Annual financial statement
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CONSOLIDATED FINANCIAL STATEMENTS FISCAL YEAR ENDED DECEMBER 31, 2025 Technology Solutions INTO
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2 Schneider Electric | Consolidated financial statements 2025 se.com TechnologyINTO Solutions
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3se.com Schneider Electric Consolidated financial statements at December 31, 2025 1. Consolidated statement of income 4 2. Consolidated balance sheet 5 3. Consolidated statement of cash flows 6 4. Consolidated statement of changes in equity 7 5. Notes to the consolidated financial statements 8
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Consolidated financial statements 1. Consolidated statement of income 1. Consolidated statement of income (in millions of euros except for earnings per share) Note Full Year 2025 Full Year 2024 Revenue 3, 4 40,152 38,153 Cost of sales (23,257) (21,885) Gross profit 16,895 16,268 Research and development 5 (1,365) (1,308) Selling, general and administrative expenses (8,010) (7,877) Adjusted EBITA * 4 7,520 7,083 Other operating income and expenses 7 (77) (87) Restructuring costs (287) (141) EBITA ** 7,156 6,855 Amortization and impairment of purchase accounting intangibles 6 (457) (406) Operating income 6,699 6,449 Interest income 152 174 Interest expense (473) (435) Finance costs, net (321) (261) Other financial income and expenses 8 (198) (148) Net financial income/(loss) (519) (409) Profit from continuing operations before income tax 6,180 6,040 Income tax expense 9 (1,455) (1,398) Share of profit/(loss) of associates 14 14 17 Impairment of investments in associates 14 (388) (220) PROFIT FOR THE YEAR 4,351 4,439 attributable to owners of the parent 4,163 4,269 attributable to non-controlling interests 188 170 Basic earnings (attributable to owners of the parent) per share (in euros per share) 20 7.41 7.61 Diluted earnings (attributable to owners of the parent) per share (in euros per share) 20 7.33 7.53 * Adjusted EBITA (Earnings Before Interest, Taxes, Amortization of Purchase Accounting Intangibles): Operating profit before amortization and impairment of purchase accounting intangible assets, before goodwill impairment, other operating income and expenses and restructuring costs. ** EBITA (Earnings Before Interest, Taxes and Amortization of Purchase Accounting Intangibles): Operating profit before amortization and impairment of purchase accounting intangible assets and before goodwill impairment. Other comprehensive income (in millions of euros) Note Full Year 2025 Full Year 2024 Profit for the year 4,351 4,439 Other comprehensive income: Translation adjustment (3,531) 1,426 Revaluation of assets and liabilities due to hyperinflation - 44 Net gains/(losses) on hedging 81 (29) Income tax effect of cash flow hedges 20 (42) 6 Gains and losses recorded in equity with recycling (3,492) 1,447 Net gains/(losses) on financial assets (40) 26 Income tax effect of gains/(losses) on financial assets 20 5 (7) Actuarial gains/(losses) on defined benefit plans 21 (45) (39) Income tax effect of actuarial gains/(losses) on defined benefit plans 20 (4) 18 Gains and losses recorded in equity with no recycling (84) (2) Other comprehensive income for the year, net of tax (3,576) 1,445 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 775 5,884 attributable to owners of the parent 697 5,695 attributable to non-controlling interests 78 189 The accompanying notes are an integral part of the consolidated financial statements. 4 Schneider Electric | Consolidated financial statements 2025 se.com
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2. Consolidated balance sheet Assets (in millions of euros) Note Dec. 31, 2025 Dec. 31, 2024 NON-CURRENT ASSETS: Goodwill, net 11 25,142 26,281 Intangible assets, net 12 5,938 6,280 Property, plant and equipment, net 13 5,481 4,884 Investments in associates and joint ventures 14 705 1,111 Non-current financial assets 15 1,633 1,601 Deferred tax assets 9 1,567 1,794 TOTAL NON-CURRENT ASSETS 40,466 41,951 CURRENT ASSETS: Inventories 16 5,368 5,411 Trade and other operating receivables 17 9,836 9,364 Other receivables and prepaid expenses 18 2,200 2,330 Cash and cash equivalents 19 4,634 6,887 TOTAL CURRENT ASSETS 22,038 23,992 Assets held for sale 2 - - TOTAL ASSETS 62,504 65,943 Liabilities (in millions of euros) Note Dec. 31, 2025 Dec. 31, 2024 EQUITY: 20 Share capital 2,308 2,303 Additional paid in capital 2,844 3,354 Retained earnings 21,315 23,677 Translation reserve (2,268) 1,155 Equity attributable to owners of the parent 24,199 30,489 Non-controlling interests 256 791 TOTAL EQUITY 24,455 31,280 NON-CURRENT LIABILITIES: Pensions and other post-employment benefit obligations 21 1,048 1,098 Other non-current provisions 22 1,136 1,251 Non-current financial liabilities 23 15,021 10,910 Non-current purchase commitments over non-controlling interests 23 278 19 Deferred tax liabilities 9 813 810 Other non-current liabilities 1,247 1,006 TOTAL NON-CURRENT LIABILITIES 19,543 15,094 CURRENT LIABILITIES: Trade and other operating payables 9,327 8,893 Accrued taxes and payroll costs 3,674 4,015 Current provisions 22 1,074 1,052 Other current liabilities 1,375 1,504 Current financial liabilities 23 2,859 3,921 Current purchase commitments over non-controlling interests 23 197 184 TOTAL CURRENT LIABILITIES 18,506 19,569 Liabilities held for sale 2 - - TOTAL EQUITY AND LIABILITIES 62,504 65,943 The accompanying notes are an integral part of the consolidated financial statements. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 5se.com Schneider Electric
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Consolidated financial statements 3. Consolidated statement of cash flows 3. Consolidated statement of cash flows (in millions of euros) Note Full Year 2025 Full Year 2024 Profit for the year 4,351 4,439 Share of (profit)/losses of associates 14 (14) (17) Impairment of investments in associates 14 388 220 Income and expenses with no effect on cash flow: Depreciation of property, plant and equipment 13 871 822 Amortization of intangible assets 12 781 716 Impairment losses on non-current assets 53 31 Increase/(decrease) in provisions 22 106 93 Losses/(gains) on disposals of business and assets (25) (115) Income taxes 9 1,455 1,398 Other non-cash adjustments 200 200 Taxes paid, net (1,418) (1,479) Net cash provided by operating activities 6,748 6,308 Decrease/(increase) in accounts receivable (301) (199) Decrease/(increase) in inventories (366) (834) (Decrease)/increase in accounts payable 307 439 Decrease/(increase) in other current assets and liabilities (257) (134) Change in working capital requirement (617) (728) TOTAL I - CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES 6,131 5,580 Purchases of property, plant and equipment 13 (1,072) (950) Purchases of intangible assets 12 (471) (469) Proceeds from property, plant and equipment and intangible assets 47 55 Net cash used by investment in operating assets (1,496) (1,364) Acquisitions and disposals of businesses, net of cash acquired & disposed 2 (1,158) (452) Other long-term investments (9) (91) Increase in long-term pension assets 21 (54) (80) Sub-total (1,221) (623) TOTAL II - CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES (2,717) (1,987) Issuance of bonds 23 4,864 3,466 Repayment of bonds 23 (1,800) (1,384) Sale/(purchase) of treasury shares (341) (322) Increase/(decrease) in other financial debt and other debt (510) (1,338) OCEANEs issuance and repayment (equity component) 109 (66) Increase/(decrease) of share capital 20 271 252 Transaction with non-controlling interests 2 (5,535) (183) Dividends paid to Schneider Electric's shareholders 20 (2,191) (1,963) Dividends paid to non-controlling interests (96) (86) TOTAL III - CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES (5,229) (1,624) TOTAL IV - NET FOREIGN EXCHANGE DIFFERENCE (410) 189 TOTAL V - IMPACT OF RECLASSIFICATION OF ITEMS HELD FOR SALE - - INCREASE/(DECREASE) IN NET CASH AND CASH EQUIVALENTS: I + II + III + IV + V (2,225) 2,158 Net cash and cash equivalents, beginning of the year 19 6,812 4,654 Increase/(decrease) in cash and cash equivalents (2,225) 2,158 NET CASH AND CASH EQUIVALENTS, END OF THE YEAR 19 4,587 6,812 The accompanying notes are an integral part of the consolidated financial statements. 6 Schneider Electric | Consolidated financial statements 2025 se.com
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4. Consolidated statement of changes in equity (in millions of euros except for number of shares) Number of shares (thousands) Share capital Additional paid-in capital Retained earnings Translation reserve Equity attributable to owners of the parent Non- controlling interests Total Dec. 31, 2023 572,836 2,291 2,872 21,593 (294) 26,462 706 27,168 Profit for the year - - - 4,269 4,269 170 4,439 Other comprehensive income - - - (23) 1,449 1,426 19 1,445 Comprehensive income for the year - - - 4,246 1,449 5,695 189 5,884 Capital increase 1,410 6 246 - - 252 - 252 OCEANEs issuance, conversion and repurchase 1,386 6 237 (88) - 155 - 155 Dividends - - - (1,963) - (1,963) (86) (2,049) Purchase of treasury shares - - - (322) - (322) - (322) Share-based compensation expense - - - 234 - 234 - 234 IAS 29 Hyperinflation - - - (13) - (13) (13) Other - - - (11) - (11) (18) (29) Dec. 31, 2024 575,632 2,303 3,354 23,677 1,155 30,489 791 31,280 Profit for the year - - - 4,163 4,163 188 4,351 Other comprehensive income - - - (43) (3,423) (3,466) (110) (3,576) Comprehensive income for the year - - - 4,120 (3,423) 697 78 775 Capital increase 1,491 6 265 - - 271 - 271 OCEANEs issuance - - - 81 - 81 - 81 Dividends - - (774) (1,417) - (2,191) (96) (2,287) Purchase of treasury shares - - - (341) - (341) - (341) Share-based compensation expense - - - 202 - 202 - 202 IAS 29 Hyperinflation - - - 48 - 48 - 48 SEIPL purchase of non-controlling interest - - - (5,053) - (5,053) (519) (5,572) Other - - - (4) - (4) 2 (2) Dec. 31, 2025 577,123 2,308 2,844 21,315 (2,268) 24,199 256 24,455 The accompanying notes are an integral part of the consolidated financial statements. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 7se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements 5. Notes to the consolidated financial statements All amounts are stated in millions of euros unless otherwise indicated. The following notes form an integral part of the consolidated financial statements. The Schneider Electric Group’s consolidated financial statements for the financial year ended December 31, 2025 were authorized for issue by the Board of Directors on February 25, 2026. They will be submitted to shareholders for approval at the Annual General Meeting to be held on May 7, 2026. 8 Schneider Electric | Consolidated financial statements 2025 se.com Contents Note Note 1 Basis of preparation 9 2 Changes in the scope of consolidation 12 3 Revenue and backlog 14 4 Segment information 15 5 Research and development expenditures 16 6 Impairment losses, depreciation and amortization expenses 17 7 Other operating income and expenses 17 8 Other financial income and expenses 17 9 Income tax 18 10 Impairment of assets 20 11 Goodwill 21 12 Intangible assets 22 13 Property, plant and equipment 24 14 Investments in associates and joint ventures 26 15 Non–current financial assets 28 16 Inventories 29 17 Trade and other operating receivables 29 18 Other receivables and prepaid expenses 31 19 Cash and cash equivalents 31 20 Shareholder’s equity 31 21 Pensions and other post-employment benefit obligations 35 22 Provisions and contingent liabilities 40 23 Current and non-current financial liabilities 41 24 Classification of financial instruments 44 25 Employees 50 26 Related party transactions 51 27 Commitments 51 28 Subsequent events 51 29 Statutory Auditors’ fees 52 30 Consolidated companies 53
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Note 1: Basis of preparation 1.1 – Applicable framework The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and as issued by the IASB (International Accounting Standards Board) as of December 31, 2025. The Group has applied the same accounting policies as those applied in the consolidated financial statements for the year ended December 31, 2024, except for those amendments and interpretations of IFRS described below. The IFRS standards and interpretations as adopted by the European Union are available at the following website: https:// finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/financial-reporting Standards, interpretations and amendments endorsed by the European Union whose application is mandatory as of January 1, 2025 The following standards and interpretations applicable in the period did not have a material impact on the consolidated financial statements as of December 31, 2025: • Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability. Standards, interpretations and amendments not endorsed by the European Union as of December 31, 2025, or whose application is not mandatory as of January 1, 2025 • Amendments to IFRS 7 - Financial Instruments: Disclosures and IFRS 9 - Financial Instruments on the Classification and Measurement of Financial Instruments; • Amendments to IFRS 7 - Financial Instruments: Disclosures and IFRS 9 - Financial Instruments for Contracts Referencing Nature- dependent Electricity; • Annual Improvements to IFRS Standards Volume 11. The Group is currently assessing the potential effects on its consolidated financial statements of the above standards not yet applicable as of December 31, 2025. At this stage of analysis, the Group does not expect any material impact on its consolidated financial statements. • IFRS 18 - Presentation and Disclosure in Financial Statements; The Group is currently assessing the potential effects on its consolidated financial statements of this standard. The Group will apply IFRS 18 - Presentation and Disclosure in Financial Statements from its mandatory effective date of January 1, 2027 and restate the comparative information in accordance with IFRS 18. Climate–related matters The potential impacts of climate–related matters on the measurement of the Group’s assets and liabilities, as well as on significant judgments and estimates, have been analyzed from multiple perspectives: climate transition risks and opportunities, physical risks, and Schneider Electric’s net–zero commitment. The Group is committed to be “net–zero ready” in its operation (scope 1 and 2) by 2030 and net–zero across the whole value chain by 2050. Those objectives are concretely integrated in the Group’s sustainability strategy through the Schneider Sustainability Impact (SSI) and Schneider Sustainability Essentials (SSE) programs that are externally reported respectively on a quarterly and annual basis. To achieve its emission reduction objectives and meet the net–zero commitment taken, the Group has defined a comprehensive roadmap and key actions to enable the decarbonization of both its own operations and its value chain, having direct implications on its processes, sites decarbonization, R&D and investment priorities: • Significant investments on both industrial processes and real estate portfolio planned to decarbonize operations by 2030 (scopes 1 & 2) in line with company–wide energy and climate targets: for instance electrification of industrial processes and building heating in order to meet energy productivity target, electric vehicles chargers instalment in order to meet fleet electrification target, on-site solar generation in order to meet the commitment of sourcing 100% of electricity from renewables by 2030. Specifically on manufacturing and distribution centers, the Group has defined a priority list and invests progressively on electric and efficient systems (e.g., heat pumps, micro grids, solar panels, thermal insulation) to achieve net–zero ready operations by 2030. • Implementation of a process to follow carbon footprint evolution at an early stage of new product development to reduce the footprint of future generations of products. The Group committed on a step up in R&D in coming years, from a circa 6% of Group revenues dedicated to strategic R&D investment to a future circa 7% by 2030, with a strong focus on sustainability. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 9se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements The actual and potential financial links and effects of the Group’s external commitments and specific climate risks identified, are detailed as follows: • At Schneider Electric, climate risks to operations and supply chain are addressed with a comprehensive supply chain resilience and adaptation program, aiming at identifying climate risks, quantifying the value at risk under different climate scenarios, and reducing the Group’s vulnerability. Schneider Electric is working with multiple actors on its value chain to adapt to climate change and increase its resilience. The Group invests in protecting sites exposed to extreme weather events, essentially flooding and fire risks, by implementing engineered and built environment adaptation solutions. It also detects potential climate risks using real–time predictive weather analysis to alert at–risk sites, enabling them to proactively activate their business continuity plans. This approach helps contain the potential impact of these risks and defines necessary remediation and control measures. The Group is not a capital–intensive company, majority of its sites are leased and not owned, and the individual residual value of its tangible assets in the most at–risk locations is not material. The Group has a low dependence on water in its production processes. Additionally, the multi hub position of the Group with agile capacity to relocate its production in case of climate disaster is a way to significantly mitigate risks and potential effects. No material impact has been identified, notably on evaluation and useful life of tangible assets or in the impairment tests performed at Group level. From 2023, the Group has worked on quantifying investments and additional costs, as well as opportunities, to achieve long–term net–zero carbon commitments, taking into consideration several scenarios to integrate them into the Group’s impairment tests. Schneider Electric is well positioned to capitalize on the global push for electrification and the net–zero commitments of other companies. The alignment between the Group’s sustainability commitments, its transformation, and its financial statements was further strengthened in 2024 with the implementation of the Corporate Sustainability Reporting Directive (CSRD). The Group has not identified any risk of impairment as of December 31, 2025. • The Schneider Sustainability Impact (SSI), which encompasses several climate objectives, serves as a factor in the annual short– term variable compensation. Over 80,000 employees, including Corporate Officer, are eligible, with the weight varying up to 20%, depending on the type of plan. Also, criteria related to climate targets on scopes 1, 2, and upstream scope 3 have been introduced in 2024 in the long–term incentive plan granted to more than 4,500 employees, including the Corporate Officer (25% weight). This amendment has been designed to align executive remuneration with the Group’s commitment in terms of climate transition and Schneider Electric’s sustainable value creation over the long–term. • To further tie climate–related issues to financial planning, Schneider Electric has linked in 2022 its bank fundings with the SSI performance with the signature of a KPIs linked facility. 1.2 – Valuation principles The consolidated financial statements have been prepared on a historical cost basis, except for the following items: • derivative instruments and certain financial assets, which are measured at fair value; • assets held for sale, which are measured at the lower of their carrying amount and fair value less costs to sell; • defined benefit pension plans, where plan assets are measured at fair value. Financial liabilities are measured using the amortized cost model. The carrying amount of hedged assets and liabilities, in a fair value hedge corresponds to their fair value for the portion attributable to the hedged risk. 1.3 – Major accounting estimates and judgments The preparation of financial statements requires Group management and subsidiaries to make estimates and assumptions that may affect the amounts of assets and liabilities reported in the consolidated balance sheet, as well as revenues and expenses in the statement of income and the commitments created during the reporting period. Actual results may differ from those estimates. Besides making use of estimates, the Group’s Management must exercise judgment in selecting and/or applying the most appropriate accounting treatment for certain transactions and activities and in defining the terms of its application. These accounting estimates and judgments principally relate to: • the measurement of the recoverable amount of goodwill, property, plant and equipment and intangible assets (Note 10); • the measurement of non-current financial assets (Note 15); • the measurement of provisions relating to litigations (Note 22); • the measurement of pension and other post-employment benefit obligations (Note 21); • the recoverability of deferred tax assets (Note 9); • the measurement of provisions covering uncertainties over income tax treatment (Note 9); • the estimation of the margin at completion for Construction contracts (Note 3); • the assumptions retained to evaluate the lease liability (IFRS 16): lease term and discount rate (Note 13). 10 Schneider Electric | Consolidated financial statements 2025 se.com
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1.4 – Consolidation principles Subsidiaries over which the Group exercises exclusive control, directly or indirectly, are fully consolidated. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the entity’s relevant activities. Where necessary, the accounting policies of subsidiaries, joint ventures and associates have been adjusted to ensure consistency with those applied by the Group. Investments in entities that are jointly controlled with a limited number of partners such as joint ventures and in entities over which the Group exercises significant influence (“associates”) are accounted for using the equity method. Significant influence is presumed when the Group holds more than 20% of voting rights. Entities acquired or disposed of during the year are included in, or removed from, the consolidated financial statements from the date on which control is obtained or relinquished, respectively. Acquisitions or disposals of interests in a subsidiary that do not result in a change of control are accounted for as shareholder transactions and recognized directly in equity. Changes in ownership interests are reflected through adjustments between the carrying amounts of controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the adjustment to non-controlling interests and any consideration paid or received is recognized directly in equity attributable to owners of the parent, within retained earnings. Intra-group balances and transactions are eliminated in full. The list of the Group’s main consolidated subsidiaries, joint ventures and associates is presented in Note 30. The reporting date of all companies included in the scope of consolidation is December 31, except for certain immaterial associates accounted for using the equity method, for which financial statements up to September 30 are used (maximum difference of three months permitted by IAS 28). 1.5 – Translation of the financial statements of foreign subsidiaries The consolidated financial statements are presented in euros. The financial statements of subsidiaries whose functional currency differs from the euro are translated into euros as follows: • assets and liabilities are translated at the closing exchange rates; • statement of income, backlog and cash flow items are translated at average exchange rates for the year. An entity’s functional currency is the currency of the primary economic environment in which it operates. In most cases, the functional currency is the local currency. However, another functional currency may be used where it better represents the currency of the entity’s main transactions and provides a faithful representation of its economic environment. Translation differences are recognized in consolidated equity under “Translation reserve”. Upon disposal, the cumulative translation reserve relating to an entity whose functional currency is not the euro is recycled in the statement of income and included in the gain or loss on disposal. The Group applies IAS 29 - Financial Reporting in Hyperinflationary Economies to subsidiaries operating in hyperinflationary economies (Argentina and Türkiye). The Group uses the Consumer Price Index (CPI) for Argentina and Türkiye to restate income statement items, cash flows and non-monetary assets and liabilities. Between December 2024 and December 2025, the CPI increased by 30% in Argentina and by 31% in Türkiye. 1.6 – Foreign currency transactions Foreign currency transactions are initially recorded at the exchange rate in effect at the transaction date or at the hedging rate, as applicable. At the reporting date, monetary items denominated in foreign currencies (e.g. payables, receivables, etc.) are translated into the entity’s functional currency using the closing exchange rate or the hedging rate. Exchange differences arising on translation are recognized in “Net financial income/(loss)”. The Group’s foreign currency hedging policies are described in Note 24.3. Certain long-term receivables and loans to subsidiaries are, however, considered to form part of a net investment in a foreign operation within the meaning of IAS 21 - The Effects of Changes in Foreign Exchange Rates. Accordingly, exchange differences are recognized in other comprehensive income (OCI) and recycled to the statement of income upon disposal of the investment or upon settlement of the long-term receivable or loan. 1.7 – Statement of cash flows The consolidated statement of cash flows is prepared using the indirect method. Interest paid and interest received are presented within cash flows from operating activities. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 11se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 2: Changes in the scope of consolidation Accounting principles Business combination Business combinations are accounted for using the acquisition method, in accordance with IFRS 3 - Business Combinations. Acquisition-related costs are presented under “Other operating income and expenses” in the statement of income. Identifiable acquired assets, liabilities and contingent liabilities are recognized at their fair values at the acquisition date. Those fair values may be adjusted during the measurement period, which may extend up to 12 months from the acquisition date. For most acquisitions, the Group applies the full goodwill method where goodwill is recognized for the excess of (i) the consideration transferred, plus (ii) the fair value of any non- controlling interests, over (iii) the fair value of identifiable net assets acquired at acquisition date. For certain business combinations, the Group may elect to apply the partial goodwill method, under which goodwill corresponds to the excess of (i) the consideration transferred, plus (ii) non-controlling interest’s proportionate share of the acquiree’s identifiable net assets, over (iii) the fair value of identifiable net assets acquired at acquisition date. Goodwill is allocated to Cash-Generating Units (CGUs) or groups of CGUs expected to benefit from the synergies of the business combination. Assets and liabilities held for sale Non-current assets or disposal groups are classified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This classification is made when management has committed to a plan to sell and the sale is highly probable. Assets and liabilities classified as held for sale are presented separately in the consolidated balance sheet and measured at the lower of their carrying amount and fair value less costs to sell. Depreciation and amortization cease for non-financial assets classified as held for sale from the date of classification. When a sale involving a loss of control of a subsidiary is highly probable, all assets and liabilities of that subsidiary are classified as held for sale, regardless of whether the Group will retain a residual interest after the sale. 2.1 – Scope variations Main acquisitions of the period Motivair On February 28, 2025, Schneider Electric completed the transaction to acquire Motivair Corporation, a company specialized in liquid cooling and advanced thermal management solutions for high performance computing systems. Under the terms of the transaction, Schneider Electric has acquired an initial 75% controlling interest in the equity of Motivair for a consideration of EUR 847 million at acquisition date, fully paid in cash. Motivair is consolidated within the Energy Management reporting segment. The Group expects to acquire the remaining 25% of non-controlling interests in 2028 through a put/call option. In 2028, the minority shareholders will have the right to sell to the Group their remaining 25% stake in Motivair. The Group also holds a right to acquire the remaining 25% of non-controlling interests in 2028 as well. The related debt has been recognized in “Non-current purchase commitments over non-controlling interests” for EUR 278 million at acquisition date. The purchase accounting as per IFRS 3 is completed as of December 31, 2025. Motivair carrying value at acquisition date for net identifiable assets was EUR 59 million. The net adjustment of the opening balance sheet is EUR 298 million, resulting mainly from the booking of identifiable intangible assets (customer relationships and brand). The goodwill recognized amounts to EUR 769 million at acquisition date. Schneider eStar On May 6, 2024, a memorandum of understanding was signed between Schneider Electric and StarCharge, a major operator of charging service networks in China, for the creation of a joint venture to support the growth of the European prosumer market. The joint venture (called Schneider eStar) creation steps occurred during the first quarter of 2025. On April 1st 2025, Schneider Electric acquired 51.01% of Schneider eStar for a consideration of EUR 230 million, of which EUR 220 million paid in cash. The purchase accounting as per IFRS 3 is completed as of December 31, 2025. Schneider eStar carrying value at acquisition date for net identifiable assets was EUR 16 million. The net adjustment of the opening balance sheet is EUR 111 million, resulting from the booking of an identifiable intangible asset. The partial goodwill method was used and a partial goodwill of EUR 165 million was recognized at acquisition date. Schneider eStar started operating in April 2025 and is fully consolidated within the Energy Management reporting segment. 12 Schneider Electric | Consolidated financial statements 2025 se.com
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Transaction with Schneider Electric India Private Limited (“SEIPL”) non-controlling interests On July 29, 2025, Schneider Electric signed an agreement to acquire the remaining 35% non-controlling interests of SEIPL from Temasek to reach full ownership. The transaction closed on December 18, 2025. Under the terms of the transaction, Schneider Electric acquired the remaining 35% of SEIPL for an all-cash consideration of EUR 5.5 billion. This transaction was accounted for as a shareholder transaction. The difference between the consideration paid including transaction costs and the carrying amount of the non-controlling interests acquired, amounting to EUR 519 million as of December 31, 2025, was recognized directly in “Equity attributable to owners of the parent”. Follow–up on acquisitions and divestments transacted in 2024 with effect in 2025 Planon On July 30, 2024, Schneider Electric signed an agreement to acquire an additional 55% stake in Planon for a consideration of EUR 525 million, fully paid in cash, increasing its ownership of Planon to a controlling stake of 80%. Since transaction closing date on October 28, 2024, Planon is consolidated within the Energy Management reporting segment. The purchase accounting as per IFRS 3 is completed as of December 31, 2025. As of December 31, 2024, a preliminary goodwill of EUR 608 million was recognized. As of December 31, 2025, the goodwill was raised to EUR 644 million. 2.2 – Impact of changes in the scope of consolidation on the Group cash flow Changes in the scope of consolidation at December 31, 2025, decreased the Group’s cash position by a net EUR 6,693 million outflow, as detailed below: (in millions of euros) Full Year 2025 Full Year 2024 Acquisitions (net of cash acquired) (1,183) (535) of which Motivair (816) - of which Schneider eStar (219) - of which Planon (7) (495) Disposals (net of cash disposed) 25 83 FINANCIAL INVESTMENTS NET OF DISPOSALS (1,158) (452) Schneider Electric India Private Limited - SEIPL (5,478) - Others (57) (183) TRANSACTION WITH NON-CONTROLLING INTERESTS (5,535) (183) TOTAL CASH FLOW IMPACT (6,693) (635) In 2025, cash outflow net of cash acquired is mainly due to the non-controlling interest buyout of Schneider Electric India Private Limited for EUR 5,478 million, to the acquisition of Motivair for EUR 816 million and the creation of Schneider eStar Joint Venture for EUR 219 million. The main acquisitions and disposals of the year are described in Note 2.1. In 2024, cash outflow was mainly due to the acquisitions of Planon and ETAP’s non–controlling interests and other individually not significant acquisitions. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 13se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 3: Revenue and backlog Accounting principles The Group’s revenue primarily comprises transactional sales, and revenue from services, systems contracts (projects) and software. In accordance with IFRS 15, when a contract includes multiple goods or services, the Group assesses whether these goods or services are distinct. Where that assessment concludes that distinct goods or services are transferred to the customer (for example, contracts combining build followed by operation and maintenance), the contract is separated into multiple performance obligations, which are accounted for separately. Revenue is recognized for each identified performance obligation when (or as) that obligation is satisfied, i.e., when control of the promised goods or services is transferred to the customer, for an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue recognized at a point in time Revenue from sales is recognized at a point in time when control of the promised goods or services is transferred to the customer. This method applies to all transactional sales and to certain services such as spare parts deliveries, or on-demand services. Discounts and rebates granted to distributors are accrued when the related products are sold and are recognised as a reduction of revenue. Certain Group subsidiaries also grant cash discounts to distributors, which are likewise deducted from revenue. Accordingly, consolidated revenue is presented net of these discounts and rebates. Revenue recognized over time In order to conclude that control transfers over time and therefore recognize revenue over time, the following criteria must be met cumulatively: • the goods sold have no alternative use; and • the Group has an enforceable right to payment (corresponding to costs incurred, plus a reasonable profit margin) for the work performed to date, in the event of termination for convenience by the customer. When these criteria are met, revenue is recognized using the percentage-of-completion method, based on the proportion of costs incurred relative to the total estimated costs for the performance obligation. Costs incurred include direct and indirect costs attributable to the contract. Expected contract losses are recognized in full as soon as they are identified. Penalties for late delivery or improper execution are recognized as a reduction of revenue. This method applies to systems contracts (projects), as the constructed assets are highly customized, and the Group would otherwise incur significant economic losses to redirect the solutions to alternative customers. Revenue from most services contracts is recognized over time, as the customer simultaneously receives and consumes the benefits of the services provided. Where costs incurred are stable over the contract period, revenue is recognized on a straight-line basis over the contract term. Software revenue recognition The Group generates software-related revenue primarily from subscriptions, licenses, maintenance and services. Revenue is recognized upon transfer of control of the promised software or service to customers. • Subscription arrangements are either: – SaaS (Software as a Service): remote access to a cloud software solution, hosting and services for which revenue is recognized on a straight-line basis over the contract term; or – On premise subscriptions, which contain two separate performance obligations relating to the on-premise software license and maintenance, for which revenue is recognized consistently with arrangements that include multiple performance obligations. • Software license revenue represents fees earned from granting customers licenses to use the Group’s software. It includes revenue from perpetual and term (periodic) licenses and is recognized at a point in time when control is transferred to the customer. • Maintenance includes annual fees as well as separate support and maintenance contracts. Revenue is recognized over time on a straight-line basis over the contract term. • Services include, in particular, setup, training and customization services. Revenue from these services is recognized over time as the services are performed. Backlog Backlog (as disclosed in Note 4) corresponds to the selling price allocated to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date and includes binding contracts only. 14 Schneider Electric | Consolidated financial statements 2025 se.com
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Note 4: Segment information The Group is organized into two reporting segments as follows: Energy Management leverages a complete end–to–end technology offering enabled by EcoStruxure. The Group’s go–to–market is oriented to address customer needs across its four end–markets of Data Center & Networks, Buildings, Industry and Infrastructure, supported by a worldwide partner network. Industrial Automation includes Industrial Automation and Industrial Control activities, across discrete, process & hybrid industries. Expenses concerning General Management that cannot be allocated to a particular segment are presented under “Central functions & digital costs”. The Executive Committee, which is chaired by the Chief Executive Officer, has been identified as the main decision–making body for allocating resources and evaluating segment performance. Performance and decisions on the allocation of resources are assessed by the Executive Committee and are mainly based on Adjusted EBITA. Share–based payment is presented under “Central functions & digital costs”. The Executive Committee does not review assets and liabilities by reporting segments. The same accounting principles governing the consolidated financial statements apply to segment data. Due to the substantial number of customers served by the Group, to their significant diversity in multiple sectors and to their wide geographical dispersion, the Group’s largest customer does not exceed 10% of Schneider Electric’s revenue. 4.1 – Information by reporting segment Full Year 2025 (in millions of euros) Energy Management Industrial Automation Central functions & digital costs Total Backlog 21,340 4,022 - 25,362 Revenue 33,130 7,022 - 40,152 Adjusted EBITA 7,235 994 (709) 7,520 including depreciation & amortization (914) (281) - (1,195) Adjusted EBITA (%) 21.8% 14.2% 18.7% On December 31, 2025, the total backlog to be executed in more than a year amounted to EUR 8,022 million. Full Year 2024 (in millions of euros) Energy Management Industrial Automation Central functions & digital costs Total Backlog 17,698 3,722 - 21,420 Revenue 31,131 7,022 - 38,153 Adjusted EBITA 6,865 1,041 (823) 7,083 including depreciation & amortization (845) (287) - (1,132) Adjusted EBITA (%) 22.1% 14.8% 18.6% On December 31, 2024, the total backlog to be executed in more than a year amounted to EUR 4,842 million. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 15se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements 4.2 – Information by region The geographic regions covered by the Group are: • Western Europe; • North America (including Mexico); • Asia–Pacific; • Rest of the World (Eastern Europe, Middle East, Africa, South America). Non–current assets include net goodwill, net intangible assets and net property, plant and equipment. Full Year 2025 (in millions of euros) Western Europe of which France Asia-Pacific of which China North America of which USA Rest of the world Total Revenue by country market 9,316 2,240 10,497 4,607 15,438 13,818 4,901 40,152 Non-current assets as of Dec. 31, 2025 13,966 3,178 5,359 1,101 15,705 15,259 1,531 36,561 Full Year 2024 (in millions of euros) Western Europe of which France Asia-Pacific of which China North America of which USA Rest of the world Total Revenue by country market 8,993 2,137 10,347 4,670 13,850 12,108 4,963 38,153 Non-current assets as of Dec. 31, 2024 13,807 2,975 5,868 1,156 16,328 15,947 1,442 37,445 Note 5: Research and development expenditures Accounting principles Research expenditures are expensed in the statement of income as incurred. Development expenditures for new projects are capitalized when the recognition criteria in IAS 38 are met. Development costs that have previously been expensed are not subsequently recognized as intangible assets. Research and development expenditures are as follows: (in millions of euros) Full Year 2025 Full Year 2024 Research and development expenditures in costs of sales (648) (594) Research and development expenditures in R&D costs * (1,365) (1,308) Capitalized development costs (367) (358) TOTAL RESEARCH AND DEVELOPMENT EXPENDITURES ** (2,380) (2,260) * Net of EUR 52 million of research and development tax credit in full year 2025 and EUR 46 million in full year 2024 ** Excluding amortization of capitalized development costs In addition to the research and development expenditures, amortization expenses of capitalized development costs booked in cost of sales, amounted to EUR 234 million in 2025 and EUR 232 million in 2024. 16 Schneider Electric | Consolidated financial statements 2025 se.com
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Note 6: Impairment losses, depreciation and amortization expenses Depreciation and amortization expenses and impairment losses on property, plant and equipment, goodwill and intangible assets are as follows: (in millions of euros) Full Year 2025 Full Year 2024 Depreciation, amortization and impairment included in cost of sales (595) (590) Depreciation, amortization and impairment included in selling, general and administrative expenses (617) (570) Impairment included in restructuring costs (19) - Amortization expenses of purchase accounting intangible assets (457) (406) Impairment losses of purchase accounting intangible assets - - IMPAIRMENT LOSSES, DEPRECIATION AND AMORTIZATION EXPENSES (1,688) (1,566) Note 7: Other operating income and expenses Accounting principles Material non–recurring operations that could affect operating performance readability are classified under “Other operating income and expenses”. They notably include: • gains or losses from the disposal of activities or groups of assets; • costs in relation with acquisitions or separation (advisors’ fee, costs from external experts involved in the due diligence process); • costs in relation with integration (one–off costs expensed in the next three years after acquisition, in relation with upgrade or modification of existing IT systems, to reach the Group standards); • significant provisions and impairment losses for property, plant and equipment and intangible assets; • provisions or costs relating to significant legal risks or litigations; • gain or loss related to the amendment, curtailment or settlement of a defined benefit plan. Other operating income and expenses are as follows: (in millions of euros) Full Year 2025 Full Year 2024 Gains/(losses) on assets disposals 5 6 Gains/(losses) on business disposals 20 110 Costs of acquisitions, integrations and separations (49) (96) Others (53) (107) OTHER OPERATING INCOME AND EXPENSES (77) (87) In 2025, the costs of acquisitions, integrations and separations are mainly related to the recent acquisitions or ongoing projects. “Others” mainly include some legal provisions. In 2024, the gains on business disposals mainly related to the revaluation of the Planon’s shares previously owned by the Group, following the acquisition of a controlling stake in 2024. The costs of acquisitions, integrations and separations are mainly related to the recent acquisitions and 2024 projects. “Others” mainly included EUR 104 million provision in relation to the French Competition Authority decision. Note 8: Other financial income and expenses Other financial income and expenses are as follows: (in millions of euros) Full Year 2025 Full Year 2024 Exchange gains and losses, net (47) 3 Net monetary gain/(loss) (IAS 29 Hyperinflation) (4) (23) Financial component of defined benefit plan costs (43) (44) Dividends received 3 4 Fair value adjustment of financial assets (22) (12) Financial interests - IFRS16 (62) (48) Effect of discounting & unwinding of discount (5) (16) Other financial expenses, net (18) (12) OTHER FINANCIAL INCOME AND EXPENSES (198) (148) F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 17se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 9: Income tax Accounting principles Income tax expense Current income tax is determined based on tax laws and regulations enacted or substantively enacted at the reporting date in each jurisdiction in which Group entities operate. The Group’s applicable tax rate corresponds to the weighted average of the theoretical tax rates in force in each country, with the weighting based on the profit generated in those jurisdictions. The average effective tax rate is determined as follows: current and deferred income tax expense divided by net profit before tax, excluding the share of profit of associates and net profit from discontinued operations. Provisions covering uncertainties over income tax treatment are presented under "Accrued taxes and payroll costs". Deferred taxes Deferred taxes are recognized for all temporary differences between the carrying amounts of assets and liabilities and their tax bases (except for temporary differences arising on initial recognition of goodwill), as well as for tax loss carryforwards and unused tax credits. Deferred taxes are measured using tax rates and tax laws enacted or substantively enacted by the end of the reporting period and expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled. The effects of changes in the current and deferred tax rates are recognized in the statement of income, except to the extent that they relate to items recognized in OCI or directly in equity. When the Group decides not to distribute profits retained by the subsidiary within the foreseeable future, no deferred tax liability is recognized. Deferred tax assets relating to future tax benefits arising from the utilization of tax loss carryforwards (including amounts that may be carried forward without time limit) are recognized only when it is probable that sufficient taxable profit will be available against which the losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Wherever the regulatory environment allows it, the Group entities taxfile consolidated tax returns. Schneider Electric SE files a consolidated tax return with its French subsidiaries held directly or indirectly through Schneider Electric Industries SAS. 9.1 – Analysis of income tax expense (in millions of euros) Full Year 2025 Full Year 2024 Current taxes (1,382) (1,599) Deferred taxes (73) 201 INCOME TAX EXPENSE (1,455) (1,398) 9.2 – Income tax expense by country market Full Year 2025 (in millions of euros) Western Europe of which France Asia-Pacific of which China North America of which USA Rest of the world Total Revenue by country market 9,316 2,240 10,497 4,607 15,438 13,818 4,901 40,152 in % 23% 6% 26% 12% 38% 34% 12% Income tax expense by country market* (189) (50) (611) (304) (549) (491) (106) (1,455) in % 13% 3% 42% 21% 38% 34% 7% * after reallocation of withholding taxes on dividends Full Year 2024 (in millions of euros) Western Europe of which France Asia-Pacific of which China North America of which USA Rest of the world Total Revenue by country market 8,993 2,137 10,347 4,670 13,850 12,108 4,963 38,153 in % 24% 6% 27% 12% 36% 32% 13% Income tax expense by country market* (234) (44) (582) (280) (457) (409) (125) (1,398) in % 17% 3% 42% 20% 33% 29% 9% * after reallocation of withholding taxes on dividends 18 Schneider Electric | Consolidated financial statements 2025 se.com
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9.3 – Tax reconciliation (in millions of euros) Full Year 2025 Full Year 2024 Profit attributable to owners of the parent 4,163 4,269 Income tax expense (1,455) (1,398) Non-controlling interests (188) (170) Share of profit of associates 14 17 Impairment of investments in associates (388) (220) Profit before tax 6,180 6,040 Geographical weighted average Group tax rate 23.9% 24.1% Theoretical income tax expense (1,476) (1,454) Reconciling items: Tax credits and other tax reductions 166 198 Impact of tax losses 8 25 Withholding taxes (84) (120) Other elements without tax bases (current or deferred) (28) (58) Other permanent differences (41) 11 INCOME TAX EXPENSE (1,455) (1,398) EFFECTIVE TAX RATE 23.5% 23.1% 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). 9.4 – Deferred taxes by nature Deferred taxes by type can be analyzed as follows: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Tax loss carryforwards (net) 666 622 Provisions for pensions and other post-retirement benefit obligations (net) 223 233 Non-deductible provisions and accruals (net) 411 483 Differences between tax and accounting depreciation on tangible assets (net) (48) (35) Differences between tax and accounting amortization on intangible assets (net) (812) (719) Differences on working capital (net) 201 262 Other deferred tax assets/(liabilities) (net) 113 138 TOTAL NET DEFERRED TAX ASSETS/(LIABILITIES) 754 984 of which total deferred tax assets 1,567 1,794 of which total deferred tax liabilities 813 810 Deferred tax assets recorded in respect of tax losses carried forward on December 31, 2025 essentially concern France (EUR 403 million). These deficits can be carried forward indefinitely, and have been activated using the rate of 25.83%, in accordance with the applicable rate in the expected consumption horizon of 7 years. Unrecognized deferred tax losses amount EUR 104 million as of December 31, 2025 compared to EUR 116 million as of December 31, 2024. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 19se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 10: Impairment of assets Accounting principles The Group assesses the recoverability of its long-lived assets as follows: • For all depreciable property, plant and equipment and amortizable intangible assets, the Group reviews at each reporting date whether there is any indication of impairment based on external and internal sources of information. Where such indicators exist, the Group performs an impairment test. – For capitalized development projects integrated in sold offers, deviations from the business plan of selected quantitative indicators (such as revenue, volumes, prices and costs) and qualitative indicators (such as market changes, strategic turnarounds, changes in R&D roadmap priorities, etc.) are considered impairment indicators that trigger an impairment test; – Prior to commercial launch, capitalized development projects are tested for impairment at least annually. • Indefinite-lived trademarks and goodwill are tested for impairment annually and whenever events or changes in circumstances indicate that the assets may be impaired. Goodwill impairment tests are performed at the level of the CGUs (or groups of CGUs) to which goodwill is allocated. Indefinite-lived trademarks (mainly APC) are allocated to the group of CGUs to which they contribute cash inflows and are assessed for impairment as part of the CGU impairment test. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent from the cash inflows of other assets or groups of assets. The groups of CGUs are Low Voltage, Medium Voltage, Secure Power, Sustainability, EM Software, Industrial Automation and Industrial Automation Software. Net assets are allocated to groups of CGUs at the lowest possible level, based on the activities of the group of CGUs to which they relate. Where the recoverable amount of a CGU or a long-lived asset is lower than its carrying amount, an impairment loss is recognized for the excess of the carrying amount over the recoverable amount. The recoverable amount is the higher of value in use and fair value less costs to sell. When the tested CGU comprises goodwill, any impairment losses are firstly deducted from goodwill. Value in use is determined by discounting the future cash flows expected to be generated by the assets tested. Those cash flows are based on Group management’s economic assumptions and operating forecasts included in business plans, generally covering a period not exceeding five years, and are subsequently extrapolated using a perpetual growth rate. The discount rate applied corresponds to the weighted average cost of capital (WACC) at the measurement date. It stood at 9.0% at December 31, 2025 and December 31, 2024 for the Group. The WACC is determined on the following principal assumptions: • a long-term interest rate of 2.7%, corresponding to the 10- year euro mid-swap rate; • the average premium applied to financing obtained by the Group in 2025; • the weighted country risk premiums for the Group’s activities in the relevant countries. 10.1 – Main items of goodwill Goodwill is broken down by groups of Cash Generating Units (CGUs) as follows, with long–term growth rates and WACC used for annual impairment test: (in millions of euros) LTG WACC Dec. 31, 2025 LTG WACC Dec. 31, 2024 Energy Management: 15,282 15,356 Low Voltage 2.0% 9.2% 7,496 2.0% 9.0% 7,904 Medium Voltage 2.0% 8.9% 3,723 2.0% 9.0% 3,858 Secure Power 2.0% 8.9% 3,567 2.0% 9.0% 3,068 Other 2.0% to 3.0% 8.2% to 8.9% 496 2.0% to 3.0% 8.0% to 9.1% 526 Industrial Automation: 9,860 10,925 Industrial Automation 2.0% 9.5% 5,482 2.0% 9.2% 6,113 Industrial Automation Software 3.0% 9.1% 4,378 3.0% 9.1% 4,812 TOTAL GOODWILL 25,142 26,281 The Group performed the annual impairment test of all the groups of CGUs’ assets using the same methodology as the one used on previous periods and described in the accounting principles. Impairment tests performed in 2025 indicated that no impairment loss was required on the groups of CGUs’ assets. The sensitivity analysis on the test’s main assumptions shows that no impairment losses would be recognized in each of the following scenarios, for each group of CGUs: • a 0.5 point increase of the discount rate; • a 1.0 point decrease in the growth rate; • a 0.5 point decrease in the margin rate. 20 Schneider Electric | Consolidated financial statements 2025 se.com
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10.2 – Climate–related matters In 2025, the Group relied on advanced modeling tools to evaluate the potential impact of climate–related matters and physical risks on fixed assets over the Group future cash flows. This risk assessment covered a broad spectrum of risks as outlined below: • Policy: Legislation that are or could be enacted by governments to price and penalize Greenhouse gas (GHG) emissions; • Market consumer: Consumer preferences could shift towards sustainable alternative products and services, transforming market demand; • Technology: Disruptive lower–carbon technology could change in key economic sectors and risks to carbon intensive assets and operations; • Liability: Litigation that could be brought by plaintiffs against companies for their liabilities in causing harm from climate change; • Investor: Investors prioritize returns from lower–carbon companies, driving cost of capital and valuation changes; • Reputation: Customer sentiment could be influenced by company’s actions to address climate change risk; • Physical risk: Key facility operational risk and physical asset damage due to extreme weather. Results of the risk assessment are showing that most of those risks do not have a significant impact on the Group future cash flows. The most impactful risk would be the Policy risk. To evaluate this particular risk, external experts considered the Group scope 1, 2 and 3 GHG emissions by country and projected them over a 10-year period (based on growth of the business) multiplied by current and projected country–level carbon pricing data, taken from several databases (including IEA, WB, NGFS), and projected across various climate futures based on academic research. Political risk primarily affects our scope 3 emissions, which in turn impacts our future cash flows through an increase in our cost of sales (upstream) combined with a drop in demand (downstream). However, the model, being conservative, is not considering any upside from the Group’s strong long–term position to meet the increasing demand of organizations making meaningful progress on their energy transition and decarbonization goals, neither the actions taken by the Group to decarbonate its value chain. In addition, the Group also considered the impact on future cash flows of its commitments to be “net–zero ready” in its operation (scopes 1 and 2) by 2030 and net–zero across the whole value chain by 2050. Considering the above risk assessment and its commitments, the Group has performed a sensitivity analysis to our impairment tests at groups of CGUs level and did not identify impairment risk on its assets. Note 11: Goodwill The main movements during the year are summarized as follows: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Net goodwill at opening 26,281 24,664 Acquisitions 997 616 Disposals (8) (4) Reclassifications - 24 Translation adjustment (2,128) 981 NET GOODWILL AT END OF YEAR 25,142 26,281 including cumulative impairment losses (372) (371) Acquisitions & Disposals Movements from acquisitions and disposals are described in Note 2. Other changes Translation adjustments mainly concern goodwill denominated in US dollar. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 21se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 12: Intangible assets Accounting principles Intangible assets acquired separately are initially recognized at cost and are subsequently measured using amortized cost. Intangible assets (primarily trademarks, technologies and customer relationships) acquired as part of a business combination are recognized at fair value at the acquisition date. For the most significant assets, fair values are determined with support from external experts; for other assets, valuations are performed internally. Valuations are performed using generally accepted techniques, based on expected future cash inflows. The trademarks fair value is determined using the relief from royalty method. Development expenditures for new projects are capitalized when the recognition criteria in IAS 38 are met. From the date of commercial launch, capitalized development costs are amortized over the useful life of the underlying technology. The related amortization expense is included in the cost of the products concerned and recognized within "Cost of sales" when the products are sold. External and internal costs associated with the implementation of Enterprise Resource Planning (ERP) applications are capitalized when they relate to the programming, coding and testing phase. They are amortized over the useful lives of the related applications. The Group does not capitalize software provided under a SaaS model, as the underlying application is not controlled by the Group. Related costs are therefore expensed unless they create a separate identifiable asset controlled by the Group. Intangible assets are generally amortized on a straight-line basis over their useful lives or, where relevant, over the period of legal protection. Trademarks acquired in a business combination are not amortized when they are determined to have an indefinite useful life. The criteria used to determine whether or not such trademarks have indefinite lives and, as the case may be, their lifespan, are as follows: • brand awareness; • outlook for the brand in light of the Group’s strategy for integrating the trademark into its existing portfolio. Useful lives are generally as follows: • Acquired technologies: 8 to 10 years • Development projects: 3 to 10 years • Customer relationships: 10 to 20 years • Trademarks: 7 to 10 years or indefinite Amortization expenses and impairment losses on intangible assets acquired in a business combination are presented on a separate line in the statement of income, “Amortization and impairment of purchase accounting intangibles”. 12.1 – Change in intangible assets Gross value (in millions of euros) Trademarks Software Development Projects (R&D) Acquired technologies and customer relationships Other Total Dec. 31, 2023 2,871 1,214 4,148 4,536 292 13,061 Acquisitions - 111 358 - - 469 Disposals (6) (15) (69) - (20) (110) Translation adjustments 126 17 54 227 17 441 Reclassifications 6 (36) 16 55 11 52 Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other 45 3 - 388 10 446 Dec. 31, 2024 3,042 1,294 4,507 5,206 310 14,359 Acquisitions - 101 369 1 - 471 Disposals (3) (58) (90) (7) (28) (186) Translation adjustments (283) (38) (156) (502) (38) (1,017) Reclassifications - 17 (12) 1 15 21 Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other 43 (1) (1) 324 150 515 Dec. 31, 2025 2,799 1,315 4,617 5,023 409 14,163 22 Schneider Electric | Consolidated financial statements 2025 se.com
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Amortization and impairment (in millions of euros) Trademarks Software Development Projects (R&D) Acquired technologies and customer relationships Other Total Dec. 31, 2023 (574) (943) (2,912) (2,579) (216) (7,224) Amortization (40) (72) (233) (361) (10) (716) Impairment - - (19) - - (19) Reversals 6 15 65 - 20 106 Translation adjustments (4) (11) (35) (137) (4) (191) Reclassifications - - - (38) - (38) Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other - - - 10 (7) 3 Dec. 31, 2024 (612) (1,011) (3,134) (3,105) (217) (8,079) Amortization (44) (85) (234) (393) (25) (781) Impairment - - (19) - - (19) Reversals 3 56 96 7 29 191 Translation adjustments 19 29 108 295 12 463 Reclassifications - - - - - - Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other - 1 - - (1) - Dec. 31, 2025 (634) (1,010) (3,183) (3,196) (202) (8,225) Net value (in millions of euros) Trademarks Software Development Projects (R&D) Acquired technologies and customer relationships Other Total Dec. 31, 2023 2,297 271 1,236 1,957 76 5,837 Dec. 31, 2024 2,430 283 1,373 2,101 93 6,280 Dec. 31, 2025 2,165 305 1,434 1,827 207 5,938 12.2 – Trademarks On December 31, 2025, the main trademarks recognized were as follows: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 APC (Secure Power) 1,565 1,770 Asco (Low Voltage) 106 120 Clipsal (Low Voltage) 102 114 OSIsoft (Industrial Automation Software) 80 107 Aveva (Industrial Automation Software) 87 92 Invensys - Triconex and Foxboro (Industrial Automation) 47 53 Motivair (Secure Power) 35 - Digital (Industrial Automation) 30 33 Planon (Medium Voltage) 28 32 Lauritz Knudsen (Low Voltage) 13 25 Other 72 84 TRADEMARKS NET BOOK VALUE 2,165 2,430 F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 23se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 13: Property, plant and equipment Accounting principles Property, plant and equipment Property, plant and equipment are carried at cost, net of accumulated depreciation and accumulated impairment losses, if any. Property, plant and equipment are depreciated on a straight- line basis over their useful lives, as follows: • Buildings: 20 to 40 years; • Machinery and equipment: 3 to 10 years; • Other: 3 to 12 years. The useful lives of property, plant and equipment used in operating activities, such as production lines, reflect the estimated life cycles of the related products. Each significant component of an asset is identified and depreciated separately when it has a useful life that differs from that of the asset as a whole. The useful lives of property, plant and equipment are reviewed regularly and adjusted prospectively when necessary. The depreciable amount of an asset is determined after deducting its residual value, where such residual value is considered material. Depreciation is recognised in the period in which it is incurred and included in the production cost of inventories or in the cost of internally generated intangible assets. It is recorded in the statement of income within "Cost of sales", "Research and development costs" or "Selling, general and administrative expenses", as applicable. Leases Scope of the Group’s contracts The lease contracts identified across the Group primarily relate to the following categories: • Real estate, including office buildings, factories and warehouses; • Vehicles, such as cars and trucks; • Material-handling equipment, including forklifts mainly used in factories or storage facilities. The Group applies the recognition exemptions for low-value assets (i.e. assets with an individual value of less than USD 5,000) and for short-term leases (i.e. leases of less than 12 months without a purchase option). Lease liabilities At the commencement date of a lease, the Group recognizes a lease liability, measured at the present value of lease payments to be made over the lease term. The present value is determined principally using the incremental borrowing rate of the contracting entity’s country, reflecting a maturity consistent with the lease term and a payment profile similar to the lease payments. Subsequent to commencement, the lease liability is increased to reflect interest accretion and reduced for lease payments made. The carrying amount of the lease liability is remeasured in the event of a reassessment or modification of the lease (e.g. changes in lease term, changes in lease payments, application of annual indexation, etc.). Lease liabilities are presented within other current and other non-current liabilities. Right-of-use assets Right-of-use assets are recognized at the lease commencement date (i.e. the date on which the underlying asset is available for use). They are measured at cost, less accumulated depreciation and impairment losses, and adjusted for remeasurement of the lease liability. Right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life of the underlying asset and the lease term. Lease terms Real estate lease terms vary by country and local regulations. Vehicles and forklifts are generally leased for periods ranging from 3 to 6 years. In most cases, the lease term corresponds to the enforceable term of the real estate contracts, particularly for the most strategic buildings and factories. 24 Schneider Electric | Consolidated financial statements 2025 se.com
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Gross value (in millions of euros) Land Buildings Machinery and equipments Other Rights of use of Assets (IFRS 16) Total Dec. 31, 2023 161 2,074 4,945 1,612 2,360 11,152 Acquisitions 15 21 81 838 574 1,529 Disposals (2) (59) (175) (76) (201) (513) Translation adjustments 4 16 99 35 36 190 Reclassifications 2 185 434 (635) (51) (65) Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other - 2 (23) 3 9 (9) Dec. 31, 2024 180 2,239 5,361 1,777 2,727 12,284 Acquisitions 1 21 78 1,004 736 1,840 Disposals (2) (71) (276) (88) (174) (611) Translation adjustments (13) (91) (283) (127) (162) (676) Reclassifications 5 230 470 (752) 91 44 Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other (1) (4) (11) (10) 12 (14) Dec. 31, 2025 170 2,324 5,339 1,804 3,230 12,867 Depreciation and impairment (in millions of euros) Land Buildings Machinery and equipments Other Rights of use of Assets (IFRS 16) Total Dec. 31, 2023 (19) (1,210) (3,784) (573) (1,357) (6,943) Depreciation (1) (103) (277) (76) (365) (822) Impairment - - (4) (5) - (9) Reversals - 45 161 54 158 418 Translation adjustments (1) (16) (72) (16) (16) (121) Reclassifications (1) - 24 (14) 52 61 Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other - (2) 18 (2) 2 16 Dec. 31, 2024 (22) (1,286) (3,934) (632) (1,526) (7,400) Depreciation (2) (105) (316) (75) (373) (871) Impairment - (6) (8) (3) - (17) Reversals - 59 264 72 154 549 Translation adjustments 2 54 184 41 64 345 Reclassifications (2) (7) 11 6 (34) (26) Reclassifications to assets held for sale - - - - - - Changes in scope of consolidation and other - 5 28 7 (6) 34 Dec. 31, 2025 (24) (1 286) (3 771) (584) (1 721) (7 386) Net value (in millions of euros) Land Buildings Machinery and equipments Other Rights of use of Assets (IFRS 16) Total Dec. 31, 2023 142 864 1,161 1,039 1,003 4,209 Dec. 31, 2024 158 953 1,427 1,145 1,201 4,884 Dec. 31, 2025 146 1,038 1,568 1,220 1,509 5,481 Reclassifications primarily correspond to assets put into use. The cash impact of purchases of property, plant and equipment was as follows: (in millions of euros) Full Year 2025 Full Year 2024 Increase in property, plant and equipment (1,840) (1,529) Of which non-cash impact related to IFRS 16 736 574 Changes in receivables and liabilities on property, plant and equipment 32 5 TOTAL (1,072) (950) F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 25se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements IFRS 16 debt by maturity: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 2025 - 236 2026 292 246 2027 261 187 2028 204 134 2029 155 94 2030 122 75 2031 99 64 2032 88 52 2033 and beyond 333 191 TOTAL 1,554 1,279 Note 14: Investments in associates and joint ventures Accounting principles Under the equity method, investments in associates and joint ventures are initially recognized at cost and subsequently adjusted to reflect the Group’s share of the investee’s net income, dividend and other comprehensive income. Goodwill relating to an associate or joint venture is included in the carrying amount of the investment. When the Group’s share of losses of an equity-accounted investee exceeds the carrying amount of the investment, the Group discontinues recognizing its share of further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the investee. Investments in associates and joint ventures can be analyzed as follows: (in millions of euros) Delixi Group Uplight Planon Fuji Electrics Sunten Electric Equipment Other Total % of interest Dec. 31, 2024 50.0% 43.5% 80.0% 36.8% 25.0% Dec. 31, 2025 50.0% 43.5% 80.0% 36.8% 25.0% CLOSING VALUE DEC. 31, 2023 487 388 115 142 34 40 1,206 Net Income/(loss) 54 (51) - 14 2 (2) 17 Impairment of investments in associates - (220) - - - - (220) Dividends distribution (19) - - (13) (1) (1) (34) Perimeter changes - 229 (115) - - (27) 87 Translation impacts & others 16 38 - (4) 1 4 55 CLOSING VALUE DEC. 31, 2024 538 384 - 139 36 14 1,111 Net Income/(loss) 44 (38) - 4 6 (2) 14 Impairment of investments in associates - (299) - - - - (299) Dividends distribution (31) - - (5) (3) (2) (41) Perimeter changes - - - - - - - Translation impacts & others (37) (47) - (15) (3) 22 (80) CLOSING VALUE DEC. 31, 2025 514 - - 123 36 32 705 Following updated investee-specific financial information and market-based inputs, the Group recognised a EUR (299) million impairment of its equity-accounted investment in Uplight, reducing its carrying amount to nil. The Group also recognised EUR (55) million of expected credit losses on convertible notes issued by the investee which are presented in "Non-current financial assets". These amounts, recorded in “Impairment of investments in associates”, are non-cash and reflect revised cash-flow expectations. 26 Schneider Electric | Consolidated financial statements 2025 se.com
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14.1 – Main entities consolidated under the equity method: Delixi Electric Ltd. In 2007, Schneider Electric joined Delixi Group to establish a win–win partnership in a joint–venture, Delixi Electric Ltd., aka “Delixi Electric”. Delixi Electric, based in China, is specialist in manufacturing, retail and distribution of low voltage products. The key financial indicators for the Delixi Electric subgroup (on a 100% basis) are as follows: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Non-current assets 655 754 Current assets 663 531 of which cash and cash equivalents 252 182 TOTAL ASSETS 1,318 1,285 Equity 711 737 Non-current liabilities 18 22 Current liabilities 589 526 TOTAL EQUITY AND LIABILITIES 1,318 1,285 Revenue 1,351 1,371 Adjusted EBITA 149 145 PROFIT FOR THE YEAR 88 108 Dividends paid 62 38 F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 27se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 15: Non–current financial assets Accounting principles Equity instruments are initially recognized at cost and subsequently measured at fair value. IFRS 9 permits two accounting treatments for equity instruments, other than those held for trading: • Changes in fair value are recognized in OCI, with no subsequent recycling in the statement of income even upon disposal; or • Changes in fair value, as well as gains or losses on disposal, are recognized in the statement of income. The election between these two methods is made at initial recognition for each equity instrument and is irrevocable. For significant unlisted investments for which no active market exists, fair values are determined with support from external experts at each reporting date. Venture capital investments (SE Ventures investments in funds, FCPR) and mutual funds (SICAV) are measured at fair value through statement of income, in accordance with IFRS 9. Non–current financial assets, primarily comprising investments, are detailed below: Dec. 31, 2024 Dec. 31, 2025 (in millions of euros) % interest Fair value Acquisitions Disposals Fair value through P&L Fair value through Equity Translation adjustments & Other Fair Value LISTED FINANCIAL ASSETS: Gold Peak Industries Holding Ltd 3.2% 2 - - - - 2 Others (Unit fair value lower than EUR 3 million) 13 - - - - 13 TOTAL LISTED FINANCIAL ASSETS 15 - - - - 15 UNLISTED FINANCIAL ASSETS: Funds SE Ventures Funds of Funds in Portfolio 103 5 (10) - (11) 87 Sensetime & Stalagnate Fund China 33.1% 64 (2) 2 - (3) 61 FCPR Aster II (part A, B and C) - 19 (4) (15) - - - SICAV SESS 99.9% 12 - - - - 12 FCPI Energy Access Ventures Fund 28.6% 18 - - - (1) 17 Others (Unit fair value lower than EUR 10 million) 14 2 - - 3 19 Direct investments SE Ventures - Claroty 4.4% 88 - - 3 (11) 80 SE Ventures - Verkor 2.8% 45 - - (5) (5) 35 SE Ventures - Augury 2.6% 25 2 - - (2) 25 SE Ventures - Sense Labs 13.0% 23 - - - (3) 20 SE Ventures - Scandit 2.4% 19 - - (4) (2) 13 SE Ventures - AiDash 7.6% 14 - - 3 (2) 15 SE Ventures - Fabric8Labs 5.7% 8 1 - 4 (1) 12 SE Ventures (Unit fair value lower than EUR 10 million) 144 49 - (24) (18) 151 Nozomi Networks 6.3% 75 - - (17) (8) 50 Star Charge 1.3% 38 - - - (3) 35 Others (Unit fair value lower than EUR 10 million) 35 2 1 - (2) 36 TOTAL UNLISTED FINANCIAL ASSETS 744 55 (22) (40) (69) 668 PENSIONS ASSETS 323 4 - (66) - 261 OTHER 519 299 (69) (10) (50) 689 TOTAL NON-CURRENT FINANCIAL ASSETS 1,601 358 (91) (116) (119) 1,633 The fair value of investments listed in an active market corresponds to the stock price on the balance sheet date. “Other” include mainly convertible bonds, insurance recoveries, contributions to US employee deferred compensation trusts (“rabbi trusts”) as well as EUR 207 million relative to the fine paid to the French Competition Authority (“Autorité de la concurrence”) described in Note 22. “SE Ventures” is a corporate venture capital fund created in partnership with Schneider Electric. SE Ventures current portfolio is composed of direct investments in various start–up companies and funds of funds. 28 Schneider Electric | Consolidated financial statements 2025 se.com
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Note 16: Inventories Accounting principles Inventories are measured at the lower of cost (purchase cost or production cost, generally determined using the weighted- average cost method and, in certain cases, the first-in, first-out (FIFO) method) and estimated net realizable value. The cost of work in progress, semi-finished and finished goods comprises the cost of materials and direct labor, subcontracting costs, production overheads allocated on the basis of normal production capacity, and the portion of development costs that relates directly to the manufacturing process. The risk of impairment is assessed based on historical or forecast consumption and with consideration of: • Inventory turnover • The strategic nature of the inventory • The phasing in or phasing out of inventory Inventories changed as follows: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 COST: Raw materials 2,524 2,721 Production work in progress 365 351 Semi-finished and finished products 1,913 1,807 Finished goods 1,019 1,010 Solution work in progress 235 244 INVENTORIES AT COST 6,056 6,133 IMPAIRMENT: Raw materials (443) (468) Production work in progress (9) (10) Semi-finished and finished products (209) (224) Finished goods (20) (12) Solution work in progress (7) (8) IMPAIRMENT LOSSES (688) (722) NET: Raw materials 2,081 2,253 Production work in progress 356 341 Semi-finished and finished products 1,704 1,583 Finished goods 999 998 Solution work in progress 228 236 INVENTORIES 5,368 5,411 Note 17: Trade and other operating receivables Accounting principles Trade and other receivables are initially recognized at their transaction price and subsequently measured at amortized cost, net of impairment losses recognized under the expected credit loss (ECL) model. Trade and other operating receivables are impaired using the simplified approach under IFRS 9. From initial recognition, trade receivables are provided for based on lifetime expected credit losses. Credit risk on trade receivables is assessed collectively on a country-by-country basis, as the geographical origin of receivables is considered representative of their risk profiles. Countries are assigned risk profiles based on assessments provided by an external agency. The ECL allowance is determined using (i) probabilities of default communicated by a credit agency, (ii) historical default rates, (iii) aging balance, and (iv) the Group’s assessment of credit risk considering actual guarantees and credit insurance. When it is determined with certainty that a doubtful receivable will not be collected, the receivable and the related allowance are written off through the statement of income. Assignment of receivables Where the Group can demonstrate that it has transferred substantially all of the risks and rewards associated with assigned receivables, in particular credit risk, the receivables are derecognized. Otherwise, the transaction is accounted for as a financing arrangement, and the receivables remain recognized as assets, with a corresponding financial liability. Contract assets and liabilities For each contract, the cumulative revenue recognized, less received payments and issued invoices is determined on a contract-by-contract basis. Where this amount is positive, it is recognized as “contract assets”; where it is negative, it is recognized as “contract liabilities”. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 29se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Accounts receivable 7,038 7,024 Unbilled revenue 2,740 2,244 Notes receivable 183 256 Advances to suppliers 192 204 Trade and other operating receivables at cost 10,153 9,728 Impairment (317) (364) TRADE AND OTHER OPERATING RECEIVABLES 9,836 9,364 Dec. 31, 2025 Dec. 31, 2024 (in millions of euros) Trade and other operating receivables at cost Impairment Trade and other operating receivables Trade and other operating receivables at cost Impairment Trade and other operating receivables On time 8,924 (55) 8,869 8,391 (76) 8,315 Less than one month past due 485 (6) 479 538 (6) 532 One to two months past due 204 (5) 199 204 (8) 196 Two to three months past due 115 (5) 110 133 (6) 127 Three to four months past due 76 (10) 66 83 (9) 74 More than four months past due 349 (236) 113 379 (259) 120 TOTAL 10,153 (317) 9,836 9,728 (364) 9,364 Non–recourse factoring of trade receivables led to the derecognition of those receivables for EUR 345 million as of December 31, 2025, compared to EUR 343 million as of December 31, 2024. Substantially all risks and rewards have been transferred. Accounts receivable result from sales to end–customers, who are widely spread both geographically and economically. Consequently, the Group believes that there is no significant concentration of credit risk. In addition, the Group takes out substantial credit insurance and uses other types of guarantees to limit the risk of losses on trade accounts receivable. Changes in provisions for impairment of short and long–term trade accounts receivable were as follows: (in millions of euros) Full Year 2025 Full Year 2024 Provisions for impairment at opening balance (364) (373) Additions (154) (173) Utilizations 80 83 Reversal of surplus provisions 87 95 Translation adjustments 30 (8) Changes in scope of consolidation and other 4 12 PROVISIONS FOR IMPAIRMENT AT CLOSING BALANCE (317) (364) The contracts assets and liabilities, respectively reported within the “Trade and other operating receivables” and “Trade and other operating payables”, are as follows: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Contract assets (Unbilled revenue) 2,740 2,244 Contract liabilities (Deferred revenue) (3,542) (3,102) NET CONTRACT ASSETS (802) (858) Contract assets increase is linked to an increase of activity on long term contracts, notably data centers, where invoicing milestone are not yet achieved. Contract liabilities increase is linked to new contracts signed in 2025 with large upfront milestone payment received, in excess of revenue recognized as of December 31, 2025, notably on data centers contracts. 30 Schneider Electric | Consolidated financial statements 2025 se.com
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Note 18: Other receivables and prepaid expenses (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Other receivables 520 601 VAT receivables 498 638 Current income tax receivables 462 528 Other tax receivables 35 47 Derivative instruments 276 131 Prepaid expenses 409 385 OTHER RECEIVABLES AND PREPAID EXPENSES 2,200 2,330 Note 19: Cash and cash equivalents Accounting principles Cash and cash equivalents presented in the consolidated balance sheet comprise cash on hand, bank accounts, term deposits with original maturities of three months or less, and marketable securities traded in organized markets. Marketable securities are short-term, highly liquid investments that are readily convertible to known amounts of cash at maturity. They notably include bank deposits, commercial paper, mutual funds and similar instruments. Given their nature and maturities, these instruments have an insignificant risk of changes in value and are therefore treated as cash equivalents. (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Marketable securities 1,819 3,978 Negotiable debt securities and short-term deposits 813 1,027 Cash * 2,002 1,882 Total cash and cash equivalents 4,634 6,887 Bank overdrafts (47) (75) NET CASH AND CASH EQUIVALENTS 4,587 6,812 * Cash includes interest-bearing bank accounts. Note 20: Shareholder’s equity 20.1 – Share capital The company’ share capital on December 31, 2025 amounted to EUR 2,308,490,048 represented by 577,122,512 shares with a par value of EUR 4, all fully paid up. On December 31, 2025, a total of 603,755,105 voting rights were attached to the 577,122,512 issued shares. Schneider Electric’s capital management strategy is designed to: • ensure Group liquidity; • optimize its financial structure; • optimize the weighted average cost of capital. The strategy must also ensure the Group has access to different capital markets under the best possible conditions. Factors taken into account for decision–making purposes include objectives expressed in terms of earnings per share, ratings or balance sheet stability. Finally, decisions may be implemented depending on specific market conditions. Changes in share capital and cumulative number of shares Changes in share capital since December 31, 2023 were as follows: (in number of shares and in euros) Cumulative number of shares Share capital SHARE CAPITAL AT DEC. 31, 2023 572,835,884 2,291,343,536 Cancellation of own shares - - Capital increase 2,795,792 11,183,168 SHARE CAPITAL AT DEC. 31, 2024 575,631,676 2,302,526,704 Cancellation of own shares - - Capital increase 1,490,836 5,963,344 SHARE CAPITAL AT DEC. 31, 2025 577,122,512 2,308,490,048 F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 31se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements In 2025, the additional paid-in capital decreased by EUR (509) million following the below operations: • Employee share ownership plan: in 2025, it represented a capital increase of EUR 271 million, of which EUR 265 million of additional paid-in capital (refer to Note 20.4); • Dividends distribution: in 2025, Schneider Electric SE distributed its share premium for EUR (774) million. 20.2 – Earnings per share Accounting principles Earnings per share is calculated in accordance with IAS 33 - Earnings Per Share. Diluted earnings per share is calculated by adjusting the profit attributable to equity holders of the parent and the weighted average number of shares outstanding for the dilutive effect of instruments outstanding at the reporting date, such as performance shares and convertible bonds (OCEANEs). The dilutive effect of performance shares is determined using the treasury stock method, while the potential dilution from OCEANEs is assessed by assuming their conversion into ordinary shares at the beginning of the period (or at issuance date if later), with the profit adjusted to eliminate related interest expense, net of tax, and the weighted average number of shares increased accordingly. (in thousands of shares and in euros per share) Full Year 2025 Full Year 2024 Basic Diluted Basic Diluted Issued shares (Net of treasury shares) 562,186 562,186 560,716 560,716 Performance shares - 2,280 - 2,702 Bonds convertible into shares - 6,050 - 5,667 WEIGHTED AVERAGE NUMBER OF SHARES 562,186 570,516 560,716 569,085 Earnings per share before tax 10.99 10.88 10.77 10.65 EARNINGS PER SHARE 7.41 7.33 7.61 7.53 20.3 – Dividends paid and proposed In 2025, the Group paid out the 2024 dividend of EUR 3.90 per share, for a total of EUR 2,191 million. At the Shareholders’ Meeting of May 7, 2026, shareholders will be asked to approve a dividend of EUR 4.20 per share for fiscal year 2025. On December 31, 2025, Schneider Electric SE had distributable reserves in an amount of EUR 2,802 million (versus EUR 4,183 million at December 31, 2024, not including profit for the year). 20.4 – Share-based payments Accounting principles The Group grants performance shares to senior executives and certain employees. These equity instruments are measured at fair value at the grant date, based on the market price adjusted for the expected dividend yield over the vesting period and adjusted for the achievement of market conditions. The Group uses the Monte Carlo method to estimate the achievement market vesting conditions linked with Relative Total Shareholder Return (TSR). The number of equity instruments granted may be adjusted during the vesting period to reflect the Group’s best estimate of the achievement of non-market vesting conditions. Share-based payments expenses are recognized with a corresponding increase in equity on a straight-line basis over the vesting period, generally three years. Nature and extent of existing share-based payments Rules governing the performance shares plans are as follows: • Adjusted earnings per share improvement rate; • Schneider Sustainability External and Relative Index (“SSERI”) (until 2023) or Carbon emissions reduction targets (since 2024); • TSR evolution against CAC 40 (until 2024) or STOXX Europe 50 (since 2025); • TSR evolution against a panel of peer companies; • service conditions (3 years); • lock-up period (0 or 1 year). 32 Schneider Electric | Consolidated financial statements 2025 se.com
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The main characteristics of these plans were as follows at December 31, 2025: LTIP 2022 LTIP 2023 LTIP 2024 LTIP 2025 Plan no. 40 & 41 42 44 & 45 46 & 47 41bis 42bis & 43 45bis 47bis 41ter 42ter 44bis & 45ter 47ter 42quater Date of Annual Shareholders' Meeting Apr. 25, 2019 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 May 5, 2022 Date of the grant by the Board Mar. 24, 2022 Mar. 28, 2023 Mar. 26, 2024 Mar. 26, 2025 July 27, 2022 May 4, 2023 July 30, 2024 July 30, 2025 Oct. 26, 2022 July 26, 2023 Nov 7, 2024 Oct. 29, 2025 Oct. 25, 2023 Vesting date Mar. 24, 2025 Mar. 28, 2026 Mar. 26, 2027 Mar. 26, 2028 July 27, 2025 May 4, 2026 July 30, 2027 July 30, 2028 Oct. 26, 2025 July 26, 2026 Nov 7, 2027 Oct. 29, 2028 Oct. 25, 2026 End of holding period Mar. 24, 2026 for May 4, 2027 for Mar. 26, 2028 for Mar. 26, 2029 for Plan 40 Plan 43 Plan 44 Plan 46 Nov 7, 2028 for Plan 44bis Fair value per share (in euros - weighted average) 126.6 124.2 186.3 201.5 Number of performance shares Outstanding as of Dec. 31, 2024 1,285,989 1,427,022 1,037,676 - 3,750,687 Granted in 2025 - - - 1,142,735 1,142,735 Delivered in 2025 (1,261,754) (1,299) (865) (141) (1,264,059) Canceled in 2025 (24,235) (89,310) (66,547) (30,217) (210,309) Outstanding as of Dec. 31, 2025 - 1,336,413 970,264 1,112,377 3,419,054 Schneider Electric SE has not created shares in 2025 to deliver vested plans but used existing treasury shares. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 33se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Worldwide Employee Share Ownership Plan ("WESOP") Every year, Schneider Electric gives its employees the opportunity to become group shareholders thanks to employee share issues. In countries that meet legal and fiscal requirements, the classic plan has been proposed to employees. Under the plan, employees may purchase Schneider Electric shares at a 15% discount to the price quoted for the shares on the stock market. Employees must then hold their shares for five years, except in certain cases provided for by law. On April 15, 2025, Schneider Electric gave its employees the opportunity to purchase shares at a price of EUR 182.86 per share, as part of its commitment to employee share ownership. This represented a 15% discount to the reference price of EUR 215.14 calculated as the average opening price quoted for the share during the 20 days preceding the Board of Directors decision to launch the employee share issue. Altogether, 1.5 million shares were subscribed, increasing the Company's equity by EUR 271 million, net of issuance fees, as of July 9, 2025. As of December 31, 2025, the share-based payment expense recorded in accordance with IFRS 2, measured by reference to the fair value of the discount, amounted to EUR 45 million, compared to EUR 64 million as of December 31, 2024. IFRS 2 expense The IFRS 2 expense is recorded under “Selling, general and administrative expenses” and breaks down as follows: (in million of euros) Full Year 2025 Full Year 2024 Group LTIP 157 163 WESOP discount 45 64 Other - 6 TOTAL 202 233 20.5 – Schneider Electric SE treasury shares Accounting principles Schneider Electric SE shares held by the parent company or by fully consolidated entities are measured at acquisition cost and deducted from equity. Gains/(losses) on the sale of treasury shares are recognized directly in retained earnings, net of tax. On December 31, 2025, the Group held 14,899,626 Schneider Electric shares in treasury stock, which have been recorded as a deduction from retained earnings. The Group has repurchased 1,503,680 shares for a total amount of EUR 341 million in 2025. 20.6 – Income tax recorded in equity Total income tax recorded in equity as of December 31, 2025 can be analyzed as follows: (in million of euros) Dec. 31, 2025 Dec. 31, 2024 Change in tax Cash-Flow hedges (11) 31 (42) Financial assets measured at FVOCI (21) (26) 5 Actuarial gains/(losses) on defined benefits obligations 183 187 (4) Other (3) (3) - TOTAL 148 189 (41) 20.7 – Non-controlling interests In 2025, the Group acquired the remaining 35% non-controlling interests of SEIPL from Temasek to reach full ownership. SEIPL was the main contributor of non-controlling interests. 34 Schneider Electric | Consolidated financial statements 2025 se.com
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Note 21: Pensions and other post-employment benefit obligations Accounting principles Depending on local practices and legislation, the Group’s subsidiaries participate in pensions, termination benefits, healthcare, life insurance and other benefits, as well as long- term benefit plans for active employees. Benefits paid under these plans depend on factors such as length of service, compensation levels and contributions to mandatory retirement programs. Defined contribution plans Contributions to defined contribution plans are recognized as an expense in the statement of income in the period in which they are payable and settle the Group’s obligation in full. As the Group has no further obligation beyond the contributions made, no provision is recognized in respect of these plans. In most jurisdictions, the Group participates in mandatory state plans, which are accounted for as defined contribution plans. Defined benefit plans Defined benefit obligations are measured using the projected unit credit method. Expenses recognized in the statement of income are presented as operating costs (service cost for services rendered in the period) and net financial income/(loss) (net interest on the defined benefit obligation and plan assets). The amount recognized in the consolidated balance sheet corresponds to the present value of the defined benefit obligation net of the fair value of plan assets. Measurements are performed by external actuaries. Where the measurement results in an asset, the recognized surplus is limited to the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions. Remeasurements arising from actuarial assumption changes and experience adjustments are recognized immediately in OCI. Past service costs are recognized in “Other operating income and expenses”. Other commitments Provisions are recognized and expenses recorded to cover the cost of providing healthcare benefits to certain Group retirees in Europe and the United States. The accounting policies applied to these plans are consistent with those applied to defined benefit pension plans. The Group also recognizes provisions in respect of seniority- related benefits for certain subsidiaries (primarily long service awards for its French subsidiaries). Actuarial gains and losses on these benefit obligations are recognized in profit or loss. Defined Contribution Pension Plans The Group policy regarding pensions is to propose defined contribution pension plans, including a contribution from the employer. This is the most common active benefit offered worldwide, including for example 401k in US and PERO in France. The contribution to these plans is booked as an operating cost and do not translate into any further obligation by the employer. Defined Benefit Pension Plans The Group’s main Defined Benefit pension plans are located in the United Kingdom (UK) and the United States (US). They respectively represent 66% (2024: 61%) and 6% (2024: 16%) of the Group’s total Defined Benefit Obligations (DBO) on pensions. The majority of benefit obligations under these plans, which represent 88% of the Group’s total commitment on December 31, 2025, are partially or fully funded through payments to external funds. These funds are never invested in Group assets. United Kingdom The Group companies operate several Defined Benefit pension plans in the UK. The main one is related to the Invensys Pension Scheme. Pensions payable to employees depend on average final salary and length of service within the Group. These plans are registered schemes under UK tax law and managed by independent Boards of Trustees. They are closed to new entrants, and for most of them, the vested rights were frozen as they have been replaced by Defined Contributions plans. These plans are funded by employer contributions, which are negotiated every three years based on plan valuations carried out by independent actuaries, so that the long-term financing services are ensured. In relation to risk management and asset allocation, the Board of Trustees’ aims of each plan are to ensure that it can meet its obligations to the plan’s beneficiaries both in the short and long-term. The Board of Trustees is responsible for the plan’s long-term investment strategy and defines and manages long-term investment strategies to reduce risks, including interest rate risks and longevity risks. A certain proportion of assets hedges the liability valuation change resulting from the interest rates evolution. Those assets are primarily invested in fixed income investments, particularly intermediate and longer-term instruments. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 35se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Following the agreement reached with the Trustee of the Invensys Pension Scheme on February 2014, Schneider Electric SE guaranteed all obligations of the Invensys subsidiaries which participate in the Scheme, up to a maximum amount of GBP 1.75 billion. At December 31, 2025, plan assets exceed the value of obligations subject to this guarantee and thus this guarantee cannot be called. Schneider UK pension plans contain provisions of pension called Guaranteed Minimum Pension (“GMP”). GMPs were accrued for individuals who subscribed to the State Second Pension prior to April 6, 1997. Historically, there was an inequality in the benefits between male and female members concerning GMP. A High Court case concluded on October 26, 2018, confirmed that all UK pension plans must equalize “GMPs” between men and women. There was a High Court ruling in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others in June 2023, and subsequent appeal outcome on 25 July 2024, which make void any amendment to the rules of a contracted-out pension scheme without required actuarial confirmation under Regulation 42(2) of the Occupational Pension Schemes (Contracting Out) Regulations 1996, for the pension plans in question. This validated that actuarial confirmations should have been provided for amendments made to contracted-out schemes benefits in the period between 6 April 1997 and 5 April 2016. The Trustees of the Plans and the Directors work closely together and take appropriate legal and professional advice when making amendments to the Plans’ rules. Since the appeal ruling, the Company has engaged its legal advisers as well as the Plans’ Trustee in order to consider the matter further in the context of the Schemes’s particular circumstances and that work is ongoing at this stage. At 31 December 2025, it is premature to determine conclusively whether any amendments to section 9(2B) rights were made to the Pension Schemes that were not in accordance with section 37 of the Pension Schemes Act 1993 requirements. As a result, it is not currently possible to reliably estimate if there is any potential impact to the defined benefit obligations of the Pension Schemes should any such amendments be found to be not in accordance with section 37 of the Pension Schemes Act 1993 requirements. United States The United States’ subsidiaries operate several Defined Benefit pension plans. These plans are closed to new entrants, frozen to future accruals and have been replaced by Defined Contributions plans. Pensions payable to employees depends on the average final salary and the length of service within the Group. Each year, the Group companies contribute a certain amount to the Defined Benefit pension plans. This amount is determined actuarially and is comprised of service costs, administrative expenses and payments toward any existing deficits. Since the plans are closed and frozen, there is generally no service cost component. The companies delegate various responsibilities to Pension Committees. These committees define and manage long-term investment strategies to reduce risks, including interest rate risks and longevity risks. A certain proportion of assets hedges the liability valuation change, resulting from the interest rates evolution. Those assets are primarily invested in fixed income investments, particularly intermediate and longer-term instruments. In June 2024, the Schneider Pension Plan purchased a Group Annuity Contract from high-quality insurer. As part of the buy-in contract, lump sums were offered to active and terminated participants. Lump sums were paid in December 2024 and February 2025, and this generated a credit of respectively USD 22 million and USD 6 million recognized through settlement. In May 2025, the buy-in contract was converted to buy-out contract in conjunction with the plan termination. All liabilities were transferred to the insurer with no further benefit obligation for Schneider. France The French subsidiaries offer a Retirement Benefit (ICDR) that can be either taken as a lump sum at retirement or as time off (partial or full) before retirement is effective. This benefit is calculated based on salary and years of services in company, according to the collective agreements and there is no funding requirement. 36 Schneider Electric | Consolidated financial statements 2025 se.com
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Assumptions Actuarial valuations are generally performed each year. The assumptions used vary according to the economic conditions prevailing in the country concerned, as follows: Group weighted average Of which United Kingdom Of which United States Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 Discount rate 5.00% 5.11% 5.40% 5.50% 5.11% 5.61% Rate of compensation increases 2.94% 2.71% 3.40% 3.51% n.a. n.a. The discount rate is determined based on the interest rate for investment-grade (AA) corporate bonds or, if a liquid market does not exist, government bonds with a maturity that matches the duration of the benefit obligation. In the United States, the average discount rate is determined based on a yield curve for AA and AAA investment-grade corporate bonds. In the Euro zone, the 2025 discount rate is 3.90% for the main plans. The rate of compensation increases includes both the salary increase and inflation rate if relevant. Weighted average duration of defined benefit obligations plans: Total Of which United Kingdom Of which United States Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2024 Weighted average duration in years 9.6 9.8 9.2 9.6 7.6 8.2 F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 37se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements 21.1 – Changes in provisions for pensions and other post-employment benefit obligations Annual changes in obligations, the market value of plan assets and the corresponding assets and provisions recognized in the financial statements can be analyzed as follows: (in millions of euros) Defined Benefit Obligation Plan assets Asset ceiling Net Liability Dec. 31, 2023 (6,490) 5,852 (178) (816) of which UK (4,018) 4,351 (130) 203 of which US (1,122) 937 - (185) of which France (353) 65 - (288) Service cost (67) - - (67) Past service cost (3) - - (3) Curtailments and settlements 125 (99) - 26 Interest cost (283) - (7) (290) Interest income - 246 - 246 Net impact in P&L, (expense)/profit (228) 147 (7) (88) of which UK (187) 187 (7) (7) of which US (34) 42 - 8 of which France (18) 2 - (16) Benefits paid 508 (431) - 77 Plan participants' contributions (6) 6 - - Employer contributions - 80 - 80 Changes in the scope of consolidation 11 - - 11 Actuarial gains/(losses) recognized in equity 223 (295) 33 (39) Translation adjustment (304) 309 (4) 1 Other changes (1) - - (1) Dec. 31, 2024 (6,287) 5,668 (156) (775) of which UK (3,846) 4,219 (99) 274 of which US (997) 835 - (162) of which France (359) 59 - (300) Service cost (100) - - (100) Past service cost (20) - - (20) Curtailments and settlements 553 (543) - 10 Interest cost (270) - (6) (276) Interest income - 233 - 233 Net impact in P&L, (expense)/profit 163 (310) (6) (153) of which UK (198) 200 (6) (4) of which US 519 (524) - (5) of which France (22) 2 - (20) Benefits paid 499 (395) - 104 Plan participants' contributions (6) 6 - - Employer contributions - 54 - 54 Changes in the scope of consolidation - - - - Actuarial gains/(losses) recognized in equity (16) (64) 35 (45) Translation adjustment 312 (289) 4 27 Other changes 1 - - 1 Dec. 31, 2025 (5,334) 4,670 (123) (787) of which UK (3,517) 3,804 (77) 210 of which US (341) 198 - (143) of which France (336) 51 - (285) The Group defined benefit obligations of EUR 5,334 million (2024: EUR 6,287 million) are broken down as EUR 5,167 million (2024: EUR 6,067 million) for post-employment benefits and EUR 167 million (2024: EUR 220 million) for other post-employment and long- term benefits. The post-employment benefits are broken down between EUR 4,581 million for pension of which 93% are funded, and EUR 586 million for lump sum benefits of which 72% are funded. 38 Schneider Electric | Consolidated financial statements 2025 se.com
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The total present value of Defined Benefit Obligations breaks down as follows between wholly or partly funded plans and wholly unfunded plans: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Present value of wholly or partly funded benefit obligation (4,699) (5,643) Fair value on plan assets 4,670 5,668 Effect of assets ceiling (123) (156) Net position of wholly or partly funded benefit obligation (152) (131) Present value of wholly or partly unfunded benefit obligation (635) (644) NET LIABILITY FROM FUNDED AND UNFUNDED PLANS (787) (775) Balance Sheet impact: surplus of plans recognized as assets * 261 323 provisions recognized as liabilities (1,048) (1,098) * The surplus of plans recognized as assets represents the assets in excess of the liabilities, generally assumed to be recoverable, and after applying any asset ceiling. Changes in gross items recognized in equity were as follows: (in millions of euros) Full Year 2025 Full Year 2024 Actuarial (gains)/losses on Defined Benefit Obligations arising from demographic assumptions 28 61 Actuarial (gains)/losses on Defined Benefit Obligations arising from financial assumptions (28) (319) Actuarial (gains)/losses on Defined Benefit Obligations from experience effects 16 35 Actuarial (gains)/losses on plan assets 64 295 Effect of asset ceiling (35) (33) TOTAL RECOGNIZED IN EQUITY DURING THE YEAR 45 39 of which UK (53) 11 of which US (9) 12 The table below shows the expected timing of benefit payments under pension and other post-employment benefit plans for the next 3 years: (in millions of euros) United Kingdom United States Rest of the world Total 2026 302 35 90 427 2027 297 34 62 393 2028 292 33 69 394 Plans asset allocation: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Equity 4% 3% Bonds 82% 71% Others 14% 26% TOTAL 100% 100% 21.2 – Sensitivity analysis The effect of a ± 0.5% change in the discount rate and in the rate of compensation increases on the 2025 Defined Benefit Obligations is as follows: United Kingdom United States Rest of the world Total (in millions of euros) +0.5% (0.5)% +0.5% (0.5)% +0.5% (0.5)% +0.5% (0.5)% Discount rate (157) 170 (12) 13 (71) 76 (240) 259 Rate of compensation increases 65 (57) - - 36 (34) 101 (91) F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 39se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 22: Provisions and contingent liabilities 22.1 – Provisions Accounting principles A provision is recognized when the Group has a present legal or constructive obligation arising from a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. When a loss or liability is not considered likely and cannot be measured reliably, but remains possible, the Group discloses it as a contingent liability. Provisions are measured on a case-by-case or statistical basis and are discounted where the effect of discounting is material. Provisions are primarily recognized for: • Economic risks: provisions for tax risks, other than income taxes arising from positions taken by the Group or its subsidiaries. Each position is assessed individually (without offset), and the provision reflects the best estimate of the risk at the reporting date. Where applicable, the estimate includes late-payment interest and penalties. • Customer risks: provisions for losses at completion on certain long-term contracts (onerous contracts). Expected losses are recognized in full as soon as they are identified. • Product risks: provisions comprise: – Statistical provisions for warranties: provisions recognized on a statistical basis for the residual cost of product warranties not covered by insurance, estimated with reference to historical claims experience and the warranty period; and – Provisions for disputes relating to defective products and recalls of specifically identified products. • Environmental risks: provisions recognized primarily for remediation and clean-up costs. Estimated future outflows are based on reports prepared by independent experts. • Restructuring costs: provisions recognized when the Group has a detailed restructuring plan and has either announced the plan or commenced implementation before the end of the reporting period. The provision includes only direct expenditures arising from the restructuring. • Other risks: A portion of these risks is covered by insurance assets. These risks primarily include provisions recognized for litigation matters inherited from acquired businesses. They also include the EUR 104 million provision recorded in connection with the ongoing investigation by the French Competition Authority, as described below. (in millions of euros) Economic risks Customer risks Products risks Environmental risks Restructuring Other risks Provisions Dec. 31, 2023 209 119 727 297 169 499 2,020 of which long-term portion 124 61 194 256 16 308 959 Additions 35 26 165 9 51 314 600 Utilizations (21) (25) (146) (24) (68) (151) (435) Reversals of surplus provisions - (1) (52) (14) (4) (12) (83) Translation adjustments 5 5 15 14 1 22 62 Changes in the scope of consolidation and other (3) - 18 8 (5) 121 139 Dec. 31, 2024 225 124 727 290 144 793 2,303 of which long-term portion 144 64 208 243 16 576 1,251 Additions 37 71 180 11 156 140 595 Utilizations (30) (38) (129) (22) (87) (96) (402) Reversals of surplus provisions (29) (6) (65) (17) (2) (17) (136) Translation adjustments (19) (13) (50) (29) (3) (67) (181) Changes in the scope of consolidation and other 23 (6) (5) (12) (6) 37 31 Dec. 31, 2025 207 132 658 221 202 790 2,210 of which long-term portion 129 42 180 188 16 581 1,136 Reconciliation with cash flow statement: (in millions of euros) Full Year 2025 Full Year 2024 Increase of provision 595 600 Utilization of provision (402) (435) Reversal of surplus provision (136) (83) Provision variance excluding employee benefit obligation 57 82 Employee benefit obligation net variance contribution to plan assets 49 11 INCREASE/(DECREASE) IN PROVISIONS IN CASH-FLOW STATEMENT 106 93 40 Schneider Electric | Consolidated financial statements 2025 se.com
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22.2 – Contingent liabilities As previously disclosed, investigations were conducted in September 2018 by the French judicial authority and French Competition Authority (Autorité de la concurrence) at Schneider Electric’s head office and other premises concerning the sale of electrical products through commercial distribution activities in France. • After 6 years of procedure, the French Competition Authority issued on October 29, 2024 a decision to sanction several companies concerning the electrical distribution activities in France, including Schneider Electric for a EUR 207 million penalty considering that the pricing autonomy of some distributors in the French market had been limited by Schneider Electric, in breach of competition rules. This fine was paid in April 2025. Schneider Electric strongly disagrees with the conclusion of the French Competition Authority and has appealed the decision in front of the Paris Appeal Court. Considering the difficulty to assess the extent to which the Appeal Court will consider the arguments of Schneider Electric in its defense, the Group booked, as of December 31, 2024, a provision of EUR 104 million in “Other operating income and expenses”. This provision remained unchanged as of December 31, 2025. • Concurrently on October 7, 2022, Schneider Electric was indicted by an investigating judge who required Schneider Electric to provide a bank guarantee of EUR 20 million (which validity has now expired) and a cash guarantee of EUR 80 million. Schneider Electric officially contested the indictment decision and raised numerous arguments in law and fact. Procedure is ongoing. Schneider Electric rejects any allegation that its distribution practices are not compliant with competition rules. Schneider Electric commercial policy is designed to comply with all regulations. Schneider Electric has always cooperated with the authorities and intends to continue to do so. Schneider Electric has other contingent liabilities relating to legal, arbitration or regulatory proceedings arising in the normal course of its business. Known or ongoing claims and litigation involving the Group or its subsidiaries were reviewed at the date on which the consolidated financial statements were approved for issue. Based on the advice of legal counsel, all provisions deemed necessary have been made to cover the related risks. Note 23: Current and non-current financial liabilities Accounting principles Financial liabilities primarily comprise bonds, commercial paper and short and long-term bank borrowings. These liabilities are initially recognized at fair value, net of directly attributable transaction costs. Subsequently, they are measured at amortized cost using the effective interest method. The breakdown of net debt is as follows: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Bonds 15,752 12,650 Other bank borrowings 23 1,840 Short-term portion of bonds (749) (1,800) Short-term portion of long-term debt (5) (1,780) NON-CURRENT FINANCIAL LIABILITIES 15,021 10,910 Commercial paper 1,320 70 Accrued interest 137 139 Other short-term borrowings 601 57 Bank overdrafts 47 75 Short-term portion of convertible and non-convertible bonds 749 1,800 Short-term portion of long-term debt 5 1,780 CURRENT FINANCIAL LIABILITIES 2,859 3,921 TOTAL CURRENT AND NON-CURRENT FINANCIAL LIABILITIES 17,880 14,831 CASH AND CASH EQUIVALENTS (4,634) (6,887) NET FINANCIAL DEBT excl. purchase commitments over non-controlling interests 13,246 7,944 Non-current purchase commitments over non-controlling interests 278 19 Current purchase commitments over non-controlling interests 197 184 NET FINANCIAL DEBT incl. purchase commitments over non-controlling interests 13,721 8,147 In January 2023, the Group had drawn 1,700 million under the Term loan facility set up to fund the acquisition of the minority interest of AVEVA. This term loan matured in October 2025. As of December 31, 2025, this term loan presented in current financial liabilities in 2024 was fully repaid. In December 2025, the Group drew EUR 500 million on the bridge loan arranged in connection with the acquisition of SEIPL’s non- controlling interests. This drawdown is presented under "Other short-term borrowings". F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 41se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements 23.1 – Breakdown by maturity Dec. 31, 2025 Dec. 31, 2024 (in millions of euros) Contractual payments Interests Contractual payments 2025 - - 3,921 2026 2,860 394 760 2027 2,757 365 1,750 2028 1,250 309 1,250 2029 2,150 289 1,400 2030 2,150 242 1,400 2031 1,350 181 1,350 2032 and beyond 5,655 531 3,150 TOTAL 18,172 2,311 14,981 23.2 – Breakdown by currency (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Euro 17,746 14,655 Brazilian Real 76 59 Turkish Lira 22 33 Indian Rupee 9 27 US Dollar 18 22 Algerian Dinar 1 14 Other 8 21 TOTAL 17,880 14,831 23.3 – Bonds (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Interest rate Issuance date Maturity Schneider Electric SE 2025 - 750 0.875% fixed March 2015 March 2025 Schneider Electric SE 2025 - 750 3.375% fixed April 2023 April 2025 Schneider Electric SE 2025 - 300 1.841% fixed October 2015 October 2025 Schneider Electric SE 2026 749 748 0.875% fixed December 2017 December 2026 Schneider Electric SE 2027 499 499 1.000% fixed April 2020 April 2027 Schneider Electric SE 2027 748 747 1.375% fixed June 2018 June 2027 Schneider Electric SE 2027 997 - EUR3M+25bps September 2025 September 2027 Schneider Electric SE 2027 499 499 3.250% fixed November 2022 November 2027 Schneider Electric SE 2028 500 499 1.500% fixed January 2019 January 2028 Schneider Electric SE 2028 253 255 1.500% fixed May 2019 January 2028 Schneider Electric SE 2028 498 497 3.250% fixed June 2023 June 2028 Schneider Electric SE 2029 797 796 0.250% fixed March 2020 March 2029 Schneider Electric SE 2029 748 - 2.625% fixed September 2025 September 2029 Schneider Electric SE 2029 596 595 3.125% fixed January 2023 October 2029 Schneider Electric SE 2030 744 - 2.750% fixed December 2025 July 2030 Schneider Electric SE 2030 745 744 3.000% fixed September 2024 September 2030 Schneider Electric SE 2030 (OCEANEs) 602 592 1.970% fixed November 2023 November 2030 Schneider Electric SE 2031 597 597 3.000% fixed January 2024 January 2031 Schneider Electric SE 2031 (OCEANEs) 679 666 1.625% fixed June 2024 June 2031 Schneider Electric SE 2032 747 - 3.000% fixed September 2025 March 2032 Schneider Electric SE 2032 596 595 3.500% fixed November 2022 November 2032 Schneider Electric SE 2033 496 495 3.500% fixed June 2023 June 2033 Schneider Electric SE 2033 (OCEANEs) 638 - 1.250% fixed September 2025 September 2033 Schneider Electric SE 2034 593 592 3.375% fixed January 2023 April 2034 Schneider Electric SE 2035 691 690 3.250% fixed January 2024 October 2035 Schneider Electric SE 2036 744 744 3.375% fixed September 2024 September 2036 Schneider Electric SE 2037 996 - 3.624% fixed September 2025 September 2037 TOTAL 15,752 12,650 42 Schneider Electric | Consolidated financial statements 2025 se.com
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Euro Medium Term Notes program As part of its Euro Medium Term Notes (EMTN) program, Schneider Electric has issued bonds admitted to trading on Euronext Paris. Issues that matured in 2025 and those that had not yet matured as of December 31, 2025 are described in the table above. OCEANE due 2030 In 2023, the Group issued OCEANEs for EUR 650 million at a rate of 1.97%, maturing in November 2030. At end of December 2025, the debt component recorded at net book value amounts to EUR 602 million and the optional component to EUR 66 million. The initial conversion and/or exchange ratio of the Bonds was 426.66 shares per bond with a nominal value set at EUR 100,000.00 corresponding to EUR 234.38 per share and has been adjusted to 440.95 shares per bond in May 2025. OCEANE due 2031 Concurrently with the repurchase of the OCEANE due 2026, the Group issued on June 25, 2024, bonds convertible into new shares and/or exchangeable for existing shares (OCEANEs) for EUR 750 million at a rate of 1.625%, maturing in June 2031. At end of December 2025, the debt component recorded at net book value amounts to EUR 679 million and the optional component to EUR 84 million. The initial conversion and/or exchange ratio of the Bonds was 321.48 shares per bond with a nominal value set at EUR 100,000.00 corresponding to EUR 311.07 per share and has been adjusted to 323.51 shares per bond in May 2025. OCEANE due 2033 The Group issued on September 23, 2025, bonds convertible into new shares and/or exchangeable for existing shares (OCEANEs) for EUR 750 million at a rate of 1.250%, maturing in September 2033. The OCEANE has a debt component, assessed on inception date on the basis of the market interest rate applied to an equivalent non-convertible bond, and recognized in non-current financial debts and an optional component recognized in equity. At end of December 2025, the debt component recorded at net book value amounts to EUR 638 million and the optional component to EUR 109 million. The initial conversion and/or exchange ratio of the Bonds was 311.98 shares per bond with a nominal value set at EUR 100,000.00 corresponding to EUR 320.54 per share. For all those transactions, issue premium and issue costs are amortized per the effective interest rate method. 23.4 – Cash flow statement impact (in millions of euros) Dec. 31, 2024 Cash Variation Non-cash variations Dec. 31, 2025 Scope impacts Equity impacts Forex and others Bonds 12,650 3,173 - (109) 38 15,752 Other borrowings 2,106 15 (1) - (39) 2,081 Bank overdrafts 75 (17) - - (11) 47 TOTAL CURRENT AND NON-CURRENT FINANCIAL LIABILITIES 14,831 3,171 (1) (109) (12) 17,880 23.5 – Purchase commitments over non-controlling interests Accounting principles In accordance with IAS 32, put options granted to minority shareholders are recognized as financial liabilities at the present value of the estimated exercise price of the option against non-controlling interests. The Group has elected to apply IFRS 10 for purchase commitments over non-controlling interests. Subsequent changes in the carrying amount of the liability recognised for the purchase commitment are recorded in equity, unless the purchase commitment conveys a transfer of risks and rewards, in which case they are recognised in profit or loss. Upon settlement of the purchase commitment over non- controlling interests, the difference between the consideration paid and the carrying amount of the non-controlling interests acquired is recognized directly in “Equity attributable to owners of the parent”. (in millions of euros) Maturity Dec. 31, 2025 Dec. 31, 2024 Current portion 197 184 Non-current portion 2028 278 19 TOTAL PURCHASE COMMITMENTS OVER NON-CONTROLLING INTEREST 475 203 In 2025, purchase commitments over non-controlling interests relate to Planon and Motivair. In 2024, purchase commitments over non-controlling interests related to Planon and Qmerit. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 43se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 24: Classification of financial instruments Accounting principles The Group uses financial instruments to manage its exposure to fluctuations in interest rates, exchange rates and metal prices. Financial assets and liabilities can be classified at the fair value following the hierarchy levels below: • Level 1: market value (non-adjusted) on active markets, for similar assets and liabilities, which the company can obtain on a given valuation date; • Level 2: data other than the market rate available for level 1, which are directly or indirectly observable on the market; • Level 3: data on the asset or liability that are not observable on the market. 24.1 – Balance sheet exposure and fair value hierarchy (in millions of euros) Dec. 31, 2025 Carrying amount Fair value through P&L Fair value through Equity Financial assets/liabilities measured at amortized cost Fair value Fair value hierarchy ASSETS: Listed financial assets 15 15 - - 15 Level 1 Venture capital (FCPR)/mutual funds (SICAV) 109 109 - - 109 Level 3 Other unlisted financial assets 559 87 472 - 559 Level 3 Other non-current financial assets 950 - 261 689 950 Level 2 TOTAL NON-CURRENT ASSETS 1,633 211 733 689 1,633 Marketable securities 1,819 1,819 - - 1,819 Level 1 Negotiable debt securities and short-term deposits 813 813 - - 813 Level 2 Cash 2,002 2,002 - - 2,002 Level 1 Derivative instruments - foreign currencies 85 19 66 - 85 Level 2 Derivative instruments - interest rates 18 18 - - 18 Level 2 Derivative instruments - commodities 174 27 147 - 174 Level 2 TOTAL CURRENT ASSETS 4,911 4,698 213 - 4,911 LIABILITIES: Long-term portion of non-convertible bonds * (13,084) - - (13,084) (13,098) Level 1 Long-term portion of convertible bonds * (1,919) - - (1,919) (1,938) Level 2 Non-current purchase commitments over non-controlling interests (278) - (278) - (278) Level 3 Other long-term debt (18) - - (18) (18) Level 2 TOTAL NON-CURRENT LIABILITIES (15,299) - (278) (15,021) (15,332) Short-term portion of bonds * (749) - - (749) (742) Level 1 Short-term debt (2,110) - - (2,110) (2,110) Level 2 Current purchase commitments over non-controlling interests (197) - (197) - (197) Level 3 Derivative instruments - foreign currencies (31) (24) (7) - (31) Level 2 Derivative instruments - interest rates (12) (12) - - (12) Level 2 Derivative instruments - commodities - - - - - Level 2 Derivative instruments - others (8) (8) - (8) Level 2 TOTAL CURRENT LIABILITIES (3,107) (44) (204) (2,859) (3,100) * The majority of the financial instruments listed in the balance sheet have a fair value close to their book value, except for bonds, for which the amortized cost in the balance sheet represents EUR 15,752 million compared to EUR 15,778 million at fair value. 44 Schneider Electric | Consolidated financial statements 2025 se.com
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(in millions of euros) Dec. 31, 2024 Carrying amount Fair value through P&L Fair value through Equity Financial assets/ liabilities measured at amortized cost Fair value Fair value hierarchy ASSETS: Listed financial assets 15 15 - - 15 Level 1 Venture capital (FCPR)/mutual funds (SICAV) 127 127 - - 127 Level 3 Other unlisted financial assets 617 103 514 - 617 Level 3 Other non-current financial assets 842 - 323 519 842 Level 2 TOTAL NON-CURRENT ASSETS 1,601 245 837 519 1,601 Marketable securities 3,978 3,978 - - 3,978 Level 1 Negotiable debt securities and short-term deposits 1,027 1,027 - - 1,027 Level 2 Cash 1,882 1,882 - - 1,882 Level 1 Derivative instruments - foreign currencies 80 64 16 - 80 Level 2 Derivative instruments - interest rates 50 50 - - 50 Level 2 Derivative instruments - commodities 1 - 1 - 1 Level 2 TOTAL CURRENT ASSETS 7,018 7,001 17 - 7,018 LIABILITIES: Long-term portions of non-convertible bonds * (9,592) - - (9,592) (9,599) Level 1 Long-term portions of convertible bonds * (1,258) - - (1,258) (1,313) Level 2 Non-current purchase commitments over non-controlling interests (19) - (19) - (19) Level 3 Other long-term debt (60) - - (60) (60) Level 2 TOTAL NON-CURRENT LIABILITIES (10,929) - (19) (10,910) (10,991) Short-term portion of bonds * (1,800) - - (1,800) (1,796) Level 1 Short-term debt (2,121) - - (2,121) (2,121) Level 2 Current purchase commitments over non-controlling interests (184) - (184) - (184) Level 3 Derivative instruments - foreign currencies (112) (33) (79) - (112) Level 2 Derivative instruments - interest rates - - - - - Level 2 Derivative instruments - commodities (23) - (23) - (23) Level 2 Derivative instruments - others (4) (4) - - (4) Level 2 TOTAL CURRENT LIABILITIES (4,244) (37) (286) (3,921) (4,240) * The majority of the financial instruments listed in the balance sheet have a fair value close to their book value, except for bonds, for which the amortized cost in the balance sheet represents EUR 12,650 million compared to EUR 12,708 million at fair value. 24.2 – Derivative instruments Accounting principles The management of hedging activities is centralized. The Group’s policy is to use derivative financial instruments exclusively to manage and hedge exposures to changes in exchange rates, interest rates, or certain raw material prices. Depending on the nature of the exposure, the Group uses instruments such as foreign exchange forwards, foreign exchange options, cross-currency swaps, interest rate swaps and commodity forwards, swaps or options. All derivatives are recognized in the consolidated balance sheet at fair value, with changes in fair value recognized in the statement of income, except where the derivative is designated and qualified as a hedging instrument in a hedging relationship. Cash flows relating to financial instruments are presented in the consolidated statement of cash flows in a manner consistent with the cash flows of the underlying transactions. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 45se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements (in millions of euros) Dec 31, 2025 Accounting qualification Maturity Nominal sales Nominal purchases Fair value Carrying amounts in assets Carrying amounts in liabilities Carrying amounts in OCI Forwards contracts CFH < 1 year 514 (433) - 9 (9) - Forwards contracts CFH < 2 years 60 (87) - 1 (1) - Forwards contracts CFH > 2 years 4 (8) - - - - Forwards contracts FVH < 1 year 2,544 (1,785) 8 14 (6) 2 Forwards contracts NIH < 1 year 661 - 1 1 - 1 Forwards contracts Trading < 1 year 1,502 (5,739) (5) 7 (12) - Cross currency swaps FVH < 1 year 83 - (2) 1 (3) 1 Cross currency swaps NIH < 1 year 213 - 18 18 - 19 Cross currency swaps NIH > 2 years 255 - 34 34 - 36 TOTAL FOREIGN CHANGE DERIVATIVES 5,836 (8,052) 54 85 (31) 59 Forwards contracts CFH < 1 year - (391) 174 174 - 147 Commodities derivatives - (391) 174 174 - 147 Interest rate swaps FVH > 2 years 1,550 (1,550) 6 18 (12) - Interest rate derivative 1,550 (1,550) 6 18 (12) - Options Trading > 2 years - (8) - (8) - Other derivatives - - (8) - (8) - TOTAL 7,386 (9,993) 226 277 (51) 206 (in millions of euros) Dec 31, 2024 Accounting qualification Maturity Nominal sales Nominal purchases Fair value Carrying amounts in assets Carrying amounts in liabilities Carrying amounts in OCI Forwards contracts CFH < 1 year 611 (466) (11) 16 (27) (11) Forwards contracts CFH < 2 years 39 (42) - 1 (1) - Forwards contracts CFH > 2 years 2 - - - - - Forwards contracts FVH < 1 year 2,647 (1,790) 19 48 (29) (2) Forwards contracts NIH < 1 year 719 - (28) - (28) (28) Forwards contracts Trading < 1 year 877 (4,920) 10 15 (5) - Cross currency swaps CFH < 1 year 69 - - - - - Cross currency swaps NIH > 2 years 529 - (22) - (22) (22) TOTAL FX DERIVATIVES 5,493 (7,218) (32) 80 (112) (63) Forwards contracts CFH < 1 year - (423) (22) 1 (23) (22) Commodities derivatives - (423) (22) 1 (23) (22) Interest Rate Swap FVH > 2 years 1,050 (1,050) 50 50 - - Interest Rate Derivatives 1,050 (1,050) 50 50 - - Options Trading > 2 years - - (4) - (4) - Other derivatives - - (4) - (4) - TOTAL 6,543 (8,691) (8) 131 (139) (85) 46 Schneider Electric | Consolidated financial statements 2025 se.com
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24.3 – Foreign currency hedges Accounting principles The Group periodically enters into foreign exchange derivatives to hedge foreign currency risk arising from transactions denominated in foreign currencies. Wherever possible, monetary items (other than specific financing items) denominated in foreign currency in the balance sheet of Group entities are hedged by rebalancing assets and liabilities by currency through foreign exchange spot transactions executed with Corporate Treasury (natural hedging). Foreign exchange exposure is therefore aggregated at Group level and hedged using foreign exchange derivatives. Where centralization is not feasible, the Group enters into foreign exchange forward contracts to hedge operating receivables and payables denominated in foreign currencies. In both cases, the Group does not apply hedge accounting because gains and losses on foreign exchange derivatives naturally offset, within “Net financial income/(loss)”, the gains or losses arising from the translation at year-end rates of payables and receivables denominated in foreign currency. The Group also hedges highly probable forecast cash flows, including recurring forecast transactions and planned acquisitions or disposals of investments. In accordance with IFRS 9, such hedges are accounted for as cash flow hedges. The hedging instruments are recognized at fair value in the consolidated balance sheet. The effective portion of the gain or loss on the hedging instrument is accumulated in OCI and is reclassified in the statement of income when the hedged item affects profit or loss. The Group also hedges foreign exchange risk on financing receivables and payables (including current accounts and intercompany loans) using foreign exchange derivatives that may be documented as cash flow hedges or fair value hedges depending on the nature of the hedged item. The Group may designate foreign exchange derivatives or borrowings as hedging instruments for its investments in foreign operations (net investment hedges). Changes in the value of the hedging instruments are accumulated in OCI and are reclassified to the statement of income in a manner consistent with the recycling of the hedged item. The Group designates foreign exchange derivatives based on the spot rate. The Group has elected to apply the cost of hedging approach under IFRS 9 to reduce volatility in the statement of income attributable to forward points: • For foreign exchange derivatives hedging recognized balance sheet items, forward points are amortized in the statement of income on a straight-line basis. Forward points related to foreign exchange derivatives hedging financing transactions are included in “Finance costs, net”. • For foreign exchange derivatives hedging forecast transactions not yet recognized in the consolidated balance sheet, forward points are recognized in the statement of income when the hedged transaction affects profit or loss. The breakdown of the nominal of foreign change derivatives related to operating and financing activities is as follows: (in millions of euros) Dec. 31, 2025 Sales Purchases Net US Dollar 2,789 (3,798) (1,009) British Pound 979 (1,415) (436) Chinese Yuan 167 (577) (410) Singapore Dollar 434 (616) (182) Japanese Yen 9 (134) (125) Swedish Crown 51 (173) (122) Swiss Franc 13 (113) (100) Brazilian real 120 (28) 92 Danish Crown 68 (157) (89) UAE Dirham 66 (151) (85) Hong Kong Dollar 28 (110) (82) South African Rand 50 (1) 49 Canadian Dollar 108 (60) 48 Saudi Riyal 17 (61) (44) Norwegian Krone 13 (49) (36) Australian Dollar 86 (94) (8) Others 838 (515) 323 TOTAL 5,836 (8,052) (2,216) F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 47se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements 24.4 – Interest rate hedges Accounting principles Interest rate risk on borrowings is managed at the Group level, based on consolidated debt and taking into consideration market conditions to optimize overall borrowing costs. The Group uses derivative instruments to hedge its exposure to interest rates through swaps or cross-currency swaps. The derivative instruments are structured to match the schedules, rates and currencies of the borrowings they hedge, and involve the exchange of fixed and floating-rate interest payments. The net settlement to be paid (or received) is accrued as an adjustment to interest income or expense over the life of the agreement. The Group applies hedge accounting under IFRS 9 for qualifying interest rate swaps. Gains and losses arising from remeasurement of interest rate swaps to fair value are recognized in OCI (for cash flow hedges) or in the statement of income (for fair value hedges). Borrowings hedged in a fair value hedge are adjusted for changes in fair value attributable to the hedged risk, with the corresponding gain or loss recognized in the statement of income. Cross-currency swaps may be presented as foreign exchange hedges or as interest rate hedges depending on the specific characteristics of the derivative. During the fiscal year 2025, the Group set up new interest rate swaps for a nominal amount EUR 500 million. (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Fixed rates Floating rates Total Fixed rates Floating rates Total Total current and non-current financial liabilities 14,987 2,893 17,880 12,650 2,181 14,831 Cash and cash equivalent - (4,634) (4,634) - (6,887) (6,887) NET DEBT BEFORE HEDGING 14,987 (1,741) 13,246 12,650 (4,706) 7,944 Impact of Hedges (1,550) 1,550 - (1,050) 1,050 - NET DEBT AFTER HEDGING 13,437 (191) 13,246 11,600 (3,656) 7,944 24.5 – Commodity hedges Accounting principles The Group is exposed to fluctuations in energy and raw material prices, in particular copper, aluminum, silver, lead, nickel, zinc, steel and plastics. If the Group is not able to hedge, compensate for or pass on to customers any such increased costs, this could have an adverse impact on its results. The Group has, however, implemented certain procedures to limit exposure to rising non-ferrous and precious raw material prices. The Purchasing departments of the operating units report their purchasing forecasts to the Treasury & Corporate Finance department. Purchase commitments are hedged using forward contracts, swaps and, to a lesser extent, options. The Group enters into commodity derivatives, including forward purchase contracts, swaps and options to hedge price risk on all or part of its forecast purchases. In accordance with IFRS 9, such hedges are accounted for as cash flow hedges. These instruments are recognized at fair value at period-end (mark-to-market). The effective portion of the hedge is recognized in OCI and is subsequently reclassified to the statement of income (within gross margin) when the hedged purchases affect profit or loss. The effect of this hedging is incorporated into the cost of products sold. All commodities instruments are futures and options designated as cash flow hedge under IFRS standards, of which: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Fair value 174 (22) Nominal amount (391) (423) 48 Schneider Electric | Consolidated financial statements 2025 se.com
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24.6 – Financial assets and liabilities subject to netting Accounting principles The Group trades over-the-counter derivatives with tier-one banks under agreements which provide for the offsetting of amounts payable and receivable in the event of default by one of the contracting parties. These conditional offsetting agreements do not meet the eligibility criteria within the meaning of IAS 32 for offsetting derivative instruments recorded under assets and liabilities. However, they do fall within the scope of disclosures under IFRS 7 on offsetting. In accordance with IFRS 7 standards, this section discloses financial instruments that are subject to netting agreements. Dec. 31, 2025 (in millions of euros) Gross amounts Gross amounts offset in the statement of financial position Net amounts presented in the statement of financial position Related amounts not offset in the statement of financial position Net amounts as per IFRS 7 Financial assets 277 - 277 (40) 237 Financial liabilities (51) - (51) 40 (11) Dec. 31, 2024 (in millions of euros) Gross amounts Gross amounts offset in the statement of financial position Net amounts presented in the statement of financial position Related amounts not offset in the statement of financial position Net amounts as per IFRS 7 Financial assets 131 - 131 (73) 58 Financial liabilities (139) - (139) 73 (66) 24.7 – Counterparty risk Financial transactions are entered with carefully selected counterparties. Banking counterparties are chosen according to the customary criteria, including the credit rating issued by an independent rating agency. Group policy consists of diversifying counterparty risks and periodic controls are performed to check compliance with the related rules. In addition, the Group takes out substantial credit insurance and uses other types of guarantees to limit the risk of losses on trade accounts receivable. 24.8 – Liquidity risk As of December 31, 2025, the Group had confirmed credit lines of EUR 3,525 million, all unused with EUR 2,875 million maturing after December 2026. Among them, EUR 2,775 million are sustainable-linked credit line with margin indexed on the annual performance of the Schneider Sustainability Impact (SSI). With EUR 3.5 billion available committed facility and EUR 4.6 billion cash & cash equivalent, the liquidity of the Group amounted to EUR 8.1 billion end of the year. In the next 12 months, the total short-term financial debt amounts to EUR 2.9 billion. Committed credit lines do not include any financial covenants or credit rating triggers in case of rating downgrade. 24.9 – Financial risk management Foreign currency risk arises from the Group undertaking a significant number of foreign currency transactions in the course of operations. These exposures arise from sales in currencies other than the Group’s presentational currency of Euro. The main exposure of the Group in terms of currency exchange risk is related to the US dollar, Chinese Yuan and currencies linked to the US dollar. In 2025, revenue in foreign currencies amounted to EUR 32.7 billion (EUR 31.1 billion in 2024), including around EUR 15.1 billion in US dollars and EUR 4.3 billion in Chinese yuan (respectively EUR 13.3 and EUR 4.4 billion in 2024). The Group manages its exposure to currency risk to reduce the sensitivity of earnings to changes in exchange rates. The financial instruments used to hedge the Group’s exposure to fluctuations in exchange rates are described above. The table below shows the impact of a 10% change in the US dollar and the Chinese Yuan against the Euro on Revenue and Adjusted EBITA. It includes the impact from the translation of financial statements into the Group’s presentation currency and assumes no scope impact. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 49se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Dec. 31, 2025 (in millions of euros) Increase/ (decrease) in average rate Revenue Adj. EBITA US Dollar 10% 1,505 427 (10)% (1,505) (427) Chinese Yuan 10% 434 64 (10)% (434) (64) Dec. 31, 2024 (in millions of euros) Increase/ (decrease) in average rate Revenue Adj. EBITA US Dollar 10% 1,327 281 (10)% (1,327) (281) Chinese Yuan 10% 435 113 (10)% (435) (113) 24.10 – Supplier Financing The Group has set up supplier financing programs in several countries. The total amount of discounted payables as of December 31, 2025, amounts to EUR 83 million compared to EUR 110 million as of December 31, 2024, and is not considered material. In addition, payment terms remain in line with payment practices in those countries. The Group’s supplier financing programs do not lead to the derecognition of trade payables or to their reclassification within financial liabilities. Note 25: Employees 25.1 – Employees The Group average number of permanent and temporary employees is as follows: (number of employees) Full Year 2025 Full Year 2024 * Production 76,859 75,142 Administration 86,111 83,493 TOTAL AVERAGE WORKFORCE 162,970 158,635 of which Western Europe 40,753 40,436 of which North America 46,302 44,080 of which Asia-Pacific 55,785 54,354 of which Rest of the world 20,130 19,765 * The 2024 average headcount has been restated to exclude non-employee interim workers, who were previously included in the Group’s total headcount, and to include certain missing headcount figures resulting from a scope adjustment. 25.2 – Employee benefit expense (in millions of euros) Full Year 2025 Full Year 2024 * Payroll costs (11,751) (11,622) Share-based payments (202) (233) EMPLOYEE BENEFITS EXPENSE (11,953) (11,855) * The 2024 payroll costs have been restated following a refinement of the methodology used to determine the scope of payroll-related accounts, in order to ensure consistency and comparability between periods. 50 Schneider Electric | Consolidated financial statements 2025 se.com
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25.3 – Benefits granted to key management personnel In 2025, the Group granted EUR 2.6 million in attendance fees to the members of its Board of directors. Gross compensation, including benefits in kind, allocated in 2025 by Group companies to the chairman, totaled EUR 1.0 million. Gross compensation, including benefits in kind, allocated by Group companies in 2025 to the Corporate Officer, amounted to EUR 2.7 million, including EUR 1.1 million in variable compensation. Gross compensation, including benefits in kind, allocated by Group companies in 2025 to the members of Group Senior Management other than the Corporate Officer, amounted to EUR 39.9 million, including EUR 9.1 million in variable compensation allocated in the 2025 fiscal year. During the last three financial years, 491,089 performance shares have been allocated to key management personnel (Chairman, Corporate officer and Other Members of Group Senior Management). No stock options have been granted during the last three financial years. In 2025, performance shares were allocated under the 2025 long-term incentive plans 46, 47 and 47ter. Since December 16, 2011, 100% of performance shares are conditional on the achievement of performance criteria for members of the Executive Committee. Note 26: Related party transactions 26.1 – Transactions with associates Companies over which the Group has significant influence are accounted through the equity method. Transactions with these related parties are carried out on arm’s length terms. Related party transactions were not material in 2025. 26.2 – Transactions with key management personnel No unusual transactions were carried out during the year with members of the supervisory board or management board. Compensation and benefits paid to the Group’s top senior executives are described in Note 25. Note 27: Commitments The following table discloses the maximum exposure on guarantees given and received: (in millions of euros) Dec. 31, 2025 Dec. 31, 2024 Market counter guarantees * 1,550 1,571 Pledges, mortgages and sureties ** 140 131 Invensys Pension Scheme guarantees 2,006 2,111 Other commitments given 535 472 GUARANTEES GIVEN 4,231 4,285 Endorsements and guarantees received 354 233 GUARANTEES RECEIVED 354 233 * On certain contracts, customers require some commitments to guarantee that the contract will be fully executed by the subsidiaries of the Group. The risk linked to the commitment is assessed and a provision for contingencies is recorded when the risk is considered probable and can be reasonably estimated. Market counter guarantees also include the guaranteed obligations towards pension schemes. ** Some loans are secured by property, plant and equipment and securities lodged as collateral. As of December 31, 2025, the Group had confirmed credit lines described in Note 24.8. Note 28: Subsequent events No significant subsequent events occurred between December 31, 2025 and February 25, 2026, the date at which the consolidated financial statements were authorized for issue by the Board of Directors. F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 51se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements Note 29: Statutory Auditors’ fees Fees paid by the Group to the Statutory Auditors and their networks: Full Year 2025 (in thousands of euros) PwC % Forvis Mazars % Total Statutory auditors, certification, examination of the parent company and consolidated accounts 13,959 82% 10,612 93% 24,571 o/w Schneider Electric SE 1,979 1,248 3,227 o/w subsidiaries 11,980 9,364 21,344 Limited assurance procedures on CSRD 1,083 6% 380 3% 1,463 Services other than statutory audit - Audit-related services ("SACC")* 2,011 12% 398 4% 2,409 o/w Schneider Electric SE 354 27 381 o/w subsidiaries 1,657 371 2,028 TOTAL FEES 17,053 100% 11,390 100% 28,443 * Audit related services include services required by regulations and those provided at the request of the parent company or controlled entities, in particular: the review of environmental, social and societal information, contractual audits, comfort letters, audit certificates, agreed procedures, audits of procedures and information systems, and tax services that do not impair auditor independence. Full Year 2024 (in thousands of euros) PwC % Forvis Mazars % Total Statutory auditors, certification, examination of the parent company and consolidated accounts 13,187 78% 10,555 92% 23,742 o/w Schneider Electric SE 1,651 1,132 2,783 o/w subsidiaries 11,536 9,423 20,959 Limited assurance procedures on CSRD 1,103 7% 473 4% 1,576 Services other than statutory audit - Audit-related services ("SACC")* 2,594 15% 503 4% 3,097 o/w Schneider Electric SE 1,365 27 1,392 o/w subsidiaries 1,229 476 1,705 TOTAL FEES 16,884 100% 11,531 100% 28,415 * Audit related services include services required by regulations and those provided at the request of the parent company or controlled entities, in particular: the review of environmental, social and societal information, contractual audits, comfort letters, audit certificates, agreed procedures, audits of procedures and information systems, and tax services that do not impair auditor independence. 52 Schneider Electric | Consolidated financial statements 2025 se.com
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Note 30: Consolidated companies The main companies included in the Schneider Electric Group scope of consolidation are listed below: The percentage of control is equal to the percentage of interest for most of the companies. (in % of interest) Dec. 31, 2025 Dec. 31, 2024 Europe Fully consolidated Schneider Electric NV SA Belgium 100 100 Schneider Electric Services International Belgium 100 100 Schneider Electric Danmark A/S Denmark 100 100 Schneider Electric Finland Oy Finland 100 100 Schneider Electric Industries SAS France 100 100 Schneider Electric France France 100 100 Schneider Electric International France 100 100 Sarel - Appareillage Electrique France 100 100 Schneider Electric SE France 100 100 Boissiere Finance France 100 100 Aveva Sas France 100 100 Schneider Electric GmbH Germany 100 100 Schneider Electric Sachsenwerk GmbH Germany 100 100 Schneider Electric Investment AG Germany 100 100 Schneider Electric IT Logistics Europe Limited Ireland 100 100 Schneider Electric IT Limited Ireland 100 100 Schneider Electric S.p.a. Italy 100 100 Uniflair S.p.a. Italy 100 100 Schneider Electric The Netherlands B.V. Netherlands 100 100 American Power Conversion Corporation (A.P.C.) B.V. Netherlands 100 100 BTR (European Holdings) Bv Netherlands 100 100 Planon Beheer BV Netherlands 80 80 Schneider Electric Norge AS Norway 100 100 Schneider Electric Polska Sp. Z o.o. Poland 100 100 Schneider Electric Portugal, LDA Portugal 100 100 Schneider Electric Romania, SRL Romania 100 100 Schneider Electric Espana, S.A.U Spain 100 100 Schneider Electric Sverige AB Sweden 100 100 Schneider Electric Buildings AB Sweden 100 100 Schneider Electric (Suisse) SA Switzerland 100 100 Feller AG Switzerland 83.7 83.7 Schneider Electric Limited United Kingdom 100 100 BTR Industries Ltd United Kingdom 100 100 Invensys Group Ltd United Kingdom 100 100 Invensys Holdings Ltd United Kingdom 100 100 Invensys International Holdings Ltd United Kingdom 100 100 Invensys Ltd United Kingdom 100 100 Schneider Electric Invensys (UK) Ltd United Kingdom 100 100 Aveva Group Limited United Kingdom 100 100 Aveva UK 1 Limited United Kingdom 100 100 Aveva Solutions Limited United Kingdom 100 100 Aveva Software GB Limited United Kingdom 100 100 Samos Acquisition Company Limited United Kingdom 100 100 Ascot Acquisition Holdings Limited United Kingdom 100 100 Schneider Electric Systems Holdings Limited United Kingdom 100 - North America Fully consolidated Schneider Electric Canada Inc. Canada 100 100 Schneider Electric Mexico S.A. de C.V. Mexico 100 100 Industrias Electronicas Pacifico, S.A. de C.V. Mexico 100 100 Schneider Electric USA, Inc. United States 100 100 F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 53se.com Schneider Electric
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Consolidated financial statements 5. Notes to the consolidated financial statements (in % of interest) Dec. 31, 2025 Dec. 31, 2024 SNA Holdings Inc. United States 100 100 Schneider Electric Holdings, Inc. United States 100 100 Veris Industries LLC United States 100 100 Schneider Electric Buildings Americas, Inc. United States 100 100 Schneider Electric IT Corporation United States 100 100 Schneider Electric IT Mission Critical Services, Inc. United States 100 100 Schneider Electric Smart Grid Solutions, LLC United States 100 100 SE Vermont Ltd United States 100 100 Summit Energy Services, Inc. United States 100 100 BTR, LLC United States 100 100 H.S. Investments, LLC United States 100 100 Schneider Electric Systems USA, Inc. United States 100 100 Siebe Inc. United States 100 100 Ranco Incorporated of Delaware United States 100 100 Schneider Electric Foundries LLC United States 100 100 Schneider Electric Ventures Fund II United States 100 100 Osisoft, LLC United States 100 100 Charge Holdings, LLC United States 100 90.83 Aveva US 2 Corp. United States 100 100 Aveva Inc. United States 100 100 Aveva Software, LLC United States 100 100 ASCO Power Technologies, L.P. United States 100 100 Motivair LLC United States 75 - ETAP Automation Inc. United States 100 100 Accounted for by equity method Uplight Inc. United States 43.46 43.46 Asia-Pacific Fully consolidated Schneider Electric (Australia) Pty Limited Australia 100 100 Schneider Electric Australia Holdings Pty Ltd Australia 100 100 Aveva Software Australia Pty Ltd Australia 100 100 Schneider Electric (China) Company Limited China 100 100 Schneider Shanghai Power Distribution Electrical Apparatus Co., Ltd China 80 80 Schneider Shanghai Low Voltage Terminal Apparatus Co., Ltd China 75 75 Schneider Busway (Guangzhou) Limited China 95 95 Schneider (Beijing) Medium Voltage Co., Ltd China 100 100 Schneider (Beijing) Low Voltage Co., Ltd. China 95 95 Wuxi Pro-Face Co., Ltd China 100 100 Schneider (Suzhou) Transformers Co., Ltd China 100 100 Schneider Shanghai Apparatus Parts Manufacturing Co., Ltd China 100 100 Schneider Electric IT (China) Co., Ltd China 100 100 Schneider Wingoal (Tianjin) Electric Equipment Co., Ltd China 100 100 Schneider Electric (Xiamen) Switchgear Equipment Co., Ltd China 100 100 Schneider Electric Equipment and Engineering (Xi'An) Co., Ltd China 100 100 Schneider Electric (Hong Kong) Limited Hong Kong 100 100 Schneider Electric India Private Limited India 100 65 Schneider Electric IT Business India Private Limited India 100 100 Luminous Power Technologies Private Limited India 100 100 Schneider Electric Infrastructure Limited India 75 75 Schneider Electric Private Limited India 100 100 Aveva Solutions India Llp India 100 100 PT Schneider Indonesia Indonesia 95 95 Schneider Electric Japan Holdings Inc Japan 100 100 Schneider Electric Japan, Inc. Japan 100 100 Schneider Electric Korea Limited Korea 100 100 Schneider Electric Industries (M) Sdn. Bhd. Malaysia 100 100 Schneider Electric Singapore Pte Ltd Singapore 100 100 54 Schneider Electric | Consolidated financial statements 2025 se.com
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(in % of interest) Dec. 31, 2025 Dec. 31, 2024 Schneider Electric Asia Pte. Ltd. Singapore 100 100 Schneider Electric South East Asia (HQ) Pte Ltd Singapore 100 100 Schneider Electric IT Logistics Asia Pacific Pte Ltd Singapore 100 100 Schneider Electric Taiwan Co., Ltd Taiwan 100 100 Schneider (Thailand) Limited Thailand 100 100 Schneider Electric Vietnam Limited Viet Nam 100 100 Accounted for by equity method Delixi Electric Limited (sub-group) China 50 50 Rest of the World Fully consolidated Schneider Electric Argentina S.A. Argentina 100 100 Schneider Electric Brasil Ltda Brazil 100 100 Schneider Electric Chile S.P.A Chile 100 100 Schneider Electric de Colombia S.A.S Colombia 100 100 Schneider Electric Egypt S.A.E. Egypt 91.93 92 Schneider Electric Distribution Company Egypt 91.99 91.99 Schneider Electric FZE United Arab Emirates 100 100 Schneider Electric DC MEA FZCO United Arab Emirates 100 100 Schneider Electric Services LLC Qatar 49 49 Schneider Electric Saudi Arabia Limited Saudi Arabia 100 100 Schneider Electric South Africa (Pty) Ltd South Africa 100 74.9 Schneider Elektrik Sanayi Ve Ticaret A.S. Türkiye 100 100 F I S C A L Y E A R E N D E D D E C E M B E R 3 1 , 2 0 2 5 55se.com Schneider Electric
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Schneider Electric SE Headquarters: 35, rue Joseph Monier – CS 30323 F-92506 Rueil-Malmaison Cedex (France) Tel.: +33 (0) 4 76 57 60 60 European Company, governed by a Board of directors with a share capital of EUR 2,308,490,048 Registered in Nanterre, R.C.S. 542 048 574 Siret no.: 542 048 574 01791 ©2026 Schneider Electric. All Rights Reserved. Schneider Electric is a trademark and the property of Schneider Electric SE, its subsidiaries and affiliated companies. All other trademarks are the property of their respective owners. se.com