PREFACE 4
INTERIM MANAGEMENT REPORT AS AT 30 SEPTEMBER 2023 5
HIGHLIGHTS 6
MAIN ECONOMIC AND FINANCIAL FIGURES 7
INDICATORS 8
SHAREHOLDER INFORMATION 10
RECLASSIFIED CONSOLIDATED INCOME STATEMENT 12
RECLASSIFIED CONSOLIDATED BALANCE SHEET 15
CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT 17
INCOME STATEMENT REVIEW 18
BALANCE SHEET REVIEW 35

ACQUISITION OF COMPANIES AND BUSINESSES 47
OUTLOOK 48
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 SEPTEMBER 2023 50
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 51
CONSOLIDATED INCOME STATEMENT 53
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME 54
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY 55
STATEMENT OF CONSOLIDATED CASH FLOWS 57
SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS 58
NOTES 59

performance and financial position60
Acquisitions and goodwill




Net financial position


Lease liabilities




Earnings (loss) per share
Transactions with parents and other related parties
Contingent liabilities
Financial risk management

Segment reporting
Accounting policies

	95

Consolidation scope
	Impact of the conflict in Ukraine, in Middle East, and climate change on the Group's 61 Intangible fixed assets with finite useful life64 Property, plant, and equipment65 Right-of-use assets66 Share capital67 68 Financial liabilities71 Provision for risk and charges74 75 Revenues from sales and services75 Operating costs, depreciation and impairment, financial income-expenses and taxes76 Performance Stock Grant77 Non-recurring significant events79 79 81 82 82 Translation of foreign companies' financial statements83 84 89 Subsequent events94 ANNEXES 95

Declaration of the Executive Responsible for Corporate Accounting Information pursuant to Article 154-bis of Legislative Decree 58/1998 (Consolidated finance act)....................................99

Disclaimer

This report contains forward looking statements ("Outlook") relating to future events and the Amplifon Group's operating, economic and financial results. These forecasts, by definition, contain elements of risk and uncertainty, insofar as they are linked to the occurrence of future events and developments. The actual results may be very different with respect to the original forecast due to several factors, the majority of which are out of the Group's control.

PREFACE

This Interim Financial Report as at 30 September 2023 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 2022 that includes additional information on the risks and uncertainties that could impact the Group's operating results or its financial position.

INTERIM MANAGEMENT REPORT

AS AT 30 SEPTEMBER 2023

HIGHLIGHTS

In the first nine months of 2023 Amplifon's turnover was higher compared to the comparison period thanks to above-market organic growth. Profitability, which was also higher than in the comparison period, was impacted by decreased operating leverage in EMEA due to the significant investments made to support future growth in a market that was weaker than expected.

(€ thousands)	First nine months 2023		First nine months 2022
	Recurring	Total	Recurring	Total
Economic figures:
Revenues from sales and services	1,645,065	1,645,065	1,539,695	1,539,695
Gross operating profit (loss) (EBITDA)	385,806	372,585	369,530	363,849
Operating profit (loss) (EBIT)	192,890	179,669	191,252	185,571
Profit (loss) before tax	155,996	142,775	165,680	159,999
Group net profit (loss)	112,815	103,438	119,577	115,484

The first nine months of the year closed with:

turnover of €1,645,065 thousand, an increase of 6.8% compared to the same period of the prior year (+9.7% at constant exchange rates).
a recurring gross operating margin (EBITDA) of €385,806 thousand, 4.4% higher than in the first nine months of 2022, with an EBITDA margin of 23.5% (-0.5 p.p. against the comparison period).
recurring Group net profit of €112,815 thousand, a decrease of €6,762 thousand (-5.7%) compared to first nine months of 2022, due to higher amortization, depreciation and financial expenses.

Net financial debt, without lease liabilities, amounts to €917,633 thousand compared to €829,993 thousand at year-end 2022. Free cash flow reached a positive €68,772 thousand (compared to € 142,968 thousand in the first nine months of the prior year) after higher capital expenditure (€99,833 thousand versus €75,363 thousand in the comparison period), greater absorption of working capital (the comparison period benefitted significantly from the renegotiation and extension of payment terms with suppliers) and higher tax payments. Cashouts for acquisitions, which amounted to €83,243 thousand (€52,243 thousand in the first nine months of 2022), along with the payment of €65,361 thousand in dividends (€58,237 thousand in the comparison period) and costs related to other financial assets of €3,878 thousand, bring cash flow for the reporting period to negative €83,847 thousand versus a negative €10,088 thousand in the first nine months of 2022.

MAIN ECONOMIC AND FINANCIAL FIGURES

(€ thousands)		First nine months 2023			First nine months 2022
	Recurring	Non recurring	Total	% on revenues recurring	Recurring	Non recurring	Total	% on revenues recurring	Change % on recurring
Economic figures:
Revenues from sales and services	1,645,065	-	1,645,065	100.0%	1,539,695	-	1,539,695	100.0%	6.8%
Gross operating profit (loss) (EBITDA)	385,806	(13,221)	372,585	23.5%	369,530	(5,681)	363,849	24.0%	4.4%
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	229,538	(13,221)	216,317	14.0%	226,447	(5,681)	220,766	14.7%	1.4%
Operating profit (loss) (EBIT)	192,890	(13,221)	179,669	11.7%	191,252	(5,681)	185,571	12.4%	0.9%
Profit (loss) before tax	155,996	(13,221)	142,775	9.5%	165,680	(5,681)	159,999	10.8%	-5.8%
Group net profit (loss)	112,815	(9,377)	103,438	6.9%	119,577	(4,093)	115,484	7.8%	-5.7%
(€ thousands)					09/30/2023		12/31/2022		Change
Financial figures:
Non-current assets					2,956,863	2,874,982			81,881
	Net invested capital				2,475,983	2,338,949			137,034
Group net equity					1,069,770	1,038,509			31,261
Total net equity					1,070,715		1,040,350	30,365
Net financial indebtedness					917,633		829,993	87,640 19,029
Lease liabilities					487,635			468,606
Total lease liabilities and net financial indebtedness					1,405,268	1,298,599		106,669
(€ thousands)						First nine months 2023		First nine months 2022
Free cash flow					68,772		142,968
Cash flow generated from (absorbed by) business combinations				(83,243)			(52,243)
Cash flow provided by (used in) financing activities					(69,376)		(100,813)
	Net cash flow from the period					(83,847)		(10,088)
Effect of exchange rate fluctuations on the net financial position					(3,793)		(791)
Net cash flow from the period with changes for exchange rate fluctuations					(87,640)		(10,879)

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.

INDICATORS

	09/30/2023	12/31/2022	09/30/2022
Net financial indebtedness (€ thousands)	917,633	829,993	882,065
Lease liabilities (€ thousands)	487,635	468,606	471,537
Total lease liabilities & net financial indebtedness (€ thousands)	1,405,268	1,298,599	1,353,602
Net equity (€ thousands)	1,070,715	1,040,350	1,025,438
Group Net Equity (€ thousands)	1,069,770	1,038,509	1,023,171
Net financial indebtedness/Net Equity	0.86	0.80	0.86
Net financial indebtedness/Group Net Equity	0.86	0.80	0.86
Net financial indebtedness/EBITDA	1.63	1.52	1.61
EBITDA/Net financial expenses	21.58	22.26	28.09
Earnings per share (EPS) (€)	0.46167	0.79570	0.51488
Diluted EPS (€)	0.45805	0.78699	0.50906
EPS (€) adjusted for non-recurring transactions and amortization/depreciation related to purchase price allocations to tangible and intangible assets	0.63150	0.97738	0.65024
Group Net Equity per share (€)	4.744	4.625	4.554
Period-end price (€)	28.12	27.82	26.90
Highest price in period (€)	36.27	47.04	47.43
Lowest price in period (€)	25.02	23.25	24.17
Share price/net equity per share	5.928	6.016	5.906
Market capitalization (€ millions)	6,341.36	6,247.18	6,044.30
Number of shares outstanding	225,510,487	224,557,260	224,695,315

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 calculation of outstanding shares, purchases and sales of treasury shares are considered as cancellations and issues of shares, respectively.
Earnings per share (EPS) adjusted for non-recurring transactions and amortization/depreciation related to purchase price allocations to tangible and intangible assets (€) is the profit for the period from recurring operations attributable to the parent's ordinary shareholders divided by the weighted average 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 1 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.

SHAREHOLDER INFORMATION

Main shareholders

The main Shareholders of Amplifon S.p.A. as at 30 September 2023 are:

Ampliter S.r.l. Treasury shares Market

Shareholder	No. of ordinary shares (*)	% held	% of the total share capital in voting rights
Ampliter S.r.l.	95,344,369	42.12%	59.16%
Treasury shares	878,133	0.39%	0.28%
Market	130,166,118	57.49%	40.56%
Total	226,388,620	100.0%	100.0%

(*) Number of shares related to the share capital registered with the Company registrar on 30 September 2023.

Pursuant to article 2497 of the Italian Civil Code, Amplifon S.p.A. is not subject to management and coordination either by its direct parent Ampliter S.r.l. or its indirect parent.

The shares of the parent Amplifon S.p.A. have been listed on the screen-based stock market Euronext Milano (EXM) since 27 June 2001 and since 10 September 2008 in the STAR segment. Amplifon is also included in the FTSE MIB index and in the Stoxx Europe 600 index.

The chart shows the performance of the Amplifon share price and its trading volumes from 30 December 2022, last trading day of the year, to 29 September 2023, last trading day of third quarter.

As at 30 September 2023 market capitalization was €6,341 million.

Dealings in Amplifon shares in the screen-based stock market Euronext Milano (EXM) during the period 30 December 2022 – 29 September 2023, showed:

average daily value: €19,421,668.48;
average daily volume: €633,439.21 shares;
total volume traded of 123,520,646 shares, or 54.77% of the total number of shares comprising the share capital, net of treasury shares.

RECLASSIFIED CONSOLIDATED INCOME STATEMENT

(€ thousands)	First nine months 2023			First nine months 2022
	Recurring	Non recurring (*)	Total	% on recurring	Recurring	Non recurring (*)	Total	% on recurring	Change % on recurring
Revenues from sales and services	1,645,065	-	1,645,065	100.0%	1,539,695	-	1,539,695	100.0%	6.8%
Operating costs	(1,263,004)	(13,221)	(1,276,225)	-76.7%	(1,175,114)	(5,630)	(1,180,744)	-76.3%	-7.5%
Other income and costs	3,745	-	3,745	0.2%	4,949	(51)	4,898	0.3%	-24.3%
Gross operating profit (loss) (EBITDA)	385,806	(13,221)	372,585	23.5%	369,530	(5,681)	363,849	24.0%	4.4%
Depreciation, amortization and impairment losses on non-current assets	(68,360)	-	(68,360)	-4.2%	(62,026)	-	(62,026)	-4.0%	-10.2%
Right-of-use depreciation	(87,908)	-	(87,908)	-5.3%	(81,057)	-	(81,057)	-5.3%	-8.5%
Operating result before the amortization and impairment of PPA related assets (EBITA)	229,538	(13,221)	216,317	14.0%	226,447	(5,681)	220,766	14.7%	1.4%
PPA related depreciation, amortization and impairment	(36,648)	-	(36,648)	-2.3%	(35,195)	-	(35,195)	-2.3%	-4.1%
Operating profit (loss) (EBIT)	192,890	(13,221)	179,669	11.7%	191,252	(5,681)	185,571	12.4%	0.9%
Income, expenses, valuation and adjustments of financial assets	210	-	210	0.0%	323	-	323	0.0%	-35.0%
Net financial expenses	(33,410)	-	(33,410)	-2.0%	(23,983)	-	(23,983)	-1.6%	-39.3%
Exchange differences, inflation accounting and Fair Value valuation	(3,693)	-	(3,693)	-0.2%	(1,912)	-	(1,912)	0.0%	-93.2%
Profit (loss) before tax	155,997	(13,221)	142,776	9.5%	165,680	(5,681)	159,999	10.8%	-5.8%
Tax	(43,179)	3,844	(39,335)	-2.6%	(45,877)	1,588	(44,289)	-3.0%	5.9%
Profit (loss) from continuing operations	112,818	(9,377)	103,441	6.9%	119,803	(4,093)	115,710	7.8%	-5.8%
Profit (loss) from discontinued operations	3	-	3	0.0%	226	-	226	0.0%	-98.7%
Net profit (loss)	112,815	(9,377)	103,438	6.9%	119,577	(4,093)	115,484	7.8%	-5.7%

(*) See table at page 14 for details of non-recurring transactions.

Interim Financial Report as at 30 September 2023 > Interim Management Report

(€ thousands)	Third Quarter 2023			Third Quarter 2022
	Recurring	Non recurring (*)	Total	% on recurring	Recurring	Non recurring (*)	Total	% on recurring	Change % on recurring
Revenues from sales and services	531,296	-	531,296	100.0%	502,489	-	502,489	100.0%	5.8%
Operating costs	(421,266)	(1,937)	(423,203)	-79.3%	(394,350)	(652)	(395,002)	-78.5%	-6.8%
Other income and costs	(265)	-	(265)	0.0%	1,275	-	1,275	0.3%	-120.8%
Gross operating profit (loss) (EBITDA)	109,765	(1,937)	107,828	20.7%	109,414	(652)	108,762	21.8%	0.3%
Depreciation, amortization and impairment losses on non-current assets	(23,010)	-	(23,010)	-4.3%	(21,015)	-	(21,015)	-4.2%	-9.5%
Right-of-use depreciation	(29,233)	-	(29,233)	-5.6%	(27,383)	-	(27,383)	-5.4%	-6.8%
Operating result before the amortization and impairment of PPA related assets (EBITA)	57,522	(1,937)	55,585	10.8%	61,016	(652)	60,364	12.2%	-5.7%
PPA related depreciation, amortization and impairment	(12,132)	-	(12,132)	-2.3%	(11,960)	-	(11,960)	-2.4%	-1.4%
Operating profit (loss) (EBIT)	45,390	(1,937)	43,453	8.5%	49,056	(652)	48,404	9.8%	-7.5%
Income, expenses, valuation and adjustments of financial assets	3	-	3	0.0%	56	-	56	0.0%	-94.6%
Net financial expenses (**)	(13,568)	-	(13,568)	-2.6%	(8,148)	-	(8,148)	-1.5%	-66.5%
Exchange differences, inflation accounting and Fair Value valuation (**)	389	-	389	0.2%	(180)	-	(180)	-0.1%	316.1%
Profit (loss) before tax	32,214	(1,937)	30,277	6.1%	40,784	(652)	40,132	8.2%	-21.0%
Tax	(8,708)	548	(8,160)	-1.7%	(11,061)	177	(10,884)	-2.3%	21.3%
Profit (loss) from continuing operations	23,506	(1,389)	22,117	4.4%	29,723	(475)	29,248	5.9%	-20.9%
Profit (loss) from discontinued operations	35	-	35	0.0%	44	-	44	0.0%	-20.5%
Net profit (loss)	23,471	(1,389)	22,082	4.4%	29,679	(475)	29,204	5.9%	-20.9%

(*) See table at page 14 for details of non-recurring transactions.

(**) It is specified that, on the 2022 comparative period, reclassifications between income, expenses and adjustments of financial assets have been made in order to better represent financial information.

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 nine months (€11,614 thousand) was recognized as a nonrecurring expense at 30 September 2023.

€1,433 thousand were spent on the second phase of the GAES integration in Spain.
€174 thousand were also spent on the Bay Audio integration in Australia.

	First nine months	First nine months
(€ thousand)	2023	2022
Notional cost related to share assignment	(11,614)	-
Bay Audio acquisition and integration costs	(174)	(2,655)
GAES second phase integration costs	(1,433)	(2,026)
Charitable donation costs	-	(1,000)
Impact of the non-recurring items on EBITDA	(13,221)	(5,681)
Impact of the non-recurring items on EBIT	(13,221)	(5,681)
Impact of the non-recurring items on profit before tax	(13,221)	(5,681)
Impact of the above items on the tax burden for the period	3,844	1,588
Impact of the non-recurring items on net profit	(9,377)	(4,093)

(€ thousand)	Q3 2023	Q3 2022
Notional cost related to share assignment	(1,220)	-
Bay Audio acquisition and integration costs	(174)	(308)
GAES second phase integration costs	(543)	(344)
Charitable donation costs	-	-
Impact of the non-recurring items on EBITDA	(1,937)	(652)
Impact of the non-recurring items on EBIT	(1,937)	(652)
Impact of the non-recurring items on profit before tax	(1,937)	(652)
Impact of the above items on the tax burden for the period	548	177
Impact of the non-recurring items on net profit	(1,389)	(475)

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.

(€ thousands)	09/30/2023	12/31/2022	Change
Goodwill	1,794,323	1,754,028	40,295
Customer lists, non-compete agreements, trademarks and location rights	260,392	266,125	(5,733)
Software, licenses, other int.ass., wip and advances	164,772	153,973	10,799
Property, plant, and equipment	207,697	193,415	14,282
Right of use assets	468,226	451,747	16,479
Fixed financial assets (1)	16,108	13,292	2,816
Other non-current financial assets (1)	45,345	42,402	2,943
Total fixed assets	2,956,863	2,874,982	81,881
Inventories	84,712	76,258	8,454
Trade receivables	202,889	192,066	10,823
Other receivables	108,219	77,891	30,328
Current assets (A)	395,820	346,215	49,605
Total assets	3,352,683	3,221,197	131,486
Trade payables	(324,454)	(325,583)	1,129
Other payables (2)	(346,019)	(360,461)	14,442
Provisions for risks (current portion)	(975)	(1,663)	688
Short term liabilities (B)	(671,448)	(687,707)	16,259
Net working capital (A) - (B)	(275,628)	(341,492)	65,864
Derivative instruments (3)	19,429	24,474	(5,045)
Deferred tax assets	88,193	81,780	6,413
Deferred tax liabilities	(105,897)	(106,683)	786
Provisions for risks (non-current portion)	(19,511)	(19,944)	433
Employee benefits (non-current portion)	(10,099)	(8,940)	(1,159)
Loan fees (4)	3,448	4,508	(1,060)
Other long-term payables	(180,815)	(169,736)	(11,079)
NET INVESTED CAPITAL	2,475,983	2,338,949	137,034
Shareholders' equity	1,069,770	1,038,509	31,261
Third parties' equity	945	1,841	(896)
Net equity	1,070,715	1,040,350	30,365
Long term net financial debt (4)	665,982	807,907	(141,925)
Short term net financial debt (4)	251,651	22,086	229,565
Total net financial debt	917,633	829,993	87,640
Lease liabilities	487,635	468,606	19,029
Total lease liabilities & net financial debt	1,405,268	1,298,599	106,669
NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT	2,475,983	2,338,949	137,034

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/longterm components of the items "financial payables" and "financial liabilities" for the short-term and long-term portions, respectively.

CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT

The condensed consolidated cash flow statement is a summarized version of the reclassified statement of cash flows set out in the following pages and its purpose is, starting from the EBIT, to detail the cash flows from or used in operating, investing and financing activities.

(€ thousands)	First nine months 2023	First nine months 2022
EBIT	179,669	185,571
Amortization, depreciation and write-downs	192,916	178,278
Provisions, other non-monetary items and gain/losses from disposals	28,735	15,826
Net financial expenses	(33,971)	(22,842)
Taxes paid	(60,679)	(33,048)
Changes in net working capital	(52,970)	(25,329)
Cash flow provided by (used in) operating activities before repayment of lease liabilities	253,700	298,456
Repayment of lease liabilities	(85,095)	(80,125)
Cash flow provided by (used in) operating activities (A)	168,605	218,331
Cash flow provided by (used in) operating investing activities (B)	(99,833)	(75,363)
Free Cash Flow (A) + (B)	68,772	142,968
Net cash flow provided by (used in) acquisitions (C)	(83,243)	(52,243)
Cash flow provided by (used in) investing activities (B+C+D)	(183,076)	(127,606)
Cash flow provided by (used in) operating activities and investing activities	(14,471)	90,725
Dividends	(65,361)	(58,237)
Treasury Shares	-	(42,872)
Capital increases, third parties' contributions and dividends paid by subsidiaries to third parties	(137)	(608)
Hedging instruments	(1,483)	-
Fees paid on medium/long term financing	(1,413)	-
Change in non-current assets	(982) (982)	904
Net cash flow from the period	(83,847)	(10,088)

Net financial indebtedness at the beginning of the period	(829,993)	(871,186)
Effect of exchange rate fluctuations on net financial indebtedness	(3,793)	(791)
Changes in net indebtedness	(83,847)	(10,088)
Net financial indebtedness at the end of the period	(917,633)	(882,065)

The impact of non-recurring transactions on free cash flow in the period is shown in the following table.

(€ thousands)	First nine months 2023	First nine months 2022
Free cash flow	68,772	142,968
Free cash flow generated by non-recurring transactions (see page 46 for details)	(2,740)	(4,629)
Free cash flow generated by recurring transactions	71,512	147,597

INCOME STATEMENT REVIEW

Consolidated income statement by segment and geographic area

(€ thousands)	First nine months 2023
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	1,067,232	321,984	255,511	338	1,645,065
Operating costs	(771,871)	(237,908)	(189,209)	(77,237)	(1,276,225)
Other income and costs	3,473	(127)	(10)	409	3,745
Gross operating profit (loss) (EBITDA)	298,834	83,949	66,292	(76,490)	372,585
Depreciation, amortization and impairment of non-current assets	(30,769)	(8,919)	(10,329)	(18,343)	(68,360)
Right-of-use depreciation	(58,042)	(8,675)	(19,491)	(1,700)	(87,908)
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	210,023	66,355	36,472	(96,533)	216,317
PPA related depreciation, amortization and impairment	(24,733)	(3,135)	(8,738)	(42)	(36,648)
Operating profit (loss) (EBIT)	185,290	63,220	27,734	(96,575)	179,669
Income, expenses, revaluation and adjustments of financial assets					210
Net financial expenses					(33,410)
Exchange differences, inflation accounting and Fair Value valuation					(3,693)
Profit (loss) before tax					142,776
Tax					(39,335)
Net profit (loss)					103,441
Profit (loss) of minority interests					3
Net profit (loss) attributable to the Group					103,438

(€ thousands)	First nine months 2023 - Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	1,067,232	321,984	255,511	338	1,645,065
Gross operating profit (loss) (EBITDA)	300,267	83,949	66,465	(64,875)	385,806
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	211,457	66,351	36,643	(84,917)	229,534
Operating profit (loss) (EBIT)	186,723	63,220	27,907	(84,960)	192,890
Profit (loss) before tax					155,997
Net profit (loss)					112,818
Net profit (loss) attributable to the Group					112,815

(€ thousands)	First nine months 2022
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	1,019,254	282,043	237,986	412	1,539,695
Operating costs	(734,181)	(207,547)	(178,175)	(60,841)	(1,180,744)
Other income and costs	4,774	(1,040)	205	959	4,898
Gross operating profit (loss) (EBITDA)	289,847	73,456	60,016	(59,470)	363,849
Depreciation, amortization and impairment of non-current assets	(30,017)	(8,426)	(9,590)	(13,993)	(62,026)
Right-of-use depreciation	(56,187)	(5,791)	(17,378)	(1,701)	(81,057)
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	203,643	59,239	33,048	(75,164)	220,766
PPA related depreciation, amortization and impairment	(23,286)	(2,613)	(9,235)	(61)	(35,195)
Operating profit (loss) (EBIT)	180,357	56,626	23,813	(75,225)	185,571
Income, expenses, revaluation and adjustments of financial assets					323
Net financial expenses					(23,983)
Exchange differences, inflation accounting and Fair Value valuation					(1,912)
Profit (loss) before tax					159,999
Tax					(44,289)
Net profit (loss)					115,710
Profit (loss) of minority interests					226
Net profit (loss) attributable to the Group					115,484

(€ thousands)	First nine months 2022 – Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	1,019,254	282,043	237,986	412	1,539,695
Gross operating profit (loss) (EBITDA)	291,873	73,456	62,671	(58,470)	369,530
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	205,669	59,240	35,702	(74,164)	226,447
Operating profit (loss) (EBIT)	182,383	56,626	26,468	(74,225)	191,252
Profit (loss) before tax					165,680
Net profit (loss)					119,803
Net profit (loss) attributable to the Group					119,577

(€ thousands)	Third Quarter 2023
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	331,750	109,323	90,130	93	531,296
Operating costs	(250,125)	(81,558)	(66,435)	(25,085)	(423,203)
Other income and costs	720	(920)	(25)	(40)	(265)
Gross operating profit (loss) (EBITDA)	82,345	26,845	23,670	(25,032)	107,828
Depreciation, amortization and impairment of non-current assets	(10,486)	(2,859)	(3,130)	(6,535)	(23,010)
Right-of-use depreciation	(19,368)	(3,285)	(6,012)	(568)	(29,233)
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	52,491	20,701	14,528	(32,135)	55,585
PPA related depreciation, amortization and impairment	(8,418)	(873)	(2,841)	-	(12,132)
Operating profit (loss) (EBIT)	44,073	19,828	11,687	(32,135)	43,453
Income, expenses, revaluation and adjustments of financial assets					3
Net financial expenses					(13,568)
Exchange differences, inflation accounting and Fair Value valuation					389
Profit (loss) before tax					30,277
Tax					(8,160)
Profit (loss) from continuing operations					22,117
Profit (loss) from discontinued operations					35
Net profit (loss)					22,082

(€ thousands)	Third Quarter 2023 – Only Recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	331,750	109,323	90,130	93	531,296
Gross operating profit (loss) (EBITDA)	82,889	26,845	23,843	(23,812)	109,765
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	53,035	20,701	14,701	(30,915)	57,522
Operating profit (loss) (EBIT)	44,617	19,828	11,860	(30,915)	45,390
Profit (loss) before tax					32,214
Net profit (loss)					23,506
Net profit (loss) attributable to the Group					23,471

(€ thousands)	Third Quarter 2022
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	314,605	101,254	86,493	137	502,489
Operating costs	(234,509)	(75,863)	(64,011)	(20,619)	(395,002)
Other income and costs	1,580	(481)	13	163	1,275
Gross operating profit (loss) (EBITDA)	81,676	24,910	22,495	(20,319)	108,762
Depreciation, amortization and impairment of non-current assets	(10,148)	(2,970)	(3,007)	(4,890)	(21,015)
Right-of-use depreciation	(18,640)	(2,075)	(6,098)	(570)	(27,383)
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	52,888	19,865	13,390	(25,779)	60,364
PPA related depreciation, amortization and impairment	(7,821)	(981)	(3,138)	(20)	(11,960)
Operating profit (loss) (EBIT)	45,067	18,884	10,252	(25,799)	48,404
Income, expenses, revaluation and adjustments of financial assets					56
Net financial expenses (**)					(8,148)
Exchange differences, inflation accounting and Fair Value valuation (**)					(180)
Profit (loss) before tax					40,132
Tax					(10,884)
Profit (loss) from continuing operations					29,248
Profit (loss) from discontinued operations					44
Net profit (loss)					29,204

(€ thousands)	Third Quarter 2022 – Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	314,605	101,254	86,493	137	502,489
Gross operating profit (loss) (EBITDA)	82,020	24,910	22,803	(20,319)	109,414
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	53,232	19,864	13,698	(25,778)	61,016
Operating profit (loss) (EBIT)	45,411	18,884	10,560	(25,799)	49,056
Profit (loss) before tax					40,784
Net profit (loss)					29,723
Net profit (loss) attributable to the Group					29,679

Revenues from sales and services

(€ thousands)	First nine months 2023	First nine months 2022	Change	Change %

Revenues from sales and services	1,645,065	1,539,695	105,370	6.8%

(€ thousands)	Third quarter 2023	Third quarter 2022	Change	Change %

Revenues from sales and services	531,295	502,489	28,806	5.7%

Consolidated revenues from sales and services amounted to €1,645,065 thousand in the first nine months of 2023, an increase of €105,370 thousand (+6.8%) with respect to the comparison period.

The increase against the first nine months of 2022 is explained for €117,623 thousand (+7.6%) by organic growth and for €32,871 thousand (+2.1%) by acquisitions. The foreign exchange effect was negative for €45,124 thousand (-2.9%).

The performance was very positive across all geographic areas: a strong performance in revenues was reported in EMEA despite a softer than expected market and one less working day than in the comparison period; AMERICAS posted the highest growth in revenues, driven by both an excellent organic growth and acquisitions; APAC also recorded an excellent performance, boosted by double-digit organic growth in all the area's markets and the recent acquisitions in China.

In the third quarter alone consolidated revenues from sales and services amounted to € 531,295 thousand, an increase of €28,806 thousand (+5.7%) compared to the third quarter of 2022 explained, for €45,213 thousand (+9.0%), by positive organic growth and, for 11,921 thousand (+2.4%) by acquisitions while the foreign exchange effect was negative for €28,328 thousand (- 5.7%).

(€ thousands)	First nine months 2023	% on Total	First nine months 2022	% on Total	Change	Change %	Exchange diff.	Change % in local currency
EMEA	1,067,232	64.9%	1,019,254	66.2%	47,978	4.7%	(2,003)	4.9%
Americas	321,984	19.6%	282,043	18.3%	39,941	14.2%	(24,002)	22.7%
Asia Pacific	255,511	15.5%	237,986	15.5%	17,525	7.4%	(19,119)	15.4%
Corporate	338	0.0%	412	0.0%	(74)	-18.0%	-	-18.0%
Total	1,645,065	100.0%	1,539,695	100.0%	105,370	6.8%	(45,124)	9.7%

The breakdown of revenues from sales and services by geographic area is shown below.

Period (€ thousands)	2023	2022	Change	Change %
I quarter	359,707	340,171	19,536	5.7%
II quarter	375,775	364,478	11,297	3.1%
I Half Year	735,482	704,649	30,833	4.4%
III quarter	331,750	314,605	17,145	5.4%
First nine months	1,067,232	1,019,254	47,978	4.7%

Europe, Middle-East and Africa

Consolidated revenues from sales and services amounted to €1,067,232 thousand in the first nine months of 2023, an increase of €47,978 thousand (+4.7%) compared to the same period of the prior year, of which €40,465 thousand (+4.0%) is attributable to organic growth. Acquisitions contributed €9,516 thousand (+0.9%), while the foreign exchange effect was negative for €2,003 thousand (-0.2%).

Even though market demand was weaker than expected and there was one less working day than in the same period of 2022, organic growth still outpaced the reference market, benefitting from increased market share in key countries and the positive impact of price policies.

The contribution of acquisitions refers mainly to the bolt-on acquisitions made in France and Germany in the first nine months of 2023.

In the third quarter alone, consolidated revenues from sales and services amounted to €331,750 thousand, an increase of €17,145thousand (+5.4%) against the comparison period. This increase is attributable to organic growth for €15,690 thousand (+5.0%) and to acquisitions for €2,425 thousand (+0.8%). The foreign exchange effect was slightly negative at €970 thousand (-0.4%).

Period (€ thousands)	2023	2022	Change	Change %
I quarter	100,865	84,021	16,844	20.0%
II quarter	111,797	96,769	15,028	15.5%
I Half Year	212,662	180,790	31,872	17.6%
III quarter	109,322	101,254	8,068	8.0%
First nine months	321,984	282,043	39,941	14.2%

Americas

Consolidated revenues from sales and services amounted to €321,984 thousand in the first nine months of 2023, an increase of €39,941 thousand (+14.2%) compared to the first nine months of 2022. This excellent result is explained for €44,497 thousand (+15.8%) by organic growth fueled primarily by the outstanding performance of Miracle-Ear and Amplifon Hearing Health Care. Acquisitions contributed €19,446 thousand (+6.9%), while the foreign exchange effect was negative for €24,002 thousand (-8.5%).

In addition to the excellent performance reported in the United States, there was also significant growth in Latin America.

In the third quarter alone, consolidated revenues from sales and services amounted to €109,322 thousand, an increase of €8,068 thousand (+8.0%) against the comparison period attributable for €17,539 thousand (+17.3%) to organic growth and for €7,354 thousand (+7.3%) to acquisitions, while the foreign exchange effect was negative for €16,825 thousand (-16.6%).

Period (€ thousands)	2023	2022	Change	Change %
I quarter	79,595	71,462	8,133	11.4%
II quarter	85,786	80,031	5,755	7.2%
I Half Year	165,381	151,493	13,888	9.2%
III quarter	90,130	86,493	3,637	4.2%
First nine months	255,511	237,986	17,525	7.4%

Asia Pacific

Consolidated revenues from sales and services amounted to €255,511 thousand in the first nine months of 2023, an increase of €17,525 thousand (+7.4%) compared to the first nine months of 2022 explained primarily by organic growth, for €32,735 thousand (+13.8%), and acquisitions made in China for €3,909 thousand (+1.6%), while the foreign exchange effect was negative for €19,119 thousand (-8.0%).

In the third quarter alone consolidated revenues from sales and services amounted to €90,130 thousand, an increase of €3,637 thousand (+4.2%), attributable primarily to positive organic growth for €12,028 thousand (+13.9%) and acquisitions made in China for €2,142 thousand (+2.5%) while the foreign exchange effect was negative for €10,533 thousand (-12.2%).

Gross operating profit (EBITDA)

(€ thousands)	First nine months 2023				First nine months 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total
Gross operating profit (loss) (EBITDA)	385,806	(13,221)	372,585	369,530	(5,681)	363,849
(€ thousands)		Third Quarter 2023			Third Quarter 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total
Gross operating profit (loss) (EBITDA)	109,765	(1,937)	107,828	109,414	(652)	108,762

Gross operating profit (EBITDA) amounted to €372,585 thousand in the first nine months of 2023, an increase of €8,736 thousand (+2.4%) with respect to the comparison period. The EBITDA margin came to 22.6%, 1.0 p.p. lower than in the comparison period due to the decreased operating leverage in EMEA explained by the significant investments made to support future growth in a market that was weaker than expected.

The result for the reporting period reflects non-recurring expenses of €13,221 thousand explained:

for €11,614 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 Enrico Vita, recognized in the reporting period in accordance with IFRS 2 "Share Based Payments". For more information refer to section 14 of this report;
for €1,433 thousand, by the second phase of the GAES integration;
for €174 thousand, by the Bay Audio integration.

In the first nine months of 2022 non-recurring expenses of €5,681 thousand were also incurred. Net of these items, EBITDA would have been €16,276 thousand (+4.4%) higher than in the first nine months of 2022 with a decrease in the EBITDA margin of -0.5 p.p.

In the third quarter alone, the gross operating profit (EBITDA) amounted to €107,828 thousand, a decrease of €934 thousand (-0.9%) with respect to the comparison period. The EBITDA margin came to 20.3%, 1.3 p.p. lower than in the comparison period.

The result for the quarter reflects non-recurring expenses of €1,937 thousand explained:

for €1,220 thousand, by the notional cost of the free assignment of shares described above;
for €543 thousand, by the second phase of the GAES integration.
for €174 thousand, by the Bay Audio integration.

In the third quarter of 2022 non-recurring expenses of €652 thousand were also incurred. Net of this item, recurring EBITDA would have been €351 thousand (+0.3%) higher than in the third quarter of 2022 with a decrease in the EBITDA margin of -1.1 p.p.

(€ thousands)	First nine months 2023	EBITDA Margin	First nine months 2022	EBITDA Margin	Change	Change %
EMEA	298,834	28.0%	289,847	28.4%	8,987	3.1%
Americas	83,949	26.1%	73,456	26.0%	10,493	14.3%
Asia Pacific	66,292	25.9%	60,016	25.2%	6,276	10.5%
Corporate (*)	(76,490)	-4.6%	(59,470)	-3.9%	(17,020)	-28.6%
Total	372,585	22.6%	363,849	23.6%	8,736	2.4%

(€ thousands)	Q3 2023	EBITDA Margin	Q3 2022	EBITDA Margin	Change	Change %
EMEA	82,345	24.8%	81,676	26.0%	669	0.8%
Americas	26,845	24.6%	24,910	24.6%	1,935	7.8%
Asia Pacific	23,670	26.3%	22,495	26.0%	1,175	5.2%
Corporate (*)	(25,032)	-4.7%	(20,319)	-4.0%	(4,713)	-23.2%
Total	107,828	20.3%	108,762	21.6%	(934)	-0.9%

The breakdown of EBITDA by geographic region is shown below.

(*) Centralized costs are shown as a percentage of the Group's total sales

The table below shows the breakdown of the EBITDA by segment with reference to the recurring operations.

(€ thousands)	First nine months 2023	EBITDA Margin	First nine months 2022	EBITDA Margin	Change	Change %
EMEA	300,267	28.1%	291,873	28.6%	8,394	2.9%
Americas	83,949	26.1%	73,456	26.0%	10,493	14.3%
Asia Pacific	66,465	26.0%	62,671	26.3%	3,794	6.1%
Corporate (*)	(64,875)	-3.9%	(58,470)	-3.8%	(6,405)	-11.0%
Total	385,806	23.5%	369,530	24.0%	16,276	4.4%

(€ thousands)	Q3 2023	EBITDA Margin	Q3 2022	EBITDA Margin	Change	Change %
EMEA	82,889	25.0%	82,020	26.1%	869	1.1%
Americas	26,845	24.6%	24,910	24.6%	1,935	7.8%
Asia Pacific	23,843	26.5%	22,803	26.4%	1,040	4.6%
Corporate (*)	(23,812)	-4.5%	(20,319)	-4.0%	(3,493)	-17.2%
Total	109,765	20.7%	109,414	21.8%	351	0.3%

(*) Centralized costs are shown as a percentage of the Group's total sales

Europe, Middle-East and Africa

Gross operating profit (EBITDA) amounted to €298,834 thousand in the first nine months of 2023, an increase of €8,987 thousand (+3.1%) with respect to the comparison period. The EBITDA margin came to 28.0%, 0.4 p.p. lower than in the first nine months of 2022 explained

by the significant investments made to support future growth in a market that was weaker than expected.

The result for the reporting period reflects non-recurring expenses of €1,433 thousand attributable to the second phase of the GAES integration.

In the first nine months of 2022 non-recurring expenses of €2,026 thousand were also incurred. Net of this item, EBITDA would have been €8,394 thousand (+2.9%) higher than in the first nine months of 2022 with the EBITDA margin down -0.5 p.p.

In the third quarter alone gross operating profit (EBITDA) amounted to €82,345 thousand, an increase of €669 thousand (+0.8%) with respect to the comparison period. The EBITDA margin was -1.2 p.p. lower than in the comparison period for the same reasons described above.

The result for the reporting period reflects non-recurring expenses of €543 thousand attributable to the second phase of the GAES integration.

In the third quarter of 2022 non-recurring expenses of €344 thousand were also incurred.

Net of this item, recurring EBITDA would have been €869 thousand (+1.1%) higher than in the third quarter of 2022 with the EBITDA margin down -1.1 p.p.

Americas

Gross operating profit (EBITDA) amounted to €83,949 thousand in the first nine months of 2023, an increase of €10,493 thousand (+14.3%) with respect to the comparison period. The EBITDA margin came to 26.1 %, +0.1 p.p. higher than in the first nine months of 2022.

In the third quarter alone, the gross operating profit (EBITDA) amounted to €26,845 thousand, an increase of €1,935 thousand (+7.8%) with respect to the comparison period. The EBITDA margin came to 24.6%, in line with the comparison period.

Asia Pacific

Gross operating profit (EBITDA) amounted to €66,292 thousand in the first nine months of 2023, an increase of €6,276 thousand (+10.5%) with respect to the comparison period. The EBITDA margin came to 25.9 %, +0.7 p.p. higher than in the first nine months of 2022.

Non-recurring expenses, relating to the Bay Audio integration, of €174 thousand were incurred in the reporting period.

In the first nine months of 2022 non-recurring costs amounted to €2,655 thousand.

Net of these items, EBITDA would have been €3,794 thousand higher (+6.1%) with the EBITDA margin down -0.3 p.p.

In the third quarter alone gross operating profit (EBITDA) amounted to €23,670 thousand, an increase of €1,175 thousand (+5.2%) with respect to the comparison period.

The EBITDA margin was +0.3 p.p. higher than in the comparison period, coming in at 26.3%. Non-recurring expenses, relating to the Bay Audio integration, of €174 thousand were incurred in the reporting period.

In the third quarter of 2022 non-recurring expenses amounted to €308 thousand. Net of these items, EBITDA would have been €1,040 thousand (+4,6%) higher with the margin up +0.1 p.p.

Corporate

In the first nine months of 2023 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 €76,490 thousand, €17,020 thousand higher (- 28.6%) with respect to the same period of the prior year. The EBITDA margin came to -4.6% (0.7 p.p. higher than in the first nine months of 2022).

The result for the reporting period reflects the non-recurring expenses of €11,614 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 Enrico Vita recognized in the reporting period. For more information refer to Note 14 of this report.

In the first nine months of 2022 non-recurring expenses of €1,000 thousand were also recognized.

Net of these items, costs would have been €6,405 thousand (11.0%) higher than in the first nine months of 2022, with the margin lower by 0.1 p.p.

In the third quarter the corporate costs amounted to €25,032 thousand (-4.7% of the revenues generated by the Group's sales and services), €4,713 thousand (+23.2%) higher than in the third quarter of 2022.

The result for the third quarter reflects the non-recurring expenses of €1,220 thousand stemming from the notional cost of the assignment of shares described above.

Net of these items, costs would have been €3,493 thousand (+17.2%) higher than in the third quarter of 2022 with the margin up 0.5 p.p.

Operating profit (loss) (EBIT)

(€ thousands)		First nine months 2023		First nine months 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total

Operating profit (loss) (EBIT)	192,890	(13,221)	179,669	191,252	(5,681)	185,571

(€ thousands)	Third quarter 2023			Third quarter 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total

Operating profit (loss) (EBIT)	45,390	(1,937)	43,453	49,056	(652)	48,404

Operating profit (EBIT) amounted to €179,669 thousand in the first nine months of 2023, a decrease of €5,902 thousand (-3.2%) with respect to the comparison period.

The EBIT margin came to 10.9%, a decrease of 1.2 p.p. against the comparison period.

With respect to the gross operating profit (EBITDA), EBIT was also impacted by an increase in depreciation and amortization of €14,638 thousand as a result of investments in IT systems, the opening of new stores, as well as higher amortization for right-of-use assets.

The reporting period was impacted for €13,221 thousand by the same non-recurring expenses described in the section on EBITDA. In the first nine months of 2022 non-recurring expenses amounted to €5,681 thousand. Net of these items, EBIT would have been €1,638 thousand higher (+0.9%) than in the first nine months of 2022, with the EBIT margin down -0.7 p.p.

In the third quarter alone operating profit (EBIT) amounted to €43,453 thousand, a decrease of €4,951 thousand (-10.2%) against the comparison period. The EBIT margin was 1.4 p.p. lower than in the third quarter of 2022, coming in at 8.2%.

With respect to the gross operating profit (EBITDA), EBIT was also impacted by an increase in amortization and depreciation of €4,017 thousand.

The third quarter was impacted for €1,938 thousand by the same non-recurring expenses described in the section on EBITDA. In the third quarter of 2022 non-recurring expenses, described in the section on EBITDA, amounted to €652 thousand. Net of these items, recurring EBIT would have been €3,666 thousand (-7.5%) lower than in the third quarter of 2022 with the margin down -1.3 p.p.

(€ thousands)	First nine months 2023	EBIT Margin	First nine months 2022	EBIT Margin	Change	Change %
EMEA	185,290	17.4%	180,357	17.7%	4,933	2.7%
Americas	63,220	19.6%	56,626	20.1%	6,594	11.6%
Asia Pacific	27,734	10.9%	23,813	10.0%	3,921	16.5%
Corporate (*)	(96,575)	-5.9%	(75,225)	-4.9%	(21,350)	-28.4%
Total	179,669	10.9%	185,571	12.1%	(5,902)	-3.2%


(€ thousands)	Q3 2023	EBIT Margin	Q3 2022	EBIT Margin	Change	Change %
EMEA	44,073	13.3%	45,067	14.3%	(994)	-2.2%
Americas	19,828	18.1%	18,884	18.7%	944	5.0%
Asia Pacific	11,687	13.0%	10,252	11.9%	1,435	14.0%
Corporate (*)	(32,135)	-6.0%	(25,799)	-5.1%	(6,336)	-24.6%

The breakdown of EBIT by segment is shown below.

(*) Centralized costs are shown as a percentage of the Group's total sales.

The table below shows the breakdown of the EBIT by segment with reference to the recurring operations.

(€ thousands)	First nine months 2023	EBIT Margin	First nine months 2022	EBIT Margin	Change	Change %
EMEA	186,723	17.5%	182,383	17.9%	4,340	2.4%
Americas	63,220	19.6%	56,626	20.1%	6,594	11.6%
Asia Pacific	27,907	10.9%	26,468	11.1%	1,439	5.4%
Corporate (*)	(84,960)	-5.2%	(74,225)	-4.8%	(10,735)	-14.5%
Total	192,890	11.7%	191,252	12.4%	1,638	0.9%

(€ thousands)	Q3 2023	EBIT Margin	Q3 2022	EBIT Margin	Change	Change %
EMEA	44,617	13.4%	45,411	14.4%	(794)	-1.7%
Americas	19,828	18.1%	18,884	18.7%	944	5.0%
Asia Pacific	11,860	13.2%	10,560	12.2%	1,300	12.3%
Corporate (*)	(30,915)	-5.8%	(25,799)	-5.1%	(5,116)	-19.8%
Total	45,390	8.5%	49,056	9.8%	(3,666)	-7.5%

(*) Centralized costs are shown as a percentage of the Group's total sales.

Europe, Middle-East and Africa

Operating profit (EBIT) amounted to €185,290 thousand in the first nine months of 2023, an increase of €4,933 thousand (+2.7%) with respect to the comparison period. The EBIT margin came to 17.4%, 0.3 p.p. lower than in the comparison period.

The result was impacted for €1,433 thousand by the same non-recurring expenses described in the section on EBITDA. In the first nine months of 2022 non-recurring expenses amounted to €2,026 thousand.

Net of these items, EBIT would have been €4,340 thousand higher (+2.4%) than in the first nine months of 2022, with the EBIT margin down -0.4 p.p.

In the third quarter alone operating profit (EBIT) amounted to €44,073 thousand, a decrease of €994 thousand (-2.2%) against the comparison period with the EBIT margin 1.0 p.p. lower than in the comparison period at 13.3%.

The result for the quarter was impacted for €544 thousand by the same non-recurring expenses described in the section on EBITDA. In the third quarter of 2022 non-recurring expenses amounted to €344 thousand. Net of these items, recurring EBIT would have been €794 thousand lower (-1.7%) than in the third quarter of 2022, with a 1.0 p.p. decrease in the EBIT margin.

Americas

Operating profit (EBIT) amounted to €63,220 thousand in the first nine months of 2023, an increase of €6,594 thousand (+11.6%) with respect to the comparison period. The EBIT margin came to 19.6%, 0.5 p.p. lower than in the first nine months of 2022.

In the second quarter alone operating profit (EBIT) amounted to €19,828 thousand, an increase of €944 thousand (+5.0%) with respect to the comparison period. The EBIT margin was 0.6 p.p. lower, coming in at 18.1%.

Asia Pacific

Operating profit (EBIT) amounted to €27,734 thousand in the first nine months of 2023, an increase of €3,921 thousand (+16.5%) with respect to the comparison period. The EBIT margin came to 10.9%, 0.9 p.p. higher than in the first nine months of 2022.

The result of the period reflects non-recurring expenses of €174 thousand, relating to the second phase of the Bay Audio integration.

In the first nine months of 2022 non-recurring expenses amounted to €2,655 thousand. Net of these items EBIT would have been €1,439 thousand (+5,4%) higher and the margin would have been -0.2 p.p. lower.

In the third quarter alone operating profit (EBIT) amounted to €11,687 thousand, an increase of €1,435 thousand (+14.0%) with respect to the comparison period. The EBIT margin came to 13.0%, 1.1 p.p. higher than in the third quarter of 2022.

The result for the quarter was impacted for €174 thousand by the same non-recurring expenses described in the section on EBITDA. In the third quarter of 2022 non-recurring expenses amounted to €308 thousand. Net of these items, recurring EBIT would have been €1,300 thousand higher (+12.3%), with the EBIT margin up 1.0 p.p.

Corporate

The net Corporate costs at the EBIT level amounted to €96,575 thousand in the first nine months of 2023 (-5.9% of the revenues generated by the Group's sales and services), an increase of €21,350 thousand compared to the first nine months of 2022.

The result was impacted for €11,614 thousand by the non-recurring expenses described in the section on EBITDA. In the first nine months of 2022 non-recurring expenses amounted to €1,000 thousand.

Net of these items, the costs would have been €10,735 thousand (+14.5%) higher with the margin up 0.4 p.p.

In the third quarter alone the net Corporate costs at the EBIT level amounted to €32,135 thousand (-6.0% of the revenues generated by the Group's sales and services), an increase of €6,336 thousand (+24.6%) compared to the third quarter of 2022.

The quarter was impacted for €1,220 thousand by the same non-recurring expenses described in the section on EBITDA.

Net of this item, the costs would have been €5,116 thousand (+19.8%) higher than in the third quarter of 2022 with the margin up +0.7 p.p.

Profit before taxes

(€ thousands)	First nine months 2023			First nine months 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total

Profit before taxes	155,997	(13,221)	142,776	165,680	(5,681)	159,999

(€ thousands)	Third quarter 2023		Third quarter 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total

Profit before taxes	32,214	(1,937)	30,277	40,784	(652)	40,132

Profit before tax amounted to €142,776 thousand in the first nine months of 2023, a decrease of €17,223 thousand (-10.8%) against the comparison period, with a gross profit margin of 8.7% (-1.7 p.p. with respect to the comparison period).

The result for the first nine months of 2023 was impacted for €13,221 thousand by the same non-recurring expenses described in the section on EBITDA. In the first nine months of 2022 nonrecurring expenses of €5,681 thousand were incurred. Net of this item and, therefore, on a recurring basis, there would have been a decrease of €9,683 thousand (-5.8%) against the first nine months of 2022, with the profit margin down 1.3 p.p.

In addition to the change in EBIT described above, this result reflects an increase in net financial expenses of €11,321 thousand due mainly to: (i) the impact of higher interest rates on the utilization of short-term credit lines, on the floating rates applied to medium/long-term credit lines, on factoring and lease accounting; (ii) the exchange differences tied to currency volatility mainly in countries in North and South America; (iii) the more adverse impact of inflation accounting on the Argentinian subsidiary.

In the third quarter alone profit before tax amounted to €30,277 thousand, a decrease of €9,855 thousand (-24.6%) with respect to the comparison period, with a gross profit margin of 5.7% (- 2.3 p.p. against the comparison period).

The result recorded in the third quarter of 2023 was impacted for €1,937 thousand by the same non-recurring expenses described in the section on EBITDA. In the third quarter of 2022 nonrecurring expenses amounted to €652 thousand. Net of these items, profit before tax would have been €8,570 thousand (-21.0%) lower than in the third quarter of 2022. The gross profit margin would have been 2.0 p.p. lower, coming in at 6.1%.

Group net profit

(€ thousands)	First nine months 2023	First nine months 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total
Group net profit	112,815	(9,377)	103,438	119,577	(4,093)	115,484
(€ thousands)		Third quarter 2023			Third quarter 2022
	Recurring	Non - recurring	Total	Recurring	Non - recurring	Total
Group net profit	23,471	(1,389)	22,082	29,679	(475)	29,204

The Group's net profit came to €103,438 thousand in the first nine months of 2023, a decrease of €12,046 thousand (-10.4%) against the comparison period, with a profit margin of 6.3% (-1.2 p.p. against the comparison period).

The result for the reporting period was impacted for €9,337 thousand by the same non-recurring expenses described above, net of the tax effect. In the first nine months of 2022 non-recurring expenses amounted to €4,093 thousand. On a recurring basis, the decrease would have amounted to €6,762 thousand (-5.7%) with respect to the first nine months of 2022, with the profit margin down 0.9 p.p.

The tax rate was 27.6% in the reporting period compared to 27.7% in the first nine months of 2022.

In the third quarter alone the Group's net profit came to €22,082 thousand (4.2% of revenues from sales and services), a decrease of €7,122 thousand (-24.4%) against the comparison period with the profit margin down -1.6 p.p. Net of the non-recurring expenses, the Group's net profit would have been €6,208 thousand (-20.9%) lower, with the profit margin down -1.5 p.p.

BALANCE SHEET REVIEW

**Consolidated balance sheet by geographical area (*)**

(€ thousands)			09/30/2023
	EMEA	Americas	Asia Pacific	Eliminations	Total
Goodwill	945,325	247,211	601,787	-	1,794,323
Non-competition agreements, trademarks, customer lists and lease rights	182,946	22,564	54,882	-	260,392
Software, licenses, other intangible fixed assets with finite useful life, fixed assets in progress and advances	122,329	33,890	8,553	-	164,772
Property, plant, and equipment	144,014	26,588	37,095	-	207,697
Right-of-use assets	367,257	45,463	55,506	-	468,226
Financial fixed assets	3,938	11,972	198	-	16,108
Other non-current financial assets	41,173	2,505	1,667	-	45,345
Non-current assets	1,806,982	390,193	759,688	-	2,956,863
Inventories	68,809	6,384	9,519	-	84,712
Trade receivables	206,424	36,781	20,602	(60,918)	202,889
Other receivables	87,823	11,348	9,243	(195)	108,219
Current assets (A)	363,056	54,513	39,364	(61,113)	395,820
Operating assets	2,170,038	444,706	799,052	(61,113)	3,352,683
Trade payables	(269,587)	(68,429)	(47,356)	60,918	(324,454)
Other payables	(273,627)	(39,121)	(33,466)	195	(346,019)
Provisions for risks and charges (current portion)	(265)	(710)	-	-	(975)
Current liabilities (B)	(543,479)	(108,260)	(80,822)	61,113	(671,448)
Net working capital (A) - (B)	(180,423)	(53,747)	(41,458)	-	(275,628)
Derivative instruments	19,429	-	-	-	19,429
Deferred tax assets	65,713	11,527	10,953	-	88,193
Deferred tax liabilities	(62,396)	(26,176)	(17,325)	-	(105,897)
Provisions for risks and charges (non current portion)	(17,298)	(841)	(1,372)	-	(19,511)
Liabilities for employees' benefits (non current portion)	(9,141)	(200)	(758)	-	(10,099)
Loan fees	3,448	-	-	-	3,448
Other non-current liabilities	(163,937)	(14,477)	(2,401)	-	(180,815)
NET INVESTED CAPITAL	1,462,377	306,279	707,327	-	2,475,983
Group net equity					1,069,770
Minority interests					945
Total net equity					1,070,715
Net medium and long-term financial indebtedness					665,982
Net short-term financial indebtedness					251,651
Total net financial indebtedness					917,633
Lease liabilities	380,192	48,826	58,617		487,635
Total lease liabilities & net financial indebtedness					1,405,268
NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL INDEBTEDNESS					2,475,983

(*) 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.

(€ thousands)			12/31/2022
	EMEA	Americas	Asia Pacific	Eliminations	Total
Goodwill	921,163	213,816	619,049	-	1,754,028
Non-competition agreements, trademarks, customer lists and lease rights	185,759	22,022	58,344	-	266,125
Software, licenses, other intangible fixed assets with finite useful life, fixed assets in progress and advances	112,883	31,881	9,209	-	153,973
Property, plant, and equipment	136,721	21,006	35,688	-	193,415
Right-of-use assets	366,243	34,242	51,262	-	451,747
Financial fixed assets	3,706	9,378	208	-	13,292
Other non-current financial assets	38,589	2,322	1,491	-	42,402
Non-current assets	1,765,064	334,667	775,251	-	2,874,982
Inventories	60,417	5,781	10,060	-	76,258
Trade receivables	211,132	46,331	28,617	(94,014)	192,066
Other receivables	64,120	8,520	5,450	(199)	77,891
Current assets (A)	335,669	60,632	44,127	(94,213)	346,215
Operating assets	2,100,733	395,299	819,378	(94,213)	3,221,197
Trade payables	(310,412)	(68,611)	(40,574)	94,014	(325,583)
Other payables	(284,580)	(35,345)	(40,735)	199	(360,461)
Provisions for risks and charges (current portion)	(975)	(688)	-	-	(1,663)
Current liabilities (B)	(595,967)	(104,644)	(81,309)	94,213	(687,707)
Net working capital (A) - (B)	(260,298)	(44,012)	(37,182)	-	(341,492)
Derivative instruments	24,474	-	-	-	24,474
Deferred tax assets	60,867	10,206	10,707	-	81,780
Deferred tax liabilities	(61,419)	(26,053)	(19,211)	-	(106,683)
Provisions for risks and charges (non current portion)	(17,712)	(787)	(1,445)	-	(19,944)
Liabilities for employees' benefits (non current portion)	(8,024)	(202)	(714)	-	(8,940)
Loan fees	4,508	-	-	-	4,508
Other non-current liabilities	(151,723)	(15,718)	(2,295)	-	(169,736)
NET INVESTED CAPITAL	1,355,737	258,101	725,111	-	2,338,949
Group net equity					1,038,509
Minority interests					1,841
Total net equity					1,040,350
Net medium and long-term financial indebtedness					807,907
Net short-term financial indebtedness					22,086
Total net financial indebtedness					829,993
Lease liabilities	377,981	36,822	53,803	-	468,606
Total lease liabilities & net financial indebtedness					1,298,599
NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL INDEBTEDNESS					2,338,949

Non-current assets

Non-current assets amounted to €2,956,863 thousand at 30 September 2023, an increase of €81,881 thousand respect to the €2,874,982 thousand recorded at 31 December 2022.

The changes in the period are explained (i) for €101,660 thousand by capital expenditure; (ii) for €104,991 thousand by the recognition of right-of-use assets acquired in the period; (iii) for €92,226 thousand by acquisitions made in the reporting period; (iv) for €193,413 thousand by depreciation, amortization and impairment which includes the amortization of the above rightof-use assets; (v) for €23,583 thousand by other net decreases relating primarily to negative foreign exchange differences.

The following table shows the breakdown of non-current assets by geographical segment.

(€ thousands)		09/30/2023	12/31/2022	Change
	Goodwill	945,325	921,163	24,162
	Non-competition agreements, trademarks, customer lists and lease rights	182,946	185,759	(2,813)
	Software, licenses, other intangible fixed assets with finite useful life, fixed assets in progress and advances		112,883	9,446
EMEA	Property, plant, and equipment		136,721	7,293
	Right-of-use assets		366,243	1,014
	Financial fixed assets		3,706	232
	Other non-current financial assets		38,589	2,584
	Non-current assets	1,806,982	1,765,064	41,918
	Goodwill	247,211	213,816	33,395
	Non-competition agreements, trademarks, customer lists and lease rights	22,564	22,022	542
	Software, licenses, other intangible fixed assets with finite useful life, fixed assets in progress and advances	33,890	31,881	2,009
Americas	Property, plant, and equipment	26,588	21,006	5,582
	Right-of-use assets	45,463	34,242	11,221
	Financial fixed assets	11,972	9,378	2,594
	Other non-current financial assets	2,505	2,322	183
	Non-current assets	390,193	334,667	55,526
	Goodwill	601,787	619,049	(17,262)
	Non-competition agreements, trademarks, customer lists and lease rights	54,882	58,344	(3,462)
	Software, licenses, other intangible fixed assets with finite useful life, fixed assets in progress and advances	8,553	9,209	(656)
Asia Pacific	Property, plant, and equipment	37,095	35,688	1,407
	Right-of-use assets	55,506	51,262	4,244
	Financial fixed assets	198	208	(10)
	Other non-current financial assets	1,667	1,491	176
	Non-current assets	759,688	775,251	(15,563)
Total		2,956,863	2,874,982	81,881

Europe, Middle-East and Africa

Non-current assets amounted to €1,806,982 thousand at 30 September 2023, an increase of €41,918 thousand with respect to the €1,765,064 thousand recorded at 31 December 2022. This increase is explained:

for €59,788 thousand, by right-of-use assets acquired in the year as a result of the renewal of existing leases and network expansion.
for €38,631 thousand, by acquisitions made in the reporting period;
for €33,040 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 €42,437 thousand, by investments in intangible assets, relating to new front office solutions for the hyper-personalization of customer experiences and continuous implementation and standardization of the Group ERP cloud system for back-office functions (Human Resources, Procurement, Administration and Finance);
for €134,126 thousand, by amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above;
for €2,148 thousand, by other increases.

Americas

Non-current assets amounted to €390,193 thousand at 30 September 2023, an increase of €55,526 thousand against the €334,667 thousand recorded at 31 December 2022. This increase is explained:

for €35,368 thousand, by acquisitions made in the reporting period;
for €19,411 thousand, by right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion;
for €8,427 thousand, by investments in property, plant and equipment, relating to the opening of new stores, and the renewal of existing ones;
for €7,193 thousand, by investments in intangible assets relating mainly to the development of IT systems, primarily at US subsidiaries;
for €20,729 thousand, by amortization and depreciation, including the amortization of the right-of-use assets referred to above;
for €8,292 thousand, by foreign exchange losses;
for €14,148 thousand by other increases, explained primarily by revaluations tied to inflation accounting at the Argentinian subsidiary.

Asia Pacific

Non-current assets amounted to €759,688 thousand at 30 September 2023, a decrease of €15,563 thousand against the €775,251 thousand recorded at 31 December 2022.

The change is explained:

for €25,792 thousand, by an increase in right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion;

for €18,227 thousand, by acquisitions made in the reporting period;
for €8,880 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 €1,683 thousand, by investments in intangible assets relating primarily to the development of IT systems;
for €38,558 thousand, by amortization and depreciation, including the amortization of the right-of-use assets referred to above;
for €31,587 thousand, by other decreases relating to foreign exchange differences which mainly affected goodwill.

Net invested capital

Net invested capital amounted to €2,475,983 thousand at 30 September 2023, an increase of €137,034 thousand against the €2,338,949 thousand recorded at 31 December 2022.

This increase is attributable mainly to the change in non-current assets described above, as well as an increase in working capital.

The breakdown of net invested capital by geographical region is shown below.

(€ thousands)	09/30/2023	12/31/2022	Change
EMEA	1,462,377	1,355,737	106,640
Americas	306,279	258,101	48,178
Asia Pacific	707,327	725,111	(17,784)
Total	2,475,983	2,338,949	137,034

Europe, Middle-East and Africa

Net invested capital came to €1,462,377 thousand at 30 September 2023, an increase of €106,640 thousand against the €1,355,737 thousand recorded at 31 December 2022.

This increase is attributable mainly to the change in non-current assets described above, as well as an increase in working capital less the increase of other medium/long-term payables. Factoring without recourse in the period involved trade receivables with a face value of €89,446 thousand (€55,298 thousand in the same period of the prior year) and VAT credits with a face value of €19,055 thousand (€5,394 thousand in the same period of the prior year).

Americas

Net invested capital came to €306,279 thousand at 30 September 2023, an increase of €48,178 thousand against the €258,101 thousand recorded at 31 December 2022.

This increase is attributable mainly to the change in non-current assets less a decrease in working capital. Factoring without recourse in the reporting period involved trade receivables with a face value of €1,126 thousand (€1,235 thousand in the same period of the prior year).

Asia Pacific

Net invested capital came to €707,327 thousand at 30 September 2023, a decrease of €17,784 thousand against the €725,111 thousand recorded at 31 December 2022. This decrease is attributable mainly to the decrease in non-current assets, along with the drop in working capital. Factoring without recourse in the period involved trade receivables with a face value of €5,652 thousand.

Net financial indebtness

(*) 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 €917,633 thousand at 30 September 2023, an increase of €87,640 thousand compared to 31 December 2022.

In the first nine months of 2023 free cash flow was positive for €68,772 thousand (compared to €142,968 thousand in the first nine months of the prior year) due to higher capital expenditure which totaled €99,833 thousand (vs. €75,363 thousand in the comparison period).

Net cash-outs for acquisitions, which amounted to €83,243 thousand (€52,243 thousand in the first nine months of 2022), along with the payment of €65,361 thousand in dividends (€58,237 thousand in the comparison period) and costs related to other financial assets of €3,878 thousand, bring cash flow for the reporting period to a negative €83,847 thousand versus a negative €10,088 thousand in the first nine months of 2022.

At the end of January 2023, the entire Private Placement 2013-2025 was repaid in advance (€85,371 thousand at the hedging rate). This was the company's most expensive source of financing. The subsequent elimination of the relative financial covenants allowed the Group to further increase its financial flexibility, as well as reduce the total cost of funding.

process (out of a total of €350 million in financing approved by the EIB). The loan, unutilized at the end of September 2023, will contribute to the further innovation of Amplifon's products and services, providing an excellent and highly personalized hearing care experience thanks to the use of a full ecosystem built around the customer, in which the quantity and quality of the Company's services, as well as digital technologies, play a key role.

At 30 September 2023, the Group had cash and cash equivalents, as well as other liquid investments, of €197,770 thousand compared to total net financial indebtedness of €1,115 million, net of lease liabilities.

Long-term debt amounts to €665,982 thousand, €6,817 thousand of which refers to the longterm portion of deferred payments for acquisitions. The decrease in the period of €141,925 thousand is attributable mainly to the reclassification of portions of long-term bank debt, expiring in the next 12 months, from long-to short-term.

Short-term debt amounts to €449,421 thousand, an increase of €197,713 thousand compared to 31 December 2022. The short-term portion refers primarily to the short-term portion of longterm bank debt (€197,487 thousand), the hot money accounts used to support treasury activities and other short-term credit lines (€235,281 thousand), the interest payable on the Eurobond (€2,470 thousand) and on other bank loans (€3,944 thousand) and, lastly, the best estimate of the deferred payments for acquisitions (€9,357 thousand).

The chart below shows the debt maturities compared to:

the €198 million in cash and cash equivalents which includes quotas in low-risk money market funds managed by top-tier financial institutions for €50 million;
the unutilized portions of irrevocable credit lines which amount to €555 million;
the unutilized €300 million EIB loan.

The other uncommitted credit lines amount to €42 million.

Interest payable on financial indebtedness amounted to €20,579 thousand at 30 September 2023, €14,101 thousand at 30 September 2022.

Interest payable on leases recognized in accordance with IFRS 16 amounted to €10,846 thousand versus €8,332 thousand at 30 September 2022.

Interest receivable on bank deposits are €1,543 thousand at 30 September 2023 versus €179 thousand at 30 September 2022.

The reasons for the changes in net indebtedness are described in the next section on the statement of cash flows.

CASH FLOW STATEMENT

The reclassified statement of cash flows shows the change in net financial indebtedness from the beginning to the end of the period. Pursuant to IAS 7, the consolidated financial statements include a statement of cash flows that shows the change in cash and cash equivalents from the beginning to the end of the period.

	First nine months	First nine months
(€ thousands) OPERATING ACTIVITIES	2023	2022
Net profit (loss) attributable to the Group	103,438	115,484
Minority interests	3	226
Amortization, depreciation and impairment:
- Intangible fixed assets	65,345	59,096
- Tangible fixed assets	39,663	38,124
- Right-of-use assets	87,908	81,057
Total amortization, depreciation and impairment	192,916	178,277
Provisions, other non-monetary items and gain/losses from disposals	28,735	15,826
Group's share of the result of associated companies	(207)	(322)
Financial income and charges	37,102	25,894
Current and deferred income taxes	39,333	44,289
Change in assets and liabilities:
- Utilization of provisions	(7,356)	(7,726)
- (Increase) decrease in inventories	(8,505)	(8,900)
- Decrease (increase) in trade receivables	(14,469)	(3,949)
- Increase (decrease) in trade payables	3,011	36,111
- Changes in other receivables and other payables	(25,651)	(40,865)
Total change in assets and liabilities	(52,970)	(25,329)
Dividends received	3	342
Net interest charges	(33,974)	(23,184)
Taxes paid	(60,679)	(33,047)
Cash flow provided by (used in) operating activities before repayment of lease liabilities	253,700	298,456
Repayment of lease liabilities	(85,095)	(80,125)
Cash flow generated from (absorbed) by operating activities	168,605	218,331
INVESTING ACTIVITIES:
Purchase of intangible fixed assets	(51,313)	(37,172)
Purchase of tangible fixed assets	(50,347)	(43,093)
Consideration from sale of tangible fixed assets and businesses	1,827	4,902
Cash flow generated from (absorbed) by investing activities	(99,833)	(75,363)
Cash flow generated from operating and investing activities (Free cash flow)	68,772	142,968
Business combinations (*)	(83,243)	(52,243)
Net cash flow generated from acquisitions	(83,243)	(52,243)
Cash flow generated from (absorbed) by investing activities	(183,076)	(127,606)

Interim Financial Report as at 30 September 2023 > Interim Management Report

(€ thousands)	First nine months 2023	First nine months 2022
FINANCING ACTIVITIES
Hedging instruments	(1,483)	-
Other non-current assets	(982)	904
Treasury Shares	-	(42,872)
Commissions on medium/long terms financing	(1,413)	-
Dividends	(65,361)	(58,237)
Capital increases, third parties' contributions and dividends paid by subsidiaries to third parties	(137)	(608)
Cash flow generated from (absorbed) by financing activities	(69,376)	(100,813)
Changes in net financial indebtedness	(83,847)	(10,088)

Net financial indebtedness at the beginning of the period	(829,993)	(871,186)
Effect of exchange rate fluctuations on net financial indebtedness	(3,793)	(791)
Changes in net indebtedness	(83,847)	(10,088)
Net financial indebtedness at the end of the period	(917,633)	(882,065)

(*) The item refers to the net cash flows used in the acquisition of businesses and equity investments.

The change in net financial indebtedness of €83,847 thousand is attributable to:

(i) Investing activities:
- capital expenditure on property, plant and equipment and intangible assets of €101,660 thousand relating primarily to new front-office solutions, ongoing implementation and standardization of the Group cloud-based ERP system, and network expansion.
- acquisitions amounting to €83,243 thousand, including the impact of the acquired companies' debt and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years;
- net proceeds from the disposal of assets of €1,827 thousand.
(ii) Operating activities:
- interest payable on financial indebtedness, interest on leases in accordance to IFRS16 application, and other net financial expenses of €33,974 thousand;
- payment of taxes amounting to €60,679 thousand;
- payment of principle on lease obligations of €85,095 thousand;
- cash flow generated by operations of €348,353 thousand.
(iii) financing activities
- dividends distribution of €65,361 thousand;
- payment of hedging instruments for €1,483 thousand;
- payment of commissions on medium/long term financing of €1,413 thousand;
- change of other non current-assets for €982 thousand.
(iv) Net debt was also impacted by exchange losses of €3,793 thousand.

Non-recurring transactions had a negative impact on cash flow of €2,740 thousand in the first nine months of 2023 attributable for €1,800 thousand to the costs incurred for GAES Integration, and €940 thousand to the acquisition related cost for Bay Audio acquisition and integration.

ACQUISITION OF COMPANIES AND BUSINESSES

During the first nine months of 2023, the Group continued with external growth operations and acquired 219 points of sale for a total investment of €83,243 thousand, including the debt consolidated and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years.

More in detail, in the first nine months of 2023:

93 points of sale were acquired in China;
47 points of sale were acquired in Canada;
29 points of sale were acquired in Germany;
22 points of sale were acquired in France;
16 points of sale were acquired in the United States;
6 points of sale were acquired in Poland;
3 points of sale were acquired in Spain;
2 points of sale were acquired in Mexico;
1 point of sale was acquired in Italy.

OUTLOOK

In the first nine months of 2023, the Group continued its strong growth path despite a softerthan-expected demand in the European market and a global macroeconomic and geopolitical environment characterized by increasing uncertainty and volatility.

Looking into the fourth quarter of 2023, Amplifon expects:

the US market to continue to grow healthily, while the European market to remain subdued and below initial expectations;
to continue to grow organically significantly faster than the market;
bolt-on acquisitions to contribute at least 2% to the Group's consolidated revenue growth;
a strong start to the fourth quarter with double-digit revenue growth at constant exchange rates in October.

In light of the above, and with an estimation of exchange rate for 2023 of EUR/USD at 1.08, EUR/AUD at 1.62 and EUR/ARS at 371, the Group expects for 2023:

consolidated revenues of around €2,290 millions supported by continued market share gains, positive pricing actions and bolt-on acquisitions.
Recurring EBITDA of around €550 million explained by the strong investments made in specialized field personnel (hearing care specialists) and marketing to support the Group's future growth path.

In the medium-term, the Group remains extremely positive on its prospects for sustainable growth in sales and profitability, thanks to the secular fundamentals of the hearing care market and its even stronger competitive positioning.

These expectations for 2023 do not include any further slowdowns in global economic activity due to, among others, the well-known inflation related issues and the ever-increasing uncertainties related to the current geopolitical situation. Toward this end, lastly, it should be noted that Amplifon operates around 25 points of sale in Israel which generate sales equal to approximately 1% of its consolidated revenues.

Milan, October 30th, 2023

CEO

Enrico Vita

Interim Financial Report as at 30 September 2023 > Interim Management Report

CONDENSED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS AS AT 30 SEPTEMBER 2023

**CONSOLIDATED STATEMENT OF FINANCIAL POSITION(*)**

(€ thousands)	09/30/2023	12/31/2022	Change
ASSETS
Non-current assets
Goodwill	Note 3			40,295
Intangible fixed assets with finite useful life	Note 4	425,164	420,098	5,066
Property, plant, and equipment	Note 5		193,415	14,282
Right-of-use assets	Note 6		451,747	16,479
Equity-accounted investments	2,293	2,093	200
Hedging instruments	19,429	25,850	(6,421)
Deferred tax assets	88,193	81,780	6,413
Contract costs	12,583	11,131	1,452
Other assets	46,577	42,470	4,107
Total non-current assets	3,064,485	2,982,612	81,873
Current assets
Inventories	84,712	76,258	8,454
Trade receivables	202,889	192,067	10,822
Contract costs	4,900	5,262	(362)
Other receivables	103,300	72,610	30,690
Hedging instruments	218	17,016	(16,798)
Other financial assets	51,021	49,986	1,035
Cash and cash equivalents	146,767	179,654	(32,887)
Total current assets	593,807	592,853	954
Total assets	3,658,292	3,575,465	82,827

(€ thousands)		09/30/2023	12/31/2022	Change
LIABILITIES
Net Equity
Share capital	Note 7	4,528	4,528	-
Share premium reserve	202,712	202,712	-
Treasury shares		(23,925)	(49,895)	25,970
Other reserves		(30,801)	11,230	(42,031)
Retained earnings		813,818	691,409	122,409
Profit (loss) for the period		103,438	178,525	(75,087)
Group net equity	1,069,770	1,038,509	31,261
Minority interests		945	1,841	(896)
Total net equity		1,070,715	1,040,350	30,365
Non-current liabilities
Medium/long-term financial liabilities	Note 9	656,904	798,940	(142,036)
Lease liabilities	Note 11		368,890	10,636
Provisions for risks and charges	Note 10	19,511	19,944	(433)
Liabilities for employees' benefits		10,099	8,940	1,159
Deferred tax liabilities		105,897	106,683	(786)
Payables for business acquisitions		6,817	5,705	1,112
Contract liabilities		159,386	153,613	5,773
Other long-term liabilities		21,428	16,123	5,305
Total non-current liabilities		1,359,568	1,478,838	(119,270)
Current liabilities
Trade payables		324,454	325,583	(1,129)
Payables for business acquisitions	9,357	24,601	(15,244)
Contract liabilities		112,637	114,857	(2,220)
Tax liabilities	69,048	74,785	(5,737)
Other payables	161,057	167,796	(6,739)
Hedging instruments		384	-	384
Provisions for risks and charges	Note 10	975	1,663	(688)
Liabilities for employees' benefits		3,368	3,616	(248)
Short-term financial liabilities	Note 9		243,661	194,959
Lease liabilities	Note 11	108,109	99,715	8,394
Total current liabilities		1,228,009	1,056,277	171,732
Total liabilities		3,658,292	3,575,465	82,827

(*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 17 for more details.

**CONSOLIDATED INCOME STATEMENT(*)**

(€ thousands)		First nine months 2023		First nine months 2022
		Recurring	Non recurring	Total	Recurring	Non recurring	Total	Change
Revenues from sales and services	Note 12	1,645,065	-	1,645,065	1,539,695	-	1,539,695	105,370
Operating costs		Note 13 (1,263,004)	(13,221)	(1,276,225)	(1,175,114)	(5,630)	(1,180,744)	(95,481)
Other income and costs		3,745	-	3,745	4,949	(51)	4,898	(1,153)
Gross operating profit (EBITDA)		385,806	(13,221)	372,585	369,530	(5,681)	363,849	8,736
Amortization, depreciation and impairment
Amortization of intangible fixed assets with finite useful life	Note 4	(65,319)	-	(65,319)	(59,122)	-	(59,122)	(6,197)
Depreciation of property, plant, and equipment	Note 5	(39,486)	-	(39,486)	(37,894)	-	(37,894)	(1,592)
Right-of-use depreciation	Note 6	(87,908)	-	(87,908)	(81,057)	-	(81,057)	(6,851)
Impairment losses and reversals of non-current assets		(203)	-	(203)	(205)	-	(205)	2
		(192,916)	-	(192,916)	(178,278)	-	(178,278)	(14,638)
Operating result		192,890	(13,221)	179,669	191,252	(5,681)	185,571	(5,902)
Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and gains/losses on disposals of equity investments		210	-	210	323	-	323	(113)
Interest income and expenses		(19,036)	-	(19,036)	(13,923)	-	(13,923)	(5,113)
Interest expenses on lease liabilities		(10,846)	-	(10,846)	(8,332)	-	(8,332)	(2,514)
Other financial income and expenses		(3,528)	-	(3,528)	(1,728)	-	(1,728)	(1,800)
Exchange gains and losses, and inflation accounting		(4,438)	-	(4,438)	651	-	651	(5,089)
Gain (loss) on assets accounted at fair value		745	-	745	(2,563)	-	(2,563)	3,308
		(36,893)	-	(36,893)	(25,572)	-	(25,572)	(11,321)
Profit (loss) before tax		155,997	(13,221)	142,776	165,680	(5,681)	159,999	(17,223)
Current and deferred income tax
Current tax		(50,062)	3,844	(46,218)	(59,179)	1,588	(57,591)	11,373
Deferred tax		6,883	-	6,883	13,302	-	13,302	(6,419)
		(43,179)	3,844	(39,335)	(45,877)	1,588	(44,289)	4,954
Net profit (loss)		112,818	(9,377)	103,441	119,803	(4,093)	115,710	(12,269)
Net profit (loss) attributable to Minority interests		3	-	3	226	-	226	(223)
Net profit (loss) attributable to the Group		112,815	(9,377)	103,438	119,577	(4,093)	115,484	(12,046)

(*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 17 for more details.

	Earnings per share (€ per share)		First nine months	First nine months
	Note 16		2023	2022
Earnings per share - -	Basic Diluted		0.46166 0.49957	0.51488 0.50906

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

(€ thousands)	First nine months 2023	First nine months 2022
Net income (loss) for the period	103,441	115,710
Other comprehensive income (loss) that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	(943)	9,704
Tax effect on items of other comprehensive income (expense) that will not be reclassified subsequently to profit or loss	201	(1,821)
Total other comprehensive income (loss) that will not be reclassified subsequently to profit or loss after the tax effect (A)	(742)	7,883
Other comprehensive income (loss) that will be reclassified subsequently to profit or loss
Gains/(losses) on cash flow hedging instruments	(6,694)	23,498
Gains/(losses) from Foreign Currency Basis Spread on hedging instruments	516	1,031
Gains/(losses) on exchange differences from translation of financial statements of foreign entities	(41,167)	36,980
Tax effect on components of other comprehensive income that will be reclassified subsequently to profit or loss	1,482	(5,887)
Total other comprehensive income (loss) that will be reclassified subsequently to profit or loss after the tax effect (B)	(45,863)	55,622
Total other comprehensive income (loss) (A)+(B)	(46,605)	63,505
Comprehensive income (loss) for the period	56,836	179,215
Attributable to the Group	57,116	178,815
Attributable to Minority interests	(280)	400

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

(€ thousands)	Share capital	Share premium reserve	Legal reserve	Other reserves	Treasury shares reserve	Stock option and stock grant reserve
Balance at 1 January 2022	4,528	202,712	934	3,636	(28,841)	38,566
Allocation of profit (loss) for 2021
Share capital increase
Treasury shares					(42,872)
Dividend distribution
Notional cost of stock grants						12,819
Other changes					25,140	(12,711)
- Stock Grant					25,140	(12,711)
- Inflation accounting
- Other changes
Total comprehensive income (loss) for the period
- Hedge accounting
- Actuarial gains (losses)
- Translation differences
- Profit for the first nine months of 2022
Balance at 30 September 2022	4,528	202,712	934	3,636	(46,573)	38,674

(€ thousands)	Share capital	Share premium reserve	Legal reserve	Other reserves	Treasury shares reserve	Stock option and stock grant reserve
Balance at 1 January 2023	4,528	202,712	934	3,636	(49,895)	35,182
Allocation of profit (loss) for 2022
Share capital increase
Treasury shares
Dividend distribution
Notional cost of stock grants						22,758
Other changes					25,970	(18,467)
- Stock Grant					25,970	(18,467)
- Inflation accounting
- Other changes
Total comprehensive income (loss) for the period
- Hedge accounting
- Actuarial gains (losses)
- Translation differences
- Profit for the first nine months of 2023
Balance at 30 September 2023	4,528	202,712	934	3,636	(23,925)	39,473

16,825	(209)	873	688,853	(2,566)	115,484	1,023,171	2,267	1,025,438
					115,484	115,484	226	115,710
				36,806		36,806	174	36,980
		7,883				7,883		7,883
17,858	784					18,642		18,642
17,858	784	7,883		36,806	115,484	178,815	400	179,215
			(538)			(538)	(236)	(774)
			6,573			6,573		6,573
			(10,996)			1,433		1,433
			(4,961)			7,468	(236)	7,232
						12,819		12,819
			(58,237)			(58,237)		(58,237)
						(42,872)		(42,872)
						-		-
			157,785		(157,785)	-		-
(1,033)	(993)	(7,010)	594,266	(39,372)	157,785	925,178	2,103	927,281
Cash flow hedge reserve	Foreign Curr. Basis Spread Reserve	Actuarial gains and losses	Retained earnings	Translation differences	Profit (loss) for the period	Total Shareholders' equity	Minority interests	Total net equity

Total net equity	Minority interests	Total Shareholders' equity	Profit (loss) for the period	Translation differences	Retained earnings	Actuarial gains and losses	Foreign Curr. Basis Spread Reserve	Cash flow hedge reserve
1,040,350	1,841	1,038,509	178,525	(50,825)	691,409	2,782	(392)	19,913
-		-	(178,525)		178,525
-		-
-		-
(65,361)		(65,361)			(65,361)
22,758		22,758
16,132	(616)	16,748			9,245
3,365		3,365			(4,138)
14,429		14,429			14,429
(1,662)	(616)	(1,046)			(1,046)
56,836	(280)	57,116	103,438	(40,884)		(742)	392	(5,088)
(4,696)		(4,696)					392	(5,088)
(742)		(742)				(742)
(41,167)	(283)	(40,884)		(40,884)
103,441	3	103,438	103,438
1,070,715	945	1,069,770	103,438	(91,709)	813,818	2,040	-	14,825

STATEMENT OF CONSOLIDATED CASH FLOWS

	First nine months	First nine months
(€ thousands)	2023	2022
OPERATING ACTIVITIES
Net profit (loss)	103,441	115,710
Amortization, depreciation and impairment:
- intangible fixed assets	65,345	59,096
- tangible fixed assets	39,663	38,124
- right-of-use assets	87,908	81,057
Provisions, other non-monetary items and gain/losses from disposals	28,735	15,826
Group's share of the result of associated companies	(207)	(322)
Financial income and expenses	37,102	25,894
Current and deferred taxes	39,333	44,289
Cash flow from operating activities before change in working capital	401,320	379,674
Utilization of provisions	(7,356)	(7,726)
(Increase) decrease in inventories	(8,505)	(8,900)
Decrease (increase) in trade receivables	(14,469)	(3,949)
Increase (decrease) in trade payables	3,011	36,111
Changes in other receivables and other payables	(25,651)	(40,865)
Total change in assets and liabilities	(52,970)	(25,329)
Dividends received	3	342
Interest received (paid)	(34,120)	(23,893)
Taxes paid	(60,679)	(33,047)
Cash flow generated from (absorbed by) operating activities (A)	253,554	297,747
INVESTING ACTIVITIES:
Purchase of intangible fixed assets	(51,313)	(37,172)
Purchase of tangible fixed assets	(50,347)	(43,093)
Consideration from sale of non-current assets	1,827	4,902
Cash flow generated from (absorbed by) operating investing activities (B)	(99,833)	(75,363)
Purchase of subsidiaries and business units net of cash and cash equivalents acquired or
dismissed	(83,243)	(52,243)
Increase (decrease) in payables for business acquisitions	(13,993)	(7,719)
Cash flow generated from (absorbed by) acquisition activities (C)	(97,236)	(59,962)
Cash flow generated from (absorbed by) investing activities (B+C)	(197,069)	(135,325)
FINANCING ACTIVITIES:
Increase (decrease) in financial payables	67,953	(85,315)
(Increase) decrease in financial receivables	(829)	(57)
Principal portion of lease payments	(85,095)	(80,125)
Hedging instruments	(1,483)	-
Fees paid on long-term borrowings	(1,413)	-
Other non-current assets and liabilities	(982)	904
Dividend distributed	(65,361)	(58,237)
Treasury shares purchase	-	(42,872)
Capital increases and minority shareholders' contributions and dividends paid to third parties by subsidiaries	(137)	(608)
Cash flow generated from (absorbed by) financing activities (D)	(87,347)	(266,310)
Net increase in cash and cash equivalents (A+B+C+D)	(30,862)	(103,888)

	First nine months	First nine months
(€ thousands)	2023	2022
Cash and cash equivalents at beginning of period	179,654	268,546
Effect of exchange rate fluctuations on cash & cash equivalents	(2,025)	3,798
Flows of cash and cash equivalents	(30,862)	(103,888)
Cash and cash equivalents at end of period	146,767	168,456

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 17.

SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS

The fair values of the assets and liabilities acquired are summarized in the table below:

(€ thousands)	First nine months 2023	First nine months 2022
- Goodwill	63,481	41,867
- Customer lists	22,897	17,025
- Trademarks, licenses, and non-competition agreements	1	80
- Other intangible fixed assets with finite useful life	502	212
- Property, plant, and equipment	4,979	1,637
- Right-of-use assets	938	1,822
- Current assets	6,189	4,372
- Provision for risk and charges	3	-
- Current liabilities	(8,348)	(5,928)
- Other non-current assets and liabilities	(6,172)	(6,849)
- Third parties equity	1,645	-
Total investments	86,115	54,238
Net financial debt acquired	976	641
Total business combinations	87,091	54,879
(Increase) decrease in payables through business acquisition	13,993	7,719
Purchase (sale) of other investments and securities	-	-
Cash flow absorbed by (generated from) acquisitions	101,084	62,598
(Cash and cash equivalents acquired)	(3,848)	(2,636)
Net cash flow absorbed by (generated from) acquisitions	97,236	59,962

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. (42.12% as at 30 September 2023), held for a 100% by Amplifin S.p.A., which is 99.4% owned by Susan Carol Holland and the remaining 0.6% in treasury shares.

The condensed interim consolidated financial report as at 30 September 2023 was prepared in accordance with International Accounting Standards, as well as the implementation regulations set out in Article 9 of Legislative Decree no. 38 of 28 February 2005. These standards include the IAS and IFRS issued by the International Accounting Standard Board, as well as the SIC and IFRIC interpretations issued by the International Financial Reporting Interpretations Committee, which were endorsed in accordance with the procedure set out in Article 6 of Regulation (EC) no. 1606 of 19 July 2002 by 30 September 2023. The International Accounting Standards endorsed after that date and before the preparation of this report were adopted in the preparation of the condensed interim consolidated financial report only if early adoption is allowed by the Endorsing Regulation and the standard itself and if the Group had elected to do so.

The condensed interim consolidated financial statements at 30 September 2023 do 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 2022.

The publication of the condensed interim consolidated financial statements of the Amplifon Group at 30 September 2023 was authorized by a resolution of the Board of Directors of 30 October 2023 which approved their publication.

According to the Consob Communication of 28 July 2006, it is specified that during the nine months of 2023 the Group did not carry out atypical and/or unusual transactions, as defined by the Communication itself.

2. Impact of the conflict in Ukraine, in Middle East, and climate change on the Group's performance and financial position

The Group has no business activities, direct or indirect, in either Ukraine, Russia or Belarus and limited activities in surrounding countries. The military conflict in Ukraine, therefore, has not yet had any direct impact on the Group's performance or business. That said, in 2022 the Russian-Ukrainian conflict caused a strong increase in inflation worldwide causing the central banks to tighten monetary policies and raise interest rates which stabilized somewhat in the first nine months of 2023 but, however, continue to be very high. The economic recovery that characterized the first postpandemic phase slowed rapidly and the short/medium-term prospects remain uncertain and hard to assess with the possibility that an economic recession may materialize or persist. 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.

While the hearing aid market has always proven to be resilient even in times of economic crisis, as hearing solutions and services are non-discretional products which benefit people's physical, emotional and relational health significantly, and customers are assisted by public and private insurances, as well as consumer loans, the current inflationary environment and uncertainty about the future costs of basic necessities could cause a few potential customers to postpone the purchase of a hearing aid temporarily, particularly if needed in the medium-term. Although the Group monitors the changing macroeconomic environment and the relative impact on the business constantly, it cannot be excluded that the situation described above could cause the demand for the Group's services and products to slow even though, as mentioned before, Amplifon operates in a market segment which in the past, albeit in situations that are not directly comparable, has proven to be less sensitive than others to changes in the general economic cycle.

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. Moreover, the Group's activities and business model do not entail significant exposure to the environmental risks connected specifically to climate change.

3. Acquisitions and goodwill

In the first nine months of 2023 the Group continued with its strategy to balance external and internal growth and acquired 219 points of sale, comprising 93 in Asia Pacific, 61 in EMEA and 65 in Americas.

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 €83,243 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.

(€ thousands)	Net carry at 12/31/2022	Business combinations completed in the reporting period	Disposals	Impairment	Other net changes	Net carry at 09/30/2023
EMEA	921,163	24,087	-	-	75	945,325
AMERICAS	213,816	31,573	-	-	1,822	247,211
APAC	619,049	7,821	-	-	(25,083)	601,787
Total	1,754,028	63,481	-	-	(23,186)	1,794,323

"Acquisitions in the period" 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 2022.

The groups of Cash Generating Units recognized 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 and Colombia);
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 2022 the management's valuations were made taking into consideration the value in use. No loss in value was identified as a result of the impairment tests conducted at 31 December 2022.

The Group tests for impairment of goodwill once a year and in the event of any impairment indicators.

In the first nine months of 2023 the Group's turnover was higher than both the comparison period and the budget. EBITDA was also higher than in the prior year and basically in line with the budget. In terms of regions, at constant exchange rates EBITDA was below budget by 3.8% and 4.3% in EMEA and APAC, respectively, but higher in Americas and for Corporate.

The impairment tests conducted at 31 December 2022 showed there was enough headroom to absorb the under-budget cash flow, much ampler than any gap recorded in the single regions in the first nine months.

The Equity risk premium was, furthermore, down one percentage point (Source: Damodaran) and the long-term risk-free interest rate was slightly higher than the rate used in the impairment tests at 31 December 2022. The WACC discount rate at 30 September was lower than the rate used at 31 December 2022 for all the groups of Cash Generating Units which had headroom to absorb any future increases in rates of between 2% and 16%.

The future growth rates measured at 30 September 2023 were largely in line with the rate used for the purposes of the impairment tests at 31 December 2022, which indicates significant headroom for any decreases in the rate of between -2% and -27%.

Based on the above:

revenues higher with respect to 2022 and the budget, EBITDA slightly under budget in the regions (mainly EMEA and APAC) fully absorbed by the ample headroom found based on the impairment test at 31 December 2022;
the discount rate (WACC) redetermined at 30 September 2023 is lower than the rate used in the impairment tests conducted at 31 December 2022;
the growth rates redetermined at 30 September 2023 are slightly higher than the ones used in the impairments tests conducted at 31 December 2022.

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 2022.

The budget/business plan 2024-2026 is in the process of being finalized and, as usual, will be the basis for the 2023 annual impairment tests.

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.

(€ thousands)	EMEA	Americas	APAC	Total
Cost of acquisitions of the period	33,299	34,589	18,227	86,115
Assets and liabilities acquired – Book value
Current assets	848	1,492	-	2,340
Current liabilities	(2,447)	(2,149)	-	(4,596)
Net working capital	(1,599)	(657)	-	(2,256)
Other intangible, tangible and right-of-use assets	2,655	1,176	2,590	6,421
Provision for risk and charges	3	-	-	3
Other non-current assets and liabilities	(846)	43	-	(803)
Non-current assets and liabilities	1,812	1,219	2,590	5,621
Net invested capital	213	562	2,590	3,365
Third Parties Equity	-	1,645	-	1,645
Net financial position	2,736	136	-	2,872
NET EQUITY ACQUIRED - BOOK VALUE	2,949	2,343	2,590	7,882
DIFFERENCE TO BE ALLOCATED	30,350	32,246	15,637	78,233
ALLOCATIONS
Customer lists	11,837	3,243	7,816	22,896
Contract liabilities - Short and long-term	(3,911)	(2,570)	-	(6,481)
Deferred tax assets	286	-	-	286
Deferred tax liabilities	(1,949)	-	-	(1,949)
Total allocations	6,263	673	7,816	14,752
GOODWILL	24,087	31,573	7,821	63,481

4. Intangible fixed assets with finite useful life

The following table shows the changes in intangible assets.

(€ thousands)	Historical cost at 12/31/2022	Accumulated amortization and write downs at 12/31/2022	Net book value at 12/31/2022	Historical cost at 09/30/2023	Accumulated amortization and write downs at 09/30/2023	Net book value at 09/30/2023
Software	235,964	(143,068)	92,896	248,928	(162,440)	86,488
Licenses	23,024	(18,450)	4,574	27,489	(18,422)	9,067
Non-competition agreements	14,328	(7,749)	6,579	19,313	(13,884)	5,429
Customer lists	464,959	(258,275)	206,684	467,697	(267,371)	200,326
Trademarks and concessions	96,559	(44,113)	52,446	94,847	(48,761)	46,086
Other	22,665	(11,292)	11,373	13,945	(4,066)	9,879
Fixed assets in progress and advances	45,546	-	45,546	67,889	-	67,889
Total	903,045	(482,947)	420,098	940,108	(514,944)	425,164

(€ thousands)	Net book value at 12/31/2022	Investments	Disposals	Amortization	Business combinations	Impairment	Other net changes	Net book value at 09/30/2023
Software	92,896	10,466	(546)	(24,482)	3	-	8,151	86,488
Licenses	4,574	7,063	(593)	(3,715)	1	-	1,737	9,067
Non-competition agreements	6,579	1,322	-	(3,066)	-	-	594	5,429
Customer lists	206,684	19	-	(27,735)	22,897	-	(1,539)	200,326
Trademarks and concessions	52,446	-	-	(5,761)	4	(11)	(592)	46,086
Other	11,373	338	(268)	(560)	-	(15)	(989)	9,879
Fixed assets in progress and advances	45,546	32,105	763	-	495	-	(11,020)	67,889
Total	420,098	51,313	(644)	(65,319)	23,400	(26)	(3,658)	425,164

The investments in intangible fixed assets with finite useful life recorded in the reporting period (€51,313 thousand) are attributable to the new front office solutions and the AI technologies used to provide customers with a highly personalized experience, and the ongoing implementation and standardization of the Group cloud-based ERP system for back-office functions (HR, Procurement, Administration and Finance).

The change in "Business combinations" comprises:

For €11,846 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;
For €3,738 thousand, the temporary allocation of the price paid for acquisitions made in Americas;
For €7,816 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.

5. Property, plant, and equipment

The following table shows the changes in property, plant, and equipment.

(€ thousands)	Historical cost at 12/31/2022	Accumulated amortization and write downs at 12/31/2022	Net book value at 12/31/2022	Historical cost at 09/30/2023	Accumulated amortization and write downs at 09/30/2023	Net book value at 09/30/2023
Land	154	-	154	154	-	154
Buildings, constructions and leasehold improvements	298,991	(199,083)	99,908	313,814	(213,262)	100,552
Plant and machines	52,414	(42,077)	10,337	42,321	(33,825)	8,496
Industrial and commercial equipment	76,808	(58,052)	18,756	89,972	(70,604)	19,368
Motor vehicles	1,047	(776)	271	1,110	(813)	297
Computers and office machinery	80,108	(62,712)	17,396	84,413	(66,585)	17,828
Furniture and fittings	124,155	(91,452)	32,703	129,974	(97,128)	32,846
Other tangible fixed assets	5,673	(3,031)	2,642	6,949	(4,503)	2,446
Fixed assets in progress and advances	11,248	-	11,248	25,710	-	25,710
Total	650,598	(457,183)	193,415	694,417	(486,720)	207,697

(€ thousands)	Net book value at 12/31/2022	Investments	Disposals	Amortization	Business combinations	Impairment	Other net changes	Net book value at 09/30/2023
Land	154	-	-	-	-	-	-	154
Buildings, constructions and leasehold improvements	99,908	16,700	(262)	(18,758)	125	(88)	2,927	100,552
Plant and machines	10,337	1,436	-	(2,198)	376	(75)	(1,380)	8,496
Industrial and commercial equipment	18,756	3,623	(291)	(4,802)	131	(5)	1,956	19,368
Motor vehicles	271	113	(42)	(72)	24	1	2	297
Computers and office machinery	17,396	4,144	(40)	(6,074)	1,523	-	879	17,828
Furniture and fittings	32,703	5,504	(88)	(7,083)	1,266	(13)	557	32,846
Other tangible fixed assets	2,642	118	(1)	(499)	1	-	185	2,446
Fixed assets in progress and advances	11,248	18,709	(121)	-	1,533	3	(5,662)	25,710
Total	193,415	50,347	(845)	(39,486)	4,979	(177)	(536)	207,697

The investments made in the reporting period (€50,347 thousand) refer primarily to the network expansion with the opening of new stores and renewal of existing ones, as well as to the purchase of hardware needed for the implementation of Group Information Technology projects.

The change in "business combinations" comprises:

for €1,740 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;
for €649 thousand, the temporary allocation of the price paid for acquisitions made in Americas;
for €2,590 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:

(€ thousands)		Historical cost at 12/31/2022	Accumulated amortization and write downs at 12/31/2022	Net book value at 12/31/2022	Historical cost at 09/30/2023		Accumulated amortization and write downs at 09/30/2023	Net book value at 09/30/2023
Stores and offices		777,889	(336,445)	441,444		846,541	(392,500)	454,041
Motor vehicles		24,819	(15,365)	9,454		29,675	(17,749)	11,926
Electronic machinery		1,657	(808)	849		3,619	(1,360)	2,259
Total		804,365	(352,618)	451,747	879,835		(411,609)	468,226
(€ thousands)	Net book value at 12/31/2022	Increase	Decrease	Depreciation	Business combinations	Impairment	Other net changes	Net book value at 09/30/2023
Stores and offices	441,444	95,608	(4,465)	(82,821)	938	-	3,337	454,041
Motor vehicles	9,454	6,415	209	(4,412)	-	-	260	11,926
Electronic machinery	849	2,089	-	(675)	-	-	(4)	2,259
Total	451,747	104,112	(4,256)	(87,908)	938	-	3,593	468,226

The increase in right of use assets acquired in the period (€104,112 thousand) is explained by the renewal of existing leases and the network expansion.

The change in "business combinations" comprises:

for €906 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;
for €32 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.

7. Share capital

On 30 September 2023 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 2022.

A total of 953,227 of the performance stock grant rights were exercised in the period, as a result of which the Group transferred the same number of treasury shares to the beneficiaries.

A total of 878,133 treasury shares, or 0.388% of the parent's share capital, were held at 30 September 2023.

Information relating to the treasury shares held is shown below:

		Average purchase price (Euro)	Total amount (€ thousands)
	No. of shares	FV of transferred rights (Euro)
Held at 12/31/2022	1,831,360	27.245	49,895
Transfers due to exercise of performance stock grants	(953,227)	27.245	(25,970)
Held at 09/30/2023	878,133	27.245	23,925

8. Net financial position

The Group's net financial position, including lease liabilities, prepared in accordance with the ESMA guideline 32-382-1138 of 4 March 2021 and CONSOB's Warning Notice n. 5/21 of 29 April 2021, is shown below.

(€ thousands)	09/30/2023	12/31/2022	Change
Cash (A)	146,767	179,654	(32,887)
Cash equivalents (B)	-	-	-
Short term investments (C)	51,003	49,968	1,035
Total Cash, Cash Equivalents and Short-Term Investments (A+B+C) (D)	197,770	229,622	(31,852)
Current financial payables (including bonds, but excluding current portion of medium/long-term debt) (E)	433,219	221,095	212,124
- Bank borrowings	197,487	116,659	80,828
- Private Placement 2013-2025	-	103,131	(103,131)
- Other financial payables and bank overdrafts	235,565	19,697	215,868
- Hedging derivatives	167	(18,392)	18,559
Current portion of medium/long-term financial debt (F)	124,311	130,329	(6,018)
- Financial accruals and deferred income	6,845	6,012	833
- Payables for business acquisitions	9,357	24,601	(15,244)
- Lease Liability – current portion	108,109	99,716	8,393
Current Financial Indebtedness (E+F) (G)	557,530	351,424	206,106
Net Current Financial Indebtedness (G-D) (H)	359,760	121,802	237,958
Non current financial payables (I)	695,508	826,797	(131,289)
- Bank borrowings – Non current portion	309,165	452,202	(143,037)
- Payables for business acquisitions – Non current portion	6,817	5,705	1,112
- Lease Liability – Non current portion	379,526	368,890	10,636
Bonds (J)	350,000	350,000	-
- Eurobond 2020-2027	350,000	350,000	-
Trade and other non current payables (K)	-	-	-
- Hedging derivatives – non current portion	-	-	-
Non Current Financial Indebtedness (I+J+K) (L)	1,045,508	1,176,797	(131,289)

Excluding lease liabilities (€487,635 thousand at 30 September 2023), net financial debt amounted to €917,633 thousand at 30 September 2023, broken down as follows:

(€ thousands)	09/30/2023	12/31/2022	Change
Cash and Cash Equivalents	146,767	179,654	(32,887)
Short Term Investments	51,003	49,968	1,035
Cash, Cash Equivalents and Short Term Investments	197,770	229,622	(31,852)
Current Financial Indebtedness (excluding lease liabilities)	449,421	251,708	197,713
Net Current Financial Indebtedness (excluding lease liabilities)	251,651	22,086	229,565
Non current Financial Indebtedness (excluding lease liabilities)	665,982	807,907	(141,925)
Total Financial Indebtedness (excluding lease liabilities)	917,633	829,993	87,640

At the end of January 2023, the entire Private Placement 2013-2025 was repaid in advance (€85,371 thousand at the hedging rate). The subsequent elimination of the relative financial covenants allowed the Group to further increase its financial flexibility, as well as reduce the total cost of funding.

At the end of May 2023, a new €300 million sustainability-linked revolving line of credit was obtained from a pool of banks. This new facility, with a 3-year term and an extension option for 2 additional years at the Company's discretion, provides Amplifon with greater financial flexibility, further strengthening its solid liquidity position, diversifying the sources of funding and extending the average debt maturity. In July 2023 Amplifon signed a €300 million loan agreement with the European Investment Bank (EIB) to finance its innovation and digitalization process (out of a total of €350 million in financing approved by the EIB). The loan, unutilized at the end of September 2023, will contribute to the further innovation of Amplifon's products and services, providing an excellent and highly personalized hearing care experience thanks to the use of a full ecosystem built around the customer, in which the quantity and quality of the Company's services, as well as digital technologies, play a key role.

Long-term net financial debt, excluding lease liabilities, amounted to €665,982 thousand at 30 September 2023 and to €807,907 thousand at 31 December 2022. The decrease of €141,925 thousand is attributable mainly to the reclassification of portions of long-term bank debt, expiring in the next 12 months, from long-to short-term.

The short-term portion of net financial debt, excluding lease liabilities, increased by €229,565 thousand, going from €22,086 thousand at 31 December 2022 to €251,651 thousand at 30 September 2023 due to the repayments of the short-term portion of long-term debt made using the short-term credit lines. The portions of long-term debt maturing in the next 12 months and the other short-term components of financial debt exceed available liquidity, other cash equivalents and other short-term liquid assets. The Group, however, has unutilized, irrevocable lines of credit of €555 million which, in addition to the €42 million in available uncommitted

credit lines and the cash generation expected for the fourth quarter of 2023, ensure enough liquidity to satisfy current obligations and support business needs.

More specifically, the short-term portion of the net financial position includes the short-term portion of long-term bank loans (€197,487 thousand), other bank debt of €235,281 thousand including hot money and utilization of short-term credit lines, interest payable on the Eurobond (€2,470 thousand), as well as on other bank borrowings (€3,944 thousand), and lastly, the best estimate of the deferred payments for acquisitions (€9,357 thousand), net of the €197,770 thousand in liquidity. Liquidity includes €146,767 thousand in available cash and €51,003 thousand in other financial assets that are easily liquidated. These financial assets refer to investments made in money market funds managed by top-tier financial institutions.

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".

(€ thousands)	Balance at 09/30/2023
Eurobond 2020-2027	350,000
Other medium/long-term debt	309,165
Fees on Eurobond 2020-2027 and bank loans	(2,261)
Medium/long-term financial liabilities	656,904

b. under the item "financial payables (current)".

(€ thousands)	Balance at 09/30/2023
Bank overdraft and other short-term debt (including current portion of other long-term debt)	432,962
Other financial payables	6,845
Fees on bank loans	(1,187)
Short-term financial liabilities	438,620

All the other items in the net financial position table can be easily referred to in the financial consolidated statements.

9. Financial liabilities

The financial liabilities breakdown is as follows:

(€ thousands)	Balance at 09/30/2023	Balance at 12/31/2022	Change
Eurobond 2020-2027	350,000	350,000	-
Other medium long-term bank loans	309,165	452,202	(143,037)
Fees on Eurobond 2020-2027, bank loans, and private placement 2013-2025	(2,261)	(3,262)	1,001
Total medium/long-term financial liabilities	656,904	798,940	(142,036)
Short term debt	438,620	243,661	194,959
- of which current portion of short-term bank loans	197,487	116,659	80,828
- of which current portion of private placement 2013-2025	-	103,131	(103,131)
- of which debts for account overdrafts and other short-term liabilities	235,191	18,212	216,979
- of which fees for bank loans and private placement 2013-2025	(1,187)	(1,245)	58
Total short-term financial liabilities	438,620	243,661	194,959
Total financial liabilities	1,095,524	1,042,601	52,923

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.

Issue Date	Debtor	Maturity	Nominal value (€/000)	Fair Value (€/000)	Nominal interest rate (*)	Euro interest rate after hedging
02/13/2020	Amplifon S.p.A.	02/13/2027	350,000	315,377	1.125%	N/A
	Total in Euro		350,000	315,377

(*) The nominal interest rate is equal to the mid swap plus a spread.

- Bank loans

These are the main bilateral and pooled loans which are detailed below:

Issue Date	Debtor	Type	Maturity	Nominal value (€/000)	Outstanding debt (€/000)	Fair Value (€/000)	Nominal interest rate (*)	Hedged nominal amount (**)	Interest rate after hedging (**)
04/07/2020	Amplifon S.p.A.	Bullet	03/22/2024	60,000	60,000	61,275	5.380%
04/06/2020	Amplifon S.p.A.	Amortizing	04/06/2025	50,000	28,571	28,814	4.302%	28,571	0.880%
04/07/2020	Amplifon S.p.A.	Amortizing	04/07/2025	150,000	105,000	106,673	4.406%	70,000	2.17%
04/28/2020	Amplifon S.p.A.	Amortizing	04/28/2025	50,000	50,000	51,443	4.698%
04/29/2020	Amplifon S.p.A.	Amortizing	04/29/2025	78,000	39,000	39,621	4.865%	27,300	2.450%
04/23/2020	Amplifon S.p.A.	Amortizing	06/30/2025	35,000	27,125	27,400	3.826%	27,125	0.785%
08/03/2020	Amplifon S.p.A.	Amortizing	06/30/2025	10,000	3,559	3,597	5.005%
12/23/2021	Amplifon S.p.A.	Amortizing	12/23/2026	210,000	193,200	212,154	4.730%	193,200	1.163%
	Total			643,000	506,455	530,977		346,196

(*) 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.

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.

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 with top-tier banking institutions of €219 million.	≤ 2.85	≤ 1.65	-	≤ 3.26 (Leverage Ratio)
- Irrevocable credit lines with top-tier banking institutions of €125 million.				≤ 2.20 (Net Worth Ratio)
- €29 million bank loan expiring in 2025 - Revolving irrevocable credit line of €15 million	≤ 2.85	-	> 4.90	≤ 3.26 (Leverage Ratio)
-Medium/long-term bilateral loans with top-tier banking institutions of €66 million; -Irrevocable lines of credit with premier banks amounted to €115 million (of which €100 million is explained by the sustainability-linked facility).	≤ 2.85	≤ 1.65	> 4.90	≤ 3.26 (Leverage Ratio) ≤ 2.20 (Net Worth Ratio)

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 unutilized, 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 30 September 2023 these ratios were as follows:

	Value as at
	09/30/2023
Net financial indebtedness excluding lease liabilities/Group net equity (Net Worth Ratio)	0.86
Net financial position excluding lease liabilities/EBITDA for the last four quarters (Leverage Ratio)	1.63
EBITDA for the last 4 quarters/Net financial expenses (Interest Cover)	21.58

The above-mentioned ratios were determined based on an EBITDA which was restated and normalized, in order to reflect the main changes.

(€ thousands)	Value as at 09/30/2023
Group EBITDA first nine months 2023	372,585
EBITDA October-December 2022	154,859
Fair value of stock grant assignment	24,575
EBITDA normalized (from acquisitions and disposals)	7,538
Acquisitions and non-recurring costs	3,672
EBITDA for the covenant calculation	563,229

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 risk and charges

Provisions for risks and charges amounted to €20,486 thousand, lower than the €21,607 thousand recorded at 31 December 2022.

The provisions for risks at 30 September 2023 are detailed below:

(€ thousands)	09/30/2023	12/31/2022	Change
Product warranty provision	1,178	1,261	(83)
Provision on contract risks	3,922	4,515	(593)
Agents' leaving indemnities	12,265	11,735	530
Other reserves for risks and charges	2,146	2,433	(287)
Total Long-term provision for risk and charges	19,511	19,944	(433)
Product warranty provision	223	323	(100)
Other reserves for risks and charges	752	1,340	(588)
Total Short-term provision for risk and charges	975	1,663	(688)
Total provision for risk and charges	20,486	21,607	(1,121)

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:

(€ thousands)	09/30/2023	12/31/2022	Change
Short term lease liabilities	108,109	99,716	8,393
Long term lease liabilities	379,526	368,890	10,636
Total lease liabilities	487,635	468,606	19,029

The impact of the lease liabilities recognized in the reporting period on the income statement is shown below:

	First nine months
(€ thousands)	2023
Interest charges on leased assets	(10,846)
Right-of-use depreciation	(87,908)
Costs for short-term leases and leases for low value assets	(11,211)

12. Revenues from sales and services

(€ thousands)	First nine months 2023	First nine months 2022	Change
Revenues from sale of products	1,430,065	1,344,494	85,571
Revenues from services	215,000	195,201	19,799
Total revenues from sales and services	1,645,065	1,539,695	105,370
Goods and services provided at a point in time	1,430,065	1,344,494	85,571
Goods and services provided over time	215,000	195,201	19,799
Total revenues from sales and services	1,645,065	1,539,695	105,370

Consolidated revenues from sales and services amounted to €1,645,065 thousand in the first nine months of 2023, an increase of €105,370 thousand (+6.8%) compared to the same period of the prior year.

The increase compared to the first nine months of 2022 is attributable for €117,623 thousand to organic growth (+7.6%), acquisitions for €32,871 thousand (+2.1%) and negative exchange differences for €45,124 thousand (-2.9%).

13. Operating costs, depreciation and impairment, financial income-expenses and taxes

Operating costs amounted to €1,276,225 thousand in the first nine months of 2023 (€1,180,744 thousand in the first nine months of 2022), an increase of €95,481 thousand (+8.1%).

"Amortization, depreciation and impairment" amounted to €192,916 thousand at 30 September 2023 higher than the €178,278 thousand recorded in the first nine months of 2022.

"Financial income, expenses and value adjustments to financial assets" came to €36,893 thousand in the first nine months of 2023 (€25,572 thousand in the first nine months of 2022). The change in the reporting period of €11,321 thousand is explained by an increase in financial management costs attributable to: (i) the effect of the increase in interest rates on the use of short-term credit lines, of the variable-rate portion of medium- to long-term lines, of factoring, and of lease accounting; (ii) negative exchange rate differences related to the fluctuation of rates mainly in North and South American countries; and (iii) the greater negative impact of inflation accounting on the Argentine subsidiary.

Current and deferred tax amounted to €39,335 thousand in the first nine months of 2023, €4,954 thousand lower than in the first nine months of 2022 (€44,289 thousand). The tax rate was 27.6% in the reporting period versus 27.7% at 30 September 2022.

14. Performance Stock Grant

On May 2, 2023, the Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99 and subsequent amendments, resolved to allocate 517,500 target rights at the end of a 3-year vesting period as the first tranche of the Stock Grant Cycle 2023- 2025.

The fair value per unit of these granted stock grants during the reported period is €32.52.

Valuation Model Binomial Tree (Cox-Ross-Rubinstein method) Price at grant date €33.32 Threshold - € Exercise price 0.00 Volatility (3 years) 34.13% Risk-free interest rate 3.189% Maturiy (in years) 3 Maturity date 3 months after the approval date by the Board of Directors of the Consolidated Financial Statements as at December 31, 2025 (i.e., June 2026).

The assumptions used in determining the fair value are as follows:

The figurative cost of this grant cycle recorded in the income statement as of September 30, 2023 amounts to €1,883 thousand.

Expected Dividend Yield 0.79%

Sustainable value sharing plan 2022-2027

The Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99, has resolved to allocate a maximum of 122,620 rights under the Sustainable Value Sharing Plan 2022-2027, reserved for the CEO and Key Executives of the Group (Beneficiaries), as described in the Information Document approved by the Shareholders' Meeting on April 21, 2023.

The scheme is a composite incentive tool that operates through two distinct phases, of which the second phase is contingent and dependent on the progress of the first phase (referred to as "Phase A" and "Phase B," respectively). Phase A: Starting from the 2023 fiscal year, the Target MBO achieved and hypothetically due to the Beneficiaries under the applicable MBO Plan for the previous fiscal year (including the one related to 2022) will not be paid out. Instead, the Beneficiaries will receive a certain number of rights (the "Co-invested Rights") that will entitle them to receive shares at the end of the vesting period of Phase B described below, or earlier if Phase B does not vest.

Phase B: If, in a given fiscal year, the Beneficiaries receive Co-invested Rights under the mechanism described above, they will participate in an additional and separate incentive tool

based on financial instruments, wherein the Company allocates additional rights to them, equal in number to the Co-invested Rights. These rights (the "Matched Rights") will entitle the Beneficiaries to receive shares provided that certain performance targets linked to value generation and sustainable success of the Group are met by the end of the vesting period.

Regarding the Sustainable Value Sharing Plan 2022-2027 reserved for the CEO and Key Executives of the Group, the conversion of the accrued MBO led to the allocation of 61,310 Coinvested Rights and 61,310 Matched Rights.

	PHASE A	PHASE B
Valuation model	Binomial Tree (Cox-Ross-Rubinstein method)	Binomial Tree (Cox-Ross-Rubinstein method)
FV	€32.10	€26.03
KPI	-	ESG/TSR
Exercise price	0.00
Volatility (3 years)	33.84%	33.84%
Risk-free interest rate	3.438%	3.438%
Maturity (in years)	3	3
Maturity date	3 months after the approval date by the Board of Directors of the Consolidated Financial Statements as at December 31, 2025.	3 months after the approval date by the Board of Directors of the Consolidated Financial Statements as at December 31, 2025.
Expected dividend yield	0.79%	0.79%

The assumptions used in determining the fair value are as follows:

On January 5, 2023, the controlling shareholder Ampliter S.r.l. ("Ampliter") established a plan that provides a one-time grant of 500,000 Amplifon shares owned by Ampliter to the CEO, Mr. Enrico Vita, during the term of office from 2022 to 2024. The shares are transferred free of charge in five tranches, with the first tranche consisting of 260,000 shares vesting on April 21, and the subsequent tranches of 60,000 shares each, with a final vesting date set for November 30, 2024.

This allocation, independently determined by Ampliter, although not involving any monetary outlay by Amplifon, requires the recognition of a one-time figurative cost in the income statement, in accordance with the IFRS 2 "Share Based Payments" accounting principle. The total figurative cost amounts to €13.7 million, of which €12.4 million will be recognized in the 2023 fiscal year and €1.3 million in the 2024 fiscal year.

The fair value per unit of these instruments, as per IFRS 13, is determined as the mark-to-market value (Level 1) of the rights at the date of allocation, which is EUR 27.43.

The figurative cost for the first half of the year, recorded as a non-recurring expense as of September 30, 2023, amounts to €11,614 thousand.

15. Non-recurring significant events

The first nine months of 2023 were impacted by the following non-recurring items:

(€ thousands)		First nine months 2023	First nine months 2022
	Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO	(11,614)	-
	Costs related to Bay Audio integration	(174)	(2,655)
Costi operativi	Costs related to second phase of the GAES integration	(1,433)	(2,026)
	Costs related to the charitable donation to the UNHCR for the Ukraine emergency.	-	(1,000)
EBITDA		(13,221)	(5,681)
Profit (loss) before tax		(13,221)	(5,681)
	Impact of the above items on the tax burden for the period	3,844	1,588
Total net profit (loss)		(9,377)	(4,093)

16. Earnings (loss) per share

Basic Earnings (loss) per share

Basic earnings (loss) per share is obtained by dividing the net profit for the year attributable to the ordinary shareholders of the parent company by the weighted average number of shares outstanding in the period, considering purchases and disposals of own shares as cancellations and issues of shares.

Earnings per share are determined as follows:

Earnings per share	First nine months 2023	First nine months 2022
Net profit (loss) attribuable to ordinary shareholders (€ thousand)	103,438	115,484
Average number of shares outstanding in the period	224,054,021	224,293,768
Average number per share (€ per share)	0.46167	0.51488

Diluted earnings (loss) per share

Diluted earnings (loss) per share is obtained by dividing the net profit for the period attributable to the ordinary shareholders of the parent by the weighted average number of shares outstanding during the year adjusted by the diluting effects of potential shares. In the calculation of shares outstanding, purchases and sales of treasury shares are considered as cancellation or issue of shares.

The potential ordinary share categories refer to the possible conversion of Group employees' stock options and stock grants' attribution. The computation of the average number of

outstanding potential shares is based on the average fair value of shares for the period; stock options and stock grants are excluded from the calculation since they have anti-diluting effects.

Weighted average diluted number of shares outstanding	First nine months 2023	First nine months 2022
Average number of shares outstanding in the period	224,054,021	224,293,768
Weighted average of potential and diluting ordinary shares	1,766,662	2,563,049
Weighted average of shares potentially subject to options in the period	225,820,683	226,856,817

The diluted earnings per share were determined as follows:

Diluted earnings per share	First nine months 2023	First nine months 2022
Net profit attributable to ordinary shareholders (€ thousand)	103,438	115,484
Average number of shares outstanding in the period	225,820,683	226,856,817
Average diluted earnings per share (€)	0.45805	0.50906

17. Transactions with parents and other related parties

The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy. The Group is controlled directly by Ampliter S.r.l. (42.12% of share capital and 59.16% of voting rights), held for a 100.0% by Amplifin S.p.A., which is 99.4% owned by Susan Carol Holland and the remaining 0.6% in treasury shares.

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.

		09/30/2023	First nine months 2023
(€ thousand)	Trade receivables	Trade payables	Revenues for sales and services	Operating (costs)/revenues	Interest income and expense
Amplifin S.p.A.	10	-	-	(60)	3
Total – Parent company	10	-	-	(60)	3
Comfoor BV (The Netherlands)	21	2,774	74	(876)	-
Ruti Levinson Institute Ltd (Israel)	45	-	-	-	-
Afik - Test Diagnosis & Hearing Aids Ltd (Israel)	84	-	-	-	-
Total – Other related parties	150	2,774	74	(876)	-
Total related parties	160	2,774	74	(936)	3
Total as per financial statements	202,889	324,454	1,645,065	(1,276,225)	(19,036)
% of financial statements total	0.08%	0.85%	0.00%	0.07%	-0.02%

The following table details transactions with related parties:

The trade and other receivables refer primarily to:

the recovery of maintenance costs and building fees from Amplifin S.p.A.;
the receivables due by Amplifin S.p.A. 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 €1,362 thousand, interest on leases for €332 thousand, lease liabilities of €12,408 thousand, and right-of-use asset of €11,338 thousand.

The assignment of Amplifon shares by Ampliter S.r.l. to the CEO Enrico Vita described in note 14, is a transaction between related parties and not a transaction with related parties.

18. 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.

19. 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 2022 Annual Report.

20. Translation of foreign companies' financial statements

The exchange rates used to translate non-Euro zone companies' financial statements are as follows:

		30 September 2023	2022	30 September 2022
	Average exchange rate	As at 30 September	As at 31 December	Average exchange rate	As at 30 September
Panamanian balboa	1.0833	1.0594	1.0660	1.0638	0.9748
Australian dollar	1.6205	1.6339	1.5693	1.5044	1.5076
Canadian dollar	1.4576	1.4227	1.4440	1.3643	1.3401
New Zealand dollar	1.7547	1.7575	1.6798	1.6468	1.7177
Singapore dollar	1.4523	1.4443	1.4300	1.4631	1.4001
US dollar	1.0833	1.0594	1.0666	1.0638	0.9748
Hungarian florin	381.7600	389.5000	400.87	384.81	422.18
Swiss franc	0.9774	0.9669	0.9847	1.0118	0.9561
Egyptian lira	33.1383	32.7298	26.3990	19.011	19.053
New Israeli shekel	3.9474	4.0472	3.7554	3.5254	3.4759
Argentine peso (*)	370.8149	370.8149	188.5033	143.3764	143.3764
Chilean peso	890.0800	959.8000	913.82	912.74	939.73
Colombian peso	4772.1400	4312.3900	5172.47	4.326.45	4.415.55
Mexican peso	19.2804	18.5030	20.8560	21.5542	19.6393
Brazilian real	5.4245	5.3065	5.6386	5.4631	5.2584
Chinese renminbi	7.6235	7.7352	7.3582	7.0193	6.9368
Indian rupee	89.2314	88.0165	88.1710	82.2983	79.4250
British pound	0.8707	0.8646	0.8869	0.8472	0.8830
Polish zloty	4.5820	4.6283	4.6808	4.6724	4.8483

(*) Argentina is a highly inflationary country. As requested by IAS 29, profit and loss items have been converted at the closing exchange rate.

The average Argentine peso exchange rate as at 30 September 2023 is 253.2357 and as at 30 September 2022 is 127.2470.

21. 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, and Mexico) 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.

(€ thousands)	EMEA	AMERICAS	APAC	ELIM.	CONSOLIDATED
ASSETS
Non-current assets
Goodwill	945,325	247,211	601,787	-	1,794,323
Intangible fixed assets with finite useful life	305,275	56,454	63,435	-	425,164
Property, plant, and equipment	144,014	26,588	37,095	-	207,697
Right-of-use assets	367,257	45,463	55,506	-	468,226
Equity-accounted investments	2,293	-	-	-	2,293
Hedging instruments	19,429	-	-	-	19,429
Deferred tax assets	65,713	11,527	10,953	-	88,193
Deferred contract costs	11,395	1,145	43	-	12,583
Other assets	31,423	13,332	1,822	-	46,577
Total non-current assets					3,064,485
Current assets
Inventories	68,809	6,384	9,519	-	84,712
Receivables	290,505	47,089	29,708	(61,113)	306,189
Deferred contract costs	3,723	1,040	137	-	4,900
Hedging instruments	218	-	-	-	218
Other financial assets					51,021
Cash and cash equivalents					146,767
Total current assets					593,807
TOTAL ASSETS					3,658,292
LIABILITIES
Net Equity					1,070,715
Non-current liabilities
Medium/long-term financial liabilities					656,904
Lease liabilities	303,036	37,849	38,641	-	379,526
Provisions for risks and charges	17,298	841	1,372	-	19,511
Liabilities for employees' benefits	9,141	200	758	-	10,099
Hedging instruments	-	-	-	-	-
Deferred tax liabilities	62,396	26,176	17,325	-	105,897
Payables for business acquisitions	5,363	1,454	-	-	6,817
Contract liabilities	143,679	13,306	2,401	-	159,386
Other long-term liabilities	20,257	1,171	-	-	21,428
Total non-current liabilities					1,359,568
Current assets
Trade payables	269,587	68,429	47,356	(60,918)	324,454
Payables for business acquisitions	3,379	5,686	292	-	9,357
Contract liabilities	89,134	15,815	7,688	-	112,637
Other payables and tax payables	183,795	22,977	23,528	(195)	230,105
Hedging instruments	384	-	-	-	384
Provisions for risks and charges	265	710	-	-	975
Liabilities for employees' benefits	790	329	2,249	-	3,368
Short-term financial liabilities					438,620
Lease liabilities	77,156	10,977	19,976	-	108,109
Total current liabilities					1,228,009
TOTAL LIABILITIES					3,658,292

**Statement of Financial Position as at September 30th , 2023 (*)**

(*) 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.

Statement of Financial Position as at December 31st, 2022 (*)

(€ thousands)	EMEA	AMERICAS	APAC	ELIM.	CONSOLIDATED
ASSETS
Non-current assets
Goodwill	921,163	213,816	619,049	-	1,754,028
Intangible fixed assets with finite useful life	298,642	53,903	67,553	-	420,098
Property, plant, and equipment	136,721	21,006	35,688	-	193,415
Right-of-use assets	366,243	34,242	51,262	-	451,747
Equity-accounted investments	2,093	-	-	-	2,093
Hedging instruments	25,850	-	-	-	25,850
Deferred tax assets	60,867	10,206	10,707	-	81,780
Deferred contract costs	9,841	1,206	84	-	11,131
Other assets	30,361	10,494	1,615	-	42,470
Total non-current assets					2,982,612
Current assets
Inventories	60,417	5,781	10,060	-	76,258
Receivables	270,798	54,107	33,985	(94,213)	264,677
Deferred contract costs	4,437	744	81	-	5,262
Hedging instruments	17,016	-	-	-	17,016
Other financial assets					49,986
Cash and cash equivalents					179,654
Total current assets					592,853
TOTAL ASSETS					3,575,465
LIABILITIES
Net Equity					1,040,350
Non-current liabilities
Medium/long-term financial liabilities					798,940
Lease liabilities	304,182	28,995	35,713	-	368,890
Provisions for risks and charges	17,712	787	1,445	-	19,944
Liabilities for employees' benefits	8,023	203	714	-	8,940
Hedging instruments	-	-	-	-	-
Deferred tax liabilities	61,419	26,053	19,211	-	106,683
Payables for business acquisitions	3,209	2,496	-	-	5,705
Contract liabilities	136,574	14,744	2,295	-	153,613
Other long-term liabilities	15,149	974	-	-	16,123
Total non-current liabilities					1,478,838
Current assets
Trade payables	310,412	68,611	40,574	(94,014)	325,583
Payables for business acquisitions	7,585	17,016	-	-	24,601
Contract liabilities	91,613	15,034	8,210	-	114,857
Other payables and tax payables	192,769	19,919	30,092	(199)	242,581
Hedging instruments	-	-	-	-	-
Provisions for risks and charges	975	688	-	-	1,663
Liabilities for employees' benefits	789	393	2,434	-	3,616
Short-term financial liabilities					243,661
Lease liabilities	73,798	7,827	18,090	-	99,716
Total current liabilities					1,056,277
TOTAL LIABILITIES					3,575,465

(*) 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.

**Income Statement – First nine months 2023 (*)**

(€ thousands)	EMEA	AMERICAS	ASIA PACIFIC	CORPORATE	ELIM.	CONSOLIDATED
Revenues from sales and services	1,067,232	321,984	255,511	338	-	1,645,065
Operating costs	(771,871)	(237,908)	(189,209)	(77,237)	-	(1,276,225)
Other income and costs	3,473	(127)	(10)	409	-	3,745
Gross operating profit by segment
(EBITDA)	298,834	83,949	66,292	(76,490)	-	372,585
Amortization, depreciation and impairment
Intangible assets amortization	(30,732)	(7,322)	(10,948)	(16,317)	-	(65,319)
Property, plant, and equipment depreciation	(24,581)	(4,727)	(8,110)	(2,068)	-	(39,486)
Right-of-use depreciation	(58,042)	(8,675)	(19,491)	(1,700)	-	(87,908)
Impairment losses and reversals of non current assets	(189)	(5)	(9)	-	-	(203)
	(113,544)	(20,729)	(38,558)	(20,085)	-	(192,916)
Operating result by segment	185,290	63,220	27,734	(96,575)	-	179,669

Financial income, expenses and value adjustments to financial assets
Group's share of the result of associated companies valued at equity and gains/losses on disposals of equity investments	210	-	-	-	-	210
Interest income and expenses						(19,036)
Interest expenses on lease liabilities						(10,846)
Other financial income and expenses						(3,528)
Exchange gains and losses, and inflation accounting						(4,438)
Gain (loss) on assets accounted at fair value						745
						(36,893)
Net profit (loss) before tax						142,776
Current and deferred income tax
Current income tax						(46,218)
Deferred tax						6,883
						(39,335)
Net profit (loss)						103,441
Net profit (loss) attributable to Minority interests						3
Net profit (loss) attributable to the Group						103,438

(*) The figures of the operating segments are net of the intercompany eliminations.

(€ thousands)	EMEA	AMERICAS	APAC	CORPORATE	ELIM.	CONSOLIDATED
Revenues from sales and services	1,019,254	282,043	237,986	412	-	1,539,695
Operating costs	(734,181)	(207,547)	(178,175)	(60,841)	-	(1,180,744)
Other income and costs	4,774	(1,040)	205	959	-	4,898
Gross operating profit by segment (EBITDA)	289,847	73,456	60,016	(59,470)	-	363,849
Amortization, depreciation and impairment
Intangible assets amortization	(27,442)	(7,767)	(11,925)	(11,988)	-	(59,122)
Property, plant, and equipment depreciation	(25,613)	(3,336)	(6,879)	(2,066)	-	(37,894)
Right-of-use depreciation	(56,187)	(5,791)	(17,378)	(1,701)	-	(81,057)
Impairment losses and reversals of non current assets	(248)	64	(21)	-	-	(205)
	(109,490)	(16,830)	(36,203)	(15,755)	-	(178,278)
Operating result by segment	180,357	56,626	23,813	(75,225)	-	185,571
Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and gains/losses on disposals of equity	323	-	-	-	-	323
investments Interest income and expenses						(13,923)
Interest expenses on lease liabilities						(8,332)
Other financial income and expenses						(1,728)
Exchange gains and losses, and inflation accounting						651
Gain (loss) on assets accounted at fair value						(2,563)
						(25,572)
Net profit (loss) before tax						159,999
Current and deferred income tax
Current income tax						(57,591)
Deferred tax						13,302
						(44,289)
Net profit (loss)						115,710
Net profit (loss) attributable to Minority interests						226
Net profit (loss) attributable to the Group						115,484

**Income Statement – First nine months 2022 (*)**

(*) The figures of the operating segments are net of the intercompany eliminations.

22. Accounting policies

22.1 Presentation of financial statements

The Interim Financial Report as at 30 September 2023 was 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 provide a more accurate representation of the Group's primarily commercial and distribution activities;
comprehensive income statement: in addition to the net result for the year, it includes the impact of differences in exchange rates, the cash flow hedge reserve, the foreign currency basis spread reserve for derivatives, as well as 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.

22.2 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 input or output needed 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, tangible fixed assets and right of use 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;
IRSs 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;

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 and taking into account any and all lease clauses;
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 agreement, 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 agreement.

Estimates are periodically reviewed, and any changes made, following the change of the circumstances based on which the estimates were made 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. This calls for an estimate of the value in use of the cash generating units to which the goodwill refers based on an estimate of future cash flows and the after-tax discount rate which reflects market conditions at the valuation date.

22.3 IFRS standards/interpretations approved by the IASB and endorsed in Europe

The following table lists the IFRS/interpretations approved by the IASB, endorsed in Europe and applied for the first time this year.

Description	Endorsement date	Publication in the G.U.C.E.	Effective date	Effective date for Amplifon
Amendment to IAS 1 "Presentation of Financial Statements" e IFRS Practice Statement 2: Disclosure of Accounting Policies (issued on 12 February 2021)	2 Mar '22	3 Mar '22	1 Jan '23	1 Jan '23
IFRS 17 "Insurance Contracts" (issued on 18 May 2017); including amendments to IFRS 17 (issued on 25 June 2020)	19 Nov '21	23 Nov '21	1 Jan '23	1 Jan '23
Amendment to IFRS 17 "Insurance contracts" and IFRS 9 (issued on 9 December 2021)	8 Sep '22	9 Set '22	1 Jan '23	1 Jan '23
Amendment to IAS 12 "Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (issued on 7 May 2021)	11 Aug '22	12 Aug '22	1 Jan '23	1 Jan '23
Amendment to IAS 8 "Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates" (issued on 12 February 2021)	2 Mar '22	3 Mar '22	1 Jan '23	1 Jan '23

Amendments to IAS 1 "Presentation of Financial Statements" and "IFRS Practice Statement 2 Disclosure of Accounting Policies" which strive to improve accounting policy disclosures, in order to provide investors and other primary users of the financial statements with more useful information, as well as help companies clarify the distinction between changes in accounting policies and changes in accounting estimates.

IFRS 17 "Insurance Contracts" is a new standard which relates to the recognition and measurement, presentation and disclosure of insurance contracts which will substitute IFRS 4, issued in 2005. This standard is applicable to all types of insurance contracts, regardless of the issuer, as well as to a few guarantees and financial instruments with discretionary participation features.

Amendments to IAS 12 "Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction" calls for exceptions to the "initial recognition exemption" provided in IAS 12.25 (b) and IAS 12.24. The provision impacts the calculation of the tax liability recorded upon "initial recognition".

Amendments to IAS 8 ''Accounting policies, Changes in Accounting Estimates and Errors'' which allow the entities to distinguish between accounting principle and accounting estimates through the introduction of a new definition of ''accounting estimates''.

The adoption of the above standards and interpretations is not expected to have a material impact on the measurement of the Group's assets, liabilities, costs and revenues.

22.4 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 30 October 2023, had yet to be endorsed for adoption in Europe.

Description	Effective date
Amendments to IAS 12 "Income taxes: International Tax Reform – Pillar Two Model Rules" (issued on 23 May 2023)	Periods beginning on or after 1 Jan '23
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 Date" and ''Non-current Liabilities with Covenants''	Periods beginning on or after 1 Jan '24
(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 22 September 2022)	Periods beginning on or after 1 Jan '24
Amendments to IAS 7 ''Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements'' (issued on 25 May 2023)	Periods beginning on or after 1 Jan '24
Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability" (issued on 15 August 2023)	Periods beginning on or after 1 Jan '25

The IAS 12 amendments provide temporary mandatory relief from deferred tax accounting for minimum top-up tax. While waiting for these amendments to be endorsed in Italy and the Group's other countries of operation, the analysis of any potential impact, which is expected to be immaterial, is being carried out.

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.

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 above is not expected to have a material impact on the measurement of the Group's assets, liabilities, costs and revenues.

23. Subsequent events

After 30 September 2023, the exercise of the performance stock grants continued, and the beneficiaries received a total of 6,650 treasury shares. At the date of this report, the Company had a total of 871,483 treasury shares or 0.385% of its share capital.

The Group's external growth also continued in October 2023 with the acquisition of a total of 49 shops in China, the US, France, and Germany.

Milan, October 30th , 2023

CEO

Enrico Vita

Annexes

Annex I

Consolidation scope

As required by articles 38 and 39 of Law 127/91 and article 126 of Consob's resolution 11971 dated 14 May 1999, as amended by resolution 12475 dated 6 April 2000, the following is the list of companies included in the consolidation scope of Amplifon S.p.A. at 30 September 2023.

Parent company:

Company name	Head office	Currency	Share capital
Amplifon S.p.A.	Milano (Italy)	EUR	4,527,772

Subsidiaries consolidated using the line-by-line method:

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2023
Amplifon Italia S.p.A	Milano (Italy)	D	EUR	100,000	100.0%
Amplifon Rete	Milano (Italy)	I	EUR	19,250	2.6%
Audibel S.r.l (in liquidazione)	Roma (Italy)	D	EUR	70,000	100.0%
Pilot Blankenfelde Medizinisch Elektronische Gerate GmbH	Blankenfelde-Mahlow (Germany)	D	EUR	34,595	100.0%
Amplifon France SAS	Arcueil (France)	D	EUR	173,550,898	100.0%
SCI Eliot Leslie	Lyon (France)	I	EUR	610	100.0%
Audition Frederic Rembaud	Périgueux (France)	I	EUR	40,000	100.0%
Audition 50	Granville (France)	I	EUR	40,000	100.0%
Audition Marquilly	Lavelanet (France)	I	EUR	15,000	100.0%
Surdité Toulorge	Cherbourg (France)	I	EUR	3,920	100.0%
NewEar	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%
Octave Audition	Moret Loing et Orvanne (France)	I	EUR	10,000	100.0%
Argenteuil Acoustique Médicale	Argenteuil (France)	I	EUR	13,000	100.0%
SAS Galy	Fronton (France)	I	EUR	5,000	100.0%
Labo Audio	Libourne (France)	I	EUR	50,000	100.0%
N.C. Audition	Saint-Genis-Laval (France)	I	EUR	1,000	100.0%
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%
Amplitude Audition	Prades-le-Lez (France)	I	EUR	1,000	100.0%
Boulben Audition - Majuni	Queven (France)	I	EUR	15,000	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2023
Audition du Segala	Baraqueville (France)	I	EUR	1,500	100.0%
Amplifon Iberica SA	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%
Amplifon Nederland BV	Doesburg (The Netherlands)	D	EUR	74,212,052	100.0%
Auditech BV	Doesburg (The Netherlands)	I	EUR	22,500	100.0%
Electro Medical Instruments BV	Doesburg (The Netherlands)	I	EUR	16,650	100.0%
Beter Horen BV	Doesburg (The Netherlands)	I	EUR	18,000	100.0%
Amplifon Customer Care Service BV	Elst (The Netherlands)	I	EUR	18,000	100.0%
Amplifon Belgium NV	Bruxelles (Belgium)	D	EUR	495,800	100.0%
Amplifon RE SA	Luxembourg (Luxembourg)	D	EUR	3,700,000	100.0%
Amplifon Deutschland GmbH	Hamburg (Germany)	D	EUR	6,026,000	100.0%
Focus Hören AG	Willroth (Germany)	I	EUR	485,555	100.0%
Focus Hören Deutschland GmbH	Willroth (Germany)	I	EUR	25,000	100.0%
Amplifon Poland Sp. z o.o.	Lodz (Poland)	D	PLN	3,348,280	100.0%
Amplifon UK Ltd	Manchester (United Kingdom)	D	GBP	130,951,168	100.0%
Amplifon Ltd	Manchester (United Kingdom)	I	GBP	1,800,000	100.0%
Ultra Finance Ltd	Manchester (United Kingdom)	I	GBP	75	100.0%
Amplifon Cell	Ta' Xbiex (Malta)	D	EUR	2,500,125	100.0%
Medtechnica Ortophone Ltd (*)	Tel Aviv (Israel)	D	ILS	1,100	90.0%
Amplifon Middle East SAE	Cairo (Egypt)	D	EGP	3,000,000	51.0%
Miracle Ear Inc.	St. Paul (United States)	I	USD	5	100.0%
Elite Hearing, LLC	Minneapolis (United States)	I	USD	1,000	100.0%
Amplifon USA Inc.	Dover (United States)	D	USD	52,500,010	100.0%
Amplifon Hearing Health Care. Inc.	St. Paul (United States)	I	USD	10	100.0%
Ampifon IPA, LLC	New York (United States)	I	USD	1,000	100.0%
ME Pivot Holdings, LLC	Minneapolis (United States)	I	USD	2,000,000	100.0%
ME Flagship, LLC	Wilmington (United States)	I	USD	-	100.0%
METX, LLC	Waco (United States)	I	USD	-	100.0%
MEFL, LLC	Waco (United States)	I	USD	-	100.0%
METAMPA, LLC	Waco (United States)	I	USD	-	100.0%
MENM, LLC	Waco (United States)	I	USD	-	100.0%
MEOH, LLC	Minneapolis (United States)	I	USD	-	100.0%
Miracle Ear Canada Ltd.	Vancouver (Canada)	I	CAD	125,901,200	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2023
2829663 Ontario Inc	Milton (Canada)	I	CAD	-	100.0%
Ossicle Fort McMurray Inc	Fort McMurray (Canada)	I	CAD	-	100.0%
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%
Terrace Hearing Clinic Ltd.	Terrace (Canada)	I	CAD	-	100.0%
The Hearing Clinic	Scarborough (Canada)	I	CAD	-	100.0%
Lisa Reid Audiology Hearing Centres	Manitoba (Canada)	I	CAD	-	100.0%
Great to Hear, Inc	Manitoba (Canada)	I	CAD	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 Ltd./100391416 Ontario Ltd.	Ontario (Canada)	I	CAD	1,210	100.0%
Sackville Hearing Centre Limited	Nova Scotia (Canada)	I	CAD	1,020	100.0%
Hometown Hearing Centre Inc	Bancroft (Canada)	I	CAD	400	100.0%
GAES S.A.	Santiago de Chile (Chile)	I	CLP	1,901,686,034	100.0%
GAES Servicios Corporativo de Latinoamerica Spa	Sanhtiago de Chile (Chile)	I	CLP	10,000,000	100.0%
Audiosonic Chile S.A.	Santiago de Chile (Chile)	I	CLP	1,000,000	99.0%
GAES S.A.	Buenos Aires (Argentina)	I	ARS	120,542,331	100.0%
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 cv	Ciudad de México (Mexico)	I	MXN	276,477,133	100.0%
Compañía de Audiologia y Servicios Medicos sa de cv	Aguascalientes (Mexico)	I	MXN	43,306,212	100.0%
GAES Panama S.A.	Panama (Panama)	I	PAB	510,000	100.0%
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%
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%
Otohub Unit Trust (in liquidazione)	Brisbane (Australia)	D	AUD	-	100.0%
Otohub Australasia Pty Ltd	Brisbane (Australia)	D	AUD	10	100.0%
Bay Audio Pty Ltd	Sydney (Australia)	D	AUD	10,000	100.0%
Amplifon Asia Pacific Pte Limited	Singapore (Singapore)	I	SGD	1,000,000	100.0%
Amplifon NZ Ltd	Takapuna (New Zealand)	I	NZD	130,411,317	100.0%
Bay Audiology Ltd	Takapuna (New Zealand)	I	NZD	-	100.0%
Dilworth Hearing Ltd	Auckland (New Zealand)	I	NZD	-	100.0%
Auckland Hearing Ltd	Auckland (New Zealand)	I	NZD	-	100.0%
Amplifon India Pvt Ltd	Gurgaon (India)	I	INR	2,050,000,000	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2023
Beijing Amplifon Hearing Technology Center Co. Ltd	Běijīng (China)	D	CNY	2,143,685	100.0%
Tianjin Amplifon Hearing Technology Co. Ltd	Tianjin (China)	I	CNY	3,500,000	100.0%
Shijiazhuang Amplifon Hearing Technology Co. Ltd	Shijiazhuang (China)	I	CNY	100,000	100.0%
Amplifon (China) Investment Co. Ltd	Shanghai (China)	D	CNY	177,800,000	100.0%
Hangzhou Amplifon Hearing Aid Co. Ltd (**)	Hangzhou (China)	D	CNY	11,000,000	60.0%
Zhengzhou Yuanjin Hearing Technology Co Ltd. (**)	Zhengzhou (China)	I	CNY	100,000	60.0%
Wuhan Amplifon Hearing Aids Co. Ltd	Wuhan (China)	I	CNY	16,250,000	100.0%
Shanghai Amplifon Hearing Technology Co. Ltd	Shanghai (China)	I	CNY	100,000	100.0%
Nanjing Amplifon Hearing Aid Co. Ltd	Nanjing (China)	I	CNY	100,000	100.0%
Shanxi Tingdaoai Hearing Technology Co.Ltd	Taiyuan (China)	I	CNY	30,000,000	100.0%
Henan Shengjia Hearing Aids Co., Ltd. (**)	Luoyang (China)	I	CNY	1,000,000	60.0%
Fuzhou Tingan Medical Device Co. Ltd	Fuzhou (China)	I	CNY	20,000,000	100.0%
Chongqing Amplifon Hearing Aids Co. Ltd.	Chongqing (China)	I	CNY	-	100.0%

(*) 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%.

(**) 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:

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2023
Comfoor BV (*)	Doesburg (The Netherlands)	I	EUR	18,000	50.0%
Comfoor GmbH (*)	Emmerich am Rhein (Germany)	I	EUR	25,000	50.0%
Ruti Levinson Institute Ltd (**)	Ramat HaSharon (Israel)	I	ILS	105	16.0%
Afik - Test Diagnosis & Hearing Aids Ltd (**)	Jerusalem (Israel)	I	ILS	100	16.0%
Lakeside Specialist Centre Ltd (**)	Mairangi Bay (New Zealand)	I	NZD	-	50.0%

(*) Joint Venture

(**) Related companies

Declaration of the Executive Responsible for Corporate Accounting Information pursuant to Article 154-bis of Legislative Decree 58/1998 (Consolidated finance act)

We, the undersigned, Enrico Vita, Chief Executive Officer and Gabriele Galli, Executive Responsible for Corporate Accounting Information for Amplifon S.p.A., taking into account the provisions of article § 154-bis, paragraphs 3 and 4 of Law no. 58/98, certify:

the adequacy, by reference to the characteristics of the business and
the effective application of the administrative and accounting procedures for the preparation of the condensed interim consolidated financial statements during the period 1 January – 30 September 2023.

We also certify that the condensed interim consolidated financial statements at 30 September 2023:

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.

Milan, October 30th, 2023

CEO Executive Responsible for Corporate Accounting Information

Enrico Vita Gabriele Galli

AI assistant

Amplifon — Interim / Quarterly Report 2023

4030_ir_2023-11-09_5b11b309-a7dc-4582-b71c-ccb5c8811886.pdf

PREFACE

INTERIM MANAGEMENT REPORT

AS AT 30 SEPTEMBER 2023

HIGHLIGHTS

MAIN ECONOMIC AND FINANCIAL FIGURES

INDICATORS

SHAREHOLDER INFORMATION

Main shareholders

RECLASSIFIED CONSOLIDATED INCOME STATEMENT

Interim Financial Report as at 30 September 2023 > Interim Management Report

RECLASSIFIED CONSOLIDATED BALANCE SHEET

CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT

INCOME STATEMENT REVIEW

Consolidated income statement by segment and geographic area

Revenues from sales and services

Europe, Middle-East and Africa

Asia Pacific

Gross operating profit (EBITDA)

Europe, Middle-East and Africa

Americas

Asia Pacific

Corporate

Operating profit (loss) (EBIT)

Europe, Middle-East and Africa

Americas

Asia Pacific

Corporate

Profit before taxes

Group net profit

BALANCE SHEET REVIEW

Consolidated balance sheet by geographical area (*)

Non-current assets

Europe, Middle-East and Africa

Americas

Asia Pacific

Net invested capital

Europe, Middle-East and Africa

Americas

Asia Pacific

Net financial indebtness

CASH FLOW STATEMENT

Interim Financial Report as at 30 September 2023 > Interim Management Report

ACQUISITION OF COMPANIES AND BUSINESSES

OUTLOOK

CONDENSED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS AS AT 30 SEPTEMBER 2023

CONSOLIDATED STATEMENT OF FINANCIAL POSITION(*)

CONSOLIDATED INCOME STATEMENT(*)

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

STATEMENT OF CONSOLIDATED CASH FLOWS

SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS

NOTES

1. General information

2. Impact of the conflict in Ukraine, in Middle East, and climate change on the Group's performance and financial position

3. Acquisitions and goodwill

Identification of the Groups of Cash Generating Units

4. Intangible fixed assets with finite useful life

5. Property, plant, and equipment

6. Right-of-use assets

7. Share capital

8. Net financial position

b. under the item "financial payables (current)".

9. Financial liabilities

- Eurobond 2020-2027

10. Provision for risk and charges

11. Lease liabilities

12. Revenues from sales and services

13. Operating costs, depreciation and impairment, financial income-expenses and taxes

14. Performance Stock Grant

Sustainable value sharing plan 2022-2027

15. Non-recurring significant events

16. Earnings (loss) per share

Basic Earnings (loss) per share

Diluted earnings (loss) per share

The diluted earnings per share were determined as follows:

17. Transactions with parents and other related parties

Amplifon Interim / Quarterly Report 2023

**Consolidated balance sheet by geographical area (*)**

**CONSOLIDATED STATEMENT OF FINANCIAL POSITION(*)**

**CONSOLIDATED INCOME STATEMENT(*)**

**Statement of Financial Position as at September 30th , 2023 (*)**

**Income Statement – First nine months 2023 (*)**

**Income Statement – First nine months 2022 (*)**