TENNANT COMPANYEarnings Release Conference Call

First Quarter 2017

Monday, April 24, 2017

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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 2017 first quarter. There were no special non-GAAP items in 2016. Our 2017 first quarter earnings release includes a reconciliation of these non-GAAP measures to our GAAP results for the 2017 first quarter.

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TENNANT COMPANY

FORWARD LOOKING STATEMENTS & NON-GAAP MEASURES

• 2017 first quarter consolidated net sales of $191.1M– Record sales for a first quarter

• Adjusted net earnings of $0.31 per diluted share– Growth of 24% vs prior year $0.25 per diluted share

• Organic sales growth of approximately 5%– Americas +4.2%– EMEA +14.3%

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TENNANT COMPANY

2017 First Quarter Overview

• Maintaining strong new product and technology pipeline

• Expanding global market coverage

– IPC Acquisition

• Building e-Business capabilities

• Leveraging cost structure to improve operating efficiency

– Restructuring Charge

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TENNANT COMPANY

Core Strategies

• Closed April 6, 2017– All-cash transaction $353M or €330M– IPC Group – privately held designer and

manufacturer of innovative professional cleaning equipment, tools and other solutions, based in Italy

– IPC Group 2016 annual sales of $206M or €186M

• Largest acquisition in Tennant Company history– Anticipate acquisition will be accretive to 2018 full

year earnings per share

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TENNANT COMPANY

Acquisition of IPC Group

TENNANT COMPANY

IPC Group Overview

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Revenue by Geography

Key Facts and Figures

Geographic Coverage

IPC Group produces machines and equipment for the professional cleaning sector

— Cleaning machines: floor sweepers and scrubbers, vacuum cleaners, high- pressure washers and related aftermarket parts and services

— Cleaning tools and supplies: trolleys, window cleaning tools and consumables

2016A Revenue: €186mm

2016A Adjusted EBITDA: €26mm (~14% margin)

5 manufacturing plants; 11 international branches with sales to over 100 countries

~1,000 Employees

EagleEagan, Minnesota

Industria e ComercioPinhais Parana

Cleaning EspañaBarcelona

ICAÉpône Cedex

Soteco BeneluxWommelgem

GansowUnna

Foma NorgeLanghus

China Trade CorporationFo Shan, Guangdong

Western Floor PVTNew Delhi

2016A Revenue Mix

2016A Revenue by Product

2016A Revenue by Type

Sweepers & Scrubbers42%

Vacuum Cleaners21%

Cleaning Tools and Supplies

19%

High Pressure18%

Machinery59%

Machinery Aftermarket22%

Tools and Supplies19%

EMEA

80%

Americas

11%

RoW

9%

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TENNANT COMPANY

IPC’s Diverse Product Portfolio

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Product

% of Net Sales by Equipment

Type Product Description

Overlap with Existing TNC

Products1

Sweepers and

Scrubbers42%

Scrubbers: 15L to 230L (tank size)

Sweepers: 460mm to 1,200mm (brush size)

Multiple Power Systems: Electric cables,

batteries, diesel, petrol and hybrid

Vacuum Cleaners

21%

Dry Vacuum Cleaners: 750W to 1,400W

Wet & Dry Vacuum Cleaners: 1,300W to

3,600W

Single motor to three motor models

Tools 19%

Small surface, window cleaning and room

cleaning

Continuous need for supply of related

consumables

Pressure Washers

18%

Range of 2.5HP to 13HP

— Diesel versions up to 900 liters per hour

— Gasoline versions up to 1,260 liters per hour

Ride On Walk Behind

Dry Wet & Dry Industrial

Hot Water Cold Water

Trolleys EquipmentMops and

Cloths

Scrubber

Sweeper

Scrubber

Sweeper

Hydro-cleaners with high temperature

water jets and internal heaters

Hydro-cleaners with cold water jets

Carts formanual tools

Window and mirror surface cleaning

Surface and floor cleaning

¹ Shaded area represents approximate level of overlap with existing Tennant products

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• Incremental Sales– Complementary sales channels– Cross-selling to reach new customers with both

brands: Tennant and IPC

• $10M run-rate Cost Synergies by 2019– Sourcing savings with greater volume to fewer

vendors– Improving sales and service capabilities– Leveraging greater scale to improve operating

efficiencies9

TENNANT COMPANY

IPC Synergy Opportunities

• To support key strategic growth initiatives and reduce costs to accelerate our ability to reach our 12% operating profit margin goal

• Approximate 3% net reduction in global workforce

• Restructuring charge of $8M pre-tax, or $0.32 per diluted share

• Savings anticipated to be $7M in 2017 and a total of $10M in 2018

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TENNANT COMPANY

First Quarter 2017 Restructuring

– Launched new family of T500 commercial walk-behind scrubbers comprised of 20 new products and product variants

• Five unique scrubbing heads on four different models

• Smart-Fill™ automatic battery watering system

• ec-H2O NanoClean® technology

TENNANT COMPANY

2017 Plan: 31 New Products/Variants

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TENNANT COMPANY

e-Commerce Platform

• 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

Cleaning solutions made easy online

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• Excited about strategic plans

• Remain cautious about global macroeconomic environment

• Tennant is competitively well positioned

• Acquisition of IPC Group expands product portfolio and geographic presence – particularly in EMEA

• Restructuring actions expected to improve profitability

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TENNANT COMPANY

Looking Ahead in 2017

Remain committed to $1B Sales target and 12% OP Margin goal

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Q1’17

SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

Adjusted*S&A EXPENSE (% of sales)

Adjusted*

OPERATING PROFITAdjusted*

OPERATING PROFIT MARGINAdjusted*DILUTED EPS

Q1’16 CHANGE

TENNANT COMPANY

2017 FIRST QUARTER

$191.1 M

41.7%

4.4%

33.0%

$8.3 M

4.3%

$0.31

$179.9 M

43.1%

4.4%

34.7%

$7.1 M

3.9%

$0.25

+6.2%

(140 bps)

+0 bps

(170 bps)

+16.7%

+40 bps

+24.0%

Organic Sales Growth 5.0% | Organic Sales up 4.2% in Americas, up 14.3% in EMEA

*Q1’17 results are adjusted to exclude restructuring charge of $8.0M pre-tax ($0.32 per share) and IPC acquisition costs of $2.9M pre-tax ($0.17 per share) in S&A Expense. Diluted EPS also excludes financing costs related to IPC acquisition of $1.2M pre-tax ($0.04 per share).

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• Sales up 4.2% organically(excluding approximately 1.0% favorable foreign currency impact and 1.7% impact from Florock acquisition)

• Strong sales to strategic accounts and direct sales fueled by demand for new products in North America

• Latin America achieved 14% organic sales growth

TENNANT COMPANY

2017 First Quarter by Region

AMERICAS

• Sales increased 14.3% organically(excluding approx. 5.5% unfavorable foreign currency impact and 0.5%impact from divestiture of Green MachinesTM outdoor city cleaning line)

• Positive organic sales growth in all countries

– Particular strength in Central Eastern Europe, Middle East and Africa markets, and also Iberia, France and Netherlands

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EMEA

TENNANT COMPANY

2017 First Quarter by Region

• Sales declined 4.1% organically(excluding 0.5% favorable foreign currency impact)

• Robust sales growth in Japan and Korea more

than offset by lower sales in Australia and China

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APAC

TENNANT COMPANY

2017 First Quarter by Region

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Q1’17

SALES

GROSS MARGIN

R&D EXPENSE (% of sales)

Adjusted*S&A EXPENSE (% of sales)

Adjusted*

OPERATING PROFITAdjusted*

OPERATING PROFIT MARGINAdjusted*DILUTED EPS

Q1’16 CHANGE

TENNANT COMPANY

2017 FIRST QUARTER

$191.1 M

41.7%

4.4%

33.0%

$8.3 M

4.3%

$0.31

$179.9 M

43.1%

4.4%

34.7%

$7.1 M

3.9%

$0.25

+6.2%

(140 bps)

+0 bps

(170 bps)

+16.7%

+40 bps

+24.0%

Organic Sales Growth 5.0% | Organic Sales up 4.2% in Americas, up 14.3% in EMEA

*Q1’17 results are adjusted to exclude restructuring charge of $8.0M pre-tax ($0.32 per share) and IPC acquisition costs of $2.9M pre-tax ($0.17 per share) in S&A Expense. Diluted EPS also excludes financing costs related to IPC acquisition of $1.2M pre-tax ($0.04 per share).

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 full yearwas 29.9%

• Overall effective tax rate for 2017 first quarter, excluding special items, of 27.7%

• Base tax rate for 2017 first quarter of 31.3%(excluding special items and routine discrete items)

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TENNANT COMPANY

Successful Tax Strategies

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TENNANT COMPANY

Strong Balance Sheet

Commitment To Shareholder Return

1Q’16 1Q’17

• April 5, 2017 – New $600M Senior Secured Credit Facility– $200M Revolving Credit Facility

– $100M Term Loan A-1

– $300M Term Loan A-2

• April 6, 2017 – Funds drawn under $600M Senior Secured Credit Facility– $100M Term Loan A-1

– $300M Term Loan A-2

• April 7/18, 2017 – Offered/Closed on $300M Senior Unsecured Notes– Senior Notes were priced at 5.625%

– Proceeds used to pay off $300M Term Loan A-2

• 4.2% Overall Weighted Average Cost of Debt– $100M Term Loan A-1

– $300M Senior Notes

– Related Cross-Currency Swap Instrument

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TENNANT COMPANY

Financing Activities

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TENNANT COMPANY

2017 EPS & Sales Guidance2016 ACTUAL As Reported $2.59 EPS $808.6M SALES

2017 Financial OutlookAs Adjusted and “Constant Currency” $2.50 to $2.70

As Reported $1.05 to $1.25/$960M to $990M

KEY EXPECTATIONS FOR 2017 (includes the impact of the April 2017 IPC Group acquisition)• Net sales in the range of $960M to $990M versus $808.6M in 2016.• Stable economy in North America, modest improvement in Europe, and challenging environment in APAC.• Unfavorable foreign currency impact on sales of approximately 1%.• Sales increase from acquisitions: 2016 Florock of approximately 0.8%; 2017 IPC range of 18.6% to 20.4%.• Organic sales growth, excluding foreign currency exchange impact and acquisitions, in the range of 1% to 3%.• Adjustments of $30.8M pre-tax, or $1.35 per share, non-recurring special items: $8.0M Restructuring Charge,

$7.5M IPC acquisition costs, $8.1M IPC related financing costs, $7.2M IPC acquisition inventory step-up.• Foreign currency exchange headwinds estimated to negatively impact operating profit by approximately

$2.5M, or approximately $0.10 EPS.• Gross margin performance in the range of 42% to 43%. • R&D expense of approximately 4% of sales.• Effective tax rate of approximately 28%.• 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

Remain committed to $1B Sales target and 12% OP Margin goal