NATIXIS - 2018 Registration document and annual financial report

FINANCIAL DATA Internal control procedures relating to accounting and financial information

finalizing the overhaul of the Natixis Factor overview systems; a implementing the production process and the associated a control environment relative to IFRS 9, particularly through the introduction, as of January 1, 2018, of a shared tool for calculating provisions, linked to a database; the strengthening of prudential, fiscal and, more generally, a manual entry controls, and controls covering the new standards and new reporting requirements; the reinforcement of local control system monitoring a processes and support for the Review officers, particularly internationally, for all the European, US and Asian platforms. Work in 2019 will be focused on the following actions: implementing the production process and the associated a control environment relative to IFRS 16, applicable as of January 1, 2019 and covering leasing activities; continuing the progress of the project to streamline the a information systems used for market and financing transactions in France and abroad; continuing the progress of the project to streamline and pool a data used by the various overview systems, for which new, more granular, uses are planned for 2019; moving forward with the sale, to BPCE SA, of the Factoring, a Sureties & Financial Guarantees, Leasing, Consumer Finance and Securities Services business lines currently operated by Natixis or its specialized subsidiaries, notably by implementing service agreements that will bind BPCE and Natixis, which will continue to carry out certain work on BPCE’s behalf; continuing with initiatives committed to strengthening a second-level controls in accounting and regulatory matters. In addition to the control procedures followed by the Finance Departments responsible for preparing individual or consolidated accounts, the quality of accounting controls is verified by: ad hoc audit assignments conducted by BPCE’s General a Inspection and Natixis’ Internal Audit Department; inspections carried out by the banking supervisory authorities; a audits conducted by Statutory Auditors. This work is carried a out by a group of firms working in a uniform manner each quarter on most of the entities falling within Natixis’ scope of consolidation and whose opinions rely, in particular, on compliance with policies determined and validated beforehand by Natixis and the effectiveness of local internal control procedures. EXTERNAL CONTROLS 5.5.3

independent second-level controls under the hierarchical a authority of the Accounting and Ratios Department and the functional authority of the Compliance Department. The Regulatory and Accounting Review team, aside from managing the system, also performs its own controls, including the review of first-level controls; dedicated tools that allow for the automated reconciliation of a account entries and centralization of control results using an internal application. In addition to the operational control tasks delegated to it, the Regulatory and Accounting Review team also fulfills the following duties in respect of the organization of the control function within the Group: definition of the control policy applicable to Natixis and its a subsidiaries: organizational and operational principles of permanent internal control for accounting, fiscal and regulatory matters, in accordance with the policy established by Groupe BPCE; coordination of the control system within the subsidiaries, a working with the Review officers appointed by each of the local financial, compliance or risk departments. This takes place through quarterly Review committee meetings, themed workshops, and bilateral cooperation with international entities and platforms; monitoring and implementing an accounting and regulatory a control environment within each entity by collecting and operating a set of periodic reporting dashboards. The results of these dashboards are then sent to each entity, including a process for alerting the finance, compliance or risk officers. In 2018, the highlights of the accounting and financial control environment included: preserving a strict schedule for preparing the various financial a reports; the continuation of large-scale projects to streamline the a information systems used for market and financing transactions (front- and back-office systems), and the migration of the associated software, which continued in 2018; increasingly automated production of liquidity reporting (LCR, a NSFR and AER), within the same application chain, reducing the number of manual entries and guaranteeing the auditability of data; the continuation of a project to streamline and pool data input a by setting up shared data warehouses for all overview functions (Risk, Accounting and Ratios, Financial Oversight and Financial Management) and that already allows the production of the new reports required by the regulator (MREL, SHS and AnaCredit particularly); finalizing the introduction within the Asia-Pacific platform of a specialized accounting and reconciliation tools that have been gradually used and phased in at Natixis since 2008;

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Natixis Registration Document 2018