NATIXIS - 2018 Registration document and annual financial report

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

STRATEGIC AND BUSINESS RISKS

In the course of business, Natixis is exposed to employee or third-party actions and behaviors that are unethical or violate laws and regulations and that could damage its reputation and expose it to sanctions Natixis’ Code of Conduct, applicable to all Natixis employees, formalizes the general principles of conduct that apply at Natixis and establishes guidelines for all employees regarding the behavior expected in the performance of their duties and responsibilities. Any person working at Natixis, or at an entity at least 50% owned by Natixis, must comply with the Code of Conduct, whether this person is a permanent or temporary employee. This requirement is in addition to commitments to comply with applicable internal rules and national and international laws and regulations. Natixis also requires that its suppliers and contractors act in compliance with the key principles of the Code of Conduct. In order to implement the Code of Conduct on a day-to-day basis, Natixis has established a conduct system, consisting notably of a dedicated committee (the Global Conduct Committee) and a specific training program. For a detailed description of the Code of Conduct and the conduct system, please refer to Section 6.2 of this registration document. Nevertheless, even with the adoption of a Code of Conduct and the development of a conduct system, Natixis is exposed to potential actions or behaviors by employees, suppliers and contractors that are unethical or not in the interest of the client, that do not comply with the laws and regulations on corruption or fraud, or that do not meet financial security or market integrity requirements. Such actions or behaviors could have negative consequences for Natixis, hurt its reputation or its shareholder value and expose Natixis, its employees or stakeholders to criminal, administrative or civil sanctions likely to adversely affect its financial position and its business volumes. Natixis’ reputation is one of the keys to its ability to conduct its business and in particular to meet the objectives set out in its New Dimension strategic plan. Thanks to its current reputation, Natixis is able to maintain relationships of trust with its clients, employees, suppliers, partners and investors. The occurrence, whether once or repeatedly, of one or more of the risks identified in this section, in addition to the specific negative impact it causes, could tarnish Natixis’ reputation and, as such, affect its business outlook and thus its financial results. Natixis’ ability to attract and retain qualified employees is critical to the success of its business and failure to do so may significantly affect its performance Natixis’ business model is based on expertise in various business areas, which in turn requires qualified employees. High turnover or the departure of talent could affect Natixis’ skills and know-how in key areas, which could reduce its business outlook and consequently affect its financial results. A deterioration in Natixis’ reputation could adversely affect its financial results

Adverse market or economic conditions may negatively affect Natixis’ profitability and financial position Natixis is the Groupe BPCE subsidiary that carries out its Asset & Wealth Management, Corporate & Investment Banking and Specialized Financial Services activities; it operates in three key regions: the Americas (29% of net revenues for the fiscal year ended December 31, 2018), Asia-Pacific (2% of net revenues for the fiscal year ended December 31, 2018) and EMEA (Europe, Middle East and Africa, 69% of net revenues for the fiscal year ended December 31, 2018). These businesses are sensitive to changes in the financial markets and more generally to economic conditions in France, Europe and the rest of the world. Adverse economic conditions in the main markets where Natixis operates could in particular have the following negative impacts: adverse economic conditions could affect the business and a operations of Natixis’ customers, resulting in an increased rate of default on loans and receivables and higher provisions for non-performing loans. A significant increase in these provisions or the realization of losses in excess of the provisions recorded could have an adverse effect on Natixis’ results and financial position; a decline in prices on the bond, equity or commodity markets a could reduce business levels on these markets; macro-economic policies adopted in response to actual or a anticipated adverse economic conditions could have unintended negative effects, and are likely to negatively impact market parameters such as interest rates and foreign exchange rates, which could affect the results of Natixis’ businesses that are most exposed to market risk; perceived favorable economic conditions generally or in a specific business sectors could result in asset price bubbles decorrelated from the actual value of the underlying assets; this could in turn exacerbate the negative impact of corrections when conditions become less favorable and cause losses in Natixis’ businesses; a significant economic disruption (such as the global financial a crisis of 2008 or the European sovereign debt crisis of 2011) could have a severe negative impact on all the activities of Natixis, particularly if the disruption is characterized by an absence of market liquidity that makes it difficult to finance Natixis and to sell certain categories of assets at their estimated market value or at all. The main markets on which Natixis operates may also be affected by uncertainties such as those regarding the future relationship between the United Kingdom and the European Union following the Brexit decision and those regarding global trade. These uncertainties could adversely affect Natixis’ profitability and financial position.

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Natixis Registration Document 2018

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