--- title: "Interim Financial Report as at 30 June 2024" period: "2024-h1" kind: "financial-report" source_url: "https://corporate.amplifon.com/content/dam/amplifon/archive/en/investors/financial-reports/2024/Interim%20Financial%20Report%20as%20at%2030%20June%202024_ENG.pdf" downloaded_at: "2026-06-06" pdf_sha256: "71972d4a15a39dee382c24e376ae4017b40a7d22744d88847eef4178ce59fa9b" pdf_size_bytes: 2245808 extractor: "pdfjs-dist-6.0.227" --- --- Interim Financial Report as at 30 June 2024 INDEX PREFACE ....................................................................................................................................4 INTERIM MANAGEMENT REPORT AS AT 30 JUNE 2024 ...............................................................5 HIGHLIGHTS...............................................................................................................................6 MAIN ECONOMIC AND FINANCIAL FIGURES ...............................................................................7 INDICATORS...............................................................................................................................8 SHAREHOLDER INFORMATION ................................................................................................. 10 RECLASSIFIED CONSOLIDATED INCOME STATEMENT ................................................................ 12 RECLASSIFIED BALANCE SHEET ................................................................................................. 15 CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT....................................... 17 INCOME STATEMENT REVIEW .................................................................................................. 18 BALANCE SHEET REVIEW .......................................................................................................... 35 ACQUISITION OF COMPANIES AND BUSINESSES ....................................................................... 46 OUTLOOK ................................................................................................................................ 47 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2024............... 51 CONSOLIDATED STATEMENT OF FINANCIAL POSITION.............................................................. 51 CONSOLIDATED INCOME STATEMENT ...................................................................................... 53 STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME ..................................................... 54 STATEMENT OF CHANGES IN CONSOLIDATION EQUITY............................................................. 55 STATEMENT OF CONSOLIDATED CASH FLOWS .......................................................................... 57 SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS .......... 58 NOTES...................................................................................................................................... 59 1. General Information.............................................................................................................59 2 --- Interim Financial Report as at 30 June 2024 2. Impacts of the conflict in Middle-East, Ukraine and climate change on the Group’s performance and financial position...............................................................................................60 3. Acquisitions and goodwill ....................................................................................................61 4. Intangible fixed assets with finite useful life........................................................................63 5. Property, plant, and equipment...........................................................................................64 6. Right-of-use assets ...............................................................................................................65 7. Other non-current assets.....................................................................................................66 8. Share capital and treasury shares........................................................................................67 9. Net financial indebtedness...................................................................................................68 10. Financial liabilities ................................................................................................................71 11. Provision for risks and charges.............................................................................................74 12. Lease liabilities .....................................................................................................................75 13. Revenues from sales and services........................................................................................75 14. Operating costs, depreciation and impairment, financial income-expenses and taxes......76 15. Performance Stock Grant.....................................................................................................77 16. Non-recurring significant events..........................................................................................78 17. Earnings (loss) per share ......................................................................................................79 18. Transactions with parents and other related parties ..........................................................80 19. Contingent liabilities ............................................................................................................81 20. Financial risk management ..................................................................................................81 21. Translation of foreign companies’ financial statements......................................................82 22. Segment reporting ...............................................................................................................83 23. Accounting policies ..............................................................................................................88 24. Subsequent events...............................................................................................................92 ANNEXES ................................................................................................................................. 93 Consolidation scope............................................................................................................. 93 Declaration in respect of the Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98 ............................................................................................ 98 INDEPENDENT AUDITOR’S REPORT ON REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2024........................................................................... 99 Disclaimer This report contains forward looking statements (“Outlook”) relating to future events and the Amplifon Group’s operating, economic and financial results. These forecasts, by definition, contain elements of risk and uncertainty, insofar as they are linked to the occurrence of future events and developments. The actual results may be very different with respect to the original forecast due to several factors, the majority of which are out of the Group’s control. 3 --- Interim Financial Report as at 30 June 2024 PREFACE This Interim Financial Report as at 30 June 2024 was prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) endorsed by the European Union and should be read together with the Group’s consolidated financial statements as at and for the year ended 31 December 2023 that includes additional information on the risks and uncertainties that could impact the Group’s operating results or its financial position. 4 --- INTERIM MANAGEMENT REPORT AS AT 30 JUNE 2024 --- Interim Financial Report as at 30 June 2024 > Interim Management Report HIGHLIGHTS In the first six months of 2024 Amplifon posted a significant increase in revenues across all geographies due to both an above-market organic growth and acquisitions, along with strong improvement in profitability thanks to the field productivity measures taken in the second half of last year. First Half 2024 First Half 2023 (€ thousands) Recurring Total Recurring Total Economic figures: Revenues from sales and services 1,177,251 1,177,251 1,113,770 1,113,770 Gross operating profit (loss) (EBITDA) 297,239 293,773 276,041 264,758 Operating profit (loss) (EBIT) 152,413 148,947 147,500 136,217 Profit (loss) before tax 124,898 121,432 123,782 112,499 Group net profit (loss) 90,280 87,793 89,344 81,357 The first six months of the year closed with: - Turnover of €1,177,251 thousand, an increase of 5.7% compared to the same period of the prior year (+8.0% at constant exchange rates); - a recurring gross operating margin (EBITDA) of €297,239 thousand, 10.9% higher than in the six months of 2023, with an EBITDA margin of 25.2% (+0.4 p.p. against the comparison period); - recurring Group net profit of €90,280 thousand, an increase of €936 thousand (+1.0%) compared to the first six months of 2023. Net financial debt, excluding lease liabilities, amounted to €1,009,285 thousand compared to €852,130 thousand at year-end 2023. Free cash flow reached a positive €46,822 thousand versus €76,110 thousand in the first six months of the prior year. The difference is explained mainly by higher taxes, rents and interest payable, along with greater absorption of working capital and increased capital expenditure (which amounted to €65,338 thousand in June 2024 versus €61,907 thousand in the comparison period). The significant net cash-outs for acquisitions of €142,737 thousand (versus €59,125 thousand in the first half of 2023), along with the €65,593 dividend payment (€65,361 thousand in the comparison period) and €5,695 thousand in positive flows generated by other non-current assets, bring cash flow for the reporting period to negative €155,814 thousand versus a negative €50,474 thousand in the first half of 2023. 6 --- Interim Financial Report as at 30 June 2024 > Interim Management Report MAIN ECONOMIC AND FINANCIAL FIGURES First Half 2024 First Half 2023 (€ thousands) % on % on Change % Non- revenues Non- revenues on Recurring recurring Total recurring Recurring recurring Total recurring recurring Economic figures: Revenues from sales and 1,177,251 - 1,177,251 100.0% 1,113,770 - 1,113,770 100.0% 5.7% services Gross operating profit (loss) 297,239 (3,466) 293,773 25.2% 276,041 (11,283) 264,758 24.8% 7.7% (EBITDA) Operating profit (loss) before the depreciation and 177,766 (3,466) 174,300 15.1% 172,015 (11,283) 160,732 15.4% 3.3% amortization of PPA related assets (EBITA) Operating profit (loss) 152,413 (3,466) 148,947 12.9% 147,500 (11,283) 136,217 13.2% 3.3% (EBIT) Profit (loss) before tax 124,898 (3,466) 121,432 10.6% 123,782 (11,283) 112,499 11.0% 0.9% Group net profit (loss) 90,280 (2,487) 87,793 7.7% 89,344 (7,987) 81,357 8.0% 1.0% 06/30/2024 12/31/2023 Change (€ thousands) Financial figures: 3,171,318 2,976,387 194,931 Non-current assets Net invested capital 2,660,233 2,451,239 208,994 Group net equity 1,138,354 1,100,919 37,435 Total net equity 1,138,588 1,101,678 36,910 Net financial indebtedness 1,009,285 852,130 157,155 512,361 Lease liabilities 497,431 14,930 1,521,646 Total lease liabilities and net financial indebtedness 1,349,561 172,085 First Half 2024 First Half 2023 (€ thousands) Free cash flow 46,822 76,110 Cash flow generated from (absorbed by) business combinations (142,737) (59,125) Cash flow provided by (used in) financing activities (59,899) (67,459) Net cash flow from the period (155,814) (50,474) Effect of exchange rate fluctuations on the net financial position (1,341) (3,344) Net cash flow from the period with changes for exchange rate fluctuations (157,155) (53,818) - EBITDA is the operating result before charging amortization, depreciation, impairment of both tangible and intangible fixed assets and the right of use depreciation. - EBITA is the operating result before amortization and impairment of customer lists, trademarks, non-competition agreements and other fixed assets arising from business combinations. - EBIT is the operating result before financial income and charges and taxes. 7 --- Interim Financial Report as at 30 June 2024 > Interim Management Report - Free cash flow represents the cash flow of operating and investing activities before the cash flows used in acquisitions and payment of dividends and the cash flows from or used in other financing activities. INDICATORS 06/30/2024 12/31/2023 06/30/2023 Net financial indebtedness (€ thousands) 1,009,285 852,130 883,811 Lease liabilities (€ thousands) 512,361 497,431 482,058 Total lease liabilities & net financial indebtedness (€ thousands) 1,521,646 1,349,561 1,365,869 Net equity (€ thousands) 1,138,588 1,101,678 1,041,591 Group Net Equity (€ thousands) 1,138,354 1,100,919 1,040,630 Net financial indebtedness/Net Equity 0.89 0.77 0.85 Net financial indebtedness/Group Net Equity 0.89 0.77 0.85 Net financial indebtedness/EBITDA 1.70 1.50 1.57 EBITDA/Net financial expenses 16.63 18.03 25.13 Earnings per share (EPS) (€) 0.38850 0.69285 0.36275 Diluted EPS (€) 0.38547 0.68809 0.35979 EPS (€) adjusted for non-recurring transactions and amortization/depreciation 0.49544 0.91271 0.48454 related to purchase price allocations to tangible and intangible assets Group Net Equity per share (€) 5.034 4.880 4.615 Period-end price (€) 33.24 31.34 33.59 Highest price in period (€) 35.14 36.27 36.27 Lowest price in period (€) 29.18 24.49 25.02 Share price/net equity per share 6.603 6.422 7.279 Market capitalization (€ millions) 7,518.35 7,074.89 7,574.32 Number of shares outstanding 226,183,821 225,746,472 225,493,237 - Net financial indebtedness/net equity is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to total net equity. - Net financial indebtedness/Group net equity is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to the Group’s net equity. - Net financial indebtedness/EBITDA is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to EBITDA for the last four quarters (determined with reference to recurring operations only, based on pro forma figures in case of significant changes to the structure of the Group). - EBITDA/net financial expenses ratio is the ratio of EBITDA for the last four quarters (determined with reference to recurring operations only, based on restated figures in case of significant changes to the structure of the Group) to net interest payable and receivable of the same last four quarters. - Earnings per share (EPS) (€) is the net profit for the period attributable to the parent’s ordinary shareholders divided by the weighted average number of shares outstanding during 8 --- Interim Financial Report as at 30 June 2024 > Interim Management Report the period, considering purchases and sales of treasury shares as cancellations or issues of shares, respectively. - Diluted earnings per share (EPS) (€) is the net profit for the period attributable to the parent’s ordinary shareholders divided by the weighted average number of shares outstanding during the period adjusted for the dilution effect of potential shares. In the calculation of outstanding shares, purchases and sales of treasury shares are considered as cancellations and issues of shares, respectively. - Earnings per share (EPS) adjusted for non-recurring transactions, amortization/depreciation and impairment related to purchase price allocations to tangible and intangible assets (€) is the profit for the period from recurring operations attributable to the parent’s ordinary shareholders divided by the weighted average number of outstanding shares in the period adjusted to reflect the amortization of purchase price allocations. When calculating the number of outstanding shares, the purchases and sales of treasury shares are considered cancellations and share issues, respectively. - Net Equity per share (€) is the ratio of Group equity to the number of outstanding shares. - Period-end price (€) is the closing price on the last stock exchange trading day of the period. - Highest price (€) and lowest price (€) are the highest and lowest prices from 2 January to the end of the period. - Share price/Net equity per share is the ratio of the share closing price on the last stock exchange trading day of the period to net equity per share. - Market capitalization is the closing price on the last stock exchange trading day of the period multiplied by the number of outstanding shares. - The number of shares outstanding is the number of shares issued less treasury shares. 9 --- Interim Financial Report as at 30 June 2024 > Interim Management Report SHAREHOLDER INFORMATION Main shareholders The main shareholders of Amplifon S.p.A. as at 30 June 2024 are: Ampliter S.r.l. Treasury shares Market 42.06% 57.85% 0.09% % of the total share No. of ordinary Shareholder % held capital in voting shares (*) rights Ampliter S.r.l. 95,224,369 42.06% 59.13% Treasury shares 204,799 0.09% 0.06% Market 130,959,452 57.85% 40.81% Total 226,388,620 100.00% 100.00% (*) Number of shares related to the share capital registered with the Company registrar on 30 June 2024 Pursuant to article 2497 of the Italian Civil Code, Amplifon S.p.A. is not subject to management and coordination either by its direct parent Ampliter S.r.l. or its indirect parent. The shares of the parent Amplifon S.p.A. have been listed on the screen-based stock market Euronext Milano (EXM) since 27 June 2001 and since 10 September 2008 in the STAR segment. Amplifon is also included in the FTSE MIB index and in the Stoxx Europe 600 index. The chart shows the performance of the Amplifon share price and its trading volumes from 30 December 2023 to 30 June 2024. As at 30 June 2024 market capitalization was €7,518.35 million. 10 --- Interim Financial Report as at 30 June 2024 > Interim Management Report t Dealings in Amplifon shares in the screen-based stock market Euronext Milano (EXM) during the period 30 December 2023 – 30 June 2024, showed: - average daily value: €17,544,032; - average daily volume: 544,170 shares; - total volume traded of 70,742,150 shares, or 31.28% of the total number of shares comprising the share capital, net of treasury shares. 11 --- Interim Financial Report as at 30 June 2024 > Interim Management Report RECLASSIFIED CONSOLIDATED INCOME STATEMENT First Half 2024 First Half 2023 (€ thousands) Non- % on Non- % on Change % on Recurring recurring (*) Total recurring Recurring recurring (*) Total recurring recurring Revenues from sales and 1,177,251 - 1,177,251 100.0% 1,113,770 - 1,113,770 100.0% 5.7% services Operating costs (**) (884,219) (3,466) (887,685) -75.2% (842,483) (11,283) (853,766) -75.6% -5.0% Other income and costs (**) 4,207 - 4,207 0.4% 4,754 - 4,754 0.4% -11.5% Gross operating profit (loss) 297,239 (3,466) 293,773 25.2% 276,041 (11,283) 264,758 24.8% 7.7% (EBITDA) Depreciation, amortization and impairment losses on (55,420) - (55,420) -4.7% (45,351) - (45,351) -4.1% -22.2% non-current assets Right-of-use depreciation (64,053) - (64,053) -5.4% (58,675) - (58,675) -5.3% -9.2% Operating result before the amortization and 177,766 (3,466) 174,300 15.1% 172,015 (11,283) 160,732 15.4% 3.3% impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (25,353) - (25,353) -2.2% (24,515) - (24,515) -2.2% -3.4% impairment Operating profit (loss) (EBIT) 152,413 (3,466) 148,947 12.9% 147,500 (11,283) 136,217 13.2% 3.3% Income, expenses, valuation and adjustments of financial 283 - 283 0.0% 207 - 207 0.0% 36.7% assets Net financial expenses (26,340) - (26,340) -2.2% (19,842) - (19,842) -1.8% -32.7% Exchange differences, inflation accounting and Fair (1,458) - (1,458) -0.1% (4,083) - (4,083) -0.4% 64.3% Value valuation Profit (loss) before tax 124,898 (3,466) 121,432 10.6% 123,782 (11,283) 112,499 11.0% 0.9% Tax (34,537) 979 (33,558) -2.9% (34,472) 3,296 (31,176) -3.1% -0.2% Net profit (loss) 90,361 (2,487) 87,874 7.7% 89,310 (7,987) 81,323 7.9% 1.2% Profit (loss) of minority 81 - 81 0.0% (34) - (34) 0.0% - interests Net profit (loss) attributable 90,280 (2,487) 87,793 7.7% 89,344 (7,987) 81,357 8.0% 1.0% to the Group (*) See table at page 14 for details of non-recurring transactions. (**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. 12 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Second Quarter 2024 Second Quarter 2023 (€ thousands) Non- % on Non- % on Change % on Recurring recurring (*) Total recurring Recurring recurring (*) Total recurring recurring Revenues from sales and 604,143 - 604,143 100.0% 573,517 - 573,517 100.0% 5.3% services Operating costs (**) (444,624) (2,371) (446,995) -73.6% (422,288) (3,391) (425,679) -73.5% -5.4% Other income and costs (**) 930 - 930 0.2% 1,277 - 1,277 0.2% -27.2% Gross operating profit (loss) 160,449 (2,371) 158,078 26.6% 152,507 (3,391) 149,116 26.6% 5.2% (EBITDA) Depreciation, amortization and impairment losses on (28,035) - (28,035) -4.7% (23,361) - (23,361) -4.1% -20.0% non-current assets Right-of-use depreciation (32,828) - (32,828) -5.4% (30,538) - (30,538) -5.3% -7.5% Operating result before the amortization and 99,586 (2,371) 97,215 16.5% 98,608 (3,391) 95,217 17.2% 1.0% impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (12,901) - (12,901) -2.2% (12,566) - (12,566) -2.2% -2.7% impairment Operating profit (loss) (EBIT) 86,685 (2,371) 84,314 14.3% 86,042 (3,391) 82,651 15.0% 0.7% Income, expenses, valuation and adjustments of financial 282 - 282 0.0% 81 - 81 0.0% 248.1% assets Net financial expenses (12,629) - (12,629) -2.0% (9,425) - (9,425) -1.5% -34.0% Exchange differences, inflation accounting and Fair (713) - (713) -0.1% (2,426) - (2,426) -0.4% 70.6% Value valuation Profit (loss) before tax 73,625 (2,371) 71,254 12.2% 74,272 (3,391) 70,881 13.1% -0.9% Tax (19,396) 688 (18,708) -3.2% (19,806) 989 (18,817) -3.6% 2.1% Net profit (loss) 54,229 (1,683) 52,546 8.9% 54,466 (2,402) 52,064 9.5% -0.4% Profit (loss) of minority (383) - (383) -0.1% 7 - 7 0.0% - interests Net profit (loss) attributable 54,612 (1,683) 52,929 9.0% 54,459 (2,402) 52,057 9.5% 0.3% to the Group (*) See table at page 14 for details of non-recurring transactions. (**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. 13 --- Interim Financial Report as at 30 June 2024 > Interim Management Report The costs relating to the non-recurring transactions highlighted above relate specifically to: - for €1,738 thousand, the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily tax, legal and financial consultancies, as well as the expenses related to the organization of the Extraordinary Shareholders Meeting held on 30 April 2024; - for €920 thousand, the notional cost of the free, one-off assignment made by the shareholder Ampliter of its Amplifon shares to the Chief Executive Officer recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”; - for €723 thousand, the second phase of the GAES integration; - for €85 thousand, the Bay Audio integration in Australia. First Half First Half (€ thousands) 2024 2023 Costs incurred to define and implement amendments to the Articles of Association including the (1,738) - enhanced voting rights Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO (920) (10,394) GAES second phase integration costs (723) (889) Bay Audio integration costs (85) - Impact of the non-recurring items on EBITDA (3,466) (11,283) Impact of the non-recurring items on EBIT (3,466) (11,283) Impact of the non-recurring items on profit before tax (3,466) (11,283) Impact of the above items on the tax burden for the period 979 3,296 Impact of the non-recurring items on net profit (2,487) (7,987) Q2 2024 Q2 2023 (€ thousands) Costs incurred to define and implement amendments to the Articles of Association including the (1,738) - enhanced voting rights Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO (412) (3,099) GAES second phase integration costs (155) (292) Bay Audio integration costs (66) - Impact of the non-recurring items on EBITDA (2,371) (3,391) Impact of the non-recurring items on EBIT (2,371) (3,391) Impact of the non-recurring items on profit before tax (2,371) (3,391) Impact of the above items on the tax burden for the period 688 989 Impact of the non-recurring items on net profit (1,683) (2,402) 14 --- Interim Financial Report as at 30 June 2024 > Interim Management Report RECLASSIFIED BALANCE SHEET The reclassified Consolidated Balance Sheet aggregates assets and liabilities according to operating functionality criteria, subdivided by convention into the following three key functions: investments, operations and finance. 06/30/2024 12/31/2023 Change (€ thousands) Goodwill 1,922,878 1,799,574 123,304 Customer lists, non-compete agreements, trademarks and location rights 271,007 255,683 15,324 Software, licenses, other int.ass, wip and advances 162,003 160,906 1,097 Property, plant, and equipment 237,412 221,516 15,896 Right of use assets 492,790 478,153 14,637 Fixed financial assets (1) 30,090 16,704 13,386 Other non-current financial assets (1) 44,438 43,851 587 Total fixed assets 3,160,618 2,976,387 184,231 Inventories 83,063 88,320 (5,257) Trade receivables 215,274 231,253 (15,979) Other receivables 142,502 107,042 35,460 Current assets (A) 440,839 426,615 14,224 Total assets 3,601,457 3,403,002 198,455 Trade payables (321,669) (358,955) 37,286 Other payables (2) (358,468) (379,290) 20,822 Provision for risks (current portion) (1,828) (1,268) (560) Short term liabilities (B) (681,965) (739,513) 57,548 Net working capital (A) - (B) (241,126) (312,898) 71,772 Derivative instruments (3) 10,480 12,933 (2,453) Deferred tax assets 78,358 82,701 (4,343) Deferred tax liabilities (102,871) (98,451) (4,420) Provisions for risks (non-current portion) (20,716) (19,379) (1,337) Employee benefits (non-current portion) (12,357) (12,963) 606 Loan fees (4) 2,392 3,007 (615) Other long-term payables (214,545) (180,098) (34,447) NET INVESTED CAPITAL 2,660,233 2,451,239 208,994 Shareholders' equity 1,138,354 1,100,919 37,435 Third parties' equity 233 759 (526) Net equity 1,138,587 1,101,678 36,909 Medium/Long term net financial debt (4) 678,136 719,428 (41,292) Short term net financial debt (4) 331,149 132,702 198,447 Total net financial debt 1,009,285 852,130 157,155 Lease liabilities 512,361 497,431 14,930 Total lease liabilities & net financial debt 1,521,646 1,349,561 172,085 NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT 2,660,233 2,451,239 208,994 15 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Notes for reconciling the condensed balance sheet with the statutory balance sheet: (1) “Financial fixed assets” and “Other non-current financial assets” include equity interests valued by using the net equity method, financial assets at fair value through profit and loss and other non-current assets; (2) “Other payables” includes other liabilities, accrued liabilities and deferred income, current portion of liabilities for employees’ benefits and tax liabilities; (3) "Derivatives instruments" includes cash flow hedging instruments not included in the item “Net medium and long-term financial indebtedness”; (4) The item "loan fees" is presented in the balance sheet as a direct reduction of the short-term and medium/long- term components of the items "financial payables" and "financial liabilities" for the short-term and long-term portions, respectively. 16 --- Interim Financial Report as at 30 June 2024 > Interim Management Report CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT The condensed consolidated cash flow statement is a summarized version of the reclassified statement of cash flows set out in the following pages and its purpose is, starting from the EBIT, to detail the cash flows from or used in operating, investing and financing activities. First Half 2024 First Half 2023 (€ thousands) Operating profit (loss) (EBIT) 148,947 136,217 Amortization, depreciation and write-downs 144,826 128,541 Provisions, other non-monetary items and gain/losses from disposals 9,554 21,028 Net financial expenses (25,134) (20,732) Taxes paid (44,208) (31,660) Changes in net working capital (58,257) (39,225) Cash flow provided by (used in) operating activities before repayment of lease 175,728 194,169 liabilities Repayment of lease liabilities (63,568) (56,152) Cash flow provided by (used in) operating activities (A) 112,160 138,017 Cash flow provided by (used in) operating investing activities (B) (65,338) (61,907) Free Cash Flow (A) + (B) 46,822 76,110 Net cash flow provided by (used in) acquisitions (C) (142,737) (59,125) Cash flow provided by (used in) investing activities (B) + (C) (208,075) (121,032) Cash flow provided by (used in) operating activities and investing activities (95,915) 16,985 Dividends (65,593) (65,361) Treasury Shares - - Fees paid on medium/long-term financing (105) - Hedging instruments - (1,483) Change in non-current assets 5,799 (615) Net cash flow from the period (155,814) (50,474) Net financial indebtedness at the beginning of the period net of lease liabilities (852,130) (829,993) Effect of exchange rate fluctuations on net financial debt (1,341) (3,344) Changes in net financial debt (155,814) (50,474) Net financial indebtedness at the end of the period net of lease liabilities (1,009,285) (883,811) The impact of non-recurring transactions on free cash flow in the period is shown in the following table. (€ thousands) First Half 2024 First Half 2023 Free cash flow 46,822 76,110 Free cash flow generated by non-recurring transactions (see page 45 for details) (830) (2,380) Free cash flow generated by recurring transactions 47,622 78,490 17 --- Interim Financial Report as at 30 June 2024 > Interim Management Report INCOME STATEMENT REVIEW Consolidated income statement by segment and geographic area First Half 2024 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 757,467 240,418 179,185 181 1,177,251 Operating costs (533,912) (180,528) (131,935) (41,310) (887,685) Other income and costs 2,184 1,821 (95) 297 4,207 Gross operating profit (loss) (EBITDA) 225,739 61,711 47,155 (40,832) 293,773 Depreciation, amortization and impairment of (23,522) (8,942) (9,502) (13,454) (55,420) non-current assets Right-of-use depreciation (41,455) (6,985) (14,437) (1,176) (64,053) Operating result before the amortization and 160,762 45,784 23,216 (55,462) 174,300 impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (17,196) (2,133) (6,024) - (25,353) impairment Operating profit (loss) (EBIT) 143,566 43,651 17,192 (55,462) 148,947 Income, expenses, revaluation and - - - - 283 adjustments of financial assets Net financial expenses - - - - (26,340) Exchange differences, inflation accounting and - - - - (1,458) Fair Value valuation Profit (loss) before tax - - - - 121,432 Tax - - - - (33,558) Net profit (loss) - - - - 87,874 Profit (loss) of minority interests - - - - 81 Net profit (loss) attributable to the Group - - - - 87,793 First Half 2024 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 757,467 240,418 179,185 181 1,177,251 Gross operating profit (loss) (EBITDA) 226,462 61,711 47,240 (38,174) 297,239 Operating profit (loss) before the depreciation 161,485 45,784 23,301 (52,804) 177,766 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 144,289 43,651 17,277 (52,804) 152,413 Profit (loss) before tax - - - - 124,898 Net profit (loss) - - - - 90,361 Net profit (loss) attributable to the Group - - - - 90,280 18 --- Interim Financial Report as at 30 June 2024 > Interim Management Report First Half 2023 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 735,482 212,661 165,381 246 1,113,770 Operating costs (*) (521,746) (157,095) (122,773) (52,152) (853,766) Other income and costs (*) 2,753 1,538 14 449 4,754 Gross operating profit (loss) (EBITDA) 216,489 57,104 42,622 (51,457) 264,758 Depreciation, amortization and impairment (20,283) (6,061) (7,200) (11,807) (45,351) of non-current assets Right-of-use depreciation (38,673) (5,390) (13,479) (1,133) (58,675) Operating result before the amortization and impairment of PPA related assets 157,533 45,653 21,943 (64,397) 160,732 (EBITA) PPA related depreciation, amortization and (16,316) (2,260) (5,897) (42) (24,515) impairment Operating profit (loss) (EBIT) 141,217 43,393 16,046 (64,439) 136,217 Income, expenses, revaluation and - - - - 207 adjustments of financial assets Net financial expenses - - - - (19,842) Exchange differences, inflation accounting - - - - (4,083) and Fair Value valuation Profit (loss) before tax - - - - 112,499 Tax - - - - (31,176) Net profit (loss) - - - - 81,323 Profit (loss) of minority interests - - - - (34) Net profit (loss) attributable to the Group - - - - 81,357 (*) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. First Half 2023 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 735,482 212,661 165,381 246 1,113,770 Gross operating profit (loss) (EBITDA) 217,378 57,104 42,622 (41,063) 276,041 Operating result before the amortization and impairment of PPA related assets 158,422 45,653 21,942 (54,002) 172,015 (EBITA) Operating profit (loss) (EBIT) 142,106 43,393 16,046 (54,045) 147,500 Profit (loss) before tax - - - - 123,782 Net profit (loss) - - - - 89,310 Net profit (loss) attributable to the Group - - - - 89,344 19 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Second Quarter 2024 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 381,409 129,597 93,021 116 604,143 Operating costs (264,170) (95,212) (69,959) (17,654) (446,995) Other income and costs (233) 1,086 (69) 146 930 Gross operating profit (loss) (EBITDA) 117,006 35,471 22,993 (17,392) 158,078 Depreciation, amortization and impairment of (11,828) (4,613) (4,806) (6,788) (28,035) non-current assets Right-of-use depreciation (20,907) (3,615) (7,712) (594) (32,828) Operating result before the amortization and 84,271 27,243 10,475 (24,774) 97,215 impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (8,661) (1,188) (3,052) - (12,901) impairment Operating profit (loss) (EBIT) 75,610 26,055 7,423 (24,774) 84,314 Income, expenses, revaluation and - - - - 282 adjustments of financial assets Net financial expenses - - - - (12,629) Exchange differences, inflation accounting and - - - - (713) Fair Value valuation Profit (loss) before tax - - - - 71,254 Tax - - - - (18,708) Net profit (loss) - - - - 52,546 Profit (loss) of minority interests - - - - (383) Net profit (loss) attributable to the Group - - - - 52,929 Second Quarter 2024 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 381,409 129,597 93,021 116 604,143 Gross operating profit (loss) (EBITDA) 117,161 35,471 23,059 (15,242) 160,449 Operating profit (loss) before the depreciation 84,426 27,243 10,542 (22,625) 99,586 and amortization of PPA related assets (EBITA) Operating profit (loss) (EBIT) 75,765 26,055 7,490 (22,625) 86,685 - - - - Profit (loss) before tax 73,625 - - - - Net profit (loss) 54,229 - - - - Net profit (loss) attributable to the Group 54,612 20 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Second Quarter 2023 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 375,775 111,797 85,786 159 573,517 Operating costs (*) (260,580) (78,355) (64,822) (21,661) (427,962) Other income and costs (*) 1,870 (2,322) (83) 398 3,352 Gross operating profit (loss) (EBITDA) 117,065 32,274 20,881 (21,104) 149,116 Depreciation, amortization and impairment (10,269) (2,906) (3,764) (6,422) (23,361) of non-current assets Right-of-use depreciation (19,741) (2,719) (7,512) (566) (30,538) Operating result before the amortization and impairment of PPA related assets 87,055 26,649 9,605 (28,092) 95,217 (EBITA) PPA related depreciation, amortization and (8,245) (1,383) (2,917) (21) (12,566) impairment Operating profit (loss) (EBIT) 78,810 25,266 6,688 (28,113) 82,651 Income, expenses, revaluation and - - - - 81 adjustments of financial assets Net financial expenses - - - - (9,425) Exchange differences, inflation accounting - - - - (2,426) and Fair Value valuation Profit (loss) before tax - - - - 70,881 Tax - - - - (18,817) Net profit (loss) - - - - 52,064 Profit (loss) of minority interests - - - - 7 Net profit (loss) attributable to the Group - - - - 52,057 (*) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information. Second Quarter 2023 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 375,774 111,798 85,786 159 573,517 Gross operating profit (loss) (EBITDA) 117,357 32,274 20,881 (18,005) 152,507 Operating profit (loss) before the depreciation and amortization of PPA 87,346 26,649 9,605 (24,992) 98,608 related assets (EBITA) Operating profit (loss) (EBIT) 79,101 25,266 6,689 (25,014) 86,042 Profit (loss) before tax - - - - 74,272 Net profit (loss) - - - - 54,466 Net profit (loss) attributable to the Group - - - - 54,459 21 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Revenues from sales and services First Half 2024 First Half 2023 Change Change % (€ thousands) Revenues from sales and 1,177,251 1,113,770 63,481 5.7% services Second Quarter 2024 Second Quarter 2023 Change Change % (€ thousands) Revenues from sales and 604,143 573,517 30,626 5.3% services Consolidated revenues from sales and services amounted to €1,177,251 thousand in the first six months of 2024, an increase of €63,481 thousand (+5.7%) with respect to the first half of prior year. The increase against the first half of 2023 is explained for €50,412 thousand (+4.6%) by organic growth and for €38,301 thousand (+3.4%) by acquisitions. The foreign exchange effect was negative for €25,232 thousand (-2.3%). Revenues of the Argentine subsidiary were impacted by the inflation accounting used pursuant to IAS 29 (Inflation Accounting), which had a positive impact of 0.3% on the Group’s organic growth and a negative impact on the exchange rate effect. The performance was positive in all the geographic areas, but reflects the different market dynamics: EMEA was impacted by what continues to be a soft market; AMERICAs was confirmed as the area with the highest organic growth, even though the market was slower than in the first quarter in the year; APAC reported strong revenue growth to which all the area’s countries contributed. In the second quarter alone, consolidated revenues from sales and services amounted to €604,143 thousand, an increase of €30,626 thousand (+5.3%) compared to the second quarter of 2023, explained for €20,015 thousand (+3.5%) by organic growth and for €21,078 thousand (+3.6%) by acquisitions while the foreign exchange effect was negative for €10,467 thousand (- 1.8%). 22 --- Interim Financial Report as at 30 June 2024 > Interim Management Report The breakdown of revenues from sales and services by geographic area is shown below. % for % for Change % in H1 H1 geographic geographic local (€ thousands) 2024 area 2023 area Change Change % Exchange diff. currency EMEA 757,467 64.4% 735,482 66.0% 21,985 3.0% 854 2.9% Americas 240,418 20.4% 212,661 19.1% 27,757 13.1% (21,375) 23.2% Asia Pacific 179,185 15.2% 165,381 14.9% 13,804 8.3% (4,711) 11.2% Corporate 181 0.0% 246 0.0% (65) -26.4% - -26.4% Total 1,177,251 100.0% 1,113,770 100.0% 63,481 5.7% (25,232) 8.0% Europe, Middle-East, Africa 2024 2023 Change Change % Period (€ thousand) I quarter 376,058 359,707 16,351 4.5% II quarter 381,409 375,775 5,634 1.5% I Half Year 757,467 735,482 21,985 3.0% Consolidated revenues from sales and services amounted to €757,467 thousand in the first six months of 2024, an increase of €21,985 thousand (+3.0%) compared to the same period of the prior year, of which €8,182 thousand (+1.1%) is attributable to organic growth. Acquisitions contributed €12,949 thousand (+1.8%) and exchange differences had a positive impact of €854 thousand (+0.1%). In the second quarter the organic performance reflected the general softness of the reference market, and especially of the French one, as well as some contingent operational challenges, now resolved, in Spain. The other countries of the area recorded a solid performance. In the second quarter alone, consolidated revenues from sales and services amounted to €381,409 thousand, an increase of €5,634 thousand (+1.5%) against the comparison period. This increase is explained mainly by acquisitions which contributed €7,741 thousand (+2.1%), while organic growth was negative for €2,098 thousand (-0.6%) and exchange differences were slightly negative at €9 thousand. 23 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Americas 2024 2023 Change Change % Period (€ thousand) I quarter 110,821 100,864 9,957 9.9% II quarter 129,597 111,797 17,800 15.9% I Half Year 240,418 212,661 27,757 13.1% Consolidated revenues from sales and services amounted to €240,418 thousand in the first six months of 2024, an increase of €27,757 thousand (+13.1%) compared to the first half of 2023, attributable for €30,313 thousand (+14.4%) to organic growth which was fueled primarily by the outstanding performance of Miracle-Ear Direct Retail and Amplifon Hearing Health Care and for €18,819 thousand (+8.8%) by acquisitions which includes the Uruguayan subsidiaries which were consolidated for the first time. The foreign exchange effect was negative for €21,375 thousand (-10.1%). Revenues of the Argentine subsidiary were impacted by high inflation accounting used in accordance with IAS 29 (Inflation Accounting), which had a positive impact of 1.5% on organic growth and a negative impact on the exchange effect. In the second quarter alone, consolidated revenues from sales and services amounted to 129,597 thousand, an increase of €17,800 thousand (+15.9%) against the comparison period attributable for 17,193 thousand (+15.4%) to organic growth and for €10,477 thousand (+9.3%) to acquisitions. The exchange effect was negative for €9,870 thousand (-8.8%). Asia Pacific 2024 2023 Change Change % Period (€ thousand) I quarter 86,164 79,595 6,569 8.3% II quarter 93,021 85,786 7,235 8.4% I Half Year 179,185 165,381 13,804 8.3% Revenues from sales and services amounted to €179,185 thousand in the first six months of 2024, an increase of €13,804 thousand (+8.3%) compared to the same period of 2023 explained for €11,982 thousand (+7.2%) by organic growth and for €6,533 thousand (+4.0%) by acquisitions made in China. The foreign exchange effect was negative for €4,711 thousand (-2.9%). In the second quarter alone, revenues from sales and services amounted to €93,021 thousand, an increase of €7,235 thousand (+8.4%) attributable for €4,962 thousand (+5.8%) to organic growth and for €2,860 thousand (+3.3%) to acquisitions while the foreign exchange effect was negative for €588 thousand (-0.7%). 24 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Gross operating profit (EBITDA) First Half 2024 First Half 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Gross operating profit (loss) (EBITDA) 297,239 (3,466) 293,773 276,041 (11,283) 264,758 Second Quarter 2024 Second Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Gross operating profit (loss) (EBITDA) 160,449 (2,371) 158,078 152,507 (3,391) 149,116 Gross operating profit (EBITDA) amounted to €293,773 thousand in the first six months of 2024, an increase of €29,015 thousand (+11.0%) with respect to the comparison period. The EBITDA margin came to 25.0%, 1.2 p.p. higher than in the comparison period. The costs relating to the non-recurring transactions highlighted above relate specifically: - for €1,738 thousand, the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily tax, legal and financial consultancies, as well as the expenses related to the organization of the Extraordinary Shareholders Meeting held on 30 April 2024; - for €920 thousand, the notional cost of the free, one-off assignment made by the shareholder Ampliter of its Amplifon shares to the Chief Executive Officer recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”; - for €723 thousand, the second phase of the GAES integration; - for €85 thousand, the Bay Audio integration in Australia. In the first six months of 2023 non-recurring expenses amounted to €11,283 thousand. Net of these items, EBITDA would have been €21,198 thousand (+7.7%) higher than in the first six months of 2023 with the EBITDA margin up +0.4 p.p. In the second quarter alone, EBITDA amounted to €158,078 thousand (26.2% of revenues from sales and services), an increase of €8,962 thousand (+6.0%) against the comparison period with a 0.2 p.p. increase in the EBITDA margin. The result for the quarter reflects non-recurring expenses of €2,371 thousand attributable: - for €1,738 thousand, the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily the tax, legal and financial advisory, as well as the expenses related to the organization of the Extraordinary Shareholders Meeting held on 30 April 2024; - for €412 thousand, the notional cost of the free, one-off assignment made by the shareholder Ampliter of its Amplifon shares to the Chief Executive Officer recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”; 25 --- Interim Financial Report as at 30 June 2024 > Interim Management Report - for €155 thousand, the second phase of the GAES integration; - for €66 thousand, the Bay Audio integration in Australia. In the second quarter of 2023 non-recurring expenses amounted to €3,391 thousand. Net of this item, recurring EBITDA would have been €7,941 thousand (+5.2%) higher than in the second quarter of 2023 with the EBITDA margin in line with the comparison period. The breakdown of EBITDA by geographic region is shown below. H1 H1 EBITDA EBITDA Change Change % Margin Margin 2024 2023 (€ thousands) EMEA 225,739 29.8% 216,489 29.4% 9,250 4.3% Americas 61,711 25.7% 57,104 26.9% 4,607 8.1% Asia Pacific 47,155 26.3% 42,622 25.8% 4,533 10.6% Corporate (*) (40,832) -3.5% (51,457) -4.6% 10,625 20.6% Total 293,773 25.0% 264,758 23.8% 29,015 11.0% Q2 EBITDA Q2 EBITDA Change Change % (€ thousands) 2024 Margin 2023 Margin EMEA 117,006 30.7% 117,065 31.2% (59) -0.1% Americas 35,471 27.4% 32,274 28.9% 3,197 9.9% Asia Pacific 22,993 24.7% 20,881 24.3% 2,112 10.1% Corporate (*) (17,392) -2.9% (21,104) -3.7% 3,712 17.6% Total 158,078 26.2% 149,116 26.0% 8,962 6.0% (*) Centralized costs are shown as a percentage of the Group’s total sales. The breakdown of recurring EBITDA by geographic region is shown below. H1 EBITDA H1 EBITDA Change Change % Margin Margin (€ thousands) 2024 2023 EMEA 226,462 29.9% 217,378 29.6% 9,084 4.2% Americas 61,711 25.7% 57,104 26.9% 4,607 8.1% Asia Pacific 47,240 26.4% 42,622 25.8% 4,618 10.8% Corporate (*) (38,174) -3.2% (41,063) -3.7% 2,889 7.0% Total 297,239 25.2% 276,041 24.8% 21,198 7.7% Q2 EBITDA Q2 EBITDA Change Change % (€ thousands) 2024 Margin 2023 Margin EMEA 117,161 30.7% 117,357 31.2% (196) -0.2% Americas 35,471 27.4% 32,274 28.9% 3,197 9.9% Asia Pacific 23,059 24.8% 20,881 24.3% 2,178 10.4% Corporate (*) (15,242) -2.5% (18,005) -3.1% 2,762 15.3% Total 160,449 26.6% 152,507 26.6% 7,941 5.2% (*) Centralized costs are shown as a percentage of the Group’s total sales. 26 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Europe, Middle-East, Africa Gross operating profit (EBITDA) amounted to €225,739 thousand in the first six months of 2024, an increase of €9,250 thousand (+4.3%) with respect to the comparison period. The EBITDA margin came to 29.8 %, an increase of 0.4 p.p. compared to the first half of 2023. The result for the reporting period was impacted for €723 thousand by non-recurring expenses relating to the second phase of the GAES integration. In the first six months of 2023 non-recurring expenses amounted to €889 thousand. Net of this item, EBITDA would have been €9,084 thousand higher (+4.2%) than in the first six months of 2023 with the EBITDA margin up +0.3 p.p. In the second quarter alone, EBITDA amounted to €117,006 thousand, a decrease against the comparison period of €59 thousand (-0.1%). The EBITDA margin was 0.5 p.p. lower than in comparison period coming in at 30.7%. The result for the quarter was impacted for €155 thousand by non-recurring expenses relating to the second phase of the GAES integration. In the second quarter of 2023 non-recurring expenses amounted to €291 thousand. Net of this item, recurring EBITDA would have been €196 thousand (-0.2%) lower compared to the second quarter of 2023 with the EBITDA margin down -0.5 p.p. Americas Gross operating profit (EBITDA) amounted to €61,711 thousand in the first six months of 2024, an increase of €4,607 thousand (+8.1%) with respect to the comparison period. The EBITDA margin came to 25.7 %, down 1.2 p.p. against the second quarter of 2023. In the second quarter alone EBITDA came to €35,471 thousand, an increase of €3,197 thousand (+9.9%) against the comparison period. The EBITDA margin was 1.5 p.p. lower than in the comparison period, coming in at 27.4%. Asia Pacific Gross operating profit (EBITDA) amounted to €47,155 thousand in the first six months of 2024, an increase of €4,533 thousand (+10.6%) with respect to the comparison period. The EBITDA margin came to 26.3 %, +0.5 p.p. higher than in the first half of 2023. Non-recurring expenses of €85 thousand were incurred in the reporting period. Net of this item, EBITDA would have been €4,618 thousand higher (+10.8%) with the EBITDA margin up +0.6 p.p. In the second quarter alone EBITDA amounted to €22,993 thousand, an increase of €2,112 thousand (+10.1%) with respect to the comparison period. The EBITDA margin reached 24.7%, an increase of +0.4 p.p. against the comparison period. In the second quarter of 2024 non-recurring expenses amounted to €66 thousand. 27 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Net of these items, recurring EBITDA would have been €2,178 thousand (+10.4%) higher with the EBITDA margin up +0.5 p.p. Corporate In the first six months of 2024 the net cost of centralized corporate functions (corporate bodies, general management, business development, procurement, treasury, legal affairs, human resources, IT systems, global marketing and internal audit) which do not qualify as operating segments under IFRS 8 amounted to €40,832 thousand, a decrease of €10,625 thousand (20.6%) with respect to the same period of the prior year. The EBITDA margin was 3.5 p.p. (1.1.p.p. higher than in the first six months of 2023). The result for the reporting period reflects the non-recurring expenses of €2,658 thousand explained for €1,738 thousand by the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily the tax, legal and financial consultancies, and for €902 thousand the by the notional cost recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”. In the first six months of 2023 non-recurring expenses of €10,394 thousand were also recognized. Net of these items, costs would have been €2,889 thousand (7.0%) lower than in the first six months of 2023, with the margin down by 0.5. p.p. In the second quarter, the net cost for corporate functions amounted to €17,392 thousand (2.9% of the Group’s revenues from sales and services), a decrease of € 3,712 thousand (-17.6%) compared to the second quarter of 2023. The result for the second quarter was impacted for €2,150 thousand by non-recurring expenses explained for €1,738 thousand by the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, including the enhanced voting rights and for €412 thousand the notional cost recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”. Net of these items, costs would have been €2,763 thousand (15.3%) lower than in the second quarter of 2023, with the margin down by 0.6. p.p. 28 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Operating Profit (EBIT) First Half 2024 First Half 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Operating profit (loss) (EBIT) 152,413 (3,466) 148,947 147,500 (11,283) 136,217 Second Quarter 2024 Second Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Operating profit (loss) (EBIT) 86,685 (2,371) 84,314 86,042 (3,391) 82,651 Operating profit (EBIT) amounted to €148,947 thousand in the first six months of 2024, an increase of €12,730 thousand (+9.3%) with respect to the comparison period. The EBIT margin came to 12.7%, an increase of 0.5 p.p. against the comparison period. The reporting period was impacted for €3,466 thousand by the same non-recurring expenses described in the section on EBITDA. In the first six months of 2023 non-recurring expenses amounted to €11,283 thousand. Net of these items, EBIT would have been €4,914 thousand higher (+3.3%) than in the first six months of 2023, with the EBIT margin down -0.3 p.p. With respect to the gross operating profit (EBITDA), EBIT was also impacted by an increase in amortization and depreciation stemming from network expansion, the investments made in innovation and digital transformation, as well as higher amortization for the right of use assets and the initial recognition of assets in accordance with Purchase Price Allocation accounting. In the second quarter alone operating profit (EBIT) amounted to €84,314 thousand, an increase of €1,664 thousand (+2.0%) with respect to the comparison period. The EBIT margin came to 14.0%, 0.4 p.p. lower in the comparison period. The reporting period was impacted for €2,371 thousand by the same non-recurring expenses described in the section on EBITDA. In the second quarter of 2023 non-recurring expenses amounted to €3,391 thousand. Net of this item, recurring EBIT would have been €644 thousand higher (+0.7%) than in the second quarter of 2023, with the EBIT margin down -0.7 p.p. 29 --- Interim Financial Report as at 30 June 2024 > Interim Management Report The breakdown of EBIT by geographic area is shown below. H1 EBIT H1 EBIT Margin Change Change % Margin (€ thousands) 2024 2023 EMEA 143,566 19.0% 141,217 19.2% 2,349 1.7% Americas 43,651 18.2% 43,393 20.4% 258 0.6% Asia Pacific 17,192 9.6% 16,046 9.7% 1,146 7.1% Corporate (*) (55,462) -4.7% (64,439) -5.8% 8,977 13.9% Total 148,947 12.7% 136,217 12.2% 12,730 9.3% Q2 EBIT Q2 EBIT Margin Change Change % (€ thousand) 2024 Margin 2023 EMEA 75,610 19.8% 78,810 21.0% (3,199) -4.1% Americas 26,055 20.1% 25,266 22.6% 789 3.1% Asia Pacific 7,423 8.0% 6,688 7.8% 735 11.0% Corporate (*) (24,774) -4.1% (28,113) -4.9% 3,339 11.9% Total 84,314 14.0% 82,651 14.4% 1,664 2.0% (*) Centralized costs are shown as a percentage of the Group’s total sales. The breakdown of EBIT by geographic area with reference to recurring operations is shown below. H1 H1 EBIT EBIT Margin Change Change % Margin (€ thousands) 2024 2023 EMEA 144,289 19.0% 142,106 19.3% 2,183 1.5% Americas 43,651 18.2% 43,393 20.4% 258 0.6% Asia Pacific 17,277 9.6% 16,046 9.7% 1,231 7.7% Corporate (*) (52,804) -4.5% (54,045) -4.9% 1,241 2.3% Total 152,413 12.9% 147,500 13.2% 4,913 3.3% Q2 EBIT Q2 EBIT Margin Change Change % (€ thousand) 2024 Margin 2023 EMEA 75,765 19.9% 79,101 21.1% (3,336) -4.2% Americas 26,055 20.1% 25,266 22.6% 789 3.1% Asia Pacific 7,490 8.1% 6,689 7.8% 801 12.0% Corporate (*) (22,625) -3.7% (25,014) -4.4% 2,389 9.6% Total 86,685 14.3% 86,042 15.0% 643 0.7% (*) Centralized costs are shown as a percentage of the Group’s total sales. 30 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Europe, Middle East, Africa Operating profit (EBIT) amounted to €143,566 thousand in the first six months of 2024, an increase of €2,349 thousand (+1.7%) with respect to the comparison period. The EBIT margin came to 19.0%, 0.2 p.p. lower than in the comparison period. The result was impacted for €723 thousand by the same non-recurring expenses described in the section on EBITDA. In the first six months of 2023 non-recurring expenses amounted to €889 thousand. Net of these items, EBIT would have been €2,183 thousand higher (+1.5%) than in the first six months of 2023, with the EBIT margin down 0.3 p.p. In the second quarter alone, EBIT was €3,199 thousand (-4.1%) lower than in the comparison period, coming in at €75,610 thousand. The EBIT margin came to 19.8%, 1.2 p.p. lower than in the comparison period. The result was impacted for €155 thousand by the same non-recurring expenses described in the section on EBITDA. In the second quarter of 2023 non-recurring expenses amounted to €291 thousand. Net of this item, recurring EBIT would have been €3,336 thousand lower (-4.2%) than in the second quarter of 2023, with the EBIT margin down 1.2 p.p. Americas Operating profit (EBIT) amounted to €43,651 thousand in the first six months of 2024, an increase of €258 thousand (+0.6%) with respect to the comparison period. The EBIT margin was 2.2 p.p. lower than in the first half of 2023, coming in at 18.2%. In the second quarter alone, EBIT rose €789 thousand (+3.1%) to €26,055. The EBIT margin was 2.5 p.p. lower at 20.1%. Asia Pacific Operating profit (EBIT) amounted to €17,192 thousand in the first six months of 2024, an increase of €1,146 thousand (+7.1%) with respect to the comparison period. The EBIT margin came to 9.6%, 0.1 p.p. lower than in the half of 2023. The result of the period was impacted for €85 thousand by the same non-recurring expenses described in the section on EBITDA. Net of these items, EBIT would have been €1,231 thousand higher (+7.7%), with the EBIT margin down 0.1 p.p. In the second quarter alone, operating profit (EBIT) amounted to €7,423 thousand, an increase of €735 thousand (+11.0%) with respect to the comparison period. The EBIT margin came to 8.0%, 0.2 p.p. higher than in the second quarter of 2023. 31 --- Interim Financial Report as at 30 June 2024 > Interim Management Report The result for the second quarter of 2024 was impacted for €66 thousand by the same non- recurring expenses described in the section on EBITDA. Net of these items, EBIT would have been €801 thousand higher (+12.0%), with the EBIT margin up 0.3 p.p. Corporate The net Corporate costs at the EBIT level amounted to €55,462 thousand in the first six months of 2024 (-4.7% of the revenues generated by the Group’s sales and services), a decrease of €8,977 thousand against the first half of 2023. The result posted in the reporting period was impacted for €2,658 thousand by the same non- recurring expenses described in the section on EBITDA. In the first half of 2023 non-recurring expenses amounted to €10,394 thousand. Net of these items, the costs would have been €1,241 thousand lower (-4.5%) with the margin down 0.4 p.p. In the second quarter alone, the net Corporate costs amounted to €24,774 thousand (-4.1% of the revenues generated by the Group’s sales and services), a decrease of €3,339 thousand (-11.9%) compared to the second quarter of 2023. The second quarter of 2024 was impacted for €2,149 thousand by the same non-recurring expenses described in the section on EBITDA. In the second quarter of 2023 non-recurring expenses amounted to €3,099 thousand. Net of these items, the costs would have been €2,390 thousand lower (-9.6%) with the margin down 0.6 p.p. 32 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Profit before taxes First Half 2024 First Half 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Profit before taxes 124,898 (3,466) 121,432 123,782 (11,283) 112,499 Second Quarter 2024 Second Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Profit before taxes 73,625 (2,371) 71,254 74,272 (3,391) 70,881 Profit before tax amounted to €121,432 thousand in the first six months of 2024, an increase of €8,933 thousand (+7.9%) against the comparison period, with a gross profit margin of 10.3% (+0.2 p.p. with respect to the comparison period). The results for the reporting period were impacted for €3,466 thousand by the same non- recurring expenses described in the section on EBITDA. In the first six months of 2023 non- recurring expenses of €11,283 thousand were incurred. On a recurring basis, profit before tax was €1,116 thousand higher (+0.9%) compared to the first six months of 2023, with the profit margin down 0.5 p.p. In addition to the change in EBIT described above, profit before tax was impacted for €3,797 thousand by increased financial expenses. The increase in interest payable on short-term credit lines, on the floating rate portion of medium/long-term debt and on lease accounting attributable to both greater average debt and higher interest rates compared to the first half of 2023 was partially offset by lower foreign exchange expenses, as well as financial income stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 (“Decreto Rilancio”). In the second quarter alone, profit before tax was €373 thousand (+0.5%) higher, coming in at €71,254 thousand. The gross profit margin was 11.8% (-0.6 p.p. compared to the comparison period). The increase in financial expenses amounted to €1,289 thousand. The results for the second quarter of 2024 were impacted for €2,371 thousand by the same non- recurring expenses described in the section on EBITDA. In the second quarter of 2023 non- recurring expenses of €3,391 thousand were incurred. Net of this item, there would have been a decrease of €647 thousand (-0.9%) compared to the second quarter of 2023. The gross profit margin would have reached 12.2% or 0.8 p.p. less than in the second quarter of 2023. 33 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Group net profit First Half 2024 First Half 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Group net profit 90,280 (2,487) 87,793 89,344 (7,987) 81,357 Second Quarter 2024 Second Quarter 2023 (€ thousand) Non- Non- Recurring Total Recurring Total recurring recurring Group net profit 54,612 (1,683) 52,929 54,459 (2,402) 52,057 The Group’s net profit came to €87,793 thousand in the first six months of 2024, an increase of €6,436 thousand (+7.9%) against the comparison period, with a profit margin of 7.5% (+0.2 p.p. higher against the comparison period). The result for the reporting period was impacted for €2,487 thousand by the same non-recurring expenses (described above), net of the tax effect. In the first six months of 2023 net non- recurring expenses amounted to €7,987 thousand. On a recurring basis, the Group’s net profit was €936 thousand (+1.0%) higher than in the first six months of 2023, with the profit margin down 0.3 p.p. The tax rate was 27.6% in the reporting period compared to 27.7% in the first half of 2023. In the second quarter alone the Group’s net profit reached €52,929 thousand (8.8% of revenues from sales and services), showing an increase of €872 thousand (+1.7%) against the comparison period, with the profit margin down -0.3 p.p. Net of the non-recurring expenses, the Group’s net profit would have been €153 thousand higher (+0.3%), with the profit margin down -0.5 p.p. 34 --- Interim Financial Report as at 30 June 2024 > Interim Management Report BALANCE SHEET REVIEW (*) Consolidated balance sheet by geographical area 06/30/2024 (€ thousands) EMEA Americas APAC Eliminations Total Goodwill 1,005,129 300,607 617,142 - 1,922,878 Non-competition agreements, trademarks, customer lists and lease 183,275 32,479 55,253 - 271,007 rights Software, licenses, other intangible fixed assets, fixed assets in progress and 123,102 30,039 8,862 - 162,003 advances Property, plant, and equipment 157,790 36,989 42,633 - 237,412 Right-of-use assets 378,228 48,618 65,944 - 492,790 Financial fixed assets 22,997 6,860 233 - 30,090 Other non-current financial assets 40,041 2,587 1,810 - 44,438 Non-current assets 1,910,562 458,179 791,877 - 3,160,618 Inventories 64,506 8,557 10,000 - 83,063 Trade receivables 221,811 61,643 20,256 (88,436) 215,274 Other receivables 116,217 17,198 9,282 (195) 142,502 Current assets (A) 402,534 87,398 39,538 (88,631) 440,839 Operating assets 2,313,096 545,577 831,415 (88,631) 3,601,457 Trade payables (282,892) (75,346) (51,867) 88,436 (321,669) Other payables (285,743) (37,624) (35,296) 195 (358,468) Provisions for risks and charges (current (1,170) (658) - - (1,828) portion) Current liabilities (B) (569,805) (113,628) (87,163) 88,631 (681,965) Net working capital (A) - (B) (167,271) (26,230) (47,625) - (241,126) Derivative instruments 10,480 - - - 10,480 Deferred tax assets 57,315 9,159 11,884 - 78,358 Deferred tax liabilities (64,730) (22,973) (15,168) - (102,871) Provisions for risks and charges (non- (18,898) (925) (893) - (20,716) current portion) Liabilities for employees’ benefits (non- (11,632) (20) (705) - (12,357) current portion) Loan fees 2,392 - - - 2,392 Other non-current liabilities (194,974) (14,487) (5,084) - (214,545) NET INVESTED CAPITAL 1,523,244 402,703 734,286 - 2,660,233 Group net equity 1,138,354 Minority interests 233 Total net equity 1,138,587 Net medium and long-term financial 678,136 indebtedness Net short-term financial indebtedness 331,149 Total net financial indebtedness 1,009,285 Lease liabilities 393,301 52,556 66,504 - 512,361 Total lease liabilities & net financial 1,521,646 indebtedness NET EQUITY, LEASE LIABILITIES AND NET 2,660,233 FINANCIAL INDEBTEDNESS (*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA. 35 --- Interim Financial Report as at 30 June 2024 > Interim Management Report 12/31/2023 (€ thousands) EMEA Americas APAC Eliminations Total Goodwill 955,383 237,178 607,013 - 1,799,574 Non-competition agreements, trademarks, customer lists and lease 176,887 21,126 57,670 - 255,683 rights Software, licenses, other intangible fixed assets, fixed assets in progress and 123,344 29,520 8,042 - 160,906 advances Property, plant, and equipment 148,081 29,929 43,506 - 221,516 Right-of-use assets 373,293 44,949 59,911 - 478,153 Financial fixed assets 3,629 12,841 234 - 16,704 Other non-current financial assets 39,701 2,440 1,710 - 43,851 Non-current assets 1,820,318 377,983 778,086 - 2,976,387 Inventories 70,314 8,729 9,277 - 88,320 Trade receivables 231,870 56,961 27,187 (84,765) 231,253 Other receivables 85,597 14,464 7,176 (195) 107,042 Current assets (A) 387,781 80,154 43,640 (84,960) 426,615 Operating assets 2,208,099 458,137 821,726 (84,960) 3,403,002 Trade payables (327,768) (70,879) (45,073) 84,765 (358,955) Other payables (293,855) (43,725) (41,905) 195 (379,290) Provisions for risks and charges (current (586) (682) - - (1,268) portion) Current liabilities (B) (622,209) (115,286) (86,978) 84,960 (739,513) Net working capital (A) - (B) (234,428) (35,132) (43,338) - (312,898) Derivative instruments 12,933 - - - 12,933 Deferred tax assets 63,112 7,307 12,282 - 82,701 Deferred tax liabilities (62,023) (19,725) (16,703) - (98,451) Provisions for risks and charges (non- (17,668) (896) (815) - (19,379) current portion) Liabilities for employees’ benefits (non- (12,119) (143) (701) - (12,963) current portion) Loan fees 3,007 - - - 3,007 Other non-current liabilities (160,811) (12,853) (6,434) - (180,098) NET INVESTED CAPITAL 1,412,321 316,541 722,377 - 2,451,239 Group net equity 1,100,919 Minority interests 759 Total net equity 1,101,678 Net medium and long-term financial 719,428 indebtedness Net short-term financial indebtedness 132,702 Total net financial indebtedness 852,130 Lease liabilities 387,130 48,433 61,868 - 497,431 Total lease liabilities & net financial 1,349,561 indebtedness NET EQUITY, LEASE LIABILITIES AND NET 2,451,239 FINANCIAL INDEBTEDNESS 36 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Non-Current Assets Non-current assets amounted to €3,160,618 thousand at 30 June 2024, an increase of €184,231 thousand with respect to the €2,976,387 thousand recorded at 31 December 2023. This increase is explained (i) for €155,118 thousand by acquisitions made in the reporting period; (ii) for €73,222 thousand by right-of-use assets acquired in the reporting period; (iii) for €65,657 thousand by capex; (iv) for €144,826 thousand, by amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; (v) for €35,060 thousand by other increases stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 (“Decreto Rilancio”), and from foreign exchange differences. The breakdown of non-current assets by geographic area is shown below. 06/30/2024 12/31/2023 Change (€ thousands) Goodwill 1,005,129 955,383 49,746 Non-competition agreements, trademarks, customer lists and 183,275 176,887 6,388 lease rights Software, licenses, other intangible fixed assets, fixed assets in 123,102 123,344 (242) progress and advances Tangible assets 157,790 148,081 9,709 EMEA (*) Right-of-use assets 378,228 373,293 4,935 Financial fixed assets 22,997 3,629 19,368 Other non-current financial assets 40,042 39,701 341 Non-current assets 1,910,562 1,820,318 90,244 Goodwill 300,607 237,178 63,429 Non-competition agreements, trademarks, customer lists and 32,480 21,126 11,354 lease rights Software, licenses, other intangible fixed assets, fixed assets in 30,039 29,520 519 progress and advances Americas Tangible assets 36,989 29,929 7,060 Right-of-use assets 48,618 44,949 3,669 Financial fixed assets 6,859 12,841 (5,982) Other non-current financial assets 2,586 2,440 146 Non-current assets 458,179 377,983 80,196 Goodwill 617,142 607,013 10,129 Non-competition agreements, trademarks, customer lists and 55,253 57,670 (2,417) lease rights Software, licenses, other intangible fixed assets, fixed assets in 8,862 8,042 820 progress and advances Asia Pacific Tangible assets 42,633 43,506 (873) Right-of-use assets 65,944 59,911 6,033 Financial fixed assets 234 234 - Other non-current financial assets 1,809 1,710 99 Non-current assets 791,877 778,086 13,791 Total 3,160,618 2,976,387 184,231 (*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA. 37 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Europe, Middle-East and Africa Non-current assets amounted to €1,910,562 thousand at 30 June 2024, an increase of €90,244 thousand with respect to the €1,820,318 thousand recorded at 31 December 2023. This increase is explained by: - for €81,325 thousand, acquisitions made during the reporting period; - for €43,673 thousand, right-of-use assets acquired in the year as a result of the renewal of existing leases and network expansion. - for €24,463 thousand, investments in plant, property and equipment, relating primarily to the opening of new stores and the renewal of existing ones, as well as the purchase of hardware needed to implement Group IT projects detailed below; - for €21,109 thousand, investments in intangible assets, relating to new Front-Office solutions, network expansion and to ongoing implementation and standardization and homogenization of the Group cloud based ERP system; - for €96,803 thousand, amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; - for €16,477 thousand, the recognition of acquisitions with deferred payments using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 (“Decreto Rilancio”) and exchange differences. Americas Non-current assets amounted to €458,179 thousand at 30 June 2024, an increase of €80,196 thousand against the €377,983 thousand recorded at 31 December 2023. This increase is explained by: - for €66,636 thousand, by acquisitions made in the reporting period; - for €9,655 thousand, by right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion; - for €8,646 thousand, by investments in property, plant and equipment, relating to the opening of new stores and the renewal of existing ones; - for €3,230 thousand, by investments in intangible assets, relating to the development of ongoing implementation and standardization and homogenization of the Group cloud based ERP system; - for €18,060 thousand, by amortization and depreciation, including the amortization of the right-of-use assets referred to above; - for €10,089 thousand by other increases, explained primarily by revaluations linked to inflation accounting at the Argentine subsidiary. 38 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Asia Pacific Non-current assets amounted to €791,877 thousand at 30 June 2024, an increase of €13,791 thousand against the €778,086 thousand recorded at 31 december 2023. This increase is explained by: - for €19,894 thousand, by an increase in right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion; - for €7,157 thousand, by acquisitions made in the reporting period; - for €6,145 thousand, by investments in property, plant and equipment, relating mainly to the opening of stores and the renewal of existing ones, as well as the purchase of the hardware needed to implement IT projects; - for €2,064 thousand, by investments in intangible assets relating mainly to the development of ongoing implementation and standardization and homogenization of the Group cloud based ERP system; - for €29,963 thousand, by amortization and depreciation, including the amortization of the right of-use assets referred to above; - for €8,494 thousand, by other decreases relating to foreign exchange differences which mainly affected goodwill. Net invested capital Net invested capital amounted to €2,660,233 thousand at 30 June 2024, an increase of €208,994 thousand against the €2,451,239 thousand recorded at 31 December 2023. This increase is attributable mainly to the change in non-current assets described above, as well as a slight increase in working capital. The breakdown of net invested capital by geographic area is shown below. 06/30/2024 12/31/2023 Change (€ thousands) EMEA (*) 1,523,244 1,412,321 110,923 Americas 402,703 316,541 86,162 Asia Pacific 734,286 722,377 11,909 Total 2,660,233 2,451,239 208,994 (*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA. Europa, Middle-East and Africa Net invested capital came to €1,523,244 thousand at 30 June 2024, an increase of €110,923 thousand against the €1,412,321 thousand recorded at 31 December 2023. In addition to the increase in non-current assets described above, there was an increase in working capital. 39 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Factoring without recourse in the period involved trade receivables with a face value of € 112,516 thousand (€110,247 thousand in the same period of the prior year) and VAT credits with a face value of € 10,111 thousand (€13,605 thousand in the same period of the prior year). As of Q4 2023 factoring without recourse includes the receivables payable to insurance companies through top tier institution; the figures in the comparison period were adjusted to reflect this change. Americas Net invested capital came to €402,703 thousand at 30 June 2024, an increase of €86,162 thousand against the €316,541 thousand recorded at 31 December 2023. This increase is attributable mainly to the change in non-current assets along with a slight increase in net working capital. Factoring without recourse in the reporting period involved trade receivables with a face value of €581 thousand (€160 thousand in the same period of the prior year). Asia Pacific Net invested capital came to €734,286 thousand at 30 June 2024, an increase of €11,909 thousand against the €722,377 thousand recorded at 31 December 2023. Along with the increase in non-current assets described above, there was also a slight decrease in net working capital. Factoring without recourse in the period involved trade receivables with a face value of €2,177 thousand (€3,736 thousand in the same period of the prior year). 40 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Net financial indebtedness 06/30/2024 12/31/2023 Change (€ thousands) Net medium and long-term financial indebtedness 678,136 719,428 (41,292) Net short-term financial indebtedness 486,990 326,733 160,257 Cash and cash equivalents (155,841) (194,031) 38,190 Net financial indebtedness (A) 1,009,285 852,130 157,155 Lease liabilities – current portion 124,135 113,523 10,612 Lease liabilities – non-current portion 388,226 383,908 4,318 Lease liabilities (B) 512,361 497,431 14,930 Total lease liabilities & net financial indebtedness 1,521,646 1,349,561 172,085 (A)+(B) (C) Group net equity (D) 1,138,354 1,100,919 37,435 Minority interests 234 759 (525) Net Equity (E) 1,138,588 1,101,678 36,910 Financial indebtedness/Group net equity (A/D) 0.89 0.77 Financial indebtedness/Net equity (A/E) 0.89 0.77 Financial indebtedness/EBITDA (*) 1.70 1.50 (*) Net financial indebtedness/EBITDA is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to EBITDA for the last four quarters (determined with reference to recurring operations only, based on pro forma figures in case of significant changes to the structure of the Group). Excluding lease liabilities, net financial debt amounted to €1,009,285 thousand at 30 June 2024, an increase of €157,155 thousand compared to 31 December 2023. In the first half of 2024 free cash flow reached a positive €46,822 thousand (compared to €76,110 in the first six months of the prior year) due mainly to higher taxes, rents and interest payable, along with greater absorption of working capital and increased capital expenditure which amounted to €65,338 thousand at 30 June 2024 versus €61,907 thousand in the comparison period. The significant net cash-outs for acquisitions of €142,737 thousand (versus €59,125 thousand in the first half of 2023), along with the €65,593 dividend payment (€65,361 thousand in the comparison period) and €5,695 thousand in positive flows generated by financial assets, bring cash flow for the reporting period to negative €155,814 thousand versus a negative €50,474 thousand in the first half of 2023. In June 2024 the Group subscribed the last €50 million tranche of the €350 million loan with the European Investment Bank (EIB), of which €300 million was already subscribed, to support innovation and digitalization. This loan increased the available, unutilized irrevocable credit lines which amounted to €690 million at 30 June 2024. In the second quarter, as agreed with the lenders and based on the original loan agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit were updated to reflect the new targets included in the new sustainability plan. 41 --- Interim Financial Report as at 30 June 2024 > Interim Management Report In addition to the irrevocable credit lines referred to above, at 30 June 2024 the Group also had cash and cash equivalents, as well as other liquid investments, of €155,841 thousand versus total net financial indebtedness of €1,165 million, net of lease liabilities. Long-term debt, net of lease liabilities, amounted to €678,136 thousand at 30 June 2024 (€ 719,428 thousand at 31 December 2023), €41,292 thousand lower than in 2023 due mainly to the reclassification of short-term portions of bank debt and deferred payments for acquisitions net of the new loans. Short-term debt amounts to €486,990 thousand, an increase of €160,257 thousand explained mainly by the increase in hot money transactions and the use of other short-term credit lines in order to temporarily cover higher overall debt. The short-term portion refers primarily to the hot money accounts and the use of other short-term credit lines (€293,171 thousand), the short- term portion of long-term bank debt (€171,086 thousand) and interest payable on other bank loans (€884 thousand) and interest payable on Eurobond (€1,489 thousand) and, lastly, the best estimate of the deferred payments for acquisitions (€17,202 thousand). The chart below shows the debt maturities compared to: - the €155.8 million in cash and cash equivalents; - the unutilized portions of irrevocable credit lines which amount to €465 million; - the unutilized €225 million of the EIB loan taken out to support investments in innovation and digitalization. Interest payable on financial debt amounted to €18,247 thousand at 30 June 2024 versus €11,842 thousand at 30 June 2023. Interest payable on leases recognized in accordance with IFRS 16 amounted to €8,916 thousand versus €6,990 thousand at 30 June 2023. 42 --- Interim Financial Report as at 30 June 2024 > Interim Management Report Interest receivable on bank deposits came to €1,530 thousand at 30 June 2024 versus €914 thousand at 30 June 2023. The reasons for the changes in net debt are described in the next section on the statement of cash flows. 43 --- Interim Financial Report as at 30 June 2024 > Interim Management Report CASH FLOW STATEMENT The reclassified statement of cash flows shows the change in net financial indebtedness from the beginning to the end of the period. Pursuant to IAS 7, the consolidated financial statements include a statement of cash flows that shows the change in cash and cash equivalents from the beginning to the end of the period. First Half 2024 First Half 2023 (**) (€ thousands) OPERATING ACTIVITIES: Net profit (loss) attributable to the Group 87,793 81,357 Minority interests 81 (34) Amortization, depreciation and impairment: - Intangible fixed assets 50,153 43,294 - Tangible fixed assets 30,620 26,572 - Right-of-use assets 64,053 58,675 Total amortization, depreciation and impairment 144,826 128,541 Provisions, other non-monetary items and gains/losses from disposals 9,554 21,028 Group’s share of the result of associated companies (283) (206) Financial income charges 27,798 23,925 Current and deferred income taxes 33,558 31,176 Change in assets and liabilities: - Utilization of provisions (2,126) (6,429) - (Increase) decrease in inventories 8,943 (2,620) - Decrease (increase) in trade receivables 8,449 (127) - Increase (decrease) in trade payables (43,986) (6,330) - Changes in other receivables and other payables (29,537) (23,719) Total change in assets and liabilities (58,257) (39,225) Net interest charges (25,134) (20,732) Taxes paid (44,208) (31,660) Cash flow provided by (used in) operating activities before repayment of lease liabilities 175,728 194,169 Repayment of lease liabilities (63,568) (56,152) Cash flow generated from (absorbed) by operating activities 112,160 138,017 INVESTING ACTIVITIES: Purchase of intangible fixed assets (26,404) (32,716) Purchase of property, plant and equipment (39,254) (30,559) Consideration from sale of tangible fixed assets and businesses 320 1,368 Cash flow generated from (absorbed) by investing activities (65,338) (61,907) Cash flow generated from operating and investing activities (Free Cash Flow) 46,822 76,110 Business combinations (*) (142,737) (59,125) Net cash flow generated from acquisitions (142,737) (59,125) Cash flow generated from (absorbed) by investing activities and acquisitions (208,075) (121,032) 44 --- Interim Financial Report as at 30 June 2024 > Interim Management Report First Half 2024 First Half 2023 (**) (€ thousands) FINANCING ACTIVITIES: Derivatives - (1,483) Other non-current assets 5,799 (615) Fees paid on medium/long-term financing (105) - Treasury shares - - Dividends (65,593) (65,361) Cash flow generated from (absorbed) by financing activities (59,899) (67,459) Changes in net financial indebtedness net of lease liabilities (155,814) (50,474) Net financial indebtedness at the beginning of the period net of lease liabilities (852,130) (829,993) Effect of exchange rate fluctuations on net financial debt (1,341) (3,344) Changes in net financial debt (155,814) (50,474) Net financial indebtedness at the end of the period net of lease liabilities (1,009,285) (883,811) (*) The item refers to the net cash flows used in the acquisition of businesses and equity investments. (**) It is specified that, on the comparative period, reclassifications have been made in order to better represent financial information. The change in net financial indebtedness of €157,155 thousand is attributable to: (i) Investing activities: - capital expenditure on property, plant and equipment and intangible assets of € 65,657 thousand relating primarily to the new Front-Office solution and network expansions ongoing implementation and standardization of the Group cloud based ERP system; - acquisitions amounting to €142,737 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 €320 thousand. (ii) Operating activities: - interest payable on financial indebtedness, on leases due to IFRS16 accounting standards application and other net financial expenses for €25,134 thousand; - payment of taxes amounting to €44,208 thousand; - payment of principle on lease obligations of €63,568 thousand; - cash flow generated by current operations of €245,070 thousand. (iii) Financing activities: - dividends distribution for €65,593 thousand; - fees paid on medium/long-term financing for €105 thousand; - collection of other non-current assets for €5,799 thousand. (iv) Net debt was also impacted by exchange losses of €1,341 thousand. Non-recurring transactions had a negative impact on cash flow of €830 thousand, of which €711 thousand for costs related to GAES integration and €119 thousand to the integration of Bay Audio. 45 --- Interim Financial Report as at 30 June 2024 > Interim Management Report ACQUISITION OF COMPANIES AND BUSINESSES During the first semester of 2024, the Group continued with external growth operations and acquired 244 points of sale, mainly through the acquisitions made in the Uruguayan and Chinese markets and in the American market with two important franchisees’ acquisition, for a total investment of €142,737 thousand, including the debt consolidated and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years. More in detail, in the first semester of 2024: - 81 points of sale were acquired in the United States; - 55 points of sale were acquired in Germany; - 44 points of sale were acquired in China; - 27 points of sale were acquired in France; - 23 points of sale were acquired in Uruguay; - 10 points of sale were acquired in Canada; - 4 point of sale was acquired in Italy. 46 --- Interim Financial Report as at 30 June 2024 > Interim Management Report OUTLOOK In the second quarter of 2024, the US hearing care market was still strong and in line with expectations, albeit decelerating compared to the first quarter, while the European market was softer than expected, in particular from the second half of May until the end of June. However, despite the market environment in the second quarter, in the first half of the year the Group continued along its strong growth path. Profitability also benefited from the field productivity measures taken in the second half of last year, which more than offset the lower operating leverage due to the European market softness. In the second half of 2024, Amplifon expects: • the European market to normalize progressively, while the US market is expected to continue to grow at a healthy rate; • to continue to grow faster than the reference market; • a good start to the third quarter with strong and in-line-with-plan revenue growth in July. In light of the above and assuming that there are no further slowdowns in global economic activity due to, among others, the well-known inflation related issues and the geopolitical situation, for 2024 Amplifon now expects: • Consolidated revenues to grow high-single-digit at constant exchange rates (with the st exception for the EUR /ARS exchange rate, assumed to be at 1,100 at December 31 , 2024), supported by market share gains and bolt-on acquisitions, the latter contributing to revenue growth for at least 2%; • a recurring EBITDA margin of around 24.3%, benefiting from the field productivity measures taken in 2023, while accelerating the growth of Miracle-Ear Direct Retail in the United States and marketing investments to respond to European market softness. In the medium-term the Group remains extremely confident about its prospects for sustainable growth in sales and profitability, thanks to the fundamentals of the hearing care market and its even stronger competitive positioning. th Milan, July 30 , 2024 CEO Enrico Vita 47 --- Interim Financial Report as at 30 June 2024 > Interim Management Report 48 --- --- CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2024 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements CONSOLIDATED STATEMENT OF FINANCIAL POSITION(*) 06/30/2024 12/31/2023 Change (€ thousands) ASSETS Non-current assets Goodwill Note 3 1,922,878 1,799,574 123,304 Intangible fixed assets with finite useful life Note 4 433,010 416,589 16,421 Property, plant, and equipment Note 5 237,412 221,516 15,896 Right-of-use assets Note 6 492,790 478,153 14,637 Equity-accounted investments 2,726 2,444 282 Hedging instruments 8,713 12,933 (4,220) Deferred tax assets 78,358 82,701 (4,343) Contract costs 11,828 11,275 553 Other assets Note 7 59,975 46,835 13,140 Total non-current assets 3,247,690 3,072,020 175,670 Current assets Inventories 83,063 88,320 (5,257) Trade receivables 215,274 231,253 (15,979) Contract costs 6,461 6,840 (379) Other receivables 136,023 100,184 35,839 Hedging instruments 2,369 549 1,820 Other financial assets 867 901 (34) Cash and cash equivalents Note 9 154,992 193,148 (38,156) Total current assets 599,049 621,195 (22,146) Total assets 3,846,739 3,693,215 153,524 51 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 06/30/2024 12/31/2023 Change (€ thousands) LIABILITIES Net Equity Share capital Note 8 4,528 4,528 - Share premium reserve 202,712 202,712 - Treasury shares (5,607) (17,495) 11,888 Other reserves (52,513) (53,608) 1,095 Retained earnings 901,441 809,643 91,798 Profit (loss) for the period 87,793 155,139 (67,346) Group net equity 1,138,354 1,100,919 37,435 Minority interests 234 759 (525) Total net equity 1,138,588 1,101,678 36,910 Non-current liabilities Medium/long-term financial liabilities Note 10 672,169 710,267 (38,098) Lease liabilities Note 12 388,226 383,909 4,317 Provisions for risks and charges Note 11 20,716 19,379 1,337 Liabilities for employees’ benefits 12,357 12,963 (606) Deferred tax liabilities 102,871 98,451 4,420 Payables for business acquisitions 4,540 7,229 (2,689) Contract liabilities 166,169 153,716 12,453 Other long-term liabilities 48,375 26,379 21,996 Total non-current liabilities 1,415,423 1,412,293 3,130 Current liabilities Trade payables 321,669 358,955 (37,286) Payables for business acquisitions 17,202 9,554 7,648 Contract liabilities 120,114 120,043 71 Tax liabilities 65,308 74,433 (9,125) Other payables 169,486 181,101 (11,615) Hedging instruments 445 242 203 Provisions for risks and charges Note 11 1,828 1,268 560 Liabilities for employees’ benefits 4,071 3,713 358 Short-term financial liabilities Note 10 468,470 316,413 152,057 Lease liabilities Note 12 124,135 113,522 10,613 Total current liabilities 1,292,728 1,179,244 113,484 TOTAL LIABILITIES 3,846,739 3,693,215 153,524 (*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 18 for more details 52 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements CONSOLIDATED INCOME STATEMENT(*) First Half 2024 First Half 2023 (€ thousands) Non- Non- Recurring Total Recurring Total Change recurring recurring Revenues from sales and services Note 13 1,177,251 - 1,177,251 1,113,770 - 1,113,770 63,481 Operating costs (**) Note 15 (884,219) (3,466) (887,685) (842,483) (11,283) (853,766) (33,919) Other income and costs (**) 4,207 - 4,207 4,754 - 4,754 (547) Gross operating profit (EBITDA) 297,239 (3,466) 293,773 276,041 (11,283) 264,758 29,015 Amortization, depreciation and impairment Amortization of intangible fixed assets Note 4 (50,053) - (50,053) (43,268) - (43,268) (6,785) Depreciation of property, plant, and Note 5 (30,075) - (30,075) (26,426) - (26,426) (3,649) equipment Right-of-use depreciation Note 6 (64,053) - (64,053) (58,675) - (58,675) (5,378) Impairment losses and reversals of (645) - (645) (172) - (172) (473) non-current assets (144,826) - (144,826) (128,541) - (128,541) (16,285) Operating result 152,413 (3,466) 148,947 147,500 (11,283) 136,217 12,730 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity 283 - 283 207 - 207 76 and gains/losses on disposals of equity investments Interest income and expenses (16,717) - (16,717) (10,927) - (10,927) (5,790) Interest expenses on lease liabilities (8,916) - (8,916) (6,990) - (6,990) (1,926) Other financial income and expenses (707) - (707) (1,925) - (1,925) 1,218 Exchange gains and losses, and (1,308) - (1,308) (4,609) - (4,609) 3,301 inflation accounting Gain (loss) on assets accounted at fair (150) - (150) 526 - 526 (676) value (27,515) - (27,515) (23,718) - (23,718) (3,797) Profit (loss) before tax 124,898 (3,466) 121,432 123,782 (11,283) 112,499 8,933 Current and deferred income tax Current tax (28,936) 979 (27,957) (41,266) 3,296 (37,970) 10,013 Deferred tax (5,601) - (5,601) 6,794 - 6,794 (12,395) (34,537) 979 (33,558) (34,472) 3,296 (31,176) (2,382) Net profit (loss) 90,361 (2,487) 87,874 89,310 (7,987) 81,323 6,551 Net profit (loss) attributable to 81 - 81 (34) - (34) 115 Minority interests Net profit (loss) attributable to the 90,280 (2,487) 87,793 89,344 (7,987) 81,357 6,436 Group (*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 18 for more details. (**) It is specified that, on the comparative period reclassifications between “Operating costs” and “Other income and costs” have been made in order to better represent financial information. Earnings per share (€ per share) Note 17 First Half 2024 First Half 2023 Earnings per share 0.38850 0.36275 - Basic 0.38547 0.35979 - Diluted 53 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME First Half 2024 First Half 2023 (€ thousands) Net income (loss) for the period 87,874 81,323 Other comprehensive income (loss) that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (51) (1,006) Tax effect on components of other comprehensive income that will not be reclassified 2 221 subsequently to profit or loss Total other comprehensive income (loss) that will not be reclassified subsequently to (49) (785) profit or loss after the tax effect (A) Other comprehensive income (loss) that will be reclassified subsequently to profit or loss: Gains/(losses) on cash flow hedging instruments (2,452) (2,934) Gains/(losses) from Foreign Currency Basis Spread on hedging instruments - 516 Gains/(losses) on exchange differences from translation of financial statements of foreign 9,384 (42,038) entities Tax effect on components of other comprehensive income that will be reclassified 588 580 subsequently to profit or loss Total other comprehensive income (loss) that will be reclassified subsequently to profit or 7,520 (43,876) loss after the tax effect (B) Total other comprehensive income (loss) (A)+(B) 7,471 (44,661) Comprehensive income (loss) for the period 95,345 36,662 Attributable to the Group 95,436 37,063 Attributable to Minority interests (91) (401) 54 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements STATEMENT OF CHANGES IN CONSOLIDATION EQUITY Share Treasury Stock Share Legal Other (€ thousands) premium shares grant capital reserve reserves reserve reserve reserve Balance at 01/01/2023 4,528 202,712 934 3,636 (49,895) 35,182 Allocation of profit (loss) for 2022 Share capital increase Treasury shares Dividend distribution Notional cost of stock grants 18,502 Other changes 25,500 (18,889) - Stock Grant 25,500 (18,889) - Inflation accounting - Other changes Total comprehensive income (loss) for the period - Hedge accounting - Actuarial gains (losses) - Translation differences - Profit for the first half of 2023 Balance at June 2023 4,528 202,712 934 3,636 (24,395) 34,795 Share Treasury Stock Legal Other (€ thousands) Share capital premium shares grant reserve reserves reserve reserve reserve Balance at 01/01/2024 4,528 202,712 934 3,636 (17,495) 41,299 Allocation of profit (loss) for 2023 Share capital increase Treasury shares - Dividend distribution Notional cost of stock grants 9,373 Other changes 11,888 (15,921) - Stock Grant 11,888 (15,921) - Inflation accounting - Other changes Total comprehensive income (loss) for the period - Hedge accounting - Actuarial gains (losses) - Translation differences - Profit for the first half of 2024 Balance at June 2024 4,528 202,712 934 3,636 (5,607) 34,751 55 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Foreign Cash flow Total Curr. Basis Actuarial gains Retained Translation Profit (loss) Minority Total net hedge Shareholders' Spread and losses earnings differences for the period interests equity reserve equity Reserve 19,913 (392) 2,782 691,409 (50,825) 178,525 1,038,509 1,841 1,040,350 178,525 (178,525) - - - - - - (65,361) (65,361) (65,361) 18,502 18,502 5,306 11,917 (479) 11,438 (3,984) 2,627 2,627 10,255 10,255 10,255 (965) (965) (479) (1,444) (2,230) 392 (785) (41,671) 81,357 37,063 (401) 36,662 (2,230) 392 (1,838) (1,838) (785) (785) (785) (41,671) (41,671) (367) (42,038) 81,357 81,357 (34) 81,323 17,683 - 1,997 809,879 (92,496) 81,357 1,040,630 961 1,041,591 Total Cash flow Actuarial gains Retained Translation Profit (loss) for Minority Total net Shareholders' hedge reserve and losses earnings differences the period interests equity equity 9,888 (957) 809,643 (108,408) 155,139 1,100,919 759 1,101,678 155,139 (155,139) - - - - - - (65,593) (65,593) (65,593) 9,373 9,373 2,252 (1,781) (434) (2,215) 2,731 (1,302) (1,302) 13,158 13,158 13,158 (13,637) (13,637) (434) (14,071) (1,864) (49) 9,556 87,793 95,436 (91) 95,345 (1,864) (1,864) (1,864) (49) (49) (49) 9,556 9,556 (172) 9,384 87,793 87,793 81 87,874 8,024 (1,006) 901,441 (98,852) 87,793 1,138,354 234 1,138,588 56 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements STATEMENT OF CONSOLIDATED CASH FLOWS First Half 2024 First Half 2023 (*) (€ thousands) OPERATING ACTIVITIES Net profit (loss) 87,874 81,323 Amortization, depreciation and impairment: - intangible fixed assets 50,153 43,294 - property, plant, and equipment 30,620 26,572 - right-of-use assets 64,053 58,675 Provisions, other non-monetary items and gain/losses from disposals 9,553 21,027 Group’s share of the result of associated companies (283) (206) Financial income and expenses 27,798 23,925 Current and deferred taxes 33,558 31,176 Cash flow from operating activities before change in net working capital 303,326 285,786 Utilization of provisions (2,126) (6,429) (Increase) decrease in inventories 8,943 (2,620) Decrease (increase) in trade receivables 8,449 (127) Increase (decrease) in trade payables (43,986) (6,330) Changes in other receivables and other payables (29,537) (23,719) Total change in assets and liabilities (58,257) (39,225) Interest received (paid) (25,980) (25,299) Taxes paid (44,208) (31,660) Cash flow generated from (absorbed by) operating activities (A) 174,881 189,602 INVESTING ACTIVITIES: Purchase of intangible fixed assets (26,404) (32,716) Purchase of tangible fixed assets (39,254) (30,559) Consideration from sale of non-current assets 320 1,368 Cash flow generated from (absorbed by) operating investing activities (B) (65,338) (61,907) Purchase of subsidiaries and business units net of cash and cash equivalents acquired or (142,737) (59,125) dismissed Increase (decrease) in payables for business acquisitions 7,043 (7,142) Cash flow generated from (absorbed by) acquisition activities (C) (135,694) (66,267) Cash flow generated from (absorbed by) investing activities (B)+(C) (201,032) (128,174) FINANCING ACTIVITIES: Increase (decrease) in financial payables 112,478 49,638 (Increase) decrease in financial receivables 16 (552) Principal portion of lease payments (63,568) (56,152) Hedging instruments - (1,483) Fees paid on long-term borrowings (104) - Other non-current assets and liabilities 5,799 (615) Dividend distributed (65,593) (65,361) Treasury shares purchase - - Cash flow generated from (absorbed by) financing activities (D) (10,972) (74,525) Net increase in cash and cash equivalents (A)+(B)+(C)+(D) (37,123) (13,097) 57 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements First Half 2024 First Half 2023 (€ thousands) Cash and cash equivalents at beginning of period 193,148 179,654 Effect of exchange rate fluctuations on cash & cash equivalents (1,033) (1,576) Flows of cash and cash equivalents (37,123) (13,097) Cash and cash equivalents at end of period 154,992 164,981 (*) It is specified that, on the comparative period, reclassifications have been made in order to better represent financial information. Related-party transactions relate to lease of the main office and certain stores, to recharges of maintenance costs and general services of the above-mentioned buildings and to commercial transactions, personnel costs and loans. Such operations are detailed in Note 18. SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS The fair values of the assets and liabilities acquired are summarized in the table below: First Half 2024 First Half 2023 (€ thousands) - Goodwill 103,774 44,278 - Customer lists 35,720 17,517 - Trademarks and non-competition agreements 1,308 - - Other intangible fixed assets 2,141 403 - Property, plant, and equipment 5,632 2,595 - Right-of-use assets 6,339 1,056 - Current assets 13,357 5,051 - Provision for risks and charges (1,629) 3 - Current liabilities (17,831) (6,119) - Other non-current assets and liabilities (16,191) (5,033) - Third parties equity 14,073 1,614 Total investments 146,693 61,365 Net financial debt acquired 1,698 957 Total business combinations 148,391 62,322 (Increase) decrease in payables through business acquisition (7,043) 7,142 Cash flow absorbed by (generated from) acquisitions 141,348 69,464 (Cash and cash equivalents acquired) (5,654) (3,197) Net cash flow absorbed by (generated from) acquisitions 135,694 66,267 58 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements NOTES 1. General Information The Amplifon Group is global leader in the distribution of hearing solutions and the fitting of customized products. The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy. The Group is controlled directly by Ampliter S.r.l. (42.06% as at 30 June 2024), held by Amplifin S.r.l, which is owned at 100% by Susan Carol Holland. As a result of increased voting rights, at 30 June 2024 Ampliter S.r.l. held 59.13% of the voting rights. On 30 April 2024 the Extraordinary Shareholders’ Meeting approved a few amendments to the Articles of Association, including enhanced voting rights as a result of which voting rights may be increased by one vote per share held for each 12- month period in which the shares are owned without interruption for a total of up to 10 votes per share based on a mechanism calling for a gradual increase. As none of the conditions for termination materialized, the amendments took full effect. The condensed interim consolidated financial report as at 30 June 2024 was prepared in accordance with International Accounting Standards, as well as the implementation regulations set out in Article 9 of Legislative Decree no. 38 of 28 February 2005. These standards include the IAS and IFRS issued by the International Accounting Standard Board, as well as the SIC and IFRIC interpretations issued by the International Financial Reporting Interpretations Committee, which were endorsed in accordance with the procedure set out in Article 6 of Regulation (EC) no. 1606 of 19 July 2002 by 30 June 2024. The International Accounting Standards endorsed after that date and before the preparation of this report were adopted in the preparation of the condensed interim consolidated financial report only if early adoption is allowed by the Endorsing Regulation and the standard itself and if the Group had elected to do so. The condensed interim consolidated financial statements at 30 June 2024 was prepared in accordance with IAS 34 “Interim Financial Reporting” and does not include all the additional information required by the annual financial statements and must be read together with the annual consolidated financial statements of the Group at 31 December 2023. The publication of the condensed interim consolidated financial statements of the Amplifon Group at 30 June 2024 was authorized by a resolution of the Board of Directors of 30 July 2024 which approved their publication. According to the Consob Communication of 28 July 2006, it is specified that during the first half of 2024 the Group did not carry out atypical and/or unusual transactions, as defined by the Communication itself. 59 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 2. Impacts of the conflict in Middle-East, Ukraine and climate change on the Group’s performance and financial position The geopolitical uncertainty continues and persists due to the conflicts underway in the Middle East and Ukraine. Currently, the prospects for a resolution of the conflict in the Middle East remain uncertain and still represent a relevant risk factor for the global economic outlook. The Group, however, only has about 25 points of sale in Israel which generate sales equal to approximately 1% of annual consolidated revenues. As for the conflict between Ukraine and Russia, the situation remains tense and has not changed significantly since the prior quarter. The Group has no business activities, direct or indirect, in either Ukraine, Russia or Byelorussia and limited activities in surrounding countries (Poland and Hungary). In the first half of the year, the hearing aid market underwent a phase of gradual normalization in demand worldwide, despite a softer-than-expected market European market, above all in the latter part of the second quarter. The Group, however, recognizes that the current global and geopolitical uncertainties could cause a few potential customers to postpone purchases, even if hearing aids are non-discretional products which meet medium-term needs and benefit people’s physical, emotional and relational health significantly. Customers are also assisted by public and private insurances, as well as consumer loans. While the Group monitors the changing macroeconomic environment constantly, it cannot exclude the possibility of further slowdowns in the demand for its services and products even though in the past the sector has shown resilience in periods of economic crisis and geopolitical uncertainty. With regard to climate change, the Group’s business model is based on providing retail hearing solutions. The goals, therefore, connected to transitioning to alternative sources of energy and the actions needed to address climate change are pursued through the steps taken by the Group to improve the energy efficiency of its business activities, as well as report on the greenhouse gas emissions generated along the value chain. Toward this end, the Group is committed to defining and presenting short-term targets for reducing emissions aligned with the Science- Based Target Initiative (SBTi) by 2025. Furthermore, the Group’s activities and business model do not entail significant exposure to the environmental risks connected specifically to climate change. 60 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 3. Acquisitions and goodwill The Group continued its own balancing strategy between internal and external growth during the first half of 2024 acquiring 244 points of sale. In detail, there were 114 points of sale purchased in Americas (with the entrance in Uruguayan market and acquisition of two of main franchisees in the United States), 86 in EMEA, and 44 in Asia Pacific. The total investment, including the indebtedness consolidated and the best estimate of the net change in the earn-out linked to sales and profitability targets payable over the next few years, amounted to €142,737 thousand. The changes in goodwill and amounts recognized as a result of the acquisitions made in the period are reported in the table below and shown by groups of Cash Generating Units. Net carry at Business Net carry at Disposals Impairment Other net changes 12/31/2023 combinations 06/30/2024 (€ thousands) EMEA 955,383 50,245 - - (499) 1,005,129 AMERICAS 237,178 50,280 - - 13,149 300,607 APAC 607,013 3,249 - - 6,880 617,142 Total 1,799,574 103,774 - - 19,530 1,922,878 “Business combination” refers to the temporary allocation to goodwill of the portion of the purchase price paid, including deferments and contingent consideration (earn-outs), which is not directly attributable to the fair value of assets and liabilities, but is based on the positive contribution to cash flows that is expected to be made for an indefinite period of time. “Other net changes” refers almost entirely to foreign exchange differences. Identification of the Groups of Cash Generating Units For the purposes of impairment testing the total goodwill stemming from the cost incurred for a business combination was allocated to groups of Cash Generating Units; these groups of Cash Generating Units were identified by region and benefit from synergies, as well as shared policies, and are autonomous in the management and use of resources. The assets allocated to the groups of Cash Generating Units and the methods used to determine these groups are the same as those applied to the financial Statements as at 31 December 2023. The groups of Cash Generating Units recognized to perform impairment are: • EMEA which includes Italy, France, the Netherlands, Germany, Belgium, Switzerland, Spain, Portugal, the UK, Hungary, Poland, Israel and Egypt; • AMERICAS which includes both the single businesses through which operations are carried out in the US market (Franchising, Retail and Managed Care) and the countries (Canada, Argentina, Chile, Mexico, Panama, Ecuador, Colombia and Uruguay); • ASIA PACIFIC which includes Australia, New Zealand, India and China. 61 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements The recoverable value of goodwill is determined based on the value in use or, if the latter is less than book value, on fair value. As at 31 December 2023 the management’s valuations were made taking into consideration the value in use. No loss in value was identified as a result of the impairment tests conducted at 31 December 2023. The Group tests for impairment of goodwill once a year and in the event of any impairment indicators. In the first half of 2024, overall, the Group posted results which were higher than in the prior year despite what was a softer-than-expected market, above all in EMEA. Management remains confident, expects to see more growth in the second half of the year and confirms the ability to achieve the plan targets upon which the impairment tests at 12.31.2023 were based. The WACC recalculated at 30 June 2024 was also lower, which helps to absorb any decrease in cash flows. No indicators of impairment emerged, therefore, no specific impairment tests were made. For the purposes of measuring the recoverable value of goodwill reference should be made to the impairment tests reported on in the Annual Report 2023. A summary of the book value and the fair value of assets and liabilities, deriving from the temporary allocation of the purchase price made as a result of business combinations and the purchase of minority interests in subsidiaries, is provided in the following table. EMEA Americas APAC Total (€ thousands) Cost of acquisitions of the period 60,033 21,231 65,430 146,694 Assets and liabilities acquired – Book value Current assets 4,504 3,198 - 7,702 Current liabilities (6,176) (4,524) - (10,700) Net working capital (1,672) (1,326) - (2,998) Other intangible, tangible and right-of-use assets 9,897 3,426 788 14,111 Provision for risks and charges (1,629) - - (1,629) Other non-current assets and liabilities (5,206) (881) - (6,087) Non-current assets and liabilities 3,062 2,545 788 6,395 Net invested capital 1,390 1,219 788 3,397 Third Parties Equity - - 14,073 14,073 Net financial position 2,459 1,497 - 3,956 NET EQUITY ACQUIRED - BOOK VALUE 3,849 2,716 14,861 21,426 DIFFERENCE TO BE ALLOCATED 61,581 57,317 6,370 125,268 ALLOCATIONS Trademarks - 1,308 - 1,308 Customer lists 11,613 3,121 35,720 20,986 Contract liabilities - Short and long-term (4,976) - (12,464) (7,488) Deferred tax assets 1,045 2,256 - 3,301 Deferred tax liabilities (3,207) (3,164) - (6,371) ALLOCATIONS 11,336 7,037 3,121 21,494 GOODWILL 50,245 50,280 3,249 103,774 62 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 4. Intangible fixed assets with finite useful life The following table shows the changes in intangible assets. Accumulated Accumulated amortization amortization Historical cost Net book value Historical cost Net book value and write- and write- at 12/31/2023 at 12/31/2023 at 06/30/2024 at 06/30/2024 downs at downs at (€ thousands) 12/31/2023 06/30/2024 Software 289,839 (171,112) 118,727 308,544 (193,635) 114,909 Licenses 29,731 (20,618) 9,113 34,396 (23,135) 11,261 Non-competition agreements 19,484 (14,614) 4,870 22,038 (16,854) 5,184 Customer lists 474,972 (276,910) 198,062 512,349 (297,572) 214,777 Trademarks and concessions 95,028 (50,803) 44,225 96,580 (54,340) 42,240 Other 14,056 (4,197) 9,859 16,144 (5,155) 10,989 Fixed assets in progress and 31,733 - 31,733 33,650 - 33,650 advances Total 954,843 (538,254) 416,589 1,023,701 (590,691) 433,010 Net book Other Net book Business value at Investments Disposals Amortization Impairment net value at combinations (€ thousands) 12/31/2023 changes 06/30/2024 Software 118,727 6,970 (31) (21,267) 27 (76) 10,559 114,909 Licenses 9,113 2,582 - (2,528) 7 (2) 2,089 11,261 Non-competition 4,870 1,197 - (2,045) - (54) 1,216 5,184 agreements Customer lists 198,062 26 - (19,884) 35,720 - 853 214,777 Trademarks and 44,225 - - (3,376) 1,308 1 82 42,240 concessions Other 9,859 191 - (953) 1,971 (107) 28 10,989 Fixed assets in progress and 31,733 15,437 - - 136 138 (13,794) 33,650 advances Total 416,589 26,403 (31) (50,053) 39,169 (100) 1,033 433,010 The investments in intangible assets (€26,403 thousand) are attributable to the ongoing implementation and standardization of the Group cloud-based ERP system for back-office functions (HR, Procurement, Administration and Finance), the new front office solutions and the AI technologies used to provide customers with a highly personalized experience. The change in “Business combinations” comprises: - For €21,618 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; - For €14,430 thousand the temporary allocation of the price paid for acquisitions made in Americas; - For €3,121 thousand the temporary allocation of the price paid for acquisitions made in APAC. The item "Other net changes" is explained almost entirely by foreign exchange differences and the reclassification of work in progress completed in the period. 63 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 5. Property, plant, and equipment The following table shows the changes in property, plant, and equipment. Accumulated Accumulated amortization amortization Historical cost Net book value Historical cost Net book value and write- and write- at 12/31/2023 at 12/31/2023 at 06/30/2024 at 06/30/2024 downs at downs at (€ thousands) 12/31/2023 06/30/2024 Land 129 - 129 158 - 158 Buildings, constructions and 321,929 (215,933) 105,996 342,727 (231,392) 111,335 leasehold improvements Plant and machines 43,102 (34,441) 8,661 45,403 (36,745) 8,658 Industrial and commercial 91,892 (71,140) 20,752 94,966 (74,178) 20,788 equipment Motor vehicles 1,259 (838) 421 1,422 (854) 568 Computers and office 90,415 (69,133) 21,282 96,911 (76,069) 20,842 machinery Furniture and fittings 136,733 (100,349) 36,384 146,523 (107,050) 39,473 Other tangible fixed assets 6,686 (4,228) 2,458 6,567 (4,518) 2,049 Fixed assets in progress and 25,433 - 25,433 33,541 - 33,541 advances Total 717,578 (496,062) 221,516 768,218 (530,806) 237,412 Net book Other Net book Business value at Investments Disposals Amortization Impairment net value at combinations (€ thousands) 12/31/2023 changes 06/30/2024 Land 129 - - - - - 29 158 Buildings, constructions and leasehold 105,996 10,591 10 (12,564) 916 (330) 6,716 111,335 improvements Plant and machines 8,661 597 - (1,264) 594 (36) 106 8,658 Industrial and commercial 20,752 2,058 (9) (3,185) 301 46 825 20,788 equipment Motor vehicles 421 113 (108) (84) 42 - 184 568 Computers and office 21,282 3,840 4 (6,599) 705 (25) 1,635 20,842 machinery Furniture and fittings 36,384 5,085 (53) (6,056) 1,697 (69) 2,485 39,473 Other tangible fixed assets 2,458 (108) (5) (323) - - 27 2,049 Fixed assets in progress 25,433 17,079 - - 1,377 (131) (10,217) 33,541 and advances Total 221,516 39,255 (161) (30,075) 5,632 (545) 1,790 237,412 The investments of the reporting period (€39,254 thousand) are mainly related to opening and renewal of shops, and to the purchase of hardware components for IT Group projects implementation. The change in “Business combinations” comprises: - For €3,817 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; 64 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements - For €1,027 thousand, the temporary allocation of the price paid for acquisitions made in Americas; - For €788 thousand, the temporary allocation of the price paid for acquisitions made in APAC. “Other net changes” is explained primarily by foreign exchange differences recorded in the reporting period and the reclassification of work in progress completed in the period. 6. Right-of-use assets Right-of-use assets are reported here below: Accumulated Accumulated amortization amortization Historical cost Net book value Historical cost Net book value and write- and write- at 12/31/2023 at 12/31/2023 at 06/30/2024 at 06/30/2024 downs at downs at (€ thousands) 12/31/2023 06/30/2024 Stores and offices 880,210 (418,590) 461,620 922,653 (449,255) 473,398 Motor vehicles 31,377 (17,828) 13,549 35,191 (18,500) 16,691 Electronic machinery 4,644 (1,660) 2,984 4,239 (1,538) 2,701 Total 916,231 (438,078) 478,153 962,083 (469,293) 492,790 Net book Other Net book Business value at Increase Decrease Depreciation Impairment net value at combinations (€ thousands) 12/31/2023 changes 06/30/2024 Stores and offices 461,620 74,351 (9,252) (59,498) 6,189 - (12) 473,398 Motor vehicles 13,549 7,887 (935) (4,012) 150 - 52 16,691 Electronic machinery 2,984 238 (3) (542) - - 24 2,701 Total 478,153 82,476 (10,190) (64,053) 6,339 - 65 492,790 The increase in right of use assets acquired in the period (€82,476 thousand) is explained by the renewal of existing leases and the network expansion. The change in “business combinations” comprises: - for €5,449 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; - for €890 thousand, the temporary allocation of the price paid for acquisitions made in Americas. “Other changes” refers mainly to foreign exchange differences recorded in the reporting period. 65 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 7. Other non-current assets Balance at 06/30/2024 Balance at 12/31/2023 Change (€ thousands) Long-term financial receivables 6,574 12,915 (6,341) Asset Plans and other restricted amounts 1,394 1,362 32 Other non-current assets 52,005 32,558 19,447 Total 59,973 46,835 13,138 Other non-current assets amounted to €59,973 thousand at 30 June 2024 (€46,835 at 31 December 2023). The increase against the prior year is attributable mainly to the recognition of tax credits stemming from the super bonus discounts in accordance with Art. 119 and 121 of Legislative Decree 34/2020, purchased from a top-tier bank with a nominal value of €69,995 thousand for €65,694 thousand to be repaid as the credits are used. In accordance with the current tax laws, these credits may be used to offset tax payments and other fiscal contributions. These credits (and the related payments) are recognized at amortized cost and when utilized any remaining difference between the value at amortized cost and the nominal offsetting amount is recognized as financial income. In the first half of 2024, credits used for offsetting amounted to €31,570 thousand and financial income, that include also the effect of actualization, amounted to €2,495 thousand. Financial expenses for discounting payables amounted to €113 thousand. The statement of financial position at 30 June 2024 includes: • Tax credits recognized in the Other Receivables line for €14,961 thousand and in the Other Non-Current Assets line for €18,961 thousand; • Payables recognized in the Other Liabilities line for €18,962 thousand and in the Other Payables line for €24,185 thousand. 66 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 8. Share capital and treasury shares At 30 June 2024 the share capital comprised 226,388,620 ordinary shares with a par value of €0.02 fully paid in and subscribed, unchanged concerning 31 December 2023. A total of 437,349 of the performance stock grant rights were exercised in the period, as a result of which the company transferred the same number of treasury shares to the beneficiaries. During the period no treasury shares have not been acquired. A total of 204,799 treasury shares, or 0.090% of the parent’s share capital, were held at 30 June 2024. Information relating to the treasury shares held is shown below: Average purchase price (Euro) Total amount No. of shares (€ thousands) FV of transferred rights (Euro Held at 12/31/2023 642,148 27.245 17,495 Transfers due to exercise of performance stock grants (437,349) 27.182 (11,888) Held at 06/30/2024 204,799 27.378 5,607 67 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 9. Net financial indebtedness The Group’s net financial indebtedness, including lease liabilities, prepared in accordance with the ESMA guideline 32-382-1138 of 4 March 2021 and CONSOB’s Warning Notice n. 5/21 of 29 April 2021, is shown below. (€ thousands) 06/30/2024 12/31/2023 Change Cash (A) 154,992 193,148 (38,154) Cash equivalents (B) - - - Short term investments (C) 849 883 (35) Total Cash, Cash Equivalents and Short-Term Investments 155,841 194,031 (A)+(B)+(C) (D) (38,190) Current financial payables (including bonds, but excluding current 293,813 146,200 147,613 portion of medium/long-term debt) (E) - Other financial payables and bank overdrafts 293,970 146,507 147,463 - - Hedging derivatives (157) (307) 150 Current portion of medium/long-term financial debt (F) 317,312 294,055 23,256 - Financial accruals and deferred income 4,889 6,001 (1,113) - Payables for business acquisitions 17,202 9,554 7,649 - Bank borrowings 171,086 164,978 6,108 - Lease Liability – current portion 124,135 113,522 10,613 Current Financial Indebtedness (E)+(F) (G) 611,126 440,255 170,869 Net Current Financial Indebtedness (G)-(D) (H) 455,284 246,224 209,059 Non current financial payables (I) 716,362 753,337 (36,975) - Bank borrowings – Non current portion 323,596 362,199 (38,603) - Payables for business acquisitions – Non current portion 4,540 7,229 (2,689) - Lease Liability – Non current portion 388,226 383,909 4,316 Bonds (J) 350,000 350,000 - - Eurobond 2020-2027 350,000 350,000 - Trade and other non current payables (K) - - - Non Current Financial Indebtedness (I)+(J)+(K) (L) 1,066,362 1,103,337 (36,975) Total Financial Indebtedness (H)+(L) (M) 1,521,646 1,349,561 172,084 68 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Excluding lease liabilities (€512,361 thousand at 30 June 2024), net financial indebtedness amounted to €1,009,285 thousand at 30 June 2024, broken down as follows: 06/30/2024 12/31/2023 Change (€ thousands) Cash and Cash Equivalents 154,992 193,148 (38,155) Short Term Investments 849 884 (35) Cash, Cash Equivalents and Short Term Investments 155,841 194,031 (38,190) Current Financial Indebtedness (excluding lease 486,990 326,733 160,257 liabilities) Net Current Financial Indebtedness (excluding lease 331,149 132,702 198,447 liabilities) Non current Financial Indebtedness (excluding lease 678,136 719,428 (41,292) liabilities) Total Financial Indebtedness (excluding lease liabilities) 1,009,285 852,130 157,155 In June 2024 the Group subscribed the last €50 million tranche of the €350 million loan with the European Investment Bank (EIB), of which €300 million was already subscribed, to support innovation and digitalization. This loan increases the available, unutilized irrevocable credit lines which amounted to €690 million at 30 June 2024. In the second quarter, as agreed with the lenders and based on the original loan agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit were updated to reflect the new targets included in the new sustainability plan. Long-term net financial debt, excluding lease liabilities, amounted to €678,136 thousand at 30 June 2024 (€719,428 thousand at 31 December 2023), a decrease of €41,292 thousand compared to 2023 explained mainly to the reclassification as short-term debt of the portions of long-term debt maturing in the next 12 months and deferred payments for acquisitions net of new subscriptions. The short-term portion of net financial debt, excluding lease liabilities, increased by €198,447 thousand, going from €132,702 thousand at 31 December 2023 to €331,149 thousand at 30 June 2024 due primarily to hot money transactions and utilization of short-term credit lines temporary coverage of higher total debt. The Group has unutilized, irrevocable lines of credit of €465 million which, in addition to the unutilized portion of the EIB loan of €225 million, the €74 million in available uncommitted credit lines and the cash generation expected for 2024, ensure enough liquidity to satisfy current obligations and support business needs. More specifically, the short-term portion includes mainly other bank debt linked to hot money transactions and utilization of short-term credit lines (€293,171 thousand), the short-term portions of long-term bank loans (€171,086 thousand), interest payable on other bank borrowings (€884 thousand) and the Eurobond (€1,489 thousand) and lastly, the best estimate of the deferred payments for acquisitions (€17,202 thousand). 69 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Bank loans, and the Eurobond 2020-2027 are included in the statement of financial position as follows: a. under the item “medium/long-term financial liabilities”: Balance at 06/30/2024 (€ thousands) Eurobond 2020-2027 350,000 Loan with the European Investment Bank 125,000 Other medium/long-term debt 198,596 Fees on Eurobond 2020-2027 and bank loans (1,427) Medium/long-term financial liabilities 672,169 b. under the item “financial payables (current)”: Balance at 06/30/2024 (€ thousands) Bank overdraft and other short-term debt (including current portion of other long-term debt) 464,547 Other financial payables 4,889 Fees on bank loans (966) Short-term financial liabilities 468,470 All the other items in the net financial position table can be easily referred to in the financial consolidated statements. 70 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 10. Financial liabilities The financial liabilities breakdown is as follows: Balance at Balance at Change (€ thousands) 06/30/2024 12/31/2023 Eurobond 2020-2027 350,000 350,000 - Loan with European Bank of Investments 125,000 75,000 50,000 Other medium long-term bank loans 198,596 287,199 (88,603) Fees on Eurobond 2020-2027 and bank loans (1,427) (1,932) 505 Total long-term financial liabilities 672,169 710,267 (38,098) Short term debt 468,470 316,413 152,057 - of which debts for account overdrafts and other short-term liabilities 292,661 146,299 146,362 - of which current portion of short-term bank loans 171,086 164,978 6,108 - of which for bank loans (965) (1,075) 110 Total short-term financial liabilities 468,470 316,413 152,057 Total financial liabilities 1,140,639 1,026,679 113,960 The main financial liabilities are detailed below. - Eurobond 2020-2027 This is a €350,000 thousand 7-year non-convertible bond with a fixed annual coupon of 1.125% that is listed on the Luxembourg Stock Exchange’s unregulated market. Nominal value Nominal interest rate Euro interest rate after Issue Date Debtor Maturity (€/000) (*) hedging 02/13/2020 Amplifon S.p.A. 02/13/2027 350,000 1.125% N/A Total in Euro 350,000 (*) The nominal interest rate is equal to the mid swap plus a spread. 71 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements - Bank loans These are the main bilateral and pooled loans which are detailed below: Nomi nal Hedged Nominal Outstandi intere nominal Interest rate after Issue Date Debtor Type Maturity value ng debt st amount hedging (**) (€/000) (€/000) rate (**) (*) Loan EIB 12/15/23 Amplifon S.p.A. Amortizing 12/15/32 125,000 125,000 (***) 04/06/20 Amplifon S.p.A. Amortizing 04/06/25 50,000 14,285 5.141% 14,285 0.880% 04/28/20 Amplifon S.p.A. Amortizing 04/28/25 50,000 37,500 4.855% 04/23/20 Amplifon S.p.A. Amortizing 06/30/25 35,000 16,625 4.572% 16,625 0.785% 08/03/20 Amplifon S.p.A. Amortizing 06/30/25 10,000 2,042 4.850% Other bank 12/23/21 Amplifon S.p.A. Amortizing 12/23/26 210,000 159,600 4.472% 159,600 0.963% loans 04/07/20 Amplifon S.p.A. Amortizing 04/07/25 150,000 60,000 4.884% 40,000 1.05% 04/29/20 Amplifon S.p.A. Amortizing 04/29/25 78,000 19,500 5.325% 13,650 1.414% RCF (no 12/29/23 Amplifon S.p.A. 09/30/26 60,000 60,000 4.900% cleandown) Total 768,000 494,552 244,160 (*) The nominal interest rate comprises the benchmark rate (Euribor) plus the applicable spread. (**) An Interest Rate Swap was used to hedge these loans against interest rate risk at the IRS rate plus a spread. (***) The rate for €75 million granted in 2023 is equal to 3.653% until 12/15/2027. It will subsequently be adjusted to reflect current market conditions and the Group may choose either a fixed or a floating rate. For the €50 million granted in 2024, there is a fixed rate applied of 3.902%. Group’s loans, bonds, and revolving credit lines are subject to the following financial covenants: - the net financial indebtedness, excluding lease liabilities, to Group net equity (Net Worth Ratio) must not exceed 1.65; - the Leverage Ratio, calculated as the ratio of net financial debt, excluding lease liabilities, to EBITDA recorded in the last four quarters (determined excluding the fair value of the stock-based payments, based solely on recurring business, and restated if the Group’s structure should change significantly), must not exceed 2.85; - the Interest Cover, calculated as the ratio of EBITDA (restated like the EBITDA used to calculate the leverage ratio) recorded in the last four quarters and the net interest owed in the same four quarters, must not exceed 4.9. Typically, in the event of relevant acquisitions, the first two ratios may be increased to 2.20 and 3.26, respectively, for a period of not more than 12 months, twice over the life of the respective loans. 72 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements The trigger events for these covenants and the “spikes” relative to significant acquisitions (i.e. increase in benchmark index for maximum 12 months and twice along the duration of the financial liability) are summarized below: Primary Credit Facility Agreement Leverage Ratio Net Worth Ratio Interest Cover Spike - Medium/long-term bilateral loans ≤ 3.26 (Leverage with top-tier banking institutions of Ratio) €99.5 million. ≤ 2.85 ≤ 1.65 - - Irrevocable credit lines with top-tier ≤ 2.20 (Net Worth banking institutions of €110 million. Ratio) - €14.3 million bank loan expiring in 2025; ≤ 3.26 (Leverage ≤ 2.85 - > 4.90 - Revolving irrevocable credit line of Ratio) €15 million -Medium/long-term bilateral loans with top-tier banking institutions of ≤ 3.26 (Leverage €36 million; Ratio) -Irrevocable lines of credit with ≤ 2.85 ≤ 1.65 > 4.90 premier banks amounted to €40 ≤ 2.20 (Net Worth million (of which €115 million is Ratio) explained by the sustainability-linked facility). The loan negotiated at the end of 2021, which replaced the €210 million syndicated loan used for the GAES acquisition, the new €300 million revolving facility negotiated at the end of May 2023 (both of which are sustainability-linked) and the €350 million loan, to date used for €125 million, granted by the European Investment Bank are not subject to covenants. However, the financial covenants on the other credit facilities will also be extended to these lenders as a result of a most favoured clause. The three financial covenants and the relative spikes, shown in the table above, are, therefore, applied to these credit lines to the extent that they are also applied to the other facilities. As at 30 June 2024 these ratios were as follows Value as at 06/30/2024 Net financial indebtedness excluding lease liabilities/Group net equity (Net Worth Ratio) 0.89 Net financial position excluding lease liabilities/EBITDA for the last four quarters (Leverage Ratio) 1.70 EBITDA for the last 4 quarters/Net financial expenses (Interest Cover) 16.63 73 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements The above-mentioned ratios were determined based on an EBITDA which was restated and normalized, in order to reflect the main changes. (€ thousands) Value as at 06/30/2024 Group EBITDA first half 2024 293,773 EBITDA July-December 2023 262,091 Fair value of stock grant assignment 19,651 EBITDA normalized (from acquisitions and disposals) 12,897 Acquisitions and non-recurring costs 6,102 EBITDA for the covenant calculation 594,514 The same agreements are also subject to other covenants applied in current international practice which limit the ability to issue guarantees and complete sales and lease backs, as well as extraordinary transactions involving the sale of assets. 11. Provision for risks and charges Provisions for risks and charges amounted to €22,544 thousand, slightly higher than the €20,647 thousand recorded at 31 December 2023. The provisions for risks at 30 June 2024 are detailed below: 06/30/2024 12/31/2023 Change (€ thousands) Product warranty provision 1,248 1,191 57 Provision on contract risks 3,585 3,420 165 Agents' leaving indemnities 13,265 13,092 173 Other reserves for risks and charges 2,618 1,676 942 Total Long-term provision for risks and charges 20,716 19,379 1,337 Product warranty provision 203 205 (2) Other reserves for risks and charges 1,625 1,063 562 Total Short-term provision for risks and charges 1,828 1,268 560 Total provision for risks and charges 22,544 20,647 1,897 74 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 12. Lease liabilities The lease liabilities stem from long-term leases and rental agreements. These liabilities are equal to the present value of future installments payable over the lease term. The finance lease liabilities are shown in the statement of financial position as follows: 06/30/2024 12/31/2023 Change (€ thousands) Short term lease liabilities 124,135 113,523 10,613 Long term lease liabilities 388,226 383,909 4,316 Total lease liabilities 512,361 497,432 14,929 During the reporting period, following costs have been booked in profit and loss: First Half 2024 (€ thousands) Interest charges on leased assets (8,916) Right-of-use depreciation (64,053) Costs for short-term leases and leases for low value assets (8,795) 13. Revenues from sales and services First Half 2024 First Half 2023 Change (€ thousands) Revenues from sale of products 1,028,228 965,404 62,824 Revenues from services 149,023 148,366 657 Total revenues from sales and services 1,177,251 1,113,770 63,481 Goods and services provided at a point in time 1,028,228 965,404 62,824 Goods and services provided over time 149,023 148,366 657 Total revenues from sales and services 1,177,251 1,113,770 63,481 Consolidated revenues from sales and services amounted to €1,117,251 thousand in the first six months of 2024, an increase of €63,481 thousand (+5.7%) compared to the same period of the prior year. The increase compared to the first half of 2023 is attributable for €50,412 thousand to organic growth (+4.6%), acquisitions for €38,301 thousand (+3.4%) and negative exchange differences for €25,232 thousand (-2.3%). Revenues of the Argentine subsidiary were impacted by the inflation accounting used pursuant to IAS 29 (Inflation Accounting), which had a positive impact on the Group’s organic growth and a negative impact on the exchange effect of 0.3%, respectively. 75 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 14. Operating costs, depreciation and impairment, financial income-expenses and taxes Operating costs amounted to €887,685 thousand in the first six months of 2024 (€853,766 thousand in the first six months of 2023), an increase of €33,919 thousand (+4%). “Amortization, depreciation and impairment” amounted to €144,826 thousand at 30 June 2024 higher than the €128,541 thousand recorded in the first six months of 2023. “Financial income, expenses and value adjustments to financial assets” came to €27,515 thousand in the first half of 2024 (€23,718 thousand in the first six months of 2023). The change in the reporting period of €3,797 thousand is explained by an increase in interest payable on short-term credit lines, on the floating rate portion of medium/long-term debt and on lease accounting attributable to both greater average debt and higher interest rates compared to the first half of 2023 which was partially offset by lower currency management expenses as well as financial income stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 (“Decreto Rilancio”). Current and deferred tax amounted to €33,558 thousand in the first six months of 2024, €2,382 thousand lower than in the first six months of 2023 (€31,176 thousand). The tax rate was 27.6% in the reporting period versus 27.7% at 30 June 2023. 76 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 15. Performance Stock Grant On May 7, 2024, the Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99 and subsequent amendments, resolved to allocate 551,800 target rights at the end of a 3-year vesting period as the first tranche of the stock grant cycle 2024- 2026. The fair value per unit of these granted stock grants during the reported period is €31.46. The assumptions used in determining the fair value are as follows: Valuation Model Binomial Tree (Cox-Ross-Rubinstein method) Price at grant date €32.26 Threshold - € Exercise price 0.00 Volatility (3 years) 33.51% Risk-free interest rate 3.038% Maturity (in years) 3 3 months after the approval date by the Board of Directors of the Maturity date Consolidated Financial Statements as at December 31, 2026 Expected Dividend Yield 0.87% The figurative cost of this grant cycle recorded in the income statement as of June 30, 2024, amounts to €843 thousand. Sustainable value sharing plan 2022-2027 The Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99, has resolved to allocate a maximum of 109,200 rights under the Sustainable Value Sharing Plan 2022-2027, reserved for the CEO and Key Executives of the Group (Beneficiaries), as described in the Information Document approved by the Shareholders' Meeting on April 24, 2024. The scheme is a composite incentive tool that operates through two distinct phases, of which the second phase is contingent and dependent on the progress of the first phase (referred to as "Phase A" and "Phase B," respectively). Phase A: Starting from the 2024 fiscal year, the Target MBO achieved and hypothetically due to the Beneficiaries under the applicable MBO Plan for the previous fiscal year (including the one related to 2023) will not be paid out. Instead, the Beneficiaries will receive a certain number of rights (the "Co-invested Rights") that will entitle them to receive shares at the end of the vesting period of Phase B described below, or earlier if Phase B does not vest. 77 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Phase B: If, in a given fiscal year, the Beneficiaries receive Co-invested Rights under the mechanism described above, they will participate in an additional and separate incentive tool based on financial instruments, wherein the Company allocates additional rights to them, equal in number to the Co-invested Rights. These rights (the "Matched Rights") will entitle the Beneficiaries to receive shares provided that certain performance targets linked to value generation and sustainable success of the Group are met by the end of the vesting period. Regarding the Sustainable Value Sharing Plan 2022-2027 reserved for the CEO and Key Executives of the Group, the conversion of the accrued MBO led to the allocation of 54,600 Co- invested Rights and 54,600 Matched Rights. The assumptions used in determining the fair value are as follows: PHASE A PHASE B Binomial Tree (Cox-Ross-Rubinstein method) Binomial Tree (Cox-Ross-Rubinstein method) Valuation model FV €31.46 €24.83 KPI - ESG/TSR Exercise price 0.00 Volatility (3 years) 33.51% 33.51% Risk-free interest rate 3.038% 3.038% Maturity (in years) 3 3 3 months after the approval date by the Board 3 months after the approval date by the Board of Directors of the of Directors of the Maturity date Consolidated Financial Statements as at Consolidated Financial Statements as at December 31, 2026 December 31, 2026 Expected dividend yield 0.87% 0.87% 16. Non-recurring significant events The first six months of 2024 were impacted by the following non-recurring items: First Half First Half (€ thousands) 2024 2023 Costs incurred to define and implement amendments to the Articles of (1,738) - Association including the enhanced voting rights Notional cost of the Amplifon shares assigned by the shareholder Ampliter (920) (10,394) Operating costs to the CEO Costs related to second phase of the GAES integration (723) (889) Costs related to Bay Audio integration (85) - EBITDA (3,466) (11,283) Profit (loss) before tax (3,466) (11,283) Impact of the above items on the tax burden for the period 979 3,296 Total net profit (loss) (2,487) (7,987) 78 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 17. Earnings (loss) per share Basic Earnings (loss) per share Basic earnings (loss) per share is obtained by dividing the net profit for the year attributable to the ordinary shareholders of the parent company by the weighted average number of shares outstanding in the period, considering purchases and disposals of own shares as cancellations and issues of shares. Earnings per share are determined as follows: Earnings per share First Half 2024 First Half 2023 Net profit (loss) attributable to ordinary shareholders (€ thousand) 87,793 81,357 Average number of shares outstanding in the period 225,979,292 224,276,860 Average number per share (€ per share) 0.38850 0.36275 Diluted earnings (loss) per share Diluted earnings (loss) per share is obtained by dividing the net profit for the period attributable to the ordinary shareholders of the parent by the weighted average number of shares outstanding during the year adjusted by the diluting effects of potential shares. In the calculation of shares outstanding, purchases and sales of treasury shares are considered as cancellation or issue of shares. The potential ordinary share categories refer to the possible conversion of Group employees’ stock options and stock grants’ attribution. The computation of the average number of outstanding potential shares is based on the average fair value of shares for the period; stock options and stock grants are excluded from the calculation since they have anti-diluting effects. Weighted average diluted number of shares outstanding First Half 2024 First Half 2023 Average number of shares outstanding in the period 225,979,292 224,276,860 Weighted average of potential and diluting ordinary shares 1,777,512 1,848,314 Weighted average of shares potentially subject to options in the period 227,756,804 226,125,174 The diluted earnings per share were determined as follows: Diluted earnings per share First Half 2024 First Half 2023 Net profit attributable to ordinary shareholders (€ thousand) 87,793 81,357 Average number of shares outstanding in the period 227,756,804 226,125,174 Average diluted earnings per share (€) 0.38547 0.35979 79 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 18. Transactions with parents and other related parties The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy. The Group is controlled directly by Ampliter S.r.l. (42.06% of share capital and 59.13% of voting rights), held for 100.0% by Amplifin S.r.l., which is owned for 100% by Susan Carol Holland. The transactions with related parties, including intercompany transactions, do not qualify as atypical or unusual, and fall within the Group’s normal course of business and are conducted at arm's-length as dictated by the nature of the goods and services provided. The following table details transactions with related parties. 06/30/2024 First Half 2024 Interest Trade Trade Other Revenues for Operating income and (€ thousand) receivables payables receivables sales and services (costs)/revenues expense Amplifin S.r.l. 15 (5) - - 15 - Total – Parent company 15 (5) - - 15 - Comfoor BV (The Netherlands) 35 2,482 - 40 (766) - Ruti Levinson Institute Ltd (Israel) 20 - - - - - Afik - Test Diagnosis & Hearing 20 - - - - 1 Aids Ltd (Israel) Total – Other related parties 75 2,482 - 40 (766) 1 Total related parties 90 2,477 - 40 (751) 1 Total as per financial statements 215,274 321,669 136,023 1,177,251 (887,685) (16,717) % of financial statements total 0.04% 0.77% 0.00% 0.00% 0.08% 0.00% The trade and other receivables refer primarily to: - the recovery of maintenance costs and building fees from Amplifin S.r.l.; - the receivables due by Amplifin S.r.l. for the renovation of the headquarters based on modern and efficient standards for the use of workspaces; - the trade receivables due by associates (mainly in Israel) who act as resellers and to which the Group supplies hearing aids. The trade payables and operating costs refer primarily to commercial transactions with Comfoor BV, a joint venture from which hearing protection devices are purchased and then distributed in Group stores. The lease for the Milan headquarters (leased to Amplifon by the parent company Amplifin) is recognized under right-of-use depreciation for €912 thousand, interest on leases for €236 thousand, lease liabilities of €11,181 thousand, and right-of-use asset of €10,027 thousand. 80 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 19. Contingent liabilities Currently the Group is not exposed to any particular risks, uncertainties or legal disputes in excess of the provisions already made in the financial statements, shown in Note 11. The usual tax audits are currently underway and no findings of note have been reported so far and the Group is, at any rate, confident in the adequacy of the measures implemented. 20. Financial risk management As this condensed consolidated interim financial report does not include all the additional information that is mandatorily included in the Annual Report relating to the management of financial risk, for a detailed analysis of financial risk management reference should be made to the Group’s 2023 Annual Report. 81 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 21. Translation of foreign companies’ financial statements The exchange rates used to translate non-Euro zone companies’ financial statements are as follows: 30 June 2024 2023 30 June 2023 As at As at Average exchange As at Average exchange rate 30 June 31 December rate 30 June Panamanian balboa 1.0705 1.0813 1.1050 1.0807 1.0866 Australian dollar 1.6079 1.6422 1.6263 1.5989 1.6398 Canadian dollar 1.4670 1.4685 1.4642 1.4565 1.4415 New Zealand dollar 1.7601 1.7752 1.7504 1.7318 1.7858 Singapore dollar 1.4513 1.4561 1.4591 1.4440 1.4732 US dollar 1.0705 1.0813 1.1050 1.0807 1.0866 Hungarian florin 395.1000 389.7600 382.80 380.85 371.93 Swiss franc 0.9634 0.9615 0.9260 0.9856 0.9788 Egyptian lira 51.4080 44.8310 34.1589 32.8841 33.5743 New Israeli shekel 4.0200 3.9951 3.9993 3.8828 4.0486 Argentine peso (*) 975.3883 975.3883 892.9239 278.5022 278.5022 Chilean peso 1021.5400 1016.2400 977.07 871.11 872.59 Colombian peso 4463.0000 4238.8300 4267.52 4960.43 4546.24 Mexican peso 19.5654 18.5089 18.7231 19.6457 18.5614 Chinese renminbi 7.7748 7.8011 7.8509 7.4894 7.8983 Indian rupee 89.2495 89.9862 91.9045 88.8443 89.2065 British pound 0.8464 0.8546 0.8691 0.8764 0.8583 Polish zloty 4.3090 4.3169 4.3395 4.6244 4.4388 Uruguayan peso 42.3314 41.9655 N.A. N.A. N.A. (*) Argentina is a highly inflationary country. As requested by IAS 29, profit and loss items have been converted at the closing exchange rate. The average Argentine peso exchange rate as at 30 June 2024 is 929.0128 and 229.1778 at 30 June 2023. 82 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 22. Segment reporting In accordance with IFRS 8 “Operating Segments”, the schedules related to each operating segment are shown below. The Amplifon Group’s business (distribution and customization of hearing solutions) is organized into three specific geographical areas which comprise the Group’s operating segments: Europe, Middle-East and Africa - EMEA - (Italy, France, The Netherlands, Germany, the United Kingdom, Spain, Portugal, Switzerland, Belgium, Hungary, Egypt, Poland, and Israel), Americas (USA, Canada, Chile, Argentina, Ecuador, Colombia, Panama, Mexico and Uruguay) and Asia-Pacific (Australia, New Zealand, India, and China). The Group also operates via centralized Corporate functions (Corporate bodies, general management, business development, procurement, treasury, legal affairs, human resources, IT systems, global marketing and internal audit) which do not qualify as operating segments under IFRS 8. These areas of responsibility, which coincide with the geographical areas (the Corporate functions are recognized under EMEA), represent the organizational structure used by management to run the Group’s operations. The reports periodically analyzed by the Chief Executive Officer and Top Management are divided up accordingly, by geographical area. Performances are monitored and measured for each operating segment/geographical area, through operating profit including amortization and depreciation (EBIT), along with the portion of the results of equity investments in associated companies valued by using the equity method. Financial expenses are not monitored insofar as they are based on corporate decisions regarding the financing of each region (own funds versus borrowings) and, consequently, neither are taxes. Items in the statement of financial position are analyzed by the geographical area without being separated from the Corporate functions which remain part of EMEA. All the information relating to the income statement and the statement of financial position is determined using the same criteria and accounting standards used to prepare the consolidated financial statements. 83 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements th (*) Statement of Financial Position as at June 30 , 2024 EMEA AMERICAS APAC ELIM. CONSOLIDATED (€ thousands) ASSETS Non-current assets Goodwill 1,005,129 300,607 617,142 - 1,922,878 Intangible fixed assets with finite useful life 306,376 62,519 64,115 - 433,010 Property, plant, and equipment 157,790 36,989 42,633 - 237,412 Right-of-use assets 378,228 48,618 65,944 - 492,790 Equity-accounted investments 2,726 - - - 2,726 Hedging instruments 8,713 - - - 8,713 Deferred tax assets 57,315 9,159 11,884 - 78,358 Deferred contract costs 10,560 1,240 28 - 11,828 Other assets 49,753 8,207 2,015 - 59,975 Total non-current assets 3,247,690 Current assets Inventories 64,505 8,557 10,001 - 83,063 Receivables 332,682 77,877 29,369 (88,631) 351,297 Deferred contract costs 5,328 964 169 - 6,461 Hedging instruments 2,369 - - - 2,369 Other financial assets 867 Cash and cash equivalents 154,992 Total current assets 599,049 TOTAL ASSETS 3,846,739 LIABILITIES Net Equity 1,138,588 Non-current liabilities Medium/long-term financial liabilities 672,169 Lease liabilities 306,092 39,714 42,420 - 388,226 Provisions for risks and charges 18,898 925 893 - 20,716 Liabilities for employees’ benefits 11,633 20 704 - 12,357 Deferred tax liabilities 64,731 22,973 15,167 - 102,871 Payables for business acquisitions 639 3,901 - - 4,540 Contract liabilities 149,862 14,299 2,008 - 166,169 Other long-term liabilities 45,112 188 3,075 - 48,375 Total non-current liabilities 1,415,423 Current liabilities Trade payables 282,893 75,345 51,867 (88,436) 321,669 Payables for business acquisitions 9,708 6,433 1,061 - 17,202 Contract liabilities 94,926 16,871 8,317 - 120,114 Other payables and tax payables 190,271 20,358 24,360 (195) 234,794 Hedging instruments 445 - - - 445 Provisions for risks and charges 1,170 658 - - 1,828 Liabilities for employees’ benefits 1,056 395 2,620 - 4,071 Short-term financial liabilities 468,470 Lease liabilities 87,209 12,842 24,084 - 124,135 Total current liabilities 1,292,728 Total liabilities 3,846,739 (*) The items in the statement of financial position are analyzed by the CEO and Top Management by geographic area without being separated from the Corporate functions which are included in EMEA. 84 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements st (*) Statement of Financial Position as at December 31 , 2023 EMEA AMERICAS APAC ELIM. CONSOLIDATED (€ thousands) ASSETS Non-current assets Goodwill 955,383 237,178 607,013 - 1,799,574 Intangible fixed assets with finite useful life 300,231 50,646 65,712 - 416,589 Property, plant, and equipment 148,081 29,929 43,506 - 221,516 Right-of-use assets 373,293 44,949 59,911 - 478,153 Equity-accounted investments 2,444 - - - 2,444 Hedging instruments 12,933 - - - 12,933 Deferred tax assets 63,112 7,307 12,282 - 82,701 Deferred contract costs 9,988 1,257 30 - 11,275 Other assets 30,896 14,025 1,914 - 46,835 Total non-current assets 3,072,020 Current assets Inventories 70,314 8,729 9,277 - 88,320 Receivables 311,674 70,510 34,213 (84,960) 331,437 Deferred contract costs 5,776 914 150 - 6,840 Hedging instruments 549 - - - 549 Other financial assets 901 Cash and cash equivalents 193,148 Total current assets 621,195 TOTAL ASSETS 3,693,215 LIABILITIES Net Equity 1,101,678 Non-current liabilities Medium/long-term financial liabilities 710,267 Lease liabilities 305,426 37,599 40,884 - 383,909 Provisions for risks and charges 17,668 896 815 - 19,379 Liabilities for employees’ benefits 12,119 143 701 - 12,963 Deferred tax liabilities 62,023 19,725 16,703 - 98,451 Payables for business acquisitions 5,088 2,141 - - 7,229 Contract liabilities 139,036 12,341 2,339 - 153,716 Other long-term liabilities 21,773 511 4,095 - 26,379 Total non-current liabilities 1,412,293 Current liabilities Trade payables 327,768 70,879 45,073 (84,765) 358,955 Payables for business acquisitions 4,283 4,889 382 - 9,554 Contract liabilities 96,941 15,279 7,823 - 120,043 Other payables and tax payables 195,847 28,063 31,819 (195) 255,534 Hedging instruments 242 - - - 242 Provisions for risks and charges 586 682 - - 1,268 Liabilities for employees’ benefits 1,069 381 2,263 - 3,713 Short-term financial liabilities 316,413 Lease liabilities 81,704 10,834 20,984 - 113,522 Total current liabilities 1,179,244 Total liabilities 3,693,215 (*) The items in the statement of financial position are analyzed by the CEO and Top Management by geographic area without being separated from the Corporate functions which are included in EMEA. 85 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements (*) Income statement - June 30, 2024 EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED (€ thousands) Revenues from sales and services 757,467 240,418 179,185 181 - 1,177,251 Operating costs (533,912) (180,528) (131,935) (41,310) - (887,685) Other income and costs 2,184 1,821 (95) 297 - 4,207 Gross operating profit by segment 225,739 61,711 47,155 (40,832) - 293,773 (EBITDA) Amortization, depreciation and impairment Intangible assets amortization (22,525) (7,216) (7,631) (12,681) - (50,053) Property, plant, and equipment (17,584) (3,859) (7,859) (773) - (30,075) depreciation Right-of-use depreciation (41,455) (6,985) (14,437) (1,176) - (64,053) Impairment losses and reversals of non- (609) - (36) - - (645) current assets (82,173) (18,060) (29,963) (14,630) - (144,826) Operating result by segment 143,566 43,651 17,192 (55,462) - 148,947 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and 283 - - - - 283 gains/losses on disposals of equity investments Interest income and expenses (16,717) Interest expenses on lease liabilities (8,916) Other financial income and expenses (707) Exchange gains and losses, and inflation (1,308) accounting Gain (loss) on assets accounted at fair (150) value (27,515) Net profit (loss) before tax 121,432 Current and deferred income tax Current income tax (27,957) Deferred tax (5,601) (33,558) Net profit (loss) 87,874 Net profit (loss) attributable to Minority 81 interests Net profit (loss) attributable to the Group 87,793 (*) The figures of the operating segments are net of the intercompany eliminations. 86 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Income statement - June 30, 2023 (*) EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED (€ thousands) Revenues from sales and services 735,482 212,661 165,381 246 - 1,113,770 Operating costs (**) (521,746) (157,095) (122,773) (52,152) - (853,766) Other income and costs (**) 2,753 1,538 14 449 - 4,754 Gross operating profit by segment 216,489 57,104 42,622 (51,457) - 264,758 (EBITDA) Amortization, depreciation and impairment Intangible assets amortization (20,260) (5,113) (7,415) (10,480) - (43,268) Property, plant, and equipment (16,178) (3,203) (5,676) (1,369) - (26,426) depreciation Right-of-use depreciation (38,673) (5,390) (13,479) (1,133) - (58,675) Impairment losses and reversals of non- (161) (5) (6) - - (172) current assets (75,272) (13,711) (26,576) (12,982) - (128,541) Operating result by segment 141,217 43,393 16,046 (64,439) - 136,217 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and 207 - - - - 207 gains/losses on disposals of equity investments Interest income and expenses (10,927) Interest expenses on lease liabilities (6,990) Other financial income and expenses (1,925) Exchange gains and losses, and inflation (4,609) accounting Gain (loss) on assets accounted at fair 526 value (23,718) Net profit (loss) before tax 112,499 Current and deferred income tax Current income tax (37,970) Deferred tax 6,794 (31,176) Net profit (loss) 81,323 Net profit (loss) attributable to Minority (34) interests Net profit (loss) attributable to the Group 81,357 (*) The figures of the operating segments are net of the intercompany eliminations. (**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information 87 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 23. Accounting policies 23.1 Presentation of the financial statements The consolidated financial statements as at June 30, 2024 were prepared in accordance with the historical cost method with the exception of derivatives, a few financial investments measured at fair value and assets and liabilities hedged against changes in fair value, as explained in more detail in this report, as well as on a going concern basis. With regard to the financial statements, the following is specified: - in the statement of financial position, the Group distinguishes between non-current and current assets and liabilities; - in the income statement, the Group classifies costs by nature insofar as this is deemed to more accurately represent the primarily commercial and distribution activities carried out by the Group; - comprehensive income statement: in addition to the net result for the year, it includes the effects of changes in exchange rates, the cash flow hedge reserve, the foreign currency basis spread reserve on derivative instruments and the actuarial gains and losses that have been recognized directly in changes in shareholders' equity, these items are divided according to whether or not they can be subsequently reclassified to the income statement; - statement of changes in net equity: the Group reports all the changes in net equity, including those deriving from shareholder transactions (payment of dividends and capital increases); - statement of cash flows: is prepared using the indirect method to determine cash flow from operations. 23.2 Use of estimates in preparing the financial statements The preparation of the financial statements and explanatory notes requires the use of estimates and assumptions particularly with regard to the following items: - revenues for services rendered over time recognized based on the effort or the input expended to satisfy the performance obligation; - allowances for impairment made based on the asset’s estimated realizable value; - provisions for risks and charges made based on a reasonable estimate of the amount of the potential liability, including with regard to any counterparty claims; - provisions for obsolete inventories in order to align the carrying value of inventories with the estimated realizable value; - provisions for employee benefits, calculated based on actuarial valuations; - amortization and depreciation of intangible assets and tangible fixed assets recognized based on the estimated remaining useful life and the recoverable amount; - income tax recognized based on the best estimate of the tax rate for the full year; - IRS and currency swaps (instruments not traded on regulated markets), marked to market at the reporting date based on the yield curve and market exchange rates, which are subject to credit/debit valuation adjustments based on market prices; 88 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements - the lease term duration was determined on a lease-by-lease basis and is comprised of the “non-cancellable” period along with the impact of any extension or early termination clauses if exercise of that clause is reasonably certain. This property valuation took into account circumstances and facts specific to each asset; - discount rate of leases falling within the scope of IFRS 16 (incremental borrowing rate) determined based on the IRS (reference interbank rate used as an index for fixed-rate mortgage loans) in the individual countries in which Amplifon Group companies operate, for maturities commensurate with the duration of the specific rental contract, plus the Parent Company’s credit spread and any costs for additional guarantees. In the rare instances when the IRS rate is not available (Egypt, Ecuador, Mexico and Panama), the risk-free rate was determined based on government bonds with maturities similar to the duration of the specific rental contract. Estimates and assumptions are periodically reviewed, and any changes made, following the change of the circumstances or the availability of better information, are recognized in the income statement. The use of reasonable estimates is essential to the preparation of the financial statements and does not affect their overall reliability. The Group verifies the existence of a loss in value of goodwill regularly once a year or in the event of impairment indicators. The impairment test is conducted for the groups of cash generating units to which the goodwill refers and based on which the Group values, directly or indirectly, the return on the investment that includes the goodwill. 89 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 23.3 IFRS standards/interpretations IFRS/interpretations approved by the IASB, endorsed in Europe and applied for the first time this year The following table lists the IFRS/interpretations approved by the IASB, endorsed in Europe and applied for the first time this year. Endorsement Publication in Effective date for Description Effective date date the G.U.C.E. Amplifon Amendments to IAS 1: “Presentation of Financial Statements: Classification of liabilities as current or non- current”, “Classification of Liabilities as Current or Non- 19 Dec ‘23 20 Dec ‘23 1 Jan ‘24 1 Jan ‘24 current - Deferral of Effective Date” and ‘’Non-current Liabilities with Covenants’’(issued on 23 January 2020, 15 July 2020 and 31 October 2022, respectively) Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback” 20 Nov ‘23 21 Nov ‘23 1 Jan ‘24 1 Jan ‘24 (issued on 22 September 2022) Amendments to IAS 7 ‘’Statement of Cash Flows and IFRS 7 Financial Instruments: 15 May 24 16 Jun ‘24 1 Jan ‘24 1 Jan ‘24 Disclosures: Supplier Finance Arrangements’’ (issued on 25 May 2023) IAS 1 amendments are related to the definitions of current and non-current liabilities, providing a more generalized approach to the classification of liabilities under the standard, based on the contractual agreements. The amendments clarify the criteria for classifying a liability as current or non-current and require new disclosures in financial statements regarding non-current liabilities that include covenants to be satisfied within twelve months after the reporting period. The Amplifon Group has applied the temporary exemption provided by the amendment to IAS 12, issued by the International Accounting Standards Board (“IASB”) on 23 May 2023, regarding the recognition and related disclosure to be provided in the consolidated financial statements in relation to deferred tax assets and liabilities arising from the application of the minimum level of taxation (“Global Minimum Tax”) provided by Directive (EU) 2022/2523 of 14 December 2022 (the “Directive”), under the Global Anti-Base Erosion Model Rules (Pillar Two). Toward this end, on 28 December 2023, Legislative Decree No. 209 of 27 December 2023 implementing the international tax reform which came into effect on 29 December 2023, containing the Italian provisions related to Pillar Two, was published in the Official Gazette. 90 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements In light of the above, an analysis was carried out in order to estimate the potential impact of Pillar Two application on the Group in 2024 and at 30 June 2024. Based on this analysis, the Pillar Two rules should not have a material impact on the Group in 2024. IFRS 16 amendments are related to the definitions of liabilities derived from leasebacks and the accounting treatment of any gains or losses stemming from these transactions. IAS 7 and IFRS 7 amendments refer to the disclosure of information deemed relevant for the purposes of Supplier Finance Arrangements.The purpose of these amendments is to make it easier for financial statement users to understand the effects of these arrangements on liabilities, cash flows and exposure to liquidity risk. The adoption of the standards and interpretations described above did not have a material impact on the measurement of the Group’s assets, liabilities, costs, and revenues. 23.4 Future accounting standards and interpretations IFRS standards/interpretations approved by IASB, but not endorsed in Europe The following are the international accounting standards, interpretations, amendments to existing accounting standards and interpretations, or specific provisions contained in the standards and interpretations approved by the IASB which, at 8 July 2024, have yet to be endorsed for adoption in Europe. Description Effective date Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack Periods beginning on or after 1 Jan ‘25 of Exchangeability” (issued on 15 August 2023) Amendments to IFRS 9 and IFRS7 “Classification and Measurement of Financial Periods beginning on or after 1 Jan ‘26 Instruments” (issued on 30 May 2024) IAS 7 amendments refer to the disclosure of information deemed relevant for the purposes of Supplier Finance Arrangements. The amendments to IAS 21 proposed by IASB provide clarification as to exchange whether a currency is exchangeable and which exchange rate to be use if it is not. The amendments to IFRS9 and IFRS7 proposed by IASB are related to the settlement of liabilities through electronic payment systems and to clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features. The adoption of the standards and interpretations approved and not endorsed above is not expected to have a material impact on the measurement of the Group’s assets, liabilities, costs and revenues. The adoption of the standards and interpretations described above did not have a material impact on the measurement of the Group’s assets, liabilities, costs, and revenues. 91 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements 24. Subsequent events During July, the Amplifon Group continued its external growth with the acquisition of a U.S. Miracle-Ear network’s franchisee active in the Northeastern United States through 14 stores and additional 19 stores in China, 8 in France, 3 in Germany and 2 in Italy. On July 11th, the Company announced the results of the option and pre-emption offer of shares subject to withdrawal made pursuant to article 2437 quater, paragraph 2, of the Italian Civil Code, therefore completing the procedure for the approval of enhancements of the increased voting rights mechanism begun by the Shareholders’ Meeting on April 30th, 2024. The relative amendments to the Articles of Association remain fully implemented. As the option and pre- emption offer was fully subscribed, Amplifon’s share capital remains unchanged. th Milan, July 30 , 2024 CEO Enrico Vita 92 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Annexes Annex I Consolidation scope As required by articles 38 and 39 of Law 127/91 and article 126 of Consob’s resolution 11971 dated 14 May 1999, as amended by resolution 12475 dated 6 April 2000, the following is the list of companies included in the consolidation scope of Amplifon S.p.A. at 30 June 2024. Parent company: Company name Head office Currency Share capital Amplifon S.p.A. Milan (Italy) EUR 4,527,772 Subsidiaries consolidated using the line-by-line method: Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 06/30/2024 Amplifon Rete Milan (Italy) I EUR 19,250 2.6% Amplifon Italia S.p.A. Milan (Italy) D EUR 100,000 100.0% Amplifon France SAS Arcueil (France) D EUR 173,550,898 100.0% SCI Eliot Leslie Lyon (France) I EUR 610 100.0% New Ear SAS Guidel (France) I EUR 502,830 100.0% Ghama EURL Guidel (France) I EUR 5,000 100.0% Adagio SARL Guidel (France) I EUR 14,000 100.0% Audition Guidel EURL Guidel (France) I EUR 1,500 100.0% Labo Audio SAS Libourne (France) I EUR 50,000 100.0% Toumelin SAS Pornichet (France) I EUR 7,622 100.0% Pornic Audition SAS Pornic (France) I EUR 118,000 100.0% Montfermeil Audio Montfermeil SAS I EUR 1,000 100.0% (France) Prades-le-Lez Amplitude Audition SAS I EUR 1,000 100.0% (France) Boulben Audition – Majuni SAS Queven (France) I EUR 15,000 100.0% Vitry-Sur-Seine OSX Solutions Auditives SAS I EUR 1,000 100.0% (France) Roquefort-Les- Nouvelle Audition SAS I EUR 5,000 100.0% Pins (France) Baillargues Ondes DBR SAS I EUR 3,000 100.0% (France) Audition Fontaine SAS Barentin (France) I EUR 100,000 100.0% Armor audition SAS Brest (France) I EUR 7,622 100.0% AFL audition Frank Lefevre SAS Brest (France) I EUR 200,000 100.0% GFL audition SAS Rennes (France) I EUR 10,000 100.0% Grousseau SAS Beauvais (France) I EUR 7,700 100.0% Nadov Audition SAS Juvisy (France) I EUR 5,000 100.0% Villefranche de Pastel Audiologie SAS I EUR 835,970 100.0% Lauragais (France) 93 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 06/30/2024 Villefranche de Pastel Audition SAS I EUR 10,000 100.0% Lauragais (France) Acoustiques des Halles SAS Biarritz (France) I EUR 80,000 100.0% Saint-André-de- Audition Détente SAS I EUR 2,222 100.0% Sangonis (France) 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% Amplifon Portugal SA Lisboa (Portugal) I EUR 15,520,187 100.0% Budapest Amplifon Magyarország Kft D HUF 723,500,000 100.0% (Hungary) Amplibus Magyarország Kft Budaörs (Hungary) I HUF 3,000,000 100.0% Amplifon AG Baar (Switzerland) D CHF 1,000,000 100.0% Doesburg Amplifon Nederland B.V. D EUR 74,212,052 100.0% (The Netherlands) Doesburg Auditech B.V. I EUR 22,500 100.0% (The Netherlands) Doesburg Electro Medical Instruments B.V. I EUR 16,650 100.0% (The Netherlands) Doesburg Beter Horen B.V. I EUR 18,000 100.0% (The Netherlands) Amplifon Customer Care Service B.V. Elst (Olanda) I EUR 18,000 100.0% Bruxelles Amplifon Belgium N.V. D EUR 495,800 100.0% (Belgium) Lussemburgo Amplifon RE SA D EUR 3,700,000 100.0% (Luxembourg) Blankenfelde- Pilot Blankenfelde Medizinisch- Mahlow D EUR 34,595 100.0% Elektronische Gerate GmbH (Germany) Hamburg Amplifon Deutschland GmbH D EUR 6,026,000 100.0% (Germany) Willroth Focus Hören AG I EUR 485,555 100.0% (Germany) Willroth focus hören Deutschland GmbH I EUR 25,000 100.0% (Germany) Buchholz Hörvergnügen GmbH I EUR 25,000 100.0% (Germany) Meppen Audea Hörcenter GmbH I EUR 250,000 100.0% (Germany) Münster Pavel Hören und Sehen GmbH & Co. KG I EUR 122,566 100.0% (Germany) Duisburg Hörwelt Duisburg GmbH I EUR 25,000 100.0% (Germany) Cologne Wilms Hörsysteme GmbH I EUR 25,000 100.0% (Germany) Amplifon Poland Sp. z o.o. Lodz (Poland) D PLN 3,348,280 100.0% Manchester Amplifon UK Ltd D GBP 130,951,168 100.0% (United Kingdom) Manchester Amplifon Ltd I GBP 1,800,000 100.0% (United Kingdom) Manchester Ultra Finance Ltd I GBP 75 100.0% (United Kingdom) Amplifon Cell Ta' Xbiex (Malta) D EUR 2,500,125 100.0% Medtechnica Ortophone Ltd (*) Tel Aviv (Israel) D ILS 1,100 90.0% Amplifon Middle East SAE Cairo (Egypt) D EGP 3,000,000 51.0% St. Paul Miracle Ear Inc. I USD 5 100.0% (United States) 94 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 06/30/2024 Minneapolis Elite Hearing, LLC I USD 1,000 100.0% (United States) St. Paul Amplifon Hearing Health Care. Inc. I USD 10 100.0% (United States) New York Ampifon IPA, LLC I USD - 100.0% (United States) Dover Amplifon USA Inc. D USD 52,500,010 100.0% (United States) Waco METX, LLC I USD - 100.0% (United States) Waco MEFL, LLC I USD - 100.0% (United States) Waco METampa, LLC I USD - 100.0% (United States) Waco MENM, LLC I USD - 100.0% (United States) Wilmington ME Flagship, LLC I USD - 100.0% (United States) Minneapolis ME Pivot Holdings, LLC I USD 2,000,000 100.0% (United States) Minneapolis MEOH, LLC I USD - 100.0% (United States) Vancouver Miracle Ear Canada Ltd. I CAD 141,601,200 100.0% (Canada) 2829663 Ontario Inc (**) Milton (Canada) I CAD - 100.0% Fort McMurray Ossicle Fort McMurray Inc (**) I CAD - 100.0% (Canada) Lethbridge Southern Alberta Hearing Aid Ltd (**) I CAD - 100.0% (Canada) Raindrop Hearing Clinici Inc (**) Toronto (Canada) I CAD - 100.0% Scarborough The Hearing Clinic (**) I CAD - 100.0% (Canada) Terrace Hearing Clinic Ltd. (**) Terrace (Canada) I CAD - 100.0% Manitoba Lisa Reid Audiology Hearing Centres (**) I CAD - 100.0% (Canada) Manitoba - Great to Hear, Inc (**) I CAD 100.0% (Canada) - Ontario, Inc (**) Ontario (Canada) I CAD 100.0% - Living Sounds Hearing Centre Ltd. (**) Alberta (Canada) I CAD 100.0% Professional Hearing Services - Ontario (Canada) I CAD 100.0% Ltd./100391416 Ontario Ltd. (**) Nova Scotia - Sackville Hearing Centre Limited (**) I CAD 100.0% (Canada) - Hometown Hearing Centre Inc (**) Bancroft (Canada) I CAD 100.0% - Newlife Hearing Inc. (**) St. John's (Canada) I CAD 100.0% Provincial Hearing Aid Service (Halifax) - Halifax (Canada) I CAD 100.0% Ltd. (**) I CAD - 100.0% Audia Hearing Aid Centre Inc. (**) Ontario (Canada) I CAD - 100.0% The Hearing Institute of Ontario,Inc.(**) Ontario (Canada) Prince Rupert - Rupert Hearing Ltd (**) I CAD 100.0% (Canada) Santiago de Chile GAES S.A. (Chile) I CLP 1,901,686,034 100.0% (Chile) GAES Servicios Corporativo de Santiago de Chile I CLP 10,000,000 100.0% Latinoamerica SpA (Chile) Santiago de Chile Audiosonic Chile S.A. I CLP - 99.0% (Chile) Buenos Aires GAES S.A. (Argentina) I ARS 120,542,331 100.0% (Argentina) 95 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 06/30/2024 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% Ciudad de México Centros Auditivos GAES Mexico sa de cv I MXN 276,477,133 100.0% (Mexico) Compañía de Audiologia y Servicios Aguascalientes I MXN 43,306,212 100.0% Medicos sa de cv (Mexico) GAES Panama S.A. Panama (Panama) I PAB 510,000 100.0% Montevideo Audical S.A.S D UYU 500,000 100.0% (Uruguay) Montevideo Centro Auditivo S.A.S D UYU 500,000 100.0% (Uruguay) Montevideo Ikako S.A. D UYU 100,000 100.0% (Uruguay) 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% Brisbane Otohub Unit Trust (**) D AUD - 100.0% (Australia) Brisbane Otohub Australasia Pty Ltd D AUD 10 100.0% (Australia) Brisbane Attune Hearing Pty Ltd D AUD 14,771,093 100.0% (Australia) Brisbane Attune Workplace Hearing Pty Ltd I AUD 1 100.0% (Australia) Brisbane Ear Deals Pty Ltd I AUD 300,000 100.0% (Australia) Bay Audio Pty Ltd Sydney (Australia) D AUD 10,000 100.0% Singapore Amplifon Asia Pacific Pte Limited I SGD 1,000,000 100.0% (Singapore) Auckland Auckland Hearing Ltd I NZD - 100.0% (New Zealand) Takapuna Amplifon NZ Ltd I NZD 130,411,317 100.0% (New Zealand) Takapuna Bay Audiology Ltd I NZD - 100.0% (New Zealand) Auckland Dilworth Hearing Ltd I NZD - 100.0% (New Zealand) Amplifon India Pvt Ltd Gurgaon (India) I INR 2,050,000,000 100.0% Beijing Amplifon Hearing Technology Běijīng (China) D CNY 507,250,000 100.0% Center Co. Ltd Tianjin Amplifon Hearing Technology Co. Tianjin (China) I CNY 3,500,000 100.0% Ltd Shijiazhuang Amplifon Hearing Shijiazhuang I CNY 100,000 100.0% Technology Center Co. Ltd (China) Amplifon (China) Investment Co. Ltd Shanghai (China) D CNY 363,250,000 100.0% Hangzhou Amplifon Hearing Aid Co. Ltd Hangzhou (China) D CNY 11,000,000 100.0% Zhengzhou Yuanjin Hearing Technology Zhengzhou (China) I CNY - 100.0% Co., Ltd. Wuhan Amplifon Hearing Aid Co., Ltd. Wuhan (China) I CNY 40,000,000 100.0% Shanghai Amplifon Hearing Technology Shanghai (China) I CNY 50,000,000 100.0% Co. Ltd Nanjing Amplifon Hearing Aid Co. Ltd Nanjing (China) I CNY 15,000,000 100.0% Shanxi Amplifon Hearing Aid Co., Ltd. Taiyuan (China) I CNY 30,000,000 100.0% Henan Amplifon Hearing Aid Co., Ltd. Luoyang (China) I CNY 1,000,000 100.0% Fuzhou Tingan Medical Device Co. Ltd Fuzhou (China) I CNY 20,000,000 100.0% Chongqing Amplifon Hearing Aid Co., Chongqing (China) I CNY 10,000,000 100.0% Ltd. 96 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 06/30/2024 Sichuan Amplifon Hearing Aid Co., Ltd. Chengdu (China) I CNY 9,000,000 100.0% Xi'an Ansheng Medical Equipment Co. Xi'an (China) I CNY 16,000,000 100.0% Ningxia Listening Shunan Medical Yinchuan (China) I CNY 16,000,000 100.0% Equipment Co. Yunnan Amplifon Hearing Aid Co., Ltd. Kunming (China) I CNY 16,000,000 100.0% Shaanxi Xinhongchun Medical Xi'an (China) I CNY 18,000,000 100.0% Equipment Co. (*) Medtechnica Ortophone Ltd, despite being 90% owned by Amplifon, is consolidated at 100% without exposure of non-controlling interests due to the put-call option exercisable from 2019 and related to the purchase of the remaining 10%. (**) Inactive companies Companies valued using the equity method: Direct/Indirect Share % held as at Company name Head office Currency ownership Capital 06/30/2024 Doesburg Comfoor BV (*) I EUR 18,000 50.0% (The Netherlands) Emmerich am Rhein Comfoor GmbH (*) I EUR 25,000 50.0% (Germany) Ramat HaSharon Ruti Levinson Institute Ltd (**) I ILS 105 16.0% (Israel) Afik - Test Diagnosis & Hearing Aids Jerusalem (Israel) I ILS 100 16.0% Ltd (**) Mairangi Bay Lakeside Specialist Centre Ltd (**) I NZD - 50.0% (New Zealand) (*) Joint Venture (**) Related companies 97 --- Interim Financial Report as at 30 June 2024 > Condensed Interim Consolidated Financial Statements Declaration in respect of the Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98 We, the undersigned, Enrico Vita, Chief Executive Officer and Gabriele Galli, Executive Responsible for Corporate Accounting Information for Amplifon S.p.A., taking into account the provisions of article § 154-bis, paragraphs 3 and 4 of Law no. 58/98, certify: - the adequacy, by reference to the characteristics of the business and - the effective application of the administrative and accounting procedures for the preparation of the condensed interim consolidated financial statements during the period 1 January – 30 June 2024. We also certify that the condensed interim consolidated financial statements at 30 June 2024: - have been prepared in accordance with the international accounting standards recognized in the European Union under the EC regulation no. 1606/2002 of the European Parliament and of the Council of 19 July 2002; - correspond to the underlying accounting entries and records; - provides a true and fair view of the performance and financial position of the issuer and of all of the companies included in the consolidation area. The report on operations includes a reliable operating and financial review of the Company and all of the companies included in the consolidation area. th Milan, July 30 , 2024 CEO Executive Responsible for Corporate Accounting Information Enrico Vita Gabriele Galli 98 --- KPMG S.p.A. Revisione e organizzazione contabile Via Vittor Pisani, 25 20124 MILANO MI Telefono +39 02 6763.1 Email it-fmauditaly@kpmg.it PEC kpmgspa@pec.kpmg.it (This independent auditors’ report has been translated into English solely for the convenience of international readers. Accordingly, only the original Italian version is authoritative.) Report on review of condensed interim consolidated financial statements To the shareholders of Amplifon S.p.A. Introduction We have reviewed the accompanying condensed interim consolidated financial statements of the Amplifon Group comprising the statement of financial position as at 30 June 2024, the income statement and the statements of comprehensive income, changes in equity and cash flows for the six months then ended and notes thereto. The directors are responsible for the preparation of these condensed interim consolidated financial statements in accordance with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34), endorsed by the European Union. Our responsibility is to express a conclusion on these condensed interim consolidated financial statements based on our review. Scope of review We conducted our review in accordance with Consob (the Italian Commission for Listed Companies and the Stock Exchange) guidelines set out in Consob resolution no. 10867 dated 31 July 1997. A review of condensed interim consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA Italia) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the condensed interim consolidated financial statements. 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 KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del Padova Palermo Parma Perugia VAT number IT00709600159 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 --- Amplifon Group Report on review of condensed interim consolidated financial statements 30 June 2024 Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements of the Amplifon Group as at and for the six months ended 30 June 2024 have not been prepared, in all material respects, in accordance with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34), endorsed by the European Union. Milan, 31 July 2024 KPMG S.p.A. (signed on the original) Claudio Mariani Director of Audit 2