Rakon 2023 Annual Meeting Speeches and Presentation

16 August 2023

Rakon (RAK) Annual Meeting Chair’s Address
Tena Koutou. Tena Koutou. Tena Koutou Katoa.

Welcome everyone, both here in Auckland and joining us virtually, to the Rakon’s 2023 Annual
Shareholders Meeting. I am Lorraine Witten the Chair of your Board of Directors.

Thank you for joining us today to spend time focusing on the Rakon business.

I am pleased to confirm that we have a quorum of shareholders and therefore I declare the
2023 Annual Shareholders Meeting open. I also advise that online questions and voting is also
now open.

I am joined today by most of our senior management team, and our Board members.

I would like to introduce you to our Board. We were very pleased to welcome a new director to
the Board this year; Jung Meng Tseng (or JM as he’s known), from Siward. JM is standing for
election later in the meeting. He was appointed in July to fill the casual vacancy created by the
retirement of Tony Tseng who served as a director since March 2017. I and the Board thank
Tony for his contribution.

I am also joined by Independent Directors: Sinead Horgan - Sinead leads our Board committee
on Audit & Risk; Keith Watson - Keith leads the Board committee on People & Culture; Steve
Tucker; and Keith Oliver; and Executive Director Brent Robinson who is also the company Chief
Technology Officer. Both Keith Oliver and I are standing for re-election this year.

Our board is made up of 5 independent Directors plus a representative each from our 2 largest
shareholders, the founding Robinson family, and Siward Crystal Technology company of
Taiwan.

Also on the podium is our Chief Executive Sinan Altug, and our Chief Financial Officer, Anand
Rambhai. Finally, I would like to welcome our auditor Indy Sena from PwC, and representatives
from our solicitors Bell Gully, and our bankers ASB.

Rakon is a global technology innovator and market leader in our field. Our frequency control
products and timing solutions are critical to managing the flows of data that connect people,
networks and machines. We enable the lightening speeds of 5G telecoms networks, the
precision positioning for autonomous vehicles and synchronisation for cloud computing and

much more. What makes our products unique is they continue to work in extreme heat or cold;
under extreme pressure; with critical accuracy and stability of performance in those
environments.

So crucial that not only have NASA used our products on their Perseverance robot on Mars, but
this year in April, also the European Space Agency launched their mission, to study the moons
of Jupiter, with Rakon product onboard providing precise references for several of the scientific
instruments on board. You can’t get better reference sites than those.

I am very pleased to be leading us through the highlights of the company performance for the
2023 financial year. I will then pass to Sinan Altug our Chief Executive who will go through in
more detail how we are navigating through the current macro-economic environment and
positioning ourselves to execute on the significant opportunities that exist across all our
markets. Following that we’ll have time for questions and resolutions.

Our business is in a phase of development and growth, and FY23 was the first year of our 3-year
business plan. In our Shareholders meeting last year we laid out in detail the 3-year plan and
investment strategy for expanding and improving the Rakon business. We’ll review the
significant progress we have made delivering and executing against the plan, the investments
we’ve made to grow shareholder value, and update you on the market fundamentals and
outlook.

Firstly, let’s move to the business highlights for the last financial year. FY23 was another very
good year for Rakon, with an EBITDA result within the guidance we upgraded in March. We
delivered on our plan including our strategy for top line growth to be above 15% and achieved
16% revenue growth in our core business. Pleasingly this growth was achieved in each of our 3
business units – a result that shows Rakon’s competitive advantage and ability to execute and
deliver results while navigating challenging market conditions.

Consistently achieving at least 15% revenue growth in our core business, year on year, is a goal
of our business plan.

Strong gross margins are a key driver of good performance and an important indicator of the
health of our business. In a year when the cost of materials and wages were increasing with
global inflation, we were successful in maintaining stable gross margins.

The investment in the India Manufacturing facility is part of the focus on profitable growth and
delivering strong gross margin. It is a very important foundational investment to provide
capacity for our future growth and cost control for margin management. I’m very pleased to be
confirming that the India facility is built, paid for and operational. Standing here last year we
were facing the risks of building in a foreign country, with building material costs going up every

week, labour shortages and the prospect of moving our production lines while keeping up
deliveries to customers. The completion of the project on time and budget, while keeping our
customers happy, is a reflection on our talented management team here, and in India. I
acknowledge their expertise and commitment to completing this project, and they are rightly
proud of what has been achieved. Sinan will play us a video during his presentation, that walks
us around the facility, so you get an insight into the strategic investment we’ve made.

You may have read the ongoing media about the global semi-conductor industry and the
withdrawal by US manufacturing from China. In the Aerospace Park in Bengaluru where we
have built, we are seeing a significant number of new facilities underway, some transferring
from China. We are clearly ahead of the curve with our decision to invest into India.

In a significant financial milestone for our company, we declared our first fully imputed
dividend of 1.5 cents per share, which you should have received by now. We continue to take a
prudent approach to debt and capital management. During the year we paid back $10.7m of
debt, which was borrowing taken out to cover the costs associated with building the India
facility. We have also established an undrawn debt facility with our banker ASB.

As I mentioned, last year was the first year of our 3-year business plan. We completed all FY23
milestones. The growth plan outlines our investment approach to position Rakon for continued
future growth. To sum up, FY23 was another strong year for Rakon, with good progress made
on our business plan.

Looking now at FY24 and beyond. There is no doubt we have a challenging year ahead of us. We
are navigating through some short-term market uncertainty, especially with respect to our
Telecoms customers. This will require Rakon to ‘cut our cloth’ accordingly, adjust operations
and reduce costs to align with financial performance. However, with an eye on the future it is
critical we prudently protect the path towards long-term growth.

We are now in the second year of our business plan, and we will maintain the investments
required for that plan, even though we are cutting expenses elsewhere.

Last year we laid out the Growth Strategy in some detail, but I think it’s worth reiterating the 4
key areas of focus. Firstly, that we continue to grow our core business, that’s the
Telecommunications, Space & Defence and Positioning businesses. Our goal is to deliver 15%
compound annual growth in revenue across this core.

Secondly, maintaining our product leadership by engaging in the design phase with our
customers, investing in smart R&D people and continuing to collaborate with the top tier
customers and entities such as NASA, the European Space Agency and the Indian Space

Research Organisation. By leading and being designed into future solutions we ensure longevity
of our business, and are more effectively able to hold our market pricing.

Thirdly is expand into new markets. I’ve spoken in prior years about the need to build out
another strong industry vertical, like the position we have in Telecommunications. Over the
long term we want to have a strong Telecoms business but also be able to rely on other
industries in times, like this year, where Telecoms is under performing.

We are focusing on the Space market, where we have decades of experience. We will both
expand into new geographies as well as move up the value chain with our products, developing
not just components but also more complex sub-systems. This year we launched our first space
sub-system, the Global Navigation Satellite System Receiver, and we have won our first
commercial satellite deployment, which is now successfully in space. A significant achievement.

We are also continuing to evaluate and consider acquisition opportunities to expand into the
US market. This would provide access to top-tier US customers through local manufacturing,
and strengthen existing customer relationships. With the push by Governments to ‘buy local’
this is a sensible move that gives us better market access. The US is also the largest market for
Space, and by expanding into the US, we will increase our Total Addressable Market. We will be
conservative with any acquisition, making sure we can fund it and integrate it appropriately.
We are also working on organic expansion into the US, focusing on getting the appropriate
market certifications underway.

The fourth pillar to our strategy is becoming a world class manufacturer. We have
manufactured for many years and been highly successful with our innovation, but we could not
claim that we have manufactured at scale to the highest standard. We now have the
manufacturing facility to achieve this, and delivering on this initiative is key to maintaining our
market position and profitability.

So that’s where we’re going and what we are doing to get there. Sinan will speak to the
strategy in more detail.

Paying a Dividend has been a discussion point between the Board and Shareholders for some
time. At the end of the financial year the Board assessed Rakon's future capital requirements
and considered a wide range of capital management options.

The careful management of cash flow through the financial year enabled borrowings to be
repaid, a strong balance sheet to be maintained and growth initiatives to be funded. Alongside
this Rakon saw lower operational risk, as we reduced impacts from raw material issues, and
completed our Indian facility. With an eye to maximising shareholder value, we strive to

balance the distribution of profits to our shareholders with retaining enough reserves for future
growth and investment.

The Board deemed this the appropriate time to commence dividends and we were pleased to
declare a fully imputed dividend of 1.5 cents per share for FY23. Your Board anticipates that
even in the current macro-economic environment, and during the investment and execution of
our 3 year business plan, this level of dividend is sustainable.

With the commencement of dividend payments, we also introduced a Dividend Reinvestment
Plan, providing shareholders with the option to reinvest their dividends should you wish to do
so.

We continue to improve our sustainability and reduce our impact on the planet. Last financial
year we achieved a step reduction in our Green House Gas Emissions, by initiating the transition
of one of our manufacturing processes from using CO2, to using liquid nitrogen. We will next
transition the process in India, delivering further reductions.

We have also designed our India Manufacturing facility as a green building, which includes
recycling 100% of the storm and wastewater on the site. We expect to attain the internationally
recognised LEED certification, which is (Leadership in Energy and Environmental Design).

You may have seen that our Annual Report included improved information on Climate Related
Disclosures. We are on track to comply with the new standards and disclosures - like most
companies this is a journey of improvement that we will be on for some years.

As part of ensuring we are a resilient organisation, through the last financial year Management
and Board conducted a full Risk Management Review, looking at the risks the business faces
including the strategic, operational, cyber and business risks. We are due to conclude this
process shortly.

In conclusion, our business has made significant progress with its Development and Growth
plan. We have achieved the milestones we promised in FY23, and delivered a strong financial
result across the core business. We are well underway with our pipeline for new products, we
have established the foundation for world class manufacturing at scale and are achieving the
milestones for new markets.

I would like to thank all of Rakon’s people, our great management team and my fellow Board
members for their support and contribution as we steer Rakon forward. And I thank you, our
shareholders, for your continued support, engagement and investment in the business.

Although FY24 will be challenging, we intend to continue with the business plan investments,
and focus on better efficiency and cost reduction. We remain confident in our medium to long
term growth drivers.

I will now pass the meeting over to Sinan our Chief Executive.

Rakon (RAK) Annual Meeting Chief Executive’s Address
Tena Koutou Katoa.
Shareholders, both here in the room and joining us virtually, welcome and thank you for joining
us today.
I’m pleased to address you and share our accomplishments from a year marked by unique
challenges and opportunities.
This is always an important date on Rakon’s calendar and we value this opportunity to speak
directly with you, our shareholders, to provide an update on your company’s performance, and
to hear and respond to your feedback.
We have several members of our senior management team here with us today. As I call your
name would you please stand? Adam Robinson, our Head of Global Sales, Cliff Hand our GM
Operations and Maureen Shaddick our General Counsel and Company Secretary. Please feel
free to approach any of our team for a chat after the meeting.
FY23 was another remarkable year - the best year ever for our core business with continued
growth in global demand for Rakon’s industry-leading products across all our key markets. This
growth in the core business more than offset the impact of the one-off chip shortage contracts
completed during the year.
Underlying EBITDA stood at $42.2 million, representing an EBITDA margin of a robust 23% -
marking FY23 as Rakon’s second-best earnings year ever.
The continued revenue and margin growth of the core business over the last five years
highlights Rakon’s successful strategy execution and the trust customers have in our products,
innovation and customer service, regardless of where they are in the world. The result also
reflects our ability to adapt to market shifts, maintain resilience, and remain dedicated to our
strategic growth initiatives.
At the FY23 results announcement we spoke in detail about the strong revenue and gross
margin growth achieved across Rakon’s three core markets. Here's a distilled snapshot of those
achievements.
In Telecommunications revenue surged by 17% and gross margin by 14%, fueled by the 5G
rollouts and enhancements in 4G networks.
In Space and Defense revenue increased by 18%, accompanied by a 16% growth in gross
margin, propelled primarily by the rising demand for high-reliability space applications.
And in Positioning, revenue expanded by 21%, and gross margin by 10%, bolstered by solid
growth in the industrial and autonomous applications coupled with a remarkable resurgence in
the locator beacon market.

Moving now to the short-term outlook. Over the past three years we’ve observed our
telecommunications and positioning customers build up higher-than-normal inventories in
response to global supply chain disruptions.
Our FY24 Underlying EBITDA guidance range of $26-34 million, provided at the FY23 results
announcement, was based on the projection that this inventory build up would affect
telecommunication and positioning customer demand for the first half of the financial year.
In the first quarter of FY24, our three core markets all performed slightly above our
expectations. We observed strong demand in the space and defence sector with higher-than-
expected product orders in FY24 and a robust order book extending out to FY25. And the
positioning sector's outlook has remained in line with our original guidance.
However, market dynamics have evolved for the telecommunications segment. Our tier-1
telecom infrastructure customers have since indicated that their customers, the mobile
network operators, are adopting a more tempered investment approach for the remainder of
the year in terms of their capex investments for 5G rollout infrastructure.
This means a slower drawdown of stockpiled inventory, elongating the timeline for inventory
normalisation, which we now project will extend into the second half of FY24.
While the precise revenue implications for us remain fluid, we estimate this represents a
potential risk of up to $10 million to our FY24 EBITDA guidance.
It is important to note that we have not lost any market share. In fact, to the contrary, we are
continuing to gain market share and secure new design wins. Over the past 12 months we have
achieved over 30 key new design wins in our core markets, which is the highest of any
preceding 12-month period. These new design wins represent a potential of up to $100 million
of new additional revenue as these new projects ramp up in the coming 12-24 months.
We're in continuous dialogue with our customers and refining our understanding and estimates
of the rate of inventory normalisation. We anticipate providing an updated EBITDA projection
at the half-year results, if not sooner.
Our assessment of the market conditions aligns with recent results announcements by some of
our largest telecommunications customers including Ericsson, Nokia, Samsung and Juniper.
They highlight macro-economic factors and their customers' inventory adjustments as drivers
behind the temporary slowdown and anticipate some projects from mobile operators to be
rescheduled from calendar year 2023 to 24.
Both Ericcson and Nokia anticipate a recovery by early 2024 or sooner – a sentiment currently
mirrored across all of our tier-1 telecom infrastructure customers. And demonstrating how
dynamic market conditions currently are, Nokia have also recently announced an acceleration
of its 5G roll out in Australia and New Zealand.

Other 5G infrastructure providers in the North American market have also expressed optimistic
views, saying the temporary demand slowdown is consistent with past network generation
investment cycles for 3G and 4G, with greater densification of 5G infrastructure still yet to
come in the cycle. This ebb and flow also meshes well with our prior experience in mobile
networks over the last 20 years.
In FY23 we saw our operating expenses increase $9.5 million. This reflected additional
expenditure on our growth plan, the tight labour market and inflationary pressure across all of
our cost base.
As we continue to invest in our growth plan and navigate the short-term risks to revenue it is
critical that we run the business as efficiently as possible. We have been making proactive
adjustments for the last few quarters, which have now started to bear fruit.
We have been reducing our operating expenses and enhancing our working capital. We're also
investing our efforts into optimising our global manufacturing processes. As part of our
operational efficiency drive, we've had to make the difficult decision to scale down our staff. It's
never an easy step, but it's crucial for our long-term sustainability. We're implementing
strategies to improve our working capital, ensuring that our financial health remains robust.
We've reprioritized capital expenditure, reallocating our resources to the most impactful areas.
Moreover, we're diligently working on reducing inventory.
All these actions have a bottom-line impact. We project the steps we have taken so far will
result in annualised savings of $6 million in comparison to our operating plan with the full-year
impact realized from FY25 onward.
As we streamline and optimise, we are mindful to maintain the sensitive balance between
managing overheads while also investing in capabilities that will allow us to grow. Balancing
near-term financial performance objectives while safeguarding our long-term growth trajectory
is our target.
Lorraine has already spoken to our four pillars of our growth strategy and the areas of
investment we are focused on. We've been rigorously driving our growth roadmap that
emphasizes the importance of not only amplifying our core business but also further expanding
our product and technology leadership, penetrating new markets, and epitomizing world-class
manufacturing.
In FY23, we've channeled approximately $24 million into fortifying our strategy, and we're set
to invest another $19million in the current financial year. The capital we're deploying promises
attractive returns. We're talking about an estimated Return on Investment for our four key
investment areas – that I will talk to in the next slide - that range from an impressive 100% to
175%.

And these investments substantially increase the portion of the market we have a competitive
advantage in – potentially increasing our Serviceable Addressable Market by over $1.5 billion to
almost $5 billion once we complete the three year plan.
To amplify our growth, we're actively exploring acquisitions and inorganic strategies. This
approach isn't just about expansion—it's about gaining wider market reach, harnessing cutting-
edge technology and talent, and deepening our local operational presence, all of which are
pivotal in driving us closer to our visionary objectives.
Our 3-Year growth strategy, launched last year, has been a compass for our actions and
investments, steering us towards significant growth potential. Rakon delivered a ‘perfect
scorecard’ of growth milestones achieved in FY23. The progress we have made by diversifying
into higher margin products has increased the opportunities available to us. Impressively we
estimate we have increased our serviceable addressable market by 10% in just one year to
almost $3.7 billion.
As we progress into year two of the plan we are making good progress with the FY24
milestones. Rakon’s self-designed Semiconductor Chips are crucial to delivering superior
product performance and driving higher margins. Products using our chips contributed to 45%
of FY23 revenue at 15%+ higher average margins compared to designs without our
semiconductor chips. This is a testament to our successful strategy implementation.
Our new chips that have been and will be released in FY24 (Niku and MercuryX) are on track to
represent at least 25% of Rakon’s revenue in the next 4 years. In line with this we have
reprioritised our semiconductor chip roadmap. We have rescheduled the release of our Vulcan
chip to FY25 and have instead prioritised development that will generate ‘quicker wins’ by
swiftly addressing some of the changing market requirements where our competitors remain
weak. These include enhanced MercuryX and a new line of semiconductor chips products that
will leverage our existing technology and capability to unlock a new market segment, which we
will provide more information in due course. We are continuing our investment to expand
capability to design and reduce time to market. And we also relocated our UK design team to a
new Cambridge facility, strategically placed in the heart of the semiconductor ecosystem
enhancing our access to rare semiconductor design resources and capabilities.
We have also continued our investments in XMEMS nanotechnology in New Zealand. Products
that include our XMEMS nanotechnology have been approved in several Tier 1 telecom
reference designs and we are seeing strong edge computing market interest as well. Very
significantly, for Rakon’s Telecom products it is estimated that XMEMS nanotechnology based
designs will grow and by FY28 could contribute earnings of some $18 million.
We are also focussed on growing and strengthening our Space and Defence business as this
sector continues to perform. We are delivering crucial milestones in the NewSpace category,
increasing our presence in the ecosystem and moving up the value chain from a component
supplier to a supplier of subsystems for especially low earth orbit satellites. Rakon’s

development and expansion of our Space product portfolio into higher value Sub-Systems and
Equipment, has tripled our available opportunities, to an estimated $250 million. These
prospects are not mere probabilities; they're tangible opportunities that are in our line-of-sight,
that align seamlessly with our product portfolio and technology.
I'll now play a video that showcases our new facility in India – an important milestone for
Rakon, and a game-changer for our global manufacturing capability. Located in a fast-growing
aerospace manufacturing hub in Bengaluru, India, our new manufacturing centre of excellence
is one of the world’s largest and most sophisticated sites for advanced frequency control and
timing solutions. It both futureproofs and signals Rakon’s long-term commitment to world-class
manufacturing.
As you can see, everything is state-of-the-art. The facility gives us significant room to scale up
operations. It doubles the production capacity of our previous factory and ensures we can
continue to grow and meet the demand for our products, both in India and globally. It also
enhances our research and development specifically for the Indian market, including to meet
the needs of India’s leading Space agency, ISRO, as well as India’s fast-growing commercial, low
earth orbit satellite market.
We designed the building in accordance with leading sustainable building practices around the
use of water and energy, and with attention to employee health and safety, and wellbeing.
Feedback from our Rakon India team has been overwhelmingly positive, and the facility has
now set the standard for our other global sites.
The short term and immediate benefits from our new facility in India include: a cash saving on
rent due to moving out of our leased facilities; reduced overheads across the entire production
process thanks to the state-of-the-art design of the new facility – such as better layout leading
to increased productivity, and updated equipment with greater efficiency; and energy cost
savings due to the sustainable building practices designed into the new facility – for example
the use of renewable energy sources account for around 80% of total consumption.
Longer-term, the facility is set to support improved product margins through optimized
manufacturing cost structures. We intend to maintain and build on this by continuing to invest
in our manufacturing capabilities. This ensures we can adapt and respond to the dynamic
demands of our customers swiftly and efficiently.
In line with this, we have accelerated the process for transferring select product lines from our
France and New Zealand manufacturing sites. It's essential to underline the tangible benefits of
these manufacturing transfers. Our manufacturing strategy has been meticulously planned to
bolster our financial and market positions in three core ways: Improved Overhead Structure,
streamlined operating expenses and competitive Product Costs. As a direct consequence of
these enhancements, we estimate margin improvement from FY25 that will contribute to an
additional $25 million of annualised earnings in FY28. This uplift is not merely theoretical. It
represents Rakon's proactive strategy to enhance shareholder value while ensuring that we

remain competitive and innovative. Our new Bengaluru facility will serve as a critical
manufacturing cornerstone within our long-term growth blueprint. We anticipate long-term
that the annual revenue from our India operations may rise from 25-35% of all revenues
currently, to around 50%. The 2X capacity of the new facility and production diversification will
also lower Rakon’s global production risk and provide additional supply chain certainty for
customers.
I want to emphasise that our NZ business is and will continue to be the very core of Rakon’s
identity, and will remain the heart of Rakon’s culture of innovation. We will continue to invest
in New Zealand to further expand our capabilities in technology innovation and IP creation to
ensure New Zealand remains and thrives as Rakon’s Innovation Centre of Excellence. Our vision
is clear, as Rakon grows in the world stage, our heart will continue to beat strongest in New
Zealand.
Rakon’s medium to longer-term growth fundamentals and drivers remain strong, with
significant market opportunities for Rakon in both core and emerging markets.
Despite the temporary slowdown, the drivers behind the 5G rollout continue. Global 5G
subscriptions are forecast to reach 1.5 billion connections by the end of 2023, and 4.6 billion by
2028. We are working closely with our telecom infrastructure customers and helping to enable
the next evolution of 5G and 6G technologies. Rakon is poised for significant growth in 5G today
and 6G tomorrow, backed by solid foundations and ripe market opportunities.
Space and Defence continues to outperform for Rakon, and the emerging NewSpace / Low
Earth Orbit satellite segment is projected to more than double the space market size and drive
a three-fold increase in the number of active satellites by 2030. Our investments, both in terms
of capital and vision, have been geared towards capturing this growth, enabling us to merge
space-grade performance with high-volume manufacturing. Our endeavors in the NewSpace
segment, underscored by R&D innovations, an expanded product suite, and fostering pivotal
relationships, place us at the middle of this evolution.
We are also seeing strong uptake for our next-generation products incorporating XMEMS
nanotechnology being supplied into the emerging O-Ran, C-Ran, and edge computing
architectures.
And A.I. A.I. is not just a buzzword for us —it's an evolving technology with extensive potential
applications for Rakon. As AI evolves, the demand for dense parallel and distributed processing
is surging, requiring very tight timing accuracy across diverse computing sources. This
synchronization, crucial for real-time parallel computing, aligns perfectly with our expertise and
capabilities. We're diligently tracking the AI trajectory, and while it might be premature to tout
it as an immediate boon for Rakon, we project tangible substantial benefits within the next two
to three years. We are currently working with leading players in AI, helping to enable the next
generation platforms. Our vision is long-term and strategically aligned, and we aim to continue
to be active contributors to the evolution of AI.

Lastly and importantly, our products based on our XMEMS nanotechnology paired with our
next-generation semiconductor chips will play a foundational role in capturing these future
growth opportunities. The synergistic combination of our technologies will continue to drive
improved margins and cost structures for Rakon. Our investments in these areas ensure we
remain on the cutting edge and continue to be a strategic partner of choice for next-generation
applications. Examples include our XMEMS products that are already being qualified into next-
generation 5G equipment, and our space chip – the first radiation hardened semiconductor
chip of its kind to be developed specifically for space and NewSpace applications.
In summary, we are unwavering in our strategic direction and intent while we navigate these
short-term challenges. We have and will continue to take necessary steps to adjust operations,
while our growth strategy stays unaltered, reflecting our commitment to innovation and
sustained value creation for our shareholders.
We remain excited about the future as the underlying growth drivers in our core markets
remain strong and the opportunities significant. We shall continue to work diligently to meet
the expectations of our customers, employees, and you, our shareholders.
Thank you for your continued support. Now, I am going to turn it back to Lorraine for questions.
ENDS

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2023 Annual meeting of shareholders
16 August 2023© Rakon Limited

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33
Chair’s address
Lorraine Witten
Lorraine Witten
CEO

4
Our Board
A strong mix of global experience and technology expertise
BRENT ROBINSON
Executive director
LORRAINE WITTEN
Chair and Independent director
KEITH OLIVER
Independent director
KEITH WATSON
Independent director
JUNG MENG (JM) TSENG
Director
STEVE TUCKER
Independent director
4
SINEAD HORGAN
Independent director

5
Chair’s address
Chief Executive’s review
Shareholders’ questions
Resolutions
General business
5
Agenda

6
FY23 business highlights
Delivery of all milestones in 3-year growth plan and commenced dividends
$10.7mborrowings
repaid
Highest ever core
revenue +16% growth
Indiamanufacturing
facility opened in June
Stable margins
maintainedacross
core markets
All FY23 growth
milestones achieved
in 3-year plan
Dividend declared and
DividendReinvestment
Plan

7
Clear strategy to increase shareholder value

8
Capital management andcommencing dividends
Board anticipates level of dividend sustainable through three-year growth plan
Borrowings repaid
in FY23
$10.7m
$156.9m
$21.7m +16%
Net Cash
$16.5m
Fully imputed Final
Dividend
1.5cps
Dividend Reinvestment
Plan introduced
$14-15m
India facility total
investment
Net Assets
2% discount
to VWAP

9
Building asustainable organisation
Our newresearch and
manufacturing facility in
Indiaincorporates
sustainable building
practices around the use of
water and energy

1010
Chief Executive's address
Sinan Altug

$37m
$39m
$11m
$15m
$23m
$54m
$42m
FY19FY20FY21FY22FY23
Underlying EBITDA
1
CoreTCXO chip shortageAssociate
$19m
$23m
$3m
$4m
$10m
$33m
$23m
FY19FY20FY21FY22FY23
Net Profit
$141m
$164m
$114m
$119m
$128m
$172m
$180m
FY19FY20FY21FY22FY23
Revenue
Core businessTCXO chip shortage
FY23 Strong core business growth offsets chip-shortage business
11
11
Continued growth over last 5 years reflects competitive advantage
1 Refer to note 4 of the FY2023 audited consolidated financial statements for an
explanation of how ‘Non-GAAPFinancial Information’ is used, including a definition of
‘Underlying EBITDA’ and reconciliation to netprofitaftertax (NPAT)
Net Profit
Underlying EBITDA
1
Revenue

12
FY23 key market performance overview
Growth across all our core markets
Telecommunications
FY23 Revenue
Space and DefencePositioning
$101M
pUP17%
Gross margin
$43M
FY23 Revenue
$29M
Gross margin
$20M
FY23 Revenue
$34M
Gross margin
$18M
pUP14%
pUP18%
pUP16%
pUP21%
pUP10%

13
•Core markets performed slightly above expectations in Q1
•Space and Defenceoutlook is strong, withhigher than expectedproduct orders
•Slower drawdown of stockpiled customer inventory in Telecommunications
represents $10m risk to FY24 Guidanceof $26-34m Underlying EBITDA
1
•Industry-wide return to normal inventory levels expected by the end of FY24
13
FY24 outlook
Risk to guidance from slower drawdown of stockpiled customer inventory
inTelecommunications
1 Refer to note 4 of the FY2023 audited consolidated financial statements for an explanation of how ‘Non-GAAPFinancial
Information’ is used, including a definition of ‘Underlying EBITDA’ and reconciliation to netprofitaftertax (NPAT)

14
Focus on enhancing efficiency
Taking action to navigate short-term macro-economic conditions
Efficiency initiatives
•Optimising global
manufacturing processes
•Reducing global operating
expenses
•Recalibrating resources and
cost structures
Annualised cost savings
Initiatives to datewill result
in $6m annualised cost
savings from FY25
(compared tooperating plan)

15
Long-term growth trajectory to build value
Telco market leadership –
products using proprietary
technologies
Space & Defence –market
access in North America
Precision industrial
positioning applications
New technology design-in
Rakon semiconductor chips –
accelerate time-to-market
XMEMS
®
–deliver next
generation products and
performance
Space & Defence –move
upward into equipment and
subsystems
NewSpace
Cloud computing
Autonomous vehicles
A.I.
Targeting key customer
partnerships in new markets
Global Manufacturing
Roadmap
Manufacturing capacity and
capability expansion
Advanced supply chain
management
XMEMS
®
nanotechnology
volume manufacturing
GROW OUR CORE
BUSINESS
MAINTAIN PRODUCT
AND TECHNOLOGY
LEADERSHIP
EXPAND INTO
NE W MARKETS
DELIVER
WORLD CL ASS
MANUFACTURING
S T R AT E G I C A Q U I S I T I O N S S U P P O R T I N G G R O W T H S T R AT E G Y

16
3-year growth roadmap
Achieved all FY23 milestones and making good progress with FY24 milestones
N E W
M A N U F A C T U R I N G
F A C I L I T Y I N I N D I A
R A K O N D E S I G N E D
S E M I C O N D U C T O R
C H I P S
X M E M S
®
N A N O T E C H N O L O G Y
M A N U F A C T U RI N G
N E W S P A C E
B U S I N E S S
FY 2023FY 2024FY 2025
•Construction completed
•Fitout / capacity
expansion
•Existing manufacturing
transfer
•Substantial increase
in R&D and chip
design capability
•Release of Niku
TM
next
generation chip
•Continued investment
in XMEMS
®
capability
•Release of initial
XMEMS
®
based
products
•R&D and supply chain
investment
•Strategic relationships
established
•Select NZ products
transferred
•Select NewSpace
products transferred
•Release of enhanced
MercuryX
TM
•Chip based product
revenue growing to
over 60%
•Volume production of
XMEMS
®
•XMEMS
®
products
qualified into key next
generation 5.5G and
standalone 5G platforms
•Recognised player in
the ecosystem
•Significant orders
secured
•Select French
NewSpace
subsystem modules
transferred
•Chip based product
revenue growing
•Release of Vulcan
TM
next generation chip
•Leadership in targeted
market segments
•Expansion into other
product categories
•Become a top 3
player in subsystems
•Delivery of orders

17
New state-of-the-art facility in Bengaluru, India

18
Future growth and value drivers
18
18
5G with 6G on the horizon
Cloud and Edge computing, data centres
Aerospace and NewSpace ecosystem
Autonomous vehicles and industrial machines
A.I.

19
Summary
Positioned to capture the significant medium to long-term growth opportunities
•FY23 delivered strong core business growth
acrossall core markets
•FY23 growth plan milestones
deliveredandprogressing well on FY24
milestones
•Taking necessary steps to adjust operations to
slowerthan expectedreturn tonormalised
inventorylevels
•Medium to long-term outlook remains
strongandopportunities significant

20
Shareholder questions
20

21
21
Resolutions

22
22
22
Ordinary resolution
Resolution 1:
That Lorraine Witten be re-elected as a director of Rakon

23
23
23
Ordinary resolution
Resolution 2:
That Keith Oliver be re-elected as a director of Rakon

24
24
24
Ordinary resolution
Resolution 3:
That Jung Meng Tseng be elected as a director of Rakon

25
25
25
Ordinary resolution
Resolution 4:
That the total annual remuneration pool for directors' fees
be increased by $73,500 from $530,000 to $603,500pool –
including an increase in amount reserved for use only in
event of significant additional work and attendances

26
Proposed Annual Director Fee and Pool increases
•Non-executive directors' regular annualfees increase by
total of $18,500 (3.62%)
•Increasewithinranges recommendedby Strategic
Pay
•Fees market competitive and reflect median
positioning in NZ market
•Increase to fees reserved for significant additional work
and attendances (from $20,000 to $75,000)
•Any use of reserved pool would be onlyfor
asignificant event
•Significant event can require work and attendances
over a long period well in excess ofdirectors'
usualworkload
•$20,000notadequate compensation if
significantevent extends over a long period
•To date no use of current pool
Current Fees
(per annum)
New Fees(from 1
October 2023)
Chair$140,000$145,000
(3.57%+)
Non-executive Director
(x5)
$70,000$72,500
(3.57%+)
Chair of Audit and Risk
Committee
$12,000No change
Chair of People
Committee
$8,000$9,000
(12.5%+)
Total (for regular fees)$510,000$528,500
(3.62%)
Reserved for
significantevents only)
$20,000$75,000
Total (including reserve
for significant events
only)
$530,000$603,500

27
27
27
Ordinary resolution
Resolution 5:
That the directors be authorised to fix the remuneration of
Rakon’s auditor PricewaterhouseCoopers (PwC) for the
following year

28
General business & shareholder questions
28

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’sproduct 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/ NewSpaceLEOs: Refers to space sector commercialisation,
that are mainly low earth orbit (LEO) satellites
Mercury™ / Mercury+™: Rakon’sproprietary 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’sproprietary 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’ssolutions 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 that
allows the user to manually adjust a control voltage; it helps to compensate for
instabilities in the output frequency
XMEMS®: Crystal Micro-Electro-Mechanical System. Rakon’sadvanced quartz-
based resonator technology. It is made with Rakon’snanotechnology
microfabrication process, delivering unprecedented resonator and oscillator
performances
29
45
Glossary

30
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 areforward looking, Rakon Limited's actual results could differ materially
Although management and directors may indicate and believe that the assumptions underlying
theforward looking statements are reasonable, any of the assumptions could prove inaccurate
or incorrectand, therefore, there can be no assurance that the results contemplated in the
forward lookingstatements will be realised
Media releases, management commentary and investor presentations are all available on the
company'swebsite and contain additional information about matters which could cause Rakon
Limited'sperformance to differ from any forward-looking statements in this presentation
Please read thispresentation in the wider context of material previously published by Rakon
Limited
Disclaimer
30
46

www.rakon.com

---

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
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16 August 2023
Rakon 2023 Annual Meeting Speeches and Presentation
Rakon Limited (NZX: RAK), a high technology manufacturer of frequency control and timing
solutions for the telecommunications, space and defence, and positioning sectors, has
provided the attached Chair’s speech, Chief Executive Officer’s speech and slide
presentation for the 2023 Annual Shareholders’ Meeting. Key highlights from the speeches
include:
Rakon Chair Lorraine Witten says “In FY23 we delivered on our plan including our strategy
for top line growth to be above 15% and achieved 16% revenue growth in our core business.
We achieved all of our FY23 growth plan milestones and paid our first dividend of 1.5 cents
per share on 8
th
August 2023. The Board anticipates that even in the current macro-
economic environment, and during the investment and execution of our three year business
plan, this level of dividend is sustainable.”
“We have adjusted operations and reduced costs as we navigate short-term market
uncertainty. Over the last few quarters we have been improving our global processes,
reducing operating expenses and reconfiguring parts of our organisation that will result in
$6 million of cost savings with a full year impact from FY25 onwards,” says Ms Witten.
Chief Executive Officer, Sinan Altug says ”As announced in July, we are now anticipating
slower drawdown of telecommunication customers stockpiled inventory, elongating the
timeline for inventory normalisation. This represents a potential risk of up to $10 million to
FY23 guidance. We're in continuous dialogue with our customers and anticipate providing
an updated EBITDA projection at the half-year results, if not sooner is confident of a return
to normal customer inventory levels by the end of FY24.”
“Rakon’s medium to longer-term growth fundamentals and drivers are strong. We’ve been
rigorously driving our growth roadmap that emphasises the importance of not only
amplifying our core business but also further expanding our product and technology
leadership, penetrating new markets, and epitomising world-class manufacturing. In FY23,
we've channelled approximately $24 million into fortifying our strategy, and we're set to
invest another $19 million in the current financial year. The capital we're deploying has an
estimated Return on Investment for our four key investment areas that ranges from an
impressive 100% to 175% and potentially increasing our Serviceable Addressable Market by
over $1.5 billion to almost $5 billion once we complete the three year plan,” says Mr Altug
The 2023 Annual Meeting of Shareholders of Rakon Limited will be held at 11.00am on
Wednesday 16 August 2023 in the Newmarket Room, Ellerslie Event Centre, Ellerslie
Racecourse, 80 Ascot Avenue, Remuera, Auckland, New Zealand and online via
https://meetnow.global/nz

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-ends-
-ENDS-
Contact:
Investor and media relations
Nick Laurent
investors@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.