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Investor Presentaiton

RECONCILIATION OF NON-GAAP MEASURES HARSCO CORPORATION RECONCILIATION OF FREE CASH FLOW TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (Unaudited) Three Months Ended September 30, 2020 (In thousands) Net cash provided by operating activities Less capital expenditures Less expenditures for intangible assets Plus capital expenditures for strategic ventures (a) Plus total proceeds from sales of assets (b) Plus transaction-related expenditures (c) Plus taxes paid on sale of divested businesses (d) Free cash flow Three Months Nine Months Ended September 30, 2020 Ended $ 2020 20,755 (27,883) $ 2019 44,657 (55,870) $ 2020 42,276 (79,096) 2019 June 30 2020 $ (127) (721) (169) 50,029 (147,071) (1,246) $ 33,057 (23,319) 16 603 1,461 1,967 4,831 225 521 5,355 4,473 7,560 1,767 10,732 13,809 18,410 10,390 26,672 26,380 5,961 $ 14,185 $ 5,272 $ 10,308 $ (59,517) $ 376 18,083 (a) Capital expenditures for strategic ventures represent the partner's share of capital expenditures in certain ventures consolidated in the Company's financial statements. (b) Asset sales are a normal part of the business model, primarily for the Harsco Environmental Segment. (c) Expenditures directly related to the Company's acquisition and divestiture transactions. (d) Income taxes paid on gains on the sale of discontinued businesses. The Company's management believes that Free cash flow, which is a non-GAAP financial measure, is meaningful to investors because management reviews cash flows generated from operations less capital expenditures net of asset sales proceeds and transaction-related expenditures and income taxes for planning and performance evaluation purposes. 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 and settlements of foreign currency forward exchange contracts, are not deducted from this measure. This measure should be considered in addition to, rather than as a substitute for, other information provided in accordance with GAAP. © 2020 Harsco Corporation. All Rights Reserved. This document and the information set forth herein are the property of Harsco Corporation. HARSCO 45
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