NATIXIS_REGISTRATION_DOCUMENT_2017

RISKS AND CAPITAL ADEQUACY Other risks

12.31.2017

12.31.2016

Net balance sheet value of the provision % breakdown

Net balance sheet value of the provision % breakdown

Fair value

Fair value

(in millions of euros)

Equity Bonds

137

7.2%

164

130

7.7%

155

1,338

69.8% 1,476

1,244

73.5% 1,387

Diversified

131 124 169

6.8% 6.5% 8.8% 0.7% 0.2%

137 124 174

111 119

6.6% 7.0% 4.2% 1.0% 0.1%

115 119

Cash

Real estate

63 18

99 22

3

FCPR Other

14

19

3

2

1

1

TOTAL

1,915

100% 2,096

1,686

100% 1,899

guiding Natixis’ activities at least once a year. The Board of Directors also approves strategic investment projects and any transactions,particularlyacquisitionsand disposals,that are likely to significantlyaffect Natixis’ results, the structureof its balance sheet or its risk profile. SeniorManagementis in charge of definingand steeringNatixis’ strategy, with assistance from the Senior Management Committee. The membership of these various bodies is presented in Chapter 2of the 2017 Natixis registrationdocument.The Internal Rules of the Board of Directors, including the procedure for calling meetings, can be found in Chapter 2, paragraph 2.3.1,of the registrationdocument.

Reinsurance risk CEGC hedges its liability portfolioby implementinga reinsurance programtailoredto its activities. In loan guarantees, reinsurance is used as a way to manage regulatory capital by protecting guarantee beneficiaries in the event of an economic scenario giving rise to a loss of up to 2% of outstandingguaranteedloans. In the Corporate segments, the program is used to protect CEGC’s capital by covering high-severity risks. It has been calibrated to protect against three individual loss events (loss related to a counterparty or a group of counterparties) which could have a significant impact on the Corporate segment’s incomestatement. Any modificationof the reinsuranceprogram (reinsurers,pricing, structure) is subject to the validationof the Capital and Solvency ManagementCommitteechairedby a corporateofficer. Reinsurer default risk is governed by counterpartyconcentration and rating limits. CEGC's reinsuranceprogramsare underwritten by a broad panel of international reinsurers with a minimum rating of A on the S&P scale.

CLIMATE RISK 3.12.3

Pursuant to Article 173 of the energy transition act, as of the 2016 fiscal year Natixis is requiredto report on the risks linked to climatechangeand on its low-carbonstrategy. The identificationand managementof risks linked to social and climate change are presented in Chapter 6 of 2017 Natixis registrationdocument.

STRATEGY RISK 3.12.2

Strategyrisks is definedas: the risk inherentto the strategychosen; a or resultingfromNatixis’inabilityto implementits strategy. a Strategyrisks are monitoredby the Boardof Directors,supported by its Strategic Committee, which examines the strategies

ENVIRONMENTAL AND SOCIAL 3.12.4 RISKS

The identificationand managementof these risks are presented in Chapter 6of 2017Natixisregistrationdocument.

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Natixis Registration Document 2017