2021 AGM Chairman and CEO addresses

Challenger Limited

28 October 2021

ANNUAL GENERAL MEETING

CHAIR AND CEO ADDRESSES

Challenger Limited (ASX: CGF) is today holding its 2021 Annual General Meeting (AGM) virtually, commencing at 9:30am (AEDT).

To participate in the AGM you can log in to the meeting from your computer or mobile device via web.lumiagm.com/392995787

Further information regarding participating in the AGM online is detailed in Challenger Annual General Meeting Online Meeting Guide 2021

The Chair and Chief Executive Officer addresses are attached.

Chair address

Introduction

Good morning ladies and gentlemen, and welcome to Challenger's 2021 Annual General Meeting.

In a year marked by COVID-19, 2021 has undoubtedly been tough and trying for many Australians, our industry and the wider economy, and it is heartening to see states across the country implementing roadmaps out of the pandemic.

Amidst the uncertainty of the past year, I am proud of the way our management and people continue to deliver on our purpose and focus on our customers and shareholders.

Whilst restrictions are beginning to ease, given the nature of the pandemic, as well as public health advice, we are holding today's meeting online, with your Board and management joining from different locations.

Every effort has been made to ensure today's meeting is as interactive as possible, including the opportunity for shareholders to ask questions and vote online, and the Board and I look forward to taking your questions later in the meeting.

Challenger Limited A.B.N 85 106 842 371. Disclaimer: 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.

Challenger Limited

28 October 2021

2021 performance

In the 2021 financial year, we took decisive action to position our business for the future - executing our strategy to diversify revenue and repositioning our investment portfolio while strengthening our balance sheet and operating settings.

We maintained momentum across the business and achieved record assets under management of $110 billion, an increase of 29% that was driven by strong contributions from both the Funds Management and Life businesses.

As part of our strategy to diversify revenue, we focused on broadening our client base, distribution channels and product offering. Our financial results demonstrate that this approach is working - the Life business delivered record sales of $7 billion and in Funds Management net flows reached $16 billion.

Normalised net profit before tax was within our guidance range, at $396 million, and reflected our proactive decision to reposition the investment portfolio to more defensive settings during the early stages of the pandemic, including holding higher levels of cash. Throughout the 2021 financial year, we gradually deployed this balance into higher returning assets and expect to see the full benefits of this approach during 2022.

We also recorded a statutory net profit after tax of $592 million, which included positive investment experience of $319 million. This result demonstrates that our statutory profit can vary significantly from year to year due to unrealised movements in our investment portfolio. We believe that normalised profit provides a more meaningful measure of our underlying performance, even when statutory profit is higher, such as in 2021.

Our capital settings remain robust and sustainable, and at 30 June 2021 we held $1.6 billion in excess regulatory capital. We also enhanced our risk settings, which demonstrates our commitment to protecting our strong brand and customer franchise and ensures that the business continues to have flexibility to respond to market movements. With the deployment of cash and liquids now complete, we're well positioned to move back in line with our sustainable return on equity target of the RBA cash rate plus 12% per annum.

Challenger Limited A.B.N 85 106 842 371. Disclaimer: 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.

Challenger Limited

28 October 2021

Reflecting confidence in our business, the Board recommenced paying dividends in 2021, declaring fully franked dividends of 20 cents per share.

Our 2021 performance underscores the strength of our business, which is well positioned for significant growth and reinforces the confidence and optimism we have in Challenger's future.

Governance

As a Board, we recognise the importance of balancing the requirements of today's business with maintaining a longer-term outlook - carefully considering risks and opportunities. To do this we are committed to ensuring we have the right people and practices to maintain strong corporate governance.

Over the past four years we have undertaken an effective program of Board renewal which continued this year. Your Board now has a healthy average tenure of six years, bringing a balance of stability and new perspectives, together with a powerful mix of skills, experience and industry knowledge. While our backgrounds and styles are diverse, we share a common commitment to acting in the best interests of our shareholders, customers, employees and the wider community.

In January, we welcomed Dr Heather Smith to the Board, who will stand for election today. Dr Smith has a strong economic and capital markets background and over 20 years' experience in senior government roles, including as Secretary of the Commonwealth Department of Industry, Innovation and Science. She brings valuable insights and significant expertise that will further strengthen the Board.

John Green, Duncan West and Melanie Willis will stand for re-election today, all of whom are valued members of our Board and bring diverse skills, demonstrated commitment and capability.

At the 2019 AGM, I announced that this would be my final term on the Challenger Board. With the talented group of Directors we have in place, I am confident that we are well positioned to manage a smooth and orderly transition over the next year. This process will ensure strong continuity as the Board continues to oversee Challenger's growth strategy and maintain our robust approach to corporate governance and risk management.

Challenger Limited A.B.N 85 106 842 371. Disclaimer: 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.

Challenger Limited

28 October 2021

Executive remuneration

Over the course of this year, we engaged extensively with shareholders and have taken action in response to their concerns regarding our 2020 remuneration approach.

We have made a number of changes to our reward framework and communications, ensuring that there is a clearer link between pay and business performance as well as providing greater transparency on the Board's decision-making process.

Reflecting these changes, key reward decisions in 2021 included:

• Short-termincentive outcomes for executives ranged between 56% and 98% of target, with the Group CEO receiving an outcome that was 56% of target;
• A 30% downward modifier was applied to all executives' short-term incentives to reflect the continued impact of the pandemic-driven events of 2020 on our business;
• And for the third consecutive year, no long-term incentives vested in 2021, demonstrating the strong alignment between executive reward and shareholder outcomes.

Pleasingly, all proxy firms have recommended that shareholders vote in favour of our remuneration report, and it has been strongly supported by shareholders. As we look to 2022 and beyond, we will continue to actively engage with shareholders on our remuneration approach, with the objective of ensuring that executive incentives are closely aligned with shareholder outcomes and support us to attract and retain top talent.

Sustainability

Sustainability continues to be a significant focus for Challenger and our Board - it is important for the long-term success of our business and reflects the responsibility we have to shareholders, customers, employees and the community more broadly.

In 2021, we continued to embed sustainability across Challenger through our business practices, culture and risk framework.

Challenger Limited A.B.N 85 106 842 371. Disclaimer: 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.

Challenger Limited

28 October 2021

Our refreshed sustainability strategy, which addresses our most material environmental, social and governance (ESG) opportunities, now also includes a focus on responsible investment, demonstrating our strengthened effort in this area.

We have further improved our ESG governance through the establishment of a business-wide ESG Steering Committee, which monitors key risks and opportunities, the effectiveness of mitigating activities, and provides recommendations to the Board.

As a business, we are committed to building a diverse and inclusive workforce and have made considerable progress in implementing our inclusion and diversity strategy, including an ongoing focus and commitment to gender equality.

Strongly aligned to our purpose, this year we launched a major research report examining the employment challenges of workers over 50 years old - a product of our community partnership with COTA NSW. These findings have informed a pilot program to address barriers to employment for older workers that will shortly be introduced at Challenger, with the intention that the program will then be made available for businesses and organisations across Australia.

Our highly capable management and team

At Challenger, we have a highly capable management team, whose expertise and commitment has been instrumental in navigating the challenges which have confronted the business in recent years and in delivering strong business outcomes in 2021. The team has the right mix of longer tenure and newer members, who provide continuity and fresh perspectives, as well as a wide range of skills and experience to deliver Challenger's strategy and growth ambitions.

I am also very proud of the wider team we have at Challenger - it is heartening, yet not surprising, that our people have remained so dedicated to supporting our customers in an uncertain external environment.

Their commitment reflects the strong sense of purpose and values-based culture that is embedded across our business, which has been driven by our CEO Richard Howes.

Challenger Limited A.B.N 85 106 842 371. Disclaimer: 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.