NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Parent company financial statements and notes

foundations and framework: 30 to 60 years; V external rendering: 10 to 20 years; V equipment and installations: 10 to 20 years; V internal fixtures and fittings: 8 to 15 years. V

value adjustments and proceeds from the disposal of securities V are recognized under different headings depending on which portfolio they belong to: under “Net revenues” for securitiesheld for trading and securities V held for sale, as a provision for credit losses on fixed-income securities in the V portfolio of securities held for sale or for investment when adjustments in value relate to counterparty risk exposure, under net gains/(losses) on fixed assets: V for adjustments in the value of securities held for investment V (excluding impairment for risk exposure to a counterparty) when there is a high probability of disposal of such securities held for investment due to unforeseen circumstancesand for all proceeds from thedisposal of securities held for investment, for investments in associates, subsidiaries and affiliates and V other long-term securities. Reclassifications from the “securities held for trading” to the “securities held for sale” and “securities held for investment” categories and from “securities held for sale” to “securities held for investment” are permitted in exceptional market circumstances requiringa change in strategyor when the securitiesin questionhave ceased to be tradable on an active market since theaicr quisition. The regulation allows banks to sell all or part of the securities reclassified as “held for investment” if the following two conditions are met: the transfer was motivated by exceptional circumstances; V the market for these securities has become active again. V Natixis has carried out no such transfers in its separate financial statements. and intangible assets Fixed assets are recognized at acquisition cost plus directly attributable transaction costs and borrowing costs accrued during any phase of construction or installation before they come into service. Internally-generated software is carried on the asset side of the balance sheet at its direct development cost, including outsourcing expenses and personnel costs directly attributable to its production and preparation where they meet the criteria focr apitalization. After acquisition, fixed assets are carried at cost less any cumulative write-down, amortization and impairment losses. As soon as they are in a condition to be used by Natixis in the manner in which they are intended, fixed assets are depreciated or amortized over their estimated useful lives on a straight-line or declining balance basis when this better reflects the economic amortization/depreciation. The residual value of the asset is deducted from its depreciableor amortizableamount when it can be measured reliably. In line with applicable accounting principles, a specific depreciation schedule is defined for each significant component of an item of property, plant and equipment which has a different useful life or is expected to consume future economic benefits differently from the item as a whole. For buildings comprising business and investment property, the following components and depreciation periods are applied: land: non-depreciable; V non-destructible buildings (of historical importance): V non-depreciable; walls, roofs and waterproofing: 20 to 40 years; V Property, plant and equipment 2.3

Other items of property, plant and equipment are depreciated over their estimated useful lives, generally between five to ten years. Purchased software is amortized on a straight-line basis over its estimated useful life, which in most cases is less than five years. Internally-generatedsoftware is amortized over its estimated useful life, which cannot exceed 15 years. When the fixed assets relate to a leased building, their depreciation period is made consistent with that of the leases. In particular, when Natixis decides not to renew a lease (for example under a so-called 3-6-9 lease), the period of depreciationof the fixed assets relating to the lease (e.g.: fixed fixtures and fittings) is capped at the residual term of the lease. Depreciation/amortizationperiods must be reviewed annually and, where applicable, the impact of any change in estimate is recognized prospectively, in income, from the date of the change. 2.4 This line item comprises debt attributable to freely tradable securities held for sale issued by Natixis in France or in foreign countries, with the exception of subordinated instruments recognized as subordinated debt. This line item notably includesmedium-termnotes, interbankmarket instruments, negotiable debt securities and bonds and other fixed-income securities. Accrued interest payable relating to these issues is disclosed separately as a related payable, with an offsetting entry in the income statement. Issue or redemption premiums on bond issues are amortized over the life of the issues in question and the related expense is recognized under the heading “interest and similar expenses” on the income statement. 2.5 This item covers perpetual and dated subordinated notes, which in the event of liquidationcan only be redeemedafter all other creditors’ claims have been met. Accrued interest is credited to the corresponding receivables item on the income statement. Where perpetual subordinated notes are treated as equivalent to amortizingsecurities, each periodic payment is broken down into the repayment of principal, which is deducted from the nominal amount, and interest, which is charged to the income statement under “interest and similar expenses”. (futures and options) The notional amount of these instruments is recorded off the balance sheet for internal monitoringand regulatory purposes, but is not included in the published statement of off-balance sheet items. Details for these instruments are provided in the notes. The accountingprinciplesapplied depend on the instrument involved and the purpose of the transaction (hedging or for tradingpurposes). Debt securities Subordinated debt Forward financial instruments 2.6

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020