal disputes with employees or agents or associated with the provision which are expected to be exercised and records the effect of any change in estimate in of services. the income statement adjusting the corresponding net equity reserve. In case of free stock allotment (i.e. “stock grant”), the corresponding increase in net 45.19 EMPLOYEES’ BENEFITS equity is recognized at the end of the vesting period. Post-employment benefits are defined on the basis of pension plans, even if not formalized, which due to their characteristics can be classified as either defined- 45.21 REVENUES contribution or defined-benefit plans. Under a defined-contribution plan the company’s obligation is limited to the payment Revenues from contracts with clients of the contributions agreed with the employees and it is determined on the basis of the contributions due at the end of the period, as reduced by any amounts already paid. The revenues from contracts with customers are recognized in accordance with IFRS 15. STATEMENTS Under defined-benefit plans the liability recorded in the books is equal to: (a) the Based on the five-step model introduced in IFRS 15, the Group records revenue CONSOLIDATED FINANCIAL present value of the defined-benefit obligation at the reporting date; (b) plus any after having identified the contracts with its customer and the relative performance actuarial gains (minus any actuarial losses); (c) less any past service costs that have not obligations (transfer of control of goods and/or services), determined the consideration yet been recorded; (d) less the fair value at the reporting date of plan assets (if any) out to which it is entitled upon satisfaction of each of the obligations, as well as the way of which the obligations are to be settled directly. these obligations will be satisfied (at a point in time or over time). Under defined-benefit plans, the cost charged to the income statement is equal to The Group will recognize revenue once the criteria for the identification of the contract the algebraic sum of the following elements: (a) current service cost; (b) the financial with the customer are satisfied, the parties are involved in fulfilling the respective charges arising from the increase in liability due to the passage of time; (c) the obligations and it is probable that the Group will receive the consideration to which it expected return on plan assets; (d) past service cost; (e) the effect of any curtailments is entitled in exchange for the goods and services transferred to the customer. or settlements under the plan. The main performance obligations identified by the Amplifon Group involve: the Actuarial gains and losses are recognized in other comprehensive income. hearing aid and fitting, which represent a single inseparable performance obligation, REPORT after sales care, extended warranties which are above and beyond normal supplier ON OPERATIONS Net financial charges on defined-benefit plans are recognized in profit or loss under warranties, the material rights (discounts on future purchases and loyalty points) and financial income and charges. accessories (batteries, cleaning kits) provided to the customer. The goods and services may be sold separately or bundled. 45.20 STOCK GRANT The transaction price, which represents the amount the entity expects to receive from The Group grants the right to participate in share capital plans (stock grants) to certain the customer for the goods and services provided, is allocated based on the stand- top executives and other beneficiaries who hold key positions within the Group. Stock alone selling prices of the relative performance obligations. grants are equity settled, and the beneficiary receives a free allotment of shares in Amplifon S.p.A. at the end of the vesting period. The stand-alone selling price is determined based on observable prices when available, while for goods and services not sold separately (for example after sales services) and The relative fair value is recognized in the income statement under personnel expenses when observable market prices are not available the cost plus a margin method is over the period from the date they are granted to the vesting date and a corresponding used. amount is recorded in a net equity reserve. The fair value of stock grants is determined AMPLIFON at the date they are granted, taking account of the market conditions at that date. Any commercial discounts are allocated to the different performance obligations that AT A GLANCE make up the bundle sold to the customer, with the exception of after sales services in proportion to the weight of the relative stand-alone selling price. 297 --- ANNUAL REPORT 2024 Revenues are recognized when control of the goods and services has been transferred 45.22 DIVIDENDS to the customer and performance obligations have been satisfied. This can happen at a point in time or over time. The dividends are recognized as profit (loss) for the year only when: Revenues realized over time, represented typically by after sales services, extended • the entity’s right to receive a dividend arises; warranties, and accessories supplied over time, are recognized based on the level to • it’s likely that the economic benefits stemming from the dividend will flow to the which the different contractual performance obligations have been satisfied. More in entity; and detail, transfer over time is measured based on the input method, namely taking into • the amount of the dividend can be reliably measured. account the work done (inputs) by the Group to fulfill each performance obligation. The up-front fee paid by franchisees is considered a revenue stream generated over time and is recognized over the life of the franchising agreement. 45.23 CURRENT AND DEFERRED TAXES Revenues realized at a point in time refer to the transfer of goods and services that the Current income tax payables and receivables are recorded at the amount that customer receives and consumes at the same time. is expected to be paid to/received from the tax authorities at the rates enacted or STATEMENTS These are generally attributable to the sale of hearing aids and relative fitting, substantially enacted, and the laws in force at the reporting date. accessories and a few services that are sold separately. In these situations, revenue is CONSOLIDATED FINANCIAL recorded when control of the good of service is transferred to the customer. Deferred tax assets and liabilities are recognized on temporary differences between the value of assets and liabilities in the financial statements and the corresponding tax The performance obligation to transfer control of the goods and services over time is bases. recognized under “Contractual liabilities”. The Group incurs costs to acquire and fulfill contracts over time. These costs, which Deferred income taxes are not recognized: (i) when they derive from the initial typically include commissions and bonuses paid to employees and agents for each recognition of goodwill or of an asset or liability in a transaction other than a sale made that will be recovered through the revenues generated by the contract, are business combination and which, at the time of the transaction, does not affect either capitalized as contract costs and amortized based on the progress made in transferring the accounting profit or the taxable profit /loss; (ii) when they relate to temporary the goods and services to the customer over time. differences related to investments in subsidiaries and joint ventures, where the reversal of temporary differences may be controlled and it is probable that it will not The contract costs are recognized as assets in a specific line of the financial statement occur in the foreseeable future. (Short-term and long-term deferred assets arising from contract costs). REPORT Deferred tax assets, including those arising from unused tax losses and tax credits, are ON OPERATIONS PUBLIC CONTRIBUTIONS recorded only to the extent their recovery is highly probable. Public contributions received are presented as a reduction of the reference cost item Deferred tax assets are not discounted to present value and are calculated using the or are shown among other revenues/income when not directly attributable to a specific tax rates that are expected to apply when the taxes are paid or settled in the respective cost item, taking into account the nature of the contribution itself. countries where the Group operates. Deferred tax assets and liabilities are debited or credited directly to net equity if they relate to elements which are recognized directly in net equity. Deferred tax assets and liabilities are recorded respectively under non-current assets and liabilities and are offset only when a legally enforceable right to offset current tax assets against current tax liabilities exists and this will result in a lower tax charge. Moreover, when there is a legally enforceable right of set-off, deferred tax assets and deferred tax liabilities are offset only if at the time of their reversal they will not generate any current tax asset or liability. AMPLIFON AT A GLANCE 298 --- ANNUAL REPORT 2024 When an asset is revalued for tax purposes and the revaluation does not relate to an 45.25 SHARE CAPITAL, TREASURY SHARES, accounting revaluation of an earlier period, or to one that is expected to be carried out in a future period, deferred tax assets are recognized in the income statement on the DIVIDEND DISTRIBUTION AND OTHER NET temporary difference arising as a result of the revaluation. EQUITY ITEMS The current and deferred tax assets and liabilities must be recognized and measured in accordance with IAS 12 namely based on the taxable income (losses), the amounts Ordinary shares issued by the parent company Amplifon S.p.A. are classified as part for tax purposes, unused tax losses, unused tax credits, and tax rates determined of net equity. Any costs incurred to issue new shares, are classified as a reduction of based on IFRIC 23. net equity. Purchases and disposals of treasury shares, as well as any gains or losses on purchase/ In the presence of uncertainties in the application of tax legislation, in accordance with disposal, are recognized in the financial statements as changes in net equity. Dividends IFRS 23 interpretation, the Group: distributed to the shareholders are recorded as a reduction in net equity and as a liability of the period when the dividend payment is approved by the Shareholders’ STATEMENTS (i) in cases where it deems probable that the tax authority will accept the uncertain Meeting. tax treatment, it determines the income taxes (current and/or deferred) to be CONSOLIDATED FINANCIAL recognized in the financial statements according to the tax treatment applied or which it plans to apply at the time of tax declaration; 45.26 EARNINGS (LOSS) PER SHARE (ii) in cases where it deems unlikely that the tax authority will accept the uncertain tax treatment, it reflects such uncertainty in the determination of income taxes Earnings per share is determined by comparing the Group’s net profit to the weighted- (current and/or deferred) to be recognized in the financial statements; average number of shares outstanding during the accounting period. For the calculation (iii) the uncertain tax asset/liability are to be represented in the items that include the of diluted earnings per share, the weighted average number of shares outstanding is assets and liabilities for income taxes and not in other balance sheet items. adjusted assuming the conversion of all potential shares with a dilutive effect. 45.24 VALUE ADDED TAX 45.27 ACCOUNTING STANDARDS FOR Revenues, costs and assets are recognized net of valued added tax (VAT), except where HYPERINFLATIONARY COUNTRIES REPORT VAT applied to the purchase of goods or services is non-deductible, in which case it is ON OPERATIONS recognized as part of the purchase cost of the asset or as part of the expense recorded The Group companies operating in hyperinflationary countries (Argentina) restate non- in the income statement. monetary assets and liabilities found in their original financial statements in order to eliminate any distortions due to the currency’s loss of purchasing power. The inflation The net amount of indirect tax on sales which may be recovered from/paid to the Tax rate used in this instance corresponds with the consumer price index. Authorities is included in the financial statements under other receivables or payables, depending on whether it is a debit or a credit balance. The companies operating in countries in which the cumulative three-year rate of inflation is close to or exceeds 100% use the hyperinflationary accounting measures and cease to do so when the cumulative three-year rate of inflation falls below 100%. The gains or losses on the net monetary position are recorded in the income statement. The financial statements drafted in currencies other than the euro by Group companies operating in hyperinflationary countries are converted into euros based on the exchange rate at the end of the reporting period both for balance sheet items and for economic ones. AMPLIFON AT A GLANCE 299 --- ANNUAL REPORT 2024 46. SUBSEQUENT EVENTS The Group’s external growth continued in the first few months of 2025 with the following acquisitions: 123 shops in Poland, 28 shops in Italy, 22 in China, 12 in France, 11 in Germany, 2 in Canada and 1 in Spain. th Milan, March 6 , 2025 CEO Enrico Vita STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 300 --- ANNUAL REPORT 2024 ANNEX I CONSOLIDATION AREA 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 area of Amplifon S.p.A. on 31 December 2024. PARENT COMPANY: Company name Head office Currency Share capital Amplifon S.p.A. Milano (Italy) EUR 4,527,772 STATEMENTS CONSOLIDATED FINANCIAL SUBSIDIARIES CONSOLIDATED USING THE LINE-BY-LINE METHOD: Company name Head office Direct/Indirect ownership Currency Share Capital % held as at 12/31/2024 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 S.A.S. Arcueil (France) D EUR 173,550,898 100.0% SCI Eliot Leslie (*) Lyon (France) I EUR - 100.0% Nadov Audition S.A.S. Juvisy (France) I EUR 5,000 100.0% Pastel Audiologie S.A.S. Villefranche de Lauragais (France) I EUR 818,000 100.0% Pastel Audition S.A.S. Villefranche de Lauragais (France) I EUR 10,000 100.0% REPORT Acoustiques des Halles S.A.S. Biarritz (France) I EUR 80,000 100.0% ON OPERATIONS Audition Détente S.A.S. Saint-André-de-Sangonis (France) I EUR 2,222 100.0% Belletente S.A.S. Saint-Étienne (France) I EUR 6,000 100.0% Audiloire S.A.S. Tours (France) I EUR 1,000 100.0% L'Oreillette Du Mans S.A.S. Le Mans (France) I EUR 10,800 100.0% Aurissimans S.A.S. Savigné l'Eveque (France) I EUR 6,000 100.0% L'Effet L'Arsene S.A.S. Tours (France) I EUR 1,000 100.0% François Audition S.A.S. Ballan-Mire (France) I EUR 3,000 100.0% Audition Freres François S.A.S. Tours (France) I EUR 6,000 100.0% FFF Audio S.A.S. Chambray-Lès-Tours (France) I EUR 6,000 100.0% Vouvray Audition S.A.S. Vouvray (France) I EUR 6,000 100.0% Audioconseil S.A.S. Lesouef (France) I EUR 102,800 100.0% AMPLIFON AT A GLANCE Audition Oscar Thuaire S.A.S. Thuaire (France) I EUR 5,000 100.0% 301 --- ANNUAL REPORT 2024 Company name Head office Direct/Indirect ownership Currency Share Capital % held as at 12/31/2024 Clarté Audition Sanguinet S.A.S. Thuaire (France) I EUR 1,000 100.0% Clarté Audition Nord Landes S.A.S. Thuaire (France) I EUR 1,000 100.0% Amplifon Ibérica, S.A.U. Barcelona (Spain) D EUR 26,578,809 100.0% Microson S.A. Barcelona (Spain) D EUR 61,752 100.0% Amplifon LATAM Holding, S.L.U. Barcelona (Spain) I EUR 3,000 100.0% Audifonos factory, S.L. Malaga (Spain) I EUR 3,000 100.0% Audifonos sevillaudio, S.L. Malaga (Spain) I EUR 10,000 100.0% 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) I EUR 3,000 100.0% STATEMENTS Corbaudio centros auditivos, S.L. Cordoba (Spain) I EUR 3,000 100.0% Talayoaudio, S.L.U. Marbella (Spain) I EUR 3,000 100.0% CONSOLIDATED FINANCIAL Tecnoaudifonos, S.L.U. (*) Malaga (Spain) I EUR 6,000 100.0% Audio nevada, S.L. Malaga (Spain) I EUR 10,000 100.0% Audioliva, S.L. Jaen (Spain) I EUR 3,000 100.0% 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) I EUR 3,000 100.0% Esteponaudio, S.L. Estepona (Spain) I EUR 3,000 100.0% 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% REPORT Soluciones auditivas y visuales gonzales, S.L. Malaga (Spain) I EUR 29,000 100.0% ON OPERATIONS Soluciones profesionales de audiologia, S.L. Malaga (Spain) I EUR 23,408 100.0% Sonic technology españa, S.L. Fuengirola (Spain) I EUR 9,015 100.0% Sontec centros auditivos, S.L. Mijas (Spain) I EUR 3,000 100.0% Amplifon Portugal SA Lisboa (Portugal) 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% Amplifon Nederland B.V. Doesburg (The Netherlands) D EUR 74,212,052 100.0% Auditech B.V. Doesburg (The Netherlands) I EUR 22,500 100.0% Electro Medical Instruments B.V. Doesburg (The Netherlands) I EUR 16,650 100.0% Beter Horen B.V. Doesburg (The Netherlands) I EUR 18,000 100.0% AMPLIFON AT A GLANCE Amplifon Customer Care Service B.V. Elst (The Netherlands) I EUR 18,000 100.0% 302 --- ANNUAL REPORT 2024 Company name Head office Direct/Indirect ownership Currency Share Capital % held as at 12/31/2024 Amplifon Belgium N.V. Bruxelles (Belgium) D EUR 495,800 100.0% Amplifon RE SA Luxembourg (Luxembourg) D EUR 3,700,000 100.0% Pilot Blankenfelde Medizinisch-Elektronische Gerate GmbH Blankenfelde-Mahlow (Germany) D EUR 34,595 100.0% 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% Amplifon Poland Sp. z o.o. Lodz (Poland) D PLN 3,348,280 100.0% Amplifon UK Ltd Manchester (United Kindgdom) D GBP 130,951,168 100.0% Amplifon Ltd Manchester (United Kindgdom) I GBP 1,800,000 100.0% Ultra Finance Ltd Manchester (United Kindgdom) I GBP 75 100.0% STATEMENTS 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% CONSOLIDATED FINANCIAL Miracle Ear Inc. St. Paul (United States) I USD 5 100.0% Elite Hearing, LLC Minneapolis (United States) I USD 1,000 100.0% Amplifon Hearing Health Care. Corp. 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% REPORT ME Flagship, LLC Wilmington (United States) I USD - 100.0% ON OPERATIONS ME Pivot Holdings, LLC Minneapolis (United States) I USD 2,000,000 100.0% MEOH, LLC Minneapolis (United States) I USD - 100.0% Miracle Ear Canada Ltd. Vancouver (Canada) I CAD 169,601,200 100.0% 2829663 Ontario Inc (*) Milton (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 Ltd./100391416 Ontario Ltd. (*) Ontario (Canada) I CAD - 100.0% Sackville Hearing Centre Limited (*) Nova Scotia (Canada) I CAD - 100.0% Hometown Hearing Centre Inc (*) Bancroft (Canada) I CAD - 100.0% AMPLIFON AT A GLANCE Newlife Hearing Inc. (*) St. John's (Canada) I CAD - 100.0% 303 --- ANNUAL REPORT 2024 Company name Head office Direct/Indirect ownership Currency Share Capital % held as at 12/31/2024 Provincial Hearing Aid Service (Halifax) Ltd. (*) Halifax (Canada) I CAD - 100.0% Audia Hearing Aid Centre Inc. (*) Ontario (Canada) I CAD - 100.0% The Hearing Institute of Ontario, Inc. (*) Ontario (Canada) I CAD - 100.0% Rupert Hearing Ltd (*) Prince Rupert (Canada) I CAD - 100.0% Pure Audiology & Hearing Aid Services, Inc. (*) Oakville (Canada) I CAD - 100.0% St. Thomas Hearing Clinic Inc. (*) St. Thomas (Canada) I CAD - 100.0% GAES S.A. (Chile) Santiago de Chile (Chile) I CLP 1,901,686,034 100.0% GAES Servicios Corporativo de Latinoamerica SpA Santiago de Chile (Chile) I CLP 10,000,000 100.0% 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% STATEMENTS 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% CONSOLIDATED FINANCIAL Centros Auditivos GAES Mexico sa de cv Ciudad de México (Mexico) I MXN 276,477,133 100.0% Compañía de Audiologia y Servicios Medicos sa de cv Aguascalientes (Mexico) I MXN 43,306,212 100.0% 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% REPORT Otohub Unit Trust (in liquidazione) Brisbane (Australia) D AUD - 100.0% ON OPERATIONS 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 (Singapore) 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% AMPLIFON AT A GLANCE Beijing Amplifon Hearing Technology Center Co., Ltd Běijīng (China) D CNY 2,143,685 100.0% 304 --- ANNUAL REPORT 2024 Company name Head office Direct/Indirect ownership Currency Share Capital % held as at 12/31/2024 Tianjin Amplifon Hearing Technology Co., Ltd Tianjin (China) I CNY 3,500,000 100.0% Shijiazhuang Amplifon Hearing Technology Center Co. Ltd Shijiazhuang (China) I CNY 100,000 100.0% 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 Co., Ltd. Zhengzhou (China) I CNY - 100.0% Wuhan Amplifon Hearing Aid Co., Ltd Wuhan (China) I CNY 40,000,000 100.0% Shanghai Amplifon Hearing Technology Co. Ltd, Shanghai (China) I CNY 50,000,000 100.0% Nanjing Amplifon Hearing Aid Co., Ltd Nanjing (China) I CNY 37,500,000 100.0% 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% STATEMENTS Fuzhou Tingan Medical Device Co., Ltd Fuzhou (China) I CNY 20,000,000 100.0% Chongqing Amplifon Hearing Aids Co., Ltd. Chongqing (China) I CNY 10,000,000 100.0% CONSOLIDATED FINANCIAL Sichuan Amplifon Hearing Aid Co., Ltd. Chengdu (China) I CNY 24,000,000 100.0% Xi'an Ansheng Medical Equipment Co., Ltd. Xi’an (China) I CNY 16,000,000 100.0% Ningxia Listening Shunan Medical Equipment Co., Ltd Yinchuan (China) I CNY 16,000,000 100.0% Yunnan Amplifon Hearing Aid Co., Ltd. Kunming (China) I CNY 16,000,000 100.0% Shanxi Amplifon Hearing Aid Business Co., Ltd Xi’an (China) I CNY 18,000,000 100.0% Anhui Amplifon Hearing Aid business Co., Ltd. Ma'anshan (China) I CNY 30,000,000 100.0% AnLaiSheng (Inner Mongolia) Medical Equipment Co.Ltd Hohhot (China) I CNY 47,000,000 100.0% (*) Dormant companies. (**) 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 REPORT purchase of the remaining 10%. ON OPERATIONS COMPANIES VALUED USING THE EQUITY METHOD: Company name Head office Direct/Indirect ownership Currency Share Capital % held as at 12/31/2024 Comfoor BV (*) Doesburg (The Netherlands) I EUR 18,000 50.0% Comfoor GmbH (*) Emmerich am Rhein (Germany) I EUR 25,000 50.0% Ruti Levinson Institute Ltd (**) Ramat HaSharon (Israel) I ILS 105 20.0% Afik - Test Diagnosis & Hearing Aids Ltd (**) Jerusalem (Israel) I ILS 100 20.0% Lakeside Specialist Centre Ltd (**) Mairangi Bay (New Zealand) I NZD - 50.0% (*) Joint Venture (**) Related companies AMPLIFON AT A GLANCE 305 --- ANNUAL REPORT 2024 ANNEX II INFORMATION PURSUANT TO ARTICLE § 149-DUODECIES OF CONSOB ISSUERS’ REGULATIONS The following table, drawn up pursuant to Article 149-duodecies of the Consob Issuers’ Regulations, highlights the fees pertaining to 2024 for auditing services and for those other than audits provided by the auditing firm itself and by entities belonging to its network. Description Subject that provided the service Recipient Audit Fees 2024 STATEMENTS Independent audit services KPMG S.p.A. Parent Company - Amplifon S.p.A. 362,000 Services other than audits KPMG S.p.A. Parent Company - Amplifon S.p.A. 266,000 CONSOLIDATED FINANCIAL Total – Parent Company 628,000 Independent audit services Subsidiaries 1,197,943 KPMG Network KPMG S.p.A. Subsidiaries 84,000 Services other than audits Subsidiaries 6,000 KPMG Network KPMG S.p.A. Subsidiaries 22,848 Total Subsidiaries 1,310,791 Grand total 1,938,791 REPORT ON OPERATIONS AMPLIFON AT A GLANCE 306 --- ANNUAL REPORT 2024 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 consolidated financial statements during the course of 2024. We also certify that the consolidated financial statements on 31 December 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 STATEMENTS Parliament and of the Council of 19 July 2002; • have been prepared in accordance with the European Commission regulation no. 2019/815 and following modifications; CONSOLIDATED FINANCIAL • 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 as well as a description of the main risks and uncertainties to which they are exposed. th Milan, March 6 , 2025 CEO Executive Responsible for Corporate Accounting Information REPORT Enrico Vita Gabriele Galli ON OPERATIONS AMPLIFON AT A GLANCE 307 --- ANNUAL REPORT 2 0 2 4 REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS Amplifon Group Independent auditors’ report 31 December 2024 KPMG S.p.A. Key audit matters Revisione e organizzazione contabile Via Vittor Pisani, 25 Key audit matters are those matters that, in our professional judgement, were of most significance in the 20124 MILANO MI audit of the consolidated financial statements of the current year. These matters were addressed in the Telefono +39 02 6763.1 context of our audit of the consolidated financial statements as a whole, and in forming our opinion Email it-fmauditaly@kpmg.it thereon, and we do not provide a separate opinion on these matters. PEC kpmgspa@pec.kpmg.it (The accompanying translated consolidated financial statements of the Amplifon Group constitute a non- official version which is not compliant with the provisions of the Commission Delegated Regulation (EU) Measurement of goodwill 2019/815. This independent auditors’ report has been translated into English solely for the convenience of STATEMENTS international readers. Accordingly, only the original Italian version is authoritative.) Notes to the consolidated financial statements: note 3 “Acquisitions and goodwill” and note 45 “Accounting policies” CONSOLIDATED FINANCIAL Independent auditors’ report pursuant to article 14 of Legislative Key audit matter Audit procedures addressing the key audit matter decree no. 39 of 27 January 2010 and article 10 of Regulation (EU) no. 537 of 16 April 2014 The consolidated financial statements at 31 Our audit procedures, which also involved our own December 2024 include goodwill of €1,945 million, valuation specialists, included: mainly arising from the significant acquisitions To the shareholders of • understanding the process adopted to prepare the carried out by the group. Amplifon S.p.A. impairment test approved by the parent’s board of Annually or more frequently, if necessary, the directors; directors check the recoverable amount of the goodwill by comparing its carrying amount to its • understanding the process adopted to prepare the Report on the audit of the consolidated financial statements value in use, calculated using a method that 2025-2027 three-year business plans from which discounts expected cash flows. the expected operating cash flows used for Opinion impairment testing have been derived; The key assumptions used to calculate value in use relate to the operating cash flows’ forecasts over the We have audited the consolidated financial statements of the Amplifon Group (the “group”), which • checking any discrepancies between the previous calculation period and the discount and growth rates comprise the statement of financial position as at 31 December 2024, the income statement and the year business plans’ figures and actual figures, in of those flows. statements of comprehensive income, changes in equity and cash flows for the year then ended and order to check the accuracy of the estimation notes thereto, which include material information on the accounting policies. The directors have forecast the operating cash flows process adopted by the directors; for the explicit projection period (2025-2027) used • analysing the reasonableness of the assumptions In our opinion, the consolidated financial statements give a true and fair view of the financial position of for impairment testing on the basis of the 2025-2027 used by the directors to determine the recoverable the Amplifon Group as at 31 December 2024 and of its financial performance and cash flows for the year three-year business plans approved by the REPORT amount of goodwill, including the operating cash then ended in accordance with the IFRS Accounting Standards issued by the International Accounting subsidiaries’ boards of directors and the group’s flows of the 2025-2027 three-year business plans business plan for the same period approved by the Standards Board and endorsed by the European Union, as well as the Italian regulations implementing used by the parent; ON OPERATIONS parent’s board of directors on 17 December 2024. article 9 of Legislative decree no. 38/05. Considering the materiality of the caption and that • analysing the reasonableness of the assumptions impairment testing entails a high level of judgement underlying the valuation model used by the parent Basis for opinion by the directors, especially forecasting operating to calculate the recoverable amount of goodwill; We conducted our audit in accordance with the International Standards on Auditing (ISA Italia). Our cash flows, the recoverability of goodwill was a key • checking the sensitivity analysis made by the responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit audit matter. directors in relation to the main assumptions used of the consolidated financial statements” section of our report. We are independent of Amplifon S.p.A. to test goodwill for impairment; (the “parent”) in accordance with the ethics and independence rules and standards applicable in Italy to audits of financial statements. We believe that the audit evidence we have obtained is sufficient and • assessing the appropriateness of the disclosures appropriate to provide a basis for our audit opinion. provided in the notes. Società per azioni Capitale sociale Euro 10.415.500,00 i.v. Ancona Bari Bergamo Registro Imprese Milano Monza Brianza Lodi Bologna Bolzano Brescia e Codice Fiscale N. 00709600159 Catania Como Firenze Genova R.E.A. Milano N. 512867 AMPLIFON Lecce Milano Napoli Novara Partita IVA 00709600159 KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del AT A GLANCE Padova Palermo Parma Perugia VAT number IT00709600159 network KPMG di entità indipendenti affiliate a KPMG International 2 Pescara Roma Torino Treviso Sede legale: Via Vittor Pisani, 25 Limited, società di diritto inglese. Trieste Varese Verona 20124 Milano MI ITALIA 308 --- ANNUAL REPORT 2024 Amplifon Group Amplifon Group Independent auditors’ report Independent auditors’ report 31 December 2024 31 December 2024 Revenue recognition Auditors’ responsibilities for the audit of the consolidated financial statements Notes to the consolidated financial statements: note 29 “Revenue from sales and services” and note 45 Our objectives are to obtain reasonable assurance about whether the consolidated financial statements “Accounting policies” as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a Key audit matter Audit procedures addressing the key audit matter guarantee that an audit conducted in accordance with ISA Italia will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions The income statement includes revenue from sales Our audit procedures included: of users taken on the basis of these consolidated financial statements. and services of €2,409 million for 2024. • understanding the process for the recognition of The group recognises revenue from contracts with As part of an audit in accordance with ISA Italia, we exercise professional judgement and maintain STATEMENTS revenue, the related IT environment and related customers differently depending on when control accounting policies; professional scepticism throughout the audit. We also: over the goods or services is transferred to the • assessing the design, implementation and customer and on the type of consideration to which • identify and assess the risks of material misstatement of the consolidated financial statements, operating effectiveness of controls deemed material CONSOLIDATED FINANCIAL it is entitled. whether due to fraud or error, design and perform audit procedures responsive to those risks, and for the purposes of our audit; obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of Since sales, which generally cover a package of • comparing the main components of revenue to the not detecting a material misstatement resulting from fraud is higher than for one resulting from error, products and services at a stand-alone price, budgeted and previous year figures and discussing as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of contain many contractual terms applied to the results with the relevant internal departments; customers, the group was required to identify and internal control; • checking the documentation supporting a sample of measure the various performance obligations and sales, whether their performance obligations had • obtain an understanding of internal control relevant to the audit in order to design audit procedures how they are satisfied. been correctly identified, the transaction price that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the For the above reasons and considering the allocated thereto and whether revenue has been effectiveness of the group’s internal control; materiality of the caption, we believe that the recognised in profit or loss based on how the recognition of revenue, and especially its accuracy obligations were satisfied; • evaluate the appropriateness of accounting policies used and the reasonableness of accounting and accruals-based accounting, are a key audit estimates and related disclosures made by the directors; matter. • sending requests for written confirmation in order to obtain audit evidence supporting the trade • conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, receivables recognised in the separate financial based on the audit evidence obtained, whether a material uncertainty exists related to events or statements; conditions that may cast significant doubt on the group’s ability to continue as a going concern. If we • assessing the appropriateness of the disclosures conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to provided in the notes. the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to Responsibilities of the parent’s directors and board of statutory auditors (“Collegio the date of our auditors’ report. However, future events or conditions may cause the group to cease REPORT Sindacale”) for the consolidated financial statements to continue as a going concern; ON OPERATIONS The directors are responsible for the preparation of consolidated financial statements that give a true and • evaluate the overall presentation, structure and content of the consolidated financial statements, fair view in accordance with the IFRS Accounting Standards issued by the International Accounting including the disclosures, and whether the consolidated financial statements represent the underlying Standards Board and endorsed by the European Union and the Italian regulations implementing article 9 transactions and events in a manner that achieves fair presentation; of Legislative decree no. 38/05 and, within the terms established by the Italian law, for such internal • obtain sufficient appropriate audit evidence regarding the financial information of the entities or control as they determine is necessary to enable the preparation of financial statements that are free business activities within the group to express an opinion on the consolidated financial statements. from material misstatement, whether due to fraud or error. We are responsible for the direction, supervision and performance of the group audit. We remain The directors are responsible for assessing the group’s ability to continue as a going concern and for the solely responsible for our audit opinion. appropriate use of the going concern basis in the preparation of the consolidated financial statements We communicate with those charged with governance, identified at the appropriate level required by ISA and for the adequacy of the related disclosures. The use of this basis of accounting is appropriate unless Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit the directors believe that the conditions for liquidating the parent or ceasing operations exist, or have no findings, including any significant deficiencies in internal control that we identify during our audit. realistic alternative but to do so. We also provide those charged with governance with a statement that we have complied with the ethics The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law, the and independence rules and standards applicable in Italy and communicate with them all relationships group’s financial reporting process. and other matters that may reasonably be thought to bear on our independence, and where applicable, the measures taken to eliminate those threats or the safeguards applied. AMPLIFON 4 AT A GLANCE 3 309 --- ANNUAL REPORT 2024 Amplifon Group Amplifon Group Independent auditors’ report Independent auditors’ report 31 December 2024 31 December 2024 From the matters communicated with those charged with governance, we determine those matters that • issue a statement of any material misstatements in the report on operations and certain specific were of most significance in the audit of the consolidated financial statements of the current year and are, information presented in the report on corporate governance and ownership structure required by therefore, the key audit matters. We describe these matters in our auditors’ report. article 123-bis.4 of Legislative decree no. 58/98. In our opinion, the report on operations and the specific information presented in the report on corporate Other information required by article 10 of Regulation (EU) no. 537/14 governance and ownership structure required by article 123-bis.4 of Legislative decree no. 58/98 are consistent with the group’s consolidated financial statements at 31 December 2024. On 20 April 2018, the parent’s shareholders appointed us to perform the statutory audit of its separate and consolidated financial statements as at and for the years ending from 31 December 2019 to 31 Moreover, in our opinion, excluding the section which includes the consolidated sustainability statement, December 2027. the report on operations and the specific information presented in the report on corporate governance and ownership structure required by article 123-bis.4 of Legislative decree no. 58/98 have been prepared STATEMENTS We declare that we did not provide the prohibited non-audit services referred to in article 5.1 of in compliance with the applicable law. Regulation (EU) no. 537/14 and that we remained independent of the parent in conducting the statutory audit. With reference to the above statement required by article 14.2.e-ter) of Legislative decree no. 39/10, CONSOLIDATED FINANCIAL based on our knowledge and understanding of the entity and its environment obtained through our audit, We confirm that the opinion on the consolidated financial statements expressed herein is consistent with we have nothing to report. the additional report to the Collegio Sindacale, in its capacity as audit committee, prepared in accordance with article 11 of the Regulation mentioned above. Our opinion on compliance with the applicable law does not extend to the report on operations’ section which includes the consolidated sustainability statement. Our conclusion on the compliance of this section with the legislation governing its preparation and with the disclosure requirements of article 8 of Report on other legal and regulatory requirements Regulation (EU) 2020/852 is included in the assurance report prepared in accordance with article 14-bis of Legislative decree no. 39/10. Opinion on the compliance with the provisions of Commission Delegated Regulation (EU) 2019/815 Milan, 17 March 2025 The parent’s directors are responsible for the application of the provisions of Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single KPMG S.p.A. electronic reporting format (ESEF) to the consolidated financial statements at 31 December 2024 to be included in the annual financial report. We have performed the procedures required by Standard on Auditing (SA Italia) 700B in order to express (signed on the original) an opinion on the compliance of the consolidated financial statements with Commission Delegated Regulation (EU) 2019/815. In our opinion, the consolidated financial statements at 31 December 2024 have been prepared in Claudio Mariani REPORT XHTML format and have been marked up, in all material respects, in compliance with the provisions of Director of Audit Commission Delegated Regulation (EU) 2019/815. ON OPERATIONS Opinion and statement pursuant to article 14.2.e)/e-bis)/e-ter) of Legislative decree no. 39/10 and article 123-bis.4 of Legislative decree no. 58/98 The parent’s directors are responsible for the preparation of the group’s reports on operations and on corporate governance and ownership structure at 31 December 2024 and for the consistency of such reports with the related consolidated financial statements and their compliance with the applicable law. We have performed the procedures required by Standard on Auditing (SA Italia) 720B in order to: • express an opinion on the consistency of the report on operations and certain specific information presented in the report on corporate governance and ownership structure required by article 123-bis.4 of Legislative decree no. 58/98 with the consolidated financial statements; • express an opinion on the consistency of the report on operations, excluding the section that includes the consolidated sustainability statement, and certain specific information presented in the report on corporate governance and ownership structure required by article 123-bis.4 of Legislative decree no. 58/98 with the applicable law; AMPLIFON AT A GLANCE 6 5 310 --- ANNUAL REPORT 2024 STATEMENTS CONSOLIDATED FINANCIAL REPORT ON OPERATIONS AMPLIFON AT A GLANCE 311 --- ANNUAL REPORT 2024 ATTESTATION OF SUSTAINABILITY STATEMENT PURSUANT TO ARTICLE 81-TER, COMMA 1, OF CONSOB REGULATION NO. 11971 OF MAY 14, 1999, AS AMENDED The undersigned Enrico Vita, as Chief Executive Officer, and Gabriele Galli, as the Executive Responsible for Corporate Accounting Information of Amplifon S.p.A., attest, pursuant to Art.154-bis, paragraph 5-ter, of the Italian Legislative Decree No.58 of 24 February 1998, that the Sustainability Statement included in the Report on Operations were drawn up: STATEMENTS • in accordance with the reporting standards applied pursuant to Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013, and of Legislative Decree 6 September 2024, No.125; CONSOLIDATED FINANCIAL • with the specifications adopted pursuant to Article 8.4 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020. th Milan, March 6 , 2025 CEO Executive Responsible for Corporate Accounting Information REPORT Enrico Vita Gabriele Galli ON OPERATIONS AMPLIFON AT A GLANCE 312 --- ANNUAL REPORT 2024 REPORT ON THE AUDIT OF THE CONSOLIDATED SUSTAINABILITY STATEMENT Amplifon Group Independent auditors’ report 31 December 2024 KPMG S.p.A. Our company applies International Standard on Quality Management 1 (ISQM Italia 1) and, accordingly, Revisione e organizzazione contabile is required to design, implement and operate a system of quality management including policies or Via Vittor Pisani, 25 procedures regarding compliance with ethical requirements, professional standards and applicable legal 20124 MILANO MI and regulatory requirements. Telefono +39 02 6763.1 Email it-fmauditaly@kpmg.it We believe that the evidence we have acquired is sufficient and appropriate to provide a basis for our PEC kpmgspa@pec.kpmg.it conclusion. (This independent auditors’ report has been translated into English solely for the convenience of Other matters international readers. Accordingly, only the original Italian version is authoritative.) In the “EU taxonomy” paragraph, the 2024 consolidated sustainability statement presents the 2023 STATEMENTS comparative information required by article 8 of the taxonomy regulation, which has not been subjected to Independent auditors’ limited assurance report on the consolidated an assurance engagement. sustainability statement pursuant to article 14-bis of Legislative CONSOLIDATED FINANCIAL Responsibilities of the directors and board of statutory auditors (“Collegio Sindacale”) decree no. 39 of 27 January 2010 of Amplifon S.p.A. (the “parent”) for the consolidated sustainability statement To the shareholders of The directors are responsible for designing and implementing the procedures to identify the information Amplifon S.p.A. included in the consolidated sustainability statement in accordance with the ESRS (the “materiality assessment process”) and for the description of these procedures in the “Amplifon’s double materiality” paragraph of the consolidated sustainability statement. Conclusion The directors are also responsible for the preparation of a consolidated sustainability statement in Pursuant to articles 8 and 18.1 of Legislative decree no. 125 of 6 September 2024 (the “decree”), we accordance with article 4 of the decree, which contains the information identified through the materiality have been engaged to perform a limited assurance engagement on the 2024 consolidated sustainability assessment process, including: statement of the Amplifon Group (the “group”) prepared in accordance with article 4 of the decree, presented in the specific section of the report on operations (the “sustainability statement”). • compliance with the ESRS; Based on the procedures performed, nothing has come to our attention that causes us to believe that: • compliance of the information presented in the “EU taxonomy” paragraph with article 8 of the taxonomy regulation. • the group’s 2024 consolidated sustainability statement has not been prepared, in all material respects, in accordance with the reporting standards endorsed by the European Commission Moreover, the directors are responsible, within the terms established by the Italian law, for designing, pursuant to Directive 2013/34/EU (the European Sustainability Reporting Standards, “ESRS”); implementing and maintaining such internal controls as they determine is necessary to enable the preparation of a consolidated sustainability statement in accordance with article 4 of the decree that is • the information presented in the “EU taxonomy” paragraph of the consolidated sustainability free from material misstatement, whether due to fraud or error. They are also responsible for selecting REPORT statement has not been prepared, in all material respects, in accordance with article 8 of Regulation and applying appropriate methods to produce disclosures and formulating assumptions and estimates (EU) 2020/852 of 18 June 2020 (the “taxonomy regulation”). about specific information on sustainability matters that are reasonable in the circumstances. ON OPERATIONS The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law, Basis for conclusion compliance with the decree’s provisions. We have performed the limited assurance engagement in accordance with the Standard on Sustainability Assurance Engagements - SSAE (Italia). The procedures performed in a limited assurance engagement Inherent limitations in preparing the consolidated sustainability statement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower For the purpose of disclosing forward-looking information in accordance with the ESRS, the directors are than the assurance that would have been obtained had a reasonable assurance engagement been required to prepare such information based on assumptions, described in the consolidated sustainability performed. Our responsibilities under SSAE (Italia) are further described in the “Auditors’ responsibilities statement, regarding future events and the group’s actions that are not necessarily expected to occur. for the sustainability assurance engagement” paragraph of our report. Actual results are likely to be different from the forecast sustainability information since anticipated events frequently do not occur as expected and the variation could be material. We are independent in accordance with the ethics and independence rules and standards applicable in Italy to sustainability assurance engagements. The disclosures provided by the group about Scope 3 emissions are subject to more inherent limitations than those on Scope 1 and Scope 2 emissions, given the lack of availability and relative precision of information used for determining both qualitative and quantitative Scope 3 emissions information from value chain. Società per azioni Capitale sociale Euro 10.415.500,00 i.v. Ancona Bari Bergamo Registro Imprese Milano Monza Brianza Lodi Bologna Bolzano Brescia e Codice Fiscale N. 00709600159 Catania Como Firenze Genova R.E.A. Milano N. 512867 Lecce Milano Napoli Novara Partita IVA 00709600159 AMPLIFON KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del 2 Padova Palermo Parma Perugia VAT number IT00709600159 AT A GLANCE network KPMG di entità indipendenti affiliate a KPMG International Pescara Roma Torino Treviso Sede legale: Via Vittor Pisani, 25 Limited, società di diritto inglese. Trieste Varese Verona 20124 Milano MI ITALIA 313 --- ANNUAL REPORT 2024 Amplifon Group Amplifon Group Independent auditors’ report Independent auditors’ report 31 December 2024 31 December 2024 Auditors’ responsibilities for the sustainability assurance engagement • we gained an understanding of the processes underlying the generation, recording and management of the qualitative and quantitative information disclosed in the consolidated sustainability statement, Our objectives are to plan and perform procedures in order to obtain limited assurance about whether the including of the reporting boundary, through interviews and discussions with the group’s personnel consolidated sustainability statement is free from material misstatement, whether due to fraud or error, and selected procedures on documentation; and to issue an assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected • we identified the disclosures associated with a risk of material misstatement, whether due to fraud or to influence decisions of intended users taken on the basis of the consolidated sustainability statement. error; As part of a limited assurance engagement in accordance with SSAE (Italia), we exercise professional • we designed and performed procedures, based on our professional judgement, to respond to judgement and maintain professional scepticism throughout the engagement. identified risks of material misstatement, including: STATEMENTS Our responsibilities include: - for information gathered at group level: • considering risks to identify disclosures where a material misstatement is likely to occur, whether due • with reference to qualitative information and, in particular, the sustainability-related policies, CONSOLIDATED FINANCIAL to fraud or error; actions and objectives, we held inquiries and performed limited procedures on documentation; • designing and performing procedures to check disclosures where a material misstatement is likely to occur. The risk of not detecting a material misstatement resulting from fraud is higher than for one • with reference to quantitative information, we carried out analytical procedures, inspections, resulting from error, as fraud may involve collusion, forgery, intentional omissions, observations and recalculations on a sample basis; misrepresentations, or the override of internal control; - for information gathered at the level of individual countries in which the group operates, we visited the subsidiaries in the United States, Italy, Germany and the Netherlands, which we selected on • directing, supervising and performing the sustainability limited assurance engagement and assuming the basis of their business and contribution to the metrics of the consolidated sustainability full responsibility for the conclusion on the consolidated sustainability statement. statement. During these visits, we held discussions with the subsidiaries’ personnel and acquired documentary evidence on the determination of metrics; Summary of the work performed • we gained an understanding of the process adopted by the group to determine taxonomy-eligible A limited assurance engagement involves carrying out procedures to obtain evidence as a basis for our economic activities and whether they were aligned under the taxonomy regulation and checked the conclusion. related disclosures presented in the consolidated sustainability statement; The procedures performed are based on our professional judgement and include inquiries, primarily of the parent’s personnel responsible for the preparation of the information presented in the consolidated • we checked the consistency of the disclosures contained in the consolidated sustainability statement sustainability statement, documental analyses, recalculations and other evidence gathering procedures, with those included in the group’s consolidated financial statements pursuant to the applicable as appropriate. financial reporting framework, the underlying accounting records or management accounts; We have performed the following main procedures: • we checked the compliance of the structure and presentation of disclosures included in the REPORT consolidated sustainability statement with the ESRS; • we gained an understanding of the group’s business model, strategies and operating environment ON OPERATIONS with regard to sustainability matters; • we obtained the representation letter. • we gained an understanding of the process adopted by the group to identify and assess material Milan, 17 March 2025 sustainability-related impacts, risks and opportunities (IROs), based on the double materiality principle. Moreover, on the basis of the information acquired, we evaluated any emerging KPMG S.p.A. inconsistencies that may indicate the presence of sustainability matters not addressed by the group in its materiality assessment process; Specifically, mostly through inquiries, observations and inspections, we gained an understanding of how the group: (signed on the original) - considered the interests and opinions of the stakeholders involved; - identified its sustainability-related IROs, assessing their consistency with our knowledge of the group and its sector; Claudio Mariani - defined and assessed material IROs by analysing the qualitative and quantitative materiality Director of Audit thresholds it determined, checking their consistency with the results of the enterprise risk management (ERM) process; AMPLIFON 4 AT A GLANCE 3 314 --- Publication date: March 20, 2025 Editorial project coordination: Amplifon S.p.A. Project coordination and typesetting --- --- --- www.amplifon.com