TENNANT COMPANYEarnings Release Conference Call

Second Quarter 2016

Tuesday, July 26, 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.

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TENNANT COMPANY

FORWARD LOOKING STATEMENTS

• 2016 second quarter consolidated net sales of $216.8M– Organic net sales increased 2.4%– Increased sales to strategic accounts– Record second quarter sales in Americas; EMEA

strong organic sales growth– Net earnings of $0.89 per diluted share on a

“Constant Currency” basis – up 12.7% versus prior-year quarter

• Narrowed sales guidance and raising earnings guidance for 2016 full year

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TENNANT COMPANY

2016 Second Quarter 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

• Building Tennant’s e-Business capabilities

• Application of lean principles

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• New products and technologies

– Sales of new products introduced in last

three years was 35% of equipment sales in

2016 first half

• Plan to launch 14 new products in 2016

– Several significant industrial machine

launches

– Launched M20 & M30 Sweeper-Scrubbers

and T20 Heavy-Duty Industrial Rider

Scrubber with high tech features

TENNANT COMPANY

New Products

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

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Record Sales of $157M in 2015

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

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TENNANT COMPANY

IRIS® Asset Management System

• Improving cost & availability

• ROI for customer

• Reduced weight & footprint size

• Sustainability

• Productivity

• Game-changing solution

– +

Water RecyclingBattery Technologies Robotics (AGV)

• Addresses labor costs

• Largest potential growth

opportunity

Advanced Product DevelopmentFuture Technologies

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DIGITAL TRANSFORMATION

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IRIS®

e-Business

e-CommercePlatform

CRM

• 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

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TENNANT COMPANY

Growth & Profitability

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SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

S&A EXPENSE (% of sales)

OPERATING PROFIT

OPERATING PROFIT MARGIN

DILUTED EPS

Q2’16 Q2’15 CHANGE

$216.8 M

43.9%

3.9%

29.6%

$22.6 M

10.4%

$0.85

$215.4 M

44.1%

3.9%

29.7%

$22.6 M

10.5%

$0.79

+0.7%

(20 bps)

+0 bps

(10 bps)

0%

(10 bps)

+7.6%

TENNANT COMPANY

2016 Second QuarterOrganic Sales Growth 2.4% | EMEA Sales up 6.3% organically

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• Sales up 2.5% organically(excluding 1.0% unfavorable foreign currency impact)

• Record sales for a second quarter

• Increased sales to strategic accounts

• Latin America achieved 15% organic sales

growth despite economic headwinds

TENNANT COMPANY

2016 Second Quarter by Region

AMERICAS

• Sales increased 6.3% organically(excluding approx. 0% unfavorable foreign currency impact and 4.4%impact from divestiture of Green MachinesTM outdoor city cleaning line)

• Strong sales to strategic accounts with positive growth in each country

• Strong sales of scrubbers equipped with ec-H2OTM

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EMEA

TENNANT COMPANY

2016 Second Quarter by Region

• Sales declined 7.2% organically(excluding 1.0% unfavorable foreign currency impact)

• Organic sales growth in Southeast Asia and Japan was more than offset by lower organic sales in the other Asia Pacific countries due to sluggish economy

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APAC

TENNANT COMPANY

2016 Second Quarter by Region

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SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

S&A EXPENSE (% of sales)

OPERATING PROFIT

OPERATING PROFIT MARGIN

DILUTED EPS

Q2’16 Q2’15 CHANGE

$216.8 M

43.9%

3.9%

29.6%

$22.6 M

10.4%

$0.85

$215.4 M

44.1%

3.9%

29.7%

$22.6 M

10.5%

$0.79

+0.7%

(20 bps)

+0 bps

(10 bps)

0%

(10 bps)

+7.6%

TENNANT COMPANY

2016 Second QuarterOrganic Sales Growth 2.4% | EMEA Sales up 6.3% organically

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SALES

GROSS MARGIN

OPERATING PROFIT

OPERATING PROFIT MARGIN

DILUTED EPS

Q2’16 CHANGE

$219.0 M

44.1%

$23.7 M

10.8%

$0.89

$215.4 M

44.1%

$22.6 M

10.5%

$0.79

+1.7%*

+0 bps

+5.0%

+30 bps

+12.7%

TENNANT COMPANY

2016 Second Quarter“CONSTANT CURRENCY” VIEW (excludes estimated foreign exchange impact)

CONSTANT(1)

CURRENCY

Q2’16

AS REPORTED

$216.8 M

43.9%

$22.6 M

10.4%

$0.85

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

*Organic Sales Growth was approximately 2.4%, excluding approximately 1.0 percent unfavorable foreign currency exchange impact and the impact from the divestiture of the Green Machines outdoor city cleaning line of 0.7%.

Q2’15

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 2016 first halfof 32.1%

• Base tax rate of 31.4%(excluding routine discrete items)

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

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TENNANT COMPANY

Successful Tax Strategies

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TENNANT COMPANY

Strong Balance Sheet

Commitment To Shareholder Return

1H’15FY’15 1H’16

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TENNANT COMPANY

2016 EPS & Sales Guidance

2015ACTUAL

As Reported$1.74 EPS

$811.8M SALES

As Adjusted

$2.49 EPS$811.8M SALES

2016 Financial Outlook$2.35 to $2.60/$800M to $820M

KEY EXPECTATIONS FOR 2016• Net sales in the range of $800M to $820M 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 Green Machines divestiture of approximately 1%.• Organic sales growth, excluding foreign currency exchange impact and

divestiture, in the range of 1% to 3%.• Foreign currency exchange headwinds estimated to negatively impact operating

profit in the range of $3M to $4M, or approximately $0.10 to $0.15 EPS.• Gross margin performance in the range of 43% to 44%. • 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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Tennant is Well Positioned!

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Competitively advantaged in the market

with our innovative product and technology

portfolio and go-to-market strategy

Well positioned to leverage our

operational efficiency