www.se.com Schneider Electric Universal Registration Document 2021 26 Integrated report Schneider Electric Universal Registration Document 2021 www.se.com Expected trends in 2022 The Group expects to grow both its revenues and profitability in 2022, in line with the framework for sustainable growth for the medium and long-term announced in its recent Capital Markets Day. In 2022, the Group expects: • A continuation of strong and dynamic market demand, including further recovery in late-cycle segments • All regions and all four end-markets expected to contribute to growth • Sales to benefit from higher level of backlog exiting 2021 • Ongoing uncertainty linked to health crisis • Ongoing global supply chain pressures continue to impact in coming months • Increased pressure on input costs, including raw materials, labor, freight and the sourcing of electronic components • Despite the overall inflationary environment, and current supply chain pressures, the Group aspires to be net price positive for the full year (including impacts of freight and electronics) 2022 Target The Group sets its 2022 financial target as follows: 2022 Adjusted EBITA growth of between +9% and +13% organic. The target would be achieved through a combination of organic revenue growth and margin improvement, currently expected to be: • Revenue growth of +7% to +9% organic • Adjusted EBITA margin up +30bps to +60bps organic This implies Adjusted EBITA margin of around 17.6% to 17.9% (including scope based on transactions completed in 2021 and FX based on current estimation). The Group expects progress on these levers to be weighted towards H2. 2022 outlook and target