Banco Santander-chile · BCS:BSANTANDER
Banco Santander-chile — Investor Day (September 2015)
22 slides from Banco Santander-chile's investor day presentation, Sep 23, 2015
Slide 1: Investor Day 2015
INVESTOR DAY 2015 LONDON, 23-24 SEPTEMBER Claudio Melandri ——_— Country Head Chile eo ——
Slide 2: Forward-looking statements disclaimer
Banco Santander Chile (“Santander Chile”) and Banco Santander, S.A. ("Santander") both caution that this presentation contains forward-looking statements. These forward. looking statements are found in various places throughout this presentation and include, without limitation, statements concerning
Slide 3: Agenda
Agenda (1) Market and financial system (2) svategy (3) tests INVESTOR a — ———— : , Helping people and businesses prosper ———S=== 2 Simple | Personal | Fair Ray 3915 ————=s———=
Slide 4: Agenda
Agenda (1) Market and financial system @ Exc (a) teets Helping people and businesses prosper _—_—_—_—— > Simple | Personal | Fair INVESTOR ————————————
Slide 5: Chile: a stable and diversified economy
Chile: a stable and diversified economy Demographic data P by sectors h * Population (MM): 17.8 sot Fishing + * GDP per capita (PPP) $23,000 a mt * Life expectancy 80 years 4% \ ° % living in poverty: 14% Mining 12% 3) * GDP (USDbn): 258 : vr Services +] * Exports / GDP: 30% «¢ * Investment / GDP: 2
Slide 6: After a brief slowdown, solid growth figures are expected during 2015-2017
After a brief slowdown, solid growth figures are expected during 2015-2017 (%) (YoY growth, %) (USSMM) 3.4 10,000 9,420 3.0 2.0 1.6 -0.6 2013 2014 2015(e) 2016(e) 2017(e) 2013 2014 2015(e) 2016(e) 2017(e) 2013 2014 2015(e) 2016(e) 2017(e) Source: Central Bank of Chile and Santander Chile estimates =
Slide 7: Chilean financial system: profitable and with a healthy balance sheet
Chilean financial system: profitable and with a healthy balance sheet Savings growth Pre Tax-ROE Core Capital+ (YoY growth, %) (YoY growth, %) (%) (%) 10.3 10.6 499 128 420 18.4 19.3 19.0 Ui TT 2013 2014 Jun'15 2013 2014 Jun'15 2013 2014 Jun'15 2013 2014 Jun'15 (1) Core Capital: 100 % share holders
Slide 8: Agenda
Agenda Market and financial system (2) svateey (a) teets Helping people and businesses prosper _—_—_—_—— 7 Simple | Personal | Fair INVESTOR ————————————
Slide 9: Santander Chile: the nation's leading retail and commercial bank
Santander Chile: the nation’s leading retail and commercial bank A leading banking franchise Customer-centric results Gross income net of provisions in 1H15 , 1 2 . 1H’15 €MM Mkt share’ Ranking by business unit (%) Total loans 34,100 19.4% 1° Deposits 24,200 18.1% 2° Customers 3.6 MM 22.6%? 1° Emplo
Slide 10: Reinforcing our customers focus and loyalty
Reinforcing our customers focus and loyalty Transforming the banking experience for our individual customers Expanding our customers relations in SMEs Solid profitability with controlled risks Increasing customer loyalty in the middle-market and large corporates Creating a bank that is Simple | Pers
Slide 11: High growth potential in retail, especially for mid-high income
High growth potential in retail, especially for mid-high income Chile: low penetration of bank products Chile: healthy household indebtedness levels? | | (% of adults >25 yrs. with one of these products?) (%) Chile Chile TE OECD OECD Account Debit card Credit card Household debt / disposable Avg pri
Slide 12: High growth potential in Mid-market & SMEs
High growth potential in Mid-market & SMEs 2% of companies have 82% of commercial loans* SMEs: total customers and loyal customers? —————————————— (k, Jun’15) 214 2% 33.4 Total customers Loyal customers 0 . 98% Middle-market: total customers and loyal customers? d (k, Jun’15) Potential 25.8 Growth C
Slide 13: Creating a better customer experience in every phase of our relationship...
Creating a better customer experience in every phase of our relationship... i Capture | Activate Usage Retain Engagement at origin Increase product usage ° CRM gives alerts of new ¢ Extensive data mining through ° CRM gives early customers that have not CRM? and ‘Events factory’ warnings of ‘custome
Slide 14: ...is resulting in increased customer loyalty
..iS resulting in increased customer loyalty Loyal / transactional customers? (k) Loyal SME customers? (k) NT _————.3 33 508 Bp ) Jun'14 Jun'15 Jun'14 Jun'15 Eevee marke middle-market? (k) Activation of cards after origination? +8% 3.5 Origination mBy 90 days yal 2014 /13 43% 51} Sa a2 ae 28% 32% Ju
Slide 15: We are developing a new branch strategy that is more efficient and personal
We are developing a new branch strategy that is more efficient and personal } Middle-market centres Coe | Totalbranches | branches Dec'12 Jun'15 Dec'12 Jun'15 498 go p%n 479 {__Standard branch Standard branch Banefe and payment centres | —_EA_——————————————— 268 CO As Jun'15 7 2% 7 186 & 146 Dec'12
Slide 16: There is room for continue expanding digital banking services
There is room for continue expanding digital banking services Internet usage market share (private banks)+ Digital banking penetration? (k) | | 39.8% 3,616 20.2% 19.0% oe) _ . = = Peer 1 Peer 2 Peer 3 Total customers Digital customers Mobile banking users The next step is to continue incentivizing i
Slide 17: Sustained improvements in customer service and digital banking usage
Sustained improvements in customer service and digital banking usage Churn rate among individuals* Customer satisfaction gap vs main peers> 74% % 64% , 59% 57% 62 ° 45% 46% 52% 0 8.0% ee *. " 6.7% 78% 40% 42% 43% — Peer Group 23% °17% — santander 14 F’'14 M’14 A’14 M’14 314 (J'14 A’14 $$’14 0'14 N’1
Slide 18: Agenda
Agenda Market and financial system (2) sway (3) tats Helping people and businesses prosper _—__—_—_——_ 17 Simple | Personal | Fair INVESTOR ————————————
Slide 19: 2018 Chile targets
2018 Chile targets Great Place to Work bank ranking* n/a 3 Retail loyal customers (k) 508 614 Loyal SMEs and Corporate (k) 36.9 42.9 Digital customers? (k) 881 1,050 Customers oo . . Ranking in customer satisfaction among peers? 4 Top2 Volume growth rates compared to peers? 7% VS. 3% >PG Fee income
Slide 20: Transparent performance metrics for 2016
Transparent performance metrics for 2016 Key metric 1H’15 2016 Improvement Comment In individuals, growth leveraged on CRM 507.6 548.9 +8.1% Loyal SMEs and * Business growth with focus in non-lending Corporate 36.9 38.9 +5.7% products and services * Transactionality should grow more than Online digi
Slide 21: Key takeaways
Key takeaways AS Chile: stable economy and financial sector with high growth potential AS Santander Chile: a leading and profitable player in the local market AS Santander Chile: clear strategy focused on our customers AS Ambitious yet achievable targets for 2015-18 period = RN Helping people and bu
Slide 22: 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-CHILE By: /s/ Cristian Florence Name: Cristian Florence Title: General Counsel Date: Sep
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