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

Xerium Technologies, Inc.

Third Quarter 2011

Selected Data –

Earnings Call

November 9, 2011

EXHIBIT 99.2

Forward Looking Statements

•

This presentation and the remarks we may make today about Xerium’s future

expectations, plans and prospects are forward-looking statements which reflect our

current views with respect to future events and financial performance. Any forward-

looking statements which we make in this presentation or in our remarks today,

represent our views only as of today. We disclaim any duty to update any of these

forward-looking statements.

•

Forward-looking statements involve risks and uncertainties, both known and

unknown.  Our actual results may differ materially from these forward-looking

statements due to a number of factors, including those factors discussed in our

earnings

press

release

dated

November

8,

2011,

and

other

factors

discussed

in

our

filings with the SEC, including our Form 10-K for the year ended December 31, 2010

and our Form 10-Qs for the quarters ended March 31 and June 30, 2011. 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 third quarter

2011 financial results conference call, our earnings release dated November 8, 2011

and the 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

Bookings Analysis –

Total Xerium

Order bookings for Q3 2011 were $134.5M compared to Q3 2010 of $142.7M, an $8.2M

decrease.  Bookings in 2011 have been positively influenced as compared to 2010 by the

USD/Euro exchange rate.

3

Bookings Analysis –

Roll Coverings

Rolls

Q3

2011

order

bookings

of

$50.1M

were

slightly

higher

than

Q3

2010’s

$49.4M.

Bookings in 2011 have been positively influenced as compared to 2010 by the USD/Euro

exchange rate.

4

Bookings Analysis –

Paper Machine Clothing

New PMC order bookings of $84.5M are lower than Q3 2010 levels of $93.2M and down

slightly vs. Q2 2011 of $86.9M.  Bookings of certain types of PMC are being constrained to

prevent

lead

time

extension.

Bookings

in

2011

have

been

positively

influenced

as

compared

to

2010

by

the

USD/Euro

exchange

rate.

5

Percent of Revenue from Asia-Pacific Markets

6

Generally,

over

time,

we

expect

growth

in

paper

production

to

be

greater

in

Asia-Pacific

than

in

the more mature North America and Western European regions.

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 products developed within the prior five

years, that make a measurable improvement in customer performance, are defendable long

term and simultaneously reduce our operating costs.

7

Xerium’s New Product Categorization

8

New products are categorized by their level of innovation and strategic purpose

Total Xerium Quarterly Sales and Gross Margin

Q3 2011 sales increased 9.1% over Q3 2010 primarily due to increased sales volume and

favorable currency.  Gross margin % is down slightly due primarily to higher raw material,

unfavorable product mix due to higher growth of lower margin product lines and increased

obsolescence expense due to favorable recovery in 2010 related to the sale of aged inventory.

9

S G & A as a Percent of Revenue, excluding 

Operational & Financial Restructuring Expenses

(A)

Excludes operational restructuring expenses

Note –

a reconciliation of SG&A as a percentage of revenue excluding  operational restructuring expenses is available in the investor

relations section of the Company’s website at www.xerium.com.

In Q3 2011, SG&A as a percent of sales is 24.8% as compared to Q3 2010 of 26.9%.  The

improvement is driven primarily by higher sales, decreased environmental expense and decreased

incentive compensation. These were offset by unfavorable currency impacts on SG&A.

10

Trailing Twelve Month (“TTM”) Adjusted EBITDA

Note:

Adjusted

EBITDA

at

each

quarter

was

the

amount

as

calculated

per

the

definition

in

the

New

Credit

Facility

with

the

exception

that

we

have

added

back

to

net

income

(loss)

per

the

terms

of

our

prior

credit

facility

financial

restructuring

costs

incurred

in

Q1

($9.6M)

and

Q2

($15.3M)

of

2010

as

part

of

the

reorganization.

A

reconciliation of Trailing Twelve Month Adjusted EBITDA to Net Income (Loss) and operating cash flows is available in the investor relations section of the Company’s

website at www.xerium.com.

11

Trade Working Capital (“TWC”) as a Percent of

Revenue 

Trade working capital % decreased 120 basis points versus Q2 2011 due to the strengthening

of the dollar and reduced levels of inventories. The inventory pre-build implemented earlier in

the year was completed in Q3.

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.

12

Total Xerium Annual Capital Expenditures

2011 investments focus on new products and existing equipment capacity and performance

upgrades.

13