CHALLENGER LIMITED — Capital/Financing Update 2021

Challenger Limited 29 July 2021

APPROVAL RECEIVED FOR MYLIFE MYFINANCE ACQUISITION

Challenger (ASX: CGF) today announced it has received approval from the Federal Treasurer for the acquisition of MyLifeMyFinance Limited (MyLife MyFinance).

In December 2020, Challenger announced it had entered into an agreement to acquire MyLife MyFinance, an Australian-based digital bank, for an acquisition price of $35 million[1] from Togethr Trustees Pty Limited as trustee for MyLifeMyMoney Superannuation Fund (also known as Catholic Super).

The acquisition was subject to certain conditions, including approval from the Federal Treasurer under the Financial Sector (Shareholdings) Act 1998 (Cth). This approval has now been received and completion of the MyLife MyFinance acquisition is expected to take place on 30 July 2021.

MyLife MyFinance is an Australian-based authorised deposit-taking institution (ADI) and digital bank, offering a range of simple savings and lending products. MyLife MyFinance has an ADI licence and an existing term deposit offering. The acquisition will provide Challenger with accelerated access to Australia’s term deposit market.

Challenger Managing Director and Chief Executive Officer, Richard Howes said: “I am pleased to announce today approval has been provided for Challenger’s acquisition of MyLife MyFinance. This transaction is highly strategic, supporting our ambitious growth strategy and plans to significantly expand our customer and product offering for Australian retirees.

“The acquisition provides Challenger with a scalable digital banking platform and accelerated entry into the term deposit market. In addition to diversifying our distribution channels, it also opens opportunities for further product innovation, broadening the way we are able to provide our customers with financial security for a better retirement.”

Mr Howes said integrating and growing the bank alongside the existing business is key to Challenger’s strategy.

“The integration is progressing well. The bank distribution strategy is focused on building early momentum with direct to consumer capability. We will also broaden the bank’s lending capability to support returns.

“To ensure speed to market, we will continue marketing under the MyLife MyFinance brand as we work to transition the bank to the Challenger brand later in the year”.

ENDS

1 Acquisition price subject to completion adjustments.

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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

29 July 2021

This release has been authorised by Challenger’s Continuous Disclosure Committee.

About Challenger

Challenger Limited (Challenger) is an investment management firm focused on providing customers with financial security for a better retirement.

Challenger operates two core investment businesses, a fiduciary Funds Management division and an APRA-regulated Life division. Challenger Life Company Limited (Challenger Life) is Australia's largest provider of annuities.

For more information contact:

Stuart Kingham Head of Investor Relations Mob +61 401 139 067 [email protected]

Jane Keeley Head of External Communication Mob +61 402 663 522 [email protected]

Mark Chen

Senior Investor Relations Manager Mob +61 423 823 209 [email protected]

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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.