Rakon confirms buyout of Centum Rakon India

Rakon Limited
T +64 9 573 5554, F +64 9 573 5559
8 Sylvia Park Road, Mt Wellington, Auckland 1060, New Zealand
Private Bag 99943, Newmarket, Auckland 1149, New Zealand
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30 April 2018

Rakon confirms buyout of Centum Rakon India

Rakon Limited (NZX: RAK) today confirmed it will take full control of the Centum Rakon India joint
venture operations following the signing of an agreement for the buyout of its 51% partner Centum
Electronics Limited. Centum Rakon India manufactures high-performance frequency control products
primarily for the telecommunications market, most of which are sold through Rakon’s French
subsidiary to telecom network and equipment manufacturers.

Rakon Chief Executive Officer and Managing Director Brent Robinson said bringing Centum Rakon
India under Rakon’s full control is an exciting strategic decision.

“It now gives us flexibility to invest further into the capability of its manufacturing plant. It will allow
us to leverage the full potential of what is a high quality low-cost operating platform suitable for
growth and provide the unconstrained ability to align the business with our international operations.
Additionally, it gives us direct access to the growing market in India.”

This investment will be value accretive for Rakon with a base case payback during year three.

“Over time we expect further benefits to arise as we leverage on the opportunities that this platform
makes available to our R&D bases in the UK, France and New Zealand”.

Mr Robinson said it will be business as usual for Centum Rakon India’s employees, customers and
suppliers.

As announced in February 2018, consideration for the 51% shareholding that Rakon is buying is US$5.5
million, which will be funded through existing resources. The price includes a final payment of
US$1.375 million which will be made after a warranty period of 18 months.

Settlement of the initial payment and transition of control of the Centum Rakon India business is
anticipated on 2 May 2018, when the transaction is expected to close.

Brent Robinson
Chief Executive Officer

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Contact:
Simon Bosley (Chief Financial Officer)
+64 9 571 9206
Media Enquiries:
Louise Howe (Media Liaison)
+64 21 206 0985
www.rakon.com

About Rakon
Rakon is a global high technology company and a world leader in its field. The company designs and
manufactures advanced frequency control and timing solutions for telecommunications, global
positioning and space and defence applications. Rakon products are found at the forefront of
communications where speed and reliability are paramount. The company’s products create
extremely accurate electric signals which are used to generate radio waves and synchronise time in
the most demanding communication applications. Rakon has five manufacturing plants including
two joint venture plants and has five research and development centres. Customer support centres
are located in ten offices worldwide.
Rakon is proud of its New Zealand heritage; it was founded in Auckland in 1967. It is a public
company listed on the New Zealand stock exchange, NZSX, ticker code RAK.
www.rakon.com

About Centum
Centum was founded in 1994 in Bangalore, India. Since then, Centum has rapidly grown into a
diversified electronics company with operations in North America, EMEA and Asia. The company
offers a broad range of products and services across different industry segments. It has continuously
invested in strengthening its design & product development capabilities while developing deep
domain knowledge in the segments it operates in. Centum has also established truly world-class
manufacturing facilities with cutting edge infrastructure as well as a global supply chain capable of
delivering products with high quality and reliability.
www.centumindia.com

About Centum Rakon India
Centum Rakon India, has been a joint-venture between Centum Electronics Limited (India) and Rakon
Limited (New Zealand) since 2008. From April 2018 Rakon will take full control. The business is
engaged in the design and manufacturing of high-performance frequency control products for the
telecommunications, industrial, defence, aeronautics and space markets. The product range includes
OCXO, TCXO, VCXO, clock oscillators and filters.