#1Strategic and Financial Analysis. Financial Division 20 Institutional 20 Presentation All. Together. Now. Santander#2Index 1 Our business model and strategy 2 Group structure and businesses 3 2020 results & activity 4 Medium-term targets and key takeaways 5 Links to Grupo Santander public materials Santander %#3Santander 1. Our business model and strategy#40 • Santander, a leading financial group 2020 Highlights Total assets (EUR billion) 1,508 Customer loans (EUR billion excluding reverse repos) 904 Customer deposits + mutual funds (EUR billion excluding repos) 980 Branches 11,236 ☐☐☐ 2020 Net operating income (pre-provision profit) (EUR million) 23,633 2020 Underlying attributable profit (EUR million) 5,081 Market capitalization (EUR billion; 31-12-20) 44 People (headcount) 191,189 Customers (millions) 148 0 Shareholders (millions) 4.0 Communities in 2019-2020 (million people financially empowered) 4.9 Santander Note: 2020 attributable profit of -EUR 8,771 million The Santander Way remains unchanged, continuing to deliver for all our stakeholders An engaged and motivated team ... ... generates customer loyalty... 0 0 DA People Customers We create value for all our stakeholders 00 Communities so we can support our communities. Simple Personal Shareholders ... leading to strong financial results for our shareholders... Fair#5Our corporate culture: Santander Way We continue to do business in a more responsible and sustainable way OUR PURPOSE To help people and businesses prosper OUR AIM AS A BANK To become the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities ♡ Everything we do should be OUR HOW Simple Personal Fair Santander LO 5#6Santander business model Our business model drives predictable and profitable growth 1 SCALE 2 CUSTOMER FOCUS 3 DIVERSIFICATION Santander Local scale and global reach Unique personal banking relationships strengthen customer loyalty Our geographic and business diversification makes us more resilient under adverse circumstances 6#71 Scale Market shares Local scale based on three geographic regions with global reach backed by our global businesses North America Europe 3% Loans 10% Loans 2% Deposits 8% Deposits 12% Loans Top 5 in retail 18% 11% Deposits auto lending Loans 13% 15% Loans Deposits SCF Top 3 auto finance 17% Loans 18% Deposits South America 13% Deposits 10% Loans 18% Loans 11% Deposits 17% Deposits 11% Loans 11% Deposits We maintain a leadership position Santander in our 10 core markets Global businesses Santander Corporate & Investment Banking SCIB Wealth Management & Insurance WM&I Enabling greater collaboration across the Group to generate higher revenue and efficiencies Market share data: as at Sep-20 and Argentina, USA and SCF latest available. Spain includes Santander España (public criteria) + Openbank + Hub Madrid + SCF España, and Other Resident sectors in Deposits. The UK: includes London Branch. Poland: including SCF business in Poland. The US: in all states where Santander Bank operates. Brazil: deposits including debenture, LCA (agribusiness notes), LCI (real estate credit notes), financial bills (letras financeiras) and COE (certificates of structured operations) 7#82 Customer focus Customers by market, Dec-20 Customer satisfaction is essential to build loyalty Argentina 3% Chile 2% Others 2% Spain 9% SCF 12% Brazil 33% በዳ UK 17% Poland 4% Mexico 13% Portugal 2% US 3% 148 million customers, in markets with a total population of more than one billion Top 3 in NPS1 in 6 countries The trust and loyalty of our customers are the most important assets for Santander Santander (1) NPS Net Promoter Score. Customer Satisfaction internal benchmark of active customers audited by Stiga / Deloitte 8#92 Customer focus Unique personal banking relationships with over 100,000 people talking to our customers every day in our branches and other customer support services 32% 22.8 mn (+6%) Loyal/active Loyal customers customers Available anytime, anywhere, anyhow Customer support services Collaborative spaces and increased digital capabilities 20.9 mn (+6%) Individuals 1.9 mn (+8%) Companies Santander Note: data as of Dec-20 and year-on-year changes (1) Excluding Chinese banks and Sberbank of Russia Branches: >11,000 The largest branch network in the international banking world1 i ↓ T www WORK CAFÉ CAFE/ SANTANDER Santander Smart and Ágil branches guridad y 9#102 Customer focus Digital adoption has accelerated resulting in increased mobile customer base and digital sales penetration 42.4 mn (+15%) Digital customers1 35.3 mn (+21%) Mobile customers Digital technology boosting financial access 44% Digital sales² as % of total sales Santander Traditional banking Branches, ATMs, retail agents, ... Digital banking Internet, mobiles, tablets, smartphones and smartwatches... +25% YoY # Accesses³ (online & mobile) +27% YoY # Transactions4 (monetary & voluntary) Guaranteeing access for all segments ● Sparsely populated communities Low-income communities ● Most vulnerable groups O University students Note: data as of 2020 and year-on-year changes (1) Every physical or legal person, that, being part of a commercial bank, has logged in its personal area of internet banking or mobile phone or both in the last 30 days (3) Percentage of new contracts executed through digital channels Private accesses. Logins of bank's customers on Santander internet banking or apps. ATM accesses by mobile are not included (4) Customer interaction through mobile or internet banking which resulted in a change of balance. ATM transactions are not included 10#113 Diversification Geographic diversification in three regions, with a good balance between mature and developing markets Contribution to 2020 underlying attributable profit¹ Dec-20 Group's contribution² by regions Brazil; 30% Spain; 7% (€ Customer funds South America 16% SGP 1% Europe 71% Customer loans SCF; 15% South America 42% Europe 37% UK; 8% South America 14% Chile; 6% North America 21% Portugal; 5% Argentina; 3% Poland; 2% North America 13% Europe 73% North America 12% US; 10% Other South America; 3% Mexico; 11% Well-balanced profit distribution between Europe and the Americas. SCIB and WM&I contribution: 38% Santander Higher exposure in Europe, greater opportunity to grow in the Americas (1) As a % of operating areas, excluding Corporate Centre and Santander Global Platform (2) As a percentage of operating areas Note: customer loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 11#123 Diversification Business diversification among customer segments (individuals, SMEs, corporates and large corporates) Customer loans by business, Dec-20 Customer funds by business, Dec-20 Other individuals, 9% Home mortgages, 36% SCIB, 13% Corporates, 12% Loans SMEs, 13% Consumer, 17% SCIB, 11% Individuals demand deposits, 39% Corporates, 14% (€ Customer funds SMES, 11% Consumer, 4% Individuals time deposits, 8% Individuals mutual funds, 13% Santander Note: customer loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 12#13The strength of our model drives resilient results ... Recurring pre-provision profit with the lowest earnings per share volatility Pre-provision profit, EUR bn EPS volatility calculated using quarterly data from Jan-99 to Q3'201 24 24 24 23 23 24 25 26 26 23 20 18 20 24 24 672% 332% 118% 104% 84% 82% 70% 43% 41% 37% 12% + + 0 0 3x 3x 1x 1x 7x 4x 8x 5x 2x 10x วล 5x 2.49% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pre-provision profit/loans 3.03% 3.28% 3.26% 3.25% 3.06% 2.94% 3.04% 2.90% 2.83% 2.97% 2.89% 2.80% Cost of credit 2.44% 1.69% 1.02% 1.36% 1.40% 1.65% 1.43% 1.25% 1.18% 1.07% 1.00% 1.00% 1.28% risk pro Everyone's business Santander Net profit increase 1999-2019 (1) Source: Bloomberg, with GAAP criteria. Standard deviation of the quarterly EPS starting from the first available data since Jan-99 13#14... and we will also continue to improve capital allocation focusing on higher growth opportunities Disciplined capital allocation High RoRWA organic growth Primarily in Americas Fee income businesses Santander of Tomorrow SCIB, Wealth Management, Payments Software One Santander, PagoNxt and Digital Consumer Bank EPS + TNAVPs growth Dividend growth (40%-50%¹ cash payout) Santander (1) The board's intention is to restore in the mid-term a payout of 40-50% of the underlying profit. With respect to the remuneration against 2021 results, the intention is, in line with the announcement made in April 2020, to maintain the suspension of the dividend policy while the ECB 2020/63 recommendation of December 15th applies. 14#15The Group's medium-term strategy is based on three priorities for profitable growth: The Santander of Tomorrow 1 2 3 ONE SANTANDER New operating model leveraging our global scale to deliver a better customer experience, supported by common culture and higher degrees of commonality, technology being one PAGONXT Our Group technology "backbone" solutions with payments at the core DIGITAL CONSUMER BANK Openbank and SCF driving profitable growth in Europe and new markets 1 2 3 Building on our technology to strengthen our customers' loyalty and access new fee-based revenue pools Santander 15#16One Santander: creating a better bank for our customers with a new operating model ... Improving our customer service... . strengthening our relationship with customers... Simplify mass market value proposition Medium term goal: Top 3 NPS in 9 countries Santander New distribution model by creating a common operating model Shared processes and best-in-class technology Medium term goal: Digital sales/total >50% Medium term goal: Efficiency ratio c.40% 16 One Santander#17... will deliver customer growth and higher productivity Medium-term goals • Europe¹ • Focus on capital-efficient growth opportunities Leverage PagoNxt global solutions with particular focus on SMEs and merchants Re-invent our branch network (Work-Cafés), expand Santander Personal, deploy common mobile app Underlying RoTE: 10-12% Efficiency ratio: c.45% North Expand collaboration to Commercial Banking, Auto and other retail segments Underlying RoTE²: 11-13% America Build shared services Efficiency ratio: c.40% Expand Getnet and Superdigital South Underlying RoTE: 19-21% Common operating model for Consumer Finance America Focus on revenue growth opportunities (e.g. Agribusiness) Efficiency ratio: c.35% Santander (1) Excluding SCF+Openbank, which would have an efficiency ratio of c.39% and a ROTE of 13%-15%. Europe, including SCF+Openbank, would have an efficiency ratio of c.43% and a ROTE of 12%-13%. (2) Adjusted ROTE for excess capital in the US 17 One Santander#18PagoNxt is our global payments company providing services to SME/Merchant and Consumers, leveraging our scale and technology Payments is a sizeable and fast growth market... Merchant Acquiring +11% Expected annual growth in e-commerce International Trade +3% Annual growth international trade Santander (1) As of 2019 EUR 80 bn Merchant acquiring global revenue pool EUR 350 bn International trade revenue pool1 ... in which Santander already has significant scale PagoNxt >1.1 mn Active Merchant business customers >4 mn Group SME customers c.60 mn Active credit and Debit cards >200 k Group SME customers trading int. 18 PagoNxt#19PagoNxt offers SMEs cutting-edge digital Merchant and Trade solutions '18-'20 growth Active customers Market share Merchant Solutions Getnet⠀ Merchant Spain +76% +88% From 506k to 891k +25% From 69k to 130k +40% From 12% to 15% From 12% to 17% Trade Solutions We have made significant investments in 4 key assets which strengthen our trade offering One Trade Ebury E-commerce market share 22% 9% Accelerating with Wirecard assets PaymentsHub mercury We have already onboarded C.300k customers PagoNxt will help Santander banks deliver payment solutions seamless, faster and better value Santander 19 PagoNxt#20Our Digital Consumer Bank: building on a strong foundation C Global consumer financing A Openbank business serving offline and e-commerce merchants >55k Merchant POS c. EUR 20 bn Loans Digital Banking APIs (SaaS model) Santander Largest full-service global digital bank in the world 1.2 mn Customers c. EUR 10 bn Deposits + 6 mn new consumers /yr in 15 markets Low-cost funding for loan growth B Santander Auto Auto loan and leasing business serving OEMs and dealers Digital Consumer Bank >75 k Dealer & OEM POS c. EUR 85 bn Loans Openbank technology and data capabilities grow revenues by adding services and improving productivity 20 20#21Our ambition: to grow revenues and x2 PAT¹ in the medium term and build the most innovative consumer lending business in Europe Great potential... Santander Consumer Finance BO Openbank c.18 mn Active customers 4.5 Avg. products per customer ... to build a new paradigm... ■ Common apps, data and systems infrastructure across regions ■ Single streamlined operating model across auto, consumer lending and retail in 15+ countries Simplified license and common compliance model ■ New auto, consumer lending and retail banking country launches ... and deliver strong financial results Medium-term goals c.15% Underlying ROTE 39% Efficiency ratio Digital Consumer Bank Santander (1) Underlying 21#22и тагета RVICIOS ICCION CIONES/ DISEÑO Santander bga 71 Bathoge 2. WORK CAFE SANTANDER Group structure and ⚫ businesses#23Leveraging One Santander to accelerate the execution of our strategy • Three geographic regions (with 10 core markets) to improve operating performance • Global businesses to enhance our local scale with global reach and collaboration • The Corporate Centre and other Group functions servicing the whole Group Group organizational and management structure¹ Operating areas North America South America Europe² 10 core markets Other Europe Global businesses Santander Corporate & Investment Banking Santander Wealth Management & Insurance Group functions and Corporate Centre activities Audit Compliance Risk Universities Communication, Corporate Marketing and Research Costs General Secretariat Human Resources Technology & Operations Financial Accounting Finance & Control Santander (1) December-20. Pending restatement in 2021 to incorporate PagoNxt and Digital Consumer Bank (DCB) (2) Includes One Europe (Spain, United Kingdom, Portugal and Poland), SCF and Other Europe (mainly SCIB) Strategy, Corporate Dev.& Financial Planning Exec. Chairman's Office & Responsible Banking 23#24Three geographic regions (with 10 core markets) North America Santander South America Europe Santander Corporate & Investment Banking Santander Wealth Management & Insurance Group functions and Corporate Centre activities 24 24#25EUROPE One Santander, whose first focus is Europe, is accelerating our business transformation in the region, to achieve superior growth under a more efficient operating model Other Europe 2020 Highlights Strategic priorities Branches 4,846 MA Employees 83,976 Loyal customers (mn) 10.0 With the aim of accelerating transformation, increasing volumes and having a more efficient business model, the priorities for the region in 2021 are to: Transform how we manage our mass-market business, simplifying our value proposition and improving customer experience, through the creation of Regional Business Owners Digital customers (mn) 15.2 Leverage our global businesses (SCIB and WM&I) and the connection with Pago Nxt to accelerate profitable growth in the region Customer loans (EUR bn) 658 Customer funds (EUR bn) Accelerate our digital agenda, with a common mobile experience across the region 696 Underlying attributable profit (EUR mn) 2,656 Underlying ROTE Deliver a significant share of the EUR 1 billion additional cost savings commitment for the next two years, transforming our operating model 5% Excel in risk management, maintaining and reinforcing our balance sheet strength Contribution to Group's profit 37% Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 25 SCF#26☐ Spain Santander España remains committed to maintaining its leadership by supporting individual customers, SMEs and Corporates, especially to overcome the covid-19 crisis 2020 Highlights Strategic priorities Continue to develop our distribution, operational and organizational model to reduce costs and accelerate our digital transformation Boost revenue by focusing on developing the corporate segment and improving offer for individuals and customer experience. Also, strengthen our leadership position in Private Banking and CIB Branches 2,939 MA Employees 26,961 Loyal customers (mn) 2.6 2 Digital customers (mn) 5.2 Customer loans (EUR bn) 201 Customer funds (EUR bn) 321 Underlying attributable profit (EUR mn) 517 Underlying ROTE 3% Contribution to Group's profit 7% Optimize capital use, focusing on value-added segments and higher profitability products Adapt the risk management model and policies, strengthening the recovery management model and mitigating operational risks Bloomberg Gender Equality Index top EMPLOYERS INSTITUTE PRIVATE BEST P EUROMONEY PRIVATE BANKING 2020 BANK AWARD 2027 GLORAKO FINANCE LaLiga Santander One Pay FX Smart Bank Santander One Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 26#27United Kingdom Uniquely placed as the leading UK scale challenger bank with an innovative value proposition for retail customers and small businesses Branches MA Employees Loyal customers (mn) 2 Digital customers (mn) Strategic priorities Deliver growth through customer loyalty and outstanding customer experience YourMortgage 2019-2020 2020 Highlights 564 22,931 4.5 AWARDS 6.3 Simplify and digitalize the Customer loans (EUR bn) business to improve efficiency and returns 242 CLIMATE ACTION 2019 Customer funds (EUR bn) 223 TCFD Underlying attributable profit (EUR mn) 530 Engage, motivate and develop a talented and diverse team TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES Underlying ROTE 4% Contribution to Group's profit 8% Be a responsible and sustainable business FINANCE INITIATIVE UNEP PRINCIPLES FOR RESPONSIBLE BANKING Best First-time Chat with us Buyer Mortgage Lender 2019-2020 Santander WORK CAFE P SANTANDER 唱 Winners 123 Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 27#28Portugal Santander Portugal is the country's largest privately-owned bank by assets and loans 2020 Highlights Strategic priorities Branches 477 Further the digital and commercial transformation, to make it simpler, more agile and closer to customers MA Employees 6,336 Loyal customers (k) 812 Grow organically in terms of profitable market share, improving 2 our lending leadership position and Digital customers (k) 930 leveraging our position in the Corporate and SME segments Customer loans (EUR bn) 39 Customer funds (EUR bn) Underlying attributable profit (EUR mn) 338 Improve efficiency backed by our digital capabilities to better serve our customers 43 Underlying ROTE 9% Contribution to Group's profit 5% BANK EUROMONEY Digilosofia AWARDS FOR EXCELLENCE 2020 A filosofia digital do Santander WARD 2020 GLOBAL FINANCE 9=00 Santander Maintain an appropriate risk policy to maintain a low cost of credit, whilst maintaining a strong capital and liquidity position WORLD FINANCE BEST RETAIL BANK, PORTUGAL 2020 SANTANDER Santander | Boutique Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 28 Pay#29Poland Santander is the third largest bank in Poland, maintaining its position of the best traditional, private banking and investment bank in the country Branches MA Employees Strategic priorities Simplify the structure, based on the One Purpose - One Process approach of One Santander #1 in mobile banking EUROMONEY AWARDS FOR EXCELLENCE Pay blik 2020 2020 Highlights 502 10,582 Loyal customers (mn) 2.1 2 Digital customers (mn) be among the Top 3 in NPS 2.8 Customer loans (EUR bn) 29 Improve customer satisfaction to top EMPLOYER EUROPE 2020 CERT FIND DICELLENCE INHEMBLEWET CONDITIONS PREMIUM EMPLOYER BRAND ( HCE G Pay Customer funds (EUR bn) 39 Underlying attributable profit (EUR mn) 162 Increase profitability through effective net interest income management, higher fee income and cost control top EMPLOYER POLSKA POLAND 2020 CERTIFIED EXCELLENCE IN EMPLOYEE CONDITIONS D GARMIN PAY fitbitpay Underlying ROTE² 10% Contribution to Group's profit 2% Strengthen our employees' skills to support the transformation of Santander Polska NAJLEPSZY BANK % DLA FIRM Forbes przyjazny bank Newsweeka iBiznes24 WORK CAFÉ P SANTANDER Santander (1) Third largest bank in Poland in terms of assets as of Sep-20 (2) ROTE adjusted for excess capital. Otherwise 5% Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 29#30e-commerce open platform →Santander Consumer Finance Our vision is to build a global digital consumer lender on the shoulders of the existing SCF footprint and the technology of Openbank's digital platform: Digital Consumer Bank DCB Strategic priorities Help our partners with digitalization and transformation, proactively manage brand agreements and develop digital projects in all business lines Countries: ● Austria O Belgium ● Denmark O Finland O France O Germany Italy SCF 2020 Highlights Branches 352 00 MA Employees 14,376 Active customers (mn) 17.6 Point of sales (k) c. 130 Execute the strategic operations initiated in 2020 to maintain high profitability and best-in class efficiency Customer loans (EUR bn) 104 Customer funds (EUR bn) 39 Accelerate combined business digitalization to drive sustainable long-term growth Underlying attributable profit (EUR mn) 1,085 Underlying ROTE 13% Define and begin executing the path to convert creditors into full customers taking advantage of SCF's lead ● Sweden Contribution to Group's profit 15% generation power and Openbank's retail banking platform ● Switzerland O The Netherlands The United Kingdom¹ ● Norway O Poland ● Portugal O Spain top EMPLOYER GWIAZDY BANKOWOŚCI EUROPE 2020 CERTIFIED EXCELLENCE IN EMPLOYEE CONDITIONS GU Santander (1) UK data included in Santander UK Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 30#31NORTH AMERICA Investing together to improve commercial capabilities 2020 Highlights Strategic priorities Branches 1,958 While focusing on further developing the USMX trade corridor, the priorities in the region will be to: MA Employees Loyal customers (mn) 38,371 3.9 Boost the execution of our regional collaboration strategy, increasing our common value proposition and profitability, while we continue to leverage our global presence 2 Digital customers (mn) 6.0 Consolidate regional IT under a single leadership Customer loans (EUR bn) 121 Customer funds (EUR bn) 118 Continue to reduce duplications in the operating model, platform and architecture Underlying attributable profit (EUR mn) 1,492 Underlying ROTE¹ Optimize expenses, in part through third party cost optimization 11% Continue to boost our remittance service to drive new customer acquisition Contribution to Group's profit 21% Santander (1) Underlying RoTE adjusted for excess capital. Otherwise 7% Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 31#32United States Santander US combines a strong depositary base in the Northeast with its nationwide auto finance, wealth management and corporate banking capabilities Strategic priorities Execute digital and branch transformation initiatives to improve customer experience and the profitability of the CBB 2020 Highlights Branches 585 MA Employees 16,125 Loyal customers (k) 347 Digital customers (k) 1,011 Customer loans (EUR bn) 90 Customer funds (EUR bn) 77 Adapt business strategy to mitigate revenue impact from lower rates Continue leveraging the capabilities of the auto finance business and interconnectivity of CIB and Wealth Management Santander' 5522 8512 345 7890 106/16 LEEM CARDHOLDER Underlying attributable profit (EUR mn) 731 Underlying ROTE¹ 8% Manage costs to improve efficiency Contribution to Group's profit 10% Santander (1) Underlying RoTE adjusted for excess capital. Otherwise 5% Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 32#332020 Highlights Branches 1,373 MA Employees 22,246 Mexico Santander México, one of the leading financial group in the country, focused on commercial transformation and innovation Strategic priorities To become the leading bank in terms of customer experience, leveraging new tools and process improvement Loyal customers (mn) 3.6 2 Digital customers (mn) 5.0 Maintain strong growth rates in loyal customers, as well as increase presence in high-potential businesses Hipoteca SUPER EMPRESAS EXPANSION 2020 ТЭР companies. FREE Customer loans (EUR bn) 30 Customer funds (EUR bn) 41 Strengthen our corporate business to maintain our position as market leaders in value-added products Underlying attributable profit (EUR mn) 762 Underlying ROTE 14% Contribution to Group's profit 11% Accelerate technological transformation and digitalization, by increasing our capabilities to improve the operating model, IT performance and information security Best Bank for Financial Inclusion tuiio® FINANZAS DE TÚ A TÚ FR FR VISA Santander Plus SuperNET SuperMóvil Súper Wallet Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 33#34SOUTH AMERICA Natural reweighting and high profitable growth opportunity 2020 Highlights Strategic priorities The Group's priorities in the region are to: Branches 4,431 MA Employees 65,252 Loyal customers (mn) 8.6 Accelerate profitable growth, with a strategy that seeks to boost conectivity across South America through regional projects 2 Digital customers (mn) 20.2 Customer loans (EUR bn) 119 Continue to progress in digital transformation through the development of digital platforms and a more efficient model Customer funds (EUR bn) 153 Underlying attributable profit (EUR mn) 2,927 Underlying ROTE Maintain the strong growth of loyal and digital customers 18% Conduct strict risk controls regarding the impact of covid-19 Contribution to Group's profit 42% Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 34#35Brazil 2020 Highlights Branches 3,571 MA Employees 43,258 Loyal customers (mn) 6.4 2 Digital customers (mn) 15.6 Customer loans (EUR bn) 67 Customer funds (EUR bn) 100 Santander Brasil has a solid strategy, which benefits from being part of a large international Group Strategic priorities Anticipate trends through our capacity to capture business opportunities in different scenarios Increase customer base maximizing transactionality across our new businesses, while we improve and redefine the banking experience Grow the high credit quality portfolio through the expansion of core business and the consolidation of new businesses GUIA exame Diversidade 2020 Melhores Empresas para Trabalhar Étnico-Racial Great Place To Work. BRASIL 2020 Underlying attributable profit (EUR mn) 2,113 Melhores Empresas para Trabalhar Improve operational efficiency, Mulher одо Underlying ROTE 19% enhancing the high productivity culture, whilst maintaining Great Place To Contribution to Group's profit 30% profitability levels by adapting and innovating rapidly BRASIL Work 2020 Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds (1) Pending regulatory aproval ben TORO Combined business¹ sim Gent& Santander 35#36Chile Santander Chile is the country's leading bank Branches MA Employees 2020 Highlights 346 Strategic priorities Maintaining our leadership position in local banking in an increasingly 10,835 dynamic economic environment Loyal customers (k) 764 2 Digital customers (k) 1,547 Customer loans (EUR bn) 41 Continuing to progress in our technological developments in order to improve efficiency #1 NPS BEST DIGITAL BANK CHILE 2020 10TH YEAR GLOBAL LANUNG & FINANCE AWARDS Banco Santander Chile Finance review WORK CAFE SANTANDER Paga con la nueva Pulsera Chip Dow Jones Sustainability Indexes Customer funds (EUR bn) 38 Underlying attributable profit (EUR mn) 432 одо Underlying ROTE 13% Contribution to Group's profit 6% Expanding our digital platforms such as Life and Superdigital, improving our customer service indicators, and increasing loyal and digital customer base Santander superdigital FTSE4Good life Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 36#37Argentina Santander Argentina is the country's largest privately-owned bank by business volume 2020 Highlights Strategic priorities Increasing our customer base and Branches 408 loyalty, and ensuring the best customer service MA Employees 9,159 GLOBAL FINANCE Loyal customers (mn) 1.4 Further developing new businesses WOMEN el programa oulusivo para la mujer ¡U #Pensadoparavos 2 Digital customers (mn) 2.6 nova. Customer loans (EUR bn) 4 The Banker Continuing our process of efficiency and simplification Tu tarjeta, tus cosas. DUO Customer funds (EUR bn) 9 through digital transformation GREAT Underlying attributable profit (EUR mn) 179 PLACE ΤΟ Underlying ROTE 26% Contribution to Group's profit 3% Boosting profitable growth, focusing on the transactional business and optimizing the use of capital WORK Cuenta Blanca Cuenta Senior Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 37#38Uruguay Santander Uruguay is the country's leading privately-owned bank 2020 Highlights Peru Activity focused on corporates, the country's large companies and the Group's global customers (SCIB) 2020 Highlights Colombia Focus on corporate and SCIB, and new alliances in auto finance 2020 Highlights Underlying att. profit (EUR mn) 134 Underlying ROTE 28% Underlying att. profit (EUR mn) Underlying ROTE 53 22% Underlying att. profit (EUR mn) Underlying ROTE 19 14% Strategic priorities Continue to invest in technology and process automation to further improve efficiency, accelerate digitalization and continue to increase our presence and market share Strategic priorities Increasing Corporate Finance's activity and expanding our auto and consumer finance entity by widening our product range, improving distribution channels and diversifying funding sources while maintaining customer satisfaction Strategic priorities Implementing different regional initiatives such as Cockpit and Pioneer, in line with the strategy of One Santander, and launch of Prospera and Superdigital nge España Br Svenge Uruguay Itolska Portuga Puerto Rico México Ceslie Argentina + N e Venezuela Chile R Magyarország Pli e België Colombo Santander antander Santander Profesionales Santander 0123 4567 8901 2345 .00/00 100/00 AN OTHER Prestonccns Trabaja con uno de los mejores bancos del mundo, para hacer crecer tu negocio.. Más i Compra Venta de Divisas Obtenga el mayor beneficio y la mejor asesoria en sus transacciones de Compra y Venta de Divisas 38#39Global businesses Santander North America South America Europe Santander Corporate & Investment Banking Santander Wealth Management & Insurance Group functions and Corporate Centre activities 39#40SCIB Santander Corporate & Investment Banking SCIB is the global business division for corporate and institutional customers who require a tailored service and value-added wholesale products suited to their complexity and sophistication 2020 Highlights 113 1 103 5,397 Strategic priorities Expanding our content and product offerings to continue to become our clients' strategic advisors, while accelerating the digitalization of our businesses 2 Developing a powerful ESG platform to support our Customer loans (EUR bn) Customer funds (EUR bn) Total income (EUR mn) Collaboration revenue +9% YoY Underlying RoRWA 1.9% 3 Underlying attributable profit (EUR mn) 1,823 Contribution to Group's profit 26% 32% 7% Total income breakdown 33% ■Global Transaction Banking ■Global Debt Financing ■Global Markets ■Capital & Other 28% 4 customers in their transition towards more sustainable business models Creating a pan-European platform with the aim of becoming the benchmark wholesale bank in the region and offering a more differentiated service to our clients Accelerating business growth in the US under a robust control environment by exploring new business opportunities Consolidate our leadership position in South America, strengthening our franchises in Peru and Colombia PFI Recent Awards received AWARDS Offshore Wind Deal of the Year Deal of the Year Global Adviser of the year Rail Deal of the Year Petrochemical Deal of the Year Infrastructure Deal of the Year Power Deal of the Year Broadband Deal of the Year GLOBAL FINANCE ⚫ Best Trade Finance Provider Spain ⚫ World's Best Payment Hub Solution for 2020 (Globally) ⚫ Best Trade Finance Provider Argentina Best Supply Chain Finance Provider for Western Europe ⚫ Best Provider of Short-Term Investments/Money Market Funds in Latin America for 2020 ⚫ Best Trade Finance Provider Chile Best Trade Finance Bank in Latin America (Regional) Trade Finance ⚫ Best Receivables Financier an IJGlobal service Santander Note: Customer loans: Gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds For more information (awards, etc.) see https://www.santandercib.com PFI Awards stand for Project Finance International Awards (Refinitiv) 40 40#41WMB Santander Wealth Management & Insurance WM&I Our aim: become the best and most responsible Wealth Manager in Europe and the Americas 2020 Highlights EUR 370 bn; 0% YoY Strategic priorities Santander Private Banking Santander Insurance • Capture our full potential GOLD STANDARD AWARDS 2018 WINNER RAC T РШТ WEALTH TECH AWARDS 2020 GERAME OF TECHNOLOGY LATIN AMERICA PLIM The Banker GLOBAL PRIVATE BANKING AWARDS 2019 PRIVATE BANK IN LATIN AMERICA Total assets under management¹ Santander Asset Management Total fees generated as % of the Group's total fees² 31% Complete global platform and product offering Become the best local partner Private Banking customers (k) >200 Private banking collaboration volume +34% YoY • Investments on digital tools and channels Underlying RoRWA • Build a competitive edge on our flagship and global products + develop institutional capabilities • Develop end-to-end digital journeys for our products • Smart use of data CITYWIRE WINNER BEST FUND MANAGER 2010 Equity-Spain MARIA DOLORES BOLANA LIPPER FUND AWARDS FROM REFINITIV XXIX PREMIOS FONDOS 2018 Expansión Underlying attributable profit (EUR mn) Contribution to Group's profit 7.5% · Develop a global Private Wealth proposition 868 • Develop digital platforms for funds • Broker insurance for SMEs and Auto 12% Retirement proposition PRIVATE BEST F BANK AWARD GERAKCE 2021 مه Total contribution to Group's profit³ (EUR mn) 2,145 Environmental, Social and Governance product range EUROMONEY PRIVATE BANKING * 2021 Santander (1) Total assets marketed and/or managed. Private Banking + SAM excluding AUM of Private Banking customers (2) Including fees generated by asset management and insurance transferred to the commercial network (3) Profit after tax + net fee income generated by this business For more information about Santander Private Banking see https://www.santanderprivatebanking.com/ and about Santander Asset Management see http://www.santanderassetmanagement.com 41#42Group functions and Corporate Centre activities • Global T&O strategy • HR strategy • Risk management and compliance • Corporate governance and internal control • Our brand Santander North America South America Europe Santander Corporate & Investment Banking Santander Wealth Management & Insurance Group functions and Corporate Centre activities 42#43The T&O strategy aims to enable our digital transformation by partnering with businesses and support functions, while managing risks and improving cost efficiency Global T&O capabilities are key for our commercial and digital transformation Composed of four main domains that contribute to the digital transformation Focused on five technological pillars to respond to the changing business needs Operating model oriented to develop global products and digital services, guaranteeing their quality and security Technology Cybersecurity Operations *** ATMs Data T Santander Risk Business needs Speed Innovation Security by design Cost Service quality Open business model Management (incl. cybersecurity) Common Architecture Agile Cloud Core Deep systems technology evolution skills Data c. 2,700 professionals Robust Santander T&O allowing us to continue running the Bank and serving our customers remotely with high standards during the covid-19 crisis Global Tech 43#44HR strategy: our aim is to be an employer of choice Focus on employee engagement, leveraging our SPF culture to retain and attract the best talent 0 0 DA 95% of full-time employees in 20201 54% WORKPLA WORLDS BEST 2020 FT LEADER IN DIVERSITY Bloomberg Gender-Equality Index top EMPLOYERS INSTITUTE 2020 FINANCIAL TIMES statista 2020 191,189 Employees, Dec-20 of women employees in 20201 The SPF culture is based on our 8 corporate behaviours and 4 leadership commitments Show respect Truly listen Talk straight Keep promises Being open and inclusive Encouraging the team to prosper Our corporate management evaluation model 50% what we do 40% how we do it क 10% Risk Support people Embrace change Actively collaborate Bring passion Leading Inspiring and by example executing transformation Covid-19. Our priority is to protect the health and safety of our employees Santander (1) Last available 44#45Risk management and compliance Our Risk Management & Compliance function is key to making sure we remain a robust, safe and sustainable bank that helps people and businesses prosper We rely on: *x*x A Risk strategy that enhances our risk management & control across Grupo Santander 피 Common Risk Principles aligned with regulatory requirements and inspired by best market practices Risk Profile Assessment 3 lines of defence model der with a robust risk committees structure Clearly defined management and control processes Covid-19 Anticipating Risk profile changes & defining strategies to mitigate impacts is key to maintain our solid position in terms of capital and liquidity Climate change and risk management Our risk & compliance management and control model is a crucial driver of Grupo Santander contribution to sustainable economic growth Risk appetite & structure of limits Scenario Analysis Risk Reporting Structure Advanced risk management tools to effectively manage and control all risks under a forward-looking approach Continuous risks identification and evaluation to address potential threats It sets the amounts and types of risks deemed prudent to assume To anticipate potential impacts and take early action Comprehensive, versatile with deep analysis to facilitate decision making Santander More information on the Group's Overview of our Corporate Governance presentation. See link to this document on page 68 PULL HANDLE DOWN ALL THE WAY LET GO Our strong Risk culture is based on the principle that all employees are risk managers, supporting long-term sustainability risk pro Everyone's business 45#46Corporate governance and internal control As a responsible bank, we have clear and robust governance with well-defined accountability and prudent management of risks and opportunities Diversified and well-balanced shareholder base Effective engagement with our shareholders Effective board of directors Focus on responsible business practices and attention to all stakeholders' interests 20% Composition of the board of directors, Dec-20 13% Board committees Executive Audit 11% 67% Non-executive directors (independent) Executive directors Non-executive directors (neither proprietary nor independent) 40% Women 33% on the board 2011 2015 2020 Nomination Remuneration Risk supervision, regulation and compliance Innovation and technology Responsible banking, sustainability and culture External advisory board International advisory board Santander More information on the Group's Overview of our Corporate Governance presentation. See link to this document on page 68 46#47Corporate governance and internal control Best practices on robust governance are channelled to all subsidiaries Group-subsidiary governance model Group Board of Directors Subsidiary B Group Executive Chairman¹ Subsidiary A A Board of Directors A The Group-subsidiary governance model enhances control and oversight through: Presence of Grupo Santander in the subsidiaries' Boards of Directors establishing guidelines for board structure, dynamics and effectiveness Group CEO² B CEO/ Country Head B Regional Heads³ Reporting of the CEO / Country Heads to the Group CEO/ Regional Heads and Group Executive Committee Control, management and business functions • Compliance Audit • Risk • Control, management and business functions C Interaction between the Group's and the subsidiaries' control, management and business functions Compliance ⚫ Audit • • ⚫ Finance ⚫ Financial Control/ Accounting . Others4 • Risk • ⚫ Finance • Financial Control / Accounting ⚫ Others4 The Group's Appointment and suitability assessment procedure is a key element of Governance Santander (1) First executive (2) Second executive (3) Europe, North America and South America, reporting to Group CEO (4) Technology & Operations, Human Resources, General Secretariat, Marketing, Communications, Strategy, Santander Corporate & Investment Banking, Wealth Management & Insurance, Digital & Innovation and Global Platforms 47#48Our brand embeds the essence of the Group's culture and identity Santander is one of the most valued brands in the world 6th best global bank brand by BrandZ ranking, 2020 As one of our most important strategic assets, our brand helps us connect with people and businesses, demonstrating our commitment to prosperity and determination to bring it to life in a positive and sustainable manner every day. Scitcrder Work Cafe P Santander Santander Santander More information: https://brand.santander.com/en #123LbeAccount Let's make it simple Let's keep working for a better World #TheRightWay 48 44#49Santander 3.2 ⚫ 2020 results & activity#50Our business model and discipline in capital allocation delivered strong operating performance, resulting in a 7.4% underlying ROTE 2020 (vs. 2019) Growth Loyal customers 22.8 mn (+6%) Customer revenue EUR 42 bn (0%¹) Profitability Efficiency ratio 47% (-3 bps) Net operating income EUR 23.6 bn (+2%1) Strength CET12 12.34% (+69 bps) Cost of credit³ 1.28% (+28 bps) Fully-paid capital distribution of new shares equivalent to EUR 0.10 per share in 2020, as well as a EUR 0.0275 per share to be paid in cash as shareholder remuneration against year 20204 Changes in constant euros Santander (2) Data applying the IFRS 9 transitional arrangements (3) Provisions to cover losses due to impairment of loans in the last 12 months/ average customer loans and advances of the last 12 months (4) The Board of directors' intention is for the final remuneration against year 2020 to be the indicated amount, which is the maximum under the limits set in the latest ECB recommendation (2020/63 of 15 December) 50#51We have worked hard to mitigate the impact of the crisis... Employees >100 k employees working from home MiVuelta app for contact tracing and health monitoring >70 k tests performed Customers c. 6 mn customers supported during covid-19 c. EUR 175 bn in new loans >EUR 1 bn per day in new lending for SMEs and Corporates c. 80% expired moratoria EUR 45 bn liquidity government measure mobilization Communities >EUR 100 mn in aid EUR 54 mn for essential health equipment and materials EUR 21 mn to support vulnerable communities EUR 30 mn through Santander Universities Santander 51#52... further embedding ESG to build a more responsible bank Environmental: supporting the green transition Helping customers go green EUR 33.8 bn EUR 6.9 bn AUM since 2019 Social Responsible Investment Going green ourselves Green Finance EUR 1 bn green bond issued Social: building a more inclusive society Talented & diverse team Top 101 in 6 geographies 23.7% women in leadership positions Financially empowering people EUR 469 mn credit to microentrepreneurs in 2020 Carbon Neutral 4.9 mn people² since 2019 (2nd since 2019) in own our operations Aligning to Paris targets Supporting society 4.0 mn people 1st CCCA³ report 1st TCFD4 report helped since 2019 225 k scholarships granted since 2019 Governance: doing business the right way A strong culture 86% Simple, Personal, Fair employees proud to work for Santander Taking ESG criteria into account when determining remuneration An independent, diverse Board >60% Independent directors 40% women on Group Board Governance embedded to deliver on ESG Santander (1) Top 10 company to work for People financially empowered through Santander initiatives (3) Collective Commitment to Climate Action (4) Task Force on Financial Climate Disclosure UNEP PRINCIPLES FOR FINANCE RESPONSIBLE INITIATIVE BANKING PRI Principles for Responsible Investment THE GLOBAL COMPACT 2020 Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA EUROMONEY AWARDS FOR EXCELLENCE 2020 Bloomberg Gender-Equality Index WE SUPPORT 52#53Resilient revenue and net operating income (ex-FX) in a challenging environment Underlying attributable profit Constant EUR mn % change EUR mn 2020 2019 Euros Constant Euros Net interest income 31,994 35,283 -9 1 1,798 1,886 1,837 1,802 1,686 Net fee income 10,015 11,779 -15 -5 1,524 1,508 Customer revenue 42,009 47,062 -11 Trading and other income 2,591 2,432 7 9 Total income 44,600 49,494 -10 Operating expenses -20,967 -23,280 -10 Net operating income 23,633 26,214 -10 Net loan-loss provisions -12,173 -9,321 31 47 Other results -1,786 -1,964 -9 Underlying PBT 9,674 14,929 -35 Underlying attributable profit 5,081 8,252 -38 20221222 248 Q4 includes DGF & Bank Levy (EUR 250 mn after tax) -2 Q1'19 Q2 Q3 Q4 Q1'20 Q2 Q3 Q4 -26 -29 Net capital gains and provisions -13,852 -1,737 Attributable profit -8,771 6,515 Attributable profit (Constant EUR mn) 1,498 1,095 280 2,377 203 -11,136 1,796 366 Santander Note: Net capital gains and provisions details on page 12 of 2020 Earnings Presentation 53#54Top line showed strong signs of recovery in the last two quarters Revenues and costs Constant EUR mn. Changes vs. Q3'20 7,695 7,938 7,971 7,986 7,860 7,698 +4% 8,392 8,043 Net interest income 2,569 2,585 2,668 2,666 2,646 +3% 2,502 2,568 Net fee 2,299 income Net operating income Constant EUR mn +3% vs.Q4'19 6,240 -41% 5,989 5,900 6,054 907 5,682 5,724 695 756 679 5,495 5,615 457 465 466 538 Other revenue¹ -3% +4% 5,226 5,306 5,345 5,509 5,249 5,061 5,212 5,444 Costs Q1'19 Q2 Q3 Q4 Q1'20 Q2 Q3 Q4 vs.Q3'20 Q4 includes DGF (EUR 240 mn before tax) Q1'19 Q2 Q3 33 Q4 Q1'20 Q2 Q3 Q4 Santander (1) Other revenue includes gains/losses on financial transactions, income from the equity accounted method, dividends and other operating results. Contribution to the SRF recorded in Q2'19 and Q2'20. Contribution to the DGF in Spain recorded in Q4'19 and Q4'20. 54#55NII and fees continued to recover in Q4 ... NII evolution Constant EUR mn Net fee income - breakdown by Global Business As % of total Group1 +1,902 2020 vs. 2019 Q4'20 vs. Q3'20 31,590 +257 31,994 Retail Banking -11% 0% -1,240 -516 15% WM&I 0% +5% +2% vs. 2019 54% 31% SCIB +12% +6% Total Group -5% +3% 2019 Volumes Rates Regulatory Other impacts 2020 NII increased from higher lending and deposits volumes Recovery in the quarter supported by acquiring, WM&I and SCIB Santander (1) WM&I considering total fees generated by insurance and asset management, including those transferred to the commercial network (Retail Banking) 55#56... and efficiency gains exceeded 2020 target Costs % change YoY in constant EUR Europe -10% -2% -5.8% -6% -6% -5% North -5% -1.7% America +5% South America¹ +1% 1.5% 0% Group -2.0% Digital Consumer Bank² -0.4% Santander (1) Excluding Argentina, otherwise +4.0% (2) Proforma Increasing productivity in most markets 56#57Cost of credit in line with guidance, with improved coverage Loan-loss provisions Constant EUR bn 3.6 3.1 Credit quality Dec-19 Dec-20 2.8 12.2 Cost of credit¹ 1.00% > 1.28% 2.7 +47% YOY NPL ratio 3.32% > 3.21% Q1'20 Q2 Q3 Q4 2020 Coverage ratio 68% > 76% Loan-loss reserves 20.4bn 24.3bn > (Constant EUR) Santander (1) Provisions to cover losses due to impairment of loans in the last 12 months/ average customer loans and advances of the last 12 months 44 57#58Group CET1 rose 69 bps YoY, exceeding our 11%-12% target CET1 ratio evolution 11.65 +0.02 +1.04 +69 bps -0.43 -0.14 +0.29 12.34 -0.09 Dec-19 Organic generation Regulatory & Models One-offs & corp transactions Markets & others No complementary Dividend accrual 2020 Dec-20 dividend 2019 Santander 58#59Details by geographic regions and global businesses North America Santander South America Europe Santander Corporate & Investment Banking Santander Wealth Management & Insurance Group functions and Corporate Centre activities 59#60Loyal customers 2020 (vs. 2019) (mn) 10.0 Europe Our geographical and business diversification continues to add value Net operating income (EUR mn) Contribution to Group's underlying profit¹ 37% Customer loans (EUR bn) 658 9,379 +1% +4% -5% North 3.9 121 6,379 21% America +13% +2% +1% South 8.6 119 9,533 42% America +9% +15% +5% 113 Global Businesses 3,328 SCIB WM&I SCIB SCIB +9% +30% 26% 370 1,229 WM&I WM&I AUMS Digital +0% +6% Consumer Bank O 12% Digital Consumer Bank² 116 +1% 2,834 +1% 16% Retail Banking 46% Santander YoY changes in constant euros Global Businesses included in Europe, North America, and South America. Digital Consumer Bank included in Europe's perimeter. (1) Underlying profit contribution excludes Corporate Centre (€-1,844mn) and Santander Global Platform. South America's weight includes Uruguay & Andean Region (€203mn) (2) Proforma 60#61Strong balance sheet growth... Dec-20 Loans and advances to customers EUR bn and % change in constant EUR Dec-20 Customer funds EUR bn and % change in constant EUR YOY YOY 201 +5% 321 +4% 242 +3% 223 +8% Europe 104 0% Europe SCF 39 +1% 39 +8% 43 +2% 29 +1% 39 +10% North 90 90 +3% 77 +16% North America 30 0% America 11 41 +14% 67 +19% 100 +16% South 41 +6% America South America 38 88 +11% 4 +35% 9 +67% Group 904 +5% Total Global Group Total businesses SCIB WM&I Santander 113 17 +9% +9% Note: Loans and advances to customers excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds Europe includes Rest of Europe (mainly SCIB) with loans: EUR 44 bn (+17% YoY), customer funds: EUR 31 bn (+32%) Global businesses SCIB 103 155 980 +9% +27% +6% WM&I 61#62... with countries currently in different phases of the crisis 2020 Net operating income EUR mn and % change vs. 2019 in constant EUR 2020 Underlying attributable profit EUR mn and % change vs. 2019 in constant EUR 2,703 +3% 1,085 -16% 3,175 -9% 517 -67% Europe 706 -6% Europe 338 -36% 1,697 -9% 530 -50% 895 -10% 162 -52% North 2,098 +2% North 762 -9% America America 4,281 +1% 731 +4% 7,325 +3% 2,113 -5% South America South 1,363 496 +4% 432 -21% America +37% 179 +91% Global businesses SCIB WM&I Santander 3,328 +30% 1,229 Global businesses SCIB 1,823 +23% +6% WM&I 868 +2% 62#63Santander 4. Medium-term targets and key takeaways#64Reiterate our medium-term goals and a goal of 9-10% ROTE4 for 2021 Our 2021 goals... and the medium-term impact of the new model... allow us to reiterate our medium-term goals² Cost income ratio <47% Cost of credit <1.28% Underlying ROTE 9%-10% Best-in-class NPS LIP Mid-single digit revenue growth¹ Underlying ROTE 13-15% 11-12% CET1 40-50% cash dividend pay-out (underlying profit)³ (1) Constant euros Santander April 2019 Investor Day The board's intention is to restore in the mid-term a payout of 40-50% of the underlying profit. With respect to the remuneration against 2021 results, the intention is, in line with the announcement made in April 2020, to maintain the suspension of the dividend policy while the ECB 2020/63 recommendation of December 15th applies. (4) Underlying RoTE Note: Based on IMF World Economic outlook reports (January 2021) and OECD Economic outlook (December 2020) 99 64#65Clear strategic priorities and plan for growth in EPS + TNAVPS Our resilient business model delivered sound results in 2020 ⚫ EUR 5 bn underlying profit and resilient net operating income (+2% YoY) while growing loyal (+6%) and digital customers (+15%) ● Robust credit quality with cost of credit at 1.28% • Strong organic capital generation, with 12.34%¹ Group CET1 Our capital allocation will drive growth, with three strategic priorities: • One Santander - in Europe, 10-12% ROTE and 45% efficiency ratio in the medium term PagoNxt - building off existing assets (Getnet, Wirecard in Europe). Getnet Brazil listing expected in 20212 Digital Consumer Bank - 2x PAT medium-term goal Santander (1) Data applying the IFRS 9 transitional arrangements (2) Subject to necessary approvals 65#66Santander Responsible Banking goals We are building a more Responsible Bank aligned with our commitments Top 10 company to work for¹ Women on the board of directors 33% 40% 2018 2019 2020 2021 4 66 - 40% ✓ 40%-60% Women in senior leadership positions² 20% 23% - 23.7%- Equal pay gap³ 3% 2% 1.5% Financially empowered people4 2.0 mn 4.9 mn 19 bn 33.8 bn Green finance raised and facilitated (euros) Electricity used from renewable energy sources Becoming carbon neutral in our own operations Reduction of unnecessary single use plastic in corporate buildings and branches Scholarships, internships & entrepreneurs programmes People helped through our community programmes8 Santander 43% - 2025 30% -0% 10 mn 120 bn 50%- -- 57% 60% 100% 0% 75%- - 98% 100% 69 k 225 k 200 k 1.6 mn 4.0 mn 4 mn From...To.... Cumulative Commitment target Achieved 1234 According to relevant external indexes in each country (Great Place to Work, Top Employer, Merco, etc.) Senior positions represent 1% of total workforce Calculation of equal pay gap compares employees of the same job, level and function People (unbanked, underbanked or financially vulnerable), who are given access to the financial system, receive tailored finance and increase their knowledge and resilience through financial education (5) Includes Santander overall contribution to green finance: project finance, syndicated loans, green bonds, capital finance, export finance, advisory, structuring and other products to help our clients in the transition to a low carbon economy. Commitment from 2019 to 2030 is EUR 220 bn In those countries where it is possible to certify renewable sourced electricity for the properties occupied by the Group People supported through Santander Universities initiative (students who will receive a Santander scholarship, will achieve an internship in an SME or participate in entrepreneurship programmes supported by the bank) (8) People helped through our community investment programmes (excluded Santander Universities and financial education initiatives) 66#67ww Santander Help millions around the world realise their dreams and prosper. #TheSantanderEffect Santander 5. Links to Grupo Santander public materials#68Links to Grupo Santander public materials For additional information on the Group, please click on the images, icons or flags below 2020 financial results Financial report Earnings presentation FINANCIAL REPORT 2020 January December Santander 2020 Earnings Presentation All. Together. Now Santander Series (excel) Shareholders report (interactive) XLS Country presentations Press release USA Portugal UK Mexico' Spain Brazil Santander Chile Argentina SCF Poland QUARTERLY SHAREHOLDER REPORT OCTOBER-DECEMBER 2020 Other information 2020 Annual report Strategic Overview & Executive Chairman and CEO's letters Annual report Strategic Overview Annual Report 2020 All Together Now Annual Report 2020 ALL Together Now Chairman's video (2 minutes) Santander Santander Overview of our Corporate Governance presentation Fixed income presentation www.santander.com FIXED INCOME INVESTORS PRESENTATION Here to help you amper Santander Follow us on in 68 88#69Important information Non-IFRS and alternative performance measures This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards ("IFRS") and derived from our financial statements, alternative performance measures ("APMS") as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015 (ESMA/2015/1415en) and other non-IFRS measures ("Non-IFRS Measures"). These financial measures that qualify as APMs and non-IFRS measures have been calculated with information from Santander Group; however those financial measures are not defined or detailed in the applicable financial reporting framework nor have been audited or reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS measures to be useful metrics for our management and investors to compare operating performance between accounting periods, as these measures exclude items outside the ordinary course performance of our business, which are grouped in the "management adjustment" line and are further detailed in Section 3.2 of the Economic and Financial Review in our Directors' Report included in our Annual Report on Form 20-F for the year ended 31 December 2019. Nonetheless, these APMs and non-IFRS measures should be considered supplemental information to, and are not meant to substitute IFRS measures. Furthermore, companies in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. For further details on APMs and Non-IFRS Measures, including its definition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS, please see the 2019 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 6 March 2020, as well as the section "Alternative performance measures" of the annex to the Banco Santander, S.A. ("Santander") Q4 2020 Financial Report, published as Inside Information on 3 February 2021. These documents are available on Santander's website (www.santander.com). Underlying measures, which are included in this presentation, are non-IFRS measures. The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the included businesses and local applicable accounting principles of our public subsidiaries in such geographies. Accordingly, the results of operations and trends shown for our geographic segments may differ materially from those of such subsidiaries. Forward-looking statements Santander advises that this presentation contains "forward-looking statements" as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words like "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RORAC", "RORWA", "TNAV", "target", "goal", "objective", "estimate", "future" and similar expressions. Found throughout this presentation, they include (but are not limited to) statements on our future business development, economic performance and shareholder remuneration policy. However, a number of risks, uncertainties and other important factors may cause actual developments and results to differ materially from our expectations. The following important factors, in addition to others discussed elsewhere in this presentation, could affect our future results and could cause materially different outcomes from those anticipated in forward-looking statements: (1) general economic or industry conditions of areas where we have significant operations or investments (such as a worse economic environment; higher volatility in the capital markets; inflation or deflation; changes in demographics, consumer spending, investment or saving habits; and the effects of the COVID-19 pandemic in the global economy); (2) exposure to various market risks (particularly interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices); (3) potential losses from early repayments on our loan and investment portfolio, declines in value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in Spain, the United Kingdom, other European countries, Latin America and the US (5) changes in legislation, regulations, taxes, including regulatory capital and liquidity requirements, especially in view of the UK exit of the European Union and increased regulation in response to financial crisis; (6) our ability to integrate successfully our acquisitions and related challenges that result from the inherent diversion of management's focus and resources from other strategic opportunities and operational matters; and (7) changes in our access to liquidity and funding on acceptable terms, in particular if resulting from credit spreads shifts or downgrade in credit ratings for the entire group or significant subsidiaries. Santander 69#70Important information Numerous factors could affect our future results and could cause those results deviating from those anticipated in the forward-looking statements. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements speak only as of the date of this presentation and are informed by the knowledge, information and views available on such date. Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise. No offer The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation. No investment activity should be undertaken on the basis of the information contained in this presentation. In making this presentation available Santander gives no advice and makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever. Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000. Historical performance is not indicative of future results Statements about historical performance or accretion must not be construed to indicate that future performance, share price or future (including earnings per share) in any future period will necessarily match or exceed those of any prior period. Nothing in this presentation should be taken a profit forecast. Third Party Information In particular, regarding the data provided by third parties, neither Santander, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, Santander may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, Santander assumes no liability for any discrepancy. Santander 70 70#71Thank you. Our purpose is to help people and businesses 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