2. This presentation contains certain statements that are considered “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally can be identified by the use of forward-looking
terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,”
“project,” or “continue” or similar words or the negative thereof. These statements do not
relate to strictly historical or current facts and provide current expectations of forecasts of
future events. Any such expectations or forecasts of future events are subject to a variety
of factors. We caution that forward-looking statements must be considered carefully and
that actual results may differ in material ways due to risks and uncertainties both known
and unknown. Information about factors that could materially affect our results can be
found in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year
ended December 31, 2015. Shareholders and potential investors are urged to consider
these factors in evaluating forward-looking statements and are cautioned not to place
undue reliance on such forward-looking statements.
We undertake no obligation to update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise. Investors are advised to
consult any further disclosures by us in our filings with the Securities and Exchange
Commission and in other written statements on related subjects. It is not possible to
anticipate or foresee all risk factors, and investors should not consider any list of such
factors to be an exhaustive or complete list of all risks or uncertainties.
Safe Harbor
Statement
2
3. About
Tennant Company
Tennant Company, a Minnesota
corporation founded in 1870 and
incorporated in 1909, is a world leader
in designing, manufacturing and
marketing solutions that empower
customers to achieve quality cleaning
performance, significantly reduce
environmental impact and help create
a cleaner, safer, healthier world.
70consecutive years
of cash dividends
44consecutive years of
increase in annual
cash dividend payout
Balance sheet
NYSE Symbol:
TNC
2015 Revenues:
$812M
3
2015 Employees:
3,164
4. OUR VISION
We will lead our global industry in
sustainable cleaning innovation that
empowers our customers to create a
cleaner, safer and healthier world.
4
5. 5
Competitive Landscape
2011 Global Market Size – $4.6 Billion*
5
17%Tennant | Nobles | Alfa
Nilfisk | Clarke | Viper
Hako | Minuteman |
PowerBoss
Karcher | Windsor |
TecServ | ProChem
Taski
of the market
consists of
others with a
market share
of 3% or less
*Market share data is based on company
revenue and estimates for like categories
18%
12%
7% 4%
42%
7. STRONG DIRECT SALES
& SERVICE ORGANIZATIONS
Strong Direct Sales & Service Organizations
Global Sales Employees Global Direct Service EmployeesGlobal Revenue by Sales Channel
25%
75%
Distribution
Direct
Distribution Partners
More than 80 countries
around the world
Global Strategic Accounts
Cross-functional teams &
market specialists
Factory-Service Direct
Locally based & factory-trained
service technicians
0
100
200
300
400
500
600
2012 2013 2014 2015
Americas EMEA APAC
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015
Americas EMEA APAC
7
9. 9
2015 Revenue of $812M
73%
17%
10%
Americas
EMEA
APACNet Sales by
Geography
22%
14%
61%
3%
Service &
Other
Equipment*
Coatings
Net Sales by
Product Group
Parts &
Consumables
*Equipment Mix
Commercial | 52%
Industrial | 44%
Outdoor | 4%
9
10. We remain committed to organic
Sales goal of $1 Billion and 12% or
above Operating Profit Margin
Growth Strategy
10
Strong new product and technology pipeline
Sales gains in emerging markets
Return to growth in Europe
Ongoing focus on strategic accounts
Expansion of global market coverage
13. CRM & Marketing Automation
Perpetual Lead Generation
Speed-to-Lead
• Better lead visibility and new
processes mean we can
convert leads faster
• Keep the lead pipeline full
with automated marketing
capabilities embedded
inside CRM
Prospecting
• Leverage deep history to
prioritize the known
• Visualize the potential to
discover the new
13
14. e-Commerce
Cleaning solutions made easy online
• Empower our customers
• Anticipate their needs
• Enhance their experience
Good Experience Increase Revenue
• New customers
• New geographies
• Expand products
Lower Cost of Sale
• Self-service
• Reduce manual interventions
• Cost avoidance
14
16. ec-H2O NanoClean™
The Responsible Way to Clean
Next generation ec-H2O | Cleans more soils in more applications
HOW IT WORKS:EC-H2O™ SCRUBBERS | 2008-2015
$896 million+
cumulative revenue
8,000+
customers
30,000+
sites
77,000+
machines
16
Record Sales of $157M in 2015
17. ORBIO® Technologies
On-Site Generation Technology
FOCUS ON “3Cs”
CAMPUS | CHAINS | CONTRACTORS
Improving health and safety for the environment, employees
and people in their care while reducing costs.
GENERATES
cleaner & disinfectant/sanitizer on-site
17
21. SALES
GROSS MARGIN
Adjusted*
OPERATING PROFIT
Adjusted*
OPERATING PROFIT MARGIN
Adjusted*
DILUTED EPS
2015 2014 CHANGE
CONSTANT(1)
CURRENCY
2015
AS
REPORTED
(1)“Constant Currency”: estimated income statement which assumes no change in exchange rates from prior year.
*2015 results are adjusted to exclude restructuring charge in S&A of $3.7M pre-tax ($0.17 per diluted share) and non-cash
long-lived asset impairment of $11.2M pre-tax ($0.58 per diluted share).
$857.1 M
43.8%
$81.4 M
9.5%
$3.00
$822.0 M
42.9%
$72.1 M
8.8%
$2.70
+4.3%
+90 bps
+12.9%
+70 bps
+11.1%
$811.8 M
43.0%
$68.1 M
8.4%
$2.49
2015 Full Year “Constant Currency” View
(excludes estimated foreign exchange impact)
21
23. 2016 Financial Outlook
$2.25 to $2.55 | $795M to $825M
• Net sales in the range of $795M to $825M versus $811.8M in 2015.
• Slower economic growth in North America, modest improvement in
Europe, and growth in emerging markets.
• Foreign currency impact on sales in the range of an unfavorable
1% to 2%.
• Sales decline from divestiture of approximately 1%.
• Organic sales growth, excluding foreign currency exchange impact
and divestiture, in the range of 0% to 4%.
• Foreign currency exchange headwinds estimated to negatively
impact operating profit in the range of $3M to $6M, or
approximately $0.10 to $0.20 EPS.
• Gross margin of approximately 43%.
• R&D expense of approximately 4% of sales.
• Effective tax rate of approximately 31% (negatively impacting 2016
by approximately $0.05 EPS).
• Capital expenditures in the range of $25M to $30M.
28
2016 EPS & Sales Guidance
2015 ACTUAL
$1.74
EPS
$811.8M
SALES
$2.49
EPS
$811.8M
SALES
As Reported As Adjusted
23
24. Summary
24
Anticipate foreign
currency & global
economic volatility
remain challenging
in coming quarters
Tennant has never been
positioned better in the
market with its innovative
product and technology
portfolio and go-to-
market strategy
We remain committed
to our goals of $1 Billion
in organic sales & a
12% or above operating
profit margin
$1B