v Q1 2020 Investor Presentation Santander Consumer Bank Nordic Group May 2020
Index 1. SCB Nordic Overview Q1 2020 2. Financials Q1 2020 3. Capital and Funding Q1 2020 4. Appendix: Santander Group 5. Appendix: Santander Consumer Finance 2
SCB Nordic Overview Q1 2020 01
Who we are Santander Consumer Bank AS is a Nordic bank with more than 1,400 colleagues in Sweden, Norway, Denmark and Finland, with a long history in the Nordics, and with global strength through 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 and business customers. We work with the best people in an engaged, challenging and passionate organization, which provides great opportunities for professional growth. 4 4
Regulated in Norway, owned by Banco Santander SCB AS is Santander 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 Consumer Santander Consumer Santander Consumer Bank Sweden Bank Denmark Finance Finland (Branch) (Subsidiary) (Branch) 5
Key Figures Q1 2020 (vs. Q4 2019) Gross Core Capital Total Profit Before Outstanding CET1 1 Deposit Tax Loans 193.1 16.7 72.8 709 (+17%) (-140bps) (+11.1%) (-11.4%) 2 NOK Billion Per cent NOK Billion NOK Million Customers 3 People Net Interest Partners Income Ratio 4 5,079 +5,500 1,447 1.60 4.6 (-37) (+11bps) Merchants Car Dealers Employees Million per cent Source : SCB Group Q1 2020 Report and Management Figures 1) Adjusted for IFRS9 transitional rules 2) Compared against PBT Q1 2019 3) Based on year end 2019 figures 4) NII Ratio = Net Interest Income (annualized) / ANEA 6
Loan growth in the Nordics CAGR 1 17% 193 137 mNOK 165 331 162 802 2 147 970 2 mNOK mNOK mNOK 127 852 118 991 mNOK mNOK 83 322 mNOK 2014 2015 2016 2017 2018 2019 Q1 2020 Source: SCB Annual Reports Reports (2014 – 2019) and Q1 2020 Report 1) Compound Annual Growth Rate 2014 – Q1 2020 7
Solid profitability CAGR 1 22% 4 134 2 3 995 2 mNOK mNOK 3 611 mNOK 3 250 mNOK 1 942 mNOK 1 321 mNOK 709 mNOK 2014 2015 2016 2017 2018 2019 Q1 2020 Source: SCB Annual Reports Reports (2014 – 2019) and Q1 2020 Report 1) Compound Annual Growth Rate 2014 – 2019 8
SCB Group overview Nordic Q1 2020 Results 193.1 Bn Gross Outstanding 709 MM Profit Before Tax Auto loans: 40.0 .0 Bn Bn Auto loans: 50.9 Bn Unsecured loans: 4.6 Bn Bn Unsecured loans: 9.9 Bn Profit before tax: 98 98 MM MM Profit before tax: 224 MM Auto loans: 34.2 .2 Bn Bn Auto loans: 28.3 .3 Bn Bn Unsecured loans: 8.3 Bn Bn Unsecured loans: 16.9 .9 Bn Bn Profit before tax: 147 MM MM Profit before tax: 83 83 MM MM Source : SCB Group Q1 2020 Report (All figures in NOK) Note: NOK 154 million in bargain purchase gain related to the acquisition of Ford Credit has not been credited to any specific country’s PBT 9
History ELCON Finance Bankia Bank acquired (credit cards) A leading Norwegian Forso Nordic AB company within ELCON Finance SCB acquires the captive GE Finland acquired equipment leasing, becomes Santander finance operation of Ford in (auto finance, Deposits launched in factoring and auto Consumer the Nordics 1 consumer loans) Denmark (2014) financing Bank AS (SCB) 1963 2005 2009 2015 2020 2004 2006/07 2012/13 2017 Launch consumer Consumer loans in Solidified position in SCB merges with Santander Consumer Sweden (2012) and loans Norway GE Money Bank sales finance with the Finance S.A. acquires Denmark (2013) onboarding of ELCON Finance SCB becomes Skandiabanken Elkjøp/Elgiganten, Deposits launched in leader within car Bilfinans acquired in Company Power and Media Norway and Sweden finance and Denmark demerges and auto Markt (2013) unsecured loans in (auto finance) finance is retained in the Nordic region Norway and Sweden Start up auto finance in Finland 1) Forso Nordic AB, the captive finance operation of Ford Motor Company in the Nordics, agreed to an acquisition by Santander Consumer Bank AS in November 2019. Part of the transaction is a long-term agreement on retail and wholesale finance to Ford dealers under the Ford brand. The transaction closed on 28 February 2020. 10
Executive Committee Knut Øvernes Tina Krogsrud Fjeld Anders Michael Bruun-Olsen Hvidsten MD Norway IT & Ops Commercial B2B Director CFO CEO Knut has held various Tina has vast experience within Anders has held several Michael started in GE business management commercial, business development, senior positions within positions in GE Money (first in GE Capital, compliance, group strategy and banking institutions like DNB, later in GE Money Bank and Santander Non Financial Risk. She joined Eksportfinans and Bank) in 2000, where since he started in 1996. Handelsbanken. He joined Santander in 2019. he held various key Santander in 2011 . position within risk management. He joined Santander in 2005 as Nordic Chief Risk Officer, and was Andres Diez Peter Sjöberg Martin Brage appointed Nordic CEO in 2012 . Chief Risk Officer MD Sweden MD Finland Commercial B2C Strategy and M&A Andres has held different leadership Martin joined GE in 1999. Peter has 20 years positions within Risk With his long and extensive experience from banking and Credit. Joined experience within the and financial services. He Santander in 2007. financial sector and has held several leadership Santander, he has built up positions in SCB. Joined years of experience within Santander in 2010 . auto and unsecured. 11
Responsible Banking Strategy Creation of a holistic bank culture centered on responsible banking principles Internal environment Inclusive and sustainable growth Supporting to create new jobs and helping Ensuring we have the right culture, skills, people access finance, supporting the financing governance, digital and business practices of the low carbon economy and fostering sustainable consumption Strong corporate culture Talented and motivated team Responsible business practices Risk focus INCLUSIVE SUSTAINABLE GROWTH GROWTH Stakeholder value Responsible procurement 12
SCB ESG strategy We act in a manner that is in line with the values of Banco Santander: Simple, Personal and Fair. SCB AS: Contributing to value creation in the Nordics • Our Bank has a strong retail focus, and as a market leader in the Nordic car and leisure finance, SCB can help not only to build awareness but also Leverage of drive customer behaviour changes through various initiatives, impacting carbon footprint. These market initiatives support Banco Santander’s goal to be position to carbon neutral already in 2020 increase Supporting Strong retail local awareness focus • communities As a market leader in financing passenger vehicles in the Nordics, we have the opportunity to shape the future of sustainable mobility at country level • We ensure the integration of ethical, social and environmental criteria in the development of business, contributing to the economic and social Strong collaboration prosperity of people and businesses in a with dealers, responsible and sustainable way partnerships Donations & Sustainable • We contribute to the prosperity of the communities and local Partnerships Mobility organisations in which we operates via our lending activity, as well as via donations and partnerships with local organizations 13
Pursuing active contribution to the UN SDGs Overview of other highly relevant SDGs for SCB AS GOAL 7: Ensure access to GOAL 3: Ensure healthy lives affordable, reliable, sustainable and promote well-being for all and modern energy • Partnering with “Team Rynkeby ”, a charity cycling In 2013 Santander pioneered the All- team that raise money for in-One product suite in Finland, children with critical illnesses speeding up renewal of one of the • Engaging employees in oldest car parks in Europe “ Kræftens Bekæmpelse ” , the Danish Cancer Society GOAL 4: Ensure inclusive and GOAL 13: Combat climate equitable quality education change and its impacts by and promote lifelong learning regulating emissions and opportunities for all promoting developments in SCB AS is a Gold partner renewable energy supporting “ Right To Play” , an SCB AS has partnered with organization that protects, educates and empowers CHOOOSE , a global leader in children to rise above adversity retiring carbon credits and a using the power of play platform for climate action, battling emissions from big polluters Through its general business activity and its community work, SCB AS directly contributes to the achievement of UN SDG 3, 4, 7, 13 14
Products Unsecured Deposits Insurance Auto & Leisure Insurance products related Loans, credit cards and Saving products with high Loans and financial services to payment protection, auto, sales finance services interest rates provided to provided to private health and travel, offered to offered to private customers private customers customers, SMEs and car private customers dealers 15
Gross outstanding loans and distribution by product Total Auto and Unsecured Credit Card 4% Consumer Loan 18% Total Unsecured 21% Auto Private Persons Non Std. Auto 60% Total Auto 7% 79% Auto SME 11% Source : SCB Group Q1 2020 Report and Management Figures 16
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