NATIXIS // 2021 Universal Registration Document

5 CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2021 Consolidated financial statements and notes

2.9

Currency conversion of the statements of foreign subsidiaries

and branches Natixis’ consolidated financial statements are prepared in euros. The balance sheets of foreign subsidiaries and branches whose functional currency is not the euro are translated into euros at the closing exchange rate, except for share capital, reserves and capital allocations, which are translated at the historical exchange rate. Income and expenses are translated at the average exchange rate for the period. Any resulting translation gains or losses arising, regarding both balance sheet and income statement items, are recognized in shareholders’ equity under “Translation adjustments” for the portion attributable to the Group and “Non-controlling interests” for the portion attributable to third parties.

In the event of the total or partial disposal of an entity or the capital repayment of an entity, translation gains or losses are reclassified as income in proportion to the cumulative amount of the exchange differences recognized in recyclable shareholders’ equity under “Translation adjustments”. Natixis elected to use the option available under IFRS 1 on first-time adoption, namely to transfer the cumulative balance of the translation adjustments existing as at January 1, 2004 to consolidated reserves. If a foreign entity is subsequently sold, the gain or loss on the disposal will include only those translation gains or losses arising after January 1, 2004.

282

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021