M&C Saatchi Regulatory News (SAA)

8 February 2023

M&C SAATCHI PLC

(the "Company" or "M&C Saatchi")

Capital Markets Day

M&C Saatchi is today hosting a capital markets event for institutional investors and analysts. The event will be hosted by Chief Executive Officer, Moray MacLennan and Interim Chief Financial Officer, Bruce Marson, and will include presentations from leaders within the group.

Following two years of record results, the Company will announce its new strategy, accelerating high-margin, digitally led growth. Having turned the Company around and building on strong foundations, the focus is now on the delivery of creative solutions to M&C Saatchi's clients. It will use its specialist expertise connected through data and tech to deliver meaningful commercial and societal change.

Strategy Highlights

The Company will be setting out its new strategy in the presentation, to cover the following:

· Building new capabilities, with a focus on data, technology and digital transformation.

· Identifying new opportunities, shifting from start-ups to targeted M&A and partnerships.

· Embedding a new, more efficient operating model, delivering significant cost savings and enhancing productivity.

Financial Highlights

The Company will also set out new financial targets, 2022 - 2027:

· Net revenue growth of 8% CAGR (from £271m to £400m).

· Operating profit growth of 16% CAGR (from £35m to £74m).

· Operating profit margin of 18% by 2027, top end of the industry range.

· Improved margins in all specialisms, with higher-margin specialisms expected to represent 60%of group net revenue by 2027.

· Headline earnings[1] growth of 22% CAGR (from £18m to £50m).

· Net cash improvement of 45% CAGR (from £30m to £195m).

The event will start at 10:30am. To register for the live webcast please email: mcs@brunswickgroup.com. The presentation will be made available on the Company's website at https://mcsaatchi.com/ after the event.

Current Trading and Outlook

As noted in the trading update on 24 January 2023, FY 2022 net revenue is expected to be £271.4m, representing growth of 9% versus 2021 (FY 2021: £249.3m). FY 2022 headline profit before tax is expected to be £31.8m, slightly ahead of previous expectations set out in April 2022 and representing growth of 16% versus 2021 (FY 2021: £27.3m). While conscious of the macro environment, the Company's trading through Q4 2022 and the start of 2023 continues to be in line with management expectations.

Moray MacLennan, Chief Executive Officer, commented:

"Today is about launching the next stage in our transformation journey. Over the past two years we have delivered on the strategy we set out, demonstrated by successive sets of record results. M&C Saatchi: Moving Forward lays out our plans to accelerate high-margin, digital led growth, through targeted investments and a more efficient, streamlined operating model. It is about demonstrating our resilience to macroeconomic uncertainties through our operational and financial strength and counter-cyclical and resilient specialisms, underpinned by a committed and experienced management team."