TENNANT COMPANYEarnings Release Conference Call

First Quarter 2016

Monday, April 25, 2016

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Chris KillingstadPresident and CEO

Tom PaulsonSenior VP, CFO

TENNANT COMPANYOn the Call Today

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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.

TENNANT COMPANYFORWARD LOOKING STATEMENTS

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• 2016 first quarter consolidated net sales of $179.9M– Organic net sales equal to prior-year period– Sluggish business environment continued in 2016 first

quarter– Increased sales through distribution and direct sales– Favorable channel mix and product mix– $32M sales quarter for scrubbers equipped with ec-H2OTM

– Net earnings of $0.29 per diluted share on a “Constant Currency” basis – up 7.4% versus prior-year quarter

• Sales momentum rose toward end of first quarter• Reaffirmed sales and earnings guidance for 2016 full

year

TENNANT COMPANY2016 First Quarter Overview

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

TENNANT COMPANYGrowth 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• Application of lean principles

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• New products and technologies– Sales of new products introduced in

last three years rose to 36% of equipment sales in 2016 first quarter

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

machine launches

– M17 released in late March

M17 Battery-Powered Sweeper-Scrubber

TENNANT COMPANYNew Products

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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

Record Sales of $157M in 2015

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ORBIO® TechnologiesOn-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.

GENERATEScleaner & disinfectant/sanitizer on-site

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– +

Water Recycling

Battery Technologies

Robotics (AGV)

Asset Management

Advanced Product DevelopmentFuture Technologies

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ON-BOARD MACHINE

DIAGNOSTICS

CUSTOMERS• Manage cleaning

programs better• Fleet management• Lower cost-to-clean

• Increased Market Differentiation• Service Efficiency• Customer Intimacy

TENNANT COMPANYIRIS® Asset Management System

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• Improving cost & availability

• ROI for customer

• Reduced weight & footprint size

• Sustainability

• Productivity

• Game-changing solution

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Water RecyclingLithium-Ion Batteries Robotics (AGV)• Addresses labor costs

• Largest potential growth

opportunity

Advanced Product DevelopmentFuture Technologies

DIGITAL TRANSFORMATION

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IRIS®

e-Business

e-CommercePlatform

CRM

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• Diverse portfolio of initiatives to create value• Introductions of new products and technologies• Expanding global sales and marketing to increase

global market share• Building Tennant’s e-Business capabilities• Concurrently running a more efficient business to

raise productivity

TENNANT COMPANYGrowth & Profitability

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SALESGROSS MARGINR&D EXPENSE (% of sales)

S&A EXPENSE (% of sales)

OPERATING PROFITOPERATING PROFIT MARGINDILUTED EPS

Q1’16 Q1’15 CHANGE$179.9 M

43.1%4.4%

34.7%$7.1 M3.9%$0.25

$185.7 M42.0%4.2%

33.4%$8.3 M4.4%$0.27

(3.2%)+110 bps+20 bps

+130 bps(14.0%)(50 bps)(7.4%)

TENNANT COMPANY2016 First QuarterOrganic Sales Growth 0% | Americas Sales up 1.7% organically

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• Sales up 1.7% organically(excluding 2.0% unfavorable foreign currency impact)

• Strong sales through distribution and direct sales

• Increased sales of scrubbers equipped with ec-H2O

• Brazil achieved 7.5% organic sales growth despite economic headwinds

TENNANT COMPANY2016 First Quarter by Region

AMERICAS

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•Sales decreased 2.8% organically(excluding 2.0% unfavorable foreign currency impact and 6.5%impact from divestiture)

•Strong sales to strategic accounts more than offset by lower direct sales and sales through distribution•Divested Green MachinesTM outdoor city cleaning line

EMEA

TENNANT COMPANY2016 First Quarter by Region

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• Sales declined 5.8% organically(excluding 3.0% unfavorable foreign currency impact)

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

APAC

TENNANT COMPANY2016 First Quarter by Region

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SALESGROSS MARGINR&D EXPENSE (% of sales)

S&A EXPENSE (% of sales)

OPERATING PROFITOPERATING PROFIT MARGINDILUTED EPS

Q1’16 Q1’15 CHANGE$179.9 M

43.1%4.4%

34.7%$7.1 M3.9%$0.25

$185.7 M42.0%4.2%

33.4%$8.3 M4.4%$0.27

(3.2%)+110 bps+20 bps

+130 bps(14.0%)(50 bps)(7.4%)

TENNANT COMPANY2016 First QuarterOrganic Sales Growth 0% | Americas Sales up 1.7% organically

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SALESGROSS MARGINOPERATING PROFITOPERATING PROFIT MARGINDILUTED EPS

Q1’16 Q1’15 CHANGE$183.5 M

43.5%$8.2 M4.5%$0.29

$185.7 M42.0%$8.3 M4.4%$0.27

(1.2%)*+150 bps

(0.8%)+10 bps+7.4%

TENNANT COMPANY2016 First Quarter“CONSTANT CURRENCY” VIEW (excludes estimated foreign exchange impact)

CONSTANT(1)

CURRENCYQ1’16

AS REPORTED

$179.9 M43.1%$7.1 M3.9%$0.25

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

*Organic Sales Growth, excluding approximately 2.0 percent unfavorable foreign currency exchange impact and the impact from the divestiture of the Green Machines outdoor city cleaning line of 1.2%, was 0%.

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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

TENNANT COMPANYOperating Profit Margin Goal

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• Overall effective tax rate for 2016 first quarterof 32.0%

• Base tax rate of 30.3%(excluding routine discrete items)

• Federal R&D tax credit – was re-enacted for 2016; favorable benefit included in 2016 tax rate

TENNANT COMPANYSuccessful Tax Strategies

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TENNANT COMPANYStrong Balance Sheet

Commitment To Shareholder Return

1Q’161Q’15FY’15

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TENNANT COMPANY2016 EPS & Sales Guidance

2015ACTUAL

As Reported$1.74 EPS

$811.8M SALESAs 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.

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QUESTIONS?

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Tennant is Well Positioned!

Competitively advantaged in the market with our innovative product and

technology portfolio and go-to-market strategy

Well positioned to leverage our

operational efficiency