--- title: "Interim Financial Report as at 31 March 2024" period: "2024-q1" kind: "financial-report" source_url: "https://corporate.amplifon.com/content/dam/amplifon/archive/en/investors/financial-reports/2024/Interim-Report-Q1-2024-15-05-2024.pdf" downloaded_at: "2026-06-06" pdf_sha256: "a84dc09427d31b862a95bde12e3f9b8baaa9ada92c5ba0b7bac7bde05aeb4425" pdf_size_bytes: 2899799 extractor: "pdfjs-dist-6.0.227" --- --- Interim Financial Report as at 31 March 2024 INDEX PREFACE ....................................................................................................................................4 INTERIM MANAGEMENT REPORT AS AT 31 MARCH 2024............................................................5 HIGHLIGHTS...............................................................................................................................6 MAIN ECONOMIC AND FINANCIAL FIGURES ...............................................................................7 INDICATORS...............................................................................................................................9 SHAREHOLDER INFORMATION ................................................................................................. 11 RECLASSIFIED CONSOLIDATED INCOME STATEMENT ................................................................ 13 RECLASSIFIED CONSOLIDATED BALANCE SHEET ........................................................................ 15 CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT....................................... 17 INCOME STATEMENT REVIEW .................................................................................................. 18 BALANCE SHEET REVIEW .......................................................................................................... 30 ACQUISITION OF COMPANIES AND BUSINESSES ....................................................................... 40 OUTLOOK ................................................................................................................................ 41 CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 MARCH 2024........... 43 CONSOLIDATED STATEMENT OF FINANCIAL POSITION.............................................................. 44 CONSOLIDATED INCOME STATEMENT ...................................................................................... 46 STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME ..................................................... 47 STATEMENT OF CHANGES IN CONSOLIDATION EQUITY............................................................. 48 STATEMENT OF CONSOLIDATED CASH FLOWS .......................................................................... 50 SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS .......... 51 NOTES...................................................................................................................................... 52 1. General Information.............................................................................................................52 2 --- Interim Financial Report as at 31 March 2024 2. Impacts of the conflict in Middle-East, Ukraine and climate change on the Group’s performance and financial position...............................................................................................53 3. Acquisitions e goodwill.........................................................................................................54 4. Intangible fixed assets with finite useful life........................................................................56 5. Property, plant, and equipment...........................................................................................57 6. Right-of-use assets ...............................................................................................................58 7. Share capital and treasury shares........................................................................................59 8. Net financial indebtedness...................................................................................................60 9. Financial liabilities ................................................................................................................63 10. Provision for risks and charges.............................................................................................66 11. Lease liabilities .....................................................................................................................67 12. Revenues from sales and services........................................................................................67 13. Operating costs, depreciation and impairment, financial income-expenses and taxes......68 14. Non-recurring significant events..........................................................................................68 15. Earnings (loss) per share ......................................................................................................69 16. Transactions with parents and other related parties ..........................................................70 17. Contingent liabilities ............................................................................................................71 18. Financial risk management ..................................................................................................71 19. Translation of foreign companies’ financial statements......................................................72 20. Segment Reporting...............................................................................................................73 21. Accounting policies ..............................................................................................................78 22. Subsequent events...............................................................................................................81 ANNEXES ................................................................................................................................. 83 Consolidation scope............................................................................................................. 83 Declaration in respect of the Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98 ............................................................................................ 88 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 31 March 2024 PREFACE This Interim Financial Report as at 31 March 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 31 MARCH 2024 --- Interim Financial Report as at 31 March 2024 > Interim Management Report HIGHLIGHTS In the first three months of 2024 Amplifon recorded a noticeable increase in revenues across all geographies which was achieved thanks to above-market organic growth and acquisitions. There was also strong improvement in profitability attributable to the productivity improvement actions taken in the second part of last year. First three months 2024 First three months 2023 (€ thousands) Recurring Total Recurring Total Economic figures: Revenues from sales and services 573,109 573,109 540,251 540,251 Gross operating profit (loss) (EBITDA) 136,790 135,695 123,533 115,641 Operating profit (loss) (EBIT) 65,728 64,633 61,458 53,566 Profit (loss) before tax 51,273 50,178 49,510 41,618 Group net profit (loss) 35,669 34,864 34,885 29,299 The first three months of the year closed with: - Turnover of €573,109 thousand, an increase of 6.1% compared to the same period of the prior year (+8.8% at constant exchange rates). - a recurring gross operating margin (EBITDA) of €136,790 thousand, 10.7% higher than in the three months of 2023, with an EBITDA margin of 23.9% (+1.0 p.p. against the comparison period). - recurring Group net profit of €35,669 thousand, an increase of €784 thousand (+2.2%) compared to the first three months of 2023. Net financial debt, excluding lease liabilities, amounts to €883,307 thousand compared to €852,130 thousand at 31 December 2023, confirming the Group’s ability to generate operating cash flow. Free cash flow reached a positive €37,214 thousand (€46,301 thousand in the first three months of 2023) after €29,941 thousand in capital expenditure (€26,625 thousand in the comparison period). Cash-outs for acquisitions (which amounted to €71,310 thousand versus €38,799 thousand in the first quarter of 2023), along with the €5,898 thousand in positive flows generated by financial assets, bring cash flow for the reporting period to negative €28,198 thousand versus a positive €5,706 thousand in the first quarter of 2023. 6 --- Interim Financial Report as at 31 March 2024 > Interim Management Report MAIN ECONOMIC AND FINANCIAL FIGURES First three months 2024 First three months 2023 (€ thousands) % on % on Change % Non- revenues Non- revenues on Recurring recurring Total recurring Recurring recurring Total recurring recurring Economic figures: Revenues from sales and 573,109 - 573,109 100.0% 540,251 - 540,251 100.0% 6.1% services Gross operating profit (loss) 136,790 (1,095) 135,695 23.9% 123,533 (7,892) 115,641 22.9% 10.7% (EBITDA) Operating profit (loss) before the depreciation and 78,180 (1,095) 77,085 13.6% 73,407 (7,892) 65,515 13.6% 6.5% amortization of PPA related assets (EBITA) Operating profit (loss) 65,728 (1,095) 64,633 11.5% 61,458 (7,892) 53,566 11.4% 6.9% (EBIT) Profit (loss) before tax 51,273 (1,095) 50,178 8.9% 49,510 (7,892) 41,618 9.2% 3.6% Group net profit (loss) 35,669 (805) 34,864 6.2% 34,885 (5,586) 29,299 6.5% 2.2% 03/31/2024 12/31/2023 Change (€ thousands) Financial figures: Non-current assets 3,083,290 2,976,387 106,903 Net invested capital 2,528,710 2,451,239 77,471 Group net equity 1,137,364 1,100,919 36,445 Total net equity 1,138,429 1,101,678 36,751 Net financial indebtedness 883,307 852,130 31,177 Lease liabilities 506,974 497,431 9,543 Total lease liabilities and net financial indebtedness 1,390,281 1,349,561 40,720 First three months 2024 First three months 2023 (€ thousands) Free cash flow 37,214 46,301 Cash flow generated from (absorbed by) business combinations (71,310) (38,799) Cash flow provided by (used in) financing activities 5,898 (1,796) Net cash flow from the period (28,198) 5,706 Effect of exchange rate fluctuations on the net financial position (2,979) (2,064) Net cash flow from the period with changes for exchange rate fluctuations (31,177) 3,642 7 --- Interim Financial Report as at 31 March 2024 > Interim Management Report - 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. - 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. 8 --- Interim Financial Report as at 31 March 2024 > Interim Management Report INDICATORS 03/31/2024 12/31/2023 03/31/2023 Net financial indebtedness (€ thousands) 883,307 852,130 826,351 Lease liabilities (€ thousands) 506,974 497,431 479,014 Total lease liabilities & net financial indebtedness (€ thousands) 1,390,281 1,349,561 1,305,365 Net equity (€ thousands) 1,138,429 1,101,678 1,047,292 Group Net Equity (€ thousands) 1,137,364 1,100,919 1,046,141 Net financial indebtedness/Net Equity 0.78 0.77 0.79 Net financial indebtedness/Group Net Equity 0.78 0.77 0.79 Net financial indebtedness/EBITDA 1.52 1.50 1.48 EBITDA/Net financial expenses 17.55 18.03 25.74 Earnings per share (EPS) (€) 0.15441 0.69285 0.13048 Diluted EPS (€) 0.15344 0.68809 0.15535 EPS (€) adjusted for non-recurring transactions and amortization/depreciation related to purchase price allocations to tangible 0.20222 0.91271 0.19629 and intangible assets Group Net Equity per share (€) 5.029 4.880 4.653 Period-end price (€) 33.80 31.34 31.94 Highest price in period (€) 34.37 36.27 32.19 Lowest price in period (€) 29.18 24.49 25.02 Share price/net equity per share 6.721 6.422 6.864 Market capitalization (€ millions) 7,643.97 7,074.89 7,173.10 Number of shares outstanding 226,152,896 225,746,472 224,580,485 - 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 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 9 --- Interim Financial Report as at 31 March 2024 > Interim Management Report 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. 10 --- Interim Financial Report as at 31 March 2024 > Interim Management Report SHAREHOLDER INFORMATION Main shareholders The main shareholders of Amplifon S.p.A. as at 31 March 2024 are: Ampliter S.r.l. Treasury shares Market 42.1% 57.8% 0.1% % of the total No. of ordinary Shareholder % held share capital in shares (*) voting rights Ampliter S.r.l. 95,224,369 42.06% 59.12% Treasury shares 235,724 0.10% 0.07% Market 130,928,527 57.84% 40.81% Total 226,388,620 (*) 100.00% 100.00% (*) Number of shares related to the share capital registered with the Company registrar on 31 March 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 01 January 2024 to 29 March 2024. 11 --- Interim Financial Report as at 31 March 2024 > Interim Management Report As at 29 March 2024 market capitalization was €7,643.97 million. Dealings in Amplifon shares in the screen-based stock market Euronext Milano (EXM) during the period 01 January 2024 – 29 March 2024, showed: - average daily value: €15,993,969.25; - average daily volume: €507,900 shares; - total volume traded of 33,013,506 shares, or 14.6% of the total number of shares comprising the share capital, net of treasury shares. 12 --- Interim Financial Report as at 31 March 2024 > Interim Management Report RECLASSIFIED CONSOLIDATED INCOME STATEMENT First three months 2024 First three months 2023 (€ thousands) Change % Non- % on Non- % on on Recurring recurring (*) Total recurring Recurring recurring (*) Total recurring recurring Revenues from sales and 573,109 - 573,109 100.0% 540,251 - 540,251 100.0% 6.1% services Operating costs (**) (439,596) (1,095) (440,691) -76.7% (420,195) (7,892) (428,087) -77.8% 4.6% Other income and costs (**) 3,277 - 3,277 0.6% 3,477 - 3,477 0.6% -5.8% Gross operating profit (loss) 136,790 (1,095) 135,695 23.9% 123,533 (7,892) 115,641 22.9% 10.7% (EBITDA) Depreciation, amortization and impairment losses on (27,386) - (27,386) -4.9% (21,989) - (21,989) -4.1% -24.5% non-current assets Right-of-use depreciation (31,224) - (31,224) -5.4% (28,137) - (28,137) -5.2% -11.0% Operating result before the amortization and 78,180 (1,095) 77,085 13.6% 73,407 (7,892) 65,515 13.6% 6.5% impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (12,452) - (12,452) -2.1% (11,949) - (11,949) -2.2% -4.2% impairment Operating profit (loss) (EBIT) 65,728 (1,095) 64,633 11.5% 61,458 (7,892) 53,566 11.4% 6.9% Income, expenses, valuation and adjustments of financial - - - 0.0% 126 - 126 0.0% -100.0% assets Net financial expenses (13,711) - (13,711) -2.4% (10,417) - (10,417) -1.9% -31.6% Exchange differences, inflation accounting and Fair (744) - (744) -0.2% (1,657) - (1,657) -0.3% 55.1% Value valuation Profit (loss) before tax 51,273 (1,095) 50,178 8.9% 49,510 (7,892) 41,618 9.2% 3.6% Tax (15,140) 290 (14,850) -2.6% (14,665) 2,306 (12,359) -2.7% -3.2% Net profit (loss) 36,133 (805) 35,328 6.3% 34,845 (5,586) 29,259 6.5% 3.7% Profit (loss) of minority 464 - 464 0.1% (40) - (40) 0.0% 1260.0% interests Net profit (loss) attributable 35,669 (805) 34,864 6.2% 34,885 (5,586) 29,299 6.5% 2.2% 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 31 March 2024 > Interim Management Report The non-recurring transactions, included in the previous tables, are summarized below: - on 5 January 2023 the majority shareholder Ampliter S.r.l. (“Ampliter”) issued a plan which provides for the one-off assignment, free of charge, of up to a maximum of 500,000 of the Amplifon shares owned by Ampliter, to the Chief Executive Officer. The shares will be transferred, free of charge, in five tranches, comprising a first tranche of 260,000 shares and subsequent ones of 60,000 shares each. As a result of this assignment, which was made completely autonomously by Ampliter and does not envisage any cash-out by Amplifon, based on IFRS 2 “Share Based Payments” an estimated one-off notional cost of €13.7 million was recognized in the income statement, of which €12.4 million in 2023 and €1.3 million in 2024. The notional cost for the first three months (€508 thousand) was recognized as a non- recurring expense at 31 March 2024; - €568 thousand were spent on the second phase of the GAES integration in Spain; - €19 thousand were also spent on the Bay Audio integration in Australia. Q1 2024 Q1 2023 (€ thousands) GAES second phase integration costs (568) (598) Notional cost related to share assignment (508) (7,294) Bay Audio integration costs (19) - Impact of the non-recurring items on EBITDA (1,095) (7,892) Impact of the non-recurring items on EBIT (1,095) (7,892) Impact of the non-recurring items on profit before tax (1,095) (7,892) Impact of the above items on the tax burden for the period 290 2,306 Impact of the non-recurring items on net profit (805) (5,586) 14 --- Interim Financial Report as at 31 March 2024 > Interim Management Report RECLASSIFIED CONSOLIDATED 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. 03/31/2024 12/31/2023 Change (€ thousands) Goodwill 1,856,957 1,799,574 57,383 Customer lists, non-compete agreements, trademarks and location rights 262,734 255,683 7,051 Software, licenses, other int.ass., wip and advances 162,250 160,906 1,344 Property, plant and equipment 226,214 221,516 4,698 Right of use assets 487,219 478,153 9,066 Fixed financial assets (1) 42,500 16,704 25,796 Other non-current financial assets (1) 45,416 43,851 1,565 Total fixed assets 3,083,290 2,976,387 106,903 Inventories 88,521 88,320 201 Trade receivables 232,836 231,253 1,583 Other receivables 136,343 107,042 29,301 Current assets (A) 457,700 426,615 31,085 Total assets 3,540,990 3,403,002 137,988 Trade payables (346,882) (358,955) 12,073 Other payables (2) (406,530) (379,290) (27,240) Provisions for risks (current portion) (2,640) (1,268) (1,372) Short term liabilities (B) (756,052) (739,513) (16,539) Net working capital (A) - (B) (298,352) (312,898) 14,546 Derivative instruments (3) 12,223 12,933 (710) Deferred tax assets 83,589 82,701 888 Deferred tax liabilities (100,823) (98,451) (2,372) Provisions for risks (non-current portion) (19,337) (19,379) 42 Employee benefits (non-current portion) (12,626) (12,963) 337 Loan fees (4) 2,672 3,007 (335) Other long-term payables (221,926) (180,098) (41,828) NET INVESTED CAPITAL 2,528,710 2,451,239 77,471 Shareholders' equity 1,137,364 1,100,919 36,445 Third parties' equity 1,065 759 306 Net equity 1,138,429 1,101,678 36,751 Medium/Long term net financial debt (4) 721,530 719,428 2,102 Short term net financial debt (4) 161,777 132,702 29,075 Total net financial debt 883,307 852,130 31,177 Lease liabilities 506,974 497,431 9,543 Total lease liabilities & net financial debt 1,390,281 1,349,561 40,720 NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT 2,528,710 2,451,239 77,471 15 --- Interim Financial Report as at 31 March 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 31 March 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 three months 2024 First three months 2023 (€ thousands) Operating profit (loss) (EBIT) 64,633 53,566 Amortization, depreciation and write-downs 71,062 62,075 Provisions, other non-monetary items and gain/losses from disposals 7,289 16,405 Net financial expenses (12,178) (10,846) Taxes paid (17,675) (19,166) Changes in net working capital (15,847) (1,150) Cash flow provided by (used in) operating activities before repayment of lease 97,284 100,884 liabilities Repayment of lease liabilities (30,129) (27,958) Cash flow provided by (used in) operating activities (A) 67,155 72,926 Cash flow provided by (used in) operating investing activities (B) (29,941) (26,625) Free Cash Flow (A) + (B) 37,214 46,301 Net cash flow provided by (used in) acquisitions (C) (71,310) (38,799) Cash flow provided by (used in) investing activities (B) + (C) (101,251) (65,424) Cash flow provided by (used in) operating activities and investing activities (34,096) 7,502 Treasury Shares - - Hedging instruments - (1,483) Change in non-current assets 5,898 (313) Net cash flow from the period (28,198) 5,706 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 (2,979) (2,064) Changes in net financial debt (28,198) 5,706 Net financial indebtedness at the end of the period net of lease liabilities (883,307) (826,351) The impact of non-recurring transactions on free cash flow in the period is shown in the following table. (€ thousands) First three months 2024 First three months 2023 Free cash flow 37,214 46,301 Free cash flow generated by non-recurring transactions (see page 39 for details) (419) (1,342) Free cash flow generated by recurring transactions 37,633 47,643 17 --- Interim Financial Report as at 31 March 2024 > Interim Management Report INCOME STATEMENT REVIEW Consolidated income statement by segment and geographic area First three months 2024 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 376,058 110,821 86,164 66 573,109 Operating costs (269,742) (85,316) (61,977) (23,656) (440,691) Other income and costs 2,418 735 (25) 149 3,277 Gross operating profit (loss) (EBITDA) 108,734 26,240 24,162 (23,441) 135,695 Depreciation, amortization and impairment of (11,694) (4,328) (4,695) (6,669) (27,386) non-current assets Right-of-use depreciation (20,549) (3,371) (6,727) (577) (31,224) Operating result before the amortization and 76,491 18,541 12,740 (30,687) 77,085 impairment of PPA related assets (EBITA) PPA related depreciation, amortization and (8,535) (945) (2,972) - (12,452) impairment Operating profit (loss) (EBIT) 67,956 17,596 9,768 (30,687) 64,633 Income, expenses, revaluation and - - - - - adjustments of financial assets Net financial expenses - - - - (13,711) Exchange differences, inflation accounting and - - - - (744) Fair Value valuation Profit (loss) before tax - - - - 50,178 Tax - - - - (14,850) Net profit (loss) - - - - 35,328 Profit (loss) of minority interests - - - - 464 Net profit (loss) attributable to the Group - - - - 34,864 First three months 2024 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 376,058 110,821 86,164 66 573,109 Gross operating profit (loss) (EBITDA) 109,302 26,240 24,181 (22,933) 136,790 Operating result before the amortization and 77,059 18,541 12,759 (30,179) 78,180 impairment of PPA related assets (EBITA) Operating profit (loss) (EBIT) 68,524 17,596 9,787 (30,179) 65,728 Profit (loss) before tax - - - - 51,273 Net profit (loss) - - - - 36,133 Net profit (loss) attributable to the Group - - - - 35,669 18 --- Interim Financial Report as at 31 March 2024 > Interim Management Report First three months 2023 (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 359,707 100,864 79,594 86 540,251 Operating costs (*) (261,166) (78,480) (57,951) (30,490) (428,087) Other income and costs (*) 883 2,447 98 49 3,477 Gross operating profit (loss) (EBITDA) 99,424 24,831 21,741 (30,355) 115,641 Depreciation, amortization and impairment (10,012) (3,156) (3,435) (5,386) (21,989) of non-current assets Right-of-use depreciation (18,932) (2,671) (5,969) (565) (28,137) Operating result before the amortization and impairment of PPA related assets 70,480 19,004 12,337 (36,306) 65,515 (EBITA) PPA related depreciation, amortization and (8,072) (876) (2,980) (21) (11,949) impairment Operating profit (loss) (EBIT) 62,408 18,128 9,357 (36,327) 53,566 Income, expenses, revaluation and - - - - 126 adjustments of financial assets Net financial expenses - - - - (10,417) Exchange differences, inflation accounting - - - - (1,657) and Fair Value valuation Profit (loss) before tax - - - - 41,618 Tax - - - - (12,359) Net profit (loss) - - - - 29,259 Profit (loss) of minority interests - - - - (40) Net profit (loss) attributable to the Group - - - - 29,299 First three months 2023 – Only recurring operations (€ thousands) EMEA Americas Asia Pacific Corporate Total Revenues from sales and services 359,707 100,864 79,594 86 540,251 Gross operating profit (loss) (EBITDA) 100,021 24,831 21,741 (23,060) 123,533 Operating result before the amortization and impairment of PPA related assets 71,077 19,004 12,337 (29,011) 73,407 (EBITA) Operating profit (loss) (EBIT) 63,005 18,128 9,357 (29,032) 61,458 Profit (loss) before tax - - - - 49,510 Net profit (loss) - - - - 34,845 Net profit (loss) attributable to the Group - - - - 34,885 (*) 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. 19 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Revenues from sales and services First three months First three months Change Change % (€ thousands) 2024 2023 Revenues from sales and 573,109 540,251 32,858 6.1% services Consolidated revenues from sales and services amounted to €573,109 thousand in the first three months of 2024, an increase of €32,858 thousand (+6.1%) with respect to the comparison period. The increase against the same period of 2023 is explained for €30,400 thousand (+5.6%) by organic growth and for €17,223 thousand (+3.2%) by acquisitions. The foreign exchange effect was negative for €14,765 thousand (-2.7%). 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. The performance was extremely positive in all the geographic areas: EMEA recorded a solid performance, driven by market share gains in core markets, in an environment in which market demand returned to slight growth and is gradually normalizing; AMERICAs was confirmed once again as the area with the highest organic growth, despite the challenging comparison base; APAC reported an outstanding performance, supported by excellent organic growth to which all the area’s main countries contributed. The breakdown of revenues from sales and services by geographic area is shown below. First three First three Change % in months months local (€ thousands) 2024 % on Total 2023 % on Total Change Change % Exchange diff. currency EMEA 376,058 65.7% 359,707 66.6% 16,351 4.5% 863 4.3% Americas 110,821 19.3% 100,864 18.7% 9,957 9.9% (11,505) 21.3% Asia Pacific 86,164 15.0% 79,594 14.7% 6,570 8.3% (4,123) 13.5% Corporate 66 0.0% 86 0.0% (20) -23.3% - -23.3% Total 573,109 100.0% 540,251 100.0% 32,858 6.1% (14,765) 8.8% 20 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Europe, Middle-East and Africa First three months First three months Change Change % (€ thousands) 2024 2023 Revenues from sales and 376,058 359,707 16,351 4.5% services Consolidated revenues from sales and services amounted to €376,058 thousand in the first three months of 2024, an increase of €16,351 thousand (+4.5%) compared to the same period of the prior year, of which €10,280 thousand (+2.9%) is attributable to organic growth which was particularly significant in Italy, France, Germany and Spain, driven by market share gains, in an environment in which market demand returned to slight growth in the quarter and is gradually normalizing. Acquisitions contributed €5,208 thousand (+1.4%), while the foreign exchange effect was positive for €863 thousand (+0.2%). Americas First three months First three months Change Change % (€ thousands) 2024 2023 Revenues from sales and 110,821 100,864 9,957 9.9% services Consolidated revenues from sales and services amounted to €110,821 thousand in the first three months of 2024, an increase of €9,957 thousand (+9.9%). This increase is explained for €13,120 thousand (+13.0%) by organic growth fueled primarily by the outstanding performance of Miracle-Ear Direct Retail and Amplifon Hearing Health Care. Acquisitions contributed €8,342 thousand (+8.3%), which includes the first-time consolidation of the Uruguayan subsidiaries, while the foreign exchange effect was negative for €11,505 thousand (-11.4%). Revenues of the Argentine subsidiary were impacted by the inflation accounting used in accordance with IAS 29 (Inflation Accounting), which had a positive impact on the Group’s organic growth and a negative impact on the exchange effect of 1.2%, respectively. 21 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Asia Pacific First three months First three months Change Change % (€ thousands) 2024 2023 Revenues from sales and 86,164 79,594 6,570 8.3% services Revenues from sales and services amounted to €86,164 thousand in the first three months of 2024, an increase of €6,570 thousand (+8.3%) compared to the same period of 2023 explained primarily by organic growth which amounted to €7,020 thousand (+8.8%). Acquisitions contributed €3,673 thousand (+4.7%) which is attributable entirely to the acquisitions made in China. The foreign exchange effect was negative for €4,123 thousand (- 5.2%). 22 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Gross operating profit (loss) (EBITDA) First three months 2024 First three months 2023 (€ thousands) Non - Non - Recurring Total Recurring Total recurring recurring Gross operating profit (loss) (EBITDA) 136,790 (1,095) 135,695 123,533 (7,892) 115,641 Gross operating profit (EBITDA) amounted to €135,695 thousand in the first three months of 2024, an increase of €20,054 thousand (+17.3%) with respect to the comparison period. The EBITDA margin came to 23.7%, 2.3 p.p. higher than in the comparison period. This noticeable increase is attributable to the improvements in productivity undertaken in the second half of 2023 and the effectiveness of the investments made. The result for the reporting period reflects non-recurring expenses of €1,095 thousand explained: - for €508 thousand, by the notional cost of the free, one-off assignment made by the shareholder Ampliter of 500,000 of its Amplifon shares to the Chief Executive Officer, recognized in the reporting period in accordance with IFRS 2 “Share Based Payments”. For more information refer to page 14 of this report; - for €568 thousand, by the second phase of the GAES integration; - for €19 thousand, by the Bay Audio integration in Australia. In the first three months of 2023 non-recurring expenses of €7,892 thousand were also incurred. Net of these items, EBITDA would have been €13,257 thousand (+10.7%) higher than in the first three months of 2023 with an increase in the EBITDA margin of +1.0 p.p. 23 --- Interim Financial Report as at 31 March 2024 > Interim Management Report The breakdown of EBITDA by geographic area is shown below. First three First three months EBITDA months EBITDA (€ thousands) 2024 Margin 2023 Margin Change Change % EMEA 108,734 28.9% 99,424 27.6% 9,310 9.4% Americas 26,240 23.7% 24,831 24.6% 1,409 5.7% Asia Pacific 24,162 28.0% 21,741 27.3% 2,421 11.1% Corporate (*) (23,441) -4.1% (30,355) -5.6% 6,914 22.8% Total 135,695 23.7% 115,641 21.4% 20,054 17.3% (*) Centralized costs are shown as a percentage of the Group’s total sales The table below shows the breakdown of the EBITDA by geographic area with reference to the recurring operations. First three First three months EBITDA months EBITDA (€ thousands) 2024 Margin 2023 Margin Change Change % EMEA 109,302 29.1% 100,021 27.8% 9,281 9.3% Americas 26,240 23.7% 24,831 24.6% 1,409 5.7% Asia Pacific 24,181 28.1% 21,741 27.3% 2,440 11.2% Corporate (*) (22,933) -4.0% (23,060) -4.3% 127 0.5% Total 136,790 23.9% 123,533 22.9% 13,257 10.7% (*) Centralized costs are shown as a percentage of the Group’s total sales Europe, Middle-East and Africa Gross operating profit (EBITDA) amounted to €108,734 thousand in the first three months of 2024, an increase of €9,310 thousand (+9.4%) with respect to the comparison period. The EBITDA margin came to 28.9%, 1.3 p.p. higher than in the first three months of 2023. The result for the reporting period reflects non-recurring expenses of €568 thousand attributable to the second phase of the GAES integration. In the first three months of 2023 non- recurring expenses of €598 thousand were also incurred. Net of this item, EBITDA would have been €9,281 thousand (+9.3%) higher than in the first three months of 2023 with the EBITDA margin up +1.3 p.p. Americas Gross operating profit (EBITDA) amounted to €26,240 thousand in the first three months of 2024, an increase of €1,409 thousand (+5.7%) with respect to the comparison period. The EBITDA margin came to 23.7%, down 0.9 p.p. against the first three months of 2023. 24 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Asia Pacific Gross operating profit (EBITDA) amounted to €24,162 thousand in the first three months of 2024, an increase of €2,421 thousand (+11.1%) with respect to the comparison period. The EBITDA margin came to 28.0%, +0.7 p.p. higher than in the comparison period. Non-recurring expenses of €19 thousand were incurred in the reporting period. Net of this item, EBITDA would have been €2,440 thousand higher (+11.2%) with the EBITDA margin up +0.8 p.p. Corporate In the first three 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 €23,441 thousand (4.1% of the Group’s revenues from sales and services), €6,914 thousand (22.8%) lower with respect to the same period of the prior year. The EBITDA margin was 1.5 p.p. lower than in the comparison period. The result for the reporting period reflects the non-recurring expenses of €508 thousand stemming from the portion of the notional cost of the free, one-off assignment made by the shareholder Ampliter of 500,000 of its Amplifon shares to the Chief Executive Officer recognized in the reporting period. For more information refer to page 14 of this report. In the first three months of 2023 non-recurring expenses of €7,294 thousand were also recognized. Net of these items, costs would have been €127 thousand (0.5%) lower than in the first three months of 2023, with the margin down by 0.3 p.p. 25 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Operating profit (loss) (EBIT) First three months 2024 First three months 2023 (€ thousands) Non - Non - Recurring Total Recurring Total recurring recurring Operating profit (loss) (EBIT) 65,728 (1,095) 64,633 61,458 (7,892) 53,566 Operating profit (EBIT) amounted to €64,633 thousand in the first three months of 2024, an increase of €11,067 thousand (+20.7%) with respect to the comparison period. The EBIT margin came to 11.3%, an increase of 1.4 p.p. against the comparison period. The reporting period was impacted for €1,095 thousand by the same non-recurring expenses described in the section on EBITDA. In the first three months of 2023 non-recurring expenses amounted to €7,892 thousand. Net of these items, EBIT would have been €4,270 thousand higher (+6.9%) than in the first three months of 2023, with the EBIT margin up +0.1 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 assets recognized in accordance with initial Purchase Price Allocation accounting. The breakdown of EBIT by geographic area is shown below. First three EBIT First three EBIT Change Change % (€ thousands) months 2024 Margin months 2023 Margin EMEA 67,956 18.1% 62,408 17.3% 5,548 8.9% Americas 17,596 15.9% 18,128 18.0% (532) -2.9% Asia Pacific 9,768 11.3% 9,357 11.8% 411 4.4% Corporate (*) (30,687) -5.4% (36,327) -6.7% 5,640 15.5% Total 64,633 11.3% 53,566 9.9% 11,067 20.7% (*) Centralized costs are shown as a percentage of the Group’s total sales. The table below shows the breakdown of the EBIT by geographic area with reference to the recurring operations. First three EBIT First three EBIT Change Change % (€ thousands) months 2024 Margin months 2023 Margin EMEA 68,524 18.2% 63,005 17.5% 5,519 8.8% Americas 17,596 15.9% 18,128 18.0% (532) -2.9% Asia Pacific 9,787 11.4% 9,357 11.8% 430 4.6% Corporate (*) (30,179) -5.3% (29,032) -5.4% (1,147) -4.0% Total 65,728 11.5% 61,458 11.4% 4,270 6.9% (*) Centralized costs are shown as a percentage of the Group’s total sales. 26 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Europe, Middle-East and Africa Operating profit (EBIT) amounted to €67,956 thousand in the first three months of 2024, an increase of €5,548 thousand (+8.9%) with respect to the comparison period. The EBIT margin came to 18.1%, 0.8 p.p. higher than in the first three months of 2023. The result was impacted for €568 thousand by the same non-recurring expenses described in the section on EBITDA. In the first three months of 2023 non-recurring expenses amounted to €598 thousand. Net of these items, EBIT would have been €5,519 thousand higher (+8.8%) than in the first three months of 2023, with the EBIT margin up +0.7 p.p. Americas Operating profit (EBIT) amounted to €17,596 thousand in the first three months of 2024, a decrease of €532 thousand (-2.9%) with respect to the first three months of 2023. The EBIT margin was -2.1 p.p. lower than in the first three months of 2023, coming in at 15.9%. Asia Pacific Operating profit (EBIT) amounted to €9,768 thousand in the first three months of 2024, an increase of €411 thousand (+4.4%) with respect to the comparison period. The EBIT margin came to 11.3%, 0.5 p.p. lower than in the first three months of 2023. The result of the period was impacted for €19 thousand by the same non-recurring expenses described in the section on EBITDA. Net of these items EBIT would have been €430 thousand (+4.6%) higher and the margin would have been -0.4 p.p. lower. Corporate The net Corporate costs at the EBIT level amounted to €30,687 thousand in the first three months of 2024 (5.4% of the revenues generated by the Group’s sales and services), a decrease of €5,640 thousand. The results posted in the reporting period were impacted for €508 thousand by the same non- recurring expenses described in the section on EBITDA. In the first three months of 2023 non- recurring expenses amounted to €7,294 thousand. Net of these items, the costs would have been €1,147 thousand (+4.0%) higher than in the first three months of 2023 with the margin down -0.1 p.p. 27 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Profit before taxes First three months 2024 First three months 2023 (€ thousands) Non - Non - Recurring Total Recurring Total recurring recurring Profit before taxes 51,273 (1,095) 50,178 49,510 (7,892) 41,618 Profit before tax amounted to €50,178 thousand in the first three months of 2024, an increase of €8,560 thousand (+20.6%) against the comparison period, with a gross profit margin of 8.8% (+1.1 p.p. with respect to the comparison period). The results for the reporting period were impacted for €1,095 thousand by the same non- recurring expenses described in the section on EBITDA. In the first three months of 2023 non- recurring expenses of €7,892 thousand were incurred. On a recurring basis, there was an increase of €1,763 thousand (+3.6%) against the first three months of 2023, with the profit margin down 0.3 p.p. In addition to the change in EBIT described above, profit before tax was impacted for €2,507 thousand by increased financial expenses. The increase in interest charges on floating rate debt attributable to interest rates which were higher than in the first quarter of 2023 was partially offset by lower currency expenses and inflation accounting. 28 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Group net profit First three months 2024 First three months 2023 (€ thousands) Non - Non - Recurring Total Recurring Total recurring recurring Group net profit 35,669 (805) 34,864 34,885 (5,586) 29,299 The Group’s net profit came to €34,864 thousand in the first three months of 2024, an increase of €5,565 thousand (+19.0%) against the comparison period, with a profit margin of 6.1% (+0.7 p.p. higher against the comparison period). The result for the reporting period was impacted for €805 thousand by the same non-recurring expenses described in the section on EBITDA, net of the tax effect. In the first three months of 2023 net non-recurring expenses amounted to €5,586 thousand. On a recurring basis, the Group’s net profit was €784 thousand (+2.2%) higher than in the first three months of 2023, with the profit margin down 0.3 p.p. The tax rate was 29.6% in the reporting period compared to 29.7% in the first three months of 2023. 29 --- Interim Financial Report as at 31 March 2024 > Interim Management Report BALANCE SHEET REVIEW (*) Consolidated balance sheet by geographical area 03/31/2024 (€ thousands) EMEA Americas APAC Eliminations Total Goodwill 979,892 278,347 598,718 - 1,856,957 Non-competition agreements, trademarks, customer lists and lease 181,470 26,967 54,297 - 262,734 rights Software, licenses, other intangible fixed assets, fixed assets in progress and 125,233 29,469 7,548 - 162,250 advances Property, plant, and equipment 151,946 32,647 41,621 - 226,214 Right-of-use assets 377,682 48,707 60,830 - 487,219 Financial fixed assets 35,871 6,397 232 - 42,500 Other non-current financial assets 41,018 2,547 1,851 - 45,416 Non-current assets 1,893,112 425,081 765,097 - 3,083,290 Inventories 69,065 9,287 10,169 - 88,521 Trade receivables 244,880 39,023 21,658 (72,725) 232,836 Other receivables 109,274 16,832 10,433 (196) 136,343 Current assets (A) 423,219 65,142 42,260 (72,921) 457,700 Operating assets 2,316,331 490,223 807,357 (72,921) 3,540,990 Trade payables (294,007) (74,789) (50,811) 72,725 (346,882) Other payables (317,864) (47,422) (41,440) 196 (406,530) Provisions for risks and charges (current (1,944) (696) - - (2,640) portion) Current liabilities (B) (613,815) (122,908) (92,250) 72,921 (756,052) Net working capital (A) - (B) (190,596) (57,766) (49,990) - (298,352) Derivative instruments 12,223 - - - 12,223 Deferred tax assets 62,692 8,694 12,203 - 83,589 Deferred tax liabilities (63,724) (21,391) (15,708) - (100,823) Provisions for risks and charges (non- (17,623) (916) (798) - (19,337) current portion) Liabilities for employees’ benefits (non- (11,730) (132) (764) - (12,626) current portion) Loan fees 2,672 - - - 2,672 Other non-current liabilities (202,411) (13,825) (5,690) - (221,926) NET INVESTED CAPITAL 1,484,615 339,745 704,350 - 2,528,710 Group net equity 1,137,364 Minority interests 1,065 Total net equity 1,138,429 Net medium and long-term financial 721,530 indebtedness Net short-term financial indebtedness 161,777 Total net financial indebtedness 883,307 Lease liabilities 392,502 52,416 62,056 - 506,974 Total lease liabilities & net financial 1,390,281 indebtedness NET EQUITY, LEASE LIABILITIES AND NET 2,528,710 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. 30 --- Interim Financial Report as at 31 March 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 31 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Non-Current Assets Non-current assets amounted to €3,083,290 thousand at 31 March 2024, an increase of €106,903 thousand with respect to the €2,976,387 thousand recorded at 31 December 2023. This increase is explained (i) for €30,154 thousand by capex; (ii) for €38,317 thousand by right- of-use assets acquired in the reporting period; (iii) for €86,552 thousand, by acquisitions made in the reporting period; (iv) for €71,062 thousand, by amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; (v) for €22,942 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 of Law Decree No. 34/2020 (“Decreto Rilancio”), net of the negative foreign exchange differences. The breakdown of non-current assets by geographic area is shown below. 03/31/2024 12/31/2023 Change (€ thousands) Goodwill 979,892 955,383 24,509 Non-competition agreements, trademarks, customer lists and 181,470 176,887 4,583 lease rights Software, licenses, other intangible fixed assets, fixed assets in 125,233 123,344 1,889 progress and advances EMEA (*) Tangible assets 151,946 148,081 3,865 Right-of-use assets 377,682 373,293 4,389 Financial fixed assets 35,871 3,629 32,242 Other non-current financial assets 41,018 39,701 1,317 Non-current assets 1,893,112 1,820,318 72,794 Goodwill 278,347 237,178 41,169 Non-competition agreements, trademarks, customer lists and 26,967 21,126 5,841 lease rights Software, licenses, other intangible fixed assets, fixed assets in 29,469 29,520 (51) progress and advances Americas Tangible assets 32,647 29,929 2,718 Right-of-use assets 48,707 44,949 3,758 Financial fixed assets 6,397 12,841 (6,444) Other non-current financial assets 2,547 2,440 107 Non-current assets 425,081 377,983 47,098 Goodwill 598,718 607,013 (8,295) Non-competition agreements, trademarks, customer lists and 54,297 57,670 (3,373) lease rights Software, licenses, other intangible fixed assets, fixed assets in 7,548 8,042 (494) progress and advances Tangible assets 41,621 43,506 (1,885) Asia Pacific Right-of-use assets 60,830 59,911 919 Financial fixed assets 232 234 (2) Other non-current financial assets 1,851 1,710 141 Non-current assets 765,097 778,086 (12,989) Total 3,083,290 2,976,387 106,903 (*) 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. 32 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Europe, Middle-East and Africa Non-current assets amounted to €1,893,112 thousand at 31 March 2024, an increase of €72,794 thousand with respect to the €1,820,318 thousand recorded at 31 December 2023. This increase is explained: - for €23,578 thousand, by right-of-use assets acquired in the year as a result of the renewal of existing leases and network expansion; - for €43,123 thousand, by acquisitions made in the reporting period; - for €11,111 thousand, by 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 €12,154 thousand, by investments in intangible assets, relating to the continuous implementation and standardization of the Group ERP cloud system for back-office functions (Human Resources, Procurement, Administration and Finance), as well as new front office solutions for the hyper-personalization of customer experiences; - for €48,024 thousand, by amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; - for €32,117 thousand, the long-term portion of the tax credits arising from concessions contained in and regulated by Article 119 of Law Decree No. 34/2020 (“Decreto Rilancio”); - for €1,365 thousand, by other decreases. Americas Non-current assets amounted to €425,081 thousand at 31 March 2024, an increase of €47,098 thousand against the €377,983 thousand recorded at 31 December 2023. This increase is explained: - for €39,348 thousand, by acquisitions made in the reporting period; - for €6,165 thousand, by right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion; - for €2,770 thousand, by investments in property, plant and equipment, relating to new openings and renewal of shops; - for €1,543 thousand by investments in intangible assets relating to development IT systems primarily at US subsidiaries; - for €8,644 thousand, by amortization and depreciation, including the amortization of the right-of-use assets referred to above; - for €5,916 thousand by other increases, explained primarily by foreign exchange differences. 33 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Asia Pacific Non-current assets amounted to €765,097 thousand at 31 March 2024, a decrease of €12,989 thousand against the €778,086 thousand recorded at 31 December 2023. The change is explained: - for €8,573 thousand, by an increase in right-of-use assets acquired during the period as a result of the renewal of existing leases and network expansion, primarily at the Australian subsidiaries and, to a lesser degree, at Chinese ones; - for €4,081 thousand, by acquisitions made in the reporting period; - for €1,995 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 €581 thousand, by investments in intangible assets; - for €14,394 thousand, by amortization and depreciation, including the amortization of the right of-use assets referred to above; - for €13,825 thousand, by other decreases relating to foreign exchange differences which mainly affected goodwill of the companies in Asia Pacific. Net invested capital Net invested capital amounted to €2,528,710 thousand at 31 March 2024, an increase of €77,471 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 offset by an increase in medium/long-term payables stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 of Law Decree No. 34/2020 (“Decreto Rilancio”), net of the negative foreign exchange differences. The breakdown of net invested capital by geographic area is shown below. 03/31/2024 12/31/2023 Change (€ thousands) EMEA (*) 1,484,615 1,412,321 72,294 Americas 339,745 316,541 23,204 Asia Pacific 704,350 722,377 (18,027) Total 2,528,710 2,451,239 77,471 (*) 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. 34 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Europa, Middle-East and Africa Net invested capital came to €1,484,615 thousand at 31 March 2024, an increase of €72,294 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 which was offset entirely by an increase in medium/long-term payables stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 of Law Decree No. 34/2020 (“Decreto Rilancio”) described above. Factoring without recourse in the period involved trade receivables with a face value of €55,697 thousand (€55,560 thousand in the first quarter or 2023) and VAT credits with a face value of €5,611 thousand (€9,875 thousand in the same period of the prior year). As of Q4 2023 factoring without recourse includes the receivables payable to German subsidiaries by insurance companies; the figures in the comparison period were adjusted to reflect this change. Americas Net invested capital came to €339,745 thousand at 31 March 2024, an increase of €23,204 thousand against the €316,541 thousand recorded at 31 December 2023. This increase is attributable mainly to the change in non-current assets which was partially offset by a decrease in working capital. Factoring without recourse in the reporting period involved trade receivables with a face value of €560 thousand (€160 thousand in the same period of the prior year). Asia Pacific Net invested capital came to €704,350 thousand at 31 March 2024, a decrease of €18,027 thousand against the €722,377 thousand recorded at 31 December 2023. Along with the decrease in non-current assets described above, there was also a further decrease in working capital. 35 --- Interim Financial Report as at 31 March 2024 > Interim Management Report Net financial indebtedness 03/31/2024 12/31/2023 Change (€ thousands) Net medium and long-term financial indebtedness 721,530 719,428 2,102 Net short-term financial indebtedness 376,338 326,733 49,605 Cash and cash equivalents (214,561) (194,031) (20,530) Net financial indebtedness (A) 883,307 852,130 31,177 Lease liabilities – current portion 119,991 113,523 6,468 Lease liabilities – non-current portion 386,983 383,908 3,075 Lease liabilities (B) 506,974 497,431 9,543 Total lease liabilities & net financial indebtedness 1,390,281 1,349,561 40,720 (A)+(B) (C) Group net equity (D) 1,137,364 1,100,919 36,445 Minority interests 1,065 759 306 Net Equity (E) 1,138,429 1,101,678 36,751 Financial indebtedness/Group net equity (A/D) 0.78 0.77 Financial indebtedness/Net equity (A/E) 0.78 0.77 Financial indebtedness/EBITDA (*) 1.52 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 €883,307 thousand at 31 March 2024, an increase of €31,177 thousand compared to 31 December 2023. In the first quarter of 2024 the Group confirmed its excellent ability to generate operating cash flow, with free cash flow reaching a positive €37,214 thousand, down slightly compared to the same period of the prior year (€46,301 thousand) due to higher capital expenditure (€29,941 thousand in the first quarter of 2024 and €26,625 thousand in the first quarter of the prior year). Net cash-outs for acquisitions (which amounted to €71,310 thousand versus €38,799 thousand in the first quarter of 2023), along with the €5,898 thousand in positive flows generated by financial assets, bring cash flow for the reporting period to negative €28,198 thousand versus a positive €5,706 thousand in the first quarter of 2023. At 31 March 2024, the Group had cash and cash equivalents, as well as other liquid investments, of €214,561 thousand compared to total net financial indebtedness of €1,098 million, net of lease liabilities. Long-term debt, net of lease liabilities, amounts to €721,530 thousand at 31 March 2024 (€ 719,428 thousand at 31 December 2023), showing a slight increase of €2,102 thousand compared to 2023 explained primarily by the increase in deferred payments for acquisitions. Short-term debt amounts to €376,338 thousand, an increase of €49,605 thousand explained mainly by the increase in hot money operations and utilization of short-term credit lines. The short-term portion refers primarily to the hot money accounts and other short-term credit lines (€194,731 thousand), the short-term portion of long-term bank debt (€164,922 thousand) and 36 --- Interim Financial Report as at 31 March 2024 > Interim Management Report interest payable on other bank loans (€3,129 thousand) and, lastly, the best estimate of the deferred payments for acquisitions (€11,332 thousand). The chart below shows the debt maturities compared to: - the €214.6 million in cash and cash equivalents; - the unutilized portions of irrevocable credit lines which amount to €495 million; - the €225 million unutilized portion of the loan from the European Investment Bank supporting investments in innovation and digitalization. The unutilized portion of the €286 million in other uncommitted credit lines amounts to €87 million. Interest payable on financial debt amounted to €9,139 thousand at 31 March 2024 versus €6,262 thousand at 31 March 2023. Interest payable on leases recognized in accordance with IFRS 16 amounted to €4,451 thousand versus €3,263 thousand at 31 March 2023. Interest receivable on bank deposits came to €454 thousand at 31 March 2024 versus €310 thousand at 31 March 2023. The reasons for the changes in net debt are described in the next section on the statement of cash flows. 37 --- Interim Financial Report as at 31 March 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 three months First three months (€ thousands) 2024 2023 OPERATING ACTIVITIES: Net profit (loss) attributable to the Group 34,864 29,299 Minority interests 464 (40) Amortization, depreciation and impairment: - Intangible fixed assets 24,797 20,984 - Tangible fixed assets 15,041 12,954 - Right-of-use assets 31,224 28,137 Total amortization, depreciation and impairment 71,062 62,075 Provisions, other non-monetary items and gains/losses from disposals 7,288 16,405 Group’s share of the result of associated companies - (126) Financial income charges 14,455 12,075 Current and deferred income taxes 14,850 12,359 Change in assets and liabilities: - Utilization of provisions (704) (1,417) - (Increase) decrease in inventories (1,362) (10,689) - Decrease (increase) in trade receivables (845) 896 - Increase (decrease) in trade payables (14,007) (9,116) - Changes in other receivables and other payables 1,071 19,175 Total change in assets and liabilities (15,847) (1,150) Net interest charges (12,178) (10,846) Taxes paid (17,675) (19,166) Cash flow provided by (used in) operating activities before repayment of lease liabilities 97,284 100,884 Repayment of lease liabilities (30,129) (27,958) Cash flow generated from (absorbed) by operating activities 67,155 72,926 INVESTING ACTIVITIES: Purchase of intangible fixed assets (14,278) (10,807) Purchase of property, plant and equipment (15,877) (17,710) Consideration from sale of tangible fixed assets and businesses 214 1,892 Cash flow generated from (absorbed) by investing activities (29,941) (26,625) Cash flow generated from operating and investing activities (Free cash flow) 37,214 46,301 Business combinations (*) (71,310) (38,799) Net cash flow generated from acquisitions (71,310) (38,799) Cash flow generated from (absorbed) by investing activities and acquisitions (101,251) (65,424) 38 --- Interim Financial Report as at 31 March 2024 > Interim Management Report First three months First three months (€ thousands) 2024 2023 FINANCING ACTIVITIES: Hedging instruments - (1,483) Other non-current assets 5,898 (313) Treasury shares - - Cash flow generated from (absorbed) by financing activities 5,898 (1,796) Changes in net financial indebtedness net of lease liabilities (28,198) 5,706 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 (2,979) (2,064) Changes in net financial debt (28,198) 5,706 Net financial indebtedness at the end of the period net of lease liabilities (883,307) (826,351) (*) The item refers to the net cash flows used in the acquisition of businesses and equity investments. The change in net financial indebtedness of €28,198 thousand is attributable to: (i) Investing activities: - capital expenditure on property, plant and equipment and intangible assets of €30,155 thousand relating to new Front-Office solutions, network expansion and to ongoing implementation and standardization e homogenization of the Group cloud based ERP system; - acquisitions amounting to €71,310 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 €214 thousand. (ii) Operating activities: - interest payable on financial indebtedness and other net financial expenses of € 12,178 thousand; - payment of taxes amounting to €17,675 thousand; - payment of principle on lease obligations of €30,129 thousand; - cash flow generated by current operations of €127,137 thousand. (iii) Financing activities: positive change in other non-current assets for € 5,898 thousand. (iv) Net debt was also impacted by exchange losses of €2,979 thousand. Non-recurring transactions had a negative impact on cash flow of €419 thousand in the first three months of 2024, attributable for €366 thousand for the GAES Integration and €53 thousand to the integration of Bay Audio. 39 --- Interim Financial Report as at 31 March 2024 > Interim Management Report ACQUISITION OF COMPANIES AND BUSINESSES The Group continued with external growth in the first months of 2024 acquiring 152 points of sale for a total investment of €71,310 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 details, in first quarter of 2024: - 48 points of sale were acquired in United States; - 33 points of sale were acquired in Germany; - 30 points of sale were acquired in China; - 23 points of sale were acquired in Uruguay; - 11 points of sale were acquired in France; - 4 points of sale were acquired in Italy; - 3 points of sale were acquired in Canada. 40 --- Interim Financial Report as at 31 March 2024 > Interim Management Report OUTLOOK The Group continued along its strong growth path in the first quarter of 2024, outpacing the reference market, thanks to the strengthening of its competitive positioning in the core markets, and profitability benefitted from the field productivity measures taken in the second half of 2023. In the first three months of the year the demand in the US hearing care market remained strong, while the European market showed a progressive normalization and was back to slightly positive territory, confirming the Group’s expectations for the entire 2024. The second quarter also started very well: in April the Group, in fact, recorded high-teens revenue growth at constant exchange rates, also due to the 2024 early Easter effect. 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, Amplifon confirms its previously disclosed expectations for strong growth in the full- year 2024. More in detail: • Consolidated revenues are expected to grow high-single-digit at constant exchange rates, (Except for the exchange rate EUR/ARS expected at 1,100 as of December 31st, 2024), supported by market share gains and bolt-on acquisitions, the latter contributing to revenue growth for at least 2%; • Recurring EBITDA margin above 24.6% thanks also to the field productivity measures taken in the second part of 2023, which already benefitted the Group in the first quarter. In the medium-term the Group remains extremely positive on its prospects for sustainable growth in sales and profitability, thanks to the secular fundamentals of the hearing care market and its further strengthened competitive positioning. th Milan, May 6 , 2024 CEO Enrico Vita 41 --- CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 MARCH 2024 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements (*) CONSOLIDATED STATEMENT OF FINANCIAL POSITION 03/31/2024 12/31/2023 Change (€ thousands) ASSETS Non-current assets Goodwill Note 3 1,856,957 1,799,574 57,383 Intangible fixed assets with finite useful life Note 4 424,983 416,589 8,394 Property, plant, and equipment Note 5 226,214 221,516 4,698 Right-of-use assets Note 6 487,219 478,153 9,066 Equity-accounted investments 2,445 2,444 1 Hedging instruments 12,223 12,933 (710) Deferred tax assets 83,589 82,701 888 Contract costs 12,104 11,275 829 Other assets 73,367 46,835 26,532 Total non-current assets 3,179,101 3,072,020 107,081 Current assets Inventories 88,521 88,320 201 Trade receivables 232,836 231,253 1,583 Contract costs 6,200 6,840 (640) Other receivables 130,126 100,184 29,942 Hedging instruments 303 549 (246) Other financial assets 1,093 901 192 Cash and cash equivalents Note 8 213,720 193,148 20,572 Total current assets 672,799 621,195 51,604 Total assets 3,851,900 3,693,215 158,685 44 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 03/31/2024 12/31/2023 Change (€ thousands) LIABILITIES Net Equity Share capital Note 7 4,528 4,528 - Share premium reserve 202,712 202,712 - Treasury shares (6,422) (17,495) 11,073 Other reserves (74,911) (53,608) (21,303) Retained earnings 976,593 809,643 166,950 Profit (loss) for the period 34,864 155,139 (120,275) Group net equity 1,137,364 1,100,919 36,445 Minority interests 1,065 759 306 Total net equity 1,138,429 1,101,678 36,751 Non-current liabilities Medium/long-term financial liabilities Note 9 710,036 710,267 (231) Lease liabilities Note 11 386,983 383,909 3,074 Provisions for risks and charges Note 10 19,337 19,379 (42) Liabilities for employees’ benefits 12,626 12,963 (337) Deferred tax liabilities 100,823 98,451 2,372 Payables for business acquisitions 9,850 7,229 2,621 Contract liabilities 164,805 153,716 11,089 Other long-term liabilities 57,121 26,379 30,742 Total non-current liabilities 1,461,581 1,412,293 49,288 Current liabilities Trade payables 346,881 358,955 (12,074) Payables for business acquisitions 11,332 9,554 1,778 Contract liabilities 115,310 120,043 (4,733) Tax liabilities 80,264 74,433 5,831 Other payables 207,288 181,101 26,187 Hedging instruments 333 242 91 Provisions for risks and charges Note 10 2,640 1,268 1,372 Liabilities for employees’ benefits 3,669 3,713 (44) Short-term financial liabilities Note 9 364,182 316,413 47,769 Lease liabilities Note 11 119,991 113,522 6,469 Total current liabilities 1,251,890 1,179,244 72,646 TOTAL LIABILITIES 3,851,900 3,693,215 158,685 (*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 16 for more details. 45 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements (*) CONSOLIDATED INCOME STATEMENT First three months 2024 First three months 2023 (€ thousands) Non- Non- Recurring recurring Total Recurring recurring Total Change Note Revenues from sales and services 573,109 - 573,109 540,251 - 540,251 32,858 12 Note Operating costs (**) (439,596) (1,095) (440,691) (420,195) (7,892) (428,087) (12,604) 13 Other income and costs (**) 3,277 - 3,277 3,477 - 3,477 (200) Gross operating profit (EBITDA) 136,790 (1,095) 135,695 123,533 (7,892) 115,641 20,054 Amortization, depreciation and impairment Amortization of intangible fixed assets Note 4 (24,297) - (24,297) (20,984) - (20,984) (3,313) Depreciation of property, plant, and Note 5 (15,022) - (15,022) (12,934) - (12,934) (2,088) equipment Right-of-use depreciation Note 6 (31,224) - (31,224) (28,137) - (28,137) (3,087) Impairment losses and reversals of non- (519) - (519) (20) - (20) (499) current assets (71,062) - (71,062) (62,075) - (62,075) (8,987) Operating result 65,728 (1,095) 64,633 61,458 (7,892) 53,566 11,067 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and gains/losses - - - 126 - 126 (126) on disposals of equity investments Interest income and expenses (8,685) - (8,685) (5,952) - (5,952) (2,733) Interest expenses on lease liabilities (4,451) - (4,451) (3,263) - (3,263) (1,188) Other financial income and expenses (575) - (575) (1,202) - (1,202) 627 Exchange gains and losses, and inflation (407) - (407) (1,978) - (1,978) 1,571 accounting Gain (loss) on assets accounted at fair value (337) - (337) 321 - 321 (658) (14,455) - (14,455) (11,948) - (11,948) (2,507) Profit (loss) before tax 51,273 (1,095) 50,178 49,510 (7,892) 41,618 8,560 Current and deferred income tax Current tax (15,934) 290 (15,644) (21,057) 2,306 (18,751) 3,107 Deferred tax 794 - 794 6,392 - 6,392 (5,598) (15,140) 290 (14,850) (14,665) 2,306 (12,359) (2,491) Net profit (loss) 36,133 (805) 35,328 34,845 (5,586) 29,259 6,069 Net profit (loss) attributable to Minority 464 - 464 (40) - (40) 504 interests Net profit (loss) attributable to the Group 35,669 (805) 34,864 34,885 (5,586) 29,299 5,565 (*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 16 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. 46 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements First three months First three months Earnings per share (€ per share) Note 15 2024 2023 Earnings per share - Basic 0.15441 0.13048 - Diluted 0.15344 0.12952 STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME First three months First three months (€ thousands) 2024 2023 Net income (loss) for the period 35,328 29,259 Other comprehensive income (loss) that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans 27 (33) Tax effect on components of other comprehensive income that will not be reclassified (6) 8 subsequently to profit or loss Total other comprehensive income (loss) that will not be reclassified subsequently to 21 (25) 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 (709) (1,178) Gains/(losses) from Foreign Currency Basis Spread on hedging instruments - 516 Gains/(losses) on exchange differences from translation of financial statements of foreign (13,023) (31,747) entities Tax effect on components of other comprehensive income that will be reclassified 170 159 subsequently to profit or loss Total other comprehensive income (loss) that will be reclassified subsequently to profit or (13,562) (32,250) loss after the tax effect (B) Total other comprehensive income (loss) (A)+(B) (13,541) (32,275) Comprehensive income (loss) for the period 21,787 (3,016) Attributable to the Group 21,481 (2,805) Attributable to Minority interests 306 (211) 47 --- Interim Financial Report as at 31 March 2024 > Condensed 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 11,063 Other changes 633 (119) - Stock Grant 633 (119) - Inflation accounting - Other changes Total comprehensive income (loss) for the period - Hedge accounting - Actuarial gains (losses) - Translation differences - Profit for the first three months of 2023 Balance at 31 March 2023 4,528 202,712 934 3,636 (49,262) 46,126 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 4,989 Other changes 11,073 (12,909) - Stock Grant 11,073 (12,909) - Inflation accounting - Other changes Total comprehensive income (loss) for the period - Hedge accounting - Actuarial gains (losses) - Translation differences - Profit for the first three months of 2024 Balance at 31 March 2024 4,528 202,712 934 3,636 (6,422) 33,379 48 --- Interim Financial Report as at 31 March 2024 > Condensed 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) - - - - - - - - 11,063 11,063 (1,140) (626) (479) (1,105) (289) 225 225 - - (851) (851) (479) (1,330) (895) 392 (25) (31,576) 29,299 (2,805) (211) (3,016) (895) 392 (503) (503) (25) (25) (25) (31,576) (31,576) (171) (31,747) 29,299 29,299 (40) 29,259 19,018 - 2,757 868,794 (82,401) 29,299 1,046,141 1,151 1,047,292 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) - - - - - - - - 4,989 4,989 11,811 9,975 9,975 2,437 601 601 9,489 9,489 9,489 (115) (115) (115) (539) 21 (12,865) 34,864 21,481 306 21,787 (539) (539) (539) 21 21 21 (12,865) (12,865) (158) (13,023) 34,864 34,864 464 35,328 9,349 (936) 976,593 (121,273) 34,864 1,137,364 1,065 1,138,429 49 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements STATEMENT OF CONSOLIDATED CASH FLOWS First three months First three months (€ thousands) 2024 2023 OPERATING ACTIVITIES Net profit (loss) 35,328 29,259 Amortization, depreciation and impairment: - intangible fixed assets 24,797 20,984 - property, plant, and equipment 15,041 12,954 - right-of-use assets 31,224 28,137 Provisions, other non-monetary items and gain/losses from disposals 7,288 16,405 Group’s share of the result of associated companies - (126) Financial income and expenses 14,455 12,075 Current and deferred taxes 14,850 12,359 Cash flow from operating activities before change in net working capital 142,983 132,047 Utilization of provisions (704) (1,417) (Increase) decrease in inventories (1,362) (10,689) Decrease (increase) in trade receivables (845) 896 Increase (decrease) in trade payables (14,007) (9,116) Changes in other receivables and other payables 1,071 19,175 Total change in assets and liabilities (15,847) (1,151) Interest received (paid) (13,193) (13,272) Taxes paid (17,675) (19,166) Cash flow generated from (absorbed by) operating activities (A) 96,268 98,458 INVESTING ACTIVITIES: Purchase of intangible fixed assets (14,278) (10,807) Purchase of tangible fixed assets (15,877) (17,710) Consideration from sale of non-current assets 214 1,892 Cash flow generated from (absorbed by) operating investing activities (B) (29,941) (26,625) Purchase of subsidiaries and business units net of cash and cash equivalents acquired or (71,310) (38,799) dismissed Increase (decrease) in payables for business acquisitions 4,261 (8,175) Cash flow generated from (absorbed by) acquisition activities (C) (67,049) (46,974) Cash flow generated from (absorbed by) investing activities (B)+(C) (96,990) (73,599) FINANCING ACTIVITIES: Increase (decrease) in financial payables 46,479 (28,682) (Increase) decrease in financial receivables 8 (316) Hedging instruments - (1,483) Principal portion of lease payments (30,129) (27,958) Other non-current assets and liabilities 5,898 (313) - Treasury shares purchase - Cash flow generated from (absorbed by) financing activities (D) 22,256 (58,752) Net increase in cash and cash equivalents (A)+(B)+(C)+(D) 21,534 (33,893) 50 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements First three months First three months (€ thousands) 2024 2023 Cash and cash equivalents at beginning of period 193,148 179,654 Effect of exchange rate fluctuations on cash & cash equivalents (962) (1,332) Flows of cash and cash equivalents 21,534 (33,893) Cash and cash equivalents at end of period 213,720 144,429 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 16. 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 three months First three (€ thousands) 2024 months 2023 - Goodwill 59,868 29,406 - Customer lists 16,955 10,091 - Trademarks and non-competition agreements 1,308 - - Other intangible fixed assets 831 401 - Property, plant, and equipment 3,637 1,466 - Right-of-use assets 3,805 494 - Current assets 9,707 2,755 - Provision for risks and charges (1,537) - - Current liabilities (9,430) (3,310) - Other non-current assets and liabilities (9,246) (3,058) - Third parties equity - 1,498 Total investments 75,898 39,743 Net financial debt acquired 337 349 Total business combinations 76,235 40,092 (Increase) decrease in payables through business acquisition (4,261) 8,175 Cash flow absorbed by (generated from) acquisitions 71,974 48,267 (Cash and cash equivalents acquired) (4,925) (1,293) Net cash flow absorbed by (generated from) acquisitions 67,049 46,974 51 --- Interim Financial Report as at 31 March 2024 > Condensed 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 31 March 2024), held by Amplifin S.r.l, which is owned at 100% by Susan Carol Holland. The condensed interim consolidated financial report as at 31 March 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 31 March 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 31 March 2024 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 31 March 2024 was authorized by a resolution of the Board of Directors of 6 May 2024 which approved their publication. According to the Consob Communication of 28 July 2006, it is specified that during the first three months of 2024 the Group did not carry out atypical and/or unusual transactions, as defined by the Communication itself. 52 --- Interim Financial Report as at 31 March 2024 > Condensed 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, Ukraine and Russia. Currently the situation in the Middle East remains complex and subject to rapid change. The recent tensions between Iran and Israel are also contributing to the region’s instability. The prospects for conflict resolution in the Middle-East remain uncertain and still represent a relevant risk factor in the global economic outlook panorama. With regard to the conflict in the Middle East, the Amplifon Group has around 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 in constant evolution. The Group has no business activities, direct or indirect, in either Ukraine or Russia and limited activities in surrounding countries. In the first three months of the year, the hearing aid market underwent a phase of gradual normalization and growing demand worldwide, above all in the European market. The Group, however, recognizes that the current uncertainty 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. Although 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 thanks to 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. 53 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 3. Acquisitions e goodwill In the first three months of 2024 the Group continued with its strategy to balance external and internal growth and acquired 152 points of sale, comprising 74 in Americas, 48 in EMEA and 30 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 €71,310 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 03/31/2024 (€ thousands) EMEA 955,383 25,335 - - (826) 979,892 AMERICAS 237,178 31,284 - - 9,885 278,347 APAC 607,013 3,249 - - (11,544) 598,718 Total 1,799,574 59,868 - - (2,485) 1,856,957 “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. 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 54 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 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 quarter of 2024 the Group posted results which were higher with respect to the prior year and above budget. EBITDA showed strong growth with respect to the prior year across all geographies, while results slightly below budget were recorded in AMERICAS and APAC. These slight differences, which should, at any rate, be recovered in the second part of the year, are largely absorbed by the substantial headroom (73% in AMERICAS and 32% in APAC) shown in the sensitivity analysis carried out at 31 December 2023. No indicators of impairment, therefore, emerged and 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 36,870 34,946 4,082 75,898 Assets and liabilities acquired – Book value Current assets 2,537 2,245 - 4,782 Current liabilities (2,687) (3,563) - (6,250) Net working capital (150) (1,318) - (1,468) Other intangible, tangible and right-of-use assets 6,101 1,739 436 8,276 Provision for risks and charges (1,537) - - (1,537) Other non-current assets and liabilities (2,743) (886) - (3,629) Non-current assets and liabilities 1,821 853 436 3,110 Net invested capital 1,671 (465) 436 1,642 Third Parties Equity - - - - Net financial position 3,322 1,266 - 4,588 NET EQUITY ACQUIRED - BOOK VALUE 4,993 801 436 6,230 DIFFERENCE TO BE ALLOCATED 34,145 3,646 69,668 31,877 ALLOCATIONS Trademarks - 1,308 - 1,308 Customer lists 11,545 5,013 397 16,955 Contract liabilities - Short and long-term (3,939) (2,552) - (6,491) Deferred tax assets 707 195 - 902 Deferred tax liabilities (1,771) (1,103) - (2,874) ALLOCATIONS 6,542 2,861 397 9,800 GOODWILL 25,335 31,284 3,249 59,868 55 --- Interim Financial Report as at 31 March 2024 > Condensed 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 03/31/2024 at 03/31/2024 downs at downs at (€ thousands) 12/31/2023 03/31/2024 Software 289,839 (171,112) 118,727 300,384 (182,166) 118,218 Licenses 29,731 (20,618) 9,113 33,675 (21,869) 11,806 Non-competition agreements 19,484 (14,614) 4,870 20,995 (15,643) 5,352 Customer lists 474,972 (276,910) 198,062 490,508 (285,402) 205,106 Trademarks and concessions 95,028 (50,803) 44,225 95,420 (51,797) 43,623 Other 14,056 (4,197) 9,859 14,615 (4,381) 10,234 Fixed assets in progress and 31,733 - 31,733 30,644 - 30,644 advances Total 954,843 (538,254) 416,589 986,241 (561,258) 424,983 Net book Other Net book Business value at Investments Disposals Amortization Impairment net value at combinations (€ thousands) 12/31/2023 changes 03/31/2024 Software 118,727 1,501 (31) (10,546) 7 (500) 9,060 118,218 Licenses 9,113 1,875 - (1,269) - - 2,087 11,806 Non-competition 4,870 319 - (959) - - 1,122 5,352 agreements Customer lists 198,062 (143) - (9,719) 16,955 - (49) 205,106 Trademarks and 44,225 - - (1,750) 1,308 - (160) 43,623 concessions Other 9,859 157 - (54) 288 - (16) 10,234 Fixed assets in progress and 31,733 10,569 - - 536 - (12,194) 30,644 advances Total 416,589 14,278 (31) (24,297) 19,094 (500) (150) 424,983 The investments in intangible assets (€14,278 thousand) are related to new front office solutions and tecnologies fueled also by artificial intelligence to give an hyperpersonlized experience to customers, to continuos implementation and homogenization of Group ERP cloud system for backoffice functions (Human resources, Procurement and Administration and finance). The change in “Business combinations” comprises: - For €12,371 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; - For €6,328 thousand the temporary allocation of the price paid for acquisitions made in Americas; - For €397 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. 56 --- Interim Financial Report as at 31 March 2024 > Condensed 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 03/31/2024 at 03/31/2024 downs at downs at (€ thousands) 12/31/2023 03/31/2024 Land 129 - 129 151 - 151 Buildings, constructions and 321,929 (215,933) 105,996 331,558 (222,880) 108,678 leasehold improvements Plant and machines 43,102 (34,441) 8,661 44,519 (35,796) 8,723 Industrial and commercial 91,892 (71,140) 20,752 93,845 (73,180) 20,665 equipment Motor vehicles 1,259 (838) 421 1,403 (870) 533 Computers and office 90,415 (69,133) 21,282 92,562 (72,221) 20,341 machinery Furniture and fittings 136,733 (100,349) 36,384 140,516 (103,116) 37,400 Other tangible fixed assets 6,686 (4,228) 2,458 6,350 (4,355) 1,995 Fixed assets in progress and 25,433 - 25,433 27,728 - 27,728 advances Total 717,578 (496,062) 221,516 738,632 (512,418) 226,214 Net book Other Net book Business value at Investments Disposals Amortization Impairment net value at combinations (€ thousands) 12/31/2023 changes 03/31/2024 Land 129 - - - - - 22 151 Buildings, constructions and 105,996 4,449 (19) (6,347) 375 - 4,224 108,678 leasehold improvements Plant and machines 8661 307 - 625 393 (19) 6 8,723 Industrial and commercial 20,752 1,054 (5) (1,630) 69 - 425 20,665 equipment Motor vehicles 421 22 (31) (48) 10 - 159 533 Computers and office 21,282 1,296 6 (3,285) 342 - 700 20,341 machinery Furniture and fittings 36,384 2,710 (50) (2,929) 218 - 1,067 37,400 Other tangible fixed assets 2458 (309) (4) (158) - - 8 1,995 Fixed assets in progress and 25,433 6,347 (57) - 2,230 - (6,225) 27,728 advances Total 221,516 15,876 (160) (15,022) 3,637 (19) 386 226,214 The investments of the reporting period (€15,876 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 €2,360 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; - For €843 thousand, the temporary allocation of the price paid for acquisitions made in Americas; 57 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements - For €434 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 03/31/2024 at 03/31/2024 downs at downs at (€ thousands) 12/31/2023 03/31/2024 Stores and offices 880,210 (418,590) 461,620 890,815 (422,341) 468,474 Motor vehicles 31,377 (17,828) 13,549 34,183 (18,121) 16,062 Electronic machinery 4,644 (1,660) 2,984 3,933 (1,250) 2,683 Total 916,231 (438,078) 478,153 928,931 (441,712) 487,219 Net book Other Net book value at Business net value at (€ thousands) 12/31/2023 Increase Decrease Depreciation combinations Impairment changes 03/31/2024 Stores and offices 461,620 36,646 (2,864) (29,057) 3,655 - (1,526) 468,474 Motor vehicles 13,549 5,422 (1,031) (1,977) 150 - (51) 16,062 Electronic machinery 2,984 478 (495) (190) - - (94) 2,683 Total 478,153 42,546 (4,390) (31,224) 3,805 - (1,671) 487,219 The increase in right of use assets acquired in the period is explained by the renewal of existing leases and the network expansion. The change in “business combinations” comprises: - for €2,916 thousand, the temporary allocation of the price paid for acquisitions made in EMEA; - for €889 thousand, the temporary allocation of the price paid for acquisitions made in Americas. “Other changes” refers mainly to foreign exchange differences recorded in the reporting period. 58 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 7. Share capital and treasury shares At 31 March 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 406,424 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. A total of 235,724 treasury shares, or 0.104% of the parent’s share capital, were held at 31 March 2024. During the period no treasury shares have not been acquired. 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 Purchases - - - Transfers due to exercise of performance stock grants (406,424) 27.245 (11,073) Held at 03/31/2024 235,724 27.245 6,422 59 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 8. 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) 03/31/2024 12/31/2023 Change Cash (A) 213,720 193,148 20,572 Cash equivalents (B) - - - Short term investments (C) 841 883 (42) Total Cash, Cash Equivalents and Short-Term Investments 214,561 194,031 20,530 (A)+(B)+(C) (D) Current financial payables (including bonds, but excluding current 194,742 146,200 48,542 portion of medium/long-term debt) (E) - Other financial payables and bank overdrafts 194,713 146,507 48,206 - - Hedging derivatives 29 (307) 336 Current portion of medium/long-term financial debt (F) 301,587 294,055 7,532 - Financial accruals and deferred income 5,296 6,001 (705) - Payables for business acquisitions 11,332 9,554 1,778 - Bank borrowings 164,968 164,978 (10) - Lease Liability – current portion 119,991 113,522 6,469 Current Financial Indebtedness (E)+(F) (G) 496,329 440,255 56,074 Net Current Financial Indebtedness (G)-(D) (H) 281,768 246,224 35,544 Non current financial payables (I) 758,513 753,337 5,176 - Bank borrowings – Non current portion 361,680 362,199 (519) - Payables for business acquisitions – Non current portion 9,850 7,229 2,621 - Lease Liability – Non current portion 386,983 383,909 3,074 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) 1,108,513 1,103,337 5,176 Total Financial Indebtedness (H)+(L) (M) 1,390,281 1,349,561 40,720 60 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements Excluding lease liabilities (€506,974 thousand at 31 march 2024), net financial indebtedness amounted to €883,307 thousand at 31 March 2024, broken down as follows: 03/31/2024 12/31/2023 Change (€ thousands) Cash and Cash Equivalents 213,720 193,148 20,572 Short Term Investments 841 883 (42) Cash, Cash Equivalents and Short Term Investments 214,561 194,031 20,530 Current Financial Indebtedness (excluding lease 376,338 326,733 49,605 liabilities) Net Current Financial Indebtedness (excluding lease 161,777 132,702 29,075 liabilities) Non current Financial Indebtedness (excluding lease 721,530 719,428 2,102 liabilities) Total Financial Indebtedness (excluding lease liabilities) 883,307 852,130 31,177 Long-term net financial debt, excluding lease liabilities, amounted to €721,530 thousand at 31 March 2024 (€719,428 thousand at 31 December 2023), a slight increase of €2,102 thousand compared to 2023 explained primarily by the increase in deferred payments for acquisitions. The short-term portion of net financial debt, excluding lease liabilities, increased by €29,075 thousand, going from €132,702 thousand at 31 December 2023 to €161,777 thousand at 31 March 2024 due primarily to hot money transactions and utilization of short-term credit lines. The Group has unutilized, irrevocable lines of credit of €495 million which, in addition to the unutilized portion of the EIB loan of €225 million, the €87 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 of the net financial position includes other bank debt of €194,731 thousand including hot money and utilization of short-term credit lines, the short- term portion of long-term bank loans (€164,922 thousand), interest payable on other bank borrowings (€3,129 thousand) and the Eurobond (€507 thousand) and lastly, the best estimate of the deferred payments for acquisitions (€11,332 thousand), net of the €214,561 thousand in liquidity. 61 --- Interim Financial Report as at 31 March 2024 > Condensed 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 03/31/2024 (€ thousands) Eurobond 2020-2027 350,000 Loan with the European Investment Bank 75,000 Other medium/long-term debt 286,680 Fees on Eurobond 2020-2027 and bank loans (1,644) Medium/long-term financial liabilities 710,036 b. under the item “financial payables (current)”. Balance at 03/31/2024 (€ thousands) Bank overdraft and other short-term debt (including current portion of other long-term debt) 359,681 Other financial payables 5,530 Fees on bank loans (1,029) Short-term financial liabilities 364,182 All the other items in the net financial position table can be easily referred to in the financial consolidated statements. 62 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 9. Financial liabilities The financial liabilities breakdown is as follows: Balance at Balance at Change (€ thousands) 03/31/2024 12/31/2023 Eurobond 2020-2027 350,000 350,000 - Loan with European Bank of Investments 75,000 75,000 - Other medium long-term bank loans 286,680 287,199 (519) Fees on Eurobond 2020-2027 and bank loans (1,644) (1,932) 288 Total long-term financial liabilities 710,036 710,267 (231) Short term debt 364,182 316,413 47,769 - of which debts for account overdrafts and other short-term liabilities 194,481 146,299 48,181 - of which current portion of short-term bank loans 164,968 164,978 (10) - of which for bank loans (1,029) (1,075) 46 Total short-term financial liabilities 364,182 316,413 47,769 Total financial liabilities 1,074,218 1,026,679 47,539 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 Euro interest rate after Issue Date Debtor Maturity Nominal interest rate (*) (€/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. 63 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements - Bank loans These are the main bilateral and pooled loans which are detailed below: Interest Hedged Nominal Outstan rate Nominal interest nominal Issue Date Debtor Type Maturity value ding after rate (*) amount (€/000) debt hedging (**) (€/000) (**) 3.653% 12/15/2023 Amplifon S.p.A. Amortizing 12/15/2032 75,000 75,000 (***) 04/06/2020 Amplifon S.p.A. Amortizing 04/06/2025 50,000 21,428 5.212% 21,428 0.880% 04/28/2020 Amplifon S.p.A. Amortizing 04/28/2025 50,000 50,000 5.152% 04/23/2020 Amplifon S.p.A. Amortizing 06/30/2025 35,000 21,875 4.785% 21,875 0.785% 08/03/2020 Amplifon S.p.A. Amortizing 06/30/2025 10,000 2,550 4.990% 12/21/2021 Amplifon S.p.A. Amortizing 12/23/2026 210,000 176,400 4.685% 176,400 0.963% 04/07/2020 Amplifon S.p.A. Amortizing 04/07/2025 150,000 90,000 5.175% 60,000 1.05% 04/29/2020 Amplifon S.p.A. Amortizing 04/29/2025 78,000 29,250 5.61% 20,475 1.414% RCF (no 12/29/2023 Amplifon S.p.A. 09/30/2026 60,000 60,000 5.034% cleandown) Total 718,000 526,503 300,178 (*) The nominal interest rate comprises the benchmark rate (Euribor) plus the applicable spread. (**) An Interest Rate Swap was used to hedge these loans against interest rate risk at the IRS rate plus a spread. (***) The EIB loan is fixed rate through 12/15/2027; it will subsequently be adjusted to reflect current market conditions and the Group may choose either a fixed or a floating rate. 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. 64 --- Interim Financial Report as at 31 March 2024 > Condensed 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) €143 million. ≤ 2.85 ≤ 1.65 - - Irrevocable credit lines with top-tier ≤ 2.20 (Net Worth banking institutions of €125 million. Ratio) - €21 million bank loan expiring in 2025 ≤ 3.26 (Leverage - Revolving irrevocable credit line of ≤ 2.85 - > 4.90 Ratio) €15 million -Medium/long-term bilateral loans with top-tier banking institutions of ≤ 3.26 (Leverage €51 million; Ratio) -Irrevocable lines of credit with ≤ 2.85 ≤ 1.65 > 4.90 premier banks amounted to €115 ≤ 2.20 (Net Worth million (of which €100 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 €300 million loan, to date used for €75 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 favored 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 31 march 2024 these ratios were as follows Value as at 03/31/2024 Net financial indebtedness excluding lease liabilities/Group net equity (Net Worth Ratio) 0.78 Net financial position excluding lease liabilities/EBITDA for the last four quarters (Leverage Ratio) 1.52 EBITDA for the last 4 quarters/Net financial expenses (Interest Cover) 17.55 65 --- Interim Financial Report as at 31 March 2024 > Condensed 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 03/31/2024 Group EBITDA first three months 2024 135,695 EBITDA April-December 2023 411,207 Fair value of stock grant assignment 24,578 EBITDA normalized (from acquisitions and disposals) 7,477 Acquisitions and non-recurring costs 3,730 EBITDA for the covenant calculation 582,687 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. 10. Provision for risks and charges Provisions for risks and charges amounted to €21,977 thousand, higher than the €20,647 thousand recorded at 31 December 2023. The provisions for risks at 31 March 2024 are detailed below: 03/31/2024 12/31/2023 Change (€ thousands) Product warranty provision 1,214 1,191 23 Provision on contract risks 3,338 3,420 (82) Agents' leaving indemnities 13,275 13,092 183 Other reserves for risks and charges 1,510 1,676 (166) Total Long-term provision for risks and charges 19,337 19,379 (42) Product warranty provision 205 205 - Other reserves for risks and charges 2,435 1,063 1,372 Total Short-term provision for risks and charges 2,640 1,268 1,372 Total provision for risks and charges 21,977 20,647 1,330 66 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 11. 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: 03/31/2024 12/31/2023 Change (€ thousands) Short term lease liabilities 119,991 113,522 6,469 Long term lease liabilities 386,983 383,909 3,074 Total lease liabilities 506,974 497,431 9,543 During the reporting period, following costs have been booked in profit and loss. First three months (€ thousands) 2024 Interest charges on leased assets (4,451) Right-of-use depreciation (31,224) Costs for short-term leases and leases for low value assets (4,758) 12. Revenues from sales and services First three months First three months Change (€ thousands) 2024 2023 Revenues from sale of products 501,149 469,108 32,041 Revenues from services 71,960 71,143 817 Total revenues from sales and services 573,109 540,251 32,858 Goods and services provided at a point in time 501,149 469,108 32,041 Goods and services provided over time 71,960 71,143 817 Total revenues from sales and services 573,109 540,251 32,858 Consolidated revenues from sales and services amounted to €573,109 thousand in the first three months of 2024, an increase of €32,858 thousand (+6.1%) with respect to the comparison period. The increase against the same period of 2023 is explained for €30,400 thousand (+5.6%) by organic growth and for €17,223 thousand (+3.2%) by acquisitions. The foreign exchange effect was negative for €14,765 thousand (-2.7%). 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 67 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 13. Operating costs, depreciation and impairment, financial income-expenses and taxes Operating costs amounted to €440,691 thousand in the first quarter of 2024 (€428,087 thousand in the first quarter of 2023), an increase of €12,604 thousand (+2.9%) against the comparison period. “Amortization, depreciation and impairment” amounted to €71,062 thousand at 31 March 2024, higher than the €62,075 thousand recorded in the first three months of 2023. “Financial income, expenses and value adjustments to financial assets” came to €14,445 thousand in the first quarter of 2024 (€11,948 thousand in the first three months of 2023). The increase in interest payable on floating rate debt following the uptick in market rates in the first quarter of 2023 was partially offset by lower exchange differences and inflation accounting. Current and deferred tax amounted to €14,850 thousand in the first quarter of 2024, compared to €12,359 in the first quarter of 2023. The tax rate was 29.6% in the reporting period versus 29.7% at 31 March 2023. 14. Non-recurring significant events The first three months of 2024 were impacted by the following non-recurring items: First three First three (€ thousands) months 2024 months 2023 Costs related to second phase of the GAES integration (568) (598) Notional cost of the Amplifon shares assigned by the shareholder Operating costs (508) (7,294) Ampliter to the CEO Costs related to Bay Audio integration (19) - EBITDA (1,095) (7,892) Profit (loss) before tax (1,095) (7,892) Impact of the above items on the tax burden for the period 290 2,306 Total net profit (loss) (805) (5,586) 68 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 15. Earnings (loss) per share Earning (loss) per share Basic earnings (loss) per share is obtained by dividing the net profit for the year attributable to the ordinary shareholders of the parent company by the weighted average number of shares outstanding in the period, considering purchases and disposals of own shares as cancellations and issues of shares. Earnings per share are determined as follows: First three months First three Earnings per share 2024 months 2023 Net profit (loss) attribuable to ordinary shareholders (€ thousand) 34,864 29,299 Average number of shares outstanding in the period 225,787,617 224,551,388 Average number per share (€ per share) 0.15441 0.13048 Diluted earnings (loss) per share Diluted earnings (loss) per share is obtained by dividing the net profit for the period attributable to the ordinary shareholders of the parent by the weighted average number of shares outstanding during the year adjusted by the diluting effects of potential shares. In the calculation of shares outstanding, purchases and sales of treasury shares are considered as cancellation or issue of shares. The potential ordinary share categories refer to the possible conversion of Group employees’ stock options and stock grants’ attribution. The computation of the average number of outstanding potential shares is based on the average fair value of shares for the period; stock options and stock grants are excluded from the calculation since they have anti-diluting effects. First three months First three months Weighted average diluted number of shares outstanding 2024 2023 Average number of shares outstanding in the period 225,787,617 224,551,388 Weighted average of potential and diluting ordinary shares 1,432,024 1,673,108 Weighted average of shares potentially subject to options in the period 227,219,641 226,224,496 The diluted earnings per share were determined as follows: First three months First three months Diluted earnings per share 2024 2023 Net profit attributable to ordinary shareholders (€ thousand) 34,864 29,299 Average number of shares outstanding in the period 227,219,641 226,224,496 Average diluted earnings per share (€) 0.15344 0.12952 69 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 16. Transactions with parents and other related parties The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy and it’s controlled directly by Ampliter S.r.l. (42.06% of share capital and 59.12% of voting rights), held for a 100.0% by Amplifin S.r.l., which is 100% owned 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: 03/31/2024 First three months 2024 Interest Trade Other Revenues for sales Operating income and (€ thousands) receivables Trade payables receivables and services (costs)/revenues expense - Amplifin S.r.l. 1 (5) - - - - Total – Parent 1 (5) - - - - Comfoor BV (The Netherlands) 31 2,380 40 (346) - - Ruti Levinson Institute Ltd (Israel) 29 - - - - Afik - Test Diagnosis & Hearing - - (2) - - - Aids Ltd (Israel) - - Total – Other related parties 58 2,380 40 (346) - - Total related parties 59 2,375 40 (346) Total as per financial statements 232,836 346,881 130,126 573,109 (440,691) (9,035) % of financial statements total 0.03% 0.68% 0.00% 0.01% 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 per €456 thousand, interest on leases for €120 thousand, lease liabilities of €12,408 thousand, and right-of-use asset of €10,483 thousand. 70 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 17. 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 10. 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. 18. 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. 71 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 19. Translation of foreign companies’ financial statements The exchange rates used to translate non-Euro zone companies’ financial statements are as follows: 31 March 2024 2023 31 March 2023 As at As at Average exchange Average exchange rate As at 31 March 31 March 31 December rate Panamanian balboa 1.0858 1.0811 1.1050 1.0730 1.0875 Australian dollar 1.6511 1.6607 1.6263 1.5701 1.6268 Canadian dollar 1.4639 1.4672 1.4642 1.4513 1.4737 New Zealand dollar 1.7717 1.8092 1.7504 1.7040 1.7392 Singapore dollar 1.4552 1.4587 1.4591 1.4302 1.4464 US dollar 1.0858 1.0811 1.1050 1.0730 1.0875 Hungarian florin 388.1800 395.2600 382.80 388.71 379.50 Swiss franc 0.9491 0.9766 0.9260 0.9925 0.9968 Egyptian lira 38.4156 51.1202 34.1589 32.1589 33.5530 New Israeli shekel 3.9777 3.9799 3.9993 3.7959 3.9284 Argentine peso (*) 927.2296 927.2296 892.9239 226.8909 226.8909 Chilean peso 1027.1200 1060.0900 977.07 870.78 858.85 Colombian peso 4253.8900 4169.7200 4267.52 5106.29 5048.97 Mexican peso 18.4492 17.9179 18.7231 20.0431 19.6392 Chinese renminbi 7.8048 7.8144 7.8509 7.3419 7.4763 Indian rupee 90.1551 90.1365 91.9045 88.2438 89.3995 British pound 0.8563 0.8551 0.8691 0.8831 0.8792 Polish zloty 4.3333 4.3123 4.3395 4.7081 4.6700 Uruguayan peso 42.2725 40.5753 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 31 march 2024 è is 904.8167 and as at 31 march 2023 is 206.2678. 72 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 20. 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. 73 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements th (*) Statement of Financial Position as at March 31 , 2024 EMEA AMERICAS APAC ELIM. CONSOLIDATED (€ thousands) ASSETS Non-current assets Goodwill 979,892 278,347 598,718 - 1,856,957 Intangible fixed assets with finite useful life 306,702 56,436 61,845 - 424,983 Property, plant, and equipment 151,946 32,647 41,621 - 226,214 Right-of-use assets 377,682 48,707 60,830 - 487,219 Equity-accounted investments 2,445 - - - 2,445 Hedging instruments 12,223 - - - 12,223 Deferred tax assets 62,692 8,694 12,203 - 83,589 Deferred contract costs 10,846 1,227 31 - 12,104 Other assets 63,599 7,716 2,052 - 73,367 Total non-current assets 3,179,101 Current assets Inventories 69,065 9,287 10,169 - 88,521 Receivables 349,014 54,930 31,939 (72,921) 362,962 Deferred contract costs 5,122 925 153 - 6,200 Hedging instruments 303 - - - 303 Other financial assets 1,093 Cash and cash equivalents 213,720 Total current assets 672,799 TOTAL ASSETS 3,851,900 LIABILITIES Net Equity 1,138,429 Non-current liabilities Medium/long-term financial liabilities 710,036 Lease liabilities 306,924 39,638 40,421 - 386,983 Provisions for risks and charges 17,623 916 798 - 19,337 Liabilities for employees’ benefits 11,730 132 764 - 12,626 Deferred tax liabilities 63,724 21,391 15,708 - 100,823 Payables for business acquisitions 5,024 4,826 - - 9,850 Contract liabilities 149,055 13,657 2,093 - 164,805 Other long-term liabilities 53,357 168 3,596 - 57,121 Total non-current liabilities 1,461,581 Current assets Trade payables 294,006 74,789 50,811 (72,725) 346,881 Payables for business acquisitions 5,027 5,921 384 - 11,332 Contract liabilities 90,605 16,728 7,977 - 115,310 Other payables and tax payables 226,308 30,244 31,196 (196) 287,552 Hedging instruments 333 - - - 333 Provisions for risks and charges 1,944 696 - - 2,640 Liabilities for employees’ benefits 952 451 2,266 - 3,669 Short-term financial liabilities 364,182 Lease liabilities 85,578 12,778 21,635 - 119,991 Total current liabilities 1,251,890 TOTAL LIABILITIES 3,851,900 (*) 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. 74 --- Interim Financial Report as at 31 March 2024 > Condensed 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. 75 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements (*) Income Statement – First three months 2024 EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED (€ thousands) Revenues from sales and services 376,058 110,821 86,164 66 - 573,109 Operating costs (269,742) (85,316) (61,977) (23,656) - (440,691) Other income and costs 2,418 735 (25) 149 - 3,277 Gross operating profit by segment 108,734 26,240 24,162 (23,441) - 135,695 (EBITDA) Amortization, depreciation and impairment Intangible assets amortization (11,102) (3,167) (3,747) (6,281) - (24,297) Property, plant, and equipment (8,627) (2,106) (3,901) (388) - (15,022) depreciation Right-of-use depreciation (20,549) (3,371) (6,727) (577) - (31,224) Impairment losses and reversals of (500) - (19) - - (519) non-current assets (40,778) (8,644) (14,394) (7,246) - (71,062) Operating result by segment 67,956 17,596 9,768 (30,687) - 64,633 Financial income, expenses and value adjustments to financial assets Interest income and expenses (8,685) Interest expenses on lease liabilities (4,451) Other financial income and expenses (575) Exchange gains and losses, and (407) inflation accounting Gain (loss) on assets accounted at fair (337) value (14,455) Net profit (loss) before tax 50,178 Current and deferred income tax Current income tax (15,644) Deferred tax 794 (14,850) Net profit (loss) 35,328 Net profit (loss) attributable to 464 Minority interests Net profit (loss) attributable to the 34,864 Group (*) The figures of the operating segments are net of the intercompany eliminations. 76 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements (*) Income Statement – First three months 2023 EMEA AMERICAS APAC CORPORATE ELIM. CONSOLIDATED (€ thousands) Revenues from sales and services 359,707 100,864 79,594 86 - 540,251 Operating costs (**) (261,166) (78,480) (57,951) (30,490) - (428,087) Other income and costs (**) 883 2,447 98 49 - 3,477 Gross operating profit by segment 99,424 24,831 21,741 (30,355) - 115,641 (EBITDA) Amortization, depreciation and impairment Intangible assets amortization (10,028) (2,474) (3,761) (4,721) - (20,984) Property, plant, and equipment (8,034) (1,558) (2,656) (686) - (12,934) depreciation Right-of-use depreciation (18,932) (2,671) (5,969) (565) - (28,137) Impairment losses and reversals of non- (22) - 2 - - (20) current assets (37,016) (6,703) (12,384) (5,972) - (62,075) Operating result by segment 62,408 18,128 9,357 (36,327) - 53,566 Financial income, expenses and value adjustments to financial assets Group's share of the result of associated 126 - - - - 126 companies valued at equity and gains/losses on disposals of equity investments Interest income and expenses (5,952) Interest expenses on lease liabilities (3,263) Other financial income and expenses (1,202) Exchange gains and losses, and inflation (1,978) accounting Gain (loss) on assets accounted at fair 321 value (11,948) Net profit (loss) before tax 41,618 Current and deferred income tax Current income tax (18,751) Deferred tax 6,392 (12,359) Net profit (loss) 29,259 Net profit (loss) attributable to Minority (40) interests Net profit (loss) attributable to the Group 29,299 (*) 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. 77 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 21. Accounting policies 21.1 Presentation of the financial statements The consolidated financial statements as at March 31, 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. 21.2 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; 78 --- Interim Financial Report as at 31 March 2024 > Condensed 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. 21.3 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-current - Deferral of Effective 19 Dec ‘23 20 Dec ‘23 1 Jan ‘24 1 Jan ‘24 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” (issued on 20 Nov ‘23 21 Nov ‘23 1 Jan ‘24 1 Jan ‘24 22 September 2022) 79 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 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. 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. 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. 21.4 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 02 May 2024, have yet to be endorsed for adoption in Europe. Description Effective date Amendments to IAS 7 ‘’Statement of Cash Flows and IFRS 7 Financial Instruments: Periods beginning on or after 1 Jan ‘24 Disclosures: Supplier Finance Arrangements’’ (issued on 25 May 2023) 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) 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 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. 80 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements 22. Subsequent events th On April 30 , 2024, the Extraordinary Shareholders Meeting of Amplifon S.p.A. approved all the th amendments to the Articles of Association proposed by the Board of Directors on March 15 , 2024. Specifically, the Board of Directors had proposed to its shareholders to: - enhance the increased voting rights mechanism (amendment to Article 13 of the Articles of Association); - introduce the possibility to hold shareholders' meetings exclusively through a so-called proxy agent appointed by the Company (amendment to Article 10 of the Articles of Association); - grant to the Board of Directors the power to increase the share capital pursuant to Articles 2443 and 2420-ter of the Italian Civil Code up to a maximum of €906,000.00 (approximately 20% of the share capital) (amendment to Articles 6 and 9 of the Articles of Association); - make other amendments to the Articles of Association (amendments to Articles 2, 7, 9, 15, 17, 18, 21, 23, 24 and 26 of the Articles of Association). The aforesaid amendments to the Articles of Association shall be effective as of the date of registration of the resolution of the Extraordinary Meeting with the competent Companies’ Register; completion of the registration of the minutes of the Extraordinary Meeting will be announced by the Company pursuant to applicable law and regulations. With regard to the adoption of an enhanced increased voting rights mechanism, the Company aims at encouraging a capital structure more supportive of the Company’s further growth path in the long-term at global level, in a highly competitive market characterized by technology and innovation. Thus, the Company - which retains in Italy its registered office, tax domicile, and listing - could pursue possible further relevant growth opportunities, also by external lines, such as, for instance, acquisitions or strategic alliances, if any, to be realized also through the issuance of new shares or share exchanges with third parties, as well as more effectively foster a solid shareholder base with a long-term investment horizon. Specifically, it is expected that voting rights can be further increased to the extent of one vote per share for each 12-month period of continuous share ownership, up to a maximum of 10 votes per share, according to a step-up mechanism. On these assumptions, shareholders who did not concur in the adoption of the resolution (i.e., those shareholders who did not attend the meeting, or who attended the meeting but voted against the proposed resolution or abstained from voting) on the enhancement of the increased voting rights mechanism (amendment to Article 13 of the Articles of Association will be entitled (but will not be obliged) to exercise their withdrawal right. The effectiveness of the aforesaid amendment to the Articles of Association shall cease (and hence the enhancement of the increased voting rights mechanism and the withdrawal right shall become ineffective) upon the fulfillment of any of the following conditions subsequent: 81 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements (i) the amount in cash to be paid, if any, by Amplifon to the Withdrawing Shareholders, exceeds, in total, the amount of €100 million; and/or (ii) the difference between (x) the price of Amplifon’s share for the purpose of the withdrawal settlement (equal to €29.555 per Amplifon share) and (y) the closing price of Amplifon’s share on the last day of the offer 2 period to the shareholders of the shares of the Withdrawing Shareholders, multiplied by the number of no pre-empted Amplifon shares subject to withdrawal, exceeds in total the amount of €5 million. In April 2024, Amplifon completed the acquisition of one of the main Miracle-Ear franchisees in the United States, with around 35 points of sale and annual revenues of approximately 20 million US dollars, bringing the Group’s direct retail network in the U.S. market to around 400 points of sale. Miracle-Ear also operates through a franchising network comprising approximately 1,200 points of sale in the United States, the largest hearing care market in the world. In addition, the Group continued its external growth with the acquisition of further 14 stores in China, 13 stores in Germany, 14 stores in France and 4 stores in Canada. Subsequent to March 31, 2024, performance stock grant exercises continued, against which the Company issued 9,525 treasury shares. Thus, at the as of the date of this report, the total of treasury shares is 226,199 shares, corresponding to 0.100% of the share capital. th Milan, 6 2024 CEO Enrico Vita 82 --- Interim Financial Report as at 31 March 2024 > Condensed 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 31 March 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 03/31/2024 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 Guidel (France) I EUR 502,830 100.0% Ghama Guidel (France) I EUR 5,000 100.0% Adagio Guidel (France) I EUR 14,000 100.0% Audition Guidel Guidel (France) I EUR 1,500 100.0% Moret Loing et Octave Audition I EUR 10,000 100.0% Orvanne (France) SAS Galy Fronton (France) I EUR 5,000 100.0% Labo Audition Libourne (France) I EUR 50,000 100.0% Saint-Genis-Laval N.C. Audition I EUR 1,000 100.0% (France) Toumelin Pornichet (France) I EUR 7,622 100.0% Pornic Audition Pornic (France) I EUR 118,000 100.0% Audio Montfermeil Montfermeil (France) I EUR 1,000 100.0% LCA Rodez Rodez (France) I EUR 5,000 100.0% Audition du Segala Baraqueville (France) I EUR 1,500 100.0% Prades-le-Lez Amplitude Audition I EUR 1,000 100.0% (France) Boulben Audition - Majuni Queven (France) I EUR 15,000 100.0% Vitry-Sur-Seine OSX Solutions Auditives I EUR 1,000 100.0% (France) Roquefort-Les-Pins Nouvelle Audition I EUR 5,000 100.0% (France) Ondes DBR Baillargues (France) I EUR 3,000 100.0% Audition Fontaine Barentin (France) I EUR 100,000 100.0% Armor audition Brest (France) I EUR 7,622 100.0% AFL audition Frank Lefevre Brest (France) I EUR 200,000 100.0% 83 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 03/31/2024 GFL audition Rennes (France) I EUR 10,000 100.0% Grousseau Beauvais (France) I EUR 7,700 100.0% Nadov Audition Juvisy (France) I EUR 5,000 100.0% Amplifon Ibérica 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. Barcelona (Spain) I EUR 3,000 100.0% Amplifon Portugal SA Lisboa (Portugal) I EUR 15,520,187 100.0% Amplifon Magyarország Kft Budapest (Hungary) D HUF 723,500,000 100.0% Amplibus Magyarország Kft Budaörs (Hungary) I HUF 3,000,000 100.0% Amplifon AG Baar (Switzerland) D CHF 1,000,000 100.0% Doesburg (The Amplifon Nederland BV D EUR 74,212,052 100.0% Netherlands) Doesburg (The Auditech BV I EUR 22,500 100.0% Netherlands) Doesburg (The Electro Medical Instruments BV I EUR 16,650 100.0% Netherlands) Doesburg (The Beter Horen BV I EUR 18,000 100.0% Netherlands) Elst (The Amplifon Customer Care Service BV I EUR 18,000 100.0% Netherlands) Amplifon Belgium NV Bruxelles (Belgium) D EUR 495,800 100.0% Lussemburgo Amplifon RE SA D EUR 3,700,000 100.0% (Luxembourg) Pilot Blankenfelde Medizinisch- Blankenfelde- D EUR 34,595 100.0% Elektronische Gerate GmbH Mahlow (Germany) Amplifon Deutschland GmbH Hamburg (Germany) D EUR 6,026,000 100.0% Focus Hören AG Willroth (Germany) I EUR 485,555 100.0% focus hören Deutschland GmbH Willroth (Germany) I EUR 25,000 100.0% Hörvergnügen GmbH Buchholz (Germany) I EUR 25,000 100.0% Audea Hörcenter GmbH Meppen (Germany) I EUR 250,000 100.0% Pavel Hören und Sehen GmbH & Co. Münster (Germany) I EUR 122,566 100.0% KG Hörwelt Duisburg GmbH Duisburg (Germany) I EUR 25,000 100.0% Amplifon Poland Sp. z o.o. Lodz (Poland) D PLN 3,348,280 100.0% Manchester (United Amplifon UK Ltd D GBP 130,951,168 100.0% Kingdom) Manchester (United Amplifon Ltd I GBP 1,800,000 100.0% Kingdom) Manchester (United Ultra Finance Ltd I GBP 75 100.0% Kingdom) Amplifon Cell Ta' Xbiex (Malta) D EUR 2,500,125 100.0% Medtechnica Ortophone Ltd (*) Tel Aviv (Israel) D ILS 1,100 90.0% Amplifon Middle East SAE Cairo (Egypt) D EGP 3,000,000 51.0% St. Paul (United Miracle Ear Inc. I USD 5 100.0% States) Minneapolis (United Elite Hearing, LLC I USD 1,000 100.0% States) St. Paul (United Amplifon Hearing Health Care. Inc. I USD 10 100.0% States) New York (United Ampifon IPA, LLC I USD - 100.0% States) Dover (United Amplifon USA Inc. D USD 52,500,010 100.0% States) METX, LLC Waco (United States) I USD - 100.0% 84 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 03/31/2024 MEFL, LLC Waco (United States) I USD - 100.0% METampa, LLC Waco (United States) I USD - 100.0% MENM, LLC Waco (United States) I USD - 100.0% Wilmington (United ME Flagship, LLC I USD - 100.0% States) Minneapolis (United ME Pivot Holdings, LLC I USD 2,000,000 100.0% States) Minneapolis (United MEOH, LLC I USD - 100.0% States) Miracle Ear Canada Ltd. Vancouver (Canada) I CAD 129,901,200 100.0% 2829663 Ontario Inc Milton (Canada) I CAD - 100.0% Fort McMurray Ossicle Fort McMurray Inc I CAD - 100.0% (Canada) Southern Alberta Hearing Aid Ltd Lethbridge (Canada) I CAD - 100.0% Burnaby Hearing Center Inc Burnaby (Canada) I CAD - 100.0% 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% Lisa Reid Audiology Hearing Centres Manitoba (Canada) I CAD - 100.0% Great to Hear, Inc Manitoba (Canada) I CAD 35 100.0% Ontario, Inc Ontario (Canada) I CAD 1,000,100 100.0% Living Sounds Hearing Centre Ltd. Alberta (Canada) I CAD 100 100.0% Professional Hearing Services Ontario (Canada) I CAD 1,210 100.0% Ltd./100391416 Ontario Ltd. Sackville Hearing Centre Limited Nova Scotia (Canada) I CAD 1,020 100.0% Hometown Hearing Centre Inc Bancroft (Canada) I CAD 400 100.0% Newlife Hearing Inc. St. John's (Canada) I CAD 1,200 100.0% Provincial Hearing Aid Service Halifax (Canada) I CAD 100 100.0% (Halifax) Ltd. Prince Rupert Rupert Hearing Ltd I CAD 10 100.0% (Canada) Clarity Hearing Waterloo (Canada) I CAD 290,000 100.0% 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) GAES Colombia SAS Bogotà (Colombia) I COP 22,000,000,000 100.0% Audiovital S.A. Quito (Ecuador) I USD 430,337 100.0% Centros Auditivos GAES Mexico sa de Ciudad de México I MXN 276,477,133 100.0% cv (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) 85 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements Direct/Indirect % held as at Company name Head office Currency Share Capital ownership 03/31/2024 Amplifon Australia Holding Pty Ltd Sydney (Australia) D AUD 392,000,000 100.0% National Hearing Centres Pty Ltd Sydney (Australia) I AUD 100 100.0% National Hearing Centres Unit Trust Sydney (Australia) I AUD - 100.0% Otohub Unit Trust (in liquidazione) Brisbane (Australia) D AUD - 100.0% Otohub Australasia Pty Ltd Brisbane (Australia) D AUD 10 100.0% Attune Hearing Pty Ltd Brisbane (Australia) D AUD 14,771,093 100.0% Attune Workplace Hearing Pty Ltd Brisbane (Australia) I AUD 1 100.0% Ear Deals Pty Ltd Brisbane (Australia) I AUD 300,000 100.0% Bay Audio Pty Ltd Sydney (Australia) D AUD 10,000 100.0% Singapore Amplifon Asia Pacific Pte Limited I SGD 1,000,000 100.0% (Singapore) Auckland (New Auckland Hearing Ltd I NZD - 100.0% Zealand) Takapuna (New Amplifon NZ Ltd I NZD 130,411,317 100.0% Zealand) Takapuna (New Bay Audiology Ltd I NZD - 100.0% Zealand) Auckland (New Dilworth Hearing Ltd I NZD - 100.0% Zealand) Amplifon India Pvt Ltd Gurgaon (India) I INR 2,050,000,000 100.0% Beijing Amplifon Hearing Technology Běijīng (China) D CNY 2,143,685 100.0% Center Co. Ltd Tianjin Amplifon Hearing Technology Tianjin (China) I CNY 3,500,000 100.0% Co. Ltd Shijiazhuang Amplifon Hearing Shijiazhuang (China) I CNY 100,000 100.0% Technology Co. Ltd Amplifon (China) Investment Co. Ltd Shanghai (China) D CNY 363,250,000 100.0% Hangzhou Amplifon Hearing Aid Co. Hangzhou (China) D CNY 11,000,000 60.0% Ltd (**) Zhengzhou Yuanjin Hearing Zhengzhou (China) I CNY - 60.0% Technology Co.. Ltd. (**) Wuhan Amplifon Hearing Aids Co. Wuhan (China) I CNY 20,000,000 100.0% Ltd Shanghai Amplifon Hearing Shanghai (China) I CNY 50,000,000 100.0% Technology Co. Ltd Nanjing Amplifon Hearing Aid Co. Ltd Nanjing (China) I CNY 15,000,000 100.0% Shanxi Tingdaoai Hearing Technology Taiyuan (China) I CNY 30,000,000 100.0% co.ltd Henan Shengjia Hearing Aids Co., Ltd. Luoyang (China) I CNY 1,000,000 60.0% (**) Fuzhou Tingan Medical Device Co. Fuzhou (China) I CNY 20,000,000 100.0% Ltd Chongqing Amplifon Hearing Aids Co. Chongqing (China) I CNY 10,000,000 100.0% Ltd. Sichuan Meilingting Medical device Chengdu (China) I CNY 9,000,000 100.0% Co.ltd Xi'an Ansheng Medical Equipment Xi'an (China) I CNY 16,000,000 100.0% Co. Ningxia Listening Shunan Medical Yinchuan (China) I CNY 16,000,000 100.0% Equipment Co. Yunnan Hearing Sound Medical Kunming (China) I CNY 16,000,000 100.0% Technology Co. 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%. 86 --- Interim Financial Report as at 31 March 2024 > Condensed Consolidated Financial Statements (**) Hangzhou Amplifon Hearing Aid Co.. Ltd. And its subsidiaries Zhengzhou Yuanjin Hearing Technology Co. Ltd and Henan Shengjia Hearing Aids Co., Ltd. (together Soundbridge) and Henan Shengjia Hearing Aids Co., Ltd. are consolidated using the full consolidation method, with a control of the group of 60% because of the direct ownership of 51% and a put-call option for an additional 9%. Companies valued using the equity method: Direct/Indirect Share % held as at Company name Head office Currency ownership Capital 03/31/2024 Doesburg (The Comfoor BV (*) I EUR 18,000 50.0% Netherlands) Emmerich am Rhein Comfoor GmbH (*) I EUR 25,000 50.0% (Germany) Ramat HaSharon Ruti Levinson Institute Ltd (**) I ILS 105 16.0% (Israel) Afik - Test Diagnosis & Hearing Aids Jerusalem (Israel) I ILS 100 16.0% Ltd (**) Mairangi Bay (New Lakeside Specialist Centre Ltd (**) I NZD - 50.0% Zealand) (*) Joint Venture (**) Related companies 87 --- Interim Financial Report as at 31 March 2024 > Condensed 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 – 31 March 2024. We also certify that the condensed interim consolidated financial statements at 31 March 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 Milano, May 6 , 2024 CEO Executive Responsible for Corporate Accounting Information Enrico Vita Gabriele Galli 88