January 2015
CJS Presentation
Tennant Company Chris Killingstad, President and CEO Tom Paulson, Sr. Vice President and CFO
CJS Presentation Tennant Company Chris Killingstad, President and - - PowerPoint PPT Presentation
January 2015 CJS Presentation Tennant Company Chris Killingstad, President and CEO Tom Paulson, Sr. Vice President and CFO SAFE HARBOR STATEMENT This presentation contains certain statements that are considered forward - looking statements
Tennant Company Chris Killingstad, President and CEO Tom Paulson, Sr. Vice President and CFO
This presentation contains certain statements that are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “project,” or “continue” or similar words
provide current expectations of forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. 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 Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2013, and in Part II, Item 1A Risk Factors in our most recent quarterly report on Form 10-Q. Shareholders and potential investors 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
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.
SAFE HARBOR STATEMENT
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KEY FACTS
AWARDS
International Design Excellence Awards
Industrial Design Excellence
Top Honours
R&D Magazine
ABM Industries, Inc.
European Business Awards
R&D Magazine
Forbes
Forbes
TENNANT COMPANY AT-A-GLANCE
Founded:
1870
2013 Revenues:
$752M
2013 Employees:
2,931
Manufacturing Sites:
7
NYSE Symbol:
TNC
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We will lead our global industry in sustainable cleaning innovation that empowers our customers to create a cleaner, safer and healthier world.
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UNIQUE CLEANING SOLUTIONS
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QUALITY PRODUCTS
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STRONG DIRECT SALES & SERVICE ORGANIZATIONS
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BROAD RANGE OF GLOBAL CUSTOMERS
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2013 REVENUE OF $752M
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COMPETITIVE LANDSCAPE
Worldwide Market Share 2011 Estimate – $4.6 Billion*
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Achieve $1 billion in revenue by 2017 while achieving greater than 12%
While accelerating whenever possible.
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GDP Growth
$60M (2%)
Go-To-Market
$70M (up to 3%) New Products $80M (up to 3%) Emerging Markets $40M (up to 2%)
HOW WE WILL REACH $1B
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Reach new customers & new markets Continue delivering what we know works Don’t lose sight of the discipline we’ve established
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Product
Presence
Hit Rate Market Share
Frank Lynn & Associates Process
40% 19%
75%
67%
REACH NEW CUSTOMERS & NEW MARKETS Increasing Presence
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Industrial Education Healthcare Retail
REACH NEW CUSTOMERS & NEW MARKETS Focus on Key Verticals
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Your text here
customers
experience
interventions
Good Experience Increase Revenue Lower Cost of Sale
REACH NEW CUSTOMERS & NEW MARKETS New Channels – E-commerce
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RESEARCH AND DEVELOPMENT
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NEW PRODUCT GROWTH
in 2014 47 2015-2016
Strongest product pipeline ever!
in 2013
in 2012
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T12 Rider Scrubber
NEW MODULAR PLATFORM
T17 Rider Scrubber
Faster Speed to Market
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$720 million+
cumulative revenue
7,500+ customers
29,000+ sites 62,000+ machines
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The Orbio 5000-Sc uses Orbio Split Stream Technology to electrically restructure water and salt, so you can create, store and dispense an environmentally friendly multipurpose cleaning solution – right on site!
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Small, simple, affordable On-Site Generation (OSG) technology
antimicrobial solutions
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EMERGING MARKETS
Anticipating Solid Organic Growth
PROJECTED GROWTH RATE
next 3 years
INCREASE MANUFACTURING EXPERTISE & EXPAND MARKET COVERAGE PROJECTED GROWTH RATE
next 3 years
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STRATEGIC ACCOUNTS
Duplicate Successful Framework
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PROFITABILITY FRAMEWORK 12%+ Operating Profit Margin Goal
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Collections Invoicing Pricing
Machine Configuration Installed a global invoicing structure tailored to the needs of our customers Implemented a global standardized process to manage payment & invoice disputes Standardized discount & rebate policies globally, while maintaining ability to compete regionally Standardizing global product structure to simplify quoting, ordering and product data maintenance
STANDARDIZED & SIMPLIFIED GLOBAL PROCESSES
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LEAN OPERATIONS SUPPORTS GROWTH
Speed: Rapid market response, short lead-times Flexibility: Ability to configure & customize to customer requirements Quality: Highest & most consistent quality & reliability Cost: More than offset inflation across the supply chain, driving margin
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*As adjusted
STRONG COST CONTROLS
Selling & Administrative Expense as a Percent of Sales*
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* 2013 results are adjusted to exclude restructuring charges of $3,017K pre-tax ($2,938K after-tax or $0.15 per diluted share), and a tax benefit related to 2012 R&D tax credit of $582K (or $0.03 per diluted share). * 2012 results are adjusted to exclude a gain on sale of business of $784K pre-tax ($508K after-tax or $0.03 per diluted share), a restructuring charge of $760K pre-tax ($670K after-tax or $0.04 pre diluted share), and tax benefits from an international entity restructuring of $2,043K (or $0.11 per diluted share).
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* YTD ‘13 results are adjusted to exclude European restructuring charge of $1,440K pre-tax ($1,023K after tax or $0.05 per diluted share) and a tax benefit related to 2012 R&D tax credit of $528K (or $0.03 per diluted share). October 23, 2013 release.
Experienced negative quarter-over-quarter sales growth from 4Q’08 through 3Q’09 due to recession. 2011 returned to – and surpassed – prerecession sales levels. 2012 and 2013 impacted from economic headwinds in Europe. 2014 – Renewed focus on accelerating organic sales growth.
HISTORY OF SALES GROWTH
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IMPROVED PROFITABILITY & BALANCE SHEET LEVERAGE
Return on Invested Capital Improvement & Cash Generation ’09-’13
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2013 TOTAL SHAREHOLDER RETURN
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Current 2014 EPS Guidance
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