NATIXIS - Universal registration document and financial report 2019

FINANCIAL DATA Consolidated financial statements and notes

for non-life insurance, the main vector of sensitivity is the loss ratio, which is notably measured via the combined ratio. Natixis’ New Dimension strategic plan sets the combined ratio at below 94%. A one-point deterioration in this ratio each year would lead to a limited fall of 3% in the CGU's value, with no impact on impairment; for Payment, with regard to business activity, the CGU has a V diversified business model with, on the one hand, a long-standing payments business serving the Groupe BPCE networks, which has generated high volumes of activity over the years (and strong momentum in electronic payments) and, on the other, a portfolio of Fintech companies offering a wide range of products, both to Group clients and externally (digitized securities, merchant solutions, e-commerce, solutions for company works councils, etc.). This business model implies a low level of earnings volatility; for Coface, the primary sensitivity vector is the loss ratio. V The projected level of this ratio is around 45.6% (net of reinsurance) for 2019. A one-point increase in the loss ratio, relative to the assumptions used for the DCF calculation over all years from 2020, would impact the average multi-criteria value by around 3% and would not lead to the recognition of impairment for the CGU. Furthermore, a valuation at the lowest price in 2019 would lead to a very limited impact on the weighted average valuation for the various methods (less than -1%). 3.6 The assets and liabilities of controlled entities which Natixis intends to sell within a maximum period of 12 months, and for which it is actively seeking a buyer, are identified separately on two specific lines of the consolidated balance sheet as non-current assets and liabilities. Subsequent to the September 2018 announcement that Natixis planned to sell its Specialized Financial Services division's Factoring, Sureties & Financial Guarantees, Leasing, Consumer Finance and Securities Services business lines to BPCE at December 31, 2018 Natixis continued to fully consolidate the subsidiaries in question and, in accordance with the provisions of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, combined the assets and liabilities of these entities in two separate balance sheet line items: “Non-current assets held for sale” and “Liabilities associated with non-current assets held for sale”. Since the deal was finalized in the first quarter of 2019 (see Notes 3.6 and 4.1) , the subsidiaries were no longer included in Natixis’ scope of consolidation at December 31, 2019. Natixis had also begun negotiations for the sale of its subsidiary Natixis Brasil. At December 31, 2018, this fully consolidated entity’s assets and liabilities were not recognized, in line with IFRS 5, in non-current assets held for sale and liabilities associated with non-current assets held for sale, given that the amounts in question were not material. Since the deal was finalized (see Note 4.2) , the subsidiary was no longer included in Natixis’ scope of consolidation at December 31, 2019. Subsidiaries held for sale

3.7

Standardization of individual data and treatment of intra-group transactions

Prior to consolidation, the individual financial statements of companies included in the scope of consolidation are restated if necessary to bring them into line with Natixis’ accounting policies described below. The impact on the balance sheet and income statement of internal transactions carried out between fully-consolidated entities is eliminated. The internal profits or losses of entities consolidated using the equity method are eliminated to the extent of Natixis’ percentage interest in the joint venture or associate. 3.8 In accordance with Article 41 of the Amended Finance Act for 1997 (No. 97-1239 of December 29, 2007), amended by Article 121 of the Amended Finance Act for 2008 (No. 2008-1443 of December 30, 2008), Article 5 of the Amended Finance Act for 2014 (No. 2014-1655 of December 29, 2014) and the agreement signed with the French State on May 10, 2017, Natixis manages certain public procedures on behalf of the French State, mainly consisting of loans and gifts to foreign States conferred within the framework of Public Development Aid, non-concessional loans to foreign States, gifts to the “Fund for Private Sector Aid and Studies” and the stabilization of interest rates for export credit guaranteed by the State. The related transactions, some of which may be guaranteed by the State, are recognized separately in the financial statements. The State and other related creditors have a specific right over the assets and liabilities allocated to these institutional operations. The bank’s assets and liabilities relative to these operations are identified on the balance sheet under each of the headings concerned with these operations. Natixis’ consolidated financial statements are prepared in euros. The balance sheets of foreign subsidiaries and branches whose functional currency is not the euro are translated into euros at the closing exchange rate, except for share capital, reserves and capital allocations, which are translated at the historical exchange rate. The income statements of foreign subsidiaries and branches whose functional currency is not the euro are translated at the average exchange rate for the year. Any resulting translation gains or losses arising regarding both balance sheet and income statement items are recognized in equity under “Translation adjustments” for the portion attributable to the Group and “Minority interests” for the portion attributable to third parties. In the event of the total or partial disposal of an entity or the capital repayment of an entity, translation gains or losses are reclassified as income in proportion to the cumulative amount of the exchange differences recognized in recyclable other comprehensive income under “Translation adjustments”. Natixis elected to use the option available under IFRS 1 on first-time adoption, namely to transfer the cumulative balance of the translation adjustments existing at January 1, 2004 to consolidated reserves. If a foreign entity is subsequently sold, the gain or loss on the disposal will include only those translation gains or losses arising after January 1, 2004. Natixis’ institutional operations Currency conversion 3.9 of the statements of foreign subsidiaries and branches

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019