47 Life Is On | Schneider Electric www.se.com Chapter 1 – Group strategy and sustainability Strategic Report 1. 1.2.2 The multi-hub company The second element of our operating model, our multi-hub approach, has been key in Schneider Electric’s strategy over the last years and has particularly demonstrated its benefits since 2020. It has improved resiliency, agility, and proximity with our customers and our network of suppliers. As today’s world is increasingly divided by politics, trade and data regulations, and the ever-evolving health situation, this characteristic of Schneider Electric’s model has shown its strategic importance. China Europe North America India In 2021, Schneider Electric’s multi-hub strategy was reinforced and strengthened with the creation of the Indian hub, built when merging with Larsen & Toubro’s Electrical & Automation division. India is one of the most promising regions in the world for electrification, digitization, urbanization and manufacturing, and is now one of Schneider Electric’s major manufacturing and talent centers with 30,000 employees and 30 factories. Four hubs now serve the Group’s different markets (Europe, North America, China & India). Each hub has its own capabilities, while operating and contributing together toward the same Group objectives. Group objectives Products and offers are adapted locally to the specificity and standards of local markets, leveraging global R&D platforms and architectures. This is key for compliance with local standards (e.g., NEMA North America, IEC Europe, and CCC Asia Pacific), regulations (e.g., data and cybersecurity), operating conditions, and design specificities. Schneider Electric’s supply chain is organized by region, serving local customers with the support of local suppliers. As such, in 2020, 92% of Schneider’s supplied goods come from the same region as its manufacturing sites, and 80% of Schneider’s sales are produced in the same region as its customers. Schneider Electric’s suppliers are becoming increasingly local as close relationships are built with manufacturers in the region, for better flexibility and resiliency. R&D Suppliers Supply Chain Products Sales