Rakon (RAK) investor relations material

Opening remarks and agenda

• The meeting was held as a hybrid event, with both in-person and online participation, and included instructions for Q&A and voting procedures.

• Attendees were reminded about forward-looking statements and the meeting's recording for transcription.

• Chair's address was delivered by Dr Mark Bregman, followed by the Chief Executive's review, shareholder questions, resolutions, and general business.

Board and executive committee updates

• Significant board changes occurred, with three independent directors stepping down and new appointments made, including Peter Baines as an independent director.

• Lorraine Witten agreed to remain on the board and chair the Audit and Risk Committee to maintain NZX compliance.

• Several directors, including Mark Bregman, John Rabe, and Elizabeth Jacobs, withdrew from election, citing governance disputes.

• Leadership and business structure were reorganised, aligning market-segment business units and matching critical roles to top talent.

Financial performance review

• FY25 revenue was $104M, down 19% year-on-year, but the second half saw a 49% improvement over the first half.

• Gross margin for FY25 was 43.1%, up 9% in the second half compared to the first, and has increased to 50%.

• Underlying EBITDA for FY25 was $9.5M, near guidance mid-point, with normalized OpEx reduced by 10% and inventory down 16%, releasing $8.5M in cash.

• Record Aerospace & Defence revenue with 15% YoY growth; telecommunications segment stabilised.

• FY26 guidance is for underlying EBITDA of $15M–$24M, with revenue aspirations of $120M–$130M.