Hamon & Cie : Results H1 2015

 Backlog is at a very good level of EUR 764 million, slightly lower than the backlog as of 30
June 2014 (EUR 793 million), because of the good completion made on major projects. The level of new order bookings is satisfactory despite the delay taken by customers to finalize some major contracts, whereas the comparable previous half years had seen significant new bookings.
 Our management is confident for the remainder of the year.
 Our development in Africa, in the Middle-East and in Asia in general is promising.
 The level of new order bookings for the Process Heat Exchangers BU (PHE) is encouraging.

 EBITDA is slightly below H1 2014 EBITDA because of the still negative contribution of the Process Heat Exchangers BU and some non-recurring costs. Excluding this BU, the EBITDA of the other BUs increased by 26%, from EUR 13.5 million to EUR 17.0 million.
 The performance of the Process Heat Exchangers BU is encouraging, even though it was penalized by effects from the past and by some non-recurring items (normalized operating profit of EUR -1.1 million).
 All BUs have seen a significant improvement in the quality of execution, with improved margins for some of them.
 The net result is negative, because of non-recurring items like restructuring costs, write-down on some non-trade receivables of the PHE BU and the taxes in the US.

 Sopal International SA, majority shareholder of Hamon & Cie (International), will bring to the latter the 38.89% stake it holds in the Spanish company Esindus in exchange of Hamon shares. This contribution of Esindus presents a strategic, economic and industrial interest for Hamon, which will increase its capital accordingly - see note 5.

 Net working capital and net financial debt increase due to higher level of on-site activities (ReACT TM, plant Vogtle, …), to delays of payment of some trade receivables and to customers having delayed the final acceptance of some major projects. This will be tackled by the reinforcement of equity - see note 5.

 No interim dividend.

In view of the general economic environment, Hamon does not release any guidance on its future results. i

Table of contents

I. INTERIM CONSOLIDATED MANAGEMENT REPORT ...............................................1
1. Commercial activities ......................................................................................................1
2. Consolidated income statement .......................................................................................2
3. Overview by business unit ...............................................................................................4 a) Cooling Systems ..........................................................................................................4
b) Process Heat Exchangers .............................................................................................4 c) Air Quality System ......................................................................................................5 d) NAFTA ........................................................................................................................5
4. Consolidated balance sheet ..............................................................................................6
5. Reinforcement of equity ..................................................................................................7
6. Post Balance Sheet Events ...............................................................................................7
II. DECLARATION OF RESPONSIBILITY ..........................................................................8
III. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS ..................9
1. Condensed consolidated statement of profit or loss ........................................................9
2. Condensed consolidated statement of comprehensive income ......................................10
3. Condensed consolidated statement of financial position ...............................................11
4. Condensed consolidated statement of changes in equity ...............................................12
5. Condensed consolidated cash flow statement ................................................................13
6. Notes to the condensed consolidated interim financial statements................................14 a) Declaration of compliance .........................................................................................14
b) Principal accounting policies .....................................................................................14 c) Subsidiary companies ................................................................................................14 d) Exchange rates used by the Group .............................................................................15 e) Information by segment .............................................................................................15 f) Operating expenses ....................................................................................................17 g) Other operating income (expenses) ...........................................................................18 h) Non-recurring income (expenses) ..............................................................................18 i) Net finance costs ........................................................................................................19 j) Goodwill ....................................................................................................................20 k) Available-for-sale financial asset...............................................................................20 l) Construction contracts ...............................................................................................21 m) Trade and other receivables .......................................................................................21 n) Financial liabilities.....................................................................................................22

o) Derivative instruments ...............................................................................................23

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p) Financial instruments .................................................................................................24 q) Commitments .............................................................................................................26 r) Information on financial risks management ..............................................................27 s) Related parties............................................................................................................27 t) Events after the balance sheet date ............................................................................27
IV. AUDITOR'S REPORT......................................................................................................28

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GROUP (MEUR) H1 2015 H1 2014

During the first half year 2015, the Group booked new orders amounting to EUR 248 million, lower than those of H1 2014 because of some late decision taking by customers and of the lack of signature of big orders during the first six months of 2015 (no control on the timing of negotiations).
Emerging countries represented around 60% of new order bookings in H1 2015, thanks to important new orders in Latina America and in the Middle East.
The Group is confident to book important new orders in H2 2015 and to reach a level of new order bookings comparable to the one of 2014.
Backlog, at EUR 764 million, remained very strong and will allow a sustained level of activity during the coming quarters.
The abovementioned new order booking and backlog figures exclude intersegment activities.

1

Revenue remained stable compared to H1 2014, but was lower than our forecast, due to delays encountered by some customers on sites.
The gross profit margin was comparable to last year (14%).

Results in EUR per share

Average number of shares 8.996.337 7.189.772

H1 2015 EBITDA is in line with the H1 2014 results, despite the negative contribution of the Process Heat Exchangers BU, which carries on its in-depth transition towards a profitable business model. Excluding this BU, the H1 2015 EBITDA of the other BUs would have amounted to EUR 17.0 million versus EUR 13.5 for H1 2014 (+26%).

2

EBIT is impacted by the restructuring costs of the Process Heat Exchangers BU and by non-recurring items (write-down on some non-trade receivables of the PHE BU).
Finance costs benefit from low short-term interest rates and from some foreign exchange gains on the
US dollar.
Income tax results from the profit made by the NAFTA BU.
Detailed explanations on the activities of this half year are given in the overview by business unit.

3

Cooling System (MEUR) H1 2015 H1 2014

New orders booked by the Cooling Systems BU amounted to EUR 134 million during H1 2015.
Dry Cooling booked new orders in some new countries, whereas Wet Cooling also showed very strong performances, with the signature of several contracts for new units or important revamping projects as well as aftermarket service in Europe and in North America.
The BU is confident on the evolution of new order bookings during the second half year. The backlog at end of June represented more than one year of activity.
Revenue, amounting to EUR 108 million, was lower than during H1 2014 because some contracts were delayed by customers.
However, the global performances of this first half year are very good compared to those of H1 2014 (+56%), thanks mainly to the outstanding execution of our projects (both in Wet and Dry Cooling) and to the strict management of our overheads costs thanks to increased synergies within the business unit.

Process Heat Exchanger

(MEUR) H1 2015 H1 2014

Bookings 32,0 23,6

Backlog 62,9 36,4

Revenue 18,7 28,7

EBITDA -7,4 -2,8

EBITDA/Revenue -40,5% -9,6%

Average headcount 216 230

New order bookings at the end of June 2015 were higher than those of H1 2014, with a significant part coming from the Middle East and South Korea.

The results remain too low and are still negatively impacted by some old contracts. Excluding the non- recurring items, the normalized operating profit amounted to EUR -1.1 million, due to the lack of volume and thus of profit recognition (only EUR 18 million revenue). An action plan has been launched to reorganize the BU, to allocate resources in France, Belgium, Middle East and Korea better and to improve project management as well as financial control.

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AQS (MEUR) H1 2015 H1 2014

Even though H1 2015 new order bookings (slightly above EUR 25 million) were lower than those of H1 2014, the second quarter saw an increase of business opportunities as well as some new orders, particularly in Africa and in Asia.
The BU management is confident for the second half year, especially due to the fact that, since end of June 2015, new order intentions have been booked and other major decisions are expected very soon. These evolutions will allow the 2015 new order bookings to reach the level of 2014.
Despite this temporary slowdown in terms of new order bookings during the first six months, EBITDA improved significantly versus the same period of 2014. The backlog at the end of June still represented more than one year of activity.
The Flue Gas Desulfurization (FGD) activities complete the traditional filtration activities with contracts all around the world, in Asia, in Central America and in Europe. This diversification, combined with the new business model put in place within the BU three years ago, shows its efficiency.

NAFTA (MEUR) H1 2015 H1 2014

Bookings 56,2 45,2

Backlog 141,9 191,6

Revenue 118,8 86,8

EBITDA 9,1 9,8

EBITDA/Revenue 7,7% 11,3%

Average headcount 335 321

The NAFTA Business Unit kept on showing strong results during this half year. After a slow beginning of the year, the Business Unit activity bounced back with some important new orders booked during the second quarter and in the end, new order bookings were higher than during H1 2014. Backlog decreased versus one year ago, due to the progress made on the ReACT TMproject, but it remains high despite the lack of any new mega-project. The backlog is well diversified, with a broad range of products like aftermarket service, Heat Recovery Steam Generators, Industrial boilers, Fabric filters, Electrostatic precipitators, a ReACT TMunit and Recuperative heaters.

The BU still displays very strong results with a solid EBITDA, in line with the budgeted figure. Management keeps on focusing on overhead cost control to ensure the future profitability and on developing Delta's activities abroad.
5

(1) Stock and net WIP is the sum of 'Inventories', 'Amount due from customer for contract work' & 'Amount due to customers for contract work' (see p 11)

The increase of Group assets & liabilities is partly due to the increase of the US dollar exchange rate versus the Euro.
Net debt increased due to a combination of events:
 Delays to get customer payments in China and in the Process Heat Exchangers BU.
 Delays in the final acceptance of some major projects of which the execution is completed.
 On-site construction of some mega projects, which uses cash (Plant Vogtle, ReACT TM, Kozienice).
 Lower level of new order bookings in H1 2015 and hence of customer advance payments.
An expected receivable of EUR 12 million had been paid on July 6th, so just after the closing of the books.

For the reasons explained in point 5, the long-term financial debts have been reclassified as short-term financial debts.

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Due to the debt increase, some ratios imposed by financing agreements were not respected as of 30 June
2015. The contract between the Group and its financial creditors foresee, in such a case, a possibility to remedy through a reinforcement of the Group equity.
In this context the Hamon & Cie board of directors has proposed to proceed with a capital increase soon, via (among others) a contribution in kind by Sopal International SA of the shares it holds in Esindus SA (Spain) in exchange of Hamon shares.

There are no significant post balance sheet events to report.

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We hereby certify that, to the best of our knowledge, the condensed Consolidated Interim Financial Statements prepared in accordance with the IAS 34 'Interim Financial Reporting' as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group for the first half year of 2015. The commentary on the overall performance of the Group from page 1 to 7 in our view offers a fair and balanced review of the overall performance of the business during the first half year of 2015. Any material related parties' transactions or conflicts of interest have been disclosed in the financial information. There have been no material changes to the risks and uncertainties for the Group as outlined in the 2014 Annual Report; these risks and uncertainties remain applicable for the financial performance of the Group for the remainder of 2015.
4 September 2015
Francis Lambilliotte

CEO

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