Polestar Automotive Holding UK Limited

Good day and thank you for standing by. Welcome to the Polestar second quarter and first half 2026 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 withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker 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 second quarter and the first half of 2026. I'm joined by Michael Lohscheller, Polestar's CEO, and Jean-François Mady, 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 call. A discussion of why we use non-GAAP financial measures and the reconciliation of 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.

Thank you, Anna. Hello everyone and thank you for joining us today as we present our second quarter and first half 2026 financial and operational results. I am pleased with the commercial progress we have achieved in light of the market condition which remained challenging. We delivered a record first half with retail sales of 30,423 cars. This growth has been supported by the continued transition to our active selling model The expansion of our retail network and a stronger contribution from Polestar 4 Coupe, which is our best-selling car. This has happened during one of the most challenging and competitive times I've experienced in the automotive industry and delivering record sales in this environment confirms that customers want our cars. At the same time, we are realistic about the challenges we face. Competition in the EV market continues to intensify. Pricing pressure remains significant and geopolitical developments continue to impact the industry. We have also seen regulatory headwinds, particularly in the US, which affected our performance during the first half. This, combined with factors mentioned above, further impacted our financial results. As was announced in late June, the US Department of Commerce denied Polestar's application for an authorization under the current connected vehicle rule to sell vehicles in the US from model year 27 onwards. In light of all this, we have updated our full year volume outlook to low to mid single digit growth. This reflects the continued market pressure across our industry as well as portfolio transition. Polestar 4 SUV customer deliveries will start in the fourth quarter and ramp up into next year. Our focus remains on building the right product and channel mix and strengthening the underlying performance of the business. The most important thing is that the operational improvements we have been implementing are beginning to show results. Our reported operating loss improved significantly compared with the first half of last year, which included substantial impairment charges. At the same time, cost discipline measures contributed to lower general and administrative expenses. When I joined Polestar two years ago, we had to address a number of structural challenges. For the past two years, we have worked to build a leaner, more focused and more resilient company. We are not trying to be everything, everywhere, all at once. Instead, we are concentrating on the areas where we can create sustainable value, improve profitability, CapEx allocation, and position Polestar for long-term success. We are doing the right things, and we are beginning to see the benefits of those actions. A key part of that transformation has been our shift From an online first model to a retailer-led commercial sales model. Today, we work with 235 sales points and 178 retail partners across 28 markets, and our retail footprint has expanded by 39% year on year. But this transformation is about much more than opening new locations. It's about working more closely with our partners, improving the customer experience and giving retailers a business model they can invest in with confidence. We have also continued to strengthen the company's financial foundations. During the first half, we have enhanced our capital structure through new external equity funding, debt-to-equity conversion with Volvo Cars and Geely Sweden, and the extension of the remaining Volvo Cars shareholder loan. These actions have increased our financial flexibility as we execute our strategy and prepare for upcoming launches. Yesterday, we opened the order books for the new Polestar 4 SUV. As a sibling to our best-selling Polestar 4 Coupé, it brings everything customers already love about the car to a broader audience. With vehicle-to-load capability, Google Gemini integration, one of the lowest carbon footprint in our portfolio and the price starting at 57,900 euros. It is a very compelling addition to our product range. Over 900 cars are already on their way from the factory in Busan, South Korea, and customer deliveries will begin in the fourth quarter. We are also preparing for the imminent first customer deliveries of Polestar 5. Feedback from journalists who have driven the car has been exceptional. As our halo car Polestar 5 embodies everything the brand stands for. Design, performance, technology and sustainability. Simply put, it is a Polestar brand on wheels. So while market conditions remain challenging, our priorities are clear. We are growing our retail business. We are improving our operational performance. We are strengthening our financial position. We are launching the strongest product portfolio in our history. The transformation of Polestar continues and we remain focused on disciplined execution and building a stronger company for the long term. With that, I'll hand over to Jean-François and look forward to taking your questions. Thank you.