NATIXIS -2020 Universal Registration Document

5 FINANCIAL DATA

Parent company financial statements and notes

Institutional operations 2.7 In accordancewith Article 41 of the AmendingFinance Law for 1997 (No. 97-1239 of December 29, 1997), amended by Article 121 of the Amending Finance Law for 2008 (No. 2008-1443 of December 30, 2008),Article 5 of the Amended Finance Law for 2014 (No. 2014-1655 of December 29, 2014) and the agreement signed with the French State on December 24, 2019, Natixis manages certain public procedures on behalf of the French State, mainly consisting of loans and grants to foreign States conferredwithin the framework of Public Development Aid, non-concessional loans to foreign States, grants to the “Fund for Private Sector Aid and Studies” and the stabilizationof interest rates for export credit guaranteedby the State. The related transactions, some of which may be guaranteed by the State, are recognized separately in the financial statements. The State and other related creditors have a specific right over the Natixis’ assets and liabilities allocated to these institutional operations. The bank’s assets and liabilities relative to these operations are identified on the balance sheet under each of the headings concerned with these operations. “Short-termbenefits” includingsalaries, social security contributions, annual leave, employee profit-sharing, incentive plans, top-up contributions and variable compensation payable in the 12 months after they are attributed, are expensed in the period in which the corresponding services were rendered. “Termination benefits” are granted to employees upon the termination of their employment and prior to retirement. A provision is accrued for these benefits. “Post-employmentbenefits” such as pensions, other supplementary retirement benefits applicable to the banking industry, end-of-career awards and other contractual benefits payable to retirees. Natixis distinguishes between two types of post-employment benefits: defined-contribution plans , which mainly consist of the social V security basic pension scheme and the supplementary schemes Agirc and Arrco, under which an entity has no obligation to pay a specified benefit amount. Contributions paid under defined-contribution plans are expensed in the corresponding period; defined-benefit plans under which Natixis has a legal or V constructive obligation to pay a specified benefit amount are valued and funded. A provision is set aside for defined-benefit plans based on an actuarial assessment of the benefit obligation using the projected unit credit method. This method draws on demographic and financial assumptions. The value of plan assets is deducted from the actuarial debt. This valuation is carried out on a regular basis by independent actuaries. Actuarial assumptionsare reviewed annually. Differences resulting from changes in actuarial assumptions and experience adjustments(impact of differencesbetweenactuarial assumptions and actual experience) give rise to actuarial gains and losses. In accordance with recommendation No. 2013-02 of the Autorité des Normes Comptables (ANC – French accounting standards authority) on rules for measuring and recognizing retirement and similar commitments,dated November 7, 2013 (which allowed the partial adoption of revised IAS 19 as adopted by the European Union in June 2012),Natixis chose to maintain the corridormethod approach in the individual financial statements. Employee benefits 2.8 Employee benefits are recognized in “Payroll costs”. They fall into four categories:

Interest rate and currency trading These transactions are carried out for four purposes: micro-hedging (affected hedge); V macro-hedging (global balance sheet management); V speculative position-taking; V specialized management of a trading portfolio. V

Gains or losses on specific hedges are recognized in income on a symmetrical basis with the income and expenses of the position or transaction being hedged. Expenses and income arising from forward financial instruments used to hedge and manage Natixis’ overall interest rate risk are recognized on a prorata basis. Unrealized gains and losses are not recognized. The accounting treatment of speculative positions is identical for interest flows. Contracts are marked to market value at each reportingdate and any unrealized losses are recognizedin income as provisions. Each instrument in the final category is marked to market on an individual basis. Changes in value during the period are recognized immediately on the income statement. Valuations are adjusted for counterparty risk, the position funding cost and the discounted present value of future contractual management costs. Forward foreign exchange contracts Outright foreign currency futures or transactions hedging other foreign currency futures are measured based on the forward foreign exchange rate remaining to run on the currency in question. Differences in interest rates or premiums and discounts associated with hedged foreign currency futures are recognized in stages as interest expense or income over the effective term of thetransaction. Options (interest rate, currency and equity) and futures The notional amount of the underlying instrument of each option or futures contract is recognizedwith a distinctionbeingmade between hedging and trading contracts. For hedging transactions, income and expenses are recognized in income on a symmetricalbasis with the income and expensesof the hedged items. For non-hedging activities, positions in a class of option or forward contract are marked to market at the reporting dates. Changes in market value are recognized directly in the income statement. However, for instruments traded on over-the-countermarkets, gains or losses are recognized on the income statement only upon settlement of these transactions, without effect on the potential setting aside of provisions for the net risk incurred over the life of the instrument. The presentation of premiums on options whose payment is due or ultimately has been modified as of December 31, 2020 (see Note 2) .

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020