NATIXIS - 2018 Registration document and annual financial report

5 FINANCIAL DATA

Consolidated financial statements and notes

Similarly, the sensitivity of future business plan cash flows to changes in key assumptions does not significantly affect the recoverable value of the CGUs: for Asset & Wealth Management, a 10% decline in the equity a markets (uniform decline across all years) would have a 5% negative impact on the CGU’s recoverable value and would not lead to the recognition of an impairment loss; for Corporate & Investment Banking, sensitivity to the dollar or a to the performance of the CAC would have a limited impact on net revenues and would not lead to any impairment being recorded; for Insurance, the main vector of sensitivity for life insurance is a interest rates, but various steps are being taken to reduce their impact (diversification of investments, reserves, etc.). Accordingly, the impact on the income statement is limited and would not significantly affect the CGU’s value; For non-life insurance, the main vector of sensitivity is the loss a ratio, which is notably measured via the combined ratio. Natixis’ strategic plan, New Dimension, sets this ratio at below 94%. A one-point deterioration in this ratio each year from 2018 in relation to the assumptions used to value the CGU would lead to a limited fall of 3% in this value, with no impact on impairment; for Specialized Financial Services, a one-point rise in the a three-month EURIBOR applied to Factoring, recreating a “2008-2009 crisis” (drop in production and increased cost of risk) for Leasing, would have a 4% negative impact on the recoverable value of the CGU and would have no impact in terms of impairment; for Coface, the primary sensitivity vector is the loss ratio. The a projected level of this ratio is around 45% (net of reinsurance) for 2018. A one-point increase in the loss ratio, relative to the assumptions used for the DCF calculation over all years from 2018, would impact the average multi-criteria value by around 4% and would not lead to the recognition of impairment for the CGU. Furthermore, a valuation at the lowest price in 2018 would lead to a very limited impact on the weighted average valuation for the various methods (less than -1%). Subsidiaries held for sale 3.6 The assets and liabilities of subsidiaries which Natixis intends to sell within a maximum period of 12 months, and for which it is actively seeking a buyer, are identified separately on two specific lines of the consolidated balance sheet as non-current assets and liabilities (see Note 6.9) . The proposed sale to BPCE S.A. of certain SFS entities currently controlled by Natixis S.A. was announced in September 2018 and the work required to complete this deal continued in the fourth quarter of 2018. The transaction should take place in the first quarter of 2019 after a capital increase by BPCE, which is a prerequisite for the deal’s completion, and the obtaining of the necessary authorizations from the supervisory authorities. The business lines involved are: Consumer Finance, Factoring, Sureties & Financial Guarantees, Leasing and EuroTitres. In legal terms, the entities are housed in separate legal entities (Natixis subsidiaries: Natixis Lease, Natixis Factor, Natixis

Financement and CEGC), except for the EuroTitres business line, a Natixis department that provides financial securities and securities account custody services, which is currently consolidated in Natixis S.A.’s financial statements. At December 31, 2018, Natixis continued to fully consolidate the subsidiaries concerned and, in accordance with the provisions of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, combined the assets and liabilities of these entities in two separate balance sheet line items: “Non-current assets held for sale” and “Liabilities associated with non-current assets held for sale”. In accordance with IFRS 5, the figures for fiscal year 2017 for these subsidiaries have not been restated (see Note 8.9) . Natixis has also begun negotiations for the sale of its subsidiary Natixis Brazil. This fully consolidated entity’s assets and liabilities, at December 31, 2018, were not recognized, in line with IFRS 5, in non-current assets held for sale and liabilities associated with non-current assets held for sale, given that the amounts in question are not material. The sale should also lead to the recycling in profit or loss of a translation adjustment of -€21 million recognized at December 31 in “Recyclable other comprehensive income”. Standardization of individual data and 3.7 treatment of intra-group transactions Prior to consolidation, the individual financial statements of companies included in the scope of consolidation are restated if necessary to bring them into line with Natixis’ accounting policies described below. The impact on the balance sheet and income statement of internal transactions carried out between fully-consolidated entities is eliminated. The internal profits or losses of entities consolidated using the equity method are eliminated to the extent of Natixis’ percentage interest in the joint venture or associate. Natixis’ institutional operations 3.8 In accordance with Article 41 of the Amended Finance Act for 1997 (No. 97-1239 of December 29, 2007), amended by Article 121 of the Amended Finance Act for 2008 (No. 2008-1443 of December 30, 2008), Article 5 of the Amended Finance Act for 2014 (No. 2014-1655 of December 29, 2014) and the agreement signed with the French State on May 10, 2017, Natixis manages certain public procedures on behalf of the French State, mainly consisting of loans and gifts to foreign States conferred within the framework of Public Development Aid, non-concessional loans to foreign States, gifts to the “Fund for Private Sector Aid and Studies” and the stabilization of interest rates for export credit guaranteed by the State. The related transactions, some of which may be guaranteed by the State, are recognized separately in the financial statements. The State and other related creditors have a specific right over the assets and liabilities allocated to these institutional operations. The bank’s assets and liabilities relative to these operations are identified on the balance sheet under each of the headings concerned with these operations.

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Natixis Registration Document 2018