www.se.com 386 Schneider Electric Universal Registration Document 2021 Chapter 5 – Consolidated financial statements at December 31, 2021 (in millions of euros) Dec. 31, 2020 Accounting qualification Maturity Nominal sales Nominal purchases Fair Value Carrying amount in assets Carrying amount in liabilities Carrying amounts in OCI Forwards contracts CFH < 1 year 242 (147) 1 10 (9) 1 Forwards contracts CFH < 2 years 19 (24) – 1 (1) – Forwards contracts CFH > 2 years 7 (1) – – – – Forwards contracts FVH < 1 year 997 (1,098) 25 30 (5) 1 Forwards contracts NIH < 1 year 1,10 2 – 21 21 – 22 Forwards contracts Trading < 1 year 536 (2,425) 7 11 (4) – Cross currency swaps CFH < 2 years – (159) 11 11 – – TOTAL FX DERIVATIVES 2,903 (3,854) 65 84 (19) 24 Forwards contracts CFH < 1 year – (249) 23 23 – 23 Commodities derivatives – (249) 23 23 – 23 Options CFH < 1 year – (1) 1 1 – 1 Shares derivatives – (1) 1 1 – 1 TOTAL 2,903 (4 ,10 4) 89 108 (19) 48 23.3 – Foreign currency hedges Since a significant proportion of affiliates’ transactions are denominated in currencies other than the affiliate’s functional currency, the Group is exposed to currency risks. If the Group is not able to hedge these risks, fluctuations in exchange rates between the functional currency and other currencies can have a significant impact on its results and distort year-on-year performance comparisons. As a result, the Group uses derivative instruments to hedge its exposure to exchange rates mainly through FX forwards and natural hedges. Furthermore, some long-term loans and borrowings granted to the affiliates are considered as net investment in foreign operations according to IAS 21. Schneider Electric’s currency hedging policy is to protect its subsidiaries against risks on transactions denominated in a currency other than their functional currency. Hedging approaches are detailed in Note 1.23. The breakdown of the nominal of foreign change derivatives related to operating and financing activities is as follows: (in millions of euros) Dec. 31, 2021 Sales Purchases Net US Dollar 2,022 (685) 2,926 Chinese Yuan 4 (529) 656 Euro 264 (206) 859 Danish Crown 3 (120) 156 Singapore Dollar 383 (383) 599 Swedish Crown 16 (206) 152 Japanese Yen 14 (114) 53 Swiss Franc 4 (136) 253 UAE Dirham 1 (67) 77 Canadian Dollar 66 (15) 107 Australian Dollar 17 (65) 87 Saudi Riyal 11 (17) 46 Russian Ruble 82 (4) 68 Norwegian Krone – (14) 19 British Pound 15 (455) 202 South African Rand 38 (6) 48 Hong Kong Dollar 4 (34) 54 Others 216 (256) 470 TOTAL 3 ,16 0 (3,312) (152) 5.5 Notes to the consolidated financial statements