#13 April 2019 Santander Investor Day Ana Botín Group Executive Chairman OPENING PRESENTATION Santander#2Important Information Non-IFRS and alternative performance measures In addition to the financial information prepared in accordance with International Financial Reporting Standards ("IFRS"), this presentation contains certain financial measures that constitute 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"). The financial measures contained in this presentation that qualify as APMs and non-IFRS measures have been calculated using the financial information from Santander Group but are not defined or detailed in the applicable financial reporting framework and have neither been audited nor 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 management and investors to facilitate operating performance comparisons from period to period. While we believe that these APMs and non-IFRS measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute of IFRS measures. In addition, other companies, including companies in our industry, may calculate or use such measures differently, which reduces their usefulness as comparative measures. For further details of the APMs and Non-IFRS Measures used, 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 2018 Annual Financial Report, published as Relevant Fact on 28 February 2019. These documents are available on Santander's website (www.santander.com). Forward-looking statements Santander cautions that this presentation contains statements that constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RORAC", "RORWA", "TNAV", "target", "goal", "objective", "estimate", "future" and similar expressions. 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 and our shareholder remuneration policy. While these forward-looking statements represent our judgment and future expectations conceming 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. The following important factors, in addition to those discussed elsewhere in this presentation, could affect our future results and could cause outcomes to differ materially from those anticipated in any forward-looking statement: (1) general economic or industry conditions in areas in which we have significant business activities or investments, including a worsening of the economic environment, increasing in the volatility of the capital markets, inflation or deflation, and changes in demographics, consumer spending, investment or saving habits; (2) exposure to various types of market risks, principally including interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices; (3) potential losses associated with prepayment of our loan and investment portfolio, declines in the value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in Spain, the UK, other European countries, Latin America and the US (5) changes in laws, regulations or taxes, including changes in regulatory capital and liquidity requirements, including as a result of the UK exiting the European Union and increased regulation in light of the global financial crisis; (6) our ability to integrate successfully our acquisitions and the challenges inherent in diverting management's focus and resources from other strategic opportunities and from operational matters while we integrate these acquisitions; and (7) changes in our ability to access liquidity and funding on acceptable terms, including as a result of changes in our credit spreads or a downgrade in our credit ratings or those of our more significant subsidiaries. Numerous factors, could affect the future results of Santander and could result in those results deviating materially 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. Santander 2#3Important Information Forward-looking statements speak only as of the date of this presentation and are based on the knowledge, information available and views taken on such date; such knowledge, information and views may change at any time. Santander does not undertake any obligation to update or revise any forward-looking statement, whether as a result 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 as to historical performance or financial accretion are not intended to mean that future performance, share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior period. Nothing in this presentation should be construed as a profit forecast Santander 3#4XX 01 New team delivers 3-year plan, building on our foundations 02 Looking ahead: Our three-pillar plan for increasing profitability 03 Key takeaways and medium-term goals Santander 4#5Our strategy: a relentless focus on earning customer loyalty... A more committed team... ++ Our aim To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities ...and supporting our communities 14 20 2015 2018 Loyal customers (ii (Mn) ...earning customer loyalty drives quality results... Santander ...leading to stronger financial results... ...by being Simple Personal Fair LO#6Strong execution of our customer loyalty and digital strategy by our new team over the last 3 years Earn lasting customer loyalty Be the bank of choice for our customers, delivering superior customer experience кл Growth Santander Santander Profitability Deliver all products and services through E2E digital channels in a fast and efficient way Digitalise our Core Banks Note: New exceptional leaders in Brazil, Mexico, US, UK, Spain, Corporate and Investment Banking, IT & Ops, Risk, Santander Digital, Openbank, Wealth Management (non exhaustive) since 2015. Strength 6#7K 7 ку Growth Increase in loyal and digital customers has delivered sustained top line growth Loyal customers (Mn) 13.8 +44% 19.9 Digital customers (Mn) +93% Customer revenues (Constant €Bn²) +24% 45.8 32.0 37.0 16.6 2015 2018 3.4x higher revenues per customer¹ vs non loyal 2015 2018 2X higher revenues per customer vs non digital Santander (1) Individuals and SMEs in retail franchises. (2) +9% in current euros. 2015 2018 7#8O Profitability Significant improvement in profitability in most geographies over the last 3 years ROTE RORWA 2015 2018 1.20% 1.55% 0.93% 1.32% 2018 11.7% 2.01% 2.28% SCF 2.40% 2.10% 1.79% 2.19% 1.88% 1.46% 1.94% 3.70% 2015 10.0% 2.94% 3.77% 2.17% 2.73% 1.19% 1.04% Santander Note: 2015 ROTE figures have been re-stated to reflect the capital increase. (1) Capital allocated by country. (2) POS: Points of Sale Capital discipline in growth: Inorganic Organic 2015 2018 c.40% of our c.90% of our capital¹ with capital¹ with ROTE > COE ROTE > COE Value-creating acquisitions (Popular, Banif Portugal, DB retail and SMEs Poland, Citi Argentina, SAM minorities, POS² in Spain) and divestments (All- funds, Wizink, Prisma, Totalbank, Quasar, Metrovacesa, Testa) 8#9OÛ Profitability Strong progress in our capital allocation by segments/portfolios... From (2015)... RORWA (%) c.60% of our RWAS generating RoRWA <1.2% % of cumulative RWAs AL c.30% of our RWAs generating RORWA <1.2% Santander ...but still there is more to do ...To (2018) Potential for further profitability improvement % of cumulative RWAs 9#10Strength FL CET1 increased by 304bps as the Group accumulated €18Bn of capital Capital generation between December 2014 and December 2018 (bps) FL CET1 435 35 2018 11.30% 304 214 118 186 2014 8.27% Organic capital generation Perimeter exc. Dividends +AT1 Popular¹ Organic capital generation after dividends 2015 capital increase Total capital accumulated + €25.3Bn - €2.3Bn - €12.8Bn + €10.2Bn + €7.5Bn Santander (1) Popular acquisition had a largely neutral impact on Group's solvency. + €17.7Bn 10 10#11Our 'GPS' has delivered increases of 55% in EPS and 41% in TNAV per share + cumulative cash DPS, excluding FX EPS growth1 2015-18 TNAVps + cum. Cash DPS1 2015-18 TSR accumulated vs peers since 2015 Investor Day2 + 22% + 27% European banks index -12% (+55% ex. FX) Santander (+41% ex. FX) (1) Statutory EPS and TNAVps grow th adjusted for the increase in shares from scrip dividends. Figures excluding FX are in constant Euros. (2) Source: Bloomberg as of 29/03/19. All figures in EUR. TSR accumulated since 24/09/15. Total Shareholder return considering dividends reinvested in the security. European banks index: Stoxx Europe 600 Banks (SX7P). Peers: Barclays, BBVA, BNP, Deutsche Bank, HSBC, ING, Intesa, Lloyds, Société Générale, Standard Chartered UBS, Unicredit. ■+7% 11#12We have built on our strong foundations | Scale + до Diversification Both in-market and global scale Across 10 core markets Europe Developing Predictability & Growth Lowest volatility among peers EPS quarter volatility 1,2 9% Santander VS C.140% peers avg. and Americas and Mature Net income increase 1, 2 1999-2018 5x VS 3x Santander peers avg. Santander (1) Source: Bloomberg, as of Dec-18 with GAAP Criteria. Note: Standard deviation of the quarterly EPS starting from the first available data since Jan-99. (2) Peers: Bank of America, BNP; Citi, Credit Suisse, ING, JP Morgan, Société Générale, UBS, Unicredit and Wells Fargo. 12#13Group knowledge and scale add increasing value to our retail and commercial franchises SCALE / DIVERSIFICATION Existing global businesses SCF Santander 20153 2018 Attributable profit Corporate and Investment Banking Wealth Management¹ Consumer Finance² €4.0Bn €4.9Bn Payment related businesses Shared services Global Merchant Services Global Trade Services One Pay FX Digital IT&Ops | Procurement New Retail + SME segments (1) Wealth Management including Insurance. Santander (2) Global Consumer Finance including SCF, UK LatAm consumer finance operations and SCUSA. (3) 2015 figures in constant euros from 2018. Efficiency improvement Digital and IT&Ops Global procurement €430M n €250 M n 13#14SCALE / DIVERSIFICATION Scale is increasingly a necessary competitive advantage "At-scale" banks who can invest in digital and technology and generate growth in customers and revenues have a disproportional advantage Digital & Technology expenditure per year # Digital customers1 Mn customers €Bn SAN vs. US Big Four as of 2018 IT spend Peer 1 29 5.8 9.1% Peer 2 29 Santander 32 Peer 3 Peer 4 Santander 36 49 as % of 2018 revenue o/w Digital investment as % of 2018 revenue 1.2 1.7% 5.8 7.7% n.a. c.5.0 9.9% 7.3 9.2% n.a. 8.0 8.3% 2 2.0 4.1% (1) Digital customers are users who have logged on through Web or Mobile platforms within the past 30 days for Santander, and in the last 90 days for reference players (2) SAN Digital investment expected in 2019 Source: Annual reports, Press releases Peers: Bank of America, Citi, JP Morgan, Wells Fargo 2.5 2.6% 14#15Europe European franchise strongly positioned to improve profitability SCALE / DIVERSIFICATION Present in the most profitable banking markets Leveraging on Openbank, our 100% digital full service bank, to grow in new markets Deliver customer growth focusing on superior experience and best in class efficiency c.1.2Mn customers, 38% loyal/active Market share2 % Ranking CSAT ranking4 18% #1 #3 18% #2 #3 11% #2 #3 (+28% loyal customer 9% #5 #1 growth 2016-181) 3 3 +59% increase in SCF 12% #1' transactions in 2016-181 (1) Since Launch in 2016. Santander (2) Loans market share: latest data available, including individuals and corporates. (3) SCF market share calculated as retail new car financing over total market passenger cars registrations. Ranking of independent car finance players. (4) Latest data available. CSAT: Customer Satisfaction internal benchmark of active customers' experience and satisfaction audited by Stiga / Deloitte. 15#16LatAm We are the LatAm bank, giving us a unique structural growth opportunity Large economies c.600Mn with high total population¹ growth prospects c.3% combined GDP CAGR² Great growth potential c.200Mn unbanked population c.60Mn middle class³ expansion by 2030 (+20%) Santander SCALE / DIVERSIFICATION Market share4 % Ranking CSAT ranking6 9% #35 #1 13% #3 #3 19% #1 #2 10% #25 #4 (1) Latin America 2017 population; Source: WorldBank. (2) CAGR between 2019 and 2021. (3) 10-50 USD per capita daily income (PPP); Source: Interamerican Development Bank, 2016. (4) Loans market share: latest data available, including individuals and corporates. (5) Including only private-owned banks. Including public banks: Brazil Top 5 and Argentina Top4. (6) Latest data available. CSAT: Customer Satisfaction internal benchmark of active customers' experience and satisfaction audited by Stiga / Deloitte. 16#17US The US is an attractive market with increasingly strong and growing network effects with our European and LatAm businesses Largest banking pool with continued growth Consistent high profitability 1/3 ($550Bn) c.3% world's banking pool 13%-15% ROTE expected growth p.a. SCALE / DIVERSIFICATION Concentrated Big 4, fragmented beyond Closely linked with our core markets $1.1 Trn trade flows between our core markets Santander Source: Market data from external consultancy 17#18US Building blocks in place plus leveraging Group scale and customer base open strong opportunities SBNA positive evolution Attributable Profit 2018 $345Mn (c.3.5x) (increase from $96Mn in 2017) NIM SBNA vs Peers average (2015-18) SCALE / DIVERSIFICATION Most of the building blocks and increasing integration with Group Retail 10th by market share in NE 65Mn people, $70,000 GDP per capita Commercial Strong trade connections to LATAM - EU c.1,000 Corporates with $2B new commitments >$40Mn revenues annually (700 customers in 2016) CIB Generating significant cross border activity for Group customers (c.70% of international revenues)² Top 8 national auto finance 2.9% 2.2% 1) Santander 2) 3.3% Consumer Finance 3.2% 3.9% margin after cost of risk (+75bps vs. peer avg.) Beginning to leverage OEM Group relationships +62bps 1 (Gap reduction) Wealth Mgmt. > €25Bn AuMs serving our Latam High Net Worth customers Comparison with SBNA peer median in 4Q15 and 4Q18 NIM on earning assets Includes revenues from US companies generated outside the US (outbound), and revenues from non-US companies generated in the US (inbound) Source: Market data from external consultancy 18#19SCALE / DIVERSIFICATION Our existing 3 global businesses make our local banks more competitive, leveraging network effects High growth, high profitability businesses Growing profitability Higher growth prospects Medium-term goals RoRWA5 RoRWA '15 '18 revenue CAGR6 Corporate Banking & Investment 42% of client revenues 1.3% 1.8% c.8% are cross border³ Wealth >4Mn potential Private 7.4% 7.8% c.10% Management1 Banking customers in our core markets Consumer Finance2 c.50% of total auto assets through 2.3% 2.3% c.3% global OEMs4 partnerships (1) Wealth Management including Insurance. (2) (3) Global Consumer Finance including SCF, UK LatAm consumer finance operations and SCUSA. Revenues generated from customers Santander CIB perimeter Santander 19 (4) Original Equipment Manufacturer. (5) 2015 figures in constant euros from 2018. (6) Figures in constant euros.#20Embedding a common culture and building a more responsible bank Building a Delivering profit with purpose Simple, Personal and Fair Bank Percentage of employees who consider the Bank is: Supporting our communities... 6.3 Mn' people supported 63% 69% Simple ...promoting 74% 63% financial Personal inclusion... 273k microentepreneurs supported in 2018 75% 79% Fair 2015 2018 ...and sustainable growth Santander MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM 1st in Europe 3rd in the world (1) Refers to cumulative activity in 2016-2018. The Bank has devised a corporate methodology review ed by an external auditor to consistently keep track of people who have benefted from our social programmes, services and products 20 20#21Attracting and retaining the best and most diverse talent is key to achieving our commercial goals A im Enablers Priorities To be an employer of choice 1 Strategic Workforce Planning Chosen for our 2 purpose, culture and the responsible way we achieve great results Santander 3 Culture & Engagement Attract & Recruit HR Digital Transformation Retain & Develop Our Common Culture Diversity & Inclusion 21 24#22XX 01 New team delivers 3-year plan, building on our foundations 02 Looking ahead: Our three-pillar plan for increasing profitability 03 Key takeaways and medium-term goals Santander 22#23Our three-pillar plan for increasing profitability Santander 01 02 Improving operating performance Accelerating digitisation: building an open financial services platform 03 Continuing to improve capital allocation 23 23#24Our three-pillar plan for increasing profitability Santander 01 M Improving operating performance 02 ← Accelerating digitisation: building an open financial services platform 03 Continuing to improve capital allocation 24 24#25Further leveraging our diversification and scale US Accelerating growth with sustainable profitability LatAm A region with structural growth and high and increasing profitability Europe Building the leading European bank in customer experience and profitability, leveraging our scale & digital Santander 25 M#26LatAm A region with structural growth and high and increasing profitability 2018 Medium-term goals ROTE, % Market share 1,2 12% Gain Loyal/active customers 1 Digital customers 1 # of countries top 3 in CSAT 1,3 28% 31% 2018 19% 18 Mn c.26Mn+c.45% ROTE Note: underlying RoTE 4 Santander (2) (1) Includes Brazil, Mexico, Chile, Argentina and Uruguay. Loans market share. All Medium-term goal 20-22% ROTE M RWA C/I 38% > 33-35% 2018 Medium-term goal 26 26 Latest available. CSAT: Customer Satisfaction internal benchmark of active customers' experience and satisfaction audited by Stiga / Deloitte. In the medium term we will be also follow ing NPS as indicator.#27US Growing on the back of Group operational leverage, with expected ROTE of 11-13% 2018 Medium-term goals Adjusted ROTE, %4 Medium-term goal Market share 1,2 3% Gain Loyal/active 19% 20% customers 1 2018 11-13% ROTE Digital customers 1 Customer satisfaction rank 1,3 8% 0.9Mn 1.1 Mn +19% ROTE Note: underlying RoTE Santander (1) Only SBNA. #9 Peer avg (2) Market share in the States where we operate. C/I 43% > 2018 39-41% Medium-term goal (3) Internal benchmark of active customers' experience and satisfaction among US peer group. In the medium term we will be also follow ing NPS as indicator. (4) Adjusting for excess capital. M RWA 27 27#28Europe Building the leading European bank in profitability and customer experience, leveraging scale & digital Medium-term 2018 goals Market share 1,2 12% Gain Loyal/active 33% 40% customers 1 Digital customers 1,3 ROTE, % 2018 11% 13Mn c.17Mn +27% ROTE # of countries top 3 in CSAT 1,4 All Maintain Note: Europe includes Spain, UK, Portugal, Poland and SCF. Underlying RoTE. (1) Excluding SCF. Santander (2) Loans market share. (3) Digital customers including Open-Bank Spain and UK. Medium-term goal 12-14% ROTE M RWA C/I 52% > 47-49% 2018 Medium-term goal 28 (4) Latest available. CSAT: Customer Satisfaction internal benchmark of active customers' experience and satisfaction audited by Stiga / Deloitte. In the medium term we will be also follow ing NPS as indicator.#29Our three-pillar plan for increasing profitability Santander 01 02 Improving operating performance Accelerating digitisation: building an open financial services platform 03 Continuing to improve capital allocation 29 29#30Santander Our twin-track approach to transformation Transform our Core banks "Supertankers" Be the best for our customers and deliver profitable growth Accelerate through high growth ventures "Speedboats" Fast experimentation to serve our banks with new solutions while competing in the open market to attract new customers 30 30#31€20 billion investment in IT and digital - improving the customer experience while lowering the cost of delivery Digital & Technology expenditure per year SAN vs. US Big Four Peer 1 Peer 2 €Bn Santander c.5.0 Peer 3 Peer 4 Santander (1) SAN Digital investment expected in 2019 Source: Annual reports, Press releases Peers: Bank of America, Citi, JP Morgan, Wells Fargo as % of 2018 revenue 5.8 9.1% We plan to 5.8 7.7% 9.9% 7.3 9.2% 8.0 8.3% invest >€20 Bn in the coming years 31#32Supertankers Santander Global Payments will be the cornerstone of our open financial services platform and loyalty strategy Santander Group position (sector revenues c.9% CAGR¹) >4Mn SMES >80Mn cards worldwide in acquiring volume2 top 10 €500Bn in payments p.a.³ across customers A Global Trade Services B Global Merchant Services C | One Pay PX FX Santander We have valuable assets as foundations Note: source c.9% expected growth McKinsey Global payments trend through 2022 (1) CAGR 2020-2022 (2) SAN includes volumes generated through third parties with Santander customers (Elavon and First Data); Ranking excludes Chinese banks (3) Annual transaction volume across cards, account-based payments and merchant acquiring 32 32#33A Global Trade Services: one global platform providing integrated best-in-class solutions World trade growth 1.5x faster than GDP growth Higher gross margin per customer¹ 2.5x SMEs International SMEs >170k Number of SMEs trading internationally Market leaders >20% market share² >€500M n Revenues² trading internationally Supertankers Our vision Deliver fast & efficient products for SMEs, previously only accessible to Corporate We have the full product suite: ☐ Trade Finance Supply chain Payments FX Santander (1) Considers only SP, BR and MEX. For MX assumes GM per intl. SMEs is 2.5 higher than avg. SMEs (same as mid. Corp segment). (2) In trade and FX products. 33 33#34Supertankers B Leveraging Getnet to build our Global Merchant services Top 10 global acquirers by turnover volume €Bn1 Specialist Bank Global Merchant Services 1,500 Transaction growth 1 (Getnet vs market) getnet Market share 2 in Brazil (one of largest acquiring market in the world by revenues) +16x 14% 2x since 2014 Bank Specialist Specialist Bank Bank Specialist Bank 150 (1) EUR/USD: 1.134 EUR/GBP: 0.856 EUR/BRL 4.298 (2) Revenues market share Santander (3) Change 3Q18 vs 3Q17 Country roll-out: Short-term Medium-term >1.2Mn merchants worldwide €150Bn4 global turnover volume 34 (4) SAN includes volumes generated through third parties; Ranking excludes Chinese banks Source: Companies information. Players: Bank of America, Barclays, Cielo, Elavon, FirstData, Globalpayments, JP Morgan, Santander, Wellsfargo, Worldpay#35C One Pay FX: our simple, fair and secure way to send money abroad €90Bn Market revenues1 For our existing customers (One Pay FX) Simple (3-clicks), Fair (competitive pricing) and Safe (Santander-backed) Speedboats Open market solution (Pago FX) Single global platform "at-scale": the price and transparency of a Fintech with the trust of a bank Today 7 markets Medium- term All markets Short-term Medium- term 20+ markets 20% MoM user growth 5M+ customers 3 Beta live in UK 2M+ customers (inc. SMEs) incremental 120% transactions2 >20 Mn p.a. transactions & SMES solution NPS vs. #1 alternatives Santander (1) International payments and FX fees and margin. Increase in total volume of transactions in SP-UK corridor. (3) full mobile onboarding & e-KYC (<5 mins) 35 35#36Speedboats Openbank is Europe's largest full service digital bank, with best in class UX, and a business model which should lead to c.20% ROTE and 25%-35% C/I How will Openbank create value? Attract, engage and retain customers without a branch network, best user experience and profitability 1 Countries Today Medium-term 10 Total customers 1.2Mn >2Mn (2x) Loyal customers / 38% 35%-40% active customers Avg. # products² 4.6 3-5 Become the leading "Banking as a Service" platform to serve third parties per loyal customers NPS #2 Top (among peers) Build a "model bank", a world-class retail banking infrastructure to replace legacy systems Santander (1) Long term business model across Europe and Americas (2) Products include current account, saving accounts, deposits, debit cards, credit cards, direct debit, payroll, mortgages, consumer loans, investments & robo advisory 36#37Speedboats Superdigital: 'Banking without a bank' Superdigital targeting the 300Mn+ underbanked1 in LATAM Profitable, cost-effective service model for a traditionally unprofitable segment ✓ Today: Possible because of Santander's local presence, products & services 0.5Mn active customers (58% YoY²) Simple offering - pre-paid card, digital account, transfers; microcredit to start in Brazil Santander (1) Including 200Mn+ unbanked and 100Mn+ underbanked; (2) YoY change from 2017 to 2018; Easy: 3-step onboarding Profitable since 2018 Medium-term goals: 7+ markets (in all LatAm markets) 5 Mn+ active customers 10x since 2018 Single global platform enabling rapid expansion 50% + ARPU³ from expanded functionality High NPS (70+) 37 (3) Average Revenue Per User#38Global capabilities provided by global procurements, digital, T&O... benefit countries while building an open platform Contributes today to Group efficiencies... €680Mn (2018) • €250 Mn procurement €200 Mn in global data centres, shared mainframes and internal offshoring €80 Mn in cyber ...will deliver for future benefits to countries and global businesses EUROPE1 REST IT & Ops c. €730Mn+c. €270Mn + Shared services & c.€220Mn Others TOTAL = c. €1 Bn = c. €220Mn • €100 Mn in global agreements €50 Mn in best practice sharing in operations Santander Total c.€1Bn +c.€270Mn = c.€1.2Bn c.10% Europe's² cost base (1) Efficiencies in Europe amount to c.€1Bn, of which c.€250Mn come from Popular (including c.€180Mn from It &Ops and c.€70Mn from Shared services & Others). Spain, UK, Portugal, Poland and SCF. 88 38#39Our three-pillar plan for increasing profitability Santander 01 Improving operating performance 02 Accelerating digitisation: building an open financial services platform 03 Continuing to improve capital allocation 39 39#40We are executing the following levers to drive further improvement in profitability, aligned with our strategic plan Im proved capital allocation: more capital to our most profitable geographies Capital efficiency: minimum profitability thresholds and faster asset rotation Digitisation: driving higher revenue growth & operational efficiency Further alignment of senior management remuneration with capital goals Higher profitability leads to higher capital generation capacity and potential to increase growth & shareholder remuneration 11-12% mid-term CET1 goal offers higher capital flexibility Santander 40 40#41XX 01 New team delivers 3-year plan, building on our foundations 02 Looking ahead: Our three-pillar plan for increasing profitability 03 Key takeaways and medium-term goals Santander 41#42We are confident our strategy will drive further loyal customers while increasing EPS and TNAV per share Medium-term goals لا Growth Santander | (1) Underlying. ROTE1 13-15% Efficiency 42-45% FL CET1 11-12% Dividend pay-out ratio 40-50% الله Profitability လ ט. Strength 42 42#43Thank 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