NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Parent company financial statements and notes

In line with applicable accounting principles, a specific differently from the item as a whole. For buildings comprising amortizationschedule is defined for each significant component business and investment property, the following components of an itemof property,plant and equipmentwhich has a different and depreciationperiodsare applied: useful life or is expected to consume future economic benefits

Land:

non-depreciable non-depreciable 20 to 40 years 30 to 60 years 10 to 20 years 10 to 20 years

Non-destructible buildings (of historical importance):

Walls, roofs and waterproofing: Foundations and framework:

External rendering:

Equipment and installations: Internal fixtures and fittings:

8 to 15 years

Other items of property, plant and equipment are depreciated over their estimateduseful lives, generallyfive to 10 years. Purchasedsoftware is amortizedon a straight-linebasis over its estimateduseful life, which in most cases is less than five years. Internally generated software is amortized over its estimated useful life, whichcannotexceed15 years. 4. This line item comprises debt attributable to freely tradable securities held for sale issued by Natixis in France or in foreign countries, with the exception of subordinated instruments recognizedas subordinateddebt. This line item notably includes medium-term notes, interbank market instruments, negotiable debt securities and bonds and other fixed-incomesecurities. Accrued interest payable relating to these issues is disclosed separately as a related payable, with an offsetting entry in the incomestatement. Issue or redemption premiums on bond issues are amortized over the life of the issues in questionand the related expense is recognizedunder the heading“interestand similar expenses”on the incomestatement. 5. This item covers perpetual and dated subordinated notes, for which the redemptionin the event of liquidationranks behind all other creditors.Accrued interest is creditedto the corresponding receivablesitemon the incomestatement. Where perpetualsubordinatednotes are treated as equivalentto amortizingsecurities,each periodicpaymentis broken down into the repaymentof principal, which is deducted from the nominal amount, and interest,which is charged to the income statement under “interestand similarexpenses”. (futures and options) The notional amount of these instruments is recorded off-balance sheet for internal monitoring and regulatory purposes, but is not included in the published statement of off-balance sheet items. Details for these instruments are providedin the notes. The accounting principles applied depend on the instrument involved and the purpose of the transaction (hedging or for tradingpurposes). Debt securities Subordinated debt Forward financial instruments 6.

Interest rate and currency trading

These transactionsare carriedout for four purposes: micro-hedging(hedgingof specifictransactionsor positions); a macro-hedging(overallasset and liabilitymanagement); a speculativeposition-taking; a specializedmanagementof a tradingportfolio. a Gains or losses on specifichedgesare recognizedin incomeon a symmetricalbasis with the income and expensesof the position or transactionbeing hedged. Expensesand income arising from forward financial instruments used to hedge and manage Natixis’ overall interest rate risk are recognizedover the period of the position. Unrealizedgains and lossesare not recognized. The accountingtreatmentof speculativepositions is identical for interest flows. Contracts are marked to market value at each reportingdate and any unrealizedlosses are taken to the income statementas provisions. Each instrumentin the final category is marked to market on an individual basis. Changes in value during the period are recognizedimmediatelyon the income statement.Valuationsare adjusted for counterpartyrisk, the position funding cost and the discounted present value of future contractual management costs. Forward foreign exchange contracts Outright foreign currency futures or transactions hedging other foreign currency futures are measured based on the forward foreign exchange rate remaining to run on the currency in question. Differences in interest rates or premiums and discounts associated with hedged foreign currency futures are recognized in stages as interest expense or income over the effectivetermof the transaction. Options (interest rate, currency and equity) and futures The notional amount of the underlyinginstrumentof each option or futures contract is recognized with a distinction being made betweenhedgingand tradingcontracts. For hedging transactions, income and expenses are recognized in incomeon a symmetricalbasis with the income and expenses of the hedgeditems. For non-hedging activities, positions in a class of options or forward contracts are revalued on situation in the market value. When these financial instruments are not sides on active markets, this value is generallydeterminedfrom internal models integrating if necessary valuable adjustments determined accordingto the concernedinstrumentsand the associatedrisks

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Natixis Registration Document 2017