NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Consolidated financial statements and notes

Derecognition 5.12 In accordancewith IAS 39, Natixis derecognizesall or part of a financialasset if the contractualrights to the cash flows from the financial asset expire. Natixis also derecognizes all or part of a financial asset if these contractual rights or substantially all the risks and rewardsof ownershipare transferred. If Natixis has neither transferred the contractual rights nor substantially retained all the risks and rewards, Natixis then determines whether it has transferred control of the asset. If control is considered to have been relinquished, the financial asset is derecognized.If the Group retains control of the asset, it remains on the balance sheet to the extent of Natixis’ “continuinginvolvement”. Continuing involvement is evidenced by the existence of contractualconditionssuch as: an optionor obligationto repurchasethe assetstransferred; a collectionof financial compensationlinked to the performance a of the asset transferred. A financial liability is derecognizedwhen it is settled, canceledor expires. Securitiessold are not derecognized.Natixis recognizesa liability representing the commitment to return funds received (“Securitiessold under repurchaseagreements”). Assignee b) Securities bought are not recognized but a receivable due from the assignee is recorded representing the funds lent. The amount disbursed in respect of the asset is recognized under “Securitiesacquiredunder repurchaseagreements”. At subsequent reporting dates, the securities continue to be valued by the assignor in accordancewith the rules applicableto the category in which they were initially classified. In the assignee’s accounts, the amount receivable from the assignor continuesto appear in the balancesheet. Securities lending and borrowing Securities lending/borrowing transactions do not involve the transfer of a financial asset within the meaning of IFRS. Consequently, these transactions do not lead to the derecognitionof the securities loaned. Securities loaned are not identified in IFRS: they remain recorded in their original IFRS category and measured accordingly. Borrowed securities are not recognizedby the borrower. Repurchase agreements Assignor a)

Transactions on derivatives and repurchase agreements carried out with clearing houses, whose operating principles meet the two criteria mentioned above, are offset in the balance sheet (see Note 6.3) . Provisions and contingent liabilities 5.14 A provisionis a liabilityof uncertaintimingor amount.A liability is a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodyingeconomicbenefitsthat can be reliablymeasured. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligationat the reportingdate. This amount is discountedwhen the effect of discounting is material. Provisions are reviewed at each reporting date and adjusted if necessary. Provisions recognizedon the balance sheet, other than provisions to cover employee benefits, mainly concern provisions for restructuring A provision for restructuring costs is recognized when the followingstandardcriteria for recognizingprovisionsand the two followingconditionsare met: There is a detailed formal plan for the restructuring on the a closingdate, identifyingat least: the operationsor part of the operationsconcerned; j the principallocationsaffected; j the location, function, and approximate number of j employees who will be compensated upon termination of their services; and provisionsfor risks and litigation. a) Provisions for restructuring Natixis has raised a valid expectation in those affected that it a will carry out the restructuring by starting to implement that plan or announcingits main featureson the closingdate. Provisions for restructuring costs include only expenditures directlyrelatedto the restructuring. In 2016, Cofacebookeda provisionfor restructuringin respectof the workforce adaptation plan. This plan included 148 early retirements and voluntary redundancies and mainly affected entities located in France and Germany. The residual amount of the provision for this plan at December 31, 2017 is stated in Noted6.16.2. b) Provisions for risks and litigation A descriptionof the main risks and litigation to which Natixis is exposed is given in Section 3.11of Chapter 3,“Risk and Capital Adequacy”. No contingentassetsor liabilitieswere recorded. Provisions booked on the liabilities side of Natixis’ financial statements as at December 31, 2017 and as at December 31,2015, are discussed in Note 6.16.2 “Contingency reserves” and possible allocations are specified in Note 7.5 “Other income and expenses”,Note 7.6 “Operatingexpenses” and Note 7.7“Provisionfor credit losses”. Changes in provisions are recognized in the income statement on the line items corresponding to the type of future expenditure. the expendituresthat will be undertaken; j and the date the planwill be implemented. j

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Offsetting financial assets 5.13 and liabilities

In accordance with IAS 32, Natixis offsets financial assets and liabilities, and a net balance is presented on the balance sheet, on the twofold condition that it has the legally enforceableright to offset the recordedamounts,and the intentioneither to settle the net amount or to simultaneouslyrealize the asset and settle the liability.

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Natixis Registration Document 2017