NATIXIS_REGISTRATION_DOCUMENT_2017

5 FINANCIAL DATA

Consolidated financial statements and notes

In the case of deferredprofit-sharingassets, a recoverabilitytest is carried out. Deferred profit-sharing may be recovered depending on the intention and ability of companies to steer future compensationof contracts according to resources.These are sensitiveto: changesin the equityand bondmarkets; a changes in net inflows, which result from the commercial a appeal of policiesand the propensityof policy holdersto renew their contracts; availablereservesand own resourceswithin companiesto hold a assets for a period compatible with changes in liabilities and consistentwithmarketcycles. Prospective analysis of the deferred profit-sharing asset’s recoverabilityis therefore carried out to demonstratethe ability and intention of companies to meet liquidity requirementsover the remainingrecoverabilityperiodwithoutselling investmentsin unrealizedlosses. This process correspondsto a forward-looking view of future cash flows, built following regulatory and contractual conditions applied to contracts and with the help of economicscenariosbasedon historicprobability. In accordance with Article 41 of the Amended Finance Act for 1997 (No. 97-1239 of December 29, 2007), amended by Article 121of the AmendedFinanceAct for 2008 (No. 2008-1443 of December 30,2008), of Article 5of the AmendedFinanceAct for 2014 (No. 2014-1655 of December 29, 2014) and the agreement signed with the French State on May 10, 2017, Natixis manages certain public procedures on behalf of the French State, mainly consisting of loans and gifts to foreign States conferred in the framework of Public Development Aid, non-concessionalloans to foreign States, gifts to the “Fund for Private-SectorAid and Studies” and the stabilization of interest rates for export credit guaranteed by the State. The related transactions,some of whichmay be guaranteedby the State, are recognizedseparately in the financial statements.The State and other related creditors have a specific right over the assets and liabilities allocated to these institutional operations. The bank’s assets and liabilitiesrelative to these operationsare identifiedon the balance sheet under each of the headings concerned with these operations. Institutional operations 2.9 Natixis

Coface At December 31,2016, Coface ceded its activitymanagingstate export guarantees on behalf of the French government to BpiFrance.The teams and informationsystemsdedicatedto this activitywere transferredfromJanuary 2,2017. The management of state export guarantees represented approximately4%of Coface’sconsolidatedrevenuesin 2016. As a reminder, for this activity, premiums paid by customers, claims covered and amounts recovered as a result of these guaranteeswere paid over to the State. Accordingly,they were not included in the Group’s consolidated financial statements. Expenses relating to public procedures management were mainly incurred in deliveringState guarantees,managingclaims, and recoveringdebts coveredby the guarantees. On December 31, 2016, Coface received, in return for this transfer, an indemnity which corresponded to a non-recurring gain of €77 million(gross amount) and which was recognized in the financial statements.The net gain, after taking into account direct and indirectcosts, totaled€75 million(gross amount). Natixis’consolidatedfinancialstatementsare preparedin euros. The balance sheets of foreign subsidiariesand branches whose functional currency is not the euro are translated into euros at the closing exchangerate, except for share capital, reservesand capital allocations,which are translated at the historic exchange rate. The income statements of foreign subsidiaries and branches whose functional currency is not the euro are translated at the average exchange rate for the year. Any resulting translation gains or losses arising regarding both balance sheet and income statement items are recognized in equity under “Translation adjustments” for the portion attributableto the Group and “Minorityinterests”for the portion attributableto third parties. In the event of the total or partial disposal of an entity or the capital repayment of an entity, translation gains or losses are reclassifiedas income in proportionto the cumulativeamount of exchange differences recognized in transferable equity under “Translationadjustments”. Natixis elected to use the option available under IFRS 1 on first-time adoption, namely to transfer the cumulativebalance of translation adjustments existing at January 1, 2004, to consolidated reserves. If a foreign entity is subsequently sold, the gain or loss on the disposalwill includeonly those translation gains or lossesarisingafter January 1, 2004. Currency conversion of the statements 2.10 of foreign subsidiaries and branches

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Natixis Registration Document 2017