Banco Santander, S.a. · BME:SAN
Banco Santander — IPO Roadshow (November 2008)
19 slides from Banco Santander's IPO roadshow presentation, Nov 10, 2008
Slide 1: Important Information
IMPORTANT INFORMATION 2 Banco Santander, S.A. ("Santander") cautions that this presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are found in various places throughout this presentation and
Slide 2: Important Information
IMPORTANT INFORMATION 3 We expect to file a registration statement (including a prospectus) later today with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents we have filed with the SEC f
Slide 3: Proposed rights issue
Proposed rights issue 4 Why we propose this rights issue Conclusion
Slide 4: EUR 7.2bn capital increase
EUR 7.2bn capital increase 5 Capital increase of EUR 7.2bn with Preferential Subscription Rights Number of shares: 1,599mm 1 new share for 4 existing ones Pricing: EUR 4.5 per share Discount: 46.0% to previous day price or 40.6% to TERP Theoretical value of each subscription right: EUR 0.77 Merrill
Slide 5: Proposed rights issue: Why we propose this rights issue
Proposed rights issue Why we propose this right issue Conclusions
Slide 6: In Q3'08 Santander again did well in an extremely complex environment
IN Q3'08 SANTANDER AGAIN DID WELL IN AN EXTREMELY COMPLEX 7 ENVIRONMENT ... Quarterly ordinary attributable profit Group's ordnary attrib. profit In Q3'08 capital gains of EUR 586 million from the sale of Santander Financial City are not included
Slide 7: Widening the gap with our competitors
....which allows us to continue widening the gap with our competitors*... 8 H1'08 profit (EUR mill.) EPS (% chg 2007**)
Slide 8: Not only in profits but also in capital and dividends
....not only in profits but also in capital and dividends... 9 SANTANDER: CORE CAPITAL CT1 + GENERIC PROVISIONS ABOVE 7% CT1 A LARGELY PLAIN VANILLA BALANCE SHEET ....WITH A HIGH CONVERSION RATIO OF RWA / ASSETS A STRONG RECURRENT PROFIT > 2 BN PER QUARTER
Slide 9: A very challenging environment that has changed the rules of the game of the banking industry
A very challenging environment that has changed the rules of the game of the banking industry 10
Slide 10: We have decided to raise our core Tier 1 target from 6% to 7%
We have decided to raise our core Tier 1 target from 6% to 7% 11 Santander's core capital has recurrently been around 6%... New target (after integrations) ....consistent with sustained growth of the cash dividend CAGR (02-07) = +18% Maintaining approx. 50% pay-out in cash
Slide 11: To attain the new target core capital we propose a capital increase with rights
To attain the new target core capital we propose... 12 ....a capital increase with rights aimed to our shareholders. A different transaction vs. our competitors...
Slide 12: We have additional capacity to strengthen our core capital over time
We have additional capacity to strengthen our core capital over time... 13
Slide 13: Transaction rationale
Transaction rationale 14 A drastic change in the banking sector It is NOT related to acquisitions It is NOT related to hidden losses It does NOT reflect a deterioration trend of the business
Slide 14: A transaction to further strengthen our solvency relative to the sector
In short, a transaction to further strengthen our solvency relative to the sector 15 We are ahead of our competitors... ....and benefit from a higher core capital
Slide 15: Dividend Policy
Dividend Policy 16 DPS impact We aim to keep our Dividend per Share flat in 2009 relative to 2008 (with payout remaining around the 45- 55% level), paid fully in cash
Slide 16: Proposed rights issue: Conclusions
Proposed rights issue 17 Why we propose this rights issue Conclusions
Slide 17: A transaction to further strengthen our solvency relative to the sector
A transaction to further strengthen our solvency relative to the sector 18 In the new environment, we have decided to increase our Core Tier 1 target from ca. 6% to ca. 7% In this context, a EUR 7bn rights issue allows us to reach the best balance between earnings and capital We have additional capa
Slide 18: Investors and Analysts Relations
Investors and Analysts Relations Santander Dow Jones Sustainability Indexes Member 2007/08
Slide 19: Investors and Analysts Relations
Investors and Analysts Relations ‘Ciudad Grupo Santander Edificio Pereda, 1"planta Avda de Cantabaa, sin 28660 Boatila del Monte Madrid Espafia) Teléfonos. 9125085 1491 259.65 20 Fax 91.257 02.45. ‘mall nvestor@arupasantander.com wwegrupesantander.com AS Santander