Rakon delivers strong core business growth

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Rakon Limited
Reporting Period 12 months to 31 March 2023
Previous Reporting Period 12 months to 31 March 2022
Currency New Zealand Dollar

Amount (000s) Percentage change
Revenue from continuing
operations
$180,334 5%
Total Revenue $180,334 5%
Net profit/(loss) from
continuing operations
$23,219 -30%
Total net profit/(loss) $23,219 -30%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.01500000
Imputed amount per Quoted
Equity Security
$0.00583333
Record Date 24 July 2023
Dividend Payment Date 8 August 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.66

$0.56
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the Commentary and the audited financial
statements released in conjunction with this announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
Maureen Shaddick
Contact person for this
announcement
Anand Rambhai
Contact phone number +64 (0) 9 571 9225
Contact email address anand.rambhai@rakon.com
Date of release through MAP

24/05/2023
Audited financial statements accompany this announcement.

---

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
Page 1 of 4 w w w . r a k o n . c o m



Market Release 24 May 2023
Rakon delivers strong core business growth and all key milestones in growth plan
Global Technology company Rakon (NZX: RAK) has today released its financial results for the twelve
months ended 31 March 2023.
All numbers are stated in New Zealand dollars (NZ$) and relate to the twelve months ended 31 March
2023 (FY23), with comparisons to the twelve months ended 31 March 2022 (FY22) unless stated
otherwise.
Highlights
 Revenue increased $8.4 million (5%) to $180.3 million reflecting core business growth
offsetting chip-shortage revenue impacts
 Revenue growth was consistently strong across all core markets - Telecommunications up
17% to $100.6 million, Space and Defence up 18% to $28.9 million and Positioning up 21% to
$33.8 million
 Underlying EBITDA
1
of $42.2 million (FY22: $54.4 million) reflecting increased investment in
growth initiatives and inflationary pressures
 Operating cash flow of $11.1 million (FY22: $30.2 million) reflects increased investments in
growth initiatives, inventory built up to provide supply chain resilience and inflationary
pressures
 Achieved all FY23 milestones in three-year growth plan including nearing completion of India
Manufacuring facility and increased presence in Space and NewSpace ecosystem
 Commences dividend payments declaring fully imputed FY23 dividend of 1.5 cents per share
and to introduce a Dividend Reinvestment Plan
Chief Executive Officer, Sinan Altug says “FY23 has been the best year ever for our core business with
continued growth in global demand for Rakon’s industry-leading products across all key markets. I’m
proud that we were able to deliver on all of the key milestones for our three year growth plan which we
outlined to shareholders last year.”
“Over the last 4 years we have delivered a 36% CAGR of Underlying EBITDA for our core business
reflecting Rakon’s strong competitive advantages. The longer-term fundamentals of our markets remain
strong and the opportunities significant. The strategic investments we are making in growth provide a
strong foundation for future expansion in both core and new markets.“ said Mr Altug
Rakon Chair Lorraine Witten says “Today marks a landmark in Rakon’s fiscal journey, with the
commencement of dividends. Following careful management of our cashflow during the year and an
improved operating risk profile, the Board have declared a fully imputed 1.5 cent per share dividend
and will introduce a dividend reinvestment plan”
Financial Result
Total revenue for the year was up 5% at $180.3 million, compared with $172.0 million for FY22. Revenue
growth was consistently strong across all core markets. Telecommunications, Rakon’s largest market,

Page 2 of 4 w w w . r a k o n . c o m

grew by 17% to $100.6 million (FY22: $86.0 million) on the back of continued 5G and 4G network
infrastructure growth globally. Increased activity in both Space and Defence segments resulted in an
18% revenue increase, to $28.9 million (FY22: $24.5 million). Positioning grew by 21% to $33.8 million
(FY22: $28.1 million) driven by increased demand for Rakon’s precision timing products in the
industrial, agricultural, automotive and emergency locator beacon segments. Additional revenue from
the one-off chip shortage contracts fell $15 million as contracts completed over the year and global
chip supply normalised.
Gross profit was slightly lower at $88.8 million, while gross margin percentage was 49% (FY22: 52%)
reflecting a shift in the product mix. As expected, operating expenses increased in FY23 by $9.5 million
(19%). This increase is attributed to strategic investments in resources and innovation, supporting
Rakon’s future growth trajectory, combined with some impact from inflationary pressures on labour,
energy costs and other overheads. The rise in operating expenses was partially offset by the favourable
foreign exchange gains of $3.0m million mainly from revaluation of our USD debtors and bank balances.
Underlying EBITDA of $42.2 million was within the guidance range of $40-44 million, representing an
EBITDA margin of 23%. Net Profit After Tax (NPAT) was $23.2 million, reflecting Underlying EBITDA as
well as a share of a loss made by an associate.
Operating cash flow for the period was $11.1 million, down on last year’s $30.2 million as the result of
increased investments in growth-related initiatives, technology innovation, and increased inventory to
provide supply chain resilience, in addition to increased overhead costs reflecting the current
inflationary environment.
Balance Sheet
Rakon’s balance sheet remains robust, with net assets increasing by 16% to $156.9 million since March
2022. The company had $16.5 million in net cash at balance date, $6.8 million lower than a year ago as
it continued to self-fund key growth-focused projects. Payments of $9.5 million were made during the
year for construction of the new manufacturing facility in India, which is now largely complete.
Borrowings reduced by $10.7 million during the year. The $10 million private debt facility held at the
beginning of the year was repaid and a new, more flexible debt facility arrangement was agreed with
ASB Bank, which remains undrawn.
Inventory levels increased over the first half, following the deliberate strategy to build safety stocks of
raw materials and finished products to mitigate supply chain risks, ensure delivery continuity for key
customers and also to support the transfer of Rakon India’s manufacturing operation to the new facility.
Since 30 September 2022 inventory has reduced 13% and it is expected the balance date inventory
level of $62.6 million (FY22: $57.3 million) will continue reducing through FY24 as supply chain volatility
reduces and manufacturing volumes build in the new facility.
Rakon will continue to manage its balance sheet to support the company’s long-term sustainability and
growth strategy, including maintaining capacity to execute on growth opportunities over time.

Page 3 of 4 w w w . r a k o n . c o m

Growth strategy
FY23 marked the launch of Rakon's three-year growth plan and every objective set for FY23 has been
successfully achieved.
The new XMEMS® nanotechnology frequency control products launched during the year has received
exceptional feedback. The UK-based semiconductor development programme has been expanded and
successfully released Niku™, Rakon’s next generation semiconductor chip. Rakon is achieving strong
industry support for its low earth orbit (LEO) satellite subsystems as well as the highest validation with
multiple Rakon products onboard a groundbreaking European Space Agency mission to study Jupiter’s
moons for signs of life. The construction of Rakon’s new manufacturing Centre in India is largely
complete, and past the peak risk, with the first products already being produced and the relevant
certifications achieved.
Rakon continues to evaluate and consider potential acquisition opportunities which align with its
strategy, and sees clear synergies in acquiring a US-based business that provides access to top-tier US
customers through local manufacturing and strengthens existing customer relationships. Rakon is
engaging with a shortlist of suitable target companies and taking the necessary time to ensure any
potential acquisition will enhance or be supported by our competitive advantage and capability, and be
value-accretive.
Dividends
The Board has rigorously assessed Rakon's future capital requirements in line with its three-year growth
plan, cash flow forecasts, and relevant external variables.
The careful management of free cash flow through the year has enabled borrowings to be repaid, a
strong balance sheet to be maintained and growth initiatives to be funded. Alongside this there has
been an improvement in the company’s operational risk profile following the resolution of raw material
shortages and the near completion of the Indian facility.
Therefore, the Board is pleased to confirm that Rakon will commence dividend distributions. The Board
is declaring a FY23 fully imputed dividend of 1.5 cents per share, with a record date of 24 July 2023 and
payment date of 8 August 2023. The payment date of this dividend has been set to allow time for the
introduction of a Dividend Reinvestment Plan.
The Board believes this level of dividend payment is sustainable through the investment and execution
of the three-year growth plan which is focussed on delivering shareholder value over time.

Outlook
The continued revenue and margin growth of the core business over the last five years highlights
Rakon’s competitive advantages and the trust customers have in its products, innovation and customer
service, regardless of where they are in the world. The longer-term growth fundamentals for Rakon’s
core markets remain strong and the opportunities significant with the ongoing evolution of 5G, cloud
and edge computing, autonomous machines and vehicles, aerospace and the entire NewSpace
ecosystem..

Page 4 of 4 w w w . r a k o n . c o m

In the short-term, Rakon expects FY24 Underlying EBITDA of between $26 million and $34 million. This
reflects the industry-wide normalisation of inventory levels among customers, which is anticipated to
have a $10 - $15 million revenue impact on FY24 principally affecting the first half of the year in the
Telecommunications and Positioning Segments. The demand in Space and Defence remains strong.
The one-off chip shortage contracts that benefited FY22 and FY23 also rolled-off during FY23. In
addition, Rakon continues to feel the impacts of labour shortages and inflationary pressures and is
focused on making appropriate operating adjustments to optimise short-term financial performance
without diminishing its future growth path.
Focused on sustained growth and shareholder value, Rakon continues to invest in growth and is on
track with its three-year growth plan that provides a strong foundation for future expansion in both
core and new markets. Rakon’s new India facility, which will be inaugurated in June, provides a vital
long-term competitive advantage with significantly enhanced manufacturing capacity and capability
and lower production costs. Rakon also continues to actively seek growth opportunities, including
acquisitions, where it sees future value creation and alignment with our growth strategy.
Ends
Authorised for release to the NZX by Rakon’s Board of Directors.
Conference call details
Sinan Altug (Chief Executive Officer) and Anand Rambhai (Chief Financial Officer) will present the
FY2023 Financial Results and Business Update at 11.00am NZST. All shareholders are invited to listen
and view the presentation broadcast. To join the live broadcast online please pre-register using this
Registration link
Contact:
Investor and media relations
Nick Laurent
nick.laurent@rakon.com
+64 21 240 7541
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. Its three core markets are Telecommunications, Positioning and Space and Defence.
Rakon’s products are found at the forefront of communications where speed and reliability are paramount. Its 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, six research and development centres, and sixteen customer support offices worldwide.
Founded in Auckland in 1967, Rakon is proud of its New Zealand heritage. It is a public company listed on the New Zealand stock
exchange, NZX, ticker code RAK.
1
Non-GAAP disclosures
Refer to note 4 of the FY2023 audited 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)

---

0
FY23 financial results and business update
24 May 2023© Rakon Limited
12 months to 31 March 2023

1
This presentation contains not only a review of operations, but also some forward looking statements
about Rakon Limited and the environment in which the company operates. Because these statements are
forward looking, Rakon Limited's actual results could differ materially.
Although management and directors may indicate and believe that the assumptions underlying the
forward looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect
and, therefore, there can be no assurance that the results contemplated in the forward looking
statements will be realised.
Media releases, management commentary and investor presentations are all available on the company's
website and contain additional information about matters which could cause Rakon Limited's
performance to differ from any forward looking statements in this presentation. Please read this
presentation in the wider context of material previously published by Rakon Limited.
All figures are presented in New Zealand dollars unless otherwise indicated. All comparisons are to the prior
corresponding period (12 months to 31 March 2022) unless otherwise noted.Refer to note 4 of the FY2023
audited consolidated financial statements for an explanation of how ‘Non-GAAP Financial Information’ is used,
including a definition of ‘Underlying EBITDA’ and reconciliation to netprofitaftertax (NPAT).
Disclaimer

2
FY23 highlights
Delivery of all milestones in 3-year growth plan and commenced dividends
$10.7mborrowings
repaid
Highest ever core
revenue +16% growth
Indiamanufacturing
facility –opens in June
Stable margins
maintainedacross
core markets
All FY23 growth
milestones achieved
in 3-year plan
Dividend declared and
DividendReinvestment
Plan

3
$37m
$39m
$11m
$15m
$23m
$54m
$42m
FY19FY20FY21FY22FY23
Underlying EBITDA
CoreTCXO chip shortageAssociate
Strongcore business growth offsets chip-shortage revenue impacts
Financial result reflects investment in future growth and inflationary pressures
3
Revenue
$180.3m
$8.4m +5%
Net profit after tax
$23.2m
$-9.9m -30%
Operating cash flow
$11.1m
$19.1m -63%
Net cash
$16.5m
Underlying EBITDA
$42.2m
$12.2m -23%
$6.8m -29%
$141m
$164m
$114m
$119m
$128m
$172m
$180m
FY19FY20FY21FY22FY23
Revenue
Core businessTCXO chip shortage
Gross Margin
$88.8m
$1.3m -1%

4
FY23 Operating performance
4
4
SinanAltug, Chief Executive Officer

5
5
Core business -Telecommuncations
Strong growth continues driven by 5G deployments
and 4G network upgrades
5
FY23
•Revenue up 17% driven by 5G network deployments and 4G
network upgrades
•Gross margin up $5.4m (14%) to $43m
•Key design wins
•new XMEMS® products being qualified into next generation
5G equipment
•strong uptake for our next-generation Mercury X OCXO
•products being supplied into emerging architecture:O-RAN,
C-RANand edge computing
FY24 and beyond
•Tier 1 customers reducing inventories after accumulating safety
stocks in the past 2 years to mitigate supply chain risk
•Order book growingand confidentit will deliver design
opportunities asitacceleratesover next5years
•Strong market growth expected, with 5G subscriptions forecast to
reach 5 billion in 2028
$54m
$65m
$77m
$86m
$101m
38%
40%
40%
44%
43%
FY19FY20FY21FY22FY23
Revenue & Gross Margin %
RevenueGross Margin %
5X growth
forecast in 5G
subscriptionsby
2028
FY23Revenueup
17%

6
6
6
Core business –Space andDefence
Strong revenuegrowthand high stable margins
in most demanding market
FY23
•Revenue up 18%, driven mainly by demand for high-reliability space
applications
•Gross margin up $2.7m (16%) to $19.7m representing 68% of
revenue;reflects high value and performance requirements of market
•Good progress in NewSpace programme, building R&D capability,
product portfolio and strategic relationships
FY24 and beyond
•Solid FY24 order book in both Space and Defence and confident of
maintaining FY23 revenue
•In Space market, Rakon is Involved in increasing number of
telecommunications and LEO-PNT constellations (Low Earth Orbit -
Positioning, Navigation and Timing)
•In Defence market, seeing strong demand in communication
applications
•Emerging low earth orbit (LEO) satellites projected to more than
double the space market and drive a three-fold increase in the
number of active satellites by 2030
$32m
$28m
$30m
$24m
$29m
69%
69%
68%
69%
68%
FY19FY20FY21FY22FY23
Revenue & Gross Margin %
RevenueGross Margin %
"The space market... has grown to
approximately $447 billion—up from
$280 billion in 2010—and could grow to
$1 trillion by 2030."
FY23Revenueup
18%

7
7
7
Core business –Positioning
Steady industrial growth supported by
strong locator beacon resurgence
FY23
•Revenue up 21% driven by:
•Solid growth in industrial and automotive segments
•Returning global travel driving higher emergency locator beacon
business
•Gross margin increased 10% to $18m or 53% of revenue
FY24 and beyond
•Temporary slowdown of orders as some customers re-adjust
inventory levels
•Beyond inventory corrections, customers forecasting strong long-
term market growth, ourcustomer service and product performance
positions us well to capture thatgrowth
$20m
$19m
$14m
$28m
$34m
40%
36%
48%
58%
53%
FY19FY20FY21FY22FY23
Revenue & Gross Margin %
Core revenueTCXO chip shortageGross Margin %
FY23Revenueup
21%

8
Other markets
Completion of major TCXO chip shortage order
8
8
FY23
•Completion of major TCXO chip shortage order during the
period
•Captured short term opportunity due toability to design a
solution and quickly scale up for production,with manufacturing
commencing three months after securing the order
•Applications include wireless control systems, machine to
machine communication, IoT, smart grids & smart metering for
electricity and gas
$8m
$7m
$7m
$33m
$17m
16%
-5%
15%
57%
48%
FY19FY20FY21FY22FY23
Revenue & Gross Margin %
Core revenueTCXO chip shortageGross Margin %

9
9
9
FY23Financial overview
AnandRambhai, Chief Financial Officer

$141m
$164m
$114m
$119m
$128m
$172m
$180m
FY19FY20FY21FY22FY23
Revenue
Core businessTCXO chip shortage
Strong core business growth offsets chip-shortage business
10
10
$72m
$80m
$52m
$52m
$59m
$90m
$89m
45%
44%
46%
52%
49%
FY19FY20FY21FY22FY23
Gross Margin
Gross Margin %
$37m
$39m
$11m
$15m
$23m
$54m
$42m
FY19FY20FY21FY22FY23
Underlying EBITDA
1
CoreTCXO chip shortageAssociate
$19m
$23m
$3m
$4m
$10m
$33m
$23m
FY19FY20FY21FY22FY23
Net Profit
Growth across all our core markets

Decrease innetprofitcompared to FY22
explained
Net profit & Underlying EBITDA explained
11
11
How the current period net
profit translates to EBITDA
Others
1
-include movement in other operating general and administration expenses
Timemaker share
2
-adjustment for Timemaker share of interest, tax and depreciation
major general and administration
expenses variances
Financial result reflects investment for growth and inflationary pressures
•Unrealised FX gains on revaluation of USD
bank and debtors with 10% lower NZD/USD
than March 2022
•Timemaker impacted by consumer electronics
slowdown and high inventories held by
customers
•Higher R&D investment with relocation and
strengthening of the chip design team
•General & admin cost reflecting investment
into our people and inflationary pressures (incl.
labour shortages)
•Work underway to streamline operating
expenses and overhead and accelerated
manufacturing transfers

How net profit translates to cash
12
12
How net profit translates to operating cash
How operating cash translatesto
movement in net cash
Investment for
growth
•Increased inventory to mitigate supply chain
risks and support transfer of manufacturing
to new India factory
•Inventory trending down since Sept 2022
and expected to continue
•Focus on optimising receivables and
payables to enhance cashflow
•India building largely complete with majority
of spend in FY23
•$9.2m capex includes spend on XMEMS,
capitalised R&D, capacity expansion,
replacement of aging equipment
Other
1
–non-cash items including unrealised foreign exchange, share of net profits of associate (Timemaker), employee share
based expense, and movements in other provisions
Net cash
$16.5m
$6.8m
Inventory management and investment for growth impacting cash position

1
99% of revenue is non-NZD currencies (mostly USD) with more significant exposure NZD/USD. Hedging covers up to 36 months exposure on a net basis.
2
excluding NZ IFRS 16
FY23 Financial metrics
•Revenue growth was consistently strong across all core markets.
•Additional revenue from the one-off chip shortagecontracts fell
from $31m to $16m
•$3.0m FX gain in FY23, compared to -$1.0m in FY22
1
•Operating expenses increased by $9.5m reflecting investment in
resources and innovation to support future growth and
inflationary pressures on labour and energy costs
•$18.7m capital expenditure continues investment into the
growth strategy while supporting existing operations.
•$9.5m spent on the new India building
•balance on additional capacity and maintaining
existing production
13
13
Performance for the year to 31 March
NZ$m
FY23FY22variance% change
Revenue180.3172.0+8.4+5%
Gross profit88.890.1-1.3-1%
Gross margin %49.2%52.4%-3.1 ppts
Operating expenses58.849.3+9.5+19%
Other operating income0.41.6-1.2-75%
Net profit after tax23.233.1-9.9-30%
Underlying EBITDA
1
42.254.4-12.2-23%
Capital expenditure18.710.4+8.3+80%
Operating cash flow11.130.2-19.1-63%
Financial PositionMar-23Mar-22variance% change
Net cash / (net debt)
2
16.523.2-6.8-29%
Inventory62.657.3+5.3+9%
Hedging NZD/USD
FY24
FY25
FY26
% of net exposures covered by hedging
74%
45%
6%
average rate of cover
0.6460
0.6150
0.6098

14
Strategyand Outlook
14
SinanAltug, Chief Executive Officer

15
Clear growth strategy to deliver shareholder value

16
3-year growth roadmap
Achieved all FY23 milestones

17
New India facility near completion
Increase capacity, extend product lifecycles
and improve economies of scale
•Facility largely complete, opening in June 2023
•Total cost on track for $14-$15m, with majority of spend in FY23
•Customer supply continued uninterrupted supported by business
continuity planning and high inventories
•Crystal manufacturing commenced Feb 2023 and OCXO oscillators
produced in March 2023
•Bringing forward the transfer of key products to be manufactured to
achieve economies of scale and stronger margins

18
Significantprogress in other key investment areas
Rakon proprietary semiconductor chipsXMEMS
®
nanotechnology manufacturing
NewSpace-LEO satellites
•Rakon’s own chips deliver superior
product performance and 45% of FY23
revenue at 15%+ higher margins
•Invested to expand capability to design
and reduce time to market
•Niku™TCXO chip released in late 2022
•OCXO products containing the Mercury+
chip approved in several Tier 1 telecom
reference designs
•Strong edge computing market interest
in new MercuryX (XMEMS®
manufactured) products
•Game changing technology allowing
production of miniaturised products
•Five products now generating
revenue at strong margins
•Positive customer feedback on
performance
•Investment in new equipment,
significantlyincreasing manufacturing
capacity
•On track to become cashpositive by
the end ofFY25
•Products which combine space-grade
performance with higher volume
manufacturing capability
•Invested in R&D, supply chain and
establishing dedicated internal team
•GNSS Received product launched on
board an in-orbit demonstration
mission at the end of FY23
•Strategic partnershipsprogressed to
support key products
•On track to become cash positive by
the end ofFY25
Invested $17m in R&D in FY23

19
•Declared afully imputed dividend of 1.5 cents per share
•improvedFY24operational risk profile withreducedimpacts from
raw material issues and nearcompletion of Indian facility
•reviewed3-year growth plan, cash flow forecasts and relevant
externalvariables
•Board anticipate level of dividend to be sustainable through execution and
investmentin 3-year growth plan
•Introduction of Dividend Reinvestment Plan
Commencing dividends
Careful cash flow management and improved operational
risk profile with continued focus on delivering growth
Borrowings repaid
in FY23
$10.7m
$156.9m
$21.7m +16%
R&D
$17.0m
$2.3m +16%
Fully imputed Final
Dividend
1.5cps
Dividend
Reinvestment Plan
to be introduced
$14-15m
India facility total
investment (expected)
Net Assets

•Anticipate FY24 Underlying EBITDA in range of $26m -$34m
•industry-wide normalisation of customer inventory levels expected
to impact FY24 Revenue by $10-$15m, principally in H1 in Telecom
and Positioning Markets
•spaceand defence market demand remains strong
•one-off chip shortage contracts rolled off in FY23
•Focused on optimising short term financial performance
•streamlining operating expenses and overhead
•actively managing continued impact of labour shortages
•accelerating manufacturing transfers
•Continued execution of 3-year growth plan during FY24 and FY25
•Ongoing assessment of acquisition opportunities as a part of growth
strategy ensuring enhancement of competitive advantage and value
creation
•Core markets remain strong and opportunitiessignificant with the ongoing
evolution of 5G and edge computingautonomous machines and vehicles,
aerospace and the entire NewSpace ecosystem
20
FY24 and beyond
Our customer relationships, product leadership and
investment in growth position us well for futuregrowth

21
Q&A
21

Cloud computing: Allows users to have on-demand availability of a remote
computer system’s resources for improved computing power or data
storage (usually located quite far from the user, such as in another country)
Datacentres: Usually a building that is used to hold a computer system and
other components to backup data
Design-in: An opportunity that allows Rakon’s product to be used as the
reference component for certain customer reference designs (a technical
blueprint of a system intended to be used by customers)
Edge computing: Allows users to have on-demand availability of a remote
computer system’s resources for improved computing power or data
storage (usually located close to the user, such as within the same city)
5G: 5th generation of the telecommunications standard, providing 10 to
1000 times better performance in many different applications
5G millimetre wave technology: The equipment that enables higher
frequency data transmission in 5G
NewSpace/ NewSpace LEOs: Refers to space sector commercialisation,
that are mainly low earth orbit (LEO) satellites
Mercury™ / Mercury+™: Rakon’s proprietary integrated circuit used in
OCXOs to achieve clock variations to less than 1 billionth of a second, these
enable precision timing in 5G applications
OCXO: Oven Controlled Crystal Oscillator. A crystal oscillator that uses a
miniaturised oven to keep its internal temperature constant
O-RAN: Mobile networks that are more intelligent, open, virtualised and fully
interoperable
Pluto®: Rakon’s proprietary integrated circuit used in TCXOs to achieve clock
variations to less than 100 millionth of a second; these enable higher data rates
in 5G applications
System solutions:Refers to Rakon’s solutions that include high performance
products, equipment and consulting services for Space & Defence
TCXO: Temperature Compensated Crystal Oscillator. A crystal oscillator with
additional circuitry to remove frequency variations due to temperature change
Tier 1customers: recognised key players within their respective industries, that
make up a significant market share
VCXO: Voltage Controlled Crystal Oscillator (VCXO). A crystal oscillator with an
adjustable output frequency
XMEMS®: Crystal Micro-Electro-Mechanical System. Rakon’s advanced quartz-
based resonator technology. It is made with Rakon’s nano-technology
microfabrication process, delivering unprecedented resonator and oscillator
performances
22
22
Glossary

23
Appendices
23

www.rakon.com
24

---

RAKON / ANNUAL REPORT / 2023
The Future.
Connected.

Excited about our future
Rakon’s industry leading technologies provide the electronic 
heartbeat for thousands of systems around the world, and beyond.
Our groundbreaking frequency control and timing products
have landed on Mars and are now on course for Jupiter. And back
on earth, they are enabling next generation applications in the
telecommunications, space and defence, and positioning markets.
Those markets are continuing to grow and we are growing
with them. With each milestone accomplished through our growth
strategy, we are positioning ourselves for greater steps forward.
We’re excited about our future and can’t wait to see what’s next.
RAKON / ANNUAL REPORT / 2023
Ultra-stable TCXO not shown to scale, actual size: 7mm x 5mm

Good to grow
Delivering on our strategic growth objectives creates
long-term value for our shareholders.
Our three-year growth strategy maps the paths for
achieving that growth. We’ve hit our FY23 milestones
and are continuing to create resounding value by:
growing our core business, maintaining product and
technology leadership, expanding into new markets,
and delivering world-class manufacturing.
01
RAKON / ANNUAL REPORT / 2023

RAKON / ANNUAL REPORT / 2023
02
RAKON / ANNUAL REPORT / 2023

Born to innovate
Innovation is in Rakon’s DNA.
The same innovative spirit that started in a garage
in Auckland, New Zealand, over 50 years ago,
is now leading the next generation of electronic
heartbeats for thousands of applications around
the world and beyond.
Our people are the driving force behind Rakon’s
culture of innovation. Together we pioneer what’s
next across R&D and manufacturing sites in
New Zealand, France, UK and India – partnering
with customers to create solutions that
perform at ever greater levels.
RAKON / ANNUAL REPORT / 2023
03
RAKON / ANNUAL REPORT / 2023

Ultra Stable TCXO with Niku™ semiconductor not shown to scale,
actual size: 5mm x 3.2mm
Next generation performance
XMEMS
®
+ Niku
TM
Rakon’s industry-leading XMEMS
®
resonators and
nanotechnology manufacturing process enables the
incredible accuracy needed to develop and deliver
miniaturised products with unprecedented performance.
Coupled with our next generation semiconductors like
Niku™, this technology forms the foundation of Rakon’s
latest suite of frequency control and timing solutions.
RAKON / ANNUAL REPORT / 2023
04
RAKON / ANNUAL REPORT / 2023

Connected to our core markets
Continued growth in global demand for Rakon’s
industry-leading products in our key markets of
telecommunications, space and defence and
positioning, has allowed us to sustain the record
revenue levels achieved last year.
As we continue to build and strengthen our customer
relationships, and innovate the next wave of high-
performing products, we’re positioned to grow
with industries like NewSpace and
5G telecommunications as they deliver on their
massive potential.
and the LEO satellite ecosystem
05
RAKON / ANNUAL REPORT / 2023

This document reports on Rakon’s
operational and financial performance for
the year to 31 March 2023 (FY23). We
have focused on what we believe matters
most to our stakeholders and business.
This report provides a clear look at our company and shows
how we are delivering against our strategic priorities of
technology innovation, core markets, customer partnerships,
and flexible, scalable operations.
Our commitment to sustainability is demonstrated through
our Environmental, Social and Governance (ESG) actions.
This year we report on our progress across a number of
material ESG related topics and provide our first climate
report following, where we can, the disclosure
recommendations of the Taskforce on Climate-related
Financial Disclosures (TCFD). Pages 46–70 show our
current journey.
We have endeavoured to ensure all information is accurate,
including performing internal verification. The information
provided in this report has been compiled in line with NZX
Listing Rules and recommendations for investor reporting.
The financial statements on pages 71–115 have been
prepared in accordance with appropriate accounting
standards and have been independently audited by
PricewaterhouseCoopers.
We know that our investors prefer to view this report online.
Our company review and financial documents are included
in this report, in an easy-to-read format.
We welcome your feedback on this report, including how we
can improve. If you would like to let us know any comments
or suggestions please email us at: investors@rakon.com.
Welcome to our 2023 Annual Report
06
RAKON / ANNUAL REPORT / 2023

THE YEAR
IN CONTEXT
About Rakon
08
Performance snapshot
10
Chair & CEO report
11
Our global footprint
15
OUR LONG-TERM
GROWTH PLAN
Our growth strategy
18
How we create
long-term value
19
3-Year growth roadmap
20
STRONG PROGRESS
IN CORE MARKETS
Telecommunications
24
Space and defence
26
Positioning
28
Other markets
30
SUSTAINABILITY
AND ESG
FUTURE-FOCUSED
PATHS TO GROWTH
Our people
38
Our board
42
Management team
44
Driving sustainability
through our business
46
Our ESG framework
48
Improving our
environmental impact
50
Our supply chain
People and practices
55
Making positive social
contributions
56
Corporate Governance
57
Glossary
69
Technology leadership
32
Expanding into new markets
33
Innovating in India
34
World class manufacturing
35
FINANCIALS
Financial statements
73
Notes to the financial
statements
78
Independent
Auditor’s Report
116
Remuneration Report
120
Shareholder
Information 2023
125
Climate Disclosures
at Rakon: FY23
128
Directory
136
010203050406
Contents
07
RAKON / ANNUAL REPORT / 2023

About Rakon
The future. Connected.
Rakon designs and manufactures advanced frequency control and
timing solutions that are critical to enabling connectivity between
people, networks and machines.
Think of our products as the ‘heartbeat’ for electronic systems.
They create extremely accurate and stable electric signals to generate
radio waves and synchronise time in everything from 5G networks
and satellites to autonomous vehicles and emergency beacons.
As technology evolves it needs increasingly faster, more precise and
more stable connectivity. That’s what we deliver. The highly accurate
and stable timing reference produced by our products makes next
generation applications possible and is relied on to deliver exceptional
connectivity in even the most extreme conditions.
08
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023

01
THE YEAR
IN CONTEXT
09
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023

REVENUE
$180.3m
▲ $8.4M OR 5%
+16% core revenue growth
HIGHEST EVER CORE BUSINESS REVENUE
(NON CHIP-SHORTAGE RELATED REVENUE)
Stable margins maintained
ACROSS CORE MARKETS
NET PROFIT AFTER TAX (NPAT)
$23.2m
▼ $10.0M OR 30%
3-year growth plan
FY23 MILESTONES 100% ACHIEVED
OPERATING CASH FLOW
$11.1m
▼ $19M OR 63%
I n d ia manufacturing centre of excellence
ON TRACK TO OPEN MID-JUNE 2023
UNDERLYING EBITDA
2
$42.2m
▼ $12.2M OR 23%
NET CASH (INCLUDING BORROWINGS)
$16.5m
▼ $6.8M OR 29%
Performance snapshotHighlights
All figures are presented in New Zealand dollars unless otherwise indicated.
All comparisons are to the prior corresponding period (i.e. 12 months to 31 March 2022) unless otherwise stated.
1 Refer to the footnote on page 69 for the definition of Underlying EBITDA as a non-GAAP financial measure, referred to in this document.
1.5c dividend declared
AND DIVIDEND REINVESTMENT PLAN
GROSS MARGIN
$88.8m
▼ $1.3M OR 1%
10
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023

Chair & CEO report
We are proud to deliver a sound
operating result, marked by significant
expansion in our core business and
substantive progress on key initiatives
– the bedrock of Rakon’s growth plan.
The 12-month period to 31 March 2023 (FY23) has been
the best year ever for our core business with continued
growth in global demand for Rakon’s industry-leading
products across all key markets. Focused on sustained
value creation for our shareholders we have delivered all
of the key milestones in the three year growth plan
critical to Rakon’s long-term growth. Careful
management of cash flow has enabled us to maintain a
robust balance sheet, invest in growth and commence
dividends to shareholders.
We acknowledge and thank our nearly thousand-
strong global Rakon team for their efforts in making all
these achievements happen, in particular for their
dedication, can-do attitude and unrelenting commitment
to our customers.
The 12-month period
to 31 March 2023
has been the best
ever year for Rakon’s
core business.
FINANCIAL RESULT REFLECTS GROWTH IN CORE
BUSINESS AND INVESTMENT IN OUR 3-YEAR
GROWTH PLAN
Total revenue for the year was up 5% at $180.3 million,
compared with $172.0 million for the year to 31 March 2022
(FY22). Underlying EBITDA of $42.2 million was 23% lower
than last year, primarily as the result of increased operating
expenses, including investment in future growth initiatives.
Net Profit After Tax (NPAT) was $23.2 million, reflecting the
lower Underlying EBITDA performance as well as a share of
a loss made by an associate.
Revenue growth was consistently strong across all core
markets. Telecommunications, Rakon’s largest market,
grew by 17% to $100.6 million (FY22: $86.0 million)
on the back of continued 5G and 4G network infrastructure
growth globally. Increased activity in both Space and
Defence segments resulted in a 18% revenue increase,
LORRAINE WITTEN / CHAIR SINAN ALTUG / CEO
11
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023

FY23FY22FY21FY20FY19
$52m
$52m
$59m
$90m
$89m
FY23FY22FY21FY20FY19
$3m
$4m
$10m
$33m
$23m
FY23FY22FY21FY20FY19
$114m
$119m
$128m
$172m
$180m
FY23FY22FY21FY20FY19
$90m
$92m
$104m
$135m
$157m
to $28.9 million (FY22: $24.5 million). Positioning grew by
21% to $33.8 million (FY22: $28.1 million) driven by
increased demand for Rakon’s precision timing products in
the industrial, agricultural, automotive and emergency locator
beacon segments.
Additional revenue from the one-off chip shortage contracts
(won in FY21 and FY22) fell from $31 million to $16 million
as the contracts completed over the year and global chip
supply normalised. Further market information is provided
on page 21.
Gross profit was slightly lower at $88.8 million, while gross
margin percentage was 49% (FY22: 52%). This mild
fluctuation was primarily due to a shift in the product mix.
Over the years, we have maintained stable overheads,
however as expected, we saw an increase in operating
expenses in FY23 of $9.5 million (19%). This increase is
attributed to our strategic investments in resources and
innovation, supporting our future growth trajectory,
combined with some impact from inflationary pressures
on labour, energy costs and other overheads. The rise in
operating expenses was partially offset by the favourable
foreign exchange gains of $3.0 million mostly from
revaluation of our USD debtors and bank balances.
Underlying EBITDA stood at $42.2 million, within our
projected guidance range of $40-44 million, representing
an EBITDA margin of some 23% - Rakon’s second-best
earnings year ever.
Operating cash flow for the period was $11.1 million, down
on last year’s $30.2 million as the result of our increased
investments in growth-related initiatives, technology
innovation, and increased inventory to provide supply chain
resilience, in addition to increased overhead costs reflecting
the current inflationary environment.
BALANCE SHEET REMAINS ROBUST
Rakon’s balance sheet remains robust, with net assets
increasing by 16% to $156.9 million since March 2022.
The company had $16.5 million in net cash at balance date,
$6.8 million lower than a year ago as we continued to
self-fund key growth-focused projects. Payments of
$9.5 million were made during the year for construction
of the new manufacturing facility in India, which is now
largely complete.
We reduced borrowings by $10.7 million during the year.
The $10 million private debt facility held at the beginning
of the year was repaid and a new, more flexible debt facility
arrangement was agreed with ASB Bank.
Inventory levels increased over the first half, following the
deliberate strategy to build safety stocks of raw materials
and finished products to mitigate supply chain risks, ensure
delivery continuity for key customers and also to support the
transfer of Rakon India’s manufacturing operation to the new
facility. Since 30 September 2022 inventory has reduced
13% and we expect the balance date inventory level of
REVENUE
GROSS MARGIN
SHAREHOLDERS’ FUNDS
NET PROFIT
12
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023
CHAIR & CEO REPORT / CONTINUED

$62.6 million (FY22: $57.3 million) to continue reducing
through FY24 as supply chain volatility reduces and
manufacturing volumes build in the new facility.
We will continue to manage our balance sheet to support
the company’s long-term sustainability and growth strategy,
including maintaining capacity to execute growth
opportunities over time.
SIGNIFICANT PROGRESS AGAINST OUR
GROWTH STRATEGY
Rakon’s strategy focuses on delivering sustained value
creation for our shareholders, propelled by growth in our
core markets, market expansion through product leadership,
technological innovation, operational and manufacturing
efficiency, and fostering enduring customer relationships.
This is graphically articulated on page 18, which shows
the key strategic priorities critical to Rakon’s long-term
value creation.
Rakon’s strategic vision is bolstered by our robust three-year
plan, which we shared at last year’s annual meeting. This plan
outlines our key avenues for growth and underlines our focal
points, encompassing both organic growth initiatives and
strategic acquisitions for accelerated expansion. Our
investment strategy continues to align seamlessly with these
crucial areas. FY23 marked the launch of this three-year plan
and we are proud to announce that every objective set for
FY23 has been successfully achieved, a testament to our
strategic execution and dedication to growth.
We have received exceptional market feedback about our
new XMEMS® nanotechnology frequency control products
launched during the year. Our UK-based semiconductor
development programme has also expanded and
successfully released Niku™, our next generation
semiconductor chip. We are achieving strong industry
support for our low earth orbit (LEO) satellite subsystems
as well as the highest validation with multiple Rakon
products onboard a groundbreaking European Space
Agency mission to study Jupiter’s moons for signs of life.
We have largely completed the construction of Rakon’s
new manufacturing Centre of Excellence in India, and
we are now past the peak risk of this project, with our first
products already being produced and the relevant
certifications achieved.
We are continuing to evaluate and consider potential
acquisition opportunities which align with our strategy and
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. We are engaging with a shortlist of suitable
target companies and taking the necessary time to ensure
any potential acquisition will enhance or be supported by our
competitive advantage and capability, and be value-accretive.
RAKON TO COMMENCE DIVIDENDS.
The Board has rigorously assessed Rakon’s future capital
requirements in line with its three-year growth plan, cash
flow forecasts, and relevant external variables.
The careful management of free cash flow through the year
has enabled borrowings to be repaid, a strong balance sheet
to be maintained and growth initiatives to be funded.
Alongside this there has been an improvement in the
company’s operational risk profile following the resolution
of raw material shortages and the near completion of the
facility in India.
Therefore, the Board is pleased to confirm that Rakon will
commence dividend distributions, representing a landmark in
its fiscal journey. The Board is declaring a FY23 fully imputed
dividend of 1.5 cents per share, with a record date of 24 July
2023 and payment date of 8 August 2023. The payment
date of this dividend has been set to allow time for the
introduction of a Dividend Reinvestment Plan, which will
give shareholders the opportunity to increase their
investment in Rakon without incurring brokerage charges.
It is our intention to distribute the plan’s offer document
and participation notice in the coming weeks.
The Board believes this level of dividend payment is
sustainable through the investment and execution of our
three year growth plan which is focused on delivering
shareholder value over time.
The Board is
declaring a FY23 fully
imputed dividend of
1.5 cents per share.
13
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023
CHAIR & CEO REPORT / CONTINUED

GOVERNANCE
Following recent years of Board refreshment and focus on
improved governance practices, our Board is an effective
team with a strong mix of skills and experience. The Board
has a strong sense of shared purpose, a focus on key
strategic issues, risks and opportunities and a commitment
to ongoing learning and development. During the year the
Board worked closely with the Chief Executive and the
Management team to develop an environment for robust
debate while also setting high expectations for reporting,
self-review and stakeholder engagement.
We have continued to monitor and assess the risks and
opportunities facing Rakon during an extremely busy period
of delivering core business growth and simultaneously
implementing significant growth projects including
building a new manufacturing facility.
The Board has a clear vision for sustainability, with
objectives which are aligned with Rakon’s broader growth
strategy. During the year a review of board and committee
charters was completed to ensure they reflect the Board’s
oversight of a global business and particularly, to reflect
responsibility for the oversight of sustainability.
During the year considerable progress was also made in
building our capability in Environmental, Social and
Governance including climate-related matters across the
organisation. A key focus this year has been preparing for
mandatory climate reporting in 2024. We have prepared
climate disclosures aligned with the TCFD approach and
have taken an initial assessment of how climate-related
matters, risks and opportunities will impact our strategy.
During the year, we transitioned our New Zealand
manufacturing process from using carbon dioxide to nitrogen.
This has already seen a significant reduction in our Scope 1
carbon emissions in FY23, and we will contribute further
once complete in FY24. Our new manufacturing plant in
India will also allow Rakon’s vision for sustainability
to be put into practice on a larger scale.
SUMMARY AND OUTLOOK
The continued revenue and margin growth of our core
business over the last five years highlights Rakon’s
competitive advantages and the trust our customers have
in our products, innovation and customer service, regardless
of where they are in the world. The longer-term growth
fundamentals for our core markets remain strong and the
opportunities significant with the ongoing evolution of 5G,
cloud and edge computing, autonomous machines and
vehicles, aerospace and the entire NewSpace ecosystem.
Within this confident outlook Rakon acknowledges that
growth rarely follows a straight-line trajectory. In the short
term, Rakon expects FY24 Underlying EBITDA of between
$26 million and $34 million. This reflects the industry-wide
normalisation of inventory levels among customers,
following the stockpiling of components over the past two
years, which is anticipated to have a $10 - $15 million
revenue impact on FY24 principally in the first half of the
year in the Telecommunications and Positioning segments.
The demand in Space and Defence remains strong. The
one-off chip shortage contracts that benefited FY22 and
FY23 also rolled-off during FY23. We continue to feel the
impacts of labour shortages, and inflationary pressures
and are focused on making appropriate operating
adjustments to optimise short-term financial performance
without diminishing our future growth path.
Focused on sustained growth and shareholder value,
we continue to invest in growth and are on track with our
three-year growth plan that provides a strong foundation
for future expansion in both core and new markets.
We look forward to the inauguration of Rakon’s new India
facility in June, which will provide a vital long-term
competitive advantage with significantly enhanced
manufacturing capacity and capability and lower production
costs. We also continue to actively seek growth
opportunities, including acquisitions, where we see future
value creation and alignment with our growth strategy.
As we embark on an exciting year ahead, we remain
steadfast in our commitment to delivering long-term value
to our shareholders. We’re confident that Rakon’s vision,
resilience, and strategic initiatives will propel the business
to new heights.
LORRAINE WITTEN / CHAIR
SINAN ALTUG / CEO
14
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023
CHAIR & CEO REPORT / CONTINUED

Our global footprint
KEY:
15
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023
70
countries with
Rakon customers
7
company and partner
manufacturing sites
6
R&D centres
of excellence
16
customer support
locations
1000+
employees worldwide
46
nationalities in the
Rakon global team
••
Manufacturing sites
••
R&D centres
••
Customer support locations
••
Quality assurance
••
Key manufacturing partners

Powering the
pulse of space activity
and exploration
Rakon has a proud 40-year legacy of
delivering cutting-edge products for over
50 international space programmes,
including: Sentinel, Galileo, Rosetta
and Mars Perseverance.
Most recently, three Rakon products took flight in
April 2023 onboard the European Space Agency’s
groundbreaking JUICE mission to observe Jupiter
and its moons for signs of life.
We’ve also established ourselves in the fast
growing NewSpace and Low Earth Orbit (LEO)
satellite ecosystem – with our latest NewSpace
GNSS receiver product being used in an earth
observation satellite launched in April 2023.
An Ariane 5 lifts off April 14 carrying European Space Agency’s JUICE mission to Jupiter. Credit: ESA/M. Pédoussaut
16
SECTION 01 / THE YEAR IN CONTEXTRAKON / ANNUAL REPORT / 2023

02
OUR
LONG-TERM
GROWTH PLAN
RAKON / ANNUAL REPORT / 2023
17
SECTION 02 / OUR LONG-TERM GROWTH PLANRAKON / ANNUAL REPORT / 2023
17

Our growth strategy
FOUR PATHS TO
GROWTH
Rakon’s growth strategy is
set around an evolving set
of objectives which focus
on: growing our core
business, maintaining our
product and technology
leadership, expanding into
new markets, and being a
world-class manufacturer.
Each path has key areas
where we are focusing our
efforts to drive growth.
This may be through
organic growth initiatives
or strategic acquisitions
which accelerate growth
through access to markets
or technologies. As we
invest in growth, our
investments will align
with these areas.
GROW
OUR CORE
BUSINESS
MAINTAIN PRODUCT
AND TECHNOLOGY
LEADERSHIP
EXPAND INTO
NEW MARKETS
DELIVER
WORLD CLASS
MANUFACTURING
STRATEGIC ACQUISITIONS SUPPORTING GROWTH STRATEGY
18
SECTION 02 / OUR LONG-TERM GROWTH PLANRAKON / ANNUAL REPORT / 2023
STRATEGY

Growth of
our people
Advancement of
technology
Life-changing
applications and
scientific discovery
Increased shareholder
value
Improved
delivery
OUR OUTPUTS
Our 1000+
global team
Global manufacturing
platform & supply
Intellectual capital, R&D
investment and trusted
brand
Financial resources and
capability
Partnerships and
relationships
OUR INPUTS
How we create long-term value
Our strategic pillars:
customer partnerships;
technology innovation;
core markets, and flexible,
scalable operations – are
our key drivers of value
and underpin our
planning, activities and
how we measure
performance. They are
critical to the creation of
long-term value, while
providing the flexibility
to explore emerging
opportunities and thrive.
A VALUES-DRIVEN CULTURE
Our values-driven, innovation-focused culture provides the foundation – shaping how we capture opportunities,
manage risk, look after each other, and deliver on our ESG objectives and sustainability goals.
Enduring
relationships
and
development
of market
opportunities
Creating
first-mover
advantage and
next-generation
solutions
Enabling
efficient
delivery and
supporting
long product
life cycles
Building
leadership in
high growth,
high tech
markets
C
O
R
E

M
A
R
K
E
T
S
F
L
E
X
I
B
L
E
,

S
C
A
L
A
B
L
E

O
P
E
R
A
T
I
O
N
S
T
E
C
H
N
O
L
O
G
Y

I
N
N
O
V
A
T
I
O
N
C
U
S
T
O
M
E
R

P
A
R
T
N
E
R
S
H
I
P
S
RAKON / ANNUAL REPORT / 2023
19
SECTION 02 / OUR LONG-TERM GROWTH PLANRAKON / ANNUAL REPORT / 2023
STRATEGY

3-Year growth roadmap
FY23 milestones achieved
Delivering on our strategic
growth objectives will
deliver long-term value
for our shareholders.
We are investing in
strategic initiatives to drive
future value growth. This
three-year roadmap shows
critical milestones for these
initiatives. We are pleased
to report all milestones
were achieved in FY23.
NEW
MANUFACTURING
FACILITY IN INDIA
• Select French
NewSpace
subsystem modules
transferred
• Select NZ products
transferred
• Select NewSpace
products transferred
• Chip based product
revenue growing
• Release of next
generation chips
• Release of Vulcan
TM

next generation chip
• Chip based product
revenue growing to
over 60%
• Leadership in
targeted market
segments
• Expansion into
other product
categories
• Volume production
of XMEMS
®

• Become a top
3 player in
subsystems
• Delivery of orders
• Recognised player
in the ecosystem
• Significant orders
secured
FY25FY24
RAKON DESIGNED
SEMICONDUCTOR
CHIPS
XMEMS
®

NANOTECHNOLOGY
MANUFACTURING
NEWSPACE
BUSINESS
• Construction completed
• Fitout / capacity
expansion
• Existing manufacturing
transfer
• Substantial increase in
R&D and chip design
capability
• Release of Niku™ next
generation chip
• Continued investment in
XMEMS
®
capability
• Release of initial
XMEMS
®
based
products
• R&D and supply chain
investment
• Strategic relationships
established
FY23
20
SECTION 02 / OUR LONG-TERM GROWTH PLANRAKON / ANNUAL REPORT / 2023
STRATEGY

21
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
21
03
STRONG PROGRESS
IN CORE MARKETS

Strong progress
in core markets
FY23 REVENUE
$101m
▲ UP 17%
56% OF TOTAL REVENUE
Telecommunications
Revenue growth was consistently strong across all
core markets. Telecommunications, Rakon’s largest
market, grew by 17% to $101 million on the back
of continued 5G and 4G network infrastructure
growth globally. Increased activity in both Space
and Defence segments resulted in a 18% revenue
increase, to $29 million. Positioning grew by 21%
to $34 million driven by increased demand for
Rakon’s precision timing products in the industrial,
agricultural, automotive and emergency locator
beacon segments.
22
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023

FY23 REVENUE
$34m
▲ UP 21%
19% OF TOTAL REVENUE
FY23 REVENUE
$29m
▲ UP 18%
16% OF TOTAL REVENUE
Space and defencePositioning
23
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023

24
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
Telecommunications
Our market-leading products
enable data to be transmitted
across telecommunications
networks at ever-increasing
levels of speed and reliability.
Market growth is being led by
the relentless advancement of
telecommunications and cloud
computing equipment and
infrastructure - in turn driven
by rising consumer demand as
well as industries capitalising
on higher data speeds to
deliver greater functionality
to customers.

FY23FY22FY21FY20FY19
Gross MarginGross Margin %
$20m
38%
40%
44%
40%
43%
$26m
$31m
$38m
$43m
FY23FY22FY21FY20FY19
$54m
$65m
$77m
$86m
$101m
REVENUE
GROSS MARGIN
Telecommunications revenue grew 17% to $101 million,
driven by continued momentum in 5G network deployments
and 4G network upgrades. We have maintained our strong
market share with Tier-1 customers, and have entered new
strategic partnerships in the emerging O-RAN segment.
Gross margins grew to $43 million, with a slightly lower
gross margin percentage of 43% reflecting a changed
product mix.
The strong market growth rate is expected to continue for at
least the next five years, with latest industry reports showing
5G subscriptions topping one billion globally at the end of
2022 and expecting to surpass five billion by 2028 (see
chart above). Likewise, 5G is expected to account for 80%
of the estimated 300 million fixed wireless access (FWA)
connections by 2028.
Our product leadership ensures high rates of inclusion in
network equipment as well as third party reference designs
which guarantee product demand over the life of the design
being used. In FY23, we experienced key design wins with
our new XMEMS
®
manufactured products being qualified
into next generation 5G equipment, as well as strong uptake
for our next-generation MercuryX
TM
OCXOs.
We also experienced key design wins in emerging
architecture such as O-RAN, C-RAN and edge computing.
Rakon supplies leading products into these applications
including miniature Mercury+
TM
and MercuryX
TM
OCXOs –
5bn
5G SUBSCRIPTIONS ARE
FORECAST TO REACH 5 BILLION
IN 2028
FIVE-FOLD 5G SUBSCRIPTION GROWTH
BY 2028
MOBILE SUBSCRIPTIONS BY TECHNOLOGY
Source: Ericsson Mobility Report 2022 (November edition).Source: Ericsson Mobility Report 2022 (November edition).
2017
10
9
8
7
6
5
4
3
2
1
0
20182019202020212022202320242025202620272028
9.2
BILLION
8.4
BILLION
GSM/EDGE-ONLY (2G)
5G
4G
3G
TD-SCDMA (3G)CDMA-ONLY (2G/3G)
which incorporate proprietary XMEMS
®
technology. Our
order book for this segment is already growing and we are
confident it will deliver design opportunities as it accelerates
over the next five years.
Looking ahead, we are currently seeing a number of our
Tier-1 customers reducing their inventories after
accumulating safety stocks in the past two years to mitigate
supply chain risk. While this has caused a short-term
slowdown of orders, our customers’ production run rates
remain at a level consistent with FY22. We are confident that
as demand resumes, our longstanding customer
relationships and product leadership will position us well to
resume growth later in FY24.
25
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
TELECOMMUNICATIONS

Credit: ESA/M. Pédoussaut
26
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
Space and Defence
Our space and defence products
deliver the highest levels
of performance in extreme
environments; in aviation,
satellites, radar, communications
and positioning systems.
We work with key partners
in government agencies and
commercial programmes around
the world to develop next
generation solutions.

Space and defence revenue grew 18% to $29 million.
This was due mainly to increased demand for high-reliability
applications as key space programmes resumed for
telecommunications and Low Earth Orbit PNT (positioning,
navigation and timing) applications, and as defence sector
activity started to build. Gross margin grew by 16% to
$20 million, or 68% of revenue, reflecting the bespoke,
high value and performance requirements for this market.
Future growth is being led by the emerging NewSpace
and low earth orbit (LEO) satellite, market which is
projected to more than double the value of the space
market and drive a three-fold increase in the number
of active satellites by 2030.
Rakon has made solid progress over the year in its
NewSpace programme. We have built our R&D capability,
product portfolio and strategic relationships for this
longer-term play and were pleased to have our first
GNSS receiver in orbit in April 2023.
We have a solid FY24 order book in both segments and are
confident of maintaining our revenue levels of the past year.
We are seeing the strongest rate of growth in the NewSpace
market, with Rakon involved in an increasing number of
telecommunications and LEO PNT constellations where
there is a strong need for our equipment and stable clocks.
In the defence market, we are seeing strong demand in
communication applications.
FY23FY22FY21FY20FY19
Gross MarginGross Margin %
$22m
69%69%69%
68%68%
$19m
$20m
$17m
$20m
FY23FY22FY21FY20FY19
$32m
$28m
$30m
$24m
$29m
REVENUE
GROSS MARGIN
Source: McKinsey & Company: ‘A giant leap for the space industry’,
January 2023.
PROJECTIONS FOR
SPACE MARKET GROWTH
$ BILLION
27
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
SPACE AND DEFENCE
2023
2022
2010
~280
~447
~1,000

28
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
Positioning
Our positioning products meet
the most accurate positioning
requirements in key industries:
aircraft/marine navigation, survey
equipment, emergency beacons,
automotive, autonomous
agriculture and mining.
Market growth is being led by
autonomous agricultural and
industrial machines and other
precision equipment such as
unmanned vehicles.

FY23FY22FY21FY20FY19
Gross MarginGross Margin %
$8m
40%
36%
58%
48%
53%
$7m
$7m
$16m
$18m
FY23FY22FY21FY20FY19
$20m
$19m
$14m
$28m
$34m
Positioning revenue grew 21% to $34 million, driven by
solid growth in the industrial (agriculture and construction
surveying) and automotive segments, as well as a resurgence
in emergency beacons as global travel returned. Gross
margin increased 10% to $18 million, or 53% of revenue.
We are continuing to benefit from our strategic pivot to
industrial and precision applications. Our strong levels of
customer service and product performance have resulted in
solid customer partnerships, increased market share and
opportunities to develop and deliver new high-performance
products for these markets. By leveraging the TCXO
shortage opportunities, we have also strengthened our
relationships with longstanding customers.
Late in the year we released a new suite of TCXO products
based on Niku
TM
, our new-generation semiconductor chip
designed to support positioning. The range includes
products manufactured with our new XMEMS
®
technology
which delivers significantly greater stability for high
performance applications. Customer interest and uptake has
been encouraging to date. We also look forward to the
impending release of our 2nd generation emergency beacon
TCXOs which deliver a significant step up in location
response times and accuracy.
The positioning sector is also showing a temporary
slowdown of orders as some customers readjust inventory
levels. We expect this to impact 1H24 revenues, but beyond
that our customers are forecasting strong, long-term market
growth and we remain focused on capturing opportunities
in our key segments.
REVENUE
GROSS MARGIN
29
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
POSITIONING

FY23FY22FY21FY20FY19
Gross MarginGross Margin %
$1m
16%
-5%
57%
15%
48%
$1m
$19m
$8m
FY23FY22FY21FY20FY19
$8m
$7m$7m
$33m
$17m
REVENUE
GROSS MARGIN
30
SECTION 03 / STRONG PROGRESS IN CORE MARKETSRAKON / ANNUAL REPORT / 2023
Other markets
We partner with customers to
deliver one-off solutions for
applications such as wireless
control, test and measurement,
Machine-to-Machine (M2M),
smart grids and metering, and
other emerging markets.
Revenue declined by 48% to $17 million as one-off
TCXO orders stemming from earlier global chip
shortages were completed. This short-term
opportunity was captured due to Rakon’s ability to
design a solution and quickly scale up for production,
with manufacturing commencing three months after
securing the first order. Margins declined
proportionately to 48% and the segment contributed
9% of total revenue compared to 19% in FY22.

04
FUTURE-FOCUSED
PATHS TO GROWTH
31
SECTION 04 / FUTURE-FOCUSED PATHS TO GROWTHRAKON / ANNUAL REPORT / 2023

For more than 50 years, our culture of
innovation has underpinned Rakon’s proud
record of continuous improvement and
history of industry ‘firsts’.
Our portfolio of patented products and technologies
provides a competitive moat against commoditisation as well
as delivering long product lifecycles and revenue streams.
We work in multi-year timeframes to develop enhanced and
next generation technologies.
Rakon invested $17 million in research and development
during the year, with a key focus on three key technology
projects: development of new semiconductor chip products;
the new XMEMS
®
core nanotechnology; and products to
support expansion into the NewSpace market.
RAKON PROPRIETARY SEMICONDUCTOR CHIPS
For more than 15 years, Rakon has developed proprietary
semiconductor chips for our products, at our UK-based R&D
facility. These chips enable our products to deliver superior
product performance, providing a competitive advantage
and long lifecycles.
Rakon chip-based products also deliver greater value –
comprising 45% of our revenue in FY23 and 60% of
total margin.
During FY23 we invested in our semiconductor
programme, with the aim of increasing our capability
to design and deliver new chips by integrating chip and
product design; and to reduce time to market. As part
of this we have expanded our UK-based team, and will
be relocating it to Cambridge in FY24 where there is a
strong technology community.
Our longer-term aim is to build strong, in-house IP that
pushes the technology and performance barriers and
delivers new chips that underpin the next generation
of Rakon products.
We are on track with our plan to release four new-
generation chips and their associated product families
between FY23 and FY25, and around two chips per year
beyond that.
Uptake of Mercury
TM
chip-based products is continuing
to build, with OCXO products containing the Mercury+
TM

chip approved in a number of Tier 1 telecommunications
network reference designs, and the new MercuryX
TM

(incorporating XMEMS
®
) products gaining strong edge
computing market interest.
XMEMS
®
NANOTECHNOLOGY MANUFACTURING
Our game-changing XMEMS
®
resonators and manufacturing
allows Rakon to produce miniaturised products, which
perform at levels not possible using traditional
manufacturing methods.
During the year we released to market the first suite
of products manufactured using XMEMS
®
technology.
By March 2023, we had five product families available in
our core markets.
Customer feedback on product performance has been very
positive. While some new XMEMS
®
products may replace
older-generation products which are nearing obsolescence,
the majority are providing Rakon with the opportunity to
strengthen its market leadership in high-performance
products across all core markets.
We invested in new equipment, to provide scalability and
expand manufacturing capacity in New Zealand to support
anticipated demand. We have also enabled future expansion
for XMEMS
®
within the new Rakon India facility.
With volume production now under way, we are
experiencing additional benefit of increased manufacturing
efficiencies – delivering higher volumes and yields for tighter
product specifications and improving margins.
Looking ahead, XMEMS
®
manufacturing remains on track
to achieve its goals of becoming cash positive by the end
of FY25.
Technology leadership
32
SECTION 04 / FUTURE-FOCUSED PATHS TO GROWTHRAKON / ANNUAL REPORT / 2023

NEWSPACE – LEO SATELLITES
With telecommunications and earth observation driving
an expected four-fold growth in demand for LEO (Low
Earth Orbit) satellites over the next decade, the evolving
NewSpace ecosystem requires mass-manufactured
products delivering space-grade performance.
Rakon has the opportunity to leverage the long space
heritage and advanced R&D capability of our Rakon France
operation, and the efficient manufacturing at scale of our
French and Indian operations, to capture NewSpace
opportunities. In particular we have the opportunity to pivot
from being solely a component supplier to supplying higher
value satellite equipment.
During the year, we invested in R&D, our supply chain and
the establishment of a dedicated internal team. We have
made solid progress and achieved some key milestones.
As an important foundation for this programme, we
completed a comprehensive market study, in which we
analysed the market; evaluated our competitive strengths;
and valued and prioritised opportunities.
We have made solid progress towards establishing strategic
partnerships, which are currently being agreed to further
develop our GNSS Receiver and SDR portfolio. We are also
receiving strong support from our partner Space Agencies
for the development of this portfolio.
We were pleased to have a GNSS receiver onboard the
recent launch of a high-resolution earth observation and IoT
satellite by Turkey’s Plan-S, one of the industry’s largest
private initiatives. This mission is expected to be the baseline
for a large constellation, planned for 2024-25.
Rakon is now bidding for multiple large LEO PNT
1
and
telecommunications constellations, and we expect to start
having first orders confirmed in the first half of FY24.
Our focus for the coming year will be on working with our
strategic partners to capture opportunities and secure
orders. We will further develop our equipment portfolio with
the support of our partners and customers who are looking
for the low cost but high performing solutions that Rakon
can provide.
With Rakon already a recognised player in high performance
frequency control products, we are fast becoming a credible
and recognised player in the NewSpace ecosystem,
especially for everything that is related to GNSS and
communications. We remain confident that we are on track
to become cash positive by the end of FY25.
1 LEO PNT: Low Earth Orbit positioning, navigation and timing.
Expanding into new markets
33
SECTION 04 / FUTURE-FOCUSED PATHS TO GROWTHRAKON / ANNUAL REPORT / 2023

Our manufacturing presence in India continues to
open doors for Rakon, aligning with the Indian
Government’s ‘Make in India’ initiative. We’re proud
to be a trusted and strategic supplier to leading
companies across India’s telecommunications,
space and defence industries.
The facility is also at the forefront of sustainable
building practices around the use of water and
energy, and expected to attain LEED (Leadership
in Energy and Environmental Design) certification
upon completion.
Innovating
in India
Rakon’s new world-class
manufacturing facility in Bengaluru,
India will enhance our global position
and provide long-term competitive
advantages and significant cost
reductions.
34
SECTION 04 / FUTURE-FOCUSED PATHS TO GROWTHRAKON / ANNUAL REPORT / 2023

RAKON INDIA FACILITY
Located in the aerospace park in Bengaluru, Karnataka,
Rakon India’s new facility will be an integrated
manufacturing Centre of Excellence and one of the
world’s largest and most sophisticated manufacturing
sites for advanced frequency control products.
With ‘Make in India’ at the heart of its operations, Rakon
India is a trusted and strategic supplier to leading companies
across India’s telecommunications, space and defence
industries as well as internationally. The new facility will
support Rakon’s growth strategy through two key objectives:
• research and development towards the strategic design
and manufacture of products to meet the specifications
of the Indian Space Research Organisation (ISRO and
NewSpace agencies, and
• expansion in production and sales to meet the increased
demand for crystal oscillators in the global electronics/
telecommunications, space and defence markets.
Total cost to date is on track for $14-15m, invested in land,
buildings and equipment, with the majority of spend in FY23.
The facility is now largely complete, with most of the plant
and equipment installed and commissioned and customer
qualification of sample products well under way. ISO9001
certification has been achieved, with crystal manufacturing
having commenced in February 2023 and our first OCXO
oscillators produced in March 2023. We have 200 of our
500 Rakon India team members now working onsite.
The new facility is expected to be fully operational by
September 2023, providing a high quality, cost-effective
operating platform for the manufacture of OCXOs for
telecommunications, and other high reliability products,
which will allow significantly greater volumes of products
to be produced.
Significant business continuity planning and risk
management was undertaken through the complex process
of commissioning new plant, qualifying products and
commencing production at the new facility. These processes
have been well managed to date, with customer supply
continuing uninterrupted and supported by safety stocks
of inventory.
World class manufacturing
Inside the new facility – May 2023.
35
SECTION 04 / FUTURE-FOCUSED PATHS TO GROWTHRAKON / ANNUAL REPORT / 2023

The facility has
embraced sustainable
building practices
around the use of water
and energy.
BUILDING SUSTAINABLY IN INDIA
Our new Manufacturing Centre of Excellence in Bengaluru
has allowed Rakon’s vision for sustainability to be put into
practice on a large scale.
Designed under the LEED (Leadership in Energy and
Environmental Design) framework - the world’s most widely
used green building rating system – the facility has embraced
sustainability goals including building practices around the
use of water and energy.
As it was developed, we gave careful thought to all aspects
of building design and operations, manufacturing practices,
logistics and employee health and safety and wellbeing.
With 650 m
2
of class 1,000 (ISO 6) and 10,000 (ISO 7)
cleanrooms, our new building is operated with an integrated
building management system (BMS), enhanced Electrostatic
Discharge (ESD) control system and uninterrupted power
supply and back-up. It also complies with the provisions
of ASHRAE 90.1-2010, making optimal use of natural light
and LED lighting.
Energy consumption is monitored closely, with separate
metering for indoor lighting, outdoor lighting, connected
power, HVAC, and other areas that use high power
consumption. We will use renewable energy purchased
through a third-party agreement to the extent of 70%
of our total consumption, and potentially up to 100%,
subject to our consumption level and regulatory guidelines.
We aim to manage every drop of water - collecting rainwater
as well as harvesting and using sewage treatment plant
water for irrigation. The low-impact green infrastructure used
to mitigate rainwater run-off has also been designed to
provide open spaces for walking, recreation, and gardens.
Our water-saving continues indoors with measures such as
water-saving dual flush toilets and low-flow taps, health
faucets and showers.
Accessibility was a key factor when we chose the site.
Located close to the international airport, logistics hubs
and public transport, our facility is easily accessible.
We provide dedicated bus services for employees as
well as making it easy to use carpooling, green vehicles
and bicycles, by providing facilities such as bicycle stands,
dedicated parking for those that carpool, EV charging
points and shower facilities.
The new facility has already received the thumbs up from
employees, and we we expect to receive our LEED
certification later this year.
36
SECTION 04 / FUTURE-FOCUSED PATHS TO GROWTHRAKON / ANNUAL REPORT / 2023
WORLD CLASS MANUFACTURING

05
SUSTAINABILITY
AND ESG
37
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023

CULTURE AND VALUES
Rakon’s culture of innovation not only drives our next
generation technology, it also connects our people to
the same mission, and to a work environment that
allows them to feel comfortable being themselves
while making meaningful contributions to our goals.
True to Rakon’s origins, starting out as a family
business over 50 years ago, our culture is built on
values that reflect the ‘family’ approach to how we look
after one another. We work hard to ensure our people
can connect to our purpose, vision and values of
passion, respect, courage, perseverance and integrity.
The collective passion among our team for contributing
towards next generation innovation and solutions
leads to collaboration, a commitment to customer and
continued team success. The strong engagement of
Rakon’s team members is reflected in our internal
surveys where employees name product, quality,
technology, and culture as the key things they rate
most highly about Rakon.
PASSION
We’re driven by our energy and
excitement to create solutions
and new possibilities.
RESPECT
We treat others as we expect
to be treated; we listen, value
diverse perspectives and take
nothing for granted.
COURAGE
We’re proactive
and challenge the status quo
with a ‘can do’ approach.
PERSEVERANCE
We’ve the determination to have
another go and achieve the best
outcome as a team.
INTEGRITY
We’re honest, transparent and
strive to do the right thing
by each other and the planet.
OUR VALUES
Our People
People are at the heart of
everything we do.
Whether it’s life-changing applications for our
products or maintaining close ties with customers
and a long-term approach to relationships within
our markets, Rakon’s culture is built around
putting people first, and central to that is our
global team.
We attract high calibre talent, invest in their
development and create a safe and inclusive
environment, focused on empowering our people
to do their best work while supporting them to
look after their well-being.
38
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023

OUR GLOBAL TEAM –
NATIONALITIES IN RAKON FY23
Our global team are located across 10 countries,
representing 46 different nationalities.
Russian
Turkish
Kazakhstani
Iranian
Iraqi
10
Countries
46
Nationalities
DIVERSITY & INCLUSION
Rakon is a truly global organisation, with a workforce
located across 10 countries and representing 46 different
nationalities.
We’re proud of the wide range of skills, backgrounds,
ethnicities and experiences in our global team. They reflect
the diversity of our customers we have and the communities
in which we operate.
We recognise the importance of diversity and inclusion at
the strategic and day-to-day levels in achieving our business
objectives, fulfilling customer needs, and creating a
high-performing, enjoyable and values-driven culture.
Our diversity policy outlines our commitment to a diverse
and inclusive working environment globally. The unique
strengths and characteristics of our team members are
recognised, and we strive to provide an environment across
all of our sites, where everyone can feel comfortable bringing
their authentic selves into the workplace.
Our global talent acquisition and management programmes,
along with our succession management processes, guide our
efforts to attract, develop and retain high calibre candidates
and employees who are aligned to our culture and values.
Australian
Singaporean
Malaysian
Bangladeshi
Sri Lankan
Indian
Nepalese
Chinese
South Korean
Thai
Taiwanese
Vietnamese
Filipino
Fijian
Samoan
Tongan
Cook Islanders
New Zealanders
American
Mexican
Columbian
Peruvian
Swedish
Scottish
English
Dutch
Belgian
French
Italian
Swiss
Bulgarian
Moroccan
Algerian
Tunisian
Nigerian
South African
Zimbabwean
German
Romanian
Palestinian
Bahraini
39
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
OUR PEOPLE / CONTINUED

LEARNING & DEVELOPMENT
A technology pioneer for more than 50 years, Rakon has
always recognised the importance of developing talent and
promoting from within. We strive to provide meaningful
career opportunities for our team members – across all levels
and areas of the business, and particularly in the highly
competitive skills environment. In FY23 we had 46 internal
promotions, representing 16% of all appointments.
Raising up and developing leaders at all levels is a
continuous focus. We provide development opportunities
for our people leaders through a number of different
programmes delivered around the globe. We also offer
professional development across our business and continue
to grow the opportunities available. Through our graduate
programme, we offer support to team members where
appropriate to continue their educational qualifications.
So far, 26 current employees have achieved qualifications
through this programme, whether it be an apprenticeship,
diploma, bachelors’ degree, masters or PhD qualification.
Our yearly graduate programme is run globally and
allows our new graduates to sample different parts of the
business, eventually settling in an area most suited to their
capabilities and interests. Across the global business we
partner with multiple technical institutes to ensure we have
a varied range of skills, backgrounds and experiences joining
our team.
1000+
TOTAL GLOBAL WORKFORCE
213
PEOPLE HAVE WORKED
FOR RAKON FOR 15+ YEARS
(22% OF GLOBAL TEAM)
46
EMPLOYEES PROMOTED
INTERNALLY (16% OF
ALL APPOINTMENTS)
HEALTH, SAFETY AND WELL-BEING
Rakon’s enduring commitment to the health, safety and
wellness of our team means we have established practices
to promote a safe and healthy working environment globally.
Each location is compliant with local health and safety
legislation, and we are continually focussed on education and
training, and identifying safety improvement opportunities.
Over FY23, two Lost Time Incidents (LTIs) were recorded
(compared to seven in FY22) and 31 incidents were
recorded (compared to 47 in FY22). These numbers reflect
the positive impact of our ongoing education and training
efforts, as well as the implementation of initiatives for
continuous improvement.
EMPLOYEE WELL-BEING
Supporting and looking after the well-being and mental
health of our employees is at the core of Rakon’s culture.
We regularly review and implement new initiatives designed
to promote and improve workplace wellness, so that our
people can monitor and maintain personal well-being, and be
at their best within the workplace and in their personal lives.
These initiatives include:
• Flexible working, including a move globally to hybrid
working where employees can perform some of their
roles from home. At our manufacturing operations,
employees are able to request shift adjustments to
accommodate personal circumstances
• Access for employees to Rakon’s outsourced
Employee Assistance Programme (EAP) or similar
counselling services
• Mental Health ‘First Aid’ training for people leaders
• Online seminars on well-being, stress management,
boosting mental health and personal wellness available
for all employees
• Regular check-ins from managers to their team members
and anonymised employee surveys focused on feedback
around how they are and what else we could be doing to
better support our teams and people.
40
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
OUR PEOPLE / CONTINUED

Board and
Management
profiles
41
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
OUR PEOPLE / CONTINUED

42
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
Our Board
Lorraine Witten
CHAIR AND INDEPENDENT DIRECTOR
BMS (Hons); CFInstD; FCA
Appointed 2017
Lorraine is a professional director with
extensive experience in technology and
Information Communications Technology
(ICT) sectors, as well as strategy and
entrepreneurship.
She is Chair of NZX listed Move Logistics
and a director of Mercury and New Zealand
private company vWork.
She is a Chartered Fellow of the
New Zealand Institute of Directors and a
Fellow of Chartered Accountants Australia
and New Zealand (CAANZ).
Keith Watson
INDEPENDENT DIRECTOR
NZCE (Telecom); CMI
Appointed 2018
Keith is a professional director with
substantial governance and leadership
experience in technology and engineering
companies across Asia Pacific, the
Americas, Central Europe, UK, Australia
and New Zealand.
He is currently Chair of the New Zealand
Institute of Economic Research (NZIER) and
ECL Group and a director of Acumen Trust,
Acumen New Zealand and Counties Power.
He is a Chartered Member of the Institute of
Directors in New Zealand.
Steve Tucker
INDEPENDENT DIRECTOR
BMS; FCA; CMInstD
Appointed 2021
Steve is a professional director with
extensive governance and leadership
experience in the technology sector,
including Deputy Chief Executive of
Gallagher Group.
He is currently Chair of Gallagher Holdings
and Goodnature, and a director of HJ
Asmuss and Co, Taska Prosthetics and
5th Element. He is also Chair of Caprine
Innovations NZ.
Steve is a Chartered Member of the Institute
of Directors in New Zealand and a Fellow of
Chartered Accountants Australia and
New Zealand (CAANZ).
Sinead Horgan
INDEPENDENT DIRECTOR
BComm; MAcc; CMInstD; FCA
Appointed 2022
Sinead is a professional director with
significant experience in finance, strategy
development, risk management and M&A
across Europe, the Americas, Asia, Australia,
and New Zealand.
She is a director and Chair of the Audit and
Risk Committees of FMG (Farmers Mutual
Group), Bank of China (NZ) and EcoCentral.
She is also a director or trustee of a number
of other private companies and not-for-
profit organisations.
She is a Chartered Member of the
New Zealand Institute of Directors and a
Fellow of the Institute of Chartered
Accountants Ireland.

43
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
Brent Robinson
EXECUTIVE DIRECTOR
Hon FIPENZ
Appointed 1991
Brent’s 43 years at Rakon includes
establishing global operations and
markets and almost 36 years as Managing
Director/CEO.
Brent is an Honorary Fellow of the Institute
of Professional Engineers New Zealand and
was awarded the New Zealand Hi-Tech
Trust – Flying Kiwi Award in 2011.
Brent is also a director of Quantifi
Photonics Limited.
OUR BOARD
Yin Tang (Tony) Tseng
DIRECTOR
Hon Master NTUST
Appointed 2017
Tony is the current Chair of Siward Crystal
Technology Co. Limited, a substantial
shareholder (12.23%) in Rakon.
He has more than 30 years of experience
in the frequency control product industry,
having founded Siward in 1988 and grown
the company to become one of the
industry’s global leaders.
Tony is a director of Securitag Assembly
Group Limited.
Keith Oliver
INDEPENDENT DIRECTOR
BE (Hons)
Appointed 2017
Keith is a professional director and business
advisor with an extensive management,
governance and investment background in
NZ technology companies operating in
international markets in Asia, Europe and
the Americas.
He is currently the Executive Chair of
Blackhawk Tracking Systems, a director and
business advisor with Alto Capital and a
director of AoFrio (formerly Wellington Drive
Technologies) and private company vWork.

44
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
Dr Sinan Altug
CHIEF EXECUTIVE OFFICER
PhD (EE); MBA; MSc (EE); BSc(EE)
Sinan joined Rakon in 2002 and
became CEO in April 2022. Prior to
this, he was COO where he led the
company’s global operations to
sustainably and profitably meet
increasing customer demand,
delivery and quality requirements.
Sinan has previously been
Managing Director of Rakon’s
European businesses based in
France, and Global Business
Development Director based in the
US. Prior to joining Rakon, Sinan
held various management positions
in the frequency control product
industry, including Director of
European Operations for
Champion Technologies.
Brent Robinson
CHIEF TECHNOLOGY OFFICER
Hon FIPENZ
Brent has been with Rakon since
1979. As Chief Technology Officer,
Brent oversees Rakon’s technology
development and innovation.
He has 43 years’ experience in the
design and manufacture of crystals
and oscillators, and has included
leading the development of Rakon’s
leading products and technologies.
Brent was Managing Director and
Chief Executive Officer for almost
36 years, until April 2022.
Under Brent’s leadership, Rakon has
grown into a global company and
recognised leader in the frequency
control product industry.
Anand Rambhai
CHIEF FINANCIAL OFFICER
CA, BCom
Anand joined Rakon in January
2012 and was appointed CFO
in November 2018. He brings
strong leadership, commercial skills
and in-depth business knowledge
to the company. As CFO he is
responsible for Rakon’s finance,
information systems and investor
relations functions.
Anand’s previous experience
includes financial and management
roles with organisations including
Sony, British Telecom and Deloitte.
Anand is a member of Chartered
Accountants Australia and
New Zealand (CAANZ).
Darren Robinson
CHIEF MARKETING OFFICER
Dip Export Marketing
Darren has led Rakon’s sales and
marketing function since 1990 and
has been instrumental in the
company’s expansion into new
markets, its commercialisation of
new applications and its
development of business
relationships with many Fortune
500 companies.
Through his in-depth understanding
of Rakon’s markets, Darren also
plays an integral role in steering
the company’s R&D efforts, guiding
product development teams to
develop solutions and meet new
requirements in emerging
applications and solving
customer problems.
Margo Thomas
GENERAL MANAGER
GLOBAL PEOPLE AND CAPABILITY
BA, PGDip, DipTchg, PGCertC
Margo joined Rakon in January
2016 and is responsible for Rakon’s
Human Resources (HR) strategy,
policies and processes, including
organisational alignment, talent
acquisition, leadership development,
change management, employment
relations and health and safety.
Prior to this, Margo was General
Manager of People and Capability
New Zealand. She has more than
20 years’ experience working in HR
including senior HR positions in a
range of industries with Crowe
Horwath, Spark, Westpac and
New Zealand Post.
Management team

45
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
Michael McIlroy
ADVANCED TECHNOLOGY
MANAGER – GLOBAL ENGINEERING
BSc
Michael joined Rakon in 1991 and
became Advanced Technology
Manager in September 2018 where
he heads the global activities,
working alongside the global R&D
teams, for research and
development into new technologies
and IP in products, resonators,
semiconductor ASICs and
associated manufacturing process
technology. Prior to this he led the
Research & Development team in
New Zealand.
Michael has previously been General
Manager of Engineering and NZ
Manufacturing Manager and has
played a key role in the growth and
expansion of Rakon into a global
business known for its industry
leading technology and innovations.
MANAGEMENT TEAM
Scott Stemper
GLOBAL QUALITY MANAGER
BSc (EE)
Scott joined Rakon in January
2015. He leads the development
and improvement of quality
processes and systems to enhance
Rakon’s drive to be the leading
provider of world-class frequency
control products.
Scott’s background includes ten
years as Global Quality Manager
with Raltron Electronics Corporation
and 20 years with CTS Frequency
Controls in oscillator product
engineering and quality
management roles.
He has also held senior quality
management positions with
L3 Technologies and D&S
Consultants Incorporated.
Scott is a member of the of the
American Society for Quality (ASQ).
Maureen Shaddick
GENERAL COUNSEL AND
COMPANY SECRETARY
LLB, BA
Maureen joined Rakon in November
2018 and provides legal, company
secretarial and regulatory advice
and support. She has more than
25 years’ experience as a
commercial lawyer and governance
adviser in private practice,
corporates and not-for-profit
organisations in New Zealand,
London and Dubai.
Maureen was the General Counsel
and Company Secretary of Genesis
Energy from 2003 to 2016. She is
the Chair of Cancer Research Trust
New Zealand and has been a
Trustee since 2003. She has also
held a number of other not-for-profit
governance roles.
Cliff Hand
GENERAL MANAGER OPERATIONS
BSc (Mat. Eng)
Cliff first joined Rakon in 2018,
managing the company’s global
integration strategy, before returning
to the company in 2022 as General
Manager Operations NZ.
In this role, he is responsible for the
performance of the New Zealand
business unit as well as driving
several global strategic initiatives
such as global product allocations
and manufacturing excellence.
Cliff is a seasoned senior executive
and business consultant with
25-plus years of experience in
business management,
manufacturing, operations, supply
chain, HS&E, project management,
performance and risk management.
He holds qualifications from the
University of Cape Town, University
of Auckland and Melbourne
Business School, with a focus on
engineering, business management
and organisational leadership.
Arun Parasnis
MANAGING DIRECTOR, RAKON INDIA
BEng (Elects & Comm); CPIM (APICS)
PGDip IB; PGDip Strategy
Arun joined Rakon in October 2018
and is responsible for overseeing all
business functions at Rakon India.
He has more than 30 years’
experience in the electronics
industry, overseeing a range of
functions including engineering,
operations, business development
and profit and loss management.
His electronics experience includes
electronic components, consumer
electronics and Electronics
Manufacturing Services (EMS).
Prior to joining Rakon, Arun was the
Vice President of Cyient. He has
also held senior positions at Radiall
India, Jabil Circuit India and Vishay
Components India (formerly the
Philips Electronics Passive
Components division).

46
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
Driving sustainability
through our business
Consistent with our belief that
connectivity can play a major role
in the future sustainability of our
planet, our vision for sustainability
is simple – to support people
and the planet through the
connected future. This focus is
increasingly embedded in our
decision-making and behaviour,
and is closely aligned with our
business strategy.

ENVIRONMENT
• Increasing understanding of our carbon footprint
and developing our GHG Scope 1 and 2 baselines
• Making our first climate disclosure in accordance
with TCFD disclosure approach, to support
preparation for mandatory reporting in 2024
• Increasing understanding of our waste generation
and water usage and developing our baselines
• Putting our vision for sustainability into practice
on a large scale at our new Manufacturing Centre
of Excellence in Bengaluru, India.
SOCIAL
• Fostering health and safety and well-being practices and
reporting across global operations for healthy workforce
and safe workplaces
• Regular employee engagement surveys and Values
Workshops held with each of our global teams
• Review of Diversity and Inclusion Policy, Whistleblowing
(Protected Disclosure) Policy, and Delegations Policy to
foster workplace culture and diversity and organisational
efficiency.
• Review and enhancement of Rakon’s Supplier Code of
Conduct to support ethical supply chain and focus on
quality, environment, labour practices, management
systems and governance
• Continued contribution to local communities through
staff-initiated activities reflecting staff interest and values.
GOVERNANCE
• Review of Board and Committee Charters to
reflect oversight responsibility and strategic focus
on ESG and climate-related matters
• Review of risk management framework to ensure
effectiveness for managing and reporting key
strategic and operational risks including
climate-related risks.
FY23 PROGRESS
We are pleased to have made good progress over the
past year in our sustainability journey, including our
environmental, social and governance (ESG) reporting.
Here we highlight our main areas of focus and achievements
for FY23, with further details provided on pages 50 to 56
and in our Climate Report on pages 128 to 135.
In FY24 we will build on these achievements and focus
further on initiatives and activities that address our material
ESG topics related to our products, supply chain, operations
and people. Enablers which support our progress will include
identifying opportunities for sustainability through innovation
in product design, ongoing engagement with stakeholders
and assigning roles and responsibilities across the
organisation to support ESG and climate change
initiatives and activities.
47
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
DRIVING SUSTAINABILITY THROUGH OUR BUSINESS

We have further developed our ESG framework over the
past year to support our sustainability goals. In this section
we share our material ESG issues and how they impact our
business, our priorities for improvement and our climate
reporting roadmap.
We also provide an update of our performance and progress
over FY23. This includes, for the first time, performance in
the key environmental areas of carbon, waste and water as
well as an update on our progress towards compliance with
the External Reporting Board (XRB)’s climate disclosures
regime for FY24 onwards.
MATERIALITY ASSESSMENT – WHAT OUR
STAKEHOLDERS THINK
In FY22 we undertook an assessment to identify the most
important ESG aspects for Rakon. This assessment entailed:
• a desktop review of Rakon’s own information and
external information, including current trends, peer
analysis, media reports
• stakeholder engagement with institutional and other
investors, potential investors, senior management
and staff
The output of this work in 2022 is illustrated in the
Materiality Matrix shown here. The matrix illustrates the
relative importance ratings of each ESG related topic to our
external and internal stakeholders. These ratings inform the
priorities outlined in the table on page 49 however we
remain focused on all ESG related topics as these are
fundamental to sustainability and how we govern and
manage our global business and operations.
Decarbonisation
Responsible sourcing of materials
Modern slavery
Water
management
Transparency and
communication
ESG governance
Community engagement
Data security
Product quality and safety
Climate adaptation and resiliency
Green/sustainable Finance
Customer relationship management
Investor engagement
IMPORTANCE TO STAKEHOLDERS (EXTERNAL)
Responsible selling
Employee health,
safety and
wellbeing
Employee
engagement and
growth
Diversity and inclusion
Sustainable materials and product design
Waste and hazardous
materials management
Risk management
Disclosure and compliance
to legal and regulatory
requirement
Waste and circularity
RESULTS OF OUR MATERIALITY ASSESSMENT
IMPORTANCE TO RAKON (INTERNAL)
•
Environment
•
Social
•
Governance
MOST MATERIAL TOPICS
Our ESG framework
48
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023

OUR PRIORITY AREAS
The table below summarises and defines the environmental,
social and governance topics that Rakon and its
stakeholders believe are most material to the company.
They are wide-reaching and impact most parts of
our operations.
Sustainable products
Sustainable operations
Ethical supply chain
An engaged, healthy, diverse
and capable workforce
Risk management
TopicSub-topics
• Sustainable materials and product design
• Waste and circularity
• Decarbonisation (scope 3)
• Waste and hazardous material management
• Water management
• Decarbonisation (scope 1 and 2)
• Climate adaptation and resiliency
• Responsible sourcing of materials
• Modern slavery
• Responsible selling of products
• Employee health, safety and well-being
• Employee engagement and growth
• Diversity and inclusion
• Risk management
• Disclosure
• Compliance to legal and regulatory requirements
Definition
Minimising the negative impact of our products and
embracing innovation to positively impact the environment.
Sustainable and efficient use and protection of resources in
the operating processes, particularly manufacturing.
Adapting to the physical impacts of climate change to
maintain a resilient business model.
Ethical sourcing of raw materials, especially in relation to
conflict minerals, and labour, particularly in partner
manufacturing plants outside New Zealand where labour
laws differ. Ensuring sales of products that may have a
military end use comply with international humanitarian law
and trade laws.
Cultivating a strong, healthy workplace culture that attracts,
engages and develops high performing teams that embrace
diversity of thought.
Maintaining robust risk management processes.
ENVIRONMENT
SOCIAL
GOVERNANCE
From these topics, we have identified the areas where we
should focus our efforts to improve sustainability. As we
establish and implement improvement initiatives, we are
concurrently developing our framework to support the
measurement and reporting of our performance across
these areas.
49
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
OUR ENVIRONMENTAL, SOCIAL AND GOVERNANCE FRAMEWORK

We recognise the importance of protecting
the environment and our Corporate
Environmental Policy sets out our
commitment to achieving environmental
best practice.
We are highly conscious of the need to protect the world’s
environment and be efficient in the use of energy and
natural resources. We aim to develop environmentally
friendly products and technologies through our design
and development processes, and endeavour to use
appropriate methods to dispose of and treat our wastes
to prevent pollution.
Our Environmental Management System (EMS) is central to
meeting our customers’ expectations, achieving continuous
environmental improvement and maintaining compliance to
applicable laws and regulations relating to the protection of
the environment and the welfare of our employees.
As part of this commitment. Rakon is certified to ISO14001
standard at its sites in Auckland, New Zealand and
Bengaluru, India. This standard sets out the requirements
for our EMS.
We have been reporting to CDP (formerly known as the
Carbon Disclosure Project ) since 2010. The information we
measure across our global operations includes refrigerant
use and the consumption of carbon dioxide, electricity, fuel
and natural gas. CDP, along with other ESG focused
platforms enables our customers to access information about
our environmental practices, management of risks and
opportunities and improvement initiatives and to support
their assessment of their own carbon footprint.
Over the past year we have made good progress on
improving our processes for measuring and reporting our
environmental performance. Our environmental metrics
include measurement of greenhouse gas (GHG) emissions,
electricity usage, waste to landfill and water consumption.
With these improvements we will be able to focus on setting
meaningful targets to support our environmental
management goals.
Improving our environmental impact
50
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023

GREENHOUSE GAS (GHG) EMISSIONS
Rakon’s most meaningful climate change metrics relate to
GHG emissions. We currently measure our Scope 1 (Direct )
and Scope 2 (Indirect Energy) GHG emissions and have
a project under way to measure and disclose Scope 3
(Other Indirect ) GHG emissions for FY25 and onwards.
Our latest GHG emissions across our global operations
by calendar year and recent history are shown in the
graph below:
Currently Rakon’s principal sources of GHG emissions are
electricity usage in our operations to run offices, factories
and manufacturing equipment and processes and the use
of carbon dioxide in our production process.
The decrease in total Scope 1 & 2 GHG emissions between
2021 and 2022 has been driven mainly by reduced carbon
dioxide use in production processes at Rakon New Zealand
(Scope 1).
Total Scope 1 & 2 GHG emissions intensity (tonnes of CO
2
e
per $m of revenue) has reduced due to these factors as well
as continuous improvement activity to find energy
efficiencies in production processes and other activities.
The CO
2
reduction was primarily achieved as a result of the
commencement of a project to switch from the use of CO
2

to N
2
in the temperature testing ovens used in the
New Zealand manufacturing process. This decrease was
partially offset by increased energy usage as production
output increased.
Targets
While we measure our GHG emissions and have
commenced initiatives focused on reducing our Scope 1
and 2 GHG emissions, we have not yet set reduction targets
that apply across our global operations.
Our new manufacturing facility in India is expected to
impact Rakon’s Scope 1 and 2 GHG emissions, however
we do not yet understand the full extent of this impact.
Consequently, our initial Scope 1 and 2 emissions reduction
targets will be established in the next financial year once the
facility is fully operational.
Rakon is working towards becoming a Toitū carbonreduce
certified organisation and expects to work closely with Toitū
Envirocare to audit and measure our GHG emissions and
implement a reduction strategy as we work towards
achieving certification. Our targets will build on the GHG
emissions reductions achieved since 2021 as well as
aligning with the goals of the Paris Agreement. They will
also be realigned and based on financial years.
0
2000
4000
6000
8000
20222021
Scope 2 emissions (tCO
2
e)
Scope 1 emissions (tCO
2
e)
Scope 1 & 2 emissions intensity (tCO
2
e per $m of revenue)   
tCO
2
e
tCO
2
e per Sm
0
10
20
30
40
50
60
GHG EMISSIONS
51
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
IMPROVING OUR ENVIRONMENTAL IMPACT

OUR MANUFACTURING OPERATIONS
New Zealand
Our New Zealand manufacturing operation retained its
ISO14001 (Environmental Management System
Certification) during the year with zero non-compliances.
New Zealand’s EMS is regularly reviewed following the
Plan-Do-Check-Act methodology, and a continuous
improvement approach is taken with EMS targets based
on the last two years of data.
During the year, we commenced a project to convert our
temperature testing ovens (for oscillator production) from
using CO
2
to using N
2
. While the conversion is not yet
complete, we are already seeing a significant reduction in
our CO
2
usage, and expect that once fully complete, it will
further contribute to ongoing CO
2
reduction efforts.
While the percentage of waste recycled has increased,
the tonnage of waste to landfill has also increased.
The increase in waste to landfill has been largely due to
recycling options in New Zealand being curtailed as a result
of overseas recycling agencies ceasing import of recycling
from New Zealand, and some of Rakon’s plastic waste
(e.g. plastic reels) having a fire retardant compound which
is incompatible with recycling. To date, efforts to introduce
more environmentally friendly alternatives have not been
successful. There are ongoing initiatives in place to recycle
e-waste, metal parts and other plastics. Rakon remains
focused on formalising and achieving a waste reduction
target for the New Zealand operation.
Measure
Calendar Years
2019202020212022
Waste to landfill (tonnes)13.0217.725.5829.51
Measure
Calendar Years
2019202020212022
Waste recycled (tonnes)*N/aN/a21.4129.35
Percentage of waste
recycled*
N/aN/a45.6%49.9%
*-N/a – not applicable that year
Electricity consumption correlates to the relative production
volumes of products and is affected by some products
requiring more electricity to manufacture than others.
Measure
Calendar Years
20212022
Electricity Consumption
(MWh/Year)
4,8304,785
Total water consumption in New Zealand increased by
0.6% against the prior year, reflecting a different product mix
and associated water requirements for production and staff.
Our New Zealand operation’s principal use of water is in the
manufacturing cleanrooms, as well as for general staff and
cleaning requirements.
Measure
Calendar Years
2019202020212022
Water usage
(cubic metres)
11,39110,98211,03311,122
52
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
IMPROVING OUR ENVIRONMENTAL IMPACT / CONTINUED

France
In France we are continuing to focus on energy reduction
and have practically completed the installation of LED
lighting across all sites during the year. At our Pont-Sainte-
Marie operation, we have commenced initiatives to reduce
energy required for heating, including the reduction of heat
loss through windows and through reprogramming the clean
room electronic handling system to reduce energy
consumption outside working hours.
At our operation in Gennevilliers, we have successfully
completed a compliance project to reduce fume exhaust on
production machines.
India
Rakon’s existing facilities in Bengaluru are certified
ISO14001 (Environmental Management System
Certification), and in 2022 these facilities obtained
ISO14001 re-certification with zero non-compliances.
In the past year, Rakon India has been particularly focused
on the construction, fit out and certification of its new
manufacturing facility.
Our new world-class manufacturing Centre of Excellence is
incorporating sustainable building practices around the use
of water and energy. New sustainability targets will be set
for the facility and disclosed in next year’s report.
53
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
IMPROVING OUR ENVIRONMENTAL IMPACT / CONTINUED

CLIMATE ROADMAP
In December 2022, the External Reporting Board (XRB)
established a mandatory Climate-Related Disclosures (CRD)
regime in New Zealand. Rakon, as an NZX-listed entity, is
required to report under the CRD regime for the first time, for
its financial year ending on 31 March 2024.
As we prepare for mandatory reporting in FY24, our
approach this year is to report in accordance with the
recommendations of the TCFD where we can. Our detailed
report is on pages 128–135. The table below provides
PillarAction
FY23FY24FY25
Governance
Disclose Rakon’s governance around
climate-related risks and opportunities
Commence climate change education programme•
Update structures and documentation to include climate change risk•
Establish board level monitoring of climate change action programme•
Include climate-related risks & opportunities in strategy processes at board and management levels•
Include climate-related performance metrics in remuneration policies•
Strategy
Disclose actual and potential impacts of
climate-related risks and opportunities
on Rakon’s business, strategy, and
financial planning
Complete initial review of expected climate change impacts on strategy & business model •
Identify significant climate change risks & opportunities at global level•
Carry out initial global level scenario analysis for 3 scenarios•
Update the initial review of climate change impacts on strategy & business model•
Expand scenario analysis and the global level assessment of climate change risks & opportunities to include local factors•
Start transition planning activity for the net zero future•
Quantify estimates of current and anticipated financial impacts for material climate risks & opportunities•
Complete initial transition plan for the net zero future•
Risk Management
Disclose how Rakon identifies, assesses,
and manages climate-related risks
Establish climate change risk management framework•
Develop and refine climate change risk management framework•
Metrics & Targets
Disclose the metrics and targets used to
assess and manage Rakon’s relevant
climate-related risks and opportunities
where such information is material
Measure and disclose Scope 1 & 2 GHG emissions•
Establish initial Scope 1 & 2 GHG emissions reduction targets•
Begin process to measure Scope 3 GHG emissions•
Introduce other metrics & targets required for CRD, including cross-industry metrics, industry-based metrics, other relevant KPIs•
Review initial Scope 1 & 2 GHG emissions reduction targets•
Complete the first annual measurement of Scope 3 GHG emissions, disclose and set initial reduction targets•
a timeline for the actions we are taking as we prepare for
mandatory reporting.
54
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
IMPROVING OUR ENVIRONMENTAL IMPACT / CONTINUED

Rakon recognises that visibility of
labour practices, sources of materials
and end use of products are important
issues for many of our stakeholders
including customers, suppliers, investors,
employees and regulators.
In addition to addressing these matters in our Supplier
Code of Conduct and broader Business Code of Conduct,
Rakon has codes and policies which set out how we
approach the sourcing of materials, products and labour
as well as who we sell to.
Key codes and policies include our Supplier Code of Conduct,
Trade Compliance Policy, Conflict Minerals Statement,
Slavery and Human Trafficking Statement and
Whistleblowing (Protected Disclosure) Policy.
Rakon’s standard terms of procurement require our
suppliers to comply with our Supplier Code of Conduct
and Conflict Minerals Statement as updated from time to
time. Our Supplier Code of Conduct addresses our high
expectations regarding our suppliers’ responsibility for and
attention to business ethics, health and safety, environment
and sustainability, employees’ rights and quality and
management systems.
In FY23 we reviewed our existing code to ensure it is readily
understood and will support our own commitment to
continuous improvement and evidence-based responsible
procurement including in relation to climate change and
Modern Slavery. The Supplier Code of Conduct supports
engagement with suppliers such as occurred in FY23 when
a survey of 61 of our direct and indirect material vendors all
responded confirming they do not buy or are not aware of
indirectly buying out of the Xinjiang region in China.
Rakon’s standard terms of sale require our customers’
compliance with applicable trade laws and our Trade
Compliance Policy sets out Rakon’s own responsibility for
compliance with trade laws, including export controls and
restrictions in each of the countries in which Rakon designs
and manufactures products, including application for export
permits or licences in relation to some exports.
Rakon’s products are used in a wide range of applications
in many different industries and market sectors.
With customers in the defence industry, we are particularly
focused on ensuring we comply with rules designed to
control the export of goods that may have a military end
use in all the countries where we do business.
Our Trade Compliance Policy states that we will not sell
products which could be used in weapons of mass
destruction (or their means of delivery); or in cluster
munitions or for terrorist activity. Additional customer
due diligence is required to be undertaken where Rakon
is aware a product may have a military end-use.
Staff training, business management system protocols and
senior management oversight and escalation processes
support compliance. Compliance training with global sales
team members was undertaken in FY23. Compliance
assurance reporting is required by the Board bi-annually.
Our supply chain
People and practices
55
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023

As a global employer, Rakon is committed
to actively and positively contributing
to the communities where it operates.
Over the past year we have supported
a range of initiatives that improve
well-being or assist with education
and career prospects.
India
In India, under local corporate responsibility requirements,
our Rakon team has identified two local charitable
organisations to support and invested over $50,000 to
support their provision of health-related services to the
elderly and the young in its local area. In particular, the
Rakon India team has forged a strong partnership with the
Swami Vivekananda Youth Movement (SVYM), which
provides palliative care services for 148 patients living with
or dying from advanced progressive illness such as cancer,
paralysis, kidney failure, cerebral palsy and severe
neurological disorders.
We also support a local aged care facility, Shri Sarva Dharma
Sharanalaya Trust, which provides assisted living, medical
support, and other special services for senior citizens with
chronic and progressive health related requirements.
France
In France, we participate in a government initiative to
support engineering students by offering intern programmes
and financial assistance with their studies. This creates
opportunities for financially disadvantaged students to
pursue an engineering career as well as broadening the pool
of talent available for high tech companies such as Rakon.
We also support new employees with accommodation
assistance. This year, our French team held a fundraising
day for the Men’s Prostate Cancer Fund, and donated to the
“Paris Curie Institute”.
United Kingdom
Our Research and Development centre in the United
Kingdom, has continued its long-term assistance of a local
charity radio station at the nearby Princess Alexandra
hospital through advertising support.
New Zealand
In New Zealand, we regularly provide study opportunities
to young engineering students by offering scholarships to
Auckland University’s Engineering school which aligns with
our long history of fostering talent and our continuing
strategic focus on technology leadership.
We also support a number of New Zealand charities each
year, in particular those focused on improving wellbeing
and quality of life of our tamariki (next generation) and
with strong connections to our Rakon team members.
Over the past year, we have donated to NZME Auckland
Special Children’s Christmas Party, Radio Lollipop Appeal,
Burn Support Group Charitable Trust, Remuera Lion’s Club,
Kidney Kids, Koru Care, Kids Big Day Out and Westpac
Helicopter Trust. Our New Zealand team also held a
fundraising day for Gumboot Friday with proceeds helping
to provide youth counselling.
Making positive social contributions
Rakon India team members meeting residents at the Shri Sarva Dharma
Sharanalaya Trust facility.
Shri Sarva Dharma Sharanalaya Trust.
56
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023

57
SECTION 05 / SUSTAINABILITY AND ESGRAKON / ANNUAL REPORT / 2023
The Board of Rakon Limited is committed
to conducting business in the right way
and maintaining the highest standards of
corporate behaviour and accountability.
The Board regularly reviews Rakon’s
corporate governance framework and
supports best practice reporting.
The Board confirms that in the year to 31 March 2023,
the company’s corporate governance practices complied
with the recommendations in the NZX Corporate
Governance Code (17 June 2022). The Board recognises
the Code has been updated with effect from 1 April 2023
and will review its practices against the new Code and
report on its compliance with the same in the company’s
2024 Annual Report.
The information in this Annual Report is current as at
23 May 2023 and has been approved by the Board.
The key corporate governance documents referred to
in this report are available on Rakon’s website at:
www.rakon/investors/corporate-governance
Rakon is listed on the NZX Main Board and is subject to
regulatory control and monitoring by both the NZX and
the Financial Markets Authority (FMA).
Corporate Governance
CODE OF ETHICAL BEHAVIOUR
We are committed to ensuring the highest standards of
honesty and integrity are maintained by our Directors,
employees, suppliers, contractors and consultants, in all
activities conducted by, or in the interests of, Rakon.
Corporate policies, guidelines, procedures and practices
address how we support our people, respect communities,
act in the interests of our investors, conduct our business and
protect the environment. This includes our requirements in
relation to health, safety and wellbeing, and ethical behaviour.
Ethical standards and guiding principles are set out in our
Business Code of Conduct. The high standards of honesty,
integrity and ethical conduct which Directors are required
to maintain, are also set out in the Board Charter which is
regularly reviewed by the Board.
Rakon’s Business Code of Conduct sets out expectations
of ourselves and our suppliers of how we operate and do
business. It includes respect for, and compliance with, all
laws in the countries in which we operate and universally
recognised standards for the environment, human rights,
labour and ethics.
Rakon has processes in place to ensure all new and existing
employees have awareness and understanding of the
Business Code of Conduct and other company policies.
These include an Employee Handbook which is provided to
all new employees. The Handbook is regularly reviewed and
updated and is available on the in-house portal, along with
all human resources and governance policies and
procedures. Training sessions with managers and team
leaders ensure they are well equipped to guide and support
their teams. Rakon recognises it is necessary to use a range
of methods and approaches over time to promote awareness
and obtain assurance of understanding and compliance.
The Business Code of Conduct requires Directors and
employees to promptly report material breaches of the Code.
Rakon’s Whistle Blowing (Protected Disclosure) Policy,
reviewed in December 2022 supports the expectation that
employees should report breaches of the Business Code of
Conduct and policies, as well as other wrongdoing or
suspected wrongdoing. The policy provides a framework
and process for safe reporting and is accessible by all
employees on the in-house portal.
Rakon’s Financial Product Trading Policy addresses the
risk of insider trading in Rakon securities by Directors and
employees. Additional trading restrictions apply to Restricted
Persons as defined in the policy, including Directors and
certain employees. Regular reminders of the purpose and
meaning of this policy are provided to staff and Directors
including advice in relation to the commencement and end
of restricted trading periods. Details of Directors’
shareholdings as at 31 March 2023 are set out in the
Shareholder Information section on page 125. The policy is
also available on the in-house portal and notices about
restricted trading periods and reminders about the rules
regarding financial product trading and related policies are
provided to employees.

58
SECTION 05 / SUSTAINABILITY AND ESG
CORPORATE GOVERNANCE / CONTINUED
RAKON / ANNUAL REPORT / 2023
BOARD COMPOSITION AND PERFORMANCE
The Board is ultimately responsible for Rakon’s strategic
direction and oversight of Rakon’s management, with the
aim of increasing shareholder value and ensuring the
company’s obligations are met.
The Board operates under a written charter which sets out
the structure of the Board and the procedures for the
nomination, resignation and removal of Directors; and
outlines the respective responsibilities and roles of the
Directors and management. It also identifies procedures to
ensure that the Board meets regularly, conducts its meetings
in an efficient and effective manner and that Directors are
fully empowered to perform their duties and to fully
participate in meetings of the Board.
Rakon’s day-to-day management and operation is delegated
by the Board to the Chief Executive Officer. This delegation
and further sub-delegation to senior management and their
direct reports is subject to financial controls and limitations
advised from time to time as set out in Rakon’s Delegation of
Authority Policy and further detailed in specific business unit
Delegated Authorities Schedules.
In discharging their duties, Directors have direct access
to and may rely upon Rakon’s senior management and
external advisers.
Directors have the right, with the approval of the Chair or by
resolution of the Board, to seek independent legal or financial
advice at the company’s expense to assist them in the
proper performance of their duties.
While the appointment of new Directors is the responsibility
of the whole Board, the People Committee Charter outlines
the Committee’s particular duties and responsibilities in
relation to the selection and appointment of new Directors
and succession planning.
The People Committee is responsible for identifying
and recommending candidates for the role of Director,
taking into account such factors as it deems appropriate,
including tenure, capability, skill sets, experience, diversity,
qualifications, judgement and the ability to work with
other Directors.
The Board recognises a skills matrix can assist with
identifying and assessing existing Directors’ skills and
competencies as well as new skills and competencies which
may be needed to meet Rakon’s future governance
requirements. The skills and experience the Board has
determined are important to Rakon’s strategic direction and
those held by the current Directors are shown on this page.
The number of elected Directors and the procedure for their
appointment, retirement and re-election at annual meetings
are set out in Rakon’s Constitution and the NZX Listing Rules.
All Directors, including any executive Director, must retire
by rotation and if eligible, may stand for re-election at the
third annual meeting, or three years after their last election,
whichever is longer. Any Director appointed since the
previous annual meeting must also retire and is eligible
for election. To ensure a better cadence of director rotation
the director rotation schedule has been adjusted to provide
for two of the directors to retire and stand for re-election,
if eligible, earlier than their three-year term since their
last election.
DIRECTORS’ SKILLS MATRIX
100%
75%
60%
75%
70%
70%
65%
ENTERPRISE LEADERSHIP
CORPORATE GOVERNANCE
FINANCE AUDIT & RISK
INDUSTRY TECHNOLOGY
STRATEGIC VALUE CREATION
M&A
INTERNATIONAL
MANUFACTURING
70%

59
SECTION 05 / SUSTAINABILITY AND ESG
CORPORATE GOVERNANCE / CONTINUED
RAKON / ANNUAL REPORT / 2023
All new Directors enter into a written agreement with the
company in the form of a letter of appointment. The letter
sets out the key terms and conditions of their appointment.
The letter addresses tenure, duties and responsibilities and
requirements outlined in relevant legislation, the NZX Listing
Rules, Rakon’s Constitution and the Board Charter and is
supported by general rules and practice.
Information about each of Rakon’s Directors is available
on the Rakon website and on pages 42–43. The company
maintains an interests’ register and particulars of the
entries made in the interests register during the year ended
31 March 2023 in relation to Directors’ interests are
disclosed in the Shareholder Information section on
pages 125–127.
Board meetings and attendance
The Board meets as often as it deems appropriate, including
sessions to review the company’s performance against
agreed plans, and to review Rakon’s strategic direction and
forward-looking business plans. Video and/or phone
conferences are used as required to accommodate overseas
based director, director travel requirements and inclement
weather restricting local travel.
The table below sets out Directors’ attendances at the
Board, Audit and Risk Committee and the People Committee
meetings during the year ended 31 March 2023. In total,
there were 11 Board meetings, four Audit and Risk
Committee meetings and three People Committee meetings.
Directors also attended the two day FY23 Strategy
Workshop and the 2022 Annual Meeting.
Board
Meetings
Audit & Risk
Committee
People
Committee
Strategy
Workshop &
Annual Meeting
Total number of meetings held11433
Lorraine Witten11433
Sinead Horgan114–3
Keith Watson11133
Steve Tucker114–3
Keith Oliver 11–33
Brent Robinson 10––3
Roger Yao: Observer for Yin Tang Tseng
1
11––3
Bruce Irvine
2
1–––
1 Roger Yao is an observer for Director Yin Tang (Tony) Tseng, with the consent of the Board. Tony is the current Chair of Siward Crystal Technology Co.
Limited, a substantial shareholder (12.3%) in Rakon and is actively involved in the governance of Rakon.
2 Bruce Irvine resigned with effect from 1 April 2022 after chairing the meeting of the Board held on 1 April 2022.

60
SECTION 05 / SUSTAINABILITY AND ESG
CORPORATE GOVERNANCE / CONTINUED
RAKON / ANNUAL REPORT / 2023
Diversity
At Rakon we are committed to having a workforce that
reflects the diverse communities in which we operate
and our customer base, and to ensuring that the unique
strengths and characteristics of our employees are valued
and celebrated.
We inherently recognise the importance of inclusion and
diversity in helping to deliver our business objectives, fulfil
the needs of our customers and create a high-performing,
values-driven culture. Committing to inclusion and diversity
means incorporating inclusion and diversity into our talent
acquisition, talent management, succession management
processes, and into our values and culture.
Rakon’s Diversity and Inclusion Policy requires Rakon to set
objectives for measuring and promoting diversity and
inclusion within the company. Progress on these objectives
is required to be monitored and assessed by the People
Committee and the Board at least annually.
The Board set two key diversity and inclusion objectives
which were continued through FY23, aimed at reflecting the
undertakings and intentions of the Diversity and Inclusion
Policy in Rakon’s planning, recruitment and remuneration
practices:
• Ensure succession plans for critical business roles are
aligned to Rakon’s Diversity and Inclusion Policy and
represent the diversity in the Rakon business; and
• Collect and analyse data based on gender with a view
to designing and implementing a three-to-five-year plan
to achieve gender pay equality.
In setting these objectives, we have recognised that
alignment with our Diversity and Inclusion Policy must be
addressed in the ongoing development of succession plans
for critical business roles, and that gender pay equality is a
key indicator of a diverse and inclusive organisation. Rakon
gender data across all of its global teams is set out in the
People section pages 38–40.
As at 31 March 2023, women represented 29% (FY22: 25%)
of Rakon’s Directors and 22% (FY22: 22%) of Rakon’s
Officers (as defined in NZX Listing Rule 3.8.1(c)). A
quantitative breakdown of the number of male and female
Directors and the number of male and female Officers as at
31 March 2023 and as at 31 March 2022 is set out in the
table below. In that table the Chief Technology Officer, who is
an Executive Director, is included as a Director, and Officers
are the Chief Executive and other direct reports of the Chief
Executive Officer having key functional responsibilities.
Date of
determination31 March 202331 March 2022
Directors
Females229%225%
Males571%675%
Officers
Females222%222%
Males778%778%
Director Development
All Directors are encouraged to undertake appropriate
training and education to build on their governance and
directorship skills. Appropriate training and education
includes: attending presentations on changes in governance,
legal and regulatory frameworks; attending technical and
professional development courses; and attending
presentations from subject matter experts and Rakon
advisers. Senior management provide updates to the Board
on relevant industry and company issues. A number of
Rakon’s Directors are chartered members of the
New Zealand Institute of Directors. During the year, Rakon
directors undertook training and development relevant
to climate change reporting, capital structure and
takeover response.
Board, Committee and Director Evaluation
The Board Charter requires the Board to regularly consider
individual and collective performance, together with the skill
sets, training and development and succession planning
required to govern the business. Following changes to the
Board and the appointment of the new Chief Executive as
announced in late FY22, the Board focused on the
establishment of the new governance team. The Board
initiated a Board Evaluation process in 2023 using the
Institute of Directors’ Kickstart Programme. Following receipt
of the results of the evaluation survey, the Directors have a
programme of work to identify the areas of focus for
continuous improvement in the Board’s administration,
operation and stewardship.

61
SECTION 05 / SUSTAINABILITY AND ESG
CORPORATE GOVERNANCE / CONTINUED
RAKON / ANNUAL REPORT / 2023
The charters of the Board’s Committees require the
Committees to undertake a self-review process, including
receiving feedback from the Board as a whole and reporting
to the Board on the outcome of the reviews. Review and
evaluation checklists are used by each Committee for the
review and evaluation exercise. Self-review of each
Committee is scheduled to be undertaken in FY24 being a
year since the membership and chairs of the Committees
were changed.
Independence
The Board currently comprises seven Directors: six
non-executive Directors, and one executive Director. The
executive Director holds the position of Chief Technology
Officer. In order for a Director to be independent, the Board
has determined, among other things, they must not be an
executive of Rakon and must have no disqualifying
relationships. The Board records guidance for determining
independence in its Charter and follows the guidelines in the
NZX Listing Rules.
By reference to this guidance, the Board considers that as at
1 April 2023 a majority (five) of the Directors are
independent of the company, and do not have any interests,
positions, associations or relationships which might interfere,
or might be seen to interfere, with their ability to bring
independent judgement to the issues before the Board.
None of the independent directors has been a director for
more than six years, none has a significant shareholding in
Rakon and none has been an employee of the company, the
auditor or an adviser. The Board accordingly confirms:
Lorraine Witten (Chair), Keith Oliver, Keith Watson, Steve
Tucker and Sinead Horgan are independent; and Brent
Robinson and Tony Tseng are not independent.
The Board recognises that from time to time it is appropriate
for the Board to confer without executive directors or other
senior management present, and for there to be separate
meetings of independent directors, and builds these sessions
into the annual Board work plan.
The Chair of Rakon is an independent Director. While the
Board Charter does not require the Chair of the Board to be
an independent Director, if the Directors appoint a fellow
Director as Chair who is not independent, then they are
required to disclose this fact in the company’s annual report,
along with reasons justifying such a decision. The Rakon
Board Charter records the Board’s intention that the Chair
and Chief Executive Officer shall not be the same person.

62
SECTION 05 / SUSTAINABILITY AND ESG
CORPORATE GOVERNANCE / CONTINUED
RAKON / ANNUAL REPORT / 2023
COMMITTEES
The Board has delegated certain activities to
committees to assist in the execution of its
responsibilities. The current committees of the
Board are the Audit and Risk Committee and
the People Committee (Committees).
The Committees meet as required and have terms
of reference (charters), which are approved and
regularly reviewed by the Board, and are available
on Rakon’s website.
Audit and Risk CommitteePeople Committee
Membership
• Sinead Horgan (Chair),
• Lorraine Witten,
• Steve Tucker
• Keith Watson (Chair),
• Lorraine Witten,
• Keith Oliver
Purpose
Ensure oversight of all matters related to Rakon’s financial
accounting and reporting, monitoring the processes
undertaken by external auditors and internal audit activity,
operational risk management and compliance with all
financial corporate governance requirements. Its duties
and responsibilities include:
• Review of consolidated financial statements.
• Oversight of compliance with financial reporting rules
and accounting policies.
• Review of performance of the external auditor, their
appointment and removal.
• Oversight of risk management framework, risk
policies, risk appetite and risk reviews including
climate-related risks.
• Review of the adequacy and effectiveness of
internal controls.
• Oversight of insurance programme and treasury
management.
Assist the Board in establishing coherent human resources,
remuneration and Director nomination policies and practices,
to support the successful management of Rakon. Its duties
and responsibilities include:
• Review of human resources strategy, organisational
structure and management succession planning,
• Review employee incentive schemes, remuneration for
the Chief Executive, senior management and Directors.
• Oversight of compliance with human resources and
health and safety legislation and policies.
• Oversight of Director succession planning, selection,
appointment and evaluation.
• Review induction and training programmes for new
and existing Directors.
• Review and monitor setting and implementation of
diversity and inclusion policy and objectives.

63
SECTION 05 / SUSTAINABILITY AND ESG
CORPORATE GOVERNANCE / CONTINUED
RAKON / ANNUAL REPORT / 2023
The Committees review and analyse policies and monitor
their implementation, which are within their terms of
reference. They examine reports, information and proposals
and, where appropriate, make recommendations to the full
Board. Committees do not take action or make decisions on
behalf of the Board unless specifically mandated by prior
authorisation from the Board to do so.
All members of the Board receive the minutes of each
Committee meeting and all Directors are entitled to attend
any Committee meeting. In pursuing its duties and
responsibilities, each Committee is empowered to seek
any information it requires from employees and to obtain
independent legal or other professional advice. Each
Committee is required to report to the Board after each
meeting of the Committee.
The Audit and Risk Committee’s Charter provides that the
Committee must be comprised solely of Directors of Rakon,
have a minimum of three members, have a majority of
independent Directors and have at least one Director with an
accounting or financial background. The Chair of the Audit
and Risk Committee is not the Chair of the Board and all
three of the current members are independent Directors and
have professional accounting qualifications and financial
and business experience.
Management may attend Committee meetings at the
invitation of the Committee Chairs. Under the
Whistleblowing (Protected Disclosure) Policy a person
seeking to make a disclosure about a wrongdoing or
suspected wrongdoing may contact the Chair of the Audit
and Risk Committee.
The People Committee’s work plan reflects duties and
responsibilities that would otherwise be covered by separate
remuneration and nomination committees. This approach is
sensible from an administrative and resourcing perspective
and facilitates regular oversight of both remuneration and
nomination matters through the year. Currently Rakon health
and safety matters are the responsibility of the full Board
with oversight of legislative compliance and policy by the
People Committee. All three of the People Committee
members are independent Directors.
Other Committees
The Board Charter specifically requires the Board to assess
regularly whether there is a need for any further standing
committees. The Board expects that any committee
established should operate under a written charter.
From time to time, special purpose committees may
be formed to review and monitor specific projects with
senior management.
Takeover response guidance
Rakon has not developed a specific policy governing
the Board’s response to a takeover situation. In FY23, the
Board participated in a training session provided by external
legal advisers and has access to comprehensive current
Takeovers Guidance in the Directors’ Resource Centre. In the
case of a takeover offer, Rakon will form an Independent
Takeover Committee to oversee disclosure and response and
engage expert legal and financial advisers to provide advice
on procedure.
REPORTING AND DISCLOSURE
Rakon’s Directors are committed to keeping investors and
the market informed of all material information about the
company and its performance, in a timely manner.
Continuous Disclosure
Rakon has a Continuous Disclosure Policy to ensure that
material information is identified, reported, assessed and
disclosed promptly and without delay to the market. This
policy is regularly reviewed and circulated to Directors and
employees, along with further guidance on the application of
the policy and additional reminders about its purpose and
importance. Continuous disclosure is a standing agenda item
for each Board meeting. At each meeting the Board
considers whether there is any relevant material information
that should be disclosed to the market and minutes the
outcome of that consideration whether or not any disclosure
obligation is identified. In addition to all information required
by law, Rakon also seeks to disclose sufficient meaningful
information, including financial and non-financial information,
to ensure stakeholders and investors are kept well-informed
about the company.

64
SECTION 05 / SUSTAINABILITY AND ESG
CORPORATE GOVERNANCE / CONTINUED
RAKON / ANNUAL REPORT / 2023
Financial information
Our business teams are responsible for implementing
and maintaining the appropriate accounting and financial
reporting principles, policies and internal controls designed
to ensure compliance with accounting standards and
applicable laws and regulations.
The Audit and Risk Committee oversees the quality and
integrity of external financial reporting, including the
accuracy, completeness, clarity, balance and timeliness of
financial statements. It reviews Rakon’s full and half-year
financial statements and makes recommendations to the
Board concerning accounting policies, areas of judgement,
compliance with accounting standards, stock exchange
and legal requirements, and the results of the external audit.
All matters required to be addressed, and for which the
Committee has responsibility, were addressed for the
reporting period ended 31 March 2023.
For the financial year ended 31 March 2023, the Directors
believe that proper accounting records have been kept which
enable, with reasonable accuracy, the determination of the
financial position of the company and facilitate the
compliance of the financial statements with the Financial
Markets Conduct Act 2013. The Chief Executive Officer and
Chief Financial Officer have confirmed in writing to the
Board that Rakon’s external financial reports present a true
and fair view of the company’s financial position in all
material aspects.
Rakon’s full and half-year financial statements for the current
year and the past seven years, are available on our website.
Non-financial information
Having implemented a change in the approach to annual
reporting in FY22, Rakon combines its non-financial
reporting into the Annual Report, recognising the
interdependence of financial and non-financial matters to the
long-term sustainability of the business. During FY22 Rakon
carried out a formal process to understand Environmental,
Social and Governance (ESG) priorities including
engagement with stakeholders who helped inform the focus
of the development of our formal framework for mature
sustainability reporting. Through FY23 Rakon has continued
to follow the roadmap developed in 2022.
As anticipated in our FY22 annual report, the principal focus
for FY23 has been to ensure Rakon is prepared for
mandatory climate reporting in 2024 under the Climate-
related Disclosures (CRD) regime in New Zealand
established by the External Reporting Board (XRB). In
addition, Rakon has continued its focus on developing its
wider ESG Framework and pursuing initiatives that address
our material ESG topics. For further information on our
progress through FY23 see page 20.
REMUNERATION
Rakon applies a fair and equitable approach to
remuneration having regard to the financial position of
the company and the external environment.
For full information please refer to the Remuneration section
at page 120.
RISK MANAGEMENT
Rakon is committed to the identification, monitoring and
management of material financial and non-financial risks
associated with all its business activities in the interests
of all of its stakeholders.
The Board has overall responsibility for Rakon’s system of
risk management and internal control and delegates
day-to-day management of risk to the Chief Executive
Officer. The Audit and Risk Committee provides additional
and more specialised oversight of the company’s risks to
support the Board’s oversight.
As recorded in the Audit and Risk Committee’s Charter, the
Board delegates specific responsibilities to the Committee to
ensure appropriate risk assurance processes are
implemented. The Committee’s work plan and meeting
schedule provide dedicated time for review of the company’s
risk management framework. The Committee is required to
report its findings to the full Board.
The Board and management are focused on the continuous
improvement and effectiveness of Rakon’s risk management
framework. The Board recognises that risk is anything that
could potentially impact on Rakon’s ability to achieve its
business goals and objectives and therefore risk
management is interconnected with the Company’s strategy
and business plan.
In FY23 Rakon engaged external risk advisory services to
assist with a review of its risk management framework
including its risk policy, risk categories, risk appetite, risk
rating methodology, risk register, risk mitigation plans and
risk reporting.