NATIXIS - 2018 Registration document and annual financial report

5 FINANCIAL DATA

Consolidated financial statements and notes

NET CASH FLOW STATEMENT

The balance of cash and cash equivalents consists of the net balances of cash and amounts due from central banks, as well as on-demand deposits with and loans from credit institutions. Changes in cash generated by operating activities consist of cash flows generated by Group activities, with the exception of those related to held-to-maturity financial assets and investment property.

Changes in cash related to investment operations result from cash flows related to acquisitions and disposals of investments in consolidated and non-consolidated associates, tangible and intangible fixed assets, and acquisitions and disposals of investment property, property provided under operating leases and financial assets held to maturity.

31/12/2018

31/12/2017

(in millions of euros)

Pre-tax profit

2,661

2,651

+/- Net charge to depreciation and amortization of property, plant and equipment and intangible assets

341

320

+/- Writedown of goodwill and other non-current assets

(6)

(5)

+/- Net charge to other provisions (including insurance companies’ technical reserves)

5,778

7,536

+/- Share in income of associates

(29)

(26)

+/- Net loss/(gain) on investing activities

(308)

(418)

+/- Net loss/(gain) on financing activities

86

87

+/- Other activity

(365)

(1,939)

= Total non-cash items included in pre-tax profit and other adjustments

5,496

5,556

+/- Decrease/(increase) in interbank and money market items

(982)

(1,958)

+/- Decrease/(increase) in customer items

(9,490)

14,212

+/- Decrease/(increase) in financial assets or liabilities

(775)

(18,739)

+/- Decrease/(increase) in non-financial assets or liabilities

(2,536)

(5,551)

- Income taxes paid

(461)

(213)

= Net decrease/(increase) in operating assets and liabilities

(14,243)

(12,249)

Net cash provided/(used) by operating activities

(6,085)

(4,042)

+/- Decrease/(increase) in financial assets and equity interests (a)

620

200

+/- Decrease/(increase) in investment property

129

50

+/- Decrease/(increase) in property, plant and equipment and intangible assets

(361)

(324)

Net cash provided/(used) by investing operations

388

(74)

+/- Cash received from/(paid to) shareholders (b)

(1,329)

(1,176)

+/- Other cash provided/(used) by financing operations (c)

(142)

(127)

Net cash provided/(used) by financing operations

(1,471)

(1,303)

Cash flow on assets and liabilities held for sale (d)

(350)

(1)

Impact of exchange rate fluctuations on cash and cash equivalents

373

(1,981)

Net increase/(decrease) in cash and cash equivalents

(7,145)

(7,401)

Net cash provided/(used) by operating activities

(6,085)

(4,042)

Net cash provided/(used) by investing activities

388

(74)

Net cash provided/(used) by financing activities

(1,471)

(1,303)

Cash flow on assets and liabilities held for sale

(350)

(1)

Impact of exchange rate fluctuations on cash and cash equivalents

373

(1,981)

Cash and cash equivalents at beginning of period

30,568

37,969

Cash and balances with central banks

36,901

26,703

Interbank balances

(6,333)

11,266

Cash and cash equivalents at end of period

23,423

30,568

Cash and balances with central banks

24,280

36,901

Interbank balances

(857)

(6,333)

CHANGE IN CASH AND CASH EQUIVALENTS

(7,145)

(7,401)

Decrease/(increase) in financial assets and investments in associates, included in particular: (a) - cash flows related to held-to-maturity assets (+€616 million);

- cash flows related to investments in consolidated associates totaling -€144 million for the purchase of 100% of MV Credit (-€75 million), 51% of Fenchurch (-€37 million), 51% of Vermilion (-€11 million), 70% of Alter CE (-€20 million), 100% of BPCE Immobilier Exploitation (€3 million), the acquisition of an additional 5% stake in PayPlug (-€2 million), and an additional 18% in Natixis Caspian Private Equity (-€3 million), +€31 million in cash acquired (including +€12 million on the acquisition of BPCE Immobilier Exploitation, +€6.5 million on Fenchurch, +€4 million on Vermilion and +€2 million on Alter CE), the disposal of Axeltis (+€60 million), Selection 1818 (+€26 million) and Cofacrédit (+€14 million), -€33 million of cash transferred following the disposal of Axeltis, and the partial exercise of a put option on DNCA (-€125 million); - cash flows related to investments in non-consolidated associates in the amount of +€186 million, including +€186 million for the disposal of the 8% stake in AUSTIN FINANCE. Cash flows received from/(paid to) shareholders included dividends paid to BPCE in the amount of -€824 million and dividends paid to non-Group (b) entities for -€505 million. Cash flows from financing activities can be broken down as follows: (c) - €254 million paid on perpetual deeply subordinated notes, corresponding to the reimbursement of two issues made in 2008;

+€300 million subordinated debt issue underwritten by BPCE; - the redemption of debt held by Morgan Stanley for -€10 million; - interest paid on subordinated notes for -€82 million; - interest paid on deeply subordinated notes recorded in equity for -€97 million. Related to the announced sale of some SFS business lines to BPCE (also see notes 3.6 and 6.9). (d)

248

Natixis Registration Document 2018