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CHALLENGER LIMITED Earnings Release 2016

Aug 15, 2016

64641_rns_2016-08-15_516aef69-fdfe-41b5-b679-3cab0a583388.pdf

Earnings Release

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Challenger Limited Preliminary Financial Report Appendix 4E 2016

Under ASX Listing Rule 4.3A for the year ended 30 June 2016

Current period 1 July 2015 to 30 June 2016 Prior corresponding period (PCP) 1 July 2014 to 30 June 2015

Results for announcement to the market

Results for announcement to the market
2016 2015 Change
$M $M %
Revenue from ordinary activities 1,813.3 1,689.0 7.4
Profit from ordinary activities after tax attributable to equity holders 327.7 299.0 9.6
Net profit for the year attributable to equity holders 327.7 299.0 9.6

Normalised net profit after tax, management’s preferred measure of profit, for the year ended 30 June 2016 increased by 8.3% to $361.7 million (PCP: $334.0 million). Refer to Note 3 Segment information in the 2016 Annual Report for a definition of normalised profit after tax and the reconciliation to the statutory profit for the period.

Dividend information

Dividend information
2016 2015 Change
cents cents %
Interim per ordinary share – 100% franked (2015 interim: 70% franked) 16.0 14.5 10.3
Final per ordinary share – 100% franked (2015 final: 100% franked) 16.5 15.5 6.5
Total dividends per share for the year 32.5 30.0 8.3

The Challenger Limited Board will continue the Dividend Reinvestment Plan (DRP). The dividend will be paid on 28 September 2016. 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. There is no conduit foreign income for this dividend.

2016 Final dividend dates

2016 Final dividend dates
Ex-dividend date 1 September 2016
Record date 2 September 2016
Final Dividend Reinvestment Plan election date 5 September 2016
Payment date 28 September 2016
30 June 30 June
2016 2015
Net tangible assets per security $M $M
Net assets 2,684.0 2,638.6
Less:
- intangible assets 12.3 18.4
- goodwill 571.6 531.0
Non-controllinginterests 3.1 95.4
Net tangible assets 2,097.0 1,993.8
Ordinary shares (number - million) 558.8 553.4
Net tangible assets per security ($) 3.75 3.60

Other disclosure requirements

Additional ASX Appendix 4E (Listing Rule 4.3A) disclosures can be found in the Annual Report 2016 lodged separately from this document. This document should be read in conjunction with the Annual Report 2016, Annual Review 2016 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 Preliminary Financial Report

Challenger Limited Preliminary Financial Report Appendix 4E 2016

Cross reference index for other disclosures included in 2016 Annual Report Page/Reference
Review of operations 7
Statement of financial performance and notes 42
Statement of financial position and notes 43
Statement of cash flows and notes 45
Statement of retained earnings 75
Details of associates and joint ventures 88
Details of entities over which control was gained or lost during the 93
year (for which there was a material effect)
Other significant information 7
Foreign entities International Financial Reporting Standards
Audit 100

Authorisation

==> picture [123 x 51] intentionally omitted <==

Michael Vardanega Company Secretary Sydney 15 August 2016

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Challenger Limited Preliminary Financial Report