2011 Summary annual report Forward-Looking Statements The nature of the Company’s business and the many countries in which it operates subject it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. In accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company provides the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things, statements about our management confidence and strategies for performance; expectations for new and existing products, technologies and opportunities; and expectations regarding growth, sales, cash flows, earnings and Economic Value Added (“EVA®”). These statements can be identified by the use of such terms as “may,” “could,” “expect,” “anticipate,” “intend,” “believe” or other comparable terms. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. Please refer to our Annual Report filed on Form 10-K for further discussion. TICC2062 Angle 53 TICC2064 Angle 53 2ndTICC2062 Angle 53 Harsco is pursuing a long-term strategy built on innovation, global balance and efficiency. We’ve repositioned all four businesses with significant operating leverage to deliver improved performance in the near term—and solid growth as economic conditions improve. 130065BK_r5_5710_HARSCO_2011_AR_K-28.indd 1 3/5/12 11:41 AM Harsco Corporation 2011 Summary Annual Report 1 2ndTICC2064 2ndTICC2062 Angle 53 Angle 53 Financial Highlights Dollars in thousands, except per share amounts 2011 2010 2009 2008 2007 Total revenues from continuing operations Operating income from continuing operations Income (loss) from continuing operations attributable to Harsco Corporation stockholders Current ratio Return on average capital Return on average equity Return on average assets Debt to total capitalization Diluted earnings (loss) per share from continuing operations Book value per share Cash dividends declared per share Diluted average shares outstanding (in thousands) Number of employees $3,302,740 $3,038,678 $2,990,577 $3,967,822 $3,688,160 87,649 78,431 218,656 411,988 457,805 (9,447) 10,885 133,838 245,623 255,115 1.5:1 (0.7) (0.6) % % 2.6 % 42.7 % 1.5:1 2.4 % 0.7 % 2.3 % 37.6 % 1.6:1 7.6 % 9.1 % 6.3 % 39.5 % 1.4:1 10.6 % 14.6 % 10.3 % 41.1 % 1.5:1 11.8 % 18.9 % 13.0 % 40.3 % $««««««««(0.12) * ÷«$«««««÷««0.13 ***** ** $÷÷÷«÷1.66 $÷÷÷«÷2.92 $÷÷÷«««3.01 15.16 0.82 80,736 19,650 18.23 «««0.820 80,761 19,300 18.79 0.805 80,586 19,600 18.09 0.78 84,029 21,500 18.99 0.7275 84,724 21,500 United States International Revenues from Continuing Operations Dollars in millions United States International Operating Income from Continuing Operations Dollars in millions 11 10 09 08 07 3,303 3,039 2,991 3,968 3,688 Diluted Earnings (Loss) per Share from Continuing Operations In dollars (0.12)* 0.13** 11 10 09 1.66 88 78 219 11 10 09 08 07 Cash Dividends Declared per Share In dollars 11 10 09 412 458 0.82 0.82 0.81 0 08 496 992 1488 1984 2480 2976 3472 3968 2.92 0.000000 91.599998183.199997274.799995366.399994457.999992 08 0.78 07 3.01 07 0.73 * After fourth quarter restructuring and non-cash tax charges of $1.50 per share in 2011. ** After fourth quarter restructuring charge of $0.77 per share in 2010. 2 Harsco Corporation 2011 Summary Annual Report 0.0 0.2 0.4 0.60.8 1.0 130065BK_r4_5710_HARSCO_2011_AR_K-28 .indd 2 3/3/12 9:13 AM 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Cyan Angle 23 Magenta Angle 83 Yellow Angle 8 Black Angle 53 TICC2062 Angle 53 TICC2064 Angle 53 Dear Shareholders: We entered 2011 with cautious optimism. Fortunately, our Rail and Industrial We looked forward to a transition year that businesses are delivering steady growth would usher in a new period of growth and and solid returns, with many untapped relative stability. Instead we experienced global growth opportunities still ahead. another series of economic setbacks, We have great people and products, particularly in Europe. We responded by we serve markets that need our capa- changing our path as the year progressed so bilities and I can assure you that we are that we could achieve improved performance focused on the opportunities to create despite the economic reality. Most impor- shareholder value. tantly, we took a number of preemptive actions to drive our cost structure lower in I’m writing this letter only a couple of support of two critical mileposts: accelerate weeks into my temporary position of Harsco Infrastructure’s return to profitability Interim Chairman and CEO. My job is and continue to improve the operating margins to help this talented team continue to of our Harsco Metals & Minerals business. improve our ability to create value, and to help our Board fill the CEO position with Indeed we did improve our base performance a person capable of taking Harsco and its to $1.38 per diluted share from $0.91 per incredible people and strengths to new diluted share in 2010. Unfortunately, this heights. We thank you for your continued excluded another significant restructuring support of our efforts and look forward charge of $1.05 per diluted share announced to delivering on Harsco’s promise. in the fourth quarter of 2011. This charge was mostly non-cash in nature. In addition we incurred a non-cash tax charge of $0.45 per diluted share. To say the least, we have a lot of work to do. Henry W. Knueppel We are making progress in both our Metals & Interim Chairman and CEO Minerals and our Infrastructure businesses, but the progress must be accelerated. March 5, 2012 130065BK_r8_5710_HARSCO_2011_AR_K-28.indd 3 3/8/12 1:21 PM Harsco Corporation 2011 Summary Annual Report 3 Cyan Angle 23 Magenta Angle 83 Yellow Angle 8 Black Angle 53 TICC2062 Angle 53 2ndTICC2062 TICC2064 Angle 53 Angle 53 2ndTICC2064 Angle 53 Harsco At a Glance 2011 Revenues Global Revenue Sources $3,303M Metals & Minerals 48% Infrastructure 34% Rail 9% Industrial 9% Western Europe 38% North America 35% Rest of the World 27% We operate in more than 50 countries and employ approximately 19,500 people. Segment Description Major Services & Products The world’s largest and most complete onsite services provider to metal-producing operations, and a leading provider of innovative recycling solutions for industrial byproducts • Engineered solutions for minimizing the waste streams of metals production • Onsite material handling and resource recovery services • Processing of mineral byproducts for environmentally beneficial uses, including abrasives, roofing granules, and agricultural soil conditioners Global business group specializing in two core areas: • Construction services: total access, formwork, shoring and site safety. Working on more complex nonresidential and infrastruc- ture projects to offer contractors innovative and engineered services for the provision of scaffolding, access, powered access, formwork, shoring and site safety services • Industrial services: multidisciplined facility maintenance. Partnering with major facilities operators and contractors to supply multidisciplined services for plant shutdowns, upgrades and maintenance projects • Complete rental equipment and installation services for scaffolding, powered access, shoring, forming and site safety • Total access equipment solutions and services for industrial facility maintenance • Expertise and application knowledge of more than 300 in-house engineers State-of-the-art solutions for railway track maintenance and new track construction • One of the industry’s broadest lines of equipment, engineering and support solutions for virtually all major aspects of track maintenance, repair and construction World-class industrial products for energy and energy- related markets • Air-cooled heat exchangers for natural gas compression and pipeline distribution • Steel grating for industrial and commercial flooring and safety walkways • Energy-efficient boilers and hot water systems for large commercial and institutional buildings 4 Harsco Corporation 2011 Summary Annual Report 130065BK_r6_5710_HARSCO_2011_AR_K-28.indd 4 3/6/12 2:35 PM Cyan Angle 23 Magenta Angle 83 Yellow Angle 8 Black Angle 53 TICC2062 Angle 53 2ndTICC2062 TICC2064 Angle 53 Angle 53 2ndTICC2064 Angle 53 Harsco’s four businesses deliver essential services, products and resource recovery solutions to major industries that are fundamental to global economic progress and infrastructure development. Metals & Minerals InfRastRuctuRe RaIl IndustRIal Markets 2011 Highlights Revenues by Market Metals & Minerals Infrastructure • Global and regional producers of carbon steel, stainless steel, aluminum, zinc and copper • Commercial and industrial users of mineral products, including industrial abrasives contractors, asphalt roofing shingle manufacturers, agricultural operators and turf care specialists • Announced major new contracts totaling more than $1 billion in projected new sales • Includes 25-year, $500 million contract with China’s TISCO—largest contract in Harsco history • New strategic technology alliances for innovative environmental solutions within existing and adjacent markets Metals & Minerals Rest of the World 35% $1,588M Western Europe 39% Infrastructure North America 26% Metals & Minerals Infrastructure • Principal markets include nonresidential and heavy civil works construction projects and industrial plant maintenance programs in the energy, petrochemical and manufacturing sectors • Created significant upside leverage in operating performance • Optimized footprint and reduced break-even point • New leadership team focused on profitability • Major domestic and international railways, short lines and urban metro transit systems • Expanding global footprint includes a significant emphasis on emerging markets, including China, Brazil and others • Near-record sales and returns • Business model aligned around integrated rail solutions and global product management • Strong 2012/2013 backlog already in hand; more opportunities ahead Metals & Minerals • Increasing focus on energy-generating and energy- • 30% sales growth over 2010 along with solid efficiency markets. Major customers include natural gas producers and packagers, power plant and industrial facility operators, and commercial building managers and contractors operating returns • Market share gains across all three businesses • Strong energy markets are driving growth Rail Rest of the World 27% North America 19% Rest of the World 36% North America 90% $1,108M Western Europe 54% Infrastructure Rail $300M Western Europe 13% North America 51% (By destination) Industrial Rail $306M Rest of the World 10% Industrial Industrial 130065BK_r4_5710_HARSCO_2011_AR_K-28 .indd 5 3/3/12 9:48 AM Harsco Corporation 2011 Summary Annual Report 5 Industrial Rail TICC2062 Angle 53 TICC2064 Angle 53 Management’s Report on Internal Control Over Financial Reporting Management of Harsco Corporation, together with its consolidated of any evaluation of effectiveness to future periods are subject to subsidiaries (the Company), is responsible for establishing and maintaining the risk that controls may become inadequate because of changes adequate internal control over financial reporting. The Company’s internal in conditions, or that the degree of compliance with the policies control over financial reporting is a process designed under the supervision of and procedures may deteriorate. the Company’s principal executive and principal financial officers to provide Management has assessed the effectiveness of its internal control reasonable assurance regarding the reliability of financial reporting and the over financial reporting at December 31, 2011 based on the framework preparation of the Company’s financial statements for external reporting established in Internal Control — Integrated Framework issued by the purposes in accordance with accounting principles generally accepted in the Committee of Sponsoring Organizations of the Treadway Commission (COSO). United States of America. Based on this assessment, management has determined that the Company’s The Company’s internal control over financial reporting includes internal control over financial reporting is effective at December 31, 2011. policies and procedures that: • Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets of the Company; • Provide reasonable assurance that transactions are recorded as Henry W. Knueppel necessary to permit preparation of financial statements in accordance Interim Chairman & Chief Executive Officer with accounting principles generally accepted in the United States of February 28, 2012 America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and the directors of the Company; and • Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the Company’s financial statements. Stephen J. Schnoor Because of its inherent limitations, internal control over financial Senior Vice President, Chief Financial Officer and Treasurer reporting may not prevent or detect misstatements. Also, projections February 28, 2012 Report of Independent Registered Public Accounting Firm To The Stockholders of Harsco Corporation: In our opinion, the information set forth in the accompanying condensed We have audited, in accordance with the standards of the Public Company consolidated financial statements is fairly stated, in all material respects, Accounting Oversight Board (United States), the consolidated balance sheets in relation to the consolidated financial statements from which it has of Harsco Corporation and its subsidiaries as of December 31, 2011 and been derived. 2010 and the related consolidated statements of income, changes in equity, cash flows and comprehensive income for each of the three years in the period ended December 31, 2011 (not presented herein) appearing in Harsco’s annual report on Form 10-K for the year ended December 31, 2011; and in our report dated February 28, 2012, we expressed an unqualified opinion PricewaterhouseCoopers LLP on those consolidated financial statements. February 28, 2012 6 Harsco Corporation 2011 Summary Annual Report 130065BK_r6_5710_HARSCO_2011_AR_K-28.indd 6 3/6/12 3:06 PM TICC2062 Angle 53 TICC2064 Angle 53 Condensed Consolidated Balance Sheets (In thousands, except share amounts) ASSETS Current assets: Cash and cash equivalents Trade accounts receivable, net Other receivables Inventories Other current assets Total current assets Property, plant and equipment, net Goodwill Intangible assets, net Other assets Total assets LIABILITIES Current liabilities: Short-term borrowings Current maturities of long-term debt Accounts payable Accrued compensation Income taxes payable Dividends payable Insurance liabilities Advances on contracts Other current liabilities Total current liabilities Long-term debt Deferred income taxes Insurance liabilities Retirement plan liabilities Other liabilities Total liabilities COMMITMENTS AND CONTINGENCIES HARSCO CORPORATION STOCKHOLDERS’ EQUITY Preferred stock, Series A junior participating cumulative preferred stock Common stock, par value $1.25 (issued 111,931,267 and 111,611,102 shares at December 31, 2011 and 2010, respectively) Additional paid-in capital Accumulated other comprehensive loss Retained earnings Treasury stock, at cost (31,454,097 and 31,097,043 shares at December 31, 2011 and 2010, respectively) Total Harsco Corporation stockholders’ equity Noncontrolling interests Total equity Total liabilities and equity The complete financial statements for Harsco Corporation as of December 31, 2011 may be found in the Company’s Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 28, 2012. December 31, 2011 December 31, 2010 $«««121,184 ÷««÷«$«««124,238 618,475 44,431 241,934 133,407 1,159,431 1,274,484 680,901 93,501 130,560 585,301 29,299 271,617 144,491 1,154,946 1,366,973 690,787 120,959 135,555 «$3,338,877 $3,469,220 $«««««51,414 ««««÷«$«««««31,197 3,558 252,329 92,603 8,409 16,498 25,075 111,429 220,953 782,268 853,800 27,430 60,864 343,842 50,755 4,011 261,509 83,928 9,718 16,505 25,844 128,794 206,358 767,864 849,724 35,642 62,202 223,777 61,866 2,118,959 2,001,075 – 139,914 149,066 (364,191) 1,996,234 (744,644) 1,176,379 43,539 1,219,918 $3,338,877 – 139,514 141,298 (185,932) 2,073,920 (737,106) 1,431,694 36,451 1,468,145 ««$3,469,220 130065BK_r5_5710_HARSCO_2011_AR_K-28.indd 7 3/5/12 11:42 AM Harsco Corporation 2011 Summary Annual Report 7 TICC2062 Angle 53 TICC2064 Angle 53 Condensed Consolidated Statements of Income (In thousands, except per share amounts) Years ended December 31 Revenues from continuing operations: Service revenues Product revenues Total revenues Costs and expenses from continuing operations: Cost of services sold Cost of products sold Selling, general and administrative expenses Research and development expenses Other expenses Total costs and expenses Operating income from continuing operations Interest income Interest expense Income from continuing operations before income taxes and equity income Income tax expense Equity in income of unconsolidated entities, net Income (loss) from continuing operations Discontinued operations: Loss on disposal of discontinued business Income tax benefit related to discontinued business Loss from discontinued operations Net income (loss) Less: Net income attributable to noncontrolling interests Net income (loss) attributable to Harsco Corporation Amounts attributable to Harsco Corporation common stockholders: Income (loss) from continuing operations, net of tax Loss from discontinued operations, net of tax Net income (loss) attributable to Harsco Corporation common stockholders Weighted-average shares of common stock outstanding Basic earnings (loss) per share attributable to Harsco Corporation common stockholders: Continuing operations Discontinued operations 2011 2010 2009 $2,700,664 602,076 3,302,740 $2,511,505 527,173 3,038,678 2,162,948 1,994,637 407,680 535,679 6,044 102,740 342,242 532,624 4,271 86,473 $2,442,198 548,379 2,990,577 1,897,408 354,730 509,071 3,151 7,561 3,215,091 2,960,247 2,771,921 87,649 2,751 (48,735) 41,665 (49,848) 690 (7,493) (3,306) 1,243 (2,063) (9,556) (1,954) 78,431 2,668 (60,623) 20,476 (4,276) 390 16,590 (7,249) 3,118 (4,131) 12,459 (5,705) 218,656 2,928 (62,746) 158,838 (18,509) 504 140,833 (21,907) 6,846 (15,061) 125,772 (6,995) «$««««(11,510) $÷«««««6,754 $÷«118,777 $««««««(9,447) (2,063) «$««««(11,510) 80,736 $««««««««(0.12) (0.03) $÷«««10,885 (4,131) $÷«««««6,754 80,569 $÷«133,838 (15,061) $÷«118,777 80,295 $÷÷÷÷«0.14 $÷÷÷÷«1.67 (0.05) (0.19) Basic earnings (loss) per share attributable to Harsco Corporation common stockholders ÷÷$÷÷««««(0.14) (a) $÷÷÷÷«0.08 (a) $÷÷÷÷«1.48 Diluted weighted-average shares of common stock outstanding Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders: Continuing operations Discontinued operations 80,736 80,761 80,586 $««««««««(0.12) (0.03) $÷÷÷÷«0.13 $÷÷÷÷«1.66 (0.05) (0.19) Diluted earnings (loss) per share attributable to Harsco Corporation common stockholders ÷÷$÷÷««««(0.14) (a) $÷÷÷÷«0.08 $÷÷÷÷«1.47 (a) Does not total due to rounding. The complete financial statements for Harsco Corporation as of December 31, 2011 may be found in the Company’s Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 28, 2012. 8 Harsco Corporation 2011 Summary Annual Report 130065BK_r5_5710_HARSCO_2011_AR_K-28.indd 8 3/5/12 11:49 AM TICC2062 Angle 53 TICC2064 Angle 53 Condensed Consolidated Statements of Cash Flows (In thousands) Years ended December 31 Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: Depreciation Amortization Equity in income of unconsolidated entities, net Dividends or distributions from unconsolidated entities Harsco Infrastructure Segment 2010 Restructuring Program non-cash adjustment Harsco 2011/2012 Restructuring Program non-cash adjustment Other, net Changes in assets and liabilities, net of acquisitions and dispositions of businesses: Accounts receivable Inventories Accounts payable Accrued interest payable Accrued compensation Harsco Infrastructure Segment 2010 Restructuring Program accrual Harsco 2011/2012 Restructuring Program accrual Other assets and liabilities Net cash provided by operating activities Cash flows from investing activities: Purchases of property, plant and equipment Proceeds from sales of assets Purchase of businesses, net of cash acquired* Other investing activities, net Net cash used by investing activities Cash flows from financing activities: Short-term borrowings, net Current maturities and long-term debt: Additions Reductions Cash dividends paid on common stock Dividends paid to noncontrolling interests Purchase of noncontrolling interests Contributions from noncontrolling interests Common stock issued-options Common stock acquired for treasury Other financing activities, net Net cash used by financing activities Effect of exchange rate changes on cash Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period *Purchase of businesses, net of cash acquired Working capital, other than cash Property, plant and equipment Other noncurrent assets and liabilities, net Net cash used to acquire businesses The complete financial statements for Harsco Corporation as of December 31, 2011 may be found in the Company’s Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 28, 2012. 2011 2010 2009 $«««(9,556) $««12,459 ««$125,772« 276,021 34,420 (690) 226 – 67,320 (7,432) (58,011) 7,976 (2,713) (375) 12,554 (19,629) 30,471 (31,806) 298,776 (313,101) 42,653 (1,938) 16,564 (255,822) 279,234 36,005 (390) 176 43,158 – (20,629) 4,395 12,599 36,529 (2,615) 16,305 29,817 – (45,616) 401,427 (192,348) 22,663 (27,643) (4,695) (202,023) 282,976 28,555 (504) 410 – – 6,145 111,207 35,798 (54,701) (1,305) (23,402) – – (76,493) 434,458 (165,320) 2,115 (103,241) (2,914) (269,360) 21,637 (25,706) (79,670) 301,515 (297,854) (66,146) (4,171) – 8,851 2,403 (5,788) (1) (39,554) (6,454) (3,054) 124,238 $121,184 $«««««««««««– (1,394) (544) $«««(1,938) 747,213 (821,038) (65,976) (5,850) (1,159) 698 997 – (700) (171,521) 2,171 30,054 94,184 482,493 (487,171) (63,813) (3,487) (13,057) 5,332 995 – (5,705) (164,083) 1,833 2,848 91,336 $124,238 «$«««94,184 $÷«(1,918) (15,600) (10,125) «$«(27,643) ««$««÷(2,399) (68,906) (31,936) $(103,241) 130065BK_r4_5710_HARSCO_2011_AR_K-28 .indd 9 3/3/12 9:13 AM Harsco Corporation 2011 Summary Annual Report 9 TICC2062 Angle 53 TICC2064 Angle 53 Condensed Consolidated Statements of Changes in Equity (In thousands, except share and per share amounts) Balances, January 1, 2009 Net income Cash dividends declared: Common @ $0.805 per share Noncontrolling interests Translation adjustments, net of deferred income taxes of $(21,866) Cash flow hedging instrument adjustments, net of deferred income taxes of $10,849 Purchase of subsidiary shares from noncontrolling interests Contributions from noncontrolling interests Pension liability adjustments, net of deferred income taxes of $26,012 Marketable securities unrealized loss, net of deferred income taxes of $(2) Stock options exercised, net 76,605 shares Vesting of restricted stock units, net 101,918 shares Amortization of unearned compensation on restricted stock units, net of forfeitures Balances, December 31, 2009 Net income Cash dividends declared: Common @ $0.82 per share Noncontrolling interests Translation adjustments, net of deferred income taxes of $7,612 Cash flow hedging instrument adjustments, net of deferred income taxes of $347 Purchase of subsidiary shares from noncontrolling interests Contributions from noncontrolling interests Pension liability adjustments, net of deferred income taxes of $(9,727) Marketable securities unrealized loss, net of deferred income taxes of $(7) Stock options exercised, net 91,485 shares Vesting of restricted stock units, net 69,515 shares Amortization of unearned compensation on restricted stock units, net of forfeitures Balances, December 31, 2010 Net income (loss) Cash dividends declared: Common @ $0.82 per share Noncontrolling interests Translation adjustments, net of deferred income taxes of $2,504 Cash flow hedging instrument adjustments, net of deferred income taxes of $(2,101) Contributions from noncontrolling interests Pension liability adjustments, net of deferred income taxes of $19,143 Marketable securities unrealized gains, net of deferred income taxes of $7 Stock options exercised, net 157,058 shares Vesting of restricted stock units, net 92,630 shares Treasury shares repurchased, 286,577 shares Amortization of unearned stock-based compensation, net of forfeitures Balances, December 31, 2011 Common Stock Issued Treasury Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Total $138,925 $(733,203) $137,083 $2,079,170 $(208,299) $36,296 $1,449,972 118,777 (64,650) 6,995 125,772 (3,487) 262 (9,141) 5,332 96,802 (30,041) (60,150) 4 (64,650) (3,487) 97,064 (30,041) (13,046) 5,332 (60,150) 4 1,058 (1,880) 3,886 (3,905) 1,366 (684) 3,886 115 194 (423) (1,390) $139,234 $(735,016) $137,746 $2,133,297 $(201,684) $36,257 $1,509,834 6,754 (66,131) 5,705 12,459 (5,850) (203) (156) 698 (6,430) (700) 22,872 10 (66,131) (5,850) (6,633) (700) (1,159) 698 22,872 10 754 (1,306) 3,297 (1,003) 1,446 (188) 3,297 144 136 (836) (1,254) $139,514 $(737,106) $141,298 $2,073,920 $(185,932) $36,451 $1,468,145 (11,510) (66,176) 1,954 (9,556) (4,171) (221) 9,526 (60,354) 5,933 (123,827) (11) (66,176) (4,171) (60,575) 5,933 9,526 (123,827) (11) 2,319 226 (5,788) 3,873 249 151 (840) (910) (5,788) 2,910 985 3,873 $139,914 $(744,644) $149,066 $1,996,234 $(364,191) $43,539 $1,219,918 The complete financial statements for Harsco Corporation as of December 31, 2011 may be found in the Company’s Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 28, 2012. 10 Harsco Corporation 2011 Summary Annual Report 130065BK_r4_5710_HARSCO_2011_AR_K-28 .indd 10 3/3/12 9:13 AM TICC2062 Angle 53 TICC2064 Angle 53 Five-Year Statistical Summary (In thousands, except per share, employee information and percentages) 2011 2010 2009 (a) 2008 2007(b) Income Statement Information Revenues from continuing operations Amounts Attributable to Harsco Corporation Common Stockholders Income (loss) from continuing operations Income (loss) from discontinued operations Net income (loss) Financial Position and Cash Flow Information Working capital Total assets Long-term debt Total debt Depreciation and amortization (including discontinued operations) Capital expenditures Cash provided by operating activities Cash used by investing activities Cash used by financing activities Ratios Return on average equity(c)(d) Current ratio Total debt to total capital(d)(e) Per Share Information Attributable to Harsco Corporation Common Stockholders Basic – Income (loss) from continuing operations – Income (loss) from discontinued operations – Net income (loss) Diluted – Income (loss) from continuing operations – Income (loss) from discontinued operations – Net income (loss) Book value (e) Cash dividends declared per share Other Information $3,302,740 $3,038,678 $2,990,577 $3,967,822 $3,688,160 (9,447) (2,063) (11,510) 10,885 (4,131) 6,754 133,838 (15,061) 118,777 245,623 (4,678) 240,945 255,115 44,377 299,492 $««377,163 3,338,877 $÷«387,082 3,469,220 $÷«418,237 3,639,240 853,800 908,772 310,441 313,101 298,776 (255,822) (39,554) (0.6) 1.5:1 42.7 % % 849,724 884,932 315,239 192,348 401,427 (202,023) (171,521) 0.7% 1.5:1 37.6% 901,734 984,927 311,531 165,320 434,458 (269,360) (164,083) 9.1% 1.6:1 39.5% $÷«317,062 $÷«471,367 3,562,970 891,817 1,012,883 337,949 457,617 574,276 (443,418) (155,539) 14.6% 1.4:1 41.1% 3,905,430 1,012,087 1,080,794 306,413 443,583 471,740 (386,125) (77,687) 18.9% 1.5:1 40.3% $÷÷÷««(0.12) $÷÷÷÷«0.14 $÷÷÷÷«1.67 $÷÷÷÷«2.94 $÷÷÷÷«3.03 (0.03) (0.05) (0.19) $÷÷÷««(0.14) (f) $÷÷÷÷«0.08(f) $÷÷÷÷«1.48 $÷÷÷««(0.12) $÷÷÷÷«0.13 $÷÷÷÷«1.66 (0.03) (0.05) $÷÷÷««(0.14) (f) $÷÷÷÷«0.08 $÷÷÷«15.16 $÷÷÷«««0.82 $÷÷÷«18.23 $÷««÷÷«0.82 (0.19) $÷÷÷÷«1.47 $÷÷÷«18.79 $÷««««÷«0.805 (0.06) $÷÷÷÷«2.88 $÷÷÷÷«2.92 (0.06) 0.53 $÷÷÷÷«3.56 $÷÷÷÷«3.01 0.52 $÷÷÷÷«2.87(f) $÷÷÷÷«3.53 $÷÷÷«18.09 $÷««÷÷«0.78 $÷÷÷«18.99 $÷««÷÷«0.7275 Diluted weighted-average number of shares outstanding Number of employees 80,736 19,650 80,761 19,300 80,586 19,600 84,029 21,500 84,724 21,500 Includes ESCO Interamerica, Ltd. acquired November 10, 2009 (Harsco Infrastructure Segment). Includes Excell Minerals acquired February 1, 2007 (Harsco Metals & Minerals Segment). (a) (b) (c) “Return on average equity” is calculated by dividing income (loss) from continuing operations by average equity throughout the year. (d) 2007 and 2008 reflect noncontrolling interests, previously referred to as minority interests, as a component of equity in accordance with the changes to consolidation accounting and reporting issued by the Financial Accounting Standards Board January 1, 2009. (e) “Total debt to total capital” is calculated by dividing total debt (short-term borrowings and long-term debt including current maturities) by the sum of equity and total debt. (f) Does not total due to rounding. 130065BK_r4_5710_HARSCO_2011_AR_K-28 .indd 11 3/3/12 9:13 AM Harsco Corporation 2011 Summary Annual Report 11 TICC2062 Angle 53 TICC2064 Angle 53 Board of Directors and Executive Leadership Team (As of March 5, 2012) executive leadership team Henry W. Knueppel Interim Chairman and Chief Executive Officer Galdino J. Claro Executive Vice President and Group CEO Harsco Metals & Minerals ivor J. Harrington Executive Vice President and Group CEO Harsco Infrastructure Stephen J. Schnoor Sr. Vice President, Chief Financial Officer and Treasurer mark e. Kimmel Sr. Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary Scott W. Jacoby Vice President and Group President Harsco Rail Scott H. Gerson Vice President and Group President Harsco Industrial Janet l. Hogan Vice President and Chief Human Resources Officer Douglas eubanks Vice President and Chief Information Officer richard a. Sullivan Vice President – Business Transformation and Chief Supply Chain Officer Board of Directors Kathy G. eddy 1 CPA and Founding Partner McDonough, Eddy, Parsons & Baylous, AC Director since 2004 Serves as Lead Independent Director David C. everitt 1, 2 President, Agriculture and Turf Division– North America, Asia, Australia, Sub-Saharan and South Africa, and Global Tractor and Turf Products Deere & Company Director since 2010 Stuart e. Graham 1, 3C Retired Chief Executive Officer Skanska AB Chairman Skanska USA Director since 2009 terry D. Growcock 2C, 3 Retired Chairman The Manitowoc Company Director since 2008 Henry W. Knueppel Retired Chairman and Chief Executive Officer Regal Beloit Corporation Director since 2008 Serves as Interim Chairman and Chief Executive Officer James m. loree 1C, 3 Executive Vice President and Chief Operating Officer Stanley Black & Decker Director since 2010 andrew J. Sordoni, iii 2, 3 Chairman Sordoni Construction Services, Inc. Director since 1988 Dr. robert C. Wilburn 2, 3 Principal The Wilburn Group Director since 1986 Board Committees 1 Audit Committee 2 Management Development and Compensation Committee 3 Nominating and Corporate Governance Committee C Indicates Committee Chair 12 Harsco Corporation 2011 Summary Annual Report 130065BK_r4_5710_HARSCO_2011_AR_K-28 .indd 12 3/3/12 9:13 AM Cyan Angle 23 Magenta Angle 83 Yellow Angle 8 Black Angle 53 TICC2062 Angle 53 TICC2064 Angle 53 2ndTICC2064 Angle 53 Shareholder Information Company news Company information, archived news releases and SEC filings are available free of charge 24 hours a day, seven days a week via Harsco’s website at www.harsco.com. Harsco’s quarterly earnings conference calls and other significant investor events are posted when they occur. Securities analysts, portfolio managers, other representatives of institutional investors and other interested parties seeking information about Harsco should contact: eugene m. truett Vice President – Investor Relations and Credit Phone: 717.975.5677 Email: etruett@harsco.com Fax: 717.265.8152 annual meeting April 24, 2012, 8:00 am Radisson Penn Harris Hotel and Convention Center Camp Hill, PA 17011 transfer agent and registrar Computershare 480 Washington Boulevard Jersey City, NJ 07310-1900 Phone: 800.850.3508 www.bnymellon.com/shareowner/equityaccess Computershare maintains the records for our registered shareholders and can help you with a variety of shareholder-related services at no charge, including: • Change of name or address • Consolidation of accounts • Duplicate mailings • Dividend reinvestment enrollment • Lost stock certificates • Transfer of stock to another person • Additional administrative services You can also access your investor statements online 24 hours a day, seven days a week with MLinkSM. For more information go to www.bnymellon.com/shareowner/equityaccess. independent registered public accounting Firm PricewaterhouseCoopers LLP Philadelphia, PA 19103 Quarterly Share price and Dividend information Harsco Corporation common stock is listed on the New York Stock Exchange (NYSE) under ticker symbol HSC. At year-end 2011, there were 80,477,170 shares outstanding and approximately 16,600 stockholders. As shown below, during 2011, the Company’s common stock traded in a range of $17.77 to $36.78 and closed at $20.58 at year-end. High and low per share data are as quoted on the NYSE. Four quarterly cash dividends were paid in 2011 for an annual rate of $0.82. There are no significant restrictions on the payment of dividends. First Quarter High Low Dividends Declared Second Quarter High Low third Quarter Dividends Declared High Low Dividends Declared Fourth Quarter High Low Dividends Declared 2011 $ 36.63 28.45 0.205 36.78 29.46 0.205 34.07 18.85 0.205 24.96 17.77 0.205 comparison of Five-Year cumulative total Returns* Among Harsco Corporation, the S&P Midcap 400 Index and the Dow Jones Diversified Industrials Index 2010 $ 35.31 27.96 0.205 35.14 23.47 0.205 27.50 19.89 0.205 28.93 22.71 0.205 $117.72 $76.44 $60.82 06 07 08 09 10 11 Harsco Corporation S&P Midcap 400 Index Dow Jones US Diversified Industrials Index Harsco Corporation S&P Midcap 400 12/06 12/07 12/08 12/09 12/10 12/11 $100.00 170.85 75.20 90.03 81.38 60.82 100.00 107.98 68.86 94.60 119.80 117.72 Dow Jones US Diversified Industrials 100.00 106.74 54.38 61.72 75.83 76.44 * $100 invested on 12/31/06 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Summary annual report This Summary Annual Report is designed to present our 2011 results in a simple, easy-to-read and cost-efficient format. The more detailed financial information and analysis included in previous annual reports is contained in our Form 10-K filing with the Securities and Exchange Commission, which was distributed to shareholders along with this summary report. A copy of our Form 10-K filing may also be obtained from Harsco Investor Relations at the address on the back cover, or it can be viewed and downloaded from our Harsco website at www.harsco.com. 130065BK_r4_5710_HARSCO_2011_AR_K-28 .indd 13 3/3/12 9:13 AM Black Angle 53 TICC2062 Angle 53 2ndTICC2062 Angle 53 Harsco Corporation World Headquarters 350 Poplar Church Road Camp Hill, PA 17011 USA Tel: 717.763.7064 www.harsco.com 130065BK_r5_5710_HARSCO_2011_AR_K-28.indd 14 3/5/12 11:42 AM