Information regarding forward-looking statements

This Interim Report on Form 10-Q contains certain statements, statistics and projections that are, or may be, forward-looking. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results of operations, financial condition, liquidity, performance, prospects, opportunities, achievements or industry results, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. The accuracy and completeness of all such statements, including, without limitation, statements regarding our future financial position, strategy, plans and objectives for the management of future operations, is not warranted or guaranteed. These statements typically contain words such as "believes," "intends," "expects," "anticipates," "estimates," "may," "will," "should" and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, factors identified in "Business," "Risk factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations," or elsewhere in this Interim Report, as well as:

•general economic conditions, or conditions affecting demand for the services offered by us in the markets in which we operate, both domestically and internationally, being less favorable than expected;

•worldwide economic and business conditions and conditions in the industries in which we operate;

•post-pandemic impact of COVID-19 and future pandemics;

•fluctuations in the cost and / or availability of raw materials, labor and utilities, as well as our ability to pass on cost increases to customers;

•currency fluctuations and other financial risks;

•our ability to protect our intellectual property;

•the significant amount of indebtedness we have incurred and may incur, and the obligations to service such indebtedness and to comply with the covenants contained therein;

•relationships with our customers and suppliers;

•increased competition from other companies in the industries in which we operate;

•changing technology;

•our ability to execute and integrate new acquisitions;

•claims for personal injury, death or property damage arising from the use of products produced by us;

•the occurrence of accidents or other interruptions to our production processes;

•changes in our business strategy or development plans, and our expected level of capital expenditure;

•our ability to attract and retain qualified personnel;

•restrictions on the ability of Luxfer Holdings PLC to receive dividends or loans from certain of its subsidiaries;

•climate change regulations and the potential impact on energy costs;

•regulatory, environmental, legislative and judicial developments; and

•our intention to pay dividends.

Please read the sections "Business" and "Risk factors" included within the 2021 Annual Report on Form 10-K and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk factors" of this Interim Report on Form 10-Q for a more complete discussion of the factors that could affect our performance and the industries in which we operate, as well as those discussed in other documents we file or furnish with the SEC.



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About Luxfer

Luxfer is a global manufacturer of highly-engineered industrial materials, which focuses on value creation by using its broad array of technical know-how and proprietary technologies. Luxfer's high-performance products are used in defense and emergency response, healthcare, transportation, and general industrial settings. For more information, visit www.luxfer.com.

Key trends and uncertainties regarding our existing business

Update on ongoing challenging global macro environment and related impact on supply chain disruption



Demand from most end-markets we serve has continued to improve following the
adverse impact of COVID-19
on volumes, notably in 2020. This sharp recovery in demand across the global
macro environment has resulted
in supply chain challenges characterized by significant increases in material
cost inflation on key inputs
(including magnesium, aluminum and carbon fiber), labor availability issues and
energy and transport cost
increases. Additionally, in the prior year we were faced with two critical
suppliers of magnesium and zirconium
respectively declaring force majeure, of which the former remains in place. The
continuing conflict in Ukraine
which has resulted in punitive sanctions against the Russian Federation has
further exacerbated the availability
and price of certain raw materials and energy supplies. In response to the
supply chain disruption, we have been
successful in securing alternative sources of supply for key material inputs
affected by force majeure.
Furthermore, in the majority of cases, we are able to pass through inflation to
our customers. Currently, our
expectation is that the impact of material availability / inflation and energy
cost inflation and labor and transport
constraints will continue into at least the second half of 2022; that we will be
able to source sufficient material to
meet demand and that in the majority of cases we expect to be able to pass on
cost increases. However the
outlook remains highly uncertain with both the size and timing of future cost
increases difficult to predict.

Impact of conflict in Ukraine



The Russian invasion of Ukraine and ongoing military conflict which commenced on
February 24, 2022, has
resulted in massive displacement of the Ukrainian population and huge disruption
to its economy. Wide-ranging
sanctions have been imposed on the Russian Federation by the international
community, targeting individuals,
banks, businesses, funds transfers and imports and exports and are expected to
have a significant adverse
impact on Russia's economy as well as on international businesses active in the
region. The impact on Luxfer is
not expected to be significant as we have no direct operations in the region,
and our sales to Russia and Ukraine
combined typically represent less than one percent of total revenue by
destination. Furthermore, neither country
is a critical supplier of our raw material needs, and while Russia is a major
global exporter of magnesium, we are
able to source the metal from various alternative locations, including China,
Israel, Turkey and the United States.

Operating objectives and trends

In 2022, we expect the following operating objectives and trends to impact our business:

•Organic growth initiatives with particular focus on revenue from new products;

•Actions to ensure continuity of supply of critical materials and services while safeguarding margins;

•Proactive response on health and well-being of employees, including continuous improvement on safety;

•Targeted improvements in ESG standing through investment in new projects;

•Continued focus on recruiting and developing talent and driving a high-performance culture; and

•Continued focus on operating cash generation leveraging our recent years' of restructuring activity and targeting strong working capital performance.




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