T H I R D Q U A R T E R 2 0 2 1 E A R N I N G S

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Commercial LVT | Biome™ Montaine, Kilimanjaro

Safe Harbor Statement

Disclosures in this release and in our other public documents and comments contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding financial covenant relief under our credit and term loan facilities. 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. 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 could cause our actual results to differ materially from those projected, anticipated or implied is included our reports filed with the U.S. Securities and Exchange Commission. 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. The information in this presentation is only effective as of the Company's Third Quarter Earnings call on November 5, 2021 and is subject to change. Any distribution of this presentation on or after November 5, 2021, is not intended and will not be construed as updating or confirming such information.

Armstrong Flooring, Inc. competes globally in many diverse markets. References to "market" or "share" data are simply estimations based on a combination of internal and external sources and assumptions. They are intended only to assist discussion of the relative performance of product segments and categories for marketing and related purposes. No conclusion has been reached or should be reached regarding a "product market," a "geographic market" or "market share," as such terms may be used or defined for any economic, legal or other purpose.

In addition, we will be referring to "non-GAAP financial measures" within the meaning of SEC Regulation G. Management uses non-GAAP measures, including Adjusted EBITDA and Free Cash Flow, in managing the business and believes the adjustments provide meaningful comparisons of operating performance between periods. We remove the impact of certain discrete expenses and income. The non-cash expense impact of the U.S. pension and depreciation and amortization is also excluded.

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

measures calculated in accordance with GAAP can be found in the appendix section of this 2 presentation.

Commercial Sheet | MedinPure™ Mirror Lake, Sea Lion, and Dolphin

Third Quarter 2021

Business Update

  • Q3 sales benefited by higher price realization, including the third price increase implemented this past August. Inflation exceeded price realization by approximately $12 million in the quarter
  • Commercial & Residential distribution/direct channel growth in the quarter, however facing challenges due to ocean freight constraints and raw material availability. Elevated North America domestic manufactured and sourced open order balances extending into Q4; Q3 and YTD container miss impacted revenue by approximately $15 million.
  • Australia and China showed sales recovery from pandemic, however facing margin pressures due to continued inflationary raw material prices
  • Continued focus in domestic plants to deliver planned production and productivity, with improved operational effectiveness versus the prior quarter

3

Amendments to Credit Facility & Term Loan

  • Amendments finalized November 1, 2021
  • Revised the minimum Consolidated Cash Flow requirement for the fiscal quarter period ending September 30, 2021
  • Established new minimum availability thresholds to be maintained for November and December, and periods thereafter
  • Engaged financial consultant
  • Working collaboratively with lenders to analyze options for longer term covenant relief
  • Reclassified amounts outstanding under the ABL Credit Facility and the Term Loan Agreement from Long-term debt to current installments of long-term debt at September 30, 2021

Biome Collection

4

Essentials Plus Collection

KEY HIGHLIGHTS

  • Global sales growth of 7.6%, price increases and favorable mix offset slower end-of-quarter volumes driven by sourcing constraints
  • North America net sales increase of 5.0%, driven by pricing and channel growth in Commercial & Residential Direct
  • Asia & Australia experienced sales recovery from the pandemic in most sectors
  • LVT in North American markets strong, improved mix in Commercial with new product introductions. Res LVT driven by strong penetration in the builder/multi-family channel
  • Comprehensive price reset - 4th North America Price action in 2021 - announced in September, effective November 1st .- broad increases across all categories, an ocean freight surcharge of $0.05-$0.25/sq ft.
  • Globally, headed into Q4, elevated open order balance of ~$67M Net Sales. Orders > shipments in Q3.

Q3 NET SALES

Q3

2 YR CAGR

AFI

0.87%

NA

-1.34%

$168.5M

China

10.77%

$165.6M

Aus

7.47%

$156.6M

$134.8M

$131.2M

$124.9M

$23.8M

$24.9M

$29.2M

$7.1M

$7.0M

$8.2M

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AFI Q3

NA Q3

China Q3

Aus Q3

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Armstrong Flooring Inc. published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 11:37:11 UTC.