RAK focused on efficiency and investment for future growth

Rakon Limited
Interim Report
2024

2

Table of Contents
Unaudited Consolidated Interim Statement of Comprehensive Income ..................................................... 3
Unaudited Consolidated Interim Statement of Changes in Equity .............................................................. 4
Unaudited Consolidated Interim Balance Sheet .......................................................................................... 5
Unaudited Consolidated Interim Statement of Cash Flows ......................................................................... 6
Notes to the Financial Statements ............................................................................................................... 8

3

Unaudited Consolidated Interim Statement of Comprehensive Income
For the period ended 30 September 2023

For the NZ segment, research and development expenses was previously aligned to the R&D grant claim. With the change in the
grant scheme introduced by New Zealand Government (which was adopted for 31 March 2023 reporting), the research and
development calculation was reassessed for the period ending 30 September 2022, resulting in a reclassification of $2,010,000
from general and administration expenses to research and development expenses.
Change in classification of selling and marketing expenses in France HiRel led to the reassessment of prior year costs which resulted
in a reclassification of $1,138,000 from general and administration expenses to selling and marketing expenses.
The accompanying notes form an integral part of these financial statements.


Restated
Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
Note $000s$000s$000s
Continuing operations
Revenue461,25487,164 180,334
Cost of sales(35,133) (43,641) (91,542)
Gross profit26,12143,52388,792
Other operating income92267401
Operating expenses
Selling and marketing(5,827)(5,620) (10,626)
Research and development(8,856)(8,507) (16,979)
General and administration(14,135) (14,223) (31,214)
Total operating expenses(28,818) (28,350) (58,819)
Other gains/(losses) – net53,3747,4342,969
Operating profit76922,87433,343
Finance income28095371
Finance costs(265)(547)(891)
Share of net losses of associate(625)(18)(1,460)
Profit before income tax15922,40431,363
Income tax credit/(expense)340(6,391)(8,144)
Net profit after tax for the period attributable to equity holders of the Company49916,01323,219
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Decrease in fair value cash flow hedges(1,613) (19,664)(2,517)
Cost of hedging (310)(1,218)(1,494)
Income tax relating to components of other comprehensive income5385,8471,123
Exchange differences on translation of foreign operations9683,9241,774
Long term incentive plan176163347
Items that will not be reclassified subsequently to profit or loss
Changes in fair value of equity investments – Thinxtra10(628)(753)
Other comprehensive income for the period, net of tax (231) (11,576)(1,520)
Total comprehensive income for the period attributable to equity holders of the
Company
2684,43721,699
Earnings per share attributable to the equity holders of the CompanyCentsCentsCents
Basic earnings per share0.2 7.1 10.2
Diluted earnings per share0.2 7.0 10.2

4

Unaudited Consolidated Interim Statement of Changes in Equity
For the period ended 30 September 2023

The accompanying notes form an integral part of these financial statements.





Share capital
Retained
earnings Other reserves Total equity
$000s$000s$000s$000s
Balance at 31 March 2022
181,024 (23,126) (22,733) 135,165
Net profit after tax for the half year ended 30 September 2022-16,013-16,013
Currency translation differences
--3,9243,924
Cash flow hedges, net of tax
-- (15,035) (15,035)
Changes in fair value of equity investments at fair value through
other comprehensive income – Thinxtra
--(628)(628)
Contribution of equity net of transaction costs
Employee share schemes
Value of employee services--163163
Total comprehensive income for the half year
-16,013 (11,576)4,437
Balance at 30 September 2022
181,024(7,113) (34,309) 139,602
Net profit after tax for the half year ended 31 March 2023
-7,2067,206
Currency translation differences
--(2,150)(2,150)
Cash flow hedges, net of tax
--12,14712,147
Changes in fair value of equity investments at fair value through
other comprehensive income – Thinxtra
--(125)(125)
Contribution of equity net of transaction costs
Employee share schemes
Value of employee services--184184
Total comprehensive income for the half year
-7,20610,05617,262
Balance at 31 March 2023
181,02493 (24,253) 156,864
Net profit after tax for the half year ended 30 September 2023-499-499
Currency translation differences
--968968
Cash flow hedges, net of tax
--(1,385)(1,385)
Changes in fair value of equity investments at fair value through
other comprehensive income – Thinxtra
--1010
Contribution and distribution of equity net of transaction costs
Issue of shares
568--568
Dividends
-(3,482)-(3,482)
Employee share schemes
Value of employee services--176176
Total comprehensive income for the half year
568(2,983)(231)(2,646)
Balance at 30 September 2023
181,592(2,890) (24,484) 154,218

5

Unaudited Consolidated Interim Balance Sheet
As at 30 September 2023

The accompanying notes form an integral part of these financial statements.
Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
Note$000s$000s$000s
Assets
Current assets
Cash and cash equivalents17,87925,74421,717
Trade and other receivables45,84850,59551,421
Inventories59,95972,04362,614
Derivative financial instruments 292441,100
Financial asset at fair value through profit or loss5-96
Current income tax asset367266362
Total current assets124,350 148,692 137,310
Non-current assets
Property, plant and equipment38,56330,10334,387
Intangible assets8,5946,8837,671
Right-of-use assets3,9744,2223,435
Interest in associates13,52516,46014,154
Trade and other receivables2,1512,0703,615
Financial asset at fair value through other comprehensive income – Thinxtra61,9362,0531,927
Derivative financial instruments3582531,228
Deferred tax asset4,0657,6873,543
Total non-current assets73,16669,73169,960
Total assets197,516 218,423 207,270
Liabilities
Current liabilities
Bank overdraft7-1,417-
Borrowings71,3741,3231,635
Trade and other payables24,84336,22229,978
Current income tax liabilities(825)3,2891,688
Lease liabilities1,5772,1391,562
Provisions1,1537271,176
Derivative financial instruments4,79216,3054,107
Total current liabilities32,91461,42240,146
Non-current liabilities
Borrowings73,1124,6043,600
Trade and other payables--92
Provisions3,0962,9403,057
Lease liabilities2,9032,7132,507
Derivative financial instruments 1,2737,142940
Deferred tax liabilities--64
Total non-current liabilities10,38417,39910,260
Total liabilities43,29878,82150,406
Net assets154,218 139,602 156,864
Equity
Share capital181,592 181,024 181,024
Other reserves(24,484) (34,309) (24,253)
Accumulated losses(2,890)(7,113)93
Total equity154,218 139,602 156,864

6

Unaudited Consolidated Interim Statement of Cash Flows
For the period ended 30 September 2023

The accompanying notes form an integral part of these financial statements.


Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
$000s$000s$000s
Operating activities
Cash provided from
Receipts from customers75,67985,497 173,137
R&D grants received8821,7592,092
Other income received339207506
76,90087,463 175,735
Cash was applied to
Payment to suppliers and others(35,346) (51,366) (95,749)
Payment to employees(31,593) (29,865) (58,375)
Interest paid(282)(735)(1,004)
Income tax paid(2,369)(5,480)(9,495)
(69,590) (87,446) (164,623)
Net cash inflow from operating activities7,3101711,112
Investing activities
Cash was applied to
Purchase of property, plant and equipment(6,015)(9,420) (17,342)
Purchase of intangibles(46)(306)(1,356)
(6,061)(9,726) (18,698)
Net cash outflow from investing activities(6,061)(9,726) (18,698)
Financing activities
Cash was applied to
Dividends paid(2,915)--
Repayment of borrowings- (10,000) (10,746)
Lease liabilities payments(1,733)(1,491)(2,472)
Cash was applied to financing activities(4,648) (11,491) (13,218)
Net cash inflow from financing activities(4,648) (11,491) (13,218)
Net increase in cash and cash equivalents(3,399) (21,200) (20,804)
Effects of exchange rate changes on cash and cash equivalents(439)6,2983,292
Cash and cash equivalents at the beginning of the year21,71739,22939,229
Cash and cash equivalents at the end of the period17,87924,32721,717
Composition of cash and cash equivalents
Cash and cash equivalents17,87925,74421,717
Bank Overdraft-(1,417)-
Total Cash and cash equivalents 17,87924,32721,717
Breakdown of net debt (excluding lease liabilities) at the end of the period
Cash and cash equivalents17,87924,32721,717
Borrowings(4,486)(5,927)(5,235)
Net cash (excluding lease liabilities) at the end of the period13,39318,40016,482

7

Unaudited Consolidated Interim Statement of Cash Flows (continued)
For the period ended 30 September 2023

The accompanying notes form an integral part of these financial statements.


Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
$000s$000s$000s
Reconciliation of net profit to net cash flows from operating activities
Reported net profit after tax49916,01323,219
Adjustments for
Depreciation and amortisation expense3,5033,8967,777
Net increase in allowance for expected credit loss14-222
Provisions provided-2091,103
Movement in foreign exchange rates2,209(673)(1,333)
Share of net profits of associate625181,460
Deferred tax movement--(644)
Gain on disposal of property, plant and equipment(88)--
Employee share based expense175163347
6,4383,6138,932
Change in operating assets and liabilities
Decrease/(Increase) in trade and other receivables5,708(6,202)(8,794)
Decrease/(Increase) in inventories2,654 (14,724)(5,293)
Increase in provisions17219785
(Decrease)/Increase in trade and other payables(5,228)213(7,125)
Increase/(Decrease) in tax provisions and deferred tax(2,778)885(612)
Total impact of changes in working capital items373 (19,609) (21,039)
Net cash flow from operating activities7,3101711,112

8

Notes to the Financial Statements
General information ........................................................................................................................ 9
Statement of significant accounting policies ................................................................................... 9
Segment information ....................................................................................................................... 9
Revenue ......................................................................................................................................... 11
Other gains/(losses) – net .............................................................................................................. 12
Financial asset at fair value through other comprehensive income – Thinxtra ............................ 12
Borrowings ..................................................................................................................................... 13
Contingencies ................................................................................................................................ 13
Subsequent events ........................................................................................................................ 13

Notes to the Financial Statements (continued)
9

General information
Rakon Limited (‘the Company’) and its subsidiaries (‘the Group’) are a global technology company that design and manufacture
advanced frequency control and timing solutions for a wide range of applications. Rakon’s core markets are Telecommunications,
Space & Defence, and Global Positioning. The Company is a limited liability company, incorporated and domiciled in New Zealand,
and listed on the New Zealand Stock Exchange (NZX code: RAK). The address of the registered office is 8 Sylvia Park Road, Mt
Wellington, Auckland.
The Company is registered under the Companies Act 1993 and is a FMC reporting entity under Part 7 of the Financial Markets
Conduct Act 2013. The financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013 and the NZX (Main Board) Listing Rules.
The unaudited interim financial statements of the Group have been approved for issue by Rakon’s Board of Directors on 22
November 2023.
Statement of significant accounting policies
These unaudited interim financial statements of the Group for the half-year reporting period ended 30 September 2023 have been
prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with New Zealand
equivalents to International Financial Reporting Standards (NZ IFRS), other New Zealand accounting standards and authoritative
notices that are applicable to entities that apply NZ IFRS, in particular NZ IAS 34 Interim Financial Reporting. The consolidated
financial statements also comply with International Financial Reporting Standards (IFRS). The Group is a profit-oriented entity for
the purposes of complying with NZ GAAP. These financial statements comprise Rakon and its subsidiaries, and have been prepared
on a going concern basis.
The unaudited interim financial statements of the Group have been presented in New Zealand dollars and have been rounded to
the nearest thousands unless otherwise indicated.
The preparation of financial statements in accordance with NZ IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.
This unaudited interim financial report does not include all the notes of the type normally included in an annual financial report.
Accordingly, this report should be read in conjunction with the annual report for the year ended 31 March 2023 and any public
announcements made by the Company during the interim reporting period.
Segment information
The chief operating decision maker (CODM), is responsible for allocating resources and assessing performance of the operating
segments. CODM for the Group is the Chief Executive Officer.
The operating segments are presented in a manner consistent with the internal reporting provided to the CODM. Significant
judgement has been applied in the determination of reportable operating segments. Ownership of products’ intellectual property
have been used as the key factor to identify reportable operating segment and aggregation criteria, based on synergies between
the businesses not limited by geography.
The CODM assess the performance of the operating segments based on ‘Underlying EBITDA’, a non-GAAP measure, defined as:
‘Earnings before interest, tax, depreciation, amortisation, impairment, employee share schemes, non-controlling interests,
adjustments for associate’s share of interest, tax & depreciation, loss on disposal of assets and other cash and non-cash items’. The
CODM also receives information about the segments’ revenue on monthly basis.

Notes to the Financial Statements (continued)

10

Segment results
Information relating to each reportable segment is set out below.




NZ
France/
India
France
HiRel T'maker Other
1
Total
$000s $000s $000s $000s $000s $000s
Segment revenue by market
Telecommunications
23,393 13,323 152- (2,703) 34,165
Global Positioning
7,53131 234- (618) 7,178
Space and Defence
6,245 756 8,864- (582) 15,283
Other
2,34787 2,468- (274) 4,628
Total segment revenue by market39,516 14,197 11,718- (4,177) 61,254
Underlying EBITDA6,821 (1,503) 880 566 (1,509) 5,255
Total assets
2
102,388 51,209 28,700 13,914 1,305 197,516
Additions of property, plant and equipment, and intangibles3,583 2,135 1,611-- 7,329
Total liabilities
3
21,932 14,345 5,968- 1,053 43,298
Unaudited six months ended 30 September 2023
NZ
France/
India
France
HiRel T'maker Other
1
Total
$000s $000s $000s $000s $000s $000s
Segment revenue by market
Telecommunications
30,634 19,255 298- (2,660) 47,527
Global Positioning
17,1989763- (974) 16,384
Space and Defence
5,209 1,061 6,366- (346) 12,290
Other
8,90647 2,636- (626) 10,963
Total segment revenue by market61,947 20,460 9,363- (4,606) 87,164
Underlying EBITDA32,149 2,998 (1,123) 1,050 (6,995) 28,079
Total assets
2
127,434 48,806 23,484 16,868 1,831 218,423
Additions of property, plant and equipment, and intangibles2,606 6,617 502-- 9,725
Total liabilities
3
49,390 18,888 8,935- 1,608 78,821
Unaudited six months ended 30 September 2022
NZ
France/
India
France
HiRel T'maker Other
1
Total
$000s $000s $000s $000s $000s $000s
Segment revenue by market
Telecommunications
65,874 39,215 453- (4,961) 100,581
Global Positioning
35,287 112 233- (1,790) 33,842
Space and Defence
10,448 2,846 16,248- (640) 28,902
Other
12,223 234 5,390- (838) 17,009
Total segment revenue by market123,832 42,407 22,324- (8,229) 180,334
Underlying EBITDA39,117 7,580 1,642 622 (6,779) 42,182
Total assets
2
111,435 52,032 28,126 14,154 1,523 207,270
Additions of property, plant and equipment, and intangibles5,935 10,905 1,858-- 18,698
Total liabilities
3
26,869 14,055 7,930- 1,552 50,406
Audited year ended 31 March 2023

Notes to the Financial Statements (continued)
11

1
Revenue is (losses)/gains on cash flow hedges apportioned to each segment based on hedged currency.
2
Segment assets are measured in the same way as in the financial statements. These assets are presented as it is regularly provided
to the CODM.
3
Segment liabilities are measured in the same way as in the financial statements. These liabilities are presented as it is regularly
provided to the CODM.
Segment description and principal activities
The New Zealand (NZ) operating segment designs and manufactures products for Telecommunications, Global Positioning and
Defence markets. The segment includes research and development (R&D) engineering teams located in NZ and UK which develop
new products and process innovations.
The France/India operating segment designs and manufactures products for the Telecommunication market. Design and support
services are in France and NZ, with manufacturing in India.
Rakon’s India facility in Bengaluru contract manufacture products exclusively for the Group. They also design and manufacture
products for the local Indian defence, aeronautics and space markets. Though there is potential for future growth in the domestic
market, this business currently is not large enough for the CODM to view separately, therefore is aggregated with France Telecom.
The France HiRel operating segment designs and manufactures products for the Space & Defence markets. Design, support services
and manufacturing are predominantly carried out in France.
The Timemaker Group (T’maker) produces crystal blanks and represents the Group’s 37.07% (2022: 37.07%) ownership interest.
All other segments (Other) includes Rakon Financial Services Limited, Rakon UK Holdings Limited, and Rakon Investment HK Limited.
These are not operating segments and are not separately included in reports provided to the CODM. Also included are the head
office, and group sales and marketing services segments. These are reported separately to the CODM.
Reconciliation of Underlying EBITDA to net profit after tax for the year

Revenue
The Group designs, manufactures and sells frequency control solutions for a wide range of applications. Revenue is derived from
the transfer of goods over time and at a point in time at an amount that reflects the consideration the Group expects to be entitled
to in exchange for products and services excluding any applicable taxes. Arrangements are agreed with the customers, set out in
the terms and conditions which cover the pricing, settlement of liabilities, return policies and any other negotiated performance
obligations.
Reportable segment revenue from contracts with customers

Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
Continuing operations$000s$000s$000s
Underlying EBITDA5,25628,07942,182
Depreciation and amortisation(3,503)(3,877)(7,777)
Adjustment for associate share of interest, tax and depreciation(1,191)(1,066)(2,100)
Finance costs – net15(452)(520)
Long term incentive scheme(270)-(376)
Other non-cash items(148)(280)(46)
Profit before income tax15922,40431,363
Income tax credit/(expense)340(6,391)(8,144)
Net profit after tax for the year49916,01323,219
NZ
France/
India
France
HiRelOtherTotal
$000s $000s $000s $000s $000s
Products transferred at a point in time39,516 14,197 8,875 (4,177) 58,411
Products and services transferred over time-- 2,843- 2,843
Sales to external customers39,516 14,197 11,718 (4,177) 61,254
Unaudited six months ended 30 September 2023

Notes to the Financial Statements (continued)

12


Revenue by geography
The Group’s trading revenue is derived in the following regions. Revenue is allocated based on the country in which the customer
is located.

Other gains/(losses) – net

1
Includes realised and unrealised gains arising from bank balances, accounts receivable and accounts payable.
Financial asset at fair value through other comprehensive income – Thinxtra
Subsequent to losing significant influence in Thinxtra and ceasing equity accounting of the investment on 1 June 2018, the Group
elected to present changes in fair value of its investment in other comprehensive income (FVOCI).
The FVOCI are strategic investments which are not held for trading, and which the Group has irrevocably elected the classification
at initial recognition, considering this to be more relevant. For assets measured at FVOCI, gains and losses on revaluation are
recorded in OCI reserve. On disposal of these equity investments, any related balance within the OCI reserve is reclassified to
retained earnings.

NZ
France/
India
France
HiRel Other Total
$000s $000s $000s $000s $000s
Products transferred at a point in time61,946 20,460 6,459 (4,605) 84,260
Products and services transferred over time-- 2,904- 2,904
Sales to external customers61,946 20,460 9,363 (4,605) 87,164
NZ
France/
India
France
HiRelOtherTotal
$000s $000s $000s $000s $000s
Products transferred at a point in time123,832 42,407 19,437 (8,229) 177,447
Products and services transferred over time-- 2,887- 2,887
Sales to external customers123,832 42,407 22,324 (8,229) 180,334
Audited year ended 31 March 2023
Unaudited six months ended 30 September 2022
Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
$000s$000s$000s
Asia24,89737,54282,516
North America22,59335,30661,892
Europe12,88112,02830,750
Others8832,2885,176
Total segment revenue by geography61,25487,164 180,334
Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
$000s$000s$000s
Gain/(loss) on disposal of property, plant and equipment, intangible, and right-of-use assets96(7)(33)
Foreign exchange gains/(losses) – net
Forward foreign exchange contracts
Financial asset at fair value through profit or loss(745)(3,116)(880)
Revaluation of foreign denominated monetary assets and liabilities
1
4,02310,5573,882
Total foreign exchange gains – net3,2787,4413,002
Total other gains/(losses) – net3,3747,4342,969

Notes to the Financial Statements (continued)
13

Thinxtra
Thinxtra Pty Limited (Thinxtra) is an 'Internet of Things' (IoT) business that started in 2016. Thinxtra's focus is on establishing an IoT
network in Australia, New Zealand and Hong Kong and providing products, services and solutions enabling connectivity of devices
to the network. Thinxtra’s business model is based on subscription for access to the network, platform solutions and the sale of IoT
products. Further information is available at www.thinxtra.com.
Rakon was one of the founding members of Thinxtra in 2016, and has a 7.0% ownership interest at 30 September 2023 (March
2023: 7.0%). This is calculated on a fully diluted basis including the exercise of any existing options.
Based on the information and observations available, the valuation remains unchanged from 31 March 2023 at A$1.8m or A$2.29
per share.
Borrowings
The Group is reliant on its bank facilities and equity as the principal sources of capital management.
Line of credits
The Group maintains following line of credits.

ASB
The Company maintains a working facility of $10 million (2022: $10 million). During the period Company operated within its
required financial covenants.
Crédit Agricole Provence Côte D’Azur
The bank borrowings include a €2.4m French government backed loan that was made available to Rakon France (2022: €3.2m). In
May 2021, the Company exercised its option to extend this loan for a further five years. Repayment of the loan is spread equally
over the final four years to June 2026. The effective interest rate is 1.24% for the remaining term of five years. This loan has certain
restrictions that limits it to be used for working capital/treasury support for the French business. There are no covenants on the
loan and no additional security is required.
HDFC Bank
In June 2022, Rakon India secured a new credit facility with HDFC bank including ₹200m (NZ$4,000,000) that can be used for funding
working capital requirements. The facility is secured by inventories and debtors.
Contingencies
There are no material changes to contingent liabilities or assets from 31 March 2023.
Subsequent events
The Directors are not aware of any material events subsequent to 30 September 2023.
Unaudited six Unaudited six Audited year
months ended months endedended
30 September 30 September 31 March
202320222023
$000s$000s$000s
Current
French Government loan1,3071,2581,513
Other borrowings6766122
Current borrowings1,3741,3231,635
Bank overdrafts-1,417-
Total current borrowings1,3742,7401,635
Non-current
French Government loan2,9684,3373,450
Other borrowings144267150
Non-current borrowings3,1124,6043,600

---

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 5 www.rakon.com
© 2023 Rakon Limited. All Rights Reserved. Unauthorised use or publication is expressly prohibited.


Market Release
23 November 2023
Rakon continues to focus on efficiency initiatives and investment for future growth
Global high technology company Rakon (NZX: RAK) has today released its financial results for the six
months ended 30 September 2023.
All numbers are stated in New Zealand dollars (NZ$) and relate to the six months ended 30
September 2023 (HY24), with comparisons to the six months ended 30 September 2022 (HY23) unless
stated otherwise.
Financial Highlights
 Revenue of $61.3 million (HY23: $87.2 million) reflects industry-wide challenges and the
completion of one-off chip shortage contracts
 Telecommunications revenue down $13.4 million to $34.2 million and Positioning revenue down
$9.2 million to $7.2 million, reflecting anticipated normalisation of customer inventory levels.
Space and Defence recorded its highest revenue to date of $15.3 million, up 24% from HY23
 Gross margin of 42.7% (HY23: 49.9%) reflects non-recurring costs associated with workforce
restructuring and lower production due to the move to the new India facility
 Operating expenses were relatively flat at $28.8 million (HY23: $28.4 million) reflecting both
increased investment for future growth and inflationary pressures, and the offsetting effect of
Rakon’s focus on efficiency initiatives to improve long-term competitiveness
 Underlying EBITDA
1
of $5.3 million (HY23: $28.1 million) reflects the fall in revenue, non-recurring
costs and sustained investment for growth
 Reflecting the deferment of 5G infrastructure deployment by mobile network operators as they
adjust to current macroeconomic pressures, and longer than anticipated inventory normalisation
by Rakon’s Telecommunications and Positioning customers, Rakon now expects FY24 Underlying
EBITDA
1
of between $13-$19 million.
Strategic Highlights
 Continued market share gains and an all-time high design win rate, which has increased 33% YoY
with a conversion rate of over 90%
 Planned production of select New Zealand and France product lines at the new India facility is
progressing on an accelerated schedule – delivering margin improvement from FY25
 Now established in the fast-growing NewSpace and Low Earth Orbit (LEO) satellite ecosystem;
highest order book for Space over 12-month period and expecting this growth to continue
 Launched the latest Rakon semiconductor chip, the first of its AI computing hardware portfolio,
and working with leading players in AI computing hardware on next generation platforms
 Continued delivery of three-year growth strategy and on track to deliver all FY24 milestones.
Chief Executive Officer, Sinan Altug says “There is no doubt that we continue to deal with a tough short-
term macroeconomic environment. Our customers continue to work through their inventory levels, after
stockpiling through the global supply chain disruptions, and mobile network operators are deferring
some planned 5G capex. As evidenced by recent announcements, we are now seeing these conditions
lasting for longer than previously anticipated. However, we share the confidence of our tier 1 customers,

Page 2 of 5 www.rakon.com

who are seeing these adjustments as temporary pauses on the path to growth, and equivocally
expecting the deployment of this deferred investment to return.”
“We are focused on diversifying and growing in new markets. A great example of this is our Space and
Defence segment, which is going from strength to strength, delivering highest revenue to-date in HY24,
and has become another strong vertical alongside Telecommunications. We have also taken the first
steps towards AI computing hardware becoming a core market. The launch of our next generation
semiconductor chip, Niku, lays the foundation for our AI computing hardware portfolio and we will add
more next-generation products to this portfolio in the coming year.”
“We are also leaving no stone unturned as we focus on optimising and running our business as
efficiently as possible. The steps we have taken to date are already providing tangible benefits, but we
continue to look for more efficiencies across our global operations. This will put us in the best position
to navigate the current macroeconomic conditions, offset inflationary impacts and improve our
resilience and competitiveness into the future.
“The medium to longer-term growth fundamentals for Rakon’s core markets remain strong. We
continue to deliver and execute on our three-year growth plan, which will ensure we’re well positioned
to capture and maximise significant opportunities. The strategic and focused investments we are making
today will enable us to grow market share, revenue and margins“, says Mr Altug.
Financial Result
Total revenue was $61.3 million, compared with $87.2 million for HY23. This reflects a $10 million impact
from the completion of one-off chip shortage contracts as well as the normalisation of inventory levels
– impacting both the Telecommunications and Positioning segments.
Telecommunications, Rakon’s largest market, fell to $34.2 million (HY23: $47.5 million) on the back of
anticipated industry-wide normalisation of inventory levels among customers. Positioning fell $9.2
million to $7.2 million (HY23: $16.4 million), reflecting the completion of one-off chip revenue of $4
million in HY23 and normalisation of customer inventory levels. Increased activity in Space and Defence
resulted in a 24% revenue increase to $15.3 million (HY23: $12.3 million). Rakon’s ‘Other’ segment
revenue fell from $11 million to $4.6 million, also reflecting the completion of one-off chip shortage
contracts.
Gross profit was lower at $26.1 million and margin percentage was 43% (HY23: 50%), impacted by one-
off costs associated with workforce restructuring, lower production due to the move to the new India
facility, and lower order volumes impacting economies of scale.
Operating expenses were relatively flat at $28.8 million (HY23: $28.3 million) even with continued
growth strategy investment (R&D up to $8.9 million) and incurred inflationary pressures. Rakon’s focus
remains on investing for growth while proactively carrying out efficiency and cost control measures.
Underlying EBITDA
1
of $5.3 million reflects the fall in revenue along with non-recurring expenses and
investment for future growth. Net Profit After Tax (NPAT) was $0.5 million, reflecting Underlying
EBITDA
1
, as well as a share of a loss made by an associate.
Net cash was $13.4 million, down from the prior year after investment of $6.1 million in capital
expenditure, including the completion of the India manufacturing facility, and payment of $2.9 million
dividend in August.

Page 3 of 5 www.rakon.com

Balance Sheet
Rakon’s balance sheet remains robust, with net assets of $154.22 million. The company had $13.4
million in net cash at balance date, $5 million lower than a year ago as it continues to self-fund key
growth-focused projects and paid its first dividend in August 2023.
Since 31 March 2023, inventory levels have reduced from $62.6 million to $60 million and are down
$12 million YoY as Rakon used up safety stocks that were accumulated to mitigate supply chain risks
and support the transfer of Rakon India’s manufacturing operation to the newly built facility. The
company will continue to focus on lean and agile inventory management going forward.
Rakon is committed to managing its balance sheet to support the company’s long-term sustainability
and growth strategy, including maintaining capacity to execute ongoing growth opportunities over
time.
Efficiency initiatives
As Rakon continues to invest for growth while navigating the challenging market environment, it is also
taking a multifaceted approach to driving efficiency across the business. By streamlining the business
without compromising core capabilities Rakon can ensure resilience and maintain market leadership
and competitiveness in the years ahead.
In HY24 Rakon reduced its global workforce by over 10% compared to its business plan, optimising
production efficiencies while ensuring retention of the right capabilities for continued execution of its
growth plan. General and Administrative costs were flat at $14.1 million (HY23: $14.2 million), a positive
reflection of the effectiveness of ongoing efficiency actions to offset inflationary pressures. Rakon
continues to proactively look at all expense categories, and associations with revenue and future growth
objectives.
Growth strategy
Rakon’s three-year growth strategy, as outlined to shareholders at the 2022 and 2023 annual meetings,
sets a path for building long-term shareholder value by diversifying revenue with focused investment
to grow Rakon’s market share, revenue and margins over time. The growth strategy investments made
to-date have allowed Rakon to successfully diversify into higher margin products and are estimated to
have increased the serviceable addressable market by 10% in just one year to almost $3.7 billion.
Rakon is on-track to deliver all FY24 milestones for the growth strategy, including the planned
production of select product lines from France and New Zealand at the new India facility. This is
progressing well on an accelerated schedule and once completed will bring margin improvement from
the second half of FY24 and gain increasing efficiencies from FY25.
Rakon launched its latest semiconductor chip, Niku
TM
, the first of its AI computing hardware portfolio
and continues to work with leading players in AI computing hardware on next generation platforms –
projecting tangible substantial benefits within the next 12-18 months. The next product in Rakon’s AI
computing hardware portfolio, MercuryX™, is scheduled for launch before the end of 2023 and has been
released to selected customers for testing.
The Space and Defence segment continues to outperform for Rakon. The company has its highest order
book to-date over the 12-month period and is now established in the fast-growing NewSpace and Low

Page 4 of 5 www.rakon.com

Earth Orbit (LEO) satellite ecosystem. This growth is expected to continue as Rakon focuses on
expanding into new geographies and moving up the value chain for this market.
Rakon continues to evaluate and consider acquisition opportunities to expand into the US market. This
would provide access to top-tier US customers through local manufacturing, strengthen existing
customer relationships and significantly increase Rakon’s Total Addressable Market. Rakon is taking the
necessary time to ensure any acquisition can be funded, integrated and is value accretive. Rakon is also
working on organic expansion into the US, focusing on getting the appropriate market certifications
underway.
Outlook
Overall, HY24 Underlying EBITDA
1
performed in line with the July market update. However, market
dynamics continue to evolve and following further dialogue with customers, and a number of recent
peer and customer announcements, Rakon now believes the risk to FY24 guidance is higher than the
$10 million (implied FY24 Underlying EBITDA
1
of $16 million to $24 million) indicated to the market in
July. In the Telecommunications market, mobile network operators are continuing to defer some capex
investments for the roll-out of 5G infrastructure as they navigate current macroeconomic pressures.
Additionally, both the Telecommunications and the Positioning segments continue to be impacted by
inventory corrections. This is partly offset by the outlook for the Space and Defence segment, which
continues its strong performance and is set to benefit from seasonal delivery orders driving H2 revenue.
The fundamental growth drivers supporting Rakon's core markets remain resilient, reflecting robust
medium to long-term prospects. Tier 1 Telecommunications customers remain confident in the
deployment of delayed investment for the next stage of the 5G network build-out and forecasts show
5G accounting for half of all mobile subscriptions by 2030. Positioning is now showing early signs of
recovery and key customer inventory normalisation, and the order book for Space and Defence remains
strong, extending beyond FY25.
Opportunities are significant and growing with the ongoing evolution of 5G, Cloud and Edge
Computing, AI, autonomous machines and vehicles, aerospace and the entire NewSpace ecosystem.
Building on the strong foundations of its products, innovation and customer service, Rakon’s
programme of investment for growth and efficiency initiatives will ensure it is well placed to capture
and maximise future opportunities.
Ends
Authorised for release to the NZX by Rakon’s Board of Directors.
Conference call details
Sinan Altug (Chief Executive Officer) and Drew Davies (Chief Financial Officer) will present the HY24
Financial Results and Business Update at 11.00am NZDT. All shareholders are invited to listen and view
the presentation broadcast. To join the live broadcast online please pre-register using this link.
Contact:
Investor and media relations
Nick Laurent
investors@rakon.com

Page 5 of 5 www.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 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)

---

Results announcement



Results for announcement to the market
Name of issuer Rakon Limited
Reporting Period 6 months to 30 September 2023
Previous Reporting Period 6 months to 30 September 2022
Currency New Zealand Dollar

Amount (000s) Percentage change
Revenue from continuing
operations
$61,254 -30%
Total Revenue $61,254 -30%
Net profit/(loss) from
continuing operations
$0.499 -97%
Total net profit/(loss) $0.499 -97%
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend proposed to be paid
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.64

$0.58
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the Commentary and the unaudited interim
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
Nick Laurent, Investor and Media Relations
Contact phone number +64 21 240 7541
Contact email address nick.laurent@rakon.com
Date of release through MAP

23/11/2023
Unaudited financial statements accompany this announcement. Dividend Policy on www.rakon.com

---

0
HY24 financial results and business update
23 November 2023 © Rakon Limited
Six months to 30 September2023

1
3 HY24 highlights
4 Core market performance
7 Financial overview
8 HY24 performance overview
13 FY24 guidance
14 Strategy and outlook
21 Q&A
Agenda
Sinan Altug
Chief Executive Officer
Drew Davies
Chief Financial Officer
23 November 2023 © Rakon Limited

2
Key highlights and core market performance
Sinan Altug, CEO
23 November 2023 © Rakon Limited
2
2
4
23 November 2023
© Rakon Limited

3
Continued focus on cost control and
driving efficiency
HY24 highlights
Balancing efficiency and investment for sustainable growth
Continuing to invest in growth strategy
and initiatives ($8.9m for R&D in HY24)
H1 revenue reflects industry-wide
challenges (Telco; Positioning) and reduced
earnings due to non-recurring costs
Continuing to gain market share; design
win rate at all time high
Space and Defence outperforming;
record revenue and strong order book
intoFY25 and beyond
On track to deliver FY24 strategic
milestones; key initiatives on schedule
23 November 2023 © Rakon Limited

4
23 November 2023 © Rakon Limited
Source: Nokia Global Network Traffic 2030 report
"5G will account for half of the world's
mobile subscriptions by 2030"
$13m
$16m
$18m
$20m
$11m
$32m
$38m
$42m
$48m
$34m
HY20HY21HY22HY23HY24
Gross MarginRevenue
Telecommunications
Recovery taking longer than anticipated; design win rate at record high
HY24Revenue and Gross Margin (NZD)
FY24 and beyondGlobal mobile subscriptions (by technology) (Bn)
•Revenue down 28% to $34.2m;​ continuing to grow market share but H1
revenue impacted by temporar y downturn and inventor y normalisation
•Gross margin down 46% to $10.9m;reflecting one-off costs associated with
workforce restructuring, production ramp-up at new India facility and lower
volumes impacting economies of scale
•Design win rate at an all-time high, increased 33% YoY (conversion rate over
90%), including for next generation projects like O-RAN and edge computing
•Gross margin normalisingat historical levels
•Design wins for latest products positions Rakon to secure a high share of next-
generation application orders
•Tier 1 customers see recover y taking longer than early 2024, but still confident
in deployment of delayed investment for next stage of 5G network build-out
•Nokia 'Global network traffic 2030 report' forecasts 5G subscriptions will reach
5.6billion by 2030 (approx. 50% of total subscriptions)

5
5
5
23 November 2023 © Rakon Limited
Positioning
Market remains constant in H1; early signs of recovery
HY24Revenue and Gross Margin (NZD)
FY24 and beyond
•Revenue down 56% to $7.2m;H1 performance as expected
•Customers drawing down stockpiled inventories –particularly
for higher gross margin 'Precise Positioning' segment
•Gross margin down 67% to $3.1m; end of TCXO chip shortage
one-off business impacted YoY gross margin
•Working alongside customers to manage current inventory
drawdown; seeing signs of recovery and increasing order volumes
•Focus remains on 'Precise Positioning' witheffortstostabilise
pricing and margins
$8m
$9m
$10m
$6m
$14m
$16m
$7m
$4m
$3m
$6m
$7m
$3m
$10m
$6m
$10m
$12m
$7m
HY20HY21HY22HY23HY24
TCXO shortageGross MarginRevenue
$4m
$4m
$2m
$2m

6
23 November 2023 © Rakon Limited
$9m
$8m
$7m
$9m
$10m
$12m
$11m
$10m
$12m
$15m
HY20HY21HY22HY23HY24
Gross MarginRevenue
Space andDefence
Record revenue and performing ahead of expectations
HY24Revenue and Gross Margin (NZD)
FY24 and beyond
•Highest ever revenue, up 24% to $15.3m; increase across all sub-
segments –Space, NewSpaceand Defence
•Gross margin up 12% to $9.6m; expect this trend to continue
throughthe expansion of our Space product portfolio
•Expanded Space product portfolio has tripled Rakon's addressable
market for NewSpacesubsystems to an estimated $250m
•H2 revenue to benefit from seasonal delivery orders
•Strong order book extending beyond FY25
•High customer interest in NewSpacesubsystem products, eg-
GNSS receivers and MROs (Master Reference Oscillator)
•In next 6-12 months, targeting contract wins/design-ins for
large LEO (Low Earth Orbit)satellite constellations

7
HY24financial overview
Drew Davies, CFO
23 November 2023 © Rakon Limited
7
9
23 November 2023
© Rakon Limited

8
23 November 2023 © Rakon Limited
HY24 EBITDA performance in line with expectations
Reflects industry wide challenges and non-recurring costs
Revenue
Underlying EBITDA
1
Revenue
$61.3m
$25.9m -30%
Operating expenses
$28.8m
$0.5m +1.6%
Operating cash flow
$7.3m
$7.3m n/a%
Underlying EBITDA
1
$5.3m
$22.8m -81%
Gross Margin
$26.1m
$17.4m -40%
1
Refer to note 4 of the FY2023 audi ted cons ol i datedfi nancial s tatements for an expl anati on of
how ‘Non-GAAP Financial Information’ is used, including a definition of ‘UnderlyingEBITDA’
Capex
$7.3m
$2.4m -25%
$57m
$60m
$85m
$87m
$61m
HY20HY21HY22HY23HY24
$7m
$11m
$26m
$28m
$5m
HY20HY21HY22HY23HY24

9
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
•Revenue: down 30% YoY (down 20% YoY excluding prior
year one-off chip shortage revenue)
▪Drop primarily due to lowerTelecommunications and
Positioning orders; offset by 24% growth in Space
and Defence
•Gross Margin % reduction attributable to one-off and
temporar y costs incurred, driven by:
▪Reduced production in India during moveinto new
manufacturing facility
▪Workforce restructuring labour costs
•Operating expenses of $28.8mrelatively flat YoY, despite
high inflationar y pressures and increased strategic
investment in R&D
•Inventor y down 17% YoY as wecontinue to focus on
inventor y management optimisation
Hedging NZD/USD FY24FY25FY26
% of net exposures covered by hedging74%45%6%
average rate of cover0.64600.61500.6098
23 November 2023 © Rakon Limited
Performance for the year to 30 September
NZ$m
HY24HY23variance% change
Revenue61.387.2-25.9-30%
Gross profit26.143.5-17.4-40%
Gross margin %42.6%49.9%-7.3 ppts
Operating expenses28.828.3+0.5+2%
Net profit after tax0.516.0-15.5-97%
Underlying EBITDA
1
5.328.1-22.8-81%
Capital expenditure7.39.7-2.4-25%
Operating cash flow7.30.0+7.3n/a
Financial Position
Cash and cash equivalents17.925.7-7.9-31%
Debt
2
4.57.3-2.9-39%
Inventor y60.072.0-12.1-17%
HY24 key financial results

10
•As anticipated, slower customer inventory
drawdown impacted Telecommunications and
Positioning
•Telecommunications down 28%, also reflects drop
in orders as a result of deferred 5G Network
deployments by carriers globally
•Positioning down 56%; also reflects completion of
one-off chip shortage Positioningrevenue
(HY23: $4m)
•Space and Defence revenue grew 24% YoY
reflecting increased demand across core products
H1 revenue by core market (HY21-HY24)
Revenue from core markets
Impactedby Global Telco and Positioning markets and completion of one-off chip shortage contracts
$38m
$6m
$11m
$42m
$14m
$10m
$48m
$16m
$12m
$34m
$7m
$15m
$10m
$12m
TelecommunicationsPositioningSpace and Defence
-
$5m
$10m
$15m
$20m
$25m
$30m
$35m
$40m
$45m
$50m
TelecommunicationsPositioningSpace and Defence
HY21HY22HY23HY24TCXO shortage
$4m
$4m

11
How net profit translates to operating cash
How operating cash translatesto
movement in net cash
•Decrease in receivables reflects reduction
in Telecommunications revenue
•Focus on reducing inventor y (lower supply
chain risks and transfer from former sites
to new India facility completed)
•Operating cash up due to decreasing
inventor y balances as we optimise
inventor y sell-through
•Capex includes completion of India facility
to enable transition from former sites
•Net dividends paid in August 2023: $2.9m
Othe r
1
– non-cash i tems including unrealised foreign exchange, s hare of net profits of associate (Timemaker), employee share-based e xpense, a nd
move me nts i n other provisions
Net cash
$13.4m
23 November 2023 © Rakon Limited
How net profit translates to net cash movement
Inventory management and investment for growth impacting cash position

12
Focused onefficiency and investment
Ongoing cost savings will improve resilience and competitiveness
23 November 2023 © Rakon Limited
Workforce efficiencies
•HY24: global workforce numbers>10%below business plan; proactive initiatives ensure workforce count is within optimal levelsfor cost of
production while retaining rightcapabilitiestocontinue execution ofgrowth plan
•Incurred restructuring costsin H1 with reductions in manufacturing operations personnel in New Zealand
New Indiafacility operational
•New Bengaluru manufacturing facility complete and operational late in H1; will drive more Cost of Sales efficiencies as production ramps up
Operational Expense management
•Proactively looking at all expense categories and association with revenue and future growth objectives
•G&A expenses down slightly YoY – continued focus on efficiency and automation initiatives globally to offset inflationar y pressures
Inventory management
•Continued focus on optimising inventor y led to $12m overall decline YoY and will continue to drive reductions
Operational efficiencies / Future planning
•Ongoing process to streamlineoperations globally,ensuring all key expenditures across the boardcontribute to Rakon's growth strategy
•Optimisation of manufacturing cost structures includes accelerated schedule for India facility production of select NZ/France product lines

13
Updated FY24 Underlying EBITDA guidance
•HY24 Underlying EBITDA performed in line with July Market Update
•H2 macroeconomic conditions more challenging than forecast:
•Telecommunications market impacted by longer inventory corrections and deferred 5G deployment
•Positioning market continues to be impacted by inventory corrections
•Space andDefenceH2 outlook is strong, reflecting strong order book and seasonal delivery orders
•Risk higher than the $10m(implied UnderlyingEBITDA of $16m-$24m) indicated in July market update
•Now expect FY24 Underlying EBITDA between $13m-$19m
•Board anticipates level of dividend sustainable through current macroeconomic pressures and three-year growth plan
23 November 2023 © Rakon Limited

14
Strategy and outlook
23 November 2023 © Rakon Limited
Sinan Altug, CEO
23 November 2023
© Rakon Limited

15
Telco market leadership –
products using proprietar y
technologies
Space and 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 and 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
NEW MARKETS
DELIVER
WORLD CLASS
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
23 November 2023 © Rakon Limited
A clear growth strategy to build long term value
Diversifying andgrowing market share, revenue and margins in high growth markets

16
NEW
MA NUFA CTURING
FA CIL ITY IN INDIA
RA KON DESIG NED
SEMICONDUCTOR
CHIPS
XMEMS
®
NA NOTECHNOL OG Y
MA NUFA CTURING
NEWSPA CE
B USINESS
FY 2023
FY 2024
FY 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
•India facility transfer of select NZ
products
•India facility transfer of select
NewSpace products
•Launch of enhancedMercuryX
TM
•Chip based product revenue
growing to over 60%
•Volume production of XMEMS
®
•XMEMS
®
products qualified into
key 5G platforms
•Recognised player in the NewSpace
ecosystem
•Significant orders secured
•India facility transfer of
select Space subsystems
•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
23 November 2023 © Rakon Limited
Continued delivery of 3-year growth roadmap
Strategic investments to deliver long-term value for shareholders

17
Deliverables post three-year growth plan
Focused investment with high ROI to grow market share, revenue and margins
3 year
growth plan
investments
Return on
investment
Plan already
delivering
value
What we expect to deliver
following 3-year plan
•Targeting 15% annual revenue growth
•Improved economies of scaleand higher
margins
•Diversifyingrevenue providing increased
protection through the cycles
•GrowServiceableAddressable Market
by over $1.5 billion toalmost $5 billion
ExpandedServiceable
Addressable market by 10% in
12 months to $3.7 billion
Rate of design wins at
all-time high
Highest ever Space and
Defencerevenue, and
growing substantially
Tripled Space opportunities, to
an estimated $250 million
Return on
investmentsrange
from 100% -175%
Focused investment into
strategic initiatives, including
$8.9m R&D in HY24
(HY23: $8.5m)
Plan
already
delivering
value

18
18
18
"The space market... has grown to
approximately $447 billion—up
from $280 billion in 2010—and
could grow to $1 trillion by 2030"
•40-year legacy of working with leading space agencies NASA, ISRO and ESA
•Now established in the fast growing NewSpace and Low Earth Orbit (LEO)
satellite ecosystem
•Highest order book over 12-month period; expect this growth to continue
•GNSS Receiver product used in earth observation satellite launched in April
2023; released two new GNSS Receivers in November 2023
•Focused on expanding into new geographies and moving up the value
chain, developing more complex subsystems
Space and NewSpace: continuing to outperform
Established in high-growth NewSpacesegment; strong order book beyond FY25
Source: McKinsey & Company: ‘A giant leap for the space industry’
January 2023
23 November 2023 © Rakon Limited

19
19
19
•Rakon’s tech and products ideally suited for overcoming the
synchronisation challenges that datacentres face with AI workloads
•Launched latest semiconductor chip, Niku™, in October 2023, which
lays foundation for Rakon’s AI computing hardware product portfolio
•Working with leading players in AI hardware to enable the next
generation platforms
•Projecting tangible substantial benefits (design wins, collaborations
and potentialrevenue growth) in next 12-18 months
Recently launched Rakon-designed semiconductor chip, Niku™,
which lays the foundations for our AI computing product portfolio
In next six yearsAI
infrastructure
market predicted to
reachUS$400b
In next 10 years
Generative AI market
predicted to grow
toUS$1.3 trillion
23 November 2023 © Rakon Limited
Source: Bloomberg Intelligence
Source: Data Bridge Market Research / WSJ
AI: emerging core market for Rakon
Delivering substantial benefits in next 12-18 months

20
•Telecommunications market challenging in the short-term with inventory corrections and deferred5G capex
investment by wireless network operators
•Positioning remains challenged due to inventory correction, starting to see signs of recovery
•Space and Defence market outperforming expectations
•Continuing to grow market share - winning new customers and highest ever rate of design wins
•Continued focus on efficiency initiatives driving annualisedcostsavings andimproving future resilience and
competitiveness
•Continued execution of 3-year growth plan focused on growing market share, revenue and margins
23 November 2023 © Rakon Limited
Summary
Underlying growth drive to capture andmaximisesignificant growth

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Q&A

www.rakon.com
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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 (six months to 30 September 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
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Appendix
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23 November 2023 © Rakon Limited
Net profit and Underlying EBITDA explained
Financial result reflects investment for growth and inflationary pressures
Decrease in net profit compared to HY23 explained
How the current period net profit
translates to EBITDA
Other
1
- include movement in finance
cost, other operating income, general
administration expenses, sales &
marketing expenses, & balance of other
(losses)/gains – net
Timemaker share
2
- adjustment for
Timemaker share of interest, tax and
depreciation