Schneider Electric : 2022 Universal Registration Document

FINANCIAL AND SUSTAINABLE DEVELOPMENT REPORT

2022 Universal Registration Document

Digital and Electric: for a sustainable and resilient future

The Universal Registration Document was filed on March 28, 2023 with the Autorité des Marchés Financiers (AMF), as the competent authority under Commission regulation (EU) 1129/2017, without prior approval in compliance with Article 9 of this regulation.

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 completed by a securities note and, if applicable, a summary and any amendments to the Universal Registration Document. The whole is then approved by the AMF in accordance with Regulation (EU) 2017/1129.

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, 2022 and is available on the AMF's website (www.amf-france.org) and on the Company's website (www.se.com).

STRATEGICREPORT

Integrated Report

STRATEGIC REPORT

Integrated report

Our purpose 2

About Schneider 4

Statement from the Chairman & CEO, Jean-Pascal Tricoire 10

An interview with Chief Financial Officer, Hilary Maxson 12

Financial Performance Highlights 13

Accelerating our digital journey 18

Key Achievements of 2022 20

Business: Market trends - All Digital, All Electric 22

What we do 24

Sustainability strategy: A changemaker for sustainability 30

Proud of 2022's sustainability achievements 32

2023 outlook and target 34 2022-2024 targets and long-term ambitions

as announced in 2021 Capital Markets Day 34

Governance 35

Our Stakeholders 40

Chapter 1 - Group strategy and sustainability

1.1 Trends and opportunities 52

1.2 Schneider Electric's unique operating model 54

1.3 Schneider Electric's priorities for sustainable growth 59

1.4 End-customer focus 69

Chapter 2 - Sustainable development

An introduction by Chief Strategy & Sustainability Officer,

Gwenaelle Avice-Huet 74

2.1 Sustainability for all 75

2.2 Driving responsible business with Trust 108

2.3 Leading on decarbonization 148

2.4 Being efficient with resources 174

2.5 Great people make Schneider Electric a great company 198

2.6 Delivering social impact for a just transition 224

2.7 Methodology and audit of indicators 242

2.8 Indicators 274

Chapter 3 - How we manage riskat Schneider Electric

An introduction by Chief Governance Officer & Secretary General,

Hervé Coureil 294

3.1 Risk management scope 295

3.2 Organization and management 295

3.3 Risk management mechanisms 299

3.4 Key risks and opportunities 304

3.5 Insurance 319

CORPORATEGOVERNANCEREPORT

Chapter 4 - Corporate governance report

Vice-Chairman & Lead Independent Director's introduction 322

4.1 Governance Report 324

4.2 Compensation Report 376

FINANCIAL STATEMENTS

Chapter 5 - Consolidated financialstatements at December 31, 2022

5.1 Consolidated statement of income 420

5.2 Consolidated statement of cash flows 422

5.3 Consolidated balance sheet 423

5.4 Consolidated statement of changes in equity 425

5.5 Notes to the consolidated financial statements 426

5.6 Statutory Auditors' report on the consolidated financial statements 483

5.7

Extract of the management report for the

year ended December 31, 2022 488

Chapter 6 - Parent company financialstatements

6.1 Balance Sheet 498

6.2 Statement of income 500

6.3 Notes to the financial statements 501

6.4 Statutory auditors' report on the annual financial statements 512

6.5 List of securities held at December 31, 2022 515

6.6 Subsidiaries and affiliates 516

6.7 The company's financial results over the last 5 years 518

6.8 Extract of the management report for the year ended

December 31, 2022 519

SHAREHOLDER INFORMATION

Chapter 7 - Information on the Company and its capital

7.1

Shareholding 522

7.2 Capital 524

7.3 General information on the Company 527

7.4 Shareholders' rights and obligations 528

7.5 Stock market data 531

7.6 Investor relations 533

Chapter 8 - Annual Shareholders'

Meeting

8.1 Explanatory comments & draft resolutions submitted

to the Annual Shareholders' Meeting 536

8.2 Statutory Auditors' special reports 561

Chapter 9 - Persons responsible for the Universal Registration Document and audit of the financial statements

Persons responsible for the Universal Registration Document 568

Persons responsible for the audit of the financial statements 569

Universal Registration Document cross-reference table 570

Annual Financial Report cross-reference table 573

Cross-reference table referring to the elements of the

Management Report 574

Cross-reference table referring to the

elements of the Corporate Governance Report 575

Cross-reference table pursuant to Articles L. 225-102-1, L. 22-10-36 and R. 225-105 (disclosure on extra-financial performance), and

Article L. 225-102-4 (vigilance plan) of the French Commercial Code 576

Glossary 578

RFA Annual Financial Report elements are clearly identified in this table of contents with the sign RFA.

I N T E G R A T E D R E P O R T

C H 1

C H 2

C H 3

C H 4

C H 5

C H 6

C H 7

C H 8

C H 9

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To empower all to make the most of our energy and resources bridging progress and sustainability for all.

Integrated Report

STRATEGIC REPORT

Our purpose

Our performance

2022 was a year of strong performance against a complex economic and geopolitical backdrop. We navigated the challenges faced with agility, taking the next step on our sustainable growth journey.

Financial KPIs

Revenues

Free Cash Flow

€34.2B

€3.3B

SchneiderElectric Universal Registration Document 2022 |www.se.com

+12.2% organic

96% conversion rate

Adjusted EBITA margin

Adjusted Earnings per Share

17.6%

€7.11

+40bps organic

+16%

Net Income (Group share)

Proposed Dividend per Share

€3.5B

€3.15

+9%

+9%

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STRATEGIC REPORT

Integrated Report

C H 1

C H 2

C H 3

At Schneider we call this

C H 4

C H 5

C H 6

C H 7

Our Impact

C H 8

72%

9.7%

C H 9

Impact Revenues (+1pt vs 2021)

Reduction in suppliers CO2 emissions

4.91/10

+9.7M

Schneider Sustainability Impact score, outperforming 2022 4.70/10 target

People have access to green electricity since 2020

440M

397,864

Tonnes of saved and avoided CO2 emissions to our customers since 2018

People trained in energy management since 2009

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I N T E G R A T E D R E P O R T