NATIXIS -2020 Universal Registration Document

FINANCIAL DATA Parent company financial statements and notes

Under this method, Natixis does not recognize the portion of net cumulativeactuarial gains and losses that is lower than the greater of (i) 10% of the present value of the defined-benefitobligationand (ii) 10% of the fair value of any plan assets at the end of the previous reporting period. The portion of actuarial gains and losses outside the 10% corridor is therefore recognized over the average remaining working lives of the employees participating in the relevant plan. In the event of changes to an existing plan or the implementation of a new plan, past service cost is recognized in income over the period until the benefits become vested. Insurance contracts taken up with a party related to Natixis and intended to finance all or part of Natixis’ defined-benefit plan commitments are recorded in the asset side of the balance sheet as “Other assets”. The amount recognized as a provision in the balance sheet represents the present value of the obligation under defined-benefit plans at the closing date: minus any past service cost not yet recognized in income; V plus or minus any unrecognized actuarial gains or losses in V accordance with the corridor principle arising from: experience adjustments linked to demographic variables, V changes in actuarial assumptions, V change in discount rate, V differences between expected returns on plan assets and V reimbursement rights and their actual returns; minus the market value of plan assets at the closing date. V The annual payroll costs recognized in respect of defined-benefit plans consist of: rights vested by beneficiaries over the period; V the interest cost reflecting the impact of unwindingthe discount on V the obligation; the expected return on plan assets; V amortization of actuarial gains and losses and past servicceosts; V the effects of plan curtailments and settlements. V “Other long-term benefits” including long-service awards and deferred compensation payable in cash under Employee Retention and Performance Recognition plans are valued using the same actuarial method as that applied to post-employmentbenefits under defined-benefit plans, except that actuarial gains and losses are not subject to the corridormethod and past service costs are recognized directly as an expense. The estimated amount of the expense related to cash-settled variable compensation, subject to the employee’s continued service in accordance with the Employee Retention and Performance Recognition plans, is recognized over the vesting period. As of December 31, 2020, amounts due under the Time Savings Account are included in “other long-term benefits” for an amount of €69.8 million, whereas they were recorded as “short-term benefits” for an amount of €64.9 million at December 31, 2019.

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Share-based employee retention and performance recognition plans

Since 2010, Natixis allocates plans, the payment of which is based on shares, to certain categories of its personnel. These plans are settled in two forms : in Natixis shares for some and cash indexed to the price of the Natixis share of others. Each plan is a three-yearplan, with one-third of the plan settled after two years and two-thirds at the end of the vesting period, with the exceptionof “short-term”plans settled in cash indexed to the Natixis share price, which are settled in the year they are granted. All of these plans are contingent on satisfying service and/or performance requirements. Cash-settled employee retention and performance plans indexed to the value of the Natixis share Cash-settled plans indexed to the share price give rise to the recognition of a payroll expense that is measured taking account of the share price on the balance sheet date and the likelihood of satisfyingperformanceand/or service requirements.Where a service requirement exists, the calculated expense is recognized on a straight-line basis over the vesting period. When no service requirementexists, the expense is recognized immediatelyas a debt. The latter is then remeasured at each reporting date taking into account performance criteria and any changes in the value of underlying shares. The correspondingexpenserecognizedin the 2020 incomestatement was €9.3 million versus €18.0 million at December 31, 2019. Changes to the terms and conditions of a cash-settled employee retention and performance plan indexed to the value of the Natixis share which would lead to the latter being reclassified as an employee retention and performance plan settled in shares would trigger, when the plan stipulates the allocation of existing shares, the derecognitionof the debt recorded for the initial plan indexed to the value of the Natixis share and the recognition of a liability as a provision for the new employee retention and performance plan settled in shares. The difference between the recognition of the new plan and the derecognitionof the preexistingdebt is taken directly to profit and loss. When the plan provides for the allocation of new shares, only the derecognitionof the debt recorded for the initial plan indexed to the value of the Natixis share is taken to profiatnd loss. Employee retention and performance plans settled in shares Plans settled in shares are recognized in accordance with French Accounting Committee (CRC) regulation No. 2008-15, which provides for the recognition of a liability where there is the likelihood or the certainty that the obligation to grant shares generates an outflow in settlement without an offsetting provision: if the granting involves the issue of new shares, Natixis incurs no V outflow and, as a result, no expense is recognized; if the granting involves the repurchaseof shares or the granting of V existing shares, an outflowwill be recognizedwhen the shares are issued to employees, without an offsettingprovision. A provision is then set aside taking account of the entry cost of the shares or the share price on the balance sheet date if the shares have not yet been purchased and the probable number of shares granted to employees. The expense is recognized in stages over the vesting period.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020