NATIXIS - 2018 Registration document and annual financial report

5 FINANCIAL DATA

Consolidated financial statements and notes

VALUATION INPUTS USED TO CALCULATE THE EXPENSE OF THESE PLANS R

31/12/2018

31/12/2017

Share price

4.12

6.60

Risk-free interest rate Dividend payment rate

(0.64)% 11.35%

(0.67)%

6.57% 3.90%

Rights loss rate

4.61%

Retention and performance plans settled in cash

are recorded under “Other long-term employee benefits”. The estimated expense is based on an actuarial estimate of the

Deferred retention and performance bonuses paid in cash are probability of these conditions being met. The expense is awarded to some staff. These bonuses are subject to presence recognized over the vesting period. The amount recognized in and performance criteria. In terms of accounting treatment, they respect of fiscal year 2018 was:

Expense for 2018 (in millions of euros)

Expense for 2017 (in millions of euros)

Year of plan (in millions of euros)

Grant date Acquisition dates

March 2015 March 2016 March 2017 March 2016 March 2017 March 2018 March 2017 March 2018 March 2018 March 2019 March 2019 March 2020

2013 Plan

19/02/2014

(0.2)

2014 Plan

18/02/2015

0.0

(2.5)

2015 Plan

10/02/2016

(0.5)

(5.5)

2016 Plan

10/04/2017

(7.5)

(15.8)

2017 Plan 2018 Plan

23/02/2018

(19.4) (29.2)

(20.3)

TOTAL

(56.4)

(44.4)

Pensions and other long-term employee 12.2.3 benefits Post-employment defined-contribution plans Under defined-contribution plans, Natixis pays fixed contributions into a separate entity and has no obligation to pay further contributions.

The main defined-contribution plans available to Natixis employees are operated in France. They include the mandatory pension scheme and the national schemes AGIRC and ARRCO. Pension plans for which employees can voluntarily opt are operated by certain Natixis entities and are also classified as defined-contribution plans. These entities have a single contribution obligation (“PERCO” contribution). Contributions paid under defined-contribution plans are expensed for the period in which the services were provided.

31/12/2018

31/12/2017

(in millions of euros)

Contributions expensed under defined-contribution plans

137

210

In 2017, the amount consisted of the €83 million contribution made for outsourcing management of end-of-career awards.

Post-employment defined-benefit plans and other long-term employee benefits Post-employment defined-benefit plans include all post-employment benefits for which Natixis has committed to pay a specified level of benefits. Liabilities in respect of these awarded benefits are hedged, in full or in part, by assets composed mainly of outsourced insurance contracts managed by French insurers specializing in retirement. The insurers carry the longevity risk once the annuities are liquidated. Plan assets are invested in the insurers’ general funds, which, for the most part, generally consist of bonds. The insurers are subject to French prudential standards and regulations. The insurers also manage the asset/liability strategy for the portion of the benefit liabilities that they cover.

For the other portion, Natixis has set up interest rate and liquidity hedges backed by long-term cash flows. Insurance contracts taken up with a related party to Natixis and intended to finance all or part of Natixis’ defined-benefit plan commitments are recorded in the asset side of the balance sheet as “Accruals and other assets”. Other long-term employee benefits comprise benefits other than post-employment and termination benefits not wholly due within twelve months of the end of the period in which employees have provided the related services. These notably include long-service awards and deferred compensation payable in cash twelve months or more after the end of the period.

366

Natixis Registration Document 2018