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Hamon Press Information Release


									Hamon                                                     Press
Information                                               Release

Regulated information                                             24 February 2009, 6:00 PM
                                2008 Annual Results
          New order bookings, backlog and operating margin are up !

Significant increase in new order bookings and backlog, reflecting the excellent positioning
of the Group and its products
       ● New order bookings at EUR 469.5 million (+8%)
       ● Backlog at end of year at EUR 391.0 million (+40%)

Net result of EUR 18.9 million
       ● Net result exceeds previous record level of 2007
       ● EBIT margin reaches a new historical high of 11.9% of revenue (+2%)
       ● Reduction of finance costs despite the impact of exchange rate variations on
          financial debt in foreign currencies
       ● Result of discontinued operations of EUR – 1.8 million, following the settlement of
         the SPX claim.

Revenue in temporary decline, due to
      ● Relatively low opening backlog as of 1st January 2008
      ● Longer duration of execution of the projects
      ● Decline of the average US dollar exchange rate in 2008

Strengthening of the balance sheet structure
       ● Net financial debt of EUR 10.8 million (EUR -16.1 million versus 2007)
       ● Net financial debt / equity ratio of 0.2
       ● Net financial debt representing 23% of the 2008 EBITDA

Reactivation of the Group activities in Brazil as of 1st October 2008

End of the non-compete period agreed with SPX, which allows Hamon to develop its wet
cooling activities in North America and dry cooling activities worldwide.

Return to dividends
      ● Advance payment on dividends of EUR 0.30 per share on 5 September 2008
      ● Payment of remaining part of dividend amounting to EUR 0.27 per share
         on 15 May 2009

Hamon                                                      Press
Information                                                Release


In view of the general economic environment, it has been decided not to release any guidance on
the future results. However the Group confirms its good positioning for 2009 given its excellent
backlog and its strong financial structure.

Comment : unless mentioned otherwise, all the comparisons made in the present document
refer to 2007.


1. Commercial activities

 Group                            in EUR million        2008        2007

 New order bookings                                       469,5       435,0
 Backlog on 31/12                                         391,0       279,7

New order bookings reached a record level at EUR 469.5 million. The activities of the Hamon
Group expanded favorably in 2008, based on a strong demand for the products of our various
business units during the first half year. The second half year remained strong, with new order
bookings 9% higher than during the second half of 2007. The new orders booked have a longer
period of execution (18 to 36 months versus 9 to 15 months in the past). Indeed, Hamon is
booking more and more contracts related to new units, mainly for power plants; delaying the
recognition of revenue resulting from execution of these new orders in our financial statements.

Backlog, amounting to EUR 391.0 million, is at a very high level and allows us to expect good
future results.

Hamon                                                                    Press
Information                                                              Release

2. Summarized consolidated income statement

                       in EUR million                                2008          2007
 Revenue                                                               366,7         432,6
 EBITDA                                                                 46,6          46,3
 Operating profit before restructuring costs                            43,8          43,4
 Restructuring costs                                                    -0,1           0,0
 Operating profit after restructuring costs (EBIT)                      43,7          43,4
                         EBIT/Revenue                                   11,9%         10,0%
 Net finance costs                                                       -8,6          -9,9
 Share of the profit (loss) of associates                                 0,0           0,0
 Result before tax (continued operations)                                35,1          33,5
 Income tax expenses                                                    -14,4         -14,0
 Net result from continued operations                                    20,7          19,5
 Net result of discontinued operations                                   -1,8          -1,2
 Net result for the year                                                 18,9          18,3
 Share of the group in the net result                                    18,5          18,2
                               Results in EUR per share
 Average number of shares                                         7 191 472      7 191 472
 EBITDA per share                                                      6,48           6,44
 Earnings per Share (EPS)                                              2,57           2,54
The income statement presentation has been modified. To improve its readability, interests received on Cash &
equivalents and exchange rate differences related to debt are now included in net finance costs..
Net result, amounting to EUR 18.9 million, exceeds the historical level of 2007. It is worth
noting that this net result is obtained with an EBIT of EUR 43.7 million and an 11.9% operating
margin, a new absolute record for the Group.

These excellent results would have been even better if revenue had not been limited to EUR
366.7 million. This decline in revenue is explained by:
   - The relatively low level of opening backlog as of 1st January 2008
   - The longer average execution period of our projects whose effect, given the adopted
       accounting method, is to delay the recognition of turnover of the contracts in progress; as
       a comparison, with a similar kind of new orders as in 2007, the same level of new orders
       booked in 2008 would have generated revenue around EUR 45 million higher.
   - The negative change in the average exchange rate of the US dollar versus 2007, which
       reduced our revenue by EUR 14.3 million.

Hamon                                                        Press
Information                                                  Release

In other terms, with the same product mix and US dollar exchange rate as in 2007, the 2008
revenue would have reached EUR 426 million, a level close to 2007. Gross margin and EBIT
would have been EUR 10.7 million higher (EUR 1.7 million impact of US dollar and around
EUR 9 million impact of product mix).

Hamon activities remained extremely strong, with overhead costs well under control. On the
other hand, whereas 2007 had been impacted by expenses related to the exit of our fire
engineering activities in South Africa (EUR -1.5 million), the year 2008 benefits from the sale of
the GEI shares in India, or a result before tax of EUR +0.8 million.

It should be noted that the income statement presentation has been modified to make it more
readable; the interest income on cash & equivalents and the exchange rate differences related to
the debt are now in interest income or interest charges, below the operating result.

For a more detailed overview of the business, please see the analysis by business unit.

Net finance costs reduced thanks to the improved borrowing conditions subsequent to the 28
December 2007 debt refinancing. This refinancing had a EUR 2 million impact on the 2007
accounts. In 2008, exchange rate fluctuations and the active management of the Group debt in
USD, used to cover the long position of the Group in US dollar, have negatively impacted the
result by EUR 2.1 million.

The effective tax rate, at 41.1%, is slightly lower than in 2007; this is mainly due to the lower
part of the result represented by the U.S. activities, more heavily taxed. On the other hand, the
Group believes that it should be able, during the next few years, to progressively benefit from its
deferred tax assets amounting to EUR 6.3 million in the balance sheet as of 31 December 2008
(excluding the deferred tax assets which have not been taken into account, amounting to EUR 23

The net result of discontinued operations includes EUR 1.5 million of costs related to the
agreement concluded between Hamon and SPX in December 2008, putting an end to five years
of expensive legal proceedings.
It should be noted that the consolidation scope has been modified and includes :
     - from 1st August 2008 the activities of ACS ;

Hamon                                                     Press
Information                                               Release

   - from 1st October 2008 the activities of Hamon Research Cottrell do Brazil,
which contributed EUR 5.8 million to revenue; EUR 1.9 million to EBIT and
EUR 1.0 million to net result.

3. Overview by business unit
       a) Cooling systems

Cooling systems                   in EUR million          2008        2007

New order bookings                                           147,0       130,5
Revenue                                                      109,4       102,6
Backlog                                                      122,6        93,1
EBIT                                                           9,7         4,2
EBIT / revenue                                               8,8%        4,1%
Average headcount                                              432         417

Cooling Systems booked new orders amounting to EUR 147 million in 2008. Among the main
new orders booked are the construction of two natural draft cooling towers with flue gas
injection for a new RWE power plant in Westfalen, Germany; the revamping and performance
enhancement of six natural draft cooling towers in France, Germany and Switzerland; the
construction of mechanical draft cooling towers in Chile, in Qatar, in Australia. Hamon also
concluded a contract for supplying fan-assisted natural draft cooling towers for EnBw,
illustrating once again the continuously improving technological excellence of Hamon.

Revenue amounted to EUR 109.4 million. This figure takes into account the general trend of
longer durations of the projects, due to a shift towards more new construction and less
revamping. The consequence of this longer execution period is to slow down the revenue
recognition of orders booked late 2007 and in 2008.

The EBIT improvement, +130% versus 2007, results from the constant effort given to the good
project execution and from strict control of overhead costs at all levels.

Hamon                                                         Press
Information                                                   Release

       b) Heat exchangers

Heat Exchangers                     in EUR million            2008        2007

New order bookings                                                49,4         53,0
Revenue                                                           48,9         39,8
Backlog                                                           36,8         34,9
EBIT                                                               4,6          2,4
EBIT / revenue                                                   9,4%         6,1%
Average headcount                                                  170          163

New orders bookings amount to EUR 49.4 million. The delay in some order bookings, due to over
activity of the oil & gas industry, was partially offset during the second half year. The main new orders
include those for a Hellenic Petroleum refinery and for Turkmengaz. Moreover, the number of “hot
tenders” remains very high.

Revenue increased sharply, reflecting the excellence of the Hamon production tools and their high level
of utilization.

The operating result was about double that of 2007, reaching EUR 4.6 million thanks to the revenue
increase while maintaining the same level of fixed costs together with good project management.

       c) Air pollution control outside NAFTA

APC outside NAFTA                   in EUR million            2008        2007

New order bookings                                                53,2         48,7
Revenue                                                           37,6         56,9
Backlog                                                           41,9         23,1
EBIT                                                               3,1          6,1
EBIT / revenue                                                   8,2%        10,7%
Average headcount                                                  112           59

The BU APC outside NAFTA has taken over all the APC activities of the Group outside of the United
States, Mexico and Canada. Since 1st October, it includes the Brazilian activities. This BU booked a high
level of new orders during the year, which shows the excellence of its products and the good fit of its
global sourcing strategy with the needs of its customers, especially for Cottrell electrostatic precipitators
(ESP) and fabric filters. Hamon booked its first major new order in South Africa for the revamping and
performance enhancement of the ESPs of six 600 MW boilers of the Eskom power plant in Matla. In
addition, Hamon remains active in upgrading waste incinerators to bring them into compliance with
Hamon                                                        Press
Information                                                  Release

regulations, among others for the Remival unit in Reims (France).

The reduced revenue is due to the low backlog at the end of 2007 and to the longer execution period for
orders booked during the year, which means a lower level of recognition in 2008.

The operating result, amounting to EUR 3.1 million, is explained by a lower revenue in 2008 and by the
efforts made to expand the activities of the business unit in South Africa and in Eastern Europe, including
a headcount increase. Despite these elements, the EBIT margin remains good and close to the Group
target, at 8.2% of revenue.

The increase in average headcount results mainly from the South African, Brazilian (from 1st October
2008) and Indian activities.

       d) Air pollution control USA

APC USA                           in EUR million             2008        2007

New order bookings                                              113,0       111,1
Revenue                                                          76,8       150,7
Backlog                                                          65,8        24,1
EBIT                                                             17,1        28,1
EBIT / revenue                                                 22,3%       18,6%
Average headcount                                                 175         182

New order bookings, at EUR 113 million, are comparable to 2007. Expressed in USD, they increased by

The largest new orders are related to deSOx / deNOx using the WGS+ Exxon Mobil technology for oil
refineries (Valero Memphis and Delaware), fabric filters for power plants (Consumer Energy, Pacificorp)
and dry FGD (flue gas desulphurization) for Sun Coke Energy.

The change in revenue and EBIT can be explained by two main factors:
   - Low backlog as of end of December 2007.
   - Longer duration of execution of the orders booked by the business unit, which means a lower
       recognition in 2008 of the orders booked during the year.

The EBIT margin, at 22.3%, sets a new record following :
   - Tight control of operating costs, thanks to a continuous improvement of the productivity of our
Hamon                                                      Press
Information                                                Release

   -   A change to the customer mix, with a growing importance of activities for the oil & gas industry,
       traditionally with a higher margin.
   -   The finalizing of several contracts which ended up with higher margins than what had been

       e) Chimneys

Chimneys                         in EUR million            2008        2007

New order bookings                                             99,6        91,6
Revenue                                                        91,5        83,1
Backlog                                                       117,1       104,6
EBIT                                                            9,1         4,9
EBIT / revenue                                               10,0%        5,9%
Average headcount                                                63          64

The Chimneys BU – Hamon Custodis in the United States and in Canada – continued to benefit from a
strong new chimney market. In 2008, it booked new orders for two new chimneys for Georgia Power, one
for NorthEast Utilities and revamping contracts among others with Arizona Public Service, Pacificorp
and Inco in Canada.

The good progress and execution of the projects signed in 2006 and in 2007 for the construction of new
chimneys allowed increased revenue and improved profitability thanks to the volume effect and to tight
cost control.

Hamon                                                          Press
Information                                                    Release

4. Summarised consolidated balance sheet

Consolidated balance sheet                  in EUR million   31/12/2008   31/12/2007

Non-current assets                                                67,1         57,0
Current assets excl. cash                                        159,8        142,2
Cash & equivalent                                                 59,1         35,7
Total assets                                                     285,9        234,8
Equity                                                            49,4         34,4
 Group share                                                      48,7         34,1
 Minority interests                                                0,7          0,3
Non-current liabilities, excl. borrowings                          9,6         13,9
Non-current borrowings                                            40,3         50,5
Current liabilities, excl. borrowings                            157,1        124,0
Current borrowings                                                29,6         12,1
Total equity and liabilities                                     285,9        234,8
Net financial debt                                                 10,8         26,9
Net working capital (continued operations)                          5,9         18,2

The Hamon balance sheet structure shows continued improvements. Equity amounts to EUR 49.4 million
after taking into account the advance payment on dividends made in September 2008.

The non-current assets variation results from:
   • The settlement of the receivable from SPX (EUR - 5 million).
   • Goodwill resulting from the acquisition of ACS and                       of   the   Brazilian   activities
      (EUR + 11 million).
   • Investments made during the year (EUR + 4 million).

Net financial debt, amounting to EUR 10.8 million, fell sharply thanks to the operating cash flows. It
represents only 23% of EBITDA (based on the last 12 months) and 0.2 x equity – ratios; improving

Hamon                                                        Press
Information                                                  Release

5. Events after the balance sheet date
Hamon has entered into a commercial joint venture with Solel, one of the world leaders in solar panels, in
the area of thermal solar power plants, a booming market. Hamon Solel will supply the solar powered
steam generation systems (SSGS), namely mirrors, the steam generation and recovery components,
excluding the steam turbine and power generator.

Together with taking a stake in Xylowatt (a company active in biomass gasification), this agreement
shows the willingness of the Hamon Group to participate to the renewable energy sector.


The auditor, Deloitte Reviseurs d'entreprises SC s.f.d. SCRL represented by Laurent Boxus, confirmed
that the accounting information included in this press release does not result into any qualification and is
in accordance with the financial statements approved by the board of directors.

Hamon                                                                    Press
Information                                                              Release


                                                          2008          2007           2006
in EUR '000'                                        e

Revenue                                                     366 679        432 648       354 423
Cost of sales                                              -279 240       -339 799      -285 260
Gross profit                                                 87 439         92 849        69 163

Sale & marketing costs                                       -8 697         -9 872        -8 677
General & administrative costs                              -34 018        -35 147       -24 772
Research & development costs                                   -663           -580          -700
Other operating income / (expenses)                            -210         -3 813        -2 605
Operating profit before restructuring costs                  43 851         43 437        32 409

Restructuring costs                                            -132            -8           -441
Operating profit (EBIT)                                      43 719        43 429         31 968

Interest income                                               1 255          1 240          430
Finance costs                                                -9 904        -11 126        -7 600
Share of the profit (loss) of associates                          0              0           407
Result before tax                                            35 070         33 543        25 205

Income tax expenses                                         -14 411        -13 952       -10 351
Net result from continued operations                         20 659         19 591        14 854

Net result of discontinued operations                        -1 788        -1 246         -1 754
Net result for the year                                      18 871        18 345         13 100
  Equity holders of the company                              18 500        18 258         13 021
  Minority interest                                             371            87             79

Earnings per share
Continued and discontinued operations
Basic earnings per share (EUR)                                2,57           2,54           2,19
Diluted earnings per share (EUR)                              2,57           2,54           2,19

Continued operations
Basic earnings per share (EUR)                                2,82           2,71           2,48
Diluted earnings per share (EUR)                              2,82           2,71           2,48

The income statement presentation has been modified. To improve its readability, interests received on Cash & equivalents are
now presented in interest income and exchange rate differences related to debt in interest charge, below operating profit.

Hamon                                                       Press
Information                                                 Release

                                       Forward looking statements
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

For all additional information, please contact :

Hamon Investors Relations    
Francis Lambilliotte, CEO                    +
Bernard Van Diest, CFO                +

                                             Financial calendar

Presentation to analysts                                                           4/03/2009
Shareholders meeting                                                              28/04/2009
Trading update Q1 2009                                                            28/04/2009
Payment of remaining part of dividend                                             15/05/2009
Publication of the first half-year 2009 results                                   28/08/2009

                                             Hamon profile
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 pollution control (APC)
systems, and chimneys, used in power generation, oil & gas and other heavy industries like metallurgy,
glass, chemicals.

Hamon & Cie
Rue Emile Francqui 2, B-1435 Mont-St-Guibert, Belgique


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