NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Internal control procedures relating to accounting and financial information

For Natixis, the system is organized based on: accounting or regulatory production teams, within the business V lines or centralized within the Accounting and Ratios Department, that handle all work related to the correct entry of transactionsand the collection of data required for regulatory and prudential reporting and the implementation of day-to-day controls; first-level controls under the hierarchical and/or functional V authority of the Accounting and Ratios Department including all monthly and quarterly controls; independentsecond-levelcontrolsunder the hierarchicalauthorityof V the Accountingand Ratios Departmentand the functionalauthority of the Compliance Department. The Permanent Financial Control-LOD2Department,in addition to managingthe system, also performs its own controls, including the review of first-lecvoelntrols; dedicated tools that allow for the automated reconciliation of V account entries and centralization of control results using an internal application. This entire system contributes to the security and reliability of published financial information. As part of the coordination of the financial control function within Natixis, the Permanent Financial Control-LOD2 Department carries out the following tasks: definition of the control policy applicable to Natixis and its V subsidiaries:organizationaland operationalprinciplesof permanent internal control for accounting, fiscal and regulatory matters, in accordance with the policy established by Groupe BPCE; management of the control system within the subsidiaries, V working with the Permanent Financial Control officers appointed by each of the local Financial, Compliance or Risk Departments. This takes place through quarterly Financial Control Committee Meetings, themed workshops, and bilateral cooperation with international entities and platforms; monitoringand implementingan accountingand regulatorycontrol V environmentwithin each entity by collecting and operating a set of periodic reporting dashboards. The results of these dashboards are then sent to each entity, including a process for alerting the finance, complianceor risk officers and, if necessary, the central or local Control Functions Coordination Committees. In 2020, the highlights of the accounting and financial control environment included: maintaining a tight schedule for preparing the various financial V reports despite the health context related to Covid-19; permanent adaptation of production and control processes, taking V into account the constraint of remote working, which made it possible, with the use of a robust IT infrastructure and the use of new communication tools, to maintain the quality of the financial information, reinforcing the control system and the integration of new reporting required by the regulator; the announcement of the proposed sale of Coface which led V Natixis to treat the entire scope under the equity method and in accordance with IFRS 5 since the first quarter of 2020; the continuation of large-scale projects to streamline the V information systems used for market and financing transactions (front- and back-office systems), and the migration of the associated software, which continued in 2020;

the continuation of a project to streamline and pool data input by V setting up a data lake shared by all overview functions (Risk, Accounting and Ratios, Financial Oversight and Financial Management). Using a data lake, the project allows the direct generation of certain reports, integrates processes such as intra-group management, granular analysis of provision for credit losses items and developing new controls by cross-referencing data; the continuation of the project to roll out the Group’s target V management tools within the Asia-Pacific and US platforms, with the scope of financing continued to roll out in Asia; the adaptation of productionprocesses relating in particular to the V new FINREP 2020 reporting, the new definition of default implementedin the fourth quarter, the establishmentof a daily LCR to meet the regulator's expectations; the continuation of projects related to changes in standards such V as IFRS 17 in the accounting field, which will concern all Insurance entities, and in the CRR2 and Basel 3 Revised regulatory field; strengthening of accounting and financial information controls, V particularly regarding manual inputs, measures implemented by the state to support French companies in the current economic climate, anti-corruption and tax avoidance regulations; the implementationof the digitization initiatives launched in 2019, V notably through the deployment of a new expense report management tool in the first half-year, the implementation of a centralized tool for managing and monitoring financial statements in the second half-year as well as the deployment of a tool for reporting the results of first- and second-level controls rolled out within the scope of Natixis S.A. during the second half-year; the reinforcement of local control system monitoring processes V and support for Permanent Financial Control officers, particularly internationallyon all European, Americanand Asian BGC platforms, and in France for the Life Insurance business. Work in 2021 will be focused on the following actions: continuation of projects resulting from regulatory and normative V changes, such as SURFI 2020 (RUBA reporting) whose implementation has been postponed by the regulator, FINREP 2021, Basel 3 revised – CRR2, IFRS 17 (for insurance entities), etc; the ongoing progress of the project to streamline the information V systems used for market and financing transactions in France and abroad; the continued implementationof the project to streamlineand pool V data used by the various synthesis systems, with the launch of a large-scale contract data project to streamline our architecture by integrating one central process for accounting and management data, as well as a single adjustment process at the service of all downstream consumers; strengthening finance/risk governance and controls for valuation, V observability and fair value hierarchy for financial products; continued deployment of the tool for reporting the results of first V and second level controls in Natixis subsidiaries and branches; the continuation of the actions undertaken to strengthen first and V second-level controls, particularly in the area of accounting to combat corruption in order to comply with the directives of the French Anti-Corruption Agency, on the prudential and regulatory areas for adapting systems to changes in 2021, and more generally in the field of“Data”, to meet BCBS 239 requirements.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020