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Bridging progress and sustainability for all

Universal Registration Document Financial and sustainable development report Bridging progress and sustainability for all Financial Statements 4. Consolidated financial statements at December 31, 2020 RFA. 1. Consolidated statement of income 302. 2. Consolidated statement of cash flows 304. 3. Consolidated balance sheet 305. 4. Consolidated statement of changes in equity 307. Strategic Report 5. Notes to the consolidated financial statements 308. Contents 6. Statutory Auditors' report on the consolidated financial statements 354. 0. Introduction Our Purpose 1. 5. Parent company financial statements RFA. At a glance 2 1. Balance sheet 362. A statement from Chairman and CEO, Jean-Pascal Tricoire 4 2.

* In 2019, the Group changed its definition of Adjusted Net Income, which includes the Adjusted EBITA, amortization expenses of purchase accounting intangible assets (excluding impairment), net financial income and loss, income tax expense on the above at the effective tax rate (exclud ing non-recurring items), discontinued

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Transcription of Bridging progress and sustainability for all

1 Universal Registration Document Financial and sustainable development report Bridging progress and sustainability for all Financial Statements 4. Consolidated financial statements at December 31, 2020 RFA. 1. Consolidated statement of income 302. 2. Consolidated statement of cash flows 304. 3. Consolidated balance sheet 305. 4. Consolidated statement of changes in equity 307. Strategic Report 5. Notes to the consolidated financial statements 308. Contents 6. Statutory Auditors' report on the consolidated financial statements 354. 0. Introduction Our Purpose 1. 5. Parent company financial statements RFA. At a glance 2 1. Balance sheet 362. A statement from Chairman and CEO, Jean-Pascal Tricoire 4 2.

2 Statement of income 364. An interview with Chief Financial Officer, Hilary Maxson 7 3. Notes to the financial statements 365. 2020 Key Financial Indicators 8 4. Statutory auditors' report on the financial statements 374. Outlook 10 5. List of securities held at December 31, 2020 377. sustainability Impact 12 6. Subsidiaries and affiliates 378. Business Model 14 7. The company's financial results over the last 5 years 380. Strategy 16. Our Impact 18 Shareholder Information Our Leadership Team 20. 6. Information on the Company and its capital 1. Group's strategy: opportunities and risks 1. General information on the Company 384. 1. Trends and opportunities 24 2. Shareholders' rights and obligations 385.

3 2. Customer Focus 26 3. Capital 388. 3. Company Purpose 28 4. Ownership structure 394. 4. Energy Management 30 5. Employee incentive plans Employee shareholding 395. 5. Industrial Automation 32 6. Stock market data 396. 6. Digital Transformation 34 7. Investor relations 397. 7. People Vision 36. 7. Annual Shareholders' Meeting RFA. 8. How we manage risks 38. 1. Explanatory comments & draft resolutions submitted 9. Risk factors 49 to the Annual Shareholders' Meeting 400. 2. Statutory Auditors' special reports 422. 2. Sustainable development 1. sustainability at the heart of Schneider Electric's strategy 72. 8. Persons responsible for the universal registration 2. Green and responsible growth driving economic performance 96.

4 Document and audit of the financial statements 3. Schneider Electric's commitments towards environmental Persons responsible for the Universal Registration Document 430. excellence 118. Persons responsible for the audit of the financial statements 431. 4. Committed to and on behalf of employees 144. 5. Schneider Electric, an eco-citizen company 170. 6. Methodology and audit of indicators 185. 7 Indicators 200. Corporate Governance Report 3. Corporate governance report RFA. 1. Governance Report 215. 2. Compensation Report 264. The Universal Registration Document was filed on March 23, 2021 with the Autorit des March s Financiers (AMF), as the competent authority under Commission regulation 1129/2017/EU, without prior approval in compliance with Article 9 of this regulation.

5 The Universal Registration Document may be used for purposes of a public offer of securities or admission of securities to trading on a regulated market if it is approved by the AMF as well as any amendments, and an offering circular relating to securities and the summary approved in compliance with Commission regulation 1129/2017/EU. This Universal Registration Document is a free translation into English of the official version of the Universal Registration Document which has been prepared in French and in ESEF format (European Single Electronic Format) and which includes the Annual Financial Report for the fiscal year ended December 31, 2020 and is available on the AMF's website ( ) and on the Company's website ( ).

6 0. Strategic Report Corporate Governance Report Our purpose is to empower all to make the most of our energy and resources Bridging progress and sustainability for all. Financial Statements At Schneider, we call this Shareholder Information 1. Read more about our purpose on page 28. Life Is On | Schneider Electric 0. At a glance Introduction Our performance A signature year: 2020 has been a strong and defining year financially, demonstrating our agility and resilience. Revenues organic Free Cash Flow 159% conversion rate Adjusted EBITA margin +20 bps organic Proposed Dividend per Share +2%. Adjusted Net Income* Share Price (at December 31, 2020). 134 million tons Green Revenues** CO2 Saved for Customers Digital and service business for increased efficiency across life cycle Software and Digital services 2.

7 Edge Field Control Group revenue leveraging Services Connectable products * In 2019, the Group changed its definition of Adjusted Net Income, which includes the Adjusted EBITA, amortization expenses of purchase accounting intangible assets (excluding impairment), net financial income and loss, income tax expense on the above at the effective tax rate (excluding non-recurring items), discontinued operations net income and share of profit and loss of associates, deducting impact of non-controlling interests. This definition of Adjusted Net Income was created to be more transparently derived from the financial statements. ** Green Revenues definition: offers that bring energy, climate, or resource efficiency to customers, while not generating any significant harmful impact on the environment and are split into four categories described on page 99.

8 Schneider Electric Universal Registration Document 2020 0. Strategic Report Our business Percentage of total employees by geography in 2020 Percentage of revenue by geography in 2020. Corporate Governance Report North America Western Europe 24% 29% 27% 26%. Financial Statements Shareholder Information Rest of the World Asia Pacific 17% 15% 32% 30%. 3. 128,000+ Overall workforce gender balance Employees in over 100 countries Male Female 33%. Revenue spent on innovation 67%. Life Is On | Schneider Electric 0. A statement from Chairman and CEO, Jean-Pascal Tricoire Introduction Our mission is to be your digital partner for efficiency and sustainability Jean-Pascal Tricoire Chairman and CEO.

9 2020 was a signature year. A year of incredible disruption, a year of to support our customers in reducing risk in their operations and strong performance, and a year of acceleration of our strategy. to operate remotely with our automation and digital solutions. Our While the COVID-19 pandemic continues to disrupt our lives, we manufacturing plants remained up and running, allowing us to meet saw a reinforcement of the trends that support our business. the critical needs of this crisis year. Although we have learned to live with the virus, in 2020, we were 2020 confirmed that, at Schneider, great people make a great forced to change. We now live and work differently.

10 We adapted company. to new ways of working with much less travel and many more digital meetings. The disruption of 2020 went far beyond the In 2020, we achieved resilient business performance and, at the pandemic, with social upheaval and geopolitical tension. We same time, built the future. saw the conclusion of Brexit, an acceleration in technologies and innovation, such as electric vehicles and 5G, as well as increasing In 2020, we achieved four things: commitments to halt climate change. 1. A resilient business performance;. For Schneider Electric, it has been a signature year. We've 2. We shaped our future, realizing strategic acquisitions;. changed more than we ever thought we could, while staying true to 3.


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