Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Day (September 2015)
133 slides from Banco Santander's investor day presentation, Sep 25, 2015
Slide 1: Investor Day 2015 – Jose García Cantera
INVESTOR DAY 2015 LONDON, 23-24 SEPTEMBER: Matias Rodriguez Inciarte ——— Vice Chairman —— —=SFF. a
Slide 2: Disclaimer
A. ("Santander sec") ir ‘Other unkaowvn je whether os @ ‘result of new information, future events or otherwise ir ust bosis of " securities for its purpose and only on such information os is contained in such public information having token all such professional or other advice os it considers neces
Slide 3: Agenda
Agenda (1) Santander Risk Management Model e Risk profile and strategy (3) concusins INVESTOR BSE Hering peopte and businesses prosper === simple Personal Fair INVESTOR
Slide 4: Agenda
Agenda (1) Santander Risk Management Model © Risk profile and strategy © Conclusions _E_—_—— i INVESTOR —_=—————_ + Simple | Personal | Fair INVESTOR Helping people and businesses prosper —_—=———<_
Slide 5: Group Wide Risk Management in an autonomous subsidiary model
, both by and by segment Maintaining a through a solid Group Wide Risk Management (GWRM) in an autonomous and (Board Risk Committee)
Slide 6: Simple commercial business
Simple commercial business (Dec'14, €bn) Cash and deposits at credit institutions * Credit Risk Derivanives Our core business AFS Portfolio ‘Trading Portfolio * Operational Risk Limited exposure with strong control culture Gross loans to customers * Market and Structural Risk Low compl a and custome
Slide 7: Credit Risk Diversification
Credit Risk Diversification Risk by geography isk by segment and product ————E— (Dec’14, €bn) (Dec’14, €bn) Braail 'SMES (ex RE) Z Corporates 7% ux a México Gross customer loans Individuals 7620 59% RSE “tring peopte and businesses prosper =———— « Simple | personal | Fair INVESTOR DAY 2015
Slide 8: Risk Appetite: medium-low risk profile
Risk Appetite: medium-low risk profile Mediu profile ensured by a conservative risk appetite a * Limit 100% profit before taxes (PBT) in the worst year in a plausible adverse scenario of 3 years Losses / Volatility | : / || + Operational losses / gross margin (YTD) does not exceed 2.8% Solvency o iI
Slide 9: Group Wide Risk Management in an autonomous subsidiary model
Group Wide Risk Management in an autonomous subsidiary model Subsidiaries a Double control layer both local and global, ensuring effectively a low medium risk profile * Sharing best risk ict all Forward looking approach both at local and global functions + Excellence in risk models: the global boost
Slide 10: Independent risk management
Independent risk management ) ane Executive Risk i} Committee | rwice pen week k Governance * risks type + Ensures that the Group's activities are con: 7 ic and i covering all ent with the risk appetite Provides the Board Risk Committee with the information it may require Executive i? Approval of th
Slide 11: Pro-active and effective risk management
Pro-active and effective risk management Santand have been successfully applied across different geographies and scenarios nanagement capal BRAZIL- Better mix and pro-active risk management ‘SPAIN - Real Estate portfolio run down | explains Cost of Credit? reduction and the convergence in over 90 ra
Slide 12: Sustainability, low volatility and improving solvency (1/2)
Sustainability, low volatility and improving solvency (1/2) Results sustainability ——————————— Profitability drivers PPP#/loans 3.1% 7.9% 3.0% 3.0% 1.7% 1.7% 3.0% 3.3% 3.3% 3.3% 1.4% 1.4% 1.4% 94 1.0% 1.3% 2008 2009 2010 2011 2012 2013 2014 AHS Santander is 1 of the 3 banks among international G-SIB
Slide 13: Sustainability, low volatility and improving solvency (2/2)
Sustainability, low volatility and improving solvency (2/2) nce under the ECB Comprehensive Assessment stress test Capital adequacy resil The comprehensive assessment underscored the resilience of the a0 Group’s balance sheet Santander oe 78 Lowest adjustment among its peers BNP 5 (4b.p.), which sho
Slide 14: Agenda
Agenda (2) Risk profile and strategy (3) Conclusions _E_—_—— i INVESTOR _=————_ # Simple | Personal | Fair INVESTOR Helping people and businesses prosper —_—=———<_
Slide 15: Credit Risk Forecast
Credit Risk Forecast Cost of credit still decreasing, heading towards normalised levels Group (%) —Group — Group excluding SCUSA 1.20) 531.43 1.32 oo 0.960) Dec’s8(e) Dec'12 Dec’13 Dec’ Jun'15 © © ongoing downward trend close to pre-crsis levels (approx. 60-70 Pa yo b.p.), aligned with a better cred
Slide 16: Credit Risk Forecast: Brazil
Credit Risk Forecast: Brazil Increased resilience through tighter Risk policies and better portfolio mix will enable Santander Brazil to successfully overcome a tougher environment Brazil cost of credit? projection (%) * Improved underwriting models: enhanced capabilities for discrimination in Indiv
Slide 17: Market Risk
Market Risk Trading supports a customer driven business. Low and stable VaR of wholesale bai _ + Low complexity + Flow products @ualliztbe + Low market risk profile + Avoiding complex structured products drivers + Focused on corporate customers Wholesale Banking Activity: ‘Average daily VaR (EMM) ‘e
Slide 18: Structural risk and liquidity
by country’s in ination wil ‘ALCO under and aim to give and recurrence to the net value, while keeping terest margin of commercial acti ty and the economic and levels thanks to solid retail banking id funding model and prudent risk management ahead of schedule with of customer deposits. for parent c
Slide 19: Operational Risk
Operational Risk ned with our business activities under a conservative risk appetite framework Increasing ional risk in the Group. Integral in order to implement AMA? in all units The ratio of operational risk losses vs gross margin is 2.50% as of end 2015, but it is reduced to 1.60% when excluding
Slide 20: Conduct and customer protection, Regulatory Compliance and Reputational Risk
Conduct and customer protection, Regulatory Compliance and Reputational Risk Conduct, Compliance and Reputa isks, focus for next years * Conduct, AML, Regulatory and Reputational risks are gaining relevance due to the current regulatory environment Control of these risks always has been embedded in
Slide 21: Agenda
Agenda (3) Conclusions SS———— i INVESTOR —_=————— » Simple | Personal | Fair IMESTOR Helping people and businesses prosper —_—=———<_
Slide 22: Key takeaways (1/2)
Key takeaways (1/2) Build our future through forward looking management of all risks, protecting our present through a sound robust control environment ARM ‘Maintain our risk management model and reinforce: Risk appetite drives business Risk Appetite : = =| Risk Identification and Assessment Stress
Slide 23: Key takeaways (2/2)
Key takeaways (2/2) Balance sheet focus on retail and commercial Diversification by geography, segment and customer * Stability and controlled volatility of Budget and strategic plans embedded results: in medium-low risk appetite * Normalisation of cost of credit c.1%(*) Double control layer (global
Slide 24: «> Santander
«> Santander Simple | Personal | Fair Helping people and businesses prosper —$—$———— simple Personal Fair AVFSTOR
Slide 25: Appendix
Appendix = ee . ie R Helping people and businesses prosper | <—=_—=—=—_—_———————_—__ 2+ simple | Personal | Fair INVESTOR
Slide 26: Current focus
Current focus Credit . Structural Strategic + 100% under standard model approach with Normalisation of risk levels Operational increasing control under AMA’ Maintaining expected low losses profile Conduct and Consumer Stable low risk levels (VaR) with incomes based on customer activities Focus of re
Slide 27: Credit Risk by segment and product
Credit Risk by segment and product (emm) Grossloans % NPL Mortgages 304,466 2.73% Consumer Lending 145,017 ‘5.47% SMEs! 55,773 9.17% Corporates! 118,981 6.78% Real Estate 49,726 15.99% secB 88,141 2.67% TOT! 762,104 Figures a Doe 14 PD 1.66% 6.97% 5.01% 3.21% 9.77% 0.80% Improving risk profile and m
Slide 28: Credit Risk by segment and product: Mortgages
Credit Risk by segment and product: Mortgages ies that ensure por and collateral quality org + Positive macroeconomic (em) Grossloans ~%NPL PD EL environment. Risk policy is maintained UK 193,048 1.62% 1.28% 0.03% Spain 47,721 5.82% 2.48% 0.44% Portugal 14,805 4.12% 1.73% 0.25% Normalisation of the
Slide 29: Credit Risk by segment and product: Consumer lending
Credit Risk by segment and product: Consumer lending turn balance (em) Grossloans %NPL = PD EL ‘a © + Rebalance risk strategy while Brazil 26,578 8.43% 7.80% 4.56% keeping high profitability USA 25,155 3.93% 17.88% 7.73% SCF Germany 23,882 3.94% 1.65% 0.80% >. ‘SCUSA's growth drives high PD levels S
Slide 30: Credit Risk by segment and product: SMEs
Credit Risk by segment and product: SMEs' Strategic portfolio whi ‘ended to consolidate supported by corporate project Santander Advance) (MM) — Grossloans ~%NPL PD EL *) * Trend to normalisation: improving behaviours along with a positive Spain 16,482 13.69% 3.88% 1.15% macro economy UK 11,213 5.53
Slide 31: Credit Risk by segment and product: Corporates
Credit Risk by segment and product: Corporates! (emm) Spain Brazil UK TOTAI Figutesat Dec (heel Rea Estate Grossloans % NPL PD EL $7,089 7.10% 3.78% — 1.08% 14,325 5.04% 3.21% 1.56% 9,214 1.63% 4.13% 0.90% 9,346 1.63% 1.15% 0.16% Chile represents 6% of total Middle Market/ Mexico 5% / Portugal 3% 11
Slide 32: Credit Risk by segment and product: Real estate
Credit Risk by segment and product: Real estate Decrease of the RE concentration in terms of Group exposure and improvement of the portfolio’s credit risk profile (€MM) Grossloans %NPL PD EL % Coverage PRE Includes Social Housing (low default UK 20,531 1.64% 1.35% 0.20% 34.02% portfolio), Regional P
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Simple | Personal | Fair
Slide 34: Investor Day 2015 – Angel Rivera
INVESTOR DAY 2015 LONDON, 23-24 SEPTEMBER: Angel Rivera ——— Heac-of Retail &€ommercial Banking ee ee ——
Slide 35: Disclaimer
A. ("Santander sec") ir ‘Other unkaowvn je whether os @ ‘result of new information, future events or otherwise ir ust bosis of " securities for its purpose and only on such information os is contained in such public information having token all such professional or other advice os it considers neces
Slide 36: The Global – Local Model
The Global — Local Model Asa global group, we ste a unique opportun he to share locally the advantages of being global IBAL-LOCAL-MODEL: the best of both worlds The best of being local The best of being global Focus on performance Autonomy and accountability: * Commercial Strategy definition * Execu
Slide 37: Objectives of our commercial transformation
Objectives of our commercial transformation Grow the income li Gain profitable market share } Be the best retail and commercial bank in each of our markets fl + Upgrading the bank: processes, experience and customer satisfaction + Developing more efficient distribution models: digital banking, branc
Slide 38: Our aim
Our aim im is to add value to all U! Identify and Share Evolve Generate The best Retail and The business, Synergies Commercial banking undertaking across the group with internal and complex and global external best practices projects Helping people and businesses prosper _ _=—————— «Simple | persona
Slide 39: Levers for our commercial transformation
Levers for our commercial transformation Network Customer = Multichannel Customer Specialisation Banking Vision Experience fs © ££ D © — #xz° SS Simple | Personal | Fair BSI 6100 pcorte and businesses prosper —$—$—$—$——————— 5 simple Personal | Fair INVESTOR
Slide 40: Levers | 1. Network Banking
Levers | 1. Network Banking ; ; + Santander Trade Portal —~> Capture international trade flows + Santander Trade Club Customer Customer / Potential + Commercial corridors Customer Santander Passport —~> " Consistent and International Desk homogeneous relationship with ‘Advanced systems, products and
Slide 41: Levers | 1. Network Banking — Trade Portal and Trade Club
Levers | 1. Network Banking — Trade Portal and Trade Club Trade facili ial contact between customers in our geographies iment value offer for Intermec the country of compe in Be customers trade flows r "1 Trade active Traffic/month wemics 20K 200k 1.2MM 22a 17,000 profiles 11k Shoes 4 Hebhg people n
Slide 42: Levers | 1. Network Banking — Passport and International Desk
Levers | 1. Network Banking — Passport and International Desk Santander Passport: a multi- International Desk: a lever to country relationship model attract customers and provide 5 i 5 service, helping foreign companies Local management of pricing andrisk | ting settled in Santander Markets * Same c
Slide 43: Levers | 2. Customer Vision — NEO CRM and Business Intelligence
Levers | 2. Customer Vision — NEO CRM and Business Intelligence Leveraging Chile’s Neo CRM as a model of advanced commercial tools 360 ° Customer’s vision Improved Integration of channels commercial productivity Commercial Intelligence (53% in Chile) & Friendly and easy to use + Focus on performance
Slide 44: Levers | 3. Multichannel
Levers | 3. Multichannel Multichannel and digital new corporate model: to offer the best experience to our customers anywhere anytime r 7 of efit @' 15.1um +16: Ld Digital customers Digitalisakeypart Contact @ Internet 5.5m 150s. ofa wider te Mobile customers multichannel Multichannel Moneta transfo
Slide 45: Levers | 3. Multichannel. Examples
Levers | 3. Multichannel. Examples "BZWBK24 Mobile’ - Poland Spendlytic En Santan s Tiivezesmi firma AF Firma Vocal Helping people and businesses prosper —=$=————— Simple Personal air NVESTOR
Slide 46: Levers | 4. Customer Experience
Levers | 4. Customer Experience Mi \d understand Improve customer Meqsureandundestord = @ renee © Promote siete cuture Customer journeys. Examples of Customer’s on boar g process improvement [Sy Current account opening = Current account opening process cess From... To.. From... To... * Account: D+8
Slide 47: Levers | 5. Specialisation — Advance
Levers | 5. Specialisation — Advance Santander Advance supports SMEs in their development and growth, offering a strong financial offer as well as non-financial support measures r am | Advance development , ment Roll-out implemented in countries al Advance Finance 18) sonitoring and commercial manag
Slide 48: Levers | 5. Specialisation — Select
Levers | 5. Specialisation — Select Strengthen the affluent segme SELECT: global value proposition for high-income customers * Specialised Relationship Manager portfolio and dedicated channels * Relationship managers with differentiated profile, training and certification Exclusive value offer and c
Slide 49: 2018 targets
2018 targets Retail loyal customers (MM) 12 17 SMEs and corporate loyal customers (MM) 1.0 16 Gastoners Digital customers (MM) 15.1 30 # geographies in top 3 customer service 3 3) Customer loans growth above peers v v (3) Spa Porta UK Poland, Brat Mek INVESTOR Helping people and businesses prosper —
Slide 50: Key takeaways
Key takeaways We are evolving our business model and culture to increase our ’s sati: ‘ion, loyalty and p We are working on 5 levers: 1/ Connecting our banks to improve value proposition; 2/ i 3/ 4/ Customer experience; 5/ Tailor-made solutions for specific groups of customers From the Corporate Cen
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Slide 52: Investor Day 2015 – Andreu Plaza
INVESTOR DAY 2015 LONDON, 23-24 SEPTEMBER: Andreu Plaza ——— eat of Technology and Operations a ee ——
Slide 53: Disclaimer
A. ("Santander sec") ir ‘Other unkaowvn je whether os @ ‘result of new information, future events or otherwise ir ust bosis of " securities for its purpose and only on such information os is contained in such public information having token all such professional or other advice os it considers neces
Slide 54: The IT&Ops division's aim is to deliver excellent customer service
The IT&Ops division’s aim is to deliver excellent customer service to our 117MM customers, with best in class efficiency: Operational excellence fs Point of sale (POS) ~680,000 ef Branches 8 Internet/Mobile 12,910 a 15.1MM digital 5 ~ se customers >> ; a Transactions per week Organisation ~1,260MM 1
Slide 55: We focus on the elements that will help Santander become the best retail and commercial bank
We focus on the elements that will help Santander become the best retail and commercial bank Service quality Q Providing an excellent service to banks and lines of business, by delivering Execution speed 8) " simple, flexible, reliable and efficient platforms and processes Digital architecture Oo to
Slide 56: The division is organised in a layer model
The division is organised in a 3 layer model Corporate Division COSCOOCe6CSwOSBEE iT Back Offices “Santander Back Offices “@ isban “@ produban “ep geoban emesnenesss Helping people and businesses prosper =—— + Simple | Personal | Fair INVESTOR
Slide 57: The Group has invested in robust technology capabilities
To date, the Group has invested in robust technology capabilities that are the foundations of our digitalisation 1990's 2000's 2015 Systems capacity consolidation Customer experience + Time-to-market + Data and systems quality + Costs Unreliability Investment priority: infrastructure and back-end wi
Slide 58: Five state-of-the-art Data Centres
The Group has a shared infrastructure of five state-of-the-art Data Centres that manage all customer data and reduce operational risks ad, CARLTON PARK — Tier W / aN : 7 auenérano ; Men) Tierl¥ / Tier Ill . Tier Il jj Tier! + 99.995% uptime * Annual downtime: 26 minutes + Redundant power, cooling, h
Slide 59: Local banks and Data Centres interconnected through GSNET
Our local banks and Data Centres are interconnected through a proprietary network (GSNET) Ce @rsmenaoccen @mirrersacceemanase RE £220 22.01 ana businesses posse. | ——————— 7 Simple | Personal | Fair INVESTOR
Slide 60: Shared infrastructure results in lower platform costs
Shared infrastructure results in lower platform costs Annual mainframe cost per installed MIPS* Annual storage cost per terabyte — (€/mips) (€/Terabyte installed) 4,796 4,307 1,185 956 9% Santander Retalbank3 Industry, Santander Retalbonk? Industry , benchnard venetian (2) Ps: Microprocessor without
Slide 61: Shared core banking structure among the best in the world
The Group has a shared core banking structure that is considered among the best in the world Core banking structure Top 3 overall @ALhambra Category specific ranking Breadth of functionality: 2°4 “| Platform agilit Multi-channel services Service capabi I , BYarte ye Partenon/Alhambra asa core Altair
Slide 62: Shared Service Centres serve banks on an arms length basis
Shared Service Centres serve banks on an ‘arms length’ basis, providing expert knowledge and economies of scale: a unique model that creates a sustainable strategic advantage * High specialisation ca | . * Software Development s isban E * Global reach and local action “@ produban — + IT Production +
Slide 63: Efficiency management has helped maintain low IT costs
This efficiency management has helped to maintain low costs of IT, despite a very intensive agenda to build the infrastructure IT Outflow IT outflow? (% of gross income) 1 9 IT Outflow 11.3% income 8.9% 8.8% * data * Partenon * Banesto * Cloud T&O Cantabria Projects Migration services Milestones pro
Slide 64: Further efficiencies will allow investments in digitalisation
Going forward further efficiencies will allow us to undertake investments in digitalisation Business as usual savings + Improve business as usual (BAU) maintenance costs + Synergies derived from cross projects developments: ATMs, mobile, International Trade... IT&Ops BP . Upgrade Transformation Fs f
Slide 65: Now it is time for customer experience and innovation
Now it is time for customer experience (operational excellence) and innovation 1990's 2000's 2015 Systems capacity consolidation Customer experience + Time-to-market Robustness and scale * Data and systems quality efficiencies + Costs Unreliability Focus on investments: (system downtime) cus on inve
Slide 66: We have already started the digitalisation around themes
We have already started the digitalisation around 5 themes + Processes simplification Opera vpeeeeks + Shared Services Centres (SSC) as centres of excellence oo ° Boosting investments in the Front L/ Mobile (SmartBank, P2P4, Personal Financial Management...) BR) Channels New ATMs Customer experience
Slide 67: Developing operational excellence
Developing operational excellence Processes number °. Customerrelevance © Evolving as centres of Excellence Helping people and businesses prosper. ===" 5 simple | Personal |Fair INVESTOR
Slide 68: Boosting front applications and improving customer experience
Boosting front applications and improving customer experience i) Digitalisation O otrecnweny Perrier Organisati Putting il si per ee) experience through customer journeys Helping people and businesses prosper =———— & simple | Personal | Fair INVESTOR
Slide 69: Focusing on data challenges from regulatory world to new business opportunities
Focusing on data challenges from the regulatory world to new business opportunities = ‘Compliance with the Risk Reporting Framework (RRF) & Risk Data Aggregation (RDA) principles involves a series of action lines in terms of framework, criteria and concepts, repositories and data quality Big data ©
Slide 70: Developing a new architecture and more flexible technologies
Developing a new architecture and more flexible and efficient technologies Cloud infrastructure Digitalisation For non-transactional, non-critical data Organisati & culture PSII tera reonte and businesses prosper ——=—$—$—$—$——— simple Personal Fair NVFSTOR
Slide 71: Changing our culture
Changing our culture Organisational changes Cultural changes Service oriented culture New simpler organisation of IT&Ops Division “Our success is our internal customers’ success” Simple | Personal | Fair & Culture Helping people and businesses prosper ——S—So 19, Simple | Personal | Fair INVESTOR
Slide 72: 2018 targets
2018 targets = Top 3 bank to work for in the majority = All geographies top 3 in customer service of our geographies ; * Operational excellence = 30MM digital customers People “To be the best retail and commercial bank, earning the lasting loyalty of our people, customers, shareholders and = cfi<as%
Slide 73: Key takeaways
Key takeaways Our IT&Ops 3 layer model (Corporate Division, banks and SSC) is unique and drives significant efficiencies This model also helps to increase service quality and guarantees a deep control of the technological and operational risk So far, the Group has invested in robust technology capab
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Slide 75: Investor Day 2015 – Jaime Pérez Renovales
INVESTOR DAY 2015 LONDON, 23-24 SEPTEMBER: Jaime Pérez Renovales — Head of Organisation, Costs and ————— Human Resources SES ——
Slide 76: Disclaimer
A. ("Santander sec") ir ‘Other unkaowvn je whether os @ ‘result of new information, future events or otherwise ir ust bosis of " securities for its purpose and only on such information os is contained in such public information having token all such professional or other advice os it considers neces
Slide 77: Santander has a unique model for cost management
Santander has a unique model for cost management that enables us to a superior efficiency performance (emm) CGR Tight cost control and budgeting - offsetting increases derived from oc C 02% } =~ BAU}, inflation, regulatory requirements, new commercial 20,116 20,158 20,038 projects and perimeter modi
Slide 78: We leverage our global scale while keeping local accountability
We leverage our global scale while keeping accountability at a local level Corporate / Global initiatives * Corporate methodology * Continuous monitoring * Best practices sharing Partendn, Altair and Alhambra * Geoban, Isban, Produban, Aquanima, etc. * Corporate role redefinition (from 15 to 10 Divi
Slide 79: Best practices are systematically transferred to all countries
Additionally, best practices are systematically transferred to all countries (Example of best practice) Levers Impact Global Model Santander Group + Annual Purchases Plan and monthly reports + Purchases consolidation / catalogues usage [catalogues usag + €4.5bn purchases + Global and local negotiati
Slide 80: Efficiency is a significant competitive advantage vs. peers
Efficiency is a significant competitive advantage vs. peers Efficiency ratio" vs. Peers? Advantage vs. Peers (15 p.p.) iF Santander >62 Peers ‘NP Paribas, Cigroup, Deutsche Bank, HSBC, ING Intesa Sanpaclo JP Mergan, Banco tad, Uoyds, Standard Chartered, Soci se _E_—— _ — Helping people and businesse
Slide 81: Building on our principles, we adapt our cost strategy across economic cycles
Slide 82: Group target: Cost to Income below 45% in 2018
Slide 83: Investment in commercial transformation and digital banking
Slide 84: €3bn cost savings target by 2018
Slide 85: Key takeaways
Slide 86: Investor Day 2015 – Jose García Cantera
Item 20
Slide 87: Disclaimer
Slide 88: Slide 88
Slide 89: Entering a new macroeconomic cycle with tougher regulation
Slide 90: Santander has proven its resilience throughout the crisis
Slide 91: An uncertain environment with a dual macroeconomic and banking sector scenario
Slide 92: The economics of the sector have changed: RoTE structurally lower
Slide 93: In this challenging environment being a leader demands
Slide 94: Committed to P&L execution discipline and efficient capital allocation
Slide 95: New business/commercial model and two levers to achieve targets
Slide 96: Our commitments within each group of tools
Slide 97: Increasing subsidiaries management responsibility for execution
Slide 98: Our corporate centre will account for a declining share of our profit
Slide 99: Top P&L levers to drive profitable EPS growth
Slide 100: Our commitment: improve the efficiency of our capital allocation
Slide 101: Simple, low risk and highly diversified model requires less economic capital
Slide 102: Our countries are focused on improving RoRWAs
Slide 103: With room to manage RWAs due to low risk and high diversification
Slide 104: A growth model with growing RWA, TBV and increased profitability
Slide 105: Financial management in line with a prudent banking model
Slide 106: Our subsidiary model is geographically ring-fenced
Slide 107: Funding maturities are well diversified
Slide 108: Already above total capital requirements including Combined Buffers
Slide 109: TLAC-MREL: comfortable position
Slide 110: Ready to comply with expected TLAC requirements
Slide 111: Parent bank is in a good situation to comply with TLAC
Slide 112: TLAC at the sub-consolidated level in our main units
Slide 113: Active FX hedging policy for capital and P&L
Slide 114: Interest rate risk hedging to protect core deposits profitability
Slide 115: Group and Country financial guidance
Slide 116: Transparent performance Group metrics in 2016
Slide 117: 2018 financial targets
Slide 118: Country targets aligned with the Group
Slide 119: Key takeaways
Slide 120: Investor Day 2015 – Closing session, Ana Botín
Slide 121: Item
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Slide 133: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Santander, S.A. Date: September 25, 2015 By: /s/ José García Cantera Name: José García Cantera Tit