- CLS Holdings reported strong interim results for the first half of 2014, with NAV up 11.3% and profit after tax increasing 173.1% compared to the same period in 2013. - The company benefited from healthy growth in property valuations, particularly in London, as well as enhanced cash generation from acquisitions made in 2013. - CLS maintained a low cost of debt of 3.73% and a record low vacancy rate of 3.5% across its diversified property portfolio, which is concentrated in major European cities like London, Paris, and Berlin.

1. Interim Results
2014
1
CLS Holdings plc Annual Report & Accounts 2013

2. Contents
Overview
Financials
Portfolio
Our Markets
Summary
2
Henry Klotz
Executive Vice Chairman
John Whiteley
Chief Financial Officer
Simon Wigzell
Head of Group Property
Taking advantage
of Opportunities

3. Property investments by value
Rest of UK
8%
London
47%
France
19%
Germany
18%
Direct
5%
Indirect
3%
Sweden
About CLS
• Specialist in high-yielding offices
and opportunistically adding value
• Cash generative: high yield (6.8%)
vs low cost of debt (3.73%)
• Rental income £84.0m
Property portfolio £1.2bn
• Management strong alignment of
interest via shares
3
30 June 2014

4. Achievements in H1 2014
Benefiting from geographical diversity
• Healthy growth in NAV
– Strong growth in London valuations
– Enhanced cash generation as impact of 2013 acquisitions comes through
• Good progress on developments at Spring Mews, Clifford’s Inn and Vauxhall Square
• Record low vacancy rate of 3.5% (Dec 2013: 4.4%) driven by significant lettings in
France and Germany
• Disposal of Cambridge House, W6 for £29.5m at 32% above Dec 2013 valuation
• Low cost of debt maintained
4

5. Contents
Overview
Financials
Portfolio
Our Markets
Summary
5
Taking advantage
of Opportunities

6. Financial Highlights
In Good Health
• EPRA NAV up 11.3% to 1,412.0p
(Dec 2013: 1,268.4p)
• Profit after tax up 173.1% to £62.0m
(2013: £22.7m)
• EPRA EPS up 13.0% to 37.3p (2013: 33.0p)
• Interest cover 3.6x (2013: 3.8x)
• Low cost of debt 3.73% (Dec 2013: 3.64%)
• Half year distributions up 5.0% like-for-like;
proposed £5.5m buy-back at 1 in 119 at 1,500p
6

7. 1,268.4
1,412.0
51.2
104.4
11.9
-3.7
-20.2
1,480
1,440
1,400
1,360
1,320
1,280
1,240
1,200
1 Jan 2014 Underlying
profit
properties
revaluations
buy
backs
30 Jun 2014
Strong NAV Growth
Movement in EPRA NAV
Pence
7
1 Jan
2014
Underlying
Profit
Revaluation of
Properties
Other
Revaluations
Tender Buy
Back
FX 30 Jun
2014

8. Strong Income Generation
Profit after Tax
14.2
-3.5
1.8
7.2
3.0
22.7
16.3
39.6
7.0
-0.9
-
62.0
80
60
40
20
0
-20
2013 2014
For the six months to 30 June (£m)
8
EPRA
+ Property
+ Gain on
+ Gain / (loss) on
Profit after Tax revaluation disposals sale of bonds + Other = Profit after Tax

9. 129.8
21.8
-10.0
29.3
-31.1
-53.6 -1.9
69.4
69.4 84.3
300
250
200
150
100
50
0
At 1 Jan 2014 From
operations
Tender buy-back
Sale of
properties
Capital
expenditure
Net loan
repayments
Other At 30 Jun 2014
Very High Liquidity
Movement in Liquid Resources
£m
9
Cash Corporate Bonds
153.7
199.2

10. Debt Profile
As at 30 June 2014
250
200
150
100
50
0
Amortisation Bullet Repayments
£m
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
10
2015: 4 loans
2016: 2 loans account for £105m
• Swedish bond
• Loan on a building let until 2026

11. Diverse Financing
Strategy to lower risk
• Spread risk
– 23 banks (71%)
– 1 secured note (11%)
– 1 debenture (6%)
– 2 unsecured bonds (12%)
– Ring-fencing model
• 76% fixed or hedged
• 67% floating rate
• Weighted avg. cost of debt 3.73%
(Dec 2013: 3.64%)
• Balance sheet LTV 50.3% (Dec 2013: 52.8%)
Hedging of Finance
11
Hedged
Floating
33%
Fixed
43%
Capped
24%
Unhedged

12. Contents
Overview
Financials
Portfolio
Our Markets
Summary
12
Taking advantage
of Opportunities

13. Govt.
51%
Other
26%
Major corporates
23%
Occupiers by sector
Property Portfolio
Overview
• Diversified investment portfolio,
primarily in major European cities:
– 473 customers in 109 properties
– 539,000 sqm1
– £84.0m contracted rental income
– £161 per sqm average rent
• 61% of rents indexed
• Secure income: 74% from
governments & major corporates
• WAULT 6.7 years
(5.7 years to first break)
• Core activity is cash generating investments
(>85% of portfolio)
1. Excludes 24,200 sqm of developments 13

14. Portfolio Performance
• New lettings in London achieved at 7% above Dec 2013 ERVs
• ERV movements in H1 2014:
• London rents moved from £0.4m net over-rented to £1.9m net reversionary
• Portfolio broadly rack-rented
Rented in line with market rates (£m pa)1
25.0
20.0
15.0
10.0
5.0
0.0
Rent expiring Current ERV of rent expiring
1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10 year Later
14
- London
- Rest of UK
- Germany
+8.7%
+1.7%
+1.3%
- Sweden
- France
-0.6%
-1.4%
1. Current ERVs assume no rental growth

15. Actively Managed Portfolio
In-House Property Management
• +100 asset management transactions in 6 months
• 12,000 sqm expired; 17,140 sqm let/relet/regeared
• Lowest ever vacancy rate of 3.5% (Dec 2013: 4.4%)
• Vacancy rate consistently below comparable European average
Maintaining Low Vacancy Rate
12.5%
10.0%
7.5%
5.0%
2.5%
0.0%
CLS Portfolio Vacancy Rate European Avg
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2014
European Average: RREEF Real Estate & BNP Paribas 15

16. Investment Property Portfolio
Total uplift £45.3m, of which £44.0m was in London
At
30 June 2014
Contracted
rent
£m
Valuation
£m
Revaluation
in local
currency
EPRA
Net Initial
Yield1
%
Vacancy
by rent
%
WAULT
(Years)
Contracted
rent
£ psm
Capital
Value1
£ psm
London 31.0 570.3 ñ 8.4% 5.6 4.0 7.9 218 3,327
Rest of UK 13.3 98.7 ñ 0.8% 12.7 1.0 7.1 140 1,006
France 17.5 230.8 ò 1.0% 6.6 7.1 4.6 194 2,407
Germany 16.0 209.9 ñ 1.4% 6.7 1.5 8.0 107 1,378
Sweden 6.2 59.1 ñ 0.2% 8.7 0.6 2.9 139 1,303
Total
portfolio 84.0 1,168.8 ñ 4.0% 6.8 3.5 6.7 161 2,022
16
1 Excludes development sites: Spring Mews and Clifford’s Inn

17. Movement in Rental Income
6 months to 30 June
35.9
35.9
45.2 44.6 44.1 43.0
42.1
42.1
9.3 0.2
-0.8 -0.5
-1.1 -0.9
50
45
40
35
30
25
20
Rental
Income 2013
Acquisitions Indexation Disposals Lettings &
Expiries
Surrender
Premium
FX Rental
Income 2014
£m
17

18. Movement in Investment Properties
1,132.9
1,168.8
2.0
28.8 2.9
45.3
-22.4
-20.7
1,220
1,200
1,180
1,160
1,140
1,120
1,100
Portfolio Value £m
18
1 Jan
2014
Additions Development Refurbish Valuation
Uplift
Disposals FX 30 Jun
Capex 2014

19. Adding Value
Sustainability
London & Rest of UK
• 800 sqm refurbishment at Falcon House
achieved SKA Gold sustainability standard
• 11.3% reduction in CO2 emissions per sqm
in 12 months to April 2014
• Ground source energy system completed
at Spring Mews
• Completed third photovoltaic array
Sweden
• 9% reduction in electricity consumption
• 38% reduction in waste generation
France
• 11% reduction in electricity consumption
19

20. Adding Value: Vauxhall Regeneration
Intense Activity
US Embassy
Spring Mews
TfL
Station upgrade
Vauxhall Square
20
Dutch Embassy
Possible
Chinese Embassy
Wanda
5 star hotel & residential
Berkeley Group
2 schemes
St Modwen
Barratt / Sainsbury BT
Vauxhall
Cross
Christies
Conditional
long lease
Bondway Store

21. Adding Value: Vauxhall Square, SW8
Overview
Full consent in place for
143,000 sqm mixed-use scheme
• 520 apartments
– 410 private in two
50-storey towers
– 110 affordable homes
• 22,732 sqm offices
• 3,119 sqm of retail
• 3,777 sqm multi-screen cinema
• 278 bedroom hotel
• 123 bedroom suite hotel
• 359 student bedrooms
• Development cost c.£500m
21

22. Adding Value: Vauxhall Square, SW8
Good Progress
Achievements since 1 Jan 2014
• Conditional exchange with student
operator to build and manage
- Good progress on meeting
conditions
- Ground investigation works
under way
- Application to increase consent
by 95 student bedrooms
- Attractive terms, no Group cash
involved
- On site 2015
• Revised application in preparation
to upgrade to four-star hotel
• Section 106 variation agreed
improving phasing flexibility
22

23. Adding Value: Spring Mews, SE11
Close to Completion
Gross internal area 20,800 sqm
• 378 student rooms
– 90% of rooms pre-let for 2014/15
– Including 210 rooms pre-let to
Roehampton University on 10 year deal
– Opens September 2014
23
• 93 bedroom long-stay hotel
– Intercontinental Hotels Group
Staybridge brand
– Opens Q4 2014
• 1,000 sqm offices

24. Adding Value: Spring Mews, SE11
Close to Completion
Phase One
- Development cost c.£55m ex. land
- Estimated rental value £5.5m
- Estimated capital value >£80m
- Funding to be sought H1 2015
24
Further Opportunities
- Planning consented for additional
22 student suites
- Additional floors subject to planning

25. Adding Value: Clifford’s Inn, EC4
Close to Completion
3,423 sqm office refurbishment
and 8 residential apartments
• Construction to complete Q4 2014
• £10.1m refurbishment cost
• Estimated income £1.6m pa
• Rental values +10%
since beginning of year
• Estimated capital value >£26m
25

26. Adding Value
More to come in next 12 months
• Annualised rental stream
– Spring Mews >£5.5m
– Clifford’s Inn >£1.6m
• Valuation uplift on developments to be realised in 2014/2015
– Spring Mews & Clifford’s Inn
• Profit on disposal
– Vauxhall Square student building 20151
1. Subject to discharging conditionality 26

27. Contents
Overview
Financials
Portfolio
Our Markets
Summary
27
Taking advantage
of Opportunities

28. London
Momentum continues
M25 Office Vacancy Rates (%)1
10.0
9.0
8.0
7.0
6.0
5.0
Q2 2004 Q2 2006 Q2 2008 Q2 2010 Q2 2012 Q2 2014
Occupational market
• Office vacancy at 6.4% around M25 - lowest in last 10 years
• Driven by:
– Obsolete buildings
– Lack of development stock
– Residential conversions reducing office stock
1. Source: Knight Frank
• Leading to rental growth
Investment market
• Investor demand continuing to outweigh supply
• Investment yields in suburbs have hardened by over 150 bps in last six months
28

29. Continental Europe
Selective Investment Opportunities
Germany – Mixed economic picture
• Forecast for 2014: GPD growth 1.9%; inflation 1.1%
• Historically high employment levels; unemployment only 5.1%
• Vacancy levels have fallen since mid-2010 and rents rising modestly
• Most advantageous availability of bank debt
France - Stagnant economy
• Forecast GDP growth 0.7% for 2014
• Unemployment at 10.1%; unlikely to fall
• Letting activity in Paris 24% higher than 2013
• Investment market transactions in Paris Q2 2014 double that of Q2 2013
Sweden - Stable
• Forecast GDP growth 2.5% for 2014
• 0.0% 2014 inflation forecast
• Yield compression in Stockholm secondary market driven by investment demand
29

30. Contents
Overview
Financials
Portfolio
Our Markets
Summary
30
Taking advantage
of Opportunities

31. Summary
Strong Performance
• Driven by London portfolio
• Cash generation increased
by >20%
• Active in-house management
delivering lowest ever vacancy rate
• Developments adding
significant value
• Retaining high levels of liquidity
for future opportunities
31

32. Appendices
CLS Holdings plc www.clsholdings.com
86 Bondway Tel: +44 (0) 20 7582 7766
London Fax: +44 (0) 20 7820 7728
SW8 1SF Email: enquiries@clsholdings.com
32
CLS Holdings plc Annual Report & Accounts 2013

33. Corporate Bond Portfolio
At 30 June 2014
Banking Insurance
Travel and
Tourism
Food
Producers Other Total
Value £36.6m £5.3m £10.7m £4.9m £26.8m £84.3m
Running yield 10.5% 6.7% 6.8% 9.0% 7.4% 7.5%
Issuers Societe Generale
Bank of Ireland
Deutsche Bank
Commerzbank
Credit Agricole
Rothschild
SNS Bank
Unicredit
Barclays
Investec
Lloyds
RBS
Brit Insurance
Phoenix Life
British Airways
Stena
SAS
TUI
Boparan
Findus
Vedanta Resources
Telecom Italia
Arcelor Mittal
Corral Finans
Manutencoop
Century Link
Stora Enso
Enel
Dell
33

34. London and the South East
• 33 properties
• 148,000 sqm
34

35. Rest of UK
• 32 properties
• 98,000 sqm
35

36. France
• 26 properties
• 17 in Paris
• 96,000 sqm
LUXEMBOURG
36
LILLE
PARIS
LYON
ANTIBES

37. Germany
• 17 properties
• 152,000 sqm
37
SÜDERHASTEDT
HAMBURG
BERLIN
BOCHUM
DÜSSELDORF
LANDSHUT
FREIBURG MUNICH

38. Sweden
1 property
• 45,000 sqm office park
1 associate
• Cood Investments
1 investment
• Catena AB
– 150,000 sqm mixed-use
development in Stockholm
– SEK 4.4 bn
logistics portfolio
38
VÄNERPARKEN
GOTHENBURG
STOCKHOLM

39. Vauxhall & Nine Elms
Central London’s largest regeneration
39
Vauxhall Square
Spring Mews
Conditional
long lease

40. EPRA Profit After Tax
£m 2014 2013 Difference
Rental income 42.1 35.9 6.2
Other income 0.8 0.7 0.1
Net service charges (2.1) (1.6) (0.5)
Net rental income 40.8 35.0 5.8
Expenses (8.0) (7.5) (0.5)
Operating profit 32.8 27.5 5.3
Finance income 4.6 5.8 (1.2)
Finance costs (13.0) (12.4) (0.6)
FX (1.7) 0.4 (2.1)
Share of associates (1.4) (1.8) 0.4
21.3 19.5 1.8
Tax (5.0) (5.3) 0.3
EPRA Profit after Tax 16.3 14.2 2.1
40