NATIXIS -2020 Universal Registration Document

4 OVERVIEW OF THE FISCAL YEAR

Management report at December 31, 2020

Revenues from Fixed Income, Forex, Credit, Commodities and Treasury activities stood at €1,114 millionin 2020, stable on 2019 at constant exchange rates. The following changes were observed in each segment: Fixed Income and Forex revenues were up 2.5% with Fixed V income down 9.4%, attributable to the slowdown in sales and persistently low interest rates, and Forex activities jumped 23.5% as currencies fluctuated sharply in the first four months of the year, creating a high demand for hedging from clients; revenues from Credit activitieswere down 9.1% comparedto 2019, V penalized by the slowdown in the securitizationmarket in the first half of the year, its accelerationduring the second quarter allowing to reduce the fall compared to 2019; revenues from Repo activities, now evenly split between Fixed V Income and Equity are down 21% compared to 2019, with particularly slow business in the second quarter following the implementation of a new TLTRO by the Central Bank on June which resulted in a large amount of liquidity. With revenues negative by €263 million, Equity activities endured extrememarket conditions in the first-half, with steep volatility on the equity markets and changes to dividend payout policies, which had a major impact on the exposure of the Equity Derivatives busineslsine. Revenues from joint ventures (i.e. with income shared equally between Global Markets and Investment Banking to ensure team alignment) were sound in 2020. The Strategic financing and acquisitions revenue was up by 4.7%, driven by strong demand for loans, notably through State Guaranteed Loans (EMP), from Corporate customers, which helped offset the slowdown experienced in the primary market, particularly in the United States. Revenues from syndication on the bond market were up 17.9% compared to 2019 in an extremely dynamic primary bond market throughout the year and across the client segments. At €1,300 million, Financing revenues including TTS (Trade & Treasury Solutions) as well as Film Industry Financing (Coficiné) fell 6.5% compared with 2019 at constant exchange rates.

Revenue from origination and syndication are down 28.2% compared to 2019 as a result of the steep downturn in activity across different sectors: in commodities, with the collapse of the oil price which remained lower than in 2019, in aviation in the context of the COVID-19 crisis, and the real-estate financial securitization market in the US which remained closed most of 2020. The financing portfolio were virtually stable at constant exchange rates. The decrease observed in net interest income on financing portfolio outstanding in the context of less origination was mitigated by the increased margin on the Corporate portfolio, supported by a sharp increase in liquidity line drawdowns in the second half of the year and by the grantingof new loans. ENR (Energy & Natural Resources) and Trade Finance revenues are down 13.9% at constant exchange rates due to a weaker average per-barrel oil price than last year, and the strategic refocusingof this activity aimed at reducing the number of clients. Revenues from Investment Banking , including M&A activities, were up 8.3% year-on-year at constant exchange rates for cumulative revenues of €424 million. M&A activity remained dynamic in 2020, particularly in the second half of the year, with annual revenues of €208 million, up 7.5% at constant exchange rates. In 2020 Corporate & Investment Banking ’s expenses totaled €2,099 million, down 6.1% at current exchange rates and down 5.4% compared with 2019 at constant exchange rates. Excluding Transformation & Business Efficiency costs classified as a non-recurringitem in financial communicationfor €11 millionin 2020 and €27 million in 2019, expenses were down 4.7% at constant exchange rates thanks to the decrease in variable expenses and stricter cost control. Gross operating income totaled €704 million, up 35.6% compared with 2019 at constant exchange rates. The cost/income ratio stood at 74.9% in 2020, down 7.9 points compared to 2019 (67.0%). At €819 million, provision for credit losses increased sharply compared to 2019, underpinned by the deterioration of risk on several loans in aviation and Corporate& InvestmentBanking as well as the impact of fraud and IFRS 9 provisioning. Pre-tax profit was negative €105 million compared to positive €786 million in 2019 at current exchange rates which included a capital loss on the disposal of the Brazil subsidiary (-€14,5 million) recognized in the first quarter of 2019 as a non-recurring item under gains or losses on other assets. ROE after tax was negative at -1.2% in 2020 compared to ROE of 8.4% in 2019.

236

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020