www.se.com 366 Schneider Electric Universal Registration Document 2021 Chapter 5 – Consolidated financial statements at December 31, 2021 Note 7: Other financial income and expenses (in millions of euros) Full Year 2021 Full Year 2020 Exchange gains and losses, net (8) (36) Financial component of defined benefit plan costs (39) (47) Dividends received 3 5 Fair value adjustment of financial assets 8 (3) Financial interests – IFRS16 (38) (37) Other financial expenses, net (7) (48) OTHER FINANCIAL INCOME AND EXPENSES (81) (166) Note 8: Income tax expenses Wherever the regulatory environment allows it, the Group entities file consolidated tax returns. Schneider Electric SE files a consolidated tax return with its French subsidiaries held directly or indirectly through Schneider Electric Industries SAS. 8.1 – Analysis of income tax expense (in millions of euros) Full Year 2021 Full Year 2020 Current taxes (861) (785) Deferred taxes (105) 147 INCOME TAX EXPENSE (966) (638) 8.2 – Tax reconciliation (in millions of euros) Full Year 2021 Full Year 2020 Profit attributable to owners of the parent 3,204 2 ,126 Income tax expense (966) (638) Non-controlling interests (69) (112) Share of profit of associates 84 66 Profit before tax 4 ,15 5 2,810 Geographical weighted average Group tax rate 2 3 .1% 23.2% Theoretical income tax expense (959) (652) Reconciling items: Tax credits and other tax reductions 89 31 Impact of tax losses (55) 8 Other permanent differences (41) (25) INCOME TAX EXPENSE (966) (638) EFFECTIVE TAX RATE 23.2% 22.7% The Company’s consolidated income from continuing operations being predominantly generated outside of France, theoretical tax expense from continuing operations is reconciled above from the Company’s weighted-average global tax rate (rather than from the French domestic statutory tax rate). Note 9: Goodwill 9.1 – Main items of goodwill Group goodwill is broken down by CGUs as follows: (in millions of euros) Dec. 31, 2021 Dec. 31, 2020 Energy Management: 13,944 12,831 Low Voltage 8,496 7, 9 81 Medium Voltage 2,245 1,78 0 Secure Power 3,203 3,070 Industrial Automation 10,779 7,125 TOTAL GOODWILL 24,723 19,956 The Group performed the annual impairment test of all the Cash Generating Units (CGUs) using the same methodology as the one used on previous periods, and described in Note 1.11. Impairment tests performed in 2021 did not trigger any impairment losses on the CGUs’ assets. 5.5 Notes to the consolidated financial statements