paragon in dialogue with investors

paragon in dialogue with investors

- paragon conference call with bondholders on 31 January 2022 at 5 pm

- CEO Frers will also participate in SdK information event on 25 January

Delbrück, 24 January 2022 - paragon GmbH & Co. KGaA [ISIN DE0005558696] has substantially raised its strategic growth targets for the coming years following its encouraging performance in 2021 and in light of the current good order situation, and has published details of its sustainable debt reduction. (https://ir.paragon.ag/websites/paragon/English/4250/news-detail.html?newsID=2187674)

By streamlining its portfolio, paragon has once again turned its focus entirely to the automotive sector. In the last five years, paragon has achieved above-average annual growth rates of around 11%, defying the industry trend, with its product portfolio focused on the future-facing topics of interior air quality, CO2 savings and communication/connectivity.

At the same time, none of paragon's products are reliant on the combustion engine. On the contrary, the irreversible trend towards e-mobility will further improve paragon's historically strong position among premium car manufacturers.

In-depth dialogue with shareholders and bondholders

Last week, paragon also defined the steps it will take to further improve its financing structure. After a thorough examination of several alternatives, the management has made a conscious decision to continue to offer bondholders an attractive investment opportunity and thus to participate in paragon's future growth. Having explored in particular the alternative of extensive divestments, the management is convinced that the planned extension of the bond term is the most attractive option.

Specifically, paragon plans to extend the 4.50% bond 2017/2022 until 5 July 2027, while a partial repayment using funds from potential portfolio adjustments is being examined in parallel. The encouraging business development and the planned extension of the bond term have been very positively received by the market so far. Both the share and the bond have reacted to the news with significant double-digit price gains. Based on the response from bondholders, the management remains confident that it will obtain the necessary majorities to extend the euro bond.

paragon CEO Klaus Frers will present the management's plans to bondholders in detail during a paragon conference call on 31 January from 5 pm. The dial-in details will be available on the paragon website in due course.

Transparent dialogue with shareholders and bondholders is paramount. In this context, paragon also welcomes the recent commitment of the SdK (German Association for the Protection of Investors) to inform as many bondholders as possible and to motivate them to participate in the vote that is being held outside of a general meeting. For this reason, Klaus Frers will also participate in the SdK information event on 25 January and report first-hand on the company's proposal.

 

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 the rapidly growing automotive market for battery systems, paragon now acts independently with the Business Unit Power after the sale of the Voltabox share.

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, Nuremberg (Bavaria, Germany), St. Georgen (Baden-Württemberg, Germany), Limbach (Saarland, Germany), Aachen (North Rhine-Westphalia, Germany) as well as in Kunshan (China), Bangalore (India) and Oroslavje (Croatia).

Additional information about paragon can be found at www.paragon.ag.

Capital Market & Press Contact

paragon GmbH & Co. KGaA

Mirko Wollrab
M: +49 172 830 3600
mailto: mirko.wollrab@corecoms.de
Corecoms Consulting GmbH & Co. KG
Goethestraße 29
60313 Frankfurt am Main