Workspace Group PLC

Interim Results

for the six months ended

30 September 2007

Agenda

1. Introduction

2. Highlights – H1 2007

3. Financial Performance – H1 2007

4. Prospects

The Business: A Reminder

“ We provide affordable, flexible space for new and small businesses in London”

• c.4,500 customers over 119 estates; 6.2 million sq .ft

• Over 10,000 enquiries a year; market leading brand in fragmented market

• A simple product offer

• Superior service from in-house management

• Customer focused

Dynamics of London

• London is THE Global city

• London drives the UK economy

• Most multicultural – home to more than 300 languages

• 42 immigrant populations of 10,000 or more

• Home to 12.5% of UK population, produces 16.5% of its output

• Highest concentration of fastest-growing, most productive business sectors

London is our Knowledge Base

Unique London Portfolio

Workspace Customer Base

Customer base of more than 4,000 small businesses

18%

6%

1%2%

1%

12%5%

10%

45%

Manufacture

Retail

Construction

Utilities/Infrastructure

Organisations

Design & Creative

Services

Storage & Distribution

Unclassified

Classification based on DTI categories

Three Drivers of Growth

CORE BUSINESS Strong Rental Growth

High Occupancy

Proven Track Record

Extensive Database

In-house expertise

Employment led regeneration

ACQUISITIONS

REDEVELOPMENT

+

+

Agenda

1. Introduction

2. Highlights – H1 2007

3. Financial Performance

4. Prospects

Highlights

September 2007 March 2007

Rent Roll £49.5m £47.2m

Occupancy 86.4% 84.8%

Portfolio Valuation £1,035m £1,002m

Number of Estates 104 101

Valuation Performance

Valuation Surplus £12.2m £47.8m

ERV growth

+6.1% +14.5%

Reversionary Yield movement -18 bps - 19 bps

Relative IPD Ranking 10 15

To September 2007 6 months 12 months

Valuation – London Portfolio

Business Centres

Industrial

Number of properties 71 33

Valuation £800m £235m

Valuation Surplus +£12m 0

Capital Value/sq ft £245 £138

Average Rent/sq ft £13.92 £7.12

ERV/sq ft £17.03 £8.01

Valuation – Southbank Portfolio

Number of properties 9

Valuation £248m

Valuation Surplus +£6m

Capital Value/sq ft £305

Average Rent/ sq ft £17.19

ERV/sq ft £21.21

Occupancy

September 2007 March 2007 September 2006

Like-for-Like 89.2% 87.6% 85.9%

Clerkenwell, EC1 95.4% 89.4% 49.8%

The Light Box, W4 84.5% 81.4% 33.4%

Enterprise House, SE1 97.8% 88.5% 71.2%

Lombard House, Croydon 33.4% 23.4% 23.4%

Avro & Hewlett House, SW8 95.9% 85.6% -

Exmouth House, EC1 100.0% 100.0% -

Kennington Park, SW9 69.4% 75.7% 74.8%

Total Occupancy 86.4% 84.8% 81.7%

Rent Roll Growth

To September 2007 6 Months 12 Months

Like-for-like +£1.6m (4.2%) +£2.9m (8.0%)

Completed Developments +£0.4m +£2.1m

Ongoing Developments -£0.4m -£0.3m

Acquisitions/Disposals +£0.8m +£1.8m

Total Rent Roll +£2.4m (5.0%) +£6.5m (15.1%)

Acquisitions

£m

Neil House, E1 10.8

Other Properties 11.3

Total 22.1

Capital Value £159 per sq. ft

Initial Yield 3.8%

Reversionary Yield 7.5%*

* Excluding any additional potential in our hands

Neil House

Agenda

1. Introduction

2. Highlights

3. Financial Performance

4. Prospects

Financial Performance

Income Statement September 2007 September 2006 Change

Trading Operating Profit £20.7m £16.4m +26%

Trading PBT £7.0m £5.1m +37%

Trading EPS 4.0p 2.2p +82%

Dividend per share 1.52p 1.38p +10%

Balance Sheet September 2007 March 2007 Change

Portfolio Valuation £1,035m £1,002m +3%

Diluted adjusted NAV per share 343p 336p +2%

Financial Resources

September 2007 March 2007

Net debt £422m £381m

Net gearing 71% 65%

Trading interest cover 1.52 1.44

Average interest cost 7.0% 6.3%

Available undrawn facilities £79m £65m

Loan to value 41% 38%

Valuation - Fundamentals

September 2007 March 2007

ERV £69.3m £65.3m

Valuation £1,035m £1,002m

Reversionary Yield 6.70% 6.52%

Equivalent Yield (90%) 6.03% 5.87%

Current Yield 4.78% 4.71%

Reversionary Potential (to 90%) £12.9m £11.6m

Core Business Valuation

Over next18 months

Yields Stable

Yields out 50bps

Yields out 100bps

ERV up

5% p.a. +£80m 0 -£70m

ERV up

10% p.a. +£160m +£80m 0

What if…..

Reversionary Yield

6.7% 7.2% 7.7%

Typical Customer

+£17 / week

+£34 / week

Agenda

1. Introduction

2. Highlights

3. Financial Performance

4. Prospects

London Growth

• Population expected to grow from 7.5 million to 8.8 million in 2029

• Households expected to grow from 3.2 million to 3.6 million by 2021(source: ONS, Population trends 128; Summer 2007)

Source: Domestic & International Net Migration in London, 1981-2005

Source: GLA Working paper 24: An analysis of London’s employment by sector

Trading Outlook

To September 2007 6 Months 12 Months

Enquiries

- Number/month 790 750

New Lettings

- Number/month 88 92

Renewals

- Number/month 24 27

Refurbishment Update

Kennington – Canterbury Court

• Expected completion December 2007

• Total cost £12.2m

• 188,000 sq ft

Greville Street

• Completed June 2007

• Total cost £1.1m

• 11,500 sq. ft – currently 41% occupancy

Lombard House

• Completed June 2007 • Total cost £5.7m• 46,000 sq ft – currently 33% occupancy

Wharf Road

• To be completed H1 2008

• 32,000 sq ft

Redevelopment Pipeline

Planning Application Timescales

Workspace Glebe JV

2007 4 2 (1 approved)

2008 9 1

2009 5 4

• Also adding our name and brand to other large strategic schemes across London

• Will continue to feed into the redevelopment process other sites as opportunities appear/ conditions suit

Redevelopment Scale

+ Residential+ Affordable

+ Student Housing

+ Residential+ Affordable

45 apartments27 apartments

230 rooms

156 apartments53 apartments

Aberdeen

Wandsworth(Glebe JV)

Greenheath

Before After Intensification

x 2.0

x 2.6

x 2.5

Commercial 66,000 sq ft 66,000 sq ft

Commercial 46,000 sq ft 74,000 sq ft

Commercial 86,000 sq ft 86,000 sq ft

Outlook

CORE BUSINESS

ACQUISITIONS

REDEVELOPMENT

London

• SMEs

• Available space

• Mixed use agenda

• Residential demand

• Pricing

• Market

Workspace

• Brand

• Portfolio

• Asset Management Skills

• Database

• Financial Resources

• Mixed use credentials

• Partners

• Pipeline

Long-term track record

LAST6 MONTHS

LASTYEAR

LAST3 YEARS

LAST5 YEARS

LAST10 YEARS

IPD PERCENTILE RANKING

Top 10

Top 20

10

15 15

10

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