Luxfer : November 2023 Investor Presentation

INVESTOR PRESENTATION

November 2023

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Forward-Looking Statements

This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include but are not limited to: (i) statements regarding the Company's results of operations and financial condition; (ii) statements of plans, objectives or goals of the Company or its management, including those related to financing, products, or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "forecasts," and "plans," and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections, and other forward-looking statements will not be achieved. The Company cautions that several important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates, and intentions expressed in such forward-looking statements. These factors include but are not limited to: (i) lower than expected future sales; (ii) increasing competitive industry pressures; (iii) general economic conditions or conditions affecting demand for the products and services it offers, both domestically and internationally, including as a result of post-Brexit regulation, being less favorable than expected; (iv) worldwide economic and business conditions and conditions in the industries in which the Company operates; (v) our ability to execute a turnaround plan in our Graphic Arts business to safeguard revenues and reduce costs; (vi) fluctuations in the cost of raw materials, utilities, and other inputs; (vii) currency fluctuations and hedging risks; (viii) the Company's ability to protect its intellectual property; (ix) the significant amount of indebtedness the Company has incurred and may incur and the obligations to service such indebtedness and to comply with the covenants contained therein; and (x) risks related to the impact of the global COVID-19 pandemic, such as the scope and duration of the outbreak, government actions, and restrictive measures implemented in response thereto, supply chain disruptions and other impacts to the business, and the Company's ability to execute business continuity plans, as a result of the COVID-19 pandemic. The Company cautions that the foregoing list of important factors is not exhaustive. These factors are more fully discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the U.S. Securities and Exchange Commission on March 1, 2023. When relying on forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and events. Forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update or revise any such statement, whether because of new information, future events, or otherwise.

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We are Luxfer

We help to create a safe, clean and energy efficient world

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LUXFER OVERVIEW (NYSE: LXFR)

Company Description

Luxfer is a global industrial company innovating niche applications in materials engineering. Luxfer's high- performance materials, components and high-pressure gas containment devices are used in defense and emergency response, clean energy, healthcare, transportation and general industrial applications.

Company Snapshot
Equity Market Capitalization1	~$230M
Net Debt/Adj. EBITDA2	1.5x
ROIC on Adj. Earnings2	13.3%

Full Year 2022 Sales Breakdown by End Market

Defense,

First Transportation

Response & 31% Healthcare

32%

General

Industrial

37%

Income Statement	Full Year 2022 2017 - 2022 Change
Revenue3	$423M	4.0% CAGR
2 3

by Geography

Asia Pacific

& Other

22%

Adj. EBITDA	$63M	2.0% CAGR
Adj. Diluted EPS2 3	$1.36	5.7% CAGR
Balance Sheet	Q3 2023	Year End 2017
Net Debt	$78M	$101M

United States

57% Europe

21%

1 As of Oct 31, 2023 2 Non-GAAP numbers. Reconciliation in Appendix 3 Excludes the impact of Discontinued Operations

Global Industrial Company Innovating Niche Applications in Materials Engineering

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MATERIALS TECHNOLOGY LEADERSHIP

	High	Innovation leader in the use
	of magnesium alloys for critical
	Performance
	applications in aerospace, defense,
	Magnesium
	and other industries as well as in
	Alloys
Elektron	flameless heating applications
Segment	Specialty	Expertise in high-performance
	specialty zirconium-based
	Zirconium	solutions for a broad range of
	Catalysts	applications, including
		pharmaceuticals and electronics

	High Pressure	Trusted manufacturer of high-
Gas Cylinders	pressure composite and aluminum
Segment	Composite	cylinders with high-performance,
Cylinders	lightweight, and durable designs
		employed in a variety of specialized
		applications

MAGNESIUM ALLOYS

ZIRCONIUM CATALYSTS

CARBON FIBER-WRAPPED COMPOSITE CYLINDERS

Our Technology Expertise Drives Our Success	5

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ALIGNED WITH SECULAR GROWTH TRENDS

Clean

Energy

Light Weighting

Safety,

Health &

Technology

Composite gas cylinders and systems used for Alternative Fuel applications, including Hydrogen and Compressed Natural Gas

Zirconium-based emissions control and industrial catalysis materials

Lightweight carbon fiber cylinders for breathing equipment used by first responders

Magnesium alloys for aerospace and automotive components

Zirconium in consumer technologies

Specialty magnesium and zirconium for

pharmaceutical and medical applications

Significant Tailwinds for Growth	6

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QUARTERLY FINANCIAL HIGHLIGHTS & KEY MESSAGES

$M except per share	Q 3 2 0 2 3	Q 3 2 0 2 2	C H A N G E
Sales	$97.4	$100.2	(2.8%)
Adj. EBITDA	$6.0	$16.1	(62.7%)
Adj. EBITDA Margin	6.2%	16.1%	(990 bps)
Adj. Diluted EPS	$0.04	$0.35	(88.6%)
Operating Cash Flow	$11.5	$3.6	+219%
Free Cash Flow	$8.9	$1.3	+585%
Net Debt	$78.7	$75.6	+4.1%
Net-debt-to-EBITDA	1.7x	1.2x	+0.5x

Q 3 F I N A N C I A L R E S U LT S

• Sales decreased as growth in Gas Cylinders more than offset by Elektron decline
• By end market, General Industrial declined, Defense, First Response and Healthcare grew, as did Transportation
• Competitive pressures and rising costs compressed margins, especially in Graphic Arts
• Drove sequential improvement in operating and free cash flow and reduced net debt

A C T I O N S T O I M P R O V E F I N A N C I A L P E R F O R M A N C E

• Reducing costs to drive margin improvement
• Continued progress in cost pass through in Cylinders
• Focus on delivering cash flow

C O M P R E H E N S I V E S T R AT E G I C R E V I E W

• Accelerated and expanded strategic review to unlock value
• Expect update on or before FY 2023 earnings call in February

Persistent Challenges Resulted in Performance Below Expectations	7

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Balanced Approach to Capital Deployment

R E I N V EST ME NT

IN ORGANIC

GROWTH

RETURN OF

CAPITAL TO

SHAREHOLDERS

• Invested $2.5M in Q3, including hydrogen 'bulk gas transport system' facility in Nottingham, for a YTD total capex of $7.5M.
• Investing thoughtfully in secular growth opportunities tied to niche materials engineering focus
• Identifying opportunities for new product innovation and operational efficiency
• Paid $3.5M in dividends during Q3
• Repurchased $0.6M in shares during Q3
• Paid dividend since listing on the NYSE in 2012. More than $140M returned to shareholders via dividend over that time

Strong Balance Sheet and Cash Flow Generation Supports Value Creation	8

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ENVIRONMENTAL, SOCIAL, AND GOVERNANCE ROADMAP

ENVIRONMENTAL1

1	• Committed to 20% reduction in CO2 emissions, 10% reduction in freshwater
	use, and 20% less waste to landfill by 2025

• Conducting Carbon Life Cycle Analyses to improve product sustainability
• Greener operations with more recycling; increasing use of renewable energy

SOCIAL1

• Strong occupational health & safety record

1 • Expanded Diversity, Equity, and Inclusion (DEI) recruitment practices and training

• Supporting disaster relief efforts and local charitable programs
• Development program to cultivate next generation of firm's leaders

GOVERNANCE1

1	• Robust corporate governance practices and Board-level oversight

• Implementing DFARS/NIST 800-171 IT Security Standard
• Rigorous compliance training program for employees

1 ISS QualityScores as of May 1, 2023

Behaving as a Strong Steward for All our Stakeholders

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Actions to Improve Performance

LUXFER BUSINESS SYSTEM

REDUCING COSTS AND

DRIVING CASH FLOW

 Reducing headcount, for example Graphic Arts and Magtech down by over 20%, as well in Cylinders

 Identified $750K productivity savings in Graphic Arts over 2023 & 2024

 Simplifying Alternative Fuel footprint to deliver $1.1M annual savings and increase output

 Consolidating Elektron Powders plants from 3 to 2 to deliver $900K annual savings; selling closed site in 2024

 Proactively working with customers in Gas Cylinders to address high carbon fiber costs

 Managing working capital and reducing inventories to improve cash flow; working through high-cost magnesium, which will begin to cycle in 2024

Making Structural Moves To Achieve Sustainable Benefits Over the Long-term	10

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