santander scf consumer finance

3 February 2021

Santander Consumer Finance

SCF

2020

Earnings Presentation

2

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 fromSantander 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 theseAPMs 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 tocompare operating performance between accounting periods, as these measures exclude items outside the ordinary course performance of our business, which are grouped in the “managementadjustment” 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 December2019. 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 industryand 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 itsdefinition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS, please see the 2019Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 6 March 2020, as well as the section “Alternative performance measures” of the annex to the BancoSantander, S.A. (“Santander”) Q4 2020 Financial Report, published as Inside Information on 3 February 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 applicableaccounting 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 suchsubsidiaries.

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 bywords like “expect”, “project”, “anticipate”, “should”, “intend”, “probability”, “risk”, “VaR”, “RoRAC”, “RoRWA”, “TNAV”, “target”, “goal”, “objective”, “estimate”, “future” and similar expressions. Foundthroughout this presentation, they include (but are not limited to) statements on our future business development, economic performance and shareholder remuneration policy. However, a numberof 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 othersdiscussed 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 orindustry 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 indemographics, 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, declinesin 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 inlegislation, 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 andoperational 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 groupor significant subsidiaries.

3

Important 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 factorscould 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 toupdate 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 disclosuredocument 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 securitiesfor 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 thecircumstances 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 thispresentation. 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 orinvestments 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 inthe 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 toconstitute 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 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 willnecessarily 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.

4

Index

1

Strategy and business

2

Results

3

Concluding remarks

4

Appendix

5


SCF is the consumer finance leader in Europe

KEY DATA 2020 YoY Var.5

Customer loans1 EUR 103.7 bn

Customer funds2 EUR 39.5 bn

Underlying att. profit EUR 1,085 mn

Underlying RoTE 12.5% -2.7 pp

Efficiency ratio 42.3% -99 bps

Market share3 Top 3

Countries4 15

Active customers 17.6 mn

Employees 14,376 -0.5%

0.0%

+1.1%

-8.8%

-15.9%

SCF STRATEGIC PRIORITIES

Provide best service to our auto partners, OEMs andcar dealers, via digital projects to support our dealers& brands with their transformation plans

Reinforce our position in consumer finance ande-commerce. SCF digital business modelconverging on-line and off-line payments andfinancing to support our merchant partners

Simplification, digitalization & transformationprojects to maximize efficiency and customerexperience

(1) Gross loans excluding reverse repos.(2) Excluding repos.(3) Top 3 market share in main markets: New lending of auto loans as of 2019 (latest available).(4) SCF European countries including SC UK.(5) Constant euros.

6


Solid business model: geographic diversification with leading positions, advanced captive car finance and a strong foothold in consumer

SCF

Present in 15 European countries

Monoliner businesses with c. 130,000 point of sale partners

‐ Auto (c. 75,000 PoS): Long-standing base of European captive agreements (>110) with several OEMs

‐ Non-Auto (c. 55,000 PoS): Agreements with main retailers chains, model evolution based on digitalization

We have c. 18 million customers and had more than 19 million existing loan contracts in 2019

Top Employer Europe 2020(SC Austria, SC Belgium, SC Germany, SC Italy, SC Netherlands, SC Poland)

(*) Retail Car Finance position in local market as of FY2019 (Calculated as market share of New + Used retail cars financed by SCF in the country / Total Market units financed for individuals in the country). Source: Internal estimates based on information from local associations, magazines and market knowledge. SCF Management perimeter and including SC UK.

Note: Including the UK which is included in management perimeter but excluded from published figures

Outstanding loans as of Dec-20(% of total SCF in EUR bn

and ranking*)

Benelux 3%

Nordics 17%

Portugal 1%

Spain 14%

Poland 4%

Austria 3%

Italy 9%

Germany 36%

France14%

Switz.0.4%

#2

#2

#1

#2

China CanadaEUR 2.1 bn EUR 0.4 bn

7


SCF does business in a responsible and sustainable way SCF

Culture

Engagement

74% of employees

proud to work for Santander

Women

18% in senior leadership positions

Plans in place in all units to improve Global Engagement Survey results and share best practices

Gender diversity considered in talent succession plans to improve Women In Senior Positions metric in the 2020–2025 period

Environmental Sustainability

SEK 1 bn Santander Consumer

Finance’s first green bond issuance

>66 k Electric and hybrid vehicles

financed 2020

Our green finance offer includes: financing of electric vehicles, electric chargers, solar panels, green heating systems,…

3-year agreement with Technical University of Munich for a research project

that will investigate the future of mobility and how a greener attitude will affect car ownership and finance

Communities

92 kpeople helped through our community programmes

8611

scholarships granted in Germany

Note: figures as of 2019 unless otherwise stated (2020 provisional data, not audited)(1) Santander Universities is only present in Santander Consumer Germany

8


Covid-19 crisis impacts SCF

In 2020, new business fell by 13% (12% in constant euros) compared to the same period one year ago (better than European new car sales, -24%), however the stock of credit remained flat.

The largest falls in SCF’s new lending were recorded in Portugal (-41%), Spain (-31%), Poland (-28%) and Italy (-16%),countries more affected in the quarter by the isolation measures and decreased activity.

Northern European markets behaved much better than Southern Europe, as the levels of economic lockdown were softer. In Germany new lending fell 5% and in the Nordic countries fell 7%.

China, the first country affected in early 2020, recovered its usual levels in April and now is maintaining new business well above those of last year.

New business volumes were affected, particularly March to May, with strong signs of recovery in H2. The impact of second wave at the end of the year was much less severe.

Ongoing SCF business initiatives to stay close to SCF’s customers (OEMs, car dealers, retailer chains and retail customers) by offering them tailored refinancing alternatives to improve their payment affordability.

Covid-19 Consumer Business

Impact

FY’2020 business impacts on

SCF countries

All markets in which SCF operates have been significantly affected by covid-19, with a drop in new loan production starting in mid-March due to gradual lockdowns in most European countries.

The decrease in new lending year-on-year at SCF was around half that of European new passenger cars.

Registrations of passenger cars were down year-on-year across countries: Germany -19% (2020 vs 2019), France -26%, Italy -28% and Spain -32%.

During the fourth quarter, SCF’s team continued to proactively manage the situation created by covid-19.

Priorities have remained the same as in previous quarters: (1) to protect employees’ health; (2) to ensure business continuity and service in branches and call centres, and (3) to support customers and partners (OEMs, dealers and retailers) to be able to return to normality as and when required by them.

Covid-19 Main Actions

9


Customer loans were flat in the year SCF

Total customer loans (Constant EUR bn)1

103.7 103.7 102.3 101.9 103.7

Dec-19 Mar-20 Jun-20 Sep-20 Dec-20

Dec-20 Dec-19 YoY (%) QoQ (%)

Auto 76.6 73.8 3.8 3.3

Consumer business 19.5 21.0 -7.0 -1.9

Other 7.6 8.9 -14.5 -3.5

Total customer loans 103.7 103.7 0.0 1.8

Geographical diversification (% Total loans, Dec-20)

Germany,

35%

Nordics, 17%Spain, 14%

France, 14%

Italy, 9%

Poland, 4%Other, 7%

2

Group criteria.(1) Excludes reverse repos. End period exchange rate as at Dec-20.(2) Austria, Belgium, the Netherlands, Portugal and Switzerland.

10


Customer deposits, a product that sets us apart from our competitors, increased 1% YoY. We again demonstrated our capacity to access wholesale markets in 2020

SCF

Total customer funds (Constant EUR bn)1

39.1 38.7 38.5 39.1 39.5



Demand 29.5 27.3 8.1 1.3

Time 10.0 11.7 -15.2 0.2

Total customer funds 39.5 39.1 1.1 1.0

Wholesale market funding2 (EUR bn)

31.5 31.4 29.9 28.1 26.4

10.5 10.8 10.5 13.1 15.6

42.0 42.1 40.4 41.2 42.0



Unsecured 26.4 31.5 -16.1 -5.8

Secured 15.6 10.5 47.9 18.8

Total wholesale 42.0 42.0 0.0 2.0

Group criteria.(1) Excludes repos. End period exchange rate as at Dec-20.(2) Unsecured: short and medium term unsecured issuances and subordinated debt. Secured: Asset-Backed Security bonds placed in the market, Repos, Covered bonds and

others.

Secured Unsecured

11

Index

1


2

Results

3

Concluding remarks

4

Appendix

12

Results

NII remained robust YoY, increasing 1%, driven by stable volumes and revenue actions SCF

Net interest income (Constant EUR mn)1

948 972 952 945 962

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

NIM2

3.35% 3.31% 3.22% 3.18% 3.16%

Central Bank interest rate3

-0.50% -0.50% -0.50% -0.50% -0.50%

Yields and Costs (%)

Yield on loans

Cost of deposits

(1) Average exchange rates as at FY2020. (2) Group criteria. NIM is calculated as Net Interest Income / Total Average Assets.(3) Quarter average, ECB deposit facility.

4.26% 4.27% 4.17% 4.08% 4.08%

0.58% 0.57% 0.53% 0.48% 0.42%

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

13

Results

Net fee income decreased in 2020 (-8%), due to lower new business volumes during the lockdowns. Recuperation of pre-covid levels in H2

SCF

Net fee income (Constant EUR mn)1

194186

159

205 200

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

2020 2019 YoY (%) QoQ (%)

Insurance 661 689 -4.0 -5.8

Other 89 130 -31.4 22.5

Total net fee income 750 819 -8.4 -2.8

(1) Average exchange rates as at FY2020.

14

Results

Total income increased slightly YoY thanks to the ongoing income mitigation actions started in March which contributed to a recovery in H2

SCF

Total income (Constant EUR mn)1

1,172 1,1641,100

1,196 1,225

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

2020 2019 YoY (%) QoQ (%)

Net interest income 3,832 3,785 1.2 1.8

Net fee income 750 819 -8.4 -2.8

Customer revenue 4,582 4,604 -0.5 1.0

Other2 103 38 170.3 37.8

Total income 4,685 4,642 0.9 2.4

(1) Average exchange rates as at FY2020. (2) Other includes gains/losses on financial transactions and other operating income. Q2 included contribution to the Single Resolution Fund.

15

Results

Costs down 2% YoY thanks to covid-19 mitigation actions on top of continued delivery on our efficiency programmes in progress

SCF

Operating expenses (Constant EUR mn)1

495

511

471483

515

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

2020 2019 YoY (%) QoQ (%)

Operating Expenses 1,981 2,012 -1.5 6.6

Employees (#) 14,376 14,448 -0.5 0.0


16

Results

Net operating income remained solid (+3% YoY) driven by greater productivity which more than offset income pressure. Efficiency improved to 42%

SCF

Net operating income (Constant EUR mn)1

677652

629

713 709

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

2020 2019 YoY (%) QoQ (%)

Total income 4,685 4,642 0.9 2.4

Operating Expenses (1,981) (2,012) -1.5 6.6

Net operating income 2,703 2,630 2.8 -0.4

Efficiency ratio 42.3% 43.3% -99 bps


17

Results

LLPs up significantly mainly due to covid-related provisions particularly in Q1’20 and higher portfolio sales in 2019, though cost of credit remains low for this type of business

SCF

Net LLPs (Constant EUR mn)1

145

315

185212

187

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

2020 2019 YoY (%) QoQ (%)

Net operating income 2,703 2,630 2.8 -0.4

Loan-loss provisions (899) (467) 92.3 -11.6

Net operating income after

provisions1,805 2,162 -16.5 4.3

NPL ratio 2.36% 2.30% 6 bps -14 bps

Cost of credit 0.88% 0.48% 40 bps 4 bps

Coverage ratio 111% 106% 4.9 pp 2.8 pp


18

Results

Despite top line growth, underlying attributable profit fell 16% driven by greater LLPs (covid-provisions and lower portfolio sales). Underlying profit grew 14% QoQ

SCF

Underlying Attributable Profit (Constant EUR mn)1

314

218

259284

324

Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

2020 2019 YoY (%) QoQ (%)

PBT 1,869 2,184 -14.4 9.0

Tax on profit (505) (591) -14.6 -0.6

Consolidated profit 1,364 1,593 -14.3 12.7

Minority interests (280) (303) -7.6 6.7

Underlying attributable

profit1,085 1,290 -15.9 14.2

Effective tax rate 27.0% 27.0% 0.0 pp -2.4 pp


19

Index

1


2

Results

3

Concluding remarks

4

Appendix

20

Concluding remarks

SCF continues to deliver recurrent profit through the cycle SCF

(1) EU + EFTA + UK

Financial System

The covid-19 pandemic has caused a significant deterioration in the economic environment backdrop.

In 2020, European car registrations fell by 24%1 year-on-year following four months of unprecedented declines across the region between March and June as a consequence of the covid-19 crisis.

This YoY decline in registrations was experienced across countries: in Germany -19%, France -26%, Italy -28% and Spain -32%, with all of them improving significantly in H2.

Strategy &

Business

Leader in consumer finance in Europe: High geographic diversification and critical mass and top positions in core markets.

We have a diversified and stable funding mix, with banking licenses in most markets, with a comfortable liquidity situation.

Focused on RoRWA optimisation while maintaining strong market positions.

Strategic priorities: digital car projects to support dealers and brands’ transformation plans. Reinforcement of e-commerce position. Projects to maximize efficiency and CX.

In 2020, SCF and Hyundai-Kia JV in Germany launched an offer for Sixt Leasing which completed in July. Also, launch of strategic JV with TIM in Italy to provide consumer services to TIM’s 25 mn customers in Italy.

FY2020 -12% YoY (constant euros) fall in new lending due to covid-19 crisis (significantly better than European new car sales, -24%). The stock of credit was flat due to loan growth prior to the covid-19 crisis, mainly in Germany and the Nordics.

Results

All of SCF’s markets continue to be affected by the impact of coronavirus pandemic. Nevertheless, Q4 results showed a clear recovery in all SCF markets in overall business activity.

NII 1% higher than 2019 driven by revenue actions and higher volumes, partially offset by the European Court of Justice ruling regarding early repayment of loans in Poland. Net fee income fell -8% due to lower new business volumes due to lockdowns.

Costs were down 2% YoY due to the covid-19 mitigation actions implemented, on top of efficiency plans started in previous quarters. As a result, efficiency improved by 99 bps and net operating income was 3% higher year-on-year.

LLPs up from historically low levels at the end of 2019 (covid-related provisions), portfolio sales and other one-offs in 2019.

Underlying attributable profit was EUR 1,085 mn (-16% YoY).

21

Index

1


2

Results

3

Concluding remarks

4

Appendix

22

Appendix

Balance sheet SCFConstant EUR million1 Variation

Dec-20 Dec-19 Amount %

Loans and advances to customers 101,043 101,220 (177) (0.2)

Cash, central banks and credit institutions 11,297 8,164 3,133 38.4

Debt instruments 5,658 3,104 2,554 82.3

Other financial assets 29 33 (4) (11.6)

Other asset accounts 4,961 3,963 998 25.2

Total assets 122,987 116,484 6,504 5.6

Customer deposits 39,488 39,059 429 1.1

Central banks and credit institutions 32,729 24,945 7,784 31.2

Marketable debt securities 34,554 36,476 (1,922) (5.3)

Other financial liabilities 1,175 1,401 (226) (16.1)

Other liabilities accounts 3,763 3,837 (74) (1.9)

Total liabilities 111,709 105,718 5,990 5.7

Total equity 11,279 10,766 513 4.8

Other managed customer funds 475 400 75 18.8

Mutual funds — — — —

Pension funds — — — —

Managed portfolios 475 400 75 18.8

(1) End period exchange rate as at Dec-20.

23

Appendix

Income statement SCFChange

Constant EUR million1 2020 2019 Amount %

Net interest income 3,832 3,785 47 1.2

Net fees 750 819 (69) (8.4)

Gains (losses) on financial transactions 21 (8) 29 —

Other operating income 82 46 36 77.2

Gross income 4,685 4,642 43 0.9

Operating expenses (1,981) (2,012) 31 (1.5)

Net operating income 2,703 2,630 74 2.8

Net loan-loss provisions (899) (467) (431) 92.3

Other income 65 22 43 199.4

Underlying profit before taxes 1,869 2,184 (315) (14.4)

Tax on profit (505) (591) 86 (14.6)

Underlying profit from continuing operations 1,364 1,593 (228) (14.3)

Net profit from discontinued operations — — — —

Underlying consolidated profit 1,364 1,593 (228) (14.3)

Minority interests (280) (303) 23 (7.6)

Underlying attributable profit to the Group 1,085 1,290 (206) (15.9)


24

Appendix

Quarterly income statements SCF

Constant EUR million1 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20

Net interest income 924 953 960 948 972 952 945 962

Net fees 213 200 212 194 186 159 205 200

Gains (losses) on financial transactions 1 (1) (5) (3) (9) 5 6 19

Other operating income 11 (17) 19 33 15 (16) 39 43

Gross income 1,149 1,135 1,187 1,172 1,164 1,100 1,196 1,225

Operating expenses (501) (519) (498) (495) (511) (471) (483) (515)

Net operating income 648 616 689 677 652 629 713 709

Net loan-loss provisions (118) (63) (143) (145) (315) (185) (212) (187)

Other income 24 (12) 43 (33) 44 23 (13) 10

Underlying profit before taxes 555 541 589 499 381 467 488 532

Tax on profit (157) (151) (173) (109) (107) (132) (133) (133)

Underlying profit from continuing operations 397 390 416 390 275 335 355 400

Net profit from discontinued operations — — — — — — 0 (0)

Underlying consolidated profit 397 390 416 390 275 335 355 400

Minority interests (78) (67) (82) (75) (57) (76) (71) (76)

Underlying attributable profit to the Group 319 323 334 314 218 259 284 324


Thank You.

Our purpose is to help people and businesses prosper.

Our culture is based on believing that everything we do should be:

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