paragon AG grows significantly faster than the market in the first six months thanks to electromobility - Seite 2

"We are using the current mood of change within the automotive industry in
a targeted way in order to make our innovations available for upcoming
vehicle models," says Dr. Stefan Schwehr, Chief Technology Officer, adding
that "the increasing dynamics in the automobile manufacturers' innovation
departments is benefiting us in this respect."

The Electromobility division was again dominated by its own growth
dynamics. Production at the Voltabox subsidiaries in Delbrück, Germany, and
Austin, Texas (USA), was dominated by large-scale battery systems for use
in trolley buses as well as by modules for forklift trucks. At the end of
June, the company announced the exclusive strategic partnership with Joy
Global, a global leader in the field of mining equipment - the biggest
individual order in paragon's corporate history. With special battery
systems for use in automated guided vehicles of automated production,
Voltabox is also already preparing its entry into the next major field of
application: "Industry 4.0".

Profitability at a high level

Consolidated EBITDA (earnings before interest, taxes, depreciation and
amortization) showed a slight upward trend to EUR 6.8 million in the first
six months, despite an increase in personnel expenses resulting from the
expansion of the business (prior year: EUR 6.7 million). Due to increased
depreciation and amortization and to other operating expenses, consolidated
EBIT (earnings before interest and taxes) declined to EUR 3.5 million
(prior year: EUR 3.8 million). This corresponds to an EBIT margin of 7.2%
(prior year: 8.6%).

Taking into account reduced net finance income of EUR -1.6 million (prior
year: EUR -1.0 million) and a higher income tax burden of EUR 1.3 million
(prior year: EUR 0.9 million), the result for the period fell to EUR 0.7
million (prior year: EUR 1.9 million). This corresponds to earnings per
share of EUR 0.16 (prior year: EUR 0.46).

Management Board confirms forecast

Based on the results for the first half-year, the Managing Board confirms
its earlier revenue and earnings forecast for the current fiscal year. This
states that consolidated revenue is expected to grow by approximately 8% in
the current fiscal year and thus to exceed the EUR 100 million mark. This
is expected to be accompanied by above-average earnings growth with an EBIT
margin of approximately 9%. The main growth drivers in the current fiscal
year are likely to be the Electromobility division (Voltabox) as well as
the Sensors and Acoustics divisions in the medium term.