NATIXIS - Universal registration document and financial report 2019

5 FINANCIAL DATA

Consolidated financial statements and notes

The following assumptions were used: estimated future cash flows: forecast data drawn from multi-year V plans established by the business lines and updated as part of the 2020 budget process; perpetual growth rate: 2.5% for all valuations; V discount rate: use of a specific rate for each CGU: 9.1% for Asset & V Wealth Management (8.7% in 2018), 11.4% for CIB (10.6% in 2018), 10.6% for Insurance (10.2% in 2018), 9.2% for Coface (9.3% in 2018) and 6.9% for Payment. The discount rates were determined by factoring in the following: for the Insurance and Payment CGUs, the risk-free 10-year French V Treasury bond rate, averaged over a depth of 10 years, and for the Asset & Wealth Management and CIB CGUs the average of the 10-year French and US government bond rates, averaged over a depth of 10 years. A risk premium calculated on the basis of a sample of companies which are representative of the CGU is then added to these rates; for the Coface CGU, the interest rate references used were V determined according to a similar method to the other CGUs, using samples of equivalent companies for the insurance and factoring activities. These tests did not result in the recognition of impairment losses at December 31, 2019. A 30 bp increase in discount rates (assumption based on the historical annual variability observed over one year using 2012-2019 historical data) combined with a 50 bp reduction in perpetual growth -7.8% for the Insurance CGU; V -12.9% for the Payment CGU; V -4.3% for the Coface CGU, V and would not lead to the recognition of any impairment losses for these CGUs. Similarly, the sensitivity of future business plan cash flows to changes in key assumptions does not significantly affect the recoverable value of the CGUs: for Asset & Wealth Management, a 10% decline in the equity V markets (uniform decline across all years) would have a -6% negative impact on the CGU’s recoverable value and would not lead to the recognition of an impairment loss; for Corporate & Investment Banking, sensitivity to the dollar or to V higher liquidity costs would have a limited impact on net revenues and would not lead to any impairment being recorded; for Insurance, the main vector of sensitivity for life insurance is V interest rates, but various steps are being taken to reduce their impact (diversification of investments, reserves, etc.). Accordingly, the impact on the income statement is limited and would not significantly affect the CGU’s value; rates would reduce the value in use of CGUs by: -9.7% for the Asset & Wealth Management CGU; V -3.9% for the Corporate & Investment Banking CGU; V

Goodwill on contributed entities As the contributions were recognized at their net carrying amount under IFRS, no valuation adjustments have been recorded for the various assets and liabilities contributed. The difference between the acquisition cost and the Group’s interest in the net assets of the contributed entities does not constitute goodwill within the meaning of IFRS 3, since the acquisition cost takes into account the real value of the shares, while the contributions were recognized at their net carrying amount. Each of the differences observed was recognized in “Consolidated reserves”. An amount of €3.170 billion was charged against the share premium in this respect at December 31, 2006. Goodwill on other transactions The goodwill arising from the transaction resulting in the creation of Natixis amounted to €484 million, which breaks down as follows: €229 million for the former IAMG, €21 million for the former IXIS CIB and €8 million for the former Novacrédit, plus the goodwill recorded in “Investments in associates” relating to the Caisse d’Epargne CCIs (€190 million) and the Banque Populaire CCIs (€36 million). Since then, goodwill relating to the former IXIS CIB has been fully written-down. In light of the sale of the cooperative investment certificates during fiscal year 2013, the associated goodwill is no longer included in the consolidated balance sheet. Other goodwill In 2019, goodwill increased by +€61 million, excluding translation adjustments (+€34 million). Impairment tests All items of goodwill are impaired, based on the value in use of the cash-generating units (CGUs) to which they have been allocated. For the Coface CGU, a listed entity since June 2014, which is not one of Natixis’ core businesses and which is managed on an asset basis, as in previous years, value in use was supplemented by other approaches using market data including market multiples, stock market prices and brokers’ target prices. An average valuation was determined by weighting the different approaches, with the respective weighting of each approach unchanged compared with the previous fiscal year. Subsequent to the sale of the retail banking entities to BPCE, the goodwill associated with these entities and allocated to the former CGU “Specialized Financial Services” is no longer recorded on Natixis’ balance sheet. On December 31, 2019, the former CGU “Specialized Financial Services” was divided up into three CGUs: The “Payment” CGU, the “Asset & Wealth Management” CGU (for the Employee Savings Plans business line) and the “Corporate & Investment Banking” CGU (for the Film Industry Financing business line). Goodwill related to the entities not sold to BPCE was symmetrically reallocated to these three CGUs. Value in use is determined principally by discounting the expected future cash flows from the CGUs (Discounted Cash Flow (DCF) method) on the basis of the five-year medium-term business plans drawn up by Natixis.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019