NATIXIS - 2018 Registration document and annual financial report

5 FINANCIAL DATA

Parent company financial statements and notes

NET GAINS/(LOSSES) ON FIXED ASSETS

NOTE 31

2018

2017

(in millions of euros)

Long-term investments Investments in associates and other long-term investments

28

311 148

Gains Losses

157

(4)

(107)

Impairment charges

(172)

(21) 197

Reversals of impairment charges Provisions for risks and other expenses

48 (3)

(4) 98

Reversals of provisions for risks and other expenses

2 1 1 4

Securities held for investment

3 3 3

Gains

Property, plant and equipment and intangible assets

TOTAL

33

317

INCOME TAXES

NOTE 32

2018 (68)

2017 (75)

(in millions of euros)

Tax at standard rate Tax at reduced rate Tax credits

3

3

Impact of tax consolidation

219 115

191 136

Other items Carry Back TOTAL

269

255

Natixis’ German subsidiary was subject to an audit covering the 2009 to 2014 fiscal years. At December 31, 2018 Natixis Germany received a draft notification from the German tax authorities. The impact of this reassessment was recognized at December 31, 2018. Settlement of litigation from 2017 The European Court of Justice has ruled the application of a share of costs and expenses, fixed at 5% of dividends received from subsidiaries based in another European Union Member State which, if they had been residents of France, could have belonged to a tax consolidation Group, contrary to the freedom of establishment principle (EJC 2-9-2015, Case C-386/14, Groupe Steria SCA). Natixis, as the Head of the Tax Consolidation Group in France, thus received a reimbursement of the tax unduly paid on the 5% share of costs and expenses for a total of €6 million.

Tax calculation The tax consolidation agreement at Natixis group is based on the principle of neutrality, whereby each subsidiary determines its tax and contributes to the group tax as if it were not consolidated. Any tax savings or expense generated by consolidation is recognized by Natixis as the parent company. Any losses transferred to the parent company give rise to a provision for restitution of corporate tax, deemed to offset the additional Group tax incurred if subsidiaries return to profit, and their tax contribution is decreased by the amount of prior year losses. Tax audits Natixis S.A. was subject to an audit covering the 2008 to 2013 fiscal years, which resulted in the reception of a reassessment notice in December 2016. Final notice was received by Natixis during the 2018 fiscal year and the accounting impacts were factored in the accounts at December 31, 2018.

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Natixis Registration Document 2018