Diapositive 1

1
Santander Consumer Finance Company profile

August 2008
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Purpose and methodology
This company profile is an example of Global
Insights ability to collect and structure
information on companies and markets. It was
written in August 2008. It is based on secondary
research (annual reports, newspapers) backed by
Global Insights expertise on European consumer
finance markets. The purpose of this report is
to draw a marketing profile of the company,
i.e. a/ to describe and analyze its marketing
mix strategy - breadth and depth of the product
spectrum - nature and reach of the distribution
channels - product characteristics - branding
b/ to quantify key aspects of its activity -
breakdown of the loan portfolio by product type
- breakdown of the loan portfolio by sales
channels - market share Global Insight has the
ability to carry out this analysis both at
corporate and at country level.
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Summary
I. The Santander Consumer Finance Group
3 1.1 Overview 4 1
.2 International presence 5 1.3
Geographical breakdown of the loan
portfolio 6 1.4 Product range 7 1.5
Breakdown of the loan portfolio by product
type 8 1.6 Breakdown of the loan portfolio
by sales channel 9 1.7 Market
share 10 II. Santander Consumer Finance
in Germany
11 2.1 Overview
12 2.2 Product spectrum 13 2.3
Product characteristics 16 2.3.1 Car loans
and Personal loans 16 2.3.2 Revolving
loans, Insurance products 17 2.4
Distribution 18 2.4.1 Description of the
distribution networks 18 2.4.2 Breakdown
of the loan portfolio by sales channel 19
2.5 Branding strategy 20 2.6 Main
competitors 21
4
1.1 Santander Consumer Finance Group

• Founded in 1972 (as Bansafina) and further
  developed in 1978 (as Hispamer).
• Management Committee
• Magda Salarich Fernández de Valderrama - Chief
  Executive Officer (CEO)
• Pedro Guijarro - Business Area I
• Javier San Félix - Business Area II
• Andreas Finkenberg - Business Area Germany
• Tom Dundon - Business Area U.S.A.
• Key figures
• Net Interest Income for 2007 1 350 Mio.
• Consolidated profit for 2007 511 Mio. (-30.8
  in a year)
• Employees 7.200
• Customers 9.9 Mio.
• Parent company Banco Santander, S.A. (Spain)

Overview
Total outstanding loans (Mio)
Source Global Insight, Annual Reports of
Santander Consumer Finance
5
1.2 International presence

Main developments outside Spain
Chile (2007-2008) Joint-venture with SKBergé
Financimiento.
USA (2006) Acquisition of Drive Financial.
Mexico (2007) Acquisition of Alcanza.
THE AMERICAS
Poland (2004) Acquisition of Polskie Towarzystowo
Finansowe
Russia (2006) Acquisition of Extrobank.
Sweden (2004) Acquisition of Elcon.
France (2007-2008) Joint-venture with Banque
Accord.
Norway (2005) Acquisition of Bankia Bank.
Finland (2008) Acquisition of GE Money Bank
Finland.
Portugal (2006) Acquisition of Interbanco.
Hungary (1998)
United Kingdom (2005) Brownfield development
UK, Ireland (2008) Acquisition of GE Money Bank
credit card business.
EASTERN EUROPE
Czech Republic (1997)
Italy (2004) Acquisition of Finconsumo.
Austria (2008) Acquisition of GE Money Bank
Austria.
The Netherlands (2004) Acquisition of Abfin.
Austria (2001)
WESTERN EUROPE
Germany (2008) Acquisition of GE Money Bank
Germany.
Germany (1987) Acquisition of CC Bank.
Germany (2002) Acquisition of AKB.
Before 2002
2002-2006
Since 2007
Source Global Insight, Annual Reports of
Santander Consumer Finance
6
1.3 Geographical breakdown of the loan portfolio
Global Insights assessment of the Groups
outstanding loans breakdown by geographical
area (at 31.12.2007)
Total outstanding loans (at 31.12.2007) 45 196
Mio.
Since 2002, Santander Consumer Finance implements
a strong geographical expansion strategy. This is
carried out mainly through acquisitions. In 2008
as part of an asset swap deal, the group will
take over GE Moneys businesses in Germany,
Finland and Austria and its card and auto
financing business in the UK. This move will have
a strong impact on the geographical balance of
Santander Consumer Finances loan portfolio. The
acquired GE Money companies have 9bn assets.
Hence, the weight of Spain and Portugal in the
loan portfolio will shrink to approximately 25.
On the other hand, the German speaking markets
could well represent 45 or more of total
outstanding loans. Since 2006, the Group has
undertaken selected investments in emerging
countries (Russia, Chile, Mexico). As of today,
this is far from balancing the weight of mature
Western-European markets in the loan portfolio.
Source Global Insight, Annual Reports of
Santander Consumer Finance
7
1.4 Product range
Range of BtoC products across some of the Groups
locations
Spain
Germany
Italy
Portugal
Poland
Hungary
The UK
Car finance
Car finance
Car finance
Car finance
Car finance
Car finance
Car finance
Personal loans
Personal loans
Personal loans
Personal loans
Personal loans
Personal loans
Revolving loans
Revolving loans
Revolving loans
Revolving loans
Revolving loans
Mortgage
Mortgage
Mortgage
Retail banking
Retail banking
Retail banking
P C insurance
P C insurance
P C insurance
P C insurance
Accident, death, health insur.
Accident, death, health insur.
Savings Investments
Savings Investments
Savings Investments
Life Insurance Retiremt savings
Life Insurance Retiremt savings
As this chart indicates, car finance (and
personal loans) are at the core of Santander
Consumer Finances portfolio. They are leveraged
as Trojan horses to build up the customer base
when the Group settles in a new country. Once the
customer base I set up (e.g. in Spain, Germany,
where the company has years of presence), the
product portfolio diversifies to other types of
loans and to financial services with higher
margins (insurance, savings, investments).
Source Global Insight, Santander Consumer Bank
website
8
1.5 Breakdown of the loan portfolio by product
type
Global Insights assessment of the Groups
outstanding loans breakdown by type of product
(at 31.12.2007)
Total outstanding loans (at 31.12.2007) 45 196
Mio.
Car finance is by far Santander Consumer
Finances main business line. It is mainly geared
towards new vehicles financing which account for
approximately 60 of all car loans. (However, in
Germany, the UK, and Norway, used vehicles form
the major part of the business). This of course
means that the company is exposed to the ebbs and
flows of the new car market. Product
diversification aims at mitigating this kind of
risk. In the first quarter of 2008, the most
profitable products (cards and direct lending)
accounted for 33 of total new business.
Source Global Insight, Annual Reports of
Santander Consumer Finance
9
1.6 Breakdown of the loan portfolio by sales
channel
Global Insights assessment of the Groups
outstanding loans breakdown by sales channels
(at 31.12.2007)
Total outstanding loans (at 31.12.2007) 45 196
Mio.
Indirect sales channels (car dealers and other
points of sale) account for at least three
quarters of the groups outstanding loans. This
is a result of the product spectrum of the
company. Car loans are mainly channeled through
car dealers. (In Germany alone, the company works
together with more than 23.000 dealers). Besides,
the company also works together with numerous
points of sales for the distribution of credit
cards and personal loans (in the form of POS
loans). In Spain, the number of affiliated
outlets for consumer and card finance is over
40.000. In Germany, it is close to 14.000.
Source Global Insight, Annual Reports of
Santander Consumer Finance
10
1.7 Market share
Global Insights assessment of the Groups market
share in 2007 as a proportion of total consumer
loans outstanding

• Overall, the company has its strongest positions
  in Spain (its home market), as well as in Poland,
  Norway and the Czech Republic. Its weight on the
  German market will be further enhanced by the
  integration of GE Money Bank. In the car finance
  industry more specifically, Santander Consumer
  Finances positions are very strong
• 16 to 20 market share in Spain (market leader)
• 8 to 12 market share in Germany
• 10 to 15 market share in Poland

Source Global Insight, Annual Reports of
Santander Consumer Finance
11
2. Santander Consumer Bank AGThe Groups German
subsidiary
12
2.1 Santander Consumer Finance local subsidiary

• Santander Consumer Bank AG
• Founded in 1957, taken over by Santander in
  1987, renamed Santander Consumer Bank AG in 2003.
• Managing director Andreas Finkenberg
• Outstanding loans to customers 15 254 Mio (at
  31.12.2007), i.e. 33 of the Groups outstanding
  loans.
• Profits, end 2007 385 Mio. (4.6
  year-on-year), i.e. 28 of the Groups profits.
• 1, 200 employees
• 3.8 million clients

Organization chart
100
German subsidiary of Santander Consumer Finance
100
100
Private and corporate leasing in Germany,
Austria, Czech Republic and Hungary
Online distribution of car finance products
Austrian, Dutch, Hungarian and Czech branches of
Santander Consumer Finance
Source Global Insight, Santander Consumer Bank
website, Annual Reports
13
2.2 Product spectrum
B2C product range of Santander Consumer Bank
CONSUMER FINANCE
INSURANCE
SAVINGS, INVESTMENTS
RETAIL BANKING
Revolving loans
Retail banking
Accident, Death, Health insurance
Life Insurance Retirement savings
Car finance

• Stand-alone Products
• Verfügungskonto
• ModernisierungsCredit
• Credit Cards
• AutoDispoPlus
• Santander Visa-Karte
• Santander SunnyCard
• Harley-Davidson Visa Chrome Card
• Hein Gericke Visa Card
• 1Plus Card
• HymerCard-Visa
• D.A.S.-Visa-Karte
• Zürich Visa-Karte
• CleverCard

• Current Accounts
• Saving Accounts (x2)
• Debit Cards

• Complete
• CompleteEasy
• Available on the www.carcredit.de
• Classic Credit
• Budget Credit
• Available via car dealers
• Budgetfinanzierung
• Leichtkauffinanzierung
• Repararturfinanzierung
• Autoflex
• Standard Finanzierung
• Leasing (Complete and CompleteEasy)

• Payment protection insurance
• Working inability cover
• Accident insurance
• Death insurance
• Complementary health insurance
• Travel insurance

• Retirement savings
• Life insurance
• Complementary state-regulated pension

Investment products

• Bonds
• Investment funds, or accounts
• BestInvest (1 account and 3 funds)
• Savings account
• Home savings account
• Santander retirement funds (x3)
• Santander mutual stock funds (x5)
• Other investment funds (x2)

P C insurance

• Auto Insurance
• Complete
• CompleteEasy
• ProtectPlus (payment protection insurance)
• Santander Safe (new car replacement insurance)
• Home Insurance
• Content coverage
• Building coverage
• Legal and third-party Liability Insurance
• Legal insurance
• Civil liability

Mortgage

• Mortgage
• Unsecured home loans

Personal loan
BestCredit
POS loans
Personal loans (free-purpose) 6 month-deferred
payment
Source Global Insight, Santander Consumer Bank
website
14
2.2 Product spectrum
Depth of the product range (number of different
products in each category)
This chart enables us to see the product
categories on which Santander Consumer Bank puts
a special emphasis. The company offers 13
different credit cards this is the product
family that has the largest spectrum. Car finance
ranks second with 10 different products. On the
other hand, personal loans and POS loans have a
tight product range. The depth of the product
range is not correlated to the volume of business
generated by each product. Credit card generate
less outstanding loans than each of the three
other types of consumer loans (See next slide).
Source Global Insight, Santander Consumer Bank
website
15
2.2 Product spectrum
Global Insights assessment of the Groups
outstanding loans breakdown by type of product
(at 31.12.2007)

Total outstanding loans (at 31.12.2007) 15 254
Mio.

• Car finance is by far Santander Consumer Banks
  main business line. It is mainly geared towards
  second hand cars which account for approximately
  60 of all car loans. The assessed market share
  of the company on the German market is
• 8 to 10 in car finance
• less than 2 in credit cards
• Between 5 and 10 in the two other business
  lines taken together

Source Global Insight, Santander Consumer Bank
website, Annual Reports
16
2.3 Product characteristics 2.3.1 Car loans and
personal loans
Car loans product characteristics
Interest Rate
Amount
Duration
Specific characteristics
Classic Credit

• Minimum rate 4.90 APR
• Maximum rate 6.89 APR

• Maximum amount 511, 291. 00
• Minimum amount 511. 29

• Minimum duration 12 months
• Maximum duration 96 months

• Product displayed on the carcredit.de website

Budget Credit

• Minimum rate 4.90 APR
• Maximum rate 6.89 APR

• Minimum duration 12 months
• Maximum duration 60 months

• Product displayed on the carcredit.de website

• Maximum amount 511, 291. 00
• Minimum amount 511. 29
• Minimum balloon payment 33 of borrowed amount
• Maximum balloon payment 60 of borrowed amount

Personal loans product characteristics
BestCredit

• Minimum rate 5.89 APR for borrowed amount up
  to 3, 000
• Maximum rate 7.89 for borrowed amount over
  3, 000

• Maximum amount 59, 999.99
• Minimum amount 750

• Minimum duration 12 months
• Maximum duration 84 months

• Product only available through internet

Source Global Insight, Santander Consumer Bank
website
17
2.3 Product characteristics 2.3.2 Revolving
loans, Insurance products
Revolving loans product characteristics
Interest Rate
Amount
Repayment
Specific characteristics
Verfügungs Konto

• Annual rate 9.85 APR

• Maximum amount 30, 000
• Minimum amount 3, 000

• Minimum repayment 2.5 of the balance each
  month (min. 100)

Moderniesie- rungs Konto

• Revolving loan dedicated to home-improvement
  expenses (need to present an extract from the
  cadastral register when applying)

• Maximum amount 50, 000
• Minimum amount 10, 000

• Annual rate 5.98 APR

• Minimum repayment 1.35 of the balance each
  month (min. 150)

AutoDispo-Plus

• Available at car dealers
• No interest rate for the first 6 months
• Co-branded card with distributing dealers

• Minimum repayment 2.5 of the balance each
  month (min. 50)

• Maximum amount 5, 000

• Displayed base rate 8.99 APR

Characteristics of insurance products
Triggering events
Amounts covered
Premiums
Specific characteristics
Home content insurance
The insurance contract can optionally cover
bicycles, damages occurred as a consequence of
acts of God (e.g. earthquakes).
Monthly premiums of 6, for 50 000 insured goods
in a 70m2 apartment.
Replacement at purchase value

• Fire, storm, explosion, hail
• Water pipe
• Robbery
• Vandalism
• Goods are also insured if located in the ceiling
  and garage.

Car insurance Vollkaso

• Civil liability
• Damage inflicted to the vehicle through external
  events (fire, explosion storm, robbery, etc.)
• Damage inflicted to the vehicle by the owner

• Insurance premiums are bundled with the loan
  repayment

• Civil liability up to 8Mio per victim
• Replacement at purchase value during 12 months

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2.4 Distribution strategy2.4.1 Description of
the different distribution networks
local branches
Direct distribution (excluding on-line
distribution)

• Number of local branches
• 95 dedicated to private customer services
  against 85 in 2006.
• 9 branches dedicated to vehicles dealers
• 11 branches dedicated to other corporate clients
• The number of branches will double thanks to the
  acquisition of GE Money in Germany.

Car finance
Personal loan
Revolving loans
On-line distribution

• The company has set up a website especially
  dedicated to car finance www.carcredit.de
• Customers can calculate the rate online
• Customers can fill in the subscription form and
  send it online

• Customers can calculate the rate online
• Customers can fill in the subscription form but
  have to print it and send it per post

• Customers can calculate the rate online
• Customers can fill in the subscription form but
  have to print it and send it per post

Car retail
Other Outlets
POS loans

• Number of car dealers
• 23, 300.

• Number of retailers
• 13, 700.

• Santander Consumer Bank has set up two specific
  website to extend car loans to private customers
• on www.carcredit.de, customers can compute the
  rates for each car loans.
• on www.autoboerse.de/, customers can look for
  buyers or sellers of second-hand cars. The
  website is linked to CarCredit.de as far as car
  financing is concerned. A similar strategy is
  being implemented by the German savings banks
  through their website www.gebrauchtwagen.de
  dedicated to peer-to-peer car sales.

Source Global Insight, Santander Consumer Bank
website, Annual Reports
19
2.4 Distribution strategy2.4.2 Breakdown of the
loan portfolio by sales channel
Global Insights assessment of the Groups
outstanding loans breakdown by distribution
channel (at 31.12.2007)

Total outstanding loans (at 31.12.2007) 15 254
Mio.
Indirect sales channels (car dealers and other
points of sale) account for more than 80 of the
companys outstanding loans. Santander Consumer
Bank has partnership agreements with more than
23.000 car dealers and more than 13.000
retailers. On the other hand, the company has a
proprietary network of 95 branches. The network
has been extended in the past years (10 new
branches were opened in 2007) and will double in
size thanks to the merger with GE Money Bank.
With 190 branches, the company will then have a
proprietary distribution channel twice as big as
its direct competitors (e.g. Norisbank).
Source Global Insight, Santander Consumer Bank
website, Annual Reports
20
2.5 Branding strategy
Double-branded products (product name distinct
from the companys brand)

• Santander Consumer Banks devotes significant
  efforts to the branding of its loans. A small
  number of loans (6) have a distinctive naming
  which acts as a brand alongside the corporate
  brand. The naming is designed to reflect the main
  benefits of the loan. For instance
• Among credit cards SunnyCard, 1plus (credit
  card for travelers), Clever (credit card with
  no interests in the first six months)
• Among car loans AutoFlex (Variable car loan),
  ProtectPlus (Car loan including a payment
  protection insurance).
• Among personal loans BestCredit
• The most heavily leveraged brand is CarCredit,
  i.e. the website entirely dedicated to car finance

Umbrella brands (same brand for different type of
products)

• On the other hand, 12 loans (i.e. more than half
  of the banks consumer loan portfolio) has no
  distinctive branding. Their name is a mere
  description of their purpose and or
  characteristics. For instance
• Among personal loans Credit for home
  renovation
• Among car loans Loan for car repairs,
  Standard Loan, Complete Loan
• Among POS loans Loan with fixed installments

Co-Branding (for credit cards)

• Santander Consumer Bank is active in the field of
  co-branding, through the following products
• D.A.S. Visa Card. D.A.S is a leader for legal
  liability insurance in Germany. This card is
  exclusively offered to people holding a legal
  liability
• insurance from D.A.S.
• Zürich Visa Card. Zürich is a Swiss Insurance
  company.
• HymerCard Visa
• Hymer is a motor home manufacture. Owners of a
  Hymer trailer or motorhome can get this card
  without any annual fee.
• Hein Gericke Visa Card. Hein Gericke is a
  motorcycle equipment retailer.
• Harley Davidson Visa Chrome Card
• AutoDispoPlus. Co-branded card with a car dealer

Source Global Insight, Santander Consumer Bank
website, Annual Reports
21
2.6 Main competitors
Product range
Product depth
Distribution
Size
Santander Consumer Bank AG

• Personal loan, car finance, revolving loans,
  home-related loans
• Car insurance, home and content insurance
• Payment protection insurance, death insurance,
  working inability insurance
• Retirement savings and investment products
• Current and saving accounts, internet banking

• Number of car finance products 8
• Number of personal loans 1
• Number of revolving products 12

• Number of branches 100
• Number of partner car dealers 23, 300
• Number of partner retailers 13, 700

• Number of employees 1, 200
• Net profit 385 Mio.

• Number of car finance products 0
• Number of personal loans 1
• Number of revolving products 8

• Number of branches 340

• Number of employees 6, 800
• Net profit 643 Mio.

• Personal loan, revolving loans, home-related
  loans.
• death insurance, accident insurance, working
  inability insurance
• Retirement savings, investment products.
• Current and saving accounts, internet banking

Citibank
Volkswagen Financial Services Bank

• Number of car finance products 9
• Number of personal loans 1
• Number of revolving products 2

• Number of branches 340
• Number of car dealers 2 500

• Personal loan, revolving loans, home-related
  loans, car finance
• Car insurance and car-related insurance (payment
  protection, legal liability)
• Investment products
• Current and saving accounts, internet banking

• Number of employees 3, 856
• One million new private indirect car financing
  contracts
• Outstanding amount of non-vehicle credit 504
  Mio.

Source Global Insight, Santander Consumer Bank
website, Annual Reports