Rakon (RAK) Assessment of COVID-19 Risk

5 March 2020 Rakon (RAK) Assessment of COVID-19 Risk Rakon Limited ('Rakon') updates shareholders in light of COVID-19 (Coronavirus). Rakon is monitoring its supply chain and confirms both its New Zealand and India operations have experienced some reduced or delayed deliveries of manufacturing materials from suppliers based in China. Rakon is also monitoring its customers' behaviour, including ordering, consumption of inventory and delivery logistics. At this stage we do not have certainty of suppliers' and buyers' situations to determine the full impact on Rakon. The previously announced guidance of Underlying EBITDA1 of between NZ$9 million and $11 million for the 12 months to 31 March 2020 (excluding the impact of IFRS2 16 Leases) remains and the company will update the market should the outlook materially change. -ends- Contact: Anand Rambhai Chief Financial Officer +64 9 571 9225 www.rakon.com 1 Disclosure of Non-GAAP Financial Information. Rakon uses 'Underlying EBITDA' as a measure of non-GAAP financial information and it is defined as: 'Earnings before interest, tax, depreciation, amortisation, impairment, employee share schemes, non-controlling interests, adjustments for associates and joint venture's share of interest, tax & depreciation, loss on disposal of assets and other cash and non-cash items.' 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. A detailed reconciliation of Underlying EBITDA to net profit after tax is contained at note B1 c) (Segment information) of the unaudited financial statements for the six months ended 30 September 2019. 2 IFRS International Financial Reporting Standard End CA:00349452 For:RAK Type:MKTUPDTE Time:2020-03-05 09:37:41