NATIXIS_REGISTRATION_DOCUMENT_2017

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

In keeping with last year, several initiatives were run as part of the innovationand digital transformationprogramwith the goal of designing the business models of tomorrow and improving operational efficiency in an environment of strictly controlled operatingexpenses. The innovative solutions launched across the business lines in 2017 include: Natixis Lease's launch of MyCarLease, a pricing and a subscription application for operating leases aimed at professionalcustomers; Natixis Financement's development of an entirely digital a subscription process for personal loans in the Banque Populairenetwork; the roll-outof severalproductsand servicesat NatixisPayment a Solutions: the Paylib mobile payment solution, supplementing Apple j Pay, enabling all users to make contactless payments with their smartphone, Garmin Pay, a new contactless payment solution launched j with Caisse d’Epargne Ile-de-France in partnership with Garmin, the first sports smartwatch manufacturer to offer this service, the October 2017 launch of SmartPOS, a comprehensive j paymentand loyaltysolutionfor retailers; Natixis Interépargne’slaunch of the Amplussolutionto help its a corporate clients’ staff learn about and develop a personalized investment strategy for retirement while monitoring it in real time.

In addition, as announced at the end of 2016, all Groupe BPCE Paymentsteamsweremergedwith NatixisPaymentSolutionsin order to be more efficient and competitive. Natixis Intertitres (service vouchers), S-Money, Le Pot Commun (online fundraising), E-Cotiz (payments for non-profits), Depopass (secure peer-to-peer payments). This new structure, which serves both business development and priority areas (payment security, data management,etc.), combines a commercialfocus and technological thinking with an entrepreneurial approach. With this merger comes an external growth policy with the additionof numerousstart-upsto enhanceretailerservices: PayPlug, a systemenabling small retailers and VSBs to accept a bank card paymentsonline or via smartphonewithoutthe need for a device; Dalenys,which strengthensNatixis’ presenceon the European a paymentsolutionsmarketfor retailersand e-retailers. Lastly, in October Leasing acquired two real estate leasing companies, BatiLease and InterCoop, from Crédit Coopératif to strengthen its commercial footprint in the Hauts-de-France regionand jump-startthe leasingbusinessin Belgium. This development of the businesses went hand-in-hand with strict financialmanagement: liquidity needs remained under control in 2017 and posted an a 8%decreaseyear-on-year; the consumptionof Basel 3 RWA was down 4% year-on-year a to €110.7billion. In light of the earnings generated over the course of 2017, a dividend payment of €0.37 per share, i.e. 74% of distributable profits, will be proposed at the General Shareholders’Meeting that will take place on May 23,2018.

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Natixis Registration Document 2017