NATIXIS - 2018 Registration document and annual financial report

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk management

WEIGHT OF GROSS ON-BALANCE SHEET FUNDING ■ SOURCES BY MAJOR CATEGORY OF VEHICLE AND/OR BY CUSTOMER SEGMENT AT END-2018 REPORTING DATE Sources: Management data

Contingency funding plan under liquidity stress (Data certified by the Statutory Auditors in accordance with IFRS 7) The aim of this Contingency Funding Plan (“CFP under Liquidity Stress”) is to ensure that, in the event of a liquidity crisis altering the Group's ability to obtain funding, all resources are used in a coordinated and optimized manner to allow the Group to meet its current and future financial obligations and thus maintain business continuity. Given that Natixis is supervised by BPCE, in its capacity as the central institution, and given the close interactions between BPCE and Natixis in terms of liquidity management within the framework of the joint refinancing pool (see section 3.9.2.1) , this plan is defined in accordance with the Groupe BPCE business continuity plan, in the event of a crisis affecting access to liquidity for Natixis, BPCE and/or the entire banking system. A governance system (dedicated teams and Committees, activation and deactivation rules, reporting and communication procedure, etc.) and remediation plans to enhance liquidity and reduce funding requirements are defined and documented. In addition, the BCP is regularly tested to ensure that it is operational, in accordance with regulations. Funding principles and structure (Data certified by the Statutory Auditors in accordance with IFRS 7) Funding strategy Furthermore, since mid-2011, Natixis’ funding structure has relied on a Joint Refinancing Pool shared by Natixis and BPCE, as indicated in section 3.2.7.2. Placed under the authority of the Group ALM Committee, this platform was implemented in order to secure the Group’s financing and optimize the management and allocation of liquidity within the Group in accordance with predefined rules, with the aim of limiting the use of market financing and reducing funding costs. The diversification strategy now needs to be taken on board at Group level; Natixis is not the Group's only strategic arm. The strategy aims to extend the Group’s financing sources by geographic zone, currency, product and counterparty, so as to limit its stock market footprint while restricting the so-called “market” liquidity needs of consumer business lines. As for Natixis, implementing this strategy will notably involve structured issues made via private placement, as well as deposit taking via corporate bonds in Europe and Asia. The diversification strategy that has been underway for several years now was further fortified in 2018, when liquidity remained abundant and fluid liquidity—particularly for the US dollar—but long-term liquidity spreads rose, in step with the adjustment in investor risk premiums to international conditions (trade tensions between the US and China, Italy, Brexit, economic slowdown, etc.). The following charts are established for information purposes on the basis of management data at year-end.

Central banks Credit institution Financial customers Non-financial customers Other customers Debt issues BPCE

3

4%

34%

32%

5% 4% 4% 5%

2% 2% 5% 2%

1%

Demand deposits

Time deposits

Other deposits

Debt issues

Amounts owed to Groupe BPCE

BREAKDOWN OF GROSS FUNDING STRUCTURE BY ■ CURRENCY, AT CURRENT USD EXCHANGE RATES — 31/12/2018

7% Other currencies

38% USD

55% EUR

BREAKDOWN OF GROSS FUNDING STRUCTURE BY ■ CURRENCY, AT CURRENT USD EXCHANGE RATES — 31/12/2017

8% Other currencies

58% EUR

34% USD

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Natixis Registration Document 2018