#1Economic Research and Investor Relations | June 2021 Portugal 1Q'21 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 remain influenced by covid-19 measures: loans with state guarantees and moratoria Total loans (EUR bn) 217.2 215.9 219.6 219.8 4.3 4.6 212.3 1.9 YOY (%) 210.6 0.6 -0.6 -2.0 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Feb-21 Total deposits (EUR bn) 247.1 248.6 252.2 255.2 239.3 236.0 8.4 6.8 5.6 YOY 4.7 (%) 3.2 3.4 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Feb-21 Santander Source: Statistics Portugal, Ministry of Finance, Santander Portugal forecasts and estimates. Loans increased given the support measures adopted to mitigate the covid-19 effects: (i) credit lines with state guarantees for the corporate sector; and (ii) moratoria on loans to households and corporates Deposits accelerated, reflecting (i) lower spending by households, due to precautionary saving and less spending on leisure activities; and (ii) higher deposits by corporates, associated with credit lines 4#5Strategy and business 02#6Strategy and business Santander Portugal is the largest privately owned bank in Portugal by loans KEY DATA* 1Q21 YoY Var. Customer loans¹ EUR 43.0 bn +5.0% Customer Deposits² EUR 36.2 bn +3.5% Underlying att. profit EUR 34.2 mn -71.2% одо Underlying ROTE 15.9% +858 bps Efficiency ratio 34.1% -740 bps Loans market share³ 17.8% +3 bps Deposits market share³ 14.6% -90 bps B: D D 1- Loyal customers 816 k +4.4% Digital customers 970 k +21.7% Branches4 Employees 386 -19.9% 5,954 -3.5% (1) Excluding reverse repos. Santander (3) As at Dec-20 (2) Excluding repos. (4) Branches in Portugal STRATEGIC PRIORITIES Deepen the digital and commercial transformation of the Bank to make it simpler, more 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 Digitalization and customer satisfaction reflected in increased customer loyalty Loyal customers (k) 4% 816 782 Mar-20 Mar-21 Loyal / Active: 48% (+2 pp YoY) Digital customers (k) Sustained growth in the number of loyal customers (+4% YoY), supported by the continued investment and improvements in digital channels, which are being recognized by customers in terms of higher satisfaction, both at the level of ▸ Loyal individuals (+3% YoY) and in the corporate segment (+17% YoY) 797 Mar-20 970 22% Mar-21 Digital sales/total¹: 59% (+22 pp YoY) Santander (1) YTD data. · The Bank is extending its offer in digital channels, reinforcing its support to individual and corporate customers during the pandemic ▸ The number of digital customers accelerated its growth, to 970 k (+22% YoY) by the end of Q1'21 ▸ digital sales already represent 59% of total sales, an increase of 22 p Mobile customers up 33% YoY 2 pp 7#8Strategy and business Retail and digital services Awards - 2021 BEST BANK AWARD EUROMONEY PRIVATE BANKING * 2021 2021 GLOBAL FINANCE Best Private Banking in Portugal Best Bank in Portugal Individuals Santander Quero o melhor do mundo Quero o melhor do mundo Santander Quero o melhor do mundo Santander Quero o melhor do mundo Santander launched the new "Santander account", which, for a single fee, offers a wide range of services, including debit card, electronic transfers and cash withdrawals. Customers can also add the benefits of Mundo 123. Corporates AgriBusiness Solutions, with financial solutions for cash management and investment, and also non-financial solutions, including internationalization support Digilosofia Santander Wallet, always available in the smartphone, allows customers to: Send money using MB Way, without costs Make secure payments, anytime and anywhere, using contactless or QR code Insurance PROTEÇÃO AUTO MAPFRE Santander New offer in the auto insurance market, with very competitive conditions, and with three modules adjusted to customer needs, from covering the essential risks to offering a wide range of additional coverage and services Responsible banking Santander is moving faster to become carbon neutral, rolling out to its customers Biodegradable & Carbon Neutral credit & debit cards. VISA Scholarships 2021 Santander Futuro: financial support for college students Santander Women Emerging Leaders: aiming at developing leadership and negotiation skills Santander 8#9Strategy and business Further embedding ESG to build a more responsible bank Environmental: supporting the green transition Helping customers go green Biodegradable & Carbon Neutral ® credit & debit cards. Santander participated in the issuance of EUR 750 mn green hybrid debt from EDP 708 photovoltaic panels placed at the Porto University Environmental footprint -45% carbon emissions in 2020. Goal of 75% reduction in prints Carbon Neutral in our own operations Santander 100% of electricity from renewable sources Social: building a more inclusive society Talented & diverse team 2% employees 24% women in with disabilities leadership positions Financially empowering people 312k people since 2019 Supporting society 15,223 people helped in Q1'21 Support line for social sector 1,043 scholarships granted in Q1'21 Santander Golden for clients >65 who have been with the Bank for >50 years 300 suppliers certified 150 blood collections 95% local suppliers in 2020 Governance: doing business the right way A strong culture Simple, Personal, Fair Familiarly Responsible Company: degree of excellence efrA. An independent, diverse Board 43% women on the Board (1) Considering the support for vulnerable people in accessing financial services, products and financial education since 01/01/2019 9#10Strategy and business Loan growth continues to be driven by resilient new business, in mortgages and SMEs. Dynamic mortgage origination in Q1'21 Total loans (EUR bn) +5.0% +0.8% 43.0 42.5 42.7 42.1 41.0 Loans at amortised cost (Eur bn) Mar/21 YoY (%) QoQ (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Santander Individuals 23.0 +4.6 +0.9 Mortgage 20.9 +5.5 +1.2 Consumer and other 2.1 -3.7 -2.1 Corporates 16.6 +5.9 +1.3 10#11Strategy and business Higher customer funds, aligned with higher household savings. Diversification into off- balance resources Total deposits (EUR bn) +3.5% +0.6% 36.2 36.3 36.0 36.2 35.0 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Santander Mar/21 YoY (%) QoQ (%) Deposits 36.2 +3.5 +0.6 Off Balance Sheet Resources 7.6 +12.5 +4.4 Investment Funds 3.6 +33.5 +10.9 Insurance and other 4.0 -1.5 -0.8 Total Customer Funds 43.8 +5.0 +1.3 11#12Results 03#13Results Lower NII, as the spread compression on loans more than offset higher volumes, in a competitive market environment Net interest income (EUR mn) Yields and costs (%) Yield on loans 1.63% 1.57% 1.57% 202 1.51% 197 1.46% 193 195 192 Cost of deposits 0.08% 0.06% 0.05% 0.03% 0.02% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Differential 1Q20 2Q20 3Q20 4Q20 1Q21 154 bps 151 bps 152 bps 148 bps 143 bps Santander 13#14Results Net fee income flat YoY, as the decline in transactional fees is offset by higher fees in mutual funds and account fees Net fees (EUR mn) 97 91 87 99 99 97 Q1'21 Q1'20 YoY (%) QoQ (%) Credit 15 27 -43.6 -30.5 Credit cards 22 23 -3.6 -7.8 Mutual funds 8 7 +7.3 +4.6 Insurance 27 27 27 -1.5 +4.9 Other 24 11 +112.0 +25.1 Total 1Q20 2Q20 3Q20 4Q20 1Q21 Santander 97 97 97 -0.0 -2.3 14#15Results Total income improvement reflects capital gains from ALCO portfolio sales Total income (EUR mn) 354 318 305 305 421 1Q20 2Q20 3Q20 4Q20 1Q21 Santander (1) Other includes gains/losses on financial transactions and other operating income. Q1'21 Q1'20 YoY (%) QoQ (%) Net interest income Net Fees 192 202 -4.7 -1.1 97 97 -0.0 -2.3 Customer revenue Other 289 299 -3.2 -1.5 132 56 +135.6 >200 Total income 421 354 +18.7 +32.4 15#16Results Operating expenses continued to decline, reflecting the structure optimization driven by the digital and commercial transformation process Operating expenses (EUR mn) Q1'21 Q1'20 YoY (%) QoQ (%) 147 147 142 143 141 General and admin. expenses 131 134 -2.7 -2.7 Depreciation and amortization 13 13 -0.6 -3.8 Operating Expenses 143 147 -2.5 -2.8 Efficiency ratio (with amortisations) 34.1% 41.5% -7.4pp -12.3pp Branches in Portugal (#) 386 482 -96 -41 Employees in Portugal (#) 5,954 6,169 -215 -26 1Q20 2Q20 3Q20 4Q20 1Q21 Santander 16#17Results Loan-loss provisions decline QoQ, while NPL ratio continued to decline 20 20 81 Net LLPs (EUR mn) 46 46 Q1'21 Q1'20 YoY (%) QoQ (%) Net Operating Income LLPs 277 208 +33.7 +62.7 -34 -20 +72.5 -17.2 Net Operaring Income 41 after LLPs 243 188 +29.6 +88.1 34 1Q20 2Q20 3Q20 4Q20 1Q21 NPE ratio 2.6% 3.0% -0.5pp -0.0pp NPE coverage ratio 69.1% 55.9% +13.2pp +2.3pp Cost of Credit (1) 0.32% 0.20% +0.1pp -0.1pp Santander (1) Cost of credit based on 12 month loan-loss provisions divided by average customer loans. 17#18Results Attributable profit declines with a one-off charge associated with the transformation plan of the bank Attributable profit (EUR mn) 119 54 82 82 41 34 1Q20 2Q20 3Q20 4Q20 1Q21 Santander Q1'21 Q1'20 YoY (%) QoQ (%) Profit before taxes 23 167 -86.5 -59.8 Taxes and MI 12 -48 Attributable Profit 34 119 -71.2 -16.7 18#19Concluding remarks Santander Portugal maintains sustained underlying profitability. Business volumes continue to grow. Financial System Strategy & Business Results Santander Economic activity negatively affected in Q1'21 due to renewed general lockdown, but growth expected to recover from Q2 onwards ▸ Loan volumes and asset quality short term dynamics positively influenced by moratoria and by credit lines with state guarantees, but also supported by resilient new business Deposits continue to grow, aligned with higher household savings Santander Portugal maintains its support to households and companies, with market shares in new lending to corporates and mortgages over 20% in Q1'21, sustaining its strong position as the largest privately-owned bank in Portugal Santander Portugal 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, allowing us to better tackle the uncertain and challenging outlook 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 loans to individuals and companies and demand deposits Lower customer revenue still reflecting the adverse effects from the pandemic, especially in terms of NII, partly offset by lower costs ▸ LLPs decline QoQ, with the cost of credit at 32bp, while the NPL ratio continued to decline ▸ Attributable profit decreased 71% YoY, due to a one-off change associated with the transformation plan of the Bank 19#20Financial and liquidity management 04#21Deleveraging 114.2% Loans to Deposit Ratio 126.5% 117.8% 116.1% 116.2% 111.3% Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Mar-21 Santander 21 21#22Funding structure Santander Repos 0.1 ECB ΒΕΙ 0% 1.8 0.0 Securitizations. 4% .0% 0.6 EMTN'S 1% Capital+Sub. Debt 0.0 4.7 0% 10% Covered Bonds. 2.0 5% Customer Deposits. 36.6 80% As of Mar/21 22 22#23Capital ratios - ST, SGPS CET 1 - full implemented 15.2% 14.2% 14.0% 20.6% 20.1% 21.9 RWA (bn€) 20.1 18.6 18.0 17.8 Dec-17 Dec-18 Dec-19 Dec-20 Mar-21 Dec-17 Dec-18 Dec-19 Dec-20 Mar-21 Santander 23#24Benchmarking 05#25Results Resilient and sustained profitability 34 Net Income - Consolidated (M€) 60 60 101 81 71 F 34 Net Income - Domestic (M€) 60 83 51 ST Bank # Bank # Bank # Bank # ST Bank # Bank # Bank # Santander As at Mar/21 25#26Market shares Corporates - New Production 20.0% Jan/Apr 2020 18.4% Corporates - Stock Mortgages - New Production 25.2% 23.9% Jan/Apr 2021 Apr-20 17.6% 18.6% Mortgages - Stock 21.5% Apr-21 19.1% Apr-20 Apr-21 Apr-20 Apr-21 Santander 26 26#27Asset Quality Market: 4.9% as at Dec/20 2.6% 1.5% NPE Ratio 5.7% 3.6% 8.0% 69.1% 88.0% NPE Coverage Ratio 65.5% 102.5% Market: 55.4% as at Dec/20 77.0% ST Bank # Bank # Bank # Bank # ST Bank # Bank # Bank # Bank # Santander As at Mar/21 27#28Capital Santander ST 19 20.1% CET 1 (full implemented) 14.4% 12.2% 18.0% Market: 15.4% as at Dec/20 11.3% Bank # Bank # Bank # Bank # As at Mar/21 28#29Rating Portuguese Banks - Senior Debt A AL BBBH DBRS Fitch Moody's Santander Santander BBB+ Bank 3 Baa2 BBB BBB- S&P Santander BBB Bank 3 Baa3 Santander Bank 3 BBB- Bal Bank 1 | Bank 2 BB+ BBB Bank 2 BB+ Bank 2 Ba2 BBBL Bank 1 BB Bank 1 Ba3 BBH BB BBL BH BH BB- B+ B B1 62 B2 B3 Bank 4 B- Bank 5 Caal B Bank 5 CCC+ BL Santander Peer Group (Main Banks) Last update 11-Jun-2021 CCC BB Bank 1 BB- B+ B B- CCC+ Caa2 Bank 4 CCC Caa3 CCC- 29 29#30Appendix 06#31Balance Sheet Santander Santander Totta, SGPS Balance Sheet (million euros) Mar-21 Mar-20 Var. Cash, cash balances at central banks and other demand deposits Financial assets held for trading, at fair value through profit or loss, and 6,566 4,092 +60.4% 10,094 12,258 -17.7% at fair value through other comprehensive income Financial assets at amortised cost 39,998 38,063 +5.1% Investments in subsidiaries, joint ventures and associates 129 114 +13.7% Tangible assets 592 627 -5.6% Intangible assets Tax assets 38 35 +8.2% 431 544 -20.9% Non-current assets held for sale 52 46 +12.8% Other assets 227 354 -35.8% Total Assets 58,127 56,134 +3.6% Financial liabilities held for trading 835 1,094 -23.6% Other financial liabilities mandatory at fair value through profit or loss 3,215 3,245 -0.9% Financial liabilities at amortised cost 46,858 44,811 +4.6% Resources from Central Banks and Credit Institutions 7,870 6,158 +27.8% Customer deposits 36,233 35,007 +3.5% Debt securities issued 2,539 3,407 -25.5% Of which: subordinated debt 8 8 +0.0% Other financial liabilities Provisions Technical provisions Tax liabilities Other liabilities 216 239 -9.8% 427 239 -9.8% 703 718 -2.2% 376 463 -18.8% 982 1,077 -8.8% Total Liabilities 53,396 51,648 +3.4% Share capital atributtable to ST SGPS shareholders Non controlling interests 4,730 2 4,484 +5.5% 2 +3.3% Total Shareholders' Equity 4,732 4,486 +5.5% Total Shareholders' Equity and Total Liabilities 58,127 56,134 +3.6% 31#32Income Statement Santander Santander Totta, SGPS Income Statement* (million euros) Mar-21 Mar-20 Var. Net interest income (without dividends) Dividends from equity instruments 192.5 0.0 202.0 -4.7% 0.0 Net interest income 192.5 202.0 -4.7% Results from Associates Net comissions Other banking income Insurance activity Gain/loss on financial transactions Operating income Total operating expenses Personnel expenses 2.8 2.7 +3.7% 96.5 96.6 -0.0% -19.5 -16.7 +17.2% 4.3 4.0 +7.6% 144.2 65.9 +118.9% 420.8 354.5 +18.7% (143.3) (147.0) -2.5% (80.2) (84.8) -5.4% General expenses (50.4) (49.4) +2.0% Depreciation (12.7) (12.8) -0.6% Net operating income 277.5 207.5 +33.7% Impairment of financial assets at amortised cost (34.0) (19.7) +72.5% Net provisions and other results (220.9) (20.6) >200% Income before taxes and MI 22.5 167.2 -86.5% Taxes Minority interests Consolidated net income 11.7 (48.2) (0.0) (0.0) -49.7% 34.2 118.9 -71.2% 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