Amplifon — Interim / Quarterly Report 2024

Aug 5, 2024

PREFACE 4
INTERIM MANAGEMENT REPORT AS AT 30 JUNE 2024 5
HIGHLIGHTS 6
MAIN ECONOMIC AND FINANCIAL FIGURES 7
INDICATORS 8
SHAREHOLDER INFORMATION 10
RECLASSIFIED CONSOLIDATED INCOME STATEMENT 12
RECLASSIFIED BALANCE SHEET 15
CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT 17
INCOME STATEMENT REVIEW 18
BALANCE SHEET REVIEW 35
ACQUISITION OF COMPANIES AND BUSINESSES 46
OUTLOOK 47
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2024 51
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 51
CONSOLIDATED INCOME STATEMENT 53
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME 54
STATEMENT OF CHANGES IN CONSOLIDATION EQUITY 55
STATEMENT OF CONSOLIDATED CASH FLOWS 57
SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS 58
NOTES 59
1. General Information59

olled	EMAKKE SDIR
	CERTIFIED
une 20

2.	Impacts of the conflict in Middle-East, Ukraine and climate change on the Group's
	performance and financial position60
3.	Acquisitions and goodwill 61
4.	Intangible fixed assets with finite useful life63
5.	Property, plant, and equipment64
6.	Right-of-use assets65
7.	Other non-current assets66
8.	Share capital and treasury shares67
9.	Net financial indebtedness68
10.	Financial liabilities71
11.	Provision for risks and charges74
12.	Lease liabilities 75
13.	Revenues from sales and services75
14.	Operating costs, depreciation and impairment, financial income-expenses and taxes76
15.	Performance Stock Grant77
16.	Non-recurring significant events78
17.	Earnings (loss) per share 79
18.	Transactions with parents and other related parties 80
19.	Contingent liabilities 81
20.	Financial risk management 81
21.	Translation of foreign companies' financial statements82
22.	Segment reporting 83
23.	Accounting policies 88
24.	Subsequent events92
ANNEXES		93
	Consolidation scope	93
	Declaration in respect of the Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98	98
	INDEPENDENT AUDITOR'S REPORT ON REVIEW OF CONDENSED INTERIM CONSOLIDATED
	FINANCIAL STATEMENTS AS AT 30 JUNE 2024	99

Disclaimer

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

PREFACE

This Interim Financial Report as at 30 June 2024 was prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) endorsed by the European Union and should be read together with the Group's consolidated financial statements as at and for the year ended 31 December 2023 that includes additional information on the risks and uncertainties that could impact the Group's operating results or its financial position.

INTERIM MANAGEMENT REPORT AS AT

30 JUNE 2024

HIGHLIGHTS

In the first six months of 2024 Amplifon posted a significant increase in revenues across all geographies due to both an above-market organic growth and acquisitions, along with strong improvement in profitability thanks to the field productivity measures taken in the second half of last year.

(€ thousands)	First Half 2024		First Half 2023
	Recurring	Total	Recurring	Total
Economic figures:
Revenues from sales and services	1,177,251	1,177,251	1,113,770	1,113,770
Gross operating profit (loss) (EBITDA)	297,239	293,773	276,041	264,758
Operating profit (loss) (EBIT)	152,413	148,947	147,500	136,217
Profit (loss) before tax	124,898	121,432	123,782	112,499
Group net profit (loss)	90,280	87,793	89,344	81,357

The first six months of the year closed with:

• Turnover of €1,177,251 thousand, an increase of 5.7% compared to the same period of the prior year (+8.0% at constant exchange rates);
• a recurring gross operating margin (EBITDA) of €297,239 thousand, 10.9% higher than in the six months of 2023, with an EBITDA margin of 25.2% (+0.4 p.p. against the comparison period);
• recurring Group net profit of €90,280 thousand, an increase of €936 thousand (+1.0%) compared to the first six months of 2023.

Net financial debt, excluding lease liabilities, amounted to €1,009,285 thousand compared to €852,130 thousand at year-end 2023. Free cash flow reached a positive €46,822 thousand versus €76,110 thousand in the first six months of the prior year. The difference is explained mainly by higher taxes, rents and interest payable, along with greater absorption of working capital and increased capital expenditure (which amounted to €65,338 thousand in June 2024 versus €61,907 thousand in the comparison period). The significant net cash-outs for acquisitions of €142,737 thousand (versus €59,125 thousand in the first half of 2023), along with the €65,593 dividend payment (€65,361 thousand in the comparison period) and €5,695 thousand in positive flows generated by other non-current assets, bring cash flow for the reporting period to negative €155,814 thousand versus a negative €50,474 thousand in the first half of 2023.

MAIN ECONOMIC AND FINANCIAL FIGURES

(€ thousands)		First Half 2024			First Half 2023
		Non		% on revenues		Non		% on revenues	Change % on
Economic figures:	Recurring	recurring	Total	recurring	Recurring	recurring	Total	recurring	recurring
Revenues from sales and services	1,177,251	-	1,177,251	100.0%	1,113,770	-	1,113,770	100.0%	5.7%
Gross operating profit (loss) (EBITDA)	297,239	(3,466)	293,773	25.2%	276,041	(11,283)	264,758	24.8%	7.7%
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	177,766	(3,466)	174,300	15.1%	172,015	(11,283)	160,732	15.4%	3.3%
Operating profit (loss) (EBIT)	152,413	(3,466)	148,947	12.9%	147,500	(11,283)	136,217	13.2%	3.3%
Profit (loss) before tax	124,898	(3,466)	121,432	10.6%	123,782	(11,283)	112,499	11.0%	0.9%
Group net profit (loss)	90,280	(2,487)	87,793	7.7%	89,344	(7,987)	81,357	8.0%	1.0%

(€ thousands)	06/30/2024	12/31/2023	Change
Financial figures:
Non-current assets	3,171,318	2,976,387	194,931
Net invested capital	2,660,233	2,451,239	208,994
Group net equity	1,138,354	1,100,919	37,435
Total net equity	1,138,588	1,101,678	36,910
Net financial indebtedness	1,009,285	852,130	157,155
Lease liabilities	512,361	497,431	14,930
Total lease liabilities and net financial indebtedness	1,521,646	1,349,561	172,085

(€ thousands)	First Half 2024	First Half 2023
Free cash flow	46,822	76,110
Cash flow generated from (absorbed by) business combinations	(142,737)	(59,125)
Cash flow provided by (used in) financing activities	(59,899)	(67,459)
Net cash flow from the period	(155,814)	(50,474)
Effect of exchange rate fluctuations on the net financial position	(1,341)	(3,344)
Net cash flow from the period with changes for exchange rate fluctuations	(157,155)	(53,818)

• EBITDA is the operating result before charging amortization, depreciation, impairment of both tangible and intangible fixed assets and the right of use depreciation.
• EBITA is the operating result before amortization and impairment of customer lists, trademarks, non-competition agreements and other fixed assets arising from business combinations.
• EBIT is the operating result before financial income and charges and taxes.

- 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.

	06/30/2024	12/31/2023	06/30/2023
Net financial indebtedness (€ thousands)	1,009,285	852,130	883,811
Lease liabilities (€ thousands)	512,361	497,431	482,058
Total lease liabilities & net financial indebtedness (€ thousands)	1,521,646	1,349,561	1,365,869
Net equity (€ thousands)	1,138,588	1,101,678	1,041,591
Group Net Equity (€ thousands)	1,138,354	1,100,919	1,040,630
Net financial indebtedness/Net Equity	0.89	0.77	0.85
Net financial indebtedness/Group Net Equity	0.89	0.77	0.85
Net financial indebtedness/EBITDA	1.70	1.50	1.57
EBITDA/Net financial expenses	16.63	18.03	25.13
Earnings per share (EPS) (€)	0.38850	0.69285	0.36275
Diluted EPS (€)	0.38547	0.68809	0.35979
EPS (€) adjusted for non-recurring transactions and amortization/depreciation related to purchase price allocations to tangible and intangible assets	0.49544	0.91271	0.48454
Group Net Equity per share (€)	5.034	4.880	4.615
Period-end price (€)	33.24	31.34	33.59
Highest price in period (€)	35.14	36.27	36.27
Lowest price in period (€)	29.18	24.49	25.02
Share price/net equity per share	6.603	6.422	7.279
Market capitalization (€ millions)	7,518.35	7,074.89	7,574.32
Number of shares outstanding	226,183,821	225,746,472	225,493,237

INDICATORS

• 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, amortization/depreciation and impairment related to purchase price allocations to tangible and intangible assets (€) is the profit for the period from recurring operations attributable to the parent's ordinary shareholders divided by the weighted average number of outstanding shares in the period adjusted to reflect the amortization of purchase price allocations. When calculating the number of outstanding shares, the purchases and sales of treasury shares are considered cancellations and share issues, respectively.
• Net Equity per share (€) is the ratio of Group equity to the number of outstanding shares.
• Period-end price (€) is the closing price on the last stock exchange trading day of the period.
• Highest price (€) and lowest price (€) are the highest and lowest prices from 2 January to the end of the period.
• Share price/Net equity per share is the ratio of the share closing price on the last stock exchange trading day of the period to net equity per share.
• Market capitalization is the closing price on the last stock exchange trading day of the period multiplied by the number of outstanding shares.
• The number of shares outstanding is the number of shares issued less treasury shares.

SHAREHOLDER INFORMATION

Main shareholders

The main shareholders of Amplifon S.p.A. as at 30 June 2024 are:

Shareholder	No. of ordinary shares (*)	% held	% of the total share capital in voting rights
Ampliter S.r.l.	95,224,369	42.06%	59.13%
Treasury shares	204,799	0.09%	0.06%
Market	130,959,452	57.85%	40.81%
Total	226,388,620	100.00%	100.00%

(*) Number of shares related to the share capital registered with the Company registrar on 30 June 2024

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

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

The chart shows the performance of the Amplifon share price and its trading volumes from 30 December 2023 to 30 June 2024.

As at 30 June 2024 market capitalization was €7,518.35 million.

Dealings in Amplifon shares in the screen-based stock market Euronext Milano (EXM) during the period 30 December 2023 – 30 June 2024, showed:

• average daily value: €17,544,032;

• average daily volume: 544,170 shares;

• total volume traded of 70,742,150 shares, or 31.28% of the total number of shares comprising the share capital, net of treasury shares.

RECLASSIFIED CONSOLIDATED INCOME STATEMENT

(€ thousands)		First Half 2024			First Half 2023
	Recurring	Non recurring (*)	Total	% on recurring	Recurring	Non recurring (*)	Total	% on recurring	Change % on recurring
Revenues from sales and services	1,177,251	-	1,177,251	100.0%	1,113,770	-	1,113,770	100.0%	5.7%
Operating costs (**)	(884,219)	(3,466)	(887,685)	-75.2%	(842,483)	(11,283)	(853,766)	-75.6%	-5.0%
Other income and costs (**)	4,207	-	4,207	0.4%	4,754	-	4,754	0.4%	-11.5%
Gross operating profit (loss) (EBITDA)	297,239	(3,466)	293,773	25.2%	276,041	(11,283)	264,758	24.8%	7.7%
Depreciation, amortization and impairment losses on non-current assets	(55,420)	-	(55,420)	-4.7%	(45,351)	-	(45,351)	-4.1%	-22.2%
Right-of-use depreciation	(64,053)	-	(64,053)	-5.4%	(58,675)	-	(58,675)	-5.3%	-9.2%
Operating result before the amortization and impairment of PPA related assets (EBITA)	177,766	(3,466)	174,300	15.1%	172,015	(11,283)	160,732	15.4%	3.3%
PPA related depreciation, amortization and impairment	(25,353)	-	(25,353)	-2.2%	(24,515)	-	(24,515)	-2.2%	-3.4%
Operating profit (loss) (EBIT)	152,413	(3,466)	148,947	12.9%	147,500	(11,283)	136,217	13.2%	3.3%
Income, expenses, valuation and adjustments of financial assets	283	-	283	0.0%	207	-	207	0.0%	36.7%
Net financial expenses	(26,340)	-	(26,340)	-2.2%	(19,842)	-	(19,842)	-1.8%	-32.7%
Exchange differences, inflation accounting and Fair Value valuation	(1,458)	-	(1,458)	-0.1%	(4,083)	-	(4,083)	-0.4%	64.3%
Profit (loss) before tax	124,898	(3,466)	121,432	10.6%	123,782	(11,283)	112,499	11.0%	0.9%
Tax	(34,537)	979	(33,558)	-2.9%	(34,472)	3,296	(31,176)	-3.1%	-0.2%
Net profit (loss)	90,361	(2,487)	87,874	7.7%	89,310	(7,987)	81,323	7.9%	1.2%
Profit (loss) of minority interests	81	-	81	0.0%	(34)	-	(34)	0.0%	-
Net profit (loss) attributable to the Group	90,280	(2,487)	87,793	7.7%	89,344	(7,987)	81,357	8.0%	1.0%

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

(**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information.

(€ thousands)		Second Quarter 2024			Second Quarter 2023
	Recurring	Non recurring (*)	Total	% on recurring	Recurring	Non recurring (*)	Total	% on recurring	Change % on recurring
Revenues from sales and services	604,143	-	604,143	100.0%	573,517	-	573,517	100.0%	5.3%
Operating costs (**)	(444,624)	(2,371)	(446,995)	-73.6%	(422,288)	(3,391)	(425,679)	-73.5%	-5.4%
Other income and costs (**)	930	-	930	0.2%	1,277	-	1,277	0.2%	-27.2%
Gross operating profit (loss) (EBITDA)	160,449	(2,371)	158,078	26.6%	152,507	(3,391)	149,116	26.6%	5.2%
Depreciation, amortization and impairment losses on non-current assets	(28,035)	-	(28,035)	-4.7%	(23,361)	-	(23,361)	-4.1%	-20.0%
Right-of-use depreciation	(32,828)	-	(32,828)	-5.4%	(30,538)	-	(30,538)	-5.3%	-7.5%
Operating result before the amortization and impairment of PPA related assets (EBITA)	99,586	(2,371)	97,215	16.5%	98,608	(3,391)	95,217	17.2%	1.0%
PPA related depreciation, amortization and impairment	(12,901)	-	(12,901)	-2.2%	(12,566)	-	(12,566)	-2.2%	-2.7%
Operating profit (loss) (EBIT)	86,685	(2,371)	84,314	14.3%	86,042	(3,391)	82,651	15.0%	0.7%
Income, expenses, valuation and adjustments of financial assets	282	-	282	0.0%	81	-	81	0.0%	248.1%
Net financial expenses	(12,629)	-	(12,629)	-2.0%	(9,425)	-	(9,425)	-1.5%	-34.0%
Exchange differences, inflation accounting and Fair Value valuation	(713)	-	(713)	-0.1%	(2,426)	-	(2,426)	-0.4%	70.6%
Profit (loss) before tax	73,625	(2,371)	71,254	12.2%	74,272	(3,391)	70,881	13.1%	-0.9%
Tax	(19,396)	688	(18,708)	-3.2%	(19,806)	989	(18,817)	-3.6%	2.1%
Net profit (loss)	54,229	(1,683)	52,546	8.9%	54,466	(2,402)	52,064	9.5%	-0.4%
Profit (loss) of minority interests	(383)	-	(383)	-0.1%	7	-	7	0.0%	-
Net profit (loss) attributable to the Group	54,612	(1,683)	52,929	9.0%	54,459	(2,402)	52,057	9.5%	0.3%

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

(**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information.

The costs relating to the non-recurring transactions highlighted above relate specifically to:

• for €1,738 thousand, the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily tax, legal and financial consultancies, as well as the expenses related to the organization of the Extraordinary Shareholders Meeting held on 30 April 2024;
• for €920 thousand, the notional cost of the free, one-off assignment made by the shareholder Ampliter of its Amplifon shares to the Chief Executive Officer recognized in the reporting period in accordance with IFRS 2 "Share Based Payments";
• for €723 thousand, the second phase of the GAES integration;
• for €85 thousand, the Bay Audio integration in Australia.

(€ thousands)	First Half 2024	First Half 2023
Costs incurred to define and implement amendments to the Articles of Association including the enhanced voting rights	(1,738)	-
Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO	(920)	(10,394)
GAES second phase integration costs	(723)	(889)
Bay Audio integration costs	(85)	-
Impact of the non-recurring items on EBITDA	(3,466)	(11,283)
Impact of the non-recurring items on EBIT	(3,466)	(11,283)
Impact of the non-recurring items on profit before tax	(3,466)	(11,283)
Impact of the above items on the tax burden for the period	979	3,296
Impact of the non-recurring items on net profit	(2,487)	(7,987)

(€ thousands)	Q2 2024	Q2 2023
Costs incurred to define and implement amendments to the Articles of Association including the enhanced voting rights	(1,738)	-
Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO	(412)	(3,099)
GAES second phase integration costs	(155)	(292)
Bay Audio integration costs	(66)	-
Impact of the non-recurring items on EBITDA	(2,371)	(3,391)
Impact of the non-recurring items on EBIT	(2,371)	(3,391)
Impact of the non-recurring items on profit before tax	(2,371)	(3,391)
Impact of the above items on the tax burden for the period	688	989
Impact of the non-recurring items on net profit	(1,683)	(2,402)

RECLASSIFIED BALANCE SHEET

The reclassified Consolidated Balance Sheet aggregates assets and liabilities according to operating functionality criteria, subdivided by convention into the following three key functions: investments, operations and finance.

(€ thousands)	06/30/2024	12/31/2023	Change
Goodwill	1,922,878	1,799,574	123,304
Customer lists, non-compete agreements, trademarks and location rights	271,007	255,683	15,324
Software, licenses, other int.ass, wip and advances	162,003	160,906	1,097
Property, plant, and equipment	237,412	221,516	15,896
Right of use assets	492,790	478,153	14,637
Fixed financial assets (1)	30,090	16,704	13,386
Other non-current financial assets (1)	44,438	43,851	587
Total fixed assets	3,160,618	2,976,387	184,231
Inventories	83,063	88,320	(5,257)
Trade receivables	215,274	231,253	(15,979)
Other receivables	142,502	107,042	35,460
Current assets (A)	440,839	426,615	14,224
Total assets	3,601,457	3,403,002	198,455
Trade payables	(321,669)	(358,955)	37,286
Other payables (2)	(358,468)	(379,290)	20,822
Provision for risks (current portion)	(1,828)	(1,268)	(560)
Short term liabilities (B)	(681,965)	(739,513)	57,548
Net working capital (A) - (B)	(241,126)	(312,898)	71,772
Derivative instruments (3)	10,480	12,933	(2,453)
Deferred tax assets	78,358	82,701	(4,343)
Deferred tax liabilities	(102,871)	(98,451)	(4,420)
Provisions for risks (non-current portion)	(20,716)	(19,379)	(1,337)
Employee benefits (non-current portion)	(12,357)	(12,963)	606
Loan fees (4)	2,392	3,007	(615)
Other long-term payables	(214,545)	(180,098)	(34,447)
NET INVESTED CAPITAL	2,660,233	2,451,239	208,994
Shareholders' equity	1,138,354	1,100,919	37,435
Third parties' equity	233	759	(526)
Net equity	1,138,587	1,101,678	36,909
Medium/Long term net financial debt (4)	678,136	719,428	(41,292)
Short term net financial debt (4)	331,149	132,702	198,447
Total net financial debt	1,009,285	852,130	157,155
Lease liabilities	512,361	497,431	14,930
Total lease liabilities & net financial debt	1,521,646	1,349,561	172,085
NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT	2,660,233	2,451,239	208,994

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 Half 2024	First Half 2023
Operating profit (loss) (EBIT)	148,947	136,217
Amortization, depreciation and write-downs	144,826	128,541
Provisions, other non-monetary items and gain/losses from disposals	9,554	21,028
Net financial expenses	(25,134)	(20,732)
Taxes paid	(44,208)	(31,660)
Changes in net working capital	(58,257)	(39,225)
Cash flow provided by (used in) operating activities before repayment of lease liabilities	175,728	194,169
Repayment of lease liabilities	(63,568)	(56,152)
Cash flow provided by (used in) operating activities (A)	112,160	138,017
Cash flow provided by (used in) operating investing activities (B)	(65,338)	(61,907)
Free Cash Flow (A) + (B)	46,822	76,110
Net cash flow provided by (used in) acquisitions (C)	(142,737)	(59,125)
Cash flow provided by (used in) investing activities (B) + (C)	(208,075)	(121,032)
Cash flow provided by (used in) operating activities and investing activities	(95,915)	16,985
Dividends	(65,593)	(65,361)
Treasury Shares	-	-
Fees paid on medium/long-term financing	(105)	-
Hedging instruments	-	(1,483)
Change in non-current assets	5,799	(615)
Net cash flow from the period	(155,814)	(50,474)
Net financial indebtedness at the beginning of the period net of lease liabilities	(852,130)	(829,993)
Effect of exchange rate fluctuations on net financial debt	(1,341)	(3,344)
Changes in net financial debt	(155,814)	(50,474)
Net financial indebtedness at the end of the period net of lease liabilities	(1,009,285)	(883,811)

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

(€ thousands)	First Half 2024	First Half 2023
Free cash flow	46,822	76,110
Free cash flow generated by non-recurring transactions (see page 45 for details)	(830)	(2,380)
Free cash flow generated by recurring transactions	47,622	78,490

INCOME STATEMENT REVIEW

Consolidated income statement by segment and geographic area

(€ thousands)	First Half 2024
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	757,467	240,418	179,185	181	1,177,251
Operating costs	(533,912)	(180,528)	(131,935)	(41,310)	(887,685)
Other income and costs	2,184	1,821	(95)	297	4,207
Gross operating profit (loss) (EBITDA)	225,739	61,711	47,155	(40,832)	293,773
Depreciation, amortization and impairment of non-current assets	(23,522)	(8,942)	(9,502)	(13,454)	(55,420)
Right-of-use depreciation	(41,455)	(6,985)	(14,437)	(1,176)	(64,053)
Operating result before the amortization and impairment of PPA related assets (EBITA)	160,762	45,784	23,216	(55,462)	174,300
PPA related depreciation, amortization and impairment	(17,196)	(2,133)	(6,024)	-	(25,353)
Operating profit (loss) (EBIT)	143,566	43,651	17,192	(55,462)	148,947
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	283
Net financial expenses	-	-	-	-	(26,340)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	(1,458)
Profit (loss) before tax	-	-	-	-	121,432
Tax	-	-	-	-	(33,558)
Net profit (loss)	-	-	-	-	87,874
Profit (loss) of minority interests	-	-	-	-	81
Net profit (loss) attributable to the Group	-	-	-	-	87,793

(€ thousands)	First Half 2024 – Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	757,467	240,418	179,185	181	1,177,251
Gross operating profit (loss) (EBITDA)	226,462	61,711	47,240	(38,174)	297,239
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	161,485	45,784	23,301	(52,804)	177,766
Operating profit (loss) (EBIT)	144,289	43,651	17,277	(52,804)	152,413
Profit (loss) before tax	-	-	-	-	124,898
Net profit (loss)	-	-	-	-	90,361
Net profit (loss) attributable to the Group	-	-	-	-	90,280

(€ thousands)	First Half 2023
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	735,482	212,661	165,381	246	1,113,770
Operating costs (*)	(521,746)	(157,095)	(122,773)	(52,152)	(853,766)
Other income and costs (*)	2,753	1,538	14	449	4,754
Gross operating profit (loss) (EBITDA)	216,489	57,104	42,622	(51,457)	264,758
Depreciation, amortization and impairment of non-current assets	(20,283)	(6,061)	(7,200)	(11,807)	(45,351)
Right-of-use depreciation	(38,673)	(5,390)	(13,479)	(1,133)	(58,675)
Operating result before the amortization and impairment of PPA related assets (EBITA)	157,533	45,653	21,943	(64,397)	160,732
PPA related depreciation, amortization and impairment	(16,316)	(2,260)	(5,897)	(42)	(24,515)
Operating profit (loss) (EBIT)	141,217	43,393	16,046	(64,439)	136,217
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	207
Net financial expenses	-	-	-	-	(19,842)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	(4,083)
Profit (loss) before tax	-	-	-	-	112,499
Tax	-	-	-	-	(31,176)
Net profit (loss)	-	-	-	-	81,323
Profit (loss) of minority interests	-	-	-	-	(34)
Net profit (loss) attributable to the Group	-	-	-	-	81,357

(*) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information.

(€ thousands)	First Half 2023 – Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	735,482	212,661	165,381	246	1,113,770
Gross operating profit (loss) (EBITDA)	217,378	57,104	42,622	(41,063)	276,041
Operating result before the amortization and impairment of PPA related assets (EBITA)	158,422	45,653	21,942	(54,002)	172,015
Operating profit (loss) (EBIT)	142,106	43,393	16,046	(54,045)	147,500
Profit (loss) before tax	-	-	-	-	123,782
Net profit (loss)	-	-	-	-	89,310
Net profit (loss) attributable to the Group	-	-	-	-	89,344

(€ thousands)	Second Quarter 2024
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	381,409	129,597	93,021	116	604,143
Operating costs	(264,170)	(95,212)	(69,959)	(17,654)	(446,995)
Other income and costs	(233)	1,086	(69)	146	930
Gross operating profit (loss) (EBITDA)	117,006	35,471	22,993	(17,392)	158,078
Depreciation, amortization and impairment of non-current assets	(11,828)	(4,613)	(4,806)	(6,788)	(28,035)
Right-of-use depreciation	(20,907)	(3,615)	(7,712)	(594)	(32,828)
Operating result before the amortization and impairment of PPA related assets (EBITA)	84,271	27,243	10,475	(24,774)	97,215
PPA related depreciation, amortization and impairment	(8,661)	(1,188)	(3,052)	-	(12,901)
Operating profit (loss) (EBIT)	75,610	26,055	7,423	(24,774)	84,314
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	282
Net financial expenses	-	-	-	-	(12,629)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	(713)
Profit (loss) before tax	-	-	-	-	71,254
Tax	-	-	-	-	(18,708)
Net profit (loss)	-	-	-	-	52,546
Profit (loss) of minority interests	-	-	-	-	(383)
Net profit (loss) attributable to the Group	-	-	-	-	52,929

(€ thousands)	Second Quarter 2024 – Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	381,409	129,597	93,021	116	604,143
Gross operating profit (loss) (EBITDA)	117,161	35,471	23,059	(15,242)	160,449
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	84,426	27,243	10,542	(22,625)	99,586
Operating profit (loss) (EBIT)	75,765	26,055	7,490	(22,625)	86,685
Profit (loss) before tax	-	-	-	-	73,625
Net profit (loss)	-	-	-	-	54,229
Net profit (loss) attributable to the Group	-	-	-	-	54,612

(€ thousands)	Second Quarter 2023
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	375,775	111,797	85,786	159	573,517
Operating costs (*)	(260,580)	(78,355)	(64,822)	(21,661)	(427,962)
Other income and costs (*)	1,870	(2,322)	(83)	398	3,352
Gross operating profit (loss) (EBITDA)	117,065	32,274	20,881	(21,104)	149,116
Depreciation, amortization and impairment of non-current assets	(10,269)	(2,906)	(3,764)	(6,422)	(23,361)
Right-of-use depreciation	(19,741)	(2,719)	(7,512)	(566)	(30,538)
Operating result before the amortization and impairment of PPA related assets (EBITA)	87,055	26,649	9,605	(28,092)	95,217
PPA related depreciation, amortization and impairment	(8,245)	(1,383)	(2,917)	(21)	(12,566)
Operating profit (loss) (EBIT)	78,810	25,266	6,688	(28,113)	82,651
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	81
Net financial expenses	-	-	-	-	(9,425)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	(2,426)
Profit (loss) before tax	-	-	-	-	70,881
Tax	-	-	-	-	(18,817)
Net profit (loss)	-	-	-	-	52,064
Profit (loss) of minority interests	-	-	-	-	7
Net profit (loss) attributable to the Group	-	-	-	-	52,057

(*) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information.

(€ thousands)	Second Quarter 2023 – Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	375,774	111,798	85,786	159	573,517
Gross operating profit (loss) (EBITDA)	117,357	32,274	20,881	(18,005)	152,507
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	87,346	26,649	9,605	(24,992)	98,608
Operating profit (loss) (EBIT)	79,101	25,266	6,689	(25,014)	86,042
Profit (loss) before tax	-	-	-	-	74,272
Net profit (loss)	-	-	-	-	54,466
Net profit (loss) attributable to the Group	-	-	-	-	54,459

Revenues from sales and services

(€ thousands)	First Half 2024	First Half 2023	Change	Change %
Revenues from sales and services	1,177,251	1,113,770	63,481	5.7%
(€ thousands)	Second Quarter 2024	Second Quarter 2023	Change	Change %
Revenues from sales and services	604,143	573,517	30,626	5.3%

Consolidated revenues from sales and services amounted to €1,177,251 thousand in the first six months of 2024, an increase of €63,481 thousand (+5.7%) with respect to the first half of prior year.

The increase against the first half of 2023 is explained for €50,412 thousand (+4.6%) by organic growth and for €38,301 thousand (+3.4%) by acquisitions. The foreign exchange effect was negative for €25,232 thousand (-2.3%).

Revenues of the Argentine subsidiary were impacted by the inflation accounting used pursuant to IAS 29 (Inflation Accounting), which had a positive impact of 0.3% on the Group's organic growth and a negative impact on the exchange rate effect.

The performance was positive in all the geographic areas, but reflects the different market dynamics: EMEA was impacted by what continues to be a soft market; AMERICAs was confirmed as the area with the highest organic growth, even though the market was slower than in the first quarter in the year; APAC reported strong revenue growth to which all the area's countries contributed.

In the second quarter alone, consolidated revenues from sales and services amounted to €604,143 thousand, an increase of €30,626 thousand (+5.3%) compared to the second quarter of 2023, explained for €20,015 thousand (+3.5%) by organic growth and for €21,078 thousand (+3.6%) by acquisitions while the foreign exchange effect was negative for €10,467 thousand (- 1.8%).

		% for		% for				Change % in
	H1	geographic	H1	geographic				local
(€ thousands)	2024	area	2023	area	Change	Change %	Exchange diff.	currency
EMEA	757,467	64.4%	735,482	66.0%	21,985	3.0%	854	2.9%
Americas	240,418	20.4%	212,661	19.1%	27,757	13.1%	(21,375)	23.2%
Asia Pacific	179,185	15.2%	165,381	14.9%	13,804	8.3%	(4,711)	11.2%
Corporate	181	0.0%	246	0.0%	(65)	-26.4%	-	-26.4%
Total	1,177,251	100.0%	1,113,770	100.0%	63,481	5.7%	(25,232)	8.0%

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

Europe, Middle-East, Africa

Period (€ thousand)	2024	2023	Change	Change %
I quarter	376,058	359,707	16,351	4.5%
II quarter	381,409	375,775	5,634	1.5%
I Half Year	757,467	735,482	21,985	3.0%

Consolidated revenues from sales and services amounted to €757,467 thousand in the first six months of 2024, an increase of €21,985 thousand (+3.0%) compared to the same period of the prior year, of which €8,182 thousand (+1.1%) is attributable to organic growth. Acquisitions contributed €12,949 thousand (+1.8%) and exchange differences had a positive impact of €854 thousand (+0.1%).

In the second quarter the organic performance reflected the general softness of the reference market, and especially of the French one, as well as some contingent operational challenges, now resolved, in Spain. The other countries of the area recorded a solid performance.

In the second quarter alone, consolidated revenues from sales and services amounted to €381,409 thousand, an increase of €5,634 thousand (+1.5%) against the comparison period. This increase is explained mainly by acquisitions which contributed €7,741 thousand (+2.1%), while organic growth was negative for €2,098 thousand (-0.6%) and exchange differences were slightly negative at €9 thousand.

Americas

Period (€ thousand)	2024	2023	Change	Change %
I quarter	110,821	100,864	9,957	9.9%
II quarter	129,597	111,797	17,800	15.9%
I Half Year	240,418	212,661	27,757	13.1%

Consolidated revenues from sales and services amounted to €240,418 thousand in the first six months of 2024, an increase of €27,757 thousand (+13.1%) compared to the first half of 2023, attributable for €30,313 thousand (+14.4%) to organic growth which was fueled primarily by the outstanding performance of Miracle-Ear Direct Retail and Amplifon Hearing Health Care and for €18,819 thousand (+8.8%) by acquisitions which includes the Uruguayan subsidiaries which were consolidated for the first time. The foreign exchange effect was negative for €21,375 thousand (-10.1%).

Revenues of the Argentine subsidiary were impacted by high inflation accounting used in accordance with IAS 29 (Inflation Accounting), which had a positive impact of 1.5% on organic growth and a negative impact on the exchange effect.

In the second quarter alone, consolidated revenues from sales and services amounted to 129,597 thousand, an increase of €17,800 thousand (+15.9%) against the comparison period attributable for 17,193 thousand (+15.4%) to organic growth and for €10,477 thousand (+9.3%) to acquisitions. The exchange effect was negative for €9,870 thousand (-8.8%).

Period (€ thousand)	2024	2023	Change	Change %
I quarter	86,164	79,595	6,569	8.3%
II quarter	93,021	85,786	7,235	8.4%
I Half Year	179,185	165,381	13,804	8.3%

Asia Pacific

Revenues from sales and services amounted to €179,185 thousand in the first six months of 2024, an increase of €13,804 thousand (+8.3%) compared to the same period of 2023 explained for €11,982 thousand (+7.2%) by organic growth and for €6,533 thousand (+4.0%) by acquisitions made in China. The foreign exchange effect was negative for €4,711 thousand (-2.9%).

In the second quarter alone, revenues from sales and services amounted to €93,021 thousand, an increase of €7,235 thousand (+8.4%) attributable for €4,962 thousand (+5.8%) to organic growth and for €2,860 thousand (+3.3%) to acquisitions while the foreign exchange effect was negative for €588 thousand (-0.7%).

Gross operating profit (EBITDA)

(€ thousand)	First Half 2024			First Half 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Gross operating profit (loss) (EBITDA)	297,239	(3,466)	293,773	276,041	(11,283)	264,758
(€ thousand)	Second Quarter 2024		Second Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Gross operating profit (loss) (EBITDA)	160,449	(2,371)	158,078	152,507	(3,391)	149,116

Gross operating profit (EBITDA) amounted to €293,773 thousand in the first six months of 2024, an increase of €29,015 thousand (+11.0%) with respect to the comparison period. The EBITDA margin came to 25.0%, 1.2 p.p. higher than in the comparison period.

The costs relating to the non-recurring transactions highlighted above relate specifically:

• for €1,738 thousand, the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily tax, legal and financial consultancies, as well as the expenses related to the organization of the Extraordinary Shareholders Meeting held on 30 April 2024;
• for €920 thousand, the notional cost of the free, one-off assignment made by the shareholder Ampliter of its Amplifon shares to the Chief Executive Officer recognized in the reporting period in accordance with IFRS 2 "Share Based Payments";
• for €723 thousand, the second phase of the GAES integration;
• for €85 thousand, the Bay Audio integration in Australia.

In the first six months of 2023 non-recurring expenses amounted to €11,283 thousand. Net of these items, EBITDA would have been €21,198 thousand (+7.7%) higher than in the first six months of 2023 with the EBITDA margin up +0.4 p.p.

In the second quarter alone, EBITDA amounted to €158,078 thousand (26.2% of revenues from sales and services), an increase of €8,962 thousand (+6.0%) against the comparison period with a 0.2 p.p. increase in the EBITDA margin.

The result for the quarter reflects non-recurring expenses of €2,371 thousand attributable:

• for €1,738 thousand, the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily the tax, legal and financial advisory, as well as the expenses related to the organization of the Extraordinary Shareholders Meeting held on 30 April 2024;
• for €412 thousand, the notional cost of the free, one-off assignment made by the shareholder Ampliter of its Amplifon shares to the Chief Executive Officer recognized in the reporting period in accordance with IFRS 2 "Share Based Payments";

• for €155 thousand, the second phase of the GAES integration;
• for €66 thousand, the Bay Audio integration in Australia.

In the second quarter of 2023 non-recurring expenses amounted to €3,391 thousand.

Net of this item, recurring EBITDA would have been €7,941 thousand (+5.2%) higher than in the second quarter of 2023 with the EBITDA margin in line with the comparison period.

The breakdown of EBITDA by geographic region is shown below.

(€ thousands)	H1 2024	EBITDA Margin	H1 2023	EBITDA Margin	Change	Change %
EMEA	225,739	29.8%	216,489	29.4%	9,250	4.3%
Americas	61,711	25.7%	57,104	26.9%	4,607	8.1%
Asia Pacific	47,155	26.3%	42,622	25.8%	4,533	10.6%
Corporate (*)	(40,832)	-3.5%	(51,457)	-4.6%	10,625	20.6%
Total	293,773	25.0%	264,758	23.8%	29,015	11.0%
(€ thousands)	Q2 2024	EBITDA Margin	Q2 2023	EBITDA Margin	Change	Change %
EMEA	117,006	30.7%	117,065	31.2%	(59)	-0.1%
Americas	35,471	27.4%	32,274	28.9%	3,197	9.9%
Asia Pacific	22,993	24.7%	20,881	24.3%	2,112	10.1%
Corporate (*)	(17,392)	-2.9%	(21,104)	-3.7%	3,712	17.6%

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

The breakdown of recurring EBITDA by geographic region is shown below.

(€ thousands)	H1 2024	EBITDA Margin	H1 2023	EBITDA Margin	Change	Change %
EMEA	226,462	29.9%	217,378	29.6%	9,084	4.2%
Americas	61,711	25.7%	57,104	26.9%	4,607	8.1%
Asia Pacific	47,240	26.4%	42,622	25.8%	4,618	10.8%
Corporate (*)	(38,174)	-3.2%	(41,063)	-3.7%	2,889	7.0%
Total	297,239	25.2%	276,041	24.8%	21,198	7.7%
(€ thousands)	Q2 2024	EBITDA Margin	Q2 2023	EBITDA Margin	Change	Change %
EMEA	117,161	30.7%	117,357	31.2%	(196)	-0.2%
Americas	35,471	27.4%	32,274	28.9%	3,197	9.9%
Asia Pacific	23,059	24.8%	20,881	24.3%	2,178	10.4%
Corporate (*)	(15,242)	-2.5%	(18,005)	-3.1%	2,762	15.3%

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

Europe, Middle-East, Africa

Gross operating profit (EBITDA) amounted to €225,739 thousand in the first six months of 2024, an increase of €9,250 thousand (+4.3%) with respect to the comparison period. The EBITDA margin came to 29.8 %, an increase of 0.4 p.p. compared to the first half of 2023.

The result for the reporting period was impacted for €723 thousand by non-recurring expenses relating to the second phase of the GAES integration.

In the first six months of 2023 non-recurring expenses amounted to €889 thousand.

Net of this item, EBITDA would have been €9,084 thousand higher (+4.2%) than in the first six months of 2023 with the EBITDA margin up +0.3 p.p.

In the second quarter alone, EBITDA amounted to €117,006 thousand, a decrease against the comparison period of €59 thousand (-0.1%). The EBITDA margin was 0.5 p.p. lower than in comparison period coming in at 30.7%.

The result for the quarter was impacted for €155 thousand by non-recurring expenses relating to the second phase of the GAES integration.

In the second quarter of 2023 non-recurring expenses amounted to €291 thousand.

Net of this item, recurring EBITDA would have been €196 thousand (-0.2%) lower compared to the second quarter of 2023 with the EBITDA margin down -0.5 p.p.

Americas

Gross operating profit (EBITDA) amounted to €61,711 thousand in the first six months of 2024, an increase of €4,607 thousand (+8.1%) with respect to the comparison period. The EBITDA margin came to 25.7 %, down 1.2 p.p. against the second quarter of 2023. In the second quarter alone EBITDA came to €35,471 thousand, an increase of €3,197 thousand (+9.9%) against the comparison period.

The EBITDA margin was 1.5 p.p. lower than in the comparison period, coming in at 27.4%.

Asia Pacific

Gross operating profit (EBITDA) amounted to €47,155 thousand in the first six months of 2024, an increase of €4,533 thousand (+10.6%) with respect to the comparison period. The EBITDA margin came to 26.3 %, +0.5 p.p. higher than in the first half of 2023.

Non-recurring expenses of €85 thousand were incurred in the reporting period.

Net of this item, EBITDA would have been €4,618 thousand higher (+10.8%) with the EBITDA margin up +0.6 p.p.

In the second quarter alone EBITDA amounted to €22,993 thousand, an increase of €2,112 thousand (+10.1%) with respect to the comparison period.

The EBITDA margin reached 24.7%, an increase of +0.4 p.p. against the comparison period.

In the second quarter of 2024 non-recurring expenses amounted to €66 thousand.

Net of these items, recurring EBITDA would have been €2,178 thousand (+10.4%) higher with the EBITDA margin up +0.5 p.p.

Corporate

In the first six months of 2024 the net cost of centralized corporate functions (corporate bodies, general management, business development, procurement, treasury, legal affairs, human resources, IT systems, global marketing and internal audit) which do not qualify as operating segments under IFRS 8 amounted to €40,832 thousand, a decrease of €10,625 thousand (20.6%) with respect to the same period of the prior year. The EBITDA margin was 3.5 p.p. (1.1.p.p. higher than in the first six months of 2023).

The result for the reporting period reflects the non-recurring expenses of €2,658 thousand explained for €1,738 thousand by the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, comprising primarily the tax, legal and financial consultancies, and for €902 thousand the by the notional cost recognized in the reporting period in accordance with IFRS 2 "Share Based Payments".

In the first six months of 2023 non-recurring expenses of €10,394 thousand were also recognized.

Net of these items, costs would have been €2,889 thousand (7.0%) lower than in the first six months of 2023, with the margin down by 0.5. p.p.

In the second quarter, the net cost for corporate functions amounted to €17,392 thousand (2.9% of the Group's revenues from sales and services), a decrease of € 3,712 thousand (-17.6%) compared to the second quarter of 2023.

The result for the second quarter was impacted for €2,150 thousand by non-recurring expenses explained for €1,738 thousand by the costs incurred to define and implement the amendments to the Articles of Incorporation, including the enhanced voting rights, including the enhanced voting rights and for €412 thousand the notional cost recognized in the reporting period in accordance with IFRS 2 "Share Based Payments".

Net of these items, costs would have been €2,763 thousand (15.3%) lower than in the second quarter of 2023, with the margin down by 0.6. p.p.

Operating Profit (EBIT)

(€ thousand)	First Half 2024			First Half 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Operating profit (loss) (EBIT)	152,413	(3,466)	148,947	147,500	(11,283)	136,217
(€ thousand)		Second Quarter 2024			Second Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Operating profit (loss) (EBIT)	86,685	(2,371)	84,314	86,042	(3,391)	82,651

Operating profit (EBIT) amounted to €148,947 thousand in the first six months of 2024, an increase of €12,730 thousand (+9.3%) with respect to the comparison period.

The EBIT margin came to 12.7%, an increase of 0.5 p.p. against the comparison period.

The reporting period was impacted for €3,466 thousand by the same non-recurring expenses described in the section on EBITDA. In the first six months of 2023 non-recurring expenses amounted to €11,283 thousand. Net of these items, EBIT would have been €4,914 thousand higher (+3.3%) than in the first six months of 2023, with the EBIT margin down -0.3 p.p.

With respect to the gross operating profit (EBITDA), EBIT was also impacted by an increase in amortization and depreciation stemming from network expansion, the investments made in innovation and digital transformation, as well as higher amortization for the right of use assets and the initial recognition of assets in accordance with Purchase Price Allocation accounting.

In the second quarter alone operating profit (EBIT) amounted to €84,314 thousand, an increase of €1,664 thousand (+2.0%) with respect to the comparison period. The EBIT margin came to 14.0%, 0.4 p.p. lower in the comparison period.

The reporting period was impacted for €2,371 thousand by the same non-recurring expenses described in the section on EBITDA. In the second quarter of 2023 non-recurring expenses amounted to €3,391 thousand. Net of this item, recurring EBIT would have been €644 thousand higher (+0.7%) than in the second quarter of 2023, with the EBIT margin down -0.7 p.p.

(€ thousands)	H1 2024	EBIT Margin	H1 2023	EBIT Margin	Change	Change %
EMEA	143,566	19.0%	141,217	19.2%	2,349	1.7%
Americas	43,651	18.2%	43,393	20.4%	258	0.6%
Asia Pacific	17,192	9.6%	16,046	9.7%	1,146	7.1%
Corporate (*)	(55,462)	-4.7%	(64,439)	-5.8%	8,977	13.9%
Total	148,947	12.7%	136,217	12.2%	12,730	9.3%
(€ thousand)	Q2 2024	EBIT Margin	Q2 2023	EBIT Margin	Change	Change %
EMEA	75,610	19.8%	78,810	21.0%	(3,199)	-4.1%
Americas	26,055	20.1%	25,266	22.6%	789	3.1%
Asia Pacific	7,423	8.0%	6,688	7.8%	735	11.0%
Corporate (*)	(24,774)	-4.1%	(28,113)	-4.9%	3,339	11.9%
Total	84,314	14.0%	82,651	14.4%	1,664	2.0%

The breakdown of EBIT by geographic area is shown below.

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

The breakdown of EBIT by geographic area with reference to recurring operations is shown below.

	H1	EBIT	H1	EBIT Margin	Change	Change %
(€ thousands)	2024	Margin	2023
EMEA	144,289	19.0%	142,106	19.3%	2,183	1.5%
Americas	43,651	18.2%	43,393	20.4%	258	0.6%
Asia Pacific	17,277	9.6%	16,046	9.7%	1,231	7.7%
Corporate (*)	(52,804)	-4.5%	(54,045)	-4.9%	1,241	2.3%
Total	152,413	12.9%	147,500	13.2%	4,913	3.3%
	Q2	EBIT	Q2
(€ thousand)	2024	Margin	2023	EBIT Margin	Change	Change %
EMEA	75,765	19.9%	79,101	21.1%	(3,336)	-4.2%
Americas	26,055	20.1%	25,266	22.6%	789	3.1%
Asia Pacific	7,490	8.1%	6,689	7.8%	801	12.0%
Corporate (*)	(22,625)	-3.7%	(25,014)	-4.4%	2,389	9.6%

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

Europe, Middle East, Africa

Operating profit (EBIT) amounted to €143,566 thousand in the first six months of 2024, an increase of €2,349 thousand (+1.7%) with respect to the comparison period. The EBIT margin came to 19.0%, 0.2 p.p. lower than in the comparison period.

The result was impacted for €723 thousand by the same non-recurring expenses described in the section on EBITDA. In the first six months of 2023 non-recurring expenses amounted to €889 thousand.

Net of these items, EBIT would have been €2,183 thousand higher (+1.5%) than in the first six months of 2023, with the EBIT margin down 0.3 p.p.

In the second quarter alone, EBIT was €3,199 thousand (-4.1%) lower than in the comparison period, coming in at €75,610 thousand. The EBIT margin came to 19.8%, 1.2 p.p. lower than in the comparison period.

The result was impacted for €155 thousand by the same non-recurring expenses described in the section on EBITDA. In the second quarter of 2023 non-recurring expenses amounted to €291 thousand.

Net of this item, recurring EBIT would have been €3,336 thousand lower (-4.2%) than in the second quarter of 2023, with the EBIT margin down 1.2 p.p.

Americas

Operating profit (EBIT) amounted to €43,651 thousand in the first six months of 2024, an increase of €258 thousand (+0.6%) with respect to the comparison period. The EBIT margin was 2.2 p.p. lower than in the first half of 2023, coming in at 18.2%.

In the second quarter alone, EBIT rose €789 thousand (+3.1%) to €26,055. The EBIT margin was 2.5 p.p. lower at 20.1%.

Asia Pacific

Operating profit (EBIT) amounted to €17,192 thousand in the first six months of 2024, an increase of €1,146 thousand (+7.1%) with respect to the comparison period. The EBIT margin came to 9.6%, 0.1 p.p. lower than in the half of 2023.

The result of the period was impacted for €85 thousand by the same non-recurring expenses described in the section on EBITDA.

Net of these items, EBIT would have been €1,231 thousand higher (+7.7%), with the EBIT margin down 0.1 p.p.

In the second quarter alone, operating profit (EBIT) amounted to €7,423 thousand, an increase of €735 thousand (+11.0%) with respect to the comparison period. The EBIT margin came to 8.0%, 0.2 p.p. higher than in the second quarter of 2023.

The result for the second quarter of 2024 was impacted for €66 thousand by the same nonrecurring expenses described in the section on EBITDA.

Net of these items, EBIT would have been €801 thousand higher (+12.0%), with the EBIT margin up 0.3 p.p.

Corporate

The net Corporate costs at the EBIT level amounted to €55,462 thousand in the first six months of 2024 (-4.7% of the revenues generated by the Group's sales and services), a decrease of €8,977 thousand against the first half of 2023.

The result posted in the reporting period was impacted for €2,658 thousand by the same nonrecurring expenses described in the section on EBITDA. In the first half of 2023 non-recurring expenses amounted to €10,394 thousand.

Net of these items, the costs would have been €1,241 thousand lower (-4.5%) with the margin down 0.4 p.p.

In the second quarter alone, the net Corporate costs amounted to €24,774 thousand (-4.1% of the revenues generated by the Group's sales and services), a decrease of €3,339 thousand (-11.9%) compared to the second quarter of 2023.

The second quarter of 2024 was impacted for €2,149 thousand by the same non-recurring expenses described in the section on EBITDA. In the second quarter of 2023 non-recurring expenses amounted to €3,099 thousand.

Net of these items, the costs would have been €2,390 thousand lower (-9.6%) with the margin down 0.6 p.p.

Profit before taxes

(€ thousand)	First Half 2024			First Half 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Profit before taxes	124,898	(3,466)	121,432	123,782	(11,283)	112,499
(€ thousand)		Second Quarter 2024			Second Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Profit before taxes	73,625	(2,371)	71,254	74,272	(3,391)	70,881

Profit before tax amounted to €121,432 thousand in the first six months of 2024, an increase of €8,933 thousand (+7.9%) against the comparison period, with a gross profit margin of 10.3% (+0.2 p.p. with respect to the comparison period).

The results for the reporting period were impacted for €3,466 thousand by the same nonrecurring expenses described in the section on EBITDA. In the first six months of 2023 nonrecurring expenses of €11,283 thousand were incurred.

On a recurring basis, profit before tax was €1,116 thousand higher (+0.9%) compared to the first six months of 2023, with the profit margin down 0.5 p.p.

In addition to the change in EBIT described above, profit before tax was impacted for €3,797 thousand by increased financial expenses. The increase in interest payable on short-term credit lines, on the floating rate portion of medium/long-term debt and on lease accounting attributable to both greater average debt and higher interest rates compared to the first half of 2023 was partially offset by lower foreign exchange expenses, as well as financial income stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 ("Decreto Rilancio").

In the second quarter alone, profit before tax was €373 thousand (+0.5%) higher, coming in at €71,254 thousand. The gross profit margin was 11.8% (-0.6 p.p. compared to the comparison period).

The increase in financial expenses amounted to €1,289 thousand.

The results for the second quarter of 2024 were impacted for €2,371 thousand by the same nonrecurring expenses described in the section on EBITDA. In the second quarter of 2023 nonrecurring expenses of €3,391 thousand were incurred. Net of this item, there would have been a decrease of €647 thousand (-0.9%) compared to the second quarter of 2023.

The gross profit margin would have reached 12.2% or 0.8 p.p. less than in the second quarter of 2023.

Group net profit

(€ thousand)		First Half 2024			First Half 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Group net profit	90,280	(2,487)	87,793	89,344	(7,987)	81,357
(€ thousand)		Second Quarter 2024			Second Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Group net profit	54,612	(1,683)	52,929	54,459	(2,402)	52,057

The Group's net profit came to €87,793 thousand in the first six months of 2024, an increase of €6,436 thousand (+7.9%) against the comparison period, with a profit margin of 7.5% (+0.2 p.p. higher against the comparison period).

The result for the reporting period was impacted for €2,487 thousand by the same non-recurring expenses (described above), net of the tax effect. In the first six months of 2023 net nonrecurring expenses amounted to €7,987 thousand.

On a recurring basis, the Group's net profit was €936 thousand (+1.0%) higher than in the first six months of 2023, with the profit margin down 0.3 p.p.

The tax rate was 27.6% in the reporting period compared to 27.7% in the first half of 2023.

In the second quarter alone the Group's net profit reached €52,929 thousand (8.8% of revenues from sales and services), showing an increase of €872 thousand (+1.7%) against the comparison period, with the profit margin down -0.3 p.p. Net of the non-recurring expenses, the Group's net profit would have been €153 thousand higher (+0.3%), with the profit margin down -0.5 p.p.

BALANCE SHEET REVIEW

Consolidated balance sheet by geographical area (*)

(€ thousands)	06/30/2024
	EMEA	Americas	APAC	Eliminations	Total
Goodwill	1,005,129	300,607	617,142	-	1,922,878
Non-competition agreements, trademarks, customer lists and lease rights	183,275	32,479	55,253	-	271,007
Software, licenses, other intangible fixed assets, fixed assets in progress and advances	123,102	30,039	8,862	-	162,003
Property, plant, and equipment	157,790	36,989	42,633	-	237,412
Right-of-use assets	378,228	48,618	65,944	-	492,790
Financial fixed assets	22,997	6,860	233	-	30,090
Other non-current financial assets	40,041	2,587	1,810	-	44,438
Non-current assets	1,910,562	458,179	791,877	-	3,160,618
Inventories	64,506	8,557	10,000	-	83,063
Trade receivables	221,811	61,643	20,256	(88,436)	215,274
Other receivables	116,217	17,198	9,282	(195)	142,502
Current assets (A)	402,534	87,398	39,538	(88,631)	440,839
Operating assets	2,313,096	545,577	831,415	(88,631)	3,601,457
Trade payables	(282,892)	(75,346)	(51,867)	88,436	(321,669)
Other payables	(285,743)	(37,624)	(35,296)	195	(358,468)
Provisions for risks and charges (current portion)	(1,170)	(658)	-	-	(1,828)
Current liabilities (B)	(569,805)	(113,628)	(87,163)	88,631	(681,965)
Net working capital (A) - (B)	(167,271)	(26,230)	(47,625)	-	(241,126)
Derivative instruments	10,480	-	-	-	10,480
Deferred tax assets	57,315	9,159	11,884	-	78,358
Deferred tax liabilities	(64,730)	(22,973)	(15,168)	-	(102,871)
Provisions for risks and charges (non current portion)
	(18,898)	(925)	(893)	-	(20,716)
Liabilities for employees' benefits (non current portion)	(11,632)	(20)	(705)	-	(12,357)
Loan fees	2,392	-	-	-	2,392
Other non-current liabilities	(194,974)	(14,487)	(5,084)	-	(214,545)
NET INVESTED CAPITAL	1,523,244	402,703	734,286	-	2,660,233
Group net equity					1,138,354
Minority interests					233
Total net equity					1,138,587
Net medium and long-term financial indebtedness					678,136
Net short-term financial indebtedness					331,149
Total net financial indebtedness					1,009,285
Lease liabilities	393,301	52,556	66,504	-	512,361
Total lease liabilities & net financial indebtedness					1,521,646

(*) 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)	12/31/2023
	EMEA	Americas	APAC	Eliminations	Total
Goodwill	955,383	237,178	607,013	-	1,799,574
Non-competition agreements, trademarks, customer lists and lease rights	176,887	21,126	57,670	-	255,683
Software, licenses, other intangible fixed assets, fixed assets in progress and advances	123,344	29,520	8,042	-	160,906
Property, plant, and equipment	148,081	29,929	43,506	-	221,516
Right-of-use assets	373,293	44,949	59,911	-	478,153
Financial fixed assets	3,629	12,841	234	-	16,704
Other non-current financial assets	39,701	2,440	1,710	-	43,851
Non-current assets	1,820,318	377,983	778,086	-	2,976,387
Inventories	70,314	8,729	9,277	-	88,320
Trade receivables	231,870	56,961	27,187	(84,765)	231,253
Other receivables	85,597	14,464	7,176	(195)	107,042
Current assets (A)	387,781	80,154	43,640	(84,960)	426,615
Operating assets	2,208,099	458,137	821,726	(84,960)	3,403,002
Trade payables	(327,768)	(70,879)	(45,073)	84,765	(358,955)
Other payables	(293,855)	(43,725)	(41,905)	195	(379,290)
Provisions for risks and charges (current portion)	(586)	(682)	-	-	(1,268)
Current liabilities (B)	(622,209)	(115,286)	(86,978)	84,960	(739,513)
Net working capital (A) - (B)	(234,428)	(35,132)	(43,338)	-	(312,898)
Derivative instruments	12,933	-	-	-	12,933
Deferred tax assets	63,112	7,307	12,282	-	82,701
Deferred tax liabilities	(62,023)	(19,725)	(16,703)	-	(98,451)
Provisions for risks and charges (non current portion)	(17,668)	(896)	(815)	-	(19,379)
Liabilities for employees' benefits (non current portion)	(12,119)	(143)	(701)	-	(12,963)
Loan fees	3,007	-	-	-	3,007
Other non-current liabilities	(160,811)	(12,853)	(6,434)	-	(180,098)
NET INVESTED CAPITAL	1,412,321	316,541	722,377	-	2,451,239
Group net equity					1,100,919
Minority interests					759
Total net equity					1,101,678
Net medium and long-term financial indebtedness					719,428
Net short-term financial indebtedness					132,702
Total net financial indebtedness					852,130
Lease liabilities	387,130	48,433	61,868	-	497,431
Total lease liabilities & net financial indebtedness					1,349,561
NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL INDEBTEDNESS					2,451,239

Non-Current Assets

Non-current assets amounted to €3,160,618 thousand at 30 June 2024, an increase of €184,231 thousand with respect to the €2,976,387 thousand recorded at 31 December 2023.

This increase is explained (i) for €155,118 thousand by acquisitions made in the reporting period; (ii) for €73,222 thousand by right-of-use assets acquired in the reporting period; (iii) for €65,657 thousand by capex; (iv) for €144,826 thousand, by amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; (v) for €35,060 thousand by other increases stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 ("Decreto Rilancio"), and from foreign exchange differences.

The breakdown of non-current assets by geographic area is shown below.

(€ thousands)		06/30/2024	12/31/2023	Change
	Goodwill	1,005,129	955,383	49,746
EMEA (*)	Non-competition agreements, trademarks, customer lists and lease rights	183,275	176,887	6,388
	Software, licenses, other intangible fixed assets, fixed assets in progress and advances	123,102	123,344	(242)
	Tangible assets	157,790	148,081	9,709
	Right-of-use assets	378,228	373,293	4,935
	Financial fixed assets	22,997	3,629	19,368
	Other non-current financial assets	40,042	39,701	341
	Non-current assets	1,910,562	1,820,318	90,244
	Goodwill	300,607	237,178	63,429
	Non-competition agreements, trademarks, customer lists and lease rights	32,480	21,126	11,354
	Software, licenses, other intangible fixed assets, fixed assets in progress and advances	30,039	29,520	519
Americas	Tangible assets	36,989	29,929	7,060
	Right-of-use assets	48,618	44,949	3,669
	Financial fixed assets	6,859	12,841	(5,982)
	Other non-current financial assets	2,586	2,440	146
	Non-current assets	458,179	377,983	80,196
	Goodwill	617,142	607,013	10,129
	Non-competition agreements, trademarks, customer lists and lease rights	55,253	57,670	(2,417)
	Software, licenses, other intangible fixed assets, fixed assets in progress and advances	8,862	8,042	820
Asia Pacific	Tangible assets	42,633	43,506	(873)
	Right-of-use assets	65,944	59,911	6,033
	Financial fixed assets	234	234	-
	Other non-current financial assets	1,809	1,710	99
	Non-current assets	791,877	778,086	13,791
Total		3,160,618	2,976,387	184,231

(*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA.

Europe, Middle-East and Africa

Non-current assets amounted to €1,910,562 thousand at 30 June 2024, an increase of €90,244 thousand with respect to the €1,820,318 thousand recorded at 31 December 2023. This increase is explained by:

• for €81,325 thousand, acquisitions made during the reporting period;
• for €43,673 thousand, right-of-use assets acquired in the year as a result of the renewal of existing leases and network expansion.
• for €24,463 thousand, investments in plant, property and equipment, relating primarily to the opening of new stores and the renewal of existing ones, as well as the purchase of hardware needed to implement Group IT projects detailed below;
• for €21,109 thousand, investments in intangible assets, relating to new Front-Office solutions, network expansion and to ongoing implementation and standardization and homogenization of the Group cloud based ERP system;
• for €96,803 thousand, amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above;
• for €16,477 thousand, the recognition of acquisitions with deferred payments using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 ("Decreto Rilancio") and exchange differences.

Americas

Non-current assets amounted to €458,179 thousand at 30 June 2024, an increase of €80,196 thousand against the €377,983 thousand recorded at 31 December 2023. This increase is explained by:

• for €66,636 thousand, by acquisitions made in the reporting period;
• for €9,655 thousand, by right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion;
• for €8,646 thousand, by investments in property, plant and equipment, relating to the opening of new stores and the renewal of existing ones;
• for €3,230 thousand, by investments in intangible assets, relating to the development of ongoing implementation and standardization and homogenization of the Group cloud based ERP system;
• for €18,060 thousand, by amortization and depreciation, including the amortization of the right-of-use assets referred to above;
• for €10,089 thousand by other increases, explained primarily by revaluations linked to inflation accounting at the Argentine subsidiary.

Asia Pacific

Non-current assets amounted to €791,877 thousand at 30 June 2024, an increase of €13,791 thousand against the €778,086 thousand recorded at 31 december 2023.

This increase is explained by:

• for €19,894 thousand, by an increase in right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion;
• for €7,157 thousand, by acquisitions made in the reporting period;
• for €6,145 thousand, by investments in property, plant and equipment, relating mainly to the opening of stores and the renewal of existing ones, as well as the purchase of the hardware needed to implement IT projects;
• for €2,064 thousand, by investments in intangible assets relating mainly to the development of ongoing implementation and standardization and homogenization of the Group cloud based ERP system;
• for €29,963 thousand, by amortization and depreciation, including the amortization of the right of-use assets referred to above;
• for €8,494 thousand, by other decreases relating to foreign exchange differences which mainly affected goodwill.

Net invested capital

Net invested capital amounted to €2,660,233 thousand at 30 June 2024, an increase of €208,994 thousand against the €2,451,239 thousand recorded at 31 December 2023.

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

The breakdown of net invested capital by geographic area is shown below.

(€ thousands)	06/30/2024	12/31/2023	Change
EMEA (*)	1,523,244	1,412,321	110,923
Americas	402,703	316,541	86,162
Asia Pacific	734,286	722,377	11,909
Total	2,660,233	2,451,239	208,994

(*) The balance sheet items are analyzed by the Chief Executive Officer and the Top Management by geographical area without separation of the Corporate structures that are natively included in EMEA.

Europa, Middle-East and Africa

Net invested capital came to €1,523,244 thousand at 30 June 2024, an increase of €110,923 thousand against the €1,412,321 thousand recorded at 31 December 2023.

In addition to the increase in non-current assets described above, there was an increase in working capital.

Factoring without recourse in the period involved trade receivables with a face value of € 112,516 thousand (€110,247 thousand in the same period of the prior year) and VAT credits with a face value of € 10,111 thousand (€13,605 thousand in the same period of the prior year). As of Q4 2023 factoring without recourse includes the receivables payable to insurance companies through top tier institution; the figures in the comparison period were adjusted to reflect this change.

Americas

Net invested capital came to €402,703 thousand at 30 June 2024, an increase of €86,162 thousand against the €316,541 thousand recorded at 31 December 2023.

This increase is attributable mainly to the change in non-current assets along with a slight increase in net working capital. Factoring without recourse in the reporting period involved trade receivables with a face value of €581 thousand (€160 thousand in the same period of the prior year).

Asia Pacific

Net invested capital came to €734,286 thousand at 30 June 2024, an increase of €11,909 thousand against the €722,377 thousand recorded at 31 December 2023. Along with the increase in non-current assets described above, there was also a slight decrease in net working capital.

Factoring without recourse in the period involved trade receivables with a face value of €2,177 thousand (€3,736 thousand in the same period of the prior year).

Net financial indebtedness

(€ thousands)	06/30/2024	12/31/2023	Change
Net medium and long-term financial indebtedness	678,136	719,428	(41,292)
Net short-term financial indebtedness	486,990	326,733	160,257
Cash and cash equivalents	(155,841)	(194,031)	38,190
Net financial indebtedness (A)	1,009,285	852,130	157,155
Lease liabilities – current portion	124,135	113,523	10,612
Lease liabilities – non-current portion	388,226	383,908	4,318
Lease liabilities (B)	512,361	497,431	14,930
Total lease liabilities & net financial indebtedness (A)+(B) (C)	1,521,646	1,349,561	172,085
Group net equity (D)	1,138,354	1,100,919	37,435
Minority interests	234	759	(525)
Net Equity (E)	1,138,588	1,101,678	36,910
Financial indebtedness/Group net equity (A/D)	0.89	0.77
Financial indebtedness/Net equity (A/E)	0.89	0.77
Financial indebtedness/EBITDA (*)	1.70	1.50

(*) Net financial indebtedness/EBITDA is the ratio of net financial indebtedness, excluding lease liabilities and short-term investments not cash equivalents, to EBITDA for the last four quarters (determined with reference to recurring operations only, based on pro forma figures in case of significant changes to the structure of the Group).

Excluding lease liabilities, net financial debt amounted to €1,009,285 thousand at 30 June 2024, an increase of €157,155 thousand compared to 31 December 2023.

In the first half of 2024 free cash flow reached a positive €46,822 thousand (compared to €76,110 in the first six months of the prior year) due mainly to higher taxes, rents and interest payable, along with greater absorption of working capital and increased capital expenditure which amounted to €65,338 thousand at 30 June 2024 versus €61,907 thousand in the comparison period. The significant net cash-outs for acquisitions of €142,737 thousand (versus €59,125 thousand in the first half of 2023), along with the €65,593 dividend payment (€65,361 thousand in the comparison period) and €5,695 thousand in positive flows generated by financial assets, bring cash flow for the reporting period to negative €155,814 thousand versus a negative €50,474 thousand in the first half of 2023.

In June 2024 the Group subscribed the last €50 million tranche of the €350 million loan with the European Investment Bank (EIB), of which €300 million was already subscribed, to support innovation and digitalization. This loan increased the available, unutilized irrevocable credit lines which amounted to €690 million at 30 June 2024.

In the second quarter, as agreed with the lenders and based on the original loan agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit were updated to reflect the new targets included in the new sustainability plan.

In addition to the irrevocable credit lines referred to above, at 30 June 2024 the Group also had cash and cash equivalents, as well as other liquid investments, of €155,841 thousand versus total net financial indebtedness of €1,165 million, net of lease liabilities.

Long-term debt, net of lease liabilities, amounted to €678,136 thousand at 30 June 2024 (€ 719,428 thousand at 31 December 2023), €41,292 thousand lower than in 2023 due mainly to the reclassification of short-term portions of bank debt and deferred payments for acquisitions net of the new loans.

Short-term debt amounts to €486,990 thousand, an increase of €160,257 thousand explained mainly by the increase in hot money transactions and the use of other short-term credit lines in order to temporarily cover higher overall debt. The short-term portion refers primarily to the hot money accounts and the use of other short-term credit lines (€293,171 thousand), the shortterm portion of long-term bank debt (€171,086 thousand) and interest payable on other bank loans (€884 thousand) and interest payable on Eurobond (€1,489 thousand) and, lastly, the best estimate of the deferred payments for acquisitions (€17,202 thousand).

The chart below shows the debt maturities compared to:

• the €155.8 million in cash and cash equivalents;
• the unutilized portions of irrevocable credit lines which amount to €465 million;
• the unutilized €225 million of the EIB loan taken out to support investments in innovation and digitalization.

Interest payable on financial debt amounted to €18,247 thousand at 30 June 2024 versus €11,842 thousand at 30 June 2023.

Interest payable on leases recognized in accordance with IFRS 16 amounted to €8,916 thousand versus €6,990 thousand at 30 June 2023.

Interest receivable on bank deposits came to €1,530 thousand at 30 June 2024 versus €914 thousand at 30 June 2023.

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

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.

(€ thousands)	First Half 2024	First Half 2023 (**)
OPERATING ACTIVITIES:
Net profit (loss) attributable to the Group	87,793	81,357
Minority interests	81	(34)
Amortization, depreciation and impairment:
- Intangible fixed assets	50,153	43,294
- Tangible fixed assets	30,620	26,572
- Right-of-use assets	64,053	58,675
Total amortization, depreciation and impairment	144,826	128,541
Provisions, other non-monetary items and gains/losses from disposals	9,554	21,028
Group's share of the result of associated companies	(283)	(206)
Financial income charges	27,798	23,925
Current and deferred income taxes	33,558	31,176
Change in assets and liabilities:
- Utilization of provisions	(2,126)	(6,429)
- (Increase) decrease in inventories	8,943	(2,620)
- Decrease (increase) in trade receivables	8,449	(127)
- Increase (decrease) in trade payables	(43,986)	(6,330)
- Changes in other receivables and other payables	(29,537)	(23,719)
Total change in assets and liabilities	(58,257)	(39,225)
Net interest charges	(25,134)	(20,732)
Taxes paid	(44,208)	(31,660)
Cash flow provided by (used in) operating activities before repayment of lease liabilities	175,728	194,169
Repayment of lease liabilities	(63,568)	(56,152)
Cash flow generated from (absorbed) by operating activities	112,160	138,017
INVESTING ACTIVITIES:
Purchase of intangible fixed assets	(26,404)	(32,716)
Purchase of property, plant and equipment	(39,254)	(30,559)
Consideration from sale of tangible fixed assets and businesses	320	1,368
Cash flow generated from (absorbed) by investing activities	(65,338)	(61,907)
Cash flow generated from operating and investing activities (Free Cash Flow)	46,822	76,110
Business combinations (*)	(142,737)	(59,125)
Net cash flow generated from acquisitions	(142,737)	(59,125)
Cash flow generated from (absorbed) by investing activities and acquisitions	(208,075)	(121,032)

(€ thousands)	First Half 2024	First Half 2023 (**)
FINANCING ACTIVITIES:
Derivatives	-	(1,483)
Other non-current assets	5,799	(615)
Fees paid on medium/long-term financing	(105)	-
Treasury shares	-	-
Dividends	(65,593)	(65,361)
Cash flow generated from (absorbed) by financing activities	(59,899)	(67,459)
Changes in net financial indebtedness net of lease liabilities	(155,814)	(50,474)
Net financial indebtedness at the beginning of the period net of lease liabilities	(852,130)	(829,993)
Effect of exchange rate fluctuations on net financial debt	(1,341)	(3,344)
Changes in net financial debt	(155,814)	(50,474)
Net financial indebtedness at the end of the period net of lease liabilities	(1,009,285)	(883,811)

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

(**) It is specified that, on the comparative period, reclassifications have been made in order to better represent financial information.

The change in net financial indebtedness of €157,155 thousand is attributable to:

• (i) Investing activities:
  • capital expenditure on property, plant and equipment and intangible assets of € 65,657 thousand relating primarily to the new Front-Office solution and network expansions ongoing implementation and standardization of the Group cloud based ERP system;
  • acquisitions amounting to €142,737 thousand, including the impact of the acquired companies' debt and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years;
  • net proceeds from the disposal of assets of €320 thousand.
• (ii) Operating activities:
  • interest payable on financial indebtedness, on leases due to IFRS16 accounting standards application and other net financial expenses for €25,134 thousand;
  • payment of taxes amounting to €44,208 thousand;
  • payment of principle on lease obligations of €63,568 thousand;
  • cash flow generated by current operations of €245,070 thousand.
• (iii) Financing activities:
  • dividends distribution for €65,593 thousand;
  • fees paid on medium/long-term financing for €105 thousand;
  • collection of other non-current assets for €5,799 thousand.
• (iv) Net debt was also impacted by exchange losses of €1,341 thousand.

Non-recurring transactions had a negative impact on cash flow of €830 thousand, of which €711 thousand for costs related to GAES integration and €119 thousand to the integration of Bay Audio.

ACQUISITION OF COMPANIES AND BUSINESSES

During the first semester of 2024, the Group continued with external growth operations and acquired 244 points of sale, mainly through the acquisitions made in the Uruguayan and Chinese markets and in the American market with two important franchisees' acquisition, for a total investment of €142,737 thousand, including the debt consolidated and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years.

More in detail, in the first semester of 2024:

• 81 points of sale were acquired in the United States;
• 55 points of sale were acquired in Germany;
• 44 points of sale were acquired in China;
• 27 points of sale were acquired in France;
• 23 points of sale were acquired in Uruguay;
• 10 points of sale were acquired in Canada;
• 4 point of sale was acquired in Italy.

OUTLOOK

In the second quarter of 2024, the US hearing care market was still strong and in line with expectations, albeit decelerating compared to the first quarter, while the European market was softer than expected, in particular from the second half of May until the end of June. However, despite the market environment in the second quarter, in the first half of the year the Group continued along its strong growth path. Profitability also benefited from the field productivity measures taken in the second half of last year, which more than offset the lower operating leverage due to the European market softness.

In the second half of 2024, Amplifon expects:

• the European market to normalize progressively, while the US market is expected to continue to grow at a healthy rate;
• to continue to grow faster than the reference market;
• a good start to the third quarter with strong and in-line-with-plan revenue growth in July.

In light of the above and assuming that there are no further slowdowns in global economic activity due to, among others, the well-known inflation related issues and the geopolitical situation, for 2024 Amplifon now expects:

• Consolidated revenues to grow high-single-digit at constant exchange rates (with the exception for the EUR /ARS exchange rate, assumed to be at 1,100 at December 31st , 2024), supported by market share gains and bolt-on acquisitions, the latter contributing to revenue growth for at least 2%;
• a recurring EBITDA margin of around 24.3%, benefiting from the field productivity measures taken in 2023, while accelerating the growth of Miracle-Ear Direct Retail in the United States and marketing investments to respond to European market softness.

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

Milan, July 30th, 2024

CEO

Enrico Vita

48

CONDENSED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS AS AT 30 JUNE 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION(*)

(€ thousands)	06/30/2024	12/31/2023	Change
ASSETS
Non-current assets
Goodwill	Note 3			123,304
Intangible fixed assets with finite useful life	Note 4	433,010	416,589	16,421
Property, plant, and equipment	Note 5	237,412	221,516	15,896
Right-of-use assets	Note 6	492,790	478,153	14,637
Equity-accounted investments	2,726	2,444	282
Hedging instruments	8,713	12,933	(4,220)
Deferred tax assets	78,358	82,701	(4,343)
Contract costs	11,828	11,275	553
Other assets	Note 7		46,835	13,140
Total non-current assets	3,247,690	3,072,020	175,670
Current assets
Inventories	83,063	88,320	(5,257)
Trade receivables		215,274	231,253	(15,979)
Contract costs	6,461	6,840	(379)
Other receivables	136,023	100,184	35,839
Hedging instruments	2,369	549	1,820
Other financial assets	867	901	(34)
Cash and cash equivalents	154,992	193,148	(38,156)
Total current assets	599,049	621,195	(22,146)
Total assets	3,846,739	3,693,215	153,524

(€ thousands)		06/30/2024	12/31/2023	Change
LIABILITIES
Net Equity
Share capital	Note 8	4,528	4,528	-
Share premium reserve	202,712	202,712	-
Treasury shares		(5,607)	(17,495)	11,888
Other reserves		(52,513)	(53,608)	1,095
Retained earnings				91,798
Profit (loss) for the period		87,793	155,139	(67,346)
Group net equity		1,138,354	1,100,919	37,435
Minority interests		234	759	(525)
Total net equity		1,138,588	1,101,678	36,910
Non-current liabilities
Medium/long-term financial liabilities	Note 10	672,169	710,267	(38,098)
Lease liabilities	Note 12		383,909	4,317
Provisions for risks and charges	Note 11	20,716 19,379		1,337
Liabilities for employees' benefits	12,357	12,963	(606)
Deferred tax liabilities	102,871	98,451	4,420
Payables for business acquisitions	4,540	7,229	(2,689)
Contract liabilities	166,169	153,716	12,453
Other long-term liabilities	48,375	26,379	21,996
Total non-current liabilities		1,415,423	1,412,293	3,130
Current liabilities
Trade payables		321,669	358,955	(37,286)
Payables for business acquisitions		17,202	9,554	7,648
Contract liabilities	120,114	120,043	71
Tax liabilities	65,308	74,433	(9,125)
Other payables	169,486	181,101	(11,615)
Hedging instruments	445	242	203
Provisions for risks and charges Note 11		1,828	1,268	560
Liabilities for employees' benefits	4,071	3,713	358
Short-term financial liabilities	Note 10		316,413	152,057
Lease liabilities	Note 12	124,135	113,522	10,613
Total current liabilities		1,292,728	1,179,244	113,484
TOTAL LIABILITIES		3,846,739	3,693,215	153,524

(*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 18 for more details

CONSOLIDATED INCOME STATEMENT(*)

(€ thousands)			First Half 2024			First Half 2023
		Recurring	Non recurring	Total	Recurring	Non recurring	Total	Change
Revenues from sales and services	Note 13	1,177,251	-	1,177,251	1,113,770	-	1,113,770	63,481
Operating costs (**)	Note 15	(884,219)	(3,466)	(887,685)	(842,483)	(11,283)	(853,766)	(33,919)
Other income and costs (**)		4,207	-	4,207	4,754	-	4,754	(547)
Gross operating profit (EBITDA)		297,239	(3,466)	293,773	276,041	(11,283)	264,758	29,015
Amortization, depreciation and impairment
Amortization of intangible fixed assets	Note 4	(50,053)	-	(50,053)	(43,268)	-	(43,268)	(6,785)
Depreciation of property, plant, and equipment	Note 5	(30,075)	-	(30,075)	(26,426)	-	(26,426)	(3,649)
Right-of-use depreciation	Note 6	(64,053)	-	(64,053)	(58,675)	-	(58,675)	(5,378)
Impairment losses and reversals of non-current assets		(645)	-	(645)	(172)	-	(172)	(473)
		(144,826)	-	(144,826)	(128,541)	-	(128,541)	(16,285)
Operating result		152,413	(3,466)	148,947	147,500	(11,283)	136,217	12,730
Financial income, expenses and value adjustments to financial assets
Group's share of the result of associated companies valued at equity and gains/losses on disposals of equity investments		283	-	283	207	-	207	76
Interest income and expenses		(16,717)	-	(16,717)	(10,927)	-	(10,927)	(5,790)
Interest expenses on lease liabilities		(8,916)	-	(8,916)	(6,990)	-	(6,990)	(1,926)
Other financial income and expenses		(707)	-	(707)	(1,925)	-	(1,925)	1,218
Exchange gains and losses, and inflation accounting		(1,308)	-	(1,308)	(4,609)	-	(4,609)	3,301
Gain (loss) on assets accounted at fair value		(150)	-	(150)	526	-	526	(676)
		(27,515)	-	(27,515)	(23,718)	-	(23,718)	(3,797)
Profit (loss) before tax		124,898	(3,466)	121,432	123,782	(11,283)	112,499	8,933
Current and deferred income tax
Current tax		(28,936)	979	(27,957)	(41,266)	3,296	(37,970)	10,013
Deferred tax		(5,601)	-	(5,601)	6,794	-	6,794	(12,395)
		(34,537)	979	(33,558)	(34,472)	3,296	(31,176)	(2,382)
Net profit (loss)		90,361	(2,487)	87,874	89,310	(7,987)	81,323	6,551
Net profit (loss) attributable to Minority interests		81	-	81	(34)	-	(34)	115
Net profit (loss) attributable to the Group		90,280	(2,487)	87,793	89,344	(7,987)	81,357	6,436

(*) Transactions with related parties have not been reported separately because not material both at single entity and at consolidated level. Please refer to note 18 for more details.

(**) It is specified that, on the comparative period reclassifications between "Operating costs" and "Other income and costs" have been made in order to better represent financial information.

Earnings per share (€ per share)		Note 17	First Half 2024	First Half 2023
Earnings per share - -	Basic Diluted		0.38850 0.38547	0.36275 0.35979

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

(€ thousands)	First Half 2024	First Half 2023
Net income (loss) for the period	87,874	81,323
Other comprehensive income (loss) that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	(51)	(1,006)
Tax effect on components of other comprehensive income that will not be reclassified subsequently to profit or loss	2	221
Total other comprehensive income (loss) that will not be reclassified subsequently to profit or loss after the tax effect (A)	(49)	(785)
Other comprehensive income (loss) that will be reclassified subsequently to profit or loss:
Gains/(losses) on cash flow hedging instruments	(2,452)	(2,934)
Gains/(losses) from Foreign Currency Basis Spread on hedging instruments	-	516
Gains/(losses) on exchange differences from translation of financial statements of foreign entities	9,384	(42,038)
Tax effect on components of other comprehensive income that will be reclassified subsequently to profit or loss	588	580
Total other comprehensive income (loss) that will be reclassified subsequently to profit or loss after the tax effect (B)	7,520	(43,876)
Total other comprehensive income (loss) (A)+(B)	7,471	(44,661)
Comprehensive income (loss) for the period	95,345	36,662
Attributable to the Group	95,436	37,063
Attributable to Minority interests	(91)	(401)

STATEMENT OF CHANGES IN CONSOLIDATION EQUITY

(€ thousands)	Share capital	Share premium reserve	Legal reserve	Other reserves	Treasury shares reserve	Stock grant reserve
Balance at 01/01/2023	4,528	202,712	934	3,636	(49,895)	35,182
Allocation of profit (loss) for 2022
Share capital increase
Treasury shares
Dividend distribution
Notional cost of stock grants						18,502
Other changes					25,500	(18,889)
- Stock Grant					25,500	(18,889)
- Inflation accounting
- Other changes
Total comprehensive income (loss) for the period
- Hedge accounting
- Actuarial gains (losses)
- Translation differences
- Profit for the first half of 2023
Balance at June 2023	4,528	202,712	934	3,636	(24,395)	34,795
		Share			Treasury	Stock
(€ thousands)	Share capital	premium	Legal reserve	Other reserves	shares	grant
Balance at 01/01/2024	4,528	reserve 202,712	934	3,636	reserve (17,495)	reserve 41,299
Allocation of profit (loss) for 2023
Share capital increase
Treasury shares					-
Dividend distribution
Notional cost of stock grants						9,373
Other changes					11,888	(15,921)
- Stock Grant					11,888	(15,921)
- Inflation accounting
- Other changes
Total comprehensive income (loss) for the period
- Hedge accounting
- Actuarial gains (losses)
- Translation differences
- Profit for the first half of 2024

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
19,913	(392)		2,782	691,409	(50,825)	178,525	1,038,509	1,841	1,040,350
				178,525		(178,525)	-		-
							- -		- -
				(65,361)			(65,361)		(65,361)
							18,502		18,502
				5,306			11,917	(479)	11,438
				(3,984)			2,627		2,627
				10,255			10,255		10,255
				(965)			(965)	(479)	(1,444)
(2,230)	392		(785)		(41,671)	81,357	37,063	(401)	36,662
(2,230)	392						(1,838)		(1,838)
			(785)				(785)		(785)
					(41,671)		(41,671)	(367)	(42,038)
						81,357	81,357	(34)	81,323
17,683	-		1,997	809,879	(92,496)	81,357	1,040,630	961	1,041,591
Cash flow hedge reserve	Actuarial gains	and losses	Retained earnings		Translation differences	Profit (loss) for the period	Total Shareholders' equity	Minority interests	Total net equity
9,888		(957)	809,643		(108,408)	155,139	1,100,919	759	1,101,678
			155,139			(155,139)	-		-
							-		-
							-		-
			(65,593)				(65,593)		(65,593)
							9,373		9,373
			2,252				(1,781)	(434)	(2,215)
			2,731				(1,302)		(1,302)
			13,158				13,158		13,158
			(13,637)				(13,637)	(434)	(14,071)
(1,864)		(49)			9,556	87,793	95,436	(91)	95,345
(1,864)							(1,864)		(1,864)
		(49)					(49)		(49)
					9,556		9,556	(172)	9,384
						87,793	87,793	81	87,874
8,024		(1,006)	901,441		(98,852)	87,793	1,138,354	234	1,138,588

STATEMENT OF CONSOLIDATED CASH FLOWS

(€ thousands)	First Half 2024	First Half 2023 (*)
OPERATING ACTIVITIES
Net profit (loss)	87,874	81,323
Amortization, depreciation and impairment:
- intangible fixed assets	50,153	43,294
- property, plant, and equipment	30,620	26,572
- right-of-use assets	64,053	58,675
Provisions, other non-monetary items and gain/losses from disposals	9,553	21,027
Group's share of the result of associated companies	(283)	(206)
Financial income and expenses	27,798	23,925
Current and deferred taxes	33,558	31,176
Cash flow from operating activities before change in net working capital	303,326	285,786
Utilization of provisions	(2,126)	(6,429)
(Increase) decrease in inventories	8,943	(2,620)
Decrease (increase) in trade receivables	8,449	(127)
Increase (decrease) in trade payables	(43,986)	(6,330)
Changes in other receivables and other payables	(29,537)	(23,719)
Total change in assets and liabilities	(58,257)	(39,225)
Interest received (paid)	(25,980)	(25,299)
Taxes paid	(44,208)	(31,660)
Cash flow generated from (absorbed by) operating activities (A)	174,881	189,602
INVESTING ACTIVITIES:
Purchase of intangible fixed assets	(26,404)	(32,716)
Purchase of tangible fixed assets	(39,254)	(30,559)
Consideration from sale of non-current assets	320	1,368
Cash flow generated from (absorbed by) operating investing activities (B)	(65,338)	(61,907)
Purchase of subsidiaries and business units net of cash and cash equivalents acquired or dismissed	(142,737)	(59,125)
Increase (decrease) in payables for business acquisitions	7,043	(7,142)
Cash flow generated from (absorbed by) acquisition activities (C)	(135,694)	(66,267)
Cash flow generated from (absorbed by) investing activities (B)+(C)	(201,032)	(128,174)
FINANCING ACTIVITIES:
Increase (decrease) in financial payables	112,478	49,638
(Increase) decrease in financial receivables	16	(552)
Principal portion of lease payments	(63,568)	(56,152)
Hedging instruments	-	(1,483)
Fees paid on long-term borrowings	(104)	-
Other non-current assets and liabilities	5,799	(615)
Dividend distributed	(65,593)	(65,361)
Treasury shares purchase	-	-
Cash flow generated from (absorbed by) financing activities (D)	(10,972)	(74,525)
Net increase in cash and cash equivalents (A)+(B)+(C)+(D)	(37,123)	(13,097)

(€ thousands)	First Half 2024	First Half 2023
Cash and cash equivalents at beginning of period	193,148	179,654
Effect of exchange rate fluctuations on cash & cash equivalents	(1,033)	(1,576)
Flows of cash and cash equivalents	(37,123)	(13,097)
Cash and cash equivalents at end of period	154,992	164,981

(*) It is specified that, on the comparative period, reclassifications have been made in order to better represent financial information.

Related-party transactions relate to lease of the main office and certain stores, to recharges of maintenance costs and general services of the above-mentioned buildings and to commercial transactions, personnel costs and loans. Such operations are detailed in Note 18.

SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS

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

(€ thousands)	First Half 2024	First Half 2023
- Goodwill	103,774	44,278
- Customer lists	35,720	17,517
- Trademarks and non-competition agreements	1,308	-
- Other intangible fixed assets	2,141	403
- Property, plant, and equipment	5,632	2,595
- Right-of-use assets	6,339	1,056
- Current assets	13,357	5,051
- Provision for risks and charges	(1,629)	3
- Current liabilities	(17,831)	(6,119)
- Other non-current assets and liabilities	(16,191)	(5,033)
- Third parties equity	14,073	1,614
Total investments	146,693	61,365
Net financial debt acquired	1,698	957
Total business combinations	148,391	62,322
(Increase) decrease in payables through business acquisition	(7,043)	7,142
Cash flow absorbed by (generated from) acquisitions	141,348	69,464
(Cash and cash equivalents acquired)	(5,654)	(3,197)
Net cash flow absorbed by (generated from) acquisitions	135,694	66,267

NOTES

1. General Information

The Amplifon Group is global leader in the distribution of hearing solutions and the fitting of customized products.

The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy. The Group is controlled directly by Ampliter S.r.l. (42.06% as at 30 June 2024), held by Amplifin S.r.l, which is owned at 100% by Susan Carol Holland. As a result of increased voting rights, at 30 June 2024 Ampliter S.r.l. held 59.13% of the voting rights. On 30 April 2024 the Extraordinary Shareholders' Meeting approved a few amendments to the Articles of Association, including enhanced voting rights as a result of which voting rights may be increased by one vote per share held for each 12 month period in which the shares are owned without interruption for a total of up to 10 votes per share based on a mechanism calling for a gradual increase. As none of the conditions for termination materialized, the amendments took full effect.

The condensed interim consolidated financial report as at 30 June 2024 was prepared in accordance with International Accounting Standards, as well as the implementation regulations set out in Article 9 of Legislative Decree no. 38 of 28 February 2005. These standards include the IAS and IFRS issued by the International Accounting Standard Board, as well as the SIC and IFRIC interpretations issued by the International Financial Reporting Interpretations Committee, which were endorsed in accordance with the procedure set out in Article 6 of Regulation (EC) no. 1606 of 19 July 2002 by 30 June 2024. The International Accounting Standards endorsed after that date and before the preparation of this report were adopted in the preparation of the condensed interim consolidated financial report only if early adoption is allowed by the Endorsing Regulation and the standard itself and if the Group had elected to do so.

The condensed interim consolidated financial statements at 30 June 2024 was prepared in accordance with IAS 34 "Interim Financial Reporting" and does not include all the additional information required by the annual financial statements and must be read together with the annual consolidated financial statements of the Group at 31 December 2023.

The publication of the condensed interim consolidated financial statements of the Amplifon Group at 30 June 2024 was authorized by a resolution of the Board of Directors of 30 July 2024 which approved their publication.

According to the Consob Communication of 28 July 2006, it is specified that during the first half of 2024 the Group did not carry out atypical and/or unusual transactions, as defined by the Communication itself.

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

The geopolitical uncertainty continues and persists due to the conflicts underway in the Middle East and Ukraine. Currently, the prospects for a resolution of the conflict in the Middle East remain uncertain and still represent a relevant risk factor for the global economic outlook. The Group, however, only has about 25 points of sale in Israel which generate sales equal to approximately 1% of annual consolidated revenues. As for the conflict between Ukraine and Russia, the situation remains tense and has not changed significantly since the prior quarter. The Group has no business activities, direct or indirect, in either Ukraine, Russia or Byelorussia and limited activities in surrounding countries (Poland and Hungary).

In the first half of the year, the hearing aid market underwent a phase of gradual normalization in demand worldwide, despite a softer-than-expected market European market, above all in the latter part of the second quarter. The Group, however, recognizes that the current global and geopolitical uncertainties could cause a few potential customers to postpone purchases, even if hearing aids are non-discretional products which meet medium-term needs and benefit people's physical, emotional and relational health significantly. Customers are also assisted by public and private insurances, as well as consumer loans. While the Group monitors the changing macroeconomic environment constantly, it cannot exclude the possibility of further slowdowns in the demand for its services and products even though in the past the sector has shown resilience in periods of economic crisis and geopolitical uncertainty.

With regard to climate change, the Group's business model is based on providing retail hearing solutions. The goals, therefore, connected to transitioning to alternative sources of energy and the actions needed to address climate change are pursued through the steps taken by the Group to improve the energy efficiency of its business activities, as well as report on the greenhouse gas emissions generated along the value chain. Toward this end, the Group is committed to defining and presenting short-term targets for reducing emissions aligned with the Science-Based Target Initiative (SBTi) by 2025.

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

3. Acquisitions and goodwill

The Group continued its own balancing strategy between internal and external growth during the first half of 2024 acquiring 244 points of sale. In detail, there were 114 points of sale purchased in Americas (with the entrance in Uruguayan market and acquisition of two of main franchisees in the United States), 86 in EMEA, and 44 in Asia Pacific.

The total investment, including the indebtedness consolidated and the best estimate of the net change in the earn-out linked to sales and profitability targets payable over the next few years, amounted to €142,737 thousand.

The changes in goodwill and amounts recognized as a result of the acquisitions made in the period are reported in the table below and shown by groups of Cash Generating Units.

(€ thousands)	Net carry at 12/31/2023	Business combinations	Disposals	Impairment	Other net changes	Net carry at 06/30/2024
EMEA	955,383	50,245	-	-	(499)	1,005,129
AMERICAS	237,178	50,280	-	-	13,149	300,607
APAC	607,013	3,249	-	-	6,880	617,142
Total	1,799,574	103,774	-	-	19,530	1,922,878

"Business combination" refers to the temporary allocation to goodwill of the portion of the purchase price paid, including deferments and contingent consideration (earn-outs), which is not directly attributable to the fair value of assets and liabilities, but is based on the positive contribution to cash flows that is expected to be made for an indefinite period of time. "Other net changes" refers almost entirely to foreign exchange differences.

Identification of the Groups of Cash Generating Units

For the purposes of impairment testing the total goodwill stemming from the cost incurred for a business combination was allocated to groups of Cash Generating Units; these groups of Cash Generating Units were identified by region and benefit from synergies, as well as shared policies, and are autonomous in the management and use of resources.

The assets allocated to the groups of Cash Generating Units and the methods used to determine these groups are the same as those applied to the financial Statements as at 31 December 2023.

The groups of Cash Generating Units recognized to perform impairment are:

• EMEA which includes Italy, France, the Netherlands, Germany, Belgium, Switzerland, Spain, Portugal, the UK, Hungary, Poland, Israel and Egypt;
• AMERICAS which includes both the single businesses through which operations are carried out in the US market (Franchising, Retail and Managed Care) and the countries (Canada, Argentina, Chile, Mexico, Panama, Ecuador, Colombia and Uruguay);
• ASIA PACIFIC which includes Australia, New Zealand, India and China.

The recoverable value of goodwill is determined based on the value in use or, if the latter is less than book value, on fair value. As at 31 December 2023 the management's valuations were made taking into consideration the value in use. No loss in value was identified as a result of the impairment tests conducted at 31 December 2023.

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

In the first half of 2024, overall, the Group posted results which were higher than in the prior year despite what was a softer-than-expected market, above all in EMEA. Management remains confident, expects to see more growth in the second half of the year and confirms the ability to achieve the plan targets upon which the impairment tests at 12.31.2023 were based. The WACC recalculated at 30 June 2024 was also lower, which helps to absorb any decrease in cash flows.

No indicators of impairment emerged, therefore, no specific impairment tests were made. For the purposes of measuring the recoverable value of goodwill reference should be made to the impairment tests reported on in the Annual Report 2023.

A summary of the book value and the fair value of assets and liabilities, deriving from the temporary allocation of the purchase price made as a result of business combinations and the purchase of minority interests in subsidiaries, is provided in the following table.

(€ thousands)	EMEA	Americas	APAC	Total
Cost of acquisitions of the period	65,430	60,033	21,231	146,694
Assets and liabilities acquired – Book value
Current assets	4,504	3,198	-	7,702
Current liabilities	(6,176)	(4,524)	-	(10,700)
Net working capital	(1,672)	(1,326)	-	(2,998)
Other intangible, tangible and right-of-use assets	9,897	3,426	788	14,111
Provision for risks and charges	(1,629)	-	-	(1,629)
Other non-current assets and liabilities	(5,206)	(881)	-	(6,087)
Non-current assets and liabilities	3,062	2,545	788	6,395
Net invested capital	1,390	1,219	788	3,397
Third Parties Equity	-	-	14,073	14,073
Net financial position	2,459	1,497	-	3,956
NET EQUITY ACQUIRED - BOOK VALUE	3,849	2,716	14,861	21,426
DIFFERENCE TO BE ALLOCATED	61,581	57,317	6,370	125,268
ALLOCATIONS
Trademarks	-	1,308	-	1,308
Customer lists	20,986	11,613	3,121	35,720
Contract liabilities - Short and long-term	(7,488)	(4,976)	-	(12,464)
Deferred tax assets	1,045	2,256	-	3,301
Deferred tax liabilities	(3,207)	(3,164)	-	(6,371)
ALLOCATIONS	11,336	7,037	3,121	21,494
GOODWILL	50,245	50,280	3,249	103,774

4. Intangible fixed assets with finite useful life

The following table shows the changes in intangible assets.

(€ thousands)	Historical cost at 12/31/2023	Accumulated amortization and write downs at 12/31/2023	Net book value at 12/31/2023	Historical cost at 06/30/2024	Accumulated amortization and write downs at 06/30/2024	Net book value at 06/30/2024
Software	289,839	(171,112)	118,727	308,544	(193,635)	114,909
Licenses	29,731	(20,618)	9,113	34,396	(23,135)	11,261
Non-competition agreements	19,484	(14,614)	4,870	22,038	(16,854)	5,184
Customer lists	474,972	(276,910)	198,062	512,349	(297,572)	214,777
Trademarks and concessions	95,028	(50,803)	44,225	96,580	(54,340)	42,240
Other	14,056	(4,197)	9,859	16,144	(5,155)	10,989
Fixed assets in progress and advances	31,733	-	31,733	33,650	-	33,650
Total	954,843	(538,254)	416,589	1,023,701	(590,691)	433,010

(€ thousands)	Net book value at 12/31/2023	Investments	Disposals	Amortization	Business combinations	Impairment	Other net changes	Net book value at 06/30/2024
Software	118,727	6,970	(31)	(21,267)	27	(76)	10,559	114,909
Licenses	9,113	2,582	-	(2,528)	7	(2)	2,089	11,261
Non-competition agreements	4,870	1,197	-	(2,045)	-	(54)	1,216	5,184
Customer lists	198,062	26	-	(19,884)	35,720	-	853	214,777
Trademarks and concessions	44,225	-	-	(3,376)	1,308	1	82	42,240
Other	9,859	191	-	(953)	1,971	(107)	28	10,989
Fixed assets in progress and advances	31,733	15,437	-	-	136	138	(13,794)	33,650
Total	416,589	26,403	(31)	(50,053)	39,169	(100)	1,033	433,010

The investments in intangible assets (€26,403 thousand) are attributable to the ongoing implementation and standardization of the Group cloud-based ERP system for back-office functions (HR, Procurement, Administration and Finance), the new front office solutions and the AI technologies used to provide customers with a highly personalized experience.

The change in "Business combinations" comprises:

• For €21,618 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;
• For €14,430 thousand the temporary allocation of the price paid for acquisitions made in Americas;
• For €3,121 thousand the temporary allocation of the price paid for acquisitions made in APAC.

The item "Other net changes" is explained almost entirely by foreign exchange differences and the reclassification of work in progress completed in the period.

5. Property, plant, and equipment

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

(€ thousands)	Historical cost at 12/31/2023	Accumulated amortization and write downs at 12/31/2023	Net book value at 12/31/2023	Historical cost at 06/30/2024	Accumulated amortization and write downs at 06/30/2024	Net book value at 06/30/2024
Land	129	-	129	158	-	158
Buildings, constructions and leasehold improvements	321,929	(215,933)	105,996	342,727	(231,392)	111,335
Plant and machines	43,102	(34,441)	8,661	45,403	(36,745)	8,658
Industrial and commercial equipment	91,892	(71,140)	20,752	94,966	(74,178)	20,788
Motor vehicles	1,259	(838)	421	1,422	(854)	568
Computers and office machinery	90,415	(69,133)	21,282	96,911	(76,069)	20,842
Furniture and fittings	136,733	(100,349)	36,384	146,523	(107,050)	39,473
Other tangible fixed assets	6,686	(4,228)	2,458	6,567	(4,518)	2,049
Fixed assets in progress and advances	25,433	-	25,433	33,541	-	33,541
Total	717,578	(496,062)	221,516	768,218	(530,806)	237,412

(€ thousands)	Net book value at 12/31/2023	Investments	Disposals	Amortization	Business combinations	Impairment	Other net changes	Net book value at 06/30/2024
Land	129	-	-	-	-	-	29	158
Buildings, constructions and leasehold improvements	105,996	10,591	10	(12,564)	916	(330)	6,716	111,335
Plant and machines	8,661	597	-	(1,264)	594	(36)	106	8,658
Industrial and commercial equipment	20,752	2,058	(9)	(3,185)	301	46	825	20,788
Motor vehicles	421	113	(108)	(84)	42	-	184	568
Computers and office machinery	21,282	3,840	4	(6,599)	705	(25)	1,635	20,842
Furniture and fittings	36,384	5,085	(53)	(6,056)	1,697	(69)	2,485	39,473
Other tangible fixed assets	2,458	(108)	(5)	(323)	-	-	27	2,049
Fixed assets in progress and advances	25,433	17,079	-	-	1,377	(131)	(10,217)	33,541
Total	221,516	39,255	(161)	(30,075)	5,632	(545)	1,790	237,412

The investments of the reporting period (€39,254 thousand) are mainly related to opening and renewal of shops, and to the purchase of hardware components for IT Group projects implementation.

The change in "Business combinations" comprises:

• For €3,817 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;

• For €1,027 thousand, the temporary allocation of the price paid for acquisitions made in Americas;
• For €788 thousand, the temporary allocation of the price paid for acquisitions made in APAC.

"Other net changes" is explained primarily by foreign exchange differences recorded in the reporting period and the reclassification of work in progress completed in the period.

6. Right-of-use assets

Right-of-use assets are reported here below:

(€ thousands)	Historical cost at 12/31/2023	Accumulated amortization and write downs at 12/31/2023	Net book value at 12/31/2023	Historical cost at 06/30/2024	Accumulated amortization and write downs at 06/30/2024	Net book value at 06/30/2024
Stores and offices	880,210	(418,590)	461,620	922,653	(449,255)	473,398
Motor vehicles	31,377	(17,828)	13,549	35,191	(18,500)	16,691
Electronic machinery	4,644	(1,660)	2,984	4,239	(1,538)	2,701
Total	916,231	(438,078)	478,153	962,083	(469,293)	492,790

(€ thousands)	Net book value at 12/31/2023	Increase	Decrease	Depreciation	Business combinations	Impairment	Other net changes	Net book value at 06/30/2024
Stores and offices	461,620	74,351	(9,252)	(59,498)	6,189	-	(12)	473,398
Motor vehicles	13,549	7,887	(935)	(4,012)	150	-	52	16,691
Electronic machinery	2,984	238	(3)	(542)	-	-	24	2,701
Total	478,153	82,476	(10,190)	(64,053)	6,339	-	65	492,790

The increase in right of use assets acquired in the period (€82,476 thousand) is explained by the renewal of existing leases and the network expansion.

The change in "business combinations" comprises:

• for €5,449 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;
• for €890 thousand, the temporary allocation of the price paid for acquisitions made in Americas.

"Other changes" refers mainly to foreign exchange differences recorded in the reporting period.

7. Other non-current assets

(€ thousands)	Balance at 06/30/2024	Balance at 12/31/2023	Change
Long-term financial receivables	6,574	12,915	(6,341)
Asset Plans and other restricted amounts	1,394	1,362	32
Other non-current assets	52,005	32,558	19,447
Total	59,973	46,835	13,138

Other non-current assets amounted to €59,973 thousand at 30 June 2024 (€46,835 at 31 December 2023).

The increase against the prior year is attributable mainly to the recognition of tax credits stemming from the super bonus discounts in accordance with Art. 119 and 121 of Legislative Decree 34/2020, purchased from a top-tier bank with a nominal value of €69,995 thousand for €65,694 thousand to be repaid as the credits are used. In accordance with the current tax laws, these credits may be used to offset tax payments and other fiscal contributions.

These credits (and the related payments) are recognized at amortized cost and when utilized any remaining difference between the value at amortized cost and the nominal offsetting amount is recognized as financial income.

In the first half of 2024, credits used for offsetting amounted to €31,570 thousand and financial income, that include also the effect of actualization, amounted to €2,495 thousand. Financial expenses for discounting payables amounted to €113 thousand.

The statement of financial position at 30 June 2024 includes:

• Tax credits recognized in the Other Receivables line for €14,961 thousand and in the Other Non-Current Assets line for €18,961 thousand;
• Payables recognized in the Other Liabilities line for €18,962 thousand and in the Other Payables line for €24,185 thousand.

8. Share capital and treasury shares

At 30 June 2024 the share capital comprised 226,388,620 ordinary shares with a par value of €0.02 fully paid in and subscribed, unchanged concerning 31 December 2023.

A total of 437,349 of the performance stock grant rights were exercised in the period, as a result of which the company transferred the same number of treasury shares to the beneficiaries.

During the period no treasury shares have not been acquired.

A total of 204,799 treasury shares, or 0.090% of the parent's share capital, were held at 30 June 2024.

Information relating to the treasury shares held is shown below:

	Average purchase price (Euro)		Total amount
	No. of shares	FV of transferred rights (Euro	(€ thousands)
Held at 12/31/2023	642,148	27.245	17,495
Transfers due to exercise of performance stock grants	(437,349)	27.182	(11,888)
Held at 06/30/2024	204,799	27.378	5,607

9. Net financial indebtedness

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

(€ thousands)	06/30/2024	12/31/2023	Change
Cash (A)	154,992	193,148	(38,154)
Cash equivalents (B)	-	-	-
Short term investments (C)	849	883	(35)
Total Cash, Cash Equivalents and Short-Term Investments (A)+(B)+(C) (D)	155,841	194,031	(38,190)
Current financial payables (including bonds, but excluding current portion of medium/long-term debt) (E)	293,813	146,200	147,613
- Other financial payables and bank overdrafts	293,970	146,507	147,463
- Hedging derivatives	(157)	(307)	150
Current portion of medium/long-term financial debt (F)	317,312	294,055	23,256
- Financial accruals and deferred income	4,889	6,001	(1,113)
- Payables for business acquisitions	17,202	9,554	7,649
- Bank borrowings	171,086	164,978	6,108
- Lease Liability – current portion	124,135	113,522	10,613
Current Financial Indebtedness (E)+(F) (G)	611,126	440,255	170,869
Net Current Financial Indebtedness (G)-(D) (H)	455,284	246,224	209,059
Non current financial payables (I)	716,362	753,337	(36,975)
- Bank borrowings – Non current portion	323,596	362,199	(38,603)
- Payables for business acquisitions – Non current portion	4,540	7,229	(2,689)
- Lease Liability – Non current portion	388,226	383,909	4,316
Bonds (J)	350,000	350,000	-
- Eurobond 2020-2027	350,000	350,000	-
Trade and other non current payables (K)	-	-	-
Non Current Financial Indebtedness (I)+(J)+(K) (L)	1,066,362	1,103,337	(36,975)
Total Financial Indebtedness (H)+(L) (M)	1,521,646	1,349,561	172,084

Excluding lease liabilities (€512,361 thousand at 30 June 2024), net financial indebtedness amounted to €1,009,285 thousand at 30 June 2024, broken down as follows:

(€ thousands)	06/30/2024	12/31/2023	Change
Cash and Cash Equivalents	154,992	193,148	(38,155)
Short Term Investments	849	884	(35)
Cash, Cash Equivalents and Short Term Investments	155,841	194,031	(38,190)
Current Financial Indebtedness (excluding lease liabilities)	486,990	326,733	160,257
Net Current Financial Indebtedness (excluding lease liabilities)	331,149	132,702	198,447
Non current Financial Indebtedness (excluding lease liabilities)	678,136	719,428	(41,292)
Total Financial Indebtedness (excluding lease liabilities)	1,009,285	852,130	157,155

In June 2024 the Group subscribed the last €50 million tranche of the €350 million loan with the European Investment Bank (EIB), of which €300 million was already subscribed, to support innovation and digitalization. This loan increases the available, unutilized irrevocable credit lines which amounted to €690 million at 30 June 2024.

In the second quarter, as agreed with the lenders and based on the original loan agreements, the ESG KPI relative to the €560 million in ESG-linked lines of credit were updated to reflect the new targets included in the new sustainability plan.

Long-term net financial debt, excluding lease liabilities, amounted to €678,136 thousand at 30 June 2024 (€719,428 thousand at 31 December 2023), a decrease of €41,292 thousand compared to 2023 explained mainly to the reclassification as short-term debt of the portions of long-term debt maturing in the next 12 months and deferred payments for acquisitions net of new subscriptions.

The short-term portion of net financial debt, excluding lease liabilities, increased by €198,447 thousand, going from €132,702 thousand at 31 December 2023 to €331,149 thousand at 30 June 2024 due primarily to hot money transactions and utilization of short-term credit lines temporary coverage of higher total debt.

The Group has unutilized, irrevocable lines of credit of €465 million which, in addition to the unutilized portion of the EIB loan of €225 million, the €74 million in available uncommitted credit lines and the cash generation expected for 2024, ensure enough liquidity to satisfy current obligations and support business needs.

More specifically, the short-term portion includes mainly other bank debt linked to hot money transactions and utilization of short-term credit lines (€293,171 thousand), the short-term portions of long-term bank loans (€171,086 thousand), interest payable on other bank borrowings (€884 thousand) and the Eurobond (€1,489 thousand) and lastly, the best estimate of the deferred payments for acquisitions (€17,202 thousand).

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 06/30/2024
Eurobond 2020-2027	350,000
Loan with the European Investment Bank	125,000
Other medium/long-term debt	198,596
Fees on Eurobond 2020-2027 and bank loans	(1,427)
Medium/long-term financial liabilities	672,169

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

(€ thousands)	Balance at 06/30/2024
Bank overdraft and other short-term debt (including current portion of other long-term debt)	464,547
Other financial payables	4,889
Fees on bank loans	(966)
Short-term financial liabilities	468,470

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

10. Financial liabilities

The financial liabilities breakdown is as follows:

(€ thousands)	Balance at 06/30/2024	Balance at 12/31/2023	Change
Eurobond 2020-2027	350,000	350,000	-
Loan with European Bank of Investments	125,000	75,000	50,000
Other medium long-term bank loans	198,596	287,199	(88,603)
Fees on Eurobond 2020-2027 and bank loans	(1,427)	(1,932)	505
Total long-term financial liabilities	672,169	710,267	(38,098)
Short term debt	468,470	316,413	152,057
- of which debts for account overdrafts and other short-term liabilities	292,661	146,299	146,362
- of which current portion of short-term bank loans	171,086	164,978	6,108
- of which for bank loans	(965)	(1,075)	110
Total short-term financial liabilities	468,470	316,413	152,057
Total financial liabilities	1,140,639	1,026,679	113,960

The main financial liabilities are detailed below.

- Eurobond 2020-2027

This is a €350,000 thousand 7-year non-convertible bond with a fixed annual coupon of 1.125% that is listed on the Luxembourg Stock Exchange's unregulated market.

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

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

- Bank loans

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

	Issue Date	Debtor	Type	Maturity	Nominal value (€/000)	Outstandi ng debt (€/000)	Nomi nal intere st rate (*)	Hedged nominal amount (**)	Interest rate after hedging (**)
Loan EIB	12/15/23	Amplifon S.p.A.	Amortizing	12/15/32	125,000	125,000	(***)
	04/06/20	Amplifon S.p.A.	Amortizing	04/06/25	50,000	14,285	5.141%	14,285	0.880%
	04/28/20	Amplifon S.p.A.	Amortizing	04/28/25	50,000	37,500	4.855%
	04/23/20	Amplifon S.p.A.	Amortizing	06/30/25	35,000	16,625	4.572%	16,625	0.785%
Other bank	08/03/20	Amplifon S.p.A.	Amortizing	06/30/25	10,000	2,042	4.850%
loans	12/23/21	Amplifon S.p.A.	Amortizing	12/23/26	210,000	159,600	4.472%	159,600	0.963%
	04/07/20	Amplifon S.p.A.	Amortizing	04/07/25	150,000	60,000	4.884%	40,000	1.05%
	04/29/20	Amplifon S.p.A.	Amortizing	04/29/25	78,000	19,500	5.325%	13,650	1.414%
	12/29/23	Amplifon S.p.A.	RCF (no cleandown)	09/30/26	60,000	60,000	4.900%
		Total			768,000	494,552		244,160

(*) The nominal interest rate comprises the benchmark rate (Euribor) plus the applicable spread.

(**) An Interest Rate Swap was used to hedge these loans against interest rate risk at the IRS rate plus a spread.

(***) The rate for €75 million granted in 2023 is equal to 3.653% until 12/15/2027. It will subsequently be adjusted to reflect current market conditions and the Group may choose either a fixed or a floating rate. For the €50 million granted in 2024, there is a fixed rate applied of 3.902%.

Group's loans, bonds, and revolving credit lines are subject to the following financial covenants:

• the net financial indebtedness, excluding lease liabilities, to Group net equity (Net Worth Ratio) must not exceed 1.65;
• the Leverage Ratio, calculated as the ratio of net financial debt, excluding lease liabilities, to EBITDA recorded in the last four quarters (determined excluding the fair value of the stock-based payments, based solely on recurring business, and restated if the Group's structure should change significantly), must not exceed 2.85;
• the Interest Cover, calculated as the ratio of EBITDA (restated like the EBITDA used to calculate the leverage ratio) recorded in the last four quarters and the net interest owed in the same four quarters, must not exceed 4.9.

Typically, in the event of relevant acquisitions, the first two ratios may be increased to 2.20 and 3.26, respectively, for a period of not more than 12 months, twice over the life of the respective loans.

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 €99.5 million. - Irrevocable credit lines with top-tier banking institutions of €110 million.	≤ 2.85	≤ 1.65	-	≤ 3.26 (Leverage Ratio) ≤ 2.20 (Net Worth Ratio)
- €14.3 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 €36 million; -Irrevocable lines of credit with premier banks amounted to €40 million (of which €115 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 €350 million loan, to date used for €125 million, granted by the European Investment Bank are not subject to covenants. However, the financial covenants on the other credit facilities will also be extended to these lenders as a result of a most favoured clause.

The three financial covenants and the relative spikes, shown in the table above, are, therefore, applied to these credit lines to the extent that they are also applied to the other facilities.

As at 30 June 2024 these ratios were as follows

	Value as at 06/30/2024
Net financial indebtedness excluding lease liabilities/Group net equity (Net Worth Ratio)	0.89
Net financial position excluding lease liabilities/EBITDA for the last four quarters (Leverage Ratio)	1.70
EBITDA for the last 4 quarters/Net financial expenses (Interest Cover)	16.63

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

(€ thousands)	Value as at 06/30/2024
Group EBITDA first half 2024	293,773
EBITDA July-December 2023	262,091
Fair value of stock grant assignment	19,651
EBITDA normalized (from acquisitions and disposals)	12,897
Acquisitions and non-recurring costs	6,102
EBITDA for the covenant calculation	594,514

The same agreements are also subject to other covenants applied in current international practice which limit the ability to issue guarantees and complete sales and lease backs, as well as extraordinary transactions involving the sale of assets.

11. Provision for risks and charges

Provisions for risks and charges amounted to €22,544 thousand, slightly higher than the €20,647 thousand recorded at 31 December 2023.

The provisions for risks at 30 June 2024 are detailed below:

(€ thousands)	06/30/2024	12/31/2023	Change
Product warranty provision	1,248	1,191	57
Provision on contract risks	3,585	3,420	165
Agents' leaving indemnities	13,265	13,092	173
Other reserves for risks and charges	2,618	1,676	942
Total Long-term provision for risks and charges	20,716	19,379	1,337
Product warranty provision	203	205	(2)
Other reserves for risks and charges	1,625	1,063	562
Total Short-term provision for risks and charges	1,828	1,268	560
Total provision for risks and charges	22,544	20,647	1,897

12. Lease liabilities

The lease liabilities stem from long-term leases and rental agreements. These liabilities are equal to the present value of future installments payable over the lease term.

The finance lease liabilities are shown in the statement of financial position as follows:

(€ thousands)	06/30/2024	12/31/2023	Change
Short term lease liabilities	124,135	113,523	10,613
Long term lease liabilities	388,226	383,909	4,316
Total lease liabilities	512,361	497,432	14,929

During the reporting period, following costs have been booked in profit and loss:

(€ thousands)	First Half 2024
Interest charges on leased assets	(8,916)
Right-of-use depreciation	(64,053)
Costs for short-term leases and leases for low value assets	(8,795)

13. Revenues from sales and services

(€ thousands)	First Half 2024	First Half 2023	Change
Revenues from sale of products	1,028,228	965,404	62,824
Revenues from services	149,023	148,366	657
Total revenues from sales and services	1,177,251	1,113,770	63,481
Goods and services provided at a point in time	1,028,228	965,404	62,824
Goods and services provided over time	149,023	148,366	657
Total revenues from sales and services	1,177,251	1,113,770	63,481

Consolidated revenues from sales and services amounted to €1,117,251 thousand in the first six months of 2024, an increase of €63,481 thousand (+5.7%) compared to the same period of the prior year.

The increase compared to the first half of 2023 is attributable for €50,412 thousand to organic growth (+4.6%), acquisitions for €38,301 thousand (+3.4%) and negative exchange differences for €25,232 thousand (-2.3%).

Revenues of the Argentine subsidiary were impacted by the inflation accounting used pursuant to IAS 29 (Inflation Accounting), which had a positive impact on the Group's organic growth and a negative impact on the exchange effect of 0.3%, respectively.

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

Operating costs amounted to €887,685 thousand in the first six months of 2024 (€853,766 thousand in the first six months of 2023), an increase of €33,919 thousand (+4%).

"Amortization, depreciation and impairment" amounted to €144,826 thousand at 30 June 2024 higher than the €128,541 thousand recorded in the first six months of 2023.

"Financial income, expenses and value adjustments to financial assets" came to €27,515 thousand in the first half of 2024 (€23,718 thousand in the first six months of 2023). The change in the reporting period of €3,797 thousand is explained by an increase in interest payable on short-term credit lines, on the floating rate portion of medium/long-term debt and on lease accounting attributable to both greater average debt and higher interest rates compared to the first half of 2023 which was partially offset by lower currency management expenses as well as financial income stemming mainly from the recognition of deferred payment of purchases made using tax credits arising from concessions contained in and regulated by Article 119 and 121 of Law Decree No. 34/2020 ("Decreto Rilancio").

Current and deferred tax amounted to €33,558 thousand in the first six months of 2024, €2,382 thousand lower than in the first six months of 2023 (€31,176 thousand).

The tax rate was 27.6% in the reporting period versus 27.7% at 30 June 2023.

15. Performance Stock Grant

On May 7, 2024, the Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99 and subsequent amendments, resolved to allocate 551,800 target rights at the end of a 3-year vesting period as the first tranche of the stock grant cycle 2024- 2026.

The fair value per unit of these granted stock grants during the reported period is €31.46.

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

Valuation Model	Binomial Tree (Cox-Ross-Rubinstein method)
Price at grant date	€32.26
Threshold	- €
Exercise price	0.00
Volatility (3 years)	33.51%
Risk-free interest rate	3.038%
Maturity (in years)	3
Maturity date	3 months after the approval date by the Board of Directors of the Consolidated Financial Statements as at December 31, 2026
Expected Dividend Yield	0.87%

The figurative cost of this grant cycle recorded in the income statement as of June 30, 2024, amounts to €843 thousand.

Sustainable value sharing plan 2022-2027

The Board of Directors of Amplifon S.p.A., following the recommendation of the Remuneration and Nomination Committee, pursuant to Article 84 bis, paragraph 5 of Consob Regulation no. 11971/99, has resolved to allocate a maximum of 109,200 rights under the Sustainable Value Sharing Plan 2022-2027, reserved for the CEO and Key Executives of the Group (Beneficiaries), as described in the Information Document approved by the Shareholders' Meeting on April 24, 2024.

The scheme is a composite incentive tool that operates through two distinct phases, of which the second phase is contingent and dependent on the progress of the first phase (referred to as "Phase A" and "Phase B," respectively). Phase A: Starting from the 2024 fiscal year, the Target MBO achieved and hypothetically due to the Beneficiaries under the applicable MBO Plan for the previous fiscal year (including the one related to 2023) will not be paid out. Instead, the Beneficiaries will receive a certain number of rights (the "Co-invested Rights") that will entitle them to receive shares at the end of the vesting period of Phase B described below, or earlier if Phase B does not vest.

Phase B: If, in a given fiscal year, the Beneficiaries receive Co-invested Rights under the mechanism described above, they will participate in an additional and separate incentive tool based on financial instruments, wherein the Company allocates additional rights to them, equal in number to the Co-invested Rights. These rights (the "Matched Rights") will entitle the Beneficiaries to receive shares provided that certain performance targets linked to value generation and sustainable success of the Group are met by the end of the vesting period.

Regarding the Sustainable Value Sharing Plan 2022-2027 reserved for the CEO and Key Executives of the Group, the conversion of the accrued MBO led to the allocation of 54,600 Coinvested Rights and 54,600 Matched Rights.

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

	PHASE A	PHASE B
Valuation model	Binomial Tree (Cox-Ross-Rubinstein method)	Binomial Tree (Cox-Ross-Rubinstein method)
FV	€31.46	€24.83
KPI	-	ESG/TSR
Exercise price	0.00
Volatility (3 years)	33.51%	33.51%
Risk-free interest rate	3.038%	3.038%
Maturity (in years)	3	3
Maturity date	3 months after the approval date by the Board of Directors of the	3 months after the approval date by the Board of Directors of the
	Consolidated Financial Statements as at December 31, 2026	Consolidated Financial Statements as at December 31, 2026
Expected dividend yield	0.87%	0.87%

16. Non-recurring significant events

The first six months of 2024 were impacted by the following non-recurring items:

		First Half	First Half
(€ thousands)		2024	2023
Operating costs	Costs incurred to define and implement amendments to the Articles of Association including the enhanced voting rights	(1,738)	-
	Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO	(920)	(10,394)
	Costs related to second phase of the GAES integration	(723)	(889)
	Costs related to Bay Audio integration	(85)	-
EBITDA		(3,466)	(11,283)
Profit (loss) before tax		(3,466)	(11,283)
	Impact of the above items on the tax burden for the period	979	3,296
Total net profit (loss)		(2,487)	(7,987)

17. Earnings (loss) per share

Basic Earnings (loss) per share

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

Earnings per share are determined as follows:

Earnings per share	First Half 2024	First Half 2023
Net profit (loss) attributable to ordinary shareholders (€ thousand)	87,793	81,357
Average number of shares outstanding in the period	225,979,292	224,276,860
Average number per share (€ per share)	0.38850	0.36275

Diluted earnings (loss) per share

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

The potential ordinary share categories refer to the possible conversion of Group employees' stock options and stock grants' attribution. The computation of the average number of outstanding potential shares is based on the average fair value of shares for the period; stock options and stock grants are excluded from the calculation since they have anti-diluting effects.

Weighted average diluted number of shares outstanding	First Half 2024	First Half 2023
Average number of shares outstanding in the period	225,979,292	224,276,860
Weighted average of potential and diluting ordinary shares	1,777,512	1,848,314
Weighted average of shares potentially subject to options in the period	227,756,804	226,125,174

The diluted earnings per share were determined as follows:

Diluted earnings per share	First Half 2024	First Half 2023
Net profit attributable to ordinary shareholders (€ thousand)	87,793	81,357
Average number of shares outstanding in the period	227,756,804	226,125,174
Average diluted earnings per share (€)	0.38547	0.35979

18. Transactions with parents and other related parties

The parent company, Amplifon S.p.A. is based in Via Ripamonti 133, Milan, Italy. The Group is controlled directly by Ampliter S.r.l. (42.06% of share capital and 59.13% of voting rights), held for 100.0% by Amplifin S.r.l., which is owned for 100% by Susan Carol Holland.

The transactions with related parties, including intercompany transactions, do not qualify as atypical or unusual, and fall within the Group's normal course of business and are conducted at arm's-length as dictated by the nature of the goods and services provided.

The following table details transactions with related parties.

		06/30/2024		First Half 2024
(€ thousand)	Trade receivables	Trade payables	Other receivables	Revenues for sales and services	Operating (costs)/revenues	Interest income and expense
Amplifin S.r.l.	15	(5)	-	-	15	-
Total – Parent company	15	(5)	-	-	15	-
Comfoor BV (The Netherlands)	35	2,482	-	40	(766)	-
Ruti Levinson Institute Ltd (Israel)	20	-	-	-	-	-
Afik - Test Diagnosis & Hearing Aids Ltd (Israel)	20	-	-	-	-	1
Total – Other related parties	75	2,482	-	40	(766)	1
Total related parties	90	2,477	-	40	(751)	1
Total as per financial statements	215,274	321,669	136,023	1,177,251	(887,685)	(16,717)
% of financial statements total	0.04%	0.77%	0.00%	0.00%	0.08%	0.00%

The trade and other receivables refer primarily to:

• the recovery of maintenance costs and building fees from Amplifin S.r.l.;
• the receivables due by Amplifin S.r.l. for the renovation of the headquarters based on modern and efficient standards for the use of workspaces;
• the trade receivables due by associates (mainly in Israel) who act as resellers and to which the Group supplies hearing aids.

The trade payables and operating costs refer primarily to commercial transactions with Comfoor BV, a joint venture from which hearing protection devices are purchased and then distributed in Group stores.

The lease for the Milan headquarters (leased to Amplifon by the parent company Amplifin) is recognized under right-of-use depreciation for €912 thousand, interest on leases for €236 thousand, lease liabilities of €11,181 thousand, and right-of-use asset of €10,027 thousand.

19. Contingent liabilities

Currently the Group is not exposed to any particular risks, uncertainties or legal disputes in excess of the provisions already made in the financial statements, shown in Note 11. The usual tax audits are currently underway and no findings of note have been reported so far and the Group is, at any rate, confident in the adequacy of the measures implemented.

20. Financial risk management

As this condensed consolidated interim financial report does not include all the additional information that is mandatorily included in the Annual Report relating to the management of financial risk, for a detailed analysis of financial risk management reference should be made to the Group's 2023 Annual Report.

21. Translation of foreign companies' financial statements

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

	30 June 2024		2023	30 June 2023
	Average exchange rate	As at 30 June	As at 31 December	Average exchange rate	As at 30 June
Panamanian balboa	1.0705	1.0813	1.1050	1.0807	1.0866
Australian dollar	1.6079	1.6422	1.6263	1.5989	1.6398
Canadian dollar	1.4670	1.4685	1.4642	1.4565	1.4415
New Zealand dollar	1.7601	1.7752	1.7504	1.7318	1.7858
Singapore dollar	1.4513	1.4561	1.4591	1.4440	1.4732
US dollar	1.0705	1.0813	1.1050	1.0807	1.0866
Hungarian florin	395.1000	389.7600	382.80	380.85	371.93
Swiss franc	0.9634	0.9615	0.9260	0.9856	0.9788
Egyptian lira	51.4080	44.8310	34.1589	32.8841	33.5743
New Israeli shekel	4.0200	3.9951	3.9993	3.8828	4.0486
Argentine peso (*)	975.3883	975.3883	892.9239	278.5022	278.5022
Chilean peso	1021.5400	1016.2400	977.07	871.11	872.59
Colombian peso	4463.0000	4238.8300	4267.52	4960.43	4546.24
Mexican peso	19.5654	18.5089	18.7231	19.6457	18.5614
Chinese renminbi	7.7748	7.8011	7.8509	7.4894	7.8983
Indian rupee	89.2495	89.9862	91.9045	88.8443	89.2065
British pound	0.8464	0.8546	0.8691	0.8764	0.8583
Polish zloty	4.3090	4.3169	4.3395	4.6244	4.4388
Uruguayan peso	42.3314	41.9655	N.A.	N.A.	N.A.

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

The average Argentine peso exchange rate as at 30 June 2024 is 929.0128 and 229.1778 at 30 June 2023.

22. Segment reporting

In accordance with IFRS 8 "Operating Segments", the schedules related to each operating segment are shown below.

The Amplifon Group's business (distribution and customization of hearing solutions) is organized into three specific geographical areas which comprise the Group's operating segments: Europe, Middle-East and Africa - EMEA - (Italy, France, The Netherlands, Germany, the United Kingdom, Spain, Portugal, Switzerland, Belgium, Hungary, Egypt, Poland, and Israel), Americas (USA, Canada, Chile, Argentina, Ecuador, Colombia, Panama, Mexico and Uruguay) and Asia-Pacific (Australia, New Zealand, India, and China).

The Group also operates via centralized Corporate functions (Corporate bodies, general management, business development, procurement, treasury, legal affairs, human resources, IT systems, global marketing and internal audit) which do not qualify as operating segments under IFRS 8.

These areas of responsibility, which coincide with the geographical areas (the Corporate functions are recognized under EMEA), represent the organizational structure used by management to run the Group's operations. The reports periodically analyzed by the Chief Executive Officer and Top Management are divided up accordingly, by geographical area.

Performances are monitored and measured for each operating segment/geographical area, through operating profit including amortization and depreciation (EBIT), along with the portion of the results of equity investments in associated companies valued by using the equity method. Financial expenses are not monitored insofar as they are based on corporate decisions regarding the financing of each region (own funds versus borrowings) and, consequently, neither are taxes. Items in the statement of financial position are analyzed by the geographical area without being separated from the Corporate functions which remain part of EMEA. All the information relating to the income statement and the statement of financial position is determined using the same criteria and accounting standards used to prepare the consolidated financial statements.

Statement of Financial Position as at June 30th, 2024 (*)

(€ thousands)	EMEA	AMERICAS	APAC	ELIM.	CONSOLIDATED
ASSETS
Non-current assets
Goodwill	1,005,129	300,607	617,142	-	1,922,878
Intangible fixed assets with finite useful life	306,376	62,519	64,115	-	433,010
Property, plant, and equipment	157,790	36,989	42,633	-	237,412
Right-of-use assets	378,228	48,618	65,944	-	492,790
Equity-accounted investments	2,726	-	-	-	2,726
Hedging instruments	8,713	-	-	-	8,713
Deferred tax assets	57,315	9,159	11,884	-	78,358
Deferred contract costs	10,560	1,240	28	-	11,828
Other assets	49,753	8,207	2,015	-	59,975
Total non-current assets					3,247,690
Current assets
Inventories	64,505	8,557	10,001	-	83,063
Receivables	332,682	77,877	29,369	(88,631)	351,297
Deferred contract costs	5,328	964	169	-	6,461
Hedging instruments	2,369	-	-	-	2,369
Other financial assets					867
Cash and cash equivalents					154,992
Total current assets					599,049
TOTAL ASSETS					3,846,739
LIABILITIES
Net Equity					1,138,588
Non-current liabilities
Medium/long-term financial liabilities					672,169
Lease liabilities	306,092	39,714	42,420	-	388,226
Provisions for risks and charges	18,898	925	893	-	20,716
Liabilities for employees' benefits	11,633	20	704	-	12,357
Deferred tax liabilities	64,731	22,973	15,167	-	102,871
Payables for business acquisitions	639	3,901	-	-	4,540
Contract liabilities	149,862	14,299	2,008	-	166,169
Other long-term liabilities	45,112	188	3,075	-	48,375
Total non-current liabilities					1,415,423
Current liabilities
Trade payables	282,893	75,345	51,867	(88,436)	321,669
Payables for business acquisitions	9,708	6,433	1,061	-	17,202
Contract liabilities	94,926	16,871	8,317	-	120,114
Other payables and tax payables	190,271	20,358	24,360	(195)	234,794
Hedging instruments	445	-	-	-	445
Provisions for risks and charges	1,170	658	-	-	1,828
Liabilities for employees' benefits	1,056	395	2,620	-	4,071
Short-term financial liabilities					468,470
Lease liabilities	87,209	12,842	24,084	-	124,135
Total current liabilities					1,292,728
Total liabilities					3,846,739

(*) The items in the statement of financial position are analyzed by the CEO and Top Management by geographic area without being separated from the Corporate functions which are included in EMEA.

Statement of Financial Position as at December 31st, 2023 (*)

(€ thousands)	EMEA	AMERICAS	APAC	ELIM.	CONSOLIDATED
ASSETS
Non-current assets
Goodwill	955,383	237,178	607,013	-	1,799,574
Intangible fixed assets with finite useful life	300,231	50,646	65,712	-	416,589
Property, plant, and equipment	148,081	29,929	43,506	-	221,516
Right-of-use assets	373,293	44,949	59,911	-	478,153
Equity-accounted investments	2,444	-	-	-	2,444
Hedging instruments	12,933	-	-	-	12,933
Deferred tax assets	63,112	7,307	12,282	-	82,701
Deferred contract costs	9,988	1,257	30	-	11,275
Other assets	30,896	14,025	1,914	-	46,835
Total non-current assets					3,072,020
Current assets
Inventories	70,314	8,729	9,277	-	88,320
Receivables	311,674	70,510	34,213	(84,960)	331,437
Deferred contract costs	5,776	914	150	-	6,840
Hedging instruments	549	-	-	-	549
Other financial assets					901
Cash and cash equivalents					193,148
Total current assets					621,195
TOTAL ASSETS					3,693,215
LIABILITIES
Net Equity					1,101,678
Non-current liabilities
Medium/long-term financial liabilities					710,267
Lease liabilities	305,426	37,599	40,884	-	383,909
Provisions for risks and charges	17,668	896	815	-	19,379
Liabilities for employees' benefits	12,119	143	701	-	12,963
Deferred tax liabilities	62,023	19,725	16,703	-	98,451
Payables for business acquisitions	5,088	2,141	-	-	7,229
Contract liabilities	139,036	12,341	2,339	-	153,716
Other long-term liabilities	21,773	511	4,095	-	26,379
Total non-current liabilities					1,412,293
Current liabilities
Trade payables	327,768	70,879	45,073	(84,765)	358,955
Payables for business acquisitions	4,283	4,889	382	-	9,554
Contract liabilities	96,941	15,279	7,823	-	120,043
Other payables and tax payables	195,847	28,063	31,819	(195)	255,534
Hedging instruments	242	-	-	-	242
Provisions for risks and charges	586	682	-	-	1,268
Liabilities for employees' benefits	1,069	381	2,263	-	3,713
Short-term financial liabilities					316,413
Lease liabilities	81,704	10,834	20,984	-	113,522
Total current liabilities					1,179,244
Total liabilities					3,693,215

(*) The items in the statement of financial position are analyzed by the CEO and Top Management by geographic area without being separated from the Corporate functions which are included in EMEA.

Income statement - June 30, 2024 (*)

(€ thousands)	EMEA	AMERICAS	APAC	CORPORATE	ELIM.	CONSOLIDATED
Revenues from sales and services	757,467	240,418	179,185	181	-	1,177,251
Operating costs	(533,912)	(180,528)	(131,935)	(41,310)	-	(887,685)
Other income and costs	2,184	1,821	(95)	297	-	4,207
Gross operating profit by segment (EBITDA)	225,739	61,711	47,155	(40,832)	-	293,773
Amortization, depreciation and impairment
Intangible assets amortization	(22,525)	(7,216)	(7,631)	(12,681)	-	(50,053)
Property, plant, and equipment depreciation	(17,584)	(3,859)	(7,859)	(773)	-	(30,075)
Right-of-use depreciation	(41,455)	(6,985)	(14,437)	(1,176)	-	(64,053)
Impairment losses and reversals of non current assets	(609)	-	(36)	-	-	(645)
	(82,173)	(18,060)	(29,963)	(14,630)	-	(144,826)
Operating result by segment	143,566	43,651	17,192	(55,462)	-	148,947
Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and gains/losses on disposals of equity investments	283	-	-	-	-	283
Interest income and expenses						(16,717)
Interest expenses on lease liabilities						(8,916)
Other financial income and expenses						(707)
Exchange gains and losses, and inflation accounting						(1,308)
Gain (loss) on assets accounted at fair value						(150)
						(27,515)
Net profit (loss) before tax						121,432
Current and deferred income tax
Current income tax						(27,957)
Deferred tax						(5,601)
						(33,558)
Net profit (loss)						87,874
Net profit (loss) attributable to Minority interests						81
Net profit (loss) attributable to the Group						87,793

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

Income statement - June 30, 2023 (*)

(€ thousands)	EMEA	AMERICAS	APAC	CORPORATE	ELIM.	CONSOLIDATED
Revenues from sales and services	735,482	212,661	165,381	246	-	1,113,770
Operating costs (**)	(521,746)	(157,095)	(122,773)	(52,152)	-	(853,766)
Other income and costs (**)	2,753	1,538	14	449	-	4,754
Gross operating profit by segment (EBITDA)	216,489	57,104	42,622	(51,457)	-	264,758
Amortization, depreciation and impairment
Intangible assets amortization	(20,260)	(5,113)	(7,415)	(10,480)	-	(43,268)
Property, plant, and equipment depreciation	(16,178)	(3,203)	(5,676)	(1,369)	-	(26,426)
Right-of-use depreciation	(38,673)	(5,390)	(13,479)	(1,133)	-	(58,675)
Impairment losses and reversals of non current assets	(161)	(5)	(6)	-	-	(172)
	(75,272)	(13,711)	(26,576)	(12,982)	-	(128,541)
Operating result by segment	141,217	43,393	16,046	(64,439)	-	136,217
Financial income, expenses and value adjustments to financial assets Group's share of the result of associated companies valued at equity and gains/losses on disposals of equity investments	207	-	-	-	-	207
Interest income and expenses						(10,927)
Interest expenses on lease liabilities						(6,990)
Other financial income and expenses						(1,925)
Exchange gains and losses, and inflation accounting						(4,609)
Gain (loss) on assets accounted at fair value						526
						(23,718)
Net profit (loss) before tax						112,499
Current and deferred income tax
Current income tax						(37,970)
Deferred tax						6,794
						(31,176)
Net profit (loss)						81,323
Net profit (loss) attributable to Minority interests						(34)
Net profit (loss) attributable to the Group						81,357

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

(**) It is specified that, on the comparative period, reclassifications between operating costs and other income and costs have been made in order to better represent financial information

23. Accounting policies

23.1 Presentation of the financial statements

The consolidated financial statements as at June 30, 2024 were prepared in accordance with the historical cost method with the exception of derivatives, a few financial investments measured at fair value and assets and liabilities hedged against changes in fair value, as explained in more detail in this report, as well as on a going concern basis.

With regard to the financial statements, the following is specified:

• in the statement of financial position, the Group distinguishes between non-current and current assets and liabilities;
• in the income statement, the Group classifies costs by nature insofar as this is deemed to more accurately represent the primarily commercial and distribution activities carried out by the Group;
• comprehensive income statement: in addition to the net result for the year, it includes the effects of changes in exchange rates, the cash flow hedge reserve, the foreign currency basis spread reserve on derivative instruments and the actuarial gains and losses that have been recognized directly in changes in shareholders' equity, these items are divided according to whether or not they can be subsequently reclassified to the income statement;
• statement of changes in net equity: the Group reports all the changes in net equity, including those deriving from shareholder transactions (payment of dividends and capital increases);
• statement of cash flows: is prepared using the indirect method to determine cash flow from operations.

23.2 Use of estimates in preparing the financial statements

The preparation of the financial statements and explanatory notes requires the use of estimates and assumptions particularly with regard to the following items:

• revenues for services rendered over time recognized based on the effort or the input expended to satisfy the performance obligation;
• allowances for impairment made based on the asset's estimated realizable value;
• provisions for risks and charges made based on a reasonable estimate of the amount of the potential liability, including with regard to any counterparty claims;
• provisions for obsolete inventories in order to align the carrying value of inventories with the estimated realizable value;
• provisions for employee benefits, calculated based on actuarial valuations;
• amortization and depreciation of intangible assets and tangible fixed assets recognized based on the estimated remaining useful life and the recoverable amount;
• income tax recognized based on the best estimate of the tax rate for the full year;
• IRS and currency swaps (instruments not traded on regulated markets), marked to market at the reporting date based on the yield curve and market exchange rates, which are subject to credit/debit valuation adjustments based on market prices;

• the lease term duration was determined on a lease-by-lease basis and is comprised of the "non-cancellable" period along with the impact of any extension or early termination clauses if exercise of that clause is reasonably certain. This property valuation took into account circumstances and facts specific to each asset;
• discount rate of leases falling within the scope of IFRS 16 (incremental borrowing rate) determined based on the IRS (reference interbank rate used as an index for fixed-rate mortgage loans) in the individual countries in which Amplifon Group companies operate, for maturities commensurate with the duration of the specific rental contract, plus the Parent Company's credit spread and any costs for additional guarantees. In the rare instances when the IRS rate is not available (Egypt, Ecuador, Mexico and Panama), the risk-free rate was determined based on government bonds with maturities similar to the duration of the specific rental contract.

Estimates and assumptions are periodically reviewed, and any changes made, following the change of the circumstances or the availability of better information, are recognized in the income statement. The use of reasonable estimates is essential to the preparation of the financial statements and does not affect their overall reliability.

The Group verifies the existence of a loss in value of goodwill regularly once a year or in the event of impairment indicators.

The impairment test is conducted for the groups of cash generating units to which the goodwill refers and based on which the Group values, directly or indirectly, the return on the investment that includes the goodwill.

23.3 IFRS standards/interpretations

IFRS/interpretations approved by the IASB, endorsed in Europe and applied for the first time this year

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

Description	Endorsement date	Publication in the G.U.C.E.	Effective date	Effective date for Amplifon
Amendments to IAS 1: "Presentation of Financial Statements: Classification of liabilities as current or non current", "Classification of Liabilities as Current or Non current - Deferral of Effective Date" and ''Non-current Liabilities with Covenants'' (issued on 23 January 2020, 15 July 2020 and 31 October 2022, respectively)	19 Dec '23	20 Dec '23	1 Jan '24	1 Jan '24
Amendments to IFRS 16 "Leases: Lease Liability in a Sale and Leaseback" (issued on 22 September 2022)	20 Nov '23	21 Nov '23	1 Jan '24	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)	15 May 24	16 Jun '24	1 Jan '24	1 Jan '24

IAS 1 amendments are related to the definitions of current and non-current liabilities, providing a more generalized approach to the classification of liabilities under the standard, based on the contractual agreements. The amendments clarify the criteria for classifying a liability as current or non-current and require new disclosures in financial statements regarding non-current liabilities that include covenants to be satisfied within twelve months after the reporting period.

The Amplifon Group has applied the temporary exemption provided by the amendment to IAS 12, issued by the International Accounting Standards Board ("IASB") on 23 May 2023, regarding the recognition and related disclosure to be provided in the consolidated financial statements in relation to deferred tax assets and liabilities arising from the application of the minimum level of taxation ("Global Minimum Tax") provided by Directive (EU) 2022/2523 of 14 December 2022 (the "Directive"), under the Global Anti-Base Erosion Model Rules (Pillar Two).

Toward this end, on 28 December 2023, Legislative Decree No. 209 of 27 December 2023 implementing the international tax reform which came into effect on 29 December 2023, containing the Italian provisions related to Pillar Two, was published in the Official Gazette.

In light of the above, an analysis was carried out in order to estimate the potential impact of Pillar Two application on the Group in 2024 and at 30 June 2024. Based on this analysis, the Pillar Two rules should not have a material impact on the Group in 2024.

IFRS 16 amendments are related to the definitions of liabilities derived from leasebacks and the accounting treatment of any gains or losses stemming from these transactions.

IAS 7 and IFRS 7 amendments refer to the disclosure of information deemed relevant for the purposes of Supplier Finance Arrangements.The purpose of these amendments is to make it easier for financial statement users to understand the effects of these arrangements on liabilities, cash flows and exposure to liquidity risk.

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

23.4 Future accounting standards and interpretations

IFRS standards/interpretations approved by IASB, but not endorsed in Europe

The following are the international accounting standards, interpretations, amendments to existing accounting standards and interpretations, or specific provisions contained in the standards and interpretations approved by the IASB which, at 8 July 2024, have yet to be endorsed for adoption in Europe.

Description	Effective date
Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability" (issued on 15 August 2023)	Periods beginning on or after 1 Jan '25
Amendments to IFRS 9 and IFRS7 "Classification and Measurement of Financial Instruments" (issued on 30 May 2024)	Periods beginning on or after 1 Jan '26

IAS 7 amendments refer to the disclosure of information deemed relevant for the purposes of Supplier Finance Arrangements.

The amendments to IAS 21 proposed by IASB provide clarification as to exchange whether a currency is exchangeable and which exchange rate to be use if it is not.

The amendments to IFRS9 and IFRS7 proposed by IASB are related to the settlement of liabilities through electronic payment systems and to clarifying the classification of financial assets with environmental, social and corporate governance (ESG) and similar features.

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

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

24. Subsequent events

During July, the Amplifon Group continued its external growth with the acquisition of a U.S. Miracle-Ear network'sfranchisee active in the Northeastern United States through 14 stores and additional 19 stores in China, 8 in France, 3 in Germany and 2 in Italy.

On July 11th, the Company announced the results of the option and pre-emption offer of shares subject to withdrawal made pursuant to article 2437 quater, paragraph 2, of the Italian Civil Code, therefore completing the procedure for the approval of enhancements of the increased voting rights mechanism begun by the Shareholders' Meeting on April 30th, 2024. The relative amendments to the Articles of Association remain fully implemented. As the option and preemption offer was fully subscribed, Amplifon's share capital remains unchanged.

Milan, July 30th, 2024

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 June 2024.

Parent company:

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

Subsidiaries consolidated using the line-by-line method:

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 06/30/2024
Amplifon Rete	Milan (Italy)	I	EUR	19,250	2.6%
Amplifon Italia S.p.A.	Milan (Italy)	D	EUR	100,000	100.0%
Amplifon France SAS	Arcueil (France)	D	EUR	173,550,898	100.0%
SCI Eliot Leslie	Lyon (France)	I	EUR	610	100.0%
New Ear SAS	Guidel (France)	I	EUR	502,830	100.0%
Ghama EURL	Guidel (France)	I	EUR	5,000	100.0%
Adagio SARL	Guidel (France)	I	EUR	14,000	100.0%
Audition Guidel EURL	Guidel (France)	I	EUR	1,500	100.0%
Labo Audio SAS	Libourne (France)	I	EUR	50,000	100.0%
Toumelin SAS	Pornichet (France)	I	EUR	7,622	100.0%
Pornic Audition SAS	Pornic (France)	I	EUR	118,000	100.0%
Audio Montfermeil SAS	Montfermeil (France)	I	EUR	1,000	100.0%
Amplitude Audition SAS	Prades-le-Lez (France)	I	EUR	1,000	100.0%
Boulben Audition – Majuni SAS	Queven (France)	I	EUR	15,000	100.0%
OSX Solutions Auditives SAS	Vitry-Sur-Seine (France)	I	EUR	1,000	100.0%
Nouvelle Audition SAS	Roquefort-Les Pins (France)	I	EUR	5,000	100.0%
Ondes DBR SAS	Baillargues (France)	I	EUR	3,000	100.0%
Audition Fontaine SAS	Barentin (France)	I	EUR	100,000	100.0%
Armor audition SAS	Brest (France)	I	EUR	7,622	100.0%
AFL audition Frank Lefevre SAS	Brest (France)	I	EUR	200,000	100.0%
GFL audition SAS	Rennes (France)	I	EUR	10,000	100.0%
Grousseau SAS	Beauvais (France)	I	EUR	7,700	100.0%
Nadov Audition SAS	Juvisy (France)	I	EUR	5,000	100.0%
Pastel Audiologie SAS	Villefranche de Lauragais (France)	I	EUR	835,970	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 06/30/2024
Pastel Audition SAS	Villefranche de Lauragais (France)	I	EUR	10,000	100.0%
Acoustiques des Halles SAS	Biarritz (France)	I	EUR	80,000	100.0%
Audition Détente SAS	Saint-André-de Sangonis (France)	I	EUR	2,222	100.0%
Amplifon Ibérica, S.A.U.	Barcelona (Spain)	D	EUR	26,578,809	100.0%
Microson S.A.	Barcelona (Spain)	D	EUR	61,752	100.0%
Amplifon LATAM Holding, S.L.U.	Barcelona (Spain)	I	EUR	3,000	100.0%
Amplifon Portugal SA	Lisboa (Portugal)	I	EUR	15,520,187	100.0%
Amplifon Magyarország Kft	Budapest (Hungary)	D	HUF	723,500,000	100.0%
Amplibus Magyarország Kft	Budaörs (Hungary)	I	HUF	3,000,000	100.0%
Amplifon AG	Baar (Switzerland)	D	CHF	1,000,000	100.0%
Amplifon Nederland B.V.	Doesburg (The Netherlands)	D	EUR	74,212,052	100.0%
Auditech B.V.	Doesburg (The Netherlands)	I	EUR	22,500	100.0%
Electro Medical Instruments B.V.	Doesburg (The Netherlands)	I	EUR	16,650	100.0%
Beter Horen B.V.	Doesburg (The Netherlands)	I	EUR	18,000	100.0%
Amplifon Customer Care Service B.V.	Elst (Olanda)	I	EUR	18,000	100.0%
Amplifon Belgium N.V.	Bruxelles (Belgium)	D	EUR	495,800	100.0%
Amplifon RE SA	Lussemburgo (Luxembourg)	D	EUR	3,700,000	100.0%
Pilot Blankenfelde Medizinisch Elektronische Gerate GmbH	Blankenfelde Mahlow (Germany)	D	EUR	34,595	100.0%
Amplifon Deutschland GmbH	Hamburg (Germany)	D	EUR	6,026,000	100.0%
Focus Hören AG	Willroth (Germany)	I	EUR	485,555	100.0%
focus hören Deutschland GmbH	Willroth (Germany)	I	EUR	25,000	100.0%
Hörvergnügen GmbH	Buchholz (Germany)	I	EUR	25,000	100.0%
Audea Hörcenter GmbH	Meppen (Germany)	I	EUR	250,000	100.0%
Pavel Hören und Sehen GmbH & Co. KG	Münster (Germany)	I	EUR	122,566	100.0%
Hörwelt Duisburg GmbH	Duisburg (Germany)	I	EUR	25,000	100.0%
Wilms Hörsysteme GmbH	Cologne (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%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 06/30/2024
Elite Hearing, LLC	Minneapolis (United States)	I	USD	1,000	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	-	100.0%
Amplifon USA Inc.	Dover (United States)	D	USD	52,500,010	100.0%
METX, LLC	Waco (United States)	I	USD	-	100.0%
MEFL, LLC	Waco (United States)	I	USD	-	100.0%
METampa, LLC	Waco (United States)	I	USD	-	100.0%
MENM, LLC	Waco (United States)	I	USD	-	100.0%
ME Flagship, LLC	Wilmington (United States)	I	USD	-	100.0%
ME Pivot Holdings, LLC	Minneapolis (United States)	I	USD	2,000,000	100.0%
MEOH, LLC	Minneapolis	I	USD	-	100.0%
Miracle Ear Canada Ltd.	(United States) Vancouver	I	CAD	141,601,200	100.0%
2829663 Ontario Inc (**)	(Canada) 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%
Raindrop Hearing Clinici Inc (**)	Toronto (Canada)	I	CAD	-	100.0%
The Hearing Clinic (**)	Scarborough (Canada)	I	CAD	-	100.0%
Terrace Hearing Clinic Ltd. (**)	Terrace (Canada)	I	CAD	-	100.0%
Lisa Reid Audiology Hearing Centres (**)	Manitoba (Canada)	I	CAD	-	100.0%
Great to Hear, Inc (**)	Manitoba (Canada)	I	CAD	-	100.0%
Ontario, Inc (**)	Ontario (Canada)	I	CAD	-	100.0%
Living Sounds Hearing Centre Ltd. (**)	Alberta (Canada)	I	CAD	-	100.0%
Professional Hearing Services Ltd./100391416 Ontario Ltd. (**)	Ontario (Canada)	I	CAD	-	100.0%
Sackville Hearing Centre Limited (**)	Nova Scotia (Canada)	I	CAD	-	100.0%
Hometown Hearing Centre Inc (**)	Bancroft (Canada)	I	CAD	-	100.0%
Newlife Hearing Inc. (**)	St. John's (Canada)	I	CAD	-	100.0%
Provincial Hearing Aid Service (Halifax) Ltd. (**)	Halifax (Canada)	I	CAD	-	100.0%
Audia Hearing Aid Centre Inc. (**)	Ontario (Canada)	I	CAD	-	100.0%
The Hearing Institute of Ontario,Inc.(**)	Ontario (Canada)	I	CAD	-	100.0%
Rupert Hearing Ltd (**)	Prince Rupert (Canada)	I	CAD	-	100.0%
GAES S.A. (Chile)	Santiago de Chile (Chile)	I	CLP	1,901,686,034	100.0%
GAES Servicios Corporativo de Latinoamerica SpA	Santiago de Chile (Chile)	I	CLP	10,000,000	100.0%
Audiosonic Chile S.A.	Santiago de Chile (Chile)	I	CLP	-	99.0%
GAES S.A. (Argentina)	Buenos Aires (Argentina)	I	ARS	120,542,331	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 06/30/2024
GAES Colombia S.A.S.	Bogotà (Colombia)	I	COP	22,000,000,000	100.0%
Audiovital Cìa. Ltda.	Quito (Ecuador)	I	USD	430,337	100.0%
Centros Auditivos GAES Mexico sa de cv	Ciudad de México (Mexico)	I	MXN	276,477,133	100.0%
Compañía de Audiologia y Servicios Medicos sa de cv	Aguascalientes (Mexico)	I	MXN	43,306,212	100.0%
GAES Panama S.A.	Panama (Panama)	I	PAB	510,000	100.0%
Audical S.A.S	Montevideo (Uruguay)	D	UYU	500,000	100.0%
Centro Auditivo S.A.S	Montevideo (Uruguay)	D	UYU	500,000	100.0%
Ikako S.A.	Montevideo (Uruguay)	D	UYU	100,000	100.0%
Amplifon Australia Holding Pty Ltd	Sydney (Australia)	D	AUD	392,000,000	100.0%
National Hearing Centres Pty Ltd	Sydney (Australia)	I	AUD	100	100.0%
National Hearing Centres Unit Trust	Sydney (Australia)	I	AUD	-	100.0%
Otohub Unit Trust (**)	Brisbane (Australia)	D	AUD	-	100.0%
Otohub Australasia Pty Ltd	Brisbane (Australia)	D	AUD	10	100.0%
Attune Hearing Pty Ltd	Brisbane (Australia)	D	AUD	14,771,093	100.0%
Attune Workplace Hearing Pty Ltd	Brisbane (Australia)	I	AUD	1	100.0%
Ear Deals Pty Ltd	Brisbane (Australia)	I	AUD	300,000	100.0%
Bay Audio Pty Ltd	Sydney (Australia)	D	AUD	10,000	100.0%
Amplifon Asia Pacific Pte Limited	Singapore (Singapore)	I	SGD	1,000,000	100.0%
Auckland Hearing Ltd	Auckland (New Zealand)	I	NZD	-	100.0%
Amplifon NZ Ltd	Takapuna (New Zealand)	I	NZD	130,411,317	100.0%
Bay Audiology Ltd	Takapuna (New Zealand)	I	NZD	-	100.0%
Dilworth Hearing Ltd	Auckland (New Zealand)	I	NZD	-	100.0%
Amplifon India Pvt Ltd	Gurgaon (India)	I	INR	2,050,000,000	100.0%
Beijing Amplifon Hearing Technology Center Co. Ltd	Běijīng (China)	D	CNY	507,250,000	100.0%
Tianjin Amplifon Hearing Technology Co. Ltd	Tianjin (China)	I	CNY	3,500,000	100.0%
Shijiazhuang Amplifon Hearing Technology Center Co. Ltd	Shijiazhuang (China)	I	CNY	100,000	100.0%
Amplifon (China) Investment Co. Ltd	Shanghai (China)	D	CNY	363,250,000	100.0%
Hangzhou Amplifon Hearing Aid Co. Ltd	Hangzhou (China)	D	CNY	11,000,000	100.0%
Zhengzhou Yuanjin Hearing Technology Co., Ltd.	Zhengzhou (China)	I	CNY	-	100.0%
Wuhan Amplifon Hearing Aid Co., Ltd.	Wuhan (China)	I	CNY	40,000,000	100.0%
Shanghai Amplifon Hearing Technology Co. Ltd	Shanghai (China)	I	CNY	50,000,000	100.0%
Nanjing Amplifon Hearing Aid Co. Ltd	Nanjing (China)	I	CNY	15,000,000	100.0%
Shanxi Amplifon Hearing Aid Co., Ltd.	Taiyuan (China)	I	CNY	30,000,000	100.0%
Henan Amplifon Hearing Aid Co., Ltd.	Luoyang (China)	I	CNY	1,000,000	100.0%
Fuzhou Tingan Medical Device Co. Ltd	Fuzhou (China)	I	CNY	20,000,000	100.0%
Chongqing Amplifon Hearing Aid Co., Ltd.	Chongqing (China)	I	CNY	10,000,000	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 06/30/2024
Sichuan Amplifon Hearing Aid Co., Ltd.	Chengdu (China)	I	CNY	9,000,000	100.0%
Xi'an Ansheng Medical Equipment Co.	Xi'an (China)	I	CNY	16,000,000	100.0%
Ningxia Listening Shunan Medical Equipment Co.	Yinchuan (China)	I	CNY	16,000,000	100.0%
Yunnan Amplifon Hearing Aid Co., Ltd.	Kunming (China)	I	CNY	16,000,000	100.0%
Shaanxi Xinhongchun Medical Equipment Co.	Xi'an (China)	I	CNY	18,000,000	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%. (**) Inactive companies

Companies valued using the equity method:

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 06/30/2024
Comfoor BV (*)	Doesburg (The Netherlands)	I	EUR	18,000	50.0%
Comfoor GmbH (*)	Emmerich am Rhein (Germany)	I	EUR	25,000	50.0%
Ruti Levinson Institute Ltd (**)	Ramat HaSharon (Israel)	I	ILS	105	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 in respect of the Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98

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

• the adequacy, by reference to the characteristics of the business and
• the effective application of the administrative and accounting procedures for the preparation of the condensed interim consolidated financial statements during the period 1 January – 30 June 2024.

We also certify that the condensed interim consolidated financial statements at 30 June 2024:

• have been prepared in accordance with the international accounting standards recognized in the European Union under the EC regulation no. 1606/2002 of the European Parliament and of the Council of 19 July 2002;
• correspond to the underlying accounting entries and records;
• provides a true and fair view of the performance and financial position of the issuer and of all of the companies included in the consolidation area.

The report on operations includes a reliable operating and financial review of the Company and all of the companies included in the consolidation area.

Milan, July 30th, 2024

CEO Executive Responsible for Corporate Accounting Information

Enrico Vita Gabriele Galli

KPMG S.p.A. Revisione e organizzazione contabile Via Vittor Pisani, 25 20124 MILANO MI Telefono +39 02 6763.1 Email it-fmauditaly@kpmg.it PEC kpmgspa@pec.kpmg.it

(This independent auditors' report has been translated into English solely for the convenience of international readers. Accordingly, only the original Italian version is authoritative.)

Report on review of condensed interim consolidated financial statements

To the shareholders of Amplifon S.p.A.

Introduction

We have reviewed the accompanying condensed interim consolidated financial statements of the Amplifon Group comprising the statement of financial position as at 30 June 2024, the income statement and the statements of comprehensive income, changes in equity and cash flows for the six months then ended and notes thereto. The directors are responsible for the preparation of these condensed interim consolidated financial statements in accordance with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34), endorsed by the European Union. Our responsibility is to express a conclusion on these condensed interim consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with Consob (the Italian Commission for Listed Companies and the Stock Exchange) guidelines set out in Consob resolution no. 10867 dated 31 July 1997. A review of condensed interim consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA Italia) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the condensed interim consolidated financial statements.

Ancona Bari Bergamo Bologna Bolzano Brescia Catania Como Firenze Genova Lecce Milano Napoli Novara Padova Palermo Parma Perugia Pescara Roma Torino Treviso Trieste Varese Verona

Società per azioni Capitale sociale Euro 10.415.500,00 i.v. Registro Imprese Milano Monza Brianza Lodi e Codice Fiscale N. 00709600159 R.E.A. Milano N. 512867 Partita IVA 00709600159 VAT number IT00709600159 Sede legale: Via Vittor Pisani, 25 20124 Milano MI ITALIA

KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del network KPMG di entità indipendenti affiliate a KPMG International Limited, società di diritto inglese.

Amplifon Group Report on review of condensed interim consolidated financial statements 30 June 2024

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements of the Amplifon Group as at and for the six months ended 30 June 2024 have not been prepared, in all material respects, in accordance with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34), endorsed by the European Union.

Milan, 31 July 2024

KPMG S.p.A.

(signed on the original)

Claudio Mariani Director of Audit