Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 168

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 5
Chunk 168
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, or an agreed minimum sales volume. In the event of a shortfall in purchases, a shortfall in sales, or Polestar´s decision to terminate such contracts, these suppliers are entitled to compensation from Polestar. These amounts reflect Polestar's minimum payment obligation under these contracts. Refer to Note 27 - Related party transactions in the accompanying Consolidated Financial Statements for further details on Polestar's minimum sales volume commitment.

3 - Refer to Note 25 - Liabilities to credit institutions in the accompanying Consolidated Financial Statements for further details on Polestar's credit facilities including sale leasebacks and floor plans.

4 - Refer to Note 27 - Related party transactions in the accompanying Consolidated Financial Statements for further details.

5- Refer to Note 12 - Leases in the accompanying Consolidated Financial Statements for further details.

Non-GAAP Financial Measures

Polestar uses both generally accepted accounting principles (“ GAAP,” i. e., IFRS) and non-GAAP (i. e., non-IFRS) financial measures to evaluate operating performance and for other strategic and financial decision-making purposes. Polestar believes non-GAAP financial measures are helpful to investors as they provide useful perspective on underlying business trends and assist in period-on-period comparisons. These measures also improve the ability of management and investors to assess and compare the financial performance and position of Polestar with those of other companies.

These non-GAAP measures are presented for supplemental information purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. The measures are not presented under a comprehensive set of accounting rules and, therefore, should only be read in conjunction with financial information reported under GAAP when assessing Polestar's operating performance.

The measures may not be the same as similarly titled measures used by other companies due to possible differences in calculation methods and items or events being adjusted. A reconciliation between non-GAAP financial measures and the most comparable GAAP performance measures is provided below.

Non-GAAP financial measures include Adjusted EBITDA and Free Cash Flow.

Adjusted EBITDA

Adjusted EBITDA is calculated as net loss, adjusted to exclude:

Table of Contents

• Listing expense;

• Fair value change - Earn-out rights;

• Fair value change - Class C Shares;

• Finance expense;

• Finance income;

• Income tax benefit (expense);

• Depreciation and amortization1;

• Impairment of property, plant and equipment, vehicles under operating leases, and intangibles assets;

• Restructuring costs2;

•Gains / losses on