NATIXIS - Universal registration document and financial report 2019

5 FINANCIAL DATA

Parent company financial statements and notes

losses on the portfolio of instruments at fair value through profit or loss (cash and derivatives) since July 1, 2009. TRS are derivatives and are therefore carried at fair value on the balance sheet, with a matching entry to income. At the same time, Natixis purchases an option from BPCE which, if exercised, allows it to recover the net gains on this portfolio after a ten-year period in return for the payment of a premium estimated at €367 million. The premium is also recognized at fair value. Natixis exercised the option at maturity (i.e. July 1, 2019). Exercising this option had no impact on Natixis’ income statement as the changes in the option’s fair value were recognized in income at inception. In addition, a reverse TRS was implemented on July 1, the characteristics of which are symmetrical to those of the TRS in euros and in dollars implemented when the guarantee was first arranged. Note that the TRS and the option had virtually no impact on Natixis’ income statement at December 31, 2018 and that these have been terminated as of December 31, 2019. 15. Non-recurring income and expense items are determined based on their amount, their unusual nature with respect to current operations, and the likelihood of the events in question repeating. 16. Due to additional contributions, the corporate tax rate used to calculate the expense payable for the year was 34.43% for France. Applicable local corporate tax rates were used for foreign subsidiaries. Non-recurring income Corporate income tax

14.

Guarantee mechanism for the assets of the former GAPC hive-off vehicle

On November 12, 2009, an arrangement was made by BPCE to protect a portion of the portfolios of the former GAPC hive-off vehicle with retroactive effect at July 1, 2009. With this guarantee mechanism, Natixis was able to free up a significant portion of its equity allocated to segregated assets and to protect itself against the risk of loss from these portfolios subsequent to June 30, 2009. This protective arrangement is based on two mechanisms: a sub-participation with the characteristics of a financial V guarantee, covering 85% of the face value of assets recognized in “loans and receivables” and “available-for-sale financial assets”. Under this guarantee, Natixis is protected from the very first euro in default up to 85% of the default amount; The amount of the premium paid in 2009 by Natixis in return for the financial guarantee amounted to €1,183 million. Since the unrealized capital losses or write-downs on the assets covered by the guarantee have already been recorded in income, the premium was not immediately taken to income or recognized on a straight-line basis. Instead, the premium is initially recognized on the accruals line and taken to income over the same period, in the same amount and on the same line as: reversals of provisions for impairment (under “Provision for V credit losses”), the deferred recognition of the discount (under net revenues) V arising on October 1, 2008 on assets reclassified within “Loans and receivables” at that date pursuant to the amendment to IAS 39 and IFRS 7 published on October 13, 2008. At December 31, 2019, this financial guarantee, which had virtually no impact at December 31, 2018, was terminated. The termination of the financial guarantee had an impact of +€9.7 million on the income statement at December 31, 2019. two Total Return Swaps (TRS), one in euros and one in US dollars, V transferring to BPCE 85% of unrealized and realized gains and

17.

Changes in accounting

methods and comparability of financial statements There were no changes to accounting methods in respect of the 2019 fiscal year.

Note 2

Highlights of the period

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. The gain on the disposal amounted to €1.100 million.

Transfer of certain Specialized Financial Services (SFS) business lines to BPCE 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 SA for €2.7 billion.

Note 3

Events subsequent to closure

On February 6, 2020, the Board of Directors approved the 2019 financial statements. On February 25, 2020, Natixis announced the signing of a preliminary agreement for the sale of 29.5% of its stake in Coface for a unit price of €10.70 per share.

This announcement has no impact on Natixis' separate financial statements. After the sale which, given the regulatory authorizations required, may not be completed until several months after the announcement, Natixis will no longer sit on the Board of Directors of Coface.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019