Reply

Earnings Release • Aug 2, 2016

Informazione Regolamentata n. 0482-12-2016		Data/Ora Ricezione 02 Agosto 2016 12:23:39	MTA - Star
Societa'	:	REPLY
Identificativo Informazione Regolamentata	:	77797
Nome utilizzatore	:	REPLYNSS01 - LODIGIANI
Tipologia	:	IRAG 02
Data/Ora Ricezione	:	02 Agosto 2016 12:23:39
Data/Ora Inizio Diffusione presunta	:	02 Agosto 2016 12:38:40
Oggetto	:		The Board of Directors approves the half year financial report as of 30 June 2016.
Testo del comunicato

Vedi allegato.

PRESS RELEASE

Reply S.p.A: The Board of Directors approves the half-year financial report as of 30 June 2016.

All economic indicators have improved:

• Consolidated turnover of €386.5 million (345.5 in H1 2015).
• EBITDA of €51.3 million (€47.3 in H1 2015).
• EBIT of €48.0 million (€42.9 in H1 2015).
• Pre-tax profit of €47.3 million (€43.9 in H1 2015).

Today, the Board of Directors of Reply S.p.A. [MTA, STAR: REY] approved the results as at 30 June 2016.

Since the start of the year, the Group has recorded a consolidated turnover of €386.5 million, which is an increase of 11.9% compared to the same period in 2015.

In the first half of 2016, increased profit margins have also been recorded, with consolidated EBITDA of €51.3 million (+8.6%) and EBIT for the period of €48.0 million (+12.0%). Pre-tax profit amounted to €47.3 million, which represents an increase of 7.8% compared to 2015.

For the second quarter of the year, the Group's performance is equally positive, with consolidated turnover for the period of €200.2 million, which is an increase of 13.5% compared to 2015.

EBITDA, from April to June 2016, amounted to 26.4 million, with EBIT of €25.5 million and pre-tax profit of €24.8 million.

As at 30 June 2016, the Group's net financial position was positive for €23.3 million (€72.0 as at 31 March 2016). At 30 June 2015, the financial position has been positive for €22.9 million.

"The first six months of the year have been very positive for our Group, with significant growth in all the market segments in which we operate," said Mario Rizzante, the Chairman of the Board. " In particular, we have worked to further strengthen a distinctive presence that is unique on the market, matching technology, digital experience and industry consulting."

"Today - concludes Mario Rizzante - our goal is to keep investing in new skills and specializations, to support our clients in defining and implementing transformation strategies based on Big Data, Cloud Computing, Digital Services, Machine Learning, Industry 4.0 and Internet of Things. "

The manager responsible for preparing the company's financial reports, Dr Giuseppe Veneziano, states, in accordance with paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the company's records, ledgers and accounting entries.

Reply

Reply [MTA, STAR: REY] specialises in the design and implementation of solutions based on new communication channels and digital media. Reply is a network of highly specialised companies that supports major European industrial groups operating in Telco & Media, Manufacturing and Services, Banking and Insurance and Public Administration sectors in the definition and development of business models empowered by the new paradigms of Big Data, Cloud Computing, Digital Media and the Internet of Things. Reply services include consulting, system integration and digital services. www.reply.eu

Media Contacts Investor Relation Contacts

Reply Reply Fabio Zappelli Riccardo Lodigiani f.zappelli@reply.eu r.lodigiani@reply.eu Tel. +390117711594 Tel. +390117711594

Michael Lueckenkoetter m.lueckenkoetter@reply.eu Tel. +49524150091017

Turin, 2 August 2016

This press release is a translation, the Italian version will prevail.

RECLASSIFIED CONSOLIDATED STATEMENT OF INCOME

(thousand Euros)	1st half 2016	%	1st half 2015	%
Revenues	386,513	100	345,483	100
Purchases	(8,428)	(2.2)	(6,632)	(2)
Personnel	(189,838)	(49.1)	(175,246)	(50.7)
Services and other costs	(137,915)	(35.7)	(116,796)	(33.8)
	1,000	0.3	456	0.1
Operating costs	(335,181)	(86.7)	(298,217)	(86.3)
Gross operating income (EBITDA)	51,333	13.3	47,265	13.7
Amortization, depreciation and write-downs	(4,863)	(1.3)	(4,415)	(1.3)
Other unusual (costs)/income	1,523	0.4	-	-
Operating income (EBIT)	47,992	12.4	42,850	12.4
Financial income/(expenses)	(721)	(0.2)	1,009	0.3
Income before taxes	47,271	12.2	43,859	12.7
Income taxes	(17,119)	(4.4)	(15,192)	(4.4)
Net income	30,152	7.8	28,667	8.3
Non controlling interests	(74)	-	(467)	(0.1)
Group net income	30,079	7.8	28,200	8.2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(thousand Euros)	30/06/2016	31/12/2015
Tangible assets	17,025	17,022
Goodwill	156,959	133,376
Other intangible assets	11,038	9,696
Equity investments available for sale	11,665	9,105
Other financial assets	7,268	5,629
Deferred tax assets	21,425	17,339
Non current assets	225,380	192,167
Inventories	105,375	57,929
Trade receivables	237,103	302,250
Other receivables and current assets	45,853	40,973
Financial assets	1,910	2,289
Cash and cash equivalents	73,962	105,137
Current assets	464,203	508,577
TOTAL ASSETS	689,582	700,745
Share Capital	4,863	4,863
Other reserves	270,477	233,814
Net result of the period	30,079	56,748
Group shareholders' equity	305,420	295,425
Non controlling interest	(341)	653
NET EQUITY	305,079	296,079
Due to minority shareholders	28,394	19,746
Financial liabilities	27,225	33,869
Employee benefits	28,813	25,866
Deferred tax liabilities	24,148	21,471
Provisions	17,702	18,849
Non current liabilities	126,282	119,801
Financial liabilities	26,524	46,280
Trade payables	89,455	77,686
Other current liabilities	141,403	160,640
Provisions	840	260
Current liabilities	258,222	284,865
TOTAL LIABILITIES	384,504	404,666
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	689,582	700,745

NET FINANCIAL POSITION

(thousand Euros)	30/06/2016	31/12/2015	Change
Cash and cash equivalents, net	62,008	70,109	(8,101)
Current financial assets	1,910	2,289	(380)
Due to banks	(13,758)	(10,786)	(2,972)
Due to other providers of finance	(811)	(466)	(345)
Short-term financial position	49,348	61,147	(11,798)
Non current financial assets	1,171	908	262
Due to banks	(26,284)	(33,008)	6,725
Due to other providers of finance	(941)	(860)	(81)
M/L term financial position	(26,054)	(32,960)	6,906
Total net financial position	23,294	28,186	(4,892)