CHALLENGER LIMITED — Notice of Dividend Amount 2021

Feb 8, 2021

Notification of dividend / distribution

==> picture [21 x 22] intentionally omitted <==

Update Summary

Entity name

CHALLENGER LIMITED

Security on which the Distribution will be paid

CGFPC - CAP NOTE 3-BBSW+4.60% PERP NON-CUM RED T-05-26

Announcement Type

Update to previous announcement

Date of this announcement

Tuesday February 9, 2021

Reason for the Update

The Challenger Board has declared a fully franked 2021 interim dividend on Challengers ordinary shares, which necessitates a change to the franking rate on this distribution in accordance with the Challenger Capital Notes 3 terms. For more information, please refer to the Prospectus dated 21 October 2020.

Additional Information

Distributions are discretionary and are subject to there being no Payment Conditions existing in respect of the relevant Distribution Payment Date. Capitalised terms used in this announcement but not defined have the meaning they are given in the Challenger Capital Notes 3 Prospectus dated 21 October 2020. The Prospectus and other information about Challenger Capital Notes 3 may be found at www.challenger.com.au/shareholder/debt-instruments/challenger-capital-note s-3-cgfpc.

The forward-looking statements, estimates and projections contained in this release are not representations as to future performance and nothing in this release should be relied upon as guarantees or representations of future performance.

Refer to below for full details of the announcement

Notification of dividend / distribution

1 / 5

Notification of dividend / distribution

==> picture [21 x 22] intentionally omitted <==

Announcement Details

Part 1 - Entity and announcement details

1.1 Name of +Entity

CHALLENGER LIMITED

1.2 Registered Number Type Registration Number ABN 85106842371

1.3 ASX issuer code

CGF

1.4 The announcement is

==> picture [8 x 9] intentionally omitted <==

Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

The Challenger Board has declared a fully franked 2021 interim dividend on Challengers ordinary shares, which necessitates a change to the franking rate on this distribution in accordance with the Challenger Capital Notes 3 terms. For more information, please refer to the Prospectus dated 21 October 2020.

1.4b Date of previous announcement(s) to this update

Friday November 27, 2020

1.5 Date of this announcement

Tuesday February 9, 2021

1.6 ASX +Security Code

CGFPC

ASX +Security Description

CAP NOTE 3-BBSW+4.60% PERP NON-CUM RED T-05-26

Part 2A - All dividends/distributions basic details

2A.1 Type of dividend/distribution Ordinary

2A.2 The Dividend/distribution:

relates to a period of one quarter

Notification of dividend / distribution

2 / 5

Notification of dividend / distribution

==> picture [21 x 22] intentionally omitted <==

2A.3 The dividend/distribution relates to the financial reporting or payment period ending ended/ending (date)

Wednesday February 24, 2021

2A.4 +Record Date

Wednesday February 17, 2021

2A.5 Ex Date

Tuesday February 16, 2021

2A.6 Payment Date

Thursday February 25, 2021

• 2A.7 Are any of the below approvals required for the dividend/distribution before business day 0 of the timetable? Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval

Another approval/condition external to the entity required before business day 0 of the timetable for the dividend/distribution.

==> picture [8 x 9] intentionally omitted <==

No

2A.8 Currency in which the dividend/distribution is made ("primary currency")

AUD - Australian Dollar

2A.9 Total dividend/distribution payment amount per Estimated or Actual? +security (in primary currency) for all Actual dividends/distributions notified in this form

AUD 0.81000000

2A.10 Does the entity have arrangements relating to the currency in which the dividend/distribution is paid to securityholders that it wishes to disclose to the market? No

2A.11 Does the entity have a securities plan for dividends/distributions on this +security? We do not have a securities plan for dividends/distributions on this security

2A.12 Does the +entity have tax component information apart from franking? No

Part 3A - Ordinary dividend/distribution

3A.1 Is the ordinary dividend/distribution estimated at 3A.1a Ordinary dividend/distribution estimated amount this time? per +security No

AUD

Notification of dividend / distribution

3 / 5

Notification of dividend / distribution

==> picture [21 x 22] intentionally omitted <==

3A.1b Ordinary Dividend/distribution amount per security AUD 0.81000000 3A.2 Is the ordinary dividend/distribution franked? 3A.2a Is the ordinary dividend/distribution fully franked? Yes Yes 3A.3 Percentage of ordinary dividend/distribution that is 3A.3a Applicable corporate tax rate for franking credit franked (%) 100.0000 % 30.0000 % 3A.4 Ordinary dividend/distribution franked amount per 3A.5 Percentage amount of dividend which is unfranked +security 0.0000 % AUD 0.81000000 3A.6 Ordinary dividend/distribution unfranked amount per +security excluding conduit foreign income amount AUD 0.00000000 3A.7 Ordinary dividend/distribution conduit foreign income amount per security AUD 0.00000000

Part 3D - Preference +security distribution rate details

3D.1 Start date of payment period 3D.2 End date of payment period Wednesday November 25, 2020 Wednesday February 24, 2021 3D.3 Date dividend/distribution rate is set (optional) Wednesday November 25, 2020

3D.4 Describe how the date that dividend/distribution rate is set is determined First business day of the Distribution Period. For more information, please refer to the Prospectus dated 21 October 2020. 3D.5 Number of days in the dividend/distribution period 92 3D.6 Dividend/distribution base rate (pa) 0.0185 % 3D.7 Comments on how dividend/distribution base rate is set 3 month Bank Bill rate on first Business Day of the Distribution Period. For more information, please refer to the Prospectus dated 21 October 2020.

3D.8 Dividend/distribution margin

4.6000 % 3D.9 Comments on how dividend/distribution margin is set Margin is defined in the Prospectus dated 21 October 2020.

Notification of dividend / distribution

4 / 5

Notification of dividend / distribution

==> picture [21 x 22] intentionally omitted <==

3D.10 Any other rate / multiplier used in calculating dividend/distribution rate

-1.3855 %

3D.11 Comments on how other rate used in calculating dividend/distribution rate is set

Above rate represents franking credits and is calculated as (Bank Bill Rate + Margin) x Tax Rate x -1.

The calculation is based on an expected Franking Rate of 100% and a Tax Rate of 30%.

For more information, please refer to the Prospectus dated 21 October 2020.

3D.12 Total dividend/distribution rate for the period (pa)

3.2330 %

3D.13 Comment on how total distribution rate is set

Distribution Rate = (Bank Bill Rate + Margin) x (1 - Tax Rate).

For more information, please refer to the Prospectus dated 21 October 2020.

Part 5 - Further information

5.1 Please provide any further information applicable to this dividend/distribution

Refer to Challenger's ASX announcement titled 'Capital Notes Distribution Franking Amendment' dated 9 February 2021.

5.2 Additional information for inclusion in the Announcement Summary

Distributions are discretionary and are subject to there being no Payment Conditions existing in respect of the relevant Distribution Payment Date. Capitalised terms used in this announcement but not defined have the meaning they are given in the Challenger Capital Notes 3 Prospectus dated 21 October 2020. The Prospectus and other information about Challenger Capital Notes 3 may be found at www.challenger.com.au/shareholder/debt-instruments/challenger-capital-note s-3-cgfpc.

The forward-looking statements, estimates and projections contained in this release are not representations as to future performance and nothing in this release should be relied upon as guarantees or representations of future performance.

Notification of dividend / distribution

5 / 5