NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Internal control procedures relating to accounting and financial information

independent second-level controls under the hierarchical a authority of the Accounting and Ratios Department and the functional authority of the Compliance Department. The Regulatoryand AccountingReviewteam, aside frommanaging the system, also performs its own controls, including the reviewof first-levelcontrols; dedicated tools that allow for the automated reconciliationof a account entries and centralization of control results using an internalapplication. In addition to the operational control tasks delegated to it, the Regulatory and Accounting Review team also fulfills the following duties in respect of the organization of the control functionwithinthe Group: definition of the control policy applicable to Natixis and its a subsidiaries: organizational and operational principles of permanentinternal control for accounting,fiscal and regulatory matters, in accordancewith the policy established by Groupe BPCE; coordination of the control system within the subsidiaries, a working with the Review officers appointed by each of the local financial,complianceor risk departments.This takes place through quarterly revision committee meetings, themed workshops,and bilateral cooperationwith internationalentities and platforms; monitoring and implementing an accounting and regulatory a control environment within each entity by collecting and operatinga set of periodicreportingdashboards.The results of these dashboards are then sent to each entity, including a processfor alertingthe accountingor financeofficers. In 2017, the highlights of the accounting and financial control environmentincluded: preserving a strict schedule for preparing the various financial a filings; the continuation of large-scale projects to streamline the a information systems used for market transactions (front- and back-office systems), and the migration of the associated software,which continuedin 2017; increasingly automated production of liquidity reporting (LCR, a NSFR and AER), within the same application chain, reducing the number of manual entries and guaranteeingthe auditability of data; the continuationof a project to streamlineand pool data input a by setting up shared data warehouses for all overview functions(Risk, Accountingand Ratios, FinancialOversightand FinancialManagement); the launch of a project to enable the introduction within the a Asia-Pacific platform of specialized tools that have been progressivelyused and phasedin at Natixissince 2008;

the continuedoverhaulof the Natixis Factor overviewsystems a which in 2017 saw the deployment within the subsidiary of specializedaccountingand reconciliationtools; the work and discussions on the adjustment of production a processes to IFRS 9, mainly on account of the new provisioningmechanismand the creation of a shared tool for calculatingprovisions,linked to a database; the strengthening of prudential, fiscal and, more generally, a manualentry controls; the reinforcement of monitoring processes of local control a systemsand supportfor the Reviewofficers,particularlythose coveringAlgeriaand the EMEAplatform. Work in 2018will be focusedon: implementing the production process and the associated a control environment relative to IFRS 9, applicable as of January1,2018; continuing the progress of the project to streamline the a informationsystems used for market transactions(back office systems); continuingthe progressof the projectto streamlineand pool of a data used by the various overview systems, which are set to be used for the first time in 2018 to produce certain prudential reports; finalizing the overhaul of the Natixis Factor overviewsystems, a particularlyin the areas of risk and financialmanagement; in the Asian entities, deploying specialized accounting and a reconciliationtools; adjusting the production and control processes in accordance a with IFRS 16, relativeto leases; continuing initiatives committed to strengtheningsecond-level a controlsin accountingand regulatorymatters. In addition to the control procedures followed by the Finance Departmentsresponsiblefor preparing individual or consolidated accounts,the qualityof accountingcontrolsis verifiedby: ad hoc audit assignments conducted by BPCE’s General a Inspectionand Natixis’InternalAudit Department; inspectionscarriedout by the bankingsupervisoryauthority; a audits conducted by Statutory Auditors. This work is carried a out by a group of firms working in a uniform manner each quarter on most of the entities falling within Natixis’ scope of consolidation and whose opinions rely, in particular, on compliancewith policies determinedand validatedbeforehand by Natixis and the effectiveness of local internal control procedures. EXTERNAL CONTROLS 5.5.3

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Natixis Registration Document 2017