NATIXIS - Universal registration document and financial report 2019

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

These businesses are sensitive to changes in the financial markets, and more generally to economic conditions in France, Europe and the rest of the world. Adverse economic conditions in Natixis' main markets could have the following negative impacts in particular: an increased rate of defaults on loans and receivables and higher V provisions for non-performing loans due to the impact on the business and operations of Natixis’ customers. A significant increase in these provisions or the realization of losses in excess of the provisions recorded could have an adverse effect on Natixis’ results and financial position; a decline in prices on the bond, equity or commodity markets could V reduce business volumes on these markets; macro-economic policies adopted in response to actual or V anticipated adverse economic conditions could have unintended negative effects, and are likely to negatively impact market parameters such as interest rates and foreign exchange rates, which could affect the results of Natixis’ businesses that are most exposed to market risk; perceived favorable economic conditions generally or in specific V business sectors could result in asset price bubbles decorrelated from the actual value of the underlying assets; this could in turn exacerbate the negative impact of corrections when conditions become less favorable and cause losses in Natixis’ businesses; a significant economic disruption (such as the global financial crisis V of 2008 or the European sovereign debt crisis of 2011) could have a severe negative impact on all the activities of Natixis, particularly if the disruption is characterized by an absence of market liquidity that makes it difficult to finance Natixis and to sell certain categories of assets at their estimated market value or at all; an adverse change in the market prices of various asset classes V could affect the performance of Natixis Investment Managers companies, especially due to a decrease in assets on which management fees are charged; low interest rates may also negatively affect the profitability of V Natixis’ Insurance activities, as Insurance affiliates may not be able to generate enough investment returns to cover amounts paid out on some of their insurance products. Furthermore, were market interest rates to rise in the future, a portfolio featuring significant low interest rate loans and fixed income securities would be expected to decline in value. Low interest rates may also adversely affect commissions charged by Natixis Asset Management affiliates on money market and other fixed income products. This could adversely affect the profitability and financial position of Natixis. As an indication, the sensitivity of the economic value of the main entities within Natixis’ consolidated scope to a -200 bps shift calculated as per EBA guidelines represented -€12 million at December 31, 2019 (see section 3.2.7.4) . In addition, the main markets on which Natixis operates may be affected by uncertainties such as those regarding the future relationship between the UK and the EU following Brexit, global trade, the geopolitical context, and any manner of uncertainty (i.e. health risk such as coronavirus). As an indication, at December 31, 2019, net revenues generated by Great Britain-based offices totaled €914 million. These uncertainties could adversely affect Natixis’ profitability and financial position.

Natixis may be unable to meet the objectives of its strategic plan. Its financial position and the market value of its securities could be adversely affected Natixis may be unable to meet the objectives set out in its “New Dimension” strategic plan for the period from 2018 to 2020, or in any subsequent strategic plan. Unveiled on November 20, 2017, the New Dimension plan is aimed at developing high value-added solutions for clients. The strategy is threefold: deepen the transformation of Natixis’ business models; invest in digital technologies and external growth opportunities; and endeavor to become clients’ point of reference in areas where Natixis’ teams are recognized for their strong expertise. (See pages 8-9 of the universal registration document for a detailed description of the New Dimension strategic plan). The New Dimension strategic plan sets out objectives, and while Natixis believes the plan will create numerous opportunities, the company will still need to contend with the uncertainties of potentially volatile financial markets, and arising from changes to the macro-economic context. There is therefore no guarantee that Natixis will achieve the goals of this new strategic plan — any other strategy it announces or undertakes in the future. In particular, under the New Dimension strategic plan, Natixis announced certain financial targets, mainly profitability and risk-weighted asset growth rates, capital generation targets and shareholder dividend objectives, as well as targets for regulatory capital ratios and strategic initiatives and priorities. The financial objectives were established primarily for purposes of planning and allocation of resources on the basis of a number of assumptions, and do not constitute projections or forecasts of income. The actual results of Natixis are likely to vary significantly from these targets. The main financial objectives of the New Dimension strategic plan are to bolster financial strength, with a CET1 ratio set at 11.2% after payout, solid profitability (ROTE — return on tangible equity) of between 14% and 15.5%, and annual growth of 5% of net revenues and 2% of RWA. If Natixis does not meet these objectives, its financial position and the market value of its securities could be adversely affected. Legislative and regulatory measures in response to the global financial crisis may have a material impact on Natixis and on the financial and economic environment in which it operates Legislation and regulations have recently been enacted or put forward with a view to introducing a number of changes, some permanent, in the global financial system. These new measures, aimed at preventing a recurrence of a global financial recession, have changed significantly — and may continue to change — the environment in which Natixis and other financial institutions operate. Natixis is exposed to risk related to these legislative and regulatory changes. Among the measures that have been or may be adopted could potentially: Prohibit or limit some kinds of financial products or activities, V thereby partially restricting the diversity of Natixis’ sources of income. For example, the introduction a withholding tax on dividends from borrowed securities under certain circumstances could weaken the appeal of some of Natixis’ current products.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019