NATIXIS // 2021 Universal Registration Document

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

This approach applies to all contracts with customers except for leases (covered by IFRS 16), insurance contracts (covered by IFRS 4) and financial instruments (covered by IFRS 9). If specific stipulations relating to revenue or contract costs are specified under a different standard, these will be applied first. The main Natixis activities to which this approach applies are: fee and commission income, from banking services if this income V is not included in the effective interest rate, or from Asset Management or financial engineering services; income from other activities, in particular for services included in V leases. Commission income is recognized in income, according to the type of services rendered and the method of accounting for the financial instruments to which the service rendered is attached. If uncertainty remains regarding the measurement of a fee amount (performance fee for Asset Management, variable financial engineering fee, etc.), only the amount for which the Group’s entitlement is already assured given the information available on the reporting date is recognized. Fees for services are analyzed to separately identify their various components (or performance obligations) and assign to each component the share of income due to it. Each component is then recognized in income, according to the type of services rendered and the method of accounting for the financial instruments to which the service rendered is attached: fees and commissions for ongoing services, such as guarantee V fees or management fees, are deferred over the period during which the service is provided; fees and commissions for one-off services, such as business V provider fees, are recognized in income as soon as the service is provided. Fees for structuring and arrangement relating to the arranging of certain customer loans, notably as part of syndication transactions, are recognized in income at the legal date on which the transaction is completed or at the end of the syndication period (in the case of syndicated loans). Fees and commissions that form an integral part of the effective yield on an instrument, such as fees for loan set-up, are recognized and amortized as an adjustment to the effective interest rate over the estimated term of the applicable loan. These fees and commissions are recognized as interest income rather than “Net fee and commission income”. Any mismatch between the date of payment and the date of implementation of the service will generate an asset or liability depending on the type of contract and the nature of the mismatch and will be recorded under “Other assets” and “Other liabilities”. the tax payable by the various French companies at the rate of V 28.40% for the tax consolidation group, or at the rate in force locally for foreign companies and branches; deferred taxes arising from temporary differences between the V carrying amount of assets and liabilities and their tax basis, which are calculated using the balance sheet liability method. Deferred tax assets and liabilities are calculated at the level of each tax entity in accordance with local tax rules and based on tax rates that have been enacted or substantively enacted at the date the temporary difference will reverse. Deferred taxes are not discounted. Tax expenses 5.19 The tax expense for the fiscal year comprises:

Deferred tax assets are only recognized at the reporting date if the tax entity concerned is likely to recover tax savings over a fixed time period (10 years maximum). These savings will be realized by the deduction of temporary differences or tax loss carryforwards from estimated future taxable income within that time period. Deferred tax assets and liabilities are offset at the level of each tax entity. The tax entity may either be a single entity or, if applicable, a group of entities of which it is a part, that have elected for group tax relief. The deferred tax rate applied in France takes account of the tax cuts introduced by parliament through the various Finance laws. The corporate tax rate will decrease (excluding the effect of the social contribution of 3.3%) to 25% from 2022. All temporary differences have been recognized regardless of their recovery or payment date. The net deferred income tax balance is shown in the balance sheet under “Deferred tax assets”. The value-added contribution, or “Cotisation sur la Valeur Ajoutée des Entreprises” (CVAE), is recorded in the accounts as “Operating expenses,” since Natixis considers that its calculation is not based on net income. Financial guarantee commitments not classified as derivatives are contracts requiring the issuer to make specific payments to repay the business guaranteed for a loss that it has incurred owing to the failure of a debtor to make the contractual installments due. The exercise of these rights is subject to the occurrence of an uncertain future event. Financial guarantees given are stated initially at fair value, then subsequently at the higher of: the amount initially recognized upon inception less, where V appropriate, the amount of amortization recorded in line with the principles outlined in IFRS 15 “Revenue from Contracts with Customers”. This amortization represents the deferred recognition of the fees received over the period covered by the guarantee; and the amount of the provision determined according to the V provisions of the expected credit loss model (see Note 5.3) . The provisions are presented in Note 7.17 “Summary of provisions”. All of the financial guarantees issued by insurance subsidiaries that also meet the definition of an insurance contract were accounted for in line with the requirements of IFRS 4 “Insurance Contracts” (see Note 7.10) . Specific case of guarantees issued to mutual funds Natixis guarantees the capital and/or returns on units in certain mutual funds. These guarantees are executed solely in the event that the net asset value of each of the units in the fund at maturity is lower than the guaranteed net asset value. These guarantees are recorded as derivatives and are measured at fair value in accordance with the provisions of IFRS 13. Financing and guarantee 5.20 commitments a) Financial guarantees Commitments given

5

307

www.natixis.com

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021