NATIXIS // 2021 Universal Registration Document

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

out by the tax authority on similar uncertainties. Natixis reviews the estimate of the amount it expects to pay to or receive from the tax authority in respect of tax uncertainties, in the event of changes in associated events and circumstances, which may arise, for example, from changes in tax laws, the end of a limitation period, or the outcome of controls and initiatives conducted by the tax authorities. Other provisions Provisions recognized as liabilities in the consolidated balance sheet, other than those relating to financial instruments, employee benefits and insurance policies, mainly concern provisions for litigation, restructuring, fines and penalties. A provision is raised when it is likely that an outflow of resources embodying economic benefits will be required to settle an obligation arising from a past event, and when the amount of the obligation can be reliably estimated. In order to calculate this amount, Natixis is required to assess the probability of the risk occurring. Future cash flows are discounted where the impact of discounting is material. Climate risks The environmental and climate emergency is one of the greatest challenges facing the world's economies and all economic players today. The financial sector can and must spearhead the ecological transition by channeling funds into a sustainable economy. Convinced of the importance of the risks and opportunities arising from climate change, Natixis has made the energy and climate transition one of the priorities of its strategy for several years (see Note 7.3.3 in Chapter 7 “ESR Report 2021”). Natixis is exposed, directly or indirectly, to several climate-related risk factors. To qualify them, Natixis has adopted the risk terminology proposed by the TCFD (Task Force on Climate-Related Financial Disclosures): “Transition risk” and “physical risk”. As part of the risk appetite and the risk identification process, the assessment of the materiality of these risks will be reviewed annually and, if required, may be refined using new measurement methodologies. The transition risk is currently taken into account in the internal assessment of Natixis’ capital requirements (ICAAP process). Indeed, the internal rating models of counterparties already take into account possible changes in the economic environment within a reasonable timeframe (one to three years) and therefore cover the possible impacts of the climate transition even if these cannot currently be separated. Discussions are underway to better take into account the potential long-term impact of the transition risk by deploying stress tests. Within Corporate & Investment Banking, Natixis has also gradually deployed several tools to assess and manage its exposure. Natixis assesses the effects of its transactions on the climate by assigning a climate rating ("Green Weighting Factor color rating") either to the asset or to the project financed, or to the borrower in the case of general purpose financing. The process of identifying, quantifying and managing climate-related risks will be strengthened in the coming years, in particular by completing the risk quantification and physical risk monitoring system. With regard to the preparation of its consolidated financial statements, Natixis is continuing its work to gradually integrate climate risks.

Liabilities related to insurance policies Insurance technical reserves are calculated using assumptions and estimates that may lead to adjustments in amounts reported over the subsequent period: for personal protection insurance, claims reserves are calculated V by modeling claims experience; for life insurance, underwriting reserves are computed based on V economic and financial assumptions, mortality and morbidity tables, and behavioral statistics, for example concerning redemptions; for non-life Insurance, technical reserves comprise provisions for V unearned premium income (calculated on an accrual basis and representing the portion of premiums issued during the period that relate to a period after the reporting date) and reserves for claims to be paid, corresponding to known and unknown claims that have occurred but not yet been paid at the reporting date. Liability adequacy test In accordance with IFRS 4, insurance technical reserves are calculated using methods stipulated by local regulations. A liability adequacy test is carried out in order to ensure that the insurance liabilities as presented in the consolidated financial statements are sufficient to cover future cash flows estimated at that date. The test is based on a stochastic modeling of discounted future flows. If the liability is inadequate, potential losses are fully booked in net income. Deferred profit-sharing The participation rate used to calculate deferred profit-sharing is determined based on payout ratios projected over the term of the medium-term plan and in line with the actual pay-out ratio for the previous fiscal year. In the event of a deferred profit-sharing asset, a recoverability test is carried out to verify that liquidity requirements arising from an unfavorable economic environment do not force the sale of assets and generate unrealized losses. This recoverability test relies on projected future cash flows based on various economic assumptions about historical redemptions and inflows (see Note 8.2.5) . Deferred taxes As a precaution, Natixis records a net deferred tax asset linked to its ability to generate taxable income over a given period (10 years maximum), while tax loss carry forwards are deductible with no time limitation in France and the UK or over very long periods (20 years in the US for tax losses prior to January 1, 2018). To that end, Natixis prepares tax business plans based on the medium-term plans for the business lines. Uncertainty over income tax treatments (IFRIC 23) Natixis discloses uncertainty over income tax treatments in its financial statements where it concludes that it is not probable that the tax authority will accept them. To determine if a tax position is uncertain and assess its impact on the amount of the Group’s income tax, Natixis assumes that the tax authority will verify all reported amounts with comprehensive knowledge of all available information. It bases its judgment in particular on administrative doctrine, legal precedence and the history of rectifications carried

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021