NATIXIS_REGISTRATION_DOCUMENT_2017
5 FINANCIAL DATA
Consolidated financial statements and notes
for the Coface CGU, the interest-rate references used were a determined according to a similar method as applied to the other CGUs, using samples of equivalent companies for insuranceand factoringactivities. These tests did not result in the recognitionof impairmentlosses at December 31,2017. At December 31, 2016, tests carried out on the Coface CGU following an increase in the loss ratio level, as mentionedin the press release dated July 4, 2016 (an indicationof a deterioration in the recoverable value), led to the impairment of goodwill on Coface in the amount of €75 million (€31 million group share). The net amount of goodwill after impairmentwas €281.9 million at December 31,2016; A 20 bp increase in discount rates (assumption based on the historical annual variability observed over one year using 2012-2017 historical data) combined with a 50 bp reduction in perpetual growth rates would help to reduce the value in use of CGUs by: -7.1%for the Asset & WealthManagementCGU; a -3.3%for the Corporate& InvestmentBankingCGU; a -5.3%for the InsuranceCGU; a -3.6%for the SpecializedFinancialServicesCGU; a -2.6%for the CofaceCGU; a and would not lead to the recognitionof any impairment losses for theseCGUs. Similarly, the sensitivity of future business-plan cash flows to variations in key assumptions does not significantly affect the recoverableamountof CGUs: for Asset & WealthManagement,a 10% decline in the equity a markets (uniform decline across all years) would have a -8% negativeimpact on the CGU’s recoverablevalue and would not lead to the recognitionof an impairmentloss; for Insurance, the main vector of sensitivity for Life Insurance a is interest rates but various steps are being taken to reduce their impact (diversification of investments, reserves, etc.). Accordingly, the impacton the incomestatementis limitedand would not significantlyimpactthe CGU’svalue. For non-life insurance,the main vector of sensitivityis the loss ratio, which is notably measured via the combined ratio. Natixis’ new strategic plan, New Dimension,sets this ratio at below 94%. A one-point deterioration in this ratio each year from 2018 in relation to the assumptionsused for to value the CGU would lead to a limited fall of 3% in this value, with no impacton impairment; for Specialized Financial Services, a one-point rise in the a three-month EURIBOR applied to Factoring and recreating a “2008-2009” (drop in production and increased cost of risk) type crisis on Leasing would have an -6% negative impact on the recoverableamount of the CGU and would have no impact in terms of impairment; for Corporate &InvestmentBanking,sensitivityto the dollar or a to the performanceof the CAC would have a limited impact on net revenues and would not lead to any impairment being recorded;
for Coface, the primary sensitivity vector is the loss ratio. The a projected level of this ratio is below 54% (net of reinsurance) for 2017. A one-point increase in the loss ratio, relative to the assumptionsused for the DCF calculation over all years from 2018, would impact the average multi-criteria value by less than 5% and would not lead to the recognitionof impairment on the CGU. Furthermore, a valuation at the lowest price in 2017 would lead to a limited impact on the weighted average valuationof the variousmethods(-2%). Subsidiaries held for sale 2.6 The assets and liabilities of subsidiarieswhich Natixis intends to sell within a maximumperiod of 12 months, and for which it is activelyseekinga buyer, are identifiedseparatelyon two specific lines of the consolidatedbalancesheet as non-currentassetsand liabilities (see Note 5.9) . Natixis had started discussionsregarding the disposal of part of its stake in Caspian, entities belonging to the Investment Solutionsdivision.At December 31,2016, Natixismaintainedthe full consolidationof its subsidiariesand, in accordancewith the provisions of IFRS 5 “Non-current Assets Held for Sale and DiscontinuedOperations”,combinedthe assets and liabilities of those entities under two separate balance sheet line items: “Non-current assets held for sale” and “Liabilities associated with non-current assets held for sale”. As the disposal was completed in fiscal year 2017, these entities are no longer included in Natixis’ consolidation scope as at December 31, 2017. Natixis had also started discussionsregarding the disposal of its subsidiaries Ellisphere and IJCOF, entities belonging to the CorporateData Solutionsdivision.At December 31,2016, Natixis had maintained the full consolidation of Ellisphere and, in accordance with the provisions of IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, combined the assets and liabilities of that entity under two separate balance sheet line items: “Non-current assets held for sale” and “Liabilities associated with non-current assets held for sale”. IJCOF,consolidatedusing the equitymethod,was also treated in accordance with IFRS 5, and the stake was recorded under “Non-current assets held for sale”. As the disposal was completed in fiscal year 2017, these entities are no longer includedin Natixis’balancesheet as at December 31,2017. Standardization of individual data and 2.7 treatment of intra-group transactions Prior to consolidation, the individual financial statements of companiesincluded in the scope of consolidationare restated if necessaryto bring them into line with Natixis’accountingpolicies describedbelow. The impact on the balance sheet and income statement from internal transactions carried out between fully-consolidated entities is eliminated. The internal results of the entities consolidated using the equity method are eliminated to the extent of Natixis’ share of interest in the joint-venture or associate.
214
Natixis Registration Document 2017
Made with FlippingBook - Online catalogs