373 Life Is On | Schneider Electric www.se.com Financial Statements 5. Chapter 5 – Consolidated financial statements at December 31, 2021 Note 15: Inventories and work in progress Inventories and work in progress changed as follows: (in millions of euros) Dec. 31, 2021 Dec. 31, 2020 COST: Raw materials 1,832 1,240 Production work in progress 295 235 Semi-finished and finished products 1,323 1,085 Finished goods 696 516 Solution work in progress 199 167 INVENTORIES AND WORK IN PROGRESS AT COST 4,345 3,243 IMPAIRMENT: Raw materials (187) (191) Production work in progress (9) (6) Semi-finished and finished products (165) (151) Finished goods (8) (8) Solution work in progress (5) (4) IMPAIRMENT LOSS (374) (360) N E T: Raw materials 1,645 1,049 Production work in progress 286 229 Semi-finished and finished products 1,15 8 934 Finished goods 688 508 Solution work in progress 194 163 INVENTORIES AND WORK IN PROGRESS, NET 3,971 2,883 Note 16: Trade and other operating receivables (in millions of euros) Dec. 31, 2021 Dec. 31, 2020 Accounts receivable 5 ,141 4,482 Unbilled revenue 1,500 1,231 Notes receivable 510 308 Advances to suppliers 176 115 Accounts receivable at cost 7, 327 6 ,13 6 Impairment (498) (510) ACCOUNTS RECEIVABLE, NET 6,829 5,626 On time 6,091 4,906 Less than one month past due 324 389 One to two months past due 163 150 Two to three months past due 79 85 Three to four months past due 100 46 More than four months past due 72 50 Accounts receivable result from sales to end-customers, who are widely spread both geographically and economically. Consequently, the Group believes that there is no significant concentration of credit risk. In addition, the Group takes out substantial credit insurance and uses other types of guarantees to limit the risk of losses on trade accounts receivable. Changes in provisions for impairment of short and long-term trade accounts receivable were as follows: (in millions of euros) Full year 2021 Full year 2020 Provisions for impairment on January 1 (510) (459) Additions (82) (141) Utilizations 30 91 Reversal of surplus provisions 67 51 Translation adjustments (25) 37 Changes in scope of consolidation and other 22 (89) PROVISIONS FOR IMPAIRMENT ON DECEMBER 31 (498) (510)