Amplifon — Interim / Quarterly Report 2024

Nov 7, 2024

PREFACE 4
INTERIM MANAGEMENT REPORT AS AT 30 SEPTEMBER 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 SEPTEMBER 2024 50
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 50
CONSOLIDATED INCOME STATEMENT 52
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME 53
STATEMENT OF CHANGES IN CONSOLIDATION EQUITY 54
STATEMENT OF CONSOLIDATED CASH FLOWS 56
SUPPLEMENTARY INFORMATION TO THE STATEMENT OF CONSOLIDATED CASH FLOWS 57
NOTES 58
1. General Information58

Interim Financial Report as at 30 September 2024

2.	Impacts of the conflict in Middle-East, Ukraine and climate change on the Group's
	performance and financial position59
3.	Acquisitions e goodwill60
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 events93
ANNEXES		94
	Consolidation scope 94
	Declaration in respect of the Consolidated Financial Statements pursuant to Article 154-bis
	of Legislative Decree no. 58/98 99

Disclaimer

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

PREFACE

This Interim Financial Report as at 30 September 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 SEPTEMBER 2024

HIGHLIGHTS

In the first nine months of 2024 Amplifon recorded an increase in revenues which was particularly significant in Americas and APAC thanks to high organic growth and acquisitions, with a slight increase in profitability despite what is still a weak European market and the dilution stemming from the decided acceleration in the growth of the direct Miracle-Ear store network in the United States.

(€ thousands)	First nine months 2024		First nine months 2023
	Recurring	Total	Recurring	Total
Economic figures:
Revenues from sales and services	1,744,833	1,744,833	1,645,065	1,645,065
Gross operating profit (loss) (EBITDA)	412,234	407,813	385,806	372,585
Operating profit (loss) (EBIT)	191,960	187,539	192,890	179,669
Profit (loss) before tax	148,363	143,942	155,997	142,776
Group net profit (loss)	107,379	104,181	112,815	103,438

The first nine months of the year closed with:

• Turnover of €1,744,833 thousand, an increase of 6.1% compared to the same period of the prior year (+8.0% at constant exchange rates);
• a gross operating margin (EBITDA) of €407,813 thousand, 9.5% higher than in the nine months of 2023 (+6.9% on a recurring basis);
• Group net profit of €104,181 thousand, an increase of €743 thousand compared to the first nine months of 2023, €5,436 lower (-4.8%) on a recurring basis.

Net financial debt, excluding lease liabilities, amounts to €1,068,279 thousand compared to €852,130 thousand at year-end 2023. Free cash flow reached a positive €50,560 thousand (compared to € 68,772 thousand in the first nine months of the prior year) and was impacted primarily by higher rent and interest payments, as well as greater absorption of working capital. The significant cash-outs for acquisitions, which amounted to €184,077 thousand (€83,243 thousand in the first nine months of 2023), along with the payment of €65,593 thousand in dividends (€65,361 thousand in the comparison period), the purchase of treasury shares for €20,258 thousand (none were purchased in the comparison period) and the positive cash flow generated by other financial assets of €5,562 thousand, bring cash flow for the reporting period to negative €214,292 thousand versus a negative €83,847 thousand in the first nine months of 2023.

MAIN ECONOMIC AND FINANCIAL FIGURES

(€ thousands)	First nine months 2024			First nine months 2023
		Non		% on revenues		Non		% on revenues	Change % on
	Recurring	recurring	Total	recurring	Recurring	recurring	Total	recurring	recurring
Economic figures:
Revenues from sales and services	1,744,833	-	1,744,833	100.0%	1,645,065	-	1,645,065	100.0%	6.1%
Gross operating profit (loss) (EBITDA)	412,234	(4,421)	407,813	23.6%	385,806	(13,221)	372,585	23.5%	6.9%
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	231,076	(4,421)	226,655	13.2%	229,538	(13,221)	216,317	14.0%	0.7%
Operating profit (loss) (EBIT)	191,960	(4,421)	187,539	11.0%	192,890	(13,221)	179,669	11.7%	-0.5%
Profit (loss) before tax	148,363	(4,421)	143,942	8.5%	155,997	(13,221)	142,776	9.5%	-4.9%
Group net profit (loss)	107,379	(3,198)	104,181	6.2%	112,815	(9,377)	103,438	6.9%	-4.8%

(€ thousands)	09/30/2024	12/31/2023	Change
Financial figures:
Non-current assets	3,172,074	2,976,387	195,687
Net invested capital	2,693,482	2,451,239	242,243
Group net equity	1,118,112	1,100,919	17,193
Total net equity	1,118,265	1,101,678	16,587
Net financial indebtedness	1,068,279	852,130	216,149
Lease liabilities	506,939	497,431	9,508
Total lease liabilities and net financial indebtedness	1,575,217	1,349,561	225,656

(€ thousands)	First nine months 2024	First nine months 2023
Free cash flow	50,560	68,772
Cash flow generated from (absorbed by) business combinations	(184,077)	(83,243)
Cash flow provided by (used in) financing activities	(80,775)	(69,376)
Net cash flow from the period	(214,292)	(83,847)
Effect of exchange rate fluctuations on the net financial position	(1,857)	(3,793)
Net cash flow from the period with changes for exchange rate fluctuations	(216,149)	(87,640)

• 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.

	09/30/2024	12/31/2023	09/30/2023
Net financial indebtedness (€ thousands)	1,068,279	852,130	917,633
Lease liabilities (€ thousands)	506,939	497,431	487,635
Total lease liabilities & net financial indebtedness (€ thousands)	1,575,217	1,349,561	1,405,268
Net equity (€ thousands)	1,118,265	1,101,678	1,070,715
Group Net Equity (€ thousands)	1,118,112	1,100,919	1,069,770
Net financial indebtedness/Net Equity	0.96	0.77	0.86
Net financial indebtedness/Group Net Equity	0.96	0.77	0.86
Net financial indebtedness/EBITDA	1.78	1.50	1.63
EBITDA/Net financial expenses	17.20	18.03	21.58
Earnings per share (EPS) (€)	0.46111	0.69285	0.45805
Diluted EPS (€)	0.45766	0.68809	0.63150
EPS (€) adjusted for non-recurring transactions and amortization/depreciation related to purchase price allocations to tangible and intangible assets	0.62242	0.91271	0.63150
Group Net Equity per share (€)	4.958	4.880	4.744
Period-end price (€)	25.81	31.34	28.12
Highest price in period (€)	35.14	36.27	36.27
Lowest price in period (€)	25.74	24.49	25.02
Share price/net equity per share	5.205	6.422	5.928
Market capitalization (€ millions)	5,819.22	7,074.89	6,341.36
Number of shares outstanding	225,501,321	225,746,472	225,510,487

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 September 2024 are:

42.0% 0.4% 57.6% Ampliter S.r.l. Treasury shares Market

Shareholder	No. of ordinary shares (*)	% held	% of the total share capital in voting rights
Ampliter S.r.l.	95,165,392	42.04%	59.09%
Treasury shares	887,299	0.39%	0.28%
Market	130,335,929	57.57%	40.63%
Total	226,388,620	100.00%	100.00%

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

As at 30 September 2024 market capitalization was €5,820.19 million.

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

• average daily value: €18,027,489.90;

• average daily volume: 579,459 shares;

• total volume traded of 113,573,890 shares, or 50.37% of the total number of shares comprising the share capital, net of treasury shares.

RECLASSIFIED CONSOLIDATED INCOME STATEMENT

(€ thousands)		First nine months 2024			First nine months 2023
	Recurring	Non recurring (*)	Total	% on	recurring Recurring	Non Recurring(*) Total		% on recurring	Change % on recurring
Revenues from sales and services	1,744,833	-	1,744,833	100.0%	1,645,065	-	1,645,065	100.0%	6.1%
Operating costs (**)	(1,337,759)		(4,421) (1,342,180)		-76.7% (1,264,767)		(13,221) (1,277,988)	-76,9%	-5.8%
Other income and costs (**)	5,160	-	5,160	0.3%	5,508	-	5,508	0,3%	-6.3%
Gross operating profit (loss) (EBITDA)	412,234	(4,421)	407,813	23.6%	385,806	(13,221)	372,585	23.5%	6.9%
Depreciation, amortization and impairment losses on non current assets	(84,271)	-	(84,271)	-4.8%	(68,360)	-	(68,360)	-4.2%	-23.3%
Right-of-use depreciation	(96,887)	-	(96,887)	-5.6%	(87,908)	-	(87,908)	-5.3%	-10.2%
Operating result before the amortization and impairment of PPA related assets (EBITA)	231,076	(4,421)	226,655	13.2%	229,538	(13,221)	216,317	14.0%	0.7%
PPA related depreciation, amortization and impairment	(39,116)	-	(39,116)	-2.2%	(36,648)	-	(36,648)	-2.3%	-6.7%
Operating profit (loss) (EBIT)	191,960	(4,421)	187,539	11.0%	192,890	(13,221)	179,669	11.7%	-0.5%
Income, expenses, valuation and adjustments of financial assets	283	-	283	0.0%	210	-	210	0.0%	34.8%
Net financial expenses	(41,634)	-	(41,634)	-2.4%	(33,410)	-	(33,410)	-2.0%	-24.6%
Exchange differences, inflation accounting and Fair Value valuation	(2,246)	-	(2,246)	-0.1%	(3,693)	-	(3,693)	-0.2%	39.2%
Profit (loss) before tax	148,363	(4,421)	143,942	8.5%	155,997	(13,221)	142,776	9.5%	-4.9%
Tax	(40,850)	1,223	(39,627)	-2.3%	(43,179)	3,844	(39,335)	-2.6%	5.4%
Net profit (loss)	107,513	(3,198)	104,315	6.2%	112,818	(9,377)	103,441	6.9%	-4.7%
Profit (loss) of minority interests	134	-	134	0.0%	3	-	3	0.0%	-
Net profit (loss) attributable to the Group	107,379	(3,198)	104,181	6.2%	112,815	(9,377)	103,438	6.9%	-4.8%

(*) 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)		Third Quarter 2024			Third Quarter 2023
	Recurring	Non recurring (*)	Total	% on recurring	Recurring	Non recurring (*)	Total	% on recurring	Change % on recurring
Revenues from sales and services	567,582	-	567,582	100.0%	531,296	-	531,296	100.0%	6.8%
Operating costs (**)	(453,541)	(955)	(454,496)	-79.9%	(422,283)	(1,937)	(424,221)	-79.5%	-7.4%
Other income and costs (**)	953	-	953	0.2%	753	-	753	0.1%	26.6%
Gross operating profit (loss) (EBITDA)	114,994	(955)	114,039	20.3%	109,765	(1,937)	107,828	20.7%	4.8%
Depreciation, amortization and impairment losses on non-current assets	(28,851)	-	(28,851)	-5.1%	(23,010)	-	(23,010)	-4.3%	-25.4%
Right-of-use depreciation	(32,834)	-	(32,834)	-5.8%	(29,233)	-	(29,233)	-5.6%	-12.3%
Operating result before the amortization and impairment of PPA related assets (EBITA)	53,309	(955)	52,354	9.4%	57,522	(1,937)	55,585	10.8%	-7.3%
PPA related depreciation, amortization and impairment	(13,762)	-	(13,762)	-2.4%	(12,132)	-	(12,132)	-2.3%	-13.4%
Operating profit (loss) (EBIT)	39,547	(955)	38,592	7.0%	45,390	(1,937)	43,453	8.5%	-12.9%
Income, expenses, valuation and adjustments of financial assets	-	-	-	0.0%	3	-	3	0.0%	-
Net financial expenses	(15,294)	-	(15,294)	-2.8%	(13,568)	-	(13,568)	-2.6%	-12.7%
Exchange differences, inflation accounting and Fair Value valuation	(789)	-	(789)	-0.1%	389	-	389	0.2%	-
Profit (loss) before tax	23,464	(955)	22,509	4.1%	32,214	(1,937)	30,277	6.1%	-27.2%
Tax	(6,313)	245	(6,068)	-1.1%	(8,708)	548	(8,160)	-1.7%	27.5%
Net profit (loss)	17,151	(710)	16,441	3.0%	23,506	(1,389)	22,117	4.4%	-27.0%
Profit (loss) of minority interests	(330)	-	(330)	-0.1%	35	-	35	0.0%	-
Net profit (loss) attributable to the Group	17,481	(710)	16,771	3.1%	23,471	(1,389)	22,082	4.4%	-25.5%

(*) 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 €1,678 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 €1,478 thousand, the second phase of the GAES integration;
• for €1,138 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 €127 thousand, the Bay Audio integration in Australia.

(€ thousands)	First nine months 2024	First nine months 2023
Costs incurred to define and implement amendments to the Articles of Association including the enhanced voting rights	(1,678)	-
GAES second phase integration costs	(1,478)	(1,433)
Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO	(1,138)	(11,614)
Bay Audio integration costs	(127)	(174)
Impact of the non-recurring items on EBITDA	(4,421)	(13,221)
Impact of the non-recurring items on EBIT	(4,421)	(13,221)
Impact of the non-recurring items on profit before tax	(4,421)	(13,221)
Impact of the above items on the tax burden for the period	1,223	3,844
Impact of the non-recurring items on net profit	(3,198)	(9,377)

(€ thousands)	Q3 2024	Q3 2023
Costs incurred to define and implement amendments to the Articles of Association including the enhanced voting rights	-	-
GAES second phase integration costs	(755)	(543)
Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO	(158)	(1,220)
Bay Audio integration costs	(42)	(174)
Impact of the non-recurring items on EBITDA	(955)	(1,937)
Impact of the non-recurring items on EBIT	(955)	(1,937)
Impact of the non-recurring items on profit before tax	(955)	(1,937)
Impact of the above items on the tax burden for the period	245	548
Impact of the non-recurring items on net profit	(710)	(1,389)

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)	09/30/2024	12/31/2023	Change
Goodwill	1,942,331	1,799,574	142,757
Customer lists, non-compete agreements, trademarks and location rights	265,927	255,683	10,244
Software, licenses, other int.ass, wip and advances	162,990	160,906	2,084
Property, plant, and equipment	243,501	221,516	21,985
Right of use assets	487,092	478,153	8,939
Fixed financial assets (1)	26,810	16,704	10,106
Other non-current financial assets (1)	43,423	43,851	(428)
Total fixed assets	3,172,074	2,976,387	195,687
Inventories	92,868	88,320	4,548
Trade receivables	220,673	231,253	(10,580)
Other receivables	143,783	107,042	36,741
Current assets (A)	457,324	426,615	30,709
Total assets	3,629,398	3,403,002	226,396
Trade payables	(316,965)	(358,955)	41,990
Other payables (2)	(368,282)	(379,290)	11,008
Provision for risks (current portion)	(2,148)	(1,268)	(880)
Short term liabilities (B)	(687,395)	(739,513)	52,118
Net working capital (A) - (B)	(230,071)	(312,898)	82,827
Derivative instruments (3)	6,632	12,933	(6,301)
Deferred tax assets	82,756	82,701	55
Deferred tax liabilities	(102,491)	(98,451)	(4,040)
Provisions for risks (non-current portion)	(21,811)	(19,379)	(2,432)
Employee benefits (non-current portion)	(12,818)	(12,963)	145
Loan fees (4)	2,122	3,007	(885)
Other long-term payables	(202,911)	(180,098)	(22,813)
NET INVESTED CAPITAL	2,693,482	2,451,239	242,243
Shareholders' equity	1,118,112	1,100,919	17,193
Third parties' equity	153	759	(606)
Net equity	1,118,265	1,101,678	16,587
Medium/Long term net financial debt (4)	726,642	719,428	7,214
Short term net financial debt (4)	341,637	132,702	208,935
Total net financial debt	1,068,279	852,130	216,149
Lease liabilities	506,939	497,431	9,508
Total lease liabilities & net financial debt	1,575,217	1,349,561	225,656
NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL DEBT	2,693,482	2,451,239	242,243

Notes for reconciling the condensed balance sheet with the statutory balance sheet:

• (1) "Financial fixed assets" and "Other non-current financial assets" include equity interests valued by using the net equity method, financial assets at fair value through profit and loss and other non-current assets;
• (2) "Other payables" includes other liabilities, accrued liabilities and deferred income, current portion of liabilities for employees' benefits and tax liabilities;
• (3) "Derivatives instruments" includes cash flow hedging instruments not included in the item "Net medium and long-term financial indebtedness";
• (4) The item "loan fees" is presented in the balance sheet as a direct reduction of the short-term and medium/longterm components of the items "financial payables" and "financial liabilities" for the short-term and long-term portions, respectively.

CONDENSED RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT

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

(€ thousands)	First nine months 2024	First nine months 2023
Operating profit (loss) (EBIT)	187,539	179,669
Amortization, depreciation and write-downs	220,274	192,916
Provisions, other non-monetary items and gain/losses from disposals	17,024	28,735
Net financial expenses	(40,563)	(33,971)
Taxes paid	(54,480)	(60,679)
Changes in net working capital	(84,087)	(52,970)
Cash flow provided by (used in) operating activities before repayment of lease liabilities	245,707	253,700
Repayment of lease liabilities	(96,112)	(85,095)
Cash flow provided by (used in) operating activities (A)	149,595	168,605
Cash flow provided by (used in) operating investing activities (B)	(99,035)	(99,833)
Free Cash Flow (A) + (B)	50,560	68,772
Net cash flow provided by (used in) acquisitions (C)	(184,077)	(83,243)
Cash flow provided by (used in) investing activities (B) + (C)	(283,112)	(183,076)
Cash flow provided by (used in) operating activities and investing activities	(133,517)	(14,471)
Dividends	(65,593)	(65,361)
Treasury Shares	(20,258)	-
Fees paid on medium/long-term financing	(104)	(1,413)
Capital increases, third parties' contributions and dividends paid by subsidiaries to third parties	(382)	(137)
Hedging instruments	-	(1,483)
Change in non-current assets	5,562	(982)
Net cash flow from the period	(214,292)	(83,847)
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	(1,857)	(3,793)
Changes in net financial debt	(214,292)	(83,847)
Net financial indebtedness at the end of the period net of lease liabilities	(1,068,279)	(917,633)

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

(€ thousands)	First nine months 2024	First nine months 2023
Free cash flow	50,560	68,772
Free cash flow generated by non-recurring transactions (see page 46 for details)	(2,053)	(2,740)
Free cash flow generated by recurring transactions	52,613	71,512

INCOME STATEMENT REVIEW

Consolidated income statement by segment and geographic area

(€ thousands)	First nine months 2024
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	1,101,713	366,417	276,466	237	1,744,833
Operating costs	(797,387)	(277,727)	(203,190)	(63,876)	(1,342,180)
Other income and costs	3,070	2,312	(326)	104	5,160
Gross operating profit (loss) (EBITDA)	307,396	91,002	72,950	(63,535)	407,813
Depreciation, amortization and impairment of non-current assets	(36,356)	(13,288)	(14,287)	(20,340)	(84,271)
Right-of-use depreciation	(62,504)	(10,528)	(22,079)	(1,776)	(96,887)
Operating result before the amortization and impairment of PPA related assets (EBITA)	208,536	67,186	36,584	(85,651)	226,655
PPA related depreciation, amortization and impairment	(26,647)	(3,202)	(9,242)	(25)	(39,116)
Operating profit (loss) (EBIT)	181,889	63,984	27,342	(85,676)	187,539
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	283
Net financial expenses	-	-	-	-	(41,634)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	(2,246)
Profit (loss) before tax	-	-	-	-	143,942
Tax	-	-	-	-	(39,627)
Net profit (loss)	-	-	-	-	104,315
Profit (loss) of minority interests	-	-	-	-	134
Net profit (loss) attributable to the Group	-	-	-	-	104,181

(€ thousands)	First nine months 2024 - Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	1,101,713	366,417	276,466	237	1,744,833
Gross operating profit (loss) (EBITDA)	308,874	91,002	73,077	(60,719)	412,234
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	210,014	67,186	36,711	(82,835)	231,076
Operating profit (loss) (EBIT)	183,367	63,984	27,469	(82,860)	191,960
Profit (loss) before tax	-	-	-	-	148,363
Net profit (loss)	-	-	-	-	107,513
Net profit (loss) attributable to the Group	-	-	-	-	107,379

(€ thousands)			First nine months 2023
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	1,067,232	321,984	255,511	338	1,645,065
Operating costs (*)	(771,871)	(239,671)	(189,209)	(77,237)	(1,277,988)
Other income and costs (*)	3,473	1,636	(10)	409	5,508
Gross operating profit (loss) (EBITDA)	298,834	83,949	66,292	(76,490)	372,585
Depreciation, amortization and impairment of non-current assets	(30,769)	(8,919)	(10,329)	(18,343)	(68,360)
Right-of-use depreciation	(58,042)	(8,675)	(19,491)	(1,700)	(87,908)
Operating result before the amortization and impairment of PPA related assets (EBITA)	210,023	66,355	36,472	(96,533)	216,317
PPA related depreciation, amortization and impairment	(24,733)	(3,135)	(8,738)	(42)	(36,648)
Operating profit (loss) (EBIT)	185,290	63,220	27,734	(96,575)	179,669
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	210
Net financial expenses	-	-	-	-	(33,410)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	(3,693)
Profit (loss) before tax	-	-	-	-	142,776
Tax	-	-	-	-	(39,335)
Net profit (loss)	-	-	-	-	103,441
Profit (loss) of minority interests	-	-	-	-	3
Net profit (loss) attributable to the Group	-	-	-	-	103,438

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

(€ thousands)	Third Quarter 2024
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	344,246	125,999	97,281	56	567,582
Operating costs	(263,475)	(97,200)	(71,253)	(22,568)	(454,496)
Other income and costs	886	491	(232)	(192)	953
Gross operating profit (loss) (EBITDA)	81,657	29,290	25,796	(22,704)	114,039
Depreciation, amortization and impairment of non-current assets	(12,834)	(4,346)	(4,785)	(6,886)	(28,851)
Right-of-use depreciation	(21,049)	(3,542)	(7,643)	(600)	(32,834)
Operating result before the amortization and impairment of PPA related assets (EBITA)	47,774	21,402	13,368	(30,190)	52,354
PPA related depreciation, amortization and impairment	(9,451)	(1,068)	(3,218)	(25)	(13,762)
Operating profit (loss) (EBIT)	38,323	20,334	10,150	(30,215)	38,592
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	-
Net financial expenses	-	-	-	-	(15,294)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	(789)
Profit (loss) before tax	-	-	-	-	22,509
Tax	-	-	-	-	(6,068)
Net profit (loss)	-	-	-	-	16,441
Profit (loss) of minority interests	-	-	-	-	(330)
Net profit (loss) attributable to the Group	-	-	-	-	16,771

(€ thousands)	Third Quarter 2024 – Only recurring operations
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	344,246	125,999	97,281	56	567,582
Gross operating profit (loss) (EBITDA)	82,412	29,290	25,838	(22,546)	114,994
Operating profit (loss) before the depreciation and amortization of PPA related assets (EBITA)	48,529	21,402	13,410	(30,032)	53,309
Operating profit (loss) (EBIT)	39,078	20,334	10,192	(30,057)	39,547
Profit (loss) before tax	-	-	-	-	23,464
Net profit (loss)	-	-	-	-	17,151
Net profit (loss) attributable to the Group	-	-	-	-	17,481

(€ thousands)	Third Quarter 2023
	EMEA	Americas	Asia Pacific	Corporate	Total
Revenues from sales and services	331,750	109,323	90,130	93	531,296
Operating costs (*)	(250,125)	(82,575)	(66,435)	(25,085)	(424,221)
Other income and costs (*)	720	97	(25)	(40)	753
Gross operating profit (loss) (EBITDA)	82,345	26,845	23,670	(25,032)	107,828
Depreciation, amortization and impairment of non-current assets	(10,486)	(2,859)	(3,130)	(6,535)	(23,010)
Right-of-use depreciation	(19,368)	(3,285)	(6,012)	(568)	(29,233)
Operating result before the amortization and impairment of PPA related assets (EBITA)	52,491	20,701	14,528	(32,135)	55,585
PPA related depreciation, amortization and impairment	(8,418)	(873)	(2,841)	-	(12,132)
Operating profit (loss) (EBIT)	44,073	19,828	11,687	(32,135)	43,453
Income, expenses, revaluation and adjustments of financial assets	-	-	-	-	3
Net financial expenses	-	-	-	-	(13,568)
Exchange differences, inflation accounting and Fair Value valuation	-	-	-	-	389
Profit (loss) before tax	-	-	-	-	30,277
Tax	-	-	-	-	(8,160)
Net profit (loss)	-	-	-	-	22,117
Profit (loss) of minority interests	-	-	-	-	35
Net profit (loss) attributable to the Group	-	-	-	-	22,082

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

Revenues from sales and services

(€ thousands)	First nine months 2024	First nine months 2023	Change	Change %
Revenues from sales and services	1,744,833	1,645,065	99,768	6.1%
(€ thousands)	Third quarter 2024	Third quarter 2023	Change	Change %
Revenues from sales and services	567,582	531,296	36,286	6.8%

Consolidated revenues from sales and services amounted to €1,744,833 thousand in the first nine months of 2024, an increase of €99,768 thousand (+6.1%) with respect to the first nine months of prior year.

The increase against the first nine months of 2023 is explained for €71,177 thousand (+4.3%) by organic growth and for €59,903 thousand (+3.7%) by acquisitions. The foreign exchange effect was negative for €31,312 thousand (-1.9%).

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 APAC and AMERICAs, thanks to the organic growth and external growth while, EMEA, even if is growing, continues to be a soft market.

In the third quarter alone, consolidated revenues from sales and services amounted to €567,582 thousand, an increase of €36,286 thousand (+6.8%) compared to the third quarter of 2023, explained for €20,764 thousand (+3.9%) by organic growth and for €21,602 thousand (+4.1%) by acquisitions while the foreign exchange effect was negative for €6,080 thousand (-1.2%).

(€ thousands)	First nine months 2024	% on Total	First nine months 2023	% on Total	Change	Change %	Exchange diff.	Change % in local currency
EMEA	1,101,713	63.2%	1,067,232	64.9%	34,481	3.2%	857	3.1%
Americas	366,417	21.0%	321,984	19.6%	44,433	13.8%	(28,385)	22.6%
Asia Pacific	276,466	15.8%	255,511	15.5%	20,955	8.2%	(3,784)	9.7%
Corporate	237	0.0%	338	0.0%	(101)	-29.9%	-	-29.9%
Total	1,744,833	100.0%	1,645,065	100.0%	99,768	6.1%	(31,312)	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%
III quarter	344,246	331,750	12,496	3.8%
First nine months	1,101,713	1,067,232	34,481	3.2%

Consolidated revenues from sales and services amounted to €1,101,713 thousand in the first nine months of 2024, an increase of €34,481 thousand (+3.2%) compared to the same period of the prior year, of which €12,455 thousand (+1.2%) is attributable to organic growth. Acquisitions contributed €21,169 thousand (+1.9%) and exchange differences had a positive impact of €857 thousand (+0.1%).

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

In the third quarter alone, consolidated revenues from sales and services amounted to €344,246 thousand, an increase of €12,496 thousand (+3.8%) against the comparison period. This increase is explained mainly by acquisitions which contributed €8,220 thousand (+2.5%), while organic growth was positive for €4,273 thousand (+1.3%) and exchange differences were slightly positive at €3 thousand.

Americas

Period (€ thousand)	2024	2023	Change	Change %
I quarter	110,821	100,864	9,956	9.9%
II quarter	129,597	111,797	17,800	15.9%
I Half Year	240,418	212,661	27,757	13.1%
III quarter	125,999	109,323	16,676	15.3%
First nine months	366,417	321,984	44,433	13.8%

Consolidated revenues from sales and services amounted to €366,417 thousand in the first nine months of 2024, an increase of €44,433 thousand (+13.8%) compared to the first nine month of 2023, attributable for €43.566 thousand (+13.5%) to organic growth which was fueled primarily by the outstanding performance of Miracle-Ear Direct Retail and Amplifon Hearing Health Care and for €29,252 thousand (+9.1%) by acquisitions which includes the Uruguayan subsidiaries which were consolidated for the first time. The foreign exchange effect was negative for €28,385 thousand (-8.8%).

Revenues of the Argentine subsidiary were impacted by inflation accounting used in accordance with IAS 29 (Inflation Accounting), which had a positive impact of 1.2% on organic growth and a negative impact on the exchange effect.

In the third quarter alone, consolidated revenues from sales and services amounted to 125,999 thousand, an increase of €16,676 thousand (+15.3%) against the comparison period attributable for 13,253 thousand (+12.1%) to organic growth and for €10,433 thousand (+9.5%) to acquisitions. The exchange effect was negative for €7,010 thousand (-6.3%).

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%
III quarter	97,281	90,130	7,151	7.9%
First nine months	276,466	255,511	20,955	8.2%

Asia Pacific

Revenues from sales and services amounted to €276,466 thousand in the first nine months of 2024, an increase of €20,955 thousand (+8.2%) compared to the same period of 2023 explained for €15,257 thousand (+6.0%) by organic growth and for €9,482 thousand (+3.7%) by acquisitions made in China. The foreign exchange effect was negative for €3,784 thousand (-1.5%).

In the third quarter alone, revenues from sales and services amounted to €97,281 thousand, an increase of €7,151 thousand (+7.9%) attributable for €3,275 thousand (+3.6%) to organic growth and for €2,949 thousand (+3.3%) to acquisitions while the foreign exchange effect was positive for €927 thousand (+1.0%).

Gross operating profit (EBITDA)

(€ thousand)	First nine months 2024			First nine months 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Gross operating profit (loss) (EBITDA)	412,234	(4,421)	407,813	385,806	(13,221)	372,585
(€ thousand)	Third Quarter 2024			Third Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Gross operating profit (loss) (EBITDA)	114,994	(955)	114,039	109,765	(1,937)	107,828

Gross operating profit (EBITDA) amounted to €407,813 thousand in the first nine months of 2024, an increase of €35,228 thousand (+9.5%) with respect to the comparison period. The EBITDA margin came to 23.4%, 0.8 p.p. higher than in the comparison period.

The costs relating to the non-recurring transactions amount to €4,421 thousand. In the first nine months of 2023 non-recurring expenses amounted to €13,221 thousand. See table at page 14 for details of non-recurring transactions.

Net of these items, EBITDA would have been €26,428 thousand (+6.9%) higher than in the first nine months of 2023 with the EBITDA margin up +0.1 p.p.

In the third quarter alone, EBITDA amounted to €114,039 thousand (20.1% of revenues from sales and services), an increase of €6,211 thousand (+5.8%) against the comparison period with a 0.2 p.p. decrease in the EBITDA margin.

The result for the quarter reflects non-recurring expenses of €955 thousand. In the third quarter of 2023 non-recurring expenses amounted to €1,937 thousand. See table at page 14 for details of non-recurring transactions.

Net of this item, recurring EBITDA would have been €5,229 thousand (+4.8%) higher than in the third quarter of 2023 with the EBITDA margin down -0.4 p.p.

(€ thousands)	First nine months 2024	EBITDA Margin	First nine months 2023	EBITDA Margin	Change	Change %
EMEA	307,396	27.9%	298,834	28.0%	8,562	2.9%
Americas	91,002	24.8%	83,949	26.1%	7,053	8.4%
Asia Pacific	72,950	26.4%	66,292	25.9%	6,658	10.0%
Corporate (*)	(63,535)	-3.6%	(76,490)	-4.6%	12,955	16.9%
Total	407,813	23.4%	372,585	22.6%	35,228	9.5%
(€ thousands)	Q3 2024	EBITDA Margin	Q3 2023	EBITDA Margin	Change	Change %
EMEA	81,657	23.7%	82,345	24.8%	(688)	-0.8%
Americas	29,290	23.2%	26,845	24.6%	2,445	9.1%
Asia Pacific	25,796	26.5%	23,670	26.3%	2,126	9.0%
Corporate (*)	(22,704)	-4.0%	(25,032)	-4.7%	2,328	9.3%
Total	114,039	20.1%	107,828	20.3%	6,211	5.8%

The breakdown of EBITDA by geographic region is shown below.

(*) 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)	First nine months 2024	EBITDA Margin	First nine months 2023	EBITDA Margin	Change	Change %
EMEA	308,874	28.0%	300,267	28.1%	8,607	2.9%
Americas	91,002	24.8%	83,949	26.1%	7,053	8.4%
Asia Pacific	73,077	26.4%	66,465	26.0%	6,612	9.9%
Corporate (*)	(60,719)	-3.5%	(64,875)	-3.9%	4,156	6.4%
Total	412,234	23.6%	385,806	23.5%	26,428	6.9%
(€ thousands)	Q3 2024	EBITDA Margin	Q3 2023	EBITDA Margin	Change	Change %
EMEA	82,412	23.9%	82,889	25.0%	(477)	-0.6%
Americas	29,290	23.2%	26,845	24.6%	2,445	9.1%
Asia Pacific	25,838	26.6%	23,843	26.5%	1,995	8.4%
Corporate (*)	(22,546)	-4.0%	(23,812)	-4.5%	1,266	5.3%
Total	114,994	20.3%	109,765	20.7%	5,229	4.8%

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

Europe, Middle-East, Africa

Gross operating profit (EBITDA) amounted to €307,396 thousand in the first nine months of 2024, an increase of €8,562 thousand (+2.9%) with respect to the comparison period. The EBITDA margin came to 27.9%, a decrease of 0.1 p.p. compared to the first nine months of 2023.

The result for the reporting period was impacted for €1,478 thousand by non-recurring expenses relating to the second phase of the GAES integration.

In the first nine months of 2023 non-recurring expenses amounted to €1,433 thousand.

Net of this item, EBITDA would have been €8,607 thousand higher (+2.9%) than in the first nine months of 2023 with the EBITDA margin down -0.1 p.p.

In the third quarter alone, EBITDA amounted to €81,657 thousand, a decrease against the comparison period of €688 thousand (-0.8%). The EBITDA margin was 1.1 p.p. lower than in comparison period coming in at 23.7%.

The result for the quarter was impacted for €755 thousand by non-recurring expenses relating to the second phase of the GAES integration. In the third quarter of 2023 non-recurring expenses amounted to €543 thousand.

Net of this item, recurring EBITDA would have been €477 thousand (-0.6%) lower compared to the third quarter of 2023 with the EBITDA margin down -1.1 p.p.

Americas

Gross operating profit (EBITDA) amounted to €91,002 thousand in the first nine months of 2024, an increase of €7,053 thousand (+8.4%) with respect to the comparison period. The EBITDA margin came to 24.8%, down 1.3 p.p. against the third quarter of 2023, stemming from the decided acceleration in the growth of the direct Miracle-Ear store network in the United States In the third quarter alone EBITDA came to €29,290 thousand, an increase of €2,445 thousand (+9.1%) against the comparison period. The EBITDA margin was 1.4 p.p. lower than in the comparison period, coming in at 23.2%.

Asia Pacific

Gross operating profit (EBITDA) amounted to €72,950 thousand in the first nine months of 2024, an increase of €6,658 thousand (+10.0%) with respect to the comparison period. The EBITDA margin came to 26.4%, +0.5 p.p. higher than in the first nine months of 2023.

Non-recurring expenses of €127 thousand were incurred in the reporting period. In the first nine months of 2023 non-recurring expenses amounted to €174 thousand.

Net of this item, EBITDA would have been €6,612 thousand higher (+9.9%) with the EBITDA margin up +0.4 p.p.

In the third quarter alone EBITDA amounted to €25,796 thousand, an increase of €2,126 thousand (+9.0%) with respect to the comparison period.

The EBITDA margin reached 26.5%, an increase of +0.2 p.p. against the comparison period.

Non-recurring expenses, of €42 thousand, relating to the Bay Audio integration were incurred in the reporting period. In the third quarter of 2023 non-recurring expenses amounted to €174 thousand.

Net of these items, recurring EBITDA would have been €1,995 thousand (+8.4%) higher with the EBITDA margin up +0.1 p.p.

Corporate

In the first nine 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 €63,535 thousand, a decrease of €12,955 thousand (-16.9%) with respect to the same period of the prior year. The EBITDA margin was 3.6 p.p. (1.0 p.p. lower than in the first nine months of 2023).

The result for the reporting period reflects the non-recurring expenses of €2,816 thousand explained for €1,678 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 €1,138 thousand by the notional cost recognized in the reporting period in accordance with IFRS 2 "Share Based Payments".

In the first nine months of 2023 non-recurring expenses of €11,614 thousand were also recognized.

Net of these items, costs would have been €4,156 thousand (+6.4%) lower than in the first nine months of 2023, with the margin down by 0.4 p.p.

In the third quarter, the net cost for corporate functions amounted to €22,704 thousand (4.0% of the Group's revenues from sales and services), a decrease of €2,328 thousand (-9.3%) compared to the third quarter of 2023.

The result for the third quarter was impacted for €158 thousand by non-recurring expenses relating to the notional cost recognized in the reporting period in accordance with IFRS 2 "Share Based Payments".

In the third quarter of 2023 non-recurring expenses amounted to €1,220 thousand.

Net of these items, costs would have been €1,266 thousand (+5.3%) lower than in the third quarter of 2023, with the margin down by 0.5 p.p.

Operating Profit (EBIT)

(€ thousand)	First nine months 2024			First nine months 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Operating profit (loss) (EBIT)	191,960	(4,421)	187,539	192,890	(13,221)	179,669
	Third Quarter 2024			Third Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
						43,453
(€ thousand) Operating profit (loss) (EBIT)	39,547	(955)	38,592	45,390	(1,937)

Operating profit (EBIT) amounted to €187,539 thousand in the first nine months of 2024, an increase of €7,870 thousand (+4.4%) with respect to the comparison period. The EBIT margin came to 10.7%, a decrease of 0.2 p.p. against the comparison period.

The reporting period was impacted for €4,421 by non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €13,221 thousand. See table at page 14 for details of non-recurring transactions.

Net of these items, EBIT would have been €930 thousand lower (-0.5%) than in the first nine months of 2023, with the EBIT margin down -0.7 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, as well as from the right of use assets, from the investments made in innovation and digital transformation and the initial recognition of assets in accordance with Purchase Price Allocation accounting.

In the third quarter alone operating profit (EBIT) amounted to €38,592 thousand, a decrease of €4,861 thousand (-11.2%) with respect to the comparison period. The EBIT margin came to 6.8%, 1.4 p.p. lower in the comparison period.

The reporting period was impacted for €955 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €1,937 thousand. See table at page 14 for details of non-recurring transactions.

Net of this item, recurring EBIT would have been €5,843 thousand lower (-12.9%) than in the third quarter of 2023, with the EBIT margin down -1.5 p.p.

(€ thousands)	First nine months 2024	EBIT Margin	First nine months 2023	EBIT Margin	Change	Change %
EMEA	181,889	16.5%	185,290	17.4%	(3,401)	-1.8%
Americas	63,984	17.5%	63,220	19.6%	764	1.2%
Asia Pacific	27,342	9.9%	27,734	10.9%	(392)	-1.4%
Corporate (*)	(85,676)	-4.9%	(96,575)	-5.9%	10,899	11.3%
Total	187,539	10.7%	179,669	10.9%	7,870	4.4%
(€ thousand)	Q3 2024	EBIT Margin	Q3 2023	EBIT Margin	Change	Change %
EMEA	38,323	11.1%	44,073	13.3%	(5,750)	-13.0%
Americas	20,334	16.1%	19,828	18.1%	506	2.6%
Asia Pacific	10,150	10.4%	11,687	13.0%	(1,537)	-13.2%
Corporate (*)	(30,215)	-5.3%	(32,135)	-6.0%	1,920	6.0%

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.

(€ thousands)	First nine months 2024	EBIT Margin	First nine months 2023	EBIT Margin	Change	Change %
EMEA	183,367	16.6%	186,723	17.5%	(3,356)	-1.8%
Americas	63,984	17.5%	63,220	19.6%	764	1.2%
Asia Pacific	27,469	9.9%	27,907	10.9%	(438)	-1.6%
Corporate (*)	(82,860)	-4.7%	(84,960)	-5.2%	2,100	2.5%
Total	191,960	11.0%	192,890	11.7%	(930)	-0.5%
(€ thousand)	First nine months 2024	EBIT Margin	First nine months 2023	EBIT Margin	Change	Change %
EMEA	39,078	11.4%	44,617	13.4%	(5,539)	-12.4%
Americas	20,334	16.1%	19,828	18.1%	506	2.6%
Asia Pacific	10,192	10.5%	11,860	13.2%	(1,668)	-14.1%
Corporate (*)	(30,057)	-5.3%	(30,915)	-5.8%	858	2.8%
Total	39,547	7.0%	45,390	8.5%	(5,843)	-12.9%

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

Europe, Middle East, Africa

Operating profit (EBIT) amounted to €181,889 thousand in the first nine months of 2024, a decrease of €3,401 thousand (-1.8%) with respect to the comparison period. The EBIT margin came to 16.5%, 0.9 p.p. lower than in the comparison period.

The result was impacted for €1,478 thousand non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €1,433 thousand.

Net of these items, EBIT would have been €3,356 thousand higher (-1.8%) than in the first nine months of 2023, with the EBIT margin down 0.9 p.p.

In the third quarter alone, EBIT was €5,750 thousand (-13.0%) lower than in the comparison period, coming in at €38,323 thousand. The EBIT margin came to 11.1%, 2.2 p.p. lower than in the comparison period.

The result was impacted for €755 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €544 thousand.

Net of this item, recurring EBIT would have been €5,539 thousand lower (-12.4%) than in the third quarter of 2023, with the EBIT margin down 2.0 p.p.

Americas

Operating profit (EBIT) amounted to €63,984 thousand in the first nine months of 2024, an increase of €764 thousand (+1.2%) with respect to the comparison period. The EBIT margin was 2.1 p.p. lower than in the first nine months of 2023, coming in at 17.5%.

In the third quarter alone, EBIT rose €506 thousand (+2.6%) to €20,334. The EBIT margin was 2.0 p.p. lower at 16.1%.

Asia Pacific

Operating profit (EBIT) amounted to €27,342 thousand in the first nine months of 2024, a decrease of €392 thousand (-1.4%) with respect to the comparison period. The EBIT margin came to 9.9%, 1.0 p.p. lower than in the first nine month of 2023.

The result of the period was impacted for €127 thousand by non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €174 thousand. Net of these items, EBIT would have been €438 thousand lower (-1.6%), with the EBIT margin down 1.0 p.p.

In the third quarter alone, operating profit (EBIT) amounted to €10,150 thousand, a decrease of €1,537 thousand (-13.2%) with respect to the comparison period. The EBIT margin came to 10.4%, 2.6 p.p. lower than in the third quarter of 2023.

The result for the third quarter of 2024 was impacted for €42 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €174 thousand.

Net of these items, EBIT would have been €1,668 thousand lower (-14.1%), with the EBIT margin down 2.7 p.p.

Corporate

The net Corporate costs at the EBIT level amounted to €85,676 thousand in the first nine months of 2024 (-4.9% of the revenues generated by the Group's sales and services), a decrease of €10,899 thousand against the first nine months of 2023.

The result posted in the reporting period was impacted for €2,816 by non-recurring expenses. In the first nine months of 2023 non-recurring expenses amounted to €11,614 thousand. Net of these items, the costs would have been €2,100 thousand lower (-2.5%) with the margin down 0.5 p.p.

In the third quarter alone, the net Corporate costs amounted to €30,215 thousand (-5.3% of the revenues generated by the Group's sales and services), a decrease of €1,920 thousand (-6.0%) compared to the third quarter of 2023.

The third quarter of 2024 was impacted for €158 thousand non-recurring expenses. In the third quarter of 2023 non-recurring expenses amounted to €1,220 thousand.

Net of these items, the costs would have been 858 thousand lower (-2.8%) with the margin down 0.5 p.p.

Profit before taxes

(€ thousand)	First nine months 2024			First nine months 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Profit before taxes	148,363	(4,421)	143,942	155,997	(13,221)	142,776
(€ thousand)	Third Quarter 2024			Third Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Profit before taxes	23,464	(955)	22,509	32,214	(1,937)	30,277

Profit before tax amounted to €143,942 thousand in the first nine months of 2024, an increase of €1,166 thousand (+0.8%) against the comparison period, with a gross profit margin of 8.2% (- 0.5 p.p. with respect to the comparison period).

The results for the reporting period were impacted for €4,421 thousand non-recurring expenses. In the first nine months of 2023 non-recurring expenses of €13,221 thousand were incurred. See table at page 14 for details of non-recurring transactions.

On a recurring basis, profit before tax was €7,634 thousand lower (-4.9%) compared to the first nine months of 2023, with the profit margin down 1.0 p.p.

In addition to the change in EBIT described above, this result reflects an increase in net financial expenses of €6,704 thousand. The increase in interest payable linked to both higher average debt (that includes also the IFRS 16 accounting of higher lease liability stemming from the network expansion) as well as increased interest rates compared to first nine month of 2023 were partially offset by lower exchange differences and financial income stemming from the recognition of tax credits for the deferred payment of acquisitions contained in and regulated by Articles 119 and 121 of Legislative Decree n. 34/2020 ("Decreto Rilancio").

In the third quarter alone, profit before tax was €7,768 thousand (-25.7%) lower, coming in at €22,509 thousand. The gross profit margin was 4.0% (-1.7 p.p. compared to the comparison period).

The increase in financial expenses amounted to €2,907 thousand.

The results for the third quarter of 2024 were impacted by 955 thousand by non-recurring expenses. In the third quarter of 2023 non-recurring expenses of €1,937 thousand were incurred. Net of this item, there would have been a decrease of €8,750 thousand (-0.9%) compared to the third quarter of 2023.

The gross profit margin would have reached 4.1% or -2.0 p.p. less than in the third quarter of 2023.

Group net profit

(€ thousand)		First nine months 2024			First nine months 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Group net profit	107,379	(3,198)	104,181	112,815	(9,377)	103,438
(€ thousand)		Third Quarter 2024			Third Quarter 2023
	Recurring	Non recurring	Total	Recurring	Non recurring	Total
Group net profit	17,481	(710)	16,771	23,471	(1,389)	22,082

The Group's net profit came to €104,181 thousand in the first nine months of 2024, an increase of €743 thousand (+0.7%) against the comparison period, with a profit margin of 6.0% (-0.3 p.p. lower against the comparison period).

The result for the reporting period was impacted for €3,198 thousand by the same non-recurring expenses (described above), net of the tax effect. In the first nine months of 2023 net nonrecurring expenses amounted to €9,337 thousand. See table at page 14 for details of nonrecurring transactions.

On a recurring basis, the Group's net profit was €5,436 thousand (-4.8%) lower than in the first nine months of 2023, with the profit margin down 0.7 p.p.

The tax rate was 27.5% in the reporting period compared to 27.6% in the first nine months of 2023.

In the third quarter alone the Group's net profit reached €16,771 thousand (3.0% of revenues from sales and services), showing an decrease of €5,311 thousand (-24.1%) against the comparison period, with the profit margin down -1.2 p.p. Net of the non-recurring expenses, the Group's net profit would have been €5,990 thousand lower (-25.5%), with the profit margin down -1.3 p.p.

BALANCE SHEET REVIEW

Consolidated balance sheet by geographical area (*)

(€ thousands)	09/30/2024
	EMEA	Americas	APAC	Eliminations	Total
Goodwill	1,028,294	294,503	619,534	-	1,942,331
Non-competition agreements, trademarks, customer lists and lease rights	182,129	30,403	53,395	-	265,927
Software, licenses, other intangible fixed assets, fixed assets in progress and advances	124,413	30,147	8,430	-	162,990
Property, plant, and equipment	163,879	37,478	42,144	-	243,501
Right-of-use assets	377,716	45,522	63,854	-	487,092
Financial fixed assets	20,106	6,473	231	-	26,810
Other non-current financial assets	39,073	2,562	1,788	-	43,423
Non-current assets	1,935,610	447,088	789,376	-	3,172,074
Inventories	69,038	14,347	9,483	-	92,868
Trade receivables	217,189	68,356	18,819	(83,691)	220,673
Other receivables	117,464	16,940	9,574	(195)	143,783
Current assets (A)	403,691	99,643	37,876	(83,886)	457,324
Operating assets	2,339,301	546,731	827,252	(83,886)	3,629,398
Trade payables	(282,495)	(75,884)	(42,277)	83,691	(316,965)
Other payables	(282,211)	(43,691)	(42,575)	195	(368,282)
Provisions for risks and charges (current portion)	(1,544)	(604)	-	-	(2,148)
Current liabilities (B)	(566,250)	(120,179)	(84,852)	83,886	(687,395)
Net working capital (A) - (B)	(162,559)	(20,536)	(46,976)	-	(230,071)
Derivative instruments	6,632	-	-	-	6,632
Deferred tax assets	59,258	11,040	12,458	-	82,756
Deferred tax liabilities	(66,202)	(22,272)	(14,017)	-	(102,491)
Provisions for risks and charges (non current portion)	(19,825)	(1,139)	(847)	-	(21,811)
Liabilities for employees' benefits (non current portion)	(12,037)	(5)	(776)	-	(12,818)
Loan fees	2,122	-	-	-	2,122
Other non-current liabilities	(185,846)	(14,600)	(2,465)	-	(202,911)
NET INVESTED CAPITAL	1,557,153	399,576	736,753	-	2,693,482
Group net equity					1,118,112
Minority interests					153
Total net equity					1,118,265
Net medium and long-term financial indebtedness					726,642
Net short-term financial indebtedness					341,637
Total net financial indebtedness					1,068,279
Lease liabilities	393,491	49,490	63,958		506,939
Total lease liabilities & net financial indebtedness					1,575,217
NET EQUITY, LEASE LIABILITIES AND NET FINANCIAL INDEBTEDNESS					2,693,482

(*) 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 €3,172,074 thousand at 30 September 2024, an increase of €195,687 thousand with respect to the €2,976,387 thousand recorded at 31 December 2023.

The changes in the reporting period are explained (i) for €207,806 thousand by acquisitions made in the first nine months of the year; (ii) for €99,849 thousand by capital expenditure; (iii) for €98,695 thousand by the recognition of right-of-use assets acquired during the year; (iv) for €220,274 thousand, by amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above; (v) for €9,611 thousand by the recognition of tax credits for the deferred payment of acquisitions contained in and regulated by Articles 119 and 121 of Legislative Decree n. 34/2020 (the Relaunch Decree) and foreign exchange differences.

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

(€ thousands)		09/30/2024	12/31/2023	Change
	Goodwill	1,028,294	955,383	72,911
	Non-competition agreements, trademarks, customer lists and lease rights	182,129	176,887	5,242
	Software, licenses, other intangible fixed assets, fixed assets in progress and advances	124,413	123,344	1,069
EMEA (*)	Tangible assets	163,879	148,081	15,798
	Right-of-use assets	377,716	373,293	4,423
	Financial fixed assets	20,106	3,629	16,477
	Other non-current financial assets	39,073	39,701	(628)
	Non-current assets	1,935,610	1,820,318	115,292
	Goodwill	294,503	237,178	57,325
	Non-competition agreements, trademarks, customer lists and lease rights	30,403	21,126	9,277
	Software, licenses, other intangible fixed assets, fixed assets in progress and advances	30,147	29,520	627
Americas	Tangible assets	37,478	29,929	7,549
	Right-of-use assets	45,522	44,949	573
	Financial fixed assets	6,473	12,841	(6,368)
	Other non-current financial assets	2,562	2,440	122
	Non-current assets	447,088	377,983	69,105
	Goodwill	619,534	607,013	12,521
	Non-competition agreements, trademarks, customer lists and lease rights	53,395	57,670	(4,275)
	Software, licenses, other intangible fixed assets, fixed assets in progress and advances	8,430	8,042	388
Asia Pacific	Tangible assets	42,144	43,506	(1,362)
	Right-of-use assets	63,854	59,911	3,943
	Financial fixed assets	231	234	(3)
	Other non-current financial assets	1,788	1,710	78
	Non-current assets	789,376	778,086	11,290
Total		3,172,074	2,976,387	195,687

(*) 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 €1,935,610 thousand at 30 September 2024, an increase of €115,292 thousand with respect to the €1,820,318 thousand recorded at 31 December 2023. This increase is explained by:

• for €118,547 thousand, acquisitions made during the reporting period;
• for €60,848 thousand, right-of-use assets acquired in the year as a result of the renewal of existing leases and network expansion.
• for €37,858 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 €32,250 thousand, investments in intangible assets, relating to new Front Office solutions and the expansion of the sales network, as well as the continuous implementation and standardization of the Group ERP cloud system;
• for €147,648 thousand, amortization, depreciation and impairment, including amortization of the right-of-use assets referred to above;
• for €13,437 thousand, to other increases stemming mainly from the recognition of acquisitions with deferred payments using tax credits arising from concessions contained in and regulated by Articles 119 and 121 of Law Decree No. 34/2020 ("Decreto Rilancio")

Americas

Non-current assets amounted to €447,088 thousand at 30 September 2024, an increase of €69,105 thousand against the €377,983 thousand recorded at 31 December 2023. This increase is explained:

• for €73,782 thousand, by acquisitions made in the reporting period;
• for €12,492 thousand, by investments in property, plant and equipment, relating to the opening of new stores, and the renewal of existing ones;
• for €11,817 thousand, by right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion;
• for €5,762 thousand, investments in intangible assets, relating largely to the continuous implementation and standardization of the Group ERP cloud system primarily at the US subsidiaries;
• for €27,018 thousand, by amortization and depreciation, including the amortization of the right-of-use assets referred to above;
• for €7,230 thousand, by foreign exchange losses.

Asia Pacific

Non-current assets amounted to €789,376 thousand at 30 September 2024, an increase of €11,290 thousand against the €778,086 thousand recorded at 31 December 2023. This change is explained by:

• for €26,030 thousand, an increase in right-of-use assets acquired during the year as a result of the renewal of existing leases and network expansion;
• for €15,977 thousand, by acquisitions made in the reporting period;
• for €8,911 thousand, 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 €2,576 thousand, investments in intangible assets relating mainly to the ongoing implementation and standardization of the Group's cloud-based ERP system;
• for €45,608 thousand, amortization and depreciation, including the amortization of the right of-use assets referred to above;
• for €3,404 thousand by other increases relating to foreign exchange gains which mainly affected goodwill.

Net invested capital

Net invested capital amounted to €2,693,482 thousand at 30 September 2024, an increase of €242,243 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)	09/30/2024	12/31/2023	Change
EMEA (*)	1,557,153	1,412,321	144,832
Americas	399,576	316,541	83,035
Asia Pacific	736,753	722,377	14,376
Total	2,693,482	2,451,239	242,243

(*) 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

Net invested capital came to €1,557,153 thousand at 30 September 2024, an increase of €144,832 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 € 164,640 thousand (€170,930 thousand in the same period of the prior year) and VAT credits with a face value of € 15,671 thousand (€19,055 thousand in the same period of the prior year). As of

Q4 2023 factoring without recourse includes the receivables payable to German insurance companies through specialized intermediaries; the figures in the comparison period were adjusted to reflect this change.

Americas

Net invested capital came to €399,576 thousand at 30 September 2024, an increase of €83,035 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 €589 thousand (€1,126 thousand in the same period of the prior year).

Asia Pacific

Net invested capital came to €736,753 thousand at 30 September 2024, an increase of €14,376 thousand against the €722,377 thousand recorded at 31 December 2023. Along with a slight decrease in net working capital, there was also a significant decrease in other long-term payables.

Factoring without recourse in the period involved trade receivables with a face value of €3,878 thousand (€5,652 thousand in the same period of the prior year).

Net financial indebtedness

(€ thousands)	09/30/2024	12/31/2023	Change
Net medium and long-term financial indebtedness	726,642	719,428	7,214
Net short-term financial indebtedness	509,269	326,733	182,536
Cash and cash equivalents	(167,632)	(194,031)	26,399
Net financial indebtedness (A)	1,068,279	852,130	216,149
Lease liabilities – current portion	124,224	113,522	10,702
Lease liabilities – non-current portion	382,715	383,909	(1,194)
Lease liabilities (B)	506,939	497,431	9,508
Total lease liabilities & net financial indebtedness (A)+(B) (C)	1,575,217	1,349,561	225,656
Group net equity (D)	1,118,112	1,100,919	17,193
Minority interests	153	759	(606)
Net Equity (E)	1,118,265	1,101,678	16,586
Financial indebtedness/Group net equity (A/D)	0.96	0.77
Financial indebtedness/Net equity (A/E)	0.96	0.77
Financial indebtedness/EBITDA (*)	1.78	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).

Net financial debt, excluding lease liabilities, amounts to €1,068,279 thousand compared to €852,130 thousand at year-end 2023. Free cash flow reached a positive €50,560 thousand (compared to € 68,772 thousand in the first nine months of the prior year) and was impacted primarily by higher rent and interest payments, as well as greater absorption of working capital. The significant cash-outs for acquisitions, which amounted to €184,077 thousand (€83,243 thousand in the first nine months of 2023), along with the payment of €65,593 thousand in dividends (€65,361 thousand in the comparison period), the purchase of treasury shares for €20,258 thousand (none were purchased in the comparison period) and the positive cash flow generated by other financial assets of €5,562 thousand, bring cash flow for the reporting period to negative €214,292 thousand versus a negative €83,847 thousand in the first nine months of 2023.

The main transactions occurred during the period are as follows:

• 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 €675 million at 30 September 2024.
• In September 2024, Crédit Agricole Italia, backed by SACE's Garanzia Futuro, financed for 50 million euros the international roll-out of Amplifon's new store format, aimed at providing consumers with an immersive and completely personalized experience

through visual and digital elements integrated into an innovative and sustainable architectural design.

• 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 September 2024 the Group also had cash and cash equivalents, as well as other liquid investments, of €167,632 thousand versus total financial indebtedness of €1,236 million, net of lease liabilities.

Medium-Long term net financial debt, excluding lease liabilities, amounted to €726,642 thousand at 30 September 2024 (€719,428 thousand at 31 December 2023) substantially in line with 2023: the reclassification as short-term debt of the portions of long-term debt maturing in the next 12 months and of the deferred payments for acquisition was net by new subscriptions.

The short-term portion of net financial debt, excluding lease liabilities, amounts to €509,269 showing an increase of €182,536 thousand due primarily to hot money transactions and utilization of short-term credit lines temporary coverage of higher total debt.

More specifically, the short-term portion includes mainly other bank debt linked to hot-money transactions and utilization of short-term credit lines (€316,101 thousand), the short-term portions of long-term bank loans (€173,508 thousand), interest payable on other bank borrowings (€2,320 thousand) and the Eurobond (€2,481 thousand) and lastly, the best estimate of the deferred payments for acquisitions (€12,785 thousand).

Net of cash and cash equivalent, short net financial indebtedness amounts to €341,637 thousand, compared to €132,702 of comparison period.

After first nine months of 2024, as of 14th October 2024, Amplifon signed with UniCredit and Cassa Depositi e Prestiti (CDP) €200 million credit facility ESG linked, divided as follows:

€100 million from UniCredit to support the Group's development initiatives and €100 million from CDP which co-financed Amplifon's investments in innovation in Italy, as already done by the loan signed with European Investment Bank (EIB) mentioned above.

In this way, a similar reduction in the use of short-term lines was allowed and a reduction of the net short-term debt to approximately €140 million, aligned with the comparative period.

The chart below shows the debt maturities compared to:

• the €167.6 million in cash and cash equivalents;
• the unutilized portions of irrevocable credit lines which amount to €450 million;
• the unutilized €225 million of the EIB loan taken out to support investments in innovation and digitalization.

Thanks to the subscription in October 2024 of the €200 million loan from Unicredit and CDP mentioned above, the demand share of financial debts would fall from €322 to €122 million, as shown by the "pro-forma" chart below:

Interest payable on financial debt amounted to €28,740 thousand at 30 September 2024 versus €20,579 thousand at 30 September 2023. Interest payable on leases recognized in accordance with IFRS 16 amounted to €13,786 thousand versus €10,846 thousand at 30 September 2023.

Interest receivable on bank deposits came to €2,550 thousand at 30 September 2024 versus €1,543 thousand at 30 September 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 nine months 2024	First nine months 2023
OPERATING ACTIVITIES:
Net profit (loss) attributable to the Group	104,181	103,438
Minority interests	134	3
Amortization, depreciation and impairment:
- Intangible fixed assets	77,137	65,345
- Tangible fixed assets	46,250	39,663
- Right-of-use assets	96,887	87,908
Total amortization, depreciation and impairment	220,274	192,916
Provisions, other non-monetary items and gains/losses from disposals	17,024	28,735
Group's share of the result of associated companies	(283)	(207)
Financial income charges	43,880	37,102
Current and deferred income taxes	39,627	39,333
Change in assets and liabilities:
- Utilization of provisions	(2,365)	(7,356)
- (Increase) decrease in inventories	(3,734)	(8,505)
- Decrease (increase) in trade receivables	9,357	(14,469)
- Increase (decrease) in trade payables	(49,324)	3,011
- Changes in other receivables and other payables	(38,021)	(25,651)
Total change in assets and liabilities	(84,087)	(52,970)
Dividends collected	-	3
Net interest charges	(40,563)	(33,974)
Taxes paid	(54,480)	(60,679)
Cash flow provided by (used in) operating activities before repayment of lease liabilities	245,707	253,700
Repayment of lease liabilities	(96,112)	(85,095)
Cash flow generated from (absorbed) by operating activities	149,595	168,605
INVESTING ACTIVITIES:
Purchase of intangible fixed assets	(40,588)	(51,313)
Purchase of property, plant and equipment	(59,261)	(50,347)
Consideration from sale of tangible fixed assets and businesses	814	1,827
Cash flow generated from (absorbed) by investing activities	(99,035)	(99,833)
Cash flow generated from operating and investing activities (Free Cash Flow)	50,560	68,772
Business combinations (*)	(184,077)	(83,243)
Net cash flow generated from acquisitions	(184,077)	(83,243)
Cash flow generated from (absorbed) by investing activities and acquisitions	(283,112)	(183,076)

(€ thousands)	First nine months 2024	First nine months 2023
FINANCING ACTIVITIES:
Derivatives	-	(1,483)
Other non-current assets	5,562	(982)
Fees paid on medium/long-term financing	(104)	(1,413)
Treasury shares	(20,258)	-
Dividends	(65,593)	(65,361)
Capital increases and minority shareholders' contributions and dividends paid to third parties by subsidiaries	(382)	(137)
Cash flow generated from (absorbed) by financing activities	(80,775)	(69,376)
Changes in net financial indebtedness net of lease liabilities	(214,292)	(83,847)
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	(1,857)	(3,793)
Changes in net financial debt	(214,292)	(83,847)
Net financial indebtedness at the end of the period net of lease liabilities	(1,068,279)	(917,633)

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

The change in net financial indebtedness of €214,292 thousand is attributable to:

• (i) Investing activities:
  • capital expenditure on property, plant and equipment and intangible assets of € 99,849 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 €184,077 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 €814 thousand.
• (ii) Operating activities:
  • interest payable on financial indebtedness, on leases due to IFRS16 accounting standards application and other net financial expenses for €40,563 thousand;
  • payment of taxes amounting to €54,480 thousand;
  • payment of principle on lease obligations of €96,112 thousand;
  • cash flow generated by current operations of €340,750 thousand.
• (iii) Financing activities:
  • dividends distribution for €65,593 thousand;
  • fees paid on medium/long-term financing for €104 thousand;
  • treasury shares purchase for €20,258 thousand;
  • collection of other non-current assets for €5,562 thousand.
• (iv) Net debt was also impacted by exchange losses of €1,857 thousand.

Non-recurring transactions had a negative impact on cash flow of €2,053 thousand, of which €1,481 thousand for costs related to GAES integration, €490 thousand for costs related to define and implement amendments to the Articles of Association and €82 thousand to the integration of Bay Audio.

ACQUISITION OF COMPANIES AND BUSINESSES

During the first nine months of 2024, the Group continued with external growth operations and acquired 365 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 €184,077 thousand, including the debt consolidated and the best estimate of the earn-out linked to sales and profitability targets payable over the next few years.

More in detail, in the first nine months of 2024:

• 95 points of sale were acquired in the United States;
• 94 points of sale were acquired in China;
• 58 points of sale were acquired in Germany;
• 43 points of sale were acquired in France;
• 34 points of sale were acquired in Spain
• 23 points of sale were acquired in Uruguay;
• 11 points of sale were acquired in Canada;
• 6 points of sale were acquired in Italy;
• 1 point of sale was acquired in Argentina.

OUTLOOK

In the third quarter of 2024, the European hearing care market was still soft and below expectations, while the US was solid and in line with expectations, even if slower than in the first half.

In the first nine months, despite a market environment characterized by different performances across geographic areas, the Group continued along its path of strong revenue growth. Profitability was higher than in the same period of the prior year, despite, on the one hand, lower operating leverage and higher marketing investments to overcome market softness in EMEA, and, on the other, the dilution effect due to the Miracle-Ear direct retail network accelerated growth and the integration of the recent acquisitions in the United States.

In the fourth quarter of 2024, Amplifon expects:

• the European market to progressively normalize, while the US market is expected to continue to grow, in line with initial expectations;
• to grow faster than the reference market.

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, also with regards to what was previously communicated, expects:

• consolidated revenues to grow high-single-digit growth at constant exchange rates (expect exchange rate EUR/ARS assumed equals to 1,100 as of 31th December 2024), supported by market share gains and bolt-on acquisitions, the latter contributing to revenue growth for at least 3%;
• a recurring EBITDA margin broadly in line with 2023, despite the lower operating leverage and the higher investments in marketing to overcome market softness in EMEA, as well as the dilution effect due to Miracle-Ear direct retail network accelerated growth and the integration of recent acquisitions in the United States.

In the medium-term the Group remains extremely optimistic 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, October 30th, 2024

CEO

Enrico Vita

49

CONDENSED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS AS AT 30 SEPTEMBER 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION(*)

(€ thousands)	09/30/2024	12/31/2023	Change
ASSETS
Non-current assets
Goodwill	Note 3		1,799,574	142,757
Intangible fixed assets with finite useful life	Note 4		416,589	12,328
Property, plant, and equipment	243,501	221,516	21,985
Right-of-use assets	Note 6	487,092	478,153	8,939
Equity-accounted investments		2,724	2,444	280
Hedging instruments	5,753	12,933	(7,180)
Deferred tax assets	82,756	82,701	55
Contract costs	11,585	11,275	310
Other assets	Note 7		46,835	9,089
Total non-current assets	3,260,583	3,072,020	188,563
Current assets
Inventories	92,868	88,320	4,548
Trade receivables	220,673	231,253	(10,580)
Contract costs	7,156	6,840	316
Other receivables	136,610	100,184	36,426
Hedging instruments	2,040	549	1,491
Other financial assets	875	901	(26)
Cash and cash equivalents Note 9		166,775	193,148	(26,373)
Total current assets		626,997	621,195	5,802
Total assets		3,887,580	3,693,215	194,365

		09/30/2024	12/31/2023	Change
(€ thousands)
LIABILITIES
Net Equity
Share capital	Note 8	4,528	4,528	-
Share premium reserve		202,712	202,712	-
Treasury shares		(24,620)	(17,495)	(7,125)
Other reserves		(70,274)	(53,608)	(16,666)
Retained earnings		901,585	809,643	91,942
Profit (loss) for the period		104,181	155,139	(50,958)
Group net equity		1,118,112	1,100,919	17,193
Minority interests		153	759	(606)
Total net equity		1,118,265	1,101,678	16,587
Non-current liabilities
Medium/long-term financial liabilities	Note 10	719,749	710,267	9,482
Lease liabilities	Note 12	382,715	383,909	(1,194)
Provisions for risks and charges	Note 11	21,811	19,379	2,432
Liabilities for employees' benefits		12,818	12,963	(145)
Deferred tax liabilities	102,491	98,451	4,040
Payables for business acquisitions	5,725	7,229	(1,504)
Contract liabilities	162,912	153,716	9,196
Other long-term liabilities		39,998	26,379	13,619
Total non-current liabilities		1,448,219	1,412,293	35,926
Current liabilities
Trade payables	316,965	358,955	(41,990)
Payables for business acquisitions	12,785	9,554	3,231
Contract liabilities	119,954	120,043	(89)
Tax liabilities	61,786	74,433	(12,647)
Other payables	182,523	181,101	1,422
Hedging instruments		341	242	99
Provisions for risks and charges	Note 11	2,148	1,268	880
Liabilities for employees' benefits		4,176	3,713	463
Short-term financial liabilities	Note 10	496,194	316,413	179,781
Lease liabilities	Note 12	124,224	113,522	10,702
Total current liabilities		1,321,096	1,179,244	141,852
TOTAL LIABILITIES		3,887,580	3,693,215	194,365

(*) 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 nine months 2024		First nine months 2023
		Recurring	Non recurring	Total	Recurring	Non recurring	Total	Change
Revenues from sales and services	Note 13	1,744,833	-	1,744,833	1,645,065	-	1,645,065	99,768
Operating costs (**)	Note 14	(1,337,759)	(4,421)	(1,342,180)	(1,264,767)	(13,221)	(1,277,988)	(64,192)
Other income and costs (**)		5,160	-	5,160	5,508	-	5,508	(348)
Gross operating profit (EBITDA)		412,234	(4,421)	407,813	385,806	(13,221)	372,585	35,228
Amortization, depreciation and impairment
Amortization of intangible fixed assets	Note 4	(77,036)	-	(77,036)	(65,319)	-	(65,319)	(11,717)
Depreciation of property, plant, and equipment	Note 5	(45,663)	-	(45,663)	(39,486)	-	(39,486)	(6,177)
Right-of-use depreciation	Note 6	(96,887)	-	(96,887)	(87,908)	-	(87,908)	(8,979)
Impairment losses and reversals of non-current assets		(688)	-	(688)	(203)	-	(203)	(485)
		(220,274)	-	(220,274)	(192,916)	-	(192,916)	(27,358)
Operating result		191,960	(4,421)	187,539	192,890	(13,221)	179,669	7,870
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	210	-	210	73
Interest income and expenses		(26,190)	-	(26,190)	(19,036)	-	(19,036)	(7,154)
Interest expenses on lease liabilities		(13,786)	-	(13,786)	(10,846)	-	(10,846)	(2,940)
Other financial income and expenses		(1,658)	-	(1,658)	(3,528)	-	(3,528)	1,870
Exchange gains and losses, and inflation accounting		(2,759)	-	(2,759)	(4,438)	-	(4,438)	1,679
Gain (loss) on assets accounted at fair value		513	-	513	745	-	745	(232)
		(43,597)	-	(43,597)	(36,893)	-	(36,893)	(6,704)
Profit (loss) before tax		148,363	(4,421)	143,942	155,997	(13,221)	142,776	1,166
Current and deferred income tax
Current tax		(39,666)	1,223	(38,443)	(50,062)	3,844	(46,218)	7,775
Deferred tax		(1,184)	-	(1,184)	6,883	-	6,883	(8,067)
		(40,850)	1,223	(39,627)	(43,179)	3,844	(39,335)	(292)
Net profit (loss)		107,513	(3,198)	104,315	112,818	(9,377)	103,441	874
Net profit (loss) attributable to Minority interests		134	-	134	3	-	3	131
Net profit (loss) attributable to the Group		107,379	(3,198)	104,181	112,815	(9,377)	103,438	743

(*) 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 nine months 2024	First nine months 2023
Earnings per share - Basic - Diluted		0.46111 0.45766	0.46167 0.45805

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

(€ thousands)	First nine months 2024	First nine months 2023
Net income (loss) for the period	104,315	103,441
Other comprehensive income (loss) that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	(423)	(943)
Tax effect on components of other comprehensive income that will not be reclassified subsequently to profit or loss	94	201
Total other comprehensive income (loss) that will not be reclassified subsequently to profit or loss after the tax effect (A)	(329)	(742)
Other comprehensive income (loss) that will be reclassified subsequently to profit or loss:
Gains/(losses) on cash flow hedging instruments	(6,301)	(6,694)
Gains/(losses) from Foreign Currency Basis Spread on hedging instruments	-	516
Gains/(losses) on exchange differences from translation of financial statements of foreign entities	(9,422)	(41,167)
Tax effect on components of other comprehensive income that will be reclassified subsequently to profit or loss	1,512	1,482
Total other comprehensive income (loss) that will be reclassified subsequently to profit or loss after the tax effect (B)	(14,211)	(45,863)
Total other comprehensive income (loss) (A)+(B)	(14,540)	(46,605)
Comprehensive income (loss) for the period	89,775	56,836
Attributable to the Group	89,827	57,116
Attributable to Minority interests	(52)	(280)

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						22,758
Other changes					25,970	(18,467)
- Stock Grant					25,970	(18,467)
- Inflation accounting
- Other changes
Total comprehensive income (loss) for the period
- Hedge accounting
- Actuarial gains (losses)
- Translation differences
- Profit for the first nine months of 2023
Balance at 30 September 2023	4,528	202,712	934	3,636	(23,925)	39,473

(€ thousands)	Share capital	Share premium reserve	Legal reserve	Other reserves	Treasury shares reserve	Stock grant reserve
Balance at 01/01/2024	4,528	202,712	934	3,636	(17,495)	41,299
Allocation of profit (loss) for 2023
Share capital increase
Treasury shares					(20,258)
Dividend distribution
Notional cost of stock grants						13,610
Other changes					13,133	(15,922)
- Stock Grant					13,133	(15,922)
- Inflation accounting
- Other changes
Total comprehensive income (loss) for the period
- Hedge accounting
- Actuarial gains (losses)
- Translation differences
- Profit for the first nine months of 2024
Balance at 30 September 2024	4,528	202,712	934	3,636	(24,620)	38,987

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)
							22,758		22,758
				9,245			16,748	(616)	16,132
				(4,138)			3,365		3,365
				14,429			14,429		14,429
				(1,046)			(1,046)	(616)	(1,662)
(5,088) (5,088)	392 392		(742)		(40,884)	103,438	57,116 (4,696)	(280)	56,836 (4,696)
			(742)				(742)		(742)
					(40,884)		(40,884)	(283)	(41,167)
						103,438	103,438	3	103,441
14,825	-		2,040	813,818	(91,709)	103,438	1,069,770	945	1,070,715
Cash flow	Actuarial gains		Retained		Translation	Profit (loss) for	Total Shareholders'	Minority	Total net
hedge reserve		and losses	earnings		differences	the period	equity	interests	equity
9,888		(957)	809,643		(108,408)	155,139	1,100,919	759	1,101,678
			155,139			(155,139)	-		-
							-		-
			(65,593)				(20,258) (65,593)		(20,258) (65,593)
							13,610		13,610
			2,396				(393)	(554)	(947)
			1,486				(1,303)		(1,303)
			14,848				14,848		14,848
			(13,938)				(13,938)	(554)	(14,492)
(4,789)		(329)			(9,236)	104,181	89,827	(52)	89,775
(4,789)							(4,789)		(4,789)
		(329)					(329)		(329)
					(9,236)		(9,236)	(186)	(9,422)
						104,181	104,181	134	104,315
5,099		(1,286)	901,585		(117,644)	104,181	1,118,112	153	1,118,265

STATEMENT OF CONSOLIDATED CASH FLOWS

OPERATING ACTIVITIES Net profit (loss) 104,315 103,441 Amortization, depreciation and impairment: - intangible fixed assets 77,137 65,345 - property, plant, and equipment 46,250 39,663 - right-of-use assets 96,887 87,908 Provisions, other non-monetary items and gain/losses from disposals 17,024 28,735 Group's share of the result of associated companies (283) (207) Financial income and expenses 43,880 37,102 Current and deferred taxes 39,627 39,333 Cash flow from operating activities before change in net working capital 424,837 401,320 Utilization of provisions (2,365) (7,356) (Increase) decrease in inventories (3,734) (8,505) Decrease (increase) in trade receivables 9,357 (14,469) Increase (decrease) in trade payables (49,324) 3,011 Changes in other receivables and other payables (38,021) (25,651) Total change in assets and liabilities (84,087) (52,970) Dividends received - 3 Interest received (paid) (38,160) (34,120) Taxes paid (54,480) (60,679) Cash flow generated from (absorbed by) operating activities (A) 248,110 253,554 INVESTING ACTIVITIES: Purchase of intangible fixed assets (40,588) (51,313) Purchase of tangible fixed assets (59,261) (50,347) Consideration from sale of non-current assets 814 1,827 Cash flow generated from (absorbed by) operating investing activities (B) (99,035) (99,833) Purchase of subsidiaries and business units net of cash and cash equivalents acquired or (184,077) (83,243) dismissed Increase (decrease) in payables for business acquisitions 4,235 (13,993) Cash flow generated from (absorbed by) acquisition activities (C) (179,842) (97,236) Cash flow generated from (absorbed by) investing activities (B)+(C) (278,877) (197,069) FINANCING ACTIVITIES: Increase (decrease) in financial payables 183,610 67,953 (Increase) decrease in financial receivables 24 (829) Principal portion of lease payments (96,112) (85,095) Hedging instruments - (1,483) Fees paid on long-term borrowings (104) (1,413) Other non-current assets and liabilities 5,562 (982) Dividend distributed (65,593) (65,361) Treasury shares purchase (20,258) - Capital increases and minority shareholders' contributions and dividends paid to third (382) (137) parties by subsidiaries Cash flow generated from (absorbed by) financing activities (D) 6,747 (87,347) Net increase in cash and cash equivalents (A)+(B)+(C)+(D) (24,020) (30,862)	(€ thousands)	First nine months 2024	First nine months 2023

(€ thousands)	First nine months 2024	First nine months 2023
Cash and cash equivalents at beginning of period	193,148	179,654
Effect of exchange rate fluctuations on cash & cash equivalents	(2,353)	(2,025)
Flows of cash and cash equivalents	(24,020)	(30,862)
Cash and cash equivalents at end of period	166,775	146,767

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 nine months 2024	First nine months 2023
- Goodwill	137,452	63,481
- Customer lists	45,072	22,897
- Trademarks, licenses and non-competition agreements	1,508	1
- Other intangible fixed assets	4,470	502
- Property, plant, and equipment	9,087	4,979
- Right-of-use assets	9,746	938
- Current assets	15,964	6,189
- Provision for risks and charges	(1,865)	3
- Current liabilities	(26,153)	(8,348)
- Other non-current assets and liabilities	(22,113)	(6,172)
- Third parties equity	14,088	1,645
Total investments	187,256	86,115
Net financial debt acquired	3,517	976
Total business combinations	190,773	87,091
(Increase) decrease in payables through business acquisition	(4,235)	13,993
Cash flow absorbed by (generated from) acquisitions	186,538	101,084
(Cash and cash equivalents acquired)	(6,696)	(3,848)
Net cash flow absorbed by (generated from) acquisitions	179,842	97,236

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. (42.04% as at 30 September 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 September 2024 Ampliter S.r.l. held 59.09% 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 September 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 September 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 September 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 Group's annual consolidated financial statements at 31 December 2023.

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

According to the Consob Communication of 28 July 2006, it is specified that during the first nine months 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. The situation in the Middle East is currently extremely tense and complex. In the last quarter tensions spread to nearby countries like Lebanon and Iran. This situation could have significant repercussions in the region, but also globally, above all for energy and the financial markets. The Group, however, only has about 25 points of sale in this geographic area (in Israel) which generate sales equal to approximately 1% of annual consolidated revenues and limited activities in surrounding countries (Egypt) and does not have any business activities, direct or indirect, in either Lebanon or Iran. 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 nine months of the year, the hearing aid market was characterized by performances that differed across the geographic areas. The US market was solid, even if slower than in the first quarter, while the European market was softer than expected, particularly as of the second quarter. The Group recognizes that the current global and geopolitical uncertainties, with inflation that has yet to stabilize, could cause a few potential customers to postpone nonessential purchases in the near-term, 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 e goodwill

The Group continued its own balancing strategy between internal and external growth during the first nine months of 2024 acquiring 365 points of sale. In detail, there were 141 points of sale purchased in EMEA, 130 in Americas (with the entrance in Uruguayan market and acquisition of two of main franchisees in the United States) and 94 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 €184,077 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 09/30/2024
EMEA	955,383	73,085	-	-	(174)	1,028,294
AMERICAS	237,178	55,153	-	-	2,172	294,503
APAC	607,013	9,214	-	-	3,307	619,534
Total	1,799,574	137,452	-	-	5,305	1,942,331

"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 nine months of 2024, overall, the Group posted results (revenues and EBITDA) which were higher than in the prior year in all geographic areas. While positive and increased, these results do not fully meet the budget targets, specifically in EMEA, but there are gaps in APAC and AMERICAS, also. These shortfalls are largely offset by greater corporate efficiency. The Group EBITDA margin is, in fact, above budget. The decrease in revenues is more than offset by the decrease in interest and discount rates. The sensitivity analyses carried out show that the headroom in all areas has increased. There is ample headroom, therefore, to absorb any significant changes in cash flows in the future.

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 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	91,714	65,477	30,065	187,256
Assets and liabilities acquired – Book value
Current assets	6,044	3,224	-	9,268
Current liabilities	(11,759)	(5,182)	-	(16,941)
Net working capital	(5,715)	(1,958)	-	(7,673)
Other intangible, tangible and right-of-use assets	16,648	4,783	1,881	23,312
Provision for risks and charges	(1,865)	-	-	(1,865)
Other non-current assets and liabilities	(7,875)	(884)	-	(8,759)
Non-current assets and liabilities	6,908	3,899	1,881	12,688
Net invested capital	1,193	1,941	1,881	5,015
Third Parties Equity	-	-	14,088	14,088
Net financial position	1,590	1,589	-	3,179
NET EQUITY ACQUIRED - BOOK VALUE	2,783	3,530	15,969	22,282
DIFFERENCE TO BE ALLOCATED	88,931	61,947	14,096	164,974
ALLOCATIONS
Trademarks	11	1,308	-	1,319
Non-competition agreements	-	41	148	189
Customer lists	28,350	11,988	4,734	45,072
Contract liabilities - Short and long-term	(9,013)	(5,636)	-	(14,649)
Deferred tax assets	1,428	2,623	-	4,051
Deferred tax liabilities	(4,930)	(3,530)	-	(8,460)
ALLOCATIONS	15,846	6,794	4,882	27,522
GOODWILL	73,085	55,153	9,214	137,452

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 09/30/2024	Accumulated amortization and write downs at 09/30/2024	Net book value at 09/30/2024
Software	289,839	(171,112)	118,727	322,058	(203,107)	118,951
Licenses	29,731	(20,618)	9,113	34,572	(24,418)	10,154
Non-competition agreements	19,484	(14,614)	4,870	22,842	(17,795)	5,047
Customer lists	474,972	(276,910)	198,062	519,366	(307,744)	211,622
Trademarks and concessions	95,028	(50,803)	44,225	96,306	(55,844)	40,462
Other	14,056	(4,197)	9,859	17,172	(5,215)	11,957
Fixed assets in progress and advances	31,733	-	31,733	30,724	-	30,724
Total	954,843	(538,254)	416,589	1,043,040	(614,123)	428,917

(€ thousands)	Net book value at 12/31/2023	Investments	Disposals	Amortization	Business combinations	Impairment	Other net changes	Net book value at 09/30/2024
Software	118,727	16,458	-	(32,980)	110	(76)	16,712	118,951
Licenses	9,113	2,683	(10)	(3,815)	8	(1)	2,176	10,154
Non-competition agreements	4,870	2,116	-	(3,270)	189	(53)	1,195	5,047
Customer lists	198,062	28	-	(30,781)	45,072	-	(759)	211,622
Trademarks and concessions	44,225	14	(10)	(4,994)	1,311	-	(84)	40,462
Other	9,859	272	20	(1,196)	3,264	(108)	(154)	11,957
Fixed assets in progress and advances	31,733	19,017	(12)	-	1,096	137	(21,247)	30,724
Total	416,589	40,588	(12)	(77,036)	51,050	(101)	(2,161)	428,917

The investments in intangible assets (€40,588 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 €30,028 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;
• For €16,140 thousand the temporary allocation of the price paid for acquisitions made in Americas;
• For €4,882 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 09/30/2024	Accumulated amortization and write downs at 09/30/2024	Net book value at 09/30/2024
Land	129	-	129	158	-	158
Buildings, constructions and leasehold improvements	321,929	(215,933)	105,996	352,587	(237,624)	114,963
Plant and machines	43,102	(34,441)	8,661	47,274	(37,888)	9,386
Industrial and commercial equipment	91,892	(71,140)	20,752	96,123	(75,615)	20,508
Motor vehicles	1,259	(838)	421	1,380	(741)	639
Computers and office machinery	90,415	(69,133)	21,282	100,006	(78,959)	21,047
Furniture and fittings	136,733	(100,349)	36,384	150,141	(110,117)	40,024
Other tangible fixed assets	6,686	(4,228)	2,458	6,709	(4,765)	1,944
Fixed assets in progress and advances	25,433	-	25,433	34,832	-	34,832
Total	717,578	(496,062)	221,516	789,210	(545,709)	243,501

(€ thousands)	Net book value at 12/31/2023	Investments	Disposals	Amortization	Business combinations	Impairment	Other net changes	Net book value at 09/30/2024
Land	129	-	-	-	-	-	29	158
Buildings, constructions and leasehold improvements	105,996	18,679	(18)	(19,148)	1,571	(350)	8,233	114,963
Plant and machines	8,661	1,373	(2)	(1,925)	1,221	(40)	98	9,386
Industrial and commercial equipment	20,752	3,078	(43)	(4,731)	462	(34)	956	20,508
Motor vehicles	421	139	(103)	(118)	143	(17)	174	639
Computers and office machinery	21,282	6,151	(1)	(9,973)	1,741	(14)	1,861	21,047
Furniture and fittings	36,384	7,771	(64)	(9,258)	2,009	(69)	3,251	40,024
Other tangible fixed assets	2,458	122	12	(510)	60	-	46	1,944
Fixed assets in progress and advances	25,433	22,192	(139)	-	1,880	(131)	(14,403)	34,832
Total	221,516	59,261	(358)	(45,663)	9,087	(587)	245	243,501

The investments of the reporting period (€59,261 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 €6,115 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;

• For €1,091 thousand, the temporary allocation of the price paid for acquisitions made in Americas;
• For €1,881 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 09/30/2024	Accumulated amortization and write downs at 09/30/2024	Net book value at 09/30/2024
Stores and offices	880,210	(418,590)	461,620	939,894	(471,703)	468,191
Motor vehicles	31,377	(17,828)	13,549	36,477	(20,113)	16,364
Electronic machinery	4,644	(1,660)	2,984	4,384	(1,847)	2,537
Total	916,231	(438,078)	478,153	980,755	(493,663)	487,092

	Net book						Other	Net book
	value at	Increase	Decrease	Depreciation	Business combinations	Impairment	net	value at
(€ thousands)	12/31/2023						changes	09/30/2024
Stores and offices	461,620	101,056	(12,486)	(89,870)	9,597	-	(1,726)	468,191
Motor vehicles	13,549	10,808	(2,043)	(6,159)	150	-	59	16,364
Electronic machinery	2,984	415	(3)	(858)	-	-	(1)	2,537
Total	478,153	112,279	(14,532)	(96,887)	9,746	-	(1,667)	487,092

The increase in right of use assets acquired in the period (€112,279 thousand) is explained by the renewal of existing leases and the network expansion.

The change in "business combinations" comprises:

• for €8,857 thousand, the temporary allocation of the price paid for acquisitions made in EMEA;
• for €889 thousand, the temporary allocation of the price paid for acquisitions made in Americas.

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

7. Other non-current assets

(€ thousands)	Balance at 09/30/2024	Balance at 12/31/2023	Change
Long-term financial receivables	6,046	12,916	(6,870)
Asset Plans and other restricted amounts	1,615	1,362	253
Other non-current assets	48,263	32,557	15,706
Total	55,924	46,835	9,089

Other non-current assets amounted to €55,924 thousand at 30 September 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 nine months of 2024, credits used for offsetting amounted to €36,210 thousand and financial income, that include also the effect of actualization, amounted to €2,818 thousand. Financial expenses for discounting payables amounted to €196 thousand.

The statement of financial position at 30 September 2024 includes:

• Tax credits recognized in the Other Receivables line for €13,533 thousand and in the Other Non-Current Assets line for €16,173 thousand;
• Payables recognized in the Other Liabilities line for €17,494 thousand and in the Other Payables line for €18,918 thousand.

8. Share capital and treasury shares

At 30 September 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 reporting period 720,000 treasury shares have been purchased for a total amount of €20,258 thousand.

During the reporting period, a total of 37,500 shares were transferred as a second deferred payment for Otohub's acquisition in 2019.

A total of 887,299 treasury shares, or 0.392% of the parent's share capital, were held at 30 September 2024.

Information relating to the treasury shares held is shown below:

	No. of treasury	Average purchase price (Euro)	Total amount
	shares	FV of transferred rights (Euro)	(€ thousands)
Held at 12/31/2023	642,148	27.245	17,495
Purchases	720,000	28.136	20,258
Transfers due to exercise of performance stock grants	(437,349)	27.657	(12,096)
Transfer due to exercise of acquisition's deferred payment	(37,500)	27.657	(1,037)
Held at 09/30/2024	887,299	27.747	24,620

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)	09/30/2024	12/31/2023	Change
A Cash	166,775	193,148	(26,373)
B Cash equivalent	-	-	-
C Short term investments	857	883	(26)
D Total Cash, Cash Equivalents and Short-Term Investments (A+B+C)	167,632	194,031	(26,399)
Current financial payables (including bonds, but excluding current E portion of medium/long-term debt)	315,280	146,200	169,080
- Other financial payables and bank overdrafts	316,101	146,507	169,594
- Hedging derivatives	(821)	(307)	(514)
F Current portion of medium/long-term financial debt	318,212	294,055	24,157
- Financial accruals and deferred income	7,695	6,001	1,694
- Payables for business acquisitions	12,785	9,554	3,231
- Bank borrowings	173,508	164,978	8,530
- Lease Liability – current portion	124,224	113,522	10,702
G Current Financial Indebtedness (E+F)	633,492	440,255	193,237
H Net Current Financial Indebtedness (G-D)	465,860	246,224	219,636
I Non current financial payables	759,357	753,337	6,020
- Bank borrowings – Non current portion	370,917	362,199	8,718
- Payables for business acquisitions – Non current portion	5,725	7,229	(1,504)
- Lease Liability – Non current portion	382,715	383,909	(1,194)
J Bonds	350,000	350,000	-
- Eurobond 2020-2027	350,000	350,000	-
K Trade and other non current payables	-	-	-
L Non Current Financial Indebtedness (I+J+K)	1,109,357	1,103,337	6,020
M Total Financial Indebtedness (H+L)	1,575,217	1,349,561	225,656

Excluding lease liabilities (€506,939 thousand at 30 September 2024), net financial indebtedness amounted to €1,068,279 thousand at 30 September 2024, broken down as follows:

(€ thousands)	Balance at 09/30/2024	Balance at 12/31/2023	Change
Cash and Cash Equivalents	166,775	193,148	(26,373)
Short Term Investments	857	883	(26)
Cash, Cash Equivalents and Short Term Investments	167,632	194,031	(26,399)
Current Financial Indebtedness (excluding lease liabilities)	509,269	326,733	182,536
Net Current Financial Indebtedness (excluding lease liabilities)	341,637	132,702	208,935
Non current Financial Indebtedness (excluding lease liabilities)	726,642	719,428	7,214
Total Financial Indebtedness (excluding lease liabilities)	1,068,279	852,130	216,149

The main transactions occurred during the period are as follows:

• 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 €675 million at 30 September 2024.
• In September 2024, Crédit Agricole Italia, backed by SACE's Garanzia Futuro, financed for 50 million euros the international roll-out of Amplifon's new store format, aimed at providing consumers with an immersive and completely personalized experience through visual and digital elements integrated into an innovative and sustainable architectural design.
• 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.

Medium-Long term net financial debt, excluding lease liabilities, amounted to €726,642 thousand at 30 September 2024 (€719,428 thousand at 31 December 2023) substantially in line with 2023: the reclassification as short-term debt of the portions of long-term debt maturing in the next 12 months and of the deferred payments for acquisition was net by new subscriptions.

The short-term portion of net financial debt, excluding lease liabilities, increased by €208,935 thousand, going from €132,702 thousand at 31 December 2023 to €341,637 thousand at 30 September 2024 due primarily to hot money transactions and utilization of short-term credit lines temporary coverage of higher total debt.

More specifically, the short-term portion includes mainly other bank debt linked to hot money transactions and utilization of short-term credit lines (€316,101 thousand), the short-term portions of long-term bank loans (€173,508 thousand), interest payable on other bank

borrowings (€2,320 thousand) and the Eurobond (€2,481 thousand) and lastly, the best estimate of the deferred payments for acquisitions (€12,785 thousand).

After first nine months of 2024, as at 14 October 2024, Amplifon signed with UniCredit and Cassa Depositi e Prestiti (CDP) €200 million credit facility ESG linked, divided as follows:

€100 million from UniCredit to support the Group's development initiatives and €100 million from CDP which co-financed Amplifon's investments in innovation in Italy, as already done by the loan signed with European Investment Bank (EIB) mentioned above.

In this way, a similar reduction in the use of short-term lines was allowed and a reduction of the net short-term debt to approximately €140 million, aligned with the comparative period.

The Group has unutilized, irrevocable lines of credit of €450 million which, in addition to the unutilized portion of the EIB loan of €225 million, the €69 million in available uncommitted credit lines and the cash generation expected for 2024, ensure enough liquidity to satisfy current obligations and support business needs.

Bank loans, and the Eurobond 2020-2027 are included in the statement of financial position as follows:

a. under the item "medium/long-term financial liabilities":

(€ thousands)	Balance at 09/30/2024
Eurobond 2020-2027	350,000
Loan with the European Investment Bank	125,000
Other medium/long-term debt	245,917
Fees on Eurobond 2020-2027 and bank loans	(1,168)
Medium/long-term financial liabilities	719,749

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

(€ thousands)	Balance at 09/30/2024
Bank overdraft and other short-term debt (including current portion of other long-term debt)	489,452
Other financial payables	7,695
Fees on bank loans	(953)
Short-term financial liabilities	496,194

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 09/30/2024	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	245,917	287,199	(41,282)
Fees on Eurobond 2020-2027 and bank loans	(1,168)	(1,932)	764
Total long-term financial liabilities	719,749	710,267	9,482
Short term debt	496,194	316,413	179,781
- of which debts for account overdrafts and other short-term liabilities	315,128	146,299	168,829
- of which current portion of short-term bank loans	173,508	164,978	8,530
- of which for bank loans	(953)	(1,075)	121
Total short-term financial liabilities	496,194	316,413	179,781
Total financial liabilities	1,215,943	1,026,679	189,263

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)	Outstan ding debt (€/000)	Nominal interest 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	(***)
Other bank	04/06/20	Amplifon S.p.A.	Amortizing	04/06/25	50,000	14,285	5.141%	14,285	0.880%
	04/28/20	Amplifon S.p.A.	Amortizing	04/28/25	50,000	37,500	4.855%
	04/23/20	Amplifon S.p.A.	Amortizing	06/30/25	35,000	16,625	4.572%	16,625	0.785%
	08/03/20	Amplifon S.p.A.	Amortizing	06/30/25	10,000	1,534	4.850%
	12/23/21	Amplifon S.p.A.	Amortizing	12/23/26	210,000	159,600	4.472%	159,600	0.963%
loans	04/07/20	Amplifon S.p.A.	Amortizing	04/07/25	150,000	60,000	4.884%	40,000	1.05%
	04/29/20	Amplifon S.p.A.	Amortizing	04/29/25	78,000	19,500	5.325%	13,650	1.414%
	12/29/23	Amplifon S.p.A.	RCF (no cleandown)	09/30/26	60,000	60,000	4.900%
	09/30/24	Amplifon S.p.A.	Amortizing	09/30/26	50,000	50,000	4.319%	50,000	3.226%
Total					818,000	544,044		294,160

(*) 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, the rate applied is 3.902% and it's fixed to the end of loan.

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 million. - Irrevocable credit lines with top-tier	≤ 2.85	≤ 1.65	-	≤ 3.26 (Leverage Ratio) ≤ 2.20 (Net Worth
banking institutions of €110 million.				Ratio)
- €14.3 million bank loan expiring in 2025;	≤ 2.85	-	> 4.90	≤ 3.26 (Leverage Ratio)
-Medium/long-term bilateral loans with top-tier banking institutions of €96.1 million;	≤ 2.85	≤ 1.65	> 4.90	≤ 3.26 (Leverage Ratio)
-Irrevocable lines of credit with premier banks amounted to €40 million.				≤ 2.20 (Net Worth Ratio)

The loan negotiated at the end of 2021, which replaced the syndicated loan used for the GAES acquisition with a residual amount of €159.6 million, the new €300 million revolving facility negotiated at the end of May 2023, the loan of €50 million negotiated at the end of September 2024 (which are allsustainability-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 September 2024 these ratios were as follows

	Value as at
	09/30/2024
Net financial indebtedness excluding lease liabilities/Group net equity (Net Worth Ratio)	0.96
Net financial position excluding lease liabilities/EBITDA for the last four quarters (Leverage Ratio)	1.78
EBITDA for the last 4 quarters/Net financial expenses (Interest Cover)	17.20

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

(€ thousands)	Value as at 09/30/2024
Group EBITDA first nine months 2024	407,813
EBITDA October-December 2023	154,263
Fair value of stock grant assignment	18,893
EBITDA normalized (from acquisitions and disposals)	11,027
Acquisitions and non-recurring costs	6,611
EBITDA for the covenant calculation	598,607

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 €23,959 thousand, slightly higher than the €20,647 thousand recorded at 31 December 2023.

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

(€ thousands)	Balance at 09/30/2024	Balance at 12/31/2023	Change
Product warranty provision	1,268	1,191	77
Provision on contract risks	3,763	3,420	343
Agents' leaving indemnities	14,209	13,092	1,117
Other reserves for risks and charges	2,571	1,676	895
Total Long-term provision for risks and charges	21,811	19,379	2,432
Product warranty provision	197	205	(8)
Other reserves for risks and charges	1,951	1,063	888
Total Short-term provision for risks and charges	2,148	1,268	880
Total provision for risks and charges	23,959	20,647	3,312

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)	Balance at 09/30/2024	Balance at 12/31/2023	Change
Short term lease liabilities	124,224	113,523	10,701
Long term lease liabilities	382,715	383,909	(1,195)
Total lease liabilities	506,939	497,431	9,507

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

(€ thousands)	First Nine month of 2024
Interest charges on leased assets	(13,786)
Right-of-use depreciation	(96,887)
Costs for short-term leases and leases for low value assets	(14,856)

13. Revenues from sales and services

(€ thousands)	First Nine month of 2024	First nine month of 2023	Change
Revenues from sale of products	1,521,997	1,430,065	91,932
Revenues from services	222,836	215,000	7,836
Total revenues from sales and services	1,744,833	1,645,065	99,768
Goods and services provided at a point in time	1,521,997	1,430,065	91,932
Goods and services provided over time	222,836	215,000	7,836
Total revenues from sales and services	1,744,833	1,645,065	99,768

Consolidated revenues from sales and services amounted to €1,744,833 thousand in the first nine months of 2024, an increase of €99,768 thousand (+6.1%) compared to the same period of the prior year.

The increase compared to the first nine month of 2023 is attributable for €71,177 thousand to organic growth (+4.3%), acquisitions for €59,903 thousand (+3.7%) and negative exchange differences for €31,312 thousand (-1.9%).

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 €1,342,180 thousand in the first nine months of 2024 (€1,277,988 thousand in the first nine months of 2023), an increase of €64,192 thousand (+5%).

"Amortization, depreciation and impairment" amounted to €220,274 thousand at 30 September 2024 higher than the €192,916 thousand recorded in the first nine months of 2023.

"Financial income, expenses and value adjustments to financial assets" came to €43,597 thousand in the first nine months of 2024 (€36,893 thousand in the first nine months of 2023).

The change in the reporting period of €6,704 thousand is explained by the increase in interest payable linked to both higher average debt (that includes also the IFRS 16 accounting of higher lease liability stemming from the network expansion) as well as increased interest rates compared to first nine month of 2023 were partially offset by lower exchange differences and financial income stemming from the recognition of tax credits for the deferred payment of acquisitions contained in and regulated by Articles 119 and 121 of Legislative Decree n. 34/2020 ("Decreto Rilancio").

Current and deferred tax amounted to €39,627 thousand in the first nine months of 2024, €292 thousand lower than in the first nine months of 2023 (€39,335 thousand).

The tax rate was 27.5% in the reporting period versus 27.6% at 30 September 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%
Maturiy (in years)	3
Maturity date	March 31, 2027
Expected Dividend Yield	0.87%

The figurative cost of this grant cycle recorded in the income statement as of September 30, 2024 amounts to €1,265 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	0.00
Volatility (3 years)	33.51%	33.51%
Risk-free interest rate	3.038%	3.038%
Maturity (in years)	3	3
Maturity date	March 31, 2027	March 31, 2027
Expected dividend yield	0.87%	0.87%

16. Non-recurring significant events

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

(€ thousands)		First nine months of 2024	First nine month of 2023
Operating costs	Costs incurred to define and implement amendments to the Articles of Association including the enhanced voting rights	(1,678)	-
	Costs related to second phase of the GAES integration	(1,478)	(1,433)
	Notional cost of the Amplifon shares assigned by the shareholder Ampliter to the CEO	(1,138)	(11,614)
	Costs related to Bay Audio integration	(127)	(174)
EBITDA		(4,421)	(13,221)
Profit (loss) before tax		(4,421)	(13,221)
	Impact of the above items on the tax burden for the period	1,223	3,844
Total net profit (loss)		(3,198)	(9,377)

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 nine months 2024	First nine months 2023
Net profit (loss) attribuable to ordinary shareholders (€ thousand)	104,181	103,438
Average number of shares outstanding in the period	225,934,134	224,054,021
Average number per share (€ per share)	0.46111	0.46167

Diluted earnings (loss) per share

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

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

Weighted average diluted number of shares outstanding	First nine months 2024	First nine months 2023
Average number of shares outstanding in the period	225,934,134	224,054,021
Weighted average of potential and diluting ordinary shares	1,705,974	1,766,662
Weighted average of shares potentially subject to options in the period	227,640,108	225,820,683

The diluted earnings per share were determined as follows:

Diluted earnings per share	First nine months 2024	First nine months 2023
Net profit attributable to ordinary shareholders (€ thousand)	104,181	103,438
Average number of shares outstanding in the period	227,640,108	225,820,683
Average diluted earnings per share (€)	0.45766	0.45805

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. (42.04% of share capital and 59.09% 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.

		09/30/2024		First Nine months 2024
(€ thousand)	Trade receivables	Trade payables	Other receivables	Revenues for sales and services	Operating (costs)/revenues	Interest income and expense
Amplifin S.r.l.	8	(5)	-	-	15	-
Total – Parent company	8	(5)	-	-	15	-
Comfoor BV (The Netherlands)	38	2,036	-	40	(1,151)	-
Ruti Levinson Institute Ltd (Israel)	20	-	-	-	-	-
Afik - Test Diagnosis & Hearing Aids Ltd (Israel)	23	-	-	-	-	-
Total – Other related parties	81	2,036		40	(1,151)	-
Total related parties	89	2,031		40	(1,136)	-
Total as per financial statements	220,673	316,965	136,610	1,744,833	(1,342,181)	(26,190)
% of financial statements total	0.04%	0.64%	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.

Services costs charged to Amplifon S.p.A. as a result of the contracts with Amplifin S.r.l. include for €1,698 thousand the rental fees related to the lease agreement concluded for the property, located in Milan, via Ripamonti n. 133, legal and administrative headquarters of Amplifon S.p.A.

The lease costsfor the Milan headquarters (leased to Amplifon by the parent company Amplifin) are no longer shown as operating costs and trade payables but are recognized under right-of-

use depreciation for €1,367 thousand, interest on leases for €348 thousand, lease liabilities of € 10,728 thousand and right-of-use asset of €9,571 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 September 2024		2023	30 September 2023
	Average exchange rate	As at 30 September	As at 31 December	Average exchange rate	As at 30 September
Panamanian balboa	1.0871	1.1196	1.1050	1.0833	1.0594
Australian dollar	1.6415	1.6166	1.6263	1.6205	1.6339
Canadian dollar	1.4787	1.5133	1.4642	1.4576	1.4227
New Zealand dollar	1.7832	1.7616	1.7504	1.7547	1.7575
Singapore dollar	1.4539	1.4342	1.4591	1.4523	1.4443
US dollar	1.0871	1.1196	1.1050	1.0833	1.0594
Hungarian florin	391.2500	396.8800	382.80	381.7600	389.5000
Swiss franc	0.9581	0.9439	0.9260	0.9774	0.9669
Egyptian lira	47.7407	54.1396	34.1589	33.1383	32.7298
New Israeli shekel	4.0239	4.1491	3.9993	3.9474	4.0472
Argentine peso (*)	1082.8093	1082.8093	892.9239	370.8149	370.8149
Chilean peso	1018.4400	1006.9300	977.07	890.0800	959.8000
Colombian peso	4328.4100	4676.6100	4267.52	4772.1400	4312.3900
Mexican peso	19.2951	21.9842	18.7231	19.2804	18.5030
Chinese renminbi	7.8248	7.8511	7.8509	5.4245	5.3065
Indian rupee	90.6822	93.8130	91.9045	7.6235	7.7352
British pound	0.8514	0.8354	0.8691	89.2314	88.0165
Polish zloty	4.3053	4.2788	4.3395	0.8707	0.8646
Uruguayan peso	42.8203	46.6281	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 September 2024 is 964.6541 and 253.2357 at 30 September 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 September 30th, 2024 (*)

(€ thousands)	EMEA	AMERICAS	APAC	ELIM.	CONSOLIDATED
ASSETS
Non-current assets
Goodwill	1,028,294	294,503	619,534	-	1,942,331
Intangible fixed assets with finite useful life	306,542	60,550	61,825	-	428,917
Property, plant, and equipment	163,879	37,478	42,144	-	243,501
Right-of-use assets	377,716	45,522	63,854	-	487,092
Equity-accounted investments	2,724	-	-	-	2,724
Hedging instruments	5,753	-	-	-	5,753
Deferred tax assets	59,258	11,040	12,458	-	82,756
Deferred contract costs	10,313	1,256	16	-	11,585
Other assets	46,141	7,780	2,003	-	55,924
Total non-current assets					3,260,583
Current assets
Inventories	69,038	14,347	9,483	-	92,868
Receivables	328,601	84,345	28,223	(83,886)	357,283
Deferred contract costs	6,036	950	170	-	7,156
Hedging instruments	2,040	-	-	-	2,040
Other financial assets					875
Cash and cash equivalents					166,775
Total current assets					626,997
TOTAL ASSETS					3,887,580
LIABILITIES
Net Equity					1,118,265
Non-current liabilities
Medium/long-term financial liabilities					719,749
Lease liabilities	304,773	37,164	40,778	-	382,715
Provisions for risks and charges	19,825	1,139	847	-	21,811
Liabilities for employees' benefits	12,037	5	776	-	12,818
Deferred tax liabilities	66,202	22,272	14,017	-	102,491
Payables for business acquisitions	2,172	3,553	-	-	5,725
Contract liabilities	146,343	14,151	2,418	-	162,912
Other long-term liabilities	39,502	449	47	-	39,998
Total non-current liabilities					1,448,219
Current liabilities
Trade payables	282,495	75,884	42,277	(83,691)	316,965
Payables for business acquisitions	6,318	6,193	274	-	12,785
Contract liabilities	95,264	16,626	8,064	-	119,954
Other payables and tax payables	186,007	26,632	31,865	(195)	244,309
Hedging instruments	341	-	-	-	341
Provisions for risks and charges	1,544	604	-	-	2,148
Liabilities for employees' benefits	1,097	433	2,646	-	4,176
Short-term financial liabilities					496,194
Lease liabilities	88,718	12,326	23,180	-	124,224
Total current liabilities					1,321,096
Total liabilities					3,887,580

(*) 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 - September 30, 2024 (*)

(€ thousands)	EMEA	AMERICAS	APAC	CORPORATE	ELIM.	CONSOLIDATED
Revenues from sales and services	1,101,713	366,417	276,466	237	-	1,744,833
Operating costs	(797,387)	(277,727)	(203,190)	(63,876)	-	(1,342,180)
Other income and costs	3,070	2,312	(326)	104	-	5,160
Gross operating profit by segment (EBITDA)	307,396	91,002	72,950	(63,535)	-	407,813
Amortization, depreciation and impairment
Intangible assets amortization	(35,450)	(10,658)	(11,726)	(19,202)	-	(77,036)
Property, plant, and equipment depreciation	(26,905)	(5,832)	(11,763)	(1,163)	-	(45,663)
Right-of-use depreciation	(62,504)	(10,528)	(22,079)	(1,776)	-	(96,887)
Impairment losses and reversals of non current assets	(648)	-	(40)	-	-	(688)
	(125,507)	(27,018)	(45,608)	(22,141)	-	(220,274)
Operating result by segment	181,889	63,984	27,342	(85,676)	-	187,539
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						(26,190)
Interest expenses on lease liabilities						(13,786)
Other financial income and expenses						(1,658)
Exchange gains and losses, and inflation accounting						(2,759)
Gain (loss) on assets accounted at fair value						513
						(43,597)
Net profit (loss) before tax						143,942
Current and deferred income tax
Current income tax						(38,443)
Deferred tax						(1,184)
						(39,627)
Net profit (loss)						104,315
Net profit (loss) attributable to Minority interests						134
Net profit (loss) attributable to the Group						104,181

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

Income statement - September 30, 2023 (*)

(€ thousands)	EMEA	AMERICAS	APAC	CORPORATE	ELIM.	CONSOLIDATED
Revenues from sales and services	1,067,232	321,984	255,511	338	-	1,645,065
Operating costs (**)	(771,871)	(239,671)	(189,209)	(77,237)	-	(1,277,988)
Other income and costs (**)	3,473	1,636	(10)	409	-	5,508
Gross operating profit by segment (EBITDA)	298,834	83,949	66,292	(76,490)	-	372,585
Amortization, depreciation and impairment
Intangible assets amortization	(30,732)	(7,322)	(10,948)	(16,317)	-	(65,319)
Property, plant, and equipment depreciation	(24,581)	(4,727)	(8,110)	(2,068)	-	(39,486)
Right-of-use depreciation	(58,042)	(8,675)	(19,491)	(1,700)	-	(87,908)
Impairment losses and reversals of non current assets	(189)	(5)	(9)	-	-	(203)
	(113,544)	(20,729)	(38,558)	(20,085)	-	(192,916)
Operating result by segment	185,290	63,220	27,734	(96,575)	-	179,669
adjustments to financial assets Group's share of the result of associated companies valued at equity and gains/losses on disposals of equity investments	210	-	-	-	-	210
Interest income and expenses						(19,036)
Interest expenses on lease liabilities						(10,846)
Other financial income and expenses						(3,528)
Exchange gains and losses, and inflation accounting						(4,438)
Gain (loss) on assets accounted at fair value						745
						(36,893)
Net profit (loss) before tax						142,776
Current and deferred income tax
Current income tax						(46,218)
Deferred tax						6,883
						(39,335)
Net profit (loss)						103,441
Net profit (loss) attributable to Minority interests						3
Net profit (loss) attributable to the Group						103,438

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

(**) 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 September 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. 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 21st October 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
Annual improvements volume 11 (issued on 18 July 2024)	Periods beginning on or after 1 Jan '26
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 document Annual improvement. Volume 11 lists improvements limited to changes that either clarify the wording in an IFRS Accounting Standard, or correct relatively minor unintended consequences, oversights or conflicts between requirements of the Accounting Standards. In particular, the amendments relate to IFRS1, IFRS7, IFRS9, IFRS10 and IAS7.

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

As at 14 October 2024, Amplifon signed with UniCredit and Cassa Depositi e Prestiti (CDP) €200 million credit facility ESG linked with a 5-year term, divided as follows: €100 million from UniCredit to support the Group's development initiatives and €100 million from CDP which co-financed Amplifon's investments in innovation in Italy

After 30 September 2024, the Amplifon Group continued its external growth with the acquisition of 15 stores in China, 5 in France and 3 in the United States.

Milan, October 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 September 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 09/30/2024
Amplifon Rete	Milano (Italy)	I	EUR	19,250	2.6%
Amplifon Italia S.p.A.	Milano (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%
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%
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%
Belletente SAS	Saint-Étienne (France)	I	EUR	6,000	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2024
Audiloire SAS	Tours (France)	I	EUR	1,000	100.0%
L'Oreillette Du Mans SAS	Le Mans (France)	I	EUR	10,800	100.0%
Aurissimans SAS	Savigné l'Eveque (France)	I	EUR	6,000	100.0%
L'Effet L'Arsene	Tours (France)	I	EUR	1,000	100.0%
François Audition	Ballan-Mire (France)	I	EUR	3,000	100.0%
Audition Freres François	Tours (France)	I	EUR	6,000	100.0%
FFF Audio	Chambray-Lès-Tours (France)	I	EUR	6,000	100.0%
Vouvray Audition	Vouvray (France)	I	EUR	6,000	100.0%
Amplifon Ibérica, S.A.U.	Barcelona (Spagna)	D	EUR	26,578,809	100.0%
Microson S.A.	Barcelona (Spagna)	D	EUR	61,752	100.0%
Amplifon LATAM Holding, S.L.U.	Barcelona (Spagna)	I	EUR	3,000	100.0%
Audifonos factory, S.L.	Malaga (Spain)	I	EUR	3,000	100.0%
Audifonos sevillaudio, S.L.	Malaga (Spain)	I	EUR	10,000	100.0%
Audio diagnostics, S.L.	Malaga (Spain)	I	EUR	30,000	100.0%
Audio elite sur, S.L.	Malaga (Spain)	I	EUR	20,000	100.0%
Audiolmenes, S.L.	Malaga (Spain)	I	EUR	3,000	100.0%
Corbaudio centros auditivos, S.L.	Cordoba (Spain)	I	EUR	3,000	100.0%
Talayoaudio, S.L.U.	Marbella (Spain)	I	EUR	3,000	100.0%
Tecnoaudifonos, S.L.U. (*)	Malaga (Spain)	I	EUR	6,000	100.0%
Audio nevada, S.L.	Malaga (Spain)	I	EUR	10,000	100.0%
Audioliva, S.L.	Jaen (Spain)	I	EUR	3,000	100.0%
Centro audio granada, S.L.	Granada (Spain)	I	EUR	36,000	100.0%
Futurooigo, S.L.	Malaga (Spain)	I	EUR	3,000	100.0%
Centro auditivo sent, S.L.	Granada (Spain)	I	EUR	3,000	100.0%
Esteponaudio, S.L.	Estepona (Spain)	I	EUR	3,000	100.0%
Recimetal cordoba, S.L. (*)	Marbella (Spain)	I	EUR	23,095	100.0%
Soluciones auditivas de la subbetica, S.L.	Rute (Spain)	I	EUR	3,000	100.0%
Soluciones auditivas y visuales gonzales, S.L.	Malaga (Spain)	I	EUR	29,000	100.0%
Soluciones profesionales de audiologia, S.L.	Malaga (Spain)	I	EUR	23,408	100.0%
Sonic technology españa, S.L.	Fuengirola (Spain)	I	EUR	9,015	100.0%
Sontec centros auditivos, S.L.	Mijas (Spain)	I	EUR	6,000	100.0%
Amplifon Portugal SA	Lisboa (Portogallo)	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 (The Netherlands)	I	EUR	18,000	100.0%
Amplifon Belgium N.V.	Bruxelles (Belgium)	D	EUR	495,800	100.0%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2024
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%
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%
Amplifon Poland Sp. z o.o.	Lodz (Poland)	D	PLN	3,348,280	100.0%
Amplifon UK Ltd	Manchester (United Kingdom)	D	GBP	130,951,168	100.0%
Amplifon Ltd	Manchester (United Kingdom)	I	GBP	1,800,000	100.0%
Ultra Finance Ltd	Manchester (United Kingdom)	I	GBP	75	100.0%
Amplifon Cell	Ta' Xbiex (Malta)	D	EUR	2,500,125	100.0%
Medtechnica Ortophone Ltd (**)	Tel Aviv (Israel)	D	ILS	1,100	90.0%
Amplifon Middle East SAE	Cairo (Egypt)	D	EGP	3,000,000	51.0%
Miracle Ear Inc.	St. Paul (United States)	I	USD	5	100.0%
Elite Hearing, LLC	Minneapolis (United States)	I	USD	1,000	100.0%
Amplifon 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 (United States)	I	USD	-	100.0%
Miracle Ear Canada Ltd.	Vancouver (Canada)	I	CAD	169,601,200	100.0%
2829663 Ontario Inc (*)	Milton (Canada)	I	CAD	-	100.0%
Raindrop Hearing Clinic Inc. (*)	Toronto (Canada)	I	CAD	-	100.0%
The Hearing Clinic (*)	Scarborough (Canada)	I	CAD	-	100.0%
Lisa Reid Audiology Hearing Centres (*)	Manitoba (Canada)	I	CAD	-	100.0%
Great to Hear, Inc. (*)	Manitoba (Canada)	I	CAD	-	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%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2024
Rupert Hearing Ltd (*)	Prince Rupert (Canada)	I	CAD	-	100.0%
Pure Audiology & Hearing Aid Services, Inc. (*)	Oakville (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%
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 (in liquidazione)	Brisbane (Australia)	D	AUD	-	100.0%
Otohub Australasia Pty Ltd	Brisbane (Australia)	D	AUD	10	100.0%
Attune Hearing Pty Ltd	Brisbane (Australia)	D	AUD	14,771,093	100.0%
Attune Workplace Hearing Pty Ltd	Brisbane (Australia)	I	AUD	1	100.0%
Ear Deals Pty Ltd	Brisbane (Australia)	I	AUD	300,000	100.0%
Bay Audio Pty Ltd	Sydney (Australia)	D	AUD	10,000	100.0%
Amplifon Asia Pacific Pte Limited	Singapore (Singapour)	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	2,143,685	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	608,750,000	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%

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2024
Fuzhou Tingan Medical Device Co., Ltd	Fuzhou (China)	I	CNY	20,000,000	100.0%
Chongqing Amplifon Hearing Aids Co., Ltd.	Chongqing (China)	I	CNY	10,000,000	100.0%
Sichuan Amplifon Hearing Aid Co., Ltd.	Chengdu (China)	I	CNY	24,000,000	100.0%
Xi'an Ansheng Medical Equipment Co., Ltd.	Xi'an (China)	I	CNY	16,000,000	100.0%
Ningxia Listening Shunan Medical Equipment Co., Ltd	Yinchuan (China)	I	CNY	16,000,000	100.0%
Yunnan Amplifon Hearing Aid Co., Ltd.	Kunming (China)	I	CNY	16,000,000	100.0%
Shanxi Amplifon Hearing Aid Business Co., Ltd	Xi'an (China)	I	CNY	18,000,000	100.0%
Anhui Amplifon Hearing Aid business Co., Ltd.	Ma'anshan (China)	I	CNY	30,000,000	100.0%
AnLaiSheng (Inner Mongolia) Medical Equipment Co.Ltd	Hohhot (China)	I	CNY	47,000,000	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%. (**) Dormant companies

Companies valued using the equity method:

Company name	Head office	Direct/Indirect ownership	Currency	Share Capital	% held as at 09/30/2024
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	20.0%
Afik - Test Diagnosis & Hearing Aids Ltd (**)	Jerusalem (Israel)	I	ILS	100	20.0%
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 September 2024.

We also certify that the condensed interim consolidated financial statements at 30 September 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, October 30th, 2024

CEO Executive Responsible for Corporate Accounting Information

Enrico Vita Gabriele Galli