NATIXIS - 2018 Registration document and annual financial report

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

Natixis may not achieve the goals of its strategic plan, which could adversely affect its financial position and the market value of its securities Natixis may be unable to meet the objectives set out in its “New Dimension” strategic plan for the period from 2018 to 2020, or in any future or replacement strategic plan. The New Dimension plan, announced on November 20, 2017, aims to contribute to the development of high value-added solutions for Natixis’ clients. The strategy focuses on three initiatives: deepening the transformation of Natixis’ business models; investing in digital technologies and external growth opportunities; and seeking to become clients’ key representatives in areas where Natixis’ teams have developed strong and recognized expertise (see pages 4-5 of the registration document for a detailed description of the New Dimension strategic plan). The New Dimension strategic plan contains forward-looking information and guidelines, and while Natixis believes the plan provides a number of opportunities, it will face uncertainties related to the potentially volatile state of financial markets and the global economy. There is therefore no guarantee that Natixis will achieve the goals of this new strategic plan or any other strategy it announces or undertakes in future periods. In particular, in connection with the New Dimension strategic plan, Natixis announced certain financial targets, mainly profitability and risk-weighted asset growth rates, capital generation targets and shareholder dividend objectives, as well as targets for regulatory capital ratios and strategic initiatives and priorities. The financial objectives were established primarily for purposes of planning and allocation of resources, are based on a number of assumptions, and do not constitute projections or forecasts of income. The actual results of Natixis are likely to vary significantly from these targets. If Natixis does not realize these objectives, its financial position and the market value of its securities could be adversely affected. Natixis may encounter difficulties in identifying, executing and integrating its policy in relation to acquisitions or joint ventures Natixis may consider external growth or partnership opportunities from time to time. While Natixis closely reviews the companies it plans to acquire and the joint ventures it plans to engage in, it is generally not feasible for these reviews to be exhaustive. As a result, Natixis may have to assume unforeseen liabilities. Similarly, the expected benefits of an acquisition or joint venture may not be obtained, expected synergies may only be partly achieved (or not achieved at all), or the transaction may give rise to higher-than-expected costs. Natixis may also encounter difficulties in consolidating a new entity. The failure of an announced external growth operation or the failure to consolidate the new entity or joint venture is likely to materially affect Natixis’ profitability. This situation could also lead to the departure of key employees. Insofar as Natixis may feel compelled to offer its employees financial incentives in order to retain them, this situation could also result in increased costs and an erosion of profitability. In the case of joint ventures, Natixis is subject to additional risks and uncertainties in that it may be dependent on systems, controls and personnel not under its control and which could subject Natixis to liability, losses or reputational damage. In addition, conflicts or disagreements between Natixis and its joint venture partners may undermine the benefits sought by the joint venture.

Legislative and regulatory measures in response to the global financial crisis may materially impact Natixis and the financial and economic environment in which it operates Legislation and regulations have recently been enacted or proposed with a view to introducing a number of changes, some permanent, in the global financial environment. These new measures, which aim to avoid a recurrence of the global financial crisis, have changed substantially, and may change in the future, the environment in which Natixis and other financial institutions operate. Natixis is exposed to the risk relating to these legislative and regulatory changes, including: bans or limitations on certain types of financial products or a activities; more stringent internal control requirements;-more stringent a personal data protection and cybercrime requirements; more stringent regulation with regard to technological a innovations in the payment services and fintech fields; and the strengthening of the role of trading platforms and central a counterparties (clearing houses) in regulations on clearing mechanisms. In this changing legislative and regulatory environment, it is impossible to predict the impact these new measures will have on Natixis. Natixis is incurring, and could incur in the future, significant costs to update or develop programs to comply with these new legislative and regulatory measures and to update or develop its information systems as a response to or in anticipation of the new measures. Despite its efforts, Natixis may also be unable to achieve full compliance with all applicable legislation and regulations and could thus be subject to financial or administrative penalties. Furthermore, the new legislative and regulatory measures may require Natixis to adapt its businesses and/or could therefore affect its results and financial position. Lastly, the new regulations may require Natixis to raise new capital at a time when it is costly or difficult to do so, or could increase its overall funding costs.

RISKS RELATED TO INSURANCE ACTIVITIES

A deterioration in market conditions, and in particular excessive up and down movements in interest rates, could have a material adverse impact on Natixis’ life insurance business and its income The main risk to which Natixis’ insurance affiliates are exposed in their life insurance business is market risk. Exposure to market risk relates mainly to the capital guarantee and return commitments for the euro-denominated savings fund scope. Among market risks, interest rate risk is structurally significant for Natixis as its general funds consist primarily of bonds. Interest rate fluctuations may:

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Natixis Registration Document 2018