NATIXIS - 2018 Registration document and annual financial report

5 FINANCIAL DATA

Consolidated financial statements and notes

Under IFRS 15, the entity must recognize income arising from ordinary activities in an amount that reflects the consideration that the entity expects to receive in exchange for the transfer of goods and services promised to customers. IFRS 15 thus introduces a new five-stage general approach for the recognition of income: identification of contracts with customers, j identification of specific performance obligations (or items) to j be recognized separately from one another, determination of overall transaction price, j allocation of transaction price to the various specific j performance obligations, recognition of income when performance obligations are j met. IFRS 15 applies to all contracts with customers except for leases (covered by IAS 17), insurance contracts (covered by IFRS 4) and financial instruments (covered by IFRS 9). If specific stipulations relating to revenue or contract costs are specified under a different standard, these will first be applied. The analysis carried out by Natixis related to the first-time application of IFRS 15 drew on assessments carried out within the relevant entities and was able to identify the main items that could be affected, including: fee and commission income, from banking services if this j income is not included in the effective interest rate, or from asset management or financial engineering services, income from other activities, in particular for services j included in leases. Based on the analyses performed, Natixis will only be very slightly affected by the issues relating to the first-time application of IFRS 15 identified, such as real estate development, loyalty programs and telephony. Accordingly, Natixis did not recognize any material impact relating to the first-time application of IFRS 15, on either opening equity at January 1, 2018 or on income and expense items in 2018. Only one change was made to the presentation of the balance sheet at January 1, 2018, involving the reclassification of commodity stocks in “Financial assets at fair value through profit or loss” in the amount of €242 million; this had no impact on Natixis’ opening equity. Under the option available in IFRS 15, Natixis did not restate the data for previous fiscal years published as comparative information for its financial statements. The amendment “Annual Improvements to IFRSs a 2014-2016 Cycle” adopted by the European Commission on February 7, 2018 with mandatory application from January 1, 2018. This amendment is part of the annual improvement process that aims to simplify and clarify international accounting standards. The following standards were modified: IAS 28 “Investments in Associates and Joint Ventures”, IFRS 1 “First-time Adoption of International Financial Reporting Standards”, and IFRS 12 “Disclosure of Interests in other Entities”. This amendment had no impact on Natixis’ financial statements; The amendment to IFRS 2 “Share-based Payment” adopted a by the European Commission on February 26, 2018 with

mandatory application from January 1, 2018. This amendment clarifies the accounting treatment of share-based payment transactions with details of the criteria to be taken into account when determining fair value, the impact of tax withholdings on plans and the accounting treatment to be applied if the terms and conditions of share-based payment plans are changed. This amendment had no impact on Natixis’ financial statements; The amendment to IFRS 40 “Investment Property” adopted a by the European Commission on March 14, 2018 with mandatory application from January 1, 2018. This sets out the cases in which a company can transfer a property to or from the “Investment property” category. Such transfers must only be made if the property meets, or ceases to meet, the definition of investment property. This amendment had no impact on Natixis’ financial statements; IFRIC interpretation 22 “Foreign Currency Transactions a and Advance Consideration” adopted by the European Commission on March 28, 2018 with mandatory application from January 1, 2018. This interpretation clarifies the accounting treatment of transactions that include the receipt or payment of advance consideration in a foreign currency. The transaction date, which is needed to determine the exchange rate to be used, is the date of initial recognition of the non-monetary asset or liability, except in the case of multiple payments or receipts, in which case it will be set for each payment or receipt. This interpretation had no impact on Natixis’ financial statements; Natixis did not opt for early application of the following standards, which had not yet entered into force at December 31, 2018: IFRS 16 “Leases” , adopted by the European Commission on a October 31, 2017. This standard will replace IAS 17 “Leases” and the interpretations relating to the accounting of these contracts. It became applicable retroactively on January 1, 2019, according to specific phase-in conditions. Under IFRS 16, the definition of leases implies the identification of an asset and control by the lessee of the right to use the asset. Control is established if the lessee holds the following two rights throughout the period of use: the right to obtain almost all the economic benefits arising j from use of the asset, the right to decide how the asset is used. j From the lessor’s perspective, the impact is expected to be limited, as the provisions will not change substantially in relation to the current IAS 17. For lessees, the standard requires that all lease contracts be recorded in the balance sheet such that they convey the right to use the leased asset, which must be recognized under fixed assets with a corresponding financial liability entry under liabilities to reflect the lease and other payments to be made over the duration of the lease contract. Natixis has decided to opt for the exception provided for by the standard of not modifying the accounting method for short-term leases (of less than 12 months) or leases relating to low value underlying assets.

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Natixis Registration Document 2018