FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of January, 2024 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its charter) Ciudad Grupo Santander 28660 Boadilla del Monte (Madrid) Spain (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☒ Form 40-F ☐
BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. January - December 2023 Earnings presentation
Earnings Presentation — 2023 31 January 2024
2 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.
3 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.
4 Index 2023 Highlights Progress of our strategy 1 2 Group review 3 Final remarks 2024 Guidance 4 Appendix
5 +15% FY’23 Revenue Record results with 5mn new customers YoY contributing to double-digit revenue growth First year of ONE Transformation is driving profitable growth and structural efficiency improvement Delivering double-digit value creation and higher shareholder remuneration Achieved a record year and delivered on our financial targets EPS RoTE TNAVps + DPS Cash DPS c.+50% Cost-to-income FL CET1CoR Strong balance sheet, with solid credit quality metrics and a higher capital ratio Note: unless otherwise indicated, detail by global business presented across this document reflects the new operating model announced in September 2023. For more information, see also the presentation published on 20 December 2023 that explains the new operating model and adapted financial disclosures. YoY changes. In constant euros: Attributable Profit +18%; Revenue +13%. TNAVps + DPS includes the €5.95 cent cash dividend paid in May 2023 and the €8.10 cent cash dividend paid in November 2023. 1.18% FY’23 Attributable Profit €11.1bn 44.1% €58bn +169bps 15.1% -173bps +15% +11% +0.2pp 12.3% +21.5% +0.19pp
6 All time high attributable profit boosted by double-digit net operating income growth Note: underlying P&L. (*) Including the temporary levy in Spain (-€224mn) in Q1’23. P&L Constant € million 2023 2022 % NII 43,261 38,619 12 Net fee income 12,057 11,790 2 Other income 2,329 1,745 33 Total revenue 57,647 52,154 11 Operating expenses -25,425 -23,903 6 Net operating income 32,222 28,251 14 LLPs -12,458 -10,509 19 Other results* -3,066 -2,492 23 Attributable profit 11,076 9,605 15 11 13 10 16 19 Current 34 18 % 16 5 Double-digit revenue growth Efficiency ratio improvement YoY Record net operating income CoR <1.2% RoTE >15% Delivered on Group 2023 targets
7 12.5 12.3 -0.80 12.0 +1.19 +0.09 Dec-22 Organic generation Shareholder remuneration Regulatory & others Dec-23 pre-EBA SBB Dec-23 21 Strong performance drove higher gross organic capital generation and TNAVps + Cash DPS growth of 15%, while improving our payout to 50% TNAVps + Cash DPS € per share FL CET1 2023 shareholder remuneration Total shareholder remuneration +44% YoY Cash dividend per share c.+50% YoY Since 2021, Santander has repurchased c.9% of its outstanding shares4 Note: Our shareholder remuneration policy is c.50% payout split in approximately equal parts (cash and share buybacks). Cash DPS against 2023 results estimated as 25% of the profit for the year. Implementation of 2023 shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. (1) Dividend accrual during 2023 + impact on capital of share buybacks approved by regulator in 2023, and in line with our remuneration policy. (2) FL CET1 ratio previous to deducting 26bp resulting from the following of new EBA Q&A 2023_6887 released in Q4 of accruing share buybacks included in distribution policies. (3) TNAVps + DPS includes the €5.95 cent cash dividend paid in May 2023 and the €8.10 cent cash dividend paid in November 2023 executed as part of the shareholder remuneration policy. (4) Including €1,310mn from the first buyback programme against 2023 results completed on 25 January 2024. Cash DPS: €14 cents% +c.50bps like-for-like 4.26 4.76 4.90 2022 20233 +15%
8 1.1 2.3 2.5 3.0 3.3 1.7 0.5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3.5 3.8 5.5 (1) Underlying. (2) Total shareholder remuneration charged against the results corresponding to the calendar year: cash dividend + share buybacks, excluding scrip dividends. Our shareholder remuneration policy for 2023 is c.50% payout split in approximately equal parts (cash and share buybacks). Cash DPS against 2023 results estimated as 25% of the profit for the year. Implementation of 2023 shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. (3) Cash dividend. (4) Including acquisition of SC USA minority interest which closed on 31 January 2022 and the acquisition of Amherst Pierpont. Our business model and strategy deliver sustained earnings with lower volatility and allow us to accelerate profitable growth and shareholder value creation High profitable growth Increasing remuneration and strengthening capital Attributable profit1 (€bn) Dividends3 Share buybacks 9.6 11.0 11.0 11.1 11.8 12.1 11.8 7.4 12.7 13.4 15.1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 RoTE1 (%) 4.2 5.8 6.6 6.6 7.5 8.1 8.3 5.1 8.7 9.6 11.1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dividends & Buybacks2 (€bn) FL CET1 (%) 8.3 10.1 10.6 10.8 11.3 11.4 11.9 12.0 12.0 12.3 2014 2015 2016 2017 2018 2019 2020 20214 2022 2023 Covid crisis Covid crisis Covid crisis
9 TNAVps + DPS RoTE Profitability FL CET1 Strength RWAs with RoRWA > CoE Disciplined capital allocation Payout 50% Shareholder remuneration Note: Execution of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. >12% c.85% 15-17% Double-digit growth average through-the-cycle 2023 vs. 2025 ID targets A strong first year in our new phase of value creation for our shareholders… 84% Cash dividend + SBB 50% annually 12.3% +15% 15.1%
10 …leveraging our business model strengths: diversification, customer focus and global and in-market scale Global network businesses Leadership position in local markets Higher growth in customer revenue and profitability from network effects Our two key strategic and operating advantages… …are driving structural benefits helping us become the most profitable bank in every market Lower costs from common operating model + Tech platforms Currently we are Top 3 in profitability in 8 out of our 10 markets1 (1) Latest available data (9M’23).
11 ONE Santander With our last step towards ONE Santander, we have laid the foundation to capture the full potential of our in-market and global value Tangible progress on our transformation Serve our customers better Be more efficient Grow more and faster More resilient balance sheet Our model capitalizes on our strategic advantage of combining global capabilities with local expertise Better risk-return from a global perspective across business lines Improved and more disciplined capital allocation for higher profitability Europe North America South America DCB Europe G lo b al B u si n e ss e s Retail & Commercial BankingRetail Digital Consumer BankConsumer Corporate & Investment BankingCIB PaymentsPayments Wealth Management & InsuranceWealth
12 657 647 Jun-23 Dec-23 Retail Driving growth and efficiency on the back of our new model and proprietary technology c.17% Common operating model globally leveraging process automation Proprietary back-end (Gravity) and our cloud based front-end (ODS) technologies Product simplification and digital first # of products1 (k) Key drivers # of non-commercial FTEs1 per mn total customers 10.1 8.4 2022 2023 Active customers (mn) 74.6 75.1 2022 2023 RoTE (1) Metrics cover all products and employees in the branch network. 2025 targetCustomer experience Operational leverage Global platform +1% -16% -1.5% 15.1% 2023 C/I <42% 43.1% 2023
13 Consumer Transforming into a best-in-class, global business and operating model Key drivers Global relationship management (OEMs, Importers, Retailers) From multiple country- specific platforms to global platforms (e.g. Leasing, BNPL) Operational & commercial benchmark to maximize profitability and growth Retail deposits cost-to-serve (bp) 118 110 2022 2023 Total customers (mn) 25.2 25.4 2022 2023 439 437 2022 2023 # of non-commercial FTEs1 per mn total customers (1) DCB Europe only. 2025 targetCustomer experience Operational leverage Global platform +1% -0.4% > 14% RoTE 11.5% 2023 C/I c.40% 42.8% 2023 -8bp
14 CIB Playing to our strengths to better serve our corporate customers and institutions Key drivers Optimize capital returns on the back of origination and global distribution capabilities Continue growing fee and transactional business through our global centres of expertise and tech Trusted advisor for our customer leveraged global products and local Fee growth (constant € bn) % customer related revenue 1.9 2.1 2022 2023 % Total revenue / RWAs 5.9 6.7 2022 2023 Customer experience Operational leverage Global platform 2025 target +1.7pp +0.8pp >20% RoTE 17.5% 2023 C/I <45% 45.0% 2023 81.8 83.5 2022 2023 +14%
15 Wealth Accelerating our customers connectivity with our global product platforms Key drivers Providing our customers specialized products & services proposition in all countries Global platforms and infrastructure to improve efficiency and time-to-market Leverage our global operations and factories to connect geographies and increase collaboration with CIB and Retail c.60% RoTE Revenue growth including ceded fees2 (€ bn) 5.1 5.7 2022 2023 Assets under management1 (€ bn) 402 460 2022 2023 Collaboration fees (€ bn) 3.4 3.6 2022 2023 (1) Includes off-balance sheet assets and deposits. (2) Includes all fees generated by asset management and insurance businesses, even those ceded to the commercial network. Note: revenue CAGR 22-25 target. 2025 targetCustomer experience Operational leverage Global platform +14% +6% +11% 72.2% 2023 Revenue growthc.10% +22% 2023
16 Payments Seizing a growing opportunity by capturing scale through global platforms Key drivers Deliver best-in-class payment solutions levering our global and local scales Reduce cost per transaction through capex optimization and operational efficiency Migrate volumes to common global platforms to gain scale and offer competitive pricing open market >30% EBITDA margin % open market revenue (PagoNxt) # transactions (bn per month) 2.6 3.0 2022 2023 Cost per transaction (€ cents, PagoNxt) 4.1 3.5 2022 2023 13.6 15.8 2022 2023 PagoNxt 2025 targetCustomer experience Operational leverage Global platform +15% -16% +2.2pp 24.8% 2023 Note: transactions include merchant payments, cards and electronic A2A payments. PagoNxt revenue CAGR 22-25 target. c.30% +17% 2023 Revenue growth
17 Clear plan to accelerate performance in the US by 2025 by business line Consumer • Launch of new digital platform in summer of 2024 • Deposit-funded consumer banking solution • Leverage global OEM relationships to support profitable growth Market-leading, full-spectrum auto lender 11% Mid- high teens Commercial Top 10 Multifamily lender Mid teens RoTE 2023 2025 ID CIB Wealth Strategic objectives • Reinforce advisory capabilities • Accelerate growth in the US and globally • Leverage the Group’s network to build further scale in the US Current position Global hub for USD-based multinational clients; Strong expertise in trade and energy project finance Market leader in LatAm high net worth offshore 8% Low teens >100% c.100% KPIs CIB US revenue growth Wealth CAL growth 2022 2023 $753mn +27% >25% US retail deposit cost-to-serve Deposit funding provided for Auto lending volumes 2022 2023 2025 $40bn +9% +18% 6%2022 2023 2025 30% 35% 45-50% 2022 2023 2025 c.205bps 192bps c.-20% 2025 upgraded Note: adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Same criteria as Investor Day, except Consumer and CIB one-off investments in 2023. US retail deposit cost-to-serve target 2025: % drop 2022-2025. CIB US revenue growth and Wealth CAL growth targets 2025: CAGR 2022-2025.
18 30 +12% 12 +1% 8 +17% 3 +22% 5 +12% 58 +13% Note: YoY change in constant euros. New global business definitions as published on 20 December 2023. In summary, our global platforms will deliver operational leverage and profitable growth to become the most profitable bank in every market 51% 21% 13% 6% 9% Revenue (€bn) Contribution to Group’s revenue1 Efficiency RoTE2 2023 2025 RoTE2 target c.17% >14% >20% c.60% >30% 15-17% Most upside from changes to common platforms in Retail, Consumer and Payments, which represent 81% of total revenue 43.1% 15.1% -157bps +1.0pp 42.8% 11.5% +86bps -4.0pp 45.0% 17.5% +171bps +1.6pp 37.9% 72.2% -333bps +19.8pp 44.2% 24.8% -235bps +15.7pp 44.1% 15.1% -173bps +1.7pp (1) As % of total operating areas, excluding Corporate Centre. (2) Global businesses’ RoTEs are adjusted based on Group’s deployed capital. Retail Consumer CIB Wealth Payments Group G lo b a l b u si n es se s EBITDA margin PagoNxt
19 Index 2023 Highlights Progress of our strategy 1 2 Group review 3 Final remarks 2024 Guidance 4 Appendix
20 All time high attributable profit boosted by double-digit net operating income growth 2,543 2,351 2,422 2,289 2,571 2,670 2,902 2,933 Q1'22 Q2 Q3 Q4 Q1'23 Q2 Q3 Q4 € mn Attributable profit Attributable profit (Constant € mn) Note: underlying P&L. (*) Including the temporary levy in Spain (-€224mn) in Q1’23. +28% QoQ +1% 2,605 2,270 2,311 2,221 2,502 2,596 2,818 3,160 +7% excluding Argentina +34% excluding Argentina P&L Constant € million 2023 2022 % NII 43,261 38,619 12 Net fee income 12,057 11,790 2 Other income 2,329 1,745 33 Total revenue 57,647 52,154 11 Operating expenses -25,425 -23,903 6 Net operating income 32,222 28,251 14 LLPs -12,458 -10,509 19 Other results* -3,066 -2,492 23 Attributable profit 11,076 9,605 15 11 13 10 16 19 Current 34 18 % 16 5
21 57,647 50,954 +3,299 +135 +1,089 +569 +552 +1,048 2022 Retail Consumer CIB Wealth Payments CC 2023 Total revenue Double-digit revenue growth backed by customer activity across businesses Revenue trends • >95% of total revenue is customer related which drives the vast majority of total revenue growth • Good margin management in a context of higher interest rates in Europe and solid fee performance in North and South America • Strong revenue increase YoY with all businesses growing double-digits except Consumer: - Retail increased driven by higher NII (Europe and Mexico) and net fee income (South America and Mexico) - Consumer growing slightly despite negative interest rate sensitivity - CIB up supported by good performance across products, especially transactional business - Wealth increased mainly driven by NII from strong commercial activity and interest rates - Payments grew backed by good merchant business performance • Higher liquidity buffer remuneration and lower negative impact from FX hedging in the Corporate Centre Group performance By business NII + Fees Other income Constant € mn YoY growth Total revenue Total revenue +16% +13% +12% +1% +17% +22% +12% 12,462 12,384 12,881 13,227 13,729 13,964 14,548 15,406 Q1'22 Q2 Q3 Q4 Q1'23 Q2 Q3 Q4
22 2.74% -1.32 -0.08 2.53% +1.46 +0.16 2022 Asset yields Asset volumes Liability costs Liability volumes 2023 8,930 9,150 9,435 9,855 9,916 10,351 10,891 12,103 Q1'22 Q2 Q3 Q4 Q1'23 Q2 Q3 Q4 2.45% 2.52% 2.56% 2.56% 2.63% 2.74% 2.82% 2.76% NII and NIM up YoY, supported by volumes and margin improvement NII drivers • NII growing YoY across regions: - Europe (+27%) and North America (+3%) driven by the positive sensitivity to interest rates of our retail activity - DCB Europe (+6%) as active loan repricing and deposit growth offset negative interest rate sensitivity - South America (+12%), up in most countries • NII up 11% QoQ with Brazil (+8%) maintaining the positive trends of recent quarters, and benefited by Argentina • NIM improved YoY, driven by asset repricing and cost of deposits well under control • NIM growing consistently QoQ in 2023 excluding Argentina • Positive NII sensitivity ahead of guidance, reflecting the strength of our European franchise, mostly funded with stable retail deposits NII Margins Net interest income and NIM NIM Quarterly NII Constant € mn NIM Note: NIM = NII / Average earning assets. Changes in constant euros. +23%
23 2,830 2,923 2,856 2,875 2,982 2,964 3,028 3,083 Q1'22 Q2 Q3 Q4 Q1'23 Q2 Q3 Q4 Net fee income growth, demonstrating the value added from our business diversification YoY % changes in constant euros Net fee income drivers Constant € mn Net fee income Retail CIB Wealth • Active customers increased YoY • Transactionality and well-targeted services to segments • Strong growth across regions and businesses • Strengthening value-added services • Private Banking CAL increased 15% YoY • SAM: record year in net sales (€9.0bn) • Insurance gross written premiums grew 12% YoY YoY growth Consumer • Good performance in Mexico and South America • Affected by regulatory changes in Germany and lower activity in the US Payments • Strong total payments volume growth (+22% YoY) backed by Brazil, Europe and Mexico • Cards fees up 17% supported by activity growth +5% +7% 12,057 -6 -31 11,483 +263 +3 +340 +6 2022 Retail Consumer CIB Wealth Payments CC 2023 -0% -2% +14% +0% +13%
24 5,516 5,667 5,820 6,189 6,018 6,163 6,344 6,900 Q1'22 Q2 Q3 Q4 Q1'23 Q2 Q3 Q4 25,425 23,193 +544 +480 +992 +196 +19 2022 Europe North America South America DCB Europe CC 2023 ONE Transformation driving efficiency and positive jaws Costs and efficiency driversCosts Constant € mn Costs YoY growth in real terms1 Efficiency Quarterly Efficiency • Transformation towards simpler and more integrated models drove efficiency improvements in 2023 • In 2023, efficiency improved to 44.1% (-1.7 pp; Europe -5.2 pp) • Transformation investments (technology) in 2023 totalled €2.4bn • Q4 efficiency impacted by DGF charge and investments in the US Costs • Flat in real terms • Europe slightly up affected by competitive labour market in Poland and DCB Europe by strategic growth initiatives • North America performance reflecting our efforts to accelerate transformation and growth • South America growing below inflation despite impacts from salary agreements and tech investments (1) Costs in real terms exclude the impact from weighted average inflation. +10% +1% +3% -3% +3% +2% 45.0% 46.0% 45.6% 46.6% 44.1% 44.3% 43.6% 44.4% ( in real terms1)0%
25 2023 execution Efficiency Reminder from Investor Day Efficiency Consistent execution of ONE Transformation and value added from our Global and Network businesses accelerating the achievement of our ID targets • Multi-Latin/Multi-European: +40% revenue growth in 2023 • Wealth: collaboration with CIB and Corporates $219mn (+11% in 2023) • Consumer: expansion of OEM agreements • Global approach to technology: €187mn efficiencies in 2023 - Gravity (back-end) efficiencies - Global vendor agreements - IT&Ops shared-services • Product simplification: 16% fewer products in the year • 56% products / services digitally available • In US, $200mn efficiencies captured in Consumer and Commercial in the year 200-250 bps c. 42% 100-150 bps 50-75 bps -112 bps -28 bps -32 bps FY’22 One Transformation Global & Network businesses Global Tech capabilities & others 2025 target FY’23 45.8% FY’22 45.8% FY’23 or latest available data. 44.1%
26 2,181 2,599 2,692 2,991 2,883 2,868 3,223 3,484 Q1'22 Q2 Q3 Q4 Q1'23 Q2 Q3 Q4 Credit quality remains robust with CoR within our target for 2023 Credit quality drivers Group credit quality • Credit quality remains robust, despite substantial impacts from one-offs, supported by record low unemployment in most countries • NPL ratio stood at 3.14% (3.08% Dec-22) with NPL coverage and stages fairly stable CoR Constant € mn LLPs LLPs and credit quality • Spain credit quality remains under control with NPL improving 21bps YoY and stable CoR • CoR in the UK stable at just 10bps, Poland impacted by CHF mortgages YoY • DCB Europe remains at very low levels • US CoR (1.92%) up, in line with expectations • Mexico CoR up YoY at comfortable levels • Brazil NPL downward trends QoQ during 2023. CoR improved slightly YoY despite single names Detail by country Other credit quality metrics Note: CoR - provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months. Dec-22 Sep-23 Dec-23 NPL ratio 3.08% 3.13% 3.14% Coverage ratio 68% 68% 66% Stage 1 €1,004bn €1,002bn €1,000bn Stage 2 €69bn €77bn €80bn Stage 3 €35bn €36bn €36bn 0.77% 0.83% 0.86% 0.99% 1.05% 1.08% 1.13% 1.18%
27 Diversified commercial banking model funded with stable retail deposits Loan portfolio and customer funds Dec-23 Dec-23 Time 32% Insured >80% Total deposits1 Deposits from individuals Total deposits by product Transactional c.75% Deposit structure Note: management breakdown. YoY % changes in constant euros. (1) % transactional deposits under LCR criteria. 563 250 155 209 Customer funds 334 163 137 245 136 Customer loans CIB SMEs & Corp Consumer loans & others Auto Individual mortgages SMEs, Corp & Other CIB Mutual funds Individuals €1,015bn €1,177bn +4% +13% -3% +4% +3% -1% -6% -1% +4% +7% -4%
28 CET1 well above our target of >12%, driven by strong capital generation, with profitable front-book growth >15% RoTE % % RWAs with RoRWA > CoE Asset rotation and risk transfer activities RWAs mobilized vs. total RWAs 12% FL CET1 quarterly performance Maximize capital productivity Front book pricing RoRWA of new book 2.7% Dec-23 or estimates 84% (1) Execution of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. (2) FL CET1 ratio previous to deducting 26bps resulting from the following of new EBA Q&A 2023_6887 released in Q4 of accruing share buybacks included in distribution policies. 1 12.5 12.3 -0.12 -0.26 12.3 +0.29 +0.04 +0.04 Sep-23 Organic generation Cash dividend accrual Regulatory & models Markets & others Dec-23 pre-EBA SBB New SBB EBA Q&A Dec-23 2
29 Index 2023 Highlights Progress of our strategy 1 2 Group review 3 Final remarks 2024 Guidance 4 Appendix
30 Excellent progress in the execution of our strategy Efficiency and profitability improvement Strong first year in our new phase of value creation and growth Supported by our winning combination of local leadership with global scale and network Resilient balance sheet with a stronger capital ratio Foundation for further growth, value creation and shareholder remuneration Last step towards ONE Santander unlocks full potential of the Group Common operating model supporting value creation based on profitable growth and operational leverage provided by global platforms Record results in our first year of our new phase of value creation and growth Profit €11.1bn Efficiency 44.1% EPS +21.5% TNAVps + DPS +15% Cash DPS c.+50% Note: Our shareholder remuneration policy is c.50% payout split in approximately equal parts (cash and share buybacks). Cash DPS against 2023 results estimated as 25% of the profit for the year. Implementation of 2023 shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. TNAVps + DPS includes the €5.95 cent cash dividend paid in May 2023 and the €8.10 cent cash dividend paid in November 2023.
31 Double-digit growth 44-45% <1.2% >12% >15% +13% 44.1% 1.18% 12.3% 15.1% Revenue1 Efficiency ratio CoR FL CET1 RoTE Our 2023 achievement 2023 targets In summary, a great set of results delivering on all our 2023 targets (1) YoY change in constant euros.
32Note: targets market dependent. Based on macro assumptions aligned with international economic institutions. (1) YoY revenue growth in constant euros, but Argentina in current euros. Looking ahead, we are well positioned to continue driving additional profitable growth in 2024 Revenue1 Mid-single digit growth Efficiency <43% CoR c.1.2% FL CET1 after Basel III implementation >12.0% RoTE 16% Our consistent track record and the implementation of ONE Santander make us confident we will deliver on the following targets in 2024 Double-digit growth of TNAVps+DPS through-the-cycle
33 Index 2023 Highlights Progress of our strategy 1 2 Group review 3 2024 Guidance Final remarks 4 Appendix
34 Appendix Investor Day Targets summary Detail by region, country and global business Credit quality in Brazil and the US Reconciliation of underlying results to statutory results Glossary The other information in the Appendix regularly provided each quarter can be found in the document entitled "Supplementary Information", published together with this presentation on the Group's corporate website
35 (1) Target payout defined as c.50% of group reported profit (excluding non-cash, non-capital ratios impact items), distributed in approximately 50% in cash dividend and 50% in share buybacks. Execution of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. (2) Those customers who meet transactionality threshold in the past 90 days. (3) Total transactions include merchant payments, cards and electronic A2A payments. Target c.+8% CAGR 2022-25. (4) Information is audited on a limited assurance basis. Not taxonomy. Green finance raised & facilitated (€bn): since 2019. Financial inclusion (#people, mn): starting Jan-23. Does not include financial education. Definitions in the Glossary of this presentation. 2022 2025 targets2023 ONE Transformation driving double-digit growth in value creation TNAVps+DPS (Growth YoY) Double-digit growth average through-the-cycle +6% +15% RoTE (%) 13.4 15.1 15-17 Payout (Cash + SBB)1 (%) 40 50 50 EPS Growth (%) 23 21.5 Double-digit Total customers (mn) 160 165 c.200 Active customers (mn)2 99 100 c.125 Simplification & automation Efficiency ratio (%) 45.8 44.1 c.42 Customer activity Transactions volume per active customer (month, % growth)3 - 10 c.+8 FL CET1 (%) 12.0 12.3 >12 RWA with RoRWA>CoE (%) 80 84 c.85 Green financed raised & facilitated (€bn) 94.5 114.6 120 Socially responsible Investments (AuM) (€bn) 53 67.7 100 Financial inclusion (# People, mn) - 1.8 5 Women in leadership positions (%) c.29 31.4 35 Equal pay gap (%) c.1 c.0 c.0 Profitability Customer centric Capital ESG4
36 Appendix Investor Day Targets summary Detail by region, country and global business Credit quality in Brazil and the US Reconciliation of underlying results to statutory results Glossary The other information in the Appendix regularly provided each quarter can be found in the document entitled "Supplementary Information", published together with this presentation on the Group's corporate website
37 Detail by region and country
38 Highlights Note: 2023 data and YoY changes (loans, deposits and mutual funds in constant euros). Key data and P&L Loans Deposits Mutual Funds Efficiency CoR RoTE €552bn -6% €620bn -2% €105bn +12% 42.1% -5.2pp 0.44% +4bps 14.5% +5.2pp Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 4,123 -2.4 15,910 27.0 26.6 Net fee income 1,071 -1.4 4,399 -2.2 -2.1 Total revenue 5,211 -9.7 21,439 19.2 18.9 Operating expenses -2,357 3.0 -9,030 6.4 5.9 Net operating income 2,854 -18.1 12,409 30.5 30.5 LLPs -582 -12.4 -2,533 5.4 5.7 Attributable profit 1,306 -20.5 5,482 44.6 43.9 (*) € mn and % change in constant euros. (1) % change in current euros. • Focus on transformation projects to develop a common operating model (OneApp, OneWeb, OnePlatform) and increase customer satisfaction • Customer growth continued (+730k YoY), mainly driven by consistent growth in Spain • Loans and deposits dropped as the result of prepayments (especially mortgages) and lower activity in a context of higher interest rates • Strong profit growth YoY supported by double-digit NII backed by positive balance sheet sensitivity to higher interest rates and CIB performance. Efficiency gains and active risk management • In the quarter, profit affected by seasonal charges (DGF contribution in Spain and bank levy in the UK). NII trend affected by average volumes and liability costs. Lower LLPs despite additional CHF provisions Europe
39 Spain UK España and UK Note: 2023 data and YoY changes (loans, deposits and mutual funds in constant euros). Loans Deposits Mutual Funds €235bn -6% €224bn -1% €7bn 0% 49.7% +0.1pp 0.10% -2bps 13.0% +2.3pp Loans Deposits Mutual Funds €230bn -8% €309bn -4% €78bn +8% 41.7% -6.8pp 0.62% +1bp 14.2% +6.3pp Efficiency CoR RoTEEfficiency CoR RoTE Underlying P&L* Q4'23 % Q3'23 2023 % 2022 NII 1,738 -0.2 6,641 46.3 Net fee income 652 2.7 2,699 -4.2 Total revenue 2,341 -12.6 10,132 23.1 Operating expenses -1,100 1.2 -4,227 5.7 Net operating income 1,241 -22.0 5,905 39.4 LLPs -342 -9.1 -1,522 -5.9 Attributable profit 516 -28.5 2,371 51.9 (*) € mn and % change. Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 1,225 -8.1 5,152 5.3 3.2 Net fee income 74 -22.8 338 -11.5 -13.3 Total revenue 1,280 -13.3 5,525 4.0 2.0 Operating expenses -698 3.0 -2,745 4.3 2.2 Net operating income 581 -27.1 2,779 3.7 1.7 LLPs -18 -85.7 -247 -20.1 -21.7 Attributable profit 301 -28.6 1,545 13.0 10.8 (*) € mn and % change in constant euros. (1) % change in current euros. • Sustained strong growth in customers. Dropping deposits explained by mortgage prepayments. Half of the decline in loans came from CIB • Profit +52% driven by higher NII, boosted by active pricing management in a context of higher interest rates and robust credit quality supported by active risk management • QoQ trends affected by impact of interest rate expectations and lower volumes on NII, lower contribution from CIB and DGF charge • Higher rates continued to affect loan volumes and deposits, with strong migration from demand to time deposits • Profit up 13% YoY supported by NII, on the back of higher rates, good cost control and risk management • Profit QoQ affected by pressures on liability costs and contained operational expenses, partially offset by lower LLPs
40 Portugal and Polonia Portugal PolandPoland Note: 2023 data and YoY changes (loans, deposits and mutual funds in constant euros). €35bn +5% €44bn +5% €5bn +48% 27.1% -0.9pp 2.08% +65bps 17.7% +5.8pp Loans Deposits Mutual Funds Loans Deposits Mutual Funds Underlying P&L* Q4'23 % Q3'23 2023 % 2022 NII 451 2.7 1,465 96.2 Net fee income 111 -5.1 464 -4.2 Total revenue 584 1.6 1,982 53.1 Operating expenses -141 3.0 -542 8.1 Net operating income 443 1.2 1,440 81.6 LLPs -18 -25.6 -77 353.6 Attributable profit 292 3.2 896 67.9 (*) € mn and % change. €38bn -6% €36bn -6% €4bn +17% 27.3% -11.4pp 0.20% +16bps 25.9% +10.9pp Efficiency CoR RoTE Efficiency CoR RoTE Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 673 -0.3 2,543 24.7 28.7 Net fee income 153 1.4 589 8.1 11.6 Total revenue 838 -1.5 3,182 24.6 28.6 Operating expenses -240 8.9 -862 20.7 24.6 Net operating income 598 -5.2 2,320 26.1 30.1 LLPs -199 49.8 -674 48.5 53.2 Attributable profit 145 -32.4 674 79.6 85.3 (*) € mn and % change in constant euros. (1) % change in current euros. • Focus on profitability, rather than market share. Loans under pressure from higher rates. Excellent liquidity management, with cost of deposits under control, in a context of early loan repayments • Profit +68% YoY with strong NII, costs broadly in line with inflation and CoR at low levels • Profit up QoQ driven by net operating income growth on the back of higher NII and lower LLPs • Loans rose mainly driven by corporates and CIB. Significant growth both in demand and time deposits • Profit up 80% YoY supported by revenue growth (good funding cost management), which allowed us to offset higher costs and additional CHF mortgage provisions • Profit down QoQ, in a context of lower interest rates, affected by higher costs and CHF provisions
41 • Accelerate the transformation of our businesses simplifying our product portfolio, streamlining operations and delivering an excellent customer experience while further building out CIB and Wealth franchises • Solid performance in loans and deposits in both countries • Revenue up YoY driven by NII (interest rates and volumes) in Mexico and gains on financial transactions (CIB) and fees across the region • Cost growth driven by transformation and strategic investments, partially offset by cost control initiatives • Profit impacted by LLPs, reflecting normalization to pre-pandemic levels and volume growth, but still at comfortable levels • QoQ gains in NII more than offset by investments in transformations and continued normalization in LLPs Note: 2023 data and YoY changes (loans, deposits and mutual funds in constant euros). North America Loans Deposits Mutual Funds €161bn +3% €142bn +4% €29bn 0% 49.1% +1.4pp 2.05% +56bps 9.8% -1.3pp Efficiency CoR RoTE Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 2,626 1.0 10,159 2.6 4.7 Net fee income 555 -0.2 2,192 6.7 11.9 Total revenue 3,366 -0.6 13,174 4.7 7.0 Operating expenses -1,758 6.7 -6,465 8.0 10.1 Net operating income 1,608 -7.6 6,708 1.7 4.1 LLPs -1,126 4.3 -3,733 45.2 47.1 Attributable profit 454 -17.6 2,354 -20.3 -18.2 (*) € mn and % change in constant euros. (1) % change in current euros. Highlights Key data and P&L
42 • Strong customer growth, driving volume increase, and profitable market share gains • Excellent profit and profitability supported by double-digit revenue growth and improved efficiency. CoR up, but remains at manageable levels •Positive revenue trends continued in Q4 with lower LLPs offset by costs affected by transformation efforts • Deposit base growth despite challenging environment. Lending up driven by Multifamily and CIB • Revenue impacted by higher funding costs, a one-off FDIC charge and higher share of electric vehicles leasing (offset by lower tax expense) • YoY and QoQ profit trends affected by LLP normalization, in line with expectations, and transformation costs Note: 2023 data and YoY changes (loans, deposits and mutual funds in constant euros). (2) Adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Using tangible equity, RoTE is 6.1%. USA y Mexico Mexico €49bn +6% €46bn +10% €17bn +10% 43.9% -1.0pp 2.43% +48bps 17.7% +0.8pp €113bn +1% €96bn +1% €12bn -12% 51.0% +3.8pp 1.92% +56bps 9.1% -7.6pp Loans Deposits Mutual Funds Loans Deposits Mutual Funds Efficiency CoR RoTE2 Efficiency CoR RoTE Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 1,428 -0.2 5,742 -3.8 -6.5 Net fee income 187 -2.4 766 2.2 -0.6 Total revenue 1,767 -4.0 7,209 -2.7 -5.4 Operating expenses -964 4.2 -3,679 5.1 2.2 Net operating income 802 -12.2 3,531 -9.8 -12.3 LLPs -824 7.0 -2,593 52.9 48.7 Attributable profit 67 -67.2 932 -46.3 -47.7 (*) € mn and % change in constant euros. (1) % change in current euros. Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 1,195 2.3 4,408 12.1 23.7 Net fee income 355 1.5 1,374 9.3 20.5 Total revenue 1,581 3.3 5,899 15.7 27.6 Operating expenses -743 10.8 -2,588 13.0 24.7 Net operating income 838 -2.5 3,311 17.9 30.0 LLPs -301 -1.9 -1,135 30.6 44.1 Attributable profit 397 0.3 1,560 16.6 28.6 (*) € mn and % change in constant euros. (1) % change in current euros. US
43 South America Note: 2023 data and YoY changes (loans, deposits and mutual funds in constant euros). • We are focusing on increasing the value added to the Group and promoting synergies across our global and regional businesses • Customer growth and higher transactionality • Solid performance in loans, deposits and mutual funds with a strengthened risk model • Profit down YoY due to rising costs and LLPs. Revenue up backed by higher NII, fees and gains on financial transactions, which more than offset negative impact from the hyperinflation adjustment • Profit up 18% QoQ driven by positive NII performance in the main countries (Brazil and Chile already benefitting from lower interest rates) and higher net fee income. Results in euros, strongly distorted by Argentine peso devaluation €161bn +7% €135bn +15% €70bn +21% 38.5% +1.5pp 3.36% +4bps 14.4% -4.3pp Loans Deposits Mutual Funds Efficiency CoR RoTE Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 3,206 37.7 13,040 12.0 0.5 Net fee income 1,025 8.3 4,684 14.0 3.7 Total revenue 4,329 20.6 17,971 7.8 -0.3 Operating expenses -1,589 21.6 -6,920 16.7 3.7 Net operating income 2,741 19.9 11,050 2.9 -2.6 LLPs -1,560 29.1 -5,401 8.9 7.1 Attributable profit 709 18.1 3,038 -11.2 -16.9 (*) € mn and % change in constant euros. (1) % change in current euros. Highlights Key data and P&L
44Note: 2023 data and YoY changes (loans, deposits and mutual funds in constant euros). Brazil • Growth in loans (individuals, corporates and SMEs) and deposits (time) • Profit down YoY affected by weak NII due to negative sensitivity, lower gains on financial transactions (market activity), inflation and higher provisions. Fees up driven by transactionality • In Q4, strong NII growth (volume and lower interest rates). Profit impacted by higher costs and LLPs (one-offs in CIB portfolio) Chile • #1 NPS. Continued business transformation to offer the best products and services • Profit YoY impacted by negative NII sensitivity. Solid performance in fees (payments & insurance), costs (-5% in real terms) and CoR • In Q4, strong profit growth driven by NII increase (UF and lower interest rates) and LLP decrease Brasil and Chile Loans Deposits Mutual Funds Loans Deposits Mutual Funds €103bn +6% €90bn +13% €55bn +15% 34.6% +2.2pp 4.77% -2bps 13.7% -5.5pp €44bn +4% €29bn +8% €11bn +25% 44.6% +4.6pp 0.80% -13bps 14.8% -4.6pp Efficiency CoR RoTEEfficiency CoR RoTE Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 2,504 8.0 9,116 2.0 2.4 Net fee income 885 -1.5 3,462 4.6 5.0 Total revenue 3,487 5.0 13,104 1.1 1.5 Operating expenses -1,184 4.5 -4,529 7.9 8.3 Net operating income 2,303 5.2 8,574 -2.2 -1.8 LLPs -1,417 27.3 -4,701 6.0 6.4 Attributable profit 494 -18.2 1,921 -24.8 -24.5 (*) € mn and % change in constant euros. (1) % change in current euros. Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 415 72.9 1,383 -22.9 -22.0 Net fee income 122 -4.3 572 20.8 22.2 Total revenue 591 29.9 2,285 -7.7 -6.7 Operating expenses -249 2.7 -1,020 2.8 4.0 Net operating income 343 60.9 1,265 -14.8 -13.8 LLPs -78 -3.2 -365 -9.5 -8.5 Attributable profit 165 88.7 582 -15.1 -14.1 (*) € mn and % change in constant euros. (1) % change in current euros.
45Note: 2023 data and YoY changes (profit, loans, deposits and mutual funds in constant euros). Argentina • #1 NPS, with one of the best rated apps among local banks • Profit up YoY driven by strong revenue growth and efficiency improvement • Q4 results in euros impacted by peso devaluation. In constant euros, solid performance across revenue lines Argentina y Uruguay • Focus on digital expansion in Uruguay and on joint initiatives between CIB and Corporates in Peru and Colombia • Profit up YoY on the back of double-digit revenue growth in all three countries • High profitability: double-digit RoTEs Uruguay, Peru and Colombia Loans Deposits Mutual Funds 28 2023 84 2023 187 2023 Uruguay Peru Colombia RoTEs € mn Attributable profit +32% +14% +10% €4bn +217% €6bn +190% €4bn +355% 50.2% -3.7pp 6.64% +373bps 55.6% +29.4pp 24.8% +3.0pp 22.8% +0.0pp 14.0% -2.0pp Efficiency CoR RoTE Underlying P&L* Q4'23 Q3'23 % Q3'23¹ 2023 % 2022 % 2022¹ NII 112 629 -82.2 1,879 399.4 5.7 Net fee income -50 164 — 396 245.2 -26.9 Total revenue -27 543 — 1,544 298.1 -15.8 Operating expenses 6 -260 — -775 271.0 -21.5 Net operating income -21 283 — 769 329.7 -9.1 LLPs -7 -47 -85.4 -150 436.9 13.6 Attributable profit -20 154 — 386 462.3 19.0 (*) € mn and % change in constant euros. (1) % change in current euros.
46 • We continue to reinforce our leadership in mobility though new strategic alliances and our leasing & subscription businesses • Leasing contracts rose +15% YoY, driven by SCF. New lending up 3% (+6% in auto) • Revenue up 6% YoY and 2% QoQ, driven by NII as we actively repriced loans and grew customer deposits (+€11bn in 2023) to compensate impact of higher interest rates on funding costs. Fees impacted by regulatory changes in Germany • We are investing in transforming our model (common leasing and BNPL platforms) and business growth (MCE Bank in Germany). Costs rose 3% in real terms • CoR normalizing and remains at low levels (inc. CHF provisions) Note: 2023 data and YoY changes (loans and customer funds in constant euros). Digital Consumer Bank Europe New lending Loans Customer Funds €52bn +3% €135bn +8% €73bn +19% 47.6% +0.9pp 0.62% +16bps 12.3% -1.3pp Efficiency CoR RoTE Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ NII 1,083 1.5 4,193 6.1 4.3 Net fee income 192 -8.8 796 -5.3 -5.6 Total revenue 1,433 1.7 5,502 5.9 4.4 Operating expenses -652 0.0 -2,618 8.1 6.4 Net operating income 781 3.1 2,884 3.9 2.7 LLPs -152 -32.5 -792 47.8 45.7 Attributable profit 376 25.1 1,199 -6.9 -8.4 (*) € mn and % change in constant euros. (1) % change in current euros. Highlights Key data and P&L
47 Corporate Centre • Lower attributable loss as NII improved significantly driven by higher liquidity buffer remuneration as a result of the higher interest rates • Lower negative FX hedging impact resulted in greater gains on financial transactions • Slight decrease in LLPs and other provisions Underlying P&L* 2023 2022 NII -41 -652 Gains / losses on financial transactions -302 -724 Operating expenses -391 -372 LLPs and other provisions -132 -164 Tax and minority interests -36 -27 Attributable profit -998 -2,049 (*) € mn. Highlights Income statement
48 Detail by global business Reflecting the new operating model announced in September. Note: for more information, see also the presentation published on 20 December 2023 that explains the new operating model and adapted financial disclosures.
49 Note: - New global business definitions as published on 20 December 2023. - 2023 data and YoY changes in constant euros. Loans Efficiency RoTE • We continued to drive the digitalization and simplification of our products and services through ONE Transformation • Loans down 3% mainly due to prepayments in Europe, while deposits up 3% driven by the Americas • Profit up 12% YoY on the back of revenue growth (+12%) driven by good price management. Efficiency ratio improved 2pp to 43.1% • In the quarter, profit affected by seasonal charges (DGF contribution in Spain and bank levy in the UK) and additional CHF provisions • Strengthening our franchise through common commercial partners and operating standards • Total revenue increased YoY as higher activity offset negative interest rate sensitivity and lower fees and leasing income • Profit YoY affected by higher interest rates, impact of strategic growth initiatives on costs and LLPs driven by normalization in line with expectations • Profit +9% QoQ, supported by revenue and positive LLP performance Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ Total revenue 6,971 -2.8 29,754 12.5 10.2 Net operating income 3,881 -8.1 16,930 14.2 13.4 Attributable profit 1,240 -18.1 5,659 11.7 12.8 (*) € mn and % change in constant euros. (1) % change in current euros. Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ Total revenue 3,155 2.0 12,296 1.1 -0.8 Net operating income 1,784 -1.5 7,033 -0.6 -2.2 Attributable profit 457 9.2 1,901 -26.1 -27.2 (*) € mn and % change in constant euros. (1) % change in current euros. DCB Loans Efficiency RoTE €619bn -3% 43.1% -1.6pp €207bn +6% 42.8% +0.9pp Retail & Commercial Banking Digital Consumer Bank 15.1% +1.0pp 11.5% -4.0pp
50 • Strong revenue performance of the CIB US franchise with relentless focus on the execution of our growth strategy • Profit +16% YoY, with revenue growth across regions and businesses with fees increasing and strong network collaboration revenue • CIB maintains best-in-class efficiency and capital profitability levels. QoQ affected by single names provisions in Brazil Note: - New global business definitions as published on 20 December 2023. - 2023 data and YoY changes in constant euros. (1) Includes all fees generated by asset management and insurance businesses, even those ceded to the commercial network. Fees Efficiency RoTE AuMs Total fees1 RoTE €2,131mn +14% 45.0% +1.7pp 17.5% +1.6pp €460bn +14% 72.2% +19.8pp • Contribution to Group profit increased 15% YoY, in a capital-light business, with a RoTE above 70% • PB: outstanding growth on the back of NII and commercial activity (net new money of €13.7bn; customers +9%) • SAM: record year in net sales (€9.0bn), gaining market share in almost all markets. #3 European asset manager by sales in 2023 • Insurance: continued growth backed by non-related and savings businesses. GWPs increased 12% YoY Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ Total revenue 2,120 20.7 7,527 16.9 12.3 Net operating income 1,111 17.0 4,140 14.3 8.9 Attributable profit 587 -1.8 2,440 16.2 9.2 (*) € mn and % change in constant euros. (1) % change in current euros. Corporate & Investment Banking Wealth Management & Insurance Underlying P&L* Q4'23 % Q3'23 2023 % 2022 % 2022¹ Total revenue 784 0.1 3,210 21.6 19.9 Net operating income 449 -9.1 1,994 28.4 26.7 Attributable profit 359 -1.5 1,467 34.8 33.3 Contribution to profit 784 2.8 3,129 14.9 14.5 (*) € mn and % change in constant euros. (1) % change in current euros. WMI €3,722mn +1%
51 3,775 4,158 2022 2023 9.1% 24.8% 2022 2023 970 1,140 2022 2023 Note: - New global businesses definitions as published on 20 December 2023. - 2023 and YoY changes in constant euros. Cards does not include Digital Consumer Bank or PagoNxt; not including payments business in the US, except for # of cards. PagoNxt • Getnet TPV increased 22% YoY across markets (Getnet Brazil +14%; Getnet Europe +31%; Getnet Mexico +23%; Getnet Chile +80%) • Payments Hub already one of the largest processors of A2A payments in Europe • Revenue increased 20% YoY (+17% in constant euros) due to overall increase in business activity and volumes across geographic segments especially in our Merchant (Getnet) and Trade businesses Financial performance +17% Merchant (Getnet) €206bn +22% Total Payments Volume (TPV) Number of transactions +29% Revenue EBITDA margin +15.7 pp Cards • 99 million cards, growing in line with the positive trends of previous quarters • Solid growth in customer activity (€306bn turnover, +8% YoY) • Revenue grew +10% YoY in constant euros • High profitability with RoTE of 35% Cards €306bn +8% Fees +17% Turnover Revenue performance Constant € mn +10% Payments
52 Appendix Investor Day Targets summary Detail by region, country and global business Credit quality in Brazil and the US Reconciliation of underlying results to statutory results Glossary
53 6.7% 3.7% 1.7% 3.6% 4.3% 5.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 2019 2020 2021 2022 2023 2024(e) NCO rate (annual) NCO rate (quarterly) US Brazil and US credit quality Auto loan distribution by FICO Segment2 5% 5% 3% 3% 4% 3% 3% 17% 17% 17% 16% 17% 16% 16% 13% 16% 21% 21% 20% 21% 22% 24% 23% 19% 21% 21% 21% 21% 21% 21% 22% 21% 20% 19% 19% 2% 2% 2% 2% 2% 2% 3% 17% 16% 16% 16% 17% 18% 16% 2015 2016 2019 2020 2021 2022 2023 Unsecured Secured Others Auto loans Mortgages Payroll loans Credit cards Personal loans Agro 4.5% 4.9% 4.4% 4.1% 3.9% 4.3% 3.7% 4.8% 4.8% 2015 2016 2017 2018 2019 2020 2021 2022 2023 Individual + consumer finance portfolio breakdown Cost of risk Brazil Estimated to remain below pre-pandemic “normal levels” US Auto Net Charge-Off Rates1 16% 17% 11% 9% 9% 7% 7% 6% 53% 51% 51% 41% 38% 38% 35% 34% 17% 17% 18% 16% 16% 16% 17% 18% 14% 15% 21% 34% 38% 39% 41% 42% 2016 2017 2018 2019 2020 2021 2022 2023 >=640 600-639 <600 No FICO Note: Data as of December 31, 2023. Local criteria breakdown. NCO’s are in IFRS. (1) 2019-2024 NCO % (including repossession expense). (2) Auto loans excludes commercial fleet and LHFS.
54 Appendix Investor Day Targets summary Detail by region, country and global business Credit quality in Brazil and the US Reconciliation of underlying results to statutory results Glossary
55 Reconciliation of underlying results to statutory results (1) Includes exchange differences. Explanation of 2023 adjustments: • Temporary levy on revenue in Spain in the first quarter, totalling EUR 224 million, which was moved from total income to other gains (losses) and provisions. • Provisions to strengthen the balance sheet in Brazil in the first quarter, totalling EUR 235 million, net of tax and non-controlling interests (EUR 474 million recorded in net loan-loss provisions, EUR 213 million positive impact in tax and EUR 26 million in non-controlling interests). Explanation of 2022 adjustments: • Mainly, payment holidays in Poland. Statutory results Adjustments Underlying results Statutory results Adjustments Underlying results Net interest income 43,261 — 43,261 38,619 — 38,619 Net fee income 12,057 — 12,057 11,790 — 11,790 Gains (losses) on financial transactions 1 2,633 — 2,633 1,653 — 1,653 Other operating income (528) 224 (304) 55 37 92 Total income 57,423 224 57,647 52,117 37 52,154 Administrative expenses and amortizations (25,425) — (25,425) (23,903) — (23,903) Net operating income 31,998 224 32,222 28,214 37 28,251 Net loan-loss provisions (12,932) 474 (12,458) (10,836) 327 (10,509) Other gains (losses) and provisions (2,607) (459) (3,066) (2,128) (364) (2,492) Profit before tax 16,459 239 16,698 15,250 — 15,250 Tax on profit (4,276) (213) (4,489) (4,486) — (4,486) Profit from continuing operations 12,183 26 12,209 10,764 — 10,764 Net profit from discontinued operations — — — — — — Consolidated profit 12,183 26 12,209 10,764 — 10,764 Non-controlling interests (1,107) (26) (1,133) (1,159) — (1,159) Profit attributable to the parent 11,076 — 11,076 9,605 — 9,605 January-December 2022January-December 2023
56 Appendix Investor Day Targets summary and our last step towards ONE SANTANDER Detail by region, country and global business Credit quality in Brazil and the US Reconciliation of underlying results to statutory results Glossary
57 Glossary - Acronyms • ALCO: Assets and Liabilities Committee • AM: Asset management • AuMs: Assets under Management • bn: Billion • BNPL: Buy now, pay later • bps: Basis points • c.: Circa • CAL: Customer assets and liabilities • CET1: Common equity tier 1 • CHF: Swiss franc • CIB: Corporate & Investment Bank • CoE: Cost of equity • CoR: Cost of risk • Covid-19: Coronavirus Disease 19 • CRE: Commercial Real Estate • DCB: Digital Consumer Banking • DGF: Deposit guarantee fund • DPS: Dividend per share • EPS: Earning per share • ESG: Environmental, social and governance • FL: Fully-loaded • FX: Foreign exchange • FY: Full year • IFRS 9: International Financial Reporting Standard 9, regarding financial instruments • LLPs: Loan-loss provisions • mn: million • NII: Net interest income • NIM: Net interest margin • NPL: Non-performing loans • NPS: Net promoter score • OEM: Original equipment manufacturer • PB: Private Banking • PBT: Profit before tax • P&L: Profit and loss • pp: Percentage points • Ps: Per share • QoQ: Quarter-on-Quarter • Repos: Repurchase agreements • RoE: Return on equity • RoRWA: Return on risk-weighted assets • RoTE: Return on tangible equity • RWA: Risk-weighted assets • SAM: Santander Asset Management • SAN: Santander • SBB: share buybacks • SC USA: Santander Consumer USA • SME: Small and Medium Enterprises • TNAV: Tangible net asset value • TPV: Total Payments Volume • YoY: Year-on-Year • YTD: Year to date
58 Glossary - Definitions Notes: The averages for the RoTE and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances. The risk-weighted assets included in the denominator of the RoRWA metric are calculated in line with the criteria laid out in the CRR (Capital Requirements Regulation). PROFITABILITY AND EFFICIENCY • RoTE: Return on tangible capital: Group attributable profit / average of: net equity (excluding minority interests) – intangible assets (including goodwill) • RoRWA: Return on risk-weighted assets: consolidated profit / average risk-weighted assets • Efficiency: Operating expenses / total income. Operating expenses defined as general administrative expenses + amortisations VOLUMES • Loans: Gross loans and advances to customers (excl. reverse repos) • Customer funds: Customer deposits excluding repos + marketed mutual funds CREDIT RISK • NPL ratio: Credit impaired loans and advances to customers, customer guarantees and customer commitments granted / Total risk. Total risk is defined as: Total loans and advances and guarantees to customers (including credit impaired assets) + contingent liabilities granted that are credit impaired • NPL coverage ratio: Total allowances to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted / Credit impaired loans and advances to customers, customer guarantees and customer commitments granted • Cost of risk: Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months CAPITALIZATION • Tangible net asset value per share – TNAVps: Tangible stockholders' equity / number of shares (excluding treasury shares). Tangible stockholders' equity calculated as shareholders equity + accumulated other comprehensive income - intangible assets ESG METRICS • Green Finance raised and facilitated = Nominal amount of PF, PF Advisory, PF bonds, Green bonds, ECA, M&A, ECM transactions classified by SCFS panel and reported in the League Tables since the beginning of the exercise. • SRI = Volume of assets under management classified as article 8 - promoting ESG objectives - and 9 - with explicit sustainability objectives - of the SFDR regulation (EU Reg. 2019/2088). Includes assets managed by Santander Asset Management (SAM), third-party funds and SAM funds managed with equivalent criteria in those geographies where SFDR does not apply (mainly LatAm). • Financial inclusion (# People) = Number of people who are unbanked, underbanked, in financial difficulty, with difficulties in accessing credit or with limited financial literacy who, through the Group's products, services and social investment initiatives, are able to access the financial system, receive tailored finance. Financially underserved groups are defined as people who do not have a current account, or who have an account but obtained alternative (non-bank) financial services in the last 12 months. Beneficiaries of various programs are included in the quantification process only once in the entire period. Only new empowered people are counted, taking as a base year those existing since 2019.
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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, S.A. Date: 31 January 2024 By: /s/ José García Cantera Name: José García Cantera Title: Chief Financial Officer