Investor Presentaiton
Important 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
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