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Banco Comercial Portugues

Investor Presentation Sep 24, 2015

1913_iss_2015-09-24_18d7f8cb-67eb-4e27-aaa3-08ad2133b476.pdf

Investor Presentation

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Banco Santander, S.A. ("Santander") cautions that this presentation contains forward-looking statements. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macro-economic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America (the "SEC") could adversely affect our business and financial performance. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.

Forward-looking statements speak only as of the date on which they are made and are based on the knowledge, information available and views taken on the date on which they are made; such knowledge, information and views may change at any time. Santander does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation. In making this presentation available, Santander gives no advice and makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever.

Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000.

Note: Statements as to historical performance, share price or financial accretion are not intended to mean that future performance, share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast.

Note: The businesses included in each of our geographical segments and the accounting principles under which their results are presented here may differ from the businesses included in our public subsidiaries in such geographies and the accounting principles applied locally. Accordingly, the results of operations and trends shown for our geographical segments may differ materially from those disclosed locally by such subsidiaries.

The Global – Local Model

• Focus on performanceAutonomy and accountability: • Commercial Strategy definition • Execution • Countries prioritise which transformation projects to pursue The best of being local • Focus on value generation to local units to reinforce local and global franchise • Identify and share best practices and global talent • Support countries in implementation of key projects • Leverage global scale: international business, global franchises, products and platforms The best of being global

Objectives of our commercial transformation

Our aim

Levers for our commercial transformation

Helping people and businesses prosper 5

Levers | 1. Network Banking

The objective is to enhance commercial opportunities in our local footprints

Levers | 1. Network Banking – Trade Portal and Trade Club

Santander Trade facilitates commercial contact between customers in our geographies

Levers | 1. Network Banking – Passport and International Desk

Santander Passport: a multicountry relationship model

  • Local management of pricing and risk
  • Same commercial terms
  • Internal SLAs between banks
  • Cross-border results vision by customer
  • A same relationship commitment in all Santander units

5.3k

customers

International Desk: a lever to attract customers and provide service, helping foreign companies getting settled in Santander Markets

  • Multilingual advisory
  • Simple on boarding (inc. Know Your Customer)
  • Access to a local network of third parties (entities, lawyers…)

Data as of 1H'15. (1) Incl. Bank of Shanghai

Levers | 2. Customer Vision – NEO CRM and Business Intelligence

Leveraging Chile´s Neo CRM as a model of advanced commercial tools (Commercial front)

State of the
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HERE'S W. Factor ۰
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  • 360 ᴼ Customer´s vision
  • Integration of channels
  • Commercial Intelligence
  • Friendly and easy to use
  • Focus on performance

Improved commercial productivity (53% in Chile) & employee satisfaction

Events management examples: Right Moment, Right Channel, Right Product for every single customer

  • 1. More satisfied customers
  • 2. Increase effectiveness rates vs. traditional campaigns
  • 3. Reduce channels costs

Levers | 3. Multichannel

Multichannel and digital new corporate model: to offer the best experience to our customers anywhere anytime

Helping people and businesses prosper 10

Levers | 3. Multichannel. Examples

Branch of the future – Spain & Brazil Voice Print - Mexico

Levers | 4. Customer Experience

A Measure and understand Customer satisfaction

Improve customer

experience B C Promote S|P|F Culture

Customer journeys. Examples of Customer's on boarding process improvement

Levers | 5. Specialisation – Advance

Helping people and businesses prosper 13

Strengthen the affluent segment, offering value from a global perspective

SELECT: global value proposition for high-income customers

  • Specialised Relationship Manager portfolio and dedicated channels
  • Relationship managers with differentiated profile, training and certification
  • Exclusive value offer and customer experience

Expansion of the model during 2014 and 2015 in 11 countries

• As part of the benefits for Select customers, we launched the Global Select debit card which received the prize for one of the 'Best Ideas of 2014' from the magazine Actualidad Económica

2018 targets

1H'15 2018
Customers Retail loyal customers (MM) 12 17
SMEs and corporate loyal customers (MM) 1.0 1.6
Digital customers (MM) 15.1 30
# geographies in top 3 customer service 3 8(1)
Customer loans growth above peers

(1) Spain, Portugal, UK, Poland, Brazil, Mexico, Chile and Argentina. The U.S.:approaching peers

Key takeaways

We are evolving our business model and culture to increase our customer's satisfaction, loyalty and profitability

We are working on 5 levers: 1/ Connecting our banks to improve value proposition; 2/ Business Intelligence; 3/ Multichannel; 4/ Customer experience; 5/ Tailor-made solutions for specific groups of customers

From the Corporate Centre we ensure that all units take full advantage of our size and global scale to build the best Retail and Commercial Bank in all countries we operate

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