Amplifon — Earnings Release 2016

Oct 26, 2016

Informazione Regolamentata n. 0525-152-2016		Data/Ora Ricezione 26 Ottobre 2016 12:10:12	MTA - Star
Societa'	:	AMPLIFON
Identificativo Informazione Regolamentata	:	80614
Nome utilizzatore	:	AMPLIFONNSS02 - Giorcelli
Tipologia	:	IRAG 03
Data/Ora Ricezione	:	26 Ottobre 2016 12:10:12
Data/Ora Inizio Diffusione presunta	:	26 Ottobre 2016 12:25:13
Oggetto	:	Amplifon: the path of strong growth and improving profitability continues
Testo del comunicato

Vedi allegato.

AMPLIFON PROFITABILITY PROFITABILITY CONTINUES STRONG GROWTH AND GROWTH AND IMPROV IMPROVING ING

• • Consolidated revenues of Euro current exchange rates compared to the first Consolidated Euro 803.9 million, up 10. to the up 10.the first nine months of 10.8% at constant exchange rates and nine months 2015 % at constant exchange rates and % at constant exchange rates 5.1% of revenues, an 9.6% at
• • EBITDA increase of 12. revenues, an increase of current net of nonincrease 12.3% compared to 2015. EBITDA as reported reached Euro -recurring expenses % 70 basis points compared to reached Euro % compared to 2015. EBITDA as reported reached Euro reached Euro % compared 41.1 million, an increase of 121.6 million, or 1 the same period of 2015 million, or 15.1 119.1 million, or 1 same period of 2015 % of million, 14.8% of % % %
• • Recurring net profit nine months to the same period of 2015 revenues, Recurring net profit nine of 2015. amounted Net profit as reported was Euro basis amounted to Euro 41.1 reported was Euro million, up with respect 39.3 million, an increase of 5 the same increase of 40.1% compared to the first million, an increase the Euro 252.5 million reported at % compared to the first of 55.3 % 5.3% compared
• • Net financial debt was Euro 265.9 million, September 30 the Euro 204.9 million posted at December 31 payment to of 2015Net 265.9 million,September th, 2015 the Euro 204.9 payment 2015, primarily profit reported was due to increased investments in acquisitions due to increased investments in acquisitions posted at 31st, 2015 to , 2015 also due to due due to seasonality and Euro 252.5 million reported at acquisitions, and with respect to seasonality and dividends Euro 252.5 reported to dividends
• • Free cash flow was positive Free flow was for Euro 2 for Euro 27.5 5 million after non non-recurring expenses of Euro 3.1 million

MAIN ECONOMICAL ECONOMICAL AND FINANCIAL FIGURES FIGURES – FIRST FIRST NINE MONTHS MONTHS 2016

AMPLIFON : THE PATH OF STRONG GROWTH AND GROWTH AND IMPROV IMPROVING ING
PROFITABILITY PROFITABILITY		CONTINUES
REVENUES RISE RISE BALANCED BALANCED ACROSS ALL	10.8%	AT CONSTANT EXCHANGE CONSTANT EXCHANGE REGIONS AND POSITIVE REGIONS AND POSITIVE		EXCHANGE RATES,	DRIVEN BY PERFORMANCE OF PERFORMANCE OF THE P	DRIVEN BY SOLID ORGA BY SOLID ORGA SOLID ORGA OF THE PROFITABILITY INDICAT	ORGANIC GROWTH WELL NIC ROFITABILITY INDICAT	INDICATORS
EXECUTION PERFECTLY I THE GROUP ROUP'S STRATEGY AND MID MID-TERM EXPECTATIONS : LAUNCH IN LINE WITH THE N STRATEGY TERM EXPECTATIONS CH TV GERMANY AND THE U NITED STATES , OF NEW CAMPAIGNS IN ACCELERATION OF ACCELERATION OF OF THE NETWORK 260 STORES, 107 GERMANY ERMANY, EXPANSION EXPANSION WITH THE A ADDITION OF DDITION STORES OF WHICH IN WHICH AND RENEWAL OF THE AND RENEWAL OF THE MIRACLE -EAR -SIVANTOS NORTH AMERICA SUPPLY AGREEMENT FOR
The main results The main results for the first nine months of Consolidated • • current • • EBITDA increase revenues, • • nine months nine to • • Net September 30 September payment payment • • Free Milan, October 2 Milan October 26 AMP:IM), AMP:IM), global leader in hearing solutions and services, approved the Interim AMP:IM), global September September 30	results for net of non increase of 12. % revenues, an increase of Recurring net profit Recurring net profit of 2015. to the same period of 2015 th, 2015 the Euro 204.9 Free cash flow was positive flow was th , 2016 th , 2016	first nine Consolidated revenues of Euro Euro current exchange rates compared to the first -recurring expenses 12.3% compared to 2015. EBITDA as reported reached Euro % compared to 2015. EBITDA as reported reached Euro % compared amounted to Euro 41.1 amounted profit of 2015 Net financial debt was Euro 265.9 million, 2015, primarily the Euro 204.9 million posted at December 31 posted at Today Today in in hearing solutions and hearing , 2016 during a meeting chaired by Susan Carol Holland during a a meeting	to the basis 265.9 million, million, due for Euro 27.5 for Euro 2 the Board Board	2016 2016: 803.9 million, up 10. up 10. the first nine months of reached Euro reached Euro 70 basis points compared to 41.1 Net profit as reported was Euro reported was reported was Euro 31st, 2015 5 of of Directors	nine months the same million, an increase of up with respect , 2015 also due to million after non Directors of services, approved by Susan Carol Holland.	10.8% at constant exchange rates and % at constant exchange rates and % at constant exchange rates 2015 2015 121.6 million, or 1 million, or 15.1 the same period of same period of 2015 increase of 40.1% compared to the first 39.3 million, an increase of 5 million, an increase to due to increased investments in acquisitions due to increased investments in acquisitions due to non-recurring expenses of Euro 3.1 million recurring expenses of recurring – Today the Board of Directors of Amplifon S.p.A. (MTA; Bloomberg ticker: Amplifon S.p.A. (MTA; Bloomberg Amplifon the Interim the Holland	5.1% of revenues, an % of 119.1 % % compared to the first the Euro 252.5 million reported at Euro 252.5 Euro 252.5 million reported at acquisitions, and with respect to seasonality and seasonality and dividends S.p.A. (MTA; Interim Financial	million, million, or 1 of 55.3 % reported dividends	9.6% at % 14.8% of % 5.3% compared to Euro 3.1 million Bloomberg ticker: Financial Report as at
	MAIN	ECONOMICAL ECONOMICAL	AND	FINANCIAL	FIGURES FIGURES –	FIRST FIRST NINE	MONTHS MONTHS	2016
		First nine First nine months 2016				First nine months 2015 First nine months 2015	months 2015
(Euro millions) (Euro millions)	Recurring	Non recurring	Total	% on recurring	Recurring	Non recurring	Total	% on recurring recurring	Change % on recurring
Net Net revenues	803.9	-	803.9	100.0%	733.7	-	733.7	100.0%	9.6%
EBITDA EBITDA	121.6	(2.5)	119.1	15.1%	108.3	(4.8)	103.5	14.8%	12.3%
EBIT	83.0	(2.5)	80.5	10.3%	70.3	(4.8)	65.5	9.6%	18.1%
Group Group net income	41.1	(1.7)	39.3	5.1%	29.3	(4.0)	25.3	4.0%	40.1%
Free Free cash flow			27.5				38.4
30/09/2016 31/12/2015 Change %
Net Net financial position position	265.9				204.9				29.8%

ECONOMICALFIGURES – Q3

		Q3 Q3 2016				Q3 2015
		Non		% on		Non		% on	Change % on
(Euro millions) (Euro millions)	Recurring	recurring	Total	recurring	Recurring	recurring	Total	recurring recurring	recurring
Net Net revenues	259.7	-	259.7	100.0%	233.5	-	233.5	100.0%	11.2%
EBITDA EBITDA	33.6	-	33.6	13.0%	29.7	2.0	31.7	12.7%	13.3%
EBIT	20.8	-	20.8	8.0%	17.2	2.0	19.2	7.4%	20.9%
Group Group net income	9.7	-	9.7	3.7%	4.8	2.0	6.8	2.0%	103.3%

"We are very satisfied with the third quarter pe pursuing first nine months of 2016 by more than 10% at constant exchange rates, driven b and North America showed a of even greater satisfaction if compared to the 2015, to execute them confirmed t TV campaigns in Italy, Germany and the United States, and the continuous markets, excellent allow us to goals We pursuing with determination since the beginning of the year. first 2016 and excellent performance North showed of greater 2015, not only confirm to confirmed the TV markets, boosted by excellent results, the strategic choices made and the strong execution capabilities allow reach goals". months and which and shops, MAIN year. excellent the validity of them," said he effectiveness boosted by the recent acquisitions in Germany and Canada esults, strategic and the end of 2016 quarter of mplementation of ECONOMICAL of all the strong acceleration and Asia Enrico Vita, Amplifon's Chief Executive Officer effectiveness of both are very with quarter with determination by 10% at constant all the regions in which we ope strong validity our strategic choices but also demonstrate the Vita, both our new marketing initiatives, which include the and and recent acquisitions Germany capabilities of with optimism and months acquisitions, 75 shopshops in third Iberian and New Zealand; the AND FINANCIAL third performance and the strong growth path since the beginning of nine months rates, driven b regions strong and Asia-Pacific is in excellent shape. even if the remarkable choices but Chief Executive Officernew marketing which include campaigns in Italy, United and esults, strategic the execution optimism will allow us to to accelerate net rose network expansion was accelerated in the first the organically through 185 and 75 shops the quarterthe Peninsula, Poland, and FINANCIAL FIGURES formance Revenues grew in the quarter and in the operate: Pacific in excellent performance reported in the same period of will to formance the strong growth Revenues grew in and in of by more rate: steady growth continued in Pacific is excellent shape. performance in the same period of strategic demonstrate the Enrico Amplifon's marketing initiatives, the in Italy, Germany and United network acquisitions and Canada. We are esults, the made and strong execution allow achieve our medium/long in the Poland, Australia 2016 and strong Revenues grew in the quarter and the of 10% by strong organic growth growth continued in Pacific These results, source reported in of also Company's Executive Officer. "Once again which recently launched network expansion in We are confident choices the strong demonstrated achieve our medium/long we have been growth growth Europ hese source Company's ability Once again we have recently confident that these demonstrated medium/long-term Europe, core will term

Overview Overview

Amplifon reported increase of 10. same period of 2015 result was driven, once again, by strong organic growth (+ accompanied by a negative foreign exchange effect of 1. 12.3 financial debt 2015 the Euro 204.9 million reported at December 31 Amplifon increase same of 2015result driven, once strong accompanied by exchange 3% or 30 basis points. Recurring financial 2015 primarily the Euro 204.9 reported at 31 consolidated revenues of Euro 803. 10.8% at constant exchange rates and of 2015, despite the remarkable 0 basis Recurring was Euro 2 due to the acqu % 265.9 million acquisitions of % at exchange and of remarkable again, organic accompanied negative foreign net profit rose 40.1% compared to September 30 million, higher than the Euro 252.5 million reported at September 30 isitions made in the last 12 months (Euro revenues Euro 803.9 of 9.6 performance reported in the same was driven, by strong by foreign rose 40.1% to September 30, higher than Euro million reported at September made in the last 12 (Euro st, 2015 also 9 million in the first 6% at current exchange rates compared to the in by (+8.0%) and acquisitions (+2. 1.2%. Net of non 40.1% the also due to seasonality and million in the first % at current exchange rates compared the performance reported the same%) and (+2.%. non-recurring items, EBITDA rose net compared September higher than the million September 3012 months 76.8 seasonality and nine months % at exchange to the reported period of 2015. %) acquisitions (+2.8 recurring items, EBITDA rose rose , Euro 252.5 30 million), and dividends months of 2016, an 8%), which recurring th, 2015. higher than payment This was Net th , payment.

In the third quarter of 2016 first half challenging comparison with the increase of 1 (+8. reached Euro the third quarter of 2015. incurred in the period the In quarter first half, recording challenging increase 11.2 (+8.1%) and acquisitions (+3. reached 33.6 the quarter of incurred in the third quarter of 2015 to Euro cording the eleventh consecutive quarter 1.2% compared to the third quarter of 2015 %) and million, an increase of 1 in order 2016, Amplifon continued with same period of (+3.1%). No exchange effect was recorded. This result was to accelerate future growth. Recurring net profit rose 9.7 continued the eleventh consecutive quarter compared the quarter 2015 No exchange was 13.3 is result also 9.7 million. Amplifon the trend 2015. compared to quarter 2015. This result was driven No effect recorded. 3%, with an achieved the of strong revenue growth of solid organic gr . Revenues amounted to Euro 259.7 million, an . EBITDA margin thanks to the increased marketing investments of strong growth organic growth, Revenues amounted to Euro 259.7 . This result was was EBITDA net of non margin of 13.0% compared to 12.7% in growthwth, notwi Revenues to Euro 259.7 an This by strong organic growth net of non-recurring 13.0% compared to 12.7% in the investments future growth. Recurring profit rose 103.3 reported in the notwithstanding by organic growth recurring items in 103.3% compared to the

The i months of the year, both organically and through acquisitions, adding 185 stores and 75 shop which 142 stores and 9 shop shops, were located largely The implementation of the Company shop-in-shops in the third quarter in the Iberian Peninsula, Poland, Australia and New Zealand; while the mpany's network expansion program was accelerated in the first nine expansion was alone. The openings, increased marketing investments to growth. accelerated the first nine of and acquisitions, stores The openings, program nine year, both organically stores openings, 23 stores and Peninsula, Zealand; the shop-in-shops, of stores 69 shop % shops, shop-in-

acquisitions were made chains for a total of 86 stores, France where 23 stores and acquisitions chains a France and mainly in Germany in Canada, 3 shop-in in Germany, primarily through the acquisition in July of two mid with in-shops were added. , primarily through the in July of two midwith the absorption of 21 were added. the nine months of 2016, an increase primarily through acquisition Hear More stores in Ontario, and midstores in of 10. -size in

Financial results for the first nine months of 2016 Financial results nine

Consolidated revenues at constant exchange rates and of Revenues were driven by solid organic growth (+ thanks to Financial for the first nine months of Consolidated revenues at Revenues thanks the strong performances recorded in all geographies where the Company is present reached Euro 9 803.9 million in the first .6% at current exchange rates compared to the same period million in the first % at exchange rates to the same period organic growth (+8.0%) and acquisitions (2. nine months 2016, increase % at %) and (2.8%). nine of an the same %). This result was achieved the strong where the Company is present of 2015. This achieved present. 10.8%

Thanks to the significant growth in revenues and increased operational efficiency, recurring 121.6 2015 to Euro million include advisory fee Thanks to significant growth revenues increased efficiency, recurring items 121.6 million, with the EBITDA margin coming in at 1 2015 Euro 119.1 the items, rose 12. the million, with the margin coming in at 1 , 12.3% from the Euro fees and expenses related to the in operational efficiency, % the Euro 108.3 million, with in million, with the margin coming in at s and expenses related to improved markedly, rising from the 1 recorded in all geographies where the operational 108.3 million reported in the at 15.1%. million, the margin s an acquisition rates %) acquisitions geographies %. EBITDA as reported 14.8%. acquisition process performances recorded in all and million reported in the same period EBITDA as reported Non-recurring expenses of Euro 2.5 process which was not completed. revenues EBITDA same period of 2015 to Euro reported rose 15.1% compared to recurring expenses of Euro 2.5 which was not completed. EBITDA, net of non of 2015 Euro .1% to recurring completed. % recorded the first non-

The nine months of 190 same period of the prior year, with a margin contraction of 1 marketing investments i nine months of the year with period of 2015 million include The recurring nine of 2015 to 1 190 basis points. same of prior with contraction of marketing inine months of period 2015. recurring EBITDA margin for 14.2 points. Recurring incurred in the period to accelerate future growth. . EMEA 4.2% in the first EBITDA reached Euro ncurred an EBITDA of Euro % in first nine months reached Euro period contraction ncurred in the to accelerate Euro to basis to the same period the year. 40.1% compared to the first improved markedly, rising from nine of 2016, an increase of 2 28.5 of a growth. an 36.5 million, markedly, of 28.5 million in 160 basis points as a result of the increased an increase of 5.2% compared to the rising the 12.3 2016, increase of 27 AMERICAS 0 basis points as a result of increased the growth. ASIA an increase of 5.2% to the 2.3% recorded in the first 7.2% in absolute terms and AMERICAS, largely in line with the 0 points as a of the increased ASIA-PACIFIC increase of 5.2% compared the%), or 10.3% of revenues, an % absolute terms and largely the PACIFIC closed the first same

Net of non increase of Euro reported which was impacted by Net non-recurring costs, increase of 70 Euro 41.1 million, an increase of reported amounted to Euro which was by recurring basis points compared to the same period of the prior year. increase to non EBIT amounted to Euro 39.3 million, an increase of 5 non-recurring expenses after tax increase of recurring expenses after amounted 83.0 basis points same of year. % to first million, 5recurring after tax of 83.0 million (+1 nine months of 55.3% compared to the same period of Euro 4.0 million illion (+18.1%), or 1 period Recurring net profit nine months of % to the same .0 million. Recurring net profit 2015. % compared to same period % of an reached Net profit as of 2015,

Performance by geographic area

EMEA: Performance by geographic EMEA: profitable growth and market share profitable profitable growth gains gains

Revenues at constant exchange rates and of 10. prior year. This result was driven for the foreign exchange Italy strategy and othe Company acquisitions Iberian Peninsula organic growth in volumes, comparison with the excellent performance recorded in the same period of primarily by acquisitions. to revenue profitability improved significantly. Recurring EBITDA amounted to 14.2 Revenues in Europe, the Middle East and Africa ( at rates prior year. was the Italy, primarily strategy Company reported exceptional double acquisitions (107 Iberian organic in despite comparison the excellent the same primarily revenue acceleration and greater operational efficiency profitability Recurring 4.2%, an increase Europe, the Middle and Africa effect primarily driven by other integrated marketing initiatives stores), as well as solid organic growth , Switzerland growth. A positive performance was reported in the operational n of 190 had a negative impact of remarkable r , , Belgium persistent price pressure. In Revenue growth basis points in constant exchange 10.2% at current exchange rates compared to the same period of the This for 7.4% by strong organic negative impact of organic growth initiatives double-digit growth in , organic growthBelgium - Luxembourg performance reported in nt price growth in local currency was also acceleration improved significantly. EBITDA compared to the first nine months of the and EMEA) reached Euro % at current exchange to same of the % by strong organic had 1.0 which was boosted by r initiatives, including the launch of a new TV campaign. digit growth in German as solid Luxembourg positive the Netherlands nt pressure. Franc recorded in n local currency was also amounted to to the first nine months of growth and for 3. 1.0%. The solid boosted , launch of Germany, driven by the contribution of recent solid growth. Double digit growth , Hungary the France, which is still subject to a challenging also efficiency, EMEA of , of two the of 21 Hear More ) reached Euro 526.5 million, an increase of 11. % exchange to the period of growth and for 3.growth trend which boosted , the launch of a new campaign. driven by the contribution of recent ouble digit growth Hungary and Poland the Netherlands thanks to which is still subject a challenging the excellent performance in the was solid in the EMEA's contribution to the significantly. to Euro 74.6 million with a margin of compared to 2015 an increase of 11. rates the for 3.8% by acquisitions, while growth trend was confirmed in was the new communication TV campaign. the contribution recent ouble was also Poland mainly thanks to a significant increase is to of 2015, growth was driven solid in the United Kingdom 's contribution to the 74.6 million with a of 5. increase of % acquisitions, while in the communication also posted in the due to strong significant increase growth was driven United Kingdom. Thanks Company's 74.6 with of 11.2% The

AMERICA: AMERICA: steadily accelerati accelerating

Revenues in currencies and All businesses in North America recorded positive performances, with Health Care marketing (including the new TV campaign) as well as greater positive impact of the agreements with two premiere insurance companies. also renewed the supply Under this agreement, the Miracle was reported by comparison with Strong growth was reported in stores were, in fact, acquired in Ontario which brought the network to a total of 42 direct Recurring reported in the same period of 2015, but with a margin contraction due to the increased marketing investments incurred in the period. 50% compared to the first support the new Miracle Revenues in AMERICAS currencies All in America recorded performances, Health marketing positive also Under agreement, the Miracle-Ear brand hearing aids will continue was comparison Strong in stores in acquired the to a Recurring EBITDA amounted to Euro reported but a margin the investments in period. 50% the support AMERICAS reached Euro 1 8.2% at current exchange rates. reporting particula which Ear brand will Elite Hearing Network the same period of amounted to Miracle-Ear TV campaign launched % particularly strong agreement signals the continuation of a strong partnership started over 15 years ago, Canada nine months of 2015 Ear Euro 157 million in the first at current rates. businesses rly strong results new as as greater impact with Sivantos the of a strong 15 years ago, Ear will Hearing which of 2015, when a contract with a , largely Ontario brought total 28.5 million period increased the These investments nine 2015 campaign launched in the million the first exchange This result was positive thanks, respectively, campaign) impact insurance Sivantos, Inc. for three years effective continuation started Ear aids to be manufactured by Sivantos which in the third quarter en a contract with a largely driven by the network were, acquired Ontario network a 42 direct in AMERICAS in the 2015, with a These to accelerate future growth 2015 and are TV campaign in July. nine months primarily store Sivantosin en commercial partner AMERICAS, largely in line with the Euro to future mainly attributable to the costs incurred to July. network IT .nine of 2016, up driven by strong organic growth. All performances, Miracle-Ear thanks, respectively, to operational efficiency of the agreements two premiere insurance companies. During the period for three years effective continuation of started 15 to be manufactured Sivantos in the third quarter began to benefit from a favorable partner the network expansion in which network total direct , largely in line with the Euro reported in same period of margin contraction due to the to accelerate growth attributable to incurred to million in the first nine months network and infrastructure, of 2016, up driven by strong organic growth. Ear and Amplifon Hearing to greater investments operational efficiency During the period from January 1 signals strong over ago, to Sivantos. A positive per began to benefit from a favorable commercial was terminated expansion. In August stores were, in brought 42 , but due to marketing were the to Euro 35.6 million, up 8.7% in local driven Hearing investments operational efficiency, and to the the Miracle 1st , 2017. A performance In August, 21 Hear More points of sale , 28.7 million were up more than % in , Miracle-Ear formance terminated. sale.

ASIA ASIA-PACIFIC: continued outstanding performance performance

Revenues in 11.1 year. This result was driven for 10.2% by solid organic growth and for 0.9% by acquisitions. A particularly brilliant distribution channel shops strong acceleration in organic growth in the third quarter. million confirming, once again, the operative excellence of the network profitable within will be Stevens by Amplifon, is currently development and to the recent acquisitions Revenues ASIA 1% in local currencies year. driven organic A brilliant performan distribution channel shops). New Zealand strong in organic growth in million the the profitable will leaving the Stevens will assume this by is development ASIA-PACIFIC % local and of performance was productivity and further expansion of the network also performed well, within the Company leaving Group at the end of the year to pursue other professional opportunities and assume role PACIFIC amounted to Euro 119.8 8.1% at current exchange rates compared to the same period of the prior recorded Company. Lastly, role. Craig Stevens, Market Director % at exchange same period This by by in Australia further expansion of the also performed despite a particularly the third again, excellence network please note the end the to pursue professional Craig already part of Director of Germany where he has contributed to its significant the recent acquisitions. to Euro million in the first % to result was 10.2% and for by A Australia, where double productivity and further expansion the despite particularly acceleration excellence networkplease note that Jo Group at of other already of of where has contributed to its double-digit The Region's EBITDA amounted to Euro that John Pappalardo, Executive Vice President APAC, of National H where rates the period of driven for by organic growth for 0.9% acquisitions. particularly digit organic growth was driven by of network (8 new stores and 2 despite challenging comparison base, with The Region's EBITDA amounted to Euro confirming, once operative network, hn Pappalardo, Executive Vice professional and National Hearing Care Germany he significant All positive, Company's solid and nine months of 2016, an increase of current compared the prior year. for growth and 0.9% particularly organic growth was driven by 8 new stores and 2 challenging comparison base, with which remains the most hn APAC, year other earing when it was Germany he significant 2016, an of organic was driven strong 22 shop most hn Craig it acquired shop-in-36.5

Balance sheet figures as at Balance September 30 th , 2016 2016

All balance sheet indicators remained positive, confirming the Company's solid financial structure and ability to sustain its 30th, 2016, an increase compared to the Euro 500 debt primarily 204.9 million addition to the acquisitions at September compared to the Euro 35. This the new openings and the 28.8 million All sheet remained the financial ability sustain Euro debt was Euro 2 primarily due to the acquisitions made in the last 12 months (Euro 76.8 million), 204.9 posted addition to September compared Euro This difference the 28.8 investments made ambitious growth 265.9 million, the made (Euro 76.8 at December 31 30th, 2016. difference is primarily higher than the Euro 252.5 million reported at September 30 carried out in the first nine months of 2016 Recurring 35.1 million of primarily due to higher re-branding in the same period positive, ambitious projects. , 500 higher than Euro 252.5 at September 30million), at 31st, 2015, largely out first months Recurring free cash flow of recurring free cash flow higher investments (before branding of the Amplifon sheet Company's financial structure . Net equity 2016, an the 500.2 million posted at December 31 higher Euro due to acquisitions in the last 12 months explained by seasonality and carried the nine ree cash was positive for Euro flow investments (before Amplifon network and IT infrastructure, versus the same of 2015. equity amounted to Euro 5 .2 million explained seasonality positive generated disposals amounted to Euro 5 .2 posted at December 31 the reported due to made (Euro 76.8 million), by and carried in nine of 2016. Net debt/EBITDA ratio was 1. was positive for Euro 30 in the first nine months of 2015 disposals) of Euro 35.6 million, balance remained the amounted Euro 528.1 million at September million st, 2015. than 252.5 September 30 acquisitions 12 months and higher than seasonality dividends Net debt/EBITDA ratio was 1. 0.6 million, in the first nine months of 2015 28.1 at 2015. Net financial th, 2015 higher the Euro payment million, down slightly in nine of Euro related the 2015, payment, in 1.42x 2015. related to Euro

Outlook Outlook

The organic growth and solid contribution of external growth. In sales growth and new openings, and the benefits derived from marketing and communication investments. expected to accelerate further in recently growth and to confident about its ability to execute its strategic Company expects the positive trend in sales and profitability to continue thanks to organic sales new the and expected recently launch growth and confident its ability launched Miracle substantially profitability Miracle-Ear TV campaign maintain expects and continue growth In profitability to persist openings, benefits derived and accelerate further Americas Ear campaign. Lastly, in current profitability levels. to execute its strategic derived from communication thanks to the new marketing initiatives Lastly, Asia levels.about its execute its plan and a Asia–Pacific achieve the previously announced targets. Company expects positive in sales profitability continue thanks Europe the Company expect thanks to network expansion, and the marketing investments.thanks to the new Pacific the Company current levels. The Company, therefore, remains both via acquisitions openings, benefits thanks to initiatives, the Company expects stable organic The Company, therefore, remains chieve targets. continuous expects the strong via acquisitions Growth is , including the expects organic and

Assignment of Assignment New Performance S Stock tock Grant rant Plan Beneficiaries eneficiaries

The Board of Directors resolved to assign, based on the recommendations of the Remuneration and Appointments amended, the calls for the assignment of Committee and pursuant to Art. 84 fifth award cycle of the performance stock grant plan (for the period 201 330,000 shares with the assignment date October 2 Directors resolved to on Remuneration and pursuant Art. bis, par. 5 of Consob Regulation n. 11971/1999, as cycle the 201 Directors par. Consob chieve the previously announced targets.resolved to assign, based the recommendations the and , par. Regulation n. 11971/1999, as of performance grant the period shares with the 26 th Board on of Remuneration and 5 of as th, 2016. 2016-2018) which )

The information reg prepared in accordance with the indications provided in Table n. 1, Form 7 of Annex 3A of Regulation n. 11971/1999 which will be made available in accordance with the law published on the company's website The assign, the Appointmentsamended, calls The prepared 1, Annex 3A 11971/1999 in lawpublished company's website*****regarding the beneficiaries and the respective rights assigned can arding Board of of Committee and pursuant to cycle performance grant plan (for the shares the assignment date the and the assigned provided n. of will made accordance with within the Information Document arding can prepared in accordance indications in Table Form of 11971/1999 be made Document respective rights can accordance with in Regulation n. will be with law at the corporate headquarters and Document. beneficiaries the respective assigned be found in the table the Table Annex of Regulation n. at the corporate headquarters and table the headquarters and

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The Company announces that the Interim Financial Report as at September 30th, 2016 available website (www.amplifon.com/corporate) and ( The announces at 30th, available to the public from October 28 website ). that Report public 28th, 2016 the Report 2016 , 2016 at the Company's registered office, website (www.amplifon.com/corporate) on the authorized storage system NIS Company's on the to Financial as September at registered office, the authorized storage system f presented today 15:00 (CET) call. participate one the 02 805 11 (Italy). Company that as 30th, the on the Company's on NIS will be made on the Company's NIS-Storage

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The results for the first 15:00 (CET) during a conference call. To participate in the conference call dial one of the following numbers: +44 121 281 8003 (UK), +1 718 705 8794 (USA) or +39 slides the Investors section (Presentations) of our website: www.amplifon.com/corporate. For those who are unable to attend the live conference call, a recording will be available immediately after the call until 24:00 (CET) of 8797 (USA) or +39 02 72 495 (Italy), access code: 9 The for 15:00 (CET) during participate the of following numbers: 121 705 +39 slides will be made available prior to the beginning of the conference call, beginning at 14 the of our website: www.amplifon.com/corporate. who are unable to conference recording call 24:00 8797 72 495 rsuant analyzed and Top schedules segment been revised in exposleaders and costs the Company's general the positive profitability improved will available October 28 nine months th , 2016, by months of 2016 will be presented to the financial community today at To the or will For those call 2016, dialling the following numbers: +44 121 281 8005 (UK), +1 718 705 02 72 bis ager charged with preparing in release corresponds to account and entries. on in the reports the Executive and relating information order to the the functions to thanks to external persist thanks to network expansion, both f 2016 will to financial today at a conference +44 8003 (UK), 718 be prior to of 14 the Investors website: attend live call, will immediately after dialling following numbers: +44 121 281 8005 +1 718 705 (USA) or code: 900#. and of central bodies, Europe 02 805 88 11 (Italy). prior 8005 the documentary expose separately data by direct competence of be made the conference call, section (Presentations) of to a recording be available immediately after In 154 of "Uniform Act" financial reports, Ugo that the information reports, books of account and accounting entries. on corresponding the Executive Officer Company's Management, the e separately data by direct competence of of the costs of Company's central functions trend in the Company expect 2016 will be financial at a To in conference call of following 02 88 A few to beginning beginning at are unable be available until dialling 705 presentation 14:00 CET, in Storage entation :00

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In compliance with paragraph 2 of Article 154 bis of the "Uniform Financial Services Act" (Legislative Decree 58/1998), the Man declares that the accounting information reported in the present press release corresponds to the underlying documentary reports, books of account and accounting entries. In with of Article Services (LegislativeDecree the declares present to underlying accounting Manager charged with preparing the Company's financial reports, Ugo Giorcelli, 2 154 Services the Company's financial reports, accounting in underlying documentary reports, "Operating based a change Chief Officer the to segment information been to expos compliance paragraph 2 of of "Uniform Act" ager with Giorcelli, that accounting information the

***** *****

Pursuant to IFRS 8 analyzed by the Chief Executive Officer and the Company's Top Management, the schedules relating to segment information have been revised in order to expos leaders of the Regions and the costs of the Company's central functions (corporate bodies, general rsuant – "Operating Segments", based on a corresponding change in the reports periodically in periodically by Management, to e of of Regions general e

management, business development, procurement, treasury, legal affairs, human resources, IT systems, global marketi financial statements relative to the first management, development, global financial human IT systems, ng and qualify operating IFRS 8. The consequently, ments are based on the Company's

***** *****

This press release contains forward current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the fut differ materially from those expressed in such statements as a result of a variety of factors, including: continued volatility and further deterioration of capital and finan macro and regulations (both in Italy and abroad), and many other factors, most of which are outside of the Company's control. This current about are to risks to and depend may not or in fut differ in statements continued volatility and finanmacro-economic conditions, economic growth and other changes in business conditions, changes in laws and (both in Italy many most Company's Francesca Tel francesca.rambaudi@amplifon.commarketing and internal audit) which do not qualify as operating segments under IFRS 8. The future, and, as such, undue reliance should not be placed on them. Actual results may economic growth and changes in 50 across France, the UK, ng ure, management, procurement, resources, and internal which as segments The nine months of contains forward-looking statements. These state current and, by relate events that may ure, and, such, undue not placed from expressed result variety of including: volatility and of capital and economic changes changes and and factors, Egypt, Israel), Brazil) India). than care the isservice and achieve hearing More information about available at: development, treasury, legal affairs, systems, audit) which not qualify operating 8. nine months of 2015 have been, consequently, restated. looking statements. These state expectations future by subject inherentor not ure, as reliance should not be Actual results may as of and further conditions, other in (both abroad), and other of expertise, care. network 3,Amplifon active in 22 EMEA (Italy, France, the Netherlands, Belgium, Luxembourg, Hungary, and Israel), New Zealand With care delivering quality order to the hearing experience worldwide. More about the Group affairs, restated. looking future global the to the the human resources, internal do segments 2015 have been, restated. statements are based on the Company's and projections about events and, to inherent and circumstances and, as reliance should be placed on those expressed such as of continued deterioration financial markets, changes in general economic growth and other business conditions, changes laws in Italy and other factors, of which are of events their nature, and uncertainties. to occur undue Actual may materially in statements of including: cial markets, changes in general conditions, economic laws are of the based on Company's general

About bout Amplifon

Amplifon, listed on the STAR segment of the Italian Stock Exchange, is the global leader in hearing solutions and services fo retail expertise, customization and consumer care. Through a network of approximately 3, centers and 1,8 Ireland, Spain, Portugal, Switzerland, Belgium, Luxembourg, Hungary, Egypt, Turkey, Poland and Israel), Americas (U.S.A Canada and Brazil) and APAC (Australia, New Zealand and India). With more than 5,500 hearing care professionals, the Group is committed to delivering the highest quality of service and care, in order to achieve the best hearing experience for customer worldwide. More information about the Group available at: www.amplifon.com/corporate. Amplifon, listed of the Stock Exchange, and services retail Through of 3, centers 1,850 affiliates, Amplifon is active in 22 countries across EMEA (Italy, France, the Netherlands, Germany, the UK, Ireland, Turkey, Americas Canada and and APAC India). than committed highest service in worldwide. information Group available listed on segment the Italian and a of Amplifon Germany, the UK, is the global leader fo of leader hearing solutions expertise, consumer care. approximately 3,800 50 Netherlands, Germany, Ireland, Spain, Americas (U.S.ACanada (Australia, Zealand and more 5,500 the is to the quality of care, in order the STAR Exchange, is the services fo800 points of sal is in 22 countries (Italy, Spain, Portugal, Egypt, Turkey, (U.S.A more hearing professionals, Group highest and care, for customer points sale, 3,600 service for 0 (U.S.A., customers

Investor Relations Investor Amplifon S.p.A.

Amplifon S.p.A. Francesca Rambaudi Tel +39 02 5747 2261 francesca.rambaudi@amplifon.com Media Relations: Edelman Italia Claudia Galeotti Tel claudia.galeotti@edelman.com Media Relations: Edelman Italia Galeotti +39 63116 273 claudia.galeotti@edelman.com

BY GEOGRAPHIC GEOGRAPHIC AREA – FIRST NINE MONTHS MONTHS 2016 2016

(€ thousands)	First Nine Months 2016	%	First Nine First Nine Months 2015 2015	%	Change	Change %	Exchange diff.	Change % in local currency	Organic growth %
Total EMEA	526,507	65.5%	477,706 477,706	65.1%	48,801	10.2%	(4,712)	11.2%	7.4%
Total Americas	157,007	19.5%	145,047 145,047	19.8%	11,960	8.2%	(724)	8.7%	7.4%
Total APAC	119,767	14.9%	110,826 110,826	15.1%	8,941	8.1%	(3,349)	11.1%	10.2%
Corporate and intercompany elimination	659	0.1% 0.1%	169 169	0.0%	490	289.9%	-	-
Total	803,940	100.0%	733,748 733,748	100.0%	70,192	9.6%	(8,785)	10.8%	8.0%

	NET REVENUES	BY	GEOGRAPHIC GEOGRAPHIC	AREA	– FIRST	NINE	MONTHS MONTHS	2016 2016
(€ thousands) € thousands)	First Nine Months 2016	%	First Nine First Nine Months 2015 2015	%	Change	Change %	Exchange diff.	Change % in local currency	Organic growth %
Total Total EMEA	526,507	65.5%	477,706 477,706	65.1%	48,801	10.2%	(4,712)	11.2%	7.4%
Total Total Americas	157,007	19.5%	145,047 145,047	19.8%	11,960	8.2%	(724)	8.7%	7.4%
Total Total APAC	119,767	14.9%	110,826 110,826	15.1%	8,941	8.1%	(3,349)	11.1%	10.2%
Corporate Corporate and intercompany intercompany elimination elimination	659	0.1% 0.1%	169 169	0.0%	490	289.9%	-	-
Total	803,940	100.0%	733,748 733,748	100.0%	70,192	9.6%	(8,785)	10.8%	8.0%
		NET	REVENUES BY	GEOGRAPHIC	AREA AREA	– Q3 2016
(€ thousands) € thousands)	Q3 2016	%	Q3 2015 2015	%	Change	Change %	Exchange diff.	Change % in local currency	Organic growth %
Total Total EMEA	160,27 160,278	61.7%	147,071 147,071	63.0%	13,207	9.0%	(2,109)	10.4%	6.1%
Total Total Americas	55,53 55,536	21.4%	49,074 49,074	21.0%	6,462	13.2%	(212)	13.6%	11.6%
Total Total APAC	43,69 43,690	16.8%	37,260 37,260	16.0%	6,430	17.3%	2,370	10.9%	10.8%
Corporate Corporate and intercompany intercompany elimination elimination	225	0.1% 0.1%	64 64	0.0%	161	251.6%	-	-
Total	259,729	100.0%	233,469 233,469	100.0%	26,260	11.2%	(49)	11.2%	8.1%

STATEMENT STATEMENT – FIRST NINE MONTHS MONTHS 2016 2016

		INCOME	STATEMENT STATEMENT	FIRST –	NINE	MONTHS MONTHS 2016 2016
(€ thousands) €		First Nine Months 2016 First Nine Months 2016 2016				First Nine Months 2015 First Nine Months 2015
	Recurring	Non recurring	Total	% on % on recurring	Recurring	Non recurring	Total	% on recurring	% change on recurring
Revenues Revenues from sales and services	803,940	-	803,940	100.0%	733,748	-	733,748	100.0%	9.6%
Operating Operating costs	(681,037)	-	(681,037)	-84.7% 84.7%	(626,892)	(6,792)	(633,684)	-85.4%	8.6%
Other costs and Other costs and revenues	(1,276)	(2,502)	(3,778)	-0.2% 0.2%	1,435	2,005	3,440	0.2%	-188.9% 188.9%
Gross Gross operating profit (EBITDA) profit (EBITDA)	121,627	(2,502)	119,125	15.1%	108,291	(4,787)	103,504	14.8%	12.3%
Depreciation Depreciation and write write-downs of non-current assets current	(27,212)	-	(27,212)	-3.4% 3.4%	(26,800)	-	(26,800)	-3.7%	1.5%
Operating result before Operating result before the amortisation amortisation and impairment of customer lists, trademarks, non customer lists, trademarks, non non competition competition agreements and goodwill goodwill arising from business combinations (EBITA) combinations (EBITA)	94,415	(2,502)	91,913	11.7%	81,491	(4,787)	76,704	11.1%	15.9%
Amortization Amortization and impairment of trademarks, customer lists, lease trademarks, customer lists, lease rights rights and non non-competition competition agreements agreements and goodwill	(11,373)	-	(11,373)	-1.4% 1.4%	(11,203)	-	(11,203)	-1.5%	1.5%
Operating Operating profit (EBIT)	83,042	(2,502)	80,540	10.3%	70,288	(4,787)	65,501	9.6%	18.1%
Income, Income, expenses, valuation and and adjustments adjustments of financial assets	278	-	278	0.0%	204	1,267	1,471	0.0%	36.3%
Net financial expenses	(13,986)	-	(13,986)	-1.7% 1.7%	(15,682)	(2,842)	(18,524)	-2.1%	-10.8%
Exchange Exchange differences and non hedge hedge accounting instruments	(182)	-	(182)	0.0%	(1,144)	-	(1,144)	-0.2%	-84.1%
Profit Profit (loss) before tax	69,152	(2,502)	66,650	8.6%	53,666	(6,362)	47,304	7.3%	28.9%
Current Current tax	(30,456)	786	(29,670)	-3.8% 3.8%	(26,280)	748	(25,532)	-3.6%	15.9%
Deferred Deferred tax	2,458	-	2,458	0.3%	1,753	1,634	3,387	0.2%	40.2%
Net Net profit (loss)	41,154	(1,716)	39,438	5.1%	29,139	(3,980)	25,159	4.0%	41.2%
Profit Profit (loss) of minority interests	101	-	101	0.0%	(164)	-	(164)	0.0%	-161.6% 161.6%
Net Net profit (loss) attributable to the the Group	41,053	(1,716)	39,337	5.1%	29,303	(3,980)	25,323	4.0%	40.1%

INCOME INCOME STATEMENT – Q3 2016 2016

(€ thousands) €		Q3 2016			Q3 2015 Q3 2015
	Recurring	Non recurring	Total	% on % on recurring	Recurring	Non recurring	Total	% on recurring	% change on recurring
Revenues Revenues from sales and services	259,729	-	259,729	100.0%	233,469	-	233,469	100.0%	11.2%
Operating Operating costs	(225,328)	-	(225,328)	-86.8% 86.8%	(204,232)	-	(204,232)	-87.5%	10.3%
Other costs and Other costs and revenues	(764)	-	(764)	-0.3% 0.3%	464	2,005	2,469	0.2%	-264.7% 264.7%
Gross Gross operating profit (EBITDA) profit (EBITDA)	33,637	-	33,637	13.0%	29,701	2,005	31,706	12.7%	13.3%
Depreciation Depreciation and write write-downs of non-current assets current	(9,064)	-	(9,064)	-3.5% 3.5%	(8,813)	-	(8,813)	-3.8%	2.8%
Operating result before Operating result before the amortisation amortisation and impairment of customer lists, trademarks, non customer lists, trademarks, non non competition competition agreements and goodwill goodwill arising from business combinations (EBITA) combinations (EBITA)	24,573	-	24,573	9.5%	20,888	2,005	22,893	8.9%	17.6%
Amortization Amortization and impairment of trademarks, customer lists, lease trademarks, customer lists, lease rights rights and non non-competition competition agreements agreements and goodwill	(3,733)	-	(3,733)	-1.4% 1.4%	(3,655)	-	(3,655)	-1.6%	2.1%
Operating Operating profit (EBIT)	20,840	-	20,840	8.0%	17,233	2,005	19,238	7.4%	20.9%
Income, Income, expenses, valuation and and adjustments adjustments of financial assets	88	-	88	0.0%	43	(59)	(16)	0.0%	104.7%
Net financial expenses	(4,654)	-	(4,654)	-1.8% 1.8%	(4,802)	1,425	(3,377)	-2.1%	-3.1%
Exchange Exchange differences and non hedge hedge accounting instruments	9	-	9	0.0%	(971)	-	(971)	-0.4%	-100.9% 100.9%
Profit Profit (loss) before tax	16,283	-	16,283	6.3%	11,503	3,371	14,874	4.9%	41.6%
Current Current tax	(8,879)	-	(8,879)	-3.4% 3.4%	(8,344)	(1,504)	(9,848)	-3.6%	6.4%
Deferred Deferred tax	2,302	-	2,302	0.9%	1,575	132	1,707	0.7%	46.2%
Net Net profit (loss)	9,706	-	9,706	3.7%	4,734	1,999	6,733	2.0%	105.0%
Profit Profit (loss) of minority interests	(3)	-	(3)	0.0%	(41)	-	(41)	0.0%	-92.7%
Net Net profit (loss) attributable to the the Group	9,709	-	9,709	3.7%	4,775	1,999	6,774	2.0%	103.3%

SEGMENT SEGMENT INFORMATION

(€ thousands) €		First nine	First nine months 2016			First nine months 2015
		Americas	Asia Pacific	Corporate Corporate (*)	Total	EMEA	Americas	Asia Pacific	Corporate	Total
Net Revenues Revenues	526,507	157,007	119,767	659	803,940	477,706	145,047	110,826	169	733,748
EBITDA EBITDA	74,613	28,541	36,487	(20,516) (20,516)	119,125	58,128	31,192	34,696	(20,512)	103,504
% % on sales	14.2%	18.2%	30.5%	-2.6% 2.6%	14.8%	12.2%	21.5%	31.3%	-2.8%	14.1%
Recurring Recurring EBITDA	74,613	28,541	36,487	(18,014) (18,014)	121,627	58,655	28,659	34,696	(13,719)	108,291
% % on sales	14.2%	18.2%	30.5%	-2.2% 2.2%	15.1%	12.3%	19.8%	31.3%	-1.9%	14.8%
EBIT	50,622	25,279	28,240	(23,601) (23,601)	80,540	34,367	27,766	26,361	(22,993)	65,501
% % on sales	9.6%	16.1%	23.6%	-2.9% 2.9%	10.0%	7.2%	19.1%	23.8%	-3.1%	8.9%

(€ thousands) €		First nine	First nine months 2016						First nine months 2015 First nine months 2015
	EMEA	Americas	Asia Pacific	Corporate Corporate (*)	Total	EMEA	Americas	Asia Pacific	Corporate Corporate (*)	Total
Net Revenues Revenues	526,507	157,007	119,767	659	803,940	477,706	145,047	110,826	169	733,748
EBITDA EBITDA	74,613	28,541	36,487	(20,516) (20,516)	119,125	58,128	31,192	34,696	(20,512)	103,504
% % on sales	14.2%	18.2%	30.5%	-2.6% 2.6%	14.8%	12.2%	21.5%	31.3%	-2.8%	14.1%
Recurring Recurring EBITDA	74,613	28,541	36,487	(18,014) (18,014)	121,627	58,655	28,659	34,696	(13,719)	108,291
% % on sales	14.2%	18.2%	30.5%	-2.2% 2.2%	15.1%	12.3%	19.8%	31.3%	-1.9%	14.8%
EBIT	50,622	25,279	28,240	(23,601) (23,601)	80,540	34,367	27,766	26,361	(22,993)	65,501
% % on sales	9.6%	16.1%	23.6%	-2.9% 2.9%	10.0%	7.2%	19.1%	23.8%	-3.1%	8.9%
() Please note that the schedules relating to segment information have been revised in order to expose separately data by di () Please note that the Regions Regions Regions and the costs of the Company's central functions (previously reported costs of costs accordingly. accordingly.	Company's central						in the EMEA region). Figures for the first nine months of 2015 have been restated Figures for for the the first nine
(€ thousands) €			Q3 Q3 2016					Q3 2015
	EMEA	Americas	Asia Pacific	Corporate Corporate (*)	Total	EMEA	Americas	Asia Pacific Asia Pacific	Corporate Corporate (*)	Total
Net Revenues Net Reven	160,278	55,536	43,690 43,69	22 225	259,729	147,071	49,074	37,260	64	233,469
EBITDA EBITDA	16,822	9,575	13,295	(6,055 55)	33,637	12,385	12,270	11,588	(4,537)	31,706
% % on sales	10.5%	17.2%	30.4%	-2.3% 2.3%	13.0%	8.4%	25.0%	31.1%	-1.9%	13.6%
Recurring Recurring EBITDA	16,822	9,575	13,295	(6,055 55)	33,637	12,913	9,737	11,588	(4,537)	29,701
% % on sales	10.5%	17.2%	30.4%	-2.3% 2.3%	13.0%	8.8%	19.8%	31.1%	-1.9%	12.7%
EBIT	8,971	8,479	10,573 10,57	(7,183 83)	20,840	4,393	11,228	9,025	(5,408)	19,238

NON

NON NON RECURRING	ITEMS
	First nine	First nine First nine
(€ thousands) €	months 2016	months 2015 months 2015	Q3 2016	Q3 2015
Advisory Advisory fees and expenses related to an acquisition expenses related process which was not process was not completed completed	(2,502)	- -	-	-
Expenses Expenses linked to the transition in the Group's leadership to the	-	(6,792)	-	-
Restructuring Restructuring costs incurred in the Netherlands	-	(528)	-	(528)
Income Income generated in the United States as a result of early generated in in the as a result of termination of termination of commercial commercial partnership	-	2,533 2,533	-	2,533
Impact Impact of the non non-recurring items on EBITDA recurring	(2,502)	(4,787) (4,787)	-	2,005
Impact Impact of the non non-recurring items on EBIT recurring	(2,502)	(4,787) (4,787)	-	2,005
Make whole Make whole payment made following advance repayment of the repayment of the 2006-2016 2016 private private placement	-	(4,271)	-	(4)
Income Income generated in the United States by eliminating the discounting of Income generated generated in in the by eliminating the discounting eliminating the receivables receivables entirely repaid by a partner following early termination of the entirely repaid a partner early termination of the commercial commercial partnership	-	1,429 1,429	-	1,429
Income recognized Income recognized in New New Zealand following the acquisition of 100% of Dilworth following the the acquisition acquisition of 100% of Hearing Ltd Hearing Hearing Ltd (already 40% held) pursuant to IFRS 3R relating to the accounting of 40% held) IFRS 3R relating to 3R relating step up acquisitions step up acquisitions	-	1,267 1,267	-	(59)
Impact Impact of the non non-recurring items pre recurring pre -tax	(2,502)	(6,362) (6,362)	-	3,371
Impact Impact of the above items on the tax burden of the period above items on the the period	786	2,382 2,382	-	(1,372)
Impact Impact of the non non-recurring items on total net result recurring	(1,716)	(3,980) (3,980)	-	1,999

BALANCE BALANCE SHEET SHEET

(€ thousands) €		30/09/2016		31/12/2015 31/12/2015	Change
Goodwill Goodwill		627,971		572,150 572,150	55,821
Customer Customer lists, non compete agreements, trademarks and location rights lists, non compete agreements, rights		109,177		98,115 98,115	11,062
Software charges, licenses, Software charges, licenses, other int.ass., wip and advances wip and advances		45,645		43,298 43,298	2,347
Tangible Tangible assets		109,050		102,675 102,675	6,375
Fixed Fixed financial assets assets		42,076		42,326 42,326	(250)
Other non-current financial assets Other non current		4,790		4,236 4,236	554
Total fixed assets Total fixed assets		938,709		862,800 862,800	75,909
Inventories Inventories		34,582		28,956 28,956	5,626
Trade receivables Trade receivables		113,894		111,727 111,727	2,167
Other Other receivables		40,453		34,068 34,068	6,385
Current assets Current assets		188,929		174,751 174,751	14,178
Total assets Total assets		1,127,638		1,037,551 1,037,551	90,087
Trade payables Trade payables		(105,342)		(113,343) (113,343)	8,001
Other Other payables		(128,390)		(131,432) (131,432)	3,042
Provisions Provisions for risks (current portion)		(1,417)		(1,378) (1,378)	(39)
Short Short term liabilities		(235,149)		(246,153) (246,153)	11,004
Working capital Working capital		(46,220)		(71,402) (71,402)	25,182
Derivative instruments Derivative instruments		(8,207)		(6,988) (6,988)	(1,219)
Deferred Deferred tax assets		43,472		40,743 40,743	2,729
Deferred Deferred tax liabilities and tax payables		(60,653)		(55,695) (55,695)	(4,958)
Provisions Provisions for risks (non current portion)		(52,271)		(48,407) (48,407)	(3,864)
Employee Employee benefits (non current portion) (non current		(18,887)		(15,572) (15,572)	(3,315)
Loan Loan fees		1,641		2,197 2,197	(556)
Other Other long term payables		(3,601)		(2,600) (2,600)	(1,001)
NET NET INVESTED CAPITAL		793,983		705,076 705,076	88,907
Shareholders' Shareholders' equity		527,607		499,471 499,471	28,136
Third Third parties' equity		521		694 694	(173)
Net equity Net equity		528,128		500,165 500,165	27,963
Long Long term net financial debt		379,869		382,542 382,542	(2,673)
Short Short term net financial debt debt		(114,014)		(177,631) (177,631)	63,617
Total Total net financial debt		265,855		204,911 204,911	60,944
FINANCIAL FINANCIAL DEBT AND NET EQUITY		793,983		705,076 705,076	88,907
NET FINANCIAL DEBT	MATURITY	PROFILE PROFILE
				2019 and and
(€ millions) € millions)	2016	2017	2018	beyond beyond	Total
Eurobond Eurobond			(275.0) (275.0)		(275.0)
Private placement Private placement				(100.9) (100.9)	(100.9)
Bank Bank overdraft	(15.9)	(3.5)			(19.4)
Others Others	(6.8)	(11.2) (11.2)	(1.0)	(1.8)	(20.8)
Cash Cash and cash equivalents	150.2				150.2

FINANCIAL DEBT MATURITY PROFILE PROFILE

				2019 and and
(€ millions) € millions)	2016	2017	2018	beyond beyond	Total
Eurobond Eurobond			(275.0) (275.0)		(275.0)
Private placement Private placement				(100.9) (100.9)	(100.9)
Bank Bank overdraft	(15.9)	(3.5)			(19.4)
Others Others	(6.8)	(11.2) (11.2)	(1.0)	(1.8)	(20.8)
Cash and cash equivalents	150.2				150.2
Total	127.5	(14.7) (14.7)	(276)	(102.7) (102.7)	(265.9)

CASH

CASH CASH FLOW STATEMENT STATEMENT
(€ thousands) €	First nine months 2016 First nine months 2016	First nine months 2015
EBIT	80,540	65,501
Amortization, Amortization, depreciation and write down	38,585	38,003
Provisions, Provisions, other non non-monetary items and gain/losses from disposals monetary items monetary items and gain/losses	15,449	16,872
Net financial expenses	(13,03 (13,036)	(19,1 (19,101)
Taxes paid Taxes paid	(28,877)	(25,351)
Changes in net Changes in net working capital	(30,594)	(17,220)
Cash Cash flow provided by (used in) operating provided activities activities (A)	62,067	58,704
Cash Cash flow provided by (used in) operating investing activities (B) provided by operating investing activities	(34,590)	(20,283)
Free Free Cash Flow (A) + (B)	27,477	38,421
Cash Cash flow provided by (used in) acquisitions (C) provided by acquisitions (C)	(70,400)	(34,716)
Cash Cash flow provided by (used in) provided by securities and reductions of earn earn-out (D) out	(55)	4,809
Cash Cash flow provided by (used in) investing activities provided investing activities (B+C+D)	(105,045) (105,045)	(50,190)
Cash Cash flow provided by (used in) operating activities and investing activities flow provided in) operating activities and investing investing activities	(42,978) (42,978)	8,514
Dividends Dividends paid	(9,427)	(9,356)
Treasury shares Treasury shares	(12,006)	(4,545)
Capital Capital increases, third parties contributions and dividends paid by subsidiaries to third parties third parties parties contributions by subsidiaries subsidiaries to third parties	1,371	4,133
Hedging Hedging instruments and other changes in non current assets	(5)	(988)
Net Net cash flow from the period flow from the	(63,045) (63,045)	(2,242)
Net Net financial indebtedness as of period opening date	(204,911) (204,911)	(248,417)
Effect Effect of exchange rate fluctuations on financial position of exchange position	2,101	(1,841)
Change in Change in net financial position	(63,045)	(2,242)
Net Net financial indebtedness as of period closing date	(265,855) (265,855)	(252,500)