NATIXIS - 2018 Registration document and annual financial report

5 FINANCIAL DATA

Consolidated financial statements and notes

Financial assets that don’t have a low credit risk

31/12/2018

Carrying amount (a)

Fair value

(in millions of euros)

SPPI financial assets

1,475

1,489

TOTAL

1,475

1,489

Before value adjustment for impairment. (a)

SEGMENT REPORTING

NOTE 10

In November 2017, Natixis presented its new 2018-2020 strategic plan, “New Dimension”. New Dimension sets out three strong initiatives aimed at developing solutions offering high added value to our clients: to deepen the transformation of our business model, which we achieved under the New Frontier plan, to allocate a significant portion of our investments to digital technologies, reflecting our clear resolve to differentiate ourselves to become a benchmark in the areas where Natixis’ teams boast strong and recognized skills. The entity has since been organized around four core businesses: Asset & Wealth Management, which includes asset a management within Natixis Investment Managers and wealth management; Corporate & Investment Banking, which advises businesses, a institutional investors, insurance companies, banks and public sector entities and offers them a diversified line of financing solutions as well as access to the Capital Markets. Its duties are threefold: to strengthen the bank’s customer orientation, to serve as a meeting place between issuers and investors and to roll out the “Originate to Distribute” model to optimize the rotation of the bank’s balance sheet via active management of the loan book; Insurance, which is BPCE Group’s single platform for the a distribution of personal insurance and non-life insurance products; Specialized Financial Services, which combines Payments and a Specialized Financing with Factoring, Leasing, Consumer Finance, Sureties & Financial Guarantees, and Film Industry Financing; and Financial Services with Employee Savings and Securities. These business lines are the key growth drivers for the retail banking business of Groupe BPCE. Coface, Private Equity (proprietary activity retained until it is put into run-off, and portion of sponsored funds) and Natixis Algeria are considered non-strategic and are now grouped within the Corporate Center. Based on this new organization, Management monitors divisional performance, draws up business plans and manages the business from an operational perspective. In accordance with IFRS 8 “Operating Segments”, this is the segmentation used by Natixis to define its operating segments.

distribution units) coordinated by a holding company that ensures the organization’s consistency by overseeing its strategic direction. These companies are thus able to focus on their core business and on achieving robust performance while retaining the option of developing their own institutional clientele and drawing on the business line’s other support functions, based on appropriate economic models. A number of these asset managers have forged a strong reputation, such as Loomis Sayles, Harris Associates, AEW, H2O, DNCA and Ostrum Asset Management. Together, these specialized asset management companies enable the Group to provide a full range of expertise meeting demand from all customer segments. Coverage of the various customer segments is optimized by the organization of distribution around a shared platform and the business franchises developed over the long term by the asset management companies. Since the start of 2014, Private Equity companies for third party clients have been transferred to Natixis Investment Managers and a sponsoring vehicle was set up to monitor Natixis’ commitments in the funds. The teams have extensive expertise in equity financing for generally unlisted, small and medium-sized enterprises in France and Europe via sponsored equity holdings. This business line covers the Private Equity segments for third party investors, such as Private Equity deals (top-line funding for mature companies), venture capital (new, innovative companies) and funds of funds. Wealth Management: this business line covers wealth a management activities in France and Luxembourg and asset management. Natixis Wealth Management holds a key place on the French market. The bank mainly develops its customer base from the clientele of the Caisses d’Epargne and Banque Populaire banks, and to a lesser extent from that of Natixis. Private Banking offers advisory services, financial planning and expertise, and fund management solutions. Corporate & Investment Banking 10.2 Corporate & Investment Banking advises businesses, institutional investors, insurance companies, banks and public sector entities and offers them a diversified line of customized financing solutions as well as access to the Capital Markets. Building on the technical expertise of its teams, Natixis designs tailored solutions for its customers incorporating the most recent market developments. In 2016, its organizational structure was adapted to better support its customers, by strengthening strategic dialog, and to accelerate the implementation of the “Originate to Distribute” model. This led to the creation of a new Investment Banking business line, whose mission is to develop strategic dialog with customers and incorporates the Acquisition & Strategic Finance, Capital & Rating Advisory, Equity Capital Markets and Strategic

Asset & Wealth Management 10.1

Asset Management: asset management activities are a combined within Natixis Investment Managers. They cover all asset categories and are carried out mainly in the US and France. These activities are performed by autonomous entities (specialized asset management companies and specialized

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Natixis Registration Document 2018