Half Yearly Report

M&C SAATCHI PLC

INTERIM RESULTS

SIX MONTHS ENDED

30 JUNE 2012

20 September 2012

M&C Saatchi PLC

Interim Results for the six months ended 30 June 2012

20 September 2012

Excellent results, with strong revenue momentum and earnings growth

The highlights are headline results, see note on next page for definition.

Operational Highlights

·; Successful first half with further strong growth in both revenue and earnings, driven by excellent new business wins and roll out of international offices and new businesses

·; Global Network performed well across all geographies:

° UK: revenues up 16%, with CRM and mobile performing particularly well

° Europe: like-for-like revenues up 25%, operating profit up 31%, in spite of macro-economic challenges

° Asia and Australasia: like-for-like revenues up 12%, operating profit up 41%

° Middle East and Africa: like-for-like revenues up 146% to £2.8m, well positioned to take advantage of growing African market

° Americas: like-for-like revenues up 12% with our New York agency set to launch in Q4

° Clear had a disappointing first half and have reduced their cost base 15% 

·; We continue to invest and build for the future: two offices added (Abu Dhabi and Singapore) together with a new management team in New York

·; Strong balance sheet maintained, focus on cash control with net cash of £14.4m

·; Interim dividend increased 10% to 1.10p

Commenting on the results, David Kershaw, Chief Executive, said:

"M&C Saatchi has made further good progress over the first six months of 2012. This has resulted from new business success and successful new businesses.

"Our federation of entrepreneurs delivered double digit revenue and earnings growth. Meanwhile, we continue to invest in high-growth new businesses in mature markets, to scale up in new markets and to export proven models across the network.

"Looking ahead, we are confident that we will continue to make progress in 2012 and beyond. The strategy is working. "

For further information please call:

M&C Saatchi +44 (0)20-7543-4500

David Kershaw

Tulchan Communications +44 (0)20-7353-4200

Lucy Legh

Susanna Voyle

Numis Securities +44 (0)20-7260-1000

Nick Westlake, NOMAD

Charles Farquhar, Corporate Broking

Notes to Editors

Headline results

Headline results are stated before accounting for the amortisation of acquired intangibles (including goodwill), the fair value adjustment to minority put option liabilities, revisions to contingent consideration and call option revaluations. The reconciliation of the difference between the headline results and the reported results is set out in note 4 on page 16.

Like-for-like

The like-for-like revenue comparisons referred to in this report are stated after excluding the impact of foreign currency movements.

Periods compared

This report comments on the unaudited consolidated income statement of M&C Saatchi plc (the "Group") for the six months to 30 June 2012 compared with unaudited consolidated income statement for the same period in 2011.

SUMMARY OF RESULTS

The first six months of 2012 saw another strong performance with very good revenue momentum and earnings growth. Like-for-like revenues increased 15% and we maintain a double digit headline operating margin of 10%, in spite of first half investment in three offices (New York, Abu Dhabi and Singapore). The headline profit before tax advanced 13% to £8.7m and headline net earnings rose 13%.

UK

We experienced very good revenue growth in the UK of 16%, with our CRM and mobile businesses doing particularly well. We also had a strong run of wins across our family of businesses, including O₂, Loewe, National Trust, Harveys, Spotify, Twitter, Intercontinental Hotels, Saga, Viking and Virgin Holidays. We are seeing an increasing number of integrated wins across communication channels. We retain a close watch on costs as well as margins. This resulted in the headline operating margin holding at 20.7% (2011: 20.8%, both margins exclude the impact of Group recharges). The UK headline operating profit improved a positive 15% on 2011.

Europe

Despite the economic backdrop, we made outstanding progress in Europe. Like-for-like revenues increased 25%. Headline operating profit was up 31%. Germany and Switzerland both performed well, whilst Italy excelled. In France, new business continued to be sluggish on the advertising front but we benefited from digital and PR contributions. We retained La Banque Postale, a major client. Spain continued to underperform in a very difficult market but, as an associate, our investment there is just 25%.

Middle East and Africa

We experienced excellent growth in both Cape Town and Johannesburg. Revenues were up from £1.1m to £2.8m and key wins in the period were Edgars Department Stores and Nedbank's below-the-line account. The African headline operating profit was £330k, compared with a loss of £26k in the same period last year. Elsewhere in the region, we opened an Abu Dhabi office on the back of our Etihad win.

Asia and Australasia

In Asia and Australasia, like-for-like revenue increased 12% in the six months and headline operating profit was up a very favourable 41%. The key driver for this was Australia, which stabilised after a turbulent 2011 on the client front. In the first six months of this year, we won Commonwealth Bank and retained Optus, two Group top ten accounts. We also won assignments from Opal and Slater & Gordon, lawyers. In February, we widened the office capability with the acquisition of Bang PR, a Sydney based consumer PR company which works with Optus and Woolworth.

New Zealand was impacted by two of their main clients suspending media spends. There was another excellent performance from Malaysia. China continued to be challenging, with severe pricing pressure and our lack of scale making for a more difficult market. Japan and India were both profitable, albeit relatively modest. We reopened our Singapore office in February 2012 with an experienced and promising team.

The regional headline operating margin was 7.0%, which compared with 2011's 5.6%.

Americas

In New York, we recruited a Chief Executive, Jeff Brooks, who joined in February to expand our offer in the US. He has hired a chief creative officer and will be hiring head of planning to complete the management team and will launch the agency in the last quarter. This investment meant a headline operating loss in the Americas of £445k for the first six months. Further investment will follow in the second half.

We made some progress in Los Angeles and Sao Paulo, which both continued to win new business.

Clear

Clear had a disappointing first half, with revenues slowing for a variety of reasons; budget cuts, restructuring programmes underway or the switching of spend into communications. We have taken action implementing a programme that reduced costs by 15%.

Outlook

M&C Saatchi has made further good progress over the first six months of 2012. This has resulted from new business success and successful new businesses.

Our federation of entrepreneurs delivered double digit revenue and earnings growth. Meanwhile, we continue to invest in high-growth new businesses in mature markets, to scale up in new markets and to export proven models across the network.

Looking ahead, we are confident that we will continue to make progress in 2012 and beyond. The strategy is working.

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED INCOME STATEMENT

ENDED 30 JUNE 2012

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

ENDED 30 JUNE 2012

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED BALANCE SHEET

AT 30 JUNE 2012

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED BALANCE SHEET (CONTINUED)

AT 30 JUNE 2012

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SIX MONTHS ENDED 30 JUNE 2012

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

SIX MONTHS ENDED 30 JUNE 2012

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

SIX MONTHS ENDED 30 JUNE 2012

1. GENERAL INFORMATION

The Company is a public limited company incorporated and domiciled in the UK. The address of its registered office is 36 Golden Square, London W1F 9EE.

The Company has its primary listing on the AIM market of the London Stock Exchange.

This consolidated half-yearly financial information was approved for issue on19 September 2012.

These results do not constitute the Group's statutory accounts. The information presented in relation to 31 December 2011 is extracted from the statutory financial statements for the year then ended and which have been delivered to the Registrar of Companies. The auditor's report on the statutory financial statements for the year ended 31 December 2011 was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report(s) and did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

2. Basis of preparation

This consolidated half-yearly financial information for the half-year ended 30 June 2012 has been prepared in accordance with the AIM Rules for companies. The half-yearly consolidated financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2011.

3. Accounting policies

The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2011 and which will form the basis of the 2012 financial statements.

4. Earnings per share and reconciliation between headline and statutory results