1

Workspace Group PLC

Preliminary Results

For the year ended

31 March 2006

2

Agenda

1. 2006 Results

2. Financial Performance

3. Joint Venture

4. Business Plan - Targets

3

2006 - Results

Harry Platt

Workspace Group PLC

4

Headline results

• Valuation Surplus £131m Up 16%

• Total Property Valuation £964m Up 34%

• Adjusted NAV per share £3.12 Up 36%

• Trading pre-tax profit £15.1m Up 4%

• EPS per share 65p Up 80%

• Annual Rent Roll £46.6m Up 10%

• Dividend 3.76p Up 10%

5

Ten Year Results

Five Year Ten Year

Compound Growth Compound Growth

Adjusted NAV per share 20.9% 21.9%

Property at Valuation 21.3% 22.6%

Trading PBT 9.9% 13.8%

Trading EPS 10.2% 13.0%

Dividend per share 10.2% 11.2%

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The Business – Hotelier of Space to SMEs

To achieve profit and capital growth from:

• Providing workspace to SMEs in London

• Investing in properties with potential- Income growth- Capital growth- Alternative use

• Increasing scale of portfolio, spreading overheads and developing the brand

• The right financial platform

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

• c.4,000 customers over 105 estates; 5.8 million sq .ft

• Over 6,600 enquiries a year; market leading brand in fragmented market

• A simple product offer

• Superior service from in-house management

• Customer focused

The Business – Hotelier of Space to SMEs

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Our Buildings

Westbourne - external Westbourne – Internal

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Customer Profile

Median % of median

turnover Year of start 1996 —

Turnover £250,000 —

Overheads £90,000 36

Profits £40,000 16

Rent £12,000 4.8

Typical Workspace tenant*:

Rent under 5% of turnover

Average rents at 31 March 2006: £9.58 per sq. ft

Average customer in say 1,100 sq.ft.

Average rent per week £203

*Source: Kingston University survey of over 200 customers. Spring 2004

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Our Customers

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Total Percentage of Customers by DTI Categories

DTI Classification of Tenants

12% 1%

2%

1%

6%

18%

45%

10%

5%

Manufacture

Retail

Cons truction

Utilities /Infras tructure

Organisations

Des ign & Creative

Services

Storage & Dis tribution

Unclass ified

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Workspace Group portfolio 2005/06

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Trading: Occupancy & Rents

31 March 2005 31 March 2006

• Core occupancy 90.2% 86.7%Overall occupancy 88.3% 84.3%

• 75% of change relates to opportunities to improve values

• Like-for-like average rents increased by 3.6% to £9.48 per sq.ft.

14

Acquisitions

• 111 Power Road, Chiswick, London W4

• Marshgate Business Centre, Stratford, E15

• Evelyn Court, Deptford, SE8

• Uplands Business Park, Walthamstow, E17

• Kennington Park, Kennington, SW9

• Horton Road Industrial Estate, West Drayton, UB7

• Sundial Court, Kingston-upon-Thames

• Park Royal Business Centre, NW10

• 10 Bowling Green Lane, London EC1

• Langdale House, Borough, SE1

Total £127.42mInitial Yield 6.4%Reversionary Yield 8.5%

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Disposals

• Payne Road Studios and 5 Payne Road, Bow, E3

• Alpine Park, Beckton, London E6

• Magenta Portfolio

Total £47.60m

Exit Yield 6.4%

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Acquisitions & Disposals- 5 year Record

Acquisition & disposals: 5 year record

0

20

40

60

80

100

120

140

2002 2003 2004 2005 2006

£m

Acquisition value Disposal value

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Financial Performance

Mark Taylor

Workspace Group PLC

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2006 Results: P & L Account

Trading

2005

£m

Trading

Operations

£m

Other

£m

Total

2006

£m

Revenue

Rent Payable and direct costs 40.9 46.3 0.1 46.4

Administrative Expenses (7.6) (9.2) 0.1 (9.1)

Operating Profit 33.3 37.1 0.2 37.3

Surplus on disposal of investment properties

Gain on changes in fair value

Net interest payable

-

-

(18.8)

-

-

(22.0)

3.4

131.7

(1.4)

3.4

131.7

(23.4)

Profit before tax 14.5 15.1 133.9 149.0

Tax (4.3) (3.4) (39.0) (42.4)

Profit after Tax 10.2 11.7 94.9 106.6

Basic earnings per share 6.3p 7.1 58.0p 65.1p

Diluted earnings per share 6.2p 7.0 55.7p 62.7p

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Title

Heading

Insert text here

31/03/2006

£m

31/03/2005(restated)

£m

Investment Properties 962.2 716.5

Other Assets 10.6 9.1

Creditors (excluding borrowings) (31.9) (29.0)

Funding: Short Term Borrowings (3.6) (0.8)

Long Term Borrowings (426.1) (322.4)

Cash and Investments 1.7 1.2

Deferred Tax Provision (122.6) (86.1)

Net Worth 390.3 288.5

NAV Per Share – adjusted £3.12 £2.30

Net Borrowings (428.0) (322.0)

Gearing 110% 112%

2006 Results: Balance Sheet

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Key Elements on Valuation

• ERV £66.5m; 90% ERV = £59.8m; Current net rental

income £47.1m leaving £12.7m of potential

• Yield (at ERV) 6.9%

• Capital value £162 per sq. ft

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IPD Performance

Total Return (p.a.) One

Year

Three

Years

Five

Years

Ten

Years

Workspace Group 23.0 18.9 17.0 19.3

IPD March Universe 20.9 16.6 12.9 13.0

Workspace Group

Percentile Rank

IPD Comparator

23

20.7%

22

14.7%

5

10.8%

Top

12.8%

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Benchmarks Performance

Internal Benchmark comparison shows:

Performance Measures

2006 2005 2004 2003 2002

Turnover per member of staff (£000) 410 380 332 314 294

Year-end investment in property per member of staff (£000)

6,248 5,006 4,092 3,261 2,984

Administration costs as a percentage of revenue

14.4% 13.9% 13.9% 14.6% 15.3%

Total return on equity 40.7% 27.1% 26.2% 15.0% 20.6%

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Joint Venture With Glebe

Harry Platt

Workspace Group PLC

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Latent Value

• 45% portfolio subject to intensification

- change of use on 10 year basis

• Top 26 estates being worked on (5 year target)

• Comprise: 2.2m sq.ft. of space Value (March 2006) £312m.

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Releasing Latent Value

• Pace is quickening

- External driver = London

- Internal driver = Time assets held

• Our approach - Balance existing / future uses- Minimise on balance sheet development risk- Participate in value

- Right Skills – Right Partners

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Properties in Joint Venture: Timings

Development Timings

2007 2008 2009 2010 2011

Grand Union

Bow Enterprise Park

Wandsworth Business Village

Zennor Road Trading Estate

Hamilton Road

Parkhall Road B

Riverside Business Centre

Tower Bridge H

Tower Bridge E

Highway Business Park

Tower Bridge remaining

Parkhall Road A

Rainbow Industrial Estate

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Why Glebe?

• Entrepreneurial approach – David Phillips

• Known to Workspace

• Experience of relevant property schemes

- Site assembly / Change of Use / Development

• Substantial financial resources

• Size of transaction

• Specific Director for JV

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Glebe Joint Venture

• 11 properties acquired by JV - 50% owned by Workspace/ Glebe

• Workspace responsible for management - Glebe for promotion

• Value of properties into JV £8.6 million above March valuation

• Equity stake of Workspace £20 million

• Company retains 55% uplift from original Workspace properties

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Transaction Impacts

£mSales Proceeds 146.0Book Value (137.4)Costs provision (3.0)Profit 5.6

Net Worth at 31/03/2006 390.3Revised net worth 395.9

Sales proceeds 146.0Equity Stake (20.0)Costs provision (3.0)

123.0Borrowing 31/03/2006 428.0Adjusted Borrowing 305.0Gearing 77%

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Business Plan - Targets

Harry Platt

Workspace Group PLC

31

The Business Plan: As stated September 2003

Aim: Continuing to grow shareholder value in 5 years to

September 2008 - £1billion portfolio

- 5% per annum rental increases

- No movement in yields / occupancy

- Conservative gearing

- Annual investment £50m - £60m

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New Plan: Continue to grow Shareholder Value

How?

• Our growing market place of SMEs

• Targeting areas

• Rental growth

• Refurbishments

• Mixed use intensification of sites

• Continuing acquisitions – where we see value

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Focusing on Growth: London Dynamics

London is a global city

London is a growing city

Centre of finance – commerce – culture – knowledge – creativity – power and

influence

London’s population likely to grow by

800,000 to 8.1m by 2016

The working population will rise by 516,000

Net internal migration continues to run at

about 100,000 a year

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Focusing on Growth: London SMEs

London is theSME incubator

• 1.07m employ 1 - 20 people

• 30% of these are in London and SE

• 85% of those businesses with employees in London have less than 10 employees

• In 2005, London accounted for 22% (87k) of all new business starts in the England and Wales

• London has the highest concentration of the fastest-growing and most productive business sectors in the UK

London is our Marketplace

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Focusing on Growth: Rents

Rental Growth in Core Portfolio (The 55%!)

Average Rent per sq.ft

Current £9.58

£1 increase £10.88

5% per annum:

5 years £12.27

Affordable?

£20 a week extra

£57 a week extra

36

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Focusing on growth: Refurbishments

Scheme Description Current Net Rent £000

30 May

Market Rents

£000

Southbank, SE1 Full refurbishment of external envelope, internal M&E etc, partial refurbishment and sub division

1,049 2,310

Clerkenwell, EC1

Major extension and refurbishment of centre.

14 1,655

Enterprise, SE1 Extension, refurbishment and sub-division of space to create enlarged business centre

652 1,915

Power Road, W4 Full internal re-modelling and refurbishment to form new business centre

166 1,150

Total 1,881 7,030

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Summary

1. Releasing Latent Value

- Glebe Joint Venture- Other Added Value/Refurbishment programmes

2. Focus on London

- International City- SME Incubator

3. Robust and Growing Business Model- ‘THE’ SME Brand- Scale of property knowledge- Trusted Partner

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APPENDIX

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Total Shareholder Return

Workspace Total Shareholder Return (TSR) Index

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Workspace FTSE Sm all cap FTSE 250 FTSE Real Es tate FTSE All share

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5 Year Share Price

Workspace 5 year share price

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Workspace FTSE Small cap FTSE 250 FTSE Real Estate FTSE All Share