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paragon AG: paragon forecasts further revenue and EBIT growth for 2016

DGAP-News: paragon AG / Key word(s): Forecast
paragon AG: paragon forecasts further revenue and EBIT growth for 2016

03.12.2015 / 08:32
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paragon forecasts further revenue and EBIT growth for 2016

- Consolidated Group revenue to grow by around 8% and cross the EUR 100
million mark

- EBIT margin of approx. 9% expected

- Electromobility as key growth driver

- Internationalization: battery systems in the US and air quality in
China

- Highpoint of investment phase now passed

- Further jump in revenue signaled for 2017

Delbrück, December 3, 2015 - The Managing Board of the publicly listed
automotive supplier paragon AG has specified its forecast for the coming
year. Consolidated Group revenue is set to grow by a further total of
around 8% compared with 2015 and cross the EUR 100 million mark. Earnings
are also expected to rise, with an EBIT margin of around 9% of revenue.
Alongside the ongoing strong business performance with sensors, microphones
and cockpit systems, the key growth drivers will be the Body Kinematics
business division and above all Electromobility. This business division -
with its Voltabox subsidiaries in Germany and the US - should contribute
revenue of more than EUR 15 million and thus account for an increasingly
significant share of total Group revenue.

Comments Klaus Dieter Frers, CEO of paragon AG: "We will grow significantly
faster than the automobile market in the coming year as well. This growth
will be driven by our highly competitive products and by the extensive
investments made in recent years - especially in expanding and developing
our production plants in Germany, the US, and most recently in China in
2015. We will reap the benefits of these investments on all levels in the
years ahead. The lively investment activity in the years behind us is now
no longer needed in this form."

Decoupling from developments in the automotive industry
The 2016 forecast includes initial revenues from the major order placed in
the course of the year for li-ion starter batteries serial production at
paragon's Voltabox Deutschland subsidiary is due to start in mid-2016.
Voltabox then expects substantial revenue growth in this product segment
from 2017. Strategically, this will also enable it to decouple from
developments in the overall automotive industry. Furthermore, production
ramp-ups at the plants newly opened in the US and China will also
contribute to this dynamic performance. Alongside battery systems in Texas,