NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Internal control procedures relating to accounting and financial information

Internal control procedures relating 5.5 to accounting and financial information

PREPARATION AND PROCESSING 5.5.1 OF ACCOUNTING AND FINANCIAL INFORMATION The Finance Departmentprepares Natixis’ consolidatedfinancial statements and all consolidated regulatory reports (including solvency and liquidity ratios) using the tools and databases developedand administeredby NatixisS.A. As a listed company, Natixis prepares separate consolidated financial and regulatory statements, although the sub-group it leads has been included in the BPCE consolidationgroup formed by the Banque Populaire and the Caisse d’Epargne banks since July 1,2009. In this regard, the processes for preparing the consolidated financial statements and regulatory reporting are operationally autonomous,but linked to BPCE’sprocesses. The reliability of these process is based on the following core principles: definition and disseminationof the accounting and regulatory a principles applicable to Natixis companies, including the analysis and interpretationof new standards published during the period; documentation and oversight of the different stages in the a preparationof these reports; audit trails justifyingall publishedaccountingand management a data, based on the individualcontributionsmade by each entity and restatementsmade centrally; formal, documented first- and second-level controls a contributingto the managementof risks relating to accounting and financial information (balance sheet, income statement, regulatoryand financialinformation); data archivingand securityprocedures; a provision of support and appropriatetraining to the accounting a and regulatory reporting teams of those consolidated entities that use the consolidation and data collection tools, thus allowingfor best practicesto be spreadwithinthe Company. The preparation of the consolidated financial statements also relies on: the use of a direct consolidationmethod,rolled out throughout a the Group, allowing for the analysis and control of the consolidation packages of each consolidated company via a formalreviewprocess;

preparationof consolidatedfinancial statementson a quarterly a basis. This allows for greater control over financial reporting withintight time frames; reporting and reconciliationof intra-group transactions at M-1 a and then at M, where M is the reporting month, thus increasingthe numberof reconciliationsand contributingto the preparationof quarterlystatements; use of an automatedcontrol process for individual information a provided by the consolidated entities through the use of consolidation packages that incorporate accuracy and consistencychecks, which must be compliedwith before the data can be transmitted; individual analysis of all entries impacting consolidated a shareholders’ equity and the preparation of supporting documents for taxes, including proof of deferred taxes, for each consolidated entity, thus contributing to the final calculationof consolidatedshareholders’equity. For the preparationof the consolidatedfinancial statementsand part of its regulatoryreporting,Natixis has softwarethat enables it to: produce a local IFRS-compliant reporting package, including, a for foreign entities, a reporting period foreign currency conversionfeature; extend its data collection and consolidation processes to a regulatoryreporting; guarantee the consistencyof data relating to the banking and a insuranceconsolidationscopes; offer retrieval features that can be used to input data into the a variousreports; enable BPCE to access Natixis data through dedicated a interfaces; secure the integration process for consolidation packages a receivedfrom internationalentitiesthroughthe implementation of local first-level controls followed by centralizedsecond-level controls. In order to perfect its overall data collection system, Natixis is continuing to develop and add new modules or adapt existing modules to new standards(includingthe update of IFRS 9 as of January 1,2018) in its consolidationpackage,thus facilitatingthe compilationand preparationof certain regulatory filings (COREP capitalreportingand FINREP). Lastly, Natixis and Groupe BPCE as a whole ensure the publication of their financial information in accordancewith the industry-wideschedule.

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Natixis Registration Document 2017