Financial Data and Key Metrics Changes - Total sales for Q2 2020 declined by 23.2% to $89.5 million, primarily due to COVID-related impacts in transportation and industrial segments [26][11] - EBITDA for Q2 2020 decreased by 49% to $10.4 million, with adjusted diluted EPS down 61% to $0.17 [11][27] - Net debt was reduced by $9.1 million to $82.4 million, resulting in a net debt to EBITDA ratio of 1.5 times, indicating a strong balance sheet [11][29] Business Line Data and Key Metrics Changes - Sales in the defense, first response, and healthcare segment declined by 5.9%, with higher sales of disaster relief products offset by reductions in magnesium alloys [16] - Transportation segment sales fell by 29.1%, driven by decreased demand from luxury passenger auto manufacturers and aerospace applications [17] - Industrial segment sales decreased by 27.1%, reflecting broader impacts on industrial production due to COVID-19 [18] Market Data and Key Metrics Changes - Sales in April and May were significantly lower due to factory shutdowns, but some recovery was observed in June as restrictions eased [15] - The company expects continued declines in transportation and industrial segments for the remainder of the year, projecting a 20% to 25% decline overall [31] Company Strategy and Development Direction - The company is focusing on maintaining an appropriate cost structure while making targeted strategic investments to capture growth in certain markets [9] - Luxfer's multi-year transformation plan aims to deliver greater shareholder value through simplification, productivity, growth, and portfolio optimization [22][23] - The company is investing in alternative fuel products and enhancing capabilities in chemical response kits, anticipating growth in these areas [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a gradual recovery, noting that July performance was similar to June, with no massive reshaping expected [42] - The company remains focused on cash preservation and generation, with expectations for free cash flow to convert at approximately 100% for the year [32] - Management highlighted the importance of monitoring industrial recovery as a key driver for earnings recovery moving forward [56] Other Important Information - The company has implemented rigorous expense management and has taken proactive actions to mitigate COVID-19 impacts [9][8] - There is an ongoing review of the portfolio for divestiture opportunities and potential acquisition targets, although timing remains uncertain due to market conditions [35] Q&A Session Summary Question: Is the trend of improvement seen in June continuing into July? - Management indicated that July is showing similar performance to June, with no massive reshaping expected [42] Question: Can you provide details on the workforce reduction? - The 10% reduction consists of permanent layoffs, with an additional 15% to 25% of the workforce on furlough [43] Question: What is the outlook for specialty chemical kits revenue? - Orders are on the books, but fulfillment will be more back-half loaded than initially expected [46] Question: How is Luxfer positioned in the hydrogen market? - The company is well-positioned to serve the hydrogen market, focusing on larger vehicles like buses and trucks [51] Question: What are the key items for investors to focus on for earnings recovery? - Industrial recovery and monitoring the ISM PMI index are critical for understanding earnings leverage moving forward [56] Question: How does the company plan to manage inventory and working capital? - The company expects inventory to be a significant source of cash in the second half of the year, with improvements anticipated [63] Question: What are the areas of stability or weakness in the market? - Military sales are expected to remain stable, while automotive and commercial aerospace may experience further weakness [68]

Financial Performance - Sales decreased by 21.1% due to the impact of COVID-19[7], excluding the divested Czech Recycling Business[7, 8, 19, 20, 28, 31, 60, 62, 64, 65] - Adjusted EBITDA decreased by 49% to $10.4 million, with a margin decrease of 570 basis points to 11.6%[7] - Adjusted diluted EPS decreased by 61% to $0.17 due to COVID-19 impact[7] - Net cost savings of $0.7 million were achieved, staying on track with transformation plan savings[7, 28] Cash Flow and Capital Allocation - Free Cash Flow was $12.1 million, including $1.6 million in restructuring spend[7] - Net Debt was reduced by $9.1 million to $82.4 million, resulting in a Net Debt to EBITDA ratio of 1.5x[7] - Quarterly dividend payout was $3.4 million, or $0.125 per share[7] - ROIC decreased by 380 basis points from year-end to 12.7%[7] Segment Results (Q2 2020) - Elektron segment sales decreased by 29.3% to $39.1 million, and EBITDA decreased by 59.5% to $5.3 million[31, 55] - Gas Cylinders segment sales decreased by 13.3% to $50.4 million, and EBITDA decreased by 28.2% to $5.1 million[31, 58] Transformation Plan - The company is on track to deliver $24 million in net cost reductions by the end of next year[24] - $16 million of net cost savings have been achieved through cost reduction and waste elimination[24, 25, 26]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Luxfer Holdings PLC operates as a global industrial materials manufacturer through its Elektron and Gas Cylinders segments 2019 Financial Highlights | Metric | Value (in millions) | | :--- | :--- | | Net Sales | $443.5 | | Net Income | $3.1 | - The company operates through two primary business segments, **Elektron and Gas Cylinders**, which contributed approximately **50% each** to the consolidated net sales in 2019[15](index=15&type=chunk)[16](index=16&type=chunk)[19](index=19&type=chunk]) 2019 Sales by End-Market | End-Market | Percentage of 2019 Sales | | :--- | :--- | | General Industrial | 36% | | Transportation | 32% | | Defense and Emergency Response | 27% | | Healthcare | 5% | - Key raw materials include magnesium (sourced **~50% from China**), zircon sand, aluminum (sourced **~60% from Rio Tinto Alcan**), and carbon fiber (sourced from Toray and Mitsubishi)[21](index=21&type=chunk)[22](index=22&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk]) - Research and development expenditures amounted to **$5.7 million in 2019**, focusing on new products like soluble magnesium alloys (SoluMag®) and ultra-lightweight composite cylinders (G-StorTM)[41](index=41&type=chunk)[44](index=44&type=chunk]) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces operational, financial, and compliance risks, including market cyclicality, raw material costs, and a material weakness in internal controls - The company has significant exposure to cyclical end-markets, including automotive, aerospace, defense, and healthcare[51](index=51&type=chunk)[52](index=52&type=chunk]) - Global operations expose Luxfer to political and economic risks, such as U.S. tariffs and Brexit, which could create trade restrictions and increase regulatory complexity[54](index=54&type=chunk)[56](index=56&type=chunk]) - The company is exposed to fluctuations in raw material costs, with the LME three-month cost of aluminum fluctuating between approximately **$1,700 and $2,000 per metric ton** in 2019[71](index=71&type=chunk]) - The company's defined benefit pension plans have significant funding deficits, with the largest U.K. plan showing an accounting deficit of **$30.5 million** as of December 31, 2019[84](index=84&type=chunk)[85](index=85&type=chunk]) - A **material weakness in internal control over financial reporting** was identified as of December 31, 2019, which could adversely affect financial reporting[139](index=139&type=chunk)[140](index=140&type=chunk]) - The company is exposed to cybersecurity threats and data protection laws like GDPR, where non-compliance can lead to fines of up to **€20 million or 4% of annual turnover**[117](index=117&type=chunk)[119](index=119&type=chunk]) [Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[143](index=143&type=chunk]) [Properties](index=26&type=section&id=Item%202.%20Properties) The company owns and leases numerous manufacturing and distribution facilities globally across its two operating segments Key Manufacturing Properties | Division | Location | Principal Products | Ownership | | :--- | :--- | :--- | :--- | | **Elektron** | Manchester, England | Magnesium alloys / zirconium chemicals | Split Lease / Own | | | Madison, IL | Magnesium sheet | Lease | | | Tamaqua, PA | Magnesium powders | Own | | | Flemington, NJ | Zirconium chemicals | Own | | **Gas Cylinders** | Nottingham, England | Aluminum cylinders | Lease | | | Calgary, Canada | Composite cylinders | Lease | | | Riverside, CA | Composite cylinders | Lease / Own | | | Graham, NC | Aluminum cylinders | Own | [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company states that there are no material pending legal proceedings to which it or any of its subsidiaries is a party - There are no material pending legal proceedings against the Company or its subsidiaries[148](index=148&type=chunk]) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[149](index=149&type=chunk]) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE, it paid consistent quarterly dividends in 2019, and made no share repurchases Dividend Payments | Year | Total Dividends Paid (in millions) | Quarterly Dividend per Share | | :--- | :--- | :--- | | 2019 | $13.6 | $0.125 | | 2018 | $13.4 | $0.125 | | 2017 | $13.3 | $0.125 | - The company's common stock is listed on the NYSE under the symbol **"LXFR"**[152](index=152&type=chunk]) - **No repurchases** of the company's equity securities were made during the fourth quarter or the entire fiscal year of 2019[166](index=166&type=chunk]) [Selected Financial Data](index=29&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of key historical consolidated financial data from 2015 to 2019 Selected Financial Data (2015-2019) | In millions (except per-share data) | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $443.5 | $487.9 | $441.3 | $414.8 | $460.3 | | **Operating income** | $12.4 | $30.0 | $21.9 | $32.9 | $15.0 | | **Net income / (loss)** | $3.1 | $25.0 | $16.6 | $17.8 | $(0.4) | | **Diluted EPS** | $0.11 | $0.90 | $0.62 | $0.67 | $(0.01) | | **Total assets** | $390.3 | $408.8 | $415.8 | $399.8 | $449.9 | | **Total shareholders' equity** | $174.4 | $184.3 | $174.5 | $150.4 | $183.8 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales and operating income declined in 2019 due to lower product sales and significant restructuring charges - Full-year 2019 results were below expectations, with **sales falling 9% year-over-year**, led by a **62% decline** in sales of the Solumag® product line[177](index=177&type=chunk]) Consolidated Results of Operations (2017-2019) | In millions | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net sales | $443.5 | $487.9 | $441.3 | | Gross profit | $108.0 | $122.1 | $108.6 | | Operating income | $12.4 | $30.0 | $21.9 | | Net income | $3.1 | $25.0 | $16.6 | - Restructuring charges significantly increased to **$25.9 million in 2019**, up from $13.4 million in 2018, primarily due to costs related to a plant closure in France[184](index=184&type=chunk)[186](index=186&type=chunk]) - The Gas Cylinders segment sales **decreased 6.1%** in 2019, while the Elektron segment sales **decreased 12.0%**[197](index=197&type=chunk)[200](index=200&type=chunk]) - The company's primary liquidity sources are cash from operations and credit facilities, with total long-term debt at **$91.4 million** as of Dec 31, 2019[204](index=204&type=chunk)[303](index=303&type=chunk]) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Luxfer is exposed to market risks from foreign currency exchange rates, commodity prices, and interest rates - The company is exposed to foreign currency risk and uses short-duration currency contracts to hedge these exposures[276](index=276&type=chunk)[277](index=277&type=chunk]) - Luxfer faces commodity price risk from aluminum and uses LME-related derivative contracts to mitigate price volatility[280](index=280&type=chunk]) - Risks for magnesium, zirconium, or carbon fiber are managed through fixed-price supply contracts as financial hedging markets are unavailable[281](index=281&type=chunk]) - As of December 31, 2019, the company had both fixed-rate and variable-rate debt outstanding, exposing it to interest rate risk[282](index=282&type=chunk]) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements for fiscal year 2019, which received an adverse opinion on internal controls - The independent auditor's report identified a **material weakness in internal control over financial reporting** as of December 31, 2019[289](index=289&type=chunk)[290](index=290&type=chunk]) Consolidated Income Statement Summary (2019) | In millions | 2019 | | :--- | :--- | | Net sales | $443.5 | | Gross profit | $108.0 | | Operating income | $12.4 | | Net income | $3.1 | | Diluted EPS | $0.11 | Consolidated Balance Sheet Summary (As of Dec 31, 2019) | In millions | 2019 | | :--- | :--- | | Total current assets | $176.1 | | Total assets | $390.3 | | Total current liabilities | $74.0 | | Long-term debt | $91.4 | | Total liabilities | $215.9 | | Total shareholders' equity | $174.4 | - Net cash provided by operating activities was **$5.8 million in 2019**, a significant decrease from $63.2 million in 2018, primarily due to cash spent on restructuring[208](index=208&type=chunk)[304](index=304&type=chunk]) - The adoption of the new lease accounting standard (ASC 842) resulted in the recognition of **right-of-use assets of $14.8 million** and **lease liabilities of $15.0 million**[357](index=357&type=chunk)[523](index=523&type=chunk]) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=99&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants on any matter of accounting principles or practices - None reported[539](index=539&type=chunk]) [Controls and Procedures](index=99&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective as of year-end 2019 due to a material weakness in internal control - A **material weakness** was identified in internal control over financial reporting as of December 31, 2019[544](index=544&type=chunk)[545](index=545&type=chunk]) - The weakness stemmed from the implementation of a new ERP system, leading to deficiencies in IT general controls and process-level controls[541](index=541&type=chunk)[546](index=546&type=chunk]) - A remediation plan is being implemented to enhance controls for system access and process-level reviews[550](index=550&type=chunk)[553](index=553&type=chunk]) - Despite the material weakness, management concluded that the consolidated financial statements are fairly presented in all material respects[540](index=540&type=chunk]) [Other Information](index=100&type=section&id=Item%209B.%20Other%20Information) This item is not applicable to the company - Not applicable[552](index=552&type=chunk]) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Principal Accountant Fees](index=101&type=section&id=Items%2010-14) Required information on governance, compensation, and accountant fees is incorporated by reference from the 2020 Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's **2020 Proxy Statement**[554](index=554&type=chunk)[555](index=555&type=chunk)[556](index=556&type=chunk)[557](index=557&type=chunk]) Part IV [Exhibits and Financial Statement Schedules](index=102&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed with the annual report, including debt and equity plan agreements - The financial statements listed in Item 8 are filed as part of this report[558](index=558&type=chunk]) - A list of exhibits is provided, including debt agreements, equity incentive plans, and certifications required by the Sarbanes-Oxley Act[560](index=560&type=chunk)[562](index=562&type=chunk]) [Form 10-K Summary](index=103&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None provided[561](index=561&type=chunk])

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35370 Luxfer Holdings PLC (Exact Name of Registrant as Specified in Its Charter) England and Wales 98-1024030 State or Other Jurisdiction of Incorporation or Organization I.R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35370 Luxfer Holdings PLC (Exact Name of Registrant as Specified in Its Charter) England and Wales 98-1024030 State or Other Jurisdiction of Incorporation or Organization I. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35370 Luxfer Holdings PLC (Exact Name of Registrant as Specified in Its Charter) England and Wales 98-1024030 State or Other Jurisdiction of Incorporation or Organization I.R.S. Emp ...