2013 Annual Report

INTANGIBLE ASSETS Clients In line with the Bank's mission, based on client satisfaction and trust as key elements, the focus in 2013 lay in strengthening relationships and ensuring they are increasingly close-knit and long-lasting. One of the activities was the creation of a new model to build client loyalty, which strives to intensify the client's use of the Bank's services by means of a close relationship Santander has also enhanced the governance in the relationship with clients by an internal restructuring. In the second half of 2013, the Quality Department, in charge of monitoring and managing business relations, became part of the Vice-Presidency of Strategy, which strengthens the issue within the Bank and places it at the center of the Organization's strategy. Another measure was the launch of a program designed to map and correct promptly any issue which has caused client dissatisfaction. The initiative involved the creation of an area on the internal social network to enable all the Bank's employees to submit suggestions for improvement. The first topic was "to improve the service which deals with clients' complaints and requests, by attempting to solve them on the first contact". In less than two months over 10,000 employees took part, submitting 942 ideas, 58% of which were approved for implementation. The stance of the Bank over the year was reflected in an improvement in satisfaction levels. Taking all the client service channels into account, overall complaints dropped by 8%, despite a major increase in the commercial base, which rose by around 2 million clients. The reporting of incidents to the Ombudsman department also improved, falling by 14%. The number of complaints submitted to the Brazilian Central Bank, however, rose by 39% and is one of the main challenges for 2014. G4-PR8 1% COMPLAINTS RESOLVED WITHIN 5 BUSINESS DAYS Channel SAC Ombudsman Suppliers Financial institutions such as Santander Brazil possess % 99,91 83,32 a value chain composed of companies largely from the services sector. The Bank's most active suppliers include companies from the security, transportation of valuables, technology and Call Center sectors. The Bank ended the year with 1,437 active suppliers. G4-12 All the Bank's agreements require suppliers to sign a clause committing to social/environmental responsibility in line with the guidelines of the Global Compact - a United Nations (UN) initiative for the adoption of globally accepted practices concerning issues such as human rights, labor relations, the environment and anti-corruption, to which the Bank is a signatory. G4-SO4 In addition to the approval process, whereby suppliers are assessed in technical, administrative, legal and social/ environmental terms, the Bank also uses a Supplier Qualification Indicator (IQF), which has been applied to high-impact services such as security, logistics and call centers since 2010. 93 companies were assessed under this indicator in 2013. Suppliers which are critical from a social and environmental viewpoint (environmental liabilities, bonded labor, etc.) are subject to a process of special identification. Not a single supplier was rejected in relation to these aspects in 2013. The Bank also held two events with 80 suppliers from critical sectors from a social and environmental and human rights viewpoint (civil construction and call centers), with the aim of presenting and getting to know SUSTENTABILIDADE PRA TODO LADO ENCONTRO COM FORNECEDORES Santander SAC customer support service team in São Paulo 2012 Ombudsman 1,533,714 41,769 37,328 2013 A 2013 vs. 2012 1,400,715 43,869 -9% 5% Central Bank 21,699 TOTAL 1,634,438 32,057 ▼ 30,163 1,506,804 -14% 39% -8% and the provision of products and services geared to the client's needs. The introduction of this model involved the comprehensive training of the commercial network and the implementation of the Bank's own tools, such as the loyalty panel, which enables managers to monitor the transaction levels of their portfolios. SAC PROCON 98 Annual Report 2013 Suppliers from critical sectors took part in the sustainability event at the headquarters of Santander Brazil Last year, the Office of the Inspector General (CGU in Portuguese) included Santander on their register of companies committed to ethics and integrity in the work environment (Pró-Etica Register). the best practices in the sector and engaging these companies with regard to sustainability and corporate social responsibility. G4-FS5 99

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