#1Tencent Music Entertainment Group Investor Presentation (NYSE: TME & HKEX: 1698) November 2023 二 腾讯音乐娱乐集团 TENCENT MUSIC ENTERTAINMENT#2Disclaimer ZE This presentation has been prepared by Tencent Music Entertainment Group (the "Company") solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company nor any of its affiliates, advisers, or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements. These statements reflect the Company's intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," "intends," "anticipates," "believes," "confident" or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company's operations and other factors, many of which are beyond the Company's control, and accordingly, actual results may differ materially from these forward-looking statements. Neither the Company nor any of its affiliates, advisers or representatives have any obligation and they do not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation does not constitute an offer to sell or issue or an invitation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securities Act") and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, these materials do not constitute a "prospectus" within the meaning of the Securities Act. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. In evaluating its business, the Company uses certain non-IFRS measures as supplemental measures to review and assess its operating performance. These non-IFRS financial measures have limitations as analytical tools, and when assessing its operating performances, investors should not consider them in isolation, or as a substitute for profit or other consolidated statements of operation data prepared in accordance with IFRS. 2#301 COMPANY OVERVIEW 1850 In My Blood Shawn Mendes 0.50 158 5 AMISIRS TRISOW II T 结束#4Relentless Commitment to the Healthy Development of China's Online Music Industry ZE High-quality content and services continuously driving paying user loyalty 17.3% TME online music paying users (mm) -TME paying ratio¹ 103.0 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Note: 1. Paying ratio is calculated by dividing the number of online music paying users by online music MAUS. 4#5Our Dual Engine Content-and-Platform Strategy ZE TENCENT MUSIC ENTERTAINMENT Sing Watch K live ☑ QQ Music Kugou Music Kuwo Music We Sing Lazy Audio TME Live 400 Listen Discover Unique user experience Users Monetization Platform Perform Socialize Content Enrich content offerings ZE % Reach Monetization Content Provider Empower creation and distribution Copyright Protection Online Music Live Streaming Online Karaoke Long-form Audio Concert Create Endless Possibilities with Music and Technology ☐ -□ Technology Empower Creation 5#6All-in-one Online Music and Audio Entertainment Destination Online Music K All-around suite of music and audio entertainment products and services Online Karaoke QQ Music Kugou Music Kuwo Music We Sing K Kugou Changchang Live Streaming K Kugou Live Kuwo Live ME Live Events E live TME Live Virtual Music Playground TMELAND Musician Platform TENCENT MUSICIAN Tencent Musician Platform Large User Base Innovative Product Matrix Proprietary Technology + Comprehensive Content Library ZXE Long-form Audio A Lazy Audio Original Content 官 启明星 音乐助手 Producer Studio Venus Music Assistant Diversified Monetization 6#7Leading Online Music and Audio Entertainment Platform in China ZE Leading Platform Massive User Scale Extensive Content Innovative Technology Strong Monetization ♫ 594mm Online music MAUS¹ 103.0mm Online music subscribers¹ 20.8% YoY growth 150mm+ Total music & audio tracks³ Winner of the world-renowned MIREX global song recognition technology competition RMB30.96bn Total cash, cash equivalents and term deposits4 ᏧᏧ World record 4 out of Top 5 129mm 390K+ Music mobile apps in China¹ Social entertainment mobile MAUS² Number of indie musicians³ in the MIREX song prediction technology competition RMB28.3bn LTM 20235 total revenues 21.3% LTM 20235 adj. net margin Note: 1. Four out of top five music mobile apps in terms of mobile MAUS in 2022; 2. In 3Q2023. For the definitions of the cited key operating metrics, please refer to the introduction section in the Company's 2022 20-F filed on April 25, 2023. Beginning in the first quarter of 2023, "online music MAUS" includes unique mobile and certain loT devices. "Online music MAUS" for any given period (i) refers to the monthly average of the sum of the MAUS for that period; and (ii) includes QQ Music, Kugou Music, Kuwo Music and other music products, through which such product is accessed at least once in that month; duplicate access of different services by the same device is not eliminated from the calculation; 3. As of December 31, 2022; 4. As of September 30, 2023; 5. Last twelve months as of September 30, 2023. 7#8& Tone Labs 02 BUSINESS OVERVIEW A#9Our Content: China's Most Comprehensive Music Library 2 Labels Content Production Tencent Musician Platform Promotional Capabilities Leading music library with diversified genres Hundreds of domestic and international music label partners1 with 150mm+ music and audio tracks¹ Head-start period partnerships with top domestic and overseas labels and artists Various trendy genres including Chinese ancient style, Hip-hop, J- POP, K-POP, ACG, EDM; and diverse music verticals such as gaming, classical, and electronic music Advanced technology-driven production capabilities Proprietary technology and deep understanding of music trends to systematically and efficiently create, evaluate and promote music Cooperation with well-known IPs across various entertainment verticals at home and abroad AIGC tools & full-suite of resources and services for efficient original content production Cultivate and empower indie musicians & original music One-stop platform to empower musicians with comprehensive resources and services as well as holistic support ranging from online and offline promotions to diverse monetization avenues Rich variety of creation scenarios and opportunities to explore social and cultural values through music More expansive and vibrant musician ecosystem co-built with Weixin to widen artists' exposure Integrated internal and external promotion resources Broader Tencent ecosystem for music promotion Varied promotional channels such as variety shows, films, videos and performance events Partner with popular brands to host sponsored music festival Note: 1. As of December 31, 2022. د UNIVERSAL UNIVERSAL MUSIC GROUP SONY MUSIC ད. MUSIC WARNER RECORDED K HYBE WE BELIEVE IN 滾石唱片 风华秋实 MUSIC ROCK FORWARD ROCK RECORDS & TAPES In-house Studios ZE CUBE ENTERTAINMENT Broader Tencent Ecosystem HE FX QQ音乐 聚星互娱 新鲜制造 腾讯游戏 Tencent Games 阅文集团 电影原声带 No More Bets See You Tomorrow Summer Love Beast X 视频号 腾讯视频 不负好时光 Weixin Video Accounts Tencent Video billboard Harry N THE TREASURED VOICE Billboard 9#10Our Platform: Listen, Watch, Sing and Play Product matrix caters to the varying needs of music consumers K 6 Long-form audio: leading IP + radio drama, to enhance overall user engagement TME platform capitalizes on the public's growing demands for in-person activities Music subscriptions exhibit robust growth momentum and potential Online music paying users Paying ratio 103.0mm 17.3% 3Q18 3Q19 3Q20 3Q21 3Q22 3Q23 3Q23 Online music paying users and paying ratio Leading online karaoke social community with enriched real-time interaction scenarios & recording and singing optimization features to offer unique and engaging experience 10:541 14:01 SUSU的练歌房公开 ㄖ盒X < 13:51 音色制作人 Han 已制作歌曲 1236 00:01/03:35 红方演唱> 音色 * 播放全部 20 MILIAN AP DATUITARY On the avenue Thought I heard you talking softly I turned on the lights the TV And the radio 制作人 保留 if 用你的音色制作歌曲● 【路过人间 ourtan BR SAZETORS 成员 3 游客 103 f Ordinary World - 杜兰社兰乐队 WX 99 并能 开始制作 AESAROM 我是如此相信 76237238 REW BAR 49 Virtual karaoke rooms to sing & chat with friends Vocal Producer Note: 1. As of December 31, 2022. 合成变调 20/21 UTOP MEI EA (30) ADELE ONE NIGHT ONLY Live Music EASON CHAN 327 LOVE WISHES CONNANNCAN ZE QQ音乐 √已关注 主页 视频 直播回放 TH 5.87 300-19 ● 数字有问 借出了合細田的气势 当期奖奖认真唱般果然當疯了 車演空月 这歌也就他唱才过味 4930 023万 (3.7万 Listen Innovative and nimble features to elevate listening experience Watch Makes music content more visually memorable TME Live integrates offline concerts with online live streaming experience 57 9M23 Online and offline concerts Collaborate with Wexin Video Accounts to create vibrant music ecosystem and strengthen promotion capabilities Sing 临境空间 打造VIP全新录唱品质 From singing to multi- dimensional 开启全新录唱体验 Sound optimization feature performance Play New ways to interact virtually Al music companion: Xiaoqin brings interactive and fun experience with newly added music recommendation feature DE 越讯音乐娱乐集团 | 天琴实验室 Engaging song guessing function built upon listening experience Music Pets 我吃饱了,可以出门看演出 LYR LAB P ● 超HOT单曲等你挑战 明天见 TFBOYS PK 挑战歌曲 火爆单曲 山 15 趋势 10% 10#11Our Industry-leading Technology Data Technology Listening watching / download history Feed browsing activity Favorite songs / artists/genres Saved playlists Likes/shares/ comments Industry- leading Technology Data Analytics and Prediction 8:20 < QQ窗乐排行榜 ****** 3271% BONBON SONO RIS 2. 歌 14.0 2. SKS 20 1.10-1 A-IS 1. C ***** 1. Ant * bett 1. T み 3914 Value Propositions ZA Superior Sound Quality and Effects Algorithms and multi-dimensional data insights, recommending music based on users' music tastes 自动检测 Targeted promotion system based on real-time data analysis, helping artists and songs reach the right audience Proprietary PDM predictive model at each key stage of the music production process, enabling creators to quickly make decisions 定制 手动选择 会员专属定制音效 汽车 00000 「我们通过专业测试,获取你的所值数据」 立即检测 Optimized sound quality and effects: Dolby Surround Sound, Adaptive Sound Adjustment, etc. Premium Sound series: QQMUSIC AUDIO, Premium Master Tape, Premium Surround Sound and Premium Sound Quality 2.0, enhancing sound clarity and expressiveness Proprietary sound effects: panoramic, DJ mode, super bass, acoustic clear voice, 4D vibe and many others, Viper Panoramic Surround Sound Virtual gifting activity Digital album purchases Bullet chats Locations Song Recognition 1:53 < 听歌识曲 HIPEL 分止识别 Sad, OTER Al reading technology Lingyin Engine and LyraSinger Engine: patented Al-based voice synthesis technology Identify songs by playing song track samples or short videos Award-winning technology: winner of MIREX1 2020 global song recognition technology competition; New world record in MIREX 2020 song prediction technology competition Facilitate searching user content discovery and Al Capabilities & AIGC Tools STRED டர் # QQ Music's Quick Listen mode: chorus- focused content discovery feature Kugou Music 12.0: featuring fast discovery of multiple song covers Muse Engine: enable automated large- scale music poster production Virtual performers: LUCY (), Xiaoqin (小琴), Shanbao (扇宝) and Anko (安可) Venus: introduced zero-shot Al-powered music production tool AIGC-empowered virtual gifts and functions for live streaming ✓ Vocal Producer: create Al-generated music content in multiple languages Note: 1. MIREX (Music Information Retrieval Evaluation exchange) is a community-based formal evaluation framework coordinated and managed by the International Music Information Retrieval System Evaluation Laboratory (IMIRSEL) at the University of Illinois at Urbana-Champaign. 11#12Our Diverse Monetization Opportunities Strong growth of online music paying users driven by premium content and services BANK Subscription 1234 5678 Premium Membership Super VIP Membership √ 超级会员 Advertising Innovative and Diverse Ad Formats ZE Multi-faceted Models 【酷爽音乐节 A57223 SUMMER LIITED REFRESHING MUSIC FE Long-form audio 数字专辑 ● 豪华绿钻 10:30 B 畅听全场付费数字专辑 一场纳周杰伦、陈奕迅发明提歌曲 酷爽音乐厂牌 推荐歌曲歌词 TEX雪碧 夏日限定 尊享豪华VIP专属特权+音乐包特权 50+项专属特权,总价值2160元/年 23项特权 ^ ·千万曲库 * 付费歌曲下载 * 无损音质 “身份标识 4.5折升级 立减10元 仅29.4元/月 * HIFI音效 ·评论发动图 ·评论发K歌作品 *领听书券 升级1个月 连续包月 季卡 - 明星字体 ●头像挂件 *会员皮肤 动态背景 ¥18 *30 ¥88 * 启动画面 ● 歌词海报 ·铃声特权 -等级加速 *40 ¥40特選 ˙超值特惠 200+张 数字专题 ¥1500/ 价值 100W+ ¥180/年 价值 “超清MV * 直播礼物 ·超大网盘容量 。演出折扣 ·下载加速 *商城福利 *专属客服 您的豪华绿钻可升级超级会员,更优惠 【全民K歌 首月立省3元 新客首年88元」 30个 VIP权益 ¥300/年 ·价值 新书资源 M听书会员 100W+ ¥180/年 □价值 连续包月 连续包季 连续包年 1个 -开通超级会员立省1812 元/年 李级会员专属特权并游正融华绿钻、听书会员:全民K歌二十分開 「导师教唱,音质音效作品特效 MP内容 免费下载免费专证 ¥ 15 ¥18 ¥88 ¥1 18 445 *488 成长值特权 等级勋章 臻品音质线 高采样率及高分辨率技术,配合声效增强 臻品音质 超快加道 动态装饰 与众不同 生日特权 惊喜礼包 someon YSL邀您免费听歌 30分钟◎ MUSIC FESTIVAL 巅峰 MUSIC FESTIVAL 音乐节 ne 之后将15元/月自动续费,随时取消(2) 同一个Apple ID仅可享受一次优惠,请以实际支付价格为准 扑淘商城 ) 特殊红名 专属色彩 103 心动字符 d (Lai 看视频免费听歌 R DIY 2022萬业系列面饼+ 明星情边商品 开通前请阅读《会员服务协议》及《自动续费服务规则》 一起听表情 传情达意 智能设备 智慧生活 2Someone(三)开绿钻 Nobody can see and nobody can feel it ¥15 立省3元 确认协议并支付 专属挂件 挑 “少女时代”“拥抱自己“等热门挂件 弹藏气泡 Mobile + loT 定制音效 海报字体 明星问候 生活福利 | 05:36 K 06 12 Ad-supported mode הו 场地支持:m 口京东超市| 酷我音乐 ZiBOT 京东超市酷我音乐, 烧烤音乐 Sponsored music events Digital albums Artist merchandise Copyright licensing ...continue to innovate service models 12 12#13Music-centric Live Streaming Leading music-centric live streaming platform in collaboration with online music services ZE For Users Diversified categories Leading technologies Community & interest groups Healthy content Music-centric Live Streaming QQ Music Live Kugou Live Kuwo Live Collaboration with Music Organic Traffic Music Content Enrichment ✓ Virtual idol cultivation and Al companion creation T Artist Discovery For Live Streamers Talent discovery Curation and promotion Private domain Music career path Connect and interact with fans Monetization ✓ Replicate successful domestic operational experiences in overseas markets Virtual Interactive Offerings ✓ AIGC-empowered features, e.g. automatically analyzing and providing personalized advice based on users' singing on WeSing Overseas Expansion ✓ ROI-focused M&A strategy 13#1403 FINANCIAL HIGHLIGHTS EXIT MA EXIT EXIT MO EXIT EXIT RO EXITO EXIT 16 EXIT EXIT#15Strong Monetization and Profitability Monetization Profitability RMB10.3 3Q23 Online music monthly ARPPU1 Record high, with 6 consecutive quarters of sequential growth 35.7% 3.1ppt YoY+ 3Q23 Gross margin RMB3.19bn 42.0% YoY+ 3Q23 Subscription revenue RMB1.50bn 6.5% YoY+ 3Q23 Non-IFRS net profit Note: 1. Refers to the monthly average of (i) the subscription revenues of online music services for 3Q2023 divided by (ii) the number of paying users of online music services for 3Q2023. ZE 15#16Diverse Revenue Streams and Healthier Revenue Mix Robust online music revenue performance Total Revenues (RMB mm) 58% Subscription as a key growth driver ZE Online Music Revenues (RMB mm) 4,553 4,249 3,559 69% 3,430 3,501 1,360 1,359 2,878 903 1,208 1,181 771 50% 48% 3,193 2,890 2,598 2,107 2,249 2,351 47% 42% 7,425 7,365 7,286 7,004 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 6,905 6,569 Subscription Non-subscription 3,037 3,935 3,866 2,016 3,503 4,027 4,553 4,249 3,430 3,559 3,501 2,878 17.3% 16.7% 15.9% 14.7% 13.8% 13.3% 10.3 9.7 9.2 8.8 8.9 8.5 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 2Q22 3Q22 Social entertainment services and others Online music services Online music services as % of total revenues 4Q22 Online music ARPPU (RMB) 1Q23 2Q23 -Paying ratio 3Q23 16#17Expanded Gross Margin and Healthy Profitability (RMB mm) Gross profit and margin 35.7% 34.3% 32.6% 33.0% 33.1% 29.9% (RMB mm) Non-IFRS net profit¹ and margin ZE 22.9% 21.7% 20.9% 20.1% 19.2% 1,579 2,497 2,403 2,447 15.4% 1,492 1,463 1,503 2,315 2,342 1,411 14.1% 2,063 1,065 939 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Gross profit Gross margin Non-IFRS net profit Non-IFRS net margin Note: 1. For non-IFRS net profit, please refer to the appendix for reconciliation details. 17#18Solid Cash Position and Valuable Investment Strong cash position & cash generation ability RMB30.96bn Cash and cash equivalents, term deposits¹ Note: 1. As of September 30, 2023; 2. In 3Q2023. ZE Equity investments RMB5.50bn Financial assets at fair value through other comprehensive income1 RMB4.37bn Investments accounted for using equity method¹ Share count RMB1.44bn Operating cash flow² 1.59 bn ADSs used in computing diluted earnings per ADS² 18#19Appendix Unaudited Non-IFRS Financial Measure 2022 RMB Three Months Ended September 30 2023 Unaudited RMB Unaudited US$ Unaudited (in millions, except per share data) 1,093 1,263 ZE 2022 Nine Months Ended September 30 2023 RMB Unaudited RMB Unaudited US$ Unaudited (in millions, except per share data) 2,634 3,811 Profit for the period 173 522 Adjustments: Amortization of intangible and other assets arising from business acquisitions or combinations* 130 101 14 372 334 46 Share-based compensation 226 185 25 656 553 76 Gains from investments** (3) (0) (141) (30) (4) Income tax effects*** Non-IFRS Net Profit (38) (43) (6) (106) (123) (17) 1,411 1,503 206 3,415 4,545 623 Attributable to: Equity holders of the Company Non-controlling interests 1,379 1,408 193 3,307 4,348 596 32 95 13 108 197 27 Earnings per share for Class A and Class B ordinary shares Basic 0.43 0.45 0.06 1.03 1.39 0.19 Diluted 0.43 0.44 0.06 1.02 1.37 0.19 Earnings per ADS (2 Class A shares equal to 1 ADS) Basic 0.87 0.90 0.12 2.05 2.78 0.38 Diluted 0.86 0.89 0.12 2.03 2.74 0.38 Shares used in earnings per Class A and Class B ordinary share computation: Basic Diluted 3,176,110,236 3,206,799,580 3,134,975,498 3,173,371,472 3,134,975,498 3,173,371,472 3,224,870,392 3,255,991,564 3,127,809,736 3,172,090,075 3,127,809,736 3,172,090,075 ADS used in earnings per ADS computation Basic Diluted 1,588,055,118 1,603,399,790 1,567,487,749 1,586,685,736 1,567,487,749 1,586,685,736 1,612,435,196 1,627,995,782 1,563,904,868 1,586,045,038 1,563,904,868 1,586,045,038 * Represents the amortization of identifiable assets, including intangible assets such as domain name, trademark, copyrights, supplier resources, corporate customer relationships and non-compete agreement etc., and fair value adjustment on prepayments for music content (i.e., signed contracts obtained for the rights to access to the music contents for which the amount was amortized over the contract period), resulting from business acquisitions or combination. ** Including the net gains on deemed disposals/disposals of investments, fair value changes arising from investments, impairment provision of investments and other expenses in relation to equity transactions of investments *** Represents the income tax effects of Non-IFRS adjustments 19#20Contact Us [email protected] https://ir.tencentmusic.com THANK YOU! 二 腾讯音乐娱乐集团 TENCENT MUSIC ENTERTAINMENT