NATIXIS - Universal registration document and financial report 2019

OVERVIEW OF THE FISCAL YEAR Definitions and alternative performance indicators

Definitions and alternative 4.7 performance indicators

Pursuant to Article 19 of Regulation (EU) 2017/1129, the following information is included as reference: the overview of the 2018 financial year on pages 219 to 238 V of the 2018 Registration Document submitted on March 15, 2019. The information is available at the following link: https://www.natixis.com/natixis/jcms/ala_5519/en/annual- financial-reports the overview of the 2017 financial year on pages 177 to 192 of the V 2017 Registration Document submitted on March 23, 2018. The information is available at the following link: https://www.natixis.com/natixis/jcms/ala_5519/en/annual- financial-reports Following the disposal of the retail banking businesses to BPCE S.A., finalized on March 31, 2019, the presentation of the business lines is as follows: Employee Savings Plans (Natixis Interépargne) moves to the Asset V & Wealth Management business line; Film Industry Financing (Natixis Coficiné) moves to Corporate V & Investment Banking; the disposal has no impact on the Insurance business line; V Payments becomes a business line in its own right; V Financial Investments is isolated and includes Coface, Natixis V Algérie and the Private Equity run-off activities; the Corporate Center is refocused on the centralized holding V company and ALM functions of Natixis and is responsible for the contribution to the Single Resolution Fund. To ensure comparability in the presentation of the management report, 2018 figures are presented according to the new organization of the Natixis business lines. Please note that, to comply with the requirements of the French law on the separation of banking activities, the Short-Term Treasury and Collateral Management activities, which used to be part of Global Markets, were transferred to the Finance Department on April 1, 2017. However, to ensure comparability, in this management report CIB refers to CIB and the Short-Term Treasury and Collateral Management activities. In addition, the standards used to assess the performance of the divisions are those defined for the New Dimension plan: regulatory capital allocated to the business lines on the basis of V 10.5% of Basel 3 average RWA; 2% rate of return on capital. V The earnings of the Natixis business lines are presented in accordance with the Basel 3 regulatory framework. Capital allocation specific to the Insurance businesses is based on the Basel 3 accounting treatment for investments in insurance companies, as enacted in the EU via CRD4 and CRR (the “Danish compromise”).

The conventions applied to determine the earnings generated by the various business lines are as follows: the business divisions record the return on regulatory capital V allocated to them. By convention, the rate of return on regulatory capital is 2%; the return on the issued share capital of the entities comprising the V divisions is eliminated; the cost of Tier Two debt subordination is charged to the divisions V in proportion to their regulatory capital; the divisions are invoiced for an amount representing the bulk of V Natixis’ overhead. The uninvoiced portion accounts for less than 3% (excluding the Single Resolution Fund) of Natixis’ total overhead. The Single Resolution Fund (SRF) contribution is covered by the Corporate Center and is not charged back to the divisions. Deeply subordinated notes (DSNs) are classified as equity instruments; interest expense on those instruments is not recognized in the income statement. ROE and ROTE for Natixis and the business lines are calculated as follows: the profit measure used to determine Natixis’ ROE is net income V (group share) minus the post-tax interest expense on DSNs. Equity capital is average shareholders’ equity Group share as defined by IFRS, after payout of dividends, excluding average hybrid debt, and excluding unrealized or deferred gains and losses recognized in equity (OCI); the calculation of business line ROE is based on: V as the numerator, the business line’s pre-tax profit, as per the V aforementioned rules, to which a normative tax is applied. The normative tax rate is determined for each of the divisions by factoring in the tax liability conditions of Natixis’ companies in the jurisdictions where they operation. It is determined once a year and does not factor in potential changes over the year linked to deferred taxes, as the denominator, normative capital, calculated on the basis of V 10.5% of RWA assigned to the division, plus goodwill and intangible assets related to the division; Natixis’ ROTE is determined using, as the numerator, net income V (group share) minus the post-tax interest expense on DSNs. The equity used is average shareholders’ equity (group share) under IFRS, after payout of dividends, excluding average hybrid debt, average intangible assets and average goodwill.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019