CHALLENGER LIMITED — Interim / Quarterly Report 2022

Aug 15, 2022

Challenger Limited 2022 Preliminary Financial Appendix 4E

Under ASX Listing Rule 4.3A for the year ended 30 June 2022

Current period			1 July 2021 to 30 June 2022	1 July 2021 to 30 June 2022
Prior corresponding period (pcp)			1 July 2020 to 30 June 2021
	2022	2021	Change	Change
Results for announcement to the market	$m	$m	$m	%
Revenue from ordinary activities	1,860.7	2,769.8	(909.1)	(32.8)
Profit from ordinary activities after tax attributable to
equity holders	253.7	592.3	(338.6)	(57.2)
Netprofit for theperiod attributable to equityholders1	253.7	592.3	(338.6)	(57.2)

1. Share of profit of associates is $38.0 million (pcp: $35.2 million).

Statutory net profit after tax, which includes investment experience, being the valuation movements on assets and liabilities supporting the Life business, was a profit of $253.7 million (30 June 2021: profit of $592.3 million), down $338.6 million. The decrease in statutory profit was primarily due to investment markets impacting the fair value of Challenger Life Company Limited’s (CLC’s) assets and liabilities. Investment markets were significantly stronger last year.

Normalised net profit after tax, management’s preferred measure of profit, for the year ended 30 June 2022 increased by 15.4% to $321.5 million (pcp: $278.5 million). Refer to Note 3 Segment information in the 2022 Annual Report for a definition of normalised net profit after tax and the reconciliation to the statutory profit for the period.

	2022	2021	Change
Dividend information	cents	cents	%
Interim per ordinary share – 100% franked (2022 interim: 100% franked)	11.5	9.5	21.1
Final per ordinary share – 100% franked (2021 final: 100% franked)	11.5	10.5	9.5
Total dividendsper share for theyear	23.0	20.0	15.0

The Challenger Limited Board will continue the Dividend Reinvestment Plan (DRP). The dividend will be paid on 21 September 2022. For any reinvestment of this dividend, the Board has determined that new shares will be issued to fulfil DRP requirements. The new shares will not be issued at a discount to the prevailing Challenger share price.

Dividend information
Ex-dividend date	29 August 2022
Record date	30 August 2022
Final Dividend Reinvestment Plan election date	31 August 2022
Payment date	21 September 2022

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Challenger Limited 2022 Preliminary Financial Appendix 4E

	30 June	30 June
	2022	2021
Net tangible assetsper security	$m	$m
Net assets	3,988.3	3,825.8
Less:
- Right-of-use lease asset	29.0	34.7
- Goodwill	579.9	579.9
- Intangible assets	7.3	9.2
Net tangible assets	3,372.1	3,202.0
Ordinary shares (number - million)	680.0	672.6
Net tangible assetsper security ($)	4.96	4.76

Other disclosure requirements

Additional ASX Appendix 4E (Listing Rule 4.3A) disclosures can be found in the 2022 Annual Report lodged separately from this document. This document should be read in conjunction with the 2022 Annual Report, 2022 Annual Review and any public announcements made in the period by the group in accordance with the continuous disclosure requirements of the Corporations Act 2001 and ASX Listing Rules.

This preliminary financial report under ASX Listing Rule 4.3A covers Challenger Limited and its controlled entities, and is based on the separately lodged consolidated financial statements and financial report which have been audited by Ernst & Young.

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Challenger Limited 2022 Preliminary Financial Appendix 4E

Cross reference index for other disclosures included in 2022 Annual
Report	Page/Reference
Operating and financial review	8
Statement of comprehensive income and notes	80
Statement of financial position and notes	81
Statement of changes in equity	82
Statement of cash flows and notes	83
Earnings per share	121
Acquisitions and disposals of subsidiaries	135
Details of associates	137
Other significant information	18
Foreign entities	International Financial Reporting Standards
Auditor’s Report	151

Authorisation

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Linda Matthews Company Secretary 16 August 2022

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