Reply SpA

Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of financial position
Statement of changes in consolidated equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Annexed tables
Share based payment plans
The company has share based payment plans for its employees.
The stock option plans have the following purposes:
to develop the loyalty of employees by strengthening the connection between their interests and those of the
Shareholders of Reply S.p.A.;
to encourage employees to achieve the growth targets;
to motivate employees and involve them in participating in the future economic results;
to strengthen the relations between the Company and its employees by developing their loyalty and sense of responsibility.
As mentioned in Note 2 referring to share-based payment plans the Company has applied the standard set out by
IFRS 2 “Share-based payment” and has been applied to all the stock options granted after November 7, 2002 and
that have not yet vested as at January 1, 2005 and are related to the stock options plans of 2004 and 2006. With
reference to these plans, the cost incurred for Reply S.p.A. share-based payments in 2010 amounted to 10 thousand
Euros (50 thousand Euros in 2009).
Stock option plans linked to Reply Group ordinary shares
The Extraordinary Shareholders’ Meeting of Reply S.p.A. resolved the increase of the share capital with exclusion of
stock option rights in compliance with art. 2441, paragraph 8 and art. 2441 paragraph 5 of the Italian Civil Code.
The Board of Directors’ of Reply S.p.A. in charge of the stock option plan, has assigned stock options to employees
and directors of the group companies.
As at December 31, 2010 the number of stock options were 168,400 and can be summarized as follows:
Resolution of
the General
Board’s
Shareholders’ resolution No. Exercise No.
plan meeting date beneficiaries price Vesting period options
2004 11/06/2004 11/11/2005 1 17.569 11/11/2008 - 11/11/2013 2,400
2004 11/06/2004 12/05/2006 10 21.339 12/05/2009 - 12/05/2014 150,000
2006 15/06/2006 08/08/2006 1 18.662 08/08/2009 - 08/08/2014 10,000
2006 15/06/2006 27/09/2007 1 24.096 27/09/2010 - 27/09/2015 6,000
During 2010 no stock options were exercised nor assigned in reference to the existing plans.
Under an accounting perspective stock option plans represent an Equity settled share based payment transaction pursuant
to paragraph 10 of IFRS 2 that requires the assessment of the fair value of the services received with reference
to the fair value of the instruments representative of equity at the assignment date.
The fair value of the services received must be recorded when the option vests with a corresponding increase in equity.
Stock option plans linked to Syskoplan AG ordinary shares
The Shareholders’ Meeting of syskoplan AG on September, 2000 resolved the increase of the share capital with the
emission of no. 300,000 new syskoplan AG ordinary shares in favor of employees and directors of the company.
As at December 31, 2010 the main characteristics of the stock option plan resolved by the Shareholders’ Meeting is as
follows:
Resolution of the
General Shareholders’ No. Exercise
plan meeting beneficiaries price Vesting period No. options
2004 07/04/2004 329 7.63 07/04/2006 - 07/04/2011 71,407
During 2010 no. 14,991 ordinary shares were exercised; at December 31, 2010 no. 23,481 ordinary shares can still
be exercised while no. 13,791 ordinary shares expired.
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