Reply

Earnings Release • Mar 14, 2023

Informazione Regolamentata n. 0482-4-2023		Data/Ora Ricezione 14 Marzo 2023 13:37:40	Euronext Star Milan
Societa'	:	REPLY
Identificativo Informazione Regolamentata	:	173427
Nome utilizzatore	:	REPLYNSS01 - LODIGIANI
Tipologia	:	1.1
Data/Ora Ricezione	:	14 Marzo 2023 13:37:40
Data/Ora Inizio Diffusione presunta	:	14 Marzo 2023 13:37:41
Oggetto	:	financial statements for the year 2022	The Board of Directors approved the draft
Testo del comunicato

Vedi allegato.

PRESS RELEASE

REPLY: The Board of Directors approved the draft financial statements for the year 2022.

All economic indicators have improved.

• Consolidated turnover of €1,891.1 million (€1,483.8 million in 2021);
• EBITDA at €340.3 million (€262.8 million in 2021);
• EBIT at €285.5 million (€209.3 million in 2021);
• Group net profit at €192.2 million (€150.7 million in 2021)

Approval of the proposed dividend distribution of €1 per share.

Today the Board of Directors of Reply S.p.A. [MTA, STAR: REY] approved the draft financial statement for the year 2022, which will be submitted for approval to the Shareholders' Meeting to be held on first call in Turin on 20 April 2023.

The Reply Group closed 2022 with a consolidated turnover of €1.891.1 million, an increase of 27.5% compared to €1,483.8 million in 2021.

All indicators are positive for the period. Consolidated EBITDA was €340.3 million, an increase of 29.5% compared to €262.8 million recorded in 2021.

EBIT, from January to December, was at €285.5 million, which is an increase of 36.4% compared to €209.3 million in 2021.

The Group net profit was at €192.2 million, an increase of 26.1% compared to the €150.7 million recorded in 2021.

Following the results achieved in 2022, the Reply Board of Directors decided to propose a dividend distribution of €1 per share to the next Shareholders' Meeting, which will be payable on 24 May 2023, with the dividend date set on 22 May 2023 (record date 23 May 2023).

As at 31 December 2022, the Group's net financial position has been positive, at €70.6 million. As at 30 September 2022, the net financial position was positive, at €133.9 million.

"2022 was a very positive year for our Group, both in terms of turnover growth and margins", says Mario Rizzante, Chairman of Reply. "In the past few months, we have continued to invest and acquired additional market shares in Europe, the UK and North America. We have also upgraded our core offerings in artificial intelligence, robotics and connected vehicles with new components.

Mario Rizzante continues: "Today Reply is known for its ability to interpret digital innovation and make it work in the interests of companies seeking transformation. In particular, in 2022 we have seen strong growth in demand

in the areas of Cloud, IoT, data platforms and digital experiences. Furthermore, the use of artificial intelligence is becoming increasingly widespread. Reply has a leading position in this market thanks to the investments we have made over the last two years."

"In the near future", Mario Rizzante concludes, "we will see the rise of a fusion of automation, artificial intelligence, digital interfaces and connected objects, but it will require a great deal of work to make it possible and useful to enterprises. In this scenario, Reply stands as a niche player with a very high technological expertise capable of supporting its clients in the creation of the new digital economy."

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 Finance Act, that the accounting information contained in this press release corresponds to the company's records, ledgers and accounting entries.

Reply

Reply [MTA, STAR: REY, ISIN: IT0005282865] specialises in the design and implementation of solutions based on new communication channels and digital media. Reply is a network of highly specialised companies supporting key European industrial groups operating in the telecom and media, industry and services, banking, insurance and public administration sectors in the definition and development of business models enabled for the new paradigms of AI, cloud computing, digital media and the Internet of Things. Reply services include: Consulting, System Integration and Digital Services. www.reply.com

Reply Reply Fabio Zappelli Riccardo Lodigiani Tel. +390117711594 Tel. +390117711594

Media Contacts Investor Relation Contacts

f.zappelli@reply.com r.lodigiani@reply.com

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

March 14, 2023

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

ズ REPLY

CONSOLIDATED RECLASSIFIED STATEMENT OF INCOME

(thousand Euros)	2021	9/0	2020	%
Revenues	1,891,114	100.0	1,483,803	100.0
Purchases	(27,328)	(1.4)	(21,500)	(1.4)
Personnel	(986,744)	(52.2)	(759,567)	(51.2)
Services and other costs	(587,402)	(31.1)	(445,147)	(30.0)
Other operating (costs)/income	50,671	2.7	5,195	0.4
Operating costs	(1,550,802)	(82.0)	(1,221,018)	(82.3)
Gross operating income (EBITDA)	340,312	18.0	262,784	17.7
Amortization, depreciation and write-downs	(58,612)	(3.1)	(48,391)	(3.3)
Other non-recurring (costs)/income	3,774	0.2	(5,110)	(0.3)
Operating income (EBIT)	285,473	15.1	209,283	14.1
(Loss)/gain on investments	(12,102)	(0.6)	8,164	0.6
Financial income/(expenses)	(4,676)	(0.2)	(4,168)	(0.3)
Income before taxes	268,695	14.2	213,279	14.4
Income taxes	(76,511)	(4.0)	(60,871)	(4.1)
Net income	192,184	10.2	152,408	10.3
Non-controlling interests	(1,168)	(0.1)	(1,735)	(0.1)
Net result of the Parent company	191,016	10.1	150,672	10.2

EMARKET
SDIR certified

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(thousand Euros)	31/12/2022	31/12/2021 (*)
Tangible assets	98,068	80,919
Goodwill	630,255	445,345
Intangible assets	105,173	83,386
RoU Assets	112,341	119,549
Equity investments	51,049	66,361
Other financial assets	11,706	8,556
Deferred tax assets	61,979	68,889
Non current assets	1,070,572	873,006
Inventories	83,880	86,787
Trade receivables	657,568	471,560
Other receivables and current assets	101,828	65,402
Financial assets	30,608	31,791
Cash and cash equivalents	283,695	329,051
Current assets	1,157,578	984,592
TOTAL ASSETS	2,228,150	1,857,597
Share Capital	4,863	4,863
Other reserves	774,411	657,733
Net result of the period	191,016	150,672
Equity of the Parent company	970,291	813,269
Non-controlling interest	1,579	2,626
NET EQUITY	971,869	815,895
Due to minority shareholders and earn-out	112,827	107,493
Finacial liabilities	74,533	23,313
Financial liabilities from RoU	97,624	102,129
Employee benefits	42,831	48,601
Deferred tax liabilities	44,964	34,690
Provisions	15,242	16,925
Non current liabilities	388,021	333,150
Due to minority shareholders and earn-out	28,675	22,066
Finacial liabilities	43,745	15,681
Financial liabilities from RoU	27,829	26,508
Trade payables	168,835	139,921
Other current liabilities	598,557	502,990
Provisions	619	1,387
Current liabilities	868,260	708,552
TOTAL LIABILITIES	1,256,281	1,041,702
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,228,150	1,857,597

(*) As a result of the completion of the PPA process, the Group restated the data as at 31 December 2021.

CONSOLIDATED NET FINANCIAL POSITION

(thousand Euros)	31/12/2022	31/12/2021	Change
Cash and cash equivalents, net	263,252	314,680	(51,429)
Current financial assets	30,608	31,791	(1,183)
Due to banks	(22,643)	(406)	(22,237)
Due to other providers of finance	(660)	(904)	245
Financial liabilities IFRS 16	(27,829)	(26,508)	(1,320)
Short-term financial position	242,729	318,653	(75,924)
Due to banks	(74,533)	(23,313)	(51,220)
Financial liabilities IFRS 16	(97,624)	(102,129)	4,504
M/L term financial position	(172,157)	(125,442)	(46,715)
Total net financial position	70,572	193,212	(122,640)