1H26: Strong first half growth and strategic momentum

Results announcement



Results for announcement to the market
Name of issuer Rakon Limited
Reporting Period 6 months to 30 September 2025
Previous Reporting Period 6 months to 30 September 2024
Currency New Zealand Dollar

Amount (000s) Percentage change
Revenue from continuing
operations
$54,235 30.19%
Total Revenue $54,235 30.19%
Net profit/(loss) from
continuing operations
-$2,954 71.51%
Total net profit/(loss) -$2,954 71.51%
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend proposed to be paid
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.53

$0.55

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

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

28/11/2025
Unaudited financial statements accompany this announcement. Dividend Policy on www.rakon.com

---

Rakon Limited

Interim Report

30 September 2025

Rakon Limited
Table of Contents
30 September 2025


1
Unaudited Consolidated Interim Statement of Comprehensive Income.................................................................................2
Unaudited Consolidated Interim Statement of Changes in Equity .........................................................................................3
Unaudited Consolidated Interim Balance Sheet.....................................................................................................................4
Unaudited Consolidated Interim Statement of Cash Flows....................................................................................................5
Notes to the Unaudited Financial Statements........................................................................................................................6

Rakon Limited
Unaudited Consolidated Interim Statement of Comprehensive Income
For the period ended 30 September 2025

Note
Unaudited
six months
ended
30 September
2025
Unaudited
six months
ended
30 September
2024
$'000s$'000s

2
Revenue 454,235 41,657
Cost of sales(27,771)(25,913)
Gross profit26,464 15,744
Other gains/(losses) - net5(1,134)(1,490)
Other operating income 105 21
Operating expenses
Selling and marketing(5,947)(5,989)
Research and development (7,209)(7,864)
General and administration(16,398)(16,195)
Total operating expenses(29,554)(30,048)
Operating loss(4,119)(15,773)
Finance income 181 246
Finance costs (584)(455)
Share of net profit of associate 553 922
Loss before income tax benefit(3,969)(15,060)
Income tax benefit1,015 4,693
Loss after income tax benefit for the period attributable to the equity holders of
Rakon Limited(2,954)(10,367)
Other comprehensive income/(losses)
Items that may be reclassified subsequently to profit or loss
Increase in fair value cash flow hedges2,801 2,430
Cost of hedging (677)(19)
Income tax relating to components of other comprehensive income(595)(675)
Exchange differences on translation of foreign operations1,916 (2,444)
Items that will not be reclassified subsequently to profit or loss
Changes in fair value of equity investments – Thinxtra(16)(30)
Other comprehensive income/(losses) for the period, net of tax3,429 (738)
Total comprehensive income/(losses) for the period attributable to the equity
holders of Rakon Limited475 (11,105)
Earnings per share attributable to the equity holders of Rakon LimitedCentsCents
Basic earnings per share (1.3)(4.6)
Diluted earnings per share(1.3)(4.5)

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

Rakon Limited
Unaudited Consolidated Interim Statement of Changes in Equity
For the period ended 30 September 2025


3
Share RetainedOther
capitalearningsreserves
Total
equity
$'000s$'000s$'000s$'000s
Balance at 1 April 2025181,592(5,193)(21,848)154,551
Loss after income tax benefit for the period-(2,954)-(2,954)
Currency translation differences --1,9161,916
Cash flow hedges, net of tax--1,5291,529
Changes in fair value of equity investments at fair value
through other comprehensive income - Thinxtra--(16)(16)
Employee share schemes
Share options--316316
Balance at 30 September 2025 (Unaudited)181,592(8,147)(18,103)155,342


ShareRetainedOther
capitalearningsreserves
Total
equity
$'000s$'000s$'000s$'000s
Balance at 1 April 2024181,5921,126(23,432)159,286
Loss after income tax benefit for the period-(10,367)-(10,367)
Currency translation differences--(2,444)(2,444)
Cash flow hedges, net of tax--1,7361,736
Changes in fair value of equity investments at fair value
through other comprehensive income - Thinxtra--(30)(30)
Employee share schemes
Share options--162162
Balance at 30 September 2024 (Unaudited)181,592(9,241)(24,008)148,343

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

Rakon Limited
Unaudited Consolidated Interim Balance Sheet
As at 30 September 2025

Note
Unaudited
six months
ended
30 September
2025
Unaudited
six months
ended
30 September
2024
$'000s$'000s

4
Assets
Current assets
Cash and cash equivalents12,415 15,323
Trade and other receivables54,445 53,496
Inventories656,637 46,387
Derivative financial instruments268 134
Financial assets at fair value through profit or loss31 -
Income tax asset1,779 1,159
Total current assets125,575 116,499
Non-current assets
Property, plant and equipment45,198 41,514
Intangible assets21,791 19,855
Right-of-use assets7,948 9,110
Interest in associate14,093 13,662
Trade and other receivables2,880 2,731
Financial assets at fair value through other comprehensive income - Thinxtra318 334
Derivative financial instruments906 807
Deferred tax asset12,197 12,937
Total non-current assets105,331 100,950
Total assets230,906 217,449
Liabilities
Current liabilities
Borrowings71,237 1,439
Trade and other payables45,525 29,218
Income tax liabilities1,673 1,046
Lease liabilities2,507 2,612
Provisions324 869
Derivative financial instruments2,404 2,920
Total current liabilities53,670 38,104
Non-current liabilities
Borrowings710,333 10,965
Provisions3,575 3,314
Lease liabilities6,401 7,489
Derivative financial instruments1,585 2,886
Deferred tax- 140
Total non-current liabilities21,894 24,794
Total liabilities75,564 62,898
Net assets155,342 154,551
Equity
Share capital181,592 181,592
Other reserves(18,103)(21,848)
Accumulated losses(8,147)(5,193)
Total equity155,342 154,551

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

Rakon Limited
Unaudited Consolidated Interim Statement of Cash Flows
For the period ended 30 September 2025

Unaudited
six months
ended
30 September
2025
Unaudited
six months
ended
30 September
2024
$'000s$'000s

5
Cash flows from operating activities
Receipts from customers 58,361 56,247
Payments to employees(27,657)(27,961)
Payments to suppliers and others (25,123)(20,996)
R&D grants received1,603 1,596
Income tax paid (775)(359)
Interest paid(307)(459)
Interest received181 246
Other income received72 19
Net cash flow from operating activities6,355 8,333
Cash flows from investing activities
Purchase of property, plant and equipment(5,276)(5,477)
Purchase of intangibles(2,060)(1,436)
Net cash outflow from investing activities(7,336)(6,913)
Cash flows from financing activities
Repayment of borrowings(860)(783)
Lease liabilities payments(1,701)(937)
Net cash outflow from financing activities(2,561)(1,720)
Net decrease in cash and cash equivalents(3,542)(300)
Cash and cash equivalents at the beginning of the period15,323 17,831
Effects of exchange rate changes on cash and cash equivalents634 (1,724)
Cash and cash equivalents at the end of the period12,415 15,807

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

Rakon Limited
Notes to the Unaudited Financial Statements
30 September 2025


6
1. General information............................................................................................................................................................7
2. Statement of significant accounting policies.......................................................................................................................7
3. Segment information..........................................................................................................................................................7
4. Revenue...........................................................................................................................................................................10
5. Other gains/(losses) - net.................................................................................................................................................11
6. Inventories........................................................................................................................................................................11
7. Borrowings .......................................................................................................................................................................11
8. Contingencies...................................................................................................................................................................12
9. Related party transactions................................................................................................................................................12
10. Subsequent events.........................................................................................................................................................12

Rakon Limited
Notes to the Unaudited Financial Statements
30 September 2025


7
1. General information

Rakon Limited (‘the Company’) and its subsidiaries (‘the Group’) are a global technology company that design and
manufacture advanced frequency control and timing solutions for a wide range of applications. Rakon’s core markets are
Telecommunications, Aerospace & Defence, and Global Positioning.
The Company is a limited liability company, incorporated and domiciled in New Zealand, and is listed on the New Zealand
Stock Exchange (NZX code: RAK). The registered office is located at 8 Sylvia Park Road, Mt Wellington, Auckland. Rakon is
registered under the Companies Act 1993 and is an FMC reporting entity under Part 7 of the Financial Markets Conduct Act
2013.

These financial statements have been prepared in accordance with the requirements of Part 7 of the Financial Markets
Conduct Act 2013 and the NZX (Main Board) Listing Rules. The unaudited interim financial statements were approved for
issue by the Board of Directors on 27 November 2025.

2. Statement of significant accounting policies

These unaudited interim financial statements for the half-year ended 30 September 2025 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), including NZ IAS 34 Interim Financial Reporting, as well as other
applicable New Zealand accounting standards and authoritative notices. The consolidated financial statements also comply
with International Financial Reporting Standards (IFRS).

The Group is a profit-oriented entity for the purposes of NZ GAAP. These financial statements comprise Rakon and its
subsidiaries and have been prepared on a going concern basis. The interim financial statements are presented in New Zealand
dollars, rounded to the nearest thousand unless otherwise indicated.

The preparation of financial statements in accordance with NZ IFRS requires management to make judgements, estimates
and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
Actual results may differ from these estimates.

This unaudited interim financial statement does not include all the notes of the type normally included in an annual financial
report. Accordingly, this report should be read in conjunction with the annual report for the year ended 31 March 2025 and
any public announcements made by the Company during the interim reporting period.

3. Segment information

The Chief Operating Decision Maker (CODM) for the Group is the Chief Executive Officer. The CODM is responsible for
allocating resources and assessing the performance of operating segments. The operating segments are presented in a
manner consistent with the internal reporting provided to the CODM.
Significant judgement has been applied in determining reportable operating segments. Ownership of product intellectual
property has been used as the key factor to identify reportable segments and aggregation criteria, based on synergies between
businesses, regardless of geography.
The CODM assesses segment performance 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 segment revenue on a monthly basis.

In February 2025, Rakon announced an organisational transformation, including a realignment of its global Business Units.
The Company is progressing well in its transition to a market-based structure comprising two global Business Units: Aerospace
& Defence (Aerospace and Defence) and Commercial (Telecom, AI, Positioning, and Other). These changes will be reflected
in segment reporting once fully implemented. To date, there have been no changes to the internal reporting provided to the
CODM as a result of this process.

Rakon Limited
Notes to the Unaudited Financial Statements
30 September 2025

3. Segment information (continued)


8
a. Segment results

Information relating to each reportable segment is set out below.

Unaudited six months ended 30 September 2025
NZ
France/
India
France
HiRelT'makerOther
1
Total
$'000s$'000s$'000s$'000s$'000s$'000s
Segment revenue by market
Telecommunications 19,126 5,673199-20 25,018
Aerospace & Defence5,657 1,618 12,828-4 20,107
Global Positioning6,1228494-4 6,304
Other 50288 2,216-- 2,806
Total segment revenue by market31,407 7,463 15,337-28 54,235
Underlying EBITDA944(4,137)1,909 1,781 3,100 3,597
Total assets
2
103,400 53,089 58,164 14,737 1,516 230,906
Additions of property, plant and equipment and intangibles3,218 1,441 3,217-- 7,876
Total liabilities
3
38,598 20,768 14,768- 1,430 75,564

Unaudited six months ended 30 September 2024
NZ
France/
India
France
HiRelT'makerOther
1
Total
$'000s$'000s$'000s$'000s$'000s$'000s
Segment revenue by market
Telecommunications 11,965 5,148203-(518)16,798
Aerospace & Defence6,942 1,236 8,838-(214)16,802
Global Positioning5,46240175-(147)5,530
Other 1,00959 1,521-(62)2,527
Total segment revenue by market25,378 6,483 10,737-(941)41,657
Underlying EBITDA(6,630)(4,570)(15)1,928 2,023(7,264)
Total assets
2
94,249 49,135 36,201 12,963 1,345 193,893
Additions of property, plant and equipment and intangibles3,725 2,230958-- 6,913
Total liabilities
3
23,546 13,622 7,782-600 45,550

1
Revenue is gains/(losses) on cash flow hedges apportioned to each segment based on hedged currency.
2
Segment assets are measured in the same way as in the financial statements. These assets are presented as it is regularly provided to
the CODM.
3
Segment liabilities are measured in the same way as in the financial statements. These liabilities are presented as it is regularly provided
to the CODM.

Rakon Limited
Notes to the Unaudited Financial Statements
30 September 2025

3. Segment information (continued)


9
b. Reconciliation of Underlying EBITDA to net profit after tax for the period

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.

Unaudited
six months
ended
30 September
2025
Unaudited
six months
ended
30 September
2024
$'000s$'000s
Underlying EBITDA3,597 (7,264)
Depreciation and amortisation (5,133)(4,277)
Adjustment for associate share of interest, tax and depreciation(1,237)(1,016)
Finance costs - net(403)(209)
Redundancy costs(443)(396)
Long term incentive scheme(419)(164)
One-off costs relating to acquisition proposal
1
- (1,708)
Other non-cash items 69 (26)
Loss before income tax benefit(3,969)(15,060)
Income tax benefit1,015 4,693
Net loss after tax for the period(2,954)(10,367)

1
In the prior year, the Group incurred $1,708,000 in legal and consulting costs related to an acquisition proposal. These costs are recorded
under general and administration expenses within operating expenses.

Rakon Limited
Notes to the Unaudited Financial Statements
30 September 2025


10
4. Revenue

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

a. Reportable segment revenue from contracts with customers

Unaudited six months ended 30 September 2025
NZ
France/
India
France
HiRelOther Total
$'000s$'000s$'000s$'000s$'000s
Products transferred at a point in time 31,4047,4654,9642943,862
Products and services transferred over time--10,373-10,373
Sales to external customers 31,4047,46515,3372954,235


Unaudited six months ended 30 September 2024
NZ
France/
India
France
HiRelOther Total
$'000s$'000s$'000s$'000s$'000s
Products transferred at a point in time 25,3786,4834,945(940)35,866
Products and services transferred over time--5,791-5,791
Sales to external customers 25,3786,48310,736(940)41,657

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.

Unaudited
six months
ended
30 September
2025
Unaudited
six months
ended
30 September
2024
$'000s$'000s
Asia21,184 13,804
North America18,021 17,557
Europe13,651 8,953
Others 1,379 1,343
Total segment revenue by geography54,235 41,657

Rakon Limited
Notes to the Unaudited Financial Statements
30 September 2025


11
5. Other gains/(losses) - net

Unaudited
six months
ended
30 September
2025
Unaudited
six months
ended
30 September
2024
$'000s$'000s
Gain/(loss) on disposal of property, plant and equipment, intangible and right-of-use-assets45 (1)
Financial asset at fair value through profit or loss(219)1,093
Revaluation of foreign denominated monetary assets and liabilities
1
(960)(2,582)
Total other gains/(losses) - net(1,134)(1,490)

1
Includes realised and unrealised gains arising from bank balances, accounts receivable and accounts payable.

6. Inventories

At 30 September 2025, the inventory provision was $7.4m (March 2025: $9.1m). This comprised $300k of provision and $2.0m
of provisioned inventory was scrapped.

Unaudited
six months
ended
30 September
2025
Audited
year
ended
31 March
2025
$'000s$'000s
Opening balance 9,082 6,891
Additional provision 269 3,566
Scrapped(2,000)(1,375)
Closing balance 7,351 9,082

7. Borrowings

In April 2024, the Company entered into an agreement with Hong Kong Banking Group, providing the Group with access to a
borrowing facility equivalent to NZ$48m for capital investment and working capital requirements. The facility is guaranteed by
Group assets and is subject to regular financial covenants. As at 30 September 2025, NZ$8.3m of the facility had been utilised.

a. Line of credits

The Group maintains the following line of credits:

Unaudited
six months
ended
30 September
2025
Audited
year
ended
31 March
2025
$'000s$'000s
Current
French Government loan1,228 1,396
Other borrowings9 43
Current borrowings1,237 1,439
Non-current
French Government loan- 688
Other borrowings 2,024 1,885
HSBC revolving credit facility 8,309 8,392
Non-current borrowings10,333 10,965

Rakon Limited
Notes to the Unaudited Financial Statements
30 September 2025

7. Borrowings (continued)


12
Crédit Agricole Provence Côte D’Azur
The bank borrowings include a balance of €0.6m for a French government-backed loan made available to Rakon France
(March 2025: €1.1m). In May 2021, the Company exercised its option to extend this loan for an additional five years.
Repayment is spread equally over the final four years, ending in June 2026. The effective interest rate is 0.55% for the
remaining term. There are no covenants on the loan, and no additional security is required.

8. Contingencies

There have been no material changes to contingent liabilities or assets since 31 March 2025.

9. Related party transactions

During the period, the Group engaged Brent Robinson, a director, to provide consulting services totaling $65,000. Apart from
this engagement, the Group did not enter into any other material contracts with related parties or involving Directors’ interests.
No amounts owed by related parties were written off or forgiven during the period.

10. Subsequent events

On 1 October 2025, the Group drew down an additional US$5.5m from its borrowing facility with Hong Kong and Shanghai
Banking Corporation Limited (HSBC). The facility bears interest at a base rate Secured Overnight Financing Rate (SOFR)
plus 2.0% margin. The funds will be used to support working capital requirements and planned capital expenditure.

In November 2025, the Group reviewed and refinanced its debt facilities with HSBC.

---

Rakon Limited
T: +64 9 573 5554
8 Sylvia Park Road, Mt Wellington, Auckland 1060, New Zealand
Private Bag 99943, Newmarket, Auckland 1149, New Zealand


Page 1 of 4

RAK 1H26 RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2025
1H26: Strong first half growth and strategic momentum
Rakon Limited (NZX: RAK), a global leader in frequency control and timing solutions, today released
its financial results for the six months ended 30 September 2025 (1H26), delivering a strong return
to growth with double-digit increases across revenue, margins and earnings.
The company reported 30% year-on-year revenue growth, a sharp lift in gross margin to 48.8%, and
a 149% increase in Underlying EBITDA
1
, reflecting strengthening demand across all of its markets.
FY26 Underlying EBITDA
1
guidance remains unchanged at $15m to $24m.
Highlights:
 Double-digit increases in revenue, gross margin percentage and Underlying EBITDA
1
:
o Revenue $54.2m, +30.2% YoY – broad-based growth across all major markets
o Gross Margin 48.8%, +11 percentage points from 37.8% in 1H25 – driven by scale, mix and
India cost efficiencies
o Underlying EBITDA
1
$3.6m, +149% YoY – strong operating leverage and disciplined cost
base.

 Market momentum across the portfolio:
o Aerospace & Defence (Revenue: $20.1m, +20% YoY): Fifth consecutive period of record
growth; demand accelerating with a $75m+ global contracted Aerospace and Defence
(A&D) order book – the highest in Rakon’s history – and a rapidly expanding multi-year
pipeline
o Telecommunications (Revenue: $25.0m; +49% YoY): Rebounded strongly as orders
recovered and customer inventory normalised
o AI & Data Centre (currently reported as a part of Telecommunications): Delivered 50% YoY
revenue growth; meaningful FY26 revenue expected as Tier-1 programmes scale
o Positioning (Revenue: $6.3m, +14% YoY): Stable, profitable niche with growth
opportunities.

 Cost discipline delivering margin expansion: Efficiency programmes and global manufacturing
optimisation have reduced the cost base while enabling increased strategic investment capacity
across New Zealand, India and France.

 Strategic execution accelerated in 1H26:
o France A&D cleanroom expansion completed, unlocking capacity to fulfil rapidly expanding
global demand and support the $75m+ A&D order book. In addition, India production is
now in full volume for transferred product lines, already delivering approximately $2m of
margin uplift from the first 25% of the planned NZ-to-India transfer. As around 80% of total

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 2 of 4

production migrates over the next three quarters, these benefits are expected to expand
substantially, underpinning Rakon’s long-term margin and capacity strategy.
o Approval under the Government of India’s Electronics Component Manufacturing Scheme
(ECMS) - one of the very few companies outside India to secure this status. While the
designation provides a minimum $3.5m government grant, its greater value lies in
materially accelerating Rakon's global innovation and manufacturing roadmap.
o See attached “Rakon announces recent strategic milestones in global strategy” document
for more detail on the cleanroom expansion and ECMS approval.

Rakon continues to execute strongly on its FY26–FY28 roadmap, focusing on markets with the
highest long-term growth potential: Aerospace & Defence, AI & Data Centre, and next-generation
Telecom infrastructure.
The company is lifting market share in core segments, scaling capacity globally, and driving cost and
operational efficiencies across New Zealand, India and France. Together, these actions are expanding
margins, accelerating growth, and positioning Rakon to capture significant global demand over the
next three years.
CEO of Rakon, Sinan Altug, commented: “1H26 marks a clear return to growth for Rakon. Revenue
grew 30% year-on-year, gross margin lifted to 48.8%, and Underlying EBITDA rose 149%. We saw
strong contributions across the portfolio — Telecom rebounded, Aerospace & Defence delivered its
fifth consecutive period of growth, and our AI & Data Centre business began generating meaningful
revenue.
“The global transformation undertaken in the past two years is now delivering tangible results. The
India Centre of Excellence is in volume production, already providing margin benefits, and will scale
rapidly as more production transfers from New Zealand. This shift continues to free New Zealand to
focus on innovation and new product introductions while India scales to meet global demand. Our
expanded France facility underpins delivery of Rakon’s $75m+ global Aerospace & Defence order
book — the largest in our history — supported by coordinated manufacturing across France, India
and New Zealand.
“With growing demand, expanding capacity and a stronger operating model, Rakon is well
positioned to accelerate into 2H26 and deliver sustained long-term value.”
1H26 Financial Performance
Revenue grew +30% YoY to $54.2m, reflecting strong contributions across all major markets.
Gross margin rose by +11 percentage points to 48.8%, reflecting higher volumes, richer product mix
and early benefits from Rakon’s global manufacturing optimisation.

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 3 of 4

Operating expenses remained tightly controlled, with FY25 restructuring delivering ~$1.5m in
annualised savings that have been redeployed into the A&D capacity expansion in France. Revenue
growth materially outpaced cost increases in 1H26, driving operating leverage and bringing opex as a
percentage of revenue down for the half by -17.6ppt YoY.
Underlying EBITDA
1
rose +149% to $3.6m, reflecting strong operating leverage across the business.
Net loss after tax improved by $7.4m YoY to $(3.0)m. This momentum is expected to continue into
2H26, supported by higher volumes, improved margins and increased manufacturing efficiency.
Rakon maintains a robust balance sheet, supporting disciplined investment in expanded
manufacturing capacity for high-demand A&D, Telecom and AI & Data Centre products. Working
capital efficiency improved in the half, while preserving the ability to meet rising customer demand.
In November, Rakon completed the renewal of its debt facility with global banking and financial
services group, HSBC.
Outlook
Rakon enters 2H26 with strong momentum and reaffirms FY26 Underlying EBITDA
1
guidance of
$15m–$24m. Earnings are expected to skew heavily toward 2H26, consistent with Rakon’s historic
seasonality and the timing of major programme deliveries.
Growth is expected across all major segments, led by sustained strength in Aerospace & Defence,
expanding programmes in AI & Data Centre, and a steady Telecom recovery as global 5G investment
resumes. Operational efficiencies and the scale-up of India and France manufacturing are expected
to deliver further margin expansion in the second half.
Management remains focused on delivering the FY26–FY28 roadmap, as Rakon moves from
stabilising to scaling. The company continues to target $250m revenue and $75m Underlying
EBITDA
1
by FY30, underpinned by strong growth markets, operating leverage, and a globally scalable
manufacturing footprint
2
.

1 Non-GAAP disclosures: Refer to note 4 of the FY2025 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).
2 The FY30 Aspiration data should not be interpreted as guidance. See Disclaimer on “Important Notice” slide in
1H26 Investor Presentation for more information.
All numbers are stated in New Zealand dollars (NZ$) and relate to the six months ended 30 September 2025
(1H26), with comparisons to the six months ended 30 September 2024 (1H25) unless stated otherwise.

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 4 of 4

Further information on Rakon’s 1H26 results, performance and outlook is available in the Investor Presentation
provided today.
-ENDS-
Authorised for release to the NZX by Rakon’s Board of Directors.

Investor and media contact:
Nick Laurent
Investor and Corporate Communications Manager
investors@rakon.com
+64 21 240 7541

About Rakon
Rakon’s products help people to connect, explore and innovate. They are the ‘heartbeat’ for
electronic systems, delivering fast, precise and stable timing in everything from mobile networks and
autonomous vehicles to satellite constellations and AI data centres. Whether connecting to a 5G
tower or to a rover exploring Mars, our technology is relied on to deliver the highest performance in
even the most extreme conditions. Thanks to our constant drive to innovate, we continue to
empower our customers to create the next-generation of life-transforming technologies. For more
information visit www.rakon.com.

---

28 November2025© Rakon Limited
For the sixmonths to 30 September2025
Half year results presentation FY2026

Disclaimer
This presentation contains not only a review of operations, but also some forward looking statementsabout Rakon Limited and the
environment in which the company operates. Because these statements areforward looking, Rakon Limited's actual results could
differ materially.
Although management and directors may indicate and believe that the assumptions underlying theforward looking statements are
reasonable, any of the assumptions could prove inaccurate or incorrectand, therefore, there can be no assurance that the results
contemplated in the forward lookingstatements will be realised.
Media releases, management commentary and investor presentations 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. Please read 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
(six months to 30 September2024) unless otherwise noted.
Non-GAAP measures
Refer to note 4of the FY2025 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).
Important Notice

Agenda
Key takeaways
Results at a glance
Financial performance
Market performance
Outlook and guidance
Q&A
Sinan Altug
Chief Executive Officer
Mark Dunwoodie
Chief Financial Officer

Key takeaways
Double digittopline growthand improved operating leverage
»Revenue $54.2m, +30% YoY
»Gross margin 48.8%, +11ppt YoY
»Underlying EBITDA $3.6m, +149% YoY
Aerospace & Defencedelivers; Telco rebounds; AI & Data Centre building momentum
»Aerospace & Defence+20% YoY; fifth consecutive growth period; $75m+ global backlog —largest in Rakon’s history
»Telco revenue rebound +49% YoY; run-rate strengthened
»AI & Data Centre +50% YoY; meaningful FY26 contribution expected
»Positioning +14% YoY; steady demand, new applications
Controlled investment for focused growth
»Opex$29.6m(-1% YoY); reflecting disciplined cost control
»Opex54.6% of revenue (-17.6ppt YoY), as revenue growth outpaced costs
»Focused on topline growth while controlling Opex, maintaining investments to scale and preserve technology leadership
Positive momentum continues; FY26 guidance unchanged
»1H26 profitability was in line with expectations; strong run rate continues into 2H
»FY26 Underlying EBITDA
1
guidance unchanged at $15-24m;significant2Huplift expected from seasonality and programmetiming
1
Non-GAAP disclosures: Refer to note 4of the FY2025 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)

Revenue
$54.2m
30%YoY
+$12.5m
UnderlyingEBITDA
1
$3.6m
149% YoY
+$10.9m
Net profit after tax (NPAT)
($3.0m)
71% YoY
+$7.4m
Opex
$29.6m
FLATYoY
-$0.4m
1
Non-GAAP disclosures: Refer to note 4 of the FY2025 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)
Growth track continues through 1H26
»Strong top-line growth: revenueand
GM%up by double-digits YoY
»Key revenue drivers: strong performance
in Aerospace and Defence; Telco segment
rebound; AI & Data Centre sub-segment
grew by 50% YoY; and moderate growth
in Positioning
»Underlying EBITDA
1
up 149% YoY;
NPATup 71% YoY
»Opex steady as costs controlled; inventory
up as the business scales production and
increases manufacturing capacity for
high-demand Aerospace andDefence and
AI & Data Centre products

FY26-FY28 Growth Roadmap
T ELECOMUNICAT IONS
ANDPOSITIONING
AI & DATA CENT RE
OPERAT IONS
ANDSYST EMS
FY 2026
FY 2027
FY 2028
»Convert initial
orders from Tier-1
players
»Delivery of
significant revenue
»Continue design
wins for next-gen
architecture
»Grow AI hardware
revenue
»Continue selected
product transfers to
India facility
»Volume production
of products
transferred in FY25
»Achieve ‘default’
supplier status in
targeted classes
»Drive production
efficiency
»Complete next
phase of key
product
transfers into
India
»Leverage global
manufacturing to
maximise
competitive
advantage and
production efficiency
»Increased orders
and improved
margins as
demand returns
»Move to higher
value product
mix, leveraging
proprietary
XMEMS and chip
technology
»Increase volumes
in targeted
segments through
higher-value
product mix
AEROSPACE
&D EFENCE
»Delivery of current
subsystem contracts
»Ramp up space
product
manufacturing
capacity
»Release next-gen
semiconductor
and products for
space applications
»Scale production of
latest subsystem
products
»Grow share of
global space
market

FY26 milestones on track
»France cleanroom expansion completed
»$75m+ global backlog –largest in Rakon’s history
»New wins in LEO subsystem programmesincluding direct-to-device space-
based cellular broadband
Aerospace & Defence
Leading supplier of subsystems and components
for precision timing and synchronisation
FY26 Growth
Milestones
ACHIEVED
»Tier-1 design wins and order conversions on track
»+50% YoY growth in 1H26
»Significant FY26 revenue expected in 2H
AI & Data Centre
Enabling performance demands ofAI
infrastructure and data centres
FY26 Growth
Milestones
ON TRACK
»Telecom rebound +49% YoY; order normalisation achieved
»Maintaining high design-win rates
»YoY growth outlook supported by 5G densification and Fixed Wireless Access
1
Telecommunications and Positioning
Retaining and growing market share throughtech
leadership and next-generation products
FY26 Growth
Milestones
ON TRACK
»Mercury+™ product transfer and volume production achieved (NZ → India)
»Margin uplift already in play (~$2m from first 25% of transfers)
»Indian Government’s Electronics Component Manufacturing Scheme (ECMS)
approval secured and allocated minimum grant of $3.5m
Operations and Systems
Driving customer focus and efficiency,and leverage
global manufacturing
FY26 Growth
Milestones
ACHIEVED
1
Fixed Wireless Access: broadband internet access via wireless 5G networks

Keyprogressin1H26
» Mercury+™ product line transfer completed (NZ → India)
» Full-volume production achieved October 2025
» ~25% of NZ-based Commercial BU volume transferred
Marginandefficiencygains
» ~$2m margin uplift already realised from first 25% of transfers
» Lower overhead base driving sustained reduction in unit cost
» Improved production efficiency, extended product lifecycles and higher ROI
Capacityandstrategicadvantages
» India centre fully operational and scaling rapidly
» Transfer frees NZ capacity for AI & Data Centre product launches and production
» India positioned as primary high-volume hub; NZ/France focus on innovation and complex builds
Nextsteps(FY26–FY27)
» Progress transfer to ~80% of targeted production within next 3 quarters
» Continue ICC strategy: transfer products once they reach critical scale in NZ/France
» Additional margin uplift expected as volumes increase and sites are right-sized globally
India transfers unlock margin benefits

Performance for six months to 30 September 2025
NZ$m
1H261H25YoY
change
% change
Revenue
54.2
41.7+12.5+30%
Gross profit
26.5
15.7+10.8+69%
Gross margin %
48.8%
37.8%+11%
Operating expenses
29.6
30.0-0.4-1%
Net profit after tax
(3.0)
(10.4)+7.4
+71%
Underlying EBITDA
1
3.6
(7.3)+10.9
+149%
Capital expenditure
7.9
6.9+1.0+14%
Operating cash flow
6.4
8.3-1.9-23%
Financial Position
Sep-25
Mar-25Variance% change
Cash and cash equivalents
12.4
15.8-3.4-22%
Debt
-12.4
-5.6-6.8-121%
Inventory
56.6
51.5+5.1+10%
1
Non-GAAPdisclosures:Refertonote4oftheFY2025consolidatedfinancialstatementsforanexplanationofhow‘Non-GAAP
FinancialInformation’isused,includingadefinitionofUnderlyingEBITDA’andreconciliationtonetprofitaftertax(NPAT)
1H26 key financial results
$42m
$54m
38%
49%
HY25HY26
1H Revenue and Gross Margin %
1H RevenueGross Margin %
($7m)
$4m
HY25HY26
1H Underlying EBITDA
1

9
9
Aerospace & Defence
1H26 revenue: $20.1m; +20% YoY (1H25: $16.8m) 37% of 1H26 group revenue
»Revenue up +20%, delivering year-on-year growth for 5
th
consecutive
financial year
»Strong momentum driven by high product demand across Aerospace
& Defence (A&D)
»A&D backlog (contracted orders received but not yet delivered)
currently valued at over $75m
»Fast-growing, multi-year pipeline (forecast orders for FY27 and
beyond), currently limited only by our rate of capacity expansion
»High customer order growth in key product categories including
subsystems and components for Low-Earth Orbit (LEO) satellites and
constellations, and components for short to medium range ground-
based air defence radar applications
$16.8m
$20.1m
64%
63%
HY25HY26
A&DRevenue and Gross Margin %
1H RevenueGross Margin %

10
10
Telecommunications
»Telecom revenue up +49% year-on-year. GM% is 42%, up +27% YoY;
operating leverage has improved with orders returning
»Maintaining market share and a high design win rate (6G ready radio
platforms from Tier-1s)
»Anticipate a return to moderate YoY growth, driven by continued
network densification activity globally, the ongoing rollout of 5G Fixed
Wireless Access (FWA)
1
, and the additional services enabled by 5G
Standalone/Advanced infrastructure –including private networks and
network slicing
AI & Data Centre sub-segment
»Revenue up +50% YoY, driven by demand from Tier-1 AI & Data
Centre Infrastructure players
»Focused on YoY growth and expect to report significant AI & Data
Centre revenue as a separate market segment in FY26 results
1H26 revenue: $25.0m; +49% YoY (1H25: $16.8m) 46% of 1H26 group revenue
$16.8m
$25.0m
15%
42%
HY25HY26
TelcoRevenue and Gross Margin %
1H RevenueGross Margin %
1
Fixed Wireless Access: broadband internet access via wireless 5G networks

Positioning
»Revenue up 14% year-on-year; GM % up 6% year-on year due to
product mix
»Successfully maintaining market share and high design win rate in the
higher marginPrecise Positioning sub-segment (eg beacons)
»New opportunities are emerging in Precise Positioning products for
autonomous and uncrewed vehicles –including new product orders
for undersea vehicle applications requiring tight specifications (similar
to Aerospace requirements)
1H26 revenue: $6.3m; +14% YoY (1H25: $5.5m) 12% of 1H26 group revenue
$5.5m
$6.3m
45%
51%
HY25HY26
PositioningRevenue and Gross Margin %
1H RevenueGross Margin %

Market outlook and guidance
Marketoutlook
Aerospace&Defence
»ContinuedYoYgrowthdrivenbystrongglobaldemandforsubsystemsandcomponents
»Deliveringagainstrecordbacklogwhileexpandingcapacitytomeetexistingordersandsupportmulti-yearpipeline
Telecommunications
»OntrackforYoYgrowth;recoverydrivenbyglobal5GnetworkdensificationandFWAuptake
»AIecosystemdrivinghigher-specificationtimingrequirements,playingdirectlytoRakon’sstrengths
AI&DataCentre
»SignificantFY26revenueasordersfromtier-1playersconverted
»Design-winpipelineexpandingacrosstargetedcategories
Positioning
»Stableperformancewithselectivegrowthopportunitiesinautonomousanduncrewedsystems
FY26 Underlying EBITDA
1
guidance:
$15-24m (unchanged)
1
Non-GAAP disclosures: Refer to note 4 of the FY2025 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)

On track for strong full year growth
Strong 1H top line growth; double digit increase in 1H26 revenue and GM%
»Momentum continued from 2H25; expect a stronger performance in 2H26 driven by seasonality
Aerospace & Defence continues strong YoY growth
»Growth trend continues, driven by customer demand and validated by backlog and multi-year pipeline
Telco market rebound; Significant AI & Data Centre revenue expected for FY26
»Expect to report significant AI & Data Centre revenue as a separate market segment in FY26 results
Continued controlled investment for focused growth
»Realising benefits of market segment aligned re-organisation and product transfers; investing to scale production and capacity for
A&D and AI & Data Centre products
»Accelerating the next product transfers, supported by Indian Government grant
Positive momentum continuing; on track to deliver FY26 guidance
»October revenue continues the positive 1H trend; entering 2H with momentum, expecting further lift from seasonality

14
Shareholder questions

www.rakon.com
End of presentation. Thank you for attending.

16
Appendix

1
Non-GAAPdisclosures:Refertonote4oftheFY2025consolidatedfinancialstatementsforanexplanationofhow‘Non-GAAPFinancialInformation’isused,includingadefinitionofUnderlyingEBITDA’andreconciliationtonetprofitaftertax(NPAT)
Appendix: Core financials (5-year view)
Performance for the year to 30 September
NZ$m
HY26HY25HY24HY23HY22
Revenue 54.241.761.387.285.4
Gross profit26.515.726.143.543.5
Gross margin %48.8%37.8%42.6%49.9%50.9%
Operating expenses29.630.028.828.424.6
Net profit after tax(3.0)(10.4)0.516.018.9
Underlying EBITDA
1
3.6(7.3)5.328.126.4
Capital expenditure7.96.97.39.74.4
Operating cash flow6.48.37.30.04.5
»Note: HY22 and HY23 revenue and
gross margins benfited significantly
from a short-term opportunity to
capture one-off orders due to a
temporary global shortage inTCXO
chips; orders completed in FY23

---

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 2


Rakon announces recent strategic milestones in global strategy
28 November 2025; Rakon is pleased to announce two significant strategic milestones, further
validating and demonstrating the momentum of its global strategy.
Aerospace and Defence facility expansion in France supports $75m+ backlog
The completion of an expansion and new cleanroom at Rakon’s Aerospace and Defence R&D and
manufacturing facility in France enables the company to ramp up production capacity to meet its
multi-year order backlog currently valued at over NZ$75m. It also positions Rakon to deliver on its
fast-growing, pipeline.
Chief Executive Sinan Altug says: “Over the past three financial years, the Aerospace and Defence
segment has delivered year-on-year double-digit revenue growth. We have a significant contracted
backlog for this segment, the largest in Rakon’s history, and a robust multi-year pipeline supported
by contracts that are typically signed 1 to 3 years ahead of delivery – providing long-term visibility.
“Currently, that pipeline is limited only by our rate of capacity expansion, which is why we are
making strategic investments that extend Rakon’s technology leadership, and provide a substantial
lift in capacity to meet fast-growing demand,” says Altug.
Managing Director, Aerospace and Defence Chloé Gautrin says: “The fast-growing demand for
Rakon’s cutting-edge products is driven to a significant extent by the rapid expansion of commercial
Low-Earth-Orbit (LEO) satellite constellations and government Space and Defence programs.
“We have a number of different subsystem and component products that fill important niches
within Aerospace and Defence, serving an addressable market exceeding NZ$1 billion in 2025. These
products often carry higher margins, reflecting engineering intensity, qualification requirements, and
limited competition able to deliver the same product specifications and performance,” says Gautrin.
Rakon has already secured significant wins for its subsystem products and is strongly positioned for
similar LEO constellation opportunities, including a recent multi-million dollar contract win to supply
the next stage of a mega-constellation for a major player in the direct-to-device, space-based cellular
broadband industry.
$3.5m+ grant under Indian Government Scheme
Rakon has been approved under the Government of India’s Electronics Component Manufacturing
Scheme (ECMS) and allocated a minimum grant of NZ$3.5m to invest in its Indian operations.
The ECMS is a landmark initiative to drive revenue and value-chain growth within India’s hi-tech
electronics manufacturing sector. The grant underscores Rakon’s position as a strategically
important technology manufacturer within India, as well as the company’s commitment to invest in
the growth of its Indian operations.

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 2 of 2

Altug said: “The strategic view and leadership shown by the Government of India to support and
catalyse its electronics and semiconductor industries is very encouraging. The grant will enable a
further acceleration of our ongoing strategy to transfer key product lines and latest proprietary
technologies into our Indian facility – to realise key benefits including improved overhead structure,
extended product lifecycles and competitive product costs.”
In October, Rakon announced the completed ramp-up for volume production of its Mercury+™
product line in India. This product line, transferred from New Zealand, contains high volume, cutting-
edge products for Telecommunications and AI & Data Centre applications. The on-schedule delivery
of this milestone, and the cost benefits already being delivered, provides important validation of the
company’s strategy to invest in its Indian manufacturing facility.
-ENDS-

Rakon Aerospace and Defence
Rakon is a leading supplier of subsystems and oscillators for the fast-growing global Space and
Defence industries. The company has a 40+ year heritage of working with leading companies and
agencies including NASA (USA), ISRO (India), ESA (EU), CNES (France) and DLR (Germany) to develop
groundbreaking products for satellite constellations, space infrastructure and exploration
programmes.
Rakon India
Rakon has been operating in India for over 16 years and currently employs over 300 people at its
research and manufacturing facility in Bengaluru (inaugurated in June 2023). This facility is one of
the world's largest and most sophisticated research and manufacturing sites for advanced frequency
control and timing solutions, with a total built-up area of 9,290 square metres across three levels.
The new facility replaced Rakon's former leased sites in Bengaluru, and both futureproofs its India
operations and affirms Rakon's long-term commitment to growing its Indian operations.
For more information, visit www.rakon.com.