Xerium (XRM) 8-K Xerium Technologies Reports Third Quarter Results

Xerium

Technologies Inc.

September 2009

Selected Data –

Earnings Call

November 6, 2009

Exhibit 99.2

Forward Looking Statements

•

This presentation contains forward-looking statements involving

risks and uncertainties, both known and unknown, that may cause

the actual results to differ materially from those indicated.

•

Actual results may differ materially due to a number of factors,

including those factors discussed in our earnings press release

dated November 5, 2009, and other factors discussed in our filings

with the SEC, including our report on Form 10-K for the period

ending December 31, 2008 and subsequent filings.  Copies of these

filings are available from the SEC and in the investor relations

section

of

our

website

at

www.xerium.com.

•

These slides and the associated remarks and comments made

during our third quarter 2009 financial results conference call are

integrally related and are intended to be presented and understood

together.

•

Q3 demonstrated strong “bookings”

in most regions and segments

3

Recovering Market Conditions Prevail

Note:

“Bookings”

are

defined

as

purchase

orders

received

from

external

customers

that

define:

specific

deliverables,

delivery

dates,

pricing

and

payment

terms,

delivery

instructions/destination,

and

clearly

define

change

of

ownership.

“Booked”

orders

may

or

may

not

become

shipments

as

customers

may

cancel,

delay

or

otherwise

change

the

terms

of

the

order

up

until

delivery

is

completed.

4

Bookings Analysis –

Total Xerium

3, 6 &13 Month Trend Lines

Consolidated new order bookings indicate served market recovery is underway.  Three month

trend line sloped up more steeply than six month trend line suggests accelerating recovery.

5

Bookings Analysis –

Paper Machine Clothing

3, 6 &13 Month Trend Lines

Consolidated new order bookings indicate served market recovery is underway.  Three month

trend line sloped up more steeply than six month trend line suggests accelerating recovery.

6

Bookings Analysis –

Rolls

3, 6 &13 Month Trend Lines

Consolidated new order bookings indicate served market recovery is underway.  Three month

trend line sloped up more steeply than six month trend line suggests accelerating recovery.

Recovering Market Conditions Prevail

•

Q3 demonstrated strong “bookings”

in most regions and segments

•

Declining machine and mill curtailments

•

Strengthening pricing for market pulp and recycled fiber

•

Company surveys show declining inventories of paper machine clothing

at customer mills

•

Industry association data documents declining Paper Machine Clothing

inventories

•

Relatively firm pricing for roll covers and paper machine clothing

7

“Bookings”

are defined as purchase orders received from customers that define: specific deliverables, delivery dates, pricing and payment

terms,

delivery

instructions/destination,

and

clearly

defined

change

of

ownership.

“Booked”

orders

may

or

may

not

become

shipments

as

customers

may

cancel,

delay

or

otherwise

change

the

terms

of

the

order

up

until

delivery

is

completed.

%

8

Sales Price Change as a Percent of

Revenue

Note

–

Data

compares

as

a

%

sales

price

achieved

current

year

compared

to

prior

year

%

9

New Product Sales as a Percent of 

Revenue 

Initial

signs

of

progress

are

emerging

in

Xerium’s

strategy

to

increase

its

technological

leadership,

by

accelerating the introduction of new products (those developed within the prior five years) that make a

measureable

improvement

in

customer

performance

while

simultaneously

reducing

XRM’s

operating

costs.

$ Millions

10

Total Xerium

Quarterly Sales

7.9% improvement from Q2 ’09 to  Q3 ‘09 marks the second consecutive quarter over quarter

Improvement.

It

is

too

early

to

tell

if

this

is

a

sustainable

recovery

or

customers

replenishing

inventories.

11

Quarterly Sales –

Paper Machine Clothing 

7.5% improvement from Q2 ’09 to Q3 ‘09 marks the second consecutive quarter over quarter

Improvement.

It

is

too

early

to

tell

if

this

is

a

sustainable

recovery

or

customers

replenishing

inventories.

12

Quarterly Sales –

Rolls 

8.6% improvement from Q2 ’09 to Q3 ‘09 marks the second consecutive quarter over quarter

Improvement.

It

is

too

early

to

tell

if

this

is

a

sustainable

recovery

or

customers

replenishing

inventories.

13

Gross Margin Percent of Revenue

Note -

’08 Q3 GM% decline due to adoption of revised company policy for inventory obsolescence

Margin

declines

in

late

2008

and

2009

relate

to

under

absorption

of

fixed

cost,

and

the

increasing

mix

of

lower

margin

Asian

roll

covers

following

our

Q4

2007

acquisition

of

a

roll

covers

business

in

China.

S G & A Percent of Revenue as Reported

Note -

Compares SG&A costs (selling, G&A, R&D, Restructuring costs) excluding Pension Curtailment gain in 2008

Cost controls proved effective in reducing S G & A in the face of substantial volume declines,  but 

adjustments, impairments and advisor fees make quarter over quarter comparisons challenging.

14

15

Trailing Twelve Month Bank Adjusted EBITDA

Note:  a reconciliation of Trailing Twelve Month Bank Adjusted EBITDA to Net Income (Loss) is available in the investor relations section of the Company’s website at www.xerium.com.

16

Total Working Capital as a Percent of

Revenue 

2008’s progress in reducing TWC was reset by the precipitous and sudden decline

in demand.  Our teams are now making progress re-adjusting to this new reality.

(Note:  a reconciliation of Total Working Capital to Revenue is available in the investor relations section of the Company’s website at www.xerium.com.

17

Total Debt at Constant FX Rates

Note –

Total Debt converted at Q2 2005 FX rates for all periods presented    (Euro = USD $1.20,  Canadian Dollar = USD $0.82)