NATIXIS - 2018 Registration document and annual financial report

FINANCIAL DATA Consolidated financial statements and notes

BASIS OF PRESENTATION

NOTE 2

IFRS standards and 2.1

specific provisions for financial conglomerates, was adopted by the European Commission on November 3, 2017 with effect from January 1, 2018. This European regulation will allow financial conglomerates to defer application of IFRS 9 to their Insurance divisions until January 1, 2022 (effective date of the new IFRS 17 “Insurance Contracts”) as long as they: do not transfer financial instruments between the Insurance j division and other divisions of the conglomerate (with the exception of financial instruments at fair value through profit or loss for the two divisions affected by the transfer), indicate the insurance entities that apply IAS 39, j provide specific additional information in the Notes. j As Natixis is a financial conglomerate, it applies this provision to its insurance entities, which will continue to be accounted for as per IAS 39 in Natixis’ consolidated financial statements until January 1, 2022. The main entities affected by this measure are CEGC, the Coface insurance subsidiaries, Natixis Assurances, BPCE Vie and its consolidated funds, Natixis Life, BPCE Prévoyance, BPCE Assurances and BPCE IARD (the list of the entities affected is provided in Note 19). Natixis has also taken steps to prevent any transfer of financial instruments (with the exception of financial assets at fair value through profit or loss) between its Insurance division and other divisions, which would lead to derecognition for the transferring entity. From January 1, 2018, in accordance with ANC recommendation 2017-02, Natixis will present insurance activities on separate lines in its consolidated financial statements: “Insurance Activity investments” on the asset side of the balance sheet; “Liabilities related to insurance policies” on the liability side of the balance sheet; and “Net revenues from insurance activities” in the income statement. The amendment to IFRS 9 “Financial instruments” entitled “Prepayment features with negative compensation” was adopted by the European Commission on March 22, 2018 and has been applied in advance by Natixis from January 1, 2018, as permitted by IFRS 9. This amendment provides that prepayment features with negative compensation are not incompatible with the notion of basic contractual cash flows provided they represent “reasonable compensation”. The application of this amendment allows Natixis to consider that a portfolio of fixed-rate loans with symmetrical repayment clauses solely provides payments of principal and interest, and to recognize this portfolio at amortized cost. IFRS 15 “Revenue from Contracts with Customers” was a adopted by the European Commission on September 22, 2016 and is applicable retroactively as of January 1, 2018. The application of the amendment entitled “Clarifications to IFRS 15”, adopted by the European Commission on October 31, 2017, is also mandatory from January 1, 2018. IFRS 15 replaces current standards and interpretations regarding revenue recognition and now imposes a single model for accounting for revenue arising from contracts with customers.

IFRIC interpretations applied by the Group

As required by European regulation 1606/2002 of July 19, 2002, Natixis has prepared its consolidated financial statements for the year ended December 31, 2018 in accordance with IAS/IFRS standards and IFRIC interpretations as adopted by the European Union and applicable on that date (1) . Natixis’ consolidated financial statements include a balance sheet, income statement, statement of net income/(loss) and other comprehensive income, statement of changes in shareholders’ equity, cash flow statement and notes to the financial statements. They are presented with a comparison against December 31, 2017 prepared in accordance with IAS 39. A comparison as at January 1, 2018 after the application of IFRS 9 is provided for detailed information about balance sheet items. The financial statements presented for comparative purposes were published by Natixis in the 2017 registration document filed with the Autorité des Marchés Financiers (AMF—French Financial Markets Authority) on March 23, 2018. In accordance with European regulation 809/2004 relating to information contained in prospectuses, the financial statements for the year ended December 31, 2016, which were published in the 2016 registration document filed with the AMF on March 21, 2017, are included for reference in this registration document. Texts in force since January 1, 2018 The new standard, IFRS 9 “Financial Instruments” , was a adopted by the European Commission on November 22, 2016 and is applicable in Natixis’ consolidated financial statements retroactively as of January 1, 2018, except for the provisions relating to financial liabilities at fair value through profit or loss, which Natixis applied in advance to its financial statements from January 1, 2016, under the option available in the standard. Under the option available in IFRS 9, Natixis elected not to restate data for previous fiscal years published as comparative information for its financial statements. IFRS 9 replaces IAS 39 and defines the new rules for classifying and measuring financial assets and liabilities, a new credit risk-based impairment model for financial assets, and a new method of hedge accounting, except for macro-hedging, for which the IASB is currently studying a separate draft standard. Natixis has taken the option offered by IFRS 9 of not applying its provisions relating to hedge accounting and of continuing to apply IAS 39 to account for its hedging transactions. In view of the limited volume of asset reclassifications, most transactions recognized using hedge accounting under IAS 39 will continue to be disclosed in the same way from January 1, 2018. The amendment to IFRS 4 applying IFRS 9 “Financial Instruments” jointly with IFRS 4 “Insurance Contracts” with

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The complete body of standards adopted by the European Union may be consulted on the European Commission website at: (1) http://ec.europa.eu/finance/company-reporting/ifrs-financial-statements/index_fr.htm

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Natixis Registration Document 2018