Investor Relations Handout

Metals & Minerals

The worlds largest provider of on-site, outsourced services to the global metals industries. Environmentally responsible, Environmentally-responsible mineral-based products for a range of commercial and industrial uses. Environmental solutions for global resources recovery.

Infrastructure
A global leader in highly engineered rental scaffolding, shoring, concrete forming and other access-related services. A solutions provider to major infrastructure, industrial plant maintenance, and construction projects.

Rail
A global leader in railway track maintenance equipment, services and solutions

Industrial
A market leader in energyefficient air-cooled heat exchangers, heat transfer equipment, and industrial grating products.

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Safe Harbor Statement

This program contains forward-looking statements based on managements current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about th companys strategy f growth, product d b t the t t for th d t development, market position, expected expenditures and l t k t iti t d dit d financial results are forward-looking statements. Some of the forward-looking statements may be identified by words 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 differ materially 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 products, services, and technologies; unforeseen business disruptions in one or more of the many p , , g ; p y countries in which the Company operates; the seasonal nature of the Companys business; our ability to successfully enter into new contracts and complete new acquisitions in the timeframe contemplated; the financial condition of the Companys customers; the successful integration of the Companys strategic acquisitions; and the amount and timing of repurchases of the Companys common stock, if any. The Company s stock any Company undertakes no duty to update forward-looking statements.
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Harsco Profile

2010 Revenues $3.0 billion $3 0

Revenue Mix

Harsco Metals & Minerals Mi l $1.46

Services Products P d t International U.S.

83% 17% 67% 33% Footprint

48% 34% 10%

Harsco Industrial $0.23 Harsco Rail $0.31 Harsco Infrastructure $1.03

Total number of countries: 52

8%

Number of locations: Approximately 350 2010 Geographic Revenue Mix

ROW 25% North America 36% Western Europe 39%

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Strategic Overview
2008-2010
Environment: Significant decline in i revenues, EPS and EVA d t d due to global financial and economic crisis Countermeasures: Significant cost reductions and lowering of break-even point of all b i b k i t f ll business platforms Key hires and organizational reorganization and transformation Considerable investment in: Talent; Lean Continuous Improvement; Global Supply Chain; Developing Emerging Markets; Innovation; Branding; and Global Computer and Engineering S E i i Systems Strong free cash flow generation. Maintained a flexible and strong balance sheet; retained investment grade ratings

2011
Stabilization of Infrastructure business b i Metals, Minerals, Rail, and Industrial continue to perform well Management team growing cohesiveness Benefits from restructuring, countermeasures and transformation are realized and sustained Improvement in revenues, EPS and EVA Strong discretionary cash flow and flexible balance sheet Investment in growth projects, principally Metals, Minerals, and Rail

2012-2015
Full realization of benefits from transformation i iti ti t f ti initiatives Full benefits from restructuring initiatives Benefits from investments in emerging markets realized Benefits from use of Discretionary Cash Flow Growth in revenues, EPS and EVA Gradual improvement in nonresidential construction markets is a plus

Transformation

Transition

Future
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Balanced Capital Allocation Strategy

Dividends
n cti o

Astute Capital Allocation p

Return to Shareholders: Dividends and Share Repurchases

Re

du

DISCRETIONARY CASH FLOW(1)

ns

bt

Organic Growth: Growth CAPX and O G G C Joint Ventures Inorganic Growth: Acquisitions Debt Reduction

De

(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 to sustain current revenues stream. This excludes all growth CAPX. Management believes discretionary cash flow provides a relevant measure of liquidity and a useful metric for assessing Harsco's ability to fund dividends, debt reductions, acquisitions, growth CAPX and share repurchases

e es ar as Sh rch u ep R

q Ac

tio is i u

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Harsco Corporation

Roadmap to 2015 Revenue p

$4.2B

$3.0B

Gradual recovery of key nonresidential construction markets, 2012 - 2015 No material change in FX rates from current levels Contribution from key organic investments in Metals, Minerals and Rail Assumes no acquisitions

2010

2011

2012

2013

2014

2015 Target

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Harsco Corporation

2015 EPS Growth Components Bridge p g

2010 Actual Incremental earnings potential range $2.30 - $3.15 Additional impact ???

$0.91

$0.75 - $1.00 $0.50 - $0.75 $0.55 - $0.65 $0.50 - $0.75

???

2010 (E)

Infrastructure Business Restructuring

Global Supply Organic Growth Chain and Lean Projects Initiatives

Procurement Offshore Services Consolidation of Global Administration Centers

Use of Stronger Market Free Cash Flow Recovery / Acquisitions Dividends

Joint Ventures Share Repurchases Debt Reduction

(E) Excludes fourth quarter Infrastructure restructuring charge

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Harsco Metals and Harsco Minerals

Harsco Metals
Provides environmental and logistics solutions to metals producers in the steel, aluminum, zinc and copper industries. Operations at over 160 sites in more than 30 countries 2010 Geographic Balance
North America 20% Rest of the World 35% Western Europe 45%

Harsco Minerals
Provides environmental services to the utility and stainless steel industries industries. Harsco Minerals utilizes innovative metal recovery to give customers a cost effective raw material for production while manufacturing a full range of mineral products servicing th abrasive i l d t i i the b i blasting, roofing, agriculture, turf, and mining industries Sources of Revenue Bridge 2010-2015
CAGR 6.8% 161 1, ,581 (90) 1,491 1,4 420 140 115 104 125

Organic

New

Market Po ositioning

S Share Gain

in Customer Volume

Lost to Churn

Base Retention

2010

Environmental Solutions for Global Resources Recovery

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N New Lines of Business f

Adjusted Base

Adjacent Markets

2015

1,975

Harsco Metals and Harsco Minerals

Business Model Transformation

Services Vendor - Suppliers Silod Highly Silo d Disaggregated Landfills Commodity Developed Markets Engineered Solutions Indispensible Partner Globally Integrated & Leveraged Value-added Products Environmental Solutions and Innovations Emerging Markets

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Harsco Infrastructure

2010 Challenges & Accomplishments g p

Harsco Infrastructure A global leader in highly engineered rental scaffolding, shoring, concrete forming and other access-related services. A solutions provider to major infrastructure, industrial plant maintenance, and construction projects. Operating at approximately 144 branches in approximately 38 countries Restructuring Summary Charge of over $ million taken in 4th Quarter 2010. $84 Removed over 80 locations and approximately 800 people across all regions of the world, with the focus being North America and Europe In total for 2010, reduced locations by approximately 110 branches or 43% b h 2011 savings expected to approximate $43 million, with full annualized savings over $60 million beginning 2012 Accomplishments Integrated Harsco Infrastructure into one global platform Integrated all acquisitions Successfully executed global restructuring of the business Increased marketing and sales focus Implemented global asset management system

2010 Geographic Balance

North America 18% Rest of the World 24% Western Europe 58%

2015 Target
North America 18% Rest of the World 33%

Western Europe 49%

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Harsco Infrastructure

Business Model Transformation

Historic State Hi t i St t
Silod Highly Disaggregated p Operate different standards Order takers - vendors Rental suppliers Focused on traditional markets Lack of product & CAPX Discipline with regional focus Consultative decision process Driven by short term objectives

2010 2011 and F t d Future St t State

Globally integrated & leveraged Standardized and disciplined p Proactive sales structure - partners Knowledge based solutions providers Holding traditional growing emerging Effective product & CAPX management with global focus Streamlined decision process Balance short and long term goals

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Harsco Infrastructure

Strategic Focus Geographic & Market Sector

Market Sector
2008 2011 T Target t 2015 T Target t

Industrial Maintenance Infrastructure Heavy Civil

Industrial Maintenance

Industrial Maintenance

Commercial and Multi-Family M lti F il

Infrastructure Heavy Civil

Infrastructure Heavy Civil Commercial and Multi-Family

Commercial and Multi-Family

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Harsco Infrastructure

2011 & Beyond Takeaway Message y y g

Restructuring 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 system

Strategic Focus Sales Effectiveness

Proactively leverage key client relationships and target y g y p g larger, complex projects in both existing and remote locations Increase focus and market share in emerging markets and maintain position in traditional markets Use proven technical expertise to drive innovation and lower total execution costs knowledge-based solutions Revenues targeted CAGR of 7% through 2015

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Harsco Rail

Strong Global Markets Support Organic Growth g pp g

Canada New equipment sales NTC contracting

Europe Additional contract service opportunities New product development p p

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

Japan Equipment purchases

India Dedicated Freight Corridor Track Renewal China Middle East y plan complete, 2012 p , 11th 5-year p Sa di contin es rail Saudi continues 12th 5-year plan begins 2011-12 investment Metro market UAE new track project Private operators GCC railway network Parts & service growth

Brazil New Track Construction Grinders Tie equipment

Australia Equipment manufacturing & sales Contracting services

Global Railway Track Maintenance Solutions

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Harsco Rail

Balanced Portfolio 2011

North America 40%

Parts 21%

Equipment 58%

China 28%

Services 21%

Rest of the World 19%

Western Europe 13%

Balanced product & service portfolio strengthens market position B l d d t i tf li t th k t iti New product development leading to market share growth and 15+ year Parts opportunity G oba Globalizing Parts business 70 Harsco Rail G de s in C a by 2012 g a s bus ess 0 a sco a Grinders China 0

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Harsco Rail

Sources of Revenue Bridge 2010-2015 g

In USD Millions
450 400 350 $66 300 ($88) 250 200 150 100 50 0 $317 $55

CAGR 4.8%
$50

$400

2010

China M OR

M arke t Share

Ne w Products

Ne w Se rv ice s

2015

Excludes potential acquisitions

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Harsco Industrial

2015 Financial View

Projected Revenue = $450 million CAGR = 14%

Excludes potential acquisitions We Help Build the World | 16

Harsco Corporation

Takeaway Message y g
Transformation journey will deliver considerable benefits in the next five years Roadmap to 2015 EPS target developed and management team focused on execution Our sound balance sheet, underpinned by strong discretionary cash flow, provides financial flexibility to continue investing in growth Significantly lower cost structure and operating leverage provides a solid foundation for improvement in earnings and EVA Emerging markets/rest of the world presence continues to grow and will reach 35% by 2015

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