1、This presentation may contain forward-looking statements relating to the forecasts,targets,outlook,estimates of financial performance,opportunities,challenges,business developments,business plans and growth strategies of Tencent Holdings Limited(the“Company”or“Tencent”)and its groupcompanies.These f

2、orward-looking statements are based on information currently available to Tencent and are stated here on the basis of the outlook atthe time that this presentation was produced.The Company undertakes no obligation to publicly update any forward-looking statement,whether writtenor oral,that may be ma

3、de from time to time,whether as a result of new information,future developments or otherwise.The forward-looking statementsare based on certain expectations,assumptions and premises,some of which are subjective or beyond our control.The forward-looking statements mayprove to be incorrect and may not

4、 be realised in the future.Underlying the forward-looking statements are a large number of risks anduncertainties.Therefore you should not rely on any of these forward-looking statements.Please see our various other public disclosure documents for adetailed discussion of those risks and uncertaintie

5、s.This presentation also contains some unaudited non-IFRS financial measures which should be considered in addition to,but not as a substitute for,measures of the Companys financial performance prepared in accordance with IFRS.In addition,these non-IFRS financial measures may be defineddifferently f

6、rom similar terms used by other companies.The Companys management believes that the non-IFRS financial measures provide investorswith useful supplementary information to assess the performance of the Companys core operations by excluding certain non-cash items and certainimpact of acquisitions.For f

7、urther explanation of our non-IFRS measures and reconciliations between our IFRS and non-IFRS results,please refer to ourearnings announcement.In addition,information relating to other companies and the market in general presented in these materials has been obtained from publicly availableinformati

8、on and other sources.The accuracy and appropriateness of that information has not been verified by Tencent and cannot be guaranteed.Allmaterials contained within this presentation are protected by copyright law and may not be reproduced,distributed,transmitted,displayed,published orbroadcast without

9、 the prior,express written consent of Tencent.The reporting currency of the company is Renminbi.For the purpose of this presentation,all figures quoted in US dollars are based on the exchange rateof US$1 to RMB7.0827 for 4Q2023.2Cautionary Note42023 Annual HighlightsHarnessing our technology and pla

10、tform to create social valueDigital philanthropy platform helped raise record RMB3.8 billion in public donations during 99 Giving Day campaign,up 15%YoYNew Cornerstone Investigator Program supported 104 scientists in basic science researchSharpened focus on major products and shifting towards high-q

11、uality revenue growth modelVideo Accounts total user time spent more than doubled,with enriched content ecosystem and expanded monetisationMini Games gross receipts increased over 50%,reinforcing position as largest casual game platform in ChinaNumber of major hit games(high average DAU and substant

12、ial monetisation)in China increased from 6 in 2022 to 8 in 2023International games revenue achieved double-digit growth,rising to 30%of games revenueTencent Music at 107 million paid subscribers,Tencent Video at 117 million,both increased ARPUWeCom and Tencent Meeting strengthened enterprise softwar

13、e leadership,and increased monetisationRapid advancement in technology and generative AI deploymentLaunched proprietary foundation model,Tencent Hunyuan,now among top-tier models in China,with powerful Chinese contentgeneration capabilities and advanced logical reasoningUpgraded advertising AI model

14、,delivering better ad targeting and higher revenueIn billion RMB 4Q2023YoYQoQFY2023YoYTotal Revenue155.2+7%+0.4%609.0+10%Value-added Services69.1-2%-9%298.4+4%Social Networks28.2-2%-5%118.5+1%Domestic Games127.0-3%-18%126.7+2%International Games13.9+0.6%+5%53.2+14%Online Advertising29.8+21%+16%101.5

15、+23%FinTech and Business Services54.4+15%+4%203.8+15%Others1.9-26%+75%5.3-25%Gross Profit 77.6+25%+1%293.1+23%Non-IFRSOperating Profit249.1+35%-5%191.9+34%Operating Margin231.7%+6.6ppt-1.7ppt31.5%+5.7pptNet Profit Attributable to Equity Holders42.7+44%-5%157.7+36%Financial Highlights1.Domestic Games

16、 refers to our games business in the PRC excluding the Hong Kong Special Administrative Region,the Macao Special Administrative Region and Taiwan2.Starting 4Q23,we present investment-related gains/(losses),donations and others(previously within“Other gains/(losses),net”)and interest income below ope

17、rating profit line to better reflect results of day-to-day operations5Additional operating leverage consists of:streamlined operations and cut back in overlyaggressive marketing spending,which is more one-time our commitment to cost discipline,which will haveongoing effectReignited healthy revenue g

18、rowth since 1Q23,byadding high quality revenue streams,while reducinglow quality streamsStructural outperformance of gross profit growth vs.revenue growth given margins of incremental revenuemuch higher than company average;value-addedrevenue on platforms whose costs already paid forGross profit gro

19、wth is a key proxy for organic growthHigh Quality Revenue Growth Model Powers Sustainable Value CreationGross Profit Growth Structurally Outpacing Revenue GrowthOperating Profit Growth Exceeds Gross Profit Growth728%16%-1%10%33%12%-2%22%33%7%-6%34%FY20FY21FY22FY23Revenue YoY(%)Non-IFRS Gross Profit

20、YoY(%)Non-IFRS Operating Profit YoY(%)11%11%10%7%18%21%23%25%30%36%35%35%1Q232Q233Q234Q23Weixin New Services Fuel Platform and Gross Profit GrowthWeixins DAU and daily time spent per user have shown a consistent upward trendVideo Accounts,Mini Games and Weixin Search enhance user value by creating s

21、eamless connections with products,services andcontent while presenting exciting revenue opportunitiesGenerating high margin revenue streams from own traffic,with platform costs already paid for8Total user time spent more than doubled in2023,propelled by strong growth in DAUand time spent per DAUSurg

22、e in ad revenue fuelled by significantincrease in organic traffic,affluent usersand high conversion,while keeping ad loadmuch lower than industry peersBig user base of over 100 million DAUgrowing at over 20%YoY in 2023Content QV grew over 30%YoY byleveragingourplatformsdistinctivecontent,features,an

23、d servicesRevenue grew multiple times YoY,as wejust started to ramp up on monetisationGross receipts increased over 50%in 2023,driven by DAU and ARPURetention rate and average time spent perDAU significantly outperform peers,due toour highly sticky platform,well-developedecosystem,andadvancedtechnol

24、ogicalinfrastructure for gamesVideo AccountsMini GamesWeixin SearchFinTech Value-added Services Grow Gross Profit with Comprehensive Risk Management9Completed self-inspection and corresponding rectification for Tenpay,with upgraded operational compliance for our payment businessFortified our payment

25、 ecosystem by amplifying user security,upgrading Mini Program-based transactions and SME toolsDeepened cooperations with licensed financial institutions to expand our wealth management and consumer loans services with anunwavering focus on risk managementWork closely with WeBank to offer cash loans

26、at scale whilemaintaining low default ratesAchieved early success in our installment payment serviceswith rapid growth in originated loan balances and lowdefault ratesGenerating high margins on low user acquisition costs andstrong control on credit risksRobust YoY increase in aggregated customer ass

27、ets,driven by growth in users and average investment size peruserFocusedonprovidinghighqualityproductsandconvenience in user experienceKey offerings on our platform are money market funds andlow risk fixed income mutual fundsWealth ManagementConsumer Loans101.Source:QuestMobile,for 4Q232.Source:Data

28、.ai,for 4Q23Enhancement for Top Two Flagship GamesNumber of major hits in China increased from 6 in 2022 to 8(defined as games surpassing average quarterly DAU of 5m formobile/2m for PC,and annual gross receipts of RMB4 billion).We believe these games are already,or are becoming,evergreenhitsFight o

29、f the Golden Spatula:one of the most popular mobilegames in China,ranked top 5 by DAU and total time spent1LoL Wild Rift:ranked top 5 by total time spent1and grossreceipts2Recent Year Releases Steadily Developing into Enduring FranchisesPeacekeeper Elites user base fairly stable,but monetisation has

30、beenunimaginative.Wehavechangedleadershipofmonetisation team;optimistic for revival given PUBG Mobilemonetisation teams experienceHonour of Kings user base stable,overall monetisation healthy.During 2023,monetisation activities were concentrated duringChinese New Year period,which resulted in volati

31、le quarterlyfinancial performance;whereas in 2024,activities will be moredistributed through the yearUpcoming Mobile Titles with High PotentialHighlypopularactionRPG,featuring captivating side-scrollingcombatanduser-friendlydesigntailored for mobile devicesSuccessful closed-beta test sinceFeb,offici

32、al launch scheduled for2Q24Domestic Games Brewing Future Growth via Rejuvenating Top Two Games,Emerging Franchises and New TitlesDnFHonour of FightPvP fighting gamebased on HoKOne PieceStory-drivenfightinggame based on OnePieceNeed for Speed Open-world racinggamebasedonNeed for SpeedTechnology Makin

33、g Long-Term Investment in Growth Multiplier11Upgraded Foundation ModelTop-tierperformanceinChinese,basedoncomprehensive benchmark,particularly in numericalreasoning,logicalinference,andmulti-turnconversationsAchievedtrillion-parametermodelscalethroughMixture of Experts(MoE)architecture,deliveringenh

34、anced performanceDeveloping multi-modal models to bolster our text-to-picture and text-to-video servicesLaunched Use CasesTencent Meeting:deployed new AI Assistant tointerpret meeting content in real-timeTencent Docs:implemented AI features to fosterprompt-based document creation and multifaceteddat

35、a processingEnhancing Content Production Efficiency throughNew GenAI SolutionsSignificant Boost to Advertising BusinessOurupgradedad-targetingmodelisdrivingsignificant revenue growthSubstantial future potential:Continued improvement in targeting technologythrough AIExpanding ad inventory via traffic

36、 growth andincrease in ad load from low baseEmpowerment through Tencent HunyuanADTencent AIAdvancing Cloud Business through New OfferingsTailored Industry Solutions:provide industry-specificLLMs to supercharge efficiency in AI-backed toolsVector Database:industry-leading database solutionfor AI appl

37、icationsTencent HunyuanLeveraging AI TechnologiesCash dividendShare repurchaseDistribution in kind1.91.92.94.14.3 6.3 12.813.3 16.9 FY21FY22FY23FY24E0.3In billion USD785748Gross cashInvestmentsRaising Return of Capital to Shareholders12 Strong free cash flow of USD24 billion,supported by cash-genera

38、tive business model and solid growth Total gross cash amounted to USD57 billion Large investment portfolio of USD126 billion,of which USD78billion were listed investmentsRobust Free Cash Flow and Asset Strength Dividend:proposing cash dividend of HKD3.4 per share,up 42%YoY Share repurchase:committin

39、g to over HKD100 billion for FY24,up over 100%YoY Distribution in kind:made special distribution in FY22 and FY23Raising Return of Capital1.For the year ended 31 Dec2.As at 31 Dec 2023Total return of capital to shareholders1Share repurchase commitment for FY24In billion USDGross cash and investment

40、portfolio2Listed investees fair valueUnlisted investees carrying value126Gross cashRevenue by Segment22%21%21%20%22%21%21%20%21%20%19%18%25%23%24%21%24%24%22%19%23%21%21%18%7%8%8%9%8%8%9%10%9%9%9%9%16%17%16%15%13%14%15%17%14%17%16%19%29%30%30%33%32%32%32%33%32%32%34%35%1%1%1%2%1%1%1%1%1%1%1%1%135.31

41、38.3142.4144.2135.5134.0140.1145.0150.0149.2154.6155.21Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q234Q23Social NetworksDomestic GamesInternational GamesOnline AdvertisingFBSOthersIn billion RMB 1421%19%22%21%9%9%15%17%32%33%1%1%554.6609.0FY2022FY2023Value-Added ServicesIn billion RMB15Social Networks

42、Domestic GamesInternational GamesSocial Networks4Q23 revenue was down 2%YoY.Revenue from music-and games-related live streaming services declined while revenue from VideoAccounts live streaming service,music subscriptions and mini gamesincreasedLong-form video subscription revenue increased 1%YoY,dr

43、iven byhigher ARPU.Video subscriptions declined slightly YoY to 117 million1.Our self-commissioned drama series Blossoms Shanghai ranked#1industry-wide2year-to-date,extending Tencent Videos lead in terms ofmobile DAU3Music subscription revenue increased 45%YoY.Music subscriptionsgrew 21%YoY to 107 m

44、illion4and ARPU was up 20%YoYDomestic Games4Q23 revenue was down 3%YoY,as growth from recently launched hitsVALORANT and Lost Ark was offset by decreases from Honour of Kingsand Peacekeeper EliteInternational Games4Q23 revenue increased 1%YoY,or down 1%in constant currency,asSupercell was reposition

45、ing some of its games;however,PUBG MOBILEextended its recovery and VALORANT sustained solid growth116.9 118.5 123.9 126.7 46.8 53.2 287.6298.4FY2022FY2023+4%YoY+2%+1%+14%28.6 28.2 29.7 28.2 27.9 27.0 32.7 27.0 13.9 13.9 13.3 13.9 70.469.1 75.7 69.1 4Q224Q233Q234Q23-3%-18%-5%+5%-2%YoY+0.6%-2%-9%QoQ1.

46、As of Dec 31,2023 2.Source:Enlightent,by video views across all online platforms in China,Jan 1 March 16,20243.Source:QuestMobile,Jan 1 March 16,20244.The average number of subscriptions as of the last day of each month during 4Q2316Communications&Social NetworksaTotal user time spent increased over

47、 80%YoY in 4Q23,driven partly by DAU and mostly by time spent per user due to enhanced recommendation engineDaily video uploads and creators with 10K+followers grew rapidly YoY with more targeted traffic support for creators in key categoriesand enhanced recommendation algorithms to prioritise origi

48、nal contentNumber of creators that directly generated revenue from Video Accounts more than tripled YoY in 4Q23Video Accounts continued strong momentumFostering interest-based user interactions and engagement with content creators via QQ Channels and QQ groups.Number of activeChannels increased at d

49、ouble-digit rate QoQLaunched QQ 9.0 version with refreshed user interface and enriched functionalities,including personalised display of status andrelationshipsExpanded QQ Channels and launched QQ 9.0 version17Domestic Games1.Source:QuestMobile,for 4Q232.Source:QuestMobile,during CNYFight of the Gol

50、den SpatulaReleaseofSet10andpopularityoflimited-timegame mode drove averageDAU to double YoY in 4Q23to new highBroke into top 5 across allmobile games by averageDAU and total time spent1Arena BreakoutGross receipts and averageDAU increased by over 30%YoY in 4Q23,driven by newcompetitivePvPvEmodes,up

51、graded Battle Pass,andmore appealing virtual itemsRanked#7bytotaltimespent industry-wide1Dream StarsDuringCNY,addednewgame modes,such as 1v4asymmetricalbattlearenaand extraction shooterRankedamongtop10mobile games by averageDAU2Naruto Mobile8-year old in-house gameachievedrecordhighgross receipts an

52、d averageDAUinJan,benefittingfromextensivecontentofferingsincludingthereleaseofhighlyanticipated character andpopular themed eventsPUBG MOBILEDAUandgrossreceiptsincreasedYoYin4Q23,benefitting from Frozen Kingdomthemed mode and innovative top-tier outfit with upgradable weaponInternational GamesBrawl

53、 Stars5-year old game achieved all-time highgross receipts and average DAU inFeb 2024,due to improved friend-invitationsystem,new5v5gamemode,andfullyredesignedBattlePassDemonstrated the franchise value ofevergreen titles to unleash new growth18NIKKE Average DAU achieved year-highlevelin4Q23,duetonew

54、storyline and new characters82.7 101.5 FY2022FY2023+23%YoYIn billion RMB1924.7 29.8 25.7 29.8 4Q224Q233Q234Q23+21%YoY+16%QoQOverall4Q23 revenue grew 21%YoY,primarily driven by Video Accountsand ongoing upgrade of advertising platformAd spend from all categories except automotive increased YoY,withno

55、table step-ups in spending by Internet services,healthcare andconsumer goods categoriesWe strengthened AI-powered ad targeting with real-time data onuser interests and commercial intent,broadly benefitting our own adproperties and mobile ad networkWeixinVideo Accounts ad revenue more than doubled Yo

56、Y on higher click-through rate and impressionsWeixin Search ad revenue rose significantly YoY,driven by stronggrowth in commercial queries and RPMOnline AdvertisingFinTech and Business ServicesFinTech ServicesRevenue sustained teens YoY growth in 4Q23,driven by increased commercialpayment volume,wea

57、lth management fees and consumer loan fees.Gross profitgrew at a higher rate due to shift from social to commercial paymentsWe enhanced Mini Program-based,QR code and palm payment solutions,drivingrepeat sales for offline merchantsBusiness ServicesRevenue grew around 20%YoY in 4Q23 and gross profit

58、more than quadrupled YoY-Cloud services revenue benefitted from restructuring undertaken in priorperiods and higher spending by retail and finance industries-Fees collected on Video Accounts eCommerce transactions contributed high-margin revenueOur SaaS products enhanced functionalities and monetisa

59、tion,including:-Tencent Meeting and Tencent Docs upgraded AI features for real-time contentcomprehension and prompt-based document generation;WeCom enhancedanalytic functionalities to help merchants engage with customers and rolled outa paid customer acquisition tool-Deepened SaaS penetration among

60、domestic and multinational companies-SaaS enterprise productivity toolkit(WeCom,Tencent Meeting,Tencent Docs)revenue more than doubled YoY20In billion RMB+7%QoQ177.1 203.8 FY2022FY2023+15%YoY47.2 54.4 52.0 54.4 4Q224Q233Q234Q23+15%YoY+4%QoQIncome StatementIn billion RMB4Q2023YoYQoQFY2023YoYRevenue15

61、5.2+7%+0.4%609.0+10%COPS(77.6)-7%-0.6%(315.9)StableGross profit77.6+25%+1%293.1+23%Operating expenses(38.2)+14%+12%(137.7)+1%Other gains/(losses),net12.0+158%-2%4.7-41%Operating profit141.4+42%-7%160.1+44%Net gains/(losses)from investments and others1(6.7)N/AN/A(6.1)N/AInterest income13.9+52%+12%13.

62、8+61%Finance costs(3.5)-3%+27%(12.3)+31%Share of profit/(loss)of associates&JVs,net2.4N/A+17%5.8N/AIncome tax expense(9.7)+111%-12%(43.3)+101%Net profit27.8-74%-24%118.0-37%Net profit attributable to equity holders27.0-75%-25%115.2-39%Diluted EPS2 in RMB2.807-74%-25%11.887-39%Non-IFRSOperating Profi

63、t149.1+35%-5%191.9+34%Net profit attributable to equity holders42.7+44%-5%157.7+36%Diluted EPS2 in RMB4.443+46%-5%16.320+38%221.Starting 4Q23,we present investment-related gains/(losses),donations and others(previously within“Other gains/(losses),net”)and interest income below operating profit line

64、to better reflect results of day-to-day operations2.Diluted EPS is calculated using the weighted average number of outstanding shares in the period incl.the dilutive effect of share options and awarded shares as determined under the treasury stock methodNon-IFRS AdjustmentsIn billion RMBIFRS4Q2023SB

65、CNet(gains)/losses from investee companies1Amortisationof intangible assetsImpairment provisions/(reversals)2SSV&CPP3TaxeffectsNon-IFRS4Q2023YoYchangeQoQchangeNon-IFRS FY2023YoY changeOperating profit 41.45.7-1.6-0.4-49.1+35%-5%191.9+34%Net profit27.86.6(0.1)3.05.71.6(0.8)43.8+43%-4%161.7+36%Net pro

66、fit attributable to equity holders 27.06.5(0.1)2.85.71.6(0.8)42.7+44%-5%157.7+36%Operating margin26.7%31.7%+6.6ppt-1.7ppt31.5%+5.7pptNet margin17.9%28.2%+7.1ppt-1.4ppt26.6%+5.1ppt23Note:1.Including net(gains)/losses on deemed disposals/disposals of investee companies,fair value changes arising from

67、investee companies,and other expenses in relation to equity transactions of investee companies.2.Mainly including impairment provisions/(reversals)for associates,joint ventures,goodwill and other intangible assets arising from acquisitions.3.Mainly including donations and expenses incurred for the G

68、roups Sustainable Social Value&Common Prosperity Programme initiatives.45.1 48.8 46.4 42.7 36.7 40.6 46.3 44.2 41.7 48.9 52.3 56.8 Online Advertising(%)55.1 52.9 53.0 48.7 50.4 50.6 51.7 49.8 53.9 54.0 55.5 53.7 Value-added Services(%)Gross Margins32.3 32.0 28.5 27.1 31.6 33.3 33.3 33.6 34.5 38.4 40

69、.9 43.9 1Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q234Q23FinTech and Business Services(%)2446.3 45.4 44.1 40.1 42.1 43.2 44.2 42.6 45.5 47.5 49.5 50.0 Overall Gross Margin(%)43.9 43.1 48.1 52.5 50.6 54.3 45.8 42.3 50.6 29.8 33.0 39.6 FY2021FY2022FY202311.4 10.8 9.8 10.8 4Q224Q233Q234Q23S&Min billion

70、RMBOperating Expenses25R&Din billion RMBG&A(excl.R&D)in billion RMB6.1 11.0 7.9 11.0 4Q224Q233Q234Q2315.9 16.4 16.5 16.4 4Q224Q233Q234Q23Non-IFRSNon-IFRSNon-IFRS29.2 34.2 FY2022FY2023+79%YoY+39%QoQ+17%YoY4Q23 S&M grew by 83%YoY and 43%QoQFY2023 S&M grew by 17%YoY+3%YoY-0.1%QoQ61.4 64.1 FY2022FY2023+

71、4%YoY4Q23 R&D grew by 0.5%YoY or declined by 3%QoQFY2023 R&D grew by 6%YoY4Q23 G&A(excl.R&D)declined by 6%YoY or grew by 11%QoQFY2023 G&A(excl.R&D)declined by 10%YoY-6%YoY+9%QoQ45.3 39.4 FY2022FY2023-13%YoY31.4 28.9 27.3 21.7 25.6 25.2 27.3 25.1 30.0 30.9 33.4 31.7 Non-IFRS Operating Margin(%)25.5 2

72、5.4 22.8 17.9 19.4 21.6 23.8 21.1 22.3 25.9 29.6 28.2 1Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q234Q23Non-IFRS Net Margin(%)Non-IFRS Margin Ratios2627.3 25.8 31.5 22.8 21.5 26.6 FY2021FY2022FY2023In billion RMB4Q2023YoYQoQFY2023YoYOperating CAPEX6.7+253%+1%17.2+69%Non-operating CAPEX0.8-78%-41%6.7-1

73、5%Total CAPEX7.5+33%-6%23.9+33%Operating Cash Flow54.0+52%-17%222.0+52%Less:CAPEX Paid(9.3)+67%+62%(22.7)-7%Payments for media content(7.7)+45%+23%(24.7)-7%Payments for lease liabilities(2.8)+75%+49%(7.6)+10%Free Cash Flow34.2+48%-33%167.0+89%Total Cash403.3+26%+4%403.3+26%Less:Total Debt(348.6)+4%-

74、0.7%(348.6)+4%Net Cash/(Debt)54.7N/A+50%54.7N/ACAPEX,FCF and Cash Position27As at 31 Dec 2023,the fair value of our shareholdings1in listed investee companies(excluding subsidiaries)was RMB551 billion(USD78 billion)and the carrying book value of our shareholdings in unlisted investee companies was R

75、MB337 billion(USD48 billion)1.Including those held via special purpose vehicles,on an attributable basis.In millions20232022YoYIssued shares,at 1 January9,5699,608-0.4%Shares issued for employee share option and share award schemes5562-11%Shares repurchased and cancelled(141)(101)+40%Issued shares,a

76、t 31 December9,4839,569-0.9%Share Repurchase and Annual Dividend281.Diluted EPS is calculated using the weighted average number of outstanding shares in the period including the dilutive effect of share options and awarded shares as determined under the treasury stock methodRepurchased 152 million s

77、hares for a consideration of HKD49 billion to shareholders during FY2023Subject to shareholders approval at the 2024 AGM,proposed 2023 annual dividend of HKD3.40 per share(up 42%YoY)or HKD32 billion for the year ended 31 December 2023Weighted average number of shares for the calculation of diluted EPS1in the period9,6109,695-0.9%