NATIXIS_REGISTRATION_DOCUMENT_2017

PRESENTATION OF NATIXIS Natixis’ businesses

On December 6, 2017, Natixis and ODDO BHF announced plans for a long-term partnership on the equity markets (cash equity, equity research, equity capital markets) with a view to delivering a unique solution for investors and issuers that is consistent with the regulatory changes associated with MiFID II. The aim is to create a leading player on equity broking and equity capital markets in continental Europe. The combination of research and sales teams serving corporate and investors, the strength of Natixis’ Corporate & Investment Banking business and ODDO BHF’s distribution capabilities should enable them to gain market share. This partnership will result in: the transfer of Natixis’ equity broking and equity research a activities in France to ODDO BHF; the reunion of both players’ equity capital markets activities in a France under Natixis; the acquisition by Natixis of a 5% equity interest in ODDO a BHF. Global markets (capital markets) 1.5.2.1 In fixed income, credit, forex, commodities and equity markets, Natixis offers its corporate and institutional (both private and public sectors) clients and Groupe BPCE network clients a wide range of investment, financing and hedging products that tie into its widely recognized research. Underpinned by extremely rigorous risk management, the capital markets business is based on a strategy focused on delivering solutions in which innovation and responsiveness to clients’ specific needs are strong differentiating factors. The financial engineering and sales teams therefore play a central role in this strategy, which focuses squarely on dialog with clients, thereby strengthening long-term relationships. A multi-underlying approach is being developed for clients, as shown by the creation of the Global Securities Financing team which operates in both the fixed income and equity markets. This approach is being applied in the international platforms, especially in Asia, where a number of specialists have been hired to develop the offer of multi-underlying solutions. The prestigious “Structured Products House of the Year” award won in Asia for 2017 (source: AsiaRisk) reflects the bank’s strong position in this highly competitive market. As a result of the strategy implemented over the past four years, Global Markets delivered an excellent performance in 2017, outperforming the market and with revenues up sharply despite a difficult environment, particularly in the third quarter, which was marked by low volatility. Fixed income, credit, forex and commodities markets On the fixed income markets , our teams offer clients financing, investment and hedging products and solutions on the credit, fixed income and forex markets in OECD and emerging countries. The teams are located in Europe (Paris, London, Milan, Madrid and Frankfurt), the Middle East (Dubai), Asia (Singapore, Tokyo, Hong Kong, Shanghai and Taipei) and the Americas (New York, Houston and São Paulo). In early January 2017, a cross-business European sales and financial engineering team was created, making financial

engineering a key component of the fixed income business. The team is dedicated to driving the development and sale of innovative solutions for clients on the credit, fixed income and forex markets, while increasing the added value of those solutions among target clients. 2017 saw a rise in the intensity and international reach of activities across the three geographical zones, leading to the expansion of the following teams: the sales teams in Germany, the United Kingdom (mainly for a the sale of securitization assets) and Eastern Europe (mainly for Russian clients); the financial engineering, sales and Global Structured Credit & a Solutions (GSCS) teams, in order to cover Asian and Australian customers; the sales teams for North American and Latin American a clients. The focus on the development of solutions is paralleled by the digitalization of activities, including the increasing electronization of flows. A new digital interface has also been developed to enhance the oversight of business development and ensure better client follow-up. On the credit market , to address structural issues related to the growing disintermediation of financial markets, the GSCS teams offer clients solutions geared towards efficient asset and liability management, such as advisory and financing solutions for balance sheet reduction, arrangement of alternative financing or regulatory optimization. GSCS launched ABS/CLO trading activities in 2017. This new team complements the existing origination, structuring and syndication business, and means that Natixis is able to offer clients services right across the structured credit value chain. Business in this market segment was brisk across the three international platforms in 2017. In Europe, the Merius investment platform, which was set up in 2016, reached over €1 billion in investments at the end of 2017, underlining investor interest in this innovative solution on the Dutch residential mortgage market. On the catastrophe (cat) bonds market, Natixis successfully co-arranged and placed an innovative bond issue (including a Rule 144A placement on the US market) worth €90 million, providing the Covéa group with three-year coverage against storm risks in Europe. Growing interaction between the international teams has also led to some major deals, including the BSL (broadly syndicated loan) CLO in early 2017 for US asset manager Voya. The CLO was distributed in the Americas, Europe and Asia, and its equity tranche, placed with Taiwanese investors, was named “Best Insurance Deal of the Year, APAC” (source: SRP Asia Pacific Awards 2017) . A good example of our ability to innovate, this tranche was structured to comply with the specific regulatory constraints of Taiwanese insurers and allow them to invest in the equity tranche of this US-originated CLO. Natixis is a recognized arranger and placement agent in the US CLO market, where it was the sixth largest CLO arranger in 2017 (source: Thomson Reuters) . The bank participated in the entry of new issuers into this market, with inaugural deals such as the Nassau 2017-I Ltd CLO and the Pacific Asset Management CLO. It was also involved in a number of landmark transactions, such as the $1.5 billion Fortress Credit Opportunities IX CLO Ltd deal for a subsidiary of the Fortress Investment Group, in which Natixis acted as sole lead manager, and which was placed with US, Japanese, Danish, UK and Australian investors.

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Natixis Registration Document 2017