NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Consolidated financial statements and notes

and the closing of NGAM Asia amounted to €0.6 million at December 31, 2017 (see Note 3.2) . Joint operationsare partnershipsin whichthe partiesexercising a joint control of the arrangementhave rights to the assets, and obligations for the liabilities, related to the arrangement. An investmentin a joint operation is recorded by incorporatingall the interestsheld in the joint operation,i.e. its share in each of the assets,liabilitiesand other comprehensive incometo which it is entitled. These interests are broken down by type across the various items on the consolidated balance sheet, consolidated income statement and statement of net income/(loss)and other comprehensive income. 2.2.3 Significant influence is the power to participate in the financial and operating policy decisions of the corporate entity owned without having control over such policies. Significantinfluence is presumed to exist when Natixis directly or indirectly owns at least 20% of the voting rights of the company in question. IAS 28 defines companies over which significant influence is exercisedas associates.These are consolidatedusing the equity method in accordancewith the same terms as those applicable to joint-ventures(see above),with the exceptionof PrivateEquity investmentswhich Natixis classifies under assets designatedat fair value throughprofit and loss, pursuantto the option available under IAS 28. Furthermore, in terms of Natixis’ stake in EFG Hermès, held through DF EFG 3 Limited, although the share of voting rights held represents 12.9%, it was analyzed as subject to consolidationaccordingto the equity method due in particularto the number of seats held by Natixis on the company’sBoard of Directors. Nevertheless, it is not consolidated in the December 31,2016 or December 31,2017 financial statements as the company’s financial statements are not consolidated in IFRS format. The stake was acquired for $85 million. It is recognized in “Available-for-salefinancial assets” at a value of €87.5 million at December 31,2017, compared to €96.4 million at December 31,2016. Change in consolidation scope 2.3 In the event of an increasein Natixis’percentageof ownershipin an already-controlled entity, the difference between the acquisition cost of the additional interest share and the share acquired in the entity’s net assets at this date is recorded in “Consolidatedreserves”. In the event of a decrease in Natixis’ percentageof ownershipin an entity without loss of control, the difference between the selling price and the book value of the share of interests sold is also recorded in “Consolidated reserves”. The assumption of control through successive purchases of securities from an entity previously recognized in available-for-sale (AFS) financial assets is shown as two transactionstakingplace upon the assumptionof control: the disposal of securities previously classified as a available-for-salefinancialassets;and the acquisitionof all the securitiesheld after the assumptionof a control. In such cases,goodwillis determinedonly once basedon the fair value of the assets acquired and liabilities assumed on the date that controlover the entity is assumed. Significant influence over associates

If, after reviewing these criteria, Natixis concludes that its decision-making rights over the management of the entity’s relevant activities enable it to influence the variable returns obtained, therefore Natixis does have control pursuant to IFRS 10 and the entity in question will be subject to full consolidation. Full consolidation involves replacing the book value of the investments by the full value of all the subsidiary’s assets and liabilities. The share of non-controllinginterestsin shareholders’equity and in income appear separately on the balance sheet, income statement and the statement of net income/(loss) and other comprehensiveincome. operations Natixis exercises joint control when, by virtue of a contractual arrangement, decisions pertaining to the entity’s relevant activities require the unanimous consent of the parties sharing control over the partnership and when each partner has the ability to prevent the other partners from controlling the arrangement. IFRS 11 distinguishes between two types of partnerships: joint-venturesand joint operations. Joint-venturesare partnershipsin which the parties exercising a joint control over the company have rights to that company’s net assets. They are consolidated using the equity method. Consolidationby the equitymethodinvolvesreplacingthe book value of the investments in the owner’s account by Natixis’ interest in the shareholders’equity and income of the owned entity. Investmentsare recognizedat this reassessedvalue on the asset side of the consolidated balance sheet in “Investments in associates”. The difference between the investments’ historical value and their reassessed value is recognized on the liabilities side of the balance sheet under “Shareholders’ equity (Group share” and in income under “Share in income of associates” in the consolidated income statement and under “Share in gains/(losses) of associates recorded directly in equity” in the statement of net income/(loss) and other comprehensive income. Goodwill relatedto joint-venturesis includedin the book value. These investments are subject to an impairment test a whenever there is objective evidence of impairment. If the recoverable value of the investment is lower than its book value, an impairment is recorded under “Share in income of associates”in the consolidatedincomestatement. When Natixis’ share in the losses of a company consolidated usingthe equitymethodis greaterthanor equalto its interestin the company, Natixis ceases to take its share into account in future losses. In such cases, the investment is presented as zero. The associates’ additional losses are only provisioned whenNatixishas a legal or impliedobligationto hedge themor when ithasmade payments on behalf of the company. At December 31, 2016, the impairment tests conducted resultedin a write-downof €12.6 million in the equity-accounted investment in the IDFC entities belonging to the Investment Solutionsdivision. This impairmentwas included in the “Share in income of associates” in the income statement. Goodwill after impairment included in the book value of the equity investmenttotaled €4.3 million.IDFC entitieswere disposedof in 2017 and the gain on disposalarisingfromthe sale of entities Joint control: joint-ventures and joint 2.2.2

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Natixis Registration Document 2017