NATIXIS_SHARHOLDERS_MEETING_2018

MANAGEMENT REPORT AT DECEMBER 31, 2017

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 moderate and with little impact on purchasing power. 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 households picked up significantly in 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’s finance bill reaffirms France’s determination to uphold its European commitments to consolidate public finances. The government aims to simultaneously reduce 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—its narrowest spread since 2010, but still wider than pre-financial crisis 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 important to note, however, that this inflation of asset prices is partly sustained by money created by central banks. 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 interest rates three times over the year, this flattened the US curve considerably. The 10-year/2-year US Treasury spread was just 57 bp at end-2017 versus 133 bp year-on-year. KEY EVENTS FOR NATIXIS’ BUSINESS 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 growing revenues, managing its balance sheet and risks, and the improving the rate of return on equity through the implementation of its asset-light model. The plan’s success provided a solid foundation for the launch of the New Dimension plan, which Natixis is now undertaking. New Dimension sets out three powerful initiatives aimed at developing solutions 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 significant portion of our investments to digital technologies and 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 networks and its own clientele. In Asset & Wealth Management, the Asset Management business underwent major changes.

In 2017, Natixis Global Asset Management (NGAM) changed its name to become Natixis Investment managers. This reflects the multi-affiliate model of the Asset Management business line, 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, irrespective of the market. In conjunction with its name change, Natixis Investment managers launched a new brand platform centered on Active ThinkingSM. In addition, Asset Management pursued the development of 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 entities (India); › in late September, Mirova (a company in which Natixis IM 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 teams based in London and Paris; › in October, a 51.9% equity interest was acquired in Investors Mutual Limited (IML), an Australian value-focused equities fund manager. This significant purchase (over €6 billion in AuM) is in line with the business’s › AGEFI/Global Invest Forum Awards: Vincent Chailley, Head of Investments at H2O Asset Management, a subsidiary of Natixis Investment managers, won the award for “Best Manager in 2017”; › Australian Fund Managers Foundation: The three Investors Mutual Limited (IML) small cap funds (IML Small Cap Fund, IML Smaller Companies Fund and IML Future Leaders Fund) won the Golden Calf at these awards; › Gestion de Fortune - Service Provider Awards (Palmarès des fournisseurs 2018) (January 2018): H20 won the special “Company of the Year” (all categories) award. H2O also won the award for “Best Asset Management Company” in the “AuM over €5 billion” category, while DNCA came second in the same category; › at the Citywire France Awards 2017, H2O and Dorval were recognized as follows: ◆ H2O Asset Management − Best Asset Management Firm, Global Flexible Bonds category, ◆ Bruno Crastes, H2O Asset Management − Best Fund Manager, Global Flexible Bonds category, ◆ Louis Bert and Stéphane Furet, Dorval Asset Management - Best Fund Manager, French Equities category; › Citywire Italia: Bruno Crastes, CEO of H2O, was named “Best Asset Manager” in the Global Flexible Bonds category; › Natixis Asset Management won the “Innovative Provider of the Year” award for its AEW Real Return Fund at the inaugural ceremony of the Insurance Asset Management Awards; › Gestion de Fortune − The 2017 Globes de la Gestion awards: ◆ Natixis Actions US Growth managed by Loomis took first prize in the “US Equities” category, ◆ DNCA Miuri managed by DNCA took first prize in the “Absolute Performance” category. In 2017, Private Banking, now called Natixis Wealth Management, enjoyed solid sales momentum in its individual, business owner and senior executive customer segments, bringing its assets under management up to €31.6 billion at the end of 2017 (including VEGA IM, in which Natixis Investment Management owns a 60% interest). strategic development ambitions in Asia-Pacific. Natixis IM earned the following distinctions:

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NATIXIS 2018 MEETING NOTICE