#1Economic Research and Investor Relations | November 2020 Portugal 9M'20 Earnings Presentation Santander#2Disclaimer Santander Totta SGPS, S.A. ("Santander Totta") cautions that this presentation contains forward looking statements. These forward looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macro-economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates, and interest rates, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties, The risk factors and other key factors that we have indicated could adversely affect our business and financial performance contained in our past and future filings and reports, including those with the Securities and Exchange Commission of Portugal. The information contained herein is in accordance with the Bank of Portugal's criteria. Unless otherwise stated, data in this presentation refers to consolidated figures for Santander Totta SGPS, the group's holding company in Portugal. BST is Santander Totta SGPS' main operating unit, aggregating the group's retail banking business in Portugal. Santander 2#3Macroeconomic environment and financial system 01#4Macroeconomic environment and financial system Credit dynamics reflect Covid-19 measures: loans with State guarantee and moratoria Total loans (EUR bn) 217.6 218.6 1.7 214.6 213.9 212.3 0.8 YOY -0.3 (%) -1.3 -1.8 Sep-19 Dec-19 Mar-20 Jun-20 Jul-20 Total deposits (EUR bn) 247.8 249.7 240.5 236.0 236.6 5.8 4.9 YOY 3.4 3.7 3.0 (%) Sep-19 Dec-19 Mar-20 Jun-20 Jul-20 Santander Source: Statistics Portugal, Ministry of Finance, Santander Portugal forecasts and estimates. Loans have increased given the support measures adopted to mitigate the COVID-19 effects: (i) around EUR 7 bn of credit lines with State guarantee for the corporate sector; and (ii) moratoria on loans to households and corporates Deposits accelerate, reflecting (i) lower spending by households, due to precautionary saving and less spending on leisure activities; and (ii) higher deposits by corporates, associated with the credit lines 4#5Strategy and business 02#6Strategy and business Santander Totta is the largest privately owned bank in Portugal by assets and loans KEY DATA* 9M'20 YOY STRATEGIC PRIORITIES Var. Customer loans¹ EUR 42.5 bn +5.4% Customer Deposits² EUR 36.3 bn +3.9% Underlying att. profit EUR 254.5 mn -34.8% Underlying RoTE 8.5% -370 bps Efficiency ratio 44.6% +10 bps Loans market share³ 3 17.9% +25 bps Deposits market share³ 15.4% -32 bps Loyal customers 800 k +3.3% Digital customers 903 k +16.8% 4 Branches 491 -8.9% Employees 6,077 -3.1% (1) Excluding reverse repos. Santander (2) Excluding repos. (3) As at Jun-20 (4) Branches in Portugal Deepen the digital and commercial transformation of the Bank to make it simpler, agile and closer to customers Maintain an appropriate risk policy, with enhanced follow-up procedures, to keep the cost of credit under control Continue focused on gaining profitable market share, improving our position as leading private sector bank and leveraging our position in the corporate sector, especially in SMEs Improve efficiency, leveraging on the digital capability to better serve customers Keep a solid capital and liquidity position, in the current challenging environment 6#7Strategy and business Reinforced focus on digital customers is supporting the increase in customer loyalty Loyal (k) 775 3% 800 Sep-19 Sep-20 Loyal / Active: 47% (+2 pp YoY) Digital customers (k) 773 17% 903 The customer oriented strategy continues to support the sustained growth in the number of loyal customers, both at the level of individuals (+3% YoY)... ... and also in the corporate segment (+7% YoY), where the evolution of loyal customers is aligned with the market shares in new lending Sep-19 Sep-20 Digital sales/total: 39% (+5 pp YoY) Santander The extensive offer of digital functionalities allowed the Bank to continue to provide its support to individual and corporate customers, during the pandemic The number of digital customers has accelerated its growth, to 903 k (+17% YoY) by the end of Q3, while digital sales represent 39% of total Mobile customers up 30% YoY 7#8Strategy and business Retail and digital services WORLD'S BEST Great Place To Work 2020 RKPLACES Awards Santander has been appointed as one the 25 "World's Best Workplace 2020" Santander Portugal is the Best Bank to Work for in Portugal Euromoney elects Santander as "Best Bank in the World for SMEs" and for "Diversity and Inclusion" Individuals Santander customers can open their 123 Account online, and request a debit card University students can also open an account online, using videocall or "digital mobile key", and request their #Global U debit card Corporates Santander Portugal provides its customers the Santander Financiamento com Garantia - Linha FEI AGRI, to provide an additional credit line to support to investments in the Agriculture sector Solução Agrofácil Financiamento em vários campos Chegou o Apple Pay Tem iPhone ou Apple Watch? Já pode fazer pagamentos de forma rápida e segura. Digilosofia 0000 Santander *Pay Digital Payments Santander Portugal's customers can securely make their payments using Apple Pay. Apple Pay is available for contactless payments using the iPhone or the Apple Watch. Customers can also pay for online shopping with the iPhone, iPad and Mac. Insurance Santander Portugal's customers can subscribe online the "SafeCare Saúde Viva Mais" health insurance, which provides additional coverage in case of serious illness. Outono mais Seguro Neste outono, proteja-se para todas as estações do ano. Santander Portugal and MAPFRE constitute a joint- venture to reinforce the offer of non-life insurance to Santander's customers, including auto and solutions for SMES Responsible banking Santander launches the first online programme of the "Bolsas Emerging Leaders", to support Women Excellence and Leadership The Santander NOVA Collaborative Research Programme awards projects related to the post-Covid-19 rehabilitation of patients and to Artificial Intelligence Santander 8#9Strategy and business We continue doing business in a more responsible and sustainable way Culture Great Place to Work Best Bank to Work in Portugal for the 4th consecutive year & Top 3 of the Best Large Companies, by the Great Place to Work Institute. Santander Portugal has renewed its certification as an Empresa Familiarmente Responsável (Familiarly Responsible Company) by the MásFamília Foundation. 24% Women in senior leadership positions 86% of employees proud to work for Santander Communities - COVID-19 initiatives Santander Portugal has supported over 120 NGOs ➤ 37,000 people helped through our community programmes. (9M'20) Since the beginning of the COVID-19 crisis, Santander Portugal has tripled its budget in CSR, namely regarding the donations to social institutions Launched 800 social grants - Bolsas Santander Futuro - aimed at helping University students affected by the Coronavirus Crisis. Santander Women Emerging Leaders Grant, a programme focused on networking and developing negotiation skills as part of the leadership trajectory Santander Green finance & Env. footprint 100% Electricity used from renewable energy sources Launched Green Mortgages. Reduction in the spread for mortgages in which the houses have the best environmental ratings. Biodegradable bank cards with the Carbon NeutralⓇ quality seal. Santander Portugal promotes sustainable mobility: minibuses for employees as well as parking space for bicycles Financial inclusion ➤ 157,613 people financially empowered (2019-H1'20) ➤ Launch of a financial literacy blog with articles on savings and investment 9#10Strategy and business Higher loans, especially to SMEs, supported by the guaranteed credit lines Total loans (EUR bn) +5.4% +1.0% 42.1 42.5 41.0 40.4 40.0 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Santander Sep-20 YoY (%) QoQ (%) Individuals 22.5 +4.0 +1.4 Mortgage 20.4 +4.3 +1.6 Consumer and other 2.1 +1.0 -0.6 Corporates 16.5 +5.1 +0.3 10#11Strategy and business Growth in the deposit base, in the context of higher savings Total deposits (EUR bn) +3.9% +0.4% 34.9 35.2 35.0 36.2 36.3 Sep-20 YoY (%) QoQ (%) Deposits 36.3 +3.9 +0.4 Off Balance Sheet Resources 7.0 -4.9 +1.4 Investment Funds 3.0 -4.4 +3.4 Insurance and other 4.0 -5.3 -0.0 Total Customer Funds 43.3 +2.4 +0.5 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Santander 11#12Results 03#13Results Lower NII, given lower Euribor rates and narrower spreads Net interest income (EUR mn) 214 213 202 197 193 Yields and costs (%) Yield on loans 1.71% 1.64% 1.63% 1.56% 1.57% Cost of deposits 0.10% 0.10% 0.08% 0.06% 0.05% Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Differential 160 bps 155 bps 154 bps 150 bps 153 bps 3Q19 4Q19 1Q20 2Q20 3Q20 Santander 13#14Results Net fee income improves in Q3'20 as economic activity began to recover Net fees (EUR mn) 97 94 94 87 22 91 3Q19 4Q19 1Q20 2Q20 3Q20 Santander Q3'20 Q3'19 YoY (%) QoQ (%) Credit 69 77 -10.1 -10.9 Credit cards 66 99 74 -10.3 +29.8 Mutual funds 22 22 19 +11.8 +5.9 Insurance Other 78 78 -0.3 +1.1 39 38 +3.5 +6.1 Total 274 286 -4.2 +5.4 14#15Results Total income declined YoY due to impact of the pandemic in NII and net fee income, although customer revenue stabilises in Q3'20 Total income (EUR mn) 354 317 324 305 305 3Q19 4Q19 1Q20 2Q20 3Q20 Santander (1) Other includes gains/losses on financial transactions and other operating income. Q3'20 Q3'19 YoY (%) QoQ (%) Net interest income Net Fees 594 644 -7.9 -3.2 274 286 -4.2 +5.4 Customer revenue 868 931 -6.8 -0.6 Other 96 90 +7.2% +37.5% Total income 964 1,021 -5.5 +1.6 15#16Results Costs dropped 5% driven by the ongoing transformation process Operating expenses (EUR mn) Q3'20 Q3'19 YoY (%) QoQ (%) General and admin. 151 151 147 142 141 expenses 391 417 -6.3 +0.8 Depreciation and amortization 39 37 +6.3 +1.4 Operating Expenses 430 454 -5.3 +0.9 Efficiency ratio (with amortisations) 44.6% 44.5% +0.1pp +1.0pp Branches (#) 491 539 -48 -26 Employees (#) 6,077 6,271 -194 -194 3Q19 4Q19 1Q20 2Q20 3Q20 Santander 16#17Results Continued preemptive reinforcement of LLPs, despite the lower NPL ratio Net LLPS (EUR mn) 20 20 81 Q3'20 Q3'19 YoY (%) QoQ (%) Net Operating Income LLPs 525 560 -6.2 +1.2 -147 16 -43.7 Net Operaring Income after LLPs 379 576 -34.2 +47.4 46 9 0 3Q19 4Q19 1Q20 2Q20 3Q20 Santander NPE ratio 2.8% 3.2% -0.5pp -0.0pp NPE coverage ratio Cost of Credit (1) 64.5% 52.0% +12.5pp +3.4pp 0.38% -0.04% (1) Cost of credit based on 12 month loan-loss provisions divided by average customer loans. 17#18Results Underlying attributable profit declined 35% YoY, reflecting Covid-19 related impacts on revenues and provisions Attributable profit (EUR mn) 115 137 119 54 Q3'20 Q3'19 YoY (%) QoQ (%) Profit before taxes 349 551 -36.6 +82.6 82 Taxes and MI 95 160 -40.9 > 200 Attributable Profit 254 391 -34.8 +51.1 3Q19 4Q19 1Q20 2Q20 3Q20 Santander 18#19Concluding remarks Resilient results and higher business volumes, despite the challenging environment Financial System Economic activity is recovering at a gradual pace, with Q3 GDP showing improvement, but still differentiated between sectors. Europe has approved a relevant support package, but it should be operational only in 2021-22 Loan volumes and asset quality short term dynamics positively influenced by the moratoria. Strategy & Business Santander Totta maintains its strong position as the largest privately-owned bank in Portugal, with its market share in new lending to corporates and mortgages at around 20%. Santander Totta remains focused on its digital transformation process, including continuous deliveries on digital channels and simplification of internal processes and commercial offering. Sound capital and liquidity bases, which allows us to better tackle the current uncertainty and challenges and to continue supporting our customers. In addition, we maintained the best risk ratings by the rating agencies, aligned with or above the sovereign's. Growth in loans and deposits, boosted by the sustained growth in individuals and companies loans and demand deposits. Results Santander Lower total income due to adverse effects from the pandemic, partly offset by lower costs. Preemptive increase of LLPs, while the NPL ratio continues to decline. ‣ Underlying attributable profit declined 37%, impacted by lower NII and higher LLPs. 19#20Financial and liquidity management 04#21Deleveraging Santander 114.2% Loans to Deposit Ratio 126.5% 117.8% 114.0% 114.7% 111.3% Dec-16 Dec-17 Dec-18 Dec-19 Jun-20 Sep-20 21 21#22Funding structure Repos ECB BEI 0.7 1.9 0.3 1% Securitizations. .4% 1% 0.6 EMTN's 1% 0.0 Q% Covered Bonds 2.8 Santander 6% Customer Deposits 36.6 77% Capital+Sub. Debt 4.6 10% As of Sep/20 22 22#23Capital ratios ST, SGPS CET 1 - phasing in 15.8% 15.4% 14.2% 14.6% 21.3% 18.3 RWA (bn€) 21.9 20.1 18.5 17.3 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 CET 1 - full implemented 15.1% 15.2% 14.2% 14.0% 20.3% Dec-16 Dec-17 Dec-18 Dec-19 Sep-20 Santander In Dec/17 impact of Popular Portugal integration 23#24Benchmarking 05#25Results ST continues to stand out vis-à-vis its competitors, in terms of recurrent domestic activity 254 Net Income - Consolidated (M€) ST 15 11 47 146 378 -1,009 254 Net Income - Domestic (M€) 47 47 92 22 309 n.a. Bank # Bank # Bank # Bank # ST Bank # Bank # Bank # Bank # Santander As at Sep/20 25#26Market shares Corporates - New Production 19.7% Jan/Sep 2019 17.9% Corporates - Stock Mortgages - New Production 17.5% 19.9% Jan/Sep 2020 Sep-19 17.9% 18.2% Mortgages - Stock 24.8% Sep-20 18.9% Sep-19 Sep-20 Sep-19 Sep-20 Santander 26 26#27Asset Quality Market: 6.5% as at Jun/20 2.8% 1.9% NPE Ratio 7.0% 4.2% 9.7% NPE Coverage Ratio 68.0% 64.5% 60.9% Market: 53.1% 89.2% as at Jun/20 76.3% ST Bank # Bank # Bank # Bank # ST Bank # Bank # Bank # Bank # Santander As at Sep/20 27#28Capital Santander ST 19 20.3% CET 1 (full implemented) 13.9% 12.4% 17.2% Market: 14.6% as at Jun/20 12.0% Bank # Bank # Bank # Bank # As at Sep/20 28#29Rating Portuguese Banks - Senior Debt A Al BBBH DBRS Santander BBB+ Fitch Moody's Santander Baa2 BBB Bank 3 | BBB- S&P Santander BBB Santander Bank 3 Baa3 Bank 3 BBB- Bal Bank 1 | Bank 2 BB+ BBB Bank 1 BB+ Bank 1 Ba2 BBBL Bank 2 BB Bank 2 Ba3 BBH BB BBL BB- B+ B B1 B2 B3 BB Bank 2 BB- B+ B B- BH Bank 4 B- Bank Caal Bank 5 CCC+ B Bank 5 CCC+ BL Santander Peer Group (Main Banks) Last update 26-Oct-2019 CCC Caa2 Bank 4 CCC Caa3 CCC- 29 29#30Appendix 06#31Balance Sheet Santander Santander Totta, SGPS Balance Sheet (million euros) Sep-20 Sep-19 Var. Cash, cash balances at central banks and other demand deposits Financial assets held for trading, at fair value through profit or loss, and at fair value through other comprehensive income Financial assets at amortised cost 5,366 2,702 +98.6% 12,380 11,210 +10.4% 39,830 40,601 -1.9% Investments in subsidiaries, joint ventures and associates Tangible assets 111 110 +1.0% 623 668 -6.8% Intangible assets Tax assets 40 32 +26.3% 635 691 -8.1% Non-current assets held for sale 58 50 +14.3% Other assets 280 832 -66.4% Total Assets 59,322 56,895 +4.3% Financial liabilities held for trading 913 1,224 -25.4% Other financial liabilities mandatory at fair value through profit or 3,238 3,461 -6.4% Financial liabilities at amortised cost 47,905 45,089 +6.2% Resources from Central Banks and Credit Institutions 8,024 6,399 +25.4% Customer deposits 36,301 34,932 +3.9% Debt securities issued 3,328 3,451 -3.5% Of which: subordinated debt 8 8 +0.0% Other financial liabilities Provisions Technical provisions Tax liabilities 252 307 -18.0% 210 263 -20.2% 727 764 -4.9% 473 493 -4.1% Other liabilities 1,239 1,206 +2.7% Total Liabilities 54,705 52,500 +4.2% Share capital atributtable to ST SGPS shareholders 4,615 4,393 +5.0% Non controlling interests 2 2 -9.6% Total Shareholders' Equity 4,617 4,395 +5.0% Total Shareholders' Equity and Total Liabilities 59,322 56,895 +4.3% 31#32Income Statement Santander Santander Totta, SGPS Proforma Income Statement* (million euros) Net interest income (without dividends) Sep-20 Sep-19 Var. 591.9 642.7 -7.9% Dividends from equity instruments Net interest income 1.7 1.8 -1.7% 593.7 644.5 -7.9% Results from Associates 9.1 7.0 +28.5% Net comissions 274.4 286.5 -4.2% Other banking income -27.7 -24.3 +13.9% Insurance activity 11.7 18.5 -36.9% Gain/loss on financial transactions 103.0 88.4 +16.6% Operating income 964.1 1,020.5 -5.5% Total operating expenses (429.8) (453.7) -5.3% Personnel expenses (241.6) (260.5) -7.3% General expenses Depreciation (149.1) (156.4) -4.7% (39.2) (36.8) +6.3% Net operating income 534.4 566.9 -5.7% Impairment (146.5) 16.1 Net provisions and other (38.8) (32.4) +19.9% Income before taxes and MI 349.0 550.5 -36.6% Taxes (94.4) (159.8) -40.9% Minority interests (0.1) (0.2) -41.3% Consolidated net income 254.5 390.6 -34.8% (*) Not audited 32#33Thank you. Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be: Simple Personal Fair Santander MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM FTSE4Good