NATIXIS - Universal registration document and financial report 2019

5 FINANCIAL DATA

Consolidated financial statements and notes

Note 4

Consolidation scope

Key events 4.1 Transfer to BPCE S.A. of the entities of the Specialised Financial Services business lines (SFS) On September 12, 2018, Natixis and BPCE announced that Natixis planned to sell its Factoring, Sureties & Financial Guarantees, Leasing, Consumer Finance and Securities Services business lines to BPCE S.A. for €2.7 billion. Since the deal was considered highly probable, the activities in question were recognized in accordance with IFRS 5 in Natixis’ consolidated financial statements at December 31, 2018. As a result, the net non-intra-group assets and liabilities of the transferred entities, as well as the assets and liabilities related to the transferred Natixis activities (predominantly associated with EuroTitres), were reclassified within a single balance sheet line (assets and liabilities held for sale). Together, these assets totaled €25,646 million at December 31, 2018 (of which €150 million in intangible assets and €28 million in goodwill). The related liabilities amounted to €9,737 million at December 31, 2018. In accordance with the established timetable, the subsidiary shares and EuroTitres assets and liabilities were transferred on March 31, 2019 once the conditions precedent had been lifted. Control of the subsidiaries was gradually transferred to BPCE over the period which, combined with the other characteristics specific to the deal, resulted in loss of control being recognized retroactively at January 1, 2019. Consequently, Natixis did not incorporate income from the subsidiaries sold to BPCE generated in the first quarter prior to the disposal in its consolidated financial statements for the first half of 2019. Total income from the transaction, after tax and minority interests, was €586 million, including a gross capital gain of €697 million, a tax impact of -€78 million and -€33 million transferred to minority shareholders. The transaction also resulted in the recycling through profit or loss of unrealized reserves on available-for-sale assets from the CEGC portfolio, in the amount of -€70 million, unrealized hedging derivatives reserves for +€106 million, and revaluation adjustments for defined benefit plans for +€2 million, giving an overall impact of +€38 million under "Gains and losses recorded directly in equity". NIT dispute On December 18, 2019, the French antitrust body, the Autorité de la Concurrence, published a press release on its website announcing that France's four historical meal voucher companies were to be fined a total of nearly €415 million for price fixing. On a financial level, the fine incurred by Natixis came to €83.3 million (of which €4.4 million for Natixis Intertitres alone, with Natixis being severally liable for the balance). As soon as the fine was announced, Natixis acknowledged the competition authorities’ ruling but denied all accusations of coordinating its business with its competitors, adding that it was extremely surprised at the decision, which it deemed unfounded and wholly disproportionate. Natixis will appeal this decision and believes it has numerous arguments in its defense with which to challenge it. In view of the situation, no related provisions were recorded in the accounts at December 31, 2019, since Natixis believes that it has not caused any damage whatsoever or acted in breach of regulations, and that it has solid arguments in this regard.

Partnership between Groupe BPCE, Natixis and La Banque Postale

On December 19, 2019, Groupe BPCE, Natixis and La Banque Postale announced plans to merge some of their Asset Management activities in France, as part of their business partnership. The plan is to combine Ostrum Asset Management and LBP Asset Management's euro fixed-income and credit management activities as well as their Insurance management activities at Ostrum Asset Management, with a view to creating a player that fully complies with the principles of socially responsible investment (SRI). Natixis will own 55% of the future joint entity (via its subsidiary Natixis Investment Managers), with LBP owning 45% (via its subsidiary LBP Asset Management), to ensure a balanced governance approach. since January 1, 2019 The main change in the consolidation scope recorded since January 1, 2019 involved the sale of the entities belonging to the former Specialized Financial Services division to BPCE S.A. in the first quarter of 2019 (see above): Natixis Financement, FCT Pumacc, Natixis Factor, Midt Factoring, Compagnie Européenne de Garanties et Cautions (CEGC), Natixis Lease, Co-Assur, Cicobail, Natixis Lease Immo, Lease Expansion, Natixis Bail, Natixis Energeco, Natixis Lease Madrid, Natixis Lease Milan, Natixis LLD, Oceor Lease Tahiti, Oceor Lease Nouméa, Oceor Lease Réunion, Natixis Car Lease, Sud-Ouest Bail, SAS Immobilière Natixis Bail, Batilease and Inter-Coop. Other changes in scope are presented below. Acquisition by Natixis Holdings (Hong Kong) Limited of M&A V Advisory firm Azure Capital in the second quarter of 2019. The following entities were added to the scope of consolidation: Azure Capital Holdings Pty Ltd, Azure Capital Securities Pty Ltd, The Azure Capital Trust and Azure Capital Limited. Natixis exercises control over these entities in accordance with IFRS 10, and fully consolidates them. This transaction generated goodwill of €11.6 million as at December 31, 2019, as determined using the partial goodwill method. Natixis also holds put options on minority interests in the amount of €9.1 million. Consolidation of Natixis Holdings (Hong Kong) Limited (the holding V company that owns the stake in Azure Capital) in the second quarter of 2019. Creation and consolidation of Saudi Arabia Investment Company in V the fourth quarter of 2019. Deconsolidated entities Disposal of Natixis Brasil on February 6, 2019. V Deconsolidation of securitization vehicle FCT Natixis Export Credit V Agency in the first quarter of 2019. Deconsolidation of Nexgen Reinsurance Designated Activity V Company in the third quarter of 2019 following its liquidation. Changes in consolidation scope 4.2 Corporate & Investment Banking 4.2.1 Newly consolidated entities

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019