Half Yearly Report

M&C SAATCHI PLC

INTERIM RESULTS

SIX MONTHS ENDED

30 JUNE 2013

18 September 2013

M&C Saatchi PLC

Interim Results for the six months ended 30 June 2013

18 September 2013

Strong results, with good revenue momentum and earnings growth

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

Operational Highlights

· Successful first half with good revenue momentum and earnings growth

· Global Network performed well:

° UK: revenues up 8%, with CRM and mobile doing well

° Europe: like-for-like revenues up 21%

° Asia and Australasia: like-for-like revenues down 3%, largely as a result of Chinese revenues now going through new associate aeiou

° Middle East and Africa: like-for-like revenues up 54%

° Americas: like-for-like revenues up 24%

o Continued investment in new offices - Abu Dhabi, New York and Stockholm

o Clear: profitability restored following restructuring of cost base. Strong new business pipeline in place and good momentum in the business

o Strong balance sheet maintained with net cash of £20m

o Interim dividend increased 10% to 1.21p

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

"M&C Saatchi has continued to make good headway over the first six months of 2013. This stems from new business wins and flourishing new businesses.

"We delivered good earnings growth, whilst maintaining investment across our new offices.

"Looking ahead, we are confident that we will continue to make progress in 2013 and beyond. The strategy continues to deliver. "

For further information please call:

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

David Kershaw

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

Lucy Legh

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

Nick Westlake, NOMAD

Charles Farquhar, Corporate Broking

Notes to Editors

Headline results

The term headline is not a defined term in IFRS. The items that are excluded from headline results are the amortisation or impairment of intangible assets (including goodwill, but excluding software) acquired in business combinations, changes to contingent and deferred consideration taken to the income statement; impairment of investment in associate; and fair value gains and losses on liabilities caused by our put and call option agreements. See note 4 for a reconciliation of non-headline to headline results.

Like-for-like

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

Underlying Operating Profit

This is headline operating profit excluding the new office investment in Abu Dhabi, New York and Stockholm during the period.

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 2013 compared with unaudited consolidated income statement for the same period in 2012.

SUMMARY OF RESULTS

The first six months of 2013 saw a good performance with revenue momentum and earnings growth. Like-for-like revenues increased 5% and we returned a double digit headline operating margin of 10.6%, whilst continuing to invest in three new offices (Abu Dhabi, New York and Stockholm). The headline profit before tax advanced 6% to £9.3m and headline net earnings rose an impressive 11%.

UK

We experienced a positive revenue increase in the UK of 8%, with our CRM and mobile businesses doing well. We also had a favourable run of account wins across our group of businesses, including Adidas, Club Med, HMG Cyber Security, Land Rover and Unipart, as well as winning the RBS and Boots digital businesses. In July, M&C Saatchi won the chemical company BASF's international corporate advertising account. This was led by the UK and Germany, who will co-ordinate a fully integrated corporate campaign across key markets including North America, Brazil, Asia Pacific and Europe. As ever, we maintain a close watch on costs as well as margins. This resulted in the headline operating margin holding at 20.6% (2012: 20.7%, both margins exclude the impact of Group recharges). The UK headline operating profit improved 7% on 2012.

Europe

Despite the economic backdrop, we made considerable progress in Europe with like-for-like revenues up 21%. Headline operating profit was down 5%, with some investment drag from Stockholm. Stockholm has started exceptionally well, winning their first six pitches and developing an impressive client list that includes Carlsberg, Google, H&M, LG and Oxfam. Germany and Italy both excelled in the six months. The French economy was fragile, with little new business on the advertising front but our agency continued to benefit from digital and PR contributions. Spain struggled in a very challenging market but, as an associate, our investment there is just 25%.

Middle East and Africa

We made excellent progress in both Cape Town and Johannesburg. Revenues were up 54% from £2.8m to £4.3m and key wins in the period were Heineken and the City of Cape Town. The region's operating profit was down 17%, as a result of further investment in Abu Dhabi. We have added new management in Abu Dhabi, who we are confident will add revenues beyond our founding client Etihad.

Asia and Australasia

In Asia and Australasia, like-for-like revenue decreased 3% in the six months with our Chinese revenues now going through our new Shanghai associate aeiou. More importantly, the losses from China and New Zealand have been arrested, which meant the region's operating profit was up 38% and the operating margin rose to just under 10%. The aeiou merger has been very positive in upgrading our Chinese presence and reputation. New Zealand won the Ministry of Justice, which combined with a reduced cost base, means they too are no longer losing money. Australia had a steady first half in an increasingly challenging market. Following the loss of David Jones at the end of July, significant savings to their cost base have been made. Malaysia put in another excellent performance, which included winning 1Malaysia. Japan and India were both profitable, albeit on a relatively small-scale. Our Singapore office, which opened in February 2012, is already profitable after a year which is a great achievement. Their wins have included Government work, in particular the Ministry of Health.

Americas

In the Americas our revenues were up 24%. We continue to invest in New York, which is already proving a valuable office for the network's global pitches. The New York team have been establishing key relationships and are already working with General Electric, Pernod Ricard and Reckitt Benckiser. They continue to build their reputation, which is resulting in a growing new business pipeline. Further good progress was made in Los Angeles and Sao Paulo, which both continued to win new business.

Clear

After a difficult 2012, a rejuvenated and restructured Clear is back on track with a leaner cost base and a strong united management team. Operating profits increased 8% and margins were up nearly 5% to 13%. A clarified offer is being well received and has led to new business wins including Mitchells & Butlers, Dr Oetker, AMP and WWF as well as pharmaceutical projects from Reckitt Benckiser and Bristol-Myers Squibb. Clear's new business pipeline is also much healthier, aided by their Brand Desire research and a newly-formed Advisory Board.

Outlook

M&C Saatchi has continued to make good headway over the first six months of 2013. This stems from new business wins and flourishing new businesses.

We delivered good earnings growth, whilst maintaining investment across our new offices.

Looking ahead, we are confident that we will continue to make progress in 2013 and beyond. The strategy continues to deliver.

.

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED INCOME STATEMENT

ENDED 30 JUNE 2013

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

ENDED 30 JUNE 2013

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2013

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED BALANCE SHEET (CONTINUED)

AT 30 JUNE 2013

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SIX MONTHS ENDED 30 JUNE 2013

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)

SIX MONTHS ENDED 30 JUNE 2013

M&C SAATCHI PLC

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

SIX MONTHS ENDED 30 JUNE 2013

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 on17 September 2013.

These results do not constitute the Group's statutory accounts. The information presented in relation to 31 December 2012 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 2012 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 2013 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 2012.

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 2012 and which will form the basis of the 2013 financial statements

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