NATIXIS // 2021 Universal Registration Document

INDIVIDUAL FINANCIAL STATEMENTS AT DECEMBER 31, 2021 Individual financial statements and notes

specializedmanagement of a trading portfolio are also classed as securities held for trading. In order to be eligible for this category, the securitiesmust be tradable on an active market as of the date of their initial recognition and their market prices must be accessible, representing actual transactions regularly occurring in the market under normal trading conditions. On acquisition, securities held for trading are recognized at the price paid including any accrued interest. Transaction costs are recognized in expenses. At each balance sheet date, they are measured at market value and the grand total of any valuationdifference is recognizedon the income statement under the heading “Balance of transactions on securities held for trading”; securities held for sale: securities which are not classified in any V other category are considered as securities held for sale. They are reported on the balance sheet at their purchase price, excluding acquisition costs. Any difference between the purchase price (excluding accrued coupons) and the redemption price is recognized in income pro rata to the remaining life of the securities. They are valued at year-end at their lowest carrying amount or market value. Unrealized losses give rise to the recognition of an impairment loss, whose calculation factors in gains from any hedging transactions conducted. Unrealized gains are not recognized; securities held for investment: securities held for investment are V dated fixed-incomesecurities acquired with the stated intention of holding them to maturity and for which Natixis has the ability to hold them through to maturity. They are reported on the balance sheet at their purchase price, excluding acquisition costs. Any difference between the purchase price and the redemption price is recorded in income pro rata to the remaining life of the securities. In line with regulatory requirements, unrealized losses are not subject to impairment, unless there is a strong likelihood that the instruments will be sold before maturity due to unforeseen circumstances or if there is a risk of default by the issuer of these instruments. Unrealized gains are not recognized; equity investments, investments in subsidiaries and affiliates and V other long-term investments: other long-term investments: investments made by Natixis in V the form of securities, with the intention of forging lasting professional relationships and creating a special relationship with the issuing company, but without any influence over the management of the corporate entities in which investments were made due to the low percentage of voting rights held. They are recognized at their acquisition date at the purchase price excluding acquisition costs. They are included in the balance sheet at their lowest historical cost or value in use. Unrealized losses are subject to a provision for impairment, equity investments: investments in the form of securities that V are deemed useful to Natixis’ business if held for the long term. They are recognized at their acquisition date at the purchase price excluding acquisition costs. These securities are valued individually at their lowest value in use at the reporting date or their acquisition cost. Unrealized losses are subject to a provision for impairment,

Provisions for geographic risk are primarily based on each country’s internal rating, incorporating different parameters and indicators (political situation, performance of the economy and economic outlook, banking system situation, etc.). Calculation of the impairment loss is based on a correlation table between the internal rating and provisioning rate, with a revision to the rate allocated to a provisioning scale possible. Provisions for sector risk are based on combinations of indexes specific to each sector (sector growth, cash held by businesses in the sector, cost of commodities,etc.). The method for calculatingthe impairment loss is the “expected loss” method calculated at maturity. The COVID-19 health crisis is a global crisis affecting all the geographical areas in which Natixis operates, while its impact is much more differentiatedaccording to the economic sectors. In this context, and taking into account a methodology based solely on country risk on the one hand and sector risk on the other, it appeared that the sector criterion represented the most relevant approach to collective risk. Accordingly, a change in the methods used to calculate collective provisions was made in 2020 to retain the sector-based criterion as the first objective indicator of risk deterioration. These calculation methods were maintained for the 2021 fiscal year. Loans on the watch list, for which a Basel default has been identified, are impaired collectively by sector unless they are already subject to specific write-downs. Provisions for sector and country risk are shown under liabilities in the balance sheet. 2.2 Securities are, in accordance with Book II – Title 3 “Accounting treatment of securities transactions” of Regulation No. 2014-07 of the ANC, classified according to: their type: government securities (treasury bills and similar V securities), bonds and other fixed-income securities (negotiable debt securities and interbank market instruments), shares and other variable income securities; the economic purpose for which they are held, into one of the V following categories: held for trading, held for sale, held for investment, other long-term securities, investments in associates and investments in subsidiaries and affiliates. The buying and selling of securitiesare recorded in the balance sheet at the settlement-delivery date. In the event of a securities lending transaction, the securities loaned cease to appear on the balance sheet and a receivable representing the carrying amount of the securities loaned is recognized as an asset. In the case of a securities borrowing transaction, the borrowed securities are recorded in the trading securities category with a matching liability corresponding to the securities debt to the lender for an amount equal to the market price of the securities borrowed on the date of borrowing. Borrowed securities (including borrowed securities that have been loaned out) are presented in the balance sheet as a deduction from the debt representing the value of the borrowed securities. The applicable classification and measurement rules are as follows: securities held for trading: securities that are originally bought or V sold with the intention of reselling or repurchasing them in the short term, and securities held as part of a market-making operation. Securities bought or sold for the purposes of the Securities portfolio

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021