TENNANT COMPANY TENNANTCO.COM
Tennant Company
Investor Presentation
Reinventing how the world cleans
2
SAFE HARBOR STATEMENT
Certain statements contained in this document are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets we serve. Particular risks and uncertainties presently facing us include: geopolitical and economic uncertainty throughout the world; uncertainty surrounding the impacts and duration of the COVID-19 pandemic; our ability to comply with global laws and regulations; our ability to adapt to customer pricing sensitivities; the competition in our business; fluctuations in the cost, quality or availability of raw materials and purchased components; our ability to adjust pricing to respond to cost pressures; unforeseen product liability claims or product quality issues; our ability to attract, retain and develop key personnel and create effective succession planning strategies; our ability to effectively develop and manage strategic planning and growth processes and the related operational plans; our ability to successfully upgrade and evolve our information technology systems; our ability to successfully protect our information technology systems from cybersecurity risks; the occurrence of a significant business interruption; our ability to maintain the health and safety of our workers; our ability to integrate acquisitions; and our ability to develop and commercialize new innovative products and services. We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Information about factors that could materially affect our results can be found in our 2022 Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Investors are advised to consult any further disclosures by us in our filings with the Securities and Exchange Commission and in other written statements on related subjects. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.
Our Investment Thesis | 3 |
OUR VISION
We will lead our global industry in sustainable cleaning innovation that empowers our customers to create a cleaner, safer and healthier world
Industry Leader | Product Life Cycle & Service | Innovation | Growth |
Global product coverage, brand | Value capture through entire | Delivering value for Tennant | Demonstrated ability to |
portfolio, channel reach | product life cycle | and solving our customers' | profitably grow organically |
biggest challenges | and through acquisitions |
Scale & Stability
Scale and financial resources to compete over the long term
2022 Results | |||
$1,092.2M | $133.7M / 12.2% | $4.10 | $326.4M |
Revenue | Adjusted EBITDA(1) | Adjusted EPS (1) | Backlog |
(1) Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation.
Industry Leader
Global Coverage Through Tiered Brand and Product Range
GLOBAL NET SALES BY REGION (2022)
4
AMERICAS | EMEA | APAC |
US/Canada/LatAm | ||
~65% | ~27% | ~8% |
PREMIUM | MID-TIER | PREMIUM | MID-TIER | PREMIUM | MID-TIER |
PREMIUM & MID-TIERPRODUCTS for each region to meet diverse customer needs and uses
Industry Leader
Access Target Markets with Multi-Channel Approach
CHANNELS
5
Strategic | Direct | Distributor | Service | e-Commerce |
Accounts | Sales |
65% Direct (500+ reps) | 35% Distribution (100+ countries)
CORE VERTICAL MARKETS
Retail
Contract
Cleaners
Healthcare
Education
Contract Cleaners | Logistics & Warehousing | Manufacturing |
MULTI-CHANNELAPPROACH creates a comprehensive customer experience and broadens reach
Product | Serving Customers Through the Entire Product Lifecycle | 6 |
Life Cycle | ||
& Service |
Our ecosystem meets customers' evolving needs and positions Tennant to capture highly profitable business
RECON BUSINESS
NEW AND | GLOBAL | PARTS |
PRE-OWNED | DIRECT | AND |
EQUIPMENT | SERVICE | CONSUMABLES |
Commercial and | 900+ Employees | Batteries, Brushes, |
Industrial | Squeegees, etc. |
61% of Revenue 15% of Revenue 24% of Revenue
Product
Life Cycle
& Service
A Broad Portfolio of Solutions
7
Equipment | Technologies |
Commercial | Industrial | Vacuums | Pressure Washers | Tools | Aftermarket | Small Spaces
Autonomous
Mobile Robots
Supported by the industry's largest, factory-direct service organization
Product | Industry-Leading Service | 8 |
Life Cycle | ||
& Service |
Trusted. Responsive. Local.
Get the best return on investment with high-quality Tennant floor cleaning equipment - backed by the best service available
500+ service techs serving North America licensed • bonded • insured
9 years
average tenure of service reps
Tennant Employees
Not a third-party
60 hours annual training average
Factory certified
robotic service techs
Planned maintenance
service plans designed to help protect investment
Innovation | Focus on Solving Customer Problems and Disciplined Process | 9 |
Innovation Vectors:
Robotics
Electrification
Data
Sensing
Experience
Product
Solving For:
Customer Problems
Business Growth
Market Trends
Product Optimization
Process Optimization
Sustainability
Regulations
Proof Point Innovation:
T16AMR
Addresses common
labor challenges,
reduces the need for pre-sweeping, drives efficiencies and maintains a high standard of cleaning. A T16AMR industrial robotic solution is designed to work safely and efficiently alongside employees.
Proof Point Innovation:
AMR BY THE NUMBERS | *2019-2022 |
3
MODELS
200+
UNIQUE CUSTOMERS*
$170M+
REVENUE*
6,500+
UNITS SOLD*
Innovation | Innovative Products for Modern Problems | 10 |
How AMR Addresses Challenges
Solve Labor
Challenges
Give time back to employees so they can focus on other higher-value responsibilities while also helping to bridge staffing issues
Proof of Performance
Robots capture real- time data and provide proof of work and clean
Become a | Enhance | Return on |
Technology Leader | Experience | Investment |
Robots are a clear sign of | Clean buildings enhance | Approximately a |
investment in innovation to | overall customer and | two-year payback |
create clean, healthy and | employee experiences | for our customers |
safe spaces |
2017 | 2018 | 2020 | 2021 | 2022 | Today |
Announced a partnership | Shipped the first | Shipped the first T380AMR, | Shipped the first | Introduced Lithium-Ion | Tennant machines |
with Brain Corp | T7AMR with | a smaller, maneuverable | T16AMR, the industry's | Technology to all three | can now be found |
Minimal Viable | machine, designed to fit in | first robotic scrubber for | machines for longer runtime | in 20+ countries | |
Product Strategy | tight and narrow spaces | large industrial spaces | and opportunity charging | worldwide | |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Tennant Company published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2023 15:24:55 UTC.
