365 Life Is On | Schneider Electric www.se.com Financial Statements 5. Chapter 5 – Consolidated financial statements at December 31, 2021 (in millions of euros) Western Europe of which France Asia- Pacific of which China North America of which USA Rest of the World Total Revenue by country market 7, 3 8 2 1,749 8,995 4,701 8,267 7,14 8 4,261 28,905 Non-current assets as of Dec. 31, 2021 12,779 2,604 5,866 1,154 15,094 12,721 1,296 35,035 (in millions of euros) Western Europe of which France Asia- Pacific of which China North America of which USA Rest of the World Total Revenue by country market 6,636 1, 512 7, 5 0 9 4,009 7, 241 6,303 3,773 25 ,15 9 Non-current assets as of Dec. 31, 2020 12,676 1,889 5,517 960 9 ,10 3 6,651 1,312 28,608 The increase in non-current assets in both North America and the USA in 2021 is mainly attributable to the acquisition of OSIsoft. Moreover, the Group follows the share of new economies in revenue: (in millions of euros) Full Year 2021 Full Year 2020 Revenue – Mature countries 16,590 57% 14,763 59% Revenue – New economies 12,315 43% 10,396 41% TOTAL 28,905 100% 25 ,15 9 100% Mature countries gather mainly Western Europe and North American countries. Note 4: Research and development Research and development costs are as follows: (in millions of euros) Full Year 2021 Full Year 2020 Research and development costs in costs of sales (377) (378) Research and development costs in R&D costs* (855) (718) Capitalized development costs (307) (311) TOTAL RESEARCH AND DEVELOPMENT COSTS** (1,539) (1,407) * Including EUR 44 million of research and development tax credit in full year 2021 and EUR 50 million in full year 2020 ** Excluding amortization of R&D costs capitalized Amortization expenses of capitalized development booked in the cost of sales, amounted to EUR 239 million in 2021 and EUR 245 million in 2020. Note 5: Impairment losses, depreciation and amortization expenses (in millions of euros) Full Year 2021 Full Year 2020 Depreciation and amortization included in cost of sales (539) (534) Depreciation and amortization included in selling, general and administrative expenses (486) (469) Amortization expenses of purchase accounting intangible assets (389) (207) Impairment losses of purchase accounting intangible assets (21) – IMPAIRMENT LOSSES, DEPRECIATION AND AMORTIZATION EXPENSES (1,435) (1,210) The impairment booked in 2021 is mainly related to intangible assets (developed technology and customer relationships) associated with the announcement from AVEVA to retire its steel fabrication software in July 2021. Note 6: Other operating income and expenses Other operating income and expenses are as follows: (in millions of euros) Full Year 2021 Full Year 2020 Gains/(losses) on assets disposals (11) (4) Gains/(losses) on business disposals & assets impairment 175 (13) Costs of acquisitions and integrations (166) (169) Others (19) (24) OTHER OPERATING INCOME AND EXPENSES (21) (210) In 2021, the costs of acquisitions and integrations are mainly related to the recent and ongoing acquisitions of the year. The gains on disposals mainly relate to the 2021 divestments described in Note 2.