NATIXIS - 2018 Registration document and annual financial report

5 FINANCIAL DATA

Consolidated financial statements and notes

Gains or losses on other assets 7.9 This item comprises capital gains and losses on the disposal of property, plant and equipment and intangible assets used in operations, as well as capital gains and losses on the disposal of investments in consolidated companies.

31/12/2018

31/12/2017

Property, plant and equipment and intangible assets (b)

Property, plant and equipment and intangible assets (d)

Investments in consolidated companies (a)

Investments in consolidated companies (c)

Total

Total

(in millions of euros)

Net capital gains/(losses) on disposals

49

5

54

53

(4)

48

TOTAL 48 Of which +€7.6 million related to the previously completed disposal of a portion of the Private Equity business, -€2.2 million related to the (a) disposal of Cofacrédit (held by Coface), +€30.9 million related to the disposal of Axeltis, +€11.3 million related to the disposal of Selection 1818 and +€1.3 million related to the disposal of Reich & Tang. Of which +€3.6 million following the disposal and scrapping of intangible assets, and +€1.3 million following the disposal and scrapping of (b) property, plant and equipment. Of which +€21.5 million related to the disposal of Ellisphère and IJCOF, and +€9.9 million related to the disposal of the two Caspian Private (c) Equity companies. Of which -€4.5 million following the scrapping of software. (d) 49 5 54 53 (4)

Reconciliation of the tax expense in the financial statements and the theoretical tax 7.10 expense

31/12/2018

31/12/2017

(in millions of euros)

+ Net income (Group share)

1,577

1,669

+ Net income attributable to non-controlling interests

304 781

192 789

+ Income tax charge

+ Income from discontinued operations + Impairment of goodwill

0

0

- Share in income of associates

(29)

(26)

= Consolidated net income/(loss) before tax, goodwill amortization and share in income of associates

2,632

2,624

+/- Permanent differences (a)

277

201

= Consolidated taxable income/(loss)

2,909

2,825

x Theoretical tax rate = Theoretical tax charge

33.33%

33.33%

(970)

(942)

+ Contributions and minimum annual tax charges

(4) (1)

(25)

+ Income taxed at reduced rates

(1)

+ Losses for the period not recognized for deferred tax purposes

(36)

(16)

+ Impact of tax consolidation

23

26 73 96

+ Differences in foreign subsidiary tax rates + Tax on prior periods and other tax items (b) (c) (d)

125

82

= Tax charge for the period Of which: taxes payable

(781) (510) (271)

(789) (463)

deferred tax (326) The main permanent differences consist of capital gains taxed under the long-term scheme and the impact of the TSB (French systemic banking (a) risk tax) and the contribution to the SRF (single resolution fund), which are non-deductible expenses. Including the tax credits from which Natixis and its subsidiaries benefit. (b) Of which in 2018: +€20 million of provision write-backs for corporate tax refunds relating to non-consolidated entities and that are no longer (c) applicable, +€20 million of adjustments to provisions for tax risks written back following the completion of tax audits in 2018, and +€8 million of tax savings resulting from the offset of previously unrecognized tax losses against 2018 profits (€80.2 million at December 31, 2017). Of which in 2017: -€237.6 million for the derecognition of the previous tax loss for the tax consolidation Group in France, mainly related to the (d) decrease in the corporate tax rate as of 2020, +€104.7 million of income from deferred taxes for the US platforms in light of the tax rates applied to deferred tax assets due to the tax cuts adopted; and +€105.6 million of income from the refund of the 3% tax on dividends paid, further to the decision of the Constitutional Council of October 6, 2017.

Tax audits: Natixis S.A.

Natixis Germany Natixis’ German subsidiary was subject to an audit covering the 2009 to 2014 fiscal years. At December 31, 2018 Natixis Germany received a draft notification from the German tax authorities. The impact of this reassessment was recognized at December 31, 2018.

The company Natixis S.A. was subject to an audit covering the 2008 to 2013 fiscal years, which resulted in the receipt of a reassessment notice in December 2016. The final notice was received by Natixis during the 2018 fiscal year and the accounting impacts were factored into the accounts at December 31, 2018.

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Natixis Registration Document 2018