TENNANT COMPANYEarnings Release Conference Call

First Quarter 2015

Monday, April 27, 2015

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Chris KillingstadPresident and CEO

Tom PaulsonSenior VP, CFO

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TENNANT COMPANY

ON THE CALL TODAY

Our remarks this morning and our answers to questions may contain forward-looking statements regarding the company’s expectations of future performance. Such statements are subject to risks and uncertainties, and our actual results may differ materially from those contained in the statements. These risks and uncertainties are described in today’s news release and the documents we file with the Securities and Exchange Commission. We encourage you to review those documents, particularly our Safe Harbor statement, for a description of the risks and uncertainties that may affect our results.

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TENNANT COMPANY

FORWARD LOOKING STATEMENTS

• Consolidated net sales of $185.7M– 6% organic sales growth over prior year quarter– Record sales for a first quarter

• Growth led by – Robust strategic account sales in Americas– Continued demand for new products– Increased global sales of outdoor equipment

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TENNANT COMPANY

FIRST QUARTER 2015 SALES

On track to reach organic growth goal of $1 Billion and remain committed to 12% or above OP margin

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TENNANT COMPANY

STRATEGIC OVERVIEW

• Americas– Sales up 11.5% organically– Robust sales to two leading big box retailers

in U.S.– LatAm declined due to challenging economy– Brazil positioned for growth with strong

market share

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TENNANT COMPANY2015 FIRST QUARTER BY REGION

Small, simple, affordable On-Site

Generation (OSG) technology

• Generates both cleaning and

antimicrobial solutions

• Fits into most janitorial closets

• Flexibility to dispense in remote locations 7

• EMEA– Sales down 5% organically– Strong outdoor equipment sales– Order patterns improved throughout the quarter

• APAC– Sales down 1.3% organically – Weak economy in Australia– Slower sales in China

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TENNANT COMPANY2015 FIRST QUARTER BY REGION

18 in 2014

362015

Strongest product pipeline ever!

20in 2013

17in 2012

NEW PRODUCT GROWTH

Sales of equipment launched in past three years totaled 14% of equipment revenue for 1Q 20159

Available NOW

ec-H2O NanoClean™FIRST GENERATIONEC-H2O™: 2008-2014

$740 million+ cumulative revenue

7,500+ customers

29,000+ sites

65,000+ machines

• Next generation ec-H2O• Cleans more soils in

more applications

• Nano-scale bubbles drive cleaning

performance

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MORE FLEXIBILITY | EASE OF USE | IMPROVED PRODUCTIVITY

TENNANT COMPANY

T300 SCRUBBER

Jeffrey Moorefield

Senior VP, Global Operations

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TENNANT COMPANY

WELCOME

• New products in core and Orbio

• Sales gains in emerging markets

• Growth in Europe

• Focus on Strategic Accounts

• Expand global market coverage and customer base

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TENNANT COMPANY

GROWTH DRIVERS

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14

SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

S&A EXPENSE (% of sales)

OPERATING PROFIT

OPERATING PROFIT MARGIN

DILUTED EPS

Q1’15 Q1’14 CHANGE

$185.7 M

42.0%

4.2%

33.4%

$8.3 M

4.4%

$0.27

$184.0 M

41.8%

4.1%

32.7%

$9.2 M

5.0%

$0.31

+1.0%

+20 bps

+10 bps

+70 bps

(10.6%)

(60 bps)

(12.9%)

TENNANT COMPANY

2015 FIRST QUARTEROrganic Sales Growth 6.0% | Strong Growth in North America

AMERICAS1Q’15 – 11.5%

2014 FY – 11.6%

TENNANT COMPANY

ORGANIC SALES GROWTH2015 First Quarter 6.0% | 2014 Full Year 10.3%

APAC1Q’15 – <1.3%>2014 FY – 12.8%

EMEA1Q’15 – <5.0%>2014 FY – 4.4%

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SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

S&A EXPENSE (% of sales)

OPERATING PROFIT

OPERATING PROFIT MARGIN

DILUTED EPS

Q1’15 Q1’14 CHANGE

$185.7 M

42.0%

4.2%

33.4%

$8.3 M

4.4%

$0.27

$184.0 M

41.8%

4.1%

32.7%

$9.2 M

5.0%

$0.31

+1.0%

+20 bps

+10 bps

+70 bps

(10.6%)

(60 bps)

(12.9%)

TENNANT COMPANY

2015 FIRST QUARTEROrganic Sales Growth 6.0% | Strong Growth in North America

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SALES

GROSS MARGIN

OPERATING PROFIT

OPERATING PROFIT MARGIN

DILUTED EPS

Q1’15 Q1’14 CHANGE

$195.0 M

42.6%

$10.2 M

5.2%

$0.34

$184.0 M

41.8%

$9.2 M

5.0%

$0.31

+6%

+80 bps

+10%

+20 bps

+10%

TENNANT COMPANY

2015 FIRST QUARTER“CONSTANT CURRENCY” VIEW (excludes estimated foreign exchange impact)

CONSTANT(1)

CURRENCY

Q1’15

AS REPORTED

$185.7 M

42.0%

$8.3 M

4.4%

$0.27

(1) “Constant Currency”: estimated income statement which assumes no change in exchange rates from prior year.

• Remain committed to at least 12% OP margin – Drive organic revenue growth in mid- to high-single digits– Hold fixed costs essentially flat in manufacturing as

volume rises– Strive for zero net inflation at gross profit line– Standardize and simplify processes to improve scalability

of business model

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TENNANT COMPANY

OPERATING PROFIT MARGIN GOAL

• Overall effective tax rate for 2015 first quarter of 32.4%

• Base tax rate of 31.8 % (excl. routine discrete items)

• No benefit in 1Q for Federal R&D tax credit –not yet re-enacted

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TENNANT COMPANYSUCCESSFUL TAX STRATEGIES

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TENNANT COMPANYSTRONG BALANCE SHEET

COMMITMENT TO SHAREHOLDER RETURN

FY’14 1Q’14 1Q’15

(20.0)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

FY14 1Q14 1Q15

Net Receivables 152.4 144.0 134.0

Net Inventory 80.5 73.8 85.6

Cash from Operations 59.4 (3.9) (2.1)

Capital Expenditures 19.6 3.5 4.1

Dividends 14.5 3.5 3.7

Share Repurchases 14.1 3.6 4.1

Cash 93.0 63.4 76.8

Debt 28.1 28.2 26.1

$ Millions

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TENNANT COMPANYREAFFIRMS 2015 EPS GUIDANCE

2014ACTUAL

$2.70

2015 OUTLOOK$2.40 to $2.70

KEY EXPECTATIONS FOR 2015• Net sales in the range of $825M to $850M versus $822M in ‘14.• Economic strength in North America and modest improvement in Europe,

and growth in emerging markets.• Foreign currency impact on sales in the range of an unfavorable 4% to 6%.• Organic sales growth, excluding foreign currency exchange impact, in the

range of 5% to 9%.• Foreign currency exchange headwinds estimated to negatively impact

operating profit in the range of $10M to $12M, or approximately $0.37 to $0.44 EPS.

• Minimal inflation net of cost-saving initiatives and selling price increases.• Gross margin of approximately 43%. • R&D expense of approximately 4% of sales.• Effective tax rate of approximately 31% vs. 27.2% in 2014 (Negatively

impacting 2015 by approximately $0.14).• Capital expenditures in the range of $25M to $28M.

• Ongoing focus on accelerating organic sales growth

• Investments in direct sales, distribution, marketing

• Assumption it will take us into second quarter to further improve “growing pains” in supply chain

• Estimated significant unfavorable impact from foreign exchange rates

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TENNANT COMPANYOUR GUIDANCE REFLECTS

• Increase selling prices in affected markets

• Evaluate potential to expand the scope of hedging strategies

• Explore feasibility of producing and shipping products from locations with more favorable Fx pairing

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TENNANT COMPANYLOOKING AT MITIGATION OF Fx

QUESTIONS?

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• Organic sales grew 6% in 2015 first quarter

• We remain on track to reach our organic growth goal of $1 Billion in sales by 2017

• We remain committed to the goal of a 12% or above operating profit margin

• Will update you in July with second quarter results

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TENNANT COMPANY

SUMMARY

THANK YOU