Polestar Automotive Holding UK Limited

Good day and thank you for standing by. Welcome to the Polestar fourth quarter and full year 2025 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speakers today, Anna Gavrilova. Please go ahead.

Thank you, operator. Hello, everyone. I'm Anna Gavrilova, Head of Investor Relations at Polestar. Thank you for joining this call covering Polestar's results for the fourth quarter and full year 2025. I'm joined by Michael Lochsheller, Polestar CEO, and Jean-François Maddy, Polestar CFO, who will comment on the performance, and then we will open the floor to analysts' questions. Before we start, I would like to remind participants that many of our comments today will be considered forward-looking statements under the US federal securities laws and are subject to numerous risks and uncertainties that may cause Polestar's actual results to differ materially from what has been communicated. These forward-looking statements include, but are not limited to, statements regarding the future financial performance of the company, production and delivery volumes, financial and operating results, near-term outlook and medium-term targets, fundraising and funding requirements, macroeconomic and industry trends, company initiatives and other future events. Forward-looking statements made today are effective only as of today, and Polestar undertakes no obligation to update any of its forward-looking statements. For a discussion of some of the factors that could cause our actual results to differ, please review the risk factors contained in our SSE filings. In addition, management may make references to non-GAAP financial measures during the calls. A discussion of why we use non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure can be found in the appendix of the press release and in the Form 6K published today. Now, I will hand over to Michael.

Hello, everyone, and thank you for joining us today as we present our full year 2025 results and provide an update on recent developments across the business. As you are all aware, the world around us continues to throw up challenges. But we are making good progress, and we are focusing on delivering against our strategy. I want to update you on the most recent developments within technology, our financing situation, and future model lineup expansion. But before that, a few words on the year that just passed. 2025 was a record year for Polestar in terms of retail sales. We delivered over 60,100 cars during the year in line with our guidance of 30 to 35% growth and a new record for our young brand, an achievement to be proud of given the competition and market conditions. 2025 was also a year in which we took significant steps to adapt our commercial strategy and footprint, an important foundation for our future growth and journey towards profitability. We accelerated the expansion of our network of retailers by 50% from 140 to 210 retail sales points, and have worked hard to improve our operational efficiency whilst also preparing for the company's largest ever model offensive, which we presented in February. During the fourth quarter, we made several announcements that reinforce our position as a technology leader in the EV segment. The upgraded model year 26 Polestar 3, which is being tested by the world's leading automotive media in the UK this week, has received several upgrades, including an 800-volt architecture. This means our flagship SUV offers customers charging speeds of up to 350 kilowatt, up to 500 kilowatt of power, and 6% better efficiency. It also has an upgraded NVIDIA processor taking its computing power from 30 to 254 trillion operations per second. The same upgrade is also being offered to all existing Polestar 3 customers. We are the first OEM to integrate Google's live lane guidance in our cars. It's already being rolled out to Polestar 4 customers across the US and Sweden with more to come. Further evidence of our strong relationship with Google came in November when we demoed Google's AI-based Gemini Assistant in Polestar 5. This service brings a whole new level of interaction and experience to our cars, and it will be rolled out via over-the-air updates to existing Polestar customers. We have made solid progress on securing additional financing in the last months. Starting in December 2025, through a series of the three equity financing rounds, we have raised $1 billion of new external equity with the support of Geely Sweden Holdings. These placements strengthen our balance sheet and widen our shareholder base. Concurrently, we have announced agreements with Volvo Cars and Geely Sweden Holdings for the conversion of approximately $640 million of shareholder loans to equity. These conversions, once completed, will reinforce our liquidity profile and maintain Volvo Cars' ownership in Polestar at approximately 19.9%. Both the equity finding rounds and the debt to equity conversions are a clear sign of the continued support that we enjoy from our major shareholders. In February, we presented the details of our largest ever model lineup expansion with four new cars planned in the next three years. Polestar 5, our four-door GT, which was presented during the end of last year, is expected to start deliveries in the summer. This car sets a whole new standard in EV performance segment, combining design, performance and luxury in a way that has never been done before. Later this year, we will bring a new variant of Polestar 4 to the market. Our global bestseller, which represented 65% of our deliveries in the first quarter of this year, will bring even more versatility to an already incredible car. This will help us to address a wider segment and offer more customers an alternative based on their lifestyle and needs. First deliveries are expected to start in the fourth quarter with production for all markets taking place in Busan, South Korea. Our next model will be the next generation Polestar 2, The car that built Polestar's brand. With over 190,000 Polestar 2 on the road, this car already has a huge following and customer base, which we have an opportunity to capitalize on. Completely redesigned with the latest in drivetrain, battery and UX technology, Polestar 2 will play an important role in our future success. Our compact premium SUV Polestar 7 provides an attractive entry point to the brand, offering a level of performance and design that this segment lacks today. The pace at which we are developing and bringing those models to market is a testament to the value of our asset light model. Our ability to work in close collaboration with partners and a sign of our underlying ambitions for more profitable growth, targeting wider, more profitable segments. Before handing over to Jean-Francois for the financial details, I'd like to just spend a moment reflecting on the first quarter of this year, 2026. Our sales team has worked incredibly hard to carry over our record performance in 25 into the start of this year. Our retail sales in the first quarter toted some 13,100 cars, a record number for a first quarter, translating into a year-on-year growth of 7%. Europe remains our largest region, and we saw particularly strong sales increase in some of our most important markets, including the UK, which grew by 20%, Sweden, which grew by 17%, and Germany, which grew by 35%. Outside of Europe, we performed well across several markets, most notably in Australia and South Korea, two established markets that delivered strong growth. In the US, changes to government policies have had a negative impact on EV demand in general, but the launch of Polestar 4 across North America is off to a good start with strong media reviews and good customer feedback. Growing at near double digits in the current market, given our relatively young age compared to the competition, shows what's possible when you have an engaged and growing network of retailers, an established service network, and great cars. interest from existing and potential regional partners remains high and we expect to grow our network to reach approximately 250 sales points by the end of this year a growth of 20 compared to the end of 2025 market conditions are becoming more challenging amid ongoing geopolitical developments but as i've said before we are fully focused on proactively handling the issues and challenges that are within our control and building a stronger Polestar. I'll hand now over to Jean-Francois and look forward to taking your questions in a few minutes. Thank you.