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CHALLENGER LIMITED — Interim / Quarterly Report 2021
Feb 8, 2021
64641_rns_2021-02-08_cd08713a-34af-4133-9bdf-4e534eb17b52.pdf
Interim / Quarterly Report
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Challenger Limited 2021 Interim Financial Report Appendix 4D
Under ASX Listing Rule 4.2A.3 for the six months ended 31 December 2020
Current period
Prior corresponding period (PCP)
1 July 2020 to 31 December 2020 1 July 2019 to 31 December 2019
| 31 Dec | 31 Dec | |||
|---|---|---|---|---|
| 2020 | 2019 | Change | Change | |
| Results for announcement to the market | **$m ** | **$m ** | **$m ** | % |
| Revenue from ordinary activities | 1,289.5 | 1,222.2 | 67.3 | 5.5 |
| Profit from ordinary activities after tax attributable to equity holders | 222.8 | 220.4 | 2.4 | 1.1 |
| Netprofit for theperiod attributable to equityholders1 | 222.8 | 220.4 | 2.4 | 1.1 |
1 Share of profits of associates is $16.1 million (PCP: $12.8 million).
Statutory net profit after tax, which includes investment experience, being the valuation movements on assets and liabilities supporting the Life business, was $222.8 million (31 December 2019: $220.4 million), up $2.4 million primarily as a result of higher investment experience profit offsetting the decline in normalised earnings.
Normalised net profit after tax, management’s preferred measure of profit, for the six months period to 31 December 2020 decreased by 28.5% to $136.8 million (PCP: $191.4 million). Refer to Note 3 Segment information in the 2021 Interim Financial Report for a definition of normalised net profit after tax and the reconciliation to the statutory profit for the period.
| 31 Dec | 31 Dec | ||
|---|---|---|---|
| 2020 | 2019 | Change | |
| Dividend information | Cents | Cents | % |
| Interimper ordinaryshare – 100% franked(2019 interim: 100% franked) | 9.5 | 17.5 | (45.7) |
| 31 Dec | 31 Dec | ||
| 2020 | 2019 | Change | |
| **$m ** | **$m ** | % | |
| Dividendsproposed(not recognised as a liabilityat 31 December) | 64.0 | 106.7 | (40.0) |
The Challenger Limited Board will continue the Dividend Reinvestment Plan (DRP). The dividend will be paid on 23 March 2021. 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.
| 2021 Interim dividend dates | |
|---|---|
| Ex-dividend date | 23 February 2021 |
| Record date | 24 February 2021 |
| Final Dividend Reinvestment Plan election date | 25 February 2021 |
| Payment date | 23 March 2021 |
| Ownership interest | |
| 31 Dec 31 Dec |
|
| Details of associates andjoint ventures | 2020 2019 |
| Alphinity Investment Management Pty Ltd | 30% 30% |
| Ardea Investment Management Pty Ltd | 30% 30% |
| Ares Australia Management Pty Ltd | 35% 35% |
| Avenir Capital Pty Ltd | 40% 40% |
| Bentham Asset Management Pty Ltd | 49% 49% |
| Eiger Capital Pty Ltd | 40% 40% |
| Greencape Capital Pty Ltd | 47% 48% |
| Lennox Capital Partners Pty Ltd | 40% 40% |
| Merlon Capital Partners Pty Ltd | 30% 30% |
| Novaport Capital Pty Ltd | 49% 49% |
| Resonance Asset Management Ltd1 | - - |
| Wavestone Capital Pty Ltd | 33% 33% |
| Whitehelm Capital Pty Ltd | 30% 30% |
| WyeTree Asset Management Ltd | 49% 49% |
1 Challenger holds a board position and is deemed to have significant influence.
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Challenger Limited 2021 Interim Financial Report Appendix 4D
| 31 Dec | 31 Dec | |
|---|---|---|
| 2020 | 2019 | |
| Net tangible assetsper security | $m | $m |
| Net assets | 3,512.8 | 3,743.8 |
| Less: | ||
| - Intangible assets | 17.6 | 21.7 |
| - Goodwill | 579.9 | 580.3 |
| - Right-of-use lease asset | 37.9 | 34.4 |
| Non-controllinginterests | - | 28.0 |
| Net tangible assets | 2,877.4 | 3,079.4 |
| Ordinary shares (number – million) | 672.2 | 607.6 |
| Net tangible assets per security ($) | 4.28 | 5.07 |
Other disclosure requirements
Additional ASX Appendix 4D (Listing Rule 4.2A.3) disclosures can be found in the 2021 Interim Financial Report lodged separately from this document. This document should be read in conjunction with the 2021 Interim Financial Report 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 4.2A.3 covers Challenger Limited and its controlled entities, and is based on the separately lodged consolidated financial statements and financial report which have been reviewed by Ernst & Young.
Cross reference index for other disclosures included in 2021 Interim
| Financial Report | Page/Reference |
|---|---|
| Review of operations | 10 |
| Statement of comprehensive income | 20 |
| Statement of financial position | 21 |
| Statement of cash flows | 23 |
| Outlook for the 2021 financial year | 15 |
| Accounting standards used for foreign entities | International Financial Reporting Standards |
| Auditor’s review report | 49 |
Authorisation
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Linda Matthews Company Secretary 8 February 2021
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