FY25 Performance and Focus; Director Retirement

Rakon Limited
T +64 9 573 5554
8 Sylvia Park Road, Mt Wellington, Auckland 1060, New Zealand
Private Bag 99943, Newmarket, Auckland 1149, New Zealand




28 April 2025

Shareholder Update
FY25 Performance and Focus; Director Retirement
28 April 2025 – Rakon Limited (NZX:RAK), a world-leading manufacturer of frequency control and
timing solutions, today updates shareholders on FY2025 performance, the current business
environment and the Chair’s retirement.
The financial year ending 31 March 2025, (FY25) proved one of our most demanding years, marked by
sharp geopolitical shifts and commercial headwinds. Despite this, subject to completion of the audit
of Rakon’s FY25 results, Rakon expects to deliver Underlying EBITDA
1
for FY25 near the midpoint of
our $5 – 15 million guidance. This result is better than our last guidance update given in November
2024. There has been a marked improvement in 2HY over 1HY across most segments. Tight cost
control and efficiency gains preserved operating profitability and while uncertainty continues we are
positioned well to respond when market conditions normalise.
Strategic Takeover Interest
Over the past 18 months, Rakon received confidential and non-binding interest relating to a potential
takeover of the company from a number of credible international industry players. The first indication
of interest (announced 11 December 2023) was publicly disclosed by Rakon after the company became
aware of a potential leak of the confidential information; it valued Rakon at NZ$1.70 per share—about
174 per cent above the pre-announcement price—equating to an aggregate equity value of NZ$391
million. The other indications of interest received by Rakon remain confidential but were for
substantial premium multiples to the prevailing share price. All takeover interest received by Rakon
was carefully evaluated by an independent committee of Directors, with assistance from specialist
external advisers.
Despite extensive work by Rakon to determine whether the takeover interests could be developed
into a proposal that was in the interests of all shareholders, none progressed to a binding transaction.
As disclosed on 19 June 2024, negotiations ended with the first potential bidder when the parties
could not resolve complexities identified in due diligence — principally regulatory and geopolitical
factors which are a particular focus of all prospective US acquirers. Although the engagement with
potential bidders did not result in a transaction, the Board considers that the credibility of these
parties and their interest in the company at substantial premiums as an endorsement of Rakon’s
world-leading technology, global market position and value.
Portfolio Review, Geopolitical Risk & Exit from a Chinese Customer
As part of our ongoing commitment to prudent risk management, Rakon has completed a
comprehensive review of its global customer relationships and supply chains in light of the current
geopolitical environment. Following this review and consultation with external advisors, we have
made the decision to discontinue commercial relationships with a Chinese telecommunications-
infrastructure customer that accounted for approximately 5% of group revenue in FY25. This
strategic decision strengthens our compliance profile and reduces our risk exposure in shifting
regulatory environments. It also allows us to better align our business resources with markets that

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offer more sustainable long-term growth opportunities aligned with our corporate objectives. In
conjunction with this decision, we have enhanced our internal compliance frameworks and engaged
proactively with relevant regulatory authorities to ensure our operations remain fully compliant with
evolving international trade requirements. The Board believes these measured actions support the
company's long-term interests and sustainable value creation for our shareholders.

Trade Policy & Tariff Exposure
While we continue to monitor the introduction of tariffs on global markets, based on current proposals
Rakon does not expect the US “tech-sector” tariffs to have a material impact on FY25 or FY26; analysis
puts the potential cost at only 1-2 per cent of revenue. Our diversified global manufacturing footprint
provides further protection, and we will adjust logistics if needed and explore opportunities for
exemptions.
FY26 Outlook — A Turning Point
Momentum into FY26 is positive, fuelled by the growth in 2H FY25 and a solid forward order pipeline.
Guidance will be provided at the ASM but we expect a year-on-year improvement underpinned by:
Space & Defence — strong order book carry-over and new contracts secured.
Telecommunications — Gradual 5G capex recovery after inventory correction.
AI Hardware & Datacentre — Revenue from new and world leading AI Hardware products begins in
1H FY26 with strong forward pipeline from leading AI customers.
Organisational changes and accelerated manufacturing transfers are expected to lift gross margin and
optimise global overheads, supporting profitability as volumes grow.
Risks to this FY26 outlook include geopolitical uncertainty, downside risks for global economic growth
and new product manufacturing delivery to plan.
Strengthened Governance & Board Renewal
The Board refresh has progressed well with three new independent Directors welcomed to the Board
in FY25. Jon Raby, Lisbeth Jacobs and Mark Bregman bring fresh technology, financial and global-
market expertise to the Board.
The Chair Lorraine Witten has led the Board since April 2022, has been a Director since March 2017
and has chaired the Audit and Risk Committee during part of her tenure. Ms Witten has advised that
she will retire at the 2025 ASM. The Board will conduct a process to elect a replacement Chair.
Under Lorraine’s Board leadership, Rakon navigated accelerated growth, shifting market dynamics
and volatility with strength and composure. She has upheld strong governance practices and has
consistently acted to promote the interests of all shareholders. We thank Lorraine for her exceptional
contribution and commitment to Rakon’s success.

The refreshed Board, together with an energised executive team, provide robust oversight of FY26
delivery and value creation.

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Conclusion
Rakon enters FY26 with renewed momentum, a leaner structure and growth underway in multiple
sectors. We have preserved earnings in line with guidance in a tough year, navigated a difficult macro
environment, and have secured major new opportunities in Space, Defence, Telecom and AI. The
Board considers that the takeover interest received, at substantial premiums, underscore the
company’s intrinsic value and growth potential, and it intends to continue to seek to maximise value
for shareholders through disciplined strategy execution and innovation.
Rakon will release its audited results for FY25 on 28 May 2025. We will provide a further
announcement regarding the results announcement and how to join the Business Update webcast.
We thank shareholders for their support and look forward to reporting further progress in the year
ahead.
1
Non-GAAP disclosures: Refer to note 4 of the FY2024 consolidated financial statements for an explanation of how ‘Non-
GAAP Financial Information’ is used, including a definition of Underlying EBITDA’ and reconciliation to net profit after tax
(NPAT).

Contacts:
Investor and Media
Nick Laurent
investors@rakon.com
+64 21 240 7541

About Rakon
Rakon’s products help people to connect, explore and innovate. They are the ‘heartbeat’ for
electronic systems, delivering fast, precise and stable timing in everything from mobile networks and
autonomous vehicles to satellite constellations and AI data centres. Whether connecting to a 5G
tower or to a rover exploring Mars, our technology is relied on to deliver the highest performance in
even the most extreme conditions. Thanks to our constant drive to innovate, we continue to
empower our customers to create the next-generation of life-transforming technologies. For more
information, visit www.rakon.com.