NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Consolidated financial statements and notes

Note 1

General framework

transfers of financial instruments measured at fair value through profit or loss by both sectors involved. The accounting principles and methods used to prepare the consolidated financial statements of Natixis at December 31, 2020 are identical to those used to prepare the consolidated financial statements for the fiscal year ended December 31,2019, prepared in accordancewith IFRS as adopted in the EuropeanUnion and detailed in Note 1.1 “Basis of presentation” to the consolidated financial statements for fiscal year 2019 (presented in Chapter [5.1] “ Financial data – Consolidated financial statements and notes” of the 2019 universal registrationdocument ), with the exceptionof the standards, amendments and interpretations, which took effect as of January 1, 2020: the amendments to IAS 1 and IAS 8 “Definition of Material” V adopted by the EuropeanCommissionon November 29,2019 with mandatory application from January 1, 2020. These amendments provide clarification of the term “material” in order to facilitate assessments of the significance, or otherwise, of a piece of information, and to improve the relevance of the information presented in the notes to the financial statements. These amendments had no impact on Natixis’ financial statements; the amendment to the “Conceptual framework” adopted by the V European Commissionon November 29, 2019 and applicable on a mandatory basis from January 1, 2020. The aim of this amendment is to replace existing references to previous frameworks, in respect of several standards and interpretations, with references to the revised conceptual framework. This amendment had no impact on Natixis’ financial statements; the amendment to IFRS 3, “Business Combinations” , adopted by V the European Commission on April 21, 2020 and applicable as of January 1, 2020. This amendment clarifies the definition of a business and enables a simpler analysis to determine whether an acquisition constitutes a business combination or a mere acquisition of assets. This amendment had no impact on Natixis’ financial statements; the amendment to IFRS 16 “Rental concessions-COVID-19” , V adopted by the European Commission on October 9, 2020 and applicable retrospectively from June 1, 2020. This amendment provides for optional and temporaryoperationalrelief related to the COVID-19healthcrisis for tenantsbenefitingfromrent concessions. This amendment had no impact on Natixis’ financial statements; amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 V “Reform of benchmark interest rates – Phase 2” adopted by the European Commission on January 13, 2021 and applicable from January 1, 2021 with an application possible. Natixis opted for early application at December 31, 2020. These amendments aim to define the accounting procedures for changes affecting financial assets and liabilities (including lease liabilities) that would result from the transition to alternative benchmark rates. They also provide for some relaxation in the application of hedge accounting in order to allow hedging relationships to be maintained beyond the modification of the reference rates. Natixis is mainly exposed through its derivative contracts and its lending and borrowing contracts at EURIBOR, EONIA and LIBOR rates. The amount of financial assets, financial liabilities and the notional amount of derivatives indexed to these indices, with maturities greater than December 31, 2021, are presented in Note 5.22.

1.1

Accounting standards applied

1.1.1

IFRS standards and IFRIC

interpretations applied by the Group As required by Regulation (EC) No. 1606/2002 of July 19, 2002, Natixis has prepared its consolidated financial statements for the year ended December 31, 2020 in accordance with IAS/IFRS standards and IFRIC interpretations as adopted by the European Union and applicable on that date (1) . Natixis’ consolidated financial statements include a balance sheet, income statement, statement of net income/(loss) and other comprehensive income, statement of changes in shareholders’ equity, cash flow statement and notes to the financiasltatements. The financial statements presented for comparative purposes were published by Natixis in the 2019 Universal registration document filed with the Autorité des Marchés Financiers (AMF – French Financial Markets Authority) on March 6, 2020. In accordance with Regulation (EU) 2017/1129 relating to the publication of prospectusesand CommissionDelegated Regulation (EU) 2019/980 relating to the information contained in prospectuses, the financial statements for the year ended December 31, 2018, which were published in the 2018 registration document filed with the AMF on March 15, 2019, are included for reference in this Universal registration document. It should be noted that the new IFRS 9, “Financial Instruments”, adopted by the European Commission on November 22, 2016, is applicable as of January 1, 2018. As a reminder, Natixis elected to take the option offered by IFRS 9 not to apply the standard’s provisions pertaining to hedge accounting and to continue applying IAS 39 for the purpose of recognizing hedging transactions, as adopted by the European Union, i.e. excluding certain macro-hedging provisions. Furthermore,on November 3,2017, the EuropeanCommissionadopted the amendmentto IFRS 4 on the joint applicationof IFRS 9 “Financial Instruments”and IFRS 4“InsuranceContracts”,with specificprovisions for financial conglomerates,with effect from January 1, 2018. Under Europeanregulations,financial conglomeratesmay defer applicationof IFRS 9to their Insurancedivisionsuntil the effectivedate of application of the new IFRS 17 “Insurance Contracts”, as long as they: do not transfer financial instruments between the Insurance V division and other divisions of the conglomerate (with the exception of financial instruments at fair value through profit or As a financial conglomerate,Natixis elected to apply this provisionfor its insuranceoperations,which will continue to be covered by IAS 39. The main entities concerned by this measure are the Coface insurance subsidiaries, Natixis Assurances, BPCE Vie and its consolidatedfunds, Natixis Life, BPCE Prévoyance,BPCE Assurances and BPCE IARD. Pursuant to the implementing regulation of November 3, 2017, Natixis took the necessary measures to prohibit any transfer of financial instruments between its insurance operations and the rest of the group that would have a derecognizing impact for the transferring entity, although this restriction is not required for loss for the two divisions affected by the transfer); indicate the insurance entities that apply IAS 39; V provide specific additional information in the notes. V

5

The complete set of standards adopted within the European Union can be consulted on the European Commission website at the following address: (1) http://ec.europa.eu/finance/company-reporting/ifrs-financial-statements/index_fr.htm.

259

www.natixis.com

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020