381 Life Is On | Schneider Electric www.se.com Financial Statements 5. Chapter 5 – Consolidated financial statements at December 31, 2021 Note 21: Provisions for contingencies and charges (in millions of euros) Economic risks Customer risks Products risks Environmental risks Restructuring Other risks Provisions Dec. 31, 2019 292 76 499 293 151 423 1,734 of which long-term portion 155 50 139 256 11 329 940 Additions 35 33 322 8 324 128 850 Utilizations (43) (26) (172) (17) (208) (132) (598) Reversals of surplus provisions (10) – (11) (3) (2) (7) (33) Translation adjustments (19) (12) (24) (22) (7) (30) (114) Changes in the scope of consolidation and other 20 83 16 – (8) (20) 91 Dec. 31, 2020 275 154 630 259 250 362 1,930 of which long-term portion 161 103 137 226 15 288 930 Additions 52 12 206 8 130 126 534 Utilizations (48) (21) (150) (13) (194) (100) (526) Reversals of surplus provisions (6) – (39) – (26) (15) (86) Translation adjustments 13 9 31 23 5 21 102 Changes in the scope of consolidation and other (16) (7) (3) 73 (5) 28 70 Dec. 31, 2021 270 147 675 350 160 422 2,024 of which long-term portion 169 104 150 315 12 341 1,091 Provisions are recognized following the principles described in Note 1.21. Reconciliation with cash flow statement: (in millions of euros) Full year 2021 Full year 2020 Increase of provision 534 850 Utilization of provision (526) (598) Reversal of surplus provision (86) (33) Provision variance including tax provisions but excluding employee benefit obligation (78) 219 Employee benefit obligation net variance contribution to plan assets 24 47 INCREASE/(DECREASE) IN PROVISIONS IN CASH-FLOW STATEMENT (54) 266 Note 22: Total current and non-current financial liabilities The breakdown of net debt is as follows: millions of euros) Dec. 31, 2021 Dec. 31, 2020 Bonds 8,234 8,773 Other bank borrowings 51 32 Employee profit sharing – – Short-term portion of bonds (706) (600) Short-term portion of long-term debt (25) (9) NON-CURRENT FINANCIAL LIABILITIES 7,5 5 4 8 ,19 6 Commercial paper 950 1,302 Accrued interest 38 43 Other short-term borrowings 317 173 Drawdown of funds from lines of credit – – Bank overdrafts 159 133 Short-term portion of convertible and non-convertible bonds 706 600 Short-term portion of long-term debt 25 9 SHORT-TERM DEBT 2 ,195 2,260 TOTAL CURRENT AND NON-CURRENT FINANCIAL LIABILITIES 9,749 10,456 CASH AND CASH EQUIVALENTS (2,622) (6,895) NET DEBT 7,127 3,561