Rakon New Year’s Message from CEO

Short updat e on Rakon's growt h s trat eg y f oc us for 2023



Dear Investor

I hope you had an enjoyable holiday break and are having a good start to 2023.

As the year gets underway, I want to take this opportunity to thank you for your
support of Rakon and provide you with a short update on key items we’ll be focusing
on in the months ahead.

Our focus in 2023
We are a world-leading Kiwi company with cutting-edge technology and products.
Within our core markets there is substantial growth potential for Rakon, and it is my
job to turn that potential into reality. The months ahead are an exciting time for us as
we reach key milestones in our growth plan. We have also accelerated our acquisition
strategy with the aim of delivering access to new markets and technologies. More
detail on these developments below. In terms of our financial strategy, we are
committed to creating long-term value for our shareholders. In line with this, we will

prioritise the use of cash surpluses towards capital investment in order to achieve our
strategic growth objectives.

Acquisition plans accelerating  
We have previously communicated our intention to make strategic acquisitions that
support our growth strategy. For example, we can see clear synergies in acquiring a
US-based business that provides access to top-tier US customers through local
manufacturing, and strengthens existing customer relationships. An acquisition of this
nature could also put Rakon in a good position to benefit from the Biden
Administration's initiatives to grow US-based semiconductor supply chains. We have
retained Angus Cooper as our M&A advisor, who has over 25 years of public
company experience and successfully led 30+ acquisitions, with a track record of
delivering value to shareholders. Our M&A efforts focus on identifying companies that
would complement our existing operations, provide access to new markets and
technologies, and ultimately drive long-term value for our shareholders. We will
provide a further update on our progress in this area at the appropriate time.

Game-changing new facility in India nearly complete
Construction at Rakon India’s new world-class manufacturing facility in Bengaluru
(Bangalore) is close to completion (see image below). We have finished the clean
room facilities and have begun the process of transferring manufacturing operations
from the existing site to the new facility. This new facility enhances our global position
as a high-tech manufacturing leader and will provide us with a long-term competitive
advantage, as well as delivering significant cost reductions for our business. Having a
manufacturing presence in India continues to open doors for us, providing strong
alignment with the Indian Government’s ‘Make in India’ initiative, and our pipeline in

that market is expanding rapidly. The facility is a game-changer for Rakon and sets us
up for even greater success in the years to come.


Other key growth projects tracking well 
We are on track to achieve other milestones identified in our three-year roadmap.
These key growth projects include:  
 the XMEMS® nanotechnology production process – with five products
currently being manufactured using this process and generating strong
customer interest; 

 a suite of NewSpace products for Low Earth Orbit (LEO) satellites, establishing
Rakon in that ecosystem and securing our involvement aboard a planned in-
orbit demonstration mission in 2023; and 
 a new semiconductor chip in early 2023. In addition, we will shortly move our
UK semiconductor chip development team to new offices in Cambridge, which
will allow us to tap into the vibrant talent pool in the heart of the semiconductor
design ecosystem in the UK.



Rakon’s new investor relations manager
Lastly, I am pleased to announce that Nick Laurent
joined Rakon in late 2022 as our new Investor and
Corporate Communications Manager. Nick joins us
from a senior adviser role at the Commerce
Commission and has a background in investor
relations and stakeholder engagement gained across
several in-house and agency communications roles. A
key part of his role at Rakon is to engage with our
shareholders, so please contact him with any questions
or feedback using the details below: 
Email: nick.laurent@rakon.com
Call/Text: +64 21 240 7541  


Kind regards 
Sinan Altug 
Chief Executive Officer