NATIXIS - Universal registration document and financial report 2019

OVERVIEW OF THE FISCAL YEAR Management report at December 31, 2019

Payments 4.2.2.4

(in millions of euros)

2018 pro forma

Change 2019/2018

2019

Net revenues

423

389

8.5% 8.5% 8.7% 0.6% 7.5%

Operating expenses

(370)

(341)

Gross operating income Provision for credit losses

52 (2) 50

48 (2) 47

Pre-tax profit

Cost/income ratio Equity (Average)

87.6%

87.6%

375

320

ROE

9.1%

9.9%

Business remained buoyant in 2019 both in the division’s historical businesses and in the Fintechs. The historical businesses were driven by: strong growth in payment solutions — transaction processing V volumes continued to rise at a steady pace (16% for card authorizations and 10% for transaction cards); the NIT business of which the value of its restaurant vouchers, in V millions of euros, increased by 6% compared with 2018. This increase is expected to continue, especially with the addition of the SNCF as a client in last quarter of 2019 for its staff restaurant vouchers. The Fintech business saw higher volumes collected by PayPlug and Dalenys, which reached new records of 83% and 21% respectively in 2019.

Payments revenues increased to €422.5 million , up 8.5% (+€33 million) year-on-year thanks to the scope effect of acquiring Comitéo, integrated since April 2018 (+€2.7 million) and Titres Cadeaux, consolidated since January 2019 (+€8.4 million). Driving this growth was the performance of the historical payments and service vouchers businesses, but also the acquired fintech businesses. Parallel to this, the issuance business (NPS and S-Money) contributed €4.9 million to revenue growth with the launch of specific and innovative payment products and services, such as Xpollens. The expenses of the Payments division totaled €370 million, up 9% compared with 2018, mostly on account of the human, IT and digital investments needed to develop the division. Overall, gross operating income rose 9% to €52 million. Pre-tax profit totaled €50 million , up 7.5%. Payments ROE totaled 9.1% in 2019, a slight year-on-year decrease.

4

Financial investments 4.2.2.5

2018 pro forma

Change 2019/2018 Current

2019

(in millions of euros)

Net revenues

772 712

742 678

4.1% 5.0% 11.9%

Coface Algeria

71

63

NPE

(10)

1

Operating expenses

(561)

(526)

6.5%

Gross operating income Provision for credit losses

211 (10) 208

215

(1.9)%

(1)

Pre-tax profit

220

(5.4)%

A – Coface 2019 revenues were up 7% to €1.5 billion compared with 2018 in all the regions thanks to record high customer retention and improved loan production particularly on mature markets. At constant exchange rates and scope, revenues were up 6% compared with 2018 (integration of Coface PKZ since April 2019).

The loss ratio net of reinsurance was 45.0% and was stable versus 2018 (45.1%), the increase in the frequency of claims in the second half of 2019 having been offset by claims in lower unit amounts, as well as by reversals on previous claims.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019