NATIXIS - Universal registration document and financial report 2019

4 OVERVIEW OF THE FISCAL YEAR

Management report at December 31, 2019

At €859.2 billion, average assets under management at December 31, 2019 were up (0.4%) compared with last year at constant EUR exchange rates. The rate of return on AuM was slightly down to 29.6 points compared with December 31, 2018 at constant exchange rates. At December 31, 2019, AuM can be broken down into predominantly equity products (29.3%), followed by bond products (28.4%) and life insurance (20.2%). At December 31, 2019, net revenues climbed 7% to €3,511 million compared with December 31, 2018 (i.e. +4% at constant exchange rates), driven by: the sharp increase in the incentive fees of European asset V management companies (mainly H2O and DNCA) and US asset management companies (AEW CM); an increase in financial products, linked to the positive valuation V impact of the seed money portfolio, and the integration of WCM and Fiera; other revenue improved by provision reversals for prior litigation. V These increases were partially offset by fees on AuM which declined chiefly in the US following the drop in average AuM and in the commission rate over the period. Expenses stood at €2,251 million , including non-recurring item, up 6% compared with December 31, 2018 (+3% at constant exchange rates). Restated for the non-recurring provision reversal recognized in Q1 2018 (prior litigation), the increase in expenses is slightly lower (+5%), driven by higher internal payroll costs (increase in headcount in step with business expansion), operating costs — mostly IT costs (developing tools and running projects) — and documentation and market data costs (price rise and the MiFID impact). B – Wealth Management In 2019, Wealth Management posted net inflows of €0.5 billion mostly on the strength of the B2B Private Banking business brought by the networks, and international wealth management. Assets under management came to €30.4 billion, up 16% year-on-year, with a €1.5 billion scope effect from the acquisition of Massena. Restated for this effect, AuM increased 11% on 2018. In parallel, outstanding loans were up 2% to €2.1 billion. In 2019, the business line’s net revenues were up 3% to €149 million (+€4.7 million) compared with 2018. Restated for the Sélection 1818 and Massena Partners scope effect, the increase is 8%. This increase is mostly due to a strong level of incentive fees recorded in the last quarter of 2019 (+€6.5 million versus 2018), as well as an increase of 8% in fees on AuM over the period. Expenses stood at €157.5 million , up 5% compared with 2018. Restated for the Sélection 1818 and Massena Partners scope effect, the increase in expenses is 4% higher versus 2018.

A – Asset Management Assets under management at end-December 2019 totaled €934.1 billion, up 16% at current exchange rates (+14% at constant exchange rates) compared with December 31, 2018, propelled by a favorable market effect (+€96.0 billion), scope effect (+€32.0 billion), especially after the acquisition of WCM in the second quarter of 2019 (+€34.6 billion), and a positive exchange rate effect (+€7.5 billion), partially offset by net outflows for the year (-€10.0 billion).

Change in assets under management over the year (in billions of euros)

+16 % / +€125.5 bn

At constant exchange rates +14 % / +€118.0 bn

96 934.1

32

808.6 7.5

-10

AuM at 31/12/2018

Currency effect

Scope effect/ Other*

Net inflows

Market effect

AuM at 21/12/2019

* Main 2019 scope effects: Integration of WCM in the US (+$34.6 billion) in Q2; Disposal of NIM Distribution Canada (-$0.8 billion) in Q3; Disposal of Darius in Q4 (-€0.7 billion).

The business line posted net outflows of €10.0 business line at current exchange rates, i.e. -€10.0 billion on long-term products over the year: in the US, long-term net outflows of -€4.0 billion stemming mainly V from Harris Associates (-€10.3 billion on equity products) and Gateway Investment Advisers (-€1.8 billion on alternative products), partially offset by in the US from WCM Investment Management (+€4.8 billion on equity products) and Loomis Sales & Co (+€3.8 billion on equity products); Dynamic Solutions, outflows of -€4.1 billion mainly from equity V products (-€3.6 billion) and structured products (-€1.2 billion); in Europe, net outflows of -€2.3 billion primarily from DNCA V Finance and H2O (-€3.4 billion and -€3.0 billion respectively on diversified products), partially offset by inflows from Mirova (+€3.2 billion on equity products) and AEW Europe (+€0.7 billion on real estate products); small net inflow from Private Equity companies of €69.7 million. V Natixis IM international Distribution contributes to new long-term inflows of €3.6 billion over the year, while Natixis IM US Distribution posted net long-term outflows of -€10.1 billion.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019