Amplifon — Investor Presentation 2021

Sep 13, 2021

Amplifon Capital Markets Day 2021

Innovating around the customer to fuel profitable growth

Milan, 13th September, 2021

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Statement

In compliance with Article 154 bis of the "Uniform Financial Services Act" (Legislative Decree 58/1998), the Financial Reporting Officer, Gabriele Galli, declares that the accounting information reported in this presentation corresponds to the underlying documentary reports, books of account and accounting entries.

Management team with you today

Giuseppe Vironda Chief Marketing Officer

Alessandro Bonacina Executive Vice President Americas

Anthea Muir Executive Vice President APAC

Gabriele Galli Chief Financial Officer

Agenda

Welcome & agenda F. Rambaudi | IR & Sustainability Sr Director

A. Muir | Executive Vice President APAC Connected from Singapore Australia & China: two compelling growth opportunities

Our strategic journey of sustainable profitable growth E. Vita | Chief Executive Officer

G. Galli | Chief Financial Officer

A unique and unmatchable customer proposition G. Vironda | Chief Marketing Officer

Riding the wave of growth in the US A. Bonacina | Executive Vice President Americas

Connected from Minneapolis

Closing remarks E. Vita | Chief Executive Officer

Our strategy in numbers

Q&A Session

Our strategic journey of sustainable profitable growth

Enrico Vita

Chief Executive Officer

Amplifon today: stronger than ever

Note: Key data above excludes Elite in light of announced wind-down (application of IFRS 5 for Discontinued Operations) as well as Bay Audio in light of closing of the transaction currently expected in Q4 2021

Committed to the pillars of our simple and focused strategy

A customer-centered strategy able to deliver long-term growth

Surfing the next waves of growth

Remarkable growth opportunities still to be exploited in many geographies

2023 Key financial targets

Accelerating on our ambitions while increasing investments to strengthen platform for long-term growth

1. 2021 Guidance and 2023 Target assume no further material impact from Covid-19 pandemic

2. 2021 revenue guidance was provided on July 29th 2021 and excludes Elite contribution for the full year in light of the application of IFRS 5 for Discontinued Operations

3. Bay Audio is excluded from Amplifon's consolidated 2021 guidance as the closing of the deal is currently expected in Q4 2021

Note: Main FX assumptions for 2023 Target: €/USD at 1.20; €/AUD at 1.60

Our strategy for a more inclusive and sustainable future

Listening Ahead: a holistic approach with concrete and measurable targets

Product & service stewardship

• Raise awareness and accessibility to hearing
• Promote innovative solutions

Community impact

• Foster social inclusion via Amplifon Foundations
• Raise consciousness on hearing well-being & responsible listening

People empowerment

• Attract, develop and retain the best talents
• Champion inclusive workplace & equal opportunities

Ethical behavior

• Promote a responsible management of the value chain
• Reduce environmental impact of our activities

A unique and unmatchable customer proposition

Giuseppe Vironda Chief Marketing Officer

A unique and unmatchable customer proposition

The sound of emotions

The Global Brand platform in hearing care retail

#1 Top-of-Mind brand in 5 out of 8 core markets1 On the podium in the other 3

Glocal strategy

Hero-formats with local adaptation

Brand investment acceleration

Boost in USA, Germany and Australia > €200m threshold in 2023

Amplifon.com: the leading digital address in hearing care

1. Core markets: ITA, ES, FR, DE, NL, US, AU, NZ Source: SimilarWeb, Organic traffic as sum of organic and direct visits, ranking based on players active in the hearing care retail industry

Outstanding digital marketing performance

Top Digital Talents

Fully scaled Digital Center of Excellence

Top talents from agencies and digital-native companies, growth-hacking culture

Internal content factory

Earpros.com: unbranded platform to reach all audiences

7 markets live Scaling to 10 by 2022

+5.4 million Incremental reach on target 55+ in H1 2021 vs H1 20201

4 years younger 65 average age vs 69 of Amplifon website2

1. Incremental reach based on digital social channel, unduplicated data 2. Age based on data collected by people tested in store in US and IT

Superior customer knowledge on a global scale

Personalized lifecycle management unleashing growth

Amplifon Product Experience keeps growing successfully

Global scale-up	Leading App
~45% on total sales	~17% and up to App penetration at 40% in selected markets
~85% penetration on addressable markets	iOS USERS 4.4
10 active countries 11 countries by 2021	Amplifon app 2.6 Competitors' app (avg)
Full footprint by 2023	ANDROID USERS
+2-3% ASP increase	4.0 Amplifon app
	2.6 Competitors' app (avg)

Ampli-care

Ampli-care: reshaping the audiological care experience

An omni-channel, omni-persona experience enhanced through data, technology and empathy

Ampli-care: reshaping the audiological care experience

An omni-channel, omni-persona experience enhanced through data, technology and empathy

Ampli-care: reshaping the audiological care experience

An omni-channel, omni-persona experience enhanced through data, technology and empathy

Store Audiologist + 24/7 expert remote support and monitoring

Caregiver and ENT active involvement with dedicated digital profiles

A unique and unmatchable customer proposition

Riding the wave of growth in the US

Alessandro Bonacina

Executive Vice President Americas

US: a structurally growing market

Note: all market data in value and refers to private market only (excludes VA segment)

OTC hearing aids: a consumer driven perspective

Two different consumer segments, with different needs: one can possibly be served by OTC, if safe and effective

OTC hearing aids could possibly expand the market, serving do- it -yourself, with milder hearing loss consumer segment, if safe & effective, and if addressing key consumer barrier

Source: Amplifon based on WHO, MarTrack10 and other industry statistics

We built a solid base to win

We transformed our business model in the US to focus on the two fastest growing segments

Creating the undisputed leader in the US

2021: a new strategy to change pace and capture more value than ever

Miracle-Ear: the leading US brand driving hearing care standards

#1 Brand + amazing CX = Unmatchable customer proposition

Miracle-Ear: scale Direct Retail to deliver superior proposition to end-customer

Accelerating revenue growth and capturing a larger share of the value chain

Amplifon HHC: riding the wave of US' fastest growing segment

~€1 billion Medicare Advantage segment representing the largest opportunity

Amplifon HHC: ready to capture the whole managed care potential

A unique value proposition for health plans, retailers and consumers

From only commercial to coverage of all segments

Anthea Muir Executive Vice President APAC Australia & China: two compelling growth opportunities

Australia: a growing and highly attractive market

Granting pensioners support for hearing aids & wide range of services

We built the ideal platform to offer the highest quality of hearing care

Three perfectly complementary retail models to grasp all market potential

#1 player in Australia with ~350 points of sale

Creating another Company stronghold

Material growth opportunity for each retail brand

Lead growth in the private market

• Leverage the market leading customer value proposition including Amplifon 360 and APE
• Strong marketing investments (TV & digital)

Lead growth in the private market

• Opportunity to increase current asset utilization
• Potential expansion to other Australian territories

Leverage medical model for expansion

• Leverage medical relationships
• Further expand services
• Potential expansion within Australian states

China: the fastest growing market with huge untapped potential

1. Refers to disabling hearing loss (>40dB) 2. Amplifon estimates

Creating the first national retailer

Strong investments in network, brand, quality and people to win in the fastest growing global market

Largest network	Unique customer proposition: Best CX + #1 Brand		Best people
Build the largest nationwide covering mega-cities network via a balanced mix of greenfield & inorganic growth strategy	Offer the best customer experience and the highest service standards, leveraging Amplifon's proprietary know-how and tools customized for the Chinese market	Be Top-of-Mind brand driven by strong marketing investments in digital & CRM	Leverage Amplifon's training know-how and skills, tools Greater China HQ opened in Shanghai

Accelerating on our network expansion

A balanced mix of greenfield and inorganic growth strategy

• From ~35 to ~55 PoS in Beijing, Tianjing & Hebei
• Rebranding to Amplifon in 2019
• Implemented best-in-class marketing and in-store practices in 2020

2018 – Beijing JV July 2021 – Sound Bridge JV 2022 onwards - Full bore expansion Q3 Shanghai Greenfield entry

• Sound Bridge JV
• - JV 51% owned by Amplifon
• - 45 high-quality PoS primarily in Zhejiang, Fujian, Henan & Jiangxi
• Reaching ~100 PoS and 2021E turnover run rate of ~€15 million with double-digit EBITDA margin

• Greenfield entry and Greater China HQ in Shanghai

• Expansion in major cities around current hubs

• JV / M&A of local partners in new areas
• - Active pipeline of further targets

China is expected to be > €1 billion market by 2024 and #3 largest market worldwide by 2030

Our strategy in numbers

Gabriele Galli Chief Financial Officer

Amplifon priorities for superior shareholders' returns

Revenue growth fuelled by strong organic growth and M&A

Organic growth

• Strong market rebound in 2021 after Covid outbreak and back to historical growth rates thereafter
• Market share gains thanks to unique and unmatchable customer value proposition fostered by superior investments
• Growth balanced across Regions

M&A

• Acquisition strategy in selected core countries
• ‒ Germany & France
• ‒ US
• ‒ China
• Large M&A part of Amplifon's DNA, not included in the current Plan

Delivering high-single digit revenue CAGR 2021-20231 for Amplifon2 from 2021 guidance and additional ~€100m sales contribution from Bay Audio at 2023

Profitability driven by productivity and scale while strongly investing for future growth

Productivity

• Key processes optimization leveraging Covid-19 learnings
• Front and back-end labour
• Marketing
• SG&A
• Global direct and indirect purchasing

Synergies from GAES integration

Global and local scale

Profitability drivers Investments to fuel future growth

People

• Attracting, developing & retaining talents
• Winning workplace

Marketing

Investments growing in line with revenues whilst delivering higher ROI

Corporate

• Global Centers of Excellence
• Strategic corporate projects

Delivering an EBITDA margin of ≥ 25.5% in 2023 after sizeable step-up of 2021 guidance

Continued steady EPS growth

D&A

Ratio on revenues in line to 2019, even after strong investments and M&A activity (including PPA for Bay Audio) increasing absolute D&A value

Stable as % on revenues

Financial expenses

• < 1.5% average cost of debt with 3.5 years average maturity thanks to 2020 successful refinancing activity
• ~ €400 million financial headroom ensuring all required flexibility to seize all potential opportunities

~ €30 million1 per year

Taxes

Diversified PBT base and planned initiatives across the Group balancing effects of potential US tax reform

In line with recent years

Sustained cash flow generation and solid balance sheet

• Continued strong cash conversion
• Strict management of NWC following strong 2020 improvement

> €1 billion Cumulated 2021-23

Capex

• Innovation
• Investments for digital transformation and IT
• Network expansion and upgrade
• Incremental Capex plan, even after higher purchasing efficiencies

> €300 million Cumulated 2021-23

Cash - out for M&A

• Continued sustained pace of acquisitions in selected core markets
• France & Germany
• US
• China
• Large M&A part of Amplifon's DNA, not included in the current Plan

~€300 million Cumulated 2021-231

Strong Operating Cash Flow sustaining Capex, M&A and Shareholders' returns while allowing a rapid deleverage at around 1.2x by 2023

2023 Key financial targets

Accelerating on our ambitions while increasing investments to strengthen platform for long-term growth

1. 2021 Guidance and 2023 Target assume no further material impact from Covid-19 pandemic

2. 2021 revenue guidance was provided on July 29th 2021 and excludes Elite contribution for the full year in light of the application of IFRS 5 for Discontinued Operations 3. Bay Audio is excluded from Amplifon's consolidated 2021 guidance as the closing of the deal is currently expected in Q4 2021 Note: Main FX assumptions for 2023 Target: €/USD at 1.20; €/AUD at 1.60

Closing remarks

Enrico Vita Chief Executive Officer

We look forward with strong confidence and excitement as we continue our strategic journey of sustainable profitable growth

Q&A Session

Thank you