RAKON / ANNUAL REPORT / 2024
RAKON /ANNUAL REPORT /2024
Synchronising
the AI revolution.
Rakon's Niku™ TCXO platform.
Groundbreaking semiconductor design combined with cutting- edge XMEMS® oscillator technology. Delivering the precise timing and synchronisation required for next-generation data centres and AI Factories.
Niku™ TCXO platform not shown to scale.
01
About Rakon
Precision is power.
Our products help people to connect, explore and innovate.
They are the 'heartbeat' for electronic systems, delivering fast,
precise and stable connectivity 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. On Earth, and beyond.
RAKON /ANNUAL REPORT /2024
02 | RAKON /ANNUAL REPORT /2024 |
Supplying the global
space industry
For over 40 years Rakon has worked alongside leading agencies including NASA, ESA and ISRO to develop ground-breaking products for their space programmes.
We've now leveraged that experience and expertise to capture growth opportunities within the fast-growing commercial space industry, and are a top-3 supplier for our subsystems products.
We're seeing unprecedented demand for our expanding product range and are proud to have been selected to supply our subsystems for two new Low-Earth Orbit satellite constellations (see page 28).
03
Emerging core market: AI
Rakon's technology and products are ideally suited for overcoming the synchronisation challenges that data centres face with AI workloads.
Our solutions help to unlock the major
performance gains demanded by AI workloads, and we are working with leading players in AI hardware to enable next-generation platforms and data centres (see page 26).
RAKON /ANNUAL REPORT /2024
04 | RAKON /ANNUAL REPORT /2024 |
Welcome to our 2024 Annual Report
This document reports on Rakon's operational and financial performance for the year to 31 March 2024 (FY24). We have focused on what we believe matters most to our stakeholders and business.
This report provides a clear look at our company and shows how we are delivering against our strategic priorities of technology innovation, core market growth, customer partnerships, and flexible, scalable operations.
Our commitment to sustainability is demonstrated through our Environmental, Social and Governance (ESG) actions and this report includes an update on our progress across a number of material ESG related topics. In a change from last year's report, we will deliver our climate reporting as a standalone online document, to be published on or before 31 July 2024, that will be available on our website: rakon.com/investors/reports-presentations-events.
We have endeavoured to ensure all information is accurate, including performing internal verification. The information provided in this report has been compiled in line with NZX Listing Rules and recommendations for investor reporting.
The financial statements on pages 65-113 have been prepared in accordance with appropriate accounting standards and have been independently audited by PricewaterhouseCoopers.
We know many investors prefer to view this report online. Our company review and financial documents are included in this report, in an easy-to-read format.
We welcome your feedback on this report, including how we can improve. Please email your feedback to: investors@rakon.com.
05
Contents
RAKON /ANNUAL REPORT /2024
THE YEAR | LONG-TERM | CORE MARKET | AI, SPACE, AND INDIA | SUSTAINABILITY | FINANCIALS AND |
IN CONTEXT | GROWTH PLAN | OVERVIEW | MANUFACTURING | AND ESG | OTHER DISCLOSURES |
Our global operations | 06 | Four paths to growth | 14 | Space and defence | 20 | Emerging core market: AI | 26 | Our People | 32 | Consolidated | 66 | ||||||
financial statements | |||||||||||||||||
Performance snapshot | 08 | How we create | 15 | Telecommunications | 22 | Synchronising AI | 27 | Board and | 35 | ||||||||
long-term value | Management profiles | Notes to the consolidated | |||||||||||||||
Highlights | 08 | Positioning | 24 | Subsystem success in space | 28 | 72 | |||||||||||
financial statements | |||||||||||||||||
3 year roadmap | 16 | Driving sustainability | |||||||||||||||
Chair & CEO report | 09 | Four decades of | 40 | ||||||||||||||
29 | through our business | Independent | |||||||||||||||
space exploration | 110 | ||||||||||||||||
Auditor's Report | |||||||||||||||||
Our ESG framework | 42 | ||||||||||||||||
Framework for efficiency | |||||||||||||||||
30 | Remuneration Report | 114 | |||||||||||||||
and innovation | Improving our | ||||||||||||||||
44 | |||||||||||||||||
environmental impact | Shareholder | 119 | |||||||||||||||
Information 2024 | |||||||||||||||||
Our supply chain, people | |||||||||||||||||
49 | 122 | ||||||||||||||||
and practices | Indexing | ||||||||||||||||
Contributing in | 50 | Directory | 124 | ||||||||||||||
our communities | |||||||||||||||||
Corporate Governance | 51 | ||||||||||||||||
Glossary | 63 | ||||||||||||||||
06 | THE YEAR IN CONTEXT | RAKON /ANNUAL REPORT /2024 |
Our global operations
KEY: | |||||
• Manufacturing sites | |||||
• R&D centres | |||||
• Customer support locations | |||||
• Quality assurance | |||||
• Key manufacturing partners | |||||
~70 | 7 | 6 | 16 | ~850 | 45 |
countries with | company and partner | R&D centres | customer support | employees worldwide | nationalities in the |
Rakon customers | manufacturing sites | of excellence | locations | Rakon global team |
07 | THE YEAR IN CONTEXT | RAKON /ANNUAL REPORT /2024 |
T H E Y E A R
I N C O N T E X T
08
Performance snapshot
REVENUE
$128.0m
- $52.3M OR 29%
NET PROFIT AFTER TAX (NPAT)
$4.5m
- $18.7MM OR 81%
OPERATING CASH FLOW
$17.8m
- $6.7MM OR 60%
THE YEAR IN CONTEXT
GROSS MARGIN
$57.9m
- $30.9M OR 35%
$UNDERLYING13EBITDA .5m
- $28.7M OR 68%
NET CASH
$17.8m
- $3.9M OR 18%
RAKON /ANNUAL REPORT /2024
Highlights
Highest ever space segment revenue
CYCLICAL SLOWDOWN IMPACTING
TELCO AND POSITIONING
Top 3 player in space subsystems
NEW SATELLITE SPACE CONTRACTS POSITION RAKON AS A TOP PLAYER IN SUBSYSTEMS
Consistent market share gains
NEAR 100% DESIGN WIN RATE
ON TARGETED PROJECTS
Emerging core market: AI computing hardware
EXPANDING PRODUCT RANGE FOR AI DATA CENTRES
Delivery of 3-year growth plan
ALL FY24 MILESTONES ACHIEVED OR IN PROGRESS
All figures are presented in New Zealand dollars unless otherwise indicated.
All comparisons are to the prior corresponding period (i.e. 12 months to 31 March 2023) unless otherwise stated.
1 Refer to the footnote on page 63 for the definition of Underlying EBITDA as a non-GAAP financial measure, referred to in this document.
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Disclaimer
Rakon Limited published this content on 27 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2024 15:19:03 UTC.