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
Contingent liabilities
As an international company , the Group is exposed to numerous legal risks, particularly in the area of product liability,
environmental risks and tax matters. The outcome of any current or future proceedings cannot be predicted
with certainty. It is therefore possible that legal judgments could give rise to expenses that are not covered, or not
fully covered, by insurers’ compensation payments and could affect the Group financial position and results.
Instead, when it is probable that an overflow of resources embodying economic benefits will be required to settle
obligations and this amount can be reliably estimated, the Group recognizes specific provision for this purpose.
Note 38 - Events subsequent to December 31, 2010
On February 4, 2011 Reply S.p.A. has finalized the acquisition of 51% of the shares and 90% of the voting rights
of avantage, an English company specialized in risk, treasury and capital management, and, financial performance
management.
avantage, with offices in London, Amsterdam, Edinburgh, and Luxembourg, counts among its clients some of the
world’s most significant financial groups and It closed the last financial year (figures as of September 30th, 2010)
with a turnover of £10.7 million and an EBT of £2.4 million, 24% of revenue.
The total value of the purchase price for 51% of the shares represents a Reply investment of £6.9 million, which is
broken down into two tranches with an initial payment of £4.8 million paid in cash on signing the Sale & Purchase
Agreement and a further £2.1 million paid in three years’ time.
Reply also has the option to exercise a right to purchase the remaining 49% of the capital at the end of 2013.
avantage adds to Reply’s product and service offering in the risk management and regulatory compliance segment;
areas in which, thanks to synergies with other Group companies, Reply now boasts one of the leading practices in
Europe.
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