NATIXIS - Universal registration document and financial report 2019

FINANCIAL DATA Consolidated financial statements and notes

Retention and performance plans settled in cash Deferred retention and performance bonuses paid in cash are awarded to some staff. These bonuses are subject to a continued service requirement and performance criteria. In terms of accounting treatment, they are recorded under “Other long-term employee benefits”. The estimated expense is based on an actuarial estimate of the probability of these conditions being met. The expense is recognized over the vesting period. The amount recognized in respect of fiscal year 2019 was:

Expense for 2018 (in millions of euros)

Expense for 2019 (in millions of euros)

Year of plan

Grant date Acquisition dates

March 2017 March 2018 March 2018 March 2019 March 2019 March 2020 March 2020 March 2021 March 2021 March 2022

2015 plan

10/02/2016

(0.5)

2016 plan

10/04/2017

(0.5)

(7.5)

2017 plan

23/02/2018

(9.4)

(19.4)

2018 plan

26/02/2019

1.1

(29.2)

2019 plan

22/01/2020

(12.1) (20.9)

TOTAL

(56.4)

Pension plans for which employees can voluntarily opt are operated by certain Natixis entities and are also classified as defined-contribution plans. These entities have a single contribution obligation (“PERCO” contribution). Contributions paid under defined-contribution plans are expensed for the period in which the services were provided.

12.2.3

Pensions and other long-term

employee benefits Post-employment defined-contribution plans Under defined-contribution plans, Natixis pays fixed contributions into a separate entity and has no obligation to pay further contributions. The main defined-contribution plans available to Natixis employees are operated in France. They include the mandatory pension scheme and the national schemes AGIRC and ARRCO.

5

(in millions of euros)

31/12/2018

31/12/2019

Contributions expensed under defined-contribution plans

124

137

For the other portion, Natixis has set up interest rate and liquidity hedges backed by long-term cash flows. Insurance contracts taken up with a related party to Natixis and intended to finance all or part of Natixis’ defined-benefit plan commitments are recorded in the asset side of the balance sheet as “Accruals and other assets”. Other long-term employee benefits comprise benefits other than post-employment and termination benefits not wholly due within twelve months of the end of the period in which employees have provided the related services. These notably include long-service awards and deferred compensation payable in cash twelve months or more after the end of the period.

Post-employment defined-benefit plans and other long-term employee benefits

Post-employment defined-benefit plans include all post-employment benefits for which Natixis has committed to pay a specified level of benefits. Liabilities in respect of these awarded benefits are hedged, in full or in part, by assets comprised mainly of outsourced insurance contracts managed by French insurers specializing in retirement. The insurers carry the longevity risk once the annuities are liquidated. Plan assets are invested in the insurers’ general funds, which, for the most part, generally consist of bonds. The insurers are subject to French prudential standards and regulations. The insurers also manage the asset/liability strategy for the portion of the benefit liabilities that they cover.

353

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019