NATIXIS - Universal registration document and financial report 2019

FINANCIAL DATA Consolidated financial statements and notes

Note 1

Basis of presentation

As a financial conglomerate, Natixis elected to apply this provision for its insurance operations, which will continue to be covered by IAS 39. The main entities concerned by this measure are the Coface insurance subsidiaries, Natixis Assurances, BPCE Vie and its consolidated funds, Natixis Life, BPCE Prévoyance, BPCE Assurances and BPCE IARD. Pursuant to the implementing regulation of November 3, 2017, the Group took the necessary measures to prohibit any transfer of financial instruments between its insurance operations and the rest of the Group that would have a derecognizing impact for the transferring entity, although this restriction is not required for transfers of financial instruments measured at fair value through profit or loss by both sectors involved. The accounting principles and methods used to prepare the consolidated annual financial statements of Natixis at December 31, 2019 are identical to those used to prepare the consolidated financial statements for the fiscal year ended December 31, 2018, prepared in accordance with IFRS as adopted in the European Union and detailed in Note 2 “Basis of presentation” to the consolidated financial statements for fiscal year 2018 (presented in Chapter 5.1 “Financial data – Consolidated financial statements and notes” of the 2018 Registration Document), with the exception of the following standards, amendments and interpretations, which took effect as of January 1, 2019: IFRS 16 “Leases” , adopted by the European Commission on V October 31, 2017. This standard will replace IAS 17 “Leases” and the interpretations relating to the accounting of these contracts. It became applicable retrospectively on January 1, 2019, according to specific phase-in conditions. Under IFRS 16, the definition of leases implies the identification of an asset and control by the lessee of the right to use the asset. IFRS 16 primarily affects the recognition of operating leases by the lessee, which is required to report leases in the balance sheet under “right of use” on the asset side and under “lease liabilities” on the liabilities side. The impacts associated with the first-time application IFRS 16 and the related accounting principles are addressed in Notes 2 and 6.2, respectively. The IFRS IC conducted an analysis of several subjects over the course of 2019 to decide upon the need to clarify certain aspects of the standard. These notably concern the legally enforceable term of certain indefinite term leases and the impact of non-removable leasehold improvements on the assessment of the legally enforceable lease terms. The IFRS IC’s final decision on these issues was published on November 26, 2019. The impacts of these decisions on Natixis’ accounts are currently being assessed; IFRIC 23 “Uncertainty over Income Tax Treatments” adopted by V the European Commission on October 23, 2018 with mandatory application from January 1, 2019. This interpretation clarifies the procedures for recognizing and measuring payable and deferred tax if there is uncertainty over the tax treatment applied. Where a reporting entity is uncertain that a particular tax treatment will be accepted by the tax authority in accordance with tax laws in force, the tax treatment in question is an uncertain tax treatment. In the event it is not probable that the tax authority will accept a particular tax treatment, IFRIC 23 states that the amount of the uncertainty to be disclosed in the financial statements shall be estimated using the method that provides the best prediction of the resolution of the uncertainty. To determine this amount, the reporting entity may either use the most likely amount or the expected value of the tax treatment (i.e. the weighted average

1.1

IFRS standards

and IFRIC interpretations applied by the Group

As required by Regulation (EC) No 1606/2002 of July 19, 2002, Natixis has prepared its consolidated financial statements for the year ended December 31, 2019 in accordance with IAS/IFRS standards and IFRIC interpretations as adopted by the European Union and applicable on that date (1) . Natixis’ consolidated financial statements include a balance sheet, income statement, statement of net income/(loss) and other comprehensive income, statement of changes in shareholders’ equity, cash flow statement and notes to the financial statements. The financial statements presented for comparative purposes were published by Natixis in the 2018 registration document filed with the Autorité des Marchés Financiers (AMF – French Financial Markets Authority) on March 15, 2019. In accordance with Regulation (EU) 2017/1129 relating to the publication of prospectuses and Commission Delegated Regulation (EU) 2019/980 relating to the information contained in prospectuses, the financial statements for the year ended December 31, 2017, which were published in the 2017 registration document filed with the AMF on March 23, 2018, are included for reference in this registration document. It should be noted that the new IFRS 9, “Financial Instruments”, adopted by the European Commission on November 22, 2016, is retrospectively applicable as of January 1, 2018. IFRS 9 replaces IAS 39 and defines the new rules for classifying and measuring financial assets and liabilities, a new credit risk-based impairment model for financial assets, and a new method of hedge accounting, except for macro-hedging, for which the IASB is currently studying a separate draft standard. Natixis elected to take the option offered by IFRS 9 not to apply the standard’s provisions pertaining to hedge accounting and to continue applying IAS 39 for the purpose of recognizing hedging transactions, as adopted by the European Union, i.e. excluding certain macro-hedging provisions. Furthermore, on November 3, 2017, the European Commission adopted the amendment to IFRS 4 on the joint application of IFRS 9 “Financial Instruments” and IFRS 4 “Insurance Contracts”, with specific provisions for financial conglomerates, with effect from January 1, 2018. Under European regulations, European financial conglomerates may defer application of IFRS 9 to their Insurance divisions until January 1, 2021 (effective date of application of the new IFRS 17 “Insurance Contracts”) as long as they: do not transfer financial instruments between the Insurance V division and other divisions of the conglomerate (with the exception of financial instruments at fair value through profit

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or loss for the two divisions affected by the transfer); indicate the insurance entities that apply IAS 39; V provide specific additional information in the Notes. V

At its meeting of November 14, 2018, the IASB decided to postpone the effective date of IFRS 17 “Insurance Contracts” by one year until January 1, 2022. The decision was also made to postpone the scheduled temporary exemption from IFRS 9 for insurers to coincide with the application of IFRS 17 from January 1, 2022.

The complete body of standards adopted by the European Union may be consulted on the European Commission website at: (1) http://ec.europa.eu/finance/company-reporting/ifrs-financial-statements/index_fr.htm.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019