NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Internal control procedures relating to accounting and financial information

Internal control procedures 5.5 relating to accounting and financial information

Preparation and processing of accounting 5.5.1 and financial information

The Finance Department prepares Natixis’ consolidated financial statements and all consolidated regulatory reports (including solvency, liquidity and resolution-related ratios) using the tools and databases developed and administered by Natixis S.A. As a listed company, Natixis prepares separate consolidated financial and regulatory statements, although the sub-group it leads has been included in Groupe BPCE’s consolidated financial statements since July 1, 2009. In this regard, the processes for preparing the consolidated financial statements and regulatory reporting are operationally autonomous, but linked to BPCE’s processes. The reliability of these processes is based on the following core principles: the definition, in coordinationwith BPCE, and disseminationof the V accounting and regulatory principles applicable to Natixis subsidiaries and branches, including the analysis and interpretation of new standards published during the period; the documentation and oversight of the different stages in the V preparation of these reports; audit trails justifying all published accounting and management V data, based on the individual contributions made by each entity and restatements made centrally; a first and second line of defense (LOD1 & LOD2) including V management and monitoring processes as well as first-level and second-levelcontrol systems. All of these contribute to the security of accounting and financial information (corporate and statutory accounts, tax returns, prudential and regulatory reporting); support and appropriate training for the accounting and regulatory V reporting teams of those consolidated entities that use the consolidation and data collection tools so that best practices are shared across the Company. The preparation of the consolidated financial statements also relies on: the use of a direct consolidationmethod, rolled out throughout the V Group, allowing for the analysis and control of the consolidation packages of each consolidated company via a formal review process; preparation of consolidated financial statements on a quarterly V basis. This allows for greater control over financial reportingwithin tight time frames; reporting and reconciliationof intra-group transactions at M-1 and V then at M, where M is the reporting month, thus increasing the number of reconciliations and contributing to the preparation of quarterly statements;

use of an automated control process for individual information V provided by the consolidated entities through the use of consolidationpackages that incorporateaccuracy and consistency checks, which must be complied with before the data can be transmitted; individual analysis of all entries impacting consolidated V shareholders’ equity and the preparation of supporting documents for taxes, including proof of deferred taxes, for each consolidated entity, thus contributing to the substantiation of consolidated shareholders’ equity. For the preparationof the consolidatedfinancial statementsand part of its regulatory reporting, Natixis has software that enables it to: produce a local IFRS-compliant reporting package, including, for V foreign entities, a reporting period foreign currency conversion feature; extend its data collection and consolidation processes to V regulatory reporting; guarantee the consistency of data relating to the banking and V insurance consolidation scopes; offer retrieval features that can be used to input data into the V various reports; offer BPCE access to Natixis’ data through dedicated interfaces, in V keeping with confidentiality rules given that Natixis islisted; secure the integrationprocess for consolidationpackages received V from international entities through the implementation of local first-level controls followed by centralized second-leveclontrols. To perfect its overall data collection system, Natixis is continuing to develop its consolidation tool by adding new modules or adapting existing modules to new standards (including the update of IFRS 9 as of January 1, 2018 and IFRS 16 as of January 1, 2019 and changes to FINREP reporting in 2020 and 2021), thus facilitating the compilation and preparation of certain regulatory reports (COREP capital reporting and FINREP), in addition to financial statements for publication. Natixis is also continuing its project to provide streamlined and pooled data, which is gradually being implemented through the introduction of a summary of all functions (accounting, regulatory, financial management and risk management), through quality accounting data and enabling the production of the new regulatory reports required by the regulator (MREL, Anatitres, Anacrédit) and allowing analyses at a granular level. Lastly, Natixis and Groupe BPCE as a whole ensure the publicationof their financial informationwithin a schedule in line with industry-wide practices.

5

455

www.natixis.com

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020