NATIXIS - 2018 Registration document and annual financial report

FINANCIAL DATA Internal control procedures relating to accounting and financial information

Internal control procedures relating to 5.5 accounting and financial information

PREPARATION AND PROCESSING OF 5.5.1 ACCOUNTING AND FINANCIAL INFORMATION The Finance Department prepares Natixis’ consolidated financial statements and all consolidated regulatory reports (including solvency, liquidity and Resolution-related ratios) using the tools and databases developed and administered by Natixis S.A. As a listed company, Natixis prepares separate consolidated financial and regulatory statements, although the sub-group it leads has been included in Groupe BPCE’s consolidated financial statements since July 1, 2009. In this regard, the processes for preparing the consolidated financial statements and regulatory reporting are operationally autonomous, but linked to BPCE’s processes. The reliability of these processes is based on the following core principles: definition, in coordination with BPCE, and dissemination of the a accounting and regulatory principles applicable to Natixis companies, including the analysis and interpretation of new standards published during the period; documentation and oversight of the different stages in the a preparation of these reports; audit trails justifying all published accounting and management a data, based on the individual contributions made by each entity and restatements made centrally; formal, documented first- and second-level controls a contributing to the management of risks relating to accounting and financial information (balance sheet, income statement, regulatory and financial information); data archiving and security procedures; a provision of support and appropriate training to the accounting a and regulatory reporting teams of those consolidated entities that use the consolidation and data collection tools, thus allowing for best practices to be shared within the Company. The preparation of the consolidated financial statements also relies on: the use of a direct consolidation method, rolled out throughout a the Group, allowing for the analysis and control of the consolidation packages of each consolidated company via a formal review process; preparation of consolidated financial statements on a quarterly a basis. This allows for greater control over financial reporting within tight time frames;

reporting and reconciliation of intra-group transactions at M-1 a and then at M, where M is the reporting month, thus increasing the number of reconciliations and contributing to the preparation of quarterly statements; use of an automated control process for individual information a provided by the consolidated entities through the use of consolidation packages that incorporate accuracy and consistency checks, which must be complied with before the data can be transmitted; individual analysis of all entries impacting consolidated a shareholders’ equity and the preparation of supporting documents for taxes, including proof of deferred taxes, for each consolidated entity, thus contributing to the substantiation of consolidated shareholders’ equity. For the preparation of the consolidated financial statements and part of its regulatory reporting, Natixis has software that enables it to: produce a local IFRS-compliant reporting package, including, a for foreign entities, a reporting period foreign currency conversion feature; extend its data collection and consolidation processes to a regulatory reporting; guarantee the consistency of data relating to the banking and a insurance consolidation scopes; offer retrieval features that can be used to input data into the a various reports; offer BPCE access to Natixis’ data through dedicated a interfaces, in keeping with confidentiality rules given that Natixis is listed; secure the integration process for consolidation packages a received from international entities through the implementation of local first-level controls followed by centralized second-level controls. In order to perfect its overall data collection system, Natixis is continuing to develop and add new modules or adapt existing modules to new standards (including the update of IFRS 9 as of January 1, 2018 and IFRS 16 as of January 1, 2019), based on its consolidation tool, thus facilitating the compilation and preparation of certain regulatory reports (COREP capital reporting and FINREP). Lastly, Natixis and Groupe BPCE as a whole ensure the publication of their financial information within a schedule in line with industry-wide practices.

5

447

Natixis Registration Document 2018