Focused on efficiency and growth in NewSpace and AI

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


Results for announcement to the market
Name of issuer Rakon Limited
Reporting Period 12 months to 31 March 2024
Previous Reporting Period 12 months to 31 March 2023
Currency New Zealand Dollar

Amount (000s) Percentage change
Revenue from continuing
operations
$128,010 -29%
Total Revenue $128,010 -29%
Net profit/(loss) from
continuing operations
$4,515 -81%
Total net profit/(loss) $4,515 -81%
Interim/Final Dividend
Amount per Quoted Equity
Security
N/A
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.65

$0.66
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the Commentary and the audited financial
statements released in conjunction with this announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
Maureen Shaddick
Contact person for this
announcement
Nick Laurent, Investor and Media Relations
Contact phone number +64 21 240 7541
Contact email address investors@rakon.com
Date of release through MAP

29/05/2024
Audited financial statements accompany this announcement.

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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 w w w . r a k o n . c o m


Rakon FY24 Financial Results Market Release
29 May 2024
Focused on efficiency and execution of growth in NewSpace and AI
Global high technology company Rakon (NZX: RAK) has today released its financial results for the twelve
months ended 31 March 2024.
All numbers are stated in New Zealand dollars (NZ$) and relate to the twelve months ended 31 March
2024 (FY24), with comparisons to the twelve months ended 31 March 2023 (FY23) unless stated
otherwise.
Financial Highlights
 Revenue of $128.0 million (FY23: $180.3 million) reflects the completion of one-off chip shortage
contracts in the prior year as well as the slower than anticipated normalisation of inventory levels –
impacting both the Telecommunications and Positioning segments.
 Rakon continues to be impacted by the cyclical slowdown of 5G deployment by mobile operators.
 Space and Defence revenue was up by more than 27% reflecting Rakon’s continued success in
growing this segment and diversifying its revenue.
 Gross margin of 45% (FY23: 49%) reflects one-off costs associated with workforce restructuring and
inefficiencies of lower production levels.
 Reflecting the success of cost control and efficiency initiatives, operating expenses (excluding the
costs related to the acquisition proposal and retention incentives) fell by $1.5 million to $57.3 million
despite inflationary pressures and continued investment in the growth plan.
 Underlying EBITDA
1
of $13.5 million (FY23: $42.2million) and Net Profit after tax of $4.5million (FY23:
$23.2million).
 Capital expenditure of $17.0 million was spent on strategic investments as Rakon continues to
deliver its growth plan.
 Given the FY24 financial performance and unanticipated costs related to the acquisition proposal,
the Board has not declared a dividend in relation to FY24. A return to dividends will be considered
at the next annual results.
Strategic Highlights
 Continued market share gains and high design win rate positioning Rakon well to secure next
generation application orders.
 In the current cyclical slowdown, Rakon continued to adapt and deliver on its three-year growth
strategy to protect the path to sustainable growth including:
o optimisation of manufacturing cost structures including accelerated schedule for India
facility production of select NZ/France product lines;
o launch of its next generation Niku
TM
semiconductor and MercuryX
TM
product ranges for AI
and cloud data centres, and next-generation telecom networks; and
o following the win of a $17 million contract to supply a new Low Earth Orbit satellite
constellation, Rakon is now a top global supplier for its space subsystems products –

Page 2 of 5 w w w . r a k o n . c o m

validating investments made to diversify the company's product range in this rapidly
growing ecosystem
 While the short-term outlook remains suppressed for the telecommunications and positioning
segments, Rakon continues to have confidence in its growth trajectory for its space and defence
segment and in the fundamental growth drivers across all of its core markets.
Chief Executive Officer, Sinan Altug says the last 12 months have been challenging for Rakon. “Our
customers in telco and positioning are working through their inventory, after stockpiling through the
global supply chain disruptions, and, in telco, mobile network operators continue to defer some planned
5G capex,” says Altug. “Alongside this the Board and Management team have spent considerable time
and resources working on the acquisition proposal received in December last year. Importantly though,
we have continued to execute our strategic growth plan as well as continuing to gain market share and
secure design wins at a consistently high rate. This positions us well to benefit when the current
economic cycle turns and to continue momentum in both Space and AI.

“We continue to focus on optimising our business and ensuring that Rakon is set up for the future. In
2022, we outlined our 3-year growth plan to shareholders, and I’m incredibly proud of how our team
has continued to adapt and tirelessly deliver on this plan. Just a few weeks ago we announced a $17
million space contract win, to supply a new low earth orbit satellite constellation, which has helped to
establish Rakon as a top global supplier for our space subsystems products. This is further tangible
proof that our strategic plan and investments are delivering results.
“We are delivering exceptional results in Space and making headway with AI computing hardware, as
an emerging core market. We continue to have confidence in the fundamental growth drivers across all
our core and emerging core markets. Rakon has a diversified and growing range of cutting-edge
products, industry-leading innovation and customer service, a clear plan for growth and efficiency
initiatives already in place to drive future profitability improvements.”
Financial Result
Looking back at the 12 months ended 31 March 2024 (FY24), revenue was $128.0 million, compared
with $180.3 million for the year ended 31 March 2023 (FY23). This reflects a $16.3 million impact from
the completion of one-off chip shortage contracts in the prior year as well as the slower than
anticipated normalisation of inventory levels – impacting both the telecommunications and
positioning segments. Success in the space and defense segment has resulted in revenue increasing
27% to $36.8 million.
Gross profit was lower at $57.9 million and margin percentage was 45% (FY23: 49%), impacted by
one-off costs associated with workforce restructuring and lower order volumes impacting economies
of scale. Operating expenses (excluding the costs related to the acquisition proposal and retention
incentives of $2.2 million) fell by $1.5 million to $57.3million, reflecting the cost-cutting and efficiency
initiatives. These more than offset inflationary pressures and the continued investment in the growth
strategy (Research and Development expenditure up $0.7 million).
Underlying EBITDA was $13.5 million (FY23: $42.2million) and Net Profit after tax was $4.5 million (FY23:
$23.2 million).

Page 3 of 5 w w w . r a k o n . c o m

Capital expenditure of $17.0 million was spent on strategic investments as Rakon continues to deliver
on its growth plan. Included in this was a key project to accelerate the transfer of key space and telco
products from France and New Zealand, into the new Indian facility.
Balance Sheet
Rakon’s balance sheet remains robust, with net assets of $159.3 million. The company had $17.8 million
in net cash at balance date, $3.9 million lower than a year ago reflecting ongoing capital expenditures
investments along with incurring costs associated with the acquisition proposal. Rakon has continued
to focus on lean and agile inventory management; as such since 31 March 2023, inventory levels have
reduced to $54.9 million, down $7.7m from 31 March 2023 and down $5.1 million from 30 September
2023.
In April 2024, Rakon entered into a 2-3 year debt facility with global banking and financial services
group, HSBC, replacing a previous facility with an Australian bank at a similar cost structure. With this,
Rakon’s working capital facility has increased to NZ$24 million, plus an additional US$14 million facility
for capital expenditure. The refinancing gives us additional flexibility to support organic growth
globally, and future M&A activity, over the coming years.
Rakon continues to manage the balance sheet to support the company’s long-term sustainability.
Given the FY24 financial performance and the unanticipated cost of the acquisition proposal, the
Board has not declared a dividend in relation to FY24. While the Board continues to have confidence
in the company’s future, as outlined in its dividend policy, it must also take into account the company’s
operational cash requirements, debt levels, interest rates, and the market conditions. This decision
was not taken lightly and a return to dividends will be considered at the next annual results.
Efficiency initiatives
As Rakon navigates the market dynamics and high inflation environment we have adjusted operations
and reduced costs, while protecting our future path to growth and ensuring we maintain market
leadership. Actions taken have included:
 optimisation of manufacturing cost structures, includes accelerated schedule for India facility
production of key product lines from New Zealand and France;
 continued focus on optimising inventory, led to $7.7m overall decline YoY and will continue
to drive reductions;
 ongoing process to streamline operations globally, ensuring all key expenditures across the
board contribute to Rakon's growth strategy; and
 a 13% reduction in our global workforce over the last year, in line with current production
levels.
Growth strategy
The opportunities before Rakon remain real, growing and significant. The 3-year strategic growth plan
is essential to ensure our market leadership position is retained and we are positioned to capture these
opportunities. The growth plan was developed to deliver improved revenue and margins and,
importantly, diversify revenue to provide increased protection through the cycles.

Page 4 of 5 w w w . r a k o n . c o m

During the year Rakon has launched its next generation Niku™ semiconductor chip and MercuryX™
product range for AI and cloud data centres. This growing AI computing hardware product portfolio is
already contributing to revenue and is projected to provide additional design wins, collaborations, and
revenue growth within the next 12 months.

In May 2024, Rakon signed its largest ever space contract with a global leader in communications
satellites. Rakon will supply its Master Reference Oscillator subsystems for a new satellite constellation,
with deployment starting in FY26 and running for an initial period of 3 years, with the potential for a
substantial extension thereafter. The contract will provide over $3 million of revenue for Rakon in FY25.
This contract win is a significant development for Rakon’s space business and tangible confirmation that
our strategy and investments to become a key supplier in this rapidly growing ecosystem are delivering
results. Rakon continues to target strategic high-level contracts in this sector and is confident that its
latest products and technology have put the company in a strong position to deliver future wins.

Rakon is progressing well with transferring select product lines from France and New Zealand to the
new India facility and this is a key area of focus for the current financial year. This will bring some
margin improvement later in the current financial year by increasing manufacturing cost efficiencies
and is expected to bring more benefit as this transfer program continues into the future.

Non-binding indicative proposal
On 18 December 2023, Rakon announced it was undertaking a process to consider an unsolicited, non-
binding, indicative proposal (the Proposal). Rakon refers shareholders to its market announcements on
this matter, with the latest announcement being on 13 May 2024.
Rakon has no further updates in respect of the Proposal at this time. Shareholders are reminded that
there is no certainty that any transaction will eventuate from the Proposal or as to the pricing or timing
of any transaction.

Outlook
As Rakon heads into the first half of FY25, it will continue to be challenging in both Telecommunications
and Positioning segments with uncertainty as to when the mobile operators will recommence deferred
investment in the 5G networks. With a strong order book for FY25, Rakon’s space and defence segment
is expected to continue along its current growth trajectory. This includes the new contract signed in May
which will have a $3 million revenue benefit. Rakon will continue to focus on efficiency initiatives driving
further cost savings and improving future resilience and competitiveness.
Rakon continues to have confidence in the fundamental growth drivers supporting its core markets. Tier
1 customers are currently anticipating better markets towards the end of FY25. With an established and
strong presence in the NewSpace segment, the recent major contract win, and several new product
launches, Rakon is in a strong position to secure further contract wins.

Page 5 of 5 w w w . r a k o n . c o m

Rakon has a solid foundation of products, innovation and customer service, a clear plan to grow and
efficiency initiatives underway to improve its profitability. The opportunities across ongoing evolution
of 5G, Cloud and Edge Computing, AI, autonomous machines and vehicles, aerospace and the entire
NewSpace ecosystem remain significant and growing.
Ends
Authorised for release to the NZX by Rakon’s Board of Directors.
Financial Results and Business Update details
Rakon’s FY24 Financial Results and Business Update, presented by CEO Sinan Altug and CFO Drew
Davies, is scheduled to start at 11.00am NZST on Wednesday 29 May 2024. 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
+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 FY2024 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).

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RAKON LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL
STATEMENTS 2024

The Directors are responsible for ensuring that the consolidated financial statements fairly present
the financial position of the Group as at 31 March 2024 (FY2024) and the financial performance
and cash flows for the year ended on that date.
The Directors consider that the consolidated financial statements of the Group have been
prepared using appropriate accounting policies, consistently applied and supported by reasonable
judgements and estimates, and that all relevant financial reporting and accounting standards have
been followed.
The Directors believe that proper accounting records have been kept, which enable, with reasonable
accuracy, the determination of the financial position of the Company and the Group and facilitate
compliance of the consolidated financial statements with the Financial Markets Conduct Act 2013.
The Directors consider they have taken adequate steps to safeguard the assets of the Company and
the Group and to prevent and detect fraud and other irregularities.
The Directors present the consolidated financial statements, set out in pages 2 – 44, of Rakon
Limited and its subsidiaries for the year ended 31 March 2024.
The Board of Directors of Rakon Limited authorised these consolidated financial statements for
issue on 28 May 2024.
On behalf of the Directors
Directors’ StatementTable of Contents
LORRAINE WITTEN
CHAIR
S HORGAN
CHAIR OF THE AUDIT AND RISK COMMITTEE
Directors’ Statement 1
Consolidated Statement of Comprehensive Income 2
Consolidated Statement of Changes in Equity 3
Consolidated Balance Sheet 4
Consolidated Statement of Cash Flows 5
Notes to the consolidated financial statements 7
Independent Auditor’s Report 45
1
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

Note
2024
$000s
2023
$000s
Continuing operations
Revenue5128,010180,334
Cost of sales(70,151)(91,542)
Gross profit57,85988,792
Other operating income7350401
Operating expenses
Selling and marketing(11,139)(10,626)
Research and development6(17,684)(16,979)
General and administration(30,666)(31,214)
Total operating expenses(59,489)(58,819)
Other gains/(losses) – net84,0922,969
Operating profit2,81233,343
Finance income9529371
Finance costs9(662)(891)
Share of net losses of associates16(2,332)(1,460)
Profit before income tax34731,363
Income tax expense214,168(8,144)
Net profit after tax for the year attributable to equity holders
of the Company4,51523,219
Note
2024
$000s
2023
$000s
Other comprehensive income/(losses)
Items that may be reclassified subsequently to profit or loss
Increase/(decrease) in fair value cash flow hedges1,256(2,517)
Cost of hedging (190)(1,494)
Income tax relating to components of other
comprehensive income(298)1,123
Exchange differences on translation of foreign operations1,1841,774
Items that will not be reclassified subsequently to profit or loss
Decrease in fair value of equity investments – Thinxtra17(1,529)(753)
Other comprehensive income/(losses) for the year, net of tax 423(1,867)
Total comprehensive income for the year attributable to
equity holders of the Company4,93821,352
Earnings per share attributable to the equity holders of the CompanyCentsCents
Basic earnings per share23 2.0 10.2
Diluted earnings per share23 2.0 10.2
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2024
The accompanying notes form an integral part of these consolidated financial statements.
2
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
The accompanying notes form an integral part of these consolidated financial statements.
Note
Share capital
$000s
Retained
earnings
$000s
Other
reserves
$000s
Total equity
$000s
Balance at 1 April 2022181,024(23,126)(22,733)135,165
Net profit after tax for the year – 23,219–23,219
Currency translation differences24 – –1,7741,774
Cash flow hedges, net of tax24 – –(2,888)(2,888)
Changes in fair value of equity investments at fair value through other comprehensive income – Thinxtra 24 – –(753)(753)
Total comprehensive income for the year–23,219(1,867)21,352
Contribution of equity net of transaction costs
Employee share schemes
Value of employee services29––347347
Balance at 1 April 2023181,02493(24,253)156,864
Net profit after tax for the year –4,515–4,515
Currency translation differences24––1,1841,184
Cash flow hedges, net of tax24––768768
Changes in fair value of equity investments at fair value through other comprehensive income – Thinxtra 24––(1,529)(1,529)
Total comprehensive income for the year–4,5154234,938
Contribution of equity net of transaction costs
Dividend paid22 – (3,482) – (3,482)
Dividend reinvestment plan issues22568– – 568
Employee share schemes
Value of employee services29––398398
Balance at 31 March 2024181,5921,126(23,432)159,286
3
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

Consolidated Balance Sheet
As at 31 March 2024
The accompanying notes form an integral part of these consolidated financial statements.
Note
2024
$000s
2023
$000s
Assets
Current assets
Cash and cash equivalents1017,83121,717
Trade and other receivables1151,93651,421
Inventories1254,90662,614
Derivative financial instruments 25921,100
Financial asset at fair value through profit or loss25796
Current income tax asset1,001362
Total current assets125,773137,310
Non-current assets
Property, plant and equipment1340,14334,387
Intangible assets1410,8247,671
Right-of-use assets156,1663,435
Interest in associates1611,95314,154
Trade and other receivables112,7193,615
Financial asset at fair value through other comprehensive
income – Thinxtra173991,927
Derivative financial instruments25341,228
Deferred tax asset219,0853,543
Total non-current assets81,32369,960
Total assets207,096207,270
Note
2024
$000s
2023
$000s
Liabilities
Current liabilities
Borrowings181,4391,635
Trade and other payables1925,56529,978
Current income tax liabilities8521,688
Lease liabilities151,8171,562
Provisions201,0301,176
Derivative financial instruments253,0034,107
Total current liabilities33,70640,146
Non-current liabilities
Borrowings185,1583,600
Trade and other payables19–92
Provisions203,7813,057
Lease liabilities154,9562,507
Derivative financial instruments 25138940
Deferred tax liabilities217164
Total non-current liabilities14,10410,260
Total liabilities47,81050,406
Net assets159,286156,864
Equity
Share capital22181,592181,024
Other reserves24(23,432)(24,253)
Retained earnings1,12693
Total equity159,286156,864
4
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

Consolidated Statement of Cash Flows
For the year ended 31 March 2024
The accompanying notes form an integral part of these consolidated financial statements. Refer to note 10 for the breakdown of cash and cash equivalents.
2024
$000s
2023
$000s
Operating activities
Cash provided from
Receipts from customers136,611173,137
R&D grants received2,1382,092
Other income received594506
139,343175,735
Cash was applied to
Payment to suppliers and others(57,846)(95,749)
Payment to employees(59,770)(58,375)
Interest paid(662)(1,004)
Income tax paid(3,234)(9,495)
(121,512)(164,623)
Net cash inflow from operating activities17,83111,112
Investing activities
Cash was applied to
Purchase of property, plant and equipment(12,715)(17,342)
Purchase of intangibles(4,314)(1,356)
Net cash outflow from investing activities(17,029)(18,698)
2024
$000s
2023
$000s
Financing activities
Cash was provided from
Proceeds from borrowings875–
875–
Cash was applied to
Repayment of borrowings(1,317)(10,746)
Lease liabilities payments(1,739)(2,472)
Dividends paid(2,914)–
(5,970)(13,218)
Net cash outflow from financing activities(5,095)(13,218)
Net decrease in cash and cash equivalents (4,293)(20,804)
Effects of exchange rate changes on cash and cash equivalents4073,292
Cash and cash equivalents at the beginning of the year21,71739,229
Cash and cash equivalents at the end of the period17,83121,717
Composition of cash and cash equivalents
Cash and cash equivalents17,83121,717
Total cash and cash equivalents 17,83121,717
5
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

Consolidated Statement of Cash Flows (continued)
For the year ended 31 March 2024
The accompanying notes form an integral part of these consolidated financial statements.
2024
$000s
2023
$000s
Reconciliation of net profit to net cash flows from
operating activities
Reported net profit after tax4,51523,219
Adjustments for
Depreciation and amortisation expense8,1327,777
Net (decrease)/increase in allowance for expected credit loss(497)222
Provisions provided5851,103
Movement in foreign exchange rates3,834(1,333)
Share of net loss of associate2,3321,460
Deferred tax movement(5,785)(644)
Employee share based expense446347
Gain from termination of lease(126)–
8,9218,932
Change in operating assets and liabilities
Decrease/(Increase) in trade and other receivables2,816(8,794)
Decrease/(Increase) in inventories7,708(5,293)
Increase in provisions(7)785
Decrease in trade and other payables(4,505)(7,125)
Increase in tax provisions and deferred tax(1,617)(612)
Total impact of changes in working capital items4,395(21,039)
Net cash flow from operating activities17,83111,112
6
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

Notes to the consolidated financial statements
1. General information 8
2. Going concern 8
3. Statement of material accounting policies 8
4. Segment information 9
5. Revenue 12
6. Expenditure included in net profit 13
7. Other operating income 15
8. Other gains/(losses) – net 15
9. Net finance (costs)/income 15
10. Cash and cash equivalents 16
11. Trade and other receivables 16
12. Inventories 17
13. Property, plant and equipment 18
14. Intangible assets 20
15. Leases 23
16. Interest in associates 24
17. Financial asset at fair value through other comprehensive income – Thinxtra 26
18. Borrowings 27
19. Trade and other payables 29
20. Provisions 29
21. Taxation 30
22. Share capital 32
23. Earnings per share 33
24. Other reserves 34
25. Financial risk and capital management 35
26. Capital Commitments 41
27. Principal subsidiaries 41
28. Related party transactions 42
29. Share based payments 42
30. Contingencies 44
31. Subsequent events 44
7
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

1. GENERAL INFORMATION
Rakon Limited (‘the Company’ and parent 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 consolidated 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 consolidated financial statements of the Group have been presented in New Zealand dollars
and have been rounded to the nearest thousand unless otherwise indicated.
2. GOING CONCERN
These consolidated financial statements have been prepared on a going concern basis. The Directors
are not aware of material uncertainties related to events or conditions that may cast significant doubt
upon the entity’s ability to continue as a going concern. In making this assessment management
and the Directors considered factors including the current profitability of the Group, current market
conditions, Group liquidity and forecast.
3. STATEMENT OF MATERIAL ACCOUNTING POLICIES
a. Basis of preparation and measurement base
The consolidated financial statements of the Group 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. The consolidated financial statements also comply with International
Financial Reporting Accounting Standards (IFRS Accounting Standards). The Group is a
Tier 1 for-profit entity.
The consolidated financial statements have been prepared on a historical cost basis, with the
exception of certain financial assets and liabilities, and equity instruments, which are measured
at fair value.
b. Basis of consolidation and equity accounting
The financial statements of the subsidiaries are included in the Group’s consolidated financial
statements from the date on which control commences until the date on which control ceases,
refer to note 27 for information on subsidiaries. All material intercompany transactions, balances
and unrealised gains on transactions between the subsidiaries are eliminated on consolidation.
Interest in associates are accounted for by using the equity method, refer to note 16.
c. Material accounting estimates and judgements
The preparation of the consolidated 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. The estimates and
assumptions that involved a higher degree of judgement or complexity, or are material to the
consolidated financial statements are listed below and disclosed within the specified notes:
• Calculation of inventory provision (note 12)
• Valuation of the Group’s investment in Thinxtra (note 17)
• Recognition of deferred tax assets from carry forward losses (Rakon France) (note 21)
d. Material accounting policy information and new accounting standards
Material accounting policy information adopted in the preparation of these consolidated financial
statements are disclosed within each of the applicable notes to the consolidated financial
statements. The accounting policies have been consistently applied to all years presented with
the exception of the following standards and amendments that the Group is applying for the
first time for its annual reporting period commencing 1 April 2023:
Disclosure of Accounting Policies – Amendments to NZ IAS 1 and IFRS Practice Statement 2.
The consolidated financial statements have been updated to reflect changes to the disclosure of
accounting policies. Previously, “significant” accounting policies were disclosed. The amendments
require disclosing material accounting policies instead. This change did not have material impact on
Group’s reporting.
8
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Definition of Accounting Estimates – Amendments to NZ IAS 8. This change did not have a material
impact on the Group’s reporting.
NZ IFRS 17 Insurance Contracts became effective for annual periods commencing on or after
1 January 2023. The adoption of NZ IFRS 17 did not have a material impact to the Group’s reporting.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to
NZ IAS 12. This amendment did not have a material impact on the Group’s reporting.
e. New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and interpretations listed
below have been published that are not mandatory for 31 March 2024 reporting periods and have
not been early adopted by the Group. These standards, amendments or interpretations are not
expected to have a material impact on the entity in the current or future reporting periods and on
foreseeable future transactions.
• Amendments to FRS 44
• Classification of Liabilities as Current or Non-current – Amendments to NZ IAS 1 and
Non-current Liabilities with Covenants – Amendments to NZ IAS 1
IFRS 18 Presentation and Disclosure in Financial Statements, as a replacement for IAS 1. Most
of the presentation and disclosure requirements would largely remain unchanged together with
other disclosures carried forward from IAS 1. The Group is currently assessing the impact and will
disclose more detailed assessments in the future.
f. Foreign currency translation
Functional and presentation currency
The financial statements of each of the Group’s overseas operations are measured using the
currency of the primary economic environment in which the overseas entity operates (the functional
currency). The consolidated financial statements are presented in New Zealand dollars, (the
presentation currency), which is also the functional currency of the Company.
Transactions and balances
Foreign currency transactions are translated into the relevant functional currency of the Group’s
overseas operations at the exchange rates at the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies at balance date are translated to the functional currency
at the foreign exchange rate at that date. Foreign exchange differences arising from translation are
recognised in the Consolidated Statement of Comprehensive Income, except for qualifying cash
flow hedges which are recognised in other comprehensive income (OCI). Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in
foreign currencies that are stated at fair value are translated at foreign exchange rates at the dates
the fair value was determined.
The assets and liabilities of all Group companies that have a functional currency that differs
from the Group’s presentation currency, including goodwill and fair value adjustments arising on
consolidation, are translated to New Zealand dollars at foreign exchange rates at balance date. The
revenues and expenses of these foreign operations are translated to New Zealand dollars at rates
approximating to the foreign exchange rates at the dates of the transactions. Exchange differences
arising from the translation of foreign operations are recognised in the foreign currency translation
reserve, refer to note 24.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as
assets and liabilities of the foreign entity and are translated at the foreign exchange rates at the
balance date.
4. 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. Material 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.
9
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

a. Segment results
Information relating to each reportable segment is set out below:
31 March 2024
NZ
$000s
France/
India
$000s
France
HiRel
$000s
T’maker
$000s
Other
1
$000s
Total
$000s
Segment revenue by market
Telecommunications38,81032,296256–(4,505)66,857
Global Positioning14,089426360–(1,016)13,859
Space and Defence15,7362,55119,779–(1,257)36,809
Other4,3281406,516–(499)10,485
Total segment revenue
by market72,96335,41326,911–(7,277)128,010
Underlying EBITDA9,3161,7184,501(697)(1,382)13,456
Total assets
2
101,96955,47235,79111,9531,911207,096
Additions of property, plant and
equipment, and intangibles6,9305,4844,615––17,029
Total liabilities
3
23,43613,7669,531–1,07747,810
31 March 2023
NZ
$000s
France/
India
$000s
France
HiRel
$000s
T’maker
$000s
Other
1
$000s
Total
$000s
Segment revenue by market
Telecommunications65,87439,215453–(4,961)100,581
Global Positioning35,287112233–(1,790)33,842
Space and Defence10,4482,84616,248–(640)28,902
Other12,2232345,390–(838)17,009
Total segment revenue by
market123,83242,40722,324–(8,229)180,334
Underlying EBITDA39,1177,5801,642622(6,779)42,182
Total assets
2
111,43552,03228,12614,1541,523207,270
Additions of property, plant and
equipment, and intangibles5,93510,9051,858––18,698
Total liabilities
3
26,86914,0557,930–1,55250,406
1
Revenue is losses on cash flow hedges apportioned to each market based on hedged currency. The Group’s
treasury function is carried out centrally at head office in New Zealand, refer note 25.
2
Segment assets are measured in the same way as in the consolidated financial statements. These assets are
presented as it is regularly provided to the chief operating decision maker.
3
Segment liabilities are measured in the same way as in the consolidated financial statements. These liabilities are
presented as it is regularly provided to the chief operating decision maker.
10
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

b. 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 that 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%
(2023: 37.07%) ownership interest, refer to note 16.
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.
c. Reconciliation of Underlying EBITDA to net profit after tax for the year
Underlying EBITDA is a non-GAAP measure that has not been presented in accordance with GAAP.
The Directors present Underlying EBITDA as a useful non-GAAP measure to investors, in order
to understand the underlying operating performance of the Group and each operating segment,
before the adjustment of specific cash and non-cash items and before cash impacts relating to
the capital structure and tax position. Underlying EBITDA is considered by the Directors to be the
closest measure of how each operating segment within the Group is performing. Management
uses the non-GAAP measure of Underlying EBITDA internally to assess the underlying operating
performance of the Group and each operating segment.
Continuing operationsNote
2024
$000s
2023
$000s
Underlying EBITDA13,45642,182
Depreciation and amortisation6(8,132)(7,777)
Adjustment for associate share of interest, tax and
depreciation(1,642)(2,100)
Finance costs – net9(133)(520)
Long term incentive scheme29(643)(376)
One-off costs relating to acquisition proposal6(2,206)–
Other non-cash items(353)(46)
Profit before income tax34731,363
Income tax benefit/(expense)214,168(8,144)
Net profit after tax for the year4,51523,219
11
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

5. 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 also 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.
Typically, control transfers to the customer at the same time as the legal title of the product
is passed to the customer. This is usually on terms of delivery of the product. The transaction
price includes all amounts that the Group expects to be entitled to, net of any sales taxes.
A receivable is recognised based on the delivery terms of the products as this is the point in time
when the consideration is unconditional.
Sale of products – at a point in time
The Group recognises revenue when the performance obligations are satisfied by transferring
control of products to the customer based on the specified contract price.
Products and services transferred over time – France HiRel segment
For certain contracts in the France HiRel segment, the revenue is recognised over time as the
Group’s performance creates an asset, which does not have an alternative use to the Group, and the
Group has an enforceable right to be paid for work completed to date. The Group applies judgement
by using the percentage-of-completion method to determine the appropriate amount to recognise
in a given period. The stage of completion is measured by reference to the contract costs incurred
up to the end of the reporting period as a percentage of total estimated costs for each contract.
In case of fixed price contracts, payments are received from the customer based on an agreed
payment schedule. A contract liability is recognised when the payments exceed estimated work
completed, and contract asset when estimated work completed exceeds payments.
a. Reportable segment revenue from contracts with customers
31 March 2024
NZ
$000s
France/
India
$000s
France
HiRel
$000s
Other
1
$000s
Total
$000s
Products transferred at a point in time72,96335,41322,010(7,277)123,109
Products and services transferred
over time––4,901–4,901
Sales to external customers72,96335,41326,911(7,277)128,010
31 March 2023
NZ
$000s
France/
India
$000s
France
HiRel
$000s
Other
1
$000s
Total
$000s
Products transferred at a point in time123,83242,40719,437(8,229)177,447
Products and services transferred
over time––2,887–2,887
Sales to external customers123,83242,40722,324(8,229)180,334
1
Revenue is losses on cash flow currency hedges. The Group’s treasury function is carried out centrally at head
office in New Zealand, refer note 25.
12
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

b. 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.
2024
$000s
2023
$000s
Asia52,70782,516
North America47,77361,892
Europe25,51630,750
Others2,0145,176
Total segment revenue by geography128,010180,334
c. Assets and liabilities related to contracts with customers
The Group has recognised the following assets and liabilities related to contracts with customers in
France HiRel segment.
2024
$000s
2023
$000s
Total current contract assets4,029952
Total current contract liabilities(360)(872)
3,66980
The contract assets have increased as the Group has provided services ahead of the agreed payment
schedules. Customer contracts liabilities are payments received in advance for subsequent delivery
of services and goods to the customers. In prior year $872,000 was recognised as customer contract
liabilities, and is recognised as revenue in the year ended 31 March 2024. The remaining
performance obligations at 31 March 2024 have an expected duration of less than a year.
The performance obligation of the products and services transferred over time that were in progress
at 31 March 2023 were mainly completed during the year, with the exception of $87,000 relating
to one project. This is expected to be finalised in 2025. The remaining performance obligations at
31 March 2024 have an expected duration of less than a year. As a consequence, the Group does
not adjust any of the transaction prices for the time value of money.
6. EXPENDITURE INCLUDED IN NET PROFIT
Additional information in respect of expenses included in the Consolidated Statement of
Comprehensive Income is as follows:
a. Breakdown of expenses by nature
Employee benefit expenses
2024
$000s
2023
$000s
Wages and salaries54,24056,073
Redundancy costs305489
Contributions to defined plans907814
Increase in liability for retirement plan (note 20)310169
Increase in liability for long service leave (note 20)232114
Long term incentive plan (note 29)643376
Total employee benefit expenses56,63758,035
Depreciation and amortisation
2024
$000s
2023
$000s
Depreciation on property, plant and equipment (note 13)5,3064,336
Amortisation on intangible assets (note 14)9521,235
Depreciation on right-of-use assets (note 15)1,8742,206
Total depreciation and amortisation8,1327,777
Research and development
2024
$000s
2023
$000s
Research and development expenses20,65419,522
Research and development government grant(1,868)(1,309)
Research and development tax credit(1,102)(1,234)
Net research and development expense17,68416,979
13
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Fees to the auditors
2024
$000s
2023
$000s
Audit and review of financial statements
PwC New Zealand 566 478
PwC France 134 115
PwC India 44 42
PwC 744 635
BDO Limited (Hong Kong)
1
32 14
T S Tay Public Accounting Corporation (Singapore)
1
1011
MHA MacIntyre Hudson (UK)
1
4438
Total audit and review fees 830 698
Assurance and audit related services
2024
$000s
2023
$000s
Performed by PwC India
Certification of expenditure for the purposes of the Production
Linked Incentive Scheme 16 –
Total assurance and audit related services 16 –
Other services
Performed by PwC New Zealand
Access to training material through an on-line platform 1 –
Agreed-upon procedures in relation to India’s Scheme for
Promotion of Manufacturing of Electronical Components
and Semiconductors (SPECS) 7–
Total other services fees8 –
Total fees paid to auditors 854 698
1
The fee relates to the annual audit of the local territory financial statements.
Employee benefits expenses
Employee entitlements to salaries, wages and annual leave to be settled within 12 months of
balance date represent present obligations resulting from employees’ services provided up to the
balance date. These are calculated at undiscounted amounts based on remuneration rates that the
Group expects to pay.
Superannuation schemes
The Group’s New Zealand and overseas operations participate in their respective government
superannuation schemes. Where the Group is required to pay fixed contributions into a separate
entity, the Group has no legal or constructive obligations to pay further contributions if the fund
does not have sufficient assets to pay all employees the benefits relating to the employee service
in the current and prior periods. The contributions are recognised as an employee benefit expense
when they are due.
Acquisition proposal - costs related to indictive offer
The Group has incurred $2,206,000 in legal, consulting, additional directors’ fee and employee
retention costs. These are recorded in general administration cost under operating expenses.
Research and development
Expenditure on research activities has been undertaken with the prospect of gaining new scientific
or technical knowledge and understanding. Any research and development taxation credits and
government grant funding for research and development are recognised when eligibility criteria
have been met and there is a reasonable assurance that tax credits and the grants will be received.
Grants and tax credits from governments are recognised at their fair value. The research and
development grants and tax credits are recognised in trade and other receivables (note 11), and
in the Consolidated Statement of Comprehensive Income. Government grants are offset against
the related expenses over the periods in which those costs are recognised.
14
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

7. OTHER OPERATING INCOME
Revenue from activities which are not related to principal activities of the Group:
2024
$000s
2023
$000s
Other income341281
Sale of raw materials944
Covid-19 government assistance
1
–76
Total other operating income350401
1
Eligible New Zealand Covid leave support subsidy
8. OTHER GAINS/(LOSSES) – NET
2024
$000s
2023
$000s
Gain/(loss) on disposal of property, plant and equipment,
and intangible assets8(33)
Foreign exchange gains/(losses) – net
Forward foreign exchange contracts
Financial asset at fair value through profit or loss(1,345)(880)
Revaluation of foreign denominated monetary assets and liabilities
1
5,4293,882
Total foreign exchange gains/(losses) – net4,0843,002
Total other gains/(losses) – net4,0922,969
1
Includes realised and unrealised gains/(losses) arising from accounts receivable and accounts payable.
9. NET FINANCE (COSTS)/INCOME
Interest income and costs are recognised in the Consolidated Statement of Comprehensive Income
as it accrues, using the effective interest rate applicable.
2024
$000s
2023
$000s
Finance income
Interest income529371
Finance costs
Interest expense on borrowings(309)(596)
Unwinding of lease make good provision(19)(17)
Interest on lease liabilities (note 15) (334)(278)
Total finance costs(662)(891)
Net finance costs(133)(520)
Interest expense rate
The average interest rate was as follows. Additional information on borrowings is presented in
note 18.
• ASB facility in New Zealand 8.57% – (2023: 7.23%)
• HDFC Bank in India 9.15% (2023: 8.75%)
• Crédit Agricole Provence Côte D’Azur facility in France 0.55% (2023: 0.55%)
• BPI France 7.2%
15
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

10. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise of cash balances, call deposits, and other short-term highly
liquid investments with original maturities of three months or less, that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown separately from borrowings on the Consolidated Balance
Sheet. The Group did not have any overdraft balance.
2024
$000s
2023
$000s
Cash at bank and on hand17,83121,717
11. TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognised initially at the amount of consideration that is
unconditional and subsequently measured at amortised cost using the effective interest method.
Due to the short-term nature of the trade and other receivables, their carrying amount is considered
to be the same as their fair value.
Trade receivables are amounts due from customers, who are considered of acceptable credit quality,
for products or services performed in the ordinary course of the business and are non-interest
bearing. They are generally due for settlement within 30 to 120 days.
The Group has established credit policies under which each new customer is analysed individually
for credit-worthiness before payment and delivery terms and conditions are agreed. The Group’s
review includes trade references and external ratings, where appropriate and in some cases bank
references. Purchase limits are established for each customer, which represents the maximum open
amount; these limits are reviewed periodically. Customers that fail to meet the Group’s benchmark
credit-worthiness may transact with the Group only on a prepayment basis.
The trade receivables balances included $9,873,000 (2023: $13,506,000) representing 28%
(2023: 31%) due from the Group’s three largest customers. The balances due from these customers
are current and are considered a low credit risk to the Group.
The maximum exposure to credit risk at balance date is the carrying value of each class of
receivable mentioned below. The Group does not hold any collateral as security.
a. Trade and other receivables balances
2024
$000s
2023
$000s
Trade receivables34,72742,961
Less: allowance for expected credit loss(705)(1,202)
Net trade receivables34,02241,759
Prepayments1,7431,528
GST/VAT receivable478816
Receivables from related parties (note 28)245223
Other receivables
1
18,16710,710
Total trade and other receivables54,65555,036
Less non-current other receivables
1
2,7193,615
Current trade and other receivables51,93651,421
1
Other receivables includes research and development related tax credits and government grants, deposits held by
bank for guarantees, revenue cut-off adjustment and prepaid expenses.
b. Allowance for expected credit loss
Impairment losses on trade receivables are presented as net impairment losses within operating
profit. Trade receivables are written off when considered to have become uncollectable. Subsequent
recoveries of amounts previously written off are credited against the same line item.
The Group applies the NZ IFRS 9 Financial Instruments simplified approach to measure the
expected credit loss provision that uses a lifetime expected loss allowance for all trade receivables
and contract assets. The management applies judgement based on the historical credit losses,
customer aging, and forward-looking information on factors affecting the ability of the customers
to settle the receivables to calculate allowance for expected credit loss.
16
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

The loss allowance was determined as follows:
Current
$000s
Less than
30 days
past due
$000s
30 days to
120 days
past due
$000s
More than
120 days
past due
$000s
Total
$000s
As at 31 March 2024
Gross carrying amount of trade receivables 28,5383,9561,89334034,727
Expected loss rate 0.41%2.02%8.93%100.00%
Allowance for the expected credit loss11680169340705
As at 31 March 2023
Gross carrying amount of trade receivables 34,0445,7062,91851643,184
Expected loss rate 0.61%3.43%15.08%69.64%
Allowance for the expected credit loss2071964403591,202
The reconciliation of the loss allowance is as follows:
2024
$000s
2023
$000s
Opening balance1,2021,002
(Decrease)/increase in allowance recognised in profit or loss during the year(507)222
Receivables written off during the year2(50)
Foreign exchange difference828
Allowance for expected credit loss7051,202
Trade receivables are written-off where all reasonable effort to collect the overdue have been
exhausted. Indicators that there is no expectation of recovery include failure of an overdue debtor
to engage in an agreed repayment plan.
12. INVENTORIES
Inventories are stated at the lower of cost (weighted average cost for raw materials, and standard
costs for finished goods) or net realisable value. Standard costs comprise direct materials, direct
labour and appropriate proportion of variable and fixed overhead expenditure, the latter being
allocated on the basis of normal operating capacity. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and selling expenses.
a. Inventory classification and balances
2024
$000s
2023
$000s
Raw materials21,26825,272
Work in progress25,54827,681
Finished goods8,0909,661
Total inventories54,90662,614
b. Amounts recognised in profit and loss
Inventories recognised as an expense during the year amounted to $57,725,000 (2023: $79,095,000).
Write-downs of inventories to net realisable value amounted to $3,000 (2023: $9,000). An additional
inventory provision of $515,000 was incurred during the year (2023: $2,835,000), and unused
provision of $52,000 (2023: Nil) reversed. These were included in the cost of sales.
c. Inventory provision
In recognising the provision for inventory, material judgement has been applied by considering
a range of factors including the expected future consumptions.
An inventory provision of $6,891,000 (2023: $7,512,000) is included in the inventory balances
above. The carrying value of inventory items were reviewed in detail with adjustments to provisions
made largely on an item-by-item basis.
During the year $942,000 (2023: $2,253,000) of provisioned inventory was scrapped.
17
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

13. PROPERTY, PLANT AND EQUIPMENT
The Group recognises the cost of an item as property, plant and equipment only if it is probable
that future economic benefits associated with the item will flow to the entity, and the cost of the
item can be measured reliably.
a. Cost
The cost of purchased property, plant and equipment is the value of the consideration given to
acquire the assets and the value of other directly attributable costs, which have been incurred in
bringing the assets to the location and condition necessary for their intended service. The initial
estimate of the costs of dismantling and removing the items and restoring the site on which it
is located is also included in the cost. Where parts of an item of property, plant and equipment
have different useful lives, they are accounted for as separate items. The costs of day-to-day
maintenance of an asset are not included in the carrying amount of the asset but expensed
when incurred.
After initial recognition, the property, plant and equipment are stated at cost, less accumulated
depreciation and any impairment losses.
b. Depreciation methods and useful lives
Depreciation of property, plant and equipment, other than freehold land, is calculated on a straight-
line basis to expense the cost of the assets to their expected residual values over their useful lives
as follows:
LandNil
Buildings15 – 30 years
Leasehold improvements5 – 25 years
Plant and equipment1 – 20 years
Computer hardware1 – 10 years
Furniture and fittings3 – 20 years
Assets under constructionNil
The assets’ residual values and useful lives are reviewed, and adjusted if applicable at each
balance date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying
amount and are recognised within the ‘other gains/(losses) – net’ in the Consolidated Statement
of Comprehensive Income.
c. New Rakon India manufacturing facility
On 14 June 2023, the new state of the art research and manufacturing Centre of Excellence, located
in the SEZ Aerospace Park, Bengaluru (Bangalore) was inaugurated.
18
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

d. Property, plant and equipment breakdown
Land and
buildings
$000s
Leasehold
improve–
ments
$000s
Plant and
equipment
$000s
Computer
hardware
$000s
Other
$000s
Assets
under
construction
$000s
Total
$000s
At 31 March 2022
Cost 2,75010,946105,5485,0612,5924,448131,345
Accumulated depreciation
& impairment(381)(9,188)(93,804)(4,298)(2,286)–(109,957)
Net book value2,3691,75811,7447633064,44821,388
Year ended 31 March 2023
Opening net book value 2,3691,75811,7447633064,44821,388
Foreign exchange
differences68(14)2511414(330)3
Additions392602,76267726613,33817,342
Disposals–(726)(4,787)(408)(113)(8)(6,042)
Depreciation charge(66)(268)(3,457)(504)(41)–(4,336)
Depreciation reversal
on disposals–7254,766401113–6,005
Transfers(97)743,0404018(3,075)–
Transfers from intangibles––31––(4)27
Closing net book amounts2,3131,80914,35098356314,36934,387
At 31 March 2023
Cost 2,79710,767108,4885,5512,86214,369144,834
Accumulated depreciation
& impairment(484)(8,958)(94,138)(4,568)(2,299)–(110,447)
Net book value2,3131,80914,35098356314,36934,387
Land and
buildings
$000s
Leasehold
improve–
ments
$000s
Plant and
equipment
$000s
Computer
hardware
$000s
Other
$000s
Assets
under
construction
$000s
Total
$000s
At 31 March 2023
Cost 2,79710,767108,4885,5512,86214,369144,834
Accumulated depreciation
& impairment(484)(8,958)(94,138)(4,568)(2,299)–(110,447)
Net book value2,3131,80914,35098356314,36934,387
Year ended 31 March 2024
Opening net book value 2,3131,80914,35098356314,36934,387
Foreign exchange
differences1286220425170571
Additions1,5436835,3315881,1013,46912,715
Disposals–(1,395)(5,508)(60)(238)(949)(8,150)
Depreciation charge(70)(306)(4,323)(561)(46)–(5,306)
Depreciation reversal
on disposals(228)1,2204,940(125)119–5,926
Transfers5,361635,498148115(11,185)–
Closing net book amounts9,0472,13620,4929751,6195,87440,143
At 31 March 2024
Cost 9,82910,180114,0146,2293,8465,874149,972
Accumulated depreciation
& impairment(782)(8,044)(93,522)(5,254)(2,227)–(109,829)
Net book value9,0472,13620,4929751,6195,87440,143
19
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

14. INTANGIBLE ASSETS
The Group recognises intangible assets where it is able to demonstrate control on the asset to
obtain future economic benefit. The Group also recognises internally generated intangible assets
arising from development phase of an internal project if following conditions are demonstrated:
• the technical feasibility and the intention to complete the intangible asset
• how the intangible asset will generate probable future economic benefits
• the availability of adequate technical, financial and other resources to complete
the development and to use the intangible asset
• ability to measure reliably the expenditure attributable to the intangible asset during
its development
a. Cost
Identifiable intangible assets that are acquired or developed by the Group are stated at cost less
accumulated amortisation and impairment losses. Subsequent expenditure on intangible assets
is capitalised only when it increases the future economic benefits embodied in the specific asset
to which it relates. All other expenditure is expensed as incurred.
b. Amortisation and useful lives
Amortisation is charged to the ‘operating expenses’ in the Consolidated Statement of
Comprehensive Income on a straight-line basis over the estimated useful lives as follows:
GoodwillNil
Patents20 years
Software3 – 10 years
Product development3 – 10 years
Assets under constructionNil

c. Intangible breakdown

Goodwill
$000s
Patents
$000s
Software
$000s
Product
development
$000s
Assets under
construction
$000s
Total
$000s
At 31 March 2022
Cost 1,2933,2439,18617,76487632,362
Accumulated amortisation
& impairment–(2,600)(8,399)(14,199)–(25,198)
Net book value1,2936437873,5658767,164
Year ended 31 March 2023
Opening net book value 1,2936437873,5658767,164
Foreign exchange
differences–38765312422
Additions –101934297241,356
Disposals––(198)(2,719)–(2,917)
Amortisation charge––(428)(807)–(1,235)
Amortisation reversal
on disposals––1902,718–2,908
Transfers–––173(173)–
Transfers from property,
plant & equipment––4–(31)(27)
Closing net book amounts1,2936915553,4241,7087,671
At 31 March 2023
Cost 1,2933,4199,33516,5701,70832,325
Accumulated amortisation
& impairment–(2,728)(8,780)(13,146)–(24,654)
Net book value1,2936915553,4241,7087,671
20
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Goodwill
$000s
Patents
$000s
Software
$000s
Product
development
$000s
Assets under
construction
$000s
Total
$000s
Year ended 31 March 2024
Opening net book value 1,2936915553,4241,7087,671
Foreign exchange
differences–(176)(138)112–(202)
Additions –2291675013,4174,314
Disposals–––(154)(3)(157)
Amortisation charge––(212)(740)–(952)
Amortisation reversal
on disposals___150–150
Transfers–––47(47)–
Closing net book amounts1,2937443723,3405,07510,824
At 31 March 2024
Cost 1,2933,6489,50617,5595,07537,081
Accumulated amortisation
& impairment–(2,904)(9,134)(14,219)–(26,257)
Net book value1,2937443723,3405,07510,824
d. Software
The Group may design and develop identifiable and unique software products for their use. These
are recognised as intangible assets where the capitalisation criteria are met. Directly attributable
costs that are capitalised as part of the software include employee costs and an appropriate
portion of relevant overheads. Capitalised development costs are recorded as intangible assets and
amortised from the point at which the asset is ready for use. Software-as-a-Service related costs
are expensed as incurred unless they are paid to the suppliers or subcontractors of the suppliers for
configuration and customisation.
e. Product development
Expenditure on development activities, whereby research findings are applied to a plan or design
for the production of new or substantially improved products and processes, is capitalised based
on judgement if the product or process is technically and commercially feasible and the Group has
sufficient resources to complete development. Other development expenditure is recognised in the
Consolidated Statement of Comprehensive Income as an expense when incurred.
Total capitalised development costs are $8.4m (2023: $5.1m) at balance date, made up of product
development assets and assets under construction. During the year, specific product development
projects and projects in progress were reviewed for recoverability based on the expected cash
flows to be generated by the projects. The expected cash flows supported the carrying values
and no impairment was recorded.
The Group estimates the useful life of the new product development assets based on the
material judgement of the technical advancements of such assets and experiences with similar
assets. The actual useful life may be shorter or longer depending on technical innovations and
competitor actions.
f. Impairment tests for goodwill and the cash generating units (CGUs)
Goodwill is attributed to business units acquired through business combination and represents the
excess of the acquisition cost over the fair value of the acquired net assets. Goodwill is allocated to
cash-generating units (CGU) and is tested annually for impairment, or more frequently if there is an
impairment indicator. The business units are determined to be the CGUs of the Group.
The current balance of goodwill was generated on 2 May 2018, when the Group acquired
the remaining 51% of the issued shares it did not own in Centum Rakon India Private Limited,
a previously held joint venture. Subsequent to acquisition, the name of the investment was
changed to Rakon India Private Limited.
21
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Impairment tests for CGUs within the Group
The carrying amounts of the Group’s other non-financial assets are reviewed at each balance date
to determine whether there is any indication of impairment. If an indicator of impairment exists, the
asset’s or CGU’s recoverable amount is estimated being the higher of an asset’s fair value less costs
to sell and the asset’s value in use (VIU). An impairment loss is recognised whenever the carrying
amount of an asset or its CGU exceeds its recoverable amount. Impairment losses are recognised in
the Consolidated Statement of Comprehensive Income. Impairment losses recognised in respect of
CGUs are allocated first to reduce the carrying amount of any goodwill allocated to CGUs and then,
to reduce the carrying amount of the other assets in the unit on a pro rata basis. An impairment loss
is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had
been recognised. Accumulated impairment losses on goodwill are not reversed.
As at 31 March 2024, the Group concluded that there were no indicators of impairment relating to
the New Zealand, France, India and China CGU, same as the prior year. In making this assessment
management and the Directors considered factors including the current profitability of the Group,
the market capitalisation value of the Company in comparison to the Group’s net asset value, and
expected future profitability.
Goodwill
The Group has undertaken an impairment review and have concluded that the goodwill is
not impaired based on the current and future expected trading performance of Rakon India.
The calculation uses cash flow forecasts approved by the Board of Directors covering a five-year
period. Cash flows beyond the five year period are extrapolated using estimated terminal growth
rate which is consistent with the long term average growth rate observed by the Group. Based
on the assumptions below no impairment of goodwill has been recognised in the Consolidated
Statement of Comprehensive Income.
The forecasts used in impairment testing require assumptions and judgements about the future
which are inherently uncertain. Key assumptions are those to which the model is most sensitive
to. No reasonable adverse changes in the key assumptions would result in the carrying amount
to exceed the recoverable value.
Key assumptions used in the VIU calculation
2024AssumptionRange5 Year CAGR
IndiaAnnual sales growth rate
1
5% to 100%35.2%
Gross margin %
2
26% to 32%n/a
2023AssumptionRange5 Year CAGR
IndiaAnnual sales growth rate
1
4% to 21%8.6%
Gross margin %
2
28% to 36%n/a
1 Sales growth – Management has forecasted sales to grow over the period of the cash flow
projection, due to a combination of factors including industry forecasts for the key market
segments in which Rakon India operates, future product innovation and estimations of its own
share of the market reflective of the quality of its product range and technology advantages.
2 Gross margin – Management forecasted gross margin based on past performance and
its expectations of market development. Anticipated industry trends, product innovations,
manufacturing efficiency and raw material cost improvements have also been factored
into these gross margin assumptions.
Growth Rate and Discount Rate
The pre-tax discount rate used of 22.6% (2023: 24.6%). The terminal value within the VIU
assessment has been calculated using a terminal growth rate assumption of 2.5% (2023: 2.5%).
22
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

15. LEASES
Right-of-use assets and lease liabilities arising from a lease are initially measured at present value
by discounting the future lease payments using the interest rate implicit to the lease. Where it
is difficult to determine the implicit interest rate, the incremental borrowing rate is used. The
incremental borrowing rate is determined by using where possible, a recent third-party financing
received as a starting point and adjusted for any changes since finance was received. If not, a build-
up approach is used where the risk-free interest rate is adjusted for credit risk for leases and specific
to the lease terms.
Lease payments are allocated between the principal and finance cost. Right-of-use assets are
depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
The Group leases various properties, equipment and cars. Lease terms are negotiated on an
individual basis and contain a wide range of different terms and conditions. The leases do not
impose any covenants, and leased assets are not used as security for borrowings.
The Group’s lease agreements are for 12 months to 5 years and may have extension options
exercisable by the Group. Management applied judgement to determine the lease term for contracts
that include renewal options. The lease term assessment may significantly affect the amounts
recognised for lease liabilities and right-of-use assets. The Group has considered all facts and
circumstances in their decisions relating to lease extension options and have included all extension
options for the manufacturing facilities and offices in the calculations. The costs and business
disruption were considered material factors in this decision.
The lease term is reassessed if an option is exercised or terminated. The lease assets and liabilities
do not include potential future increases in variable lease payments based on an index. The lease
liability is reassessed when these increases occur and are adjusted against the right-of-use asset.
The total cash outflow for leases was $2,072,000 (2023: $2,472,000).
a. Right-of-use assets
Properties
$000s
Equipment
$000s
Moter
vehicle
$000s
Total
$000s
As at 31 March 2023
Cost10,7741522310,949
Accumulated depreciation(7,411)(86)(17)(7,514)
Net book value3,3636663,435
Opening net book value3,3636663,435
Foreign exchange difference14(66)–(52)
Additions 1,803––1,803
Modifications(914)––(914)
Disposals(1,448)(53)–(1,501)
Depreciation charge(1,868)–(6)(1,874)
Depreciation reversal on disposals & modification5,21653–5,269
Closing net book value6,166––6,166
As at 31 March 2024
Cost10,2861522310,461
Accumulated depreciation(4,120)(152)(23)(4,295)
Net book value6,166––6,166
23
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

b. Lease liabilities
2024
$000s
2023
$000s
Opening balance4,0695,480
Movements during the year
Additions 1,803648
Accertion on interest334278
Modifications2,719–
Payments(2,072)(2,472)
Foreign exchange difference(80)135
Closing value6,7734,069
Current and non-current lease liabilities
2024
$000s
2023
$000s
Current1,8171,562
Non-Current4,9562,507
6,7734,069
16. INTEREST IN ASSOCIATES
Associates are entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. The Group’s
associates are accounted for using the equity method. Under the equity method of accounting,
the investments are initially recognised at cost and adjusted thereafter to recognise the Group’s
share of the post-acquisition profits or losses of the associates in the Consolidated Statement
of Comprehensive Income. Dividends received or receivable from associates are recognised as
a reduction in the carrying amount of the investment. Unrealised gains on transactions between
the Group and its associates are eliminated to the extent of the Group’s interest in these entities.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the asset transferred.
Set out below is the significant associate of the Group. The entities listed below have share
capital consisting solely of ordinary shares, which are held directly by the Group. The proportion
of ownership interest is the same as the proportion of voting rights held.
a. Timemaker
Chengdu Timemaker Crystal Technology Co. Limited (Timemaker) is the world’s largest quartz
blank manufacturer and a key supplier to Rakon. The tables below provide summarised financial
information for Timemaker. The information disclosed reflects the amounts presented in the financial
statements of the associate and not the Group’s share of those amounts. They have been amended
to reflect adjustments made by the entity when using the equity method, including fair value
adjustments and modifications for differences in accounting policy.
The Company is entitled to two seats on the board of Timemaker which are filled by Brent
Robinson and Darren Robinson, and they participate in significant financial and operating
decisions as necessary. The Group therefore determined that it has significant influence based
on the representations by Brent Robinson and Darren Robinson in their governance duties
over Timemaker.
24
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

% of
ownership
interest
Net investment
Equity
accounted profit
Name of entity
Country of
incorporation
Nature of
relationship
Measurement
method
2024
$000s
2023
$000s
2024
$000s
2023
$000s20242023
Chengdu
Timemaker
Crystal
Technology
Co. Ltd
China37%37%Associate
Equity
method
11,95314,154(2,333)(1,460)
Timemaker
2024
$000s
2023
$000s
Summarised Statement of Comprehensive Income
Revenue35,90637,211
Depreciation and amortisation(4,557)(4,235)
Interest expenses(2,050)(1,923)
Loss for the period(6,331)(3,977)
Timemaker
2024
$000s
2023
$000s
Summarised Balance Sheet
Current assets
Cash & cash equivalents3,0593,320
Other current assets36,35239,032
Total current assets39,41142,352
Non-current assets42,17143,560
Current liabilities
Financial liabilities (excluding trade payables)29,28126,720
Other current liabilities17,64117,227
Total current liabilities46,92243,947
Non-current liabilities
Other non-current liabilities4,1265,496
Total non-current liabilities4,1265,496
Net assets30,53436,469
25
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Timemaker
2024
$000s
2023
$000s
Reconciliation of net assets to carrying amount
Rakon's share in %37%37%
Rakon's share of associate's net assets11,31913,520
Investment diluted634634
Carrying amount11,95314,154
Movement in carrying amount
Opening net assets 1 April14,15416,172
Dividend–(176)
Equity accounted loss(2,332)(1,460)
Foreign exchange movement131(382)
Carrying amount11,95314,154
17. FINANCIAL ASSET AT FAIR VALUE THROUGH OTHER COMPREHENSIVE
INCOME – THINXTRA
The Group elected to present changes in fair value of its investment in other comprehensive income
(FVOCI).
The investment is a strategic investment which is 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 this investments, any related balance within the OCI reserve is reclassified to retained earnings.
a. 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 31 March 2024 (31 March 2023: 7.0%). This is calculated on a fully diluted basis including the
exercise of any existing options.
The Directors adopted a valuation of A$366,000 or A$0.47 per share as at 31 March 2024 (31
March 2023: A$1.8 million or A$2.29 per share).
b. Valuation of the investment in Thinxtra at 31 March 2024
The Directors have considered whether there is an active market in Thinxtra to estimate the fair
value of the investment with particular reference to historical capital raised. The Directors concluded
that there is not an active market. Consequently, the Directors classified the Thinxtra investment
as a level 3 valuation. Financial instruments are classified as level 3 only if one or more of the key
judgements and inputs for the valuation is not based on observable market data.
26
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Recognising the significant estimation uncertainty, the Directors anticipate that the valuation will
evolve significantly over time. Several factors contribute to this uncertainty:
• Thinxtra is in its early stage of maturity.
• The IoT market and ecosystem in which it operates are still developing.
• Historical capital raises have shown a reduction in expected maximum enterprise values.
• As a private company, the shares of Thinxtra are not actively traded.
• The company’s actual performance continues to track behind available historical forecasts.
The Directors reviewed all available information to them as of 31 March 2024 and concluded
that the previous valuation methodology, which relied on the February 2020 capital raise price
of A$2.29 per share is no longer appropriate. Determinative points include Thinxtra continuing to
not meet forecast performance, the likely reliance on the raising of additional funds during calendar
year 2024 and the two convertible notes which were due to mature in 2023 having had their
maturities extended to March 2025.
In the current year, the Directors performed a valuation based on revenue multiples and recent
revenue achieved. This approach resulted in low and high valuation scenarios, with a midpoint
valuation adopted and led to a reduction of NZ$1.5m in fair value as of 31 March 2024 reflected
in the other comprehensive income valuation reserve.
Low
scenario
High
scenario
RevenueA$5.5mA$5.9m
Industry revenue multiple1.321.88
Minority discount40%15%
Valuation A$0.2mA$0.6m
The Directors continue to hold the view that the investment still retains value, recognising the
growth of the overall IoT market and Thinxtra’s successful history of raising funds. The Directors
also understand that significant changes in key judgments could have a significant effect on the
valuation and will continue to assess the value of the investment as new information arises.
18. BORROWINGS
The borrowings are initially recognised at fair value and subsequently measured at amortised cost.
Fees paid are recognised in the Consolidated Statement of Comprehensive Income when the draw
down occurs. Borrowings are removed from the Consolidated Balance Sheet when the obligation
specified in the contract is discharged, cancelled or expired. Borrowings are classified as current
liabilities unless the Group has an unconditional right to defer settlement of the liability for at least
12 months after balance date.
The Group is reliant on its bank facilities and equity as the principal sources of capital management.
The ability of the Group to remain in compliance with its banking covenants and/or maintain an
adequate cash balance has been considered by the Directors in the adoption of the going concern
assumption during the preparation of these consolidated financial statements.
a. Line of credits
The Group maintains following line of credits:

2024
$000s
2023
$000s
Current
French Government loan1,3311,513
Other borrowings108122
Total current borrowings1,4391,635
Non-current
French Government loan2,2373,450
Other borrowings
1
2,921150
Non-current borrowings5,1583,600
1
Funding used for bridging the timing between receiving and claiming French R&D tax credits has been
reclassified as borrowing. Previously reported as net-off asset.
27
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

ASB
The Company has access to a working capital facility of $10 million with ASB. The facility is
guaranteed by the Company. ASB has also applied certain financial undertakings on the Company.
During the year the Company operated within its required financial covenants. The facility was
reviewed and closed after year end, refer to note 31.
HDFC Bank
Rakon India has a 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.
The interest rate for the credit facility is 9.15% and at year end it remained undrawn.
Crédit Agricole Provence Côte D’Azur
The bank borrowings include a balance of €2.0m French government backed loan that was made
available to Rakon France (2023: €2.9m). 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 0.55% for the five year term of the loan. 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.
BPI France
BPI France is a French public sector investment bank which provides Rakon France advance
funding of up to 80% of R&D tax credit claim. Rakon France assigns the R&D tax credit receivable
to BPI as security. The payable to BPI is settled when the claim is paid by the French government.
As at 31 March 2024, the total amount owed by Rakon France was €1.6m (NZ$2.9m).
b. Borrowings balance
Refer to note 25 for the exposure of the Group’s bank borrowings to interest rate changes and
the contractual re-pricing dates at the balance date.
c. Borrowings costs
Borrowing costs that are directly attributable to the acquisition, construction or production
of a qualifying asset are capitalised. The Group did not have any capitalised borrowing costs.
Other borrowing costs are expensed in the period in which they incur, refer note 9.
d. Net debt reconciliation
Other asset
Liabilities from
financing activities
Cash/ bank
overdraft
$000s
Borrowings
$000s
Leases
$000s
Total
$000s
Balance as at 1 April 202239,229(15,981)(5,480)17,768
Cash flows to reduce liabilities(20,804)–2,472(18,332)
Acquisitions––(648)(648)
Repayment–10,746–10,746
Foreign exchange changes3,292–(135)3,157
Interest on lease liabilities––(278)(278)
Balance as at 31 March 202321,717(5,235)(4,069)12,413
Cash flows to reduce liabilities(4,293)–2,072(2,221)
Acquisitions–(875)(1,803)(2,678)
Modifications––(2,719)(2,719)
Reclassification
1
–(1,923)–(1,923)
Repayment–1,317–1,317
Foreign exchange changes40711980606
Interest on lease liabilities––(334)(334)
Balance as at 31 March 202417,831(6,597)(6,773)4,461
1
Funding used for bridging the timing between receiving and claiming French R&D tax credits has been
reclassified as borrowing. Previously reported as net-off asset.
28
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

19. TRADE AND OTHER PAYABLES
Trade and other payables represent liabilities for goods and services provided to the Group
prior to the end of the financial period, which are unpaid. The carrying amounts are considered
to be the same as fair values, due to their short-term nature. The trade payables are unsecured
and are usually paid within 60 days of recognition. Employee entitlements are liabilities for
wages and salaries, and annual leave in respect to employees’ services up to the reporting
date expected to be settled within 12 months of the reporting date.

2024
$000s
2023
$000s
Trade payables8,24710,802
Amounts due to related parties (note 28)9551,584
Employee entitlements11,64513,091
Accrued expenses4,7184,593
Total trade and other payables25,56530,070
Less non-current other payables–92
Current trade and other payables25,56529,978
20. PROVISIONS
A provision is recognised when the Group has a present legal or constructive obligation as a result
of a past event and it is probable that an outflow of economic benefits, which can be reliably
estimated, will be required to settle the obligation. The carrying value is the best estimate of the
management. If the effect is material, provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the time value of money
and where appropriate, the risks specific to the liability.
Retirement
provision
$000s
Long service
leave
$000s
Restructure
provision
$000s
Lease
make good
$000s
Total
$000s
At 31 March 20222,091642–7153,448
Charged to the Statement of
Comprehensive Income
Additional provisions
recognised1691144494071,139
Unwinding of discount–––1717
Unused amount reversed–(36)––(36)
Used during the year(350)(173)––(523)
Foreign exchange188–––188
At 31 March 20232,0985474491,1394,233
Charged to the Statement of
Comprehensive Income
Additional provisions
recognised310232126–668
Unwinding of discount–––2222
Unused amount reversed–(83)––(83)
Used during the year(186)(109)(466)(109)(870)
Reclassification
1
545192––737
Foreign exchange74–1713104
At 31 March 20242,8417791261,0654,811
Current portion3542261263241,030
Non-current portion2,487553–7413,781
Total provisions2,8417791261,0654,811
1
Accruals and provisions were reassessed and certain accounts were reclassified from Trade and other payables
to Provisions.
29
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

a. Retirement provision
The Group’s net obligation in respect of the French retirement indemnity plan is the amount of
future benefit that employees have earned in return for their service in the current and prior periods.
The obligation is calculated using the projected unit credit method and is discounted to its present
value and the fair value of any related assets is deducted. The French retirement indemnity plan
entitles permanent French employees to a lump sum on retirement. The payment is dependent
on an employee’s final salary and the number of years of service rendered.
French employees are entitled to a retirement pay-out once they have met specific criteria.
This is a one-off payment based on service time at retirement date. A provision has been
created to recognise this cost taking in consideration the time served, probability of attainment
and discount rates. An actuarial valuation was performed at 31 March 2024.
b. Long service leave
The Group’s net obligation in respect of long service leave is the amount of future benefit that
employees have earned in return for their service in the current and prior periods. The obligation
is calculated using the projected unit credit method and is discounted to its present value.
New Zealand employees are entitled to long service leave after the completion of 10 years of
continuous service, in the form of special holidays and allowance. A provision has been created
to recognise this cost, taking into consideration the time served, probability of attainment and
discount rates.
c. Lease make good
The Company is required to restore the leased premises at Mt Wellington, Auckland, New Zealand
and in UK to their original condition at the end of the respective lease terms. A provision is
recognised for the present value of the estimated expenditure required to remove any leasehold
improvements. These costs have been capitalised as part of the cost of leasehold improvements
and are amortised over the lease terms.
During the year, Rakon India moved out of their leased premises resulting in release of provision.
d. Restructure provision
Provision recognised for realignment in UK.
21. TAXATION
The Group is subject to income taxes in several jurisdictions. Judgement is required in determining
the worldwide provision for income taxes and recognition of deferred tax. There are many transactions
and calculations for which the ultimate tax determination is uncertain during the ordinary course
of business. Where the final tax outcome of these matters is different from the amounts that were
initially recorded, such differences will affect the income tax and deferred tax provisions in the
period in which such determination is made.
The current and deferred tax is recognised in the Consolidated Statement of Comprehensive
Income, except to the extent that it relates to items recognised in Statement of Other Comprehensive
Income (OCI), or directly in equity. In this case, the tax is recognised in the OCI or equity, respectively.
a. Income tax expense
Income tax expense is calculated on applicable income tax rate for each jurisdiction, and adjusted by
the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax
losses and adjustments relating to the prior period.

2024
$000s
2023
$000s
Current tax(1,617)(8,788)
Deferred tax expense5,785 644
Income tax benefit/(expense)4,168(8,144)
30
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

The tax on the Group’s result before tax differs from the theoretical amount that would arise using
the weighted average tax rate applicable to the results of the consolidated entities.
Reconciliation of income tax expense
2024
$000s
2023
$000s
Profit before tax 34731,363
Tax calculated at domestic tax rates applicable to profits in the
respective countries122(8,798)
Foreign exchange difference in income tax calculation13648
Non-deductibles305(204)
Non-taxable income(27)21
Expenses deductible for tax purposes44
Add other taxable income(6)–
Prior year adjustment(513)(101)
Associate result reported net of tax(386)(244)
Recognition and utilisation of previously unrecognised tax losses4,5501,191
Tax losses for which no deferred income tax asset was recognised(17)(61)
Income tax benefit/(expense)4,168(8,144)
The weighted average applicable tax rate is -1,201% (2023: 26%). Previously unrecognised French
carried forward losses was partially recognised during the period affecting weighted average
applicable tax rate.
Pillar 2 GloBE tax legislation to incorporate the OECD Model Rules was substantively enacted in
New Zealand on 27 March 2024 with an expected effective date of 1 January 2025. It consists of
a global minimum tax and a subject to tax rule that apply to multinational groups with consolidated
revenue of at least €750 million. These rules are not applicable to the company as the revenue
of the group of company is below the threshold. The Company will continue to monitor the
developments of the Pillar 2 legislations and evaluate the potential impact on the tax position
and financial statements.
b. Deferred tax
Deferred tax is recognised using the liability method on the temporary differences between the tax
bases of assets and liabilities and their carrying amounts. Deferred tax assets are recognised only
if management is certain that the future benefits of the taxable amount will be utilised. Judgement
is required when deferred tax assets are reviewed at each reporting date. The management uses
future forecasts to ascertain future benefits of deferred tax assets.
Property,
plant &
equipment
$000s
Employee
benefits
$000s
Right-of-
use Asset
($000s)
Lease
Liability
($000s)
Other
1
$000s
Future
income tax
benefit
$000s
Total
$000s
At 31 March 2022(611)1,480(1,255)1,430671–1,715
(Charged)/credited
to profit or loss(412)355363(377)715–644
Charged to equity––––1,122–1,122
Foreign exchange
difference4(1)––3(8)(2)
At 31 March 2023(1,019)1,834(892)1,0532,511(8)3,479
(Charged)/credited
to profit or loss(135)(184)(556)524(435)7,4276,641
Tax losses utilised–––––(873)(873)
Charged to equity–49––(299)–(250)
Foreign exchange
difference15––4717
At 31 March 2024(1,153)1,704(1,448)1,5771,7816,5539,014
1
Includes deferred tax arising from financial instruments (cash flow hedges) and inventory provisioning.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and current tax liabilities and when the deferred income taxes relate to the
same taxation authority.
31
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Deferred income tax assets are recognised for tax losses to the extent that the related tax benefit
is expected to be realised through future taxable profits. Rakon France has carried forward tax
losses of approximately €59m (2023: €69m) that can be used to offset future taxable income.
A deferred tax asset of $3,700,000 (2023: Nil) has been recognised in respect of a portion of
these losses as management considered there to be sufficient future taxable income against which
the tax losses can be offset. The remaining tax losses in Rakon France have remained unrecognised.
c. Imputation balances
Imputation credit account with Inland Revenue:
2024
$000s
2023
$000s
Imputation credit available for use in subsequent periods17,81520,094

22. SHARE CAPITAL
a. Ordinary shares
Ordinary shares are classified as equity. The holder of the ordinary shares present in a meeting or
by proxy is entitled to one vote per share held. The holder is also entitled to participate in dividends,
and to share in the proceeds of winding up the Group in proportion to the number of shares held.
Incremental costs directly attributable to the issue of new shares or options are shown in equity
as a deduction, net of tax, from the proceeds.
At 31 March 2024 the total number of ordinary shares that were authorised and issued, including
treasury shares, is 229,809,013 shares (2023: 229,055,272) made up as follows:
• 227,715,724 are fully paid shares (2023: 226,961,983). During the year, 753,741 shares were
issued under the dividend reinvestment plan.
• 321,972 unpaid ordinary shares were on issue and held in trust on behalf of participants in the
Rakon Share Plan (2023: 321,972)
• 1,771,317 unpaid ordinary shares were held by Rakon ESOP Trustee Limited for future
allocation to participants (2023: 1,771,317)
The share capital balance is $181,592,000 (2023: $181,024,000).
32
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

23. EARNINGS PER SHARE
Earnings per share is the amount of post-tax profit attributable to each share.
a. Basic
20242023
Weighted average number of ordinary shares on issue (000s)227,449226,962
Continuing operations
Earnings attributable to equity holders of the Group ($000s)4,51523,219
Basic earnings per share (cents per share)2.010.2
b. Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary
shares outstanding to assume conversion of all dilutive potential ordinary shares.
20242023
Weighted average number of ordinary shares on issue (000s)227,449226,962
Adjustments for dilutive potential ordinary shares (restricted ordinary
shares and share options)1,6011,601
Weighted average number of ordinary shares for diluted earnings
per share229,050228,563
Continuing operations
Earnings attributable to equity holders of the Group ($000s)4,51523,219
Diluted earnings per share (cents per share)2.010.2
b. Dividends
2024
$000s
2023
$000s
Full year dividend for the year ended 31 March 2023 of 1.5 cents
per fully paid ordinary share3,482–
Total dividends paid3,482–
Dividends paid in cash or satisfied by the issue of shares under the
dividend reinvestment plan during the year ended 31 March 2024:
Paid in cash2,914–
Satisfied by issue of shares568–
3,482–
Dividends not recognised at the end of the reporting period–3,482
On 23 May 2023, the Directors approved the payment of a fully imputed 2023 final dividend
of 1.5 cents per share which were paid on 7th August 2023, to shareholders on the register
at 5.00pm on 24th July 2023.
33
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

24. OTHER RESERVES
Foreign
currency
translation
reserve
$000s
Hedging
reserve
$000s
Share
option
reserve
$000s
OCI
1

revaluation
$000s
Total
$000s
At 31 March 2022(24,586)1,0043,172(2,323)(22,733)
Cash flow hedges
Fair value gains in year–5,712––5,712
Cost of hedge–(1,494)––(1,494)
Changes in fair value of equity
investments at fair value through other
comprehensive income – Thinxtra–––(753)(753)
Tax on fair value loss–(1,181)––(1,181)
Transfers to revenue–(8,229)––(8,229)
Income tax on transfers to revenue–2,304––2,304
Subsidiaries2,156–––2,156
Associate – Timemaker Group(382)–––(382)
Long term incentive plan––347–347
At 31 March 2023(22,812)(1,884)3,519(3,076)(24,253)
Foreign
currency
translation
reserve
$000s
Hedging
reserve
$000s
Share
option
reserve
$000s
OCI
1

revaluation
$000s
Total
$000s
Cash flow hedges
Fair value loss in year–8,533––8,533
Cost of hedge–(190)––(190)
Changes in fair value of equity
investments at fair value through other
comprehensive income – Thinxtra–––(1,529)(1,529)
Tax on fair value loss–(2,336)––(2,336)
Transfers to revenue–(7,277)––(7,277)
Income tax on transfers to revenue–2,038––2,038
Subsidiaries1,053–––1,053
Associate – Timemaker Group131–––131
Long term incentive plan––398–398
At 31 March 2024(21,628)(1,116)3,917(4,605)(23,432)
1
OCI – Thinxtra revaluation through other comprehensive income.
34
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

a. Foreign currency translation reserve
Recognises exchange differences arising on translation of the foreign controlled entities,
as described in note 3. The cumulative amount is reclassified to the Consolidated Statement
of Comprehensive Income when the investment is disposed.
b. Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value
of hedging instruments and the cost of hedging used in cash flow hedges. The cost of hedging
is subsequently recognised in the Consolidated Statement of Comprehensive Income, or directly
included in the initial cost or other carrying amount of a non-financial asset or non-financial liability.
c. Share option
The share-based payments reserve is used to recognise:
• the grant date fair value of options issued to employees but not exercised
• the grant date fair value of shares issued to employees
• the grant date fair value of deferred shares granted to employees but not yet vested.
d. Financial asset at fair value through other comprehensive income (FVOCI)
The Group has elected to recognise the change in fair value of investment in Thinxtra in
other comprehensive income, refer to note 17. These changes are accumulated within the
FVOCI reserve, and transferred to retained earnings when investment is derecognised.
25. FINANCIAL RISK AND CAPITAL MANAGEMENT
The Group’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk.
The Board has overall responsibility for the establishment and oversight of the Group’s risk
management framework. The Board has established the Audit and Risk Committee, which together
with the Board, is responsible for developing and monitoring the Group’s risk management policies.
The Group’s risk management policies are established to identify and analyse the risks faced by
the Group, to set appropriate risk limits and controls and to monitor risk adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions
and the Group’s activities.
The Group’s risk management is predominantly controlled at the head office in New Zealand (Group
treasury) under policies approved by the Board. The Group treasury identifies, evaluates and hedges
financial risks in close co–operation with the Group’s operating units. The Board provides written
principles for overall risk management, as well as policies covering specific areas, such as foreign
exchange risk, interest rate risk, and credit risk, use of derivative financial instruments and non–
derivative financial instruments, and investment of excess liquidity.
RiskExposure arising fromMeasurementManagement
Financial risk
management
and capital
management
Cash and cash equivalents,
trade receivables, derivative
financial instruments
Aging analysis
Credit ratings
Credit limits and terms
Liquidity riskBorrowings and
other liabilities
Rolling cash flow
forecasts
Availability of committed
credit lines and borrowing
facilities
Market risk –
foreign exchange
Forecast sales and
purchases not
denominated in the
respective functional
currencies of
Group's entities
Cash flow forecasting
Sensitivity analysis
Foreign currency
forwards and foreign
currency options against
highly probable sales
transactions limited to the
value of the net sales and
purchases exposures
Market risk –
interest rate
Bank overdraft at
variable rates
Sensitivity analysisInterest rate swaps
35
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

a. Derivatives
The Group is exposed to certain risks relating to its ongoing business operations. To mitigate the
risks the Group uses derivative financial instruments such as foreign currency forward exchange
contracts and foreign currency collar options. These instruments are held for risk and capital
management purposes only and not for the purpose of speculation.
In accordance with its wider risk management, it is the Group’s strategy to apply cash flow
hedge accounting to keep its foreign currency revaluation fluctuations within its established limits.
Applying cash flow hedge accounting enables the Group to reduce the cash flow fluctuations
arising from foreign exchange risk on an instrument or group of instruments, or to hedge
mismatches. A cash flow hedge is a hedge of the exposure to variability in cash flows that is
attributable to a particular risk associated with a recognised asset or liability or a highly probable
forecast transaction that could affect profit or loss.
Derivatives and hedge accounting
The Group designates certain derivatives to be part of a hedging relationship. These are classified
as cash flow hedges. The Group enters into hedge relationships where the critical terms of the
hedging instrument match exactly with the terms of the hedged item. The Group performs a
qualitative assessment of effectiveness and maintains hedging documentation which describes
the economic relationship, objective and strategy for the hedge transactions. The effectiveness
of the hedged relationships are assessed on an ongoing basis.
The fair value changes to the effective portion of the cash flow hedges are recognised (including
related tax impacts) through OCI in the cash flow hedge reserve in equity, refer to note 24. The
balance of the cash flow hedge reserve in relation to each particular hedge is transferred to the
Consolidated Statement of Comprehensive Income in the period when the hedged item affects
Consolidated Statement of Comprehensive Income. Hedge accounting is discontinued when a
hedging instrument expires, is sold, terminated, or when a hedge no longer meets the criteria
for hedge accounting.
If the maturity of the hedged item is less than 12 months, the full fair value of a hedging derivative
is classified as a current asset or liability, otherwise non–current asset or liability. Derivatives that
do not meet the hedge accounting criteria are classified as held for trading for accounting purposes
and are accounted for at fair value through profit and loss.
The following table sets out the Group’s derivative financial instruments in the Consolidated
Balance Sheet:
2024
Assets
$000s
2024
Liabilities
$000s
2023
Assets
$000s
2023
Liabilities
$000s
Forward foreign exchange contracts —
cash flow hedges501,2171,7412,796
Forward foreign exchange collar option —
cash flow hedges764765871,281
Total derivative financial instruments1261,6932,3284,077
Less: non–current forward foreign exchange —
cash flow hedges341381,228940
Current derivative financial instruments921,5551,1003,137
Financial assets/ liabilities at fair value through
profit or loss71,44896970
Total derivative financial instruments993,0031,1964,107
Forward foreign exchange contracts
In hedges of foreign currency, ineffectiveness may arise if the timing of the forecast sales transaction
changes from what was originally estimated, or if there are changes in the credit risk of the derivative
counterparty. The hedged highly probable forecast sales transactions denominated in foreign
currency are expected to occur at various dates during the next 16 months.
Where option contracts are used as the hedging instrument, the Group designates only the intrinsic
value. These are recognised in the cash flow hedge reserve within equity. The changes in time value
of the options that related to the hedged item are recognised within OCI in the cost of hedging
reserve with equity.
When forward contracts are used to hedge, the Group designates full change in fair value of the
forward contract as the hedging instrument.
The balance of the cash flow hedge reserve in relation to each particular hedge is transferred to the
revenue when the highly probable sales transaction occurs.
36
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

The following table summarises the Group’s current hedging instruments:
20242023
Foreign
currency
options
Foreign
currency
forwards
Foreign
currency
options
Foreign
currency
forwards
Notional amount ($000s)18,00043,33965,304131,571
Maturity date Apr–24
to May–25
Apr–24
to Aug–25
Apr–23
to Nov–24
Apr–23
to Jul–25
Hedge ratio1:11:11:11:1
Change in intrinsic value of
outstanding hedging instruments
(240)(350)
Weighted average strike rate
on outstanding options
NZD/USD0.6270.648
Weighted average contract rate
on forwards
NZD/USD0.6370.635
GBP/USD1.261.22
INR/USD84.3683.33
JPY/USD129.01129.56
b. Credit risk
The Group is exposed to credit risk arising from trade customers, financial instruments (notes 17,
25a), and cash and cash equivalents (note 10). The maximum exposure to credit risk at the end of
the period is represented by the carrying value of these financial assets.
The Group has financial assets of trade receivables from sales of inventory that are subject to the
expected credit loss model. The Group has established credit policies, and applies the NZ IFRS 9
Financial Instruments simplified approach to measure expected credit losses which uses a lifetime
expected loss allowance for all trade receivables, refer to note 11. The Group’s exposure to credit
risk is influenced mainly by the individual characteristics of each customer. The demographics
of the Group’s customer base, including the default risk of the industry and country, in which
customers operate, has less influence.
The Group only deals with institutions with high credit quality for banking and derivative counterparty.
c. Liquidity risk
The Group maintains committed credit facilities to ensure adequate cash is available to meet
obligations when due. Management monitors rolling forecasts of the Group’s liquidity position
on the basis of expected cash flow. Forecasts indicate that the Group operates within its
credit facilities.
37
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

The following table shows the contractual undiscounted cash flow maturities of financial liabilities,
including interest payments and excluding the impact of netting agreements:
31 March 2024
Carrying
amount
$000s
6 months
or less
$000s
6 – 12
months
$000s
1 – 2
years
$000s
2 – 5
years
$000s
5 – 10
years
$000s
Financial liabilities
Secured bank loans (note 18)3,568(688)(688)(1,376)(868)–
Derivatives (note 25)3,141(2,228)(775)(138)––
Trade and other payables
(note 19)9,202(9,202)––––
Other borrowings (note 18)150(62)(50)(47)––
Lease liabilities (note 15)6,773(855)(931)(1,926)(3,309)(997)
Total financial liabilities22,834(13,035)(2,444)(3,487)(4,177)(997)
31 March 2023
Carrying
amount
$000s
6 months
or less
$000s
6 – 12
months
$000s
1 – 2
years
$000s
2 – 5
years
$000s
5 – 10
years
$000s
Financial liabilities
Secured bank loans (note 18)4,963(757)(757)(1,513)(1,936)–
Derivatives (note 25)5,047(2,560)(1,547)(940)––
Trade and other payables
(note 19)12,386(12,386)––––
Other borrowings (note 18)272(60)(62)(150)––
Lease liabilities (note 15)4,069(881)(569)(943)(1,078)(598)
Total financial liabilities26,737(16,644)(2,935)(3,546)(3,014)(598)
d. Market risk – foreign exchange
The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, whilst optimising the return on risk. The Group enters into derivatives in
the ordinary course of business and also incurs financial liabilities in order to manage market risks.
All such transactions are carried out within the guidelines set by the Board and the Audit and Risk
Committee. Generally, the Group seeks to apply hedge accounting in order to manage volatility in
the Consolidated Statement of Comprehensive Income.
The Group is exposed to currency risk on sales and purchases that are denominated in a currency
other than the respective functional currencies of the Group’s entities, primarily New Zealand Dollars
(NZD), Sterling Pounds (GBP), Euros (EUR) and Indian Rupees (INR). The currencies in which these
sales and purchases transactions are primarily denominated are US Dollars (USD), Japanese Yen
(JPY), INR, NZD, GBP and EUR. The Group uses foreign currency forward exchange contracts and
collar options against highly probable forecast sales transactions to hedge its functional currency
risk. The hedge relationship is designated against revenue limited to the value of the forecast net
sales and purchases exposure across the Group.
38
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Forward foreign exchange contracts
A 10% weakening of the purchased currencies below against the forward foreign exchange
contracts outstanding at 31 March, would have increased (decreased) equity and profit or loss by
the amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant. The analysis is performed on the same basis for 2023:
20242023
Fair
value
$000s
Equity
$000s
Profit
or loss
$000s
Fair
value
$000s
Equity
$000s
Profit
or loss
$000s
Forward foreign exchange
contracts – Cash flow hedge
Net buy NZD sell USD3,302(3,302)–12,116(12,116)–
Net buy GBP sell USD269(269)–724(724)–
Net buy INR sell USD(367)367–(1,105)1,105–
Net buy JPY sell USD(368)368–(736)736–
Forward foreign exchange
contracts - held for trading
Net buy NZD sell USD4241,7541,7548142,0442,044
Net buy GBP sell USD(18)––(216)(724)88
Net buy INR sell USD103–(139)1201,105(87)
Net buy JPY sell USD758–(123)32736(134)
The table below summarises the foreign exchange exposure on the net monetary assets of the
Group against its respective functional currencies, expressed in NZD:
USD
$000s
EUR
$000s
GBP
$000s
JPY
$000s
31 March 202445,5602,173880(663)
31 March 202341,0036,10790397
The following significant exchange rates applied during the year:
Average rateReporting date rate
2024202320242023
NZD/USD0.61010.62770.59990.6263
NZD/EUR0.56240.59960.55440.5742
NZD/GBP0.48600.51800.47490.5055
NZD/INR50.488550.319050.041351.4292
NZD/JPY88.118284.250290.730082.9300

39
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Sensitivity analysis
Underlying exposures
A 10% weakening of the NZD against the following currencies at 31 March would have increased
(decreased) equity and profit or loss by the amounts shown below. Based on historical movements,
a 10% increase or decrease in the NZD is considered to be a reasonable estimate. This analysis
assumes that all other variables, in particular interest rates remain constant. The analysis was
performed on the same basis for 2023:
20242023
Equity
$000s
Profit or loss
$000s
Equity
$000s
Profit or loss
$000s
USD5,0625,0624,5564,556
EUR241241679679
GBP9898100100
JPY(74)(74)1111
A 10% strengthening of the NZD against the above currencies at 31 March would have had the
equal but opposite effect, on the basis that all other variables remain constant.
e. Market risk – interest rate
The Group adopts a policy to manage its exposure to interest rate risks by considering interest rates
swap agreements.
Profile
At 31 March the interest rate profile of the Group’s interest bearing financial instruments:
2024
$000s
2023
$000s
Variable rate instruments
Financial assets (note 10)17,83121,717
Net variable rate instruments17,83121,717
Fixed rate instruments
Financial liabilities (note 18)(6,597)(5,235)
Net fixed rate instruments(6,597)(5,235)
Sensitivity analysis
There are no variable financial liabilities (2023: nil).
f. Capital risk management
The Group’s objective when managing capital is to maintain its ability to continue as a going concern,
meet its debt obligations, maintain an appropriate capital structure that provides flexibility to take
advantage of growth opportunities, and manage capital costs. The Group’s capital comprises of all
components of equity. The Group also maintains borrowings and credit facilities, refer to note 18
for details.
40
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

26. CAPITAL COMMITMENTS
Capital expenditure contracted for at the balance date but not incurred is $1,700,000
(2023: $3,300,000).
27. PRINCIPAL SUBSIDIARIES
Subsidiaries are all entities over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. The acquisition method
of accounting is used to account for business combinations by the Group. They are deconsolidated
from the date that control ceases.
All material transactions between subsidiaries or between the parent company and subsidiaries
are eliminated on consolidation. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The list of subsidiaries is as follows:
% interest held by
the Group
Name of entityPrincipal activities
Country of
incorporation
Balance
date20242023
Rakon America LLCMarketing supportUSA31-Mar100100
Rakon Singapore (Pte) LimitedMarketing supportSingapore31-Mar100100
Rakon Financial Services
LimitedFinancingNew Zealand31-Mar100100
Rakon International LimitedMarketing supportNew Zealand31-Mar100100
Rakon UK Holdings LimitedHolding companyUnited Kingdom31-Mar100100
Rakon UK Limited
Research and
developmentUnited Kingdom31-Mar100100
Rakon France SAS
R&D, manufacturing
and sales France31-Mar100100
Rakon Investment HK Limited Holding companyHong Kong31-Mar100100
Rakon Crystal Electronic
International LimitedMarketing supportChina31-Mar100100
Rakon India Pvt Limited
Manufacturing, R&D
and sales India31-Mar100100
Rakon ESOP Trustee LimitedShare trusteeNew Zealand31-Mar––
Rakon PPS Trustee LimitedShare trusteeNew Zealand31-Mar––
Rakon ESOP Trustee Limited and Rakon PPS Trustee Limited are classified as in-substance
subsidiaries and are consolidated into the Group financial statements.
41
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

29. SHARE BASED PAYMENTS
The Group’s management awards qualifying employees’ bonuses, in the form of share options
and conditional rights to redeemable ordinary shares, from time to time, on a discretionary basis.
These are subject to vesting conditions and is recognised over the vesting period. The fair value
determined at grant date excludes the impact of any non-market vesting conditions, such as the
requirement to remain in employment with the Group. Non-market vesting conditions are included
in the assumptions about the number of options that are expected to vest and the number of
redeemable ordinary shares that are expected to transfer.
a. Rakon’s Long Term Incentive Plan
Rakon’s Long Term Incentive Plan (LTIP) was established on 13 December 2021. Under the
LTIP, Share Rights of the Company are granted to participants based in New Zealand, whereby
employees render services as consideration for equity instruments (equity-settled transactions).
Employees working overseas are granted Phantom Share Rights which are settled in cash (cash-
settled transactions). Employees are entitled to shares of the parent or cash payment upon vesting
of Share Rights and Phantom Share Rights, respectively. There is no exercise price on these and
there is no right to dividends during the vesting period.
The vesting of Share Rights and Phantom Share Rights is dependent on the Group’s total
shareholder return (TSR) exceeding the TSR of the NZX50 over the measurement period.
It takes into account historical and expected dividends, and the share price fluctuation to predict
the distribution of relative share performance. Employees must remain in service for a period of
two and half years from grant the date. The fair value is determined by an independent expert
using Monte Carlo model.
During the year, there were no cancellations or modifications to the awards.
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the grant date and
amortised over the vesting period. Service conditions are not taken into account when determining
the grant date fair value of awards, but the likelihood of the conditions being met is assessed as
part of the Group’s best estimate of the number of equity instruments that will ultimately vest.
Market performance conditions are reflected within the grant date fair value. Any other conditions
attached to an award, but without an associated service requirement, are considered to be non-
vesting conditions.
28. RELATED PARTY TRANSACTIONS
a. Key management personnel compensation
2024
$000s
2023
$000s
Salaries and other short-term employee benefits5,7765,483
Directors’ fee600511
Total key management compensation6,3765,994
b. Transactions with other related parties
No amounts owed by a related party have been written off or forgiven during the year. Following is
the summary of transactions between related parties, and closing receivables and payables balance.
2024
$000s
2023
$000s
Transactions with associates
Purchases from associate, Chengdu Timemaker Crystal Technology
Co. Limited(2,052)(3,571)
Payables to Chengdu Timemaker Crystal Technology Co. Limited(301)(62)
Receivables from Rakon HK Limited245211
Transactions with Siward Crystal Technologies Co. Limited
Sales480818
Purchases(3,843)(11,681)
Net transactions(3,363)(10,863)
Payables to Siward Crystal Technologies Co. Limited(654)(1,522)
Receivables from Siward Crystal Technologies Co. Limited–12
42
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

The fair value of Share Rights is estimated at the grant date using the Monte Carlo model, taking
into account the terms and conditions upon which the Share Rights were granted. There are no
cash settlement alternatives. The Group does not have a past practice of cash settlement for these
Share Rights.
The fair value of the rights granted is recognised as an employee benefits expense (note 6) in the
Consolidated Statement of Comprehensive Income with a corresponding increase in the employee
share option reserve (note 24).
Where an award is cancelled by the entity or by the counterparty, any remaining element of the
fair value of the award that has not yet been recognised as an expense is expensed immediately
through profit or loss.
Cash-settled transactions
A liability is recognised for the fair value of cash-settled transactions. The fair value is measured
initially and at each reporting date up to and including the settlement date, with changes in
fair value recognised in employee benefits expense (note 6) in the Consolidated Statement of
Comprehensive Income. The fair value is expensed over the vesting period with the recognition
of a corresponding liability. The approach used to account for vesting conditions when measuring
equity-settled transactions also applies to cash-settled transactions.
Estimates and judgements
Estimating fair value for share-based payment transactions requires determination of the most
appropriate valuation model, which depends on the terms and conditions of the grant. This estimate
also requires determination of the most appropriate inputs to the valuation model including market
price volatility, risk free rates, liquidity and making assumptions about them. For cash-settled share-
based payment transactions, the liability needs to be re-measured at the end of each reporting
period up to the date of settlement, with any changes in fair value recognised in profit or loss.
This requires a reassessment of the estimates used at the end of each reporting period.
Performance rights granted are summarised below:
TrancheGrant dateType
Balance at
the start of
period
Number
Granted
during the
period
Number
Vested
during the
period
Number
Lapsed/
forfeited
during the
period
Number
Balance at
the end of
period
Number
113 Dec 21Phantom Rights276,470 – – – 276,470
13 Dec 21Share Rights703,244 – – (166,829)536,415
219 Dec 22Phantom Rights282,612 – – (5,071)277,541
19 Dec 22Share Rights395,860 – – (52,736)343,124
314 Mar 23Share Rights180,000 – – – 180,000
1,838,186 – – (224,636)1,613,550
The expense recognised for employee services received during the year is shown in the
following table:
2024
$000s
2023
$000s
Expenses arising from equity-settled share-based payment transactions398347
Expenses arising from cash-settled share-based payment transactions24529
Total expenses arising from share-based payment transactions643376
43
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

30. CONTINGENCIES
Prior to acquisition, Rakon India received income tax and indirect taxes assessments, which had
been in dispute. The Directors of Rakon India believe the positions are likely to be upheld and
accordingly no provision was made. The below summarises the potential impacts on Rakon India’s
tax balances if the assessments are upheld.
Income taxes
• 2013/14 – no increase in taxable income (tax value $80,000)
• 2014/15 – advance payment delay (tax value $20,000)
Indirect taxes
• December 2010/August 2012 – excess input credit availed (tax value $390,000).
Penalty applicable at 100% of tax value.
31. SUBSEQUENT EVENTS
a. HSBC & closure of ASB facility
In April 2024, the Company has signed an agreement with Hong Kong Banking Group that provides
Group access to equivalent NZ$45m borrowing facility for the purposes of capital investment
and working capital requirements. The facility is guaranteed by the Group assets and has regular
financial undertakings.
As a result, the Company has extinguished its facility with ASB. The Group is switching its banking
services to HSBC.
b. Long Term Incentive Plan
In April 2024, Share Rights of the Company were granted to participants under the Rakon’s Long
Term Incentive Plan (LTIP).
The Directors are not aware of any other material events subsequent to the balance date
31 March 2024 that require additional disclosure.
Following are the assumptions used to simulate the future share prices:
Tranche 1Tranche 2Tranche 3
Phanton
Rights
Share
Rights
Phanton
Rights
Share
Rights
Share
Rights
Fair value of Rights ($000)26581713715556
Vesting date25 Jun 2425 Jun 2425 Jun 2525 Jun 2525 Jun 25
Weighted average share
price at grant date ($)0.91 0.91 1.39 1.39 1.39
Risk free interest rate4.8%2.1%4.5%4.6%4.5%
Expected volatility45%45%45%45%45%
b. Rakon Share Plan
In March 2006, Rakon Limited established a share plan to enable selected employees of Rakon
Limited to acquire shares in the Company through the plan trustee, Rakon ESOP Trustee Limited.
Under the terms of the share plan, 2,759 ordinary shares were issued at deemed market value at
that time to Rakon ESOP Trustee Limited to hold on behalf of the participating employees. Following
a share split on 13 April 2006, the resulting number of shares under this plan was 859,137. As at
31 March 2024, the balance of shares held was 321,972 (31 March 2023: 321,972). All shares
have been allocated and rank equally in all respects with all other ordinary shares issued by the
Company. The outstanding loan balance, provided on an interest free basis by Rakon Limited to
participating employees in respect of these shares, totals $195,000 (2023: $195,000). A participant
may repay all or part of the loan at any time, and may request share transfer upon full repayment.
No repayments were due at 31 March 2024 (2023: nil). The Trust Deed makes provision for the
Company to require repayment of the loans in certain circumstances. The Company may remove
and appoint trustees at any time. The Directors and shareholders of Rakon ESOP Trustee Limited
are Keith Oliver and Lorraine Witten. Shares held by the share plan represent approximately 0.14%
of the Company’s total shares on issue as at balance date (2023: 0.14%).
44
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS / CONTINUED

Independent Auditor’s Report
To the shareholders of Rakon Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of Rakon Limited (the
Company), including its subsidiaries (the Group), present fairly, in all material respects, the financial
position of the Group as at 31 March 2024, its financial performance and its cash flows for the
year then ended in accordance with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS) and International Financial Reporting Standards Accounting Standards
(IFRS Accounting Standards).
What we have audited
The Group’s consolidated financial statements comprise:
• the consolidated balance sheet as at 31 March 2024;
• the consolidated statement of comprehensive income for the year then ended;
• the consolidated statement of changes in equity for the year then ended;
• the consolidated statement of cash flows for the year then ended; and
• the notes to the consolidated financial statements, comprising material accounting policy
information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)
(ISAs (NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
Our firm carries out other services for the Group in the areas of providing certification of
expenditure for the purposes of the Production Linked Incentive Scheme in India, agreed-upon
procedures in relation to India’s Scheme for Promotion of Manufacturing of Electronical Components
and Semiconductors and provides access to training material through an on-line platform. The
provision of these other services has not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the consolidated financial statements of the current year. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
45
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

INDEPENDENT AUDITOR’S REPORT / CONTINUED
Description of the key audit matterHow our audit addressed the key audit matter
Valuation of inventories
The carrying value of the Group’s inventories at 31 March 2024 was $54.9 million (31 March 2023
$62.6 million) net of inventory provision of $6.9 million (31 March 2023 $7.5 million). The Group
holds inventories in New Zealand, France and India.
The cost of inventories reflects the cost of direct materials and where relevant, direct labour costs,
including an allocation of variable and fixed overhead expenditure.
Inventories are stated at the lower of cost or net realisable value. The Group has recorded an
inventory provision to reflect management’s best estimate of the net realisable value of inventories.
Determining the provision involves significant judgement considering a range of factors including
expected future consumption assumptions.
Valuation of inventories is an area of focus and key audit matter for the audit due to the significance
of the inventory balance, the complexity of inventory costing, and the judgements involved in
estimating inventory provision.
Note 12 of the financial statements describes the accounting policy and the judgements and
estimates applied by management in recognising inventories.
Our procedures included the following:
• gaining an understanding of the key process, controls and judgements surrounding inventory
costing and provisioning;
• testing certain controls over inventory;
• on a sample basis, testing the cost of materials and finished goods to supporting documents;
• ensuring direct labour and overhead expenditure capitalised are in line with the requirements
of New Zealand Equivalent to International Accounting Standard 2 Inventories;
• evaluating the reasonableness of direct labour and overhead expenditure capitalised into
inventory by performing analytical procedures;
• on a sample basis, testing the accuracy of inputs into the inventory provision calculation
including assessing the reasonableness of future consumption estimates;
• performing recalculations over the provision to ensure its mathematical accuracy;
• assessing and challenging the appropriateness of the Group’s provisioning by considering
alternate provisioning methodologies for the most significant provisions;
• testing the net realisable value of finished goods, on a sample basis, by comparing the cost
with recent sales; and
• reviewing the appropriateness of disclosures in the financial statements.
46
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

INDEPENDENT AUDITOR’S REPORT / CONTINUED
Our audit approach
Overview
Overall group materiality: $1,280,000, which represents approximately 1%
of total revenues.
We chose total revenues as the benchmark because, in our view, revenue
provides a more stable measure for establishing our materiality benchmark,
and is a generally accepted benchmark.
Following our assessment of the risk of material misstatement, we:
• Performed full scope audits for the two principal businesses in
New Zealand and France based on their financial significance;
• Performed specified procedures and analytical review procedures
over the business in India;
• Analytical review procedures were performed on the investment
in Timemaker and other remaining entities.
As reported above, we have one key audit matter, being:
• Valuation of inventories
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting
estimates that involved making assumptions and considering future events that are inherently
uncertain. As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters, consideration of whether there was evidence of bias
that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to
obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material
if, individually or in aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as
set out above. These, together with qualitative considerations, helped us to determine the scope
of our audit, the nature, timing and extent of our audit procedures and to evaluate the effect of
misstatements, both individually and in aggregate, on the consolidated financial statements as
a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of
the Group, the accounting processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the annual report, but does not include the consolidated financial statements
and our auditor’s report thereon. The annual report is expected to be made available to us after the
date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we
will not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and use our
professional judgement to determine the appropriate action to take.
47
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

INDEPENDENT AUDITOR’S REPORT / CONTINUED
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation
of the consolidated financial statements in accordance with NZ IFRS and IFRS Accounting
Standards, and for such internal control as the Directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the Directors either
intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements, as a whole, are free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and
ISAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements
is located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company and the Company’s shareholders,
as a body, for our audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Indumin
Senaratne (Indy Sena).
For and on behalf of:
Chartered Accountants Auckland
28 May 2024
48
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

REGISTERED OFFICE
Rakon Limited
8 Sylvia Park Road
Mt Wellington
Auckland 1060
New Zealand
Telephone: +64 9 573 5554
MAILING ADDRESS
Rakon Limited
Private Bag 99943
Newmarket
Auckland 1149
New Zealand
DIRECTORS
Sinead Horgan
Keith Oliver
Brent Robinson
Yin Tang Tseng (Resigned 13 July 23)
Steve Tucker (Resigned 31 March 24)
Lorraine Witten (Chair)
Keith Watson
Jung Meng Tseng (Appointed 13 July 23)
PRINCIPAL LAWYERS
Bell Gully
PO Box 4199
Shortland Street
Auckland 1140
New Zealand
AUDITORS
PricewaterhouseCoopers
Private Bag 92162
Auckland 1142
New Zealand
BANKERS
The Hongkong and Shanghai Banking
Corporation Limited
PO Box 5947
Wellesley Street
Auckland 1141
New Zealand
SHARE REGISTRAR
Computershare Investor Services Limited
Private Bag 92119
Victoria Street West
Auckland 1142, New Zealand
Managing Your Shareholding Online
To change your address, update
your payment instructions or view
your investment portfolio, including
transactions, please visit:
www.investorcentre.com/nz
General enquiries can be directed to:
enquiry@computershare.co.nz
Telephone: +64 9 488 8777
Directory
49
RAKON / CONSOLIDATED FINANCIAL STATEMENTS / 2024

www.rakon.com

---

0
FY24 financial results and business update
Twelve months to 31 March2024
29 May 2024© Rakon Limited

1
This presentation contains not only a review of operations, but also some forward looking statementsabout Rakon Limited and theenvironment 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 areavailable 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. Pleaseread thispresentation 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 (twelve months to 31
March 2023) unless otherwise noted.Refer to note 4 of the FY2024 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).
Non-binding indicative proposal
On 18 December, Rakon announced it was undertaking a process to consider an unsolicited, non-binding, indicative proposal (the Proposal).Rakon refers
shareholders to its market announcements on this matter, with the latest announcement being on 13 May 2024.
Rakon has no further updates in respect of the Proposal at this time. Shareholders are reminded that there is no certainty that any transaction will eventuate
from the Proposal or as to the pricing or timing of any transaction.
Please note that during the Q&A portion of this presentation we will not be commenting furtherin respectofthe Proposal and Rakon's engagement with
the bidder, in accordance with the confidentiality restrictions Rakon is subject to.
Disclaimer
1
29 May 2024© Rakon Limited

2
3FY24 highlights
4Financial highlights
5Core market performance
8Key financial results
11Strategy and outlook
16Q&A
Agenda
Sinan Altug
Chief Executive Officer
Drew Davies
Chief Financial Officer
2
29 May 2024© Rakon Limited

3
Consistent market share gains and
high design win-rate
FY24 highlights
Continued focus on efficiency andexecution of growth plan for Space and AI
New contract positions Rakon as a Top
3 player in SpaceSubsystems
Highest ever Space segment revenue.
Cyclical slowdown impacting
telecommunications and positioning
Continuing focus on cost control and
driving efficiency
Continued delivery of 3-year
growthplan
Launch of MercuryXproduct range for
AI and cloud data centres
29 May 2024© Rakon Limited

4
FY24 Financial highlights
Revenue
$128.0m
$52.3m -29%
Operating expenses
$59.5m
$0.7m +1%
Operating cash flow
$17.8m
$6.7m +60%
Underlying EBITDA
1
$13.5m
$28.7m -68%
Gross Margin
$57.9m
$30.9m -35%
1
Refer to note 4 of the FY2024 audited consolidatedfinancial statements for an explanation of
how ‘Non-GAAP Financial Information’ is used, including a definition of ‘UnderlyingEBITDA’
Capex
$17.0m
$1.7m -9%
29 May 2024© Rakon Limited
Underlying EBITDA
1
($m)
$141m
$164m
$119m
$128m
$172m
$180m
$128m
FY20FY21FY22FY23FY24
Core businessTCXO chip shortage
Revenue ($m)
$37m
$39m
$14m
$15m
$23m
$54m
$42m
$13m
FY20FY21FY22FY23FY24
Core businessTCXO chip shortageAssociate

5
Space andDefence
Record revenue and $17m 3-year contract win
Highest ever revenue–up +27% to $36.8m
Gross margin–up +22% to $24m driven by the
French and New Zealand business units
Customer wins–strong order book for FY25;
secured largest space contractworth up to $17m over
3-years
Strategic success–focus on diversifying
productsand growing market share has made Rakona
Top-3supplier of its space subsystem products, ahead
of schedule
29 May 2024© Rakon Limited
Revenue and Gross Margin (NZD)
$19m
$20m
$17m
$20m
$24m
$28m
$30m
$24m
$29m
$37m
FY20FY21FY22FY23FY24
Gross MarginRevenue

6
Telecommunications
Recovery taking longer; design win rate remains high
Revenue impacted–mobile network operators
continuing to work through stock-piled inventory and
deferring 5G capex
Gross margin–reflects one-off costs associated with
workforce restructuring,inefficiencies of lower
production levels
Continued growth in market share–design win
rate also remains consistently high
Emerging core market: AI–already generating
revenue projected to grow significantly
29 May 2024© Rakon Limited
Revenue and Gross Margin (NZD)
$26m
$31m
$38m
$43m
$23m
$65m
$77m
$86m
$101m
$67m
FY20FY21FY22FY23FY24
Gross MarginRevenue

7
7
7
Positioning
Market share steady; design wins high
Revenue and Gross Margin (NZD)
Revenue–revenue down;customers drawing down
stockpiled inventories
Gross margin–maintained margins and prices
Market share –market shareremains steady, and
continuing to secure design wins at consistently high
rate in the precision positioning segment
29 May 2024© Rakon Limited
$16m
$18m
$19m
$14m
$28m
$34m
$14m
$7m
$7m
$12m
$13m
$6m
$19m
$14m
$20m
$24m
$14m
FY20FY21FY22FY23FY24
TCXO shortageGross MarginRevenue
$4m
$4m
$5m
$10m
$8m

8
•Revenue down -29% YoY (down -22% YoY excluding prior
year one-off chip shortage revenue)due to
lowerTelecommunications and Positioning orders
•Gross Margin % reduction driven by:
one-off workforce restructuring labour costs
Inefficiencies of lower production levels
•Operating expenses (excluding $2.2m acquisition proposal
costs) fell $1.5m to $57.3m reflecting efficiency initiatives
•Inventory down -12% YoY as wecontinue to focus on
inventory management optimisation
Performance for the year to 31 March 2024
NZ$m
FY24FY23
YoY
change
% change
Revenue128.0180.3-52.3-29%
Gross profit57.988.8-30.9-35%
Gross margin %45.2%49.2%-4.0 ppts
Operating expenses59.558.8+0.7+1%
Net profit after tax4.523.2-18.7-81%
Underlying EBITDA
1
13.542.2-28.7-68%
Capital expenditure
17.0
18.7-1.7-9%
Operating cash flow17.811.1+6.7+60%
Financial Position
Cash and cash equivalents17.821.7-3.9-18%
Debt
2
6.65.2+1.4+26%
Inventory54.962.6-7.7-12%
FY24 key financial results
29 May 2024© Rakon Limited
1
Refer to note 4 of the FY2024 audited consolidatedfinancial statements for an explanation ofhow ‘Non-GAAP Financial Information’ is used, including a definition of ‘UnderlyingEBITDA’
2
Excluding NZ IFRS 16

9
9
Net profit and underlying EBITDA explained
Financial result reflects investment for growth and inflationary pressures
29 May 2024© Rakon Limited
9
Decrease in net profit compared to FY24explained
How the current period net profit
translates to EBITDA
1. Include movement in finance cost, balance of operating expenses, other operating income, foreign exchange gains & net financecost
2. adjustment for Timemakershare of interest, tax and depreciation

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Focused onasset optimisation
Underway with initiatives to deliver greater efficiency for global operations
29 May 2024© Rakon Limited
India Product
Transfers
Inventory
Management
HSBC Facility
Driving Efficiency
Across Global
Operations
•Optimisationof manufacturing cost structures includes accelerated schedule for India facility production of
key NZ/France product lines
•Anticipate realisation of benefits from improved margins when volume ramped up in Q4
•Continued focus on optimising inventory led to -$7.7m overall decline YoY, and will continue to drive
reductions
•2-3 year facility with HSBC; overall facility size is up to approximately NZ$47m
•Gives Rakon additional flexibility to invest to support organic capital planning and other strategic activity
•Ongoing process to streamlineoperations globally,ensuring all key expenditures across the boardcontribute
to Rakon’s growth strategy
•Global workforce numbersdown -13% YoY; ensuring workforce count is within optimal levelsfor cost
ofproduction while positioning the business to capture greater efficiency from its global operations
•Proactively looking at all expense categories and association with revenue and future growth objectives

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N E W
M A N U F A CT U R I N G
F A CI L I T Y I N I N D I A
R A K O N D E S I GN E D
S E M I CO N D U CT O R
CHI P S
XM E M S
®
N A N O T E CHN O L O GY
M A N U F A CT U R I N G
N E WS P A CE
B U S I N E S S
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
NewSpaceproducts
•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
NewSpaceecosystem
•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
Continued delivery of 3-year growth plan
Diversifying andgrowing market share, revenue and margins in high growth markets
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•Rakon’s technology and products ideally suited for overcoming the
synchronisation challenges that datacentres face with AI workloads
•Working withleading players in AI hardware to enable the next generation
platforms for new ‘AI Factory’ data centres
•Launched next generation semiconductor chipNiku in 2023, and
enhancedMercuryXin 2024, creating foundation for new AI computing
hardware product lines
•These products are already generating revenue; expect this to increase
significantly over next 5 years
Emerging core market: AI
Already generating revenue; project substantial benefits in next 12 months
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13
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•Awarded satellite subsystem contract with industry leader in May2024
•Contract win makes Rakon a Top-3 global supplier for its space subsystems
•Diversified product portfolio hasincreased Rakon's addressable market for
spaceto $250m.Ontrack todouble share ofserviceable addressable
market in the next 5 years, largely driven by demand forsubsystem
products as evidenced by recent contract win
•Released several new products in FY24, including new GNSS (Global
Navigation Satellite System) receivers, MROs (Master Reference Oscillators),
and ultra-stable oscillators
•Rakon about to launch anew semiconductor chip designed for its space
oscillator product; with another chip in the pipeline
Growing core market: NewSpace
Investments in this rapidly growing ecosystem are delivering results
29 May 2024© Rakon Limited

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Core markets outlook
29 May 2024© Rakon Limited
Space
•Strong Space order book for FY25
•Diversified product portfolio has increased Rakon'saddressable market for space to $250m
•On track to double share ofserviceable addressable market in the next 5 years, largely driven by demand for
subsystem products as evidenced by recent contract win
Telecommunications
•Dell’Oroprojection for global RAN to decline 5-8% in 2024
•Similar to our largest Tier 1 customers, we see the market remaining weak in 2024, but with thepotential for it to
level out on a YoY basis during the second half
•We expectgross margin levels to return in FY25
Positioning
•Increased competition driving down price but overall volumes steady
•Inventory correction cycle not yet completed
•Rakon has a good position in the high-endprecise positioning segment

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Summary
•Short-term outlook remains suppressed with the economic downturn for both telecommunications and positioning
•Space and Defence continuing to grow with a solid Space order book for FY25 and $3m benefit in FY25 from new
space $17m/3-yearcontract. Rakon in a strong position to secure future wins from other targetedcontracts
•High design ratewin provides confidence of continued market share growth
•Continued focus on efficiency initiatives drivingannualisedcostsavings andimproving future resilience
andcompetitiveness
•Delivery of 3-year growth plan willimprove revenue and margins and, importantly, diversify revenue to provide
increased protection through the cycle
•We are well positioned tobenefit whenmarkets recover and to continue momentum in Space and AI hardware
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29 May 2024
© Rakon Limited
Q&A

www.rakon.com
23 November 2023© Rakon Limited
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© Rakon Limited
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Appendix
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© Rakon Limited

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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 inventory (lower supply
chain risks and transfer from former sites
to new India facility completed)
•Operating cash up due to decreasing
inventory balances as we optimise
inventory sell-through
•Capex includes completion of India facility
to enable transition from former sites
•Net dividends paid in August 2023: $2.9m
Other
1
–non-cash items including unrealised foreign exchange, share of net profits of associate (Timemaker), employee share-based expense, and
movements in other provisions
Cash balance
$17.8m
How net profit translates to net cash movement
Inventory management and investment for growth impacting cash position
29 May 2024© Rakon Limited