415 Life Is On | Schneider Electric www.se.com Chapter 6 – Parent Company Financial Statements Financial Statements 6. 6.3 Notes to the financial statements (All amounts are in thousands of euros unless otherwise indicated) 6.3.1 Significant events of the financial year During the financial year, Schneider Electric SE carried out (i) a capital increase through the issue of company shares reserved for employees participating in the PEG and (ii) a capital increase through the issue of shares reserved for Group employees based outside France and for entities within the framework of employee shareholding or saving programs: i. 0.55 million shares issued with a par value of 4 euros each, representing a capital increase of EUR 2.2 million and a share premium of EUR 58.5 million (shares subscribed at 110.19 euros each); ii. 1.41 million shares issued with a par value of 4 euros each, representing a capital increase of EUR 5.7 million and a share premium of EUR 150.1 million (shares subscribed at 110.19 euros each). The company redeemed a bond issue maturing in September 2021 for EUR 600 million. In May 2021, the 2020 dividend was paid in the amount of EUR 1,447 million. The company also proceeded to buy back 1.8 million of its own shares for EUR 262 million. Finally, during 2021, share plans 30, 31 and 31bis expired, the company decided to serve 2.1 million shares for an amount of EUR 124 million re-invoiced to the group companies concerned. As of December 31, 2021, the company decided to fund some of its current share plans by using existing shares and to re-invoice the related expense to the various entities of the Group. As a consequence, the provision for expenses on shares distribution has been adjusted to EUR 348 million. 6.3.2 Accounting principles As in the prior financial year, the financial statements for the financial year ended December 31, 2021 have been prepared in accordance with French generally accepted accounting principles and with the ANC no. 2014-03 code updated by ANC no. 2016-07 code on Nov. 04, 2016. Non-current assets Non-current assets of all types are stated at historical cost. Intangible assets Intangible rights are amortized over a maximum of 5 years. Property, plant and equipment Amortizable Items of property, plant and equipment are depreciated on a straight- line basis over their estimated useful lives, ranging from 3 to 10 years. Lands are not depreciated. Shares in subsidiaries and affiliates Shares in subsidiaries and affiliates are stated at acquisition cost. Provisions for impairment may be funded where the carrying amount is higher than the estimated value in use at the end of the financial year. This estimate is primarily determined on the basis of the underlying net assets, earnings outlook and economic forecasts. For listed securities, the average stock price over the month before the closing is used. Provisions may be reversed if the estimated value becomes higher than the carrying amount. Unrealized gains resulting from such estimates are not recognized.