NATIXIS_REGISTRATION_DOCUMENT_2017

RISKS AND CAPITAL ADEQUACY Overall interest rate, liquidity and structural foreign exchange risks

Funding principles and structure 3.9.2.4 (Data certified by the Statutory Auditors in accordance with IFRS 7) Funding strategy As indicated in section 3.9.2.1,since mid-2011 Natixis’ funding structure has been rooted in the organization of a joint refinancing pool shared by Natixis and BPCE, 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, to reduce market financingand fundingcosts. In particular, Natixis’ funding model is based on strong centralizationof liquidityand liquidityaccesspoints throughthree Treasuryplatforms(Paris,NewYork and HongKong). 2017 saw the consolidation of the diversification strategy undertaken in recent years, as liquidity spreads fell and the business lines’ refinancing needs stabilized. The favorable market environmentmade it possible to focus on optimizingthe efficiency of refinancing and the cost of the resources raised (due to its impact on other ALM constraints),rather than seeking asset growth.This led to: increased growth and rotation of structured issues in private a placement, particularly in Asia, supporting the strategy of distributing “solution” Global Markets offers that generate greatervalue; the establishmentof a strategy for the circulation of liquidity a raised through private placementswithin the Group, aimed at improvingasset/liabilitymatching; the consolidation of “corporate” liquidity inflows through a various product offers (account administration,accounts, open deposits with notice dates, “Natixis Deposit” specialized professionalfund, EETCs,etc.). Thanks to these actions, Natixis maintaineda stable refinancing structureon both a yearly and quarterlybasis. Finally, the weight of resources provided by the Group was as always linked to the BPCE/Natixis Joint Refinancing Pool, cross-exchanges of liquidity for the purpose of managing and maximizing liquidity gaps and regulatory ratios, and the Group policy, making BPCE the sole public issuer in the long-term segment. The followingcharts are establishedfor informationpurposeson the basis of managementdata at year-end.

GROSS WEIGHT OF ON-BALANCE SHEET FUNDING ■ SOURCES, BY MAJOR CATEGORY OF VEHICLE AND/OR BY CUSTOMER SEGMENT AT END-2017 REPORTING DATE

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

40%

3

3% 4% 4% 4% 1%

29%

2% 3% 5% 2%

1%

Demand deposits 1%

Term deposits

Other deposits

Debt issues

Amounts owed to Groupe BPCE

BREAKDOWN OF GROSS FUNDING STRUCTURE BY ■ CURRENCY, AT CURRENT USD EXCHANGE RATES – 12.31.2017

8% Other currencies

59% EUR

34% USD

BREAKDOWN OF GROSS FUNDING STRUCTURE BY ■ CURRENCY, AT CONSTANT USD EXCHANGE RATES – 12.31.2017

7% Other currencies

56% EUR

37% USD

153

Natixis Registration Document 2017