NATIXIS - 2018 Registration document and annual financial report

FINANCIAL DATA Consolidated financial statements and notes

Significant influence over associates 3.2.3 Significant influence is the power to participate in the financial and operating policy decisions of the corporate entity owned without having control over such policies. A significant influence is presumed to exist if Natixis directly or indirectly owns at least 20% of the voting rights of the Company in question. IAS 28 defines companies over which a significant influence is exercised as associates. These are consolidated using the equity method in accordance with the same terms as those applicable to joint ventures (see above), with the exception of Private Equity investments, which Natixis classifies under financial assets at fair value through profit or loss, in accordance with the option available under IAS 28. Natixis’ stake in EFG Hermès, held through DF EFG 3 Limited, was analyzed as subject to consolidation using the equity method even though the share of voting rights held represents 12.9%, due particularly to the number of seats held until December 12, 2018 by Natixis on the Company’s Board of Directors. Until this date, it was not consolidated in the financial statements, however, due to the lack of consolidated financial statements in IFRS format. The change in Natixis’ stake, with the abandoning of a director’s post, resulted in a loss of significant influence and the reclassification of the securities held as securities at fair value through other comprehensive income at their fair value on the issue date. The stake was acquired for $85 million. It is now recognized in “Financial assets at fair value through comprehensive income” for a value of €73.9 million at December 31, 2018. The loss recorded on the transferring of the securities to “Financial assets at fair value through comprehensive income” amounted to €25 million. Change in consolidation scope 3.3 In the event of an increase in Natixis’ percentage of ownership in an already-controlled entity, the difference between the acquisition cost of the additional percentage interest and the share in the entity’s net assets acquired at this date is recorded in “Consolidated reserves”. In the event of a decrease in Natixis’ percentage of ownership in an entity without a loss of control, the difference between the selling price and the carrying amount of the percentage interest sold is also recorded in “Consolidated reserves”. The assumption of control through successive purchases of securities from an entity previously recognized in financial assets at fair value (through profit or loss or other comprehensive income) is shown as two transactions taking place upon the assumption of control: the disposal of securities previously recognized in assets at fair a value through profit or loss; and the acquisition of all the securities held after the assumption of a control. In such cases, goodwill is determined only once based on the fair value of the assets acquired and the liabilities assumed on the date that control over the entity is assumed. In the event of the loss of control of a consolidated subsidiary, any equity share retained is measured at fair value and the gains or losses on disposal are recognized in “Gains or losses on other assets” in the consolidated income statement. Gains or losses on disposals of associates are presented in “Gains or losses on other assets” in the consolidated income statement.

If, after reviewing these criteria, Natixis concludes that its decision-making rights over the management of the entity’s relevant activities enable it to influence the variable returns obtained, Natixis does have control pursuant to IFRS 10 and the entity in question will be subject to full consolidation. Full consolidation involves replacing the carrying amount of investments with the full value of all the subsidiary’s assets and liabilities. The share of non-controlling interests in shareholders’ equity and in income appear separately on the balance sheet, the income statement and the statement of net income/(loss) and other comprehensive income. operations Natixis exercises joint control if, by virtue of a contractual arrangement, decisions pertaining to the entity’s relevant activities require the unanimous consent of the parties sharing control over the partnership, and if each partner has the ability to prevent the other partners from controlling the arrangement. IFRS 11 distinguishes between two types of partnerships: joint ventures and joint operations. Joint ventures are partnerships in which the parties exercising a joint control over the Company have rights over that company’s net assets. They are consolidated using the equity method. Consolidation using the equity method involves replacing the carrying amount of investments in the owner’s financial statements with Natixis’ interest in the shareholders’ equity and income of the entity owned. Investments are recognized at this reassessed value on the asset side of the consolidated balance sheet in “Investments in associates”. The difference between the investments’ historical value and their reassessed value is recognized on the liability side of the balance sheet under “Shareholders’ equity Group share”, and in income under “Share in income of associates” in the consolidated income statement, and under “Share in gains/(losses) of associates recorded directly in equity” in the statement of net income/(loss) and other comprehensive income. Goodwill related to joint ventures is included in the carrying amount. These investments are subject to an impairment test a whenever there is objective evidence of impairment. If the recoverable value of the investment is lower than its carrying amount, an impairment is recorded under “Share in income of associates” in the consolidated income statement. If Natixis’ share in the losses of a company consolidated using the equity method is greater than or equal to its interest in the Company, Natixis ceases to take its share in future losses into account. In such cases, the investment is presented as having zero value. Associates’ additional losses are only provisioned if Natixis has a legal or implied obligation to hedge them or if it has made payments on behalf of the Company. Joint operations are partnerships in which the parties a exercising joint control of the operation have rights over its assets, and obligations with regard to its liabilities. An investment in a joint operation is recorded by including all the interests held in the joint operation, i.e. the share in each of the assets, liabilities and other comprehensive income to which it is entitled. These interests are broken down by type across the various items in the consolidated balance sheet, consolidated income statement and statement of net income/(loss) and other comprehensive income. Joint control: joint ventures and joint 3.2.2

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Natixis Registration Document 2018