Tennant Company · NYSE:TNC
Tennant — Q4 2021 Earnings Presentation
16 slides from Tennant's earnings presentation, Feb 24, 2022
Slide 1: Earnings Release Call
Earnings Release Call Full Year and Fourth Quarter 2021 Thursday, February 24, 2022 I N V E S T O R S . T E N N A N T C O . C O M 1
Slide 2: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures 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 expe
Slide 3: Executive Summary
Executive Summary On track with Long-range targets Delivered strong results for FY ’21 2021 2020 Net Well positioned balance sheet Sales $1,090.8 $1,001.0 Adjusted EBITDA* $140.2 $119.4 Continued execution of enterprise growth strategy Adjusted Diluted EPS* $4.39 $2.91 In millions of USD, except adj
Slide 4: Enterprise Strategy Update
Enterprise Strategy Update Win where we Reduce complexity Innovate for have a competitive & build scalable profitable advantage processes growth • Coatings business sale • Acceleration of local-for-local • Inventory Scan • Go-to-market approach and region-for-region • Autonomous Mobile Robot in spec
Slide 5: Financial Results
Tennant Company Financial Results Full Year and Fourth Quarter 2021 I N V E S T O R S . T E N N A N T C O . C O M 5
Slide 6: Full Year and Fourth Quarter 2021 Financial Performance
Full Year and Fourth Quarter 2021 Financial Performance 2021 Net Income ▪ Q4‘21 Net Income of $7.9 million up $5.4 million reflecting strong expense management and lower interest costs Net Income Adjusted EPS* ▪ FY’21 Net Income of $64.9 million up $31.2 million reflecting strong sales and operating
Slide 7: Full Year 2021 Results
Full Year 2021 Results Net Sales Adjusted EBITDA* ▪ Organic sales growth 9.1% ▪ Adjusted EBITDA grew 17% to $140.2 million and, capturing ▪ Americas 7.4%; EMEA 14.2%; Asia Pacific 5.6% leverage, resulted in 100 bps improvement ▪ Q1 2021 divestiture of Coatings business reduced revenue ▪ Volume led b
Slide 8: Fourth Quarter 2021 Results
Fourth Quarter 2021 Results Net Sales Adjusted EBITDA* ▪ Organic sales growth 4.5% ▪ Adjusted EBITDA grew 12% to $28.4 million as adjusted EBITDA ▪ Americas 4.9%; EMEA 7.4%; Asia Pacific (7.2)% margin improved 100 bps ▪ Lack of parts availability constrained ability to convert orders ▪ Inflationary
Slide 9: Capital Deployment
Capital Deployment YE 2021 YE 2020 Total Debt $268M $312M Net Leverage 1.03x 1.41x Revolver Availability: $279.1M Tennant Company Earnings Release Call Fourth Quarter 2021 9
Slide 10: 2022 Guidance Summary
2022 Guidance Summary Full Year 2022 2021 Guidance Range Maintains path to long-term Net Sales $1.09B $1.125B - $1.17B financial objectives: Organic Net Sales Growth 9.1% 4.5% - 8.5% 2-3% Annual net sales growth Diluted EPS $3.44 $3.90 - $4.50 Adjusted Diluted EPS(1) $4.39 $4.40 - $5.00 6-10% Annual
Slide 11: Questions?
Questions? Tennant Company Earnings Release Call Fourth Quarter 2021 11
Slide 12: Appendix
Appendix Tennant Company Earnings Release Call Fourth Quarter 2021 12
Slide 13: Enterprise Strategy – Global Positioning Strategy (GPS)
Enterprise Strategy – Global Positioning Strategy (GPS) Win where we have a Reduce complexity & build Innovate for profitable competitive advantage scalable processes growth Tennant Company Earnings Release Call Fourth Quarter 2021 13
Slide 14: Win where we have a competitive advantage
Focus investments and resources where we can create the most value Focus Areas Win where 1 2 3 we have a competitive advantage Simplifying the product portfolio Strengthening local advantage Optimizing go-to-market Tennant Company Earnings Release Call Fourth Quarter 2021 14
Slide 15: Reduce complexity & build scalable processes
Simplify and standardize to gain efficiency and leverage Focus Areas Reduce 1 2 3 complexity & build scalable Leveraging Our Advancing Our Capturing processes Platform Product Supply Chain – Operating Model Design Local for Local Efficiencies Tennant Company Earnings Release Call Fourth Quarter 2021
Slide 16: Innovate for profitable growth
Thinking Differently to Maximize Value for Customers and Tennant Innovate for Customer- New Unlocking profitable Driven Insights Innovation Approach Value for Customers growth and Tennant Tennant Company Earnings Release Call Fourth Quarter 2021 16