NATIXIS_PILLAR_III_2017_EN

3 CAPITAL MANAGEMENT AND CAPITAL ADEQUACY Composition of capital

Composition of capital 3.3

In accordance with the provisions introduced by the CRR and with the national provisions defined by the ACPR, regulatory capital (calculated based on shareholders’ equity in accordance with the accounting balance sheet), comprises three categories as described below. Each category comprises liability items extracted from the consolidated financial statements and restated by automatically applying deductions, either directly or subject to thresholds. Until 2021, regulatory capital is subject to phase-in arrangements and grandfathering provisions to support the roll-out of the CRR.

amount exceeding threshold 2 on deferred tax assets j dependent on future earnings and resulting from temporary differences, amount exceeding threshold 3 common to amounts not j deducted in respect of threshold 2, any surplus deduction of Additional Tier One capital (see j below) .

ADDITIONAL TIER ONE (AT1) CAPITAL

COMMON EQUITY TIER ONE (CET1)

AT1 capital comprises: subordinated debt instruments recognized as AT1 after a applying phase-in arrangements; deductions made from this category via the phase-in provisions a applied to CET1; any surplus deduction of Tier 2 capital (see below) . a The Risk and Pillar III report available on Natixis’ website ( www.natixis.com ) contains detailed information on debt instruments recognized in Additional Tier 1 capital and their characteristics at December 31, 2017, as required by Commission Implementing Regulation (EU) No. 1423/2013 (Annex II). T2 capital comprises: subordinated debt instruments recognized as T2 capital after a applying phase-in arrangements; deductions made from this category via the phase-in provisions a applied to CET1; any surplus provisions related to expected losses. a The Risk and Pillar III report available on Natixis’ website ( www.natixis.com ) contains detailed information on debt instruments recognized in Tier 2 capital and their characteristics at December 31, 2017, as required by Commission Implementing Regulation (EU) No. 1423/2013 (Annex II). At December 31, 2017, the transition from shareholders’ equity to regulatory CET1 capital, Tier 1 capital and total capital after applying phase-in arrangements, is summarized in the table below. TIER TWO (T2) CAPITAL

CET1 is calculated using shareholders’ equity (excluding reclassified hybrid securities), with the following restatements: deductions not subject to phase-in arrangements: a estimated dividend, j goodwill and intangible assets, j recyclable unrealized gains and losses on hedging j derivatives, own credit risk on debts issued and financial instruments j (Debit Value Adjustment), prudent valuation adjustments, j expected loss on equity positions and shortfall of provisions j on expected losses on credit positions, revaluation adjustments on defined-benefit pension plan j commitments; deductions subject to phase-in arrangements: a non-bank minority interests, j bank minority interests exceeding the limits set by j regulations, deferred tax assets dependent on future earnings, but not j related to temporary differences, recyclable gains or losses on available-for-sale assets, j company-controlled stock and cross-shareholdings, j amount exceeding threshold 1 on non-material holdings of j capital instruments issued by financial entities, amount exceeding threshold 2 on material holdings of capital j instruments issued by financial entities,

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NATIXIS Risk report Pillar III 2017