Xerium 8K Technologies Reports First Quarter Results | XRM 5 May 11

Xerium Technologies Inc.

March 2011

Selected Data –

Earnings Call

May 4, 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

number

factors,

including

those factors discussed in our earnings press release dated May 4, 2011,

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

filings

are

available

from

the

SEC

and

the

investor

relations

section

our

website at www.xerium.com.

•

These slides, the associated remarks and comments made during our first

quarter 2011 financial results conference call, our earnings release dated

May 4, 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.

Bookings

Analysis

–

Total

Xerium

6 & 13 Month Trend Lines

New order bookings for 1Q2011 are $155.4M compared to 1Q2010 of $150.9M, a $4.5M

increase. Bookings in 2011 have been slightly positively influenced as compared to 2010 by

the dollar/Euro exchange rate.

35,000

40,000

45,000

50,000

55,000

60,000

51,631

46,221

47,989

49,462

47,518

43,925

51,232

48,259

48,137

46,369

53,238

50,082

52,033

6 Months

48,259

48,137

46,369

53,238

50,082

52,033

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

13 Months

Bookings

Analysis

–

Roll

Coverings

6 & 13 Month Trend Lines

Rolls new order bookings of $54.0M in 1Q2011 are 16.7% higher than 1Q2010 levels of

$46.2M. This represents the strongest quarter over the last year. Bookings in 2011 have

been slightly positively influenced as compared to 2010 by the dollar/Euro exchange rate.

10,000

12,000

14,000

16,000

18,000

20,000

13 Months

15,819

14,968

15,917

16,789

15,809

17,279

16,341

17,890

17,758

17,276

17,739

16,713

19,549

6 Months

17,890

17,758

17,276

17,739

16,713

19,549

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Bookings

Analysis

–

Paper

Machine

Clothing

6 & 13 Month Trend Lines

New order bookings of $101.4M are slightly lower than1Q2010 levels of $104.8M. However,

bookings increased $11.5M over Q42010 bookings. PMC bookings are being constrained to

prevent lead time extension. Bookings in 2011 have been slightly positively influenced as

compared to 2010 by the dollar/Euro exchange rate.

15,000

20,000

25,000

30,000

35,000

40,000

13 Months

35,812

31,253

32,072

32,673

31,709

26,646

34,891

30,370

30,395

29,095

35,502

33,370

32,484

6 Months

30,370

30,395

29,095

35,502

33,370

32,484

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

New Product Sales as a Percent of Revenue

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

measurable

improvement

customer

performance

while

simultaneously reducing our operating costs.

$ 18.2M

$ 45.6M

'09 Q3

09 Q4

10 Q1

10 Q2

10 Q3

10 Q4

11 Q1

Clothing

28.4%

27.0%

31.5%

33.3%

41.0%

47.7%

48.6%

Rolls

13.3%

14.9%

22.3%

23.5%

24.8%

26.2%

36.9%

10%

20%

30%

40%

50%

Total Xerium Quarterly Sales and Gross Margin

000’s

Sequentially, Q1 2011 sales increased 6.1% over Q1 2010 and 22.9% over Q1 2009 primarily

due to higher product demand.

'09 Q1

'09 Q2

'09 Q3

'09 Q4

'10 Q1

'10 Q2

'10 Q3

'10 Q4

'11 Q1

Qtr Sales $

116.5

120.8

130.3

132.4

135.0

132.8

135.9

144.6

143.2

Year-over-Year

(26.7%)

(29.1%)

(18.2%)

(11.4%)

15.9%

9.9%

4.3%

9.2%

6.1%

Gross Margin

38.0%

37.7%

37.4%

36.8%

38.3%

38.9%

38.7%

40.3%

37.7%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

$30

$60

$90

$120

$150

$180

S G & A as a Percent of Revenue, excluding

Operational & Financial Restructuring Expenses

(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)

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

25.1%

27.9%

In 2011, SG&A as a percent of sales is 27.9% as compared to fourth quarter 2010 of 25.1%. Without

the gain on sale of land in fourth quarter of 2010, the SG&A % would have been 26.1%. The

remaining increase between quarters relates to currency of $.6 million and other miscellaneous

expenses.

'09 Q1

'09 Q2

'09 Q3

'09 Q4

'10 Q1

'10 Q2

'10 Q3

'10 Q4

'11 Q1

SG&A % (A)

27.8%

20.9%

27.0%

31.3%

35.4%

28.9%

26.9%

25.1%

27.9%

15%

20%

25%

30%

35%

40%

’09 Q1

Sales=$116.5 M

’10 Q1

Sales=$135.0 M

’11 Q1

Sales=$143.2 M

Trailing Twelve Month (“LTM”) Adjusted EBITDA

Q1-09

Q1-10

Q1-11

Adjusted EBITDA by Qtr

20,567

32,325

27,916

24,753

24,476

25,230

29,093

35,251

26,145

Adjusted EBITDA LTM

105,408

109,317

102,222

103,399

114,050

115,719

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Adjusted EBITDA at each quarter was the amount as calculated per the definition in the Amended Restated Credit Facility. Under the Amended Restated Credit

Facility, additional add backs were $398, $671, $2820, and $8665 in Q1, Q2, Q3 and Q4 of 2009 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.

Average Sales Price Change as a % of Revenue

-3.0%

-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

'09 Q1

'09 Q2

'09 Q3

09 Q4

10 Q1

10 Q2

10 Q3

10 Q4

11 Q1

Global Economic Downturn

Note –

Data

compares

sales

price

achieved

current

year

compared

prior

year

Our pricing environment has stabilized over the past two plus years resulting from our selling

disciplines,

customers’

recognition

the

value

our

new

products,

and

general

market

recovery.

Trade Working Capital as a Percent of Revenue

'09 Q1

'09 Q2

'09 Q3

'09 Q4

'10 Q1

'10 Q2

'10 Q3

'10 Q4

'11 Q1

Revenue 000's

116.5

120.8

130.3

132.4

135.0

132.8

135.9

144.6

143.2

TWC% Qx4

29.4%

27.8%

25.3%

25.6%

24.3%

26.5%

24.6%

27.7%

$100

$105

$110

$115

$120

$125

$130

$135

$140

$145

$150

15%

20%

25%

30%

35%

Q1 2011 TWC % has increased primarily due to currency, higher sales demand, prebuild to

support

annual

sales

targets,

and

accelerated

raw

material

purchases

advance

anticipated

oil driven price increases.

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

Total Xerium

Annual Capital Expenditures

2008

2009

2010

2011

CAPEX

39.0

19.5

27.9

4.2

2011 Budget

32.4

$15

$30

$45

000's

Our

controls

over

capital

investment

were

effective

throughout

2009

and

2010

prioritizing

only

investments

that

were

essential

supporting

our

customers

and

the

continued

development

our

new

products.

2011

investments

focus

new

products

and

existing

equipment

capacity

and

performance

upgrades.

Total Debt at Constant FX Rates

10 Q1

10 Q2

10 Q3

10 Q4

11 Q1

Total

Debt

643.5

498.6

495.3

492.4

488.2

$300

$375

$450

$525

$600

Note –

Total Debt converted at Q1 2011 FX rates for all periods presented (Euro = USD $1.42, Canadian Dollar = USD $1.03)

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

000’s

Xerium (XRM) Inactive 8-KXerium Technologies Reports First Quarter Results