Rakon (RAK) Assessment of COVID-19 Risk

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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5 March 2020

Rakon (RAK) Assessment of COVID-19 Risk

Rakon Limited (‘Rakon’) updates shareholders in light of COVID-19 (Coronavirus). Rakon is
monitoring its supply chain and confirms both its New Zealand and India operations have
experienced some reduced or delayed deliveries of manufacturing materials from suppliers based in
China. Rakon is also monitoring its customers’ behaviour, including ordering, consumption of
inventory and delivery logistics.

At this stage we do not have certainty of suppliers’ and buyers’ situations to determine the full
impact on Rakon.

The previously announced guidance of Underlying EBITDA
1
of between NZ$9 million and $11 million
for the 12 months to 31 March 2020 (excluding the impact of IFRS
2
16 Leases) remains and the
company will update the market should the outlook materially change.


-ends-

Contact:
Anand Rambhai
Chief Financial Officer
+64 9 571 9225

www.rakon.com

1
Disclosure of Non-GAAP Financial Information. Rakon uses ‘Underlying EBITDA’ as a measure of non-GAAP financial information and it is defined as:
‘Earnings before interest, tax, depreciation, amortisation, impairment, employee share schemes, non-controlling interests, adjustments for associates and joint
venture’s share of interest, tax & depreciation, loss on disposal of assets and other cash and non-cash items.’ Underlying EBITDA is a non-GAAP measure
that has not been presented in accordance with GAAP. The Directors present Underlying EBITDA as a useful non-GAAP measure to investors, in order to
understand the underlying operating performance of the Group and each operating segment, before the adjustment of specific cash and non-cash items and
before cash impacts relating to the capital structure and tax position. Underlying EBITDA is considered by the Directors to be the closest measure of how each
operating segment within the Group is performing. Management uses the non-GAAP measure of Underlying EBITDA internally, to assess the underlying
operating performance of the Group and each operating segment. A detailed reconciliation of Underlying EBITDA to net profit after tax is contained at note B1
c) (Segment information) of the unaudited financial statements for the six months ended 30 September 2019.
2
IFRS International Financial Reporting Standard



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. Its three core markets are Telecommunications,
Global Positioning and Space and Defence. 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 three manufacturing plants, and has six research and development centres. Customer support
personnel are located in fifteen 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, NZX, ticker code RAK.