NATIXIS - Universal registration document and financial report 2019

FINANCIAL DATA Internal control procedures relating to accounting and financial information

independent second-level controls under the hierarchical authority V of the Accounting and Ratios Department and the functional authority of the Compliance Department. The Regulatory and Accounting Review team, aside from managing the system, also performs its own controls, including the review of first-level controls; dedicated tools that allow for the automated reconciliation of V account entries and centralization of control results using an internal application. In addition to the operational control tasks delegated to it, the Regulatory and Accounting Review team also fulfills the following duties as part of overseeing and monitoring the control function within the Group: definition of the control policy applicable to Natixis and its V subsidiaries: organizational and operational principles of permanent internal control for accounting, fiscal and regulatory matters, in accordance with the policy established by Groupe BPCE; management of the control system within the subsidiaries, V working with the Review officers appointed by each of the local financial, compliance or risk departments. This takes place through quarterly Review committee meetings, themed workshops, and bilateral cooperation with international entities and platforms; monitoring and implementing an accounting and regulatory control V environment within each entity by collecting and operating a set of periodic reporting dashboards. The results of these dashboards are then sent to each entity, including a process for alerting the finance, compliance or risk officers and, if necessary, the central or local Control Functions Coordination Committees. In 2019, the highlights of the accounting and financial control environment included: preserving a strict schedule for preparing the various financial V reports; the sale, to BPCE SA, of the factoring, sureties & financial V guarantees, leasing, consumer finance and securities services business lines previously operated by Natixis or its specialized subsidiaries, and the associated implementation of service agreements binding BPCE and Natixis, which continue to carry out certain work on BPCE’s behalf; the continuation of large-scale projects to streamline the V information systems used for market and financing transactions (front- and back-office systems), and the migration of the associated software, which continued in 2019; the continuation of a project to streamline and pool data input by V setting up shared data warehouses for all overview functions (Risk, Accounting and Ratios, Financial Oversight and Financial Management). Using a data lake, the project allows the direct External controls 5.5.3 In addition to the control procedures followed by the Finance Departments responsible for preparing individual or consolidated accounts, the quality of accounting controls is verified by: ad hoc audit assignments conducted by BPCE’s General Inspection V and Natixis’ General Inspection Department; inspections carried out by the banking supervisory authorities; V

generation of certain reports, integrates processes such as intra-group management, and develops new controls by cross-referencing data; the continued roll-out of the Group’s management tools: on the V Asia Pacific platform in financing, and on the US platform in market transactions; implementing the production process and the associated control V environment relative to IFRS 16, particularly through the introduction, as of January 1, 2019, of a shared tool for calculating the impact of the standards on IFRS accounts, and for preparing associated accounting records; the strengthening of accounting and financial information controls, V particularly regarding manual inputs, new accounting standards (IFRS 9 and IFRS 16), anti-corruption and tax avoidance regulations; the reinforcement of local control system monitoring processes V and support for the Review officers, particularly internationally, for all the European, US and Asian platforms, Work in 2020 will be focused on the following actions: the continuation of projects arising from new regulations and V standards, such as SURFI 2020 (RUBA — “unified reporting for banks and similar credit institutions”), Basel 3 revised, IFRS 17 (for insurance entities), COREP, the new definition of “default”, as well as plans for a daily LCR; the ongoing progress of the project to streamline the information V systems used for market and financing transactions in France and abroad; continuing the implementation of the project to streamline and V pool data used by the various overview systems. New functions are anticipated for the Accounting & Ratios division and in the Risk division in 2020; a large-scale inventory project to streamline our architecture by V integrating one central process for accounting and management data, as well as a single adjustment process at the service of all downstream consumers; strengthening finance/risk governance and controls for valuation, V observability and fair value hierarchy for financial products; the roll-out of the digitalization initiatives launched in 2019: a new V expense management tool; a centralized system for overseeing and monitoring closing periods, and for monitoring and reporting on first- and second-level controls in all areas within management’s purview. This tool will gradually be rolled out to the subsidiaries and branches; continuing with initiatives aimed at strengthening second-level V controls in accounting and regulatory matters.

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audits conducted by Statutory Auditors. This work is carried out by V a group of firms working in a uniform manner each quarter on most of the entities falling within Natixis’ scope of consolidation and whose opinions rely on, in particular, compliance with policies determined and validated beforehand by Natixis and the effectiveness of local internal control procedures.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019