Annual Integrated Report

[3-3] Material topic: Productive inclusion and empowerment Annual Integrated Report Table of Contents Introduction Value Creation | Economic Performance | Environmental Social Governance Appendices FINANCIAL INCLUSION Our conviction is that the key to building a more inclusive economy lies in promoting banking, nurturing entrepreneurship, and bolstering small and medium-sized enterprises, which account for over half of the formal jobs in the nation. We strive to make meaningful contributions to these areas in various ways. • Roughly 40% of customers say that obtaining credit has become easier since the implementation of Prospera. See the table depicting the evolution of the key Prospera indicators: Prospera Santander Microfinance Portfolio (R$ thousand) Women¹ 2022 2021 1,636,034 1,223,041 Men¹ Total 889,169 2,525,202 1,881,602 1,265,530 2020 822,595 658,561 442,935 Origination (R$ thousand) 2022 2021 2020 2,547,113 1,963,081 1,627,963 1,348,389 1,057,043 838,647 3,895,502 3,020,124 2,466,610 # of Active Customers 2022 2021 2020 575,352 460,108 358,557 309,805 247,750 184,711 885,157 707,858 543,268 'Gender classification is predicated on estimated percentages of 67% for women and 35% for men. Total considering revitalization contracts. 58 Microfinance Through Prospera Santander Microfinance, the largest private productive microcredit program in Brazil, we contribute to the income generation of both formal and informal microentrepreneurs engaged in a wide array of activities. Our service extends well beyond simply providing credit: we offer guidance on managing and mapping business opportunities, in addition to a comprehensive range of products including checking accounts, credit cards, point-of-sale terminals, insurance, savings accounts, and a dedicated MEI account for individual microentrepreneurs. In 2022, Prospera's active base grew by 25%, surpassing 885,000 customers across about 1,700 municipalities. Over the year, we disbursed R$ 3.9 billion, representing a 29% growth compared to 2021. Prospera contributes to reducing the underrepresentation of women in the formal financial system. According to a research study conducted by the Dom Cabral Foundation, in collaboration with Brink's, the percentage of women who remain unbanked stands at 43.4%, as compared to 33.2% for men. In our microfinance program, however, they constitute the majority. At the end of the year, female entrepreneurs accounted for 65% of the total loan portfolio. Over the course of its 20-year history, the initiative has disbursed R$ 17.4 billion in credit. The loan repayment rate for the year 2022 stood at 95%1. Alongside Prospera, we operate in the microfinance segment through the Advance Program, which provides financial guidance and management courses. Impact assessment Last year, we received the support of Plano CDE, a specialized impact assessment consultancy focused on the CDE classes, to measure the effects of Prospera in the communities in which it operates. The following are the key findings of the study: ⚫ The net profit of businesses increases over time as their relationship with Prospera deepens, particularly among women. • On average, the increase in profit amounted to approximately R$ 374 per month. For a family with a monthly income of R$ 3,000 (90% of customers have an income below this threshold), this represents 12% of the household income. . Compared to other microentrepreneurs, Prospera customers exhibit greater resilience, superior debt repayment capabilities, and a decreased propensity for cutting essential expenditures. <strcr><ul> syss ESTRADA DO CAMPO LIMPO 1254 MISA AUTOMOTIVE CENTER + MAQUININHA GETNET. PARCERIA NO PONTO PRA CRESCER SAIBA MAIS NA AGENCIA SANTANDER DO CAPÃO. SANTANDER Santander </> 0 coders 'In the loan portfolio, contracts that exceed the 30-day overdue mark are regarded as non-performing. *:[sua carreira + tech} Financial Education Banking products and services foster entrepreneurship and contribute to the creation of employment opportunities, promote responsible consumption, and enhance people's overall quality of life. At Santander, we develop initiatives that support anyone, regardless of their status as a client, in advancing their knowledge of financial management. Some legal and voluntary practices aimed at managing the risk of indebtedness are geared towards financial guidance. In 2022, we witnessed 27,000 participants in financial guidance activities offered by the Bank, encompassing lectures, live stream sessions, and podcasts. Below, we present a glimpse into some of these initiatives: [3-3] In March, we introduced an incentive program on Febraban's financial education Education We believe in the transformative power of education and strive to ensure that everyone has equal opportunities to unlock their full potential. To this end, we make continuous investments in this field through specialized structures. Our efforts are focused on bolstering the academic environment and forging stronger ties with the business sector, while also supporting the entry of young professionals into the job market and promoting entrepreneurship. The programs have a strong bias towards the appreciation of diversity, with initiatives aimed at women, blacks, and low- income individuals. Learn more about our approach to diversity in "Our People". Our key initiatives are reported below. Financial Education Portal Free online portal that provides content on budget management, debt negotiation, and strategic utilization of money and banking products. Click here to access. Advance Program Geared towards supporting Small and Medium-Sized Enterprises ("SMES"), it provides financial guidance content, online courses, and podcasts, as well as news and articles. Throughout the year, within the scope of this initiative, we organized meetings with experts to discuss credit, e-commerce, labor legislation, financial guidance, and sustainability. In 2022, the program reached nearly 7,000 people. National Financial Education Week We disseminated the week promoted by Febraban and, during this period, we underscored the importance of the topic and encouraged our teams to engage in our programs. "My Pocket in Check" Platform In March, we introduced an incentive program on Febraban's financial education platform - "My Pocket in Check" which provides customized content for various profiles. To encourage engagement and course completion, we offer participants who successfully complete this educational journey discounts on Santander Esfera partners, our loyalty platform. Santander Universities Conceived as a global arm of the Santander Group, Santander Universities supports people and startups through education. Based on agreements established with educational institutions, learning platforms, and initiatives aimed at students, teachers, and young entrepreneurs, the division provides opportunities in the fields of education, employment, and entrepreneurship. Among the initiatives are the offering of free scholarships throughout Brazil and overseas; career enhancement and job market preparation programs; and endeavors to support those who aspire to become entrepreneurs and grow their own business. In 2022, one of the highlights was the awarding of over 103,000 scholarships, representing a 200% growth over the previous year. The total investment amounted to R$ 34.7 million for the year. Here are some of the main initiatives. Santander Coders Through Santander Coders, we train programming specialists to excel in the job market. We provide a comprehensive training pathway at Ada Tech. In 2022, we granted over 24,000 scholarships for introductory courses in full-stack web technologies and programming languages, data science, data engineering, mobile (Kotlin), and test automation. Santander 59