379 Life Is On | Schneider Electric www.se.com Financial Statements 5. Chapter 5 – Consolidated financial statements at December 31, 2021 Assumptions Actuarial valuations are generally performed each year. The assumptions used vary according to the economic conditions prevailing in the country concerned, as follows: Group weighted average rate Of which United Kingdom Of which United States Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2020 Dec. 31, 2021 Dec. 31, 2020 Discount rate 2.12 % 1.57% 2.05% 1.40% 2.77% 2.42% Rate of compensation increases 2.60% 2.52% 3.64% 3.46% n.a. n.a The discount rate is determined based on the interest rate for investment-grade (AA) corporate bonds or, if a liquid market does not exist, government bonds with a maturity that matches the duration of the benefit obligation. In the United States, the average discount rate is determined based on a yield curve for AA and AAA investment-grade corporate bonds. In the Euro zone, the discount rate currently stands at 0.80%. 20.1 – Changes in provisions for pensions and other post-employment benefit obligations Annual changes in obligations, the market value of plan assets and the corresponding assets and provisions recognized in the financial statements can be analyzed as follows: (in millions of euros) Defined benefit obligations Plan assets Asset ceiling Net Liability Dec 31, 2019 (10,065) 8,633 (123) (1,555) Service cost (54) – – (54) Past service cost – – – – Curtailments and settlements 1 (1) – – Interest cost (204) – (2) (206) Interest income – 159 – 159 Net impact in P&L, (expense)/profit (257) 158 (2) (101) of which UK (119) 118 (2) (3) of which US (69) 38 – (31) Benefits paid 554 (500) – 54 Plan participants’ contributions (6) 6 – – Employer contributions – 106 – 106 Changes in the scope of consolidation (8) – – (8) Actuarial gains/(losses) recognized in equity (796) 621 52 (123) Translation adjustment 562 (503) 6 65 Other changes – – – – Dec. 31, 2020 (10,016) 8,521 (67) (1,562) of which UK (6,370) 6,459 (67) 22 of which US (2,140) 1, 535 – (605) Service cost (66) – – (66) Past service cost 2 – – 2 Curtailments and settlements 25 (1) – 24 Interest cost (159) – (1) (160) Interest income – 121 – 121 Net impact in P&L, (expense)/profit (198) 120 (1) (79) of which UK (94) 86 (1) (9) of which US (52) 30 – (22) Benefits paid 532 (478) – 54 Plan participants’ contributions (6) 6 – – Employer contributions – 136 – 136 Changes in the scope of consolidation 9 – – 9 Actuarial gains/(losses) recognized in equity 701 (117 ) (133) 4 51 Translation adjustment (631) 606 (9) (34) Other changes (77) 77 – – Dec. 31, 2021 (9,686) 8,871 (210) (1,025) of which UK (6,017) 6,524 (184) 323 of which US (2,170) 1,6 92 – (478) The Group defined benefit obligations of EUR 9.686 million (2020: EUR 10.016 million) are broken down as EUR 9.470 million (2020: EUR 9.802 million) for post-employment benefits and EUR 216 million (2020: EUR 214 million) for other post-employment and long-term benefits.