NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Consolidated financial statements and notes

Securities lending and borrowing Securities lending/borrowingtransactionsdo not involve the transfer of a financial asset within the meaning of IFRS. Consequently, these transactions do not lead to the derecognition of the securities loaned. Securities loaned are not identified in IFRS: they remain recorded in their original IFRS category and measured accordingly. Borrowed securities are not recognized by the borrower. and liabilities In accordance with IAS 32, Natixis offsets financial assets and liabilities, and a net balance is presentedon the balance sheet, on the twofold condition that it has the legally enforceableright to offset the recorded amounts, and the intention either to settle the net amount or to simultaneously realize the asset and settle theliability. Transactions on derivatives and repurchase agreements carried out with clearing houses, whose operating principles meet the two criteria mentioned above, are offset in the balance sheet (see Note 7.3) . 5.13 A provision is a liability of uncertain timing or amount. A liability is a present obligation arising from past events, the settlement of which is expected to result in an outflowof resourcesembodyingeconomic benefits that can be reliably measured. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the reporting date. This amount is discounted when the effect of discounting is material. Provisions are reviewed at each reporting date and adjusted if necessary.Provisionsrecognizedon the balance sheet, other than provisions to cover employee benefits, mainly concern provisions for restructuring and provisions for risks and litigation. a) Restructuring provision A provision for restructuring costs is recognized when the following standard criteria for recognizing provisions and the two following conditions are met: there is a detailed formal plan for the restructuring on the closing V date, identifying at least: the operations or part of the operations concerned, V the principal locations affected, V the location, function, and approximate number of employees V who will be compensated upon termination of their services, Offsetting of financial assets 5.12 Provisions

b) Provisions for risks and litigation A description of the main risks and litigation to which Natixis is exposed is given in Section 3.2.9 of Chapter 3 “Risk factors, risk management and Pillar III”. Changes in provisions are recognized in the income statement on the line items corresponding to the type of future expenditure. Provisions recognized as liabilities in Natixis’ financial statements at December 31, 2020 and December 31, 2019, are presented in Note 7.16 “Summary of provisions” and eventual charges are described in Note 6.6 “Other income and expenses”, in Note 6.7 “General operating expenses” and in Note 6.8 “Cost of risk”. 5.14 In accordancewith IAS 19, employee benefits are classified in one of four categories: “short-term benefits” , including salaries, social security V contributions, annual leave, employee profit-sharing, incentive plans, top-up contributions and bonuses payable for the period; “severance payments” , comprising employee benefits granted in V return for termination of a staff member’s employment before the normal retirement age, resulting from a decision by the entity, or a decision by the employee to accept a severance package in exchange for terminating their employment; “post-employment benefits” , such as pensions, other V supplementary retirement benefits applicable to the banking industry, end-of-career awards and other contractual benefits payable to retirees; “other long-term benefits” , Including long-service awards, V amounts due under the Time Savings Account and deferred compensation paid in cash as part of loyalty and performance plans. Short-term employee benefits are recognized as an expense in the period in which the employee provides the service in exchange for said benefits. A provision is accrued for terminationbenefits when the employer is demonstrably committed to providing such benefits, or when the employer recognizes the costs of restructuring providing for the payment of such benefits. In accordance with the principles of recognition set out in IAS 19, Natixis has identified the following types of post-employment benefit: defined contributionplans, under which an entity has no obligation V to pay a specified benefit amount; defined benefit plans, under which Natixis has a legal or V constructive obligation to pay a specified benefit amount. Contributions paid under defined contribution plans are expensed in the period in which the employee rendered the service in exchange for said contributions. A provision is set aside for defined benefit plans based on an actuarial assessment of the benefit obligation using the projected unit credit method. This method draws on demographic andfinancial assumptions reviewed annually (specifically the discount rate based on the AA Corporate bond rate curve). The value of plan assets is deducted from the actuarial debt. This valuation is carried out on a regular basis by independent actuaries. Employee benefits

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the expenses that will be incurred, and V the date the plan will be implemented; V

Natixis has raised a valid expectation in those affected that it will V carry out the restructuring by starting to implement that plan or announcing its main features on the closing date. Provisions for restructuring costs include only expenditures directly related to the restructuring.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020