Green Bond Framework Investor Presentation Santander Consumer Bank AS February 2020
01 Who we are Santander Consumer Bank AS is a Nordic bank with more than 1,500 colleagues in Sweden, Norway, Denmark and Finland, with a long history in the Nordics, and with global strength by being a part of Banco Santander. We are one of the largest Nordic banks providing loans and credits, credit cards, deposits and insurance to private customers. We work with the best people in an engaged, challenging and passionate organization, which provides great opportunities for professional growth. 2
Regulated in Norway, owned by Banco Santander Santander SCB AS is Consumer regulated Bank AS by the Fitch/Moody’s Norwegian A-/A3 FSA Santander Banco Consumer Santander S.A. Finance S.A. Fitch/Moody’s/S&P Fitch/Moody’s/S&P A-/A2/A A-/A2/A- Santander Santander Santander Consumer Consumer Consumer Bank Sweden Bank Denmark Finance Finland (Branch) (Subsidiary) (Branch) 3
YTD Q3 2019 | SCB Group overview Portfolio and results by region % of Gross Outstanding Loans Finland Norway Nordic Q3 2019 Auto Auto 48.6 Bn 32.3 Bn Loans Loans Result Unsecured Unsecured 3.6 Bn 10.4 Bn Loans Loans 22% Profit Profit 442 MM 1,267 MM 35% Finland Before Tax Before Tax 165.6 Bn Norway Gross Outstanding Denmark Sweden 2,976 MM Auto Auto 26.1 Bn 22.8 Bn Loans Loans Profit Before Tax 23% Unsecured Unsecured 14.7 Bn 7.0 Bn Loans Loans Sweden 20% Profit Profit 751 MM 516 MM Before Tax Before Tax Denmark Source : SCB Group Q3 2019 Report (All figures in NOK) 4
Auto market share and products Position and market share in the Nordics Loans and financial services provided to private customers, SMEs and car dealers Auto & Leisure #1 #1 23% Auto Loans & Hire Auto Leasing Stock & Demo market share 34% Purchase Financing market share Customers Customers Customers Private Customers Private Customers Inventory financing for dealers Business Customers Business Customers Distribution Distribution Distribution New cars: Importer Online direct distribution Dealers direct #4 #1 agreements Indirect distribution with SME direct dealers and importers Used Cars: Direct to 9% 21% dealers Cross sale market share market share Source Norway: Internal calculations based on data from Finansieringsselskapenes Forening as per YTD Q3 2019 Source Finland: Internal calculations based on data from Finnish Transportation Safety Agency (Trafi) as per YTD Q3 2019 Source Denmark: Internal calculations based on data from Finans og Leasing as per YTD Q2 2019 Source Sweden: Internal calculations based on data from Finansbolagens Förening as YTD Q3 2019 5
Stable financial performance Normalised KPIs as a results of higher growth in Auto portfolio Return on Assets 1 Net Interest Income Ratio 2 Cost / Income Ratio 3 Per cent Per cent Per cent 3.0 5.3 50 2.8 4.9 2.7 4.7 44 4.6 44 4.5 2.5 4.4 41 40 38 1.8 1.7 2014 2015 2016 2017 2018 Q3 2019 2014 2015 2016 2017 2018 Q3 2019 2014 2015 2016 2017 2018 Q3 2019 Source: SCB Annual Reports (2013 – 2018) and Q3 2019 report 1) ROA = PBT (annualized) / ANEA 2) NII Ratio = Net Interest Income (annualized) / ANEA 3) Cost/Income Ratio = OPEX / Gross Margin (OPEX: Total Operating Costs) 6
Sustainability at SCB AS 02
Banco Santander and SCB AS Corporate Responsibility We embrace Banco Santander’s Responsible Business Strategy, while focusing on achieving sustainable value in the Nordics SCB AS: Contributing to value creation in the Nordics Banco Santander Responsible Business Strategy Our Purpose To help people and business prosper To be the best open financial services platform, by acting Our Aim responsibly and earning the loyalty of our stakeholders Our Inclusive and Sustainable New Business Environment Supporting Challenges Growth Strong retail local focus • Simplify processes communities • Financial & social inclusion • Diversity & Inclusion • Sustainable products • Data Trust Our Priorities • ESG risks analysis into • Design and business decision commercialization of • Climate change strategy products & services External recognition of Banco Santander’s sustainability efforts Donations & Sustainable Included in the Dow Signatory since World leader in Listed in Partnerships Mobility Jones Sustainability 2007 the Bloomberg FTSE4Good Index since 2000 and Rating above Gender Equality since 2003 Top Employer in world leader in 2019 industry average by Index (GEI) Europe 2019 the main ESG firms SCB AS acts in alignment with Banco Santander’s values: Simple, Personal and Fair , while contributing to value creation and supporting sustainable mobility in the communities in which it operates 8
Responsible Banking Strategy Creation of a holistic bank culture centered on responsible banking principles Internal environment Inclusive and sustainable growth Supporting to creat reate e new jobs bs and helping Ensuring we have the right ght cult lture re, skills ills, people acces ess finan nance, supporting the financing gov overn ernan ance, digit gital al and busine iness prac actic ices of the low carb rbon on economy and fostering sus ustaina inable ble cons onsumpt ption ion Strong corporate culture Talented and motivated team Responsible business practices Risk focus INCLUSIVE SUSTAINABLE GROWTH GROWTH Stakeholder value Responsible procurement 9
Sustainability approach within SCB AS SCB AS contributes to development in the Nordics via its lending activity, which gives opportunity to advance clean transport SCB AS strategic positioning SCB AS core lending activity • 89% of the business is retail • 79% of the business is auto • Auto market leader in 3 out of the 4 Nordic countries • SHFT Car subscription service, in cooperation with dealerships. A monthly fee gives access to a car with all services included, and with a short binding term. Objective: Make cities • All-in-One product and human settlement Speeding up renewal of one of the oldest car parks in Europe (Finland) as inclusive, safe and product is a key driver for changing consumers buying behavior. sustainable Now includes a “Green” feature by allowing customers to compensate for Co2 emissions Target 11.2 : Provide access to affordable, • IT solutions for our partners accessible and Solution enabled online sales of the all electric Nissan Leaf sustainable transport Via its core lending activity, SCB AS directly advances UN SDG 11 (Sustainable Cities and Communities) 10
Pursuing active contribution to the UN SDGs Overview of other highly relevant SDGs for SCB AS: GOAL 3: Ensure healthy lives and promote well-being for all GOAL 7: Ensure access to affordable, reliable, sustainable and • modern energy Across the Nordics, SCB AS encourages a broad base of people to physical activity: • We engage in collaborations to innovate new and more environmental • Partnering “Team Rynkeby ”, a charity cycling team that raise money friendly mobility solutions, and we add the commercial strength to bring for children with critical illnesses them to the market • Engaging employees in “ Kræftens Bekæmpelse ” , the Danish Cancer • In 2013 Santander pioneered the All-in-One product suite in Finland, Society speeding up renewal of one of the oldest car parks in Europe • Supporting the Football Association to make “ 3v3” kid’s soccer • We developed the IT solution to enable online sales of the all electric tournaments – an inclusive sports variety where every team member is Nissan Leaf - helping it to be last year's single most sold car model in part of the active play and gets equal playing time Norway • Promoting health and well-being initiatives internally GOAL 13: Take action to combat climate change and its GOAL 4: Ensure inclusive and equitable quality education and impacts by regulating emissions and promoting promote lifelong learning opportunities for all developments in renewable energy • SCB AS is a Gold partner supporting “ Right To Play” , an organization • In 2018, SCB AS partnered with CHOOOSE , a global leader in that protects, educates and empowers children to rise above adversity using the power of play retiring carbon credits and a platform for climate action, battling the issue of emissions from big polluters • Right To Play focus in five key areas: quality education, gender equality, • SCB has been certified as “ Miljøfyrtårn ” since 2009, meaning that health & well being, child protection and peaceful communities we are compliant with all requirements regarding health, environment • The partnership with Right To Play for us means something more than and safety, procurement, transportation, waste handling and energy contributing financially. We actively participate involving employees and consumption partners contributing • We educate employees on sustainability Through its general business activity and its community work, SCB AS directly contributes to the achievement of UN SDG 3, 4, 7, 13 11
SCB AS Green Bond Framework 03
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