NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Consolidated financial statements and notes

From the lessor’s perspective, the impact is expected to be limited, as the provisionswill not change substantiallyin relation to the currentIAS 17. For lessees, the standard requires that all lease contracts be recorded in the balance sheet such that they convey the right to use the leased asset which must be recognized under fixed assets with a corresponding financial liability entry under liabilities to reflect the leases and the remaining payments over the duration of the lease contract. Natixis has decided to opt for the exception included in the standard of not modifying the accountingmethod for short-term leases (less than 12 months) or leases related to low value underlying assets (unit replacementcost of €5,000at the most). The right to use the asset will be amortized on a straight-line basis and the financial liabilitywill be calculatedan actuarialbasis over the duration of the lease contract. The interest expense on the financial liability and amortizationexpenseon the right of use will be recognized separately in income. In contrast, under existing IAS 17, operating leases are not recorded in the balance sheet and only the related lease income is recognized in the incomestatement. Work on estimating the amount of the rights of use to be recorded in the balance sheet began in 2016 and continued in 2017. At this stage, the implementationof IFRS 16 will mainly affect real estate assets leased for operational purposes as offices. Natixis expects this to have a material impact on fixed assets (i.e., Property,plant and equipmentand Intangibleassets) and on Financialliabilitiesin the balancesheet. For the first-timeapplicationof this standard,Natixis has chosen the modified retrospective method, which recognizes the cumulative impact at January 1, 2019, with no comparisonwith 2018, and listing in the Notes to the financial statementsany of the standard’s impacts on the various items in said financial statements. In addition, when drawing up the consolidated financial statements at December 31, 2017, Natixis also took the followinginto account: for the valuationof financial instruments:the recommendation a published on October 15, 2008 by the AMF, the Conseil National de la Comptabilité(CNC – French National Accounting

Board), the Commission Bancaire (French Banking Commission)and the Autorité de Contrôle des Assuranceset des Mutuelles (ACAM – French insurance regulator), and the guide published by the IASB on October 31, 2008, entitled “Measuring and disclosing the fair value of financial instruments in markets that are no longer active”. These two texts underlinethe importanceof using judgmentto determine fair value in illiquid markets. As a result of this recommendation, at December 31, 2017, Natixis does not systematically apply models using observable data, as with previous reporting periods, in view of the lack of market liquidityaffectingsome asset classes; for financial reporting on risk exposure: the recommendations a issued by the Financial Stability Forum (FSF), as adapted for France. Details on risk exposure, presented in the format recommended by the Commission Bancaire in its May 29, 2008 statement “Presentation note regarding the French applicationof the FSF’s recommendationsfor financial transparency”,have been incorporatedinto Section 3.13of the chapter on “Risks and Capital Adequacy” of the registration document. Presentation of the consolidated 1.2 financial statements The consolidated financial statements have been prepared in accordancewith the assessmentand presentationprinciplesset out in Notes 2and 5 below. Year-end 1.3 The consolidatedfinancialstatementsare based on the individual financial statements at December 31, 2017, of the entities includedin Natixis’consolidationscope. Notes to the consolidated financial 1.4 statements Unless otherwise indicated, the figures given in the notes are expressedin millionsof euros.

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Natixis Registration Document 2017