NATIXIS - Universal registration document and financial report 2019

FINANCIAL DATA Internal control procedures relating to accounting and financial information

Internal control procedures relating 5.5 to accounting and financial information

Preparation and processing of accounting 5.5.1 and financial information

use of an automated control process for individual information V provided by the consolidated entities through the use of consolidation packages that incorporate accuracy and consistency checks, which must be complied with before the data can be transmitted; individual analysis of all entries impacting consolidated V shareholders’ equity and the preparation of supporting documents for taxes, including proof of deferred taxes, for each consolidated entity, thus contributing to the substantiation of consolidated shareholders’ equity. For the preparation of the consolidated financial statements and part of its regulatory reporting, Natixis has software that enables it to: produce a local IFRS-compliant reporting package, including, V for foreign entities, a reporting period foreign currency conversion feature; extend its data collection and consolidation processes to V regulatory reporting; guarantee the consistency of data relating to the banking and V insurance consolidation scopes; offer retrieval features that can be used to input data into V the various reports; offer BPCE access to Natixis’ data through dedicated interfaces, V in keeping with confidentiality rules given that Natixis is listed; secure the integration process for consolidation packages received V from international entities through the implementation of local first-level controls followed by centralized second-level controls. To perfect its overall data collection system, Natixis is continuing to develop its consolidation tool by adding new modules or adapting existing modules to new standards (including the update of IFRS 9 as of January 1, 2018 and IFRS 16 as of January 1, 2019 and changes to FINREP reporting as of June 2020), thus facilitating the compilation and preparation of certain regulatory reports (COREP capital reporting and FINREP), in addition to financial statements for publication. Natixis is also pursuing its project to streamline and pool data input by phasing in shared data warehouses for all overview functions (Accounting and Ratios, Financial Oversight, Financial and Risk Management), enabling the production of the new regulatory reports (MREL, Anatitres, and AnaCredit). Lastly, Natixis and Groupe BPCE as a whole ensure the publication of their financial information within a schedule in line with industry-wide practices.

The Finance Department prepares Natixis’ consolidated financial statements and all consolidated regulatory reports (including solvency, liquidity and Resolution-related ratios) using the tools and databases developed and administered by Natixis S.A. As a listed company, Natixis prepares separate consolidated financial and regulatory statements, although the sub-group it leads has been included in Groupe BPCE’s consolidated financial statements since July 1, 2009. In this regard, the processes for preparing the consolidated financial statements and regulatory reporting are operationally autonomous, but linked to BPCE’s processes. The reliability of these processes is based on the following core principles: the definition, in coordination with BPCE, and dissemination of the V accounting and regulatory principles applicable to Natixis subsidiaries and branches, including the analysis and interpretation of new standards published during the period; the documentation and oversight of the different stages in the V preparation of these reports; audit trails justifying all published accounting and management V data, based on the individual contributions made by each entity and restatements made centrally; formal, documented first- and second-level controls contributing to V the management of risks relating to accounting and financial information (balance sheet, income statement, regulatory and financial information); data archiving and security procedures; V support and appropriate training for the accounting and regulatory V reporting teams of those consolidated entities that use the consolidation and data collection tools so that best practices are shared across the Company. The preparation of the consolidated financial statements also relies on: the use of a direct consolidation method, rolled out throughout the V Group, allowing for the analysis and control of the consolidation packages of each consolidated company via a formal review process; preparation of consolidated financial statements on a quarterly V basis. This allows for greater control over financial reporting within tight time frames; reporting and reconciliation of intra-group transactions at M-1 V and then at M, where M is the reporting month, thus increasing the number of reconciliations and contributing to the preparation of quarterly statements;

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019