NATIXIS // 2021 Universal Registration Document

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

For the Corporate & Investment Banking division, the average annual growth in net banking income is expected to be around 7% over the period from 2020 to 2024, including an additional €500 million in revenue from its eight core industries. Natixis CIB also aims to align its balance sheet with a +2.5°C trajectory by 2024, then a +1.5°C trajectory by 2050. For the Insurance division, which is the subject of a planned transfer to BPCE, the average annual growth in net banking income is expected to be around 6% over the 2020-2024 period. Other targets for 2024 have been defined, such as the property and casualty/personal protection equipment rate for individual customers of Banque Populaire and Caisses d’Epargne of around 35% or the unit-linked ratio on gross life insurance inflows a4t0%. Lastly, for the Payments division, which, is also the subject of a planned transfer to BPCE, the average annual growth in net banking income is expected to be around 9% over the 2020-2024 period. Other targets for 2024 have been set, such as growth in digital payment volumes of over 30%. Achievement of the various objectives set by this plan is based on the implementationby Natixis and, more broadly, by Groupe BPCE of a certain number of initiatives and investments. Some of these objectives may not be achieved, which could potentially significantly affect the business, financial position and results of Natixis and, more broadly, of Groupe BPCE. Natixis’ risk measurement system, based in particular on the use of models, could fail and expose Natixis to unidentified or unanticipated risks that could have a negative impact on its results and financial position Natixis’ risk management measurement system, which is based on the use of models, could fail and expose Natixis to unidentified or unforeseen risks, and could result in major losses. Risk management techniques which often use models may prove inadequate for certain types of risks. Certain rating or VaR measurement models (as defined in Section [3.2.6.3]) that Natixis uses to manage its risks are based on observed historical market behavior. To quantify its risk exposure, Natixis then conducts a primarily statistical analysis of these observations (see Section [3.2.6.4] of the 2021 universal registration document for a detailed description of the risk managementsystem) . The measurementmetrics and tools used may provide inaccurate conclusionson future risk exposures,mainly because of factors that Natixis may not have anticipatedor correctly assessed or taken into account in its statistical models, or because of unexpected and unprecedentedmarket trends that could reduce its ability to manage its risks. Consequently, the losses borne by Natixis could prove far greater than those forecast using historical averages. Moreover, Natixis’ quantitative models do not incorporateall risks. For instance, part of the VaR measurement model is designed on the basis of positive interest-rate environment assumptions. In early 2016, because the interest rate environment for interest rate derivatives was negative, stressed VaR was overestimated by €5 million.

Natixis could encounter difficulties in identifying, implementing its policy and integrating any new entity in the context of acquisitions or joint ventures, which could adversely affect its profitability, cause losses or affect its reputation Natixis may consider opportunities for external growth or partnership. Although it is Natixis’ intention to conduct an in-depth analysis of the companies it will acquire or the joint ventures in which it will participate, it is generally not possible to conduct an exhaustive review. As a result, Natixis may have to bear commitments or experience risks that were not initially foreseen. Likewise, the expected results of an acquired company or joint venture may prove to be disappointing and the expected synergies may not be achieved in full or in part, or the transactionmay result in higher costs than expected. Natixis may also encounter difficulties when integrating a new entity. The failure of an announced external growth operation or the failure to integrate a new entity or joint venture may significantly affect Natixis’ profitability. In particular, the recognitionof goodwill during these external growth transactions could lead, in the event of a lasting deterioration in profitability, to a write-down in the financial statements (during periodic testing) or to recognition of a loss in the event of disposal. At the end of December 2021, Natixis goodwill was €3.44 billion, spread over the various Natixis divisions but mainly concentrated within the Asset & Wealth Management division. Significant recent impairments of goodwill or losses on disposals concerned Coface (in 2016 and 2020) and H20 (in 2020 and 2021). In the case of joint ventures, Natixis is exposed to additional risks and uncertainties insofar as it may depend on systems, controls and persons beyond its control and, as such, may be held liable, suffer losses or damage to its reputation. Furthermore, conflicts or disagreements between Natixis and its partners within the joint venture may have a negative impact on the benefits sought by the joint venture. In addition, litigation could arise in connection with external growth transactions and have an unfavorable impact on the integration process, on thefinancial benefits or on the expected synergies. Preventing risks linked to climate change could have a negative impact on the performance of Natixis’ activities that operate in sectors with a negative environmental and climate impact Among the risks related to climate change, we mainly distinguish the transition risk, which results from the process of transition to a low-carboneconomy, for example, regulatory changes, technological breakthroughs, changes in consumer preferences, and physical risk, which reflects the risks related to the direct impact of climate change and the increase in extreme weather events. Climate change risks are factors that aggravate traditional categories of risk (credit and counterparty risk, market and structural risk, operational risks, reputation risk, compliance risks, liquidity and financing risks, risks related to insurance activities) and are likely to impact Natixis’ activities, results and financial position in the short, mediumand long term. Natixis monitors these risks in the course of conducting its business, that of its counterpartiesand in its investments on its own behalf or on behalf of third parties.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021