INFORMATION MEMORANDUM DATED 9 JULY 2009 ...

The Mortgage financing business decreased 55 per cent. over 2007 and represents all activities related
to financing backed by a security over property. This business is carried out residually in two
countries: Spain and Poland. This activity represented 3 per cent. of the total for 2008, at €723.9
million.
Other businesses include operations that do not fit into any of the above categories, such as operations
with companies (corporate leasing and real estate renting). This activity represented 2 per cent. of
total activity for 2008.
At the end of 2008, the balance of customer funds reached €32,766.3 million, representing a decrease
of 1.7 per cent. compared to the €33,318.8 million recorded in the previous financial year, excluding
subordinated debt issued.
Consumer Group holds banking licenses in the majority of the countries in which it is present. One of
its main sources of funding is customer deposit through Germany, Spain, Italy and Scandinavia.
Customer deposits (demand deposits and fixed-term deposits) ended the year with a balance of
€18,053.5 million, an increase of €4,184 million from the previous financial year 1 . Out of this total,
71.8 per cent. corresponds to Germany, 25.8 per cent. corresponds to Spain (the majority through
Openbank) and Portugal, and 1.89 per cent. corresponds to Italy.
Marketable debt securities include several outstanding bonds from securitisations in Spain, Germany
and Italy, with the inclusion of Cédulas Hipotecarias issued by Santander Consumer Finance S.A. in
March 2006 for a nominal amount of €1,200 million, and the notes issued under the Programa de
Emisión de Pagarés with a limit of €10,000 million.
The following table summarises customer funds under management in 2008, as compared to the
previous financial year (the data does not include valuation adjustments nor subordinated debt):
Customer Funds under management
(millions of euros) 2008
financial
year
2007 financial
year
Variation
2008/2007
(%)
Customer deposits 18,053.5 13,869.5 30%
Marketable debt securities 14,712.8 19,449.3 -24%
Total client funds on balance
sheet
32,766,3 33,318.8 -2%
Main Markets in which the Issuer Competes
At year end 2008, the Issuer carried out its consumer financing business mainly in the Euro zone. The
Consumer Group separates geographic reporting into five operating areas, each one containing the
1 These figures include valuation adjustments (accrued interest).
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