NOT PRICE SENSITIVE
REL: 0937 HRS Rakon Limited
MKTUPDTE: RAK: 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.
Chief Financial Officer
+64 9 571 9225
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