Amplifon S p A : Presentazione risultati H1 2021

H1 2021 Results

M i l a n , J u l y 2 9 t h , 2 0 2 1

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Income statement data reported herein

In light of the relevant impact of the Covid-19 pandemic on 2020 financials, this presentation also reports 2019 income statement data for greater comparability purpose. In addition, in light of today's Board of Directors' resolution to cease the Elite business, selected P&L data for both Q2 and H1 2021 as well as for comparative years are also restated without Elite contribution. The following commentary is, therefore, also based on these figures.

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.

© Amplifon S.p.A.	2
July 29th, 2021

Q2 2021: Outstanding quarter driven by ~+20% revenue growth and excellent profitability expansion vs. Q2 2019

Guidance upgraded. Strategic decision to exit the wholesale business

• Outstanding top-line growth, well above market
• • At +109.2% at constant FX vs Q2 2020, with organic growth at +102.9%
  • At +19.8% at constant FX vs Q2 2019, with organic growth at +15.1%
  • Very strong growth across all Regions with Americas standing-out
• Excellent profitability improvement
• • EBITDA recurring at €136.1 million, up +104.9% vs Q2 2020 and +26.5% vs Q2 2019, with margin at 26.3%, up 180bps vs Q2 2019, even after significant re-investments in the business
  • Net Profit recurring at €55.3 million, ~7.5x vs Q2 2020 and +36.3% vs Q2 2019
• Strong cash flow generation vs H1 2020
• • Operating cash flow at €155.4 million, +65.5% vs H1 2020 and +55.6% vs H1 2019
  • Free cash flow at €118.8 million, +64.8% vs H1 2020 and +105.3% vs H1 2019
• Net Financial Position at €620.5 million, further improving vs. December 2020 and leverage at 1.23x, even after €42.9 million net cash-out for M&A, €49.4 million for dividend payment and €13.3 million for share buy-back
• Game-changingM&A activity subsequent to the closing of the quarter
• • Bay Audio acquisition in the core Australian market, building another Company stronghold
  • Second Joint Venture in the fast-growing & high-potential Chinese market
• Strategic decision to exit the wholesale business ceasing the operations of Elite Hearing LLC ("Elite") in the US
• • Perfectly in line with Group's consumer-centric strategy aimed at delivering a superior proposition directly to end-customer
  • Wind-downexpected to be completed by end of 2021

© Amplifon S.p.A.	3
July 29th, 2021

Wind-down of Elite

Exiting the low-growth,low-margin and no longer strategic wholesale business to focus on end-consumer

E l i t e a t - a - g l a n c e

• Part of Amplifon since 2002
• Supports ~740 members with ~1,900 locations
• Serves different businesses in hearing care, including private practices audiologists and hearing instrument specialist, ENTs, hospitals, etc.
• Leverages agreements with 5 manufacturers
• 15 employees

S t r a t e g i c r a t i o n a l e

• Perfectly in line with Group's consumer-centric strategy aimed at delivering a superior proposition directly to end-customer
• Low-growthand low-margin business
• • Pressure on independents in the US, further increased post Covid-19 pandemic, as the market will continue to consolidate
  • Low added value business with limited opportunity to build further differentiation
• Allows to devote all focus, resources and investments to the two high-growth and high-potential strategic business units: Miracle-Ear and AHHC

Transforming the US business to focus on end-consumer, leveraging its unique assets and brands in the two fastest growing channels, retail and managed care

© Amplifon S.p.A.	4
July 29th, 2021

Wind-down of Elite

Elite's lower growth and profitability business is dilutive to Amplifon's strong financial profile

• In the last years Elite has been dilutive to Amplifon's fast-growing and profitable business
• • In 2020 Elite accounted for 3.4% and 1.4% of Group's consolidated sales and EBITDA, respectively
• The wind-down will be treated as discontinued operations as of effective date of discontinuation
• • Exclusion of Elite P&L from 2021 and restatement of 2019 and 2020 comparison years
  • Result of discontinued operations to be reported in Net Result from discontinued operations1
• Indicative total negative impact for the wind-down2 is expected in the region of ~€10 million, of which vast majority is represented by non-monetary costs
• The wind-down is currently expected to be effective and completed by end of 2021

Elite key financial data

Data in USD m	FY 2019	FY 2020	H1 2019	H1 2021
REVENUES	78.2	59.7	38.8	33.4
Growth vs 2019		-23.7%		-13.9%
EBITDA	13.4	5.9	5.9	2.4
Margin %	17.1%	9.8%	15.2%	7.1%

1. Line in-between Net Result from continuing operations and Net Result after discontinued operations

2. Including transaction costs, restructuring charges as well as non-monetary costs related to goodwill or other BS items

© Amplifon S.p.A.	5
July 29th, 2021