NATIXIS - 2018 Registration document and annual financial report

4 OVERVIEW OF THE FISCAL YEAR Information concerning Natixis S.A.

At December 31, 2018, Natixis’ gross operating income stood at +€1,760 million, a +€406 million increase compared with December 31, 2017, due to a €472 million increase in net revenues, less a €66 million increase in operating expenses. Net interest income decreased by -€148 million: -€160 million for business in Mainland France and +€12 million for foreign branches. Net fee and commission income decreased by -€170 million, resulting from a -€247 million decrease in Mainland France and an increase of +€77 million in business recorded by foreign branches. This change in fee and commission income can be broken down into -€238 million in net fee and commission income on off-balance sheet transactions, +€86 million on transactions with customers and -€18 million in financial service or payment instrument transactions. Dividends paid by Natixis subsidiaries increased by €756 million. €663 million of this increase can be attributed to the higher dividend paid by Asset Management subsidiary Natixis Investment Managers, €42 million to the higher dividend paid by subsidiary Compagnie Européenne de Garanties et Cautions and a €33 million increase on behalf of Natixis Private Equity. Gains on trading book transactions decreased by €113 million, i.e. -€100 million for Mainland France and -€13 million for transactions carried out by foreign branches. Operating expenses were up €66 million, including -€4 million in payroll costs, +€33 million in external services net of reinvoicing and +€37 million in regulatory taxes and costs (including +€42 million for the contribution to the Single Resolution Fund). Changes in external services were mainly concentrated in external services provided by Group companies (+€15 million, net of rebilled expenses), consulting fees (-€8 million) and external assistance fees (+€28 million). The net provision for credit losses was down €20 million (of which -€25 million for the branches) to -€228 million. Together, these items brought operating income to +€1,532 million, up €426 million. At December 31, 2018, net gains/(losses) on fixed assets amounted to +€33 million. The balance for fiscal year 2018 is mainly attributable to the €151 million capital gain earned on the NUSHI share swap, a €71 million provision over the fiscal year

for Contango Trading S.A. shares and a €69 million provision for Natixis Factor. The balance for fiscal year 2017 was attributable to the capital gain earned on the disposal of CACEIS securities for €84 million before tax and to the downward adjustment of the provision recorded on Coface equity investments (reversal of provision of €111.9 million). Net income after tax was +€1,834 million versus +€1,678 million in 2017. At December 31, 2018, the balance sheet totaled €406,868 million versus €410,598 million at December 31, 2017.

PROPOSED ALLOCATION 4.5.2 OF EARNINGS

Natixis’ financial statements at December 31, 2018, showed positive net income of €1,834,308,793.77 and, taking into account retained earnings of €1,625,059,649.69, showed distributable earnings of €3,459,368,443.46. The third resolution that will be put before the General Shareholders’ Meeting on May 28, 2019, proposes to: pay an ordinary dividend of €945,086,577.60; a pay a special dividend of €1,512,138,524.16; a allocate the remaining distributable earnings to retained a earnings, i.e. €1,002,143,341.70. It should be noted that the distribution of the special dividend depends on Natixis' plan to sell its Factoring, Sureties & Financial Guarantees, Leasing, Consumer Finance and Securities Services business lines to BPCE, and that if this sale cannot be completed before the date of the General Shareholders' Meeting, the Board of Directors will amend the text of the third draft resolution to provide for (i) the payment on June 4, 2019, of the ordinary dividend in an amount equal to that initially proposed for the ordinary dividend above and (ii) the subsequent payment (at a date after the planned sale is completed) of the "special" dividend in an amount equal to that initially proposed for the special dividend above.

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Natixis Registration Document 2018