2018 Annual Shareholders Meeting – Presentation

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©2015 Rakon Limited
Enabling the connected future
Rakon Limited
2018 Annual Shareholders’ Meeting
©2018 Rakon Limited ASM 7 August 2018

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Agenda
Brent Robinson
Chief Executive
Bryan Mogridge
Chair
Welcome & Introduction
Meeting Order & Process
Chair’s Address
Chief Executive’s Review
Shareholder Questions
2018 Annual Report
Ordinary Business and Resolutions
Resolutions
Election of Directors
Auditor’s Remuneration
General Business
Meeting Close

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A. Chair’s Address
Bryan Mogridge

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B. Chief Executive’s Review
Brent Robinson

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FY2018, Key Events & Achievements
Centum Rakon India acquisition completed
Buyout of JV partner Centum Electronics completed on
2 May; Rakon has 100% ownership
Strategic decision in line with our manufacturing
strategy to have a low-cost operating platform
Key support agreement reached; services for up to 18
months provides continuity
Transfer of technology license to Siward mostly
complete
Partnership well established and ready to be leveraged
for the benefit of both parties
Argenteuil France site sold March 2018
New facility in Gennevilliersopened in February
Chief Executive’s Review

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FY2018, Financial Snapshot
Strong profit posted from improvement
in core business and other non-recurring
gains
Sale of property in France
Gain from partial sale of Thinxtra shares and
net dilution gain
7% increase in total revenue with growth
from space & defence and global
positioning markets
Gross profit up 29% due to revenue growth
and mix of business
Strong positive movement in cash
position
Net cash of NZ$7.4 million vs. net debt of
NZ$4.5 million in FY2017
Chief Executive’s Review
NZ$10.0m
▲174%
Underlying
EBITDA
Net Profit
Revenue
Operating
Expenses
NZ$101m
▲7.0%
NZ$12.1m
▲200%
NZ$41.6m
▼1%

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Chief Executive’s Review
Business & Strategic
Focus
An extensive review
of Rakon’s strategic
focus was
undertaken in
advance of FY2018,
with a refreshed
strategic plan
implemented and
adopted across the
global business

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FY2019, Opportunities
Telecommunications: 5G
Rakon developing a compelling product offering
oStarting to see design wins for Remote Radio Heads
(RRH) and base stations
Industry predictions are for double digit compounding growth
over the next 5 years (hardware value)
Space & Defence
Growth continues in defence
oStrong demand from US
•Ultra stable TCXOs
•New design wins with high value radar products
Growth in deep space radio applications
Global Positioning
Industrial
China’s BeiDou Navigation Satellite System (BDS)
Chief Executive’s Review

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FY2019 and Beyond; Key Priorities
Centum Rakon India integration and
execution
Continuing to build our strategic alliance
with Siward
IoT translating into orders
Building on global management capability
Opportunities with 5G
Increasing market share
Chief Executive’s Review

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Governance
Chair Bryan Mogridge retiring
Bruce Irvine to be the new Chair
Search for new Director underway
Chief Executive’s Review

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TheFuture
On the visible horizon, all the markets we serve
point to increasing demand for Rakon products
Whatever the application be, within every node,
within every network, a stable and reliable timing
and frequency reference is required for the
successful transfer of data
Rakon products provide this timing, enabling the
connectivity for today’s applications as well as the
technological possibilities of the future
Brent Robinson
Chief Executive Officer / Managing Director
Chief Executive’s Review

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C. Shareholder Questions and 2018 Annual Report

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D. Ordinary Business and Resolutions

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D.1. Resolution on Re-election of Director
That Bruce Robertson Irvine, who retires by
rotation and is eligible for re-election, be
elected as a director of the Company
Business of Meeting − Resolutions

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D.2. Resolution on Auditor’s Remuneration
To record the reappointment of
PricewaterhouseCoopers as the Company’s
Auditor and to authorise the Directors to fix
the Auditor’s remuneration
Business of Meeting − Resolutions

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Business of the Annual Shareholders’ Meeting
General Business

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Meeting Closed

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