Reply SpA

Consolidated financial statements as at December 31, 2010
Note 1 - General information
Reply is a Consulting, System Integration and Application Management company and leader in the design and implementation
of solutions based on new communication channels and digital media.
Reply, consisting of a network of specialized companies, provides applications to optimize corporate processes and develops
innovative technology-based solutions to enable communication between customers, business partners and suppliers.
The Group is headed by the Parent Company Reply S.p.A., company listed on the STAR segment of Borsa Italiana
[REY.MI]. Its headquarter is based in Turin, Italy.
Note 2 - Accounting principles and basis of consolidation
Compliance with International accounting principles
The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board and endorsed by the European Union. The
designation “IFRS” also includes all valid International Accounting Standards (“IAS”), as well as all interpretations
of the International Financial Reporting Interpretations Committee (“IFRIC”), formerly the Standing Interpretations
Committee (“SIC”). Following the coming into force of European Regulation No. 1606 of July 2002, starting from
January 1, 2005, the Reply Group adopted International Financial Reporting Standards (IFRS).
The consolidated Financial statements have been prepared in accordance with Consob regulations regarding the format
of financial statements, in application of art. 9 of Legislative Decree 38/2005 and other Consob regulations and
instructions concerning financial statements.
General principles
The financial statements are prepared under the historical cost convention, modified as required for the valuation of
certain financial instruments. The criteria of fair value is adopted as defined by IAS 39.
The consolidated financial statements have been prepared on the going concern assumption. In this respect, despite
operating in a difficult economic and financial environment, the Group’s assessment is that no material uncertainties
(as defined in paragraph 25 of IAS 1) exist about its ability to continue as a going concern.
These consolidated financial statements are expressed in thousands of Euros and are compared to the consolidated
financial statements of the previous year prepared in accordance with the same principles.
Further indication related to the format of the financial statements respect to IAS 1 is disclosed here within as well
as information related to significant accounting principles and evaluation criteria used in the preparation of the following
consolidated report.
Financial statements
The consolidated financial statements include, statement of income, statement of comprehensive income, statement
of financial position, statement of changes in shareholders’ equity, statement of cash flows and the explanatory notes.
The income statement format adopted by the group classifies costs according to their nature, which is deemed to
properly represent the Group’s business.
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