Natixis Combined Shareholders' Meeting will be held on May 28, 2019 at Palais Brongniart and will be required to vote the approval of the payment of a cash dividend of €0.30 per share for the financial year 2018, and of a special dividend of €0.48 in cash per share as part of the sale of the retail banking activities to BPCE S.A.

Since 2013, Natixis has committed itself to a dividend policy much in favor of shareholders. This €0.30 dividend corresponds to a payout ratio of 64%, which means that this payment is above our commitment to a 50% minimum payout. Please note that this commitment has recently been raised to 60% as part of our New Dimension 2018-2020 new strategic plan.

Agenda

• Ex-dividend date: May 31, 2019
• Dividend payment date: June 04, 2019

Net dividend per share and payout ratio

(1)  Following a 10 to 1 share split

(2)  Calculated on pro forma net result

Tax treatment for dividends

Principle

Subject to a constant legislation at the time of their taxation, the elements which are detailed hereunder are only a summary of the tax treatment usually applicable for Natixis cash dividend and special dividend payments. Shareholders will therefore have to contact their usual account manager to get confirmation of the tax system they will be submitted to.  

Natural resident shareholders

For natural shareholders with a tax residence in France who hold their shares outside a share savings plan, the received dividends (ordinary and special) are taxable on account of income tax:

– at a single flat tax rate of 12.8 % the tax base of which is the amounf of dividends before tax (article 200 A of the French General Tax Code)

– or, upon express and irrevocable option of the beneficiary at the time of his/her yearly income tax filing, the dividend is submitted to an income tax progressive rate and is eligible for tax allowance to 40% of the gross perceived amount. The option is global for the whole of the investment incomes or disposition gains taxable during the year.

Please note that upon collection, whatever the tax system of dividend on account of income tax (single flat tax rate or progressive income tax scale upon option) the paying institution based in France will also apply:

–  a compulsory 12.8 % flat-rate witholding tax as income tax advance payment, except when the beneficiary natural resident in France has filed an exemption in the terms provided for in the Article 242 quater of the French General Tax Code. The amount of this withholding tax is to be deducted from the amount of the payable tax. Whenever the withhodling tax exceeds the payable tax, the exceeding amount will be paid back.

However, natural shareholders belonging to a tax unit with a fiscal reference income for the year 2017 not exceeding 50,000 Euros for single, widowed or divorced taxpayers, or 75,000 Euros for taxpayers filing jointly are entitled to ask for a waiver of collection subject to their delivering a sworn certificate to their paying institution at the latest on November 30, 2018 (Articles 117 quater and 242 quater of the French General Tax Code).

–  social contributions withholding taxes levied by the paying agent at a 17.2 % global rate. These are to be paid even when the shareholder is exempted from the compulsory flat-rate withholding tax.

Whenever the beneficiary has submitted his dividends to the progressive rate income tax, the social contribution levy collected by the paying agent is to be partially deducted from the taxable income tax up to 6.8 points.

Legal resident shareholders submitted to corporate taxation (ordinary tax system)

For legal resident shareholders other than parent companies and subsidiaries, the dividends collected by companies submitted to corporate tax in France are considered as financial products taxable at the ordinary tax system standard rate.

In case of parent companies and subsidiaries, legal resident shareholders holding at least 5% of Natixis shares and who meet the requirements set in Articles 145 and 216 of the French General Tax Code are eligible to an exemption for dividends collected pursuant to the parent company and subsidiaries exemption regime.

However, the Article 216 of the French General Tax Code provides for standard rate reintegration in the beneficiary’s taxable profits of a portion of fees and costs fixed to a flat-rate of 5% of the collected dividends.

Dividends collected by legal shareholders will not be submitted to social contributions.

Non-resident shareholders

Natural non-resident shareholders:

The dividends paid to natural non-resident shareholders are submitted to collection at source at a 12.8 % rate, whatever the beneficiary's country of tax residence. This collection at source is to be made by the paying agent. The shareholder who is resident of a State having signed a tax convention with France that provides for the application of a more favorable rate may benefit from a reduced rate provided they comply with the terms required by Law.

Legal non-resident shareholders or foreign institutions:

Subject to special terms of tax agreements, the dividends paid to legal non-resident shreholders and to foreign institutions are submitted to a collection at source at the rate of 30%.

However, the legal non-resident or collective investment undertakings governed by foreign law (i.e. mutual funds or investment funds that show similarities with the French collective investment funds) may benefit under some conditions from a total or partial exemption of the French collection at source.

Shareholders are advised to consult their usual taxation advisor to determine whether they are eligible to a reduction or exemption of withholding tax pursuant to the provisions of French domestic law or applicable tax agreements.

Shareholders holding their shares in a PEA (Personal Equity Savings Plan)

• The ordinary and special dividends collected under a PEA are not subject to tax when the application terms of the PEA treatment are met.
• The dividends from Natixis shares are not submitted to the social contributions nor to withholding tax when distributed.
• These dividends are added to the net asset value for calculation of gain under a PEA, upon withdrawings or closure.