#1Jepunnus Mexico ( 28 April 2021 Q1'21 Earnings Presentation Santander#2Important 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 2020. 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 2020 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 26 February 2021, as well as the section "Alternative performance measures" of the annex to the Banco Santander, S.A. ("Santander") Q1 2021 Financial Report, published as Inside Information on 28 April 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 2#3Important 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 Statement 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 as 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 3#4Index 1 2 3 4 5 Financial system Strategy and business Results Concluding remarks Appendix#5Financial system System deposit growth still at low double-digits while loan growth reflects a contraction Total loans (Constant EUR bn¹) 241 235 229 221 211 9.9% Decline in system loan volumes in most segments, except mortgages and government 5.9% YOY 2.9% (%) -1.9% -1.7% Consumer loans continued to contract, especially credit cards and personal loans Mar-20 Jun-20 Sep-20 Dec-20 Feb-21 Total deposits (Constant EUR bn¹) 239 244 243 245 232 YOY 12.3% 12.6% 12.9% 10.8% 10.9% (%) Mar-20 Santander Jun-20 Sep-20 Dec-20 (1) End period exchange rate as of Feb-21. Source: CNBV Banks as of Feb-21. Feb-21 System deposit growth remained solid Low rate environment drove strong growth in demand deposits (+19.7% YoY), likely reflecting heightened need for liquidity among households and companies 5#6Index 1 2 3 4 5 Financial system Strategy and business Results Concluding remarks Appendix#7Strategy and business Santander México: one of the leading financial groups in the country KEY DATA Q1'21 YoY Var.4 STRATEGIC PRIORITIES Customer loans¹ EUR 31.4 bn -6.4% Customer funds² EUR 41.7 bn +1.1% To become the leading bank in terms of customer experience, leveraging new tools and process improvement Underlying att. Profit EUR 182 mn -7.4% Maintain strong growth rates in loyal هههه Underlying RoTE 12.7% -3.1 pp Efficiency ratio 43.1% +189 bps Loans market share³ 13.3% +5 bps Deposits market share³ 13.0% -5 bps Loyal customers 3.7 mn +10.6% Digital customers 5.1 mn +14.9% Branches 1,376 -3.7% customers, as well as increase presence in high-potential businesses Strengthen our corporate business to maintain our position as market leaders in value-added products Accelerate technological transformation and digitalization, by increasing our capabilities to improve the operating model, IT performance and information security 00 Employees 23,280 +15.7% (1) Gross loans excluding reverse repos. Santander (2) Excluding repos. As at December 2020. (4) Constant euros. 7#8Strategy and business Expanding loyal and digital customers further strengthening our retail franchise Loyal customers (mn) 3.3 11% 3.7 Mar-20 Mar-21 Loyal/Active: 39% (+5 pp YoY) Digital customers (mn) Maintain strong focus on increasing loyalty, while attracting new customers through innovative products such as Hipoteca Plus ▸ Loyal individuals: 11% YoY leveraging our large number of products New functionalities for our reward hub when using credit and debit cards: digital gift cards with main sellers (Spotify, Uber, Google Play, Coppel, etc.) and points transfer between accounts 4.4 Mar-20 15% 5.1 Mar-21 Digital sales/total¹: 48% (+18 pp YoY) Santander (1) YtD data. Improving onboarding processes to new channels and adding new functionalities to the digital platform Mobile customers up 14% YoY The brand new features of our SuperMóvil App allows digital customers to request claims from ATM's transactions and get auto and motorcycle insurance Digital sales reached 48% of total sales in Q1'21 00 8 ()#9Strategy and business Driving innovation and attracting customers Auto finance Auto financing through "Super Auto Santander" together with commercial alliances with strategic partners enable further penetration of the auto loan market >6% market share reached in Feb-21 vs. 2% in Feb-20 Mortgages HIPOTECA PLUS Hipoteca FREE The only bank in Mexico to offer a tailored interest rate based on the customer's profile Strong performance of Hipoteca Plus, accounted for 50% of mortgage new lending in Q1'21. Hipoteca Plus rewards new loyal customers who keep their payrolls and other financial products with one of the lowest rates in the market, 7.75%. Our Hipoteca Online, the only mortgage platform in Mexico that connects all end-to-end processes, helps to drive originations Credit card customer attraction Santander free Sontander light VISA Santander Santander Sentonder Sontander Santander FR FR Santander FR First bank in Mexico to offer cards without numbers to its customers. This innovation is complemented by the digital card with dynamic CVX (Dynamic Security Code) () Distribution network transformation Shift to an omni-channel banking experience to attract and retain customers Transformed 579 branches. New branch layout is more efficient, user friendly, promotes use of digital, self-services and P&L per branch Santander Digitalization SuperNET SuperMóvil Súper Wallet Upgrading online and mobile banking platforms to offer customers innovative and high quality services that satisfy their dynamic demands • New functionalities for our Supermóvil and Superwallet mobile apps including new shortcuts and more than 30 security features Introducing Sandi, our new customer digital assistant. A tool that encourages self-service on digital channels by answering questions about more than 60 topics related to operations, such as credit and service payments, account statement downloads, amongst others Fully digital onboarding for new payroll customers, reducing the time to open new accounts Corporate & Investment Banking Santander Corporate & Investment Banking Continuing to position our Corporate & Investment Banking business as one of the top three players in Mexico 9#10Strategy and business Further embedding ESG to build a more responsible bank Environmental: supporting the green transition Helping customers go green Financial advisor on the issuance of 4 Bonds in 2020: 1 Green 2 Sustainable 1 Gender Bond Social: building a more inclusive society Talented & diverse team Top 91 company 15.4% women in to work for leadership positions Bond FEFA 20V Bonds Rotoplas AGUA 17-2X FIRA 20G- 1st Gender bond in Mexico VINTE 20X #1 in Project Finance LT (Dealogic tables) SCIB Mexico SAM-ESG → 1st sustainable equity fund in Mexico Going green ourselves Carbon Neutral in our own operations - 67,845 tons CO2 Voluntary Cancelation Certificate (CER) Financially empowering people 156,542 loans approved in 2020 835,159 people² since 2019 238,244 beneficiaries from financial education programmes in 2020 Supporting society 138,019 people helped since 2019 47,622 scholarships granted since 2019 Governance: doing business the right way A strong culture Simple, Personal, Fair Taking ESG criteria into account when determining remuneration An independent, diverse Board 70% Independent directors³ 40% Women On Board Other programmes: D&I Cultural Transformation Mujer Líder Santander Programme Gender Violence Programme Benefiting almost 8,000 employees (1) Top 10 company to work for Santander (2) (3) 7 out of 11 proprietary members are independent People financially empowered through Santander initiatives Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA ^ SAMI Sustainability Award Industry mover 2020 FTSE4Good EMPRESA A SUSTENTABLE 10#11Strategy and business Lower loan portfolio YoY, as corporate loans began to normalize following the uptick at the beginning of the pandemic and lower activity during lockdown Total customer loans (Constant EUR bn)1 Mar-21 Mar-20 YoY (%) QoQ (%) 33.6 32.8 32.3 Individuals² 12.4 11.6 7.3 0.7 31.4 30.8 o/w Mortgages 6.9 6.2 11.6 2.2 o/w Consumer credit 2.4 2.3 1.9 4.1 o/w Cards 2.0 2.1 -12.4 -4.3 SMES 2.5 3.1 -19.4 -7.9 Corporates & Institutions 10.2 11.0 -7.3 -0.7 CIB 5.9 7.5 -21.8 8.4 Other 0.4 0.4 11.4 Total customer loans *o/w Government³ * 31.4 33.6 -6.4 2.2 3.7 3.2 14.4 20.0 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Santander Group criteria (1) Excludes reverse repos. End period exchange rate as at Mar-21. (2) Includes Private Banking. (3) Government loans in local GAAP. 11#12Strategy and business Customer fund YoY increase was boosted by demand deposits from individuals (+27%) and mutual funds Total customer funds (Constant EUR bn) 1 41.3 41.2 40.9 41.3 41.7 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Santander Group criteria (1) Excluding repos. End period exchange rate as at Mar-21. Mar-21 Mar-20 YoY (%) QoQ (%) Demand 21.6 20.9 3.6 3.9 Time 8.8 10.2 -13.8 -8.6 Total deposits 30.5 31.1 -2.1 -0.1 Mutual Funds 11.3 10.2 10.8 4.0 Total customer funds 41.7 41.3 1.1 1.0 12#13Index 1 2 3 4 5 Financial system Strategy and business Results Concluding remarks Appendix#14Results YoY decrease in NII as a result of interest rate cuts and lower portfolio volumes (•) Net interest income (Constant EUR mn)1 Yields and Costs (%) Yield on loans 713 681 706 707 12.25% 667 11.00% 10.73% 10.36% 10.11% 3.54% Cost of deposits 3.21% 2.53% 2.03% 1.85% Q1'20 Q2'20 Q3'20 Q4'20 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'21 NIM² 4.27% 3.31% Official interest rate (TIIE)³ 7.34% 6.05% Differential 8.7 pp 7.8 pp 8.2 pp 8.3 pp 8.3 pp 3.41% 3.47% 3.43% 4.98% 4.51% 4.37% Santander (1) Average exchange rate as at Q1'21. (2) Group criteria. (3) Quarterly average. 14#15Results Net fee income growth mainly driven by transactional banking fees Net fee income (Constant EUR mn)1 Q1'21 Q1'20 YoY (%) QoQ (%) Transactional fees 112 102 9.7 1.1 Payment methods 57 46 23.8 -8.6 204 Transfers, drafts, cheques 199 20 188 192 187 and other orders 20 22 22 -9.2 16.4 Account admin + Packs 26 26 0.3 1.5 plans Other transactional 8 7 10.9 70.9 Investment and pension 25 24 5.4 0.2 funds Insurance 51 49 49 4.3 -8.0 Securitites and custody services 10 10 8 19.3 55.8 Other 6 5 9.8 Total net fee income 204 188 8.2 8.7 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Santander (1) Average exchange rate as at Q1'21. 15 (•)#16Results Total income reduction YoY as pressure on NII was not fully offset by the increase in fee income and gains on financial transactions Total income (Constant EUR mn)1 (•) 942 899 897 890 865 Q1'21 Q1'20 YoY (%) QoQ (%) Net interest income 667 713 -6.4 -5.6 Net fee income 204 188 8.2 8.7 Customer revenue 871 902 -3.4 -2.6 Other² (6) (2) 71.7 Total income 865 899 -3.9 -2.9 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Santander (1) Average exchange rate as at Q1'21. (2) Other includes Gains (losses) on financial transactions and Other operating income. 16#17Results Operating expenses increased slightly in nominal terms mainly driven by technology investment and amortizations. In real terms, costs fell 3% Operating expenses (Constant EUR mn)1 394 371 357 421 Q1'21 Q1'20 YoY (%) QoQ (%) 373 Operating Expenses 373 371 0.6 -11.5 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Santander (1) Average exchange rate as at Q1'21. Branches (#) 1,376 1,429 -3.7 0.2 Employees (#) 23,280 20,121 15.7 4.6 17#18Results Net operating income YoY performance affected by NII pressure and IT investments (•) 529 Net operating income (Constant EUR mn)¹ 585 Q1'21 Q1'20 YoY (%) QoQ (%) 503 492 469 Total income 865 899 -3.9 -2.9 Operating Expenses (373) (371) 0.6 -11.5 Net operating income 492 529 -7.0 4.9 Efficiency ratio 43.1% 41.2% 189 bps Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Santander (1) Average exchange rate as at Q1'21. 18#19Results Loan-loss provisions dropped 7% YoY despite charges recorded for certain corporate customers Net LLPs (Constant EUR mn)1 (•) 244 299 Q1'21 Q1'20 YoY (%) QoQ (%) Net operating income 492 529 -7.0 4.9 228 218 Loan-loss provisions (228) (244) -6.7 7.5 212 Net operating income after 264 285 -7.1 2.7 provisions NPL ratio 3.21% 2.07% 114 bps 40 bps Cost of credit 1 3.00% 2.69% 31 bps -3 bps 2 Coverage ra 96% 134% -38.3 pp -25.3 pp Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Santander (1) Average exchange rate as at Q1'21. (2) Cost of credit based on 12-month loan-loss provisions divided by average customer loans. 19#20Results Profit down YoY impacted by pressure on NII, which more than offset the positive performance of LLPs Underlying Attributable Profit (Constant EUR mn)¹ (•) Q1'21 Q1'20 YoY (%) QoQ (%) PBT 259 278 -6.7 8.8 196 194 195 182 171 Tax on profit (63) (66) -4.8 18.0 Consolidated profit 196 212 -7.3 6.2 Minority interests (14) (15) -6.8 6.2 Underlying attributable 182 196 -7.4 6.2 profit Effective tax rate 24.3% 23.8% 0.5 pp Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Santander (1) Average exchange rate as at Q1'21. 20 20#21Index 1 2 3 4 5 Financial system Strategy and business Results Concluding remarks Appendix#22Concluding remarks The pandemic still weights on earnings as we progress in key initiatives and maintain a strong balance sheet and liquidity Contraction in system loan volumes in most segments, except mortgages and government ▸ Consumer loans continued to contract, especially credit cards and personal loans Financial System ‣ System deposit growth still low double-digits Strategy & Business Results Santander Lower interest rates favour strong growth in demand deposits, likely reflecting heightened need for liquidity among households and companies ▸ Continued focus on loyalty and digitalization to improve customer experience Well positioned with strong capital and liquidity levels Lower loan portfolio YoY, as corporate loans began to normalize following the uptick at the beginning of the pandemic and lower activity during lockdown. Customer funds increase was boosted by demand deposits from individuals Total income reduction YoY as pressure on NII was not fully offset by the increase in fee income and gains on financial transactions ▸ Operating expenses increased slightly in nominal terms mainly driven by technology investment and amortizations. In real terms, costs fell 3% Loan-loss provisions dropped 7% YoY despite charges recorded for certain corporate customers ▸ Profit down YoY impacted by pressure on NII, which more than offset the positive performance of LLPs 22#23Index 1 2 3 4 5 Financial system Strategy and business Results Concluding remarks Appendix#24Appendix Balance sheet Constant EUR million Variation Mar-21 Mar-20 Amount % Loans and advances to customers 30,910 33,728 (2,819) (8.4) Cash, central banks and credit institutions 9,980 14,636 (4,656) (31.8) Debt instruments 23,538 15,613 7,925 50.8 Other financial assets 8,490 11,899 (3,409) (28.6) Other asset accounts 3,617 3,587 29 0.8 Total assets 76,535 79,464 (2,929) (3.7) Customer deposits 36,445 37,186 (741) (2.0) Central banks and credit institutions 14,354 14,031 323 2.3 Marketable debt securities 6,648 6,482 167 2.6 Other financial liabilities 10,054 13,265 (3,211) (24.2) Other liabilities accounts 2,389 2,618 (229) (8.8) Total liabilities 69,890 73,581 (3,692) (5.0) Total equity 6,645 5,882 763 13.0 Other managed customer funds 11,590 10,484 1,106 10.5 Mutual funds 11,278 10,179 1,099 10.8 Pension funds 87 82 5 6.4 225 223 1 0.6 Managed portfolios Santander (1) End of period exchange rate as at Mar-21 (•) 24 24#25Appendix Income statement Constant EUR million¹ Variation Q1'21 Q1'20 Amount % Net interest income 667 713 (46) (6.4) Net fee income 204 188 15 8.2 Gains (losses) on financial transactions 28 19 9 44.8 Other operating income (34) (21) (13) 60.5 Total income 865 899 (35) (3.9) Operating expenses (373) (371) (2) 0.6 Net operating income 492 529 (37) (7.0) Net loan-loss provisions (228) (244) 16 (6.7) Other gains (losses) and provisions (5) (7) 2 (23.8) Underlying profit before tax 259 278 (19) (6.7) Tax on profit (63) (66) 3 (4.8) Underlying profit from continuing operations 196 212 (16) (7.3) Net profit from discontinued operations Underlying consolidated profit 196 212 (16) (7.3) Non-controlling interests (14) (15) 1 (6.8) Underlying attributable profit to the parent 182 196 (14) (7.4) Santander (1) Average exchange rate as at Q1'21 25 (•)#26Appendix Quarterly income statement Constant EUR million¹ Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Net interest income 713 681 706 707 667 Net fee income 188 192 199 187 204 Gains (losses) on financial transactions 19 87 24 2 28 Other operating income (21) (19) (32) (6) (34) Total income 899 942 897 890 865 Operating expenses (371) (357) (394) (421) (373) Net operating income 529 585 503 469 492 Net loan-loss provisions (244) (299) (218) (212) (228) Other gains (losses) and provisions (7) (7) (4) (19) (5) Underlying profit before tax 278 279 281 238 259 Tax on profit (66) (69) (70) (53) (63) Underlying profit from continuing operations 212 210 211 185 196 Net profit from discontinued operations Underlying consolidated profit 212 210 211 185 196 Non-controlling interests (15) (16) (16) (14) (14) Underlying attributable profit to the parent 196 194 195 171 182 Santander (1) Average exchange rate as at Q1'21 26 (•)#27Thank 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