NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Statutory Auditors’ report on the parent company financial statements

Impairment of customer loans and receivables on an individual basis Risk identified and main judgments

Our audit approach Our work was adapted to take account of changes in risk and the increased degree of uncertainty. We appreciated the relevance of the internal Natixis control system and in particular its adaptation to the crisis. We evaluated the design and tested the effectiveness of the key controlsput in place by Natixis, in particular those related to: the identification of indicators of impairment (such as past-due V the determination of individual impairment losses on V non-performing loans and the associated governance and validation system. In addition, we carried out a credit review over a sample of files selected based on materiality and risk criteria, particularly files exposed to the business sectors most affected by the health crisis. In this review we: took note of the latest available information on the situation of V sensitive and non-performing counterparties; performed independent analyses of the assumptionsused and the V estimates of provisions drawn up by management based on information provided by the institution and external data; verified that estimated impairment allowances were correctly V recognized. We also verified the information detailed in the notes on impairment of customer loans and receivables. Our audit approach We examined the identification, assessment and provisioning arrangements for legal and compliance risks. We took note of the status of ongoing proceedings and the main risks identified by Natixis, including through regular discussionswith management (and more specifically Natixis’ Legal, Compliance and Tax Departments) and by reviewing the documentation made available to us. Our work also involved assessing the reasonableness of the assumptionsand data used by managementto estimate the amount of provisions recognized at the reporting date. In particular, we engaged tax law specialists to conduct a critical review of analyses of the tax risksidentified by Natixis and the related provisions. We also carried out confirmation procedures with Natixis’ legal advisors regarding ongoing proceedings. Finally, we checked that the provisions thus measuredwere correctly recognized and verified the related disclosures in the notes to the parent company financial statements. payments) and the counterparty rating process; the classification of exposures as non-performing; V the monitoring and valuation of guarantees; V

As part of its financing activities within the Corporate & Investment Banking division, Natixis recognizesprovisionson an individual basis to cover incurred credit losses on loans and receivables granted to customers. The Covid-19 pandemic has led to a health and economic crisis that is affecting borrowers’ ability to repay their debts, with mixed situationsdependingon geographic regions and business sectors. In response to this crisis, each country deployed specific governmental measures (partial unemployment schemes, state-guaranteed loans, moratoriums, etc.). The determination of individual impairment allowances for non-performing loans requires a significant amount of judgment, particularly in terms of identifying impairment and calculating the impairment loss to be recognized. We considered individual impairment to be a key audit matter as it is an area where estimationplays a significant role in the preparationof the financial statements. customers represented €124,144 million at December 31, 2020. Individual impairment losses amounted to €675 million at December 31, 2020. Please refer to Note 1, to the paragraph 1 of Note 2, and to Notes 5 and 31 to the parent company financial statements for more details. Receivables due from Provisions for legal and compliance risks Risk identified and main judgments Natixis is involved in litigation before the courts and is the subject of investigations and requests for information from regulatory and tax authorities in different jurisdictions. The assessmentof the resulting legal and compliance(including tax) risks reflects management’s estimates as of the reporting date. The recognition of a provision and determination of its amount as well as the financial information disclosed require, by their very nature, the exercise of judgment, not least becauseof the difficultyof estimating the outcome and financial consequences of ongoing proceedings. We therefore consideredprovisions for legal and compliance risks to be a key audit matter given the sensitivity of these provisions to the assumptions and options adopted by management. Provisions for litigation and other risks amounted to €1,011millionat December31, 2020 (see Note 17 to the parent company financial statements). For more details, please refer to paragraph10 of Note 2 and to Note 17 to the parent company financial statements.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020