August 1, 2011

Armstrong World Industries Investor Presentation

October 31, 2011

Safe Harbor Statement

Our disclosures in this presentation 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 y p , , p , p j , , identified by our use of words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "outlook," etc. in discussions of future operating or financial performance or the outcome of contingencies such as liabilities or legal proceedings. 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. 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 Managements Discussion and Analysis sections of our recent reports on Forms 10-K and 10-Q filed with the SEC. As a result, our actual results may differ materially from our expected results and from those expressed in our forward looking statements Forward-looking statements forward-looking statements. Forward looking 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 is available on the Investor Relations page of our website at www armstrong com www.armstrong.com.

Basis of Presentation Explanation

When Wh reporting our fi ti financial results within thi presentation, we make several adjustments. Management uses i l lt ithi this t ti k l dj t t M t 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.

We report in comparable dollars to remove the effects of currency translation on the P&L. The budgeted exchange rate for the current year is used for all currency translations in the t d i current year and prior years. We remove the impact of discrete expenses and income. Examples include plant closures, restructuring p , g actions, and other large unusual items. Taxes for normalized Net Income and EPS for all periods presented are calculated using a constant 42% which 42%, is based on the full year historical tax rate.

What Items Are Adjusted Comparable Other Dollars Adjustments

Net Sales Gross Profit SG&A Expense Equity Earnings Operating Income Net Income Cash Flow Return on Capital EBITDA Yes Yes Yes Yes Yes Yes No Yes Yes No Yes Yes Yes Yes Yes No Yes Yes

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

Company Overview

Armstrong at a Glance
Leading global manufacturer of floors and ceilings for use in renovation and new construction. Significant U.S. cabinets business. $2 8 billi i sales i 2010 $2.8 billion in l in
Market leader in businesses representing 80% of sales

Serving global customers from seven countries 31 manufacturing l f t i locations ti Approximately 9,300 employees Approximately $2 6 billion market capitalization $2.6
Strong balance sheet - $470 million of net debt Significant NOL carry forward

59 million diluted shares outstanding

300K average daily trading volume 64% owned by Armstrong Asbestos Trust and Armor TPG

AWI on the NYSE

Since October 2006 emergence from asbestos-related bankruptcy
Company Overview 4

History
2006
Emerge from g bankruptcy Initiate strategic review and sale process
1,355 1,801

2007
Cancel Strategic sale process

2008
$250M special dividend

2009
TPG invests in Armstrong

2010
New CEO and CFO Leverage recap. and $800M special dividend Investing in emerging markets

Housing starts g

A Announce $150M cost out initiative

906

Idle: Nashville

Sell Desseaux textile & sports flooring business

Idle: Montreal Mobile Close: Auburn Nashville

554

Close: St. Gallen Oneida Center Montreal Teeside

587

Sales

$3.50B

$3.54B $439M 12.4%

$3.21B $384M 12.0%

$2.85B $296M 10.4%

$2.83B $303M

EBITDA $407M 11.6%

Company Overview

10.7%
5

Present / Future
2011
Approve second flooring plant in China New leader of Ceilings business Approve new ceilings plant in China Cost out initiative raised to $165 million
Idle: Statesville Close: Beaver Falls Holmsund

2012

2013

2014

Competitive cost structure in place

$165 million cost reduction initiative, ongoing LEAN efforts

Fix underperforming businesses

European flooring products profitable in 2012

Dramatic growth in priority emerging markets

Three new Chinese manufacturing facilities on-line Significant increase is sales and marketing resources across emerging markets

Profitable growth in core markets gro th

Focus on product innovation, design and environmental leadership

Build a winning team and a global organization

Implement Organization Vitality and create a globally aligned organization

Sales EBITDA

$2.85 2.9B $380-$400M ~13.6% ROIC > Cost of Capital

Company Overview

Key Investment Highlights

New senior leadership team to execute strategy Cost savings program to achieve competitive cost structure Investments in emerging markets to continue to win and maintain market leader strategy ROIC targets to return at least the cost of capital by 2013 with ~1M housing starts Efficient balance sheet and sufficient liquidity to manage operations, execute capital spending and restructuring plans

Company Overview

2010 Business Segment and End-Use Profile

$2,800 $
Commercial renovation Commercial new Residential renovation Residential R id i l new

N.A. >75% renovation

$1,150
40% 55%

$650
40%

$475
65% 35% Hardwood Flooring 35%

20%

$375
% 5%

10% 40% 10%

30%

$150
45% 50% 5%

65% 30%

10% Building Products (Ceilings)

10% Consolidated

Cabinets

Resilient Flooring Resilient Flooring (Int'l) (N.A.)

9% of Sales from Emerging Markets

Majority f b i M j it of business is renovation d i ti dampens cycles. l

Company Overview 8

Business Segment Profile

2010 EBITDA
Cabinets 0% Resilient Flooring 19%

Building Products ( (Ceilings) g ) 79%

Wood Flooring 2%

Excludes unallocated corporate expense

Building Products delivers the bulk of worldwide income and has remained profitable through the economic cycle.
Company Overview 9

Industry Structure/Competitive Position

European Resilient Building Products

U.S. Resilient Market Leadership Competitor Concentration Industry Capacity Utilization Low-Cost Manufacturer

Hardwood

Cabinets

Key

Favorable

Neutral

Unfavorable

Armstrong continuously focused on competitive dynamics.

Company Overview 10

Business Segment Overview

11

Worldwide Business Overview Building Products

North America
Mkt Size (B ft2) Commercial Residential 1.4 0.4 AWI Rank 1 1 Western Eastern Africa / MidEast

Europe, Africa, Middl E Af i MiddleEast

Mkt Size (B ft2) f 1.2 0.5 0.3 AWI Rank 1 1 1

Asia, Australia
Mkt Size (B ft2) China Australia India SE Asia 0.2 <0.1 <0.1 <0.1 AWI Rank 1 1 1 1

Worldwide market leader in suspended ceilings.

Business Segment Overview - Building Products 12

ABP Key Strategies

1
Broadest Product Portfolio

Emerging Market Growth

Complete product offering New product pipeline (Metal, Wood) Win versus soft fiber in Europe

Plant #2 in China Distribution in Russia, Middle East Grid plant in India

Innovation Leadership

Best-in-Class Service/Quality

Sustainability leadership C Custom solutions ( (Metal, Wood) ) Recycling program

Best on-time delivery performance L Lowest claims rate t l i t Best product availability

Business Segment Overview - Building Products

13

Building Products (ABP) Sales by Geography

Ceilings & Grid ($-Millions) 800
600 400 200 0 Americas
15% of Sales from Emerging Markets

700

Global market leader Broadest Product Line Innovation Go-to-Market Best cost, quality, service
350

>90% sales commercial Grid 50/50 joint venture

$115

Europe

Asia

Contribution of WAVE JV Profit to Operating Margin Worldwide EBITDA Margin

4% 22%

Adding new engines to accelerate global growth.

Business Segment Overview - Building Products 14

Worldwide Business Overview Floor Products *

North America
Mkt Size (B ft2) Commercial Residential Wood 1.0 2.0 0.6 AWI Rank

Europe, Africa, Middle-East

Mkt Size (B ft2) Central 1 1 1 Eastern / Africa / Mid-East Western Europe 0.3 5 China Australia 0.9 4 India SE Asia 0.3 AWI Rank 1

Asia, Australia
Mkt Size (B ft2) 0.4 0.1 <0.1 0.1 AWI Rank 3 2 1 1

Global presence with market leadership in most regions.

* Market figures exclude segments in which we do not participate.
Business Segment Overview - Worldwide Floor Products 15

AFP Key Strategies

Best Product Portfolio

Complete Market Coverage

Offer broadest assortment Drive mix Quality leadership

Brand leadership Merchandising presence Sales coverage effectiveness

Low-Cost Manufacturing

Innovation Leadership

Lean deployment Capability investment e g glass investment, e.g., glass, wood automation Rationalize footprint

Environmental solutions Design performance and Design, performance, installation

Drive China Growth

Restructure Europe

Focus on market development Plant investments to support growth

Exited Residential Simplify Commercial participation C t t plants and SG&A Cost-out l t d

Business Segment Overview - Worldwide Floor Products

16

Floor Products (AFP) Sales by Geography

Resilient & Wood ($-Millions)
800 600 400 200 0 Americas Americas Europe Asia

Worldwide Resilient Wood

650 475 300 90

4% of Sales from Emerging Markets

Worldwide Adjusted EBITDA Margin excluding Europe

5% 7%

Continued profitability through bottom of residential downturn.

Business Segment Overview - Worldwide Floor Products 17

European Floor Products

2009 Sales (1) EBITDA
(2)

2011 $330M ($ 15M) Sales EBITDA

(2)

$280M $ 0M

Residential

13%
Other 16% Linoleum 37%

Other 15%

Transform the business

Vinyl 40%

Linoleum 45%

Vinyl 34%

Commercial 87%

Commercial 100%

Exited Residential segment Simplified Commercial business country and product participation Closed Teesside and Holmsund plants SG&A restructuring 38% decrease in headcount

EBITDA break even in 2011 Profitable in 2012.

(1)

Includes intercompany sales, (2) Excludes restructuring expense

Business Segment Overview - European Floor Products

18

Cabinets

Current Situation
Small player<5% share Focus on small-/medium-size builder Go-to-Market
% of S l f Sales Company-Owned Service Centers Distribution Multi-Family 51% 27% 22%

2010 Sales = $150M

Remodel 45% 5% New 55%

Strategy
Niche player both new and remodel Restructure costs to reflect market reality Non-core business
Business Segment Overview - Cabinets 19

Financial Overview

20

Financial Summary
Profitable and cash flow positive through downturn Focus on cost control / productivity Strong free cash flow ROIC greater than cost of capital in 2013, with new home starts at one million Continuing to fully invest in businesses Strong balance sheet: leverage, liquidity and maturity profile Overfunded US pension p p plan Positioned for considerable operational leverage on modest market recovery

Financial Overview

21

EBITDA Bridge (2006-2009)

$600 $170
Figures rounded to nearest $5 million

$500 $405 $400 $55 $85 $200 ($385) ($30) $100 ($5) $295

$300

$ $2006 Actual Price / Mix Volume Input Costs Mfg Costs SG&A WAVE 2009 Actual

Cost d ti C t reduction and improved price / mix significantly offset di d i i i ifi tl ff t dramatic volume declines.
Financial Overview 22

EBITDA Bridge (2009-2010)

Figures rounded to nearest $1 million

$350 $15 $300 $250 $200 $150 $ $100 $50 $$

2009 Actual Price / Mix Volume Raw Mfg Costs Materials / Energy

$296 ($26) $ ($31)

$48

$20 $5 ($24) $303

SG&A

Change in D&A

WAVE

2010 Actual

Cost reduction offsets volume and input cost headwinds.

Financial Overview 23

EBITDA Bridge September YTD 2011 versus Prior Year

$400 $350 $57 $300 $256 $250
($47)

$36 $62

$8 $325
($19)

($6)

($22)

$200 $150 $100 $50 $0 2010 Price / Volume Input Mix Costs Mfg Cost SG&A WAVE Pension Change Credit in D&A 2011

Price offsets inflation, cost savings drives improved results

Financial Overview 24

Cost Savings Program

$100 $90
SG&A Savings g Structural Manufacturing and Labor Savings g g TBA

Incremental Savings ($M M)

$80 $70 $60 $50 $40 $30 $20 $10 $0 2010 2011
$135M

$55

TBA $15 $35 $20 $5 2012 $25

Cumulative Savings

$35M

Savings from manufacturing and SG&A, net of inflation. Manufacturing savings driven by plant closures and LEAN.

Financial Overview

25

Balance Sheet
(Millions)

9/30/2011
Maturity Profile No significant maturities until 2015 Considerable covenant flexibility
(2%) (14%)

$800

$400

$0

TermLoans

IDBs/Other

$800 $700 $600 $500 $400 $400 $300 $200 $100 $0 ($100) ($200)

$655

Liquidity Li idi
LCs Securitization

100 250

Sufficient liquidity to manage operations, and execute capital spend and restructuring plans d d t t i l

375 (70)

Revolver Cash

Financial Overview

26

Financial Overview Appendix

27

Key Metrics Guidance 2011

2011 Estimate Range Net Sales(1) Operating Income(2) EBITDA Earnings Per Share(3) Free Cash Flow 2,850 275 380 $2.25 80 to to to to to 2,900 295 400 $2.45 120

2010 2,766 189 303 $1.73 180 3% 46% 25% 30% (56%)

Variance to to to to to 5% 56% 32% 42% (33%)

(1) Sales figures include foreign exchange impact. (2) As reported Operating Income: $235- 255 million in 2011 and $81 million 2010. (3) As reported earnings per share: $1.86- $2.06 in 2011 and $0.19 in 2010.

Guidance provided as of October 31, 2011.

We undertake no obligation to update guidance, beyond what is required by securities law.

Financial Overview

28

2011 Financial Outlook

Raw Material & Energy Inflation Manufacturing Productivity* U.S. Pension Credit Earnings from WAVE Cash Taxes/ETR Q4 Capital Spending* Exclusions from EBITDA* $50 - $60 million increase Gross Margin +150 to +200 bps vs. 2010 ~$25 million, down ~$25 million vs. 2010 60% manufacturing, 40% SG&A $5 - $10 million vs 2010 vs. ~$25 million. Adjusted ETR of 42% Sales $645 $695 million EBITDA $55 $75 million ~$150-$170 million ~$22 - $25 million associated with already announced actions

* Changed from July Outlook

Financial Overview

29

Full Year 2010 Adjusted Operating Income to Reported Net Income

2010 Operating Income Adjusted Foreign Exchange Movements Laminate Duty Refund L i t D t R f d Cost Reduction Initiatives Asset Impairments Restructuring Executive Transition Gain on Settlement of Note Receivable Accelerated Vesting Operating Income As Reported Interest (Expense) Income EBT Tax (Expense) Benefit Net Income $188 2 7 (50) (31) (22) (15) 2 $81 (14) $67 (56) $11 2009 $157 (16) (18) (32) $91 (16) $75 3 $78 V $31 2 7 (34) (13) (22) (15) 2 32 ($10) 2 ($8) (59) ($67)

Financial Overview Appendix

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