9 Life Is On | Schneider Electric www.se.com Integrated report Strategic Report 28.9 25.2 27.2 25.7 24.7 2017 2018 2019 2020 2021 2,799 3,673 3,476 2,102 2,253 2017 2018 2019 2020 2021 17.3 15.6 15.6 15.1 14.8 2017 2018 2019 2020 2021 6.13 4.72 5.32 4.64 3.85 2017 2018 2019 2020 2021 3,204 2,126 2,413 2,334 2,150 2017 2018 2019 2020 2021 2.90 2.60 2.55 2.35 2.20 2017 2018 2019 2020 2021 2021 Financial Performance Highlights 2021 was a record year setting the foundation for ongoing sustainable growth. The Group generated all-time high revenues, adjusted EBITA margin and Net Income. Free Cash Flow was impacted by working capital requirements, while operating cash flows remained strong. Demand for the Group’s products, systems, software and services remained at high levels throughout 2021. As with all companies, the Group faced pressure from tightness in global supply chains, but responded with agility, leveraging its unique, digitized model for the benefit of customers. Revenue In billions of euros €28.9B Free Cash Flow In millions of euros €2,799M Adjusted EBITA margin In % of Group revenues 17. 3 % Adjusted Earnings Per Share In euros € 6 .13 Net Income (Group share) In millions of euros €3,204M Dividend Per Share In euros €2.90 Revenues were up +12.7% organic (+14.9% reported) with strong growth from both businesses and across all four regions. There was strong demand across the Group’s four end-markets, as revenues rebounded to above 2019 levels on an organic basis. FX impacts were negative -1.3% due to the strengthening of the EUR against the USD. There was positive scope impact of +3.5% from recent acquisitions. The Group generated EUR 2.8 billion of Free Cash Flow, reflective of the strong operating cash result of EUR 4.5 billion. Working capital evolution was negative EUR 853 million, reflective of the strong external demand environment. Net capital expenditure of EUR 817 million remained stable as a percentage of sales at around 3%. Adjusted EBITA reached EUR 5.0 billion, a margin of 17.3%, expanding organically by +140 basis points. The margin expansion was driven through a combination of pricing actions to compensate for inflationary costs, industrial productivity, and execution on the Group’s operational efficiency plan. Both businesses contributed to the margin expansion. Adjusted Earnings Per Share was EUR 6.13, up 30% on last year, mostly driven by the strong operating performance. The weighted average number of shares in issue remained broadly stable compared to last year. Net Income (Group share) reached EUR 3.2 billion, up +51% on last year. Restructuring costs were -EUR 225 million, down EUR 196 million on last year. Other Operating Income and Expenses were -EUR 21 million, mainly consisting of some disposal gains offset by M&A and integration costs. Net financial expenses reduced by EUR 102 million, while the Group’s effective tax rate was 23.2%, in line with expectations. The proposed dividend is EUR 2.90 per share, up 12% on last year, subject to approval at the Annual Shareholder’s Meeting to be held on May 5, 2022. The proposed dividend would be paid on May 19, 2022, and represents a continuation for the twelfth year of the Group’s progressive dividend policy.