NATIXIS_REGISTRATION_DOCUMENT_2017

RISKS AND CAPITAL ADEQUACY Summary of annual risks

is based on Natixis’ own interpretations of applicable tax laws and regulations, on the opinions received from independent tax advisers and occasionally on authorizations or rulings by the tax authorities. Since tax laws and regulations in the various jurisdictions in which Natixis operates may not always provide clear-cut or definitive guidelines, there can be no assurance that the tax authorities will not seek to challenge such interpretations in the future, in which case Natixis could be subject to tax reassessments. More generally, any failure to comply with the tax laws or regulations of the countries in which Natixis operates may result in reassessments, late payment interests, fines and penalties. Furthermore, tax laws and regulations may change, and there may be changes in their interpretation and application by the relevant authorities, especially in the context of international and European initiatives. The occurrence of any of the preceding factors may result in an increase in the tax burden of Natixis and have a material adverse effect on its business, results of operations and financial condition. Natixis’ profitability and business outlook could be adversely affected by reputational, legal and compliance risk Natixis’ reputation is essential in attracting and retaining its customers. The use of inappropriate means to promote and market its products and services and the inadequate management of potential conflicts of interest, legal and regulatory requirements, compliance issues, money laundering laws, information security policies and sales and trading practices may damage Natixis’ reputation. Its reputation could also be harmed by any inappropriate employee behavior, fraud or misappropriation of funds committed by participants in the financial sector to which Natixis is exposed, any decrease, restatement or correction of its financial results and any legal or regulatory action that has a potentially unfavorable outcome. Any damage caused to Natixis’ reputation could be accompanied by a loss of business likely to threaten its results and its financial position. Inadequate management of these issues could also give rise to additional legal risk for Natixis and lead to civil or criminal legal proceedings with potentially significant damages claimed against Natixis, or expose Natixis to sanctions from the regulatory authorities. Natixis currently is and will likely in the future be the subject of legal actions. Actions instituted against Natixis (including ongoing proceedings) could result in judgments, settlements, fines, or penalties, which could increase Natixis’ operational and litigation costs and result in material losses.

Unforeseen events may interrupt Natixis’ operations and cause substantial losses and additional costs Unforeseen events, such as a severe natural disaster, pandemic, terrorist attacks, or any other state of emergency, could lead to a sudden interruption of Natixis’ operations and cause substantial losses insofar as they are not covered or are insufficiently covered by an insurance policy. These losses could relate to property, financial assets, market positions and key employees. Such unforeseen events may, additionally, disrupt Natixis’ infrastructure, or that of third parties with which it conducts business, and could also lead to additional costs (such as relocation costs of employees affected) and increase Natixis’ costs (in particular insurance premiums). Subsequent to such events, Natixis may be unable to insure certain risks, resulting in an increase in Natixis’ overall risk. Other adverse unforeseen changes may occur in political, military or diplomatic environments and may create social instability or an uncertain legal environment that may negatively impact the demand for the products and services offered by Natixis. Tax laws applicable in the countries where Natixis operates could have a material impact on Natixis’ results Natixis is subject to the tax regulations in force in the various countries in which it operates. As an international group doing business in several countries, Natixis has structured its commercial and financial activities in light of diverse regulatory requirements and its commercial and financial objectives. Natixis aims to create value in serving its customers by drawing on the synergies and sales capacities of its various entities. Natixis is required to comply with recently adopted reporting requirements which are part of the global fight against tax evasion and, more generally, with any mechanisms that could be adopted being part of the global fight against tax evasion. Natixis reports transparently on its organizational structure and operations, and discloses its revenues and the corresponding taxes on a country-by-country basis for greater clarity on the determining factors of its tax expense, and observes the Code of Practice on Taxation for Banks. These new reporting requirements, and more generally, any mechanisms adopted to enhance cooperation between tax administrations in the fight against tax evasion, will subject Natixis to additional administrative burdens and to costly reporting obligations. The tax regime applied to Natixis’ operations, intra-group transactions or reorganizations (past or future) managed by Natixis or its affiliates and financial products sold to customers,

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Natixis Registration Document 2017