NATIXIS -2020 Universal Registration Document

5 FINANCIAL DATA

Parent company financial statements and notes

Provisions for risks 2.10 A provision for risks is a liability of uncertain timing or amount. A liability is a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits that can be reliably measured. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the reporting date. This amount is discounted when the effect of discounting is material. Provisions are reviewed at each reporting date and adjusted if necessary.Provisionsrecognizedon the balance sheet, other than provisions to cover employee benefits and sector and country risks, mainly concern provisions for restructuring, provisions for disputes, fines and penalties and provisions for other risks. foreign currencies Off-balancesheet receivables,debts and commitmentsdenominated in foreign currencies are converted to euros at the going exchange rate at the balance sheet date through the revaluation of foreign exchange positions. The difference between amounts resulting from the valuation of euro-denominated foreign exchange positions and amounts reported in equivalent euro-denominatedforeign exchange positions is recorded in the income statement. However, exchange differences relating to institutional operations are recognized under accrual accounts. subsidiaries The financial statements of foreign subsidiaries, prepared in accordance with local rules, are restated in accordance with generally accepted accounting principles in France, translated into euros when the functional currency is not the euro and included in Natixis’ financial statements after the elimination of intra-group transactions. Items from the balance sheet and income statement are translated at the end of the reporting period. The difference arising from the translation of foreign subsidiaries’ capital allocations are recorded in the accrual accounts. Transactions denominated in 2.11 Integration of foreign 2.12

2.13

Contributions to banking

resolution mechanisms The procedure for setting up the deposit and resolution guarantee fund was changed by a French Ministerial Order dated October 27, 2015. Contributions made to the deposit and resolution guarantee fund may be paid in the form of partner or association certificates and cash security deposits (guarantee of irrevocable commitment) recognized as assets on the balance sheet and contributions (which are non-refundable in the event of a voluntary withdrawal of approval to operate) recorded in income as “Taxes and regulatory contributions” among other operating expenses (see Note 6.7) . Directive No. 2014/59/EU (BRRD – Bank Recovery and Resolution Directive) which establishes the framework for the recovery and resolution of banks and investment firms and Regulation (EU) No. 806/2014 (SRM Regulation) established the introduction of a resolution fund as of 2015. In 2016, this fund became a Single Resolution Fund (SRF) between the member States participating in the Single Supervisory Mechanism (SSM). The SRF is a resolution financing mechanism available to the resolution authority (Single Resolution Board). The latter may use this fund when implementing resolution procedures. In accordance with Delegated Regulation No. 2015/63 and Implementing Regulation No. 2015/81 supplementing the BRRD Directive on ex-ante contributions to financing mechanisms for the resolution, the Single Resolution Board set the level of contributions to the Single ResolutionFund for 2019. The contributionspaid to the fund may be made in the form of cash guaranteedepositswhich are recorded as assets on the balance sheet (up to a maximum of 15% of the contributions called up) and contributions recognized in the income statement under the item “Taxes and regulatory contributions”. 2.14 Non-recurring income and expense items are determined based on their amount, their unusual nature with respect to current operations, and the likelihood of the events in question repeating. 2.15 Due to additional contributions, the corporate tax rate used to calculate the expense payable for the year was 32.02% for France. Applicable local corporate tax rates were used for foreign subsidiaries. Non-recurring income Corporate income tax

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020