NATIXIS_REGISTRATION_DOCUMENT_2017

5 FINANCIAL DATA

Consolidated financial statements and notes

CONSOLIDATION METHODS AND PRINCIPLES

NOTE 2

Consolidation scope 2.1 Natixis’ consolidated financial statements include the financial statementsof Natixisand its main subsidiaries. Only subsidiariesmaking a material contribution to the Group’s financialstatementsare consolidated.

Materialityis determinedbasedon specificthresholdsfor each of the Group’s business lines and on a qualitative assessment of the relevance of each entity’s contribution to the consolidated financial statements of Natixis. The main thresholds applicable are as follows:

Business line (in millions of euros)

Total balance sheet

Net revenues

Net income

Corporate & Investment Banking Asset & Wealth Management

250

15

+/-2 +/-2 +/-2 +/-2 +/-2

60 60 60 60

5 5

Insurance

Specialized Financial Services Coface and Corporate Center

12

5

The notion of control 2.2

By way of exception to the thresholds described above, and in order to comply with Article 19 of (EU) regulationNo. 575/2013, the consolidation threshold was reduced to €10 million (total balance sheet and off-balance sheet commitments excluding derivatives) for entities that meet the definition of financial institutionsor ancillaryservicesundertakings. In terms of mutual funds and real estate holdings within the scope of Natixis Assurances, the materiality threshold used for inclusionin the consolidationscope is as follows: total assets or book value of the mutual funds higher than a 0.5%of NatixisAssurances’investments; the total amount of entities excludedfrom the scope does not a representmore than 5%of total investments. The consolidationscope includes all material entities over which Natixis exercises exclusive control, joint control or significant influence. IFRS stipulates three types of control: exclusive control, joint control and significant influence. Determining the type of control that exists is not limited to identifyingthe voting rights held, but also involves an analysis of the economic and legal relationsbetweenthe variousentitiesbeing analyzed. In determining whether it exercises control or significant influence, Natixis considers all current voting rights and any potential voting rights to the extent that they are currently exercisable or convertible and to the extent that they have influence over relevant activities of the entity. Potential voting rights arise from stock options on ordinary shares or from the conversion of bonds into new ordinary shares. However, potential voting rights are not taken into account when determining the percentage of ownership except if it is concluded that these voting rights provide access to economic benefitsattachedto the underlyingshares. The scope of Natixis’ consolidatedentities is providedin Note 17 of the financialstatements. The percentageof ownershipand voting rights held is indicated for each entitywithin the consolidationscope. The percentageof ownership represents the equity share held by Natixis, directly and indirectly, in the entitieswithin the consolidationscope. The percentage of ownership is used to determine Natixis’ share in the net assetsof the ownedcompany.

and consolidation methods Control of an entity 2.2.1 The entities controlled by Natixis are consolidatedusing the full consolidationmethod, in accordancewith IFRS 10.This standard defines a single audit model applicable to all entities, whether they are traditionallygovernedentities or structuredentities (see Note 4). The control of an entity will be analyzed using three cumulativecriteria: influenceover relevantactivitiesof the entity; a exposure or entitlement to variable returns by virtue of its a relationswith the entity; the ability to exerciseits power over the entity to influencethe a variablereturnsobtained. When voting rights or similar rights are fundamental to an entity’s governance, control is generally understood to mean holdingover 50%of votingrights. If this is not the case, control is determinedthroughthe exercise of judgment and by taking into account all facts and circumstances,such as: the objectives, terms and circumstances surrounding the a creationof the entity; the nature of the entity’s relevant activities and the a decision-makingprocessesconcerningthese activities; the scope of Natixis’ decision-makingrights (from voting rights a or contractual agreements) over the management of the entity’s relevant activities (i.e. activities having a significant impacton the entity’sreturns); exposureto variabilityin the entity’sreturns (the significanceof a the returns received by Natixis compared to the returns receivedby the other investors, etc.) ; rights held by other parties (withdrawal rights, early a redemptionrights,rights on terminationof the entity, etc.).

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Natixis Registration Document 2017