Banco Santander, S.a. · BME:SAN
Banco Santander — Debt Investor Presentation (September 2019)
35 slides from Banco Santander's debt investor presentation, September 2019
Slide 1: Santander's Global Sustainable Bonds Framework
September 2019 Santander's Global Sustainable Bonds Framework Green Bond Framework «Santander
Slide 2: Important Information
Important Information Non-IFRS and alternative performance measures In addition to the financial information prepared in accordance with International Financial Reporting Standards ("IFRS") and derived from our financial statements, this presentation contains certain financial measures that constitu
Slide 3: Important Information
Important Information 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 disclosure document published by Santander. Any person at any time acquiring securities mu
Slide 4: Executive Summary
= Executive Summary = Santander 's Global Sustainable Bonds Framework is linked to our Responsible Banking strategy and in line with our intention to 7 deploy additional capital for responsible and sustainable projects. Rationale = This Global Framework, through its Funding facilities, enables a con
Slide 5: Index
«> Santander 1. Santander Sustainable Funding Strategy-Green Bond Framework 2.Responsible banking at Santander 3.Capital strength & Funding plan
Slide 6: Santander Sustainable Funding Strategy-Green Bond Framework
Santander Sustainable Funding Strategy-
Slide 7: Santander's Global Sustainable Bonds Framework
a” Santander’s Global Sustainable Bonds Framework The Global Sustainable Bonds Framework constitutes our formal concept to govern all the potential Green, Social or Sustainable bonds. = For each type of bond issuance, an specific Framework under the Global Framework's guidelines will be published. =
Slide 8: Santander's Global Sustainable Bonds Framework
a” Santander’s Global Sustainable Bonds Framework Green eligible categories Social eligible categories Category - SDG Description’ Category - SDG Description? Energy effi = Energy savings and consumption. Healthcare = Hospitals financing, medical equipment and = Contribution to climate change mitiga
Slide 9: Green Bond Framework: Rationale to issue Green Bonds
a” Green Bond Framework Rationale to issue Green Bonds = The issuer is fulfilling its purpose acting in a responsible way collaborating to address the climate change challenge, fulfilling its mission, serving shareholders and benefiting society as a whole. = The issuance support Santander's Responsi
Slide 10: Green Bond Framework: Use of proceeds
a” Green Bond Framework wo Process of Reporting & Management evaluation of proceeds and selection External proceeds , review Use of proceeds = The net proceeds of green bond issuances under the scope of this " ' Category - SDG SDG Green Bond Framework (the “Green Bond") will be used to finance aay)
Slide 11: Green Bond Framework: Process of evaluation and selection
a” Green Bond Framework Process of evaluation and selection Process of evaluation and selection Evaluation and selection of Eligible Assets based on relevant internal : : : " and external expertise with well-defined roles and responsibilities: Project selection Project evaluation = Green Bond Steeri
Slide 12: Green Bond Framework: Eligible Assets
a” Green Bond Framework Process of evaluation and selection Eligible Assets = Eligible Assets will contribute to defined environmental objectives, have expected environmental benefits and will meet a set of eligibility criteria defined by the Issuer: * The Eligible Assets categories are clearly defi
Slide 13: Green Bond Steering Group
a” Green Bond Framework Process of evaluation and selection Green Bond Steering Group 3 F 3 Role @ Santander Review and validate the pool of eligible green assets. Validate the annual reporting information and related documents to be included in Santander’s Annual Report; review the appropriate exte
Slide 14: Green Bond Framework: Management of proceeds
a” Green Bond Framework Management of proceeds = The net proceeds of the Green Bond will be managed by Santander’s Funding Team (within the Financial Division) in the form of liquidity in a single funding pool in accordance with Santander's normal liquidity management policy. = The allocation of fun
Slide 15: Green Bond Framework: Reporting
e” Green Bond Framework Amount of proceeds allocated to the Eligible Green Assets Type of asset @ Santander Reporting & External review Reporting The monitoring process is based on relevant internal expertise: Green Bond information will be externally verified Information on the environmental impact
Slide 16: Green Bond Framework: External review
a” Green Bond Framework External review “Vigeo Eiris confirms that the Bond considered by Santander is a “Green Bond” with positive contribution to sustainable development, globally aligned with the Green Bond Principles." “The reporting process and commitments are good, covering both the funds allo
Slide 17: Responsible banking at Santander
R ’ .*., 7 #, <] 4. i g atSan ander
Slide 18: Santander's responsible banking governance framework
© Santander's responsible banking governance framework Board Responsible Banking, Sustainability & Culture Committee (RBSCC) Culture Steering Inclusive and Sustainable Banking Steering Challenge I: New business environment Challenge II: Inclusive and sustainable growth Corporate Responsible Banking
Slide 19: Building a responsible bank from our core strengths
” Building a responsible bank from our core strengths OUR PURPOSE OUR AIM 4=)) OUR —)/ CHALLENGES OUR PRIORITIES @ Santander To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities |. New business e
Slide 20: Independent recognition for our progress
~” Independent recognition for our progress Dow Jones Sustainability Indices In Collaboration with RobecoSAM «® Banco Santander included in the Dow Jones Sustainability Index since 2000. In 2019 Santander is the world leader, ranking first among the 25 banks in the index this year. *MSCI: THE USE BY
Slide 21: Santander's Responsible Banking public commitments
@ Santander’s Responsible Banking public commitments Bw z 2a Se ge oe ae a5 Inclusive & sustainable «> Santander — — —P Cumulative target SM mon 2018 2019 2020 2021 2022 2023 2024 2025 ES Top 10 country to work for! (core geographies)— — — — — = = = 4 ----------- >6 Women on the Board eececes-- eee
Slide 22: Collaborating globally to tackle UN SDGs
~” Collaborating globally to tackle UN SDGs Focus mainly on 4 out of 17 SDGs and working with key organisations on sustainability quaury GENDER enueAriON EQUALITY deer womcao Hh 4 cumare ECONOMIC GROWTH AcriON | oul ee 11 sazeass 19 szosee neuer acquis oceans constMnoN aie om ‘opraqucTon (oe) | <> |
Slide 23: Santander's leadership in green finance
@ Santander's leadership in green finance = Market leader in renewables finance (2009-2018) Breakdown of MW financed by type of renewable energy sso saaio (#2 . sooo a 4 Wind energy 25000 oo sexe 15.000 “aes ay "son eo 07 ors muse oe 43% solar energy = SEB Ream e or op Sf » » F 2 8 é fF & F&F Fo FE
Slide 24: Market leader in renewables finance and low presence in fossil fuel
“” Market leader in renewables finance and low presence in fossil Fuel = Financing of renewable energy (MW financed) = Low presence in fossil Fuel finance #30 by the Banking on Climate Change 2019 Report? In 2018 Santander participated in the financing of zone ross Fel Fancig(5) renewable energy pro
Slide 25: Santander's leadership in green finance
@ Santander's leadership in green finance We believe that we can support our customers Accumulated green finance raised and facilitated" by helping them in the transition to the green (60) economy. So we aim to raise 120Bn funding to 2025 and 220Bn to 2030 in green finance to help tackling climate c
Slide 26: Active customers at the end of 2018
active customers at the end of 2018
Slide 27: Capital strength & Funding plan
Slide 28: Group capital ratios and medium-term targets
14.83% 14.80% >15% 13.20% 13.20% 2.00% 1.96% 2.07% 2.00% 1.57% AT1 2.00% 1.43% 1.50% 1.50% 1.50% 1.00% 1.00% CCyB; CCyB; 1 2.50% 0.20% 2.50% 0.20% 11.30% CET1 11.30% 11-12% 1.50% 1.50% 4.50% 4.50% Regulatory Requirement Group ratios Jun-19 Assumed regulatory Group ratios Jun-19 Medium-term 2019 requ
Slide 29: Capital: 2018 EBA stress test
Capital =” 2018 EBA stress test - Fully loaded CET 1: adverse scenario Fully loaded CET1: adverse scenario (%) FLCET1: 2017 vs 2020 adverse scenario (bps) (aoa © 3mm @ 0141 os) oa System: -395 bps —----- Peer average: -403 bps ram @ umm @ —_, 22 © 23) @ AN 9.20 34] c« ©@ 368 a) 301 @ 2017 2020 437 e
Slide 30: Peer comparison
Peer 1 3.1 2.8 Peer 2 2.6 Peer 3 2.3 Peer 4 2.0 Peer 5 1.9 Peer 6 1.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 30
Slide 31: US IT CH
695% 344% 123% 108% 88% 76% 61% 44% 42% 34% 9% US IT CH CH FR FR US US NL US 2x 2x 0x 0x 6x 4x 6x 4x 1x 10x 5x 31
Slide 32: Liquidity and Funding: Financially autonomous subsidiaries
Liquidity and Funding ~” Financially autonomous subsidiaries Legal autonomy structure Santander S.A.) | intander Consumer Finance! Banco Santander Brasil Grupo Financiero Banco Mexico Santander TottaSGPs, Dec-18 Banco Santander Chile Banco Santander Rio > Legal autonomy: There are no legal commitmen
Slide 33: Liquidity and Funding: Santander S.A. funding plan
Liquidity and Funding © Santander S.A. funding plan Covered bonds 1.6 15 3-5 Senior preferred 0.5 43 3-5 Senior non-preferred 6.1 0.0 -- Hybrids 28 LB 15" TOTAL 10.9 6.9 75-115 o/w Subordinated 8.9 11 15 (1) Santander’s understanding of current policy under the existing recovery and resolution rules
Slide 34: Thank You.
Thank You. Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be: Simple Personal Fair 2 ayn ] ustainability Indices @ Santander Sustainable ti
Slide 35: Glossary
Glossary (APMs) Alternative Performance Measures (AT1) Additional Tier 1 (Bn) Billion (bps) Basis points (CCoB) Capital Conservation Buffer (CCyB) Countercyclical Capital Buffer (CET1) Common Equity Tier 1 (CNMV) Comision Nacional del Mercado de Valores (DJS!) Dow Jones Sustainability Index (EBA) Eu
Banco Santander — Debt Investor Presentation (September 2019) on 6ix