NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Consolidated financial statements and notes

In terms of accounting: the IASB published the amendments to IFRS 9, IAS 39 and IFRS 7, V in respect of hedging-related issues, in September 2019. The amendments to IAS 39 and IFRS 9 provide for temporary exceptions to the requirements set forth by these standards in terms of hedge accounting, while the amendments to IFRS 7 require that, in respect of the hedging relationships to which these exceptionsapply, information be provided on the entities’ exposure to the IBOR reforms, the way they manage the transition to alternative benchmark rates, and the assumptions or judgments made in order to apply these amendments. Through these amendments, the IASB aims to prevent entities from having to discontinue hedging relationships due to uncertainties associated with the IBOR reform during the period preceding the transition to alternative benchmark rates. Natixis believes all of these hedging contracts, which have either a Bor or Eonia component, are affected by the reform and may therefore benefit from said amendmentsfor as long as uncertainty remains with regard to the contractual changes to be implemented as a result of the regulations, the replacement index to be applied or the period of application of provisional interest rates. Hedging derivatives are presented in Note 7.18. Almost all interest rate swaps used in a hedging relationships are indexed to a Bor or Eonia index; on August 27, 2020, the IASB publisheda draft document to handle V topics resulting from the replacement of traditional benchmark rates with their alternativebenchmark rates. This overviewaims to amend the provisionsof IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 with respect to the modifications of financial assets and financial liabilities (includingdebts related to leases) whether or not they are connected with the enactment of existing contractual clauses (fallback clauses), hedge accounting, or disclosures. This text, adopted by the European Commissionon January 13, 2021 will be applicable from January 1, 2021 with early application allowed. Natixis has chosen to apply these amendments early as of December 31, 2020. In more detail, these include: concerning the changes in financial assets and liabilities directly V induced by the reform and for which the basis for calculating contractual cash flows is economically equivalent to the basis of calculation used immediately before the change, to apply the provisions of IFRS 9 and IFRS 16 to re-estimate the cash flows of financial instruments indexed to a variable rate. This means, for financial assets and liabilities (excluding lease debts), a forward-looking revision of the effective interest rate, and for financial liabilities related to leases, a forward-looking revision of the rental debt including a modificationof the discount rate to take into account the switch to the alternative benchmark. The application of these provisions will therefore have no effect, as of the transition date, on the income statement; with respect to hedge accounting, the draft amendment introduces V new exceptionsto the hedge accountingapplicationcriteria set out by IFRS 9 and IAS 39 aimed at avoiding a breakdown in hedging relationships; with regard to the information to be published, the communication V of information on the nature and extent of the risks associated with the IBOR reform to which the entities are exposed, for the scope of all financial instruments (see Note 7.18) .

Uncertainties related to the application of certain provisions of the BMR

European Regulation (EU) 2016/1011 of June 8, 2016 on indices used as benchmarks (“the Benchmarks Regulation” or “BMR”) introduces a common framework aimed at guaranteeing the accuracy and integrity of indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds within the European Union. The purpose of the Benchmarks Regulation is to regulate the provision of benchmarks, the provision of data underlying benchmarks,and the use of benchmarks,within the EuropeanUnion. It provides for a transition period for administrators, who have until January 1, 2022 to be approved or registered. After this date, the use by entities supervised by the EU of benchmarks whose administrators are not authorized or registered (or, if they are not located in the EU, are not subject to equivalent or otherwise recognized or approved regulations) will be prohibited. Under the BMR, interest rate benchmarks Euribor, Libor and Eonia have been designated as critical. In the eurozone, most of the uncertaintiessurrounding the definition of new benchmark rates were cleared up in the first of half 2019. Indeed, the work done to propose new indices was finalized in the case of Eonia, which became a €STER tracker on October 1, 2019 and will continue to be one until December 31, 2021. The latter will replace the so-called “recalibrated” Eonia from January 12,022. As regards the Euribor, a new calculationmethodology(recognizedby the Belgian regulator as complyingwith BMR requirements),aimed at switching to a “hybrid” Euribor, was finalized in November 2019. At this stage, there is moderateuncertaintyas to the sustainabilityof the Euribor, resulting from the limited number of banks contributing to the determinationof the index. Two consultationswere launched in November 2020 by the European working group on alternative reference rates, in order to support the entities in the drafting of fallback clauses. These consultations concern, in this respect, the determinationof the events triggering the permanent termination of the Euribor and the methods for determining the rate, based on the euro ster, which will then replace the Euribor. With respect to Libor, at this stage, “risk-free rate” alternatives were defined for the GBP, USD, CHF, and JPY Libor. However, work is still under way to define the terms of transition to these rates. Legislative solutions are also being considered at the European level, in the United Kingdomand in the United States, for contracts referencedat the Libor rate, which would not have been renegotiatedat the end of the transition period. Since the first half of 2018, Natixis has had a project team in place tasked with anticipating the impacts associatedwith the benchmark index reform from a legal, commercial, financial and accounting standpoint. Governance involving all four Natixis business lines has been set up to analyze the operational aspects of this issue. During 2019, work focusedon the reformof the Euribor, the transition from the Eonia to the €STR and the strengthening of contractual clauses regardingthe terminationof indices. A new, more operational phase began in 2020 on the transitionand the reductionof exposure to benchmarksthat may disappear.It includesthe use of new indices, the identificationand implementationof inventory remediationplans as well as active communicationwith the bank’s customers.The vast majority of contracts affected by the reform will, however, be remedied with alternative rates during the year 2021.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020