PRESS RELEASE : paragon Exceeds Revenue Forecast for 2020 and Wants to Surpass Pre-Pandemic Levels in the Current Year

DGAP-News: paragon GmbH & Co. KGaA / Key word(s): Preliminary Results/Change in Forecast 
paragon Exceeds Revenue Forecast for 2020 and Wants to Surpass Pre-Pandemic Levels in the Current Year 
2021-03-30 / 07:00 
The issuer is solely responsible for the content of this announcement. 
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paragon Exceeds Revenue Forecast for 2020 and Wants to Surpass Pre-Pandemic Levels in the Current Year 
- Strong performance in the second half of the year compensates for coronavirus-related revenue shortfalls - best 
half-year in the company's history 
- Decline in revenues of only 6% to EUR 127.2 million (prior year: EUR 135.9 million) - forecast of EUR 110-120 million 
clearly exceeded 
- Earnings significantly increased - paragon Automotive preliminary EBITDA margin for the 2020 fiscal year of 10.8% 
(prior year: 6.7%) despite coronavirus-related plant closures 
- Forecast for 2021 raised after a good start to the year: Revenues from automotive customers around EUR 145 million and 
EBITDA margin of 12-15% - free cash flow in double-digit millions expected 
Delbrück, Germany, March 30, 2021 - paragon [ISIN DE0005558696] has exceeded its own expectations and left the impact 
of the coronavirus pandemic behind. According to preliminary, unaudited numbers, the Tier 1 supplier and technology 
partner of the automotive industry achieved revenues significantly exceeding the indicated corridor of EUR 110-120 
million in its core automotive business in the 2020 fiscal year. The earnings forecast was clearly achieved. The 
driving force behind this was the very positive development in the Sensors and Digital Assistance business units. The 
company is already planning to exceed the revenue result achieved in 2019 in the current fiscal year thanks to the 
constant high rate of customer call-offs. 
"The paragon business model passed the stress test of the pandemic. It became clear in 2020, if not before, that our 
positioning makes us absolutely crisis-resistant. We are on the right track in terms of revenue, earnings and cash 
flow. Building on this, in 2021 we will be able to surpass the pre-coronavirus levels of 2019," says Klaus Dieter 
Frers, founder and CEO of paragon. 
According to preliminary figures, paragon Automotive had sales in continuing operations of EUR 127.2 million, which 
exceeded not only the revenue forecast of EUR 110-120 million, but also the prospective mark of EUR 125 million. This was 
due to the second half of the year, the best half-year in paragon's history of more than 30 years. According to 
preliminary figures, paragon recorded a decline in revenues of 21.8% to EUR 50.0 million (prior year: EUR 64.0 million) in 
the first six months as a result of closing the plants for six weeks. In the second half of the year, preliminary 
calculations show revenues of EUR 77.1 million (prior year: EUR 71.9 million), which is an increase of 7.3% compared to the 
prior year's period. Preliminary EBITDA for the year as a whole amounts to EUR 13.8 million. The corresponding margin of 
10.8% (prior year: 6.7%) is in the upper end of the forecast corridor of 8-12%. In the fourth quarter alone, paragon 
achieved an EBITDA margin of 14.5%, after a value of 12.2% in the third quarter of 2020. Preliminary calculations show 
a margin of 13.5% for the entire second half of the year. 
"Our improved income and earnings situation is the result of our resolute measures to optimize performance in the 
various operating segments and shows where we stand," emphasizes Klaus Dieter Frers. 
Dr. Matthias Schöllmann, Managing Director Automotive at paragon, adds: "We have seen a highly satisfactory development 
in sales due to numerous new orders, especially in the Sensors business unit with the innovative particle sensor 
Dustdetect(R). Our AI-based solutions for digital assistance systems also demonstrate continually increasing market 
penetration. These effects will continue in 2021." 
The operating cash flow of continuing operations in the 2020 fiscal year was more than EUR 13 million according to 
preliminary figures. The free cash flow of over EUR 6 million was mostly generated in the second half of the year. 
The positive trends in paragon's automotive business became apparent in the first months of this year. The company 
started the fiscal year very well, with an 18% increase in revenues to the end of February compared the same period 
last year. The EBITDA margin target of 14.8% for this period is based on the upper end of the forecast for the year as 
a whole. The driver of growth in the current year will once again be the business units Sensors, due to further series 
launches, and Digital Assistance with the positive development of the licensing model. The paragon Group's flourishing 
business in China supports this development. 
Due to the growing number of requests from automotive manufacturers, the Management has increased the forecast for the 
2021 fiscal year announced in December of last year from EUR 140 million to EUR 145 million, which is higher than the 2019 
level of revenue. paragon Automotive expects an EBITDA margin of 12-15%. Free cash flow should grow to the double-digit 
million range and be between EUR 10 and 12 million. The Management assumes that any supply shortages for components will 
have a low impact, if any. 
Meanwhile, the Management of paragon is unhappy with the share price performance of both issued bonds. They believe 
that the price level does not reflect the robustness of the business model or the good performance in critical times. 
The company plans to reduce the term by a year in relation to the Swiss bond of over CHF 35 million. Concurrently, the 
bond will be paid back successively in multiple partial payments until the final payment in April 2023 to reduce the 
company's debt ratio. paragon recently declared to the Swiss Stock Exchange that it will repurchase bonds for 
investment and redemption purposes with immediate effect and without time limit. No amount has been set for these 
partial repurchases. 
The company is now waiting for the results of the planned repurchase of Swiss obligations and will then consider 
whether a partial repurchase of the German bond makes sense. If the Management should decide in favor of this, the 
conditions will be disclosed in a timely manner. 
The complete, audited consolidated financial statements and the company's annual report are expected to be published on 
April 27, 2021. Further information about paragon GmbH & Co. KGaA can be found at www.paragon.ag. 
 
Profile: paragon GmbH & Co. KGaA 
paragon GmbH & Co. KGaA (ISIN DE0005558696), which is listed in the regulated market (Prime Standard) of the Frankfurt 
Stock Exchange, develops, produces and distributes forward-looking solutions in the field of automotive electronics, 
body kinematics and e-mobility. As a market-leading direct supplier to the automotive industry, the company's portfolio 
includes the Electronics operating segment's innovative air-quality management, state-of-the-art display systems and 
connectivity solutions, and high-end acoustic systems. In the Mechanics operating segment, paragon develops and 
produces active mobile aerodynamic systems. In addition, the Group holds a stake in Voltabox AG (ISIN DE000A2E4LE9), a 
subsidiary that is also listed on the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt a.M., which 
is active in the rapidly growing electromobility segment with cutting-edge lithium-ion battery systems developed 
inhouse. 
In addition to the company headquarters in Delbrück (North Rhine-Westphalia, Germany), paragon GmbH & Co. KGaA and its 
subsidiaries operate sites in Suhl (Thuringia, Germany), Landsberg am Lech, Neu-Ulm and Nuremberg (Bavaria, Germany), 
St. Georgen (Baden-Württemberg, Germany), Limbach (Saarland, Germany), Aachen (North Rhine-Westphalia, Germany) as well 
as in Kunshan (China), Bangalore (India), Oroslavje (Croatia) and Austin (Texas, USA). 
Additional information about paragon can be found at www.paragon.ag. 
Capital Market & Press Contact 
paragon GmbH & Co. KGaA 
Stefan Westemeyer 
Bösendamm 11 
33129 Delbrück, Germany 
Phone: [phone] 
Fax: [phone] - 97 62-63 
Email: [e-mail] 
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2021-03-30 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
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Language:     English 
Company:      paragon GmbH & Co. KGaA 
              Bösendamm 11 
              33129 Delbrück 
              Germany 
Phone:        [phone] - 0 
Fax:          [phone] - 60 
E-mail:       [e-mail] 
Internet:     www.paragon.ag 
ISIN:         DE0005558696, DE000A2GSB86, 
WKN:          555869, A2GSB8, 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:  1179461 
 
End of News   DGAP News Service 
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1179461 2021-03-30

(END) Dow Jones Newswires

March 30, 2021 01:01 ET (05:01 GMT)