383 Life Is On | Schneider Electric www.se.com Financial Statements 5. Chapter 5 – Consolidated financial statements at December 31, 2021 In addition, the Group has issued a bond that is convertible into or exchangeable for a new or existing shares (OCEANEs) for EUR 650 million at a rate of 0.00%, maturing in June 2026. The OCEANE has a debt component, assessed on inception date on the basis of the market interest rate applied to an equivalent non-convertible bond, is recognized in non-current financial debts and an optional component recognized in equity. At end of December 2021, the debt component recorded amounts to EUR 651 million and the optional component to EUR 42 million. The initial conversion and/or exchange ratio of the Bonds is one share per Bond with a nominal value set at EUR 176.44. According to Sustainability-Linked Financing Framework, if the average sustainability performance score (calculated as the arithmetic average of the scores of the three key performance indicators) does not reach a certain level by December 31, 2025, the Group will pay an amount equal to 0.50% of the face value. The three key performance indicators from the 11 new Schneider Sustainability Impact (SSI) 2021-2025 indicators are the following: • Climate: Deliver 800 megatons of saved and avoided CO 2 emissions to our customers; • Equality: Increase gender diversity, from hiring to front-line managers and leadership teams (50/40/30); • Generation: Train 1 million underprivileged people in energy management. The detailed rating methodology and approach are presented in the Group’s Sustainability-Linked Financing Framework. For all those transactions, issue premium and issue costs are amortized per the effective interest rate method. 22.4 – Reconciliation with cash flow statement (in millions of euros) Dec. 31, 2020 Cash variations Non-cash variations Dec. 31, 2021 Scope impacts Forex and others Bonds 8,773 (600) – 61 8,234 Bank overdrafts and other borrowings 1,683 (8) 3 (163) 1,515 TOTAL CURRENT AND NON-CURRENT FINANCIAL LIABILITIES 10,456 (608) 3 (102) 9,749 22.5 – Other information As of December 31, 2021, the Group had confirmed credit lines of EUR 2,550 million all maturing after December 2022, all unused. Loan agreements and committed credit lines do not include any financial covenants or credit rating triggers in case of downgrading in the company’s long-term debt. Note 23: Classification of financial instruments The Group uses financial instruments to manage its exposure to fluctuations in interest rates, exchange rates and metal prices. Financial assets and liabilities can be classified at the fair value following the hierarchy levels below: 1. Level 1: market value (non-adjusted) on active markets, for similar assets and liabilities, which the company can obtain on a given valuation date; 2. Level 2: data other than the market rate available for level 1, which are directly or indirectly observable on the market; 3. Level 3: data on the asset or liability that are not observable on the market.