Tennant Company (TNC) investor relations material

Strategic overview and growth drivers

• Focus on robotics as a primary growth engine, targeting $250 million in robotics revenue by 2028, supported by over 11,000 robots already deployed globally.

• Diversified global presence across North America, Europe, Asia-Pacific, and Latin America, serving multiple end markets through direct sales, distribution, and e-commerce.

• Recurring aftermarket revenue constitutes about 40% of total revenue, reinforced by a global service network of over 1,000 technicians.

• Innovation agenda aligned with macro trends in automation, labor scarcity, electrification, and sustainability, with investments in lithium-ion battery platforms and water/energy-saving technologies.

• Robotics business up 85% year-over-year in Q1, with new product launches and technology advancements accelerating adoption.

Financial model and capital allocation

• Long-term targets include 3%-5% organic net sales growth, 50-100 basis points annual EBITDA margin expansion, and 100% free cash flow conversion.

• Margin expansion driven by cost-out programs, operating efficiencies, and leveraging a largely fixed S&A structure.

• Capital allocation prioritizes reinvestment in the business, focused M&A, and shareholder returns through dividends and opportunistic share repurchases.

• Maintains a net leverage ratio of 1x-2x adjusted EBITDA, supporting both organic growth and acquisitions.

• Recent $60 million share buyback in Q1 was opportunistic, with future repurchases to remain flexible and value-driven.

M&A and channel strategy

• M&A strategy targets strengthening the core cleaning business, accelerating robotics and connected autonomy, and expanding into adjacent mobile equipment markets.

• Recent distributor acquisitions in Europe have expanded market reach and share.

• Robotics channel expansion focuses on unlocking distribution, building programs for distributors, and enabling the global sales force to sell robots across more verticals.

• Exclusive partnership with Brain Corp extended through 2029, securing access to floor care technology and enhancing competitive positioning.

• Product portfolio expansion and ease-of-use are key responses to new, lower-priced foreign competitors entering the robotics market.