NATIXIS INVESTOR DAY London November 14, 2013

Transcription

1 NATIXIS INVESTOR DAY London November 14, 2013

2 AGENDA 9:00 10:00 a.m. Laurent Mignon Jean Cheval Introduction & Strategic plan presentation 10:15 10:35 a.m. Pierre Servant Investment Solutions Strategic Vision 10:35 10:55 a.m. Gils Berrous Specialized Financial Services Strategic Vision 10:55 a.m. 11:15 p.m. Olivier Perquel Marc Vincent Wholesale Banking Strategic Vision 11:15 12:15 p.m. Laurent Mignon Conclusion and Q&A session NATIXIS INVESTOR DAY London November 14, :15 12:50 p.m. François Pérol Morning closing: Natixis within Groupe BPCE Presentation and Q&A session 1:50 2:35 p.m. Gils Berrous Pierre Servant Frédéric Chenot Catherine Halberstadt Alain Denizot Round table discussion Natixis and Groupe BPCE networks 2:35 3:20 p.m. Pierre Servant John Hailer Pascal Voisin Round table discussion NGAM multi-boutique structure 3:20 4:05 p.m. Olivier Perquel Pierre Debray Christophe Lanne Luc François Round table discussion Originate to Distribute 4:05 4:15 p.m. Laurent Mignon Conclusion

3 François Pérol Chairman of the Management Board, Groupe BPCE Chairman of the Board of Directors, Natixis Laurent Mignon Chief Executive Officer, Natixis Pierre Debray Head of Structured & Asset Finance Wholesale Banking Division, Natixis Alain Denizot Chairman of the Management Board of Caisse d Epargne Nord France Europe Olivier Perquel Christophe Lanne Head of Global Portfolio Management & Transaction Banking Wholesale Banking Division, Natixis Head of Financing & Global Markets Wholesale Banking Division, Natixis * Natixis Global Asset Management / ** Natixis Asset Management NATIXIS INVESTOR DAY London November 14, 2013 Gils Berrous Head of Specialized Financial Services Division, Natixis Luc François Head of Global Markets Wholesale Banking Division, Natixis Pierre Servant Head of Investment Solutions Division, Natixis Frédéric Chenot Chief Executive Officer of Natixis Financement, Specialized Financial Services Division John Hailer President and CEO of NGAM* The Americas & Asia Natixis Marc Vincent Head of Coverage & Advisory Wholesale Banking Division, Natixis Jean Cheval Head of Finance and Risks, Natixis Catherine Halberstadt Chief Executive Officer of Banque Populaire du Massif Central Pascal Voisin Chief Executive Officer of NAM**, Natixis

4 Disclaimer This media release may contain objectives and comments relating to the objectives and strategy of Natixis. Any such objectives inherently depend on assumptions, project considerations, objectives and expectations linked to future and uncertain events, transactions, products and services as well as suppositions regarding future performances and synergies. No assurance can be given that such objectives will be realized and the figures herein cannot be considered as guidances. They are subject to inherent risks and uncertainties and are based on assumptions relating to Natixis, its subsidiaries and associates, and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in Natixis' principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those implied by such objectives. Information in this media release relating to parties other than Natixis or taken from external sources has not been subject to independent verification, and Natixis makes no warranty as to the accuracy, fairness or completeness of the information or opinions herein. Neither Natixis nor its representatives shall be liable for any errors or omissions or for any harm resulting from the use of this media release, its contents or any document or information referred to herein. Figures in this presentation are unaudited. Targets are based on current regulatory and accounting environment. NATIXIS INVESTOR DAY London November 14,

5 Introduction & Strategic plan presentation Laurent Mignon Jean Cheval

6 Contents Successful delivery Strategic plan 3 Financial targets NATIXIS INVESTOR DAY London November 14,

7 The rationale Natixis is the corporate, investment management and financial services arm of Groupe BPCE, developing the strategic group business lines that require either critical mass, specific expertise or international scope Our aim is to be: a premier asset gatherer with global aspirations and a robust balance sheet a fully client-centric bank, solution oriented with a very disciplined risk policy, and strict liquidity and capital management Our mission Strategic fit with Groupe BPCE Natixis serves large corporates and institutional clients that require tailor-made banking and investment solutions Natixis provides Groupe BPCE s regional banks with a full range of products and services designed to the highest market standards Part of Natixis growth potential, especially in SFS and Investment Solutions, is directly linked to Groupe BPCE s ambitions Natixis benefits from Groupe BPCE s funding capacity and capital strength NATIXIS INVESTOR DAY London November 14,

8 Natixis: core to Groupe BPCE, the 2 nd largest banking group in France 2012 net revenues (1) 22.5bn 2012 net income (1) 2.8bn Basel 3 CET1 (2) as of end-sept % Ratings (3) S&P: A Moody s: A2 Fitch: A Guaranty on workout portfolio GAPC risk profile reduction P3CI transaction Improvement in solvency Service provider for the networks (Investment Solutions, SFS) Synergies of revenues: 817m generated as of end-september 2013 Single treasury platform with the two signatures 20% of 2012 Natixis net revenues generated with the BPCE networks Natixis core businesses contribute for 32% to Groupe BPCE pre-tax profit in 2012 (1) Excluding non-operating items (2) Estimate CRR/CRD4, as applied by Groupe BPCE; without transitional measures, after restating for DTAs (3) Long term rating As of October 2013 NATIXIS INVESTOR DAY London November 14,

9 Successful delivery of New Deal plan Profitable refocusing on 3 core businesses 17 successive quarters with positive net income; ~ 6bn cumulative net income since 3Q09 From 51bn notional value as of end-08 to 10bn in GAPC as of end-september % and 50% reduction in RWA and liquidity needs since end-08 CET1 ratio (1) Net revenues (2) in bn 6.5% End-08 Basel 2 ~10% End-13 Basel Dynamic balance sheet management (3) in bn RWA Liquidity needs End 2008 End-Sept Natixis transformation achieved in accordance with New Deal plan (1) End-08 ratio: including new CCI prudential treatment as RWA End-13 estimated ratio: Final Basel 3 impact will depend on final rules Fully loaded except for DTAs - Net of BPCE guarantee (2) Annual net revenues excl. FV adjustment on own debt and GAPC (3) RWA: excluding CCI prudential treatment as RWA, excluding P3CI, CRD3 and 4 - Liquidity needs: LT and ST funding for Wholesale Banking and GAPC NATIXIS INVESTOR DAY London November 14,

10 Financial structure simplified and value creation for shareholders August 6, 2013: Sale of the CCIs 19 Banques Populaires 50% 50% 17 Caisses d Epargne 20% CCI Central institution 20% CCI Sale to Banques Populaires and Caisses d Epargne of the CCIs held by Natixis for ~ 12bn Limited impact on 2012 pro forma net income and improvement in solvency ~ 2bn exceptional distribution to shareholders August 19, % Natixis share price growth vs. STOXX 600 / banks, 01MAR09-08NOV13, in % Natixis 411% STOXX 600 / banks 97% NATIXIS INVESTOR DAY London November 14,

11 Natixis is on track for growth and value creation Shareholders friendly dividend policy with a 50% payout ratio target Groupe BPCE Strong base for growth in our core businesses Wholesale Banking Investment Solutions Specialized Financial Services Solid financial structure Enabling Natixis to catch opportunities Financial Investments Client-oriented business model to provide solutions and services for Natixis and BPCE networks customers Coface successful restructuring a pure player in credit-insurance NATIXIS INVESTOR DAY London November 14,

12 Contents Successful delivery Strategic plan 3 Financial targets NATIXIS INVESTOR DAY London November 14,

13 Our ambitions for our 3 core businesses Return on capital allocated Relative weight to 2017 core businesses pre-tax profit - Target 16% 14% 12% 10% >16% SFS >15% Investment Solutions ~12% Wholesale Banking X% Return on capital allocated 2017 target 8% Capital allocated in bn Differentiated approaches for our core businesses NATIXIS INVESTOR DAY London November 14,

14 to reach a ~ % ROTE in 2017 Natixis Return On Tangible Equity ~ % ~ 9% Capital management Cost efficiency and model adaptation Business development 9M13 (1) 2017 target (1) Pro forma of the sale of the CCIs Excluding FV adjustment on own debt NATIXIS INVESTOR DAY London November 14,

15 Rebalance the capital allocation in favor of Investment Solutions Capital management Disposal of non-strategic assets which have negative impact on profitability 11% 9% 6% GAPC closing by mid-2014 Coface full-disposal during the strategic plan 2013 capital allocation basis (1) 13% 2017 target includes acquisitions hypothesis in Asset Management business (Investment Solutions) 13% Capital allocation oriented to profitable and liquidity light businesses 2017 capital allocation target (1) 25% 49% 29% 58% 37% 50% Core businesses Wholesale Banking Investment Solutions SFS Financial Investments GAPC Dividend policy: payout ratio 50% (1) Including goodwill and intangible assets NATIXIS INVESTOR DAY London November 14,

16 with a priority to Asset Management and Insurance Capital management Excess capital allocated to Asset Management Acquire new asset management entities to expand the range of expertise Participate in consolidation opportunity in Europe Creation of J.V. in emerging countries Insurance Grow the insurance platform dedicated to retail networks with BPCE Assurances projected acquisition and new business with Caisses d Epargne starting January 1 st, % 2013 capital allocation basis 13% 7% 58% Target: excess capital allocation for ~ 1.5bn acquisitions Core businesses capital allocation (1) Wholesale Banking SFS AM Insurance & others 29% 2017 capital allocation target 13% 8% 50% A more integrated bancassureur and a targeted acquisition policy in AM (1) Including goodwill and intangible assets NATIXIS INVESTOR DAY London November 14,

17 Strong focus on cost management Cost efficiency 9M13 CIR 69.6% NATIXIS (1) Wholesale 56.9% Banking Investment 74.5% Solutions Specialized 64.8% Financial Services Operational Efficiency Program on track in m completion M13 completion 2017 CIR targets >100 >300 66% completion of the program as of Sept 30, Target 2014 Target End-2014 cumulative Target ~65% NATIXIS (1) 9M13 Wholesale Banking fixed-expenses decreased by 4% vs. 9M12 Wholesale ~ 55% Banking Investment < 70% Solutions Cost reduction Resizing and streamlining some activities Operational excellence reinforcement (Support functions, Back offices) ~ 700 targeted jobs reduction ~ 100m restructuring costs accounted in 4Q13 100m additional reduction in expenses by 2015 <64% Specialized Financial Services (1) Excluding GAPC and FVA on own senior debt NATIXIS INVESTOR DAY London November 14,

18 Wholesale Banking: development with strict capital and liquidity management Model adaptation Doing business with scarce-resources consumption under control O2D: a fully integrated chain Strict control of RWA in capital intensive business Re-deploy partly RWA towards Structured financing and Fixed income Develop business lines with low RWA consumption (GSCS, Derivatives, Advisory) Limited increase in liquidity consumption during the strategic plan Enhance Structured financing underwriting capacity Bigger day one underwriting allowed by a more integrated organization Exclusive partnerships with long-term investors Net revenues growth driven by increasing fee businesses Increase in RoRWA stable RWA target 35% of net arrangement fees in 2017 financing revenues NATIXIS INVESTOR DAY London November 14,

19 Reshaping the organization of Investment Solutions in Europe, further optimization on SFS processes Model adaptation Investment Solutions Specialized Financial Services targets Develop a new AM model in Europe Move to a multi-affiliates organization Become a real European player by capitalizing on our existing institutional coverage and with focused initiatives in retail Create a unified insurance platform for BPCE networks Integrate BPCE Assurances In source over time Caisses d Epargne insurance business 22bn cumulated net inflows in European asset management business Net revenues increase by + 10% in insurance business per year Improve IT process with BPCE retail networks Payments 7 billion operations managed in 2012 Project to create a single IT platform for Groupe BPCE Refinancing diversification Factoring: 1.1bn securitization of commercial receivables (3 years maturity) Project for Groupe BPCE consumer credit securitization Improvement in CIR with a 2017 target < 64% Net revenues development with liquidity needs and RWA slight increase NATIXIS INVESTOR DAY London November 14,

20 Additional growth with Groupe BPCE retail networks Business development 400m cumulative additional revenues generated with Groupe BPCE retail networks from end-09 to end-13 Additional target of 400m from 2013 to 2017 Specialized Financial Services Investment Solutions Wholesale Banking Additional possibility to deploy SFS offer with Groupe BPCE retail clients Groupe BPCE market share is still low for those services Adapt offering and services Build the insurance platform for the group Further deployment of Private banking offering Provide customized solutions for retail networks corporate clients Cumulative additional revenues End 2009 > 400m End-Sept m End 2017 Cumulative target for 2017: ~ 800m NATIXIS INVESTOR DAY London November 14,

21 A solid international basis Business development Wholesale Banking Asset Management Solid international set-up (Capital market debt platform, Structured financing range of expertise) Strong client franchise in South EMEA Nearly 40% of FTE deployed in international areas #13 asset manager worldwide with 619bn AuM as of end-sept 2013 Nearly half of total AuM managed outside Europe A global centralized distribution platform with 650 FTE Geographical net revenues breakdown 7% 47% 19% 53% France EMEA Americas Asia-Pacific 31% Europe US 21% 69% (1) (2) (1) Geographical booking based on 2013 forecasts (2) Excluding Asia, holding and inter-area operation Based on 9M13 figures NATIXIS INVESTOR DAY London November 14,

22 with targeted developments Business development Wholesale Banking Natixis core businesses geographical net revenues breakdown Selective strengthening of our international platform America: renewed effort for Equity derivatives, opportunistic development for FIC-T (LatAm, Canada ) EMEA: focus on Capital markets and Structured financing Asia: strengthen Trade finance and develop O2D Target: around 50% of FTE in international areas in 2017 (vs. nearly 40% in 2013) 2014 (1) 44% 56% France International Investment Solutions Pursue the development of our US platform ($150bn) via investments in new expertise and access to new distribution channels Reinforcement of our distribution in Asia, Middle East and LatAm organically and through local partnerships FTE targeted in Investment Solutions, mainly overseas 2017 target 49% 51% France International (1) Estimated NATIXIS INVESTOR DAY London November 14,

23 Contents Successful delivery Strategic plan 3 Financial targets NATIXIS INVESTOR DAY London November 14,

24 The economic environment: a three speed recovery where Europe is still lagging Stabilization of financial markets Deleveraging to continue in the developed world Rebalancing of emerging-market growth The spectrum of euro break-up is behind us US external funding declines Household debt reduction cycle: Europe vs. USA Public debt stabilization at a high level Higher production costs Stronger domestic demand End of the commodity super-cycle Euro zone USA Emerging Countries 7.0% 4.5% 4.0% Growth CAGR > 1.0% Sluggish potential growth (demography) Problem of monetary policy transmission to peripheral countries 2.5% Average cyclically well ahead of Europe Effects of low energy prices (Oil and Gas supply shock) China Emerging Asia excl. China Growth to slow markedly, but remain at a sustained pace and also more volatile Middle East - North Africa Inflation 2% - under control Accommodative monetary policy, very low ST rates 2% - under control Monetary policy to gradually and prudently turn restrictive (as from 2014) Large volatility of financial markets and exchange rates NATIXIS INVESTOR DAY London November 14,

25 but it will not hinder our own development Our development will focus on clients/business lines which will register significant growth in the future Wholesale Banking Investment Solutions FIC-T Bond originations - Expected refinancing in Europe => 3.2 trillion (Source: S&P Capital IQ) - Growing role of capital markets funding for corporates in Europe - Development of a Euro High Yield market Securitization - A new take-off in Europe => Pursuit of European banks deleveraging Structured financing Infrastructure finance - Strong growth forecasted - Infrastructure bonds Commodities - World trade will continue to develop at 1.5/2x the world GDP growth Acquisition & strategic finance - A new wave of consolidation will take place in Europe Asset management / Insurance / Private banking Growing needs of retirement scheme Strategic target development for Groupe BPCE, a huge savings gatherer ( 573bn) Become a true bancassureur (Groupe BPCE) Asset management industry anticipated CAGR : +5% USA +5% Europe +13% Asia (excl. Japan) Specialized Financial Services Potential market share gains to reach the networks current ones: Factoring Consumer finance NATIXIS INVESTOR DAY London November 14,

26 The banking and financial environment for European banks will continue to be challenging 4 key constraints The regulatory environment Our beliefs for the European industry No sign of abating Additional demands to be expected Multiple layers of regulatory requirements Our action plan On track to fulfill all the ratios French banking law: no dedicated subsidiary for proprietary trading activities The necessary deleveraging In spite of some efforts, still too high a reliance on leverage Euro zone banking system: 270% of GDP / US: 72% (1) Leverage ratio > 3% as early of end-june 2013 (2) The forthcoming AQR /stress test Scope still to be precisely defined We have quasi exited sectors/products said to be targeted by the review: legacy assets (GAPC), shipping USD liquidity access The lesson of 2011/2012: a necessary reduction of European banks reliance on the US MMF Limited additional USD funding requirement by 2017 < $5bn Policy of USD diversification sources (EETCs, MuniGIC, PP) in addition of BPCE MLT funding (1) ECB (2) Based on Natixis understanding of CRR-CRD4 rules / excluding DTAs NATIXIS INVESTOR DAY London November 14,

27 but we are on track to fill all the regulatory ratios, well ahead of the planned agenda Now CET 1 9.9% (1) 2017 Targets % fully loaded Total capital 12.7% (2) ~ 14-15% Liquidity Coverage Ratio > 100% by January 2014 Leverage ratio > 3% (3) > 3% Optimal use of scarce-resources (1) Final Basel 3 impact will depend on final rules Fully loaded except for DTAs - Net of BPCE guarantee (2) Excluding DTAs (3) Based on Natixis understanding of CRR-CRD4 rules / excluding DTAs NATIXIS INVESTOR DAY London November 14,

28 2017 Natixis financial ambitions 2017 Targets Natixis totally refocused on its 3 core businesses 2017 targets based on organic growth Stable revenues generation Net revenues > 8bn Cost management: a 5pp gain CIR ~ 65% Normalized cost of risk Cost of risk ~ 30-35bp through the cycle ROTE significant improvement Capital allocation rebalanced For Wholesale Banking RoE > CoE ROTE ~ % Dividend policy: payout ratio 50% NATIXIS INVESTOR DAY London November 14,

29 Wholesale Banking: business model transformation to improve profitability CoE 2017 ROE 2013 ROE Net revenues CAGR 2017 Targets ~ 5% Allocated Capital CIR ~ 55% A four-pronged approach Enhance O2D model Improve share of wallet Operational efficiency / streamlining of some businesses Selective growth of the international platforms ROE ~ 12% RWA Stable vs NATIXIS INVESTOR DAY London November 14,

30 Investment Solutions: increase the relative weight of the business RoE 2017 Targets based on organic growth CoE Net revenues CAGR ~ 7-8% Allocated Capital (1) AM Net New Flows + 75bn Become a more important AM player in the European market Pursue the development of our US platform Expand profitability of our distribution organization in new markets (Asia, LatAm, Middle East) Create the insurance platform for Groupe BPCE to become a fully fledged bancassureur CIR < 70% ROE > 15% (1) Including potential external growth NATIXIS INVESTOR DAY London November 14,

31 Specialized Financial Services: additional synergies with Groupe BPCE retail networks RoE CoE Adjusted net revenues CAGR 2017 Targets ~ 3-4% Allocated Capital CIR < 64% Enhance revenue synergies with BP & CE networks and reach Groupe BPCE market share for most products (consumer finance, factoring, leasing, employee benefits planning) Contribute to increase the equipment rate of BP & CE clients Continue with our innovation and operational efficiency strategy ROE > 16% RWA Slight increase vs NATIXIS INVESTOR DAY London November 14,

32 NATIXIS INVESTOR DAY London November 14, 2013

33 Investment Solutions Strategic Vision Pierre Servant

34 Contents 1 Natixis Investment Solutions Division 2 Focus of Asset Management 3 Focus on Insurance NATIXIS INVESTOR DAY London November 14,

35 Investment Solutions division: 3 business lines In m 9M13 %/2012 Net revenues ow Asset management ow Insurance (1) ow Private banking 1,619 1, % +7% +60% +10% CIR 74.5% -0.8 pts Headcount 4,190 +4% PBT % Allocated Equity (2) 3,480 +0% ROE 11.4% +0.8 pts 1. Asset Management A global player with 619bn of AuM managed in Europe (> 50%) and in the US (< 50%) 2. Insurance (1) A platform dedicated to BPCE networks managing 39bn of Life insurance but also non Life insurance (P&C, Creditor, Financial protection) 3. Private banking 22bn managed by Banque Privée 1818 for direct clients, IFAs and BPCE networks (1) Excluding BPCE Asssurances (2) Including goodwill and intangible assets NATIXIS INVESTOR DAY London November 14,

36 Groupe BPCE and Natixis want to grow the Investment Solutions division 1. Groupe BPCE french networks are powerful asset gatherers in France with more than 573bn of savings 390bn of on balance sheet deposits and savings 183bn of long term/off balance sheet savings totaling ~ 700m of commissions for the networks 2. Groupe BPCE s ambition in Bancassurance has to be supported by a more integrated Insurance Business Unit to capture a bigger portion of the value chain 3. Investment Solutions businesses are profitable, capital and liquidity light with sustainable organic growth capacity 4. AM is a source of diversification and internationalization for the Group with a stand alone growth capacity and a proven track record NATIXIS INVESTOR DAY London November 14,

37 Two solid growth engines generating an 8% CAGR of revenues between 2009/2013 despite significant headwinds Net revenues m (1) 1,580 1, bn + 8%/year 1,890 2,065 2,158 (2) 1. Synergies with BPCE retail networks in France (> 33% of our net revenues) NGAM, Natixis Assurances and Banque Privée 1818 provide investment solutions for each market segment to Groupe BPCE networks Together, they manage ~ 180bn of off balance sheet long term assets collected by Groupe BPCE networks 2. Growth of the international business of NGAM More than 50% of revenues and total headcounts of the division Unique combination of well known alpha providers and strong distribution platform A multi-affiliate organization able to seize M&A opportunities with limited execution risks M13 (1) Excluding BPCE Assurances (2) Annualized NATIXIS INVESTOR DAY London November 14,

38 A new business environment full of challenges but also opportunities as we adapt to the new normal Asset Management Insurance Private Banking Globalization of the business Concentration of net flows around a few mega AM players Secular shift of client demand Competition from passive product Waves of new regulations European captive AM have to adapt to open architecture Competition from deposits for mass retail clients Increase of capital intensity of insurance businesses for banking group Solvency II revolution Risk of fiscal change in France Competition from universal banks and new intermediaries Clients in France are losing interest in funds and risk Lower ROA Tougher tax and compliance rules Despite all those challenges and the increase of the cost of doing business, the fundamentals of our businesses remain positive because of demographic trends and the needs of retirement But to grasp those opportunities, we will adapt our business models and add scale to become more efficient NATIXIS INVESTOR DAY London November 14,

39 allowing us to maintain our target of organic growth (+8%) for the new plan based on our diversified book of businesses Net revenues CAGR Net New Flows 2017 Targets based on organic growth ~ 7-8% + 75bn CIR < 70% ROE > 15% 2017 NBI per activity (2013 (1) ) Non Life Insurance 11% (11%) Life Insurance 7% (6%) AM Europe 21% (24%) Private Banking 5% (5%) AM US & Asia 56% (54%) An additional billion of revenue between 2013 and 2017 (1) (~ 7-8%/year) coming from a diversified organic growth ( 0.8bn) and BPCE Assurances projected integration ( 0.2bn) Before acquisition, a fairly stable book of business except for the increase of the share of insurance ~4 points decrease of the CIR Strong ROE and capital generation for the group (> 2bn in 4 years) before acquisition (1) Including BPCE Assurances but without new premiums coming from CEP in Life insurance NATIXIS INVESTOR DAY London November 14,

40 Focus on Natixis Global Asset Management A multi-affiliate model with a centralized distribution platform adapted to each market NATIXIS INVESTOR DAY London November 14,

41 NGAM: a global and diversified asset manager with 619bn AuM Per Asset classes Fixed Income 338bn (54%) Money Market 59bn (10%) Real Estate 33bn (5%) Alternatives & structured 22bn (4%) Equity 167bn (27%) Per Management center US & Asia 300bn (49%) Europe 319bn (51%) A global asset manager Covering all the main asset classes including real estate and private equity Full range of and $ expertise to cover main AM markets Excellent overall investment performance Per vehicle Life Insurance 173bn (28%) Open Funds 186bn (30%) Private Mandates & Other 29bn (5%) Institutional Mandates 232bn (37%) Per distribution platform BPCE related businesses Life Insurance 28% Employee Saving plans 3% European affiliates (1) (direct) 11% BPCE Retail in France 4% Centralized distribution Platform 31% (1) USA & Asia Affiliates (direct) 23% Broad and global client franchise: institutional, large distributors and retail clients Through a powerful global distribution platform Able to provide a full range of vehicles (funds, mandates, separate accounts...) adapted to each regulation (UCITS, US Mutual Funds, OEICS ) (1) Post European Action Plan and including Money Market Funds for the French division. NATIXIS INVESTOR DAY London November 14,

42 A decentralized organization with a proven ability to attract and retain talent 1 Multi-affiliate organization What is our value proposition? Independent thinking and entrepreneurial approach A flexible organization adapted to each market 2 A centralized distribution platform Support for organic growth: allows affiliated investment managers to focus on investment management, yet accessing economies of scale NGAM Distribution 3 Compensation plans Fair long term alignment of interest between NGAM and affiliated investment managers (with Equity like bonus plan) Global Holding 4 5 Support for innovation (seed money) Global Holding Support for new products and organic development ( 0.7bn of seed capital) Strong experience in acquisition and regulatory oversight of affiliates 25 Specialized Affiliates NATIXIS INVESTOR DAY London November 14,

43 A multi-affiliate organization with a wide range of expertise Expertises Insurance Money Markets Fixed Income Equity and diversified Alternatives and Real Estate Loomis, Sayles & Co. Harris Associates Aurora Gateway AEW US and Europe R&T Funds Vaughan Nelson McDonnell Alpha Simplex NAM ow Mirova ow Seeyond Vega IM H2O Credit (HY et IG) Equity Value FoHF Equity Hedged Real Estate MMF Small/Mid cap Municipals Quant/Alternative Generalist SRI Expertise Quans & Struct. Wealth Management Bonds NATIXIS INVESTOR DAY London November 14,

44 A multi-affiliate organization with a centralized distribution platform NGAM Distribution offers a centralized distribution platform dedicated to NGAM affiliates with more than 650 FTE all over the world. It is a single point of access to the affiliate line-up. $260bn (31%) of products distributed through the centralized distributed platform (1) International U.S. Retail Oakland Boston M13 (1) Post European Action Plan and including $15bn of Money Market Funds for the French BDU Stockholm London Amsterdam Luxemburg Frankfurt Geneva/Zurich Paris Madrid Milan Australia 4% China 6% Japan 15% MENA 8% Continental Europe 9% Rest of Asia 5% UK 14% Dubaï France (3P) 39% Beijing Tokyo Hong Kong Taipei Singapore Sydney NATIXIS INVESTOR DAY London November 14,

45 This organization has delivered a strong organic growth and created value over the long term NATIXIS INVESTOR DAY London November 14,

46 NGAM distribution objectives for the next 4 years: 75bn of Net New Flows Cumulated net flows forecasted Pursue the development of our US retail platform ($150bn as of Sept. 2013) + 24bn 2 Become a more important player in the European market in the 3P Business + 22bn 53bn of targeted Net New Flows through the centralized platform: NGAM Distribution 3 Expand profitability of our distribution organization in new markets (Asia, LatAM, Middle East) + 7bn 4 Direct distribution by our affiliates in France and in the US + 22bn NATIXIS INVESTOR DAY London November 14,

47 Our net flows objectives are consistent with the major trends of the global asset management industry Global Market $67tn / + 6% 60% USA: $29tn 44% / 5% 30% $7tn 40% $12tn Europe: $24tn 36% / 5% 70% Asia (excl. Japan): $3tn 6% / 13% Japan: $4tn 6% / 3% 45% 88% 55% 12% Retail (Mutual Funds) Institutionnels % of Global Market ROW: $4.4tn 7% / 9% Australia: $1.8tn 3% / 9% 67% 33% CAGR % 50% (1) Survey Global Markets Cerulli 2013 data end of 2012 NATIXIS INVESTOR DAY London November 14,

48 Natixis Assurances A platform able to provide BPCE s retail networks with a full range of insurance products and generating value for Natixis and the networks NATIXIS INVESTOR DAY London November 14,

49 BPCE Assurances acquisition: a new step in the construction of a more integrated bancassurance platform BPCE Assurances at a glance Created in 2002 by the Caisse d Epargne BPCE Assurances is dedicated to P&C products for the Caisse d Epargne Retail network A JV (60%-40%) with MACIF/MAIF two French significant players in the P&C segment 2.6 million contracts and 0.6bn of Gross Premium (Motor vehicle, Home Insurance, Health and Personal Protection) Net revenue 2013 (1) : 200m, PBT (1) : 62m Envisaged transaction between Natixis and BPCE Acquisition in cash of 60% of BPCE Assurances MoU signed between parties on November 7 th, 2013 Existing agreements with BPCE and MACIF/MAIF to be maintained Due diligence and Fairness opinion will be completed Execution of the transaction expected in Q (1) Estimated figures NATIXIS INVESTOR DAY London November 14,

50 In 2016, Natixis will become the single insurance services provider for BPCE networks FRENCH RETAIL NETWORKS Caisses d Epargne Banques Populaires Life Insurance CNP is the current exclusive provider for Life Insurance (1) Natixis Assurances PRODUCTS Creditor Insurance Personal protection CNP is the current exclusive provider but since 2007, Natixis is Co-insurer (1) CNP is a provider for Personal protection solutions (1) alongside with BPCE Assurances Natixis Assurances Natixis Assurances Property and Casualty BPCE Assurances (2) through a JV with Macif & Maif (60-40) Natixis Assurances through a JV with Maaf Assurances(50-50) (1) Current agreements will end up in 2016 (2) Natixis will integrate BPCE Assurances after regulatory approvals and agreements from Worker Councils during Q NATIXIS INVESTOR DAY London November 14,

51 Groupe BPCE s bancassurance ambition A strong growth potential for Natixis Life Insurance Cautious projections in term of AuM ( 39bn as of Sept 2013): + 3% per year with a smooth recovery in term of flows Distribution agreement limited to the BP networks until 2015 and including CE in 2016 Increase of Unit-linked product for Affluent and Private bank client Net revenues projections for 2017: + 10% per year (margin improvement) Non Life Insurance Integration of BPCE Assurances in the Investment Solutions Division (expected Q1 2014) Strong growth in the Creditor and Personal insurance: net revenues CAGR > 10%/year Groupe BPCE aims to be the insurer of one third of its current client base before the end of 2017 Strong and diversified growth of the net revenues: + 10%/year A CIR at 50% A profitable business line even without the Danish compromise NATIXIS INVESTOR DAY London November 14,

52 Conclusion We are confident in our ability to grow organically and deliver this plan in a normalized business environment thanks to the investments we made since the crisis We are also ready to seize M&A opportunities with limited execution risks because of our experience of previous acquisitions We will have the opportunity to dig deeper in AM and insurance during the afternoon round tables NATIXIS INVESTOR DAY London November 14,

53 Industry-leading investment thinkers in key markets globally North America Europe 1 Expertise: Index -based solutions Founded: 2002 Headquarters: Oakland, CA AUM: $445 M/ 342 M Expertise: Value investments Founded: 1976 Headquarters: Chicago, IL AUM: $88.6 B/ 68.1 B EUROPE Expertise: European real estate Founded: 2001 Headquarters: Paris, France AUM: $23.2 B/ 17.8 B 2 Expertise: Real estate investments Founded: 1981 Headquarters: Boston, MA AUM: $17.9 B/ 13.7 B Expertise: Absolute return strategies Founded: 1999 Headquarters: Cambridge, MA AUM: $2.9 B/ 2.2 B Expertise: Alternative investment management Founded: 1988 Headquarters: Chicago, IL AUM: $9.6 B/ 7.4 B Expertise: Concentrated equity portfolios Founded: 1990 Headquarters: Boston, MA AUM: $3.8 B/ 3.0 B Expertise: U.S. private equity Founded: 2008 Headquarters: New York, NY AUM: $1.0 B/ 850 M Expertise: Hedged equity strategies Founded: 1977 Headquarters: Cincinnati, OH AUM: $11.8 B/ 9.1 B Expertise: Global/int l investments Founded: 1994 Headquarters: Ft. Lauderdale, FL AUM: $4.2 B/ 3.2 B Expertise: Asian & emerging Asian equities Founded: 1998 Headquarters: Singapore AUM: $665 M/ 512 M Asia 1 Expertise: Actively managed, researchdriven equity and fixed -income portfolios Founded: 1926 Headquarters: Boston, MA AUM: $183.9 B/ B Expertise: Overlay management Founded: 2005 Headquarters: Oakland, CA AUM: $10.1 B/ 7.8 B Expertise: Fixed -Inc. specialist managing taxable & tax - exempt bond portfolios Founded: 2001 leadership since 1987 Headquarters: Oak Brook, IL AUM: $12.5 B/ 9.6 B Expertise: Money market funds & cash management services Founded: 1970 Headquarters: New York, NY AUM: $11.6 B/ 8.9 B Expertise: U.S. small - and mid -cap value investments Founded: 1984 Headquarters: San Francisco, CA AUM: $2.0 B/ 1.5 B Expertise: Value equity investments Founded: 1970 Headquarters: Houston, TX AUM: $8.1 B/ 6.2 B Expertise: Indian equity and fixed investments Founded: 2000 Headquarters: Mumbai, India AUM: $6.9 B/ 5.3 B -income 3 Expertise: Fund distribution solutions Founded: 2002 Headquarters: Paris, France Expertise: Middle market, mature, PIPE, and mezzanine investments Founded: 2007 Headquarters: Luxembourg, Luxembourg AUM: $1.1 B/ 846 M Expertise: Customized hedge fund solutions Founded: 2004 Headquarters: Paris, France Expertise: Flexible management Founded: 1993 Headquarters: Paris, France Expertise: Alternative global fixed and global macro management Founded: 2010 Headquarters: London, UK AUM: $2.5 B/ 2.0 B 4 Expertise: Responsible investment solutions Founded: 2012 Headquarters: Paris, France Expertise: European multi -strategy Founded: 1984 Headquarters: Paris, France AUM: $372.1 B/ B -income Expertise: ETFs & quantitative strategies Founded: 2009 Headquarters: Paris, France AUM: $1.1 B/ 859 M 4 Expertise: Volatility management and structured product investments Founded: 2012 Headquarters: Paris, France 5 Expertise: Specialist management solutions Founded: 2012 Headquarters: Paris, France AUM: $7.1 B/ 5.4 B NATIXIS INVESTOR DAY London November 14,

54 Specialized Financial Services Strategic Vision Gils Berrous

55 SFS: expertise geared to serve Groupe BPCE networks and Natixis clients 9M13 net revenues by business line 44% Securities services Factoring 56% FINANCIAL SERVICES Payments 24% 10% 11% 10% 948m 10% 20% 15% Sureties and guarantees Leasing SPECIALIZED FINANCING Employee benefits planning Consumer finance Good balance between Specialized financing and Financial services NATIXIS INVESTOR DAY London November 14,

56 SFS: core business lines for Groupe BPCE ambitions Supplier of Specialized financing solutions and Financial services to the networks (Banque Populaire and Caisse d Epargne) and Natixis s clients SFS is at the heart of the Groupe BPCE development strategy An innovation culture of and operational efficiency geared to preempt changes in the retail banking sphere Proven expertise in pooling and industrializing banking platforms consistent with the highest market practices Value creation ability on regular basis and resilient to economic cycles NATIXIS INVESTOR DAY London November 14,

57 SFS: extensive growth potential within the second-largest banking group in France 19 Banques Populaires Two major brands: Banque Populaire and Caisse d Epargne 8,000 branches in France (1) 17 Caisses d Epargne Over 30 million retail clients (1) Over 1,500,000 professional clients (1) Over 150,000 corporate clients (1) (1) Source: Groupe BPCE NATIXIS INVESTOR DAY London November 14,

58 Strong synergies with the BP and CE, facilitated by the SFS sales physical presence within the networks Sustained growth, with staff deployed according to the Group s regional organization 3,661 staff, including 2,539 in Paris and 1,058 in the regions Specialized financing Factoring Leasing Consumer finance Sureties & guarantees Financial services Employee benefits planning Payments Securities services NATIXIS INVESTOR DAY London November 14,

59 Strong market shares and solid growth momentum Rankings in France 09/ /2013 Factoring #3 Factored turnover ( bn) % 22 Sureties & guarantees #1 Written premiums ( m) % 231 Consumer finance #3 New production ( bn) % 5.9 Leasing #4 equipment #2 real estate lease New production ( bn) +11% Employee benefits planning #1 Payments #2 Securities #2 services Employee savings planning account keeping Payments processor Retail custodian Sources: ASF / Natixis NATIXIS INVESTOR DAY London November 14,

60 Steady increase in SFS s net revenues earned with the networks 305m of additional net revenues earned with the networks over , well above the initial target Initial target 239m 305m 2/3 of SFS s net revenues earned with the networks and their clients in m 847m Direct 33% (1) 9M annualized 2009 Additional net revenues 2013 (1) Networks 67% NATIXIS INVESTOR DAY London November 14,

61 Strategic targets Increase net revenues earned with both networks clients (Banque Populaire, Caisse d Epargne) and Natixis clients Increase the clients equipment rate of SFS expertise Fully implementation of our range of solutions into the networks Continue with our innovation and operational efficiency strategy Innovation: anticipate changes in client needs Operational efficiency: proprietary, shared platforms consistent with the best market practices Expand, while controlling scarce-resources consumption NATIXIS INVESTOR DAY London November 14,

62 Increase net revenues with the networks: targets Duplicate successes in each network Current (1) 2017 Targets Factoring Overall take-up for Pro and SME (2) clients BP: 7% CE: 3% BP: 9% CE: 5% Employee benefits planning Take-up of employee savings planning BP: Pro: 10% Corp: 8% CE: Pro: 6% Corp: 5% BP and CE: Pro: 14% Corp: 10% Tap into the potential for saturating core clients Securities & guarantees Take-up of Saccef individual homebuyer guarantees CE: > 75% BP: < 10% CE: > 75% BP: < 50% Consumer finance Consumer finance market share equal to banking market share in 2017 ~ 13% ~ 17% (1) Source: TB ASF / Natixis (2) Active clients with client receivables > 10K or 10% of sales NATIXIS INVESTOR DAY London November 14,

63 Increase net revenues with the networks: resources Strengthen sales team within the networks and homogenize commercial presence and approach Sales tools integrated into work stations of network sales staff Consumer finance Izivente Sales tool with credit scoring and dynamic expert systems Leasing Front Lease Equipment-leasing sales tool covering simulation to contract printing Employee benefits planning Easiris Three-way sales, with an employee benefits expert (web call back) NATIXIS INVESTOR DAY London November 14,

64 Ambitious commercial targets for all activities Leasing: new production ( m) Factoring: new contracts Employee benefits planning: corporate clients +31% +40% +42% +71% +43% +45% 1,197 2,041 2,683 1,719 2,455 3,444 46,465 67,328 95, (1) (1) (1) (1) Estimated NATIXIS INVESTOR DAY London November 14,

65 Significant additional revenues with the networks over the course of the plan CAGR of 5% over , i.e. 172m of additional net revenues, the bulk from Specialized financing 172m 3/4 of SFS s net revenues earned with the networks in m 847m 1,019m Direct 26% 542m Networks 74% 2009 Additional net revenues (1) 2013 Additional net revenues 2017 (1) Estimated NATIXIS INVESTOR DAY London November 14,

66 Consumer finance: continued momentum 68m 6% CAGR in net revenues during the plan Growth in new production ( bn) 120m 308m +32% 240m +50% 120m Additional net revenues (1) 2013 Additional net revenues 2017 (1) (1) Estimated NATIXIS INVESTOR DAY London November 14,

67 Continue with our innovation and operational efficiency strategy Innovation: Anticipate changes in client needs and strengthen our culture of innovation Payments Leading French bank for prepaid card issuance with Prepaid Anywhere Best supplier of payment services at the Prepaid Awards 2012 Factoring Assisting clients with their international development projects Multi-domestic offering Reverse factoring Employee benefits planning The only complete range of solutions for deferred remuneration systems: Employee savings, Retirement savings, Employee shareholding, Special payment vouchers Auto components Factoring Multi-domestic 8 countries Potential turnover of 2.6bn Employee benefits planning accounts savers 200m AuM NATIXIS INVESTOR DAY London November 14,

68 Continue with our innovation and operational efficiency strategy Operational efficiency: proprietary, shared platforms consistent with the highest market standards Payments Since 2006: JV with BNP Paribas to design a join card payment software platform : same software platform to process the cards payments of Groupe BPCE Next stage: single software to process all other payments 7 billion transactions in billion exchanged daily Consumer finance Since 2013: Development of a joint consumer finance management platform with BNP Paribas Personal Finance geared to bringing the whole of the value chain back in house 4.5 million personal loan and revolving credit accounts NATIXIS INVESTOR DAY London November 14,

69 Expand, while controlling our consumption of scarce resources Diversify and secure sources of financing Factoring First securitization of commercial receivables rated triple A by Moody s and Fitch 1.1bn of liquidity over 3 years Leasing Securitization Refinancing of medium-term notes collateralized by a portfolio of real-estate leases Consumer finance Projected securitization of Groupe BPCE consumer finance portfolios NATIXIS INVESTOR DAY London November 14,

70 2017 targets: solid and improving performances RoE 2017 Targets CoE Adjusted net revenues CAGR ~ 3-4% Allocated Capital CIR < 64% Enhance revenue synergies with BP & CE networks and reach Groupe BPCE market share for most products (consumer finance, factoring, leasing, employee benefits planning) Contribute to increase the equipment rate of BP & CE clients Continue with our innovation and operational efficiency strategy Stable cost of risk due to strong knowledge of BP and CE retail clients Cost of risk ROE > 16% RWA Stable Slight increase vs NATIXIS INVESTOR DAY London November 14,

71 Wholesale Banking Strategic Vision Olivier Perquel Marc Vincent

72 Since 2009, refocus Subprime crisis Sovereign debt crisis Economic environment Regulatory environment Constraints: Solvency, Liquidity, Productivity 2009 New Deal, 2011 strategic adjustments Deleveraging and exit from non-core activities Client-oriented business model Exit from non-core activities (GAPC, Shipping, Corporate Financing in Germany, refocus of the LBO financing business on Europe) Client focus enhanced Cross-selling Risk reduction. Exit from proprietary trading activities B3 RWA & revenues 1, ,476 1, % - 9% Drastic reduction in consumption of scarce resources Productivity improvement O2D RWA reduction program / models reliability Liquidity optimization measures and mutualization of long-term funding Two successive efficiency plans: adaptation plan (2011) and PEO (2012) Expenses (in m) H1-12 H2-12 H1-13 RWA B3 ( bn) Net revenues ( m) - 2% H1-12 H2-12 H1-13 NATIXIS INVESTOR DAY London November 14,

73 and investment in key franchises Revenues 9M-13 Financing Activities Structured Finance GEC AEI REF ASF Commercial Banking Vanilla credit GTB Capital Markets FICT Trading Debt Platform Commodities Treasury Equity Markets Cash Equity Derivatives Investment Banking ELF (1) Coverage 47% 35% 13% 53% 38% 14% Investment Structured Finance Implementation of O2D Creation of a Pfandbriefbank in Germany Global Markets Creation of the Debt Platform Development of FI in the US Strengthening of the Global Markets platform in Asia Coverage Reengineering of Coverage Improved cross-selling Strengthening of Asian Coverage Transverse Creation of EMEA platform Improved risk control Note: GEC: Global Energy and Commodities; AEI: Aircraft, Export & Infrastructure; REF: Real Estate Finance; ASF: Acquisition and Strategic Finance; GTB: Global Transaction Banking; ELF: Equity Linked Finance (1) ELF: split between Equity Markets and Structured Finance NATIXIS INVESTOR DAY London November 14,

74 Focus on Natixis franchises A leading player in Structured finance Leading franchises for each business, either geographical or product Sophisticated state of the art expertise (1) Global Energy and Commodities Major structured finance expertise and quality relationships in most regions #3 MLA for Structured Commodity Finance (2012) Best Trade Bank (Bronze category) in Metals and Mining (2013) 2013 Corporate Term Loan & Bridge Loan Facility USD 13,222,000,000 Russia MLA, Bookrunner (1) Aircraft, Export & Infrastructure Internationally recognized franchises in Infrastructure and Aircraft Finance Aircraft Finance House of the Year (2012) #1 MLA in France for PPP projects, concessions and public-service outsourcing (2013) 2013 Refinancing of existing debt maturing in 2015 EUR 1,650,000,000 Belgium MLA, Bond manager, Bookrunner Real Estate Finance Leading market share in France, securitization expertise in NY 2013 Club Deal Credit Revolving Facility EUR 750,000,000 France MLA 2012 (1) Acquisition and Strategic Finance Solid track record in France, international LBO finance expertise and close relationship with PE funds #6 MLA for LBO finance in EMEA and #1 French bank #7 bookrunner for LBO financing in EMEA 2013 Acquisition financing EUR 1,400,000,000 Italy M&A Advisor, MLA, Bookrunner (1) Sources: Trade Finance Magazine Dealogic / League tables for the trade finance market (in value); Trade & Forfaiting Review / TFR Excellence Awards 2013; Global Transport Finance, Awards November 16, 2012; Magazine des Affaires - Grand Prix Infrastructure - between January 2011 and June 2013 (in volume); Reuters, FY2012 as at Jan. 17, 2013 (in value); Reuters, League Table LBO 2012 (in value) NATIXIS INVESTOR DAY London November 14,

75 Focus on Natixis franchises Debt Platform and Equity Derivatives Debt Platform Issuers DCM GSCS A major player on bond issues and an established franchise for GSCS A global and integrated approach from origination to distribution Debt Platform Syndication desk Sales forces Investors Origination platform for loan syndication, primary bond market, securitization Fleet Financing EUR 550,000,000 Arranger, Senior Lender Catastrophe Bond EUR 130,000,000 USD 60,000,000 Atlas Reinsurance VII Joint Bookrunner (1) Best euro lead manager for covered bonds: 2012, 2013 Best secondary loans house (2012) #2 bookrunner on the euro primary bond market for financial institutions and French corporate issuers (2012) #4 bookrunner Global Structured Finance in Euros (2012) Equity Derivatives Flow and structured derivatives for retail, institutional and corporate clients providing hedging, investment and financing solutions with a wide product coverage Existing franchise to be extended New set-up on January 1, (1) 2012 (1) Strategic Equity: 2 Equity Lending awards recognizing Natixis as "Winner overall Group 2 Borrower" and "One to Watch Group 2 Borrower" on the equity markets in EMEA Structured Equity Derivatives: best manufacturer in structured products for retail clients in France, #2 manufacturer in Equity structured products in France, #3 manufacturer in hybrid structured products in France (1) Sources: The Cover/Euroweek - Covered Bond Awards 2012; Euroweek, Syndicated loans and leveraged finance awards 2012; Dealogic (ranking based on unsecured senior debt, covered bonds, secured debt, subordinated debt and securitization); IFR; Global Investor / ISF equity lending survey 2013; Structured Retail Products.com, Europe Structured Products Awards 2012 NATIXIS INVESTOR DAY London November 14,

76 Worldwide presence beyond key home market Domestic market: France, Spain, Italy International market: EMEA (2), Americas, Asia-Pacific Reengineered Corporate Coverage Dedicated FIPS and Financial Sponsor Coverage Rationalized client portfolio Upgraded product-neutral Coverage Granular regional set-up targeting mid-cap corporates Selectively build on our key franchises: GEC, GIP, REF, Aircraft, LBO, DCM, ELF etc. America EMEA (2) Asia-Pacific c. 550 staff c. 530 staff c. 430 staff WB 2012 revenue by client category (1) C. 2,000 clients FIPS International 19% FIPS France 19% Corporate France 43% Montreal Houston New York Mexico City Lima London Paris Madrid Moscow Frankfurt Milan Almaty Seoul Istanbul Beijing Tokyo Shanghai Dubai Mumbai Hanoi Taipei Hong Kong Bangkok Ho Chi Minh City Kuala Lumpur Singapore Labuan Jakarta (1) Coveraged clients (2) EMEA platform excludes France Corporate International 19% Branch & Subsidiary Subsidiary Branch Marketing office Representative office Buenos Aires Sao Paulo Johannesburg Sydney NATIXIS INVESTOR DAY London November 14,

77 The strategic plan Selective growth and efficiency Selective growth Development of key franchises with a clear focus on international platforms FIC-T, Structured Finance, Equity Derivatives North and Latin America, Asia, EMEA Emergings (Russia, Turkey, Middle East) strengthened strategic dialogue with corporate, FIPS and FSG clients Focus on efficiency Rationalization of Cash Equity, GTB (1), Coverage in France Optimization of liquidity and capital in line with the new regulatory framework Strengthening of O2D, liquidity collection, RWA stability Operational efficiency Cost consciousness at all levels of management Additional efficiency plans IT systems reengineering and rationalization (1) Global Transaction Banking (Trade Finance, Treasury Services) NATIXIS INVESTOR DAY London November 14,

78 The strategic plan Ambitions 1 Revenue growth 2 Repositioning / Rationalization Franchise development International development: CAGR : ~ 10% Revenue CAGR: ~ 5% Cost/Income ratio: ~ 55% GTB Cash Equity Coverage France IT systems Operational efficiency 2017 ROE ~ 12% 3 RWA stability O2D Continuing deleveraging Risk control NATIXIS INVESTOR DAY London November 14,

79 1. Revenue growth focus Structured Finance Enhance O2D (higher underwritings thus improving client positioning / higher fees) Improve client positioning (e.g. creation of FSG (1) Coverage, higher underwritings through O2D, development of Capital Markets offer: HY) Selective international focus (e.g. GEC, GIP, ASF) Global Energy and Commodities Aircraft, Export & Infrastructure New production (2) ( bn) Increase market share in Commodity Trade Finance Upgrade relationships with large clients in LatAm and Russia Develop franchise in Asia Expand in Africa, Middle East Further develop cross-selling Global Infrastructure & Projects: build a global franchise, further expand partnerships Aircraft: focus on new funding tools Structured Export Finance: develop new refinancing tools, improve cross-selling Expand Americas footprint ~ 115% of FY2012 new production Real Estate Finance Europe: focus on generation of Natixis Pfandbriefbank eligible loans, maintain leadership in France US: take advantage of improving market to increase participation in securitization market Acquisition and Strategic Finance LBO: expand relationships with selected key PE Funds into global business (incl. Asia), with a major focus on the US market Corporate & Acquisition Finance: focus on French (+Italy/Spain) Coverage clients and GEC/Infra clients abroad 12.7 FY M13 (1) FSG: Financial Sponsors Group (2) Perimeter: SAF O2D, new production including arrangement NATIXIS INVESTOR DAY London November 14,

80 1. Revenue growth focus Global Markets FIC-T Develop client base and improve geographical footprint Uptier client franchise: AM, Public Institutions & Sovereign Funds, Insurance Extend geographical footprint: Northern Europe, Middle East, Americas (LatAm, Canada) and Asia Complete product offering in partnership with Wholesale Banking and Natixis Equity Derivatives Improve franchise based on expertise in Strategic Equity and Structured Derivatives Set-up upgrade (at sales level) in UK-US and Asia and increased productivity Develop client portfolio, both in terms of clients (e.g. hedge funds) and geographical regions Simplify product offering on Flow Trading (e.g. underlying securities) Develop Strategic Equity Solutions and Fund Solutions NATIXIS INVESTOR DAY London November 14,

81 1. Revenue growth focus Selective international development America CAGR : ~ 10% Capitalize on franchise and existing set-up to further develop Develop client franchise Enhance/optimize product offering Opportunistic development (LatAm, Canada) EMEA (1) CAGR : ~ 5% Maintain and selectively develop Focus on Capital Markets and Structured Finance Italy/Spain: maintain our franchise Foster development in emerging markets Asia-Pacific CAGR : ~ 15% Gain critical mass Focus on core franchises Strengthen Trade Finance development Implement O2D Extend new investor base Opportunistic coverage approach driven by core business franchises (1) EMEA platform excluding France NATIXIS INVESTOR DAY London November 14,

82 2. Rationalization Global Transaction Banking (1) Rationalize and re-deploy Develop client base, capitalizing on Coverage forces (systematic approach) Selective international development of Trade Finance (Asia, Middle East, LatAm) Enlarge the product range towards liquidity and account management Cash Equity Ongoing turnaround Rationalize the whole set-up (Research, Sales, Execution) to increase productivity Reposition on UK/US clients Coverage Further rationalize the set-up and capitalize on the refocused client portfolio Adapt the set-up: repositioning on core corporate clients in France and close monitoring of vanilla credit production Strengthen strategic dialogue (Advisory) and improve cross-selling with all Natixis business lines, to reflect the focus on vanilla financing as merely a marketing tool Selective international development (1) Trade Finance, Treasury Services NATIXIS INVESTOR DAY London November 14,

83 3. RWA stability Stronger O2D Increase rotation Enhanced processes Generate higher fees thanks to higher underwritings improving client positioning Share of net arrangement fees in revenues (1) RWA selective allocation Selective vanilla credit production Finalize deleveraging (run-off) Re-deploy partly these RWA envelopes towards Structured Finance and Fixed Income 25% + 10pp 35% Develop business lines with low RWA consumption 2013e 2017e Debt Platform, Equity Derivatives, Advisory and selected Structured Finance business lines Enhanced analytical processes Strict risk control policy (1) Structured Finance (ASF, REF, AEI, GEC) and Commercial Bank; Arrangement fees and servicing fees NATIXIS INVESTOR DAY London November 14,

84 Wholesale Banking: business model transformation to improve profitability CoE 2017 ROE 2013 ROE Net revenues CAGR 2017 Targets ~ 5% Allocated Capital CIR ~ 55% A four-pronged approach Enhance O2D model Improve share of wallet Operational efficiency / streamlining of some businesses Selective growth of the international platforms ROE ~ 12% RWA Stable vs NATIXIS INVESTOR DAY London November 14,

85 Conclusion and Q&A session Laurent Mignon

86 Conclusion Disciplined capital management Operational excellence Solid growth prospects Natixis will be a fully client-centric, less capital intensive provider of investment and financial solutions with plus-12% ROTE and a proactive dividend policy NATIXIS INVESTOR DAY London November 14,

87 Morning closing: Natixis within Groupe BPCE François Pérol

88 Groupe BPCE, the 2 nd largest banking group in France Customer deposits & savings Customer loans Retail network 21.4% market share in France (1) 20.6% market share in France (1) 8,000 branches Net banking income Gross operating income Net income Total assets 17.1 billion in 9M-13 (2) (+2.5% vs. 9M-12) 5.2 billion in 9M-13 (2) (+6.5% vs. 9M-12) 2.3 billion in 9M-13 (2) (+12.3% vs. 9M-12) 1,146 billion Common Equity Tier-1 capital Risk-weighted assets Common Equity Tier-1 ratio 41.6 billion (3) 421 billion (3) 9.9% (3) (1) Market share at the end of June 2013 (2) Pro forma of the sale of the CCIs held by Natixis and excluding revaluation of own debt for Group results (3) Estimate as of end-september 2013 CRR/CRD4, as applied by Groupe BPCE - Fully loaded except on DTAs NATIXIS INVESTOR DAY London November 14,

89 Natixis, one of Groupe BPCE s two core businesses 8.7 million cooperative shareholders Groupe BPCE 3Q13 pre-tax profit by business (1) (%) 100% 100% 16% 3% 50% 50% Core business lines of Natixis: 31% 9% Retail banking: 72% 72% 6% 66% 28% Free float Commercial Banking and Insurance Investment Solutions Equity Interests Specialized Financial Services Wholesale Banking (1) Excluding the GAPC "Workout portfolio management" and "Other businesses" NATIXIS INVESTOR DAY London November 14,

90 Natixis, a listed asset of Groupe BPCE, with a minority shareholder-friendly policy Natixis will remain listed as a stand-alone company Best governance practices One third of Natixis Board of Directors are independent members Separation of Chairman of the Board and CEO roles ensures better balance of power between controlling bodies and Natixis management Minority shareholder-friendly/alignment of interests Group internal guarantee & solidarity system/ GAPC guarantee CEO s variable compensation is index-linked to Natixis shares CCI buyback transaction completed on August 6, 2013: exceptional distribution of 2bn Payout ratio 50% Natixis share price growth vs. STOXX 600 / banks, 01MAR09-08NOV13, in % Natixis 411% STOXX 600 / banks 97% NATIXIS INVESTOR DAY London November 14,

91 Natixis contribution to Groupe BPCE s Strategic plan NATIXIS INVESTOR DAY London November 14,

92 Significant value creation between Natixis and the retail networks Groupe BPCE s strategic plan Capture 870m of revenue synergies through Natixis and the retail networks revenue synergies Expand Consumer finance in both networks to reach a market share of around 17% in 2017 (vs. around 13% in 2013) Improve current growth in Life insurance and customer take-up rates of Personal protection and P&C insurance New product offer New client-driven distribution Development of all other business lines (Factoring, Leasing, Asset Management, etc.) with the retail networks 7% 8% 7% 7% 33% 37% Insurance Consumer finance Factoring Wholesale Banking Other Investment Solutions Other SFS NATIXIS INVESTOR DAY London November 14,

93 Growth strategy keeping risk profile at moderate level Groupe BPCE s strategic plan Groupe BPCE s business model is focused on core markets: Retail banking in France Savings/Asset gathering Customer-related wholesale banking activities at Natixis level Groupe BPCE: historical cost of risk (bp (1) ) Targeted growth entailing low risk for Natixis: Create the insurance platform so as to enable Groupe BPCE to become a fully-fledged bancassurer (BPCE Assurances projected acquisition and new insurance business of Caisses d Epargne starting January 1 st, 2016) Wholesale Banking revenue growth mainly driven by the development of our client base More ambitious targets for the rollout of the SFS offering to Groupe BPCE s retail customers Cost of risk comparison (bp (1) ) Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 BNP Paribas Groupe Crédit Agricole Société Générale Groupe BPCE (1) Cost of risk excluding Greek impairment expressed in annualized bp on gross customer loan outstandings at the beginning of the quarter NATIXIS INVESTOR DAY London November 14,

94 Pursue our improving solvency trajectory and maintain a sizeable liquidity reserve Groupe BPCE s strategic plan Natixis benefits from Groupe BPCE s high level of solvency Groupe BPCE offers Natixis stable access to a strong refinancing pool > 12% 9.9% CET 1 ratio CET 1 ratio September 30, Groupe BPCE s total capital ratio above 15% by 2017 at the latest (1) 132% 132% % % Liquidity reserves/st funding outstandings (as a %) Short-term funding outstandings (in bn) Avalaible assets eligible for central bank refinancing (in bn) Cash replaced with central banks (in bn) Leverage ratio: 3% throughout the plan (2) /31/ /31/ /30/ /30/2013 (1) Subject to bail-in regulation (2) Calculated on BPCE understanding of CRD4/CRR, without transitional measures, except for DTAs NATIXIS INVESTOR DAY London November 14,

95 We confidently expect to comply with regulatory standards on liquidity Groupe BPCE s strategic plan Target Main actions Liquidity Coverage Ratio Loanto-deposit ratio 100% at January 1 st, 2015 without waiting for the end of the transitory period Pursuing improvement Natixis will comply the 1 st January 2014 with 100% LCR Continue our efforts to improve our deposit base, with a focus on gaining market shares Pursue our transformation model: O2D model at Natixis level Project for Groupe BPCE consumer credit securitization SCF to refinance long-term loans originated by the networks and Natixis NATIXIS INVESTOR DAY London November 14,

96 Groupe BPCE s 2017 financial targets Groupe BPCE s strategic plan Revenues for core business lines > 23bn Natixis contribution > 8bn Group Cost / Income ratio 65% ~ 65% Group net earnings 4bn NATIXIS INVESTOR DAY London November 14,

97 Summary of our strategy with Natixis Create value with the two retail networks in France Natixis to house our national (1) and international businesses Natixis to contribute substantially to strengthening the Group s liquidity position Groupe BPCE to operate investor-friendly policy through Natixis (1) Excluding CFF NATIXIS INVESTOR DAY London November 14,

98 Comments on methodology Note on methodology: Figures in this presentation are unaudited Following the reclassification of the deeply-subordinated notes as equity instruments, interest expense on these instruments ceased to be recognized in the income statement as of January 1, The sale of the CCIs means the effective sale on August 6, 2013 of all CCIs hold by Natixis to the Banques Populaires and the Caisses d Epargne datas are pro-forma of this operation. Business line results are based on Basel 3 standards: Results of Natixis business lines are presented using Basel 3 standards. Basel 3 risk weighted assets are estimated based on Natixis understanding of the coming regulation. Capital allocation to the insurance businesses is based on the Basel 3 treatment for investments in insurance companies, as stated in CRD4/CRR (the consolidated value of the investment being risk weighted at 370%). Capital is allocated to Natixis business lines on the basis of 9% of their Basel 3 average risk weighted assets. In this way, the calculated ratio is ROTE by business lines. Since 3Q13, this ratio include goodwill and intangible assets by business lines to present the ROE. Other standards: The remuneration rate on normative capital is 3%. The bank tax on systemic risk and the contribution to the costs for the Autorité de Contrôle Prudentiel (French regulator) are allocated to the business lines. In line with the development of the Originate to Distribute model, the results of GSCS (Global Structured Credit Solutions which aggregate securitization and credit solutions expertises in the debt platform), is allocated only to FIC-T. NATIXIS INVESTOR DAY London November 14,

99 NATIXIS INVESTOR DAY London November 14, 2013

100 NATIXIS INVESTOR DAY London November 14, 2013

101 Round table discussion Natixis and Groupe BPCE networks Gils Berrous Pierre Servant Frédéric Chenot Catherine Halberstadt Alain Denizot

102 Extensive growth potential within the second-largest banking group in France 19 Banques Populaires Two major brands: Banque Populaire and Caisse d Epargne 8,000 branches in France (1) 17 Caisses d Epargne Over 30 million retail clients (1) Over 1,500,000 professional clients (1) Over 150,000 corporate clients (1) (1) Source: Groupe BPCE NATIXIS INVESTOR DAY London November 14,

103 represented today by two regional banks 19 Banques Populaires Banque Populaire du Massif Central Chief Executive Officer Catherine Halberstadt Key figures: 85 branches 240,000 customers 900 employees Savings outstanding: 5.2 billion Loans outstanding: 4.3 billion 17 Caisses d Epargne Caisse d Epargne Nord France Europe Chairman of the Management Board - Alain Denizot Key figures: 260 branches 1.9 million customers 2,300 employees Savings outstanding: 18 billion Loans outstanding: 12 billion NATIXIS INVESTOR DAY London November 14,

104 Further growth with Groupe BPCE retail networks ~ 800m cumulative revenues realized at Groupe BPCE level between 2009 and 2013 Target: ~ 870m additional cumulative revenues from end-13 to end-17 Specialized Financial Services Investment Solutions Wholesale Banking Ambition extended in the deployment of SFS offer with Groupe BPCE retail clients Potential catch up to reach Groupe BPCE market shares Adapt offering and services Build the insurance platform for the group Further deployment of Private banking offering Provide customized solutions for retail networks corporate clients NATIXIS INVESTOR DAY London November 14,

105 Strong catalyst to enhance business with Groupe BPCE s retail clients Cumulative additional revenues with Groupe BPCE generated at Natixis level End 2009 > 400m End-Sept m End 2017 Cumulative target for 2017: ~ 800m Focus on main contributors to revenues synergies generation with Groupe BPCE Specialized Financial Services Consumer finance Factoring Investment Solutions Insurance NATIXIS INVESTOR DAY London November 14,

106 Factoring: duplicate the success in each retail network Current SMIs and professional global equipment rate (1) BP: 7% CE: 3% 2017 Targets BP: 9% CE: 5% Evolution of ceded turnover (in bn) +27% % Change in new contracts (in thousand) +43% +40% Caisse d'epargne (2) Banque Populaire (2) 2017 Additional target of 58m cumulative additional revenues to be realized by Factoring with Groupe BPCE at Natixis level (1) Active clients with poste clients > 10K or 10% in turnover (2) Estimated NATIXIS INVESTOR DAY London November 14,

107 Consumer Finance: catch the potential with core clients Current 2017 Targets A 2017 Consumer finance market share at the retail network level ~ 13% ~ 17% Cumulative net revenues generated with Groupe BPCE at Natixis level 120m 240m 68m 308m Change in new production (in bn) +50% +32% 120m Additional net revenues (1) 2013 Additional net revenues 2017 (1) Additional target of 68m cumulative additional revenues to be realized by Consumer finance with Groupe BPCE at Natixis level (1) Estimated NATIXIS INVESTOR DAY London November 14,

108 Insurance: capitalize on the networks ambition BPCE networks growth potential for Insurance is significant Natixis insurance revenues (in m) Capacity to strengthen existing growth momentum for life insurance Capacity to raise the client equipment rate in personal protection and property and casualty insurance turnover Over 4% CAGR targeted for Over 6% CAGR targeted for Natixis is ready to support the ambitions of the BP and CEP through An improved product offer: Packaged solutions for SMEs Tailored offers to meet affluent clients needs A new client driven distribution set up: Dedicated teams to support the networks affluent clients team Integrated IT tools Improved quality of support services: training, web and phone platforms, etc Natixis confirmed as the production center of insurance products for the group 2009 Additional net revenues (1) 2013 Additional net revenues 2017 In 2014, Natixis will become the single producer of property and casualty insurance for the group Natixis already main producer of group credit insurance Potential for CEP Life insurance with the ending of CNP contract (1) Estimated 2017 target: 166m of additional revenues for Natixis Assurances NATIXIS INVESTOR DAY London November 14,

109 Round table discussion NGAM multi-boutique structure Pierre Servant John Hailer Pascal Voisin

110 An organization built for growth on a global basis Natixis Global Asset Management - Holding Assets under management by geographical zone U.S. Investment Center Europe Investment Center International 319bn (51%) 15 specialized affiliates with distinctive capabilities A core/satellite model with NAM in the center and specialized boutiques US 300bn (49%) NGAM Distribution U.S. and International Distribution NATIXIS INVESTOR DAY London November 14,

111 What are our strategic priorities to achieve this plan? 1 Strengthen our global distribution set up and our US business 2 Transform our European business to become a significant player in a more integrated European market 3 Position ourselves to tap the new sources of growth in todays environment NATIXIS INVESTOR DAY London November 14,

112 We have built an efficient global investment and distribution platform that sets us apart and delivers value Global growth has been driven by a diversified multi-affiliate investment model and a diversified centralized distribution platform with more than 650 FTE all over the world $260bn (31%) of products distributed through the centralized distributed platform (1) French BDU International U.S. Retail (1) Oakland Boston M2013 (1) Including Money Market Funds for $15Bn Stockholm London Amsterdam Luxemburg Frankfurt Geneva/Zurich Paris Madrid Milan Dubaï Beijing Tokyo Hong Kong Taipei Singapore Sydney NATIXIS INVESTOR DAY London November 14,

113 NGAM U.S. Overview A diversified model for growth Our ambition is to continue to grow globally by focusing on the same principles that have driven NGAM U.S. s long-term success: An efficient, disciplined and diversified global multi-affiliate investment platform in parallel with A cost-effective, centralized distribution effort bringing Best-in-class investment product to retail and institutional investors in the U.S., Europe, Japan and other key markets worldwide NATIXIS INVESTOR DAY London November 14,

114 NGAM U.S. Overview A diversified model for growth If combined, the U.S. fund families distributed or marketed by NGAM Distribution would rank #8 among top asset gatherers for YTD flows (long term funds, $ in millions) Manager YTD Sep. ($M) 1. Vanguard Group 53, DFA 17, JPMorgan Funds 16, MFS 14, OppenheimerFunds 13, MainStay Funds 10, Goldman Sachs 9, NGAM (1) 9, John Hancock 9, Eaton 7,520 Strong presence in U.S. intermediary retail Whirehouse Fiduciary Services Independent (1) NGAM includes the assets under management in the Natixis Funds, Loomis Sayles Funds, Hansberger International Series, Aurora Horizons Fund and Oakmark Funds. Source: Strategic Insights/Simfunds - Open-end funds only, excludes ETFs, money markets and affiliated funds of funds. NATIXIS INVESTOR DAY London November 14,

115 Our diversified model has allowed us to stay relevant over multiple investment cycles We believe in the benefits of diversification and have built one of the most diversified asset management companies Our multi-affiliate model allows for multiple investment philosophies and independent thinking We are diversified by product, geography and distribution channels around the globe NGAM U.S. Net Inflows ($ in billions) straight years of positive flows 214 NGAM U.S. AUM ($ in billions) % YTD Sept Sept NATIXIS INVESTOR DAY London November 14,

116 A diversified international distribution platform structured to leverage our core competencies in new markets The foundation of our international plan is to intensify our diversification across all sales channels: Institutional: maintain our efficiency Continue to focus on large institutional clients in all countries Wholesale: strengthen and grow relationships Continue to develop relationships with home offices of global distribution firms in addition to close relationship with local offices Replicate the efforts done in the U.S. and UK/Europe in newer markets (Asia, Latin America, MENA) Retail: launch retail initiatives in selected international markets Replicate the success we had in the U.S. market that led to a more diverse mix of assets Retail efforts were launched in the UK in 2013 NGAM International Distribution Net Flows ($ in billions) NGAM International Distribution AUM ($ in billions) % 0.4 Numbers exclude French BDU YTD Sept YTD Sept NATIXIS INVESTOR DAY London November 14,

117 What are our strategic priorities to achieve this plan? 1 Strengthen our global distribution set up and our US business 2 Transform our European business to become a significant player in a more integrated European market 3 Position ourselves to tap the new sources of growth in todays environment NATIXIS INVESTOR DAY London November 14,

118 Transforming the European model: rationale Transform a centralized, family centric organization in a model able to compete globally Make clear cut choices about the expertise we are willing to develop Increase the share of distribution done outside France taking advantage of our global distribution platform Put a clear focus on innovation in order to increase the profitability of our European operations Maintain a centralized operational platform to support this development NATIXIS INVESTOR DAY London November 14,

119 Create a European multi-affiliates model. NAM Other European affiliates Fixed income 214.4bn (1) Responsible investment 3.9bn (1) European equities 18.5bn (1) Structured & volatility 15.1bn (1) Investment & client solutions 31.9bn (1) CORE Global emerging 0.9bn (1) SATELLITE NAM operational platform (Finance, HR, Risks, Compliance, Legal ) (1) As of June 2013 NATIXIS INVESTOR DAY London November 14,