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

Xerium Technologies Inc.

December 2010

Selected Data –

Earnings Call

March 9, 2011

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 March 9, 2011,

and other factors discussed in our filings with the SEC. Copies of these

filings are available from the SEC and in the investor relations

section of our

website at www.xerium.com.

•

These slides, the associated remarks and comments made during our

fourth quarter 2010 financial results conference call, our earnings release

dated March 9, 2011 and reconciliation of certain non-GAAP financial

information posted in the investor relations section of our website are

integrally related and are intended to be presented and understood

together.

2

3

Dec 09

Jan 10

Feb 10

Mar 10

Apr 10

May 10

Jun 10

Jul 10

Aug 10

Sept 10

Oct 10

Nov 10

Dec 10

13 Months

46,879

48,846

50,516

51,631

46,221

47,989

49,462

47,518

43,925

51,232

48,259

48,137

46,369

6 Months

47,518

43,925

51,232

48,259

48,137

46,369

3 Months

48,259

48,137

46,369

35,000

40,000

45,000

50,000

55,000

60,000

Bookings

Analysis

–

Total

Xerium

3, 6 & 13 Month Trend Lines

After a strong first quarter 2010, new order bookings return to fourth quarter 2009 levels, which

represented

a

significant

increase

from

the

first

three

quarters

of

2009.

Bookings

in

2010

have

been negatively influenced as compared to 2009 by dollar/Euro exchange rate.

4

Bookings

Analysis

–

Roll

Coverings

3, 6 & 13 Month Trend Lines

Consolidated new order bookings indicate our served market is recovering and has begun to

show signs of stability after operating in a tight band since January 2010.  Bookings in 2010

have been negatively influenced as compared to 2009 by the dollar/Euro exchange rate.

5

Bookings

Analysis

–

Paper

Machine

Clothing

3, 6 & 13 Month Trend Lines

New order bookings are slightly lower than December 2009 levels.

We continue to monitor

customer inventory levels.  Bookings in 2010 have been negatively influenced as compared to

2009 by the dollar/Euro exchange rate.

6

Total Xerium Quarterly Sales as Reported

'07 Q4

'08 Q1

'08 Q2

'08 Q3

'08 Q4

'09 Q1

'09 Q2

'09 Q3

'09 Q4

'10 Q1

'10 Q2

'10 Q3

'10 Q4

Qtr Sales $

164.2

158.9

170.4

159.3

149.5

116.5

120.8

130.3

132.4

135.0

132.8

135.9

144.6

Year-over-Year

-26.7%

-29.1%

-18.2%

-11.4%

15.9%

9.9%

4.3%

9.2%

$0

$30

$60

$90

$120

$150

$180

000’s

Sequentially,

Q4

2010

sales

have

increased

6.4%

over

Q3

2010

and

9.2%

over

Q4

2009

due

mainly to higher product demand.

7

Trailing Twelve Month (“LTM”) Adjusted EBITDA

Adjusted

EBITDA

at

each

quarter

was

the

amount

as

calculated

per

the

definition

in

the

credit

agreement

in

effect

at

that

time.

FY2010

quarterly

results

and

the

LTM

for

FY

2010

have

been

presented

as

defined

per

the

amended

and

restated

credit

facility.

Had

the

definitions

per

the

amended

and

restated

facility

been

in

place

in

2009,

the

LTM

for

the

first

three

quarters

of

2010

would

have

been

$109,317,

$102,222,

and

$103,399,

respectively.

Adjusted

EBITDA

for

Q4

2009

has

been

fixed by

the Amended Restated Credit Facility at $24,600.

Note:

a

reconciliation

of

Trailing

Twelve

Month

Adjusted

EBITDA

to

Net

Income

(Loss)

is

available

in

the

investor

relations

section

of

the

Company’s

website

at

www.xerium.com.

8

Sales Price Change as a Percent of Revenue

-3.0%

-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

07 Q4

08 Q1

08 Q2

08 Q3

08 Q4

'09 Q1

'09 Q2

'09 Q3

09 Q4

10 Q1

10 Q2

10 Q3

10 Q4

Global Economic Downturn

Note

–

Data

compares

as

a

%

sales

price

achieved

current

year

compared

to

prior

year

The

pricing

environment

is

steadily

improving

resulting

from

our

selling

disciplines,

customers’

recognition

of

the

value

of

our

new

products,

and

general

market

recovery.

9

New Product Sales as a Percent of  Revenue 

'09 Q2

'09 Q3

09 Q4

10 Q1

10 Q2

10 Q3

10 Q4

Clothing

23.9%

28.4%

27.0%

31.5%

33.3%

41.0%

47.7%

Rolls

13.1%

13.3%

14.9%

22.3%

23.5%

24.8%

26.2%

10%

20%

30%

40%

50%

Meaningful progress continues on Xerium’s goal to increase its technological leadership.  Our

goal is to derive 60% of XRM’s sales revenue from new products (those developed within the

prior

five

years)

that

make

a

measurable

improvement

in

customer

performance

while

simultaneously reducing our operating costs.

$ 43.8M

$ 13.8M

S G & A as a Percent of Revenue, excluding 

Operational & Financial Restructuring Expenses

'08 Q4

'09 Q1

'09 Q2

'09 Q3

09 Q4

10 Q1

10 Q2

10 Q3

10 Q4

SG&A % (A)

28.2%

27.8%

20.9%

27.0%

31.3%

35.4%

28.9%

26.9%

25.1%

15%

20%

25%

30%

35%

40%

’10 Q4

Sales = $144.6 M

’08 Q4

Sales = $149.5 M

’09 Q4

Sales = $132.4 M

(A)

Excludes operational restructuring expenses

(B)

Excludes operational restructuring expenses and financial restructuring expenses.

Note –

a reconciliation of SG&A as a percentage of revenue excluding (A) operational restructuring expenses and (B) operational and financial

restructuring expenses is available in the investor relations section of the Company’s website at www.xerium.com.

SG&A %  (B)

28.2%   27.8%    20.7%    25.5%   26.4%   28.4%   28.6%   26.9%

25.1%

10

Cost controls over SG&A spending have proven effective relative to significant

2009 sales volume changes.

11

Total Working Capital as a Percent of Revenue 

'08 Q4

'09 Q1

'09 Q2

'09 Q3

'09 Q4

'10 Q1

'10 Q2

'10 Q3

'10 Q4

Revenue 000's

149.5

116.5

120.8

130.3

132.4

135.0

132.8

135.9

144.6

TWC%

24.3%

29.4%

29.4%

27.8%

25.3%

25.6%

24.3%

26.5%

24.6%

$100

$110

$120

$130

$140

$150

$160

15%

20%

25%

30%

35%

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

2009. TWC % has improved 70 basis points this quarter as compared with Q4 2009.

(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.

12

Total Xerium Annual Capital Expenditures

2006

2007

2008

2009

2010

CAPEX

32.5

47.9

39.0

19.5

27.9

2010 Budget

32.0

$0

$15

$30

$45

000's

Our

controls

over

capital

investment

were

effective

throughout

2009

and

into

2010

in

prioritizing

only

investments

that

were

essential

to

supporting

our

customers

and

the

continued

development of our new products. 

13

Total Debt at Constant FX Rates

Note –

Total Debt converted at Q4 2010 FX rates for all periods presented  (Euro = USD $1.33,  Canadian Dollar = USD $1.00)

Q2 ’10 reflects the net reduction related to our voluntary pre-packaged chapter 11 plan of

reorganization, from which we emerged on May 25, 2010