Workspace Group PLC RANDSTAD REIS LONDEN 2006/STUDY TOUR LONDON

Regeneration in London: Comprehensive View and Incremental Approaches

Harry Platt, Chief Executive Workspace Group PLC 23 June 2006 1

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 2

The Business – Hotelier of Space to SMEs “ 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 3

Ten Year Results

Five Year Compound Growth Ten Year Compound Growth Adjusted NAV per share Property at Valuation Trading PBT Trading EPS Dividend per share 20.9% 21.3% 9.9% 10.2% 10.2% 21.9% 22.6% 13.8% 13.0% 11.2% 4

History Growth in assets and shareholder value

• Founded in 1987 • Listing on London Stock Exchange 1993 • Last equity issue 1994 • Now: Gross Assets over £950 million 5

Our Buildings

The Leathermarket Westminster Business Square

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Our Buildings

Westbourne - external Westbourne – Internal

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Our Buildings

The Quadrangle, SW6 Southgate Office Village, N14

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Our Buildings

Southbank House, SE1 Homesdale Business Centre, Bromley

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Changing Environments

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Dynamic Environments

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Customer Profile

Typical Workspace tenant*:

Year of start Turnover Overheads Profits Rent

Rent under 5% of turnover Median

1996 £250,000 £90,000 £40,000 £12,000

% of median turnover

— — 36 16 4.8

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 12

Our Customers

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Total Percentage of Customers by DTI Categories DTI Classification of Tenants

5% 10% 12% 1% 2% 1% 6% 45% 18% Manufacture Retail Cons truction Utilities /Infras tructure Organis ations Des ign & Creative Services Storage & Dis tribution Unclas s ified 14

Workspace Group portfolio 2005/06

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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 16

Focusing on Growth: London Dynamics London is a global city

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

London is a growing city

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 17

Focusing on Growth: London SMEs

London is the SME 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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Clusters e.g.The Southbank Portfolio 1. Kennington Park Studios, SW9 2. Westminster Business Square, SE11 3. Southbank House, SE1 4. Linton House, SE1 5. Great Guildford Business Centre, SE1 6. The Leathermarket, SE1 7. Enterprise Estate, SE1 8. Hatfield House, SE1 9. Tower Bridge Business Centre, SE16 Scale = 1:25000 9

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Summary Workspace – Leader in a Growing Marketplace Focused on long term sustainable growth

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