2020

BANCO SANTANDER, S.A. MORTGAGE COVERED BONDS INVESTORS PRESENTATION

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“Cédulas hipotecarias (CH)” Important information Non-IFRS and alternative performance measures

This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, 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 (ESMA/2015/1415en) and other non-IFRS measures (“Non-IFRS Measures”). These financial measures that qualify as APMs and non-IFRS measures have been calculated with information from Santander Group; however those financial measures are not defined or detailed in the applicable financial reporting framework nor have been audited or reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS measures to be useful metrics for our management and investors to compare operating performance between accounting periods, as these measures exclude items outside the ordinary course performance of our business, which are grouped in the “management adjustment” line and are further detailed in Section 3.2 of the Economic and Financial Review in our Directors’ Report included in our Annual Report on Form 20-F for the year ended 31 December 2019. Nonetheless, these APMs and non-IFRS measures should be considered supplemental information to, and are not meant 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. For further details on APMs and Non-IFRS Measures, including its 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 2019 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 6 March 2020, as well as the section “Alternative performance measures” of the annex to the Banco Santander, S.A. (“Santander”) Q4 2020 Financial Report, published as Inside Information on 3 February 2021. These documents are available on Santander’s website (www.santander.com). Underlying measures, which are included in this presentation, 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 included businesses 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.

Forward-looking statements

Santander advises that this presentation contains “forward-looking statements” as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words like “expect”, “project”, “anticipate”, “should”, “intend”, “probability”, “risk”, “VaR”, “RoRAC”, “RoRWA”, “TNAV”, “target”, “goal”, “objective”, “estimate”, “future” and similar expressions. Found throughout this presentation, they include (but are not limited to) statements on our future business development, economic performance and shareholder remuneration policy. However, a number of risks, uncertainties and other important factors may cause actual developments and results to differ materially from our expectations. The following important factors, in addition to others discussed elsewhere in this presentation, could affect our future results and could cause materially different outcomes from those anticipated in forward-looking statements: (1) general economic or industry conditions of areas where we have significant operations or investments (such as a worse economic environment; higher volatility in the capital markets; inflation or deflation; changes in demographics, consumer spending, investment or saving habits; and the effects of the COVID-19 pandemic in the global economy); (2) exposure to various market risks (particularly interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices); (3) potential losses from early repayments on our loan and investment portfolio, declines in value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in , the , other European countries, Latin America and the US (5) changes in legislation, regulations, taxes, including regulatory capital and liquidity requirements, especially in view of the UK exit of the European Union and increased regulation in response to financial crisis; (6) our ability to integrate successfully our acquisitions and related challenges that result from the inherent diversion of management’s focus and resources from other strategic opportunities and operational matters; and (7) changes in our access to liquidity and funding on acceptable terms, in particular if resulting from credit spreads shifts or downgrade in credit ratings for the entire group or significant subsidiaries.

2 Important information

Numerous factors could affect our future results and could cause those results deviating from those anticipated in the forward-looking statements. 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 of this presentation and are informed by the knowledge, information and views available on such date. Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise.

No offer

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 this presentation. No investment activity should be undertaken on the basis of the information contained in this 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.

Historical performance is not indicative of future results

Statements about historical performance or accretion must not be construed to indicate that future performance, share price or future (including earnings per share) in any future period will necessarily match or exceed those of any prior period. Nothing in this presentation should be taken a profit forecast.

Third Party Information

In particular, regarding the data provided by third parties, neither Santander, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, Santander may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, Santander assumes no liability for any discrepancy.

3 Index 1 2 3 4 5

Spanish Santander Santander Mortgage Appendix macroeconomic Business Spain – Main Covered environment Model & figures Bonds – 2020 Strategy

4 Spanish macroeconomic environment Stock of loans increased YoY boosted by the state-guaranteed programmes

Total loans (EUR bn)

1,207 1,188 1,194 1,155 1,159  Demand for loans up YoY boosted by the state-guaranteed 2.4 2.5 3.3 programmes, mainly in SMEs and corporates. YoY -0.7 (%) -1.5  Housing loans also impacted by measures following regulatory and supervisory recommendations, that, in many cases, were materialized through moratoria on payments of credit obligations. Dec-19 Mar-20 Jun-20 sep-20 Dec-20

Total deposits (EUR bn)

1,215 1,111 1,125 1,187 1,192 9.1 7.5 9.3  In savings, demand deposits increased YoY, both in YoY 4.8 4.2 (%) households and corporates (mainly demand deposits), in order to protect themselves from the consequences related to the covid-19 crisis.

Dec-19 Mar-20 Jun-20 Sep-20 Dec-20

Source: Bank of Spain. 5 Loans to Other Resident sectors Spanish macroeconomic environment: Credit quality Spanish NPL ratio still in a downward trend in Q3’20 due to payment holidays (moratoria and government guaranteed loans) and other cost reduction measures (ERTEs)

Spain Mortgage NPL ratio (%) European Banks Total NPL ratio by country (%) – Q3’20

6.0% 7.0%

6.0% 5.0%

5.0% 4.0%

4.0% 3.0%

3.0% 2.0%

2.0% 1.0% 1.0%

0.0%

0.0%

Sep'08

Sep-09

Sep-10

Sep-11

Sep-12

Sep-13

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

Sep-19

Sep-20

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19 Mar-20

NPL performance will depend on the speed of the recovery of the crisis and on the public support going forward

6 Source: Bank of Spain and EBA Risk Dashboard. Spanish macroeconomic environment: Credit quality The crisis has affected both housing supply and demand. Prices have remained more resilient because they were in line with fundamentals Housing starts (thousand units)1 Total housing sales (thousand units)2

* Accumulated 12 months Nov-20 vs Nov-19: -18,2% Finished * Accumulated 12 months 106 houses: 583 101 532 570 92 87 2014: 31 491 78 81 458 485 2015: 30 402 64 2016: 26 349 364 366 44 50 301 34 35 2017: 36 2018: 41 2019: 57 Nov-20: 87 (thousands) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q3'20*

Housing: Prices (price index per m2 in real terms)3 Price heterogeneity (% YoY in nominal terms)4

110 10% Base 100: Q3’07 “peak” Series1 Total Series6 100 100 Q3’20 / Q3’19: -0.6% 5% 90 (real terms) 0% 80

-5% 70 Q3’20: 67.4

60 -10%

50 -15%

Dec-08 Jun-10 Dec-11 Jun-13 Dec-14 Jun-16 Dec-17 Jun-19 Dec-20

Q1'02

Q1'03

Q1'04

Q1'05

Q1'06

Q1'07

Q1'08

Q1'09

Q1'10

Q1'11

Q1'12

Q1'13

Q1'14

Q1'15

Q1'16

Q1'17

Q1'18

Q1'19 Q3'20 Going forward, the speed of the recovery, the development of the tourism industry and the effects of the crisis on employment will be key for the housing market (1) Source: Ministry of Development Source. (2) Ministry of Development 7 (3) Source: Ministry of Development and Bank of Spain (appraisal methodology) (4) Source: Tinsa (appraisals) Index 1 2 3 4 5

Spanish Santander Santander Mortgage Appendix macroeconomic Business Spain – Main Covered environment Model & figures Bonds – 2020 Strategy

8 Santander Business Model & Strategy Resilient revenue and net operating income (ex-FX) in a challenging environment

Underlying attributable profit Constant EUR mn

1,886 1,837 1,802 1,686 1,798 1,524 1,508

Q4 includes DGF & 248 Bank Levy (EUR 250 mn after tax)

Q1'19 Q2 Q3 Q4 Q1'20 Q2 Q3 Q4

Attributable profit (Constant EUR mn) 1,498 1,095 280 2,377 203 -11,136 1,796 366

9 Santander Business Model & Strategy Our focus on increasing customer loyalty via unique personal banking relationships...

Total customers Loyal customers Loyal / Active 148 mn (+2%) 22.8 mn (+6%) customers

Individuals (mn) Companies (k)

148 +6% +8% 30.8% 146 146 147 31.9% 144 145 1,938 141 142 1,794 139 19.8 20.9 Dec-19 Dec-20

Increased loyalty ratio in

Dec-18Mar-19 Jun Sep Dec Mar-20 Jun Sep Dec Dec-19 Dec-20 Dec-19 Dec-20 all 3 regions

Note: Year-on-year changes 10 Santander Business Model & Strategy … together with an acceleration in digital adoption…

42.4 mn (+15% YoY) Steady growth in digital customers: +5.5 mn in 2020 vs. Digital customers1 +4.8 mn in 2019

Strong engagement and digital sales:

44% in 2020 +25% YoY +27% YoY (36% in 2019) 3 4 2 # Accesses # Transactions Digital sales as % of total sales (online & mobile) (monetary & voluntary)

Digital customers: Strong mobile customer growth: 5.0 mn 6.3 mn 35.3 mn (+21% YoY) +6.1 mn YoY 5.2 mn 15.6 mn Mobile customers

(1) Every physical or legal person, that, being part of a commercial bank, has logged in its personal area of internet banking or mobile phone or both in the last 30 days (2) Percentage of new contracts executed through digital channels during the period 11 (3) Private accesses. Logins of bank’s customers on Santander internet banking or apps. ATM accesses by mobile are not included (4) Customer interaction through mobile or internet banking which resulted in a change of balance. ATM transactions are not included Santander Business Model & Strategy …and doing business in a more responsible and sustainable way…

Environmental: Social: building a Governance: doing supporting the more inclusive business the right green transition society way Helping customers go green Talented & diverse team A strong culture 86% EUR 33.8 bn EUR 6.9 bn AUM Top 101 in 6 23.7% women in Simple, Personal, Fair employees proud to work Green Finance Social Responsible geographies leadership positions for Santander since 2019 Investment Financially empowering people Taking ESG criteria into account Going green ourselves when determining remuneration EUR 469 mn credit 4.9 mn people2 EUR 1 bn green Carbon Neutral to microentrepreneurs since 2019 bond issued in own our in 2020 An independent, diverse Board (2nd since 2019) operations >60% Independent directors Supporting society Aligning to targets 40% women on Group Board 4.0 mn people 225 k scholarships Governance embedded to deliver on st 3 st 4 1 CCCA report 1 TCFD report helped since 2019 granted since 2019 ESG

(1) Top 10 company to work for (2) People financially empowered through Santander initiatives 12 (3) Collective Commitment to Climate Action (4) Task Force on Financial Climate Disclosure Santander Business Model & Strategy … improves operational excellence by helping to deliver resilient top line performance and increased cost savings Resilient revenue despite covid crisis… …with one of the best cost-to-income among peers1 Total income, constant EUR mn Cost-to-income, Peer data 9M’20, Santander FY2020

Peer 1 46%

47% 9 pp Peer 2 44.5 44.6 49% better than peer avg. Peer 3 54%

Peer 4 55%

Peer 5 55%

Peer 6 56% 2019 2020 Peer 7 61%

Peer 8 61%

Peer 9 65%

(1) Peers included are: BBVA, BNP Paribas, Citibank, Credit Agricole, HSBC, ING, Itaú, Scotiabank and Unicredit. Santander calculations 13 Santander Business Model & Strategy Our geographic and business diversification, coupled with our subsidiaries model…

Loans and advances to customers by country Loans and advances to customers by business Breakdown of total gross loans excluding reverse repos, % of operating areas Breakdown of total gross loans excluding reverse repos, Dec-20 Dec-20 Argentina, 1% Chile, 5% Other S. Am., 1% Other individuals, 9%

Brazil, 7% Spain, 22%

Mexico, 3% CIB, 13% Home mortgages, US, 10% 36%

SCF, 12% Corporates1, Other , 5% 12%

Poland, 3%

Portugal, 4% SMEs, 13% UK, 27% Consumer, 17%

Total gross loans excluding reverse repos: EUR 904 bn  RWAs: EUR 563 bn 87% of loan portfolio is Retail, 13% Wholesale

(1) Corporates and institutions 14 Santander Business Model & Strategy …is resilient throughout the cycle

Resilient profit generation throughout the cycle PPP/Loans well above most European peers1

Group pre-provision profit, EUR bn %, Peers Sep-20, Santander data Dec-20

Peer 1 3.4

2.5 25.5 25.6 26.2 24.4 23.9 23.6 23.7 23.6 23.0 22.8 22.6 Peer 2 2.1 19.9 17.7 14.8 Peer 3 1.9

11.4 Peer 4 1.8

Peer 5 1.6

2006 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Peer 6 1.2

(1) European peers include: BBVA, BNP Paribas, Credit Agricole, HSBC, ING and Unicredit. Santander calculations using publically available data. 15 Santander Business Model & Strategy Moreover, our results show long-term stable and predictable growth

Predictable results with the lowest volatility among peers coupled with growth in earnings

Quarterly reported EPS volatility1, 1999-Q3’20 672% 332%

118% 104%

84% 82% 70%

43% 41% 37%

12%

US IT CH CH FR FR US US NL US

3x 3x 1x 1x 7x 4x 8x 5x 2x 10x 5x

Net income increase 1999-2019

(1) Source: Bloomberg, with GAAP Criteria. Note: Standard deviation of the quarterly EPS starting from the first available data since Jan-99 16 Santander Business Model & Strategy Credit quality remains robust despite the pandemic. Cost of credit in line with expectations at 1.28% supported by improved coverage

Loan-loss provisions Credit quality ratios Constant EUR bn Dec-19 Dec-20

2.8 12.2 Cost of credit1 1.00% 1.28% +47% 2.7 YoY NPL ratio 3.32% 3.21% 3.1

3.6 Coverage 68% 76% ratio

Loan-loss 20.4bn 24.3bn reserves Q1'20 Q2 Q3 Q4 2020 (Constant EUR)

(1) Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months 17 Santander Business Model & Strategy Cost of credit of 1.28%, in line with guidance. Credit quality supported by volume increases and mitigation measures

Credit quality ratios NPL ratios by country

% % Q4 2019 Q4 2020 4.08% Spain 6.94 6.23 3.93% SCF 2.30 2.36 NPL ratio 3.73% UK 1.01 1.21 Poland 4.31 4.74 Portugal 4.83 3.89 3.32% US 2.20 2.04 3.25% 3.26% 3.21% 3.15% Mexico 2.19 2.81 Brazil 5.32 4.59 Chile 4.64 4.79 1 Argentina 3.39 2.11 2016 2017 2018 2019 Q1'20 Q2 Q3 Q4 Cost of credit ratios by country

% Q4 2019 Q4 2020 1.26% 1.27% 1.28% Cost of credit 1.18% 1.17% Spain 0.43 1.01 1.07% SCF 0.48 0.88 1.00% 1.00% UK 0.10 0.28 Poland 0.72 1.10 Portugal -0.02 0.51 USA 2.85 2.86 1 Mexico 2.49 3.03 2016 2017 2018 2019 Q1'20 Q2 Q3 Q4 Brazil 3.93 4.35 (1) Acquisition of Banco Popular in 2017 Chile 1.08 1.50 18 Argentina 5.09 5.93 Santander Business Model & Strategy Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), actively reinforced already strong LCR ratios following covid-19 crisis

Liquidity Balance Sheet

EUR bn, Dec-20 Liquidity Coverage Net Stable Funding 1,199 1,199 Ratio (LCR) Ratio (NSFR) Dec-201 Dec-19 Sep-20 Loans and Customer 2 advances to deposits Spain 175% 143% 118% customers 849 916 SCF 326% 248% 112% UK2 152% 145% 126% Securitisations and others Portugal 123% 134% 120% 44 M/LT debt issuances Financial assets 167 205 ST Funding Poland 187% 149% 145% Fixed assets & other 23 Equity and other liabilities 78 115 US 129% 133% 119% HQLAs3 Assets Liabilities Mexico 207% 133% 131% Brazil 167% 122% 115% EUR bn, Dec-20 HQLAs Level 1 241.4 Chile 155% 143% 119% HQLAs Level 2 9.5 Argentina 189% 196% 183%  Level 2A 5.2 Group 165% 147% 119%  Level 2B 4.3

Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances) (1) Provisional data 19 (2) Spain: Parent bank, UK: Ring-fenced bank (3) 12 month average, provisional data Santander Business Model & Strategy Stock of issuances shows diversification across instruments and entities

Debt outstanding by type Debt outstanding by issuer entity

EUR bn and %, Dec-20 EUR bn and %, Dec-20

Preference shares, Other; Sub debt; 8.9, 5% US, 7.6, 5% 6.7; 4% 13.8; 8% Brazil, 2.1, 1% Chile, 8.6, 5%

Senior, SCF; Senior non- 54.2, 32% 20.2; 12% preferred; San S.A., 78.7, 41.0; 25% 47%

UK, 43.5, Covered bonds, 26% 49.4, 30%

Note: preference shares also includes other AT1 instruments. 20 Santander Business Model & Strategy Conservative and decentralized liquidity and funding model

EUR 30 bn1 issued in public markets in 2020 Very manageable maturity profile

EUR bn, Dec-20 EUR bn, Dec-20

42.8 15.3

1.5 2 9.0 Spain 3.3 7.9 7.2 8.5 2.3

4.4 6.2 6.9 6.5 SCF 2.5 3.9 2.1 1.0

1.6 3.8 3.5 2021 2022 2023 2024 2025 2026+ 11.8 11.5 2.5 3.5 0.5 1.3 0.3 UK 6.0 8.0 3.3 3.2 2.9 3.4 2.1 1.4 2 Spain UK SCF USA Other 2021 2022 2023 2024 2025 2026+

 Other public market issuances includes a USD 1.75 bn issuance Brazil 1.2 0.8 0.1 0.0 0.0 0.0 in Mexico, and other issuances in Brazil, Chile and Poland 2021 2022 2023 2024 2025 2026+

USA 0.4 0.9 2.1 0.8 1.7 1.6

20212021 2022 2023 2024 2025 2026+2026+ 21 (1) Data include public issuances from all units with period-average exchange rates. Excludes securitisations (2) Includes Banco Santander S.A. and Santander International Products PLC Note: preference shares also includes other AT1 instruments. Index 1 2 3 4 5

Spanish Santander Santander Mortgage Appendix macroeconomic Business Spain – Main Covered environment Model & figures Bonds – 2020 Strategy

22 Santander Spain Santander remains committed to maintaining its leadership by supporting individual customers, SMEs and corporates, especially to overcome the covid-19 crisis

KEY DATA 2020 YoY Var. STRATEGIC PRIORITIES

Customer loans1 EUR 200.7 bn +4.9% Contribute to the economic recovery supporting our Customer funds2 EUR 320.9 bn +3.9% self-employed, SME and corporate customers Underlying att. Profit EUR 517 mn -67.4% Continue growing SME, corporate and Wealth segments with Underlying RoTE 3.3% -7.2 pp strong focus on high value-added products Efficiency ratio 53.2% -38 bps

Loans market share3 17.5% -1 bps Increase customerrevenue and continue costoptimization

Deposits market share3 18.3% -59 bps Accelerate the Bank´s digital transformation towards a data Loyal customers 2.6 mn +4.1% driven company

Digital customers 5.2 mn +10.9% Focus on doubtful assets to mitigate potential impacts from Branches 2,939 -9.1% the pandemic and leverage ourcapitalefficientmodel

Employees 26,961 -2.4%

(1) Excluding reverse repos. (2) Excluding repos. 23 (3) As at September 2020. Includes: Santander España (public criteria) + Openbank + Hub + SC España. Other Resident sectors in Deposits. Santander Spain Spain

KEY DATA 2020 % 2019 P&L* Q4'20 % Q3'20 2020 % 2019 Loyal / active customers (%) 34 +2 pp NII 1,067 3.2 3,957 1.0 Net fee income 573 2.0 2,314 -6.7 Digital customers (mn) 5.2 +11% Total income 1,632 -9.3 6,782 -9.6 NPL ratio (%) 6.23 -71 bps Operating expenses -873 -2.2 -3,607 -10.3 Cost of credit (%) 1.01 +58 bps Net operating income 759 -16.4 3,175 -8.9 LLPs -611 36.1 -2,001 133.7 Efficiency ratio (%) 53.2 -38 bps Underlying PBT 20 -94.4 715 -67.1 Underlying RoTE (%) 3.3 -7.2 pp Underlying att. profit 20 -91.9 517 -67.4 (*) EUR mn VOLUMES1

Customer loans Customer deposits Loan growth (+5% YoY) mainly in SMEs and Corporates (EUR bn) (EUR bn) Our digital channels were redesigned to meet customers’ 204 199 201 248 250 251 191 192 240 needs, improving customer experience and NPS position 235 Q4 NII and fee income improvement, with reinforced provisions coverage. DGF impact FY20 profit impacted by lower non-customer revenue and D-19 M-20 J S D D-19 M-20 J S D higher LLPs partially offset by strong cost reduction (-10%) (1) Customer loans excluding reverse repos. Customer deposits excluding repos 24 Index 1 2 3 4 5

Spanish Santander Santander Mortgage Appendix macroeconomic Business Spain – Main Covered environment Model & figures Bonds – 2020 Strategy

25 Mortgage covered bonds (Banco Santander, S.A.) Banco Santander S.A. ratings

Moody's S&P Fitch Direction Date last Direction Direction Date last Rating Rating Date last change Rating last change last change last change change change Covered Bonds Aa1 03/12/2019 - - - - AA 15/01/2019 ↑ Senior Debt (P)A2 17/04/2018 ↑ A 06/04/2018 ↑ A 17/07/2018 ↑ Senior Non-preferred Baa1 27/09/2017 ↑ A- 06/04/2018 ↑ A- 09/02/2017 Initial Subordinated (P)Baa2 04/03/2014 ↑ BBB+ 06/04/2018 ↑ BBB 27/03/2020 ↓ AT1 Ba1 17/07/2014 ↑ - - - BB+ 27/03/2020 ↑ Short Term Debt P-1 17/04/2018 ↑ A-1 06/04/2018 ↑ F2 11/06/2012 ↓

26 Mortgage covered bonds (Banco Santander, S.A.) Mortgage Covered Bonds are direct obligations of Banco Santander, S.A. collateralized by its mortgage portfolio

✓ Banco Santander S.A.’s mortgage portfolio is a low risk profile business, focused on residential and first home financing…

✓ …well diversified by geography and maturity with an adequate LTV

✓ Mortgage covered bonds (CH) show a high level of over-collateralization…

✓ …and have a three notch rating uplift in Banco Santander S.A.: rated Aa1 by Moody’s and AA by Fitch

✓ CH represent 30% of Grupo Santander’s total wholesale issuances as of Dec-20. Santander is one of the top issuers in Spain

Santander is a relevant player in the Spanish mortgage business (market share ~20%1), a key commercial product in our customer-focused business model

(1) Estimation. Last data available of Spanish mortgage covered bonds outstanding is for 2019 (EUR 220,767 mn). Please see appendix. 27 Mortgage covered bonds (Banco Santander, S.A): Main figures

Collateral description Mortgage covered bonds 1 (cover pool – 100% mortgage loans) 2 description

EUR million EUR million

74,998 Outstanding

56,346 23,623 In the market

Retained 20,786

Total cover pool Eligible Portfolio December 2020 December 2020 December 2020

⚫ Average loan size (€ thousand) 99

⚫ Number of loans (thousand) 760 Collateralization 317% ⚫ Loan seasoning (years) 7.4 rate1 ⚫ Remaining loan maturity (years) 14.4

⚫ Average cover pool LTV (%) 71 Maximum issuance capacity: EUR 45,077 mn ⚫ Eligible pool LTV (%) 46 (80% eligible cover pool portfolio) ⚫ Eligible portfolio NPL ratio (%) 2.45

⚫ Interest rate type 18% fixed; 82% FRN

(1) Only as a percentage of mortgage covered bonds (CH) in markets. Considering 100% CH, 169% 28 Mortgage covered bonds (Banco Santander, S.A): 1) Description of collateral (1/4) Low risk portfolio focused on residential and first home financing…

Cover pool portfolio: EUR 75 bn

December 2020

Segments Guarantees

Developer 4% 3% Land activities1 2 Second home Other 21% Other 30% 1% business activities

75% Residential3 Households 66%

99% First home2

(1) Developer mortgage product 29 (2) Estimate from mortgages to individuals (3) Finished and under construction buildings for residential purposes Mortgage covered bonds (Banco Santander S.A.): 1) Description of collateral (2/4) ... concentrated in urban areas with lower unemployment rates …

1 % December 2020 Regions Back-book Castile-La Mancha, Murcia Madrid 26.07 18.00 Madrid 17.06 6.83 Andalusia 4.76 Canary Islands 4.41 63% Castile and Leon 4.09 37% Basque Country 3.71 Balearic Islands 3.39 Castile La Mancha 2.53 Valencian Catalonia 2.13 Community Galicia Murcia 1.81 Castile and León Cantabria 1.37 Aragon, , Basque Country Extremadura 1.37 Asturias 1.34 Regions with unemployment rates < Spain’s average Navarre 0.76 Regions with unemployment rates > Spain’s average La Rioja 0.36

(1) Andalusia includes and 30 Mortgage covered bonds (Banco Santander S.A.): 1) Description of collateral (3/4) … with the 35% of the residual life below 10 years…

Residual life by buckets Loan seasoning

48,926

55%

12,901 12% 15% 5,369 10% 9% 947 1,731 2,421 2,703

0 - 1 Y 1 - 2 Y 2 - 3 Y 3 - 4 Y 4 - 5 Y 5 - 10 Y 10+ Y Up to ≥ 12 - ≤ 24 ≥ 24 - ≤ 36 ≥ 36 - ≤ 60 ≥ 60 months 12months months months months

31 Mortgage covered bonds (Banco Santander S.A.): 1) Description of collateral (4/4) ... and with an adequate loan-to-value

Cover pool portfolio Eligible portfolio1

December 2020 December 2020 71% = LTV 46% = LTV (weighted average) (weighted average)

100 100 100 86 Cumulative (%) Cumulative (%) 76 63 Outstanding by LTV Outstanding by interval (%) LTV interval (%)

41 34 36 29 24 23 24 10 14 12 29 10 12 -

0-20% 20-40% 40-60% 60-80% >80% 0-20% 20-40% 40-60% 60-80% >80%

(1) Total cover pool portfolio excluding high LTV loans (residential >80% and commercial >60%, without additional guarantees); loans w/o appraised value and non-euro loans; 100% 32 developer loans; and others Mortgage covered bonds: 2) Description of bonds Average maturity 9 years due to low issuance activity in recent years

Distribution by maturity Maturity profile

% total outstanding, December 2020 December 2020

2021 7,300 7,700 2022 7,350

1,125 2023

4,000 10,784 6,000 >2026 3,000 2024 18,134 1,425 1,000 1,011 3,700 3,250 - 2,000 2,239 2,475 2025 1,300 1,125 3,900 2021 2022 2023 2024 2025 2026 >2026 2026 In the market Retained

 Average maturity1: 9 years  100% issued in euros

(1) Calculation method has been changed. 33 Index 1 2 3 4 5

Spanish Santander Santander Mortgage Appendix macroeconomic Business Spain – Main Covered environment Model & figures Bonds – 2020 Strategy

34 Appendix – Spanish CH market: Volumes

Spain. Covered bonds outstanding (EUR mn)

35 Appendix – Spanish CH market: Volumes

Spain. Covered bonds issuance (EUR mn)

36 Thank you

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