Hamon & Cie : Trading update Q3 2016

Hamon booked new orders for EUR 384 million during the first 9 months of 2016 (EUR 325 million for the same period of 2015, or +18%). Q4 looks promising, especially for the Cooling business, with several letters of intent signed.

As of end of September 2016, power producers and the Oil & Gas industry were still the main customers of the Group but their share went down from 79% of the new order bookings at the end of Q3 2015 to 68% in 2015 during the same period, due to the important increase of the Metal Industry.

The traditional Hamon markets, Europe and North America, represented 46% of the total new orders (same as of end of September 2015).

This trend confirms the importance of the emerging countries for the Hamon Group (54% of new order bookings), Asia-Pacific being the leading area in 2016.

The new orders booked during the first nine months amounted to EUR 128 million. In Wet Cooling, besides 2 significant contracts (one for a combined cycle power plant in USA and the other for the Oil industry in Germany) Hamon booked several contracts for both new units and revamping & maintenance in Europe, USA and Asia.

In Dry cooling, a significant contract was booked in the Middle East during the third quarter.

With already four contracts for which oral confirmation or Letters Of Intent have been received and totaling about EUR 24 million, the BU is confident on the level of new orders in the fourth quarter of 2016, which should contribute to a backlog at the end of this year representing about one year of activity.

Oil prices, which had a significantly negative impact on investment decisions during the last quarters, keep on going up, following the recent announcement by the Russian government of an agreement with OPEC to limit their oil production. Thanks to its presence in the Middle East, the business unit was awarded several important projects in that region in 2016, amounting to more than EUR 30 million.

New orders of the first nine months are in line with the budget and are significantly higher than those of the same period last year. The BU, which suffered from a market slowdown during the first half year, had a higher capacity utilization rate of its factories in Q3. In accordance with the BU strategic plan, the deployment in Russia has now been implemented, with a significant first order.

The BU management remains confident on the level of new orders it should book in Q4 2016.

At EUR 120 million, the bookings of the Business Unit stand way above those of the same period of 2015 and also exceed any previous performance of the BU.

Bookings of the third quarter were mostly concentrated in the Customer Services segment with orders well spread across our markets. Of particular importance was a contract signed to repair/improve an installation recently supplied by a Chinese competitor that totally failed to meet its expected performances.

The BU has also been selected as preferred bidder for two major projects amounting to more than EUR 50 million in South East Asia that will be signed before year-end.

The NAFTA region had solid bookings of approximately EUR 85 million during the first nine months of 2016, on par with the same time period of 2015. Bookings were evenly distributed among each market segment with several large awards in the following product lines: Silos, HRSG's, Recuperative Heaters, and aftermarket contracts along with a mix of smaller awards across a variety of product lines contributing to the total.

Deltak had an increased level of new order bookings, which should give it a good backlog by the end of the year.

• New order bookings: new projects for which a contract or a letter of award has been signed between Hamon and the customer, during a given period.
• Backlog: at a given date, the residual value of all new orders booked by Hamon, i.e. the difference between the value of these contracts and the revenue recognized so far on these contracts.

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

This presentation contains forward-looking information that involves risks and uncertainties, including statements about Hamon's plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Hamon. Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, neither Hamon nor any other person assumes any responsibility for the accuracy of these forward-looking statements.

For all additional information, please contact:

Hamon Investors Relations investorsrelations@hamon.com

Francis Lambilliotte, CEO corporate@hamon.com+32.10.39.04.05 Christian Leclercq, CFOchristian.leclercq@hamon.com +32.10.39.04.22

Annual General Shareholders Meeting 2017 24 April 2017

The Hamon Group is a world player in engineering & contracting (design, installation and project management). Its activities include the design, the manufacturing of critical components, the installation and the after-sale services of cooling systems, process heat exchangers, air quality systems (AQS), Heat Recovery Steam Generators (HRSG) and chimneys, used in power generation, oil & gas and other heavy industries like metallurgy, glass, chemicals.