Presentation Santander Consumer Bank Nordic Group May 2019 Who we - PowerPoint PPT Presentation

v Q1 2019 Investor Presentation Santander Consumer Bank Nordic Group May 2019

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

Q1 2019 | Key Figures Gross Core Capital Total Profit Before Outstanding CET1 1 Deposit Tax Loans 160.8 15.8 58.3 800 NOK Billion Per cent NOK Billion NOK Million People 2 Customers Net Interest Partners Income Ratio 3 5,076 +5,600 1,546 1.63 4.5 Merchants Car Dealers Employees Million per cent Source : SCB Group Q1 2019 Report and Management Figures 1) Adjusted for IFRS9 transitional rules 2) Headcount includes permanent and temporary employees 3) NII Ratio = Net Interest Income (annualized) / ANEA 4

Loan growth in the Nordics Driven by organic growth, particularly in the Auto portfolio CAGR 1 17% 143,615 162 802 2 160 752 (mNOK) 124,625 147 970 2 mNOK mNOK 116,297 (mNOK) mNOK (mNOK) 127 852 118 991 mNOK mNOK 83,322 (mNOK) 71,891 83 322 (mNOK) 59,575 mNOK (mNOK) 2014 2015 2016 2017 2018 Q1 2019 Source: SCB Group Annual Reports (2013 – 2018) and Q1 2019 Report 1) Compound Annual Growth Rate 2013 – Q1 2019 2) SCB Group has reclassified Consignment from the financial statement line “Consignment” to “Loans to c ustomers ” in 2018. Comparison figures are changed similarly. As of December 31 2018 the Consignment portfolio constitute NOK 4.2 billion of the financial statement line “Loans to customers”. Please see principle 6) on page 57 in the 2018 Annual Report for further details. 5

Solid profitability Year-on-year growth in margins CAGR 1 33% 4 134 2 3 995 2 mNOK mNOK 3 250 mNOK 1 942 mNOK 1 321 mNOK 800 mNOK 2014 2015 2016 2017 2018 Q1 2019 Source: SCB Annual Reports (2013 – 2018) and Q1 2019 Report 1) Compound Annual Growth Rate 2013 – 2018 2) The Group reclassified issued AT1 capital of NOK 2.25 billion from liabilities to equity in 2017. Interest expenses for 2017 of NOK 169 million are consequently presented in equity instead of profit and loss, with related tax impact presented as part of other equity. Comparison figures are changed similarly. Please see principle 6) on page 40 in the 2017 Annual Report for further details. 6

Q1 2019 | SCB Group overview Portfolio and results by region Finland % of Gross Outstanding Loans Norway Nordic Q1 2019 Auto 30.3 Bn Auto 48.4 Bn Loans Loans Result Unsecured 3.3 Bn Unsecured 11.2 Bn Loans Loans 21% Profit 205 MM 312 MM Profit Before Tax 37% Finland Before Tax 160.8 Bn Norway Gross Outstanding Denmark Sweden 800 MM Auto Auto 25.1 Bn 21.9 Bn Loans Loans Profit Before Tax 22% Unsecured Unsecured 6.5 Bn 14.1 Bn Loans Loans Sweden 20% Profit Profit 76 MM 207 MM Before Tax Before Tax Denmark Source : SCB Group Q1 2019 Report (All figures in NOK) 7

History ELCON Finance Bankia Bank acquired (credit cards) A leading Norwegian company within equipment ELCON Finance becomes GE Finland acquired leasing, factoring and auto Santander Consumer (auto finance, Deposits launched in financing Bank AS (SCB) consumer loans) Denmark (2014) 1963 2005 2009 2015 2004 2006/07 2012/13 2017 Santander Consumer Consumer loans in Launch consumer SCB merges with Solidified position in Finance S.A. acquires Sweden (2012) and GE Money Bank loans Norway sales finance with ELCON Finance Denmark (2013) SCB becomes the onboarding of Skandiabanken Bilfinans Company Deposits launched in leader within car Elkjøp/Elgiganten, acquired in Denmark demerges and auto finance is Norway and Sweden (2013) finance and Power and Media (auto finance) retained in Norway and unsecured loans in Markt Start up auto finance in Sweden the Nordic region Finland 8

Executive Committee Anders Michael Knut Øvernes Bo Jakobsen Juan Calvera Bruun-Olsen Hvidsten MD Norway MD Denmark IT & Ops Knut has held various Bo joined Santander in 2007 Nordic Chief CEO Director business management and was key to start up the Financial Officer positions in GE Money Bank business in Denmark the Michael started in GE and Santander since he same year. Previously, he (first in GE Capital, Juan has held various Anders has held several senior started in 1996. held several leadership roles later in GE Money leadership positions positions within banking institutions within the financial industry. Bank) in 2000, where like DNB, Eksportfinans and within IT and Operations he held various key Handelsbanken. He joined since joined Santander position within risk Santander in 2011. in 2011. management. He joined Santander in 2005 as Nordic Chief Peter Martin Brage Andres Diez Trond Debes Risk Officer, and was appointed Nordic Sjöberg CEO in 2012. MD Sweden Chief Risk HR & Legal Martin joined GE in 1999. Officer Director MD Finland With his long and extensive Peter has 20 years experience within the financial Andres has held Trond started in GE Money experience from banking sector and Santander, he has different leadership Bank in 2002. He has and financial services. He built up years of experience positions within Risk been responsible for has held several leadership within auto and unsecured. and Credit. Joined Legal, Communications, positions in SCB. Joined Santander in 2007. Compliance and HR in Santander in 2010. various leadership positions. 9

Corporate Social Responsibility We engage in a broad spectrum of activities that contribute to UN’s Sustainable Development Goals Ensure healthy lives and promote well-being for all Ensure access to affordable, reliable, sustainable and modern energy Across the Nordics SCB supports people, events and organizations that encourages, inspires and invites a broad base We engage in collaborations to innovate new and more of people to physical activity and camaraderie. environmental friendly mobility solutions, and we add the commercial strength to bring them to the market.  “Team Rynkeby ” a charity cycling team that raise money for children with critical illnesses  In 2013 Santander pioneered the All-in-One product suite in Finland, speeding up renewal of one of the oldest car parks in  Engaging employees in “ Kræftens Bekæmpelse ” , the Danish Europe. Cancer Society.  We developed the IT solution to enable online sales of the all  Supporting the Finnish “ Icehearts ”, an organization that uses electric Nissan Leaf - helping it to be last year's single most team sports as a tool for engaging children with social work. sold car model in Norway. Ensure inclusive and equitable quality education Take action to combat climate change and its and promote lifelong learning opportunities for all impacts by regulating emissions and promoting developments in renewable energy  SCB has for a long time been a Gold partner supporting Right To Play , an organization that protects, educates and  In 2018, SCB partnered with CHOOOSE , a global leader in empowers children to rise above adversity using the power of retiring carbon credits and a platform for climate action, play. Right To Play plays for change in five key areas; Quality battling the core problem of climate change – emissions from education, gender equality, health & well -being, child big polluters protection and peaceful communities.  SCB has been certified as “ Miljøfyrtårn ” since 2009,  Right To Play partners with Ministries of Education and local meaning that we are compliant with all requirements regarding organizations to incorporate play-based learning into the health, environment and safety, procurement, transportation, education system, allowing more children to rise. waste handling and energy consumption. 10

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 and car dealers private customers 11

Gross lending and distribution by product Total Auto and Unsecured Credit Card 4% Consumer Loan 17% Total Unsecured 21% Auto Private Persons Non Std. Auto 60% Total Auto 8% 79% Auto SME 11% Source : SCB Group Q1 2019 Report and Management Figures 12