NATIXIS // 2021 Universal Registration Document

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

estimated useful lives on a straight-line, declining or increasing balance basis, whichever best reflects the pattern in which the economic benefits are consumed. The residual value of the asset is deducted from its depreciable or amortizable amount when it can be measured reliably. Natixis does not believe it can reliably measure the residual value of items other than land and non-destructible buildings classified as historical monuments. They are therefore assigned a residual value of zero. In line with IAS 16, a specific depreciation schedule is defined for each significant component of an item of property, plant and equipment which has a different useful life or is expected to consume future economic benefits differently from the item as a whole. For buildings used in the business and investment property, the following components and depreciation periods have been identified:

5.7

Property, plant and equipment, intangible assets (excluding goodwill) and investment property

Fixed assets recognized on the balance sheet include property, plant and equipment, intangible assets, and investment property. The rights of use in respect of leased assets (of which the main items are described in Note 5.2) are presented under fixed asset lines corresponding to similar assets owned of which Natixis has full ownership. Measurement on initial recognition Investment property, shown separately from other fixed assets on the balance sheet, consists of property held with the aim of generating leasing revenues rather than for operating purposes. On the first-time adoption of IFRS, property, plant and equipment and investment property were maintained at historical cost as permitted by the options available under IFRS 1, except for property held by insurance companies which is carried at fair value through profit or loss. Property, plant and equipment and investment property are recorded at their purchase price on the acquisition date, including directly attributable costs (transfer duties, fees, commissions and registration expenses) as well as borrowing costs when these meet the criteria for capitalization set out in IAS 23 “Borrowing costs”. Computer software developed in-house is recognized under “Intangible assets” at its direct cost of development, which includes the related hardware costs, service costs, payroll costs directly attributable to the production and preparation of the software for use, and borrowing costs when these meet the criteria for capitalization set out in IAS 23 “Borrowing Costs”. Expenses incurred during the development phase are capitalized if they meet the criteria for recognition as intangible assets set out in IAS 38: these include technical feasibility, the intention to complete the asset and use or sell it, the probability that the asset will generate future economic benefits, the availability of resources, and the ability to reliably measure the expenditure attributable to the asset’s development. Costs incurred during the research phase are not capitalized but are recognized in expenses. Subsequent measurement After initial recognition, assets are measured at cost less accumulated depreciation, amortization and impairment losses. Investment property held by insurance companies is measured at fair value through profit or loss in accordance with IAS 40 and IFRS 4. For both, the fair value is obtained using a multi-criteria approach based on the capitalization of rents at the market rate combined with a comparison with market transactions. In accordance with Article R. 332-210-1 of the French Insurance Code, a five-year appraisal is conducted by an independent expert approved by the French Prudential Supervisory Authority. Between two appraisals, the market value of property is certified by experts on a half-yearly basis. Depreciation and amortization As soon as they are in a condition to be used by Natixis in the manner in which they were intended, property, plant and equipment and intangible assets are depreciated or amortized over their

Component

Depreciation period

Land

NA NA

Non-destructible buildings classified as historical monuments Walls, roofs and waterproofing

20-40 years 30-60 years 10-20 years 10-20 years 8-15 years

Foundations and framework

External rendering

Equipment and installations Internal fixtures and fittings

Other items of property, plant and equipment are depreciated over their estimated useful lives, generally five to ten years. When the fixed assets relate to a leased building, their depreciation period is made consistent with that of the leases. Purchased software is amortized on a straight-line basis over its estimated useful life, which in most cases is less than five years. Internally generated software is amortized over its estimated useful life, which cannot exceed fifteen years. Other intangible assets mainly consist of components of the customer portfolio, which are amortized over the term of the contracts (average term of 5 to 8 years for the United States and 10 years in Australia). Depreciation periods must be reviewed annually and, where applicable, the impact of any change in estimate is recognized prospectively, in income, from the date of the change. Depreciation of fixed assets is presented under “Depreciation, amortization and impairment of property, plant and equipment and intangible assets” in the consolidated income statement. Impairment Assets are tested for impairment whenever there is objective evidence that they may be impaired and at least annually in the case of intangible assets with an indefinite useful life. Natixis considers whether there is any evidence of impairment at each reporting date. If any such evidence exists, the recoverable value of the individual asset is estimated wherever possible; otherwise the recoverable value of the CGU to which the asset belongs is estimated. The recoverable value is the higher of fair value less selling costs and value in use, which is the present value of future cash flows. If the recoverable value of the asset or CGU is lower than its carrying amount, an impairment loss is recognized in income under “Depreciation, amortization and impairment of property, plant and equipment and intangible assets”.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021