NATIXIS : Strategic Plan 2018-2020

AFTER "NEW DEAL", THE PLAN OF recovery and RENEWED CONFIDENCE AND "NEW FRONTIER" FOCUSED ON BUSINESS TRANSFORMATION AND DEVELOPMENT, NATIXIS COMMITS TO "NEW DIMENSION", A PLAN TO DELIVER SUSTAINABLE VALUE CREATION

Natixis successfully completes its "New Frontier" strategic plan with all key targets set out 4 years ago being reached or overachieved, mainly: revenues growth (+26%) 1 , balance sheet and risk management (7% RWA drop of which 19% in Corporate & Investment Banking) 1 , and profitability (RoTE 12.5% vs. 9% in 2013) 1 thanks to the asset-light model implementation. Such a success has allowed Natixis to distribute a significant part of its results via dividends and to generate one of best Total Shareholder Return in the banking sector globally, to the benefit of its shareholders. The success of "New Frontier" provides solid foundations to the launch of the "New Dimension" plan, to which Natixis commits today.

"New Dimension" gathers 3 strong initiatives, all contributing to the development of high value-added solutions dedicated to our clients: Deepen businesses' model transformation, successfully embarked on the "New Frontier" plan, a significant allocation of existing investment budget towards digital technologies and a strong drive to differentiate ourselves, becoming our clients' key representative in areas where Natixis' teams have developed strong and recognized expertise.

our ability to deliver sustainable value creation relies on 3 levers

Differentiate ourselves in the long run via selected expertise within each of our businesses to sustain their ambitions:

Asset & Wealth Management - Assert our world-leading position in active asset management, thanks to our size, profitability and innovation capabilities

Corporate & Investment Banking - Become the "go-to bank" in 4 selected sectors and be recognized as a solution-oriented innovative house

Specialized Financial Services - Become a pure player in Payments in Europe and accelerate the digital transformation

Digital projects dedicated to our clients and business efficiency, financed via the reallocation of existing IT costs

A diversified revenue mix for a greater resilience through-the-cycle: ~ 50% of Natixis' 2020 revenues to come from non-banking activities together with a balanced portfolio of businesses relying on client assets (Asset management.) vs. businesses relying on client activity (Corporate & Investment Banking)

Fast balance sheet rotation thanks to the O2D model, allowing for a smooth adaptation to regulatory changes

Strong capital generation - ~ €4bn of capital available for distribution throughout the plan with a fully-loaded CET1 ratio target of 11%

Shareholder-friendly dividend policy - Between €3bn and €4bn dividends over 2018-2020 with a minimum payout ratio of 60% every year

Laurent Mignon, Natixis Chief Executive Officer, said: "I am particularly pleased to unveil New Dimension today, Natixis' new strategic plan for the coming three years. After the success of New Frontier, Natixis now is a solid company, recognized for the quality of its expertise, and profitable. It is one of the top value-creating banks in the world, which I am very proud of. I would like to thank all our clients, who are at the heart of our commitment and also all 17,000 Natixis' employees for their work and general dynamism.
With New Dimension, we are going to anchor our success through time by deepening the transformation of our business model, investing in digital and by a strong will to differentiate ourselves via Natixis teams' widely-recognized expertise."

main 2018-2020 financial targets - Natixis

According to the rules of the Delegated Act published by the European Commission on October 10,2014, including the effect of intragroup cancelation - pending ECB authorization

main 2018-2020 financial targets - business lines

ASSet & wealth management (AWM)

ASSert our world-leading position in active asset management,
thanks to our size, profitability and innovation capabilities

Natixis ranks 15 th based on AuM globally 1 and 10 th both in terms of revenues and Operating Profit 2 . Natixis is a truly global and diversified asset manager

A portfolio of autonomous asset managers providing a diversified suite of distinctive active investment strategies. Affiliates benefiting from a centralized and global distribution platform as well as support for internal development (e.g. seed money)

Consistently delivering alpha across the affiliate range with 42% 3 of mutual funds being ranked top decile when looking at 5-year cumulative returns, far above direct peers

A very resilient and stable fee structure due to a strong track record and active strategies demonstrating to be more resilient to fee pressure than passive strategies

Opportunity to capture assets on the move from "chronic underperformers" and/or "low value added" strategies

Leverage on BPCE networks in France and capitalize on Natixis' ambitions for CIB and Insurance via increased collaboration

Digitalization, innovation, and operational efficiency at the core of Natixis' strategy (blockchain, robo-advice, CRM, etc.)

Re-branding for better visibility - Natixis Global Asset Management becomes Natixis Investment Managers

Based on ranking of publicly traded asset managers. Source: publicly available information. Based on 2016 results

Corporate & investment banking (CIB)

become the "go-to bank" in 4 selected sectors and
Be recognized as a solution-oriented innovative house

Coverage activities already repositioned - Strategic dialogue moved up to the decision-makers allowing Natixis to increase client intimacy leveraging on its Investment banking division

Step up the high value-added Solutions business - On the one hand, focus on innovation to strengthen financial engineering teams, on the other hand digitize flow products to reduce operating costs

Keep up the growth momentum of equity derivatives and continue to develop the recognized structured credit Solutions business franchise

Strengthen the O2D model to generate more fees. Expand customer base and focus on structuring/distribution

Become the "go-to" bank in 4 chosen sectors - Globally-recognized franchises in structured finance and over 20 years' experience in Energy & Natural Resources, Aviation, Infrastructure, Real Estate & Hospitality. These 4 sectors constitute a large fee pool to be tapped into for investment banks and estimated at $25bn at end 2016 1

Increase the footprint with Insurers and Financial Sponsors capitalizing on Natixis' complete range of expertise across all businesses

Global Finance & Investment Banking - Revenues in Investment banking and M&A to increase by > 7% per annum

consolidate our leading position in the french insurance landscape

Natixis Assurances now is the single platform for Groupe BPCE, second largest banking group in France. Full internalization of insurance activities with the recent acquisition by Natixis Assurances of a 40% stake in BPCE Assurances

Strong growth potential across the range of Life and Non-life products via increased financial savings and Groupe BPCE networks' strong distribution capabilities

Shared knowledge and expertise with Natixis' businesses (Asset & Wealth Management, Corporate & Investment Banking) and Groupe BPCE (infrastructure, digital)

Specialized financial services (SFS)

Become a pure player in payments in europe and
accelerate the digital transformation

€150m investments 2018-2020 for organic development, included in the €450m allocation to digital projects at the Natixis level

Strong industrial backbone with state-of-the art processing platforms and services across the value chain

Ability to cope with regulatory changes, mainly PSD2 ("Payment Services Directive 2") and Instant Payment

€100m investments 2018-2020 in Financial services and Specialized financing, included in the €450m allocation to digital projects at the Natixis level

Overhaul of the operating model to step up further efficiency gains via automation and streamlining of processes

> €150m additional revenues to be generated with Groupe BPCE networks over the next 3 years (2018-2020) vs. ~ €140m estimated over the 2014-2017 "New Frontier" plan

3 levers to capture new synergies - Further deploy the SFS offering with existing clients, broaden expertise via new products and services dedicated to Groupe BPCE networks and extend scope to target Groupe BPCE entities not yet covered by SFS

> €150m additional synergies generated with Groupe BPCE networks i.e. a ~ 40% increase compared to "New Frontier"