TENNANT COMPANYEarnings Release Conference Call

Fourth Quarter 2015

Tuesday, February 23, 2016

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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.

Additionally, on this conference call we will discuss non-GAAP measures that include or exclude special or non-recurring items. For each non-GAAP measure, we also provide the most directly comparable GAAP measure. There were special non-GAAP items in the fourth quarter of 2015. Our 2015 fourth quarter earnings release includes a reconciliation of these non-GAAP measures to our GAAP results for the fourth quarter and 2015 full year.

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TENNANT COMPANY

FORWARD LOOKING STATEMENTS & NON-GAAP MEASURES

• 2015 fourth quarter consolidated net sales of $205.9M– Organic sales growth of 0.2% over prior year quarter– More sluggish business environment in fourth quarter– Solid sales through distribution and to strategic accounts– Organic sales growth of 0.5% in Americas and 1.1% in EMEA– Record sales quarter for scrubbers equipped with ec-H2OTM

– Net earnings of $0.93 per diluted share, as adjusted, on a “Constant Currency” basis – equal to prior year quarter

• 2015 full year consolidated net sales of $811.8M– Organic sales growth of 4.3% over prior year– Net earnings of $3.00 per diluted share, as adjusted, on a

“Constant Currency” basis – up 11.1% versus prior year• Growth strategies will continue to increase market share• Sold Green MachinesTM outdoor city cleaning line (01/2016)

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TENNANT COMPANY

2015 FINANCIAL OVERVIEW

We remain committed to organic Sales goal of $1 Billion and 12% or above Operating Profit Margin

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TENNANT COMPANY

GROWTH STRATEGY

• 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

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TENNANT COMPANY

NEW PRODUCTS• 55 new products launched from

2012 to 2014

• 36 new products and product variants in 2015 full year– Sales of new products introduced in last three years rose

to 26% of equipment sales

• Plan to launch 13 new products in 2016– Several significant industrial machine launches

T300

• New products and technologies– IRIS® telemetry asset management system

– ec-H2OTM next generation NanoCleanTM

– Orbio® os3

• Digital initiatives– Customer Relationship Management (CRM)

– “My Tennant” portal for existing customers

– Enhancing platform to evolve e-commerce into a significant revenue channel

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TENNANT COMPANY

INNOVATIVE PRODUCTS and TECHNOLOGIES, and EFFICIENCIES

David Windley

President, IQTalent Partners

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TENNANT COMPANY

NEW BOARD MEMBER

• Diverse portfolio of initiatives to create value

• Introductions of new products and technologies

• Expanding global sales and marketing to increase global market share

• Running a more efficient business to raise productivity

• Global economic uncertainty and unfavorable foreign currency headwinds continue

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TENNANT COMPANY

GROWTH & PROFITABILITY

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Q4’15

SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

Adjusted*S&A EXPENSE (% of sales)

Adjusted*

OPERATING PROFITAdjusted*

OPERATING PROFIT MARGINAdjusted*DILUTED EPS

Q4’14 CHANGE

TENNANT COMPANY

2015 FOURTH QUARTER

$205.9 M

42.4%

3.9%

28.9%

$19.7 M

9.6%

$0.78

$216.3 M

43.0%

3.4%

29.1%

$22.6 M

10.5%

$0.93

(4.8%)

(60 bps)

+50 bps

(20 bps)

(12.8%)

(90 bps)

(16.1%)

Organic Sales Growth 0.2% | EMEA Sales up 1.1% Organically

*Q4’15 results are adjusted to exclude restructuring charge in S&A of $2.0M pre-tax ($0.09 loss per diluted share) and asset impairment favorable tax true-up of $0.7M ($0.04 per diluted share).

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TENNANT COMPANY2015 FOURTH QUARTER BY REGION

• Americas– Sales up 0.5% organically

(excluding 3.0% unfavorable foreign currency impact)

– North America sales increased 1.6% organically– Strong sales through distribution and to strategic

accounts in North America– LatAm declined 11% due to challenging economy– Brazil achieved 0.3% organic sales growth in

fourth quarter and 3.5% for 2015 full year

• EMEA– Sales increased 1.1% organically

(excluding 10.5% unfavorable foreign currency impact)

– Strong sales to Master Distributor for CEEMEA region and organic sales growth in Western Europe were partially offset by lower sales of outdoor equipment

– Green MachinesTM assets classified as held for sale– Restructuring Charge of $2.0M to reduce

infrastructure costs

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TENNANT COMPANY2015 FOURTH QUARTER BY REGION

• APAC– Sales declined 3.6% organically

(excluding 8.0% unfavorable foreign currency impact)

– Organic sales growth in Australia, China and Japan was more than offset by lower organic sales in the other Asian countries

– China organic sales up 5.5% for 2015 full year

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TENNANT COMPANY2015 FOURTH QUARTER BY REGION

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Q4’15

SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

Adjusted*S&A EXPENSE (% of sales)

Adjusted*

OPERATING PROFITAdjusted*

OPERATING PROFIT MARGINAdjusted*DILUTED EPS

Q4’14 CHANGE

TENNANT COMPANY

2015 FOURTH QUARTER

$205.9 M

42.4%

3.9%

28.9%

$19.7 M

9.6%

$0.78

$216.3 M

43.0%

3.4%

29.1%

$22.6 M

10.5%

$0.93

(4.8%)

(60 bps)

+50 bps

(20 bps)

(12.8%)

(90 bps)

(16.1%)

Organic Sales Growth 0.2% | EMEA Sales up 1.1% Organically

*Q4’15 results are adjusted to exclude restructuring charge in S&A of $2.0M pre-tax ($0.09 loss per diluted share) and asset impairment favorable tax true-up of $0.7M ($0.04 per diluted share).

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SALES

GROSS MARGINAdjusted*OPERATING PROFITAdjusted*

OPERATING PROFIT MARGINAdjusted*

DILUTED EPS

Q4’15 Q4’14 CHANGE

TENNANT COMPANY

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

CONSTANT(1)

CURRENCY

Q4’15

AS REPORTED

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

*Q4’15 results are adjusted to exclude restructuring charge in S&A of $2.0M pre-tax ($0.09 loss per diluted share) and asset impairment favorable tax true-up of $0.7M pre-tax ($0.04 per diluted share).

$216.7 M

43.3%

$23.3 M

10.8%

$0.93

$216.3 M

43.0%

$22.6 M

10.5%

$0.93

+0.2%

+30 bps

+3.0%

+30 bps

+0%

$205.9 M

42.4%

$19.7 M

9.6%

$0.78

• 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 full year of 29.6%(excluding special items)

• Base tax rate of 30.1%(excluding special items and routine discrete items)

• Federal R&D tax credit – was re-enacted for 2015 before year-end; full year favorable benefit recorded in 2015 fourth quarter

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TENNANT COMPANYSUCCESSFUL TAX STRATEGIES

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TENNANT COMPANYSTRONG BALANCE SHEET

COMMITMENT TO SHAREHOLDER RETURN

FY’14 FY ’15

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TENNANT COMPANY2016 EPS AND SALES GUIDANCE

2015ACTUAL

As Reported$1.74 EPS

$811.8M SALES

As Adjusted$2.49 EPS

$811.8M SALES

2016 Financial Outlook$2.25 to $2.55/$795M to $825M

KEY EXPECTATIONS FOR 2016• 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).• Capital expenditures in the range of $25M to $30M.

QUESTIONS?

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• Anticipate foreign currency and global economic volatility remain challenging in coming quarters

• Tennant is competitively advantaged – through our innovative products and technologies, and go-to-market strategy – and well positioned to perform efficiently

• We remain committed to our goals of $1 billion in organic sales and a 12% or above operating profit margin

• Will update you in April with 2016 first quarter results

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TENNANT COMPANY

SUMMARY

THANK YOU