NATIXIS -2020 Universal Registration Document

5 FINANCIAL DATA

Consolidated financial statements and notes

The cost of risk thus increased during the financial year 2020. It amounted to -€851.3 million at December 31, 2020 compared to -€332 million at December 31, 2019. The spread of the health crisis to the real economy as well as the financial sector has also affected the valuation of some products (see Note 1.4.3) . Despite the uncertainties as to changes in the economic environment, Natixis also carried out goodwill impairment tests for all of its CGUs (see Note 2.5) . Furthermore, the COVID-19 pandemic had an impact on the earnings for the 2020 fiscal year of BPCE IARD, a 50% equity method consolidated company, due to the worsening of the operating loss ratio for restaurant owners. As a result, and taking into account the impact of reinsurance, the entity’s contribution to the consolidated net income for the year is limited to +€4.9 million. Economic support measures 1.4.1 Measures to support the economy were taken during the year 2020 involving credit institutions. 1.4.1.1 Government-backed loans (GBLs) are a support measure enacted through Article 6 of the 2020 French Finance Reconciliation Law 2020-289 of March 23, 2020 and by the order of the Minister of the Economy and Finance of March 23, 2020 granting a government guarantee to lending institutions and financing companies effective March 16, 2020 by the French government in order to address the cash flow needs of companies affected by the COVID-19 health crisis. The characteristics of the GBLs (purpose, interest) are the same for all banks. The GBL is a one-year cash loan with repayment deferred over that period.Recipientcompanieswill be able to decideat the endof the first year to pay off the GBL over a periodof 1 to 5 additionalyears. At the end of the first year, the beneficiarycompanieswill be able to extend the deferredamortizationby an additionalyear, during this period, only the interest and the cost of the State guarantee will be paid. For eligible companies, the amount of the GBL is generally capped at 25% of the Company’s revenue. The GBL is 70% to 90% guaranteed by the government, depending on the size of the Company, with the banks assuming the rest of the risk. The government guarantee covers a percentage of the principal, interest, and related costs still owed on the debt until it reachesmaturity, unless it is called in earlier upon the occurrence of a credit event. Interest on the GBLs is in return for the time value and credit risk associatedwith the principal. The early repayment penalty is zero or set in a contractually reasonable manner, and the extension conditions are not set in advance but rather are reviewed at the time of the extension based on market conditions. Given the characteristics described above, the EMPs meet the solely payment of principal and interest (SPPI) criteria (see Note 5.1.2) . They are recognized in the category of “receivables at amortized cost” since they are held in a collection management model whose objective is to hold the loans in order to collect the cash flows (see Note 5.1.3) . On subsequent balance sheet dates, they will be measured at amortized cost using the effective interest ratme ethod. Government-backed loans

Launch of a transformation and operational efficiency program Natixis announced on November 5, 2020, during the presentation of its quarterly results, the launch of a transformation and operational efficiency program generating approximately €350 million in long-term cost savings at the end of 2024 (~€270 million in associated exceptional costs over the period), including in particular the transformation of the Corporate Banking activity. To meet the challenges it faces, Natixis will also continue to develop its operatingmodel with a view to competitivenessby drawing on its solid and diversified expertise. This approach of anticipation, adaptation and development has led Natixis, since 2016, to organize its support functions around two areas of activity in Europe: Paris and Porto. In line with this organizational plan, a development project for the Porto center was presented to the social partners at the end of January 2021. This would consist of: continuing the development in Porto of the support functions V already established there, in particular Technology & Transformation – with Data & Technology, COO-CIB and Global Business Management & Transformation, Human Resources and Risks; positioning other support functions in Porto: Finance, Workplace V and Communication, as well as certain Corporate Banking activities within Coverage and Distribution PortfolioManagement. This project, which would result in the repositioning of activities equivalent to 209 jobs, also confirms Porto’s position as a center of excellence and expertise. The strategic review of the equity derivatives business also confirmed its importance for Natixis and repositioned it on strategic clients while reducing the level of risk. The implementation of this announcement would lead to the elimination of 36 jobs. To implement the various components of these projects under the best possible conditions following the consultationof the Social and Economic Committee (CSE), an ambitious internal and external mobility plan is planned within the areas concerned. In parallel with the consultation on this project, negotiations will be held with the trade unions to define in detail the measures to support internal and external mobility. Given the date of announcement of these measures, and the concomitant opening of negotiations on the accompanying measures, it is not possible to provide an estimate of their financial effects on that date. on the financial statements The rapid global spread of the COVID-19 pandemic led most of the affected countries to impose lockdown measures on their populations during the year 2020, thereby heavily reducing business, which led to a worsening of the economic situation of numerous business sectors as well as a major disruption to financialmarkets. In this environment,manycompaniesare experiencingcashproblems, and Natixis is helping its customersget throughthis crisis, particularly by participatingin the implementationof certain government-directed economic support measures (see Note 1.4.1) . The economic recession has also led Natixis to alter the baseline scenario on the basis of which it determines the expected loss levels of its exposures (see Note 1.4.2 and 5.3) , in order to best estimate, despite the high level of uncertainty, the repercussions of current events on the risk of default within one year or within the lifetime of its outstanding financial items. Impact of the health crisis 1.4

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020