Harsco Investor Presentation

8/3/2019 Harsco Investor Presentation

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Investor Relations Handout

Metals & Minerals Infrastructure Rail Industrial

The world’s largest providerof on-site, outsourcedservices to the global metalsindustries.

-

A global leader in highlyengineered rental scaffolding,shoring, concrete formingand other access-relatedservices. A solutions

A global leader in railwaytrack maintenanceequipment, services andsolutions

A market leader in energy-efficient air-cooled heatexchangers, heat transferequipment, and industrialgrating products.,

mineral-based products for arange of commercial andindustrial uses.

Environmental solutions forlobal resources recover .

provider to majorinfrastructure, industrial plantmaintenance, andconstruction projects.

We Help Build the World



Safe Harbor Statement

This program contains forward-looking statements based on management’s current expectations, estimates

and projections. All statements that address expectations or projections about the future, including statements

a out t e company s strategy or growt , pro uct eve opment, mar et pos t on, expecte expen tures an

financial results are forward-looking statements. Some of the forward-looking statements may be identified bywords like “may,” “could,” “believes,” “expects,” “anticipates,” “plans,” “intends,” “projects,” “indicates,” and

similar expressions. These statements are not guarantees of future performance and involve a number of

risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this

release and in documents filed with the Securities and Exchange Commission by Harsco, particularly its latest

annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differmaterially from those stated. These factors include, but are not limited to, changes in the worldwide business

environment in which the Company operates, including as a result of the current global financial and credit

crisis; changes in the performance of the equity and debt markets; changes in governmental laws and

regulations; market and competitive changes, including pricing pressures, market demand and acceptance for

new roducts services and technolo ies unforeseen business disru tions in one or more of the man

countries in which the Company operates; the seasonal nature of the Company’s business; our ability to

successfully enter into new contracts and complete new acquisitions in the timeframe contemplated; the

financial condition of the Company’s customers; the successful integration of the Company’s strategic

’

We Help Build the World | 1

, .

Company undertakes no duty to update forward-looking statements.



Harsco Profile

.Revenue Mix

Services 83%Harsco Metals &

ro uc s

International 67%

U.S. 33%

nera s

$1.46

Footprint

Total number of countries: 52

Number of locations: Approximately 350HarscoInfrastructure

48%

34%

2010 Geographic Revenue Mix

Harsco

Industrial

$0.23

$1.0310%

ROW25%

Harsco Rail

$0.31

NorthAmerica

36%

Western

Europe39%




Strategic Overview

2008-2010 2011 2012-2015

Environment: Significant decline Stabilization of Infrastructure Full realization of benefits fromn revenues, an ue oglobal financial and economic

crisis

Countermeasures: Significantcost reductions and lowering of

us ness

Metals, Minerals, Rail, andIndustrial continue to perform well

Management team growing

rans orma on n a ves

Full benefits from restructuringinitiatives

Benefits from investments inrea -even po nt o a us ness

platforms

Key hires and organizational

reorganization and transformation

cohesiveness

Benefits from restructuring,countermeasures and

transformation are realized andsustained

emerging markets realized

Benefits from use of DiscretionaryCash Flow

Growth in revenues, EPS and Considerable investment in:

Talent; Lean ContinuousImprovement; Global SupplyChain; Developing EmergingMarkets; Innovation; Branding;and Global Computer and

Improvement in revenues, EPSand EVA

Strong discretionary cash flowand flexible balance sheet

EVA

Gradual improvement in non-residential construction markets isa plus

ng neer ng ystems

Strong free cash flow generation.Maintained a flexible and strongbalance sheet; retainedinvestment grade ratings

Investment in growth projects,principally Metals, Minerals, andRail


Transformation Transition Future



Balanced Capital Allocation Strategy

Astute Capital AllocationDividends

Return to Shareholders: Dividends andShare Repurchases

R e d u c t i o

n

Organic Growth: Growth CAPX andJoint Ventures

Inorganic Growth: Acquisitions

D e b

CASH

FLOW(1)

Debt Reduction

A c q u

i s i t i o

n s

S h a r e

R e p u r c h a s e s

(1) Discretionary Cash Flow Represents: Cash flow from operating activities as noted on the Company's


cash flow statement plus asset sales, less maintenance capital expenditures, that is CAPX required tosustain current revenues stream. This excludes all growth CAPX. Management believes discretionary cashflow provides a relevant measure of liquidity and a useful metric for assessing Harsco's ability to funddividends, debt reductions, acquisitions, growth CAPX and share repurchases



Harsco Corporation

Roadma to 2015 Revenue

$4.2B

Gradual recovery of keynonresidential construction

$3.0B markets, 2012 - 2015

No material change in FX ratesfrom current levels

Contribution from key organicinvestments in Metals, Mineralsand Rail

2010 2011 2012 2013 2014 2015 Target

Assumes no acquisitions




Harsco Corporation

2015 EPS Growth Com onents Brid eIncremental earnings potential range

$2.30 - $3.15

Additionalimpact

2010Actual

$0.91

$0.50 - $0.75

$0.75 - $1.00

$0.50 - $0.75$0.55 - $0.65

? ? ?

2010 (E) Infrastructure

Business

Restructuring

Global Supply

Chain and Lean

Initiatives

Organic Growth

Projects

Use of

Free Cash Flow

Stronger Market

Recovery /

Acquisitions

Procurement

Dividends

Joint Ventures


Offshore Services

Consolidation of GlobalAdministration Centers

Share Repurchases

Debt Reduction

(E) Excludes fourth quarter Infrastructure restructuring charge



Harsco Metals and Harsco Minerals

Harsco Metals

Provides environmental and lo istics

2010 Geographic Balance

solutions to metals producers in the

steel, aluminum, zinc and copperindustries. Operations at over 160 sitesin more than 30 countries

America

20%

WesternEurope

45%

Rest of theWorld35%

Harsco Minerals

Provides environmental services to the Sources of Revenue Bridge 2010-2015.

Harsco Minerals utilizes innovative metalrecovery to give customers a costeffective raw material for productionwhile manufacturing a full range of

4 2 0

, 5 8 1

4 9 1

1 , 9

7 5

161

(90)

140 115 104125

CAGR 6.8%

Organic New

m nera pro ucts serv c ng t e a ras veblasting, roofing, agriculture, turf, andmining industries

1

, 1 1 ,

2 0 1 0

∆ i n

C u s

t o m e r

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A d j u s

t e d

B a s e

L o s

t t o

C h u r n

B a s e

R e

t e n

t i o n

h a r e

G a

i n

M a r k e

t

o s

i t i o n

i n g

A d j a c e n

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M a r k e

t s

e w

L i n e s

B u s

i n e s s

2 0 1 5

We Help Build the World | 7 Environmental Solutions for Global Resources Recovery

S P N o f



Harsco Metals and Harsco Minerals

• Engineered Solutions

• Indispensible Partner

• Services

• Vendor - Suppliers

’Leveraged

• Value-added Products

–Disaggregated

• Landfills

• Environmental Solutions andInnovations

• Emerging Markets

• Commodity

• Developed Markets




Harsco Infrastructure

2010 Challen es & Accom lishmentsHarsco Infrastructure

A global leader in highly engineered rental scaffolding, shoring,concrete forming and other access-related services. A

2010 Geographic Balance

solutions provider to major infrastructure, industrial plant

maintenance, and construction projects. Operating atapproximately 144 branches in approximately 38 countries

Restructuring Summary

North

America18%

WesternEurope

Rest of theWorld

Charge of over $84 million taken in 4th Quarter 2010.Removed over 80 locations and approximately800 people across all regions of the world,with the focus being North America and Europe

In total for 2010, reduced locations by approximately 110

24%

ranc es or

2011 savings expected to approximate $43 million,with full annualized savings over $60 millionbeginning 2012

Accom lishments

2015 Target

North

Integrated Harsco Infrastructure into one global platform

Integrated all acquisitions

Successfully executed global restructuring of the business

Increased marketing and sales focus

America18% WesternEurope

49%Rest of theWorld33%


Implemented global asset management system




Business Model Transformation

• Globally integrated & leveraged

• Standardized and disci lined

• Silo’d – Highly Disaggregated

• O erate different standards

stor c tate – an u ure a e

• Proactive sales structure - partners

• Knowledge based solutions providers

• Order takers - vendors

• Rental suppliers• Holding traditional – growing emerging

• Effective product & CAPX managementwith global focus

• Focused on traditional markets

• Lack of product & CAPXDiscipline with regional focus

• Streamlined decision process

• Balance short and long term goals

• Consultative decision process

• Driven by short term objectives





Market Sector

arge arge

Maintenance

Infrastructure –Heavy Civil

IndustrialMaintenance

IndustrialMaintenance

Commercial and

Infrastructure –Heavy Civil Infrastructure –

Heavy Civil

u - am yCommercial and

Multi-FamilyCommercial and

Multi-Family





2011 & Be ond Takeawa Messa eRestructuring – Platform Optimization and Product Management

Right-sized the platform and structure to align with target opportunities and market focus

Reduced break-even point and increased focus on variable vs. fixed platform to better manage the

impact of market variance

Rationalized inventory and increased inventory effectiveness with a global inventory management

Strategic Focus – Sales Effectiveness

Proactivel levera e ke client relationshi s and tar etlarger, complex projects in both existing and remote locations

Increase focus and market share in emerging marketsand maintain position in traditional markets

lower total execution costs – knowledge-based solutions

Revenues targeted CAGR of 7% through 2015




Harsco Rail

Stron Global Markets Su ort Or anic Growth

Europe

• Additional contract service opportunities• New product development

Canada

• New equipment sales• NTC contracting

China• 11th 5- ear lan com lete 2012

• Equipment purchases

Ind ia

• Dedicated Freight Corridor

• Track Renewal

Nor th Amer ica

• High Speed Rail investment• New equipment for Ballast & Switch maintenance• Expanded service solutions

Middle East

• 12th 5-year plan begins 2011-12• Metro market• Private operators• Parts & service growth

• au con nues rainvestment

• UAE new track project• GCC railway network

Brazi l

• New Track Construction• Grinders• Tie equipment

Aust ra l ia• Equipment manufacturing & sales• Contracting services


Global Railway Track Maintenance Solutions



Harsco Rail

Balanced Portfolio 2011

North America

Equipment

58%

Parts21%

China

28%

Services Western Europe13%

19%

a ance pro uc serv ce por o o s reng ens mar e pos on New product development leading to market share growth and 15+ year Parts opportunity

Globalizin Parts business …70 Harsco Rail Grinders in China b 2012




Harsco Rail

Sources of Revenue Brid e 2010-2015

450

In USD Millions

$50

350

400 CAGR 4.8%

$55($88)

250

300

$317

100

150

0

50

2010 China M OR M arket Share New Products Ne w Se rv ice s 2015


Excludes potential acquisitions



Harsco Industrial

CAGR = 14%Projected Revenue = $450 million


Excludes potential acquisitions



Harsco Corporation

Takeawa Messa e Transformation journey will deliver considerable benefits in the next five years

Our sound balance sheet, underpinned by strong discretionary cash flow, provides financialflexibility to continue investing in growth

Significantly lower cost structure and operating leverage provides a solid foundation forimprovement in earnings and EVA

Emerging markets/rest of the world presence continues to grow and will reach 35% by 2015


Documents

Harsco Investor Presentation