NATIXIS - Universal registration document and financial report 2019

1 PRESENTATION OF NATIXIS Natixis’ businesses

Corporate center 1.2.5 Coface A global expert in trade risk prevention and guarantees for corporate clients

Approval of the partial internal models approach

On July 25, 2019, Coface filed an application with the ACPR to use the partial internal models approach. On December 4, 2019, it received approval to use this approach to calculate its regulatory capital requirements under Solvency II as from December 31, 2019. Coface’s partial internal model has been discussed and extensively examined by the Group’s supervisory authority since the pre-application phase was launched in 2016. The model covers the loan underwriting module. The other modules (market risks, counterparty risk, operational risk) continue to use the inputs of the standardized approach. 2019 results The performance recorded in 2019 meant Coface achieved and surpassed the goals set in the Fit to Win strategic plan. Consolidated revenue increased 5.9% relative to 2018 (on comparable scope and exchange rates), to €1,481.1 million. The combined ratio stood at 77.7%, below the target of 83% across the cycle. The Group ended the year with net income group share of €146.7 million (compared with €122.3 million in 2018), an increase of 20%. Annualized RoATE (return on average tangible equity) stood at 8.9% (9.1% when restated for non-recurring items). The approval of the partial internal models approach by the ACPR marks a major step forward in Coface’s move to a more efficient capital model, which is the second goal of the Fit to Win plan. The Group has raised its target solvency ratio to a range of 145% to 175%. At December 31, 2019 the ratio was estimated at 190%. Coface will submit a proposal to shareholders to pay a dividend of €1 per share, representing a payout ratio of over 100% (record earnings per share of €0.97). Outlook The end of 2019 raised hopes of a trade agreement signed between the United States and China, while elections in the United Kingdom set the date of the UK’s effective withdrawal from the European Union. Leading indicators also stabilized at relatively low levels, especially in manufacturing sectors. Lending terms remain accommodative following central bank action. But persistent global imbalances and rising corporate debt mean that the risk of default remains high, especially in sectors undergoing major shifts (digitalization, environment) and countries experiencing political crises. Thus, Coface confirms its scenario of a gradual slowdown in global growth and a renewed rise in defaults around the world. Against this backdrop, Coface completed its Fit to Win plan and drafted a new strategic plan. The new plan will draw on the many successes of the Fit to Win plan and will continue the transformation undertaken in recent years. It will seek to enhance Coface’s profitable growth momentum and the robustness of its business model. The Board of Directors renewed the term of Xavier Durand as Chief Executive Officer for a period of four years. His term will expire at the Annual Shareholders’ Meeting called to approve the financial statements for 2023. Xavier Durand and the Management Board will present Coface’s new strategic plan on February 25, 2020. On February 25, 2020, Natixis announced the sale of a 29.5% stake in Coface to Arch Capital Group at a price of €10.70 per share (dividend attached). The closing of the transaction is expected to take 6 to 12 months and to free up ~35bps of CET1 ratio. Following the closing of the transaction, Natixis will no longer be represented at Coface’s Board of Directors.

70 years of experience and a dense geographic network have made Coface a benchmark in credit insurance, risk management and the global economy. The experts at Coface, which aims to become the most agile credit insurance partner in its industry, operate in the heart of the global economy. They help their 50,000 customers build successful, dynamic, and growth-oriented companies by protecting them from the risk of financial default by their clients. Coface’s services and solutions protect companies and help them make the necessary credit-related decisions to strengthen their ability to sell their products on both domestic and export markets. Appointments to the Board of Directors At its meeting on March 27, 2019, the Board of Directors of Coface S.A. co-opted Nathalie Bricker, Chief Financial Officer CFO of Natixis, as a new non-independent director. At its meeting on October 23, 2019, the Board of Directors of Coface S.A. co-opted Marie Pic-Paris, Chairman of Banque Populaire Rives de Paris, as a non-independent director, replacing Jean-Paul Dumortier who left the Board at the end of his six-year term at Banque Populaire Rives de Paris. Acquisition of SID – PKZ (Slovenia) On April 15, 2019, Coface announced the acquisition of 100% of the share capital in SID — PKZ, Slovenia’s leading credit insurer. The business is now operated under the new brand Coface PKZ. Created by SID Bank in 2005, SID — PKZ issued €14.3 million in gross premiums in 2018. The transaction had a neutral impact on the Group’s capital adequacy ratio. Badwill of €4.7 million was taken to income in the income statement on the consolidation of Coface PKZ. Coface PKZ’s contribution (excluding badwill) to the Group’s net income at December 31, 2019 was not material. Coface launches a credit insurance offering in Greece Greece has undertaken reforms that have opened the door to a promising credit insurance market. The opening of a local entity will extend Coface’s long-standing presence in the Mediterranean & Africa region, which accounted for 27% of group revenue in 2019. The impact of the new entity on the Group’s financial statements was not material in 2019. Coface S.A. added to the SBF 120 index Euronext’s Index Steering Committee decided to add Coface S.A. to the SBF 120 index as of June 26, 2019. SBF 120 is one of the flagship indices on the Bourse de Paris, listing the top 120 corporations in terms of market cap and liquidity. This decision came on the heels of the improvement in the liquidity of the Coface share and the increase in its market capitalization, recognizing the enhancement of its fundamentals since the strategic plan, Fit to Win, was implemented.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019