HARSCO CORPORATION Free Cash Flow (Unaudited) (a) Maintenance capital expenditures are necessary to sustain the Company’s current revenue streams and include contract renewal.  (b) Growth capital expenditures, for which management has discretion as to amount, timing and geographic placement, expand the Company’s revenue base and create additional future cash flow.  (c) Capital expenditures for strategic ventures represent the partner’s share of capital expenditures in certain ventures consolidated in the Company’s financial statements. (d) Asset sales are a normal part of the business model, primarily for the Harsco Metals & Minerals Segment. For the full year ended December 31, 2014, this line item also includes proceeds of $12.4 million from  the Harsco Infrastructure Transaction net working capital settlement. The Company’s management believes that free cash flow, which is a non-U.S. GAAP financial measure, is meaningful to investors because management reviews cash flows generated from operations less capital  expenditures net of asset sales proceeds. It is important to note that free cash flow does not represent the total residual cash flow available for discretionary expenditures since other non-discretionary expenditures,  such as mandatory debt service requirements, are not deducted from the measure. Exclusion of the Harsco Infrastructure Segment from 2013 provides a basis for comparison of ongoing operations and prospects since  the segment was divested in the fourth quarter of 2013. This measure should be considered in addition to, rather than as a substitute for, other information provided in accordance with U.S. GAAP. The Company has reclassified segment operating results for the twelve months ended December 31, 2013 to conform to the revised manner in which the Company now allocates corporate expenses to operating  segments as a result of changes in organizational structure resulting from the Infrastructure Transaction, which was consummated in the fourth quarter of 2013. The changes do not impact the Company’s previously  reported consolidated revenues from continuing operations, operating income from continuing operations or income from continuing operations before income taxes and equity income. Review of Operations By Segment (Unaudited) Twelve Months Ended December 31 (In thousands) 2014 2013 Net cash provided by operating activities $«225,846 $«188,255 Less maintenance capital expenditures  (a) (133,231) (128,331) Less growth capital expenditures  (b) (74,747) (117,816) Plus capital expenditures for strategic ventures  (c) 6,876 5,864 Plus total proceeds from sales of assets  (d) 27,379 18,984 Free Cash Flow $÷«52,123 $÷(33,044) Plus Harsco Infrastructure Segment negative Free Cash Flow – 52,962 Free Cash Flow excluding Harsco Infrastructure Segment $÷«52,123 $÷«19,918 Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 (In thousands) Revenues Operating Income (Loss) Revenues Operating Income (Loss) Harsco Metals & Minerals $1,377,592 $÷«9,858 $1,359,004 $÷«95,310 Harsco Infrastructure – – 885,377 (255,326) Harsco Industrial 412,532 63,680 365,972 58,977 Harsco Rail 275,614 37,137 286,167 27,710 General Corporate – (47,204) – (61,470) Consolidated Totals $2,065,738 $«63,471 $2,896,520 $(134,799) 2014 SUMMARY ANNUAL REPORT 19