Earnings Call

Presentation

3

rd

Quarter

2015

October 29, 2015

Exhibit 99.2

2

Our disclosures in this presentation, including without limitation, those relating to future financial results

guidance and the possible separation of our flooring business from our building products business, and in our

other public documents and comments contain forward-looking statements within the meaning of the Private

Securities Litigation Reform Act.  Those statements provide our future expectations or forecasts and can be

identified by our use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"

"outlook," "target," "predict," "may," "will," "would," "could," "should," "seek," and other words or phrases of

similar meaning in connection with any discussion of future operating or financial performance or the separation

of our businesses.  Forward-looking statements, by their nature, address matters that are uncertain and involve

risks because they relate to events and depend on circumstances that may or may not occur in the future.  As a

result, our actual results may differ materially from our expected results and from those expressed in our

forward-looking statements.  A more detailed discussion of the risks and uncertainties that may affect our ability

to achieve the projected performance is included in the “Risk Factors” and “Management’s Discussion and

Analysis” sections of our reports on Forms 10-K and 10-Q filed with the SEC. Forward-looking statements speak

only as of the date they are made.  We undertake no obligation to update any forward-looking statements

beyond what is required under applicable securities law.

In addition, we will be referring to non-GAAP financial measures within the meaning of SEC Regulation G.   A

reconciliation of the differences between these measures with the most directly comparable financial measures

calculated in accordance with GAAP are included within this presentation and available on the Investor

Relations

page

of

our

website

at

www.armstrong.com.

The guidance in this presentation is only effective as of the date given, October 29, 2015, and will not be

updated or affirmed unless and until we publicly announce updated or affirmed guidance. 

Safe Harbor Statement

3

All figures throughout the presentation are in $ millions unless otherwise noted.  Figures may not add due to rounding. 

•

When reporting our financial results within this presentation, we make several adjustments.

Management uses the non-GAAP measures below in managing the business and believes the

adjustments provide meaningful comparisons of operating performance between periods.  As reported

results will be footnoted throughout the presentation. 

Basis of Presentation Explanation

•

We report in comparable dollars to remove the

effects of currency translation on the P&L.  The

budgeted exchange rate for 2015 is used for all

currency translations in 2015 and prior years.

Guidance is presented using the 2015 budgeted

exchange rate for the year.  

•

We remove the impact of discrete expenses and

income.  Examples include plant closures,

restructuring actions, separation costs and other

large

unusual

items.

We

also

remove

the

non-

cash

impact

of

our

U.S.

Pension

Plan. 

•

Taxes for normalized Net Income and EPS are

calculated using a constant 39% for 2015

guidance, and 2015 and 2014 results, which are

based on the expected full year historical tax

rate.

What Items Are Adjusted

Comparable

Dollars

Other

Adjustments

Net Sales

Yes

No

Gross Profit

Yes

Yes

SG&A

Expense

Yes

Yes

Equity Earnings

Yes

Yes

Operating

Income

Yes

Yes

Net Income

Yes

Yes

Cash Flow

No

No

Return on Capital

Yes

Yes

EBITDA

Yes

Yes

4

Key Metrics –

Third Quarter 2015

2015

2014

Variance

Net Sales

(1)

$679

$670

1.3%

Operating Income

(2)

98

93

5.3%

% of Sales

14.5%

13.9%

60 bps

EBITDA

128

122

5.2%

% of Sales

18.9%

18.2%

70 bps

Earnings

Per

Share

(3)

$0.80

$0.88

(8.8%)

Free Cash Flow

64

60

7.6%

Net Debt

764

902

(138)

ROIC

(4)

5.8%

8.4%

(260 bps)

(1)

As

reported

Net

Sales:

$659

million

in

2015

and

$679

million

in

2014

(2)

As reported Operating Income: $80 million in 2015 and $86 million in 2014

(3)

As reported EPS: $0.54 in 2015 and $0.84 in 2014

(4)

Unadjusted

5

Third Quarter 2015 vs. PY–

Adjusted EBITDA to Reported Net Income

2015

2014

V

EBITDA–

Adjusted

$128

$122

$6

Depreciation and Amortization

(30)

(29)

(1)

Operating

Income

–

Adjusted

$98

$93

$5

Non-cash Impact of U.S. Pension

6

-

6

Separation Expenses

7

-

7

Cost Reduction Initiatives

1

6

(5)

Foreign Exchange Movements

4

1

3

Operating

Income

–

As

Reported

$80

$86

($6)

Interest/Other (Expense)

(25)

(13)

(12)

EBT

$55

$73

($18)

Tax (Expense)

(25)

(26)

1

Net Income

$30

$47

($17)

6

Third Quarter Sales and EBITDA by Segment –

2015 vs. Prior Year

(1)

5

6

(4)

3%

(4%)

2%

(10%)

(5%)

0%

5%

10%

(10)

(5)

-

5

10

EBITDA Change (Left-hand scale)

% Change in Sales (Right-hand scale)

Resilient Flooring

Wood Flooring

Building Products

Corporate

7

•

On a comparable foreign exchange basis sales

increased 2% as favorable price and mix performance

offset volume declines primarily in emerging markets

•

Continued sales growth momentum in Architectural

Specialties

•

Reflects impact of prior price increases

•

Driven by lower volumes, predominantly in EMEA

•

Reflects the benefit of lower freight and energy costs

and productivity in the Americas

•

Reflects higher earnings from our WAVE joint venture

Building Products Third Quarter Results

Favorable price and mix performance and lower manufacturing and input costs

drive over 100 bps of margin improvement in the Americas despite lower volumes

$225

$219

$87

$87

$39

$37

Q3 2015

Q3 2014

Net Sales

Americas

EMEA

Pacific Rim

$351

$343

Key Highlights

Q3 2014 Adjusted EBITDA

$      103M

Price & Mix

5

Volume

(4)

Manufacturing & Input Costs

3

WAVE

1

D&A/Other

1

Q3 2015 Adjusted EBITDA

$      109M

8

•

On a comparable foreign exchange basis sales

increased 3% driven by volume growth in the Americas

residential and commercial businesses as well as

double digit improvement in the Pacific Rim; more than

offsetting unfavorable price and mix. 

•

Volume growth in the Americas was partially aided by

favorable market share shifts as a result of competitive

product availability issues and our service proposition

relative to competition.

•

Broad based volume growth in the Americas residential

and commercial businesses as well the Pacific Rim

•

Reflects the benefit of favorable input costs

•

Higher SG&A expense to support go-to-market

initiatives

Resilient Third Quarter Results

Broad based volume growth and favorable input costs drive margin performance

$171

$168

$25

$22

Q3 2015

Q3 2014

Net Sales

Americas

Pacific Rim

$196

$190

Key Highlights

Q3 2014 Adjusted EBITDA

$      25M

Price & Mix

(7)

Volume

7

Manufacturing & Input Costs

7

SG&A

(8)

Q3 2015 Adjusted EBITDA

$      24M

9

•

Despite improvements in mix sales declined driven by

unfavorable price performance and lower volumes

•

Lower volumes were the result of engineered wood

product availability challenges

•

Driven by unfavorable price, despite mix improvement

•

Due to engineered wood product availability challenges

•

Reflects the benefit of favorable input costs

Wood Third Quarter Results

Favorable input costs drive margin improvement

$132

$137

Q3 2015

Q3 2014

Net Sales

Americas

$132

$137

Key Highlights

Q3 2014 Adjusted EBITDA

$      9M

Price & Mix

(4)

Volume

(2)

Manufacturing & Input Costs

12

SG&A

(1)

Q3 2015 Adjusted EBITDA

$      14M

10

$1

$27

$1

$1

$122

$0

$20

$40

$60

$80

$100

$120

$140

$160

2014

Price/Mix

Volume

Input Costs

Mfg Cost

SG&A

WAVE

Change in

D&A

2015

($6)

$128

($6)

($12)

EBITDA Bridge –

Third Quarter 2015 vs. Prior Year

11

$16

$8

$0

$0

$64

$60

$0

$20

$40

$60

$80

$100

2014

Cash

Earnings

Working

Capital

Capex

Interest

Expense

WAVE

Dividends

Other

2015

($14)

($6)

Free Cash Flow –

Third Quarter 2015 vs. Prior Year

12

Key Metrics –

September YTD 2015

2015

2014

Variance

Net Sales

(1)

$1,892

$1,905

(0.7%)

Operating Income

(2)

226

221

2.1%

% of Sales

11.9%

11.6%

30 bps

EBITDA

315

309

1.9%

% of Sales

16.6%

16.2%

40 bps

Earnings

Per

Share

(3)

$1.99

$1.97

0.7%

Free Cash Flow

99

14

Favorable

(1)

As

reported

Net

Sales:

$1,843

million

in

2015

and

$1,928

million

in

2014

(2)

As reported Operating Income: $179 million in 2015 and $203 million in 2014

(3)

As reported EPS: $1.14 in 2015 and $1.64 in 2014

(4)

Unadjusted

13

September YTD Sales and EBITDA by Segment –

2015 vs. Prior Year

(4)

2

7

1

2%

(8%)

1%

(15%)

(10%)

(5%)

0%

5%

10%

(15)

(10)

(5)

-

5

10

Resilient Flooring

Wood Flooring

Building Products

Corporate

EBITDA Change (Left-hand scale)

% Change in Sales (Right-hand scale)

14

$315

$309

$200

$220

$240

$260

$280

$300

$320

$340

$360

$380

$400

2014

Price/Mix

Volume

Input Costs

Mfg Cost

SG&A

WAVE

Change in

D&A

2015

$42

($2)

($22)

EBITDA Bridge –

September YTD 2015 vs. Prior Year

($20)

$10

($3)

$1

15

($27)

$58

$54

$1

($3)

$2

$99

$14

($40)

($20)

$0

$20

$40

$60

$80

$100

$120

2014

Cash

Earnings

Working

Capital

Capex

Interest

Expense

WAVE

Dividends

Other

2015

Free Cash Flow –

September YTD 2015 vs. Prior Year

16

2015 Estimate Range

(1)

2014

(2)

Variance

Net Sales

(3)

2,400

to

2,450

2,515

(5%)

to

(3%)

Operating Income

(4)

250

to

270

271

(8%)

to

0%

EBITDA

370

to

390

389

(5%)

to

0%

Earnings Per Share

(5)

$2.15

to

$2.35

$2.38

(10%)

to

(1%)

(1)

Guidance

is

presented

using

2015

budgeted

foreign

exchange

rates

(2)

2014

results

are

presented

using

2015

budgeted

foreign

exchange

rates

(3)

2015

and

2014

net

sales

include

the

impact

of

foreign

exchange

(4)

As

reported

Operating

Income:

$180

-

$200

million

in

2015

and

$239

million

2014

(5)

As

reported

earnings

per

share:

$0.85

-

$1.00

in

2015

and

$1.83

in

2014

Key Metrics –

Guidance 2015

17

2015 Financial Outlook

Sales

(1)

$1,220-$1,250 million; EBITDA $335-$350 million

Sales

(1)

$1,180-$1,200 million; EBITDA $100-$110 million

EBITDA ($65) –

($70)

$35 -

$45 million; Adjusted long-term ETR of ~39%

(2)

$155  -

$165 million

$25 million, US pension expense, non-cash

$20 -

$35 million, transaction costs

ABP Segment*

AFP

Segment*

Cash Taxes/ETR

Capital Spending*

Exclusions from  EBITDA

(1)

Net sales include foreign exchange impact

(2)

As reported ETR of 62% for 2015

* Changed from July Outlook

Corporate Segment

18

$62

$39

$93

$0

$20

$40

$60

$80

$100

2014 Adjusted

EBITDA

D&A/Fx

Adjustments to

Operating

Income

2014 As

Reported

Operating

Income - 10K

Corporate

Allocations

Other*

2014 As

Reported

Operating

Income - Form 10

($2)

($21)

($4)

($27)

Form 10 Historical Earnings Bridge –

Full Year 2014

Resilient Flooring

Wood Flooring

* Other consists of charges related to AFI not previously recorded at a consolidated level as they did not meet the prior materiality threshold

($13)

($23)

($15)

($13)

($28)

$21

($40)

($20)

$0

$20

$40

2014 Adjusted

EBITDA

D&A/Fx

Adjustments to

Operating Income

2014 As Reported

Operating Income -

10K

Corporate

Allocations

2014 As Reported

Operating Income -

Form 10

19

Appendix

20

September YTD 2015 vs. PY–

Adjusted EBITDA to Reported Net Income

2015

2014

V

EBITDA–

Adjusted

$315

$309

$6

Depreciation and Amortization

(89)

(88)

(1)

Operating

Income

–

Adjusted

$226

$221

$5

Non-cash Impact of U.S. Pension

19

1

18

Separation Expenses

17

-

17

Multilayered Wood Flooring Duty

4

-

4

Cost Reduction Initiatives

(1)

10

(11)

Impairment

-

4

(4)

Foreign Exchange Movements

8

3

5

Operating

Income

–

As

Reported

$179

$203

($24)

Interest/Other (Expense)

(45)

(41)

(4)

EBT

$134

$162

($28)

Tax (Expense)

(70)

(71)

1

Net Income

$64

$91

($27)

21

Consolidated Results

Third Quarter

2015

Reported

Comparability

(1)

Adjustments

Fx

(2)

Adj

2015

Adjusted

2014

Reported

Comparability

(1)

Adjustments

Fx

(2)

Adj

2014

Adjusted

Net Sales

659

-

20

679

679

-

(9)

670

Operating

Income

80

14

4

98

86

6

1

93

EPS

$0.54

$0.21

$0.05

$0.80

$0.84

$0.02

$0.02

$0.88

(1)

See earnings press release and 10-Q for additional detail on comparability adjustments

(2)

Eliminates impact of foreign exchange movements

September YTD

2015

Reported

Comparability

(1)

Adjustments

Fx

(2)

Adj

2015

Adjusted

2014

Reported

Comparability

(1)

Adjustments

Fx

(2)

Adj

2014

Adjusted

Net Sales

1,843

-

49

1,892

1,928

-

(23)

1,905

Operating

Income

179

39

8

226

203

15

3

221

EPS

$1.14

$0.76

$0.09

$1.99

$1.64

$0.30

$0.03

$1.97

22

Segment Operating Income (Loss)

Third Quarter

2015

Reported

Comparability

(1)

Adjustments

2015

Adjusted

2014

Reported

Comparability

(1)

Adjustments

2014

Adjusted

Building Products

90

1

91

87

-

87

Resilient Flooring

14

3

17

15

2

17

Wood Flooring

10

1

11

2

4

6

Unallocated Corporate

(Expense) Income

(35)

14

(21)

(18)

1

(17)

September YTD

2015

Reported

Comparability

(1)

Adjustments

2015

Adjusted

2014

Reported

Comparability

(1)

Adjustments

2014

Adjusted

Building Products

214

1

215

209

3

212

Resilient Flooring

43

4

47

46

5

51

Wood Flooring

(2)

12

6

18

5

9

14

Unallocated Corporate

(Expense) Income

(90)

36

(54)

(57)

1

(56)

(1)

Eliminates impact of foreign exchange movements and other discrete items; see earnings press release and 10-Q for additional detail.

(2)

Includes a $4 million charge recorded in the second quarter of 2015 resulting from new duty rates assigned by the U.S. Department of Commerce on multilayered wood

importers and a $1 million gain recorded in the second quarter of 2014 related to a refund of previously paid duties on imports of engineered wood flooring.

23

Cash Flow

Third Quarter

September YTD

($ millions)

2015

2014

2015

2014

Net cash from operations

$85

$89

$144

$111

Net cash (used for) investing

(21)

(29)

(45)

(97)

Free Cash Flow

$64

$60

$99

$14

Cash

flow

includes

cash

flows

attributable

to

the

European

flooring

business