 Armstrong World Industries Investor Presentation Fourth Quarter 2010 February 28, 2011 Exhibit 99.3 |
 2 Safe Harbor Statement This presentation contains “forward-looking statements” related to Armstrong World Industries, Inc.’s, future financial performance. Our results could differ materially from the results discussed in these forward-looking statements due to known and unknown risks and uncertainties. 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 recent reports on Forms 10-K and 10-Q filed with the SEC. We undertake no obligation to update any forward-looking statement beyond what is required by 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. |
 3 Key Metrics – Fourth Quarter 2010 Adjusted (1) Financial Overview (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. (2) As reported Net Sales: $643 million in 2010 and $653 million in 2009. (3) As reported Operating Loss: ($30 million) in 2010 and ($2 million) in 2009. (4) As reported EPS: ($0.36) in 2010 and ($0.07) in 2009. (5) Earnings per share reflect an adjusted tax rate of 42% for both 2010 and 2009. (6) Total cash as of December 31, 2010 of $316 million was comprised of $36 million in domestic cash and $280 million in foreign cash. Total cash as of December 31, 2009 of $570 million was comprised of $328 million in domestic cash and $241 million in foreign cash. Total debt was $875 million in 2010 and $473 million in 2009. All figures in $ millions unless otherwise noted. Figures may not add due to rounding. 2010 Actual 2009 Actual Variance Net Sales (2) $652 $657 (0.7%) Operating Income (3) 19 26 (27.6%) % of Sales 2.9% 3.9% (100 bps) EBITDA 47 54 (14.0%) % of Sales 7.1% 8.2% (110 bps) Earnings Per Share (4), (5) $0.11 $0.23 ($0.12) Free Cash Flow 43 53 (10) Net (Cash) Debt (6) 559 (97) 656 |
 4 Q4 2010 – Adjusted Operating Income to Reported Net Income Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. 2010 2009 V Operating Income – Adjusted (1) $19 $26 ($7) Foreign Exchange Movements 1 (1) 2 Cost Reduction Initiatives (22) (9) (13) Asset Impairments (22) (18) (4) Restructuring (7) - (7) Executive Transition (1) - (1) Gain from Settlement of Note Receivable 2 - 2 Operating Income – As Reported ($30) ($2) ($28) Interest (Expense) Income (8) (3) (5) EBT ($38) ($5) ($33) Tax (Expense) Benefit 17 1 16 Net Income ($21) ($4) ($17) |
 5 Q4 Sales and Adjusted Operating Income (1) by Segment – 2010 vs. 2009 Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. |
 6 Adjusted Operating Income (1) Bridge – Q4 2010 versus Prior Year Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. |
 7 Free Cash Flow – Fourth Quarter 2010 versus Prior Year Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. |
 8 Key Metrics – Full Year 2010 Adjusted (1) Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. (2) As reported Net Sales: $2,766 million in 2010 and $2,780 million in 2009. (3) As reported Operating Income: $81 million in 2010 and $91 million in 2009. (4) As reported EPS: $0.19 in 2010 and $1.36 in 2009. (5) Earnings per share reflect an adjusted tax rate of 42% for both 2010 and 2009. (6) Total cash in 2010 of $316 million was comprised of $36 million in domestic cash and $280 million in foreign cash. Total cash in 2009 of $570 million was comprised of: $328 million in domestic cash and $241 million in foreign cash. Total debt was $875 million in 2010 and $473 million in 2009. 2010 Actual 2009 Actual Variance Net Sales (2) $2,833 $2,853 (0.7%) Operating Income (3) 188 157 20.2% % of Sales 6.6% 5.5% 110 bps EBITDA 303 296 2.4% % of Sales 10.7% 10.4% 30 bps Earning Per Share (4), (5) $1.72 $1.44 $0.28 Free Cash Flow 180 211 (31) Net (Cash) Debt (6) 559 (97) 656 |
 9 Full Year Sales and Adjusted Operating Income (1) by Segment – 2010 vs. 2009 Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. |
 10 Adjusted Operating Income (1) Bridge – Full Year 2010 versus Prior Year Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. |
 11 Free Cash Flow – Full Year 2010 versus Prior Year Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. |
 12 Capital Structure as of December 31, 2010 Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. CASH Balance ($M) US Cash $36 International Cash 280 (1) TOTAL Cash $316 DEBT Balance ($M) Interest Rate Maturity Revolver ($250M) $25 (1) 3.28% (2) 2015 A/R Securitization ($100M) - 1.20% 2013 Term Loan A / B 250 / 550 3.28% / 5.00% (2) 2015 / 2017 Industrial Development Bond / Other 50 ~2.00% >2025 TOTAL Debt $875 Net Debt $559 (1) In January 2011, a significant amount of international cash was repatriated with the proceeds used to pay off the revolver. (2) Term Loan A and the revolver interest rates are LIBOR + 3% and Term Loan B interest rate is LIBOR + 3.5% with a 1.5% floor. |
 13 $150 Million Savings Program Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. $150M savings from manufacturing and SG&A, net of inflation. Will use procurement savings to mitigate strong inflationary pressure. |
 14 AWI - Return on Invested Capital (ROIC) Financial Overview All figures in $ millions unless otherwise noted. Figures may not add due to rounding. Near term goal is to return at least our cost of capital by 2013, with domestic housing starts ~ 1 million units. |
 15 Key Metrics (1) – Guidance 2011 Financial Overview All figures in $ millions unless otherwise noted. 2011 Estimate Range 2010 Variance Net Sales 2,800 to 3,000 2,766 1% to 8% Operating Income (2) 255 to 305 189 35% to 62% EBITDA 360 to 410 303 19% to 35% Earnings Per Share (3),(4) $2.04 to $2.53 $1.73 18% to 47% Free Cash Flow 70 to 120 180 (61%) to (33%) (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. (2) As reported Operating Income: $225 - 275 million in 2011 and $81 million 2010. (3) Earnings per share reflect an adjusted tax rate of 42% for both 2011 and 2010. (4) As reported earnings per share: $1.85 - $2.34 in 2011 and $0.19 in 2010. |
 16 2011 Financial Outlook Financial Overview Raw Material & Energy Inflation $35 - $45 million increase Manufacturing Productivity Gross Margin +100 to +200 bps vs. 2010 U.S. Pension Credit ~$25 million, down ~$25 million vs. 2010 60% manufacturing, 40% SG&A Earnings from WAVE $5 - $10 million vs. 2010 Cash Taxes/ETR ~$15 million. Adjusted ETR of 42% Q1 Sales $640 – $705 million EBITDA $72 – $88 million Capital Spending ~$180-$200 million Exclusions from EBITDA ~$18 - 27 million associated with already announced actions |
 Appendix |
 18 Full Year 2010 – Adjusted Operating Income to Reported Net Income Financial Overview Appendix All figures in $ millions unless otherwise noted. Figures may not add due to rounding. 2010 2009 V Operating Income – Adjusted (1) $188 $157 $31 Foreign Exchange Movements 2 - 2 Laminate Duty Refund 7 - 7 Cost Reduction Initiatives (50) (16) (34) Asset Impairments (31) (18) (13) Restructuring (22) - (22) Executive Transition (15) - (15) Gain on Settlement of Note Receivable 2 - 2 Accelerated Vesting - (32) 32 Operating Income – As Reported $81 $91 ($10) Interest (Expense) Income (14) (16) 2 EBT $67 $75 ($8) Tax (Expense) Benefit (56) 3 (59) Net Income $11 $78 ($67) (1) Figures exclude non-recurring items such as charges for cost reduction initiatives, restructuring, etc. Figures also exclude the impact of foreign exchange movements. |
 19 Normalized Operating Income to Free Cash Flow Financial Overview Appendix All figures in $ millions unless otherwise noted. 2011 Estimate Range Adjusted Operating Income 255 to 305 D&A 105 Adjusted EBITDA 360 to 410 Changes in Working Capital 10 to 30 Capex (180) to (200) Pension Credit (25) Interest Expense (50) Cash Taxes (15) Other, including cash payments for restructuring and one-time items (30) Free Cash Flow 70 to 120 |
 20 Consolidated Results Financial Overview Appendix All figures in $ millions unless otherwise noted. Figures may not add due to rounding. Fourth Quarter 2010 Reported Comparability (1) Adjustments FX (2) Adj 2010 Adjusted 2009 Reported Comparability (1) Adjustments FX (2) Adj 2009 Adjusted Net Sales 643 - 9 652 653 - 4 657 Operating Income (30) 50 (1) 19 (2) 27 - 26 EPS ($0.36) $0.48 ($0.01) $0.11 ($0.07) $0.30 $ - $0.23 Full Year 2010 2010 Reported Comparability (1) Adjustments FX (2) Adj 2010 Adjusted 2009 Reported Comparability (1) Adjustments FX (2) Adj 2009 Adjusted Net Sales 2,766 - 66 2,833 2,780 - 73 2,853 Operating Income 81 108 (2) 188 91 65 1 157 EPS $0.19 $1.55 ($0.02) $1.72 $1.36 $0.07 $0.01 $1.44 (1) See earnings press release and 10-K for additional detail on comparability adjustments (2) Eliminates impact of foreign exchange movements |
 21 Segment Operating Income (Loss) Financial Overview Appendix All figures in $ millions unless otherwise noted. Figures may not add due to rounding. (1) Eliminates impact of foreign exchange movements and non-recurring items; see earnings press release and 10-K for additional detail. Fourth Quarter 2010 Reported Comparability (1) Adjustments 2010 Adjusted 2009 Reported Comparability (1) Adjustments 2009 Adjusted Resilient Flooring (2) 3 1 (7) 2 (4) Wood Flooring (32) 28 (4) (10) 20 10 Building Products 16 16 32 24 - 24 Cabinets (1) - (1) (8) 5 (3) Unallocated Corporate (Expense) Income (12) (3) (9) - - - Full Year 2010 2010 Reported Comparability (1) Adjustments 2010 Adjusted 2009 Reported Comparability (1) Adjustments 2009 Adjusted Resilient Flooring 13 18 31 - 6 7 Wood Flooring (46) 39 (7) (6) 20 14 Building Products 171 27 198 156 1 157 Cabinets (6) - (6) (18) 6 (12) Unallocated Corporate (Expense) Income (51) 23 (28) (41) 32 (9) |
 22 Cash Flow Financial Overview Appendix All figures in $ millions unless otherwise noted. Figures may not add due to rounding. Fourth Quarter Full Year ($-millions) 2010 2009 2010 2009 Net Cash From Operations 49 82 190 260 Plus / (Minus) Net Cash from Investing (37) (29) (41) (41) Add back / (subtract): Restricted Cash 30 - 30 - Divestitures 1 - 1 (8) Equals Free Cash Flow 43 53 180 211 |