NATIXIS_REGISTRATION_DOCUMENT_2017

OVERVIEW OF THE FISCAL YEAR Management report at December 31, 2017

KEY EVENTS FOR THE PERIOD 4.1.2

Key events for Natixis’ business 4.1.2.1 lines Against this backdrop, Natixis successfully completed its New Frontier strategic plan, having achieved or surpassed the key objectives set out four years ago. These were focused on growingrevenues,managingits balancesheet and risks, and the improving the rate of return on equity through the implementationof its asset-lightmodel. The plan’s success provided a solid foundationfor the launch of the New Dimension plan, which Natixis is now undertaking. NewDimension sets out three powerful initiatives aimed at developingsolutions offering high added value to our clients: to deepen the transformation of our business models that we successfully began under the New Frontier plan, to allocate a significantportion of our investmentsto digital technologiesand to differentiate ourselves by becoming a leading player in the areas where Natixis’ teams are recognized for their exceptional skills. In 2017, Natixis consolidated its positions and continued to develop its main business lines, which cater to both the BPCE networksand its own clientele. In Asset & Wealth Management , the Asset Management businessunderwentmajor changes. In 2017, Natixis Global Asset Management(NGAM) changed its name to become Natixis Investment Managers . This reflects the multi-affiliatemodel of the Asset Managementbusinessline, which offers investment solutions from a diversified range of asset managers, combined with advisory and support services that are essential for building high-performance portfolios, irrespectiveof the market. In conjunctionwith its name change, Natixis Investment Managers launched a new brand platform centeredon ActiveThinking SM . In addition, Asset Managementpursued the developmentof its multi-boutique model. Highlights of Natixis IM's development included: at the end of March, Natixis IM sold its 25% stake in the IDFC a entities(India). in late September, Mirova (a company in which Natixis IM a indirectly holds a 100% stake) acquired a 51% equity interest in Althelia, a London-based asset-management firm specializing in impact investing (investments with a strong social and environmental impact). The aim is to create a European natural capital investment platform managed by teamsbased in Londonand Paris. in October, a 51.9% equity interest was acquired in Investors a MutualLimited(IML), an Australianvalue-focusedequitiesfund manager.This significantpurchase(over €6 billion in AuM) is in line with the business’s strategic development ambitions in Asia-Pacific. NatixisIM earnedthe followingdistinctions: AGEFI/GlobalInvest Forum Awards: Vincent Chailley, Head of a Investments at H2O Asset Management, a subsidiary of Natixis Investment Managers, won the award for “Best Managerin 2017”; Australian Fund Managers Foundation: The three Investors a Mutual Limited (IML) small cap funds (IML Small Cap Fund, IML Smaller Companies Fund and IML Future Leaders Fund) won the GoldenCalf at these awards;

Context 4.1.2.1 In 2017, Natixis operated in an environment marked by the ongoing normalizationof the global economy and a rebound in internationaltrade demonstratingthe improvementin economic conditions. The global economyended 2017 on solid ground: annual growth was at a one-year high of 3.9% in the third quarter, marking the fifth consecutive quarter of acceleration. Contributing to the global upturn were the emerging economies,whose currencies stabilized to trigger sharp disinflation, allowing some central banks (Brazil, Russia, India and Indonesia) to ease monetary conditions.Global trade also recovered.Inflation remainedunder control,going no higherthan 2.9%globally. Against this backdrop, the French economy has grown at a quarterly pace of +0.5% since the end of 2016, mostly on the back of private consumption.Inflation continued its steady rise following the rally in oil prices. Averaged over the year, inflation (CPI) should reach 1% in 2017, up +0.2% from 2016 but still moderateand with little impact on purchasingpower. Thanks to persistently favorable lending conditions (low interest rates, tax reduction under the Pinel scheme, interest-free loans), and despite the slight rise in interest rates, home loan demand from French householdspicked up significantlyin the first half of the year before slowing down in the third quarter on account of fewer renegotiations. In contrast, corporate demand for loans continued to heat up. Lastly, the new government’sfinance bill reaffirms France’s determination to uphold its European commitments to consolidate public finances. The government aims to simultaneouslyreduce public spending and the tax and social contributions rate, thereby lowering the public deficit by two GDP points and debt by five GDP points.As a result of these strategies for the French economy, the 10-year OAT ended the year at only 20 bp above the German benchmark—itsnarrowest spreadsince 2010, but still wider than pre-financialcrisis levels. Share prices continued to soar to new highs, propelled by the improved global economic environment and continued support from flexible monetary conditions. US equity prices (S&P 500) rose to 24 times earnings at the end of 2017, their highest in 15 years. It is importantto note, however,that this inflationof asset prices is partly sustainedby moneycreatedby centralbanks. The global monetary base again increased by almost 9% a year, surpassing global GDP by value. While the Federal Reserve began to gradually shrink its balance sheet in October by no longer reinvesting all the assets purchased under quantitative easing as they mature, the ECB started tapering its net bond purchases (from €60 billion to €30 billion per month) as of January 2018.As for US interest rates, 10-year Treasury yields ended 2017 where they started, at 2.4%. As the Fed hiked its key interestrates three times over the year, this flattenedthe US curve considerably.The 10-year/2-yearUS Treasury spread was just 57 bp at end-2017versus133 bp year-on-year.

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Natixis Registration Document 2017