NATIXIS -2020 Universal Registration Document

4 OVERVIEW OF THE FISCAL YEAR

Management report at December 31, 2020

Payments 4.2.2.4

2019 pro forma

Change 2020 vs. 2019

2020

(in millions of euros)

Net revenues

431

423

1.9% 5.7%

Banking operating expenses Gross operating income Provision for credit losses

(391)

(370)

39

52 (2) 50

(25.0)%

2

Net Operating income

42

(16.7)%

Associates Gains or losses on other assets Change in the value of goodwill Pre-tax profit

42

50

(16.8)%

Cost/income ratio Equity (Average)

90.9%

87.6%

403

375

ROE

7.3%

9.1%

Activity in 2020, penalized by the health crisis linked to COVID-19, was mixed, the various lockdowns having impacted consumption. The pandemic has nevertheless accelerated the underlying trends already present in the Payments market with the continued acceleration of contactless payments, which accounted for 43% of card transactions in Q4 2020 (compared to 31% in Q1 2020), a sign of the stepping-up in digitization, which is also reflected in the development of e-commerce activities, with business volumes up by 20% for Natixis Payment Solutions and Fintechs Dalenys and Payplug compared to 2019. The resilienceof the Payments business is mainly illustrated by: the contained decline in Natixis Payment Solutions’ legacy e (i) banking activities of 4% in the volume of card payments (after the 19% drop in Q2 2020 compared to Q2 2019); the limited decline in Natixis Intertitres’ historic restaurant (ii) voucher issuance activity (-2% of the volume of securities issued compared to 2019), which continued to ramp up the digitization of its APETIZ offering and accelerated its business development(+13%new beneficiariescomparedto 2019), while the other entities (Titres Gifts, Comitéo, Lakooz) showed good resistanceand posted a decline in the overall sales of business generated by the Prepaid & issuing business unit at -3%;

the outperformanceof the Merchant Solutions Business Unit’s (iii) FinTech e-commercePayplug, which recorded growth of 125% in its sales volumes thanks to strong business development and synergies achieved with the Banque Populaire and Caisse d’Epargne networks. At €430.6 million, net revenue from Payments was up 2% (+€8.1 million) compared to 2019, with growth mainly driven by the legacy electronic payment activities, which in particular developed new offerings for mass transfers & debits and fraud prevention, as well as by the contributionof the Fintechs of the Merchant Solutions Business Unit (BU). It should be noted that for the Prepaid & Issuing BU, the sound performance of the Gifts activities (gifts and marketplace offers) more than offset by the NIT revenues penalized by the closure of places that accept these vouchers. Expenses of the Payments division, at €391.4 million, were up 6% (+€21 million), in line with the human and IT investmentsmade, with in particular the launch of strategic projects (PPG Group Payments Program) in 2020, combinedwith the actions implementedto control costs. Overall, gross operating income fell 25% to €39.3 million. Pre-tax profit stood at €41.7 million down 17%, ROE stood at 7.3%, down by 1.8 points compared to 2019.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020