Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 358

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 358
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 1% increase/decrease in WACC would change the impairment loss for the year ended December 31, 2024:

  Impact on impairment loss                                              
  Volumes                        Increase by 1%      14,793       5,595  
                                 Decrease by 1%       4,678       2,370  
  Pricing                        Increase by 1%      68,505      25,601  
                                 Decrease by 1%      64,228      19,632  
  Manufacturing costs            Increase by 1%      37,165       8,960  
                                 Decrease by 1%      42,093      15,632  
  WACC                           Increase by 1%      29,072      11,743  
                                 Decrease by 1%      30,969      11,970  

Impairment for the year ended December 31, 2023

For the year ended December 31, 2023, the discounted cash flow for each CGU was based on their value in use and calculated based on estimations regarding future cash flows as seen in the 2024-2028 business plan. All CGUs used a WACC of 15.5 696,950 339,568

Impairment for the year ended December 31, 2022

No

F-24

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cash flows as seen in the 2023-2027 business plan, a terminal growth rate of 2 10 14

Equity method investments

Polestar applies the equity method of accounting when it has an ownership interest that conveys significant influence over the associate, typically through interest in the voting stock of the associate of between 20% and 50%.

Under the equity method of accounting, at the date of acquisition, the investment is recorded at cost and the Group’s proportionate share of the unconsolidated associate’s net income or loss is included in the Consolidated Statement of Comprehensive Loss, adjusted to eliminate intercompany gains and losses.

The carrying amount of the Group’s investment is adjusted to recognize its share of realized profit or loss. If Polestar's share of realized losses exceeds the carrying amount of its investment, the investment balance will be written down to not less than zero. In future periods, when Polestar’s share of associate earnings returns to positive, the earnings will be netted against all previously unrecognized losses, providing recognized earnings.

Pole