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Polestar’s CFO named Finance Profile of the Year

With two IPOs under his belt, Johan Malmqvist was hired with the task of taking Volvo Cars' spin-off company to the Nasdaq. Barely a year later, it was done. On Midsummer's Eve last year, the company began trading its shares on the stock exchange in New York. Meet Polestar's CFO Johan Malmqvist, the Finance Profile of the Year for 2022.

Polestar’s CFO Johan Malmqvist

Congratulations on the award! How does it feel?

“I feel honoured. Happy and grateful. Not just for me personally, but for the whole finance department at Polestar,” says Johan Malmqvist, CFO at Polestar. 

Why did you choose the Nasdaq?

“We wanted to gain access to the U.S. capital market, and the Nasdaq is more sector specialised and has a deep base of investors. At the same time, we are developing a new global brand and want to ensure the best possible exposure,” says Johan Malmqvist, CFO at Polestar.

The public listing was a natural step towards creating an independent company. It’s a quality mark, since it places higher demands on governance and internal control. Which is also needed when you grow quickly to establish a global presence. Polestar, which is headquartered in Gothenburg, currently has around 3,000 employees and sells its electric cars in 27 countries. 

How do you make a journey like this happen?   

“Being well prepared is essential. Ensuring that you have an organisation in place with the relevant skills and experiences to run a finance function in a public environment and above all in the U.S. market, where reporting requirements and regulations are more demanding and complicated than in Sweden.”

In close collaboration with the legal function, the finance function is responsible for ensuring that the prospectus – a registration document that must be approved by the regulatory authority the Securities Exchange Commission – is correct and complete. 

“This process takes a lot of time. The dialogue goes back and forth, with many rounds. During this time it is extremely important to not lose focus on the business. The processes needs to be as efficient as possible through solid management, coordination and above all by having talented colleagues.”

“Then at the same time we need to market the company. We explain to investors what our business model is, what our financial goals are and create interest in buying our shares.” 

The IPO was a success, according to Johan Malmqvist. 

“Especially considering the market conditions. First covid, then the war in Ukraine, followed by inflation and high interest rates. To be successful under such conditions is a sign of strength. The company attracted the capital it expected, but it needs more. Polestar was clear about this already during the summer, and we are working diligently with this. The prevailing macroeconomic and geopolitical environment is affecting the entire value chain.”

“We started at 10 dollars [stock price] and now we are at just under 6. We have been affected by the uncertainty and market shifts, like everyone else, even our competitors. That’s how it is. What’s positive is that we are still seeing strong demand for our cars.” 

An exciting time for Gothenburg

For Johan Malmqvist, this is the third trip to the stock exchange after 20 years as CFO in various types of industrial companies, including Perstorp. He has previously taken Duni to the Stockholm Stock Exchange and the American family company Dole to the New York Stock Exchange. Already as a child he moved a lot. Studying at San Diego State University was a natural fit and opened the door to an international career.

The position at Polestar has meant living in Gothenburg for the first time.

“We lived in Malmö when the Öresund Bridge was completed and experienced the growth period there, when the Västra hamnen area was transformed into something completely different. Now you can see a similar development taking place here [in Gothenburg]. Northvolt is coming here, and other companies that are involved in this electrification. It is an exciting time for Gothenburg, with everything that is happening at Lindholmen, for example.”

“What attracted me to Polestar is the exciting journey of creating a new brand, in an industry that is going through a transformation, with a goal of creating sustainable electric cars and contributing to a sustainable society. I am very proud to work in a company that challenges the whole industry.” 

As CFO it is his task to ensure that the company attains profitable growth that leads to a sustainable business model, at the same time as the whole car industry is transforming. 

“The finance function plays a key role. This is the case in general, but in particular considering the current market situation.”  

Will you follow Tesla’s price cuts? 

“Good question. Tesla in not really in our business segment, it’s more mass market. Our segment is premium luxury. We are not aiming to sell a million cars and we have a different offer. But as I mentioned before, this is an example of the tough environment we are in, an industry that is going through a massive transformation. It is precisely such questions that make it so enormously interesting, and challenging at the same time, to have this role.

Johan Malmqvist is the finance profile of the year, with the following motivation: 

The Finance Profile of the Year 2022 award is given to a person who – through extensive preparatory work in a tough market situation – has had a key role in the process of preparing their company for introduction on the Nasdaq stock exchange in New York. Through the stock market listing and his work as CFO, he creates financial muscles to deliver profitable growth with the aim of realizing the company's ambitious plans and industry-leading sustainability goals.

The Finance Profile of the Year is an annual award from Finanskompetenscentrum, Gothenburg.

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