Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Day (2023)
21 slides from Banco Santander's investor day presentation, Mar 6, 2023
Slide 1: Investor Day London - Ana Botin, Executive Chair
«> Santander INVESTOR | 23/2ovv DAY LONDON Ana Botin Executive Chair ms a a ts
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: 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: Our business model brings profitable growth, capital strength and shareholder remuneration
Our business model brings profitable growth, capital strength and shareholder remuneration… Growth and profitability Capital strength and shareholder remuneration Attributable profit evolution1 (€bn) CET1 evolution (%) 12.0 9.6 11.3 11.4 11.9 12.0 8.7 10.6 10.8 8.1 8.3 COVID 10.1 7.5 6.6 6.6 crisis
Slide 7: Delivering on our medium-term targets
… leading us to deliver on our medium-term targets… ID 2019 Targets 2022 Loyal customers (mn) 26 27 Digital customers (mn) 50 51 % Digital sales over total >50% 55% Efficiency ratio 42%-45% 45.8% CET1 FL 11%-12% 12.04% RoTE 13%-15% 13.4% Payout1 40%-50% c.40% 1) Subject to approval of the final divi
Slide 8: Meeting our 2022 targets
… and meeting our 2022 targets Growth Profitability Strength EPS growth Revenue1 C/I RoTE CET1 FL CoR +23% Our 2022 Mid-single c.45% >13% c.12% <100bps targets digit growth Our 2022 achievement +6%2 45.8% 13.4% 12.04% 99bps TNAVps+ Cash DPS +6% 1) Constant €. 2) 2022 vs. 2021 in € +12%. 8
Slide 9: Who we are and what guides us
Looking ahead: who we are and what guides us remains Our Purpose To help people and Our Aim businesses prosper To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities Our how Everything we do should
Slide 10: Our business model is based on unique competitive advantages
Our business model is based on unique competitive advantages Geography Digital bank with In-market and branches Global Business Balance sheet 10
Slide 11: Customer focus and scale powered by higher network contribution will drive value creation
CUSTOMER FOCUS and SCALE powered by higher network focus contribution will drive value creation 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
Slide 12: Our customers value our ESG focus
Our customers value our ESG focus – a growth opportunity focus 2019 – 2022 delivery 2025 targets Green Finance raised and facilitated €94.5bn €120bn Socially responsible Investments (AuM) €53bn €100bn People financially empowered1 >10mn 15mn 1) Since 2019. Additional 5mn people by 2025 with access a
Slide 13: To lead in profitability, we will combine our in-market scale
To lead in profitability, we will combine our in-market SCALE… One of the largest banks by # customers… … and by # of cards Top 3 lender c.200 in 9 out of 10 markets1 Total (mn) 115-120 (mn) 160 #5 in US Auto 97 Top 3 in profitability 2022 2025 in 9 out of 10 Active (mn) 99 c.125 markets2 2022 2025
Slide 14: With our Global & Network scale
… with our Global & Network SCALE… Network contribution to our banks SCIB WM&I Payments Auto Leader Leader #3 #1 in the corridors Latam - NA – Latam Getnet Merchant Europe and Latam in Latam and Iberia EU in Private Banking Acquiring Business €3.4bn €51bn c.31bn c.€160bn 2022 Cross-border and Privat
Slide 15: Global & network businesses to contribute >40% of Group revenue by 2025
… which will contribute >40% to Group´s total revenue and >50% to Group´s total fees by 2025 Global & network businesses Global reach and local strength contribution Leading product factories (Energy transition, SCIB Infrastructure, Project Finance, Trade finance, Global 2025 targets Cash Management
Slide 16: 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 17: Journey to a digital bank with branches powered by Santander network
… which will drive the Group’s journey to a digital bank with branches powered by Santander network Operating performance improvement - Cost to income (%) 45.8% 200 – 250 bps 100 – 150 bps • Simplification & 50-75bps automation • In US, efficiencies in • Strengthening of SCIB and c.42% Consumer and
Slide 18: Our diversification provides a better risk-return profile than our peers
Our DIVERSIFICATION provides us with a better risk-return profile than our peers 1 Simple, transparent and easy to analyze balance sheet PPP1 2.2x uncovered NPLs Stable deposit structure, c.80% of high-quality NPL and coverage 2 retail customer deposits 6.0% 5.6% 5.2% 180% 160% 4.4% 3 Low-risk busin
Slide 19: Our KPIs by 2025
Our KPIs by 2025 2022 2025 targets RoTE (%) 13.4 15-17 TNAVps + DPS growth Payout (Cash + SBB)1 (%) 40 50 2023-2025 EPS Growth (%) 23 Double-digit Total customers (mn) 160 c.200 1 Customer centric Active customers (mn)2 99 c.125 Simplification & Efficiency ratio (%) 45.8 c.42 2 automation Global & n
Slide 20: 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 21: 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: 21