Banco Santander S A : Chile FY'23

31 January 2024

Chile

2023

Earnings Presentation

Important Information

Non-IFRS and alternative performance measures

This presentation contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures. The APMs and non-IFRS measures were calculated with information from Grupo Santander; however, they are neither defined or detailed in the applicable financial reporting framework nor audited or reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider them to be useful metrics for our management and investors to compare operating performance between periods. APMs we use are presented unless otherwise specified on a constant FX basis, which is computed by adjusting comparative period reported data for the effects of foreign currency translation differences, which distort period-on-period comparisons. Nonetheless, the APMs and non-IFRS measures are supplemental information; their purpose is not to substitute IFRS measures. Furthermore, companies in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. APMs using ESG labels have not been calculated in accordance with the Taxonomy Regulation or with the indicators for principal adverse impact in SFDR. For further details on APMs and Non-IFRS Measures, including their definition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS, please see the 2022 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the SEC) on 1 March 2023 (https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2023/sec-2022-annual-20-f-2022-en.pdf), as well as the section "Alternative performance measures" of Banco Santander, S.A. (Santander) Q4 2023 Financial Report, published on 31 January 2024 (https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-results). Underlying measures, which are included in this document, are non-IFRS measures.

The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the businesses included and local applicable accounting principles of our public subsidiaries in such geographies. Accordingly, the results of operations and trends shown for our geographic segments may differ materially from those of such subsidiaries.

Non-financial information

This presentation contains, in addition to financial information, non-financial information (NFI), including environmental, social and governance-related metrics, statements, goals, commitments and opinions.

NFI is included to comply with Spanish Act 11/2018 on non-financial information and diversity and to provide a broader view of our impact. NFI is not audited nor reviewed by an external auditor. NFI is prepared following various external and internal frameworks, reporting guidelines and measurement, collection and verification methods and practices, which are materially different from those applicable to financial information and are in many cases emerging and evolving. NFI is based on various materiality thresholds, estimates, assumptions, judgments and underlying data derived internally and from third parties. NFI is thus subject to significant measurement uncertainties, may not be comparable to NFI of other companies or over time or across periods and its inclusion is not meant to imply that the information is fit for any particular purpose or that it is material to us under mandatory reporting standards. NFI is for informational purposes only and without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law.

Forward-looking statements

Santander hereby warns that this presentation contains "forward-looking statements" as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RoRAC", "RoRWA", "TNAV", "target", "goal", "objective", "estimate", "future", "commitment", "commit", "focus", "pledge" and similar expressions. They include (but are not limited to) statements on future business development, shareholder remuneration policy and NFI.

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Important Information

While these forward-looking statements represent our judgement and future expectations concerning our business developments and results may differ materially from those anticipated, expected, projected or assumed in forward-looking statements.

In particular, forward looking statements are based on current expectations and future estimates about Santander's and third-parties' operations and businesses and address matters that are uncertain to varying degrees and may change, including, but not limited to (a) expectations, targets, objectives, strategies and goals relating to environmental, social, safety and governance performance, including expectations regarding future execution of Santander's and third-parties' (including governments and other public actors) energy and climate strategies, and the underlying assumptions and estimated impacts on Santander's and third-parties' businesses related thereto; (b) Santander's and third-parties' approach, plans and expectations in relation to carbon use and targeted reductions of emissions, which may be affected by conflicting interests such as energy security; (c) changes in operations or investments under existing or future environmental laws and regulations; (d) changes in rules and regulations, regulatory requirements and internal policies, including those related to climate-related initiatives; (e) our own decisions and actions including those affecting or changing our practices, operations, priorities, strategies, policies or procedures; and (f) the uncertainty over the scope of actions that may be required by us, governments and others to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and governmental standards and regulations.

In addition, the important factors described in this presentation and other risk factors, uncertainties or contingencies detailed in our most recent Form 20-F and subsequent 6-Ks filed with, or furnished to, the SEC, as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume.

Forward-looking statements are therefore aspirational, should be regarded as indicative, preliminary and for illustrative purposes only, speak only as of the date of this presentation, are informed by the knowledge, information and views available on such date and are subject to change without notice. Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise, except as required by applicable law. Santander does not accept any liability in connection with forward-looking statements except where such liability cannot be limited under overriding provisions of applicable law.

Not a securities offer

This presentation and the information it contains does not constitute an offer to sell nor the solicitation of an offer to buy any securities.

Past performance does not indicate future outcomes

Statements about historical performance or growth rates must not be construed as suggesting that future performance, share price or results (including earnings per share) will necessarily be the same or higher than in a previous period. Nothing in this presentation should be taken as a profit and loss forecast.

Third Party Information

In this presentation, Santander relies on and refers to certain information and statistics obtained from publicly-available information and third-party sources, which it believes to be reliable. Neither Santander nor its directors, officers and employees have independently verified the accuracy or completeness of any such publicly-available and third-party information, make any representation or warranty as to the quality, fitness for a particular purpose, non-infringement, accuracy or completeness of such information or undertake any obligation to update such information after the date of this presentation. In no event shall Santander be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for inaccuracies or errors in, or omission from, such publicly-available and third-party information contained herein. Any sources of publicly-available information and third-party information referred or contained herein retain all rights with respect to such information and use of such information herein shall not be deemed to grant a license to any third party.

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Index

1

2

3

4

5

Financial	Strategy and	Results	Concluding	Appendix
system	business		remarks

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System loan demand affected by lower economic activity. The central bank continued to cut interest rates

Total loans (Constant € bn1)

237 238 238 242 243

 Mortgage loans are growing by more than the inflation-linked

UF, with demand reactivating slowly.

 Consumer lending has been driven by credit card lending in

YoY (%) 9.7% 9.2%

3.8% 2.9% 3.0%

recent months.

 Commercial lending remains subdued in line with lower

economic activity.

Dec-22Mar-23Jun-23Sep-23Nov-23

Total customer funds (Constant € bn1,2)
229
218	219	222	227
	3.6%	5.8%	5.4%	5.2%
2.4%

YoY (%)

Dec-22Mar-23Jun-23Sep-23Nov-23

 The increases in the Monetary Policy Rate (MPR) in 2021 and

2022, led to a historic high of 11.25% in the reference rate until

Jul-23 and a shift from demand deposits and mutual funds to

time deposits.

 The central bank started to cut the MPR in July and made

successive reductions to reach 8.25% in December. Reductions

are expected to continue in 2024.

(1)	End period exchange rate as of Nov-23.	5
(2)	Include demand deposits, time deposits and mutual funds.

Index

1

2

3

4

5

Financial	Strategy and	Results	Concluding	Appendix
system	business		remarks

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Santander Chile is the nation's leading bank

KEY DATA					2023	YoY Var.4
Customer loans	1			€43.8bn	+4.3%
Customer funds	2			€40.1bn	+12.0%
Attributable profit			€582mn	-15.1%
RoTE					14.8%	-4.6pp
Efficiency ratio					44.6%	+4.6pp
Loans market share	3		17.6%	+2bps
Deposits market share	3	17.4%	-28bps
Total customers			4.1mn	+13.3%
Digital customers			2.1mn	+6.6%
Branches					248	-12.4%
Employees					9,948	+1.8%

1. Gross loans excluding reverse repos.
2. Excluding repos.
3. As at Sep-23.
4. Constant euros.

Strategic Priorities

• Continue with a leadership position through the commercial network transformation and digital banking proposition
• Boost the innovative initiatives: Más Lucas, WorkCafé Expresso, Inversiones y Startup and a specialized business service model focused on agricultural, auto and Multi-Latins
• Specialization and a differential value-added offering and service for corporates in transactional products, FX and consulting
• Sustained generation of new business opportunities, fostering competition, seeking growth and leading the sustainable finance market

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Leadership position in customer satisfaction driven by better service quality and digital offering

Total customers (mn)

Active customers (mn)

Digital customers (mn)

+13%

3.6 4.1

+9%

2.2 2.4

+7%

2.0 2.1

Dec-22

Dec-23

Dec-22

Dec-23

Dec-22

Dec-23

• Digital customers and active customers increased in individuals and SMEs as a result of digital initiatives
• Attractive platforms and products: Getnet attracting SMEs and corporate customers to join the bank
• Leadership position in customer satisfaction, broadening the product range in digital channels, such as Life and Más Lucas

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Expanding our financial services to create memorable customer experiences

InitiativeProgress

Launch of new digital savings and demand accounts

Launch of new Expresso transaction centres improving customer service

Offering services, expertise and financing to develop and support start-ups

Launch of new Work/Café specializing in investment services and advice

New specialized service for agricultural, auto and Multi-Latin companies

Digital current account linked to other products, including loans >1 million customers

Expansion of Getnet in Chilean market >163k PoS in operation, of which c.80% to SMEs

100% digital savings and demand accounts for the mass market

Highlights our commitment to financial inclusion, by granting people access to new financial products

Includes: Demand account, debit card and savings account

1. It pays monthly interest to the customer
2. No monthly maintenance fee
3. Includes a free savings account

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Loans increased 4% YoY mainly underpinned by individuals, consumer finance and CIB, offsetting the fall in corporates

Total customer loans (Constant € bn)1

42.0	42.5	42.5	43.2	43.8

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

	Dec-23	Dec-22	YoY (%)	QoQ (%)
Individuals2	25.4	23.8	7.0	2.1
o/w Mortgages	19.0	17.7	6.9	2.3
o/w Cards &	4.5	4.2	6.9	3.3
Consumer credit
Consumer Finance	1.1	1.1	6.0	19.5
SMEs	4.0	3.9	0.8	1.7
Corporates & Institutions	9.3	9.5	-2.0	-1.3
CIB	4.0	3.8	6.4	-0.4
Total customer loans	43.8	42.0	4.3	1.5

Group criteria.	10
(1)	Excludes reverse repos. End period exchange rate as at Dec-23.
(2)	Includes Private Banking.