Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Day (March 2023)
29 slides from Banco Santander's investor day presentation, March 2023
Slide 1: Santander Investor Day London – Héctor Grisi, Group CEO
«> Santander INVESTOR | 232" DAY LONDON Héctor Grisi Group CEO ms a a tg
Slide 2: Important information
Important information Forward-looking statements Santander hereby warns that this document contains “forward-looking statements” as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like “expect”, “project”,
Slide 3: Important information
Important information Nonetheless, the APMs and non-IFRS measures are supplemental information; their purpose is not 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 compariso
Slide 4: Entering a new phase of shareholder value creation
Entering a new phase of shareholder value creation… 2023-2025 targets Strength Disciplined capital allocation CET1 FL RWA with RoRWA > CoE >12% TNAVps+DPS c.85% Double-digit growth Average Shareholder remuneration through-the-cycle Profitability Payout RoTE 50% Cash dividend + SBB 15-17% Note: Targe
Slide 5: Unique combination: local leadership with global scale and network
… given our unique combination: local leadership with global scale & network Global and network As a result, we aim to businesses to increase be the most profitable local banks’ profitability bank in every market >30% of revenue We are Top 3 in currently from global and profitability in 9 out of net
Slide 6: Pillars for value creation across the Group
5 pillars for value creation across the Group, with focus on Retail & Commercial banks… Customer centric Net new customers (total, active1) 1 Value creation 2 Simplification & RoTE, TNAVps + DPS automation Digital Cost per customer and efficiency ratio Bank with Branches Capital 5 3 Network contribu
Slide 7: Specific execution plans through 2025
…with specific execution plans through 2025 1 2 3 4 5 Customer Simplification Network Customer Value Capital creation centric & automation contribution activity New business & Streamlined products SCIB: strengthen Capital generation Deposit pricing operating model for and processes global coverage &
Slide 8: Converging Consumer & Commercial customers to a common operating model
We will converge our Consumer & Commercial customers to a common operating and business model – One Transformation Less time spent on operations in branches… … with a high level of automation % Operational Activity in Branches # Operational FTEs per mn Customers Customer value- added branch network
Slide 9: One Transformation | Accelerating execution in US
One Transformation | Accelerating execution in US Retail & Administrative Costs2 Simplification (USD bn) 2022 2025 Retail products (#)1 c.314 <20 2.0 0.3 0.7 1.7 Process automation and redesign 33% from simplification 2022 2025 % Operations in Branch c.50 <15 Reduction & automation of c.500 c.100 hi
Slide 10: A tried and tested process
A tried and tested process Retail & Commercial banks Global and network One Transformation businesses Simplify products, Improve Bring to automate & digitalize customer activity maximum speed processes to grow, and take capabilities reduce cost per advantage of of SCIB, WM&I, customer & improve “lea
Slide 11: Aiming to be the most profitable bank in each market
Aiming to be the most profitable bank in each 11
Slide 12: Europe | One Transformation - Largest profitability increase & capital contribution
Europe | One Transformation - Largest profitability increase & capital contribution to Group Customer centric & activity Simplification & automation Increased loyalty, through better customer Simplification & automation and a more service & experience common operating model Profitable Active custome
Slide 13: Spain deep dive | Radical transformation to enhance efficiency & profitability
Spain deep dive | Radical transformation to enhance efficiency & profitability Customer centric & activity Simplification & automation Redefine branch model and gain share of Deploy a data driven platform wallet to deliver growth Active customers growth c.+10% Profitable Cost per customer1 target c.
Slide 14: North America | Boosting sustainable profitability levels
North America | Boosting sustainable profitability levels Country realities & markets are different but common approach & path US North America Mexico RoTE c.15% Plan: Market share gain through 2025 target innovating in multichannel Plan: Modernize our depository platform to build a digital first pr
Slide 15: US | Focused model committed to profitable growth
US | Focused model committed to profitable growth across core businesses Targeting segments with proven competitive advantage and strong Group network contribution Not trying to be a Universal Bank Winning Factors Adj. RoTE1,2 US1 Market leading full-spectrum Auto lender increasingly funded by bank
Slide 16: US | Focus on improving deposit cost to serve and scalability
US | Focus on improving deposit cost to serve and scalability Simplification 10% additional growth in Transformation consumer deposits equates to Rationalize businesses and products with 10bp reduction in cost to serve Leverage Group digital capabilities to upgrade limited scale and profitability de
Slide 17: South America | Regional leader to benefit from global network
South America | Regional leader to benefit from global network & structural growth Customer centric & activity Simplification & automation Loyal customers and transactional business Improve our cost management Profitable Revenue +8% growth Efficiency ratio target c.36% per customer1 target in 2022-2
Slide 18: Brazil deep dive | Increased profitability & risk-adjusted returns
Brazil deep dive | Increased profitability & risk-adjusted returns from higher customer penetration & lower costs Customer centric & activity Simplification & automation Increase loyalty Further improve cost to income Active customers growth target c.+15% Efficiency ratio target c.-100 bps in 2022-2
Slide 19: DCB | Profitable growth across cycle
DCB | Profitable growth across cycle DCB Customer centric & activity Simplification and automation Evolve from self-contained units to Leasing, subscription & BNPL platforms common platforms Active leasing x2.5 Profitable Cost-to-serve1 target c.-15bps customers (#) in 2025 growth 2025 in 2022-2025
Slide 20: The result of our plans: Increased profitability across the board
The result of our plans: Increased profitability across the board Contribution to Group’s RoTE targets underlying profit1 2022 2025 2022 2025 Europe 9.3% c.15% 33% >40% North America2 11.1% c.15% 25% 20-25% South America 18.8% c.19% 31% c.25% Digital DCB 13.7% c.15% 11% >10% Consumer Bank 1) Contrib
Slide 21: Global businesses: Auto, Payments, PagoNxt, WM&I, SCIB
Auto Payments PagoNxt WM&I Wealth Management and Insurance SCIB Santander Corporate and Investment Banking 21
Slide 22: SCIB | Global scale & local expertise provide differentiated value
SCIB | Our global scale & local expertise provide differentiated value-added to our clients Europe North America South America RoTE target Strengthen our advisory Up-tier our franchise focused From multi-country to pan- capabilities leveraging a pan- strategy leveraging on our regional European plat
Slide 23: WM&I | Aim to be a top operator in all relevant markets
WM&I | Aim to be a top operator with a strong share in all relevant markets Wealth Management & Insurance WM&I Plans Key figures1 RoTE target Continue to build our global platform, push +10-15% Total revenue CAGR 22-25 target Private further specialization of the business and Banking c.34% % current
Slide 24: Payments | PagoNxt and Global Cards | Integration in global platform
Payments | PagoNxt and Global Cards | Integration in global platform Sustainable growth Increase banks profitability above key markets expectations and customer engagement Payments’ total transactions processed1 2022 Comparison of customers without expected to grow CAGR 2022-25 and with acquiring PO
Slide 25: Leverage global OEM relationships to expand Auto business
Leverage our global OEM relationships to expand the business across our global footprint Sustainable growth above Global OEM relationships the market average in Europe and the Americas Continue to grow above the market Strengthen our global OEM relationships leveraging our OEM relationships 2022 202
Slide 26: Our Santander
Qu i: @ Santander
Slide 27: The result of our plans: Increased profitability across the board
The result of our plans: Increased profitability across the board ROTE 2023-25 Global & network businesses Regions’ RoTE targets target Revenue 2022 2025 CAGR 2022-2025 target SCIB c.10% 9.3% c.15% c.10% 11.1% c.15%1 15-17% WM&I c.30% 18.8% c.19% Auto c.7% DCB 13.7% c.15% 1) North America 2025 RoTE
Slide 28: Entering a new phase of shareholder value creation
Entering a new phase of shareholder value creation 2023-2025 targets Strength Disciplined capital allocation CET1 FL RWA with RoRWA > CoE >12% TNAVps+DPS c.85% Double-digit growth Average Shareholder remuneration through-the-cycle Profitability Payout RoTE 50% Cash dividend + SBB 15-17% Note: Target
Slide 29: Thank You.
Thank You. Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be: 29