NATIXIS -2020 Universal Registration Document

5 FINANCIAL DATA

Consolidated financial statements and notes

Insurance contracts taken up with a related party to Natixis and intended to finance all or part of Natixis’ defined-benefit plan commitmentsare recorded in the asset side of the balance sheet as “Accruals and other assets”. Revaluation adjustments for actuarial debt related to changes in actuarial assumptions and experience adjustments (impact of differences between actuarial assumptions and actual experience) are booked under items not recycled to comprehensive income among “Gains and losses recognized directly in equity”. The annual payroll costs recognized in respect of defined-benefit plans consist of: the costs of services rendered, representing rights vested by V beneficiaries over the period; past service costs, arising from possible plan changes or V curtailments as well as the effects of possible plansettlements; the net interest cost reflecting the impact of unwinding the V discount on the net obligation. Other long-termbenefits are valued using the same actuarialmethod as that applied to post-employment benefits under defined benefit plans, except that liability revaluationitems are recognizeddirectly as an expense. The estimated amount of the expense related to cash-settled variable compensation, subject to the employee’s continued service in accordance with the Employee Retention and Performance Recognition plans, is recognized over the vesting period. and equity In accordance with IAS 32,issued financial instruments are classified as debt or equity depending on whether or not they incorporate a contractual obligation to deliver cash to the holder: deeply subordinated notes and preference shares are classified in V equity in light of the 2009 renegotiation of a clause making the payment of interest non-optional in the event of positive consolidated income and which has since become discretionary. The change over the fiscal year is presented in Note 7.15 “Changes in subordinated debt over the period”, and in Note 12.3 “Equity instruments issued”; however, if an instrument is classified as equity: V payments on that instrument are treated in the same way as V dividends. However, the tax consequencesof these distributions are recognized, depending on the origin of the amounts distributed, in the consolidated reserves, as gains or losses recorded directly in equity or in income, in accordance with the amendment to IAS 12 of December 2017 entering into force on January 1, 2019. Accordingly, when the distribution corresponds to the IFRS 9 definition of dividends, the tax consequences are recorded in income. This provision is to be applied to any interest income from deeply super subordinated notes treated as dividends for accounting purposes, it is fixed at its historical value resulting from converting it to V euros on the date it was initially classified under equity; the share of third party investors in the net assets of dedicated V mutual funds included in Natixis’ consolidationscope comprises a Distinction between debt 5.15

financial liability recorded on the balance sheet under “Financial liabilities at fair value through profit or loss”. The share of third party investors in the profits of the mutual funds is recorded in “Net gains or losses on financial instrumentsat fair value through profit or loss” in the consolidated income statement; the units held by third party investors in dated funds, which are V fully consolidated by Natixis, entitling the unit-holders to the repayment of a share of the fund’s net assets upon its liquidation, are classified in liabilities on the consolidatedbalance sheet under “Accruals and other liabilities”. The share of third party investors in the fund’s profits is recorded under “Interest and similar expenses” on the consolidated income statement. 5.16 Capital increases reserved for employees Stock options offered to employees under the Employee Savings Plan, with a discount compared with the average market price for a given period (called the reference price), are encumbered with a lock-up period of five years. The advantage granted is measured as the difference between the fair value of the acquired share, taking into account the lock-up conditionand the purchaseprice paid by the employee on the subscription date, multiplied by the number of shares subscribed. The lock-up valuation method is based on the cost of a two-step strategy consisting of a five-year forward sale of the locked-up shares and purchasing the same number of shares in cash, by financing the purchasewith a loan ultimately repayable at the end of the five years with the income from the forward sale. The loan interest rate is that which would have been granted to a market player seeking a non-affected cash loan repayable in five years with an average risk profile. The main assumptions applied for valuing the advantages related to capital increases reserved for employees are provided in Note 11.2.4. The variable compensation policy is in keeping with the regulatory framework, including the European Regulation CRD IV. It also meets transparencyrequirementswith regard to the ACPR, the ECB and the AMF. Some plans are settled in Natixis shares, while others are settled in cash indexed to the Natixis share price. Employee retention and performance plans settled in shares Under IFRS 2 “Share-basedpayment”, employee bonus share awards give rise to an expense representing the fair value of the goods or services received at the grant date. This payroll expense is recognized against equity. The fair value of the services received is calculated by reference to the fair value of the shares at the grant date, less the present value of dividends forfeited by employees during the vesting period, taking the continued service requirements into account. The expense is recognized on a straight-line basis over the vesting period. The expense is adjusted over the vesting period to reflect any losses of rights. Share-based payments Share-based employee retention and performance recognition plans

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020