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Tencent Music Entertainment Group Investor Presentation (NYSE: TME & HKEX: 1698) November 2025
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Disclaimer 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
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01 COMPANY OVERVIEW
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Relentless Commitment to the Healthy Development of China’s Online Music Industry 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 TME online music paying users (mm) TME online music paying ratio High-quality content and services continuously driving paying user loyalty 4Note: 1. Paying ratio is calculated by dividing the number of online music paying users by online music MAUs. 22.8% 125.7 1
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Our Dual Engine Content-and-Platform Strategy 5 Users Watch Sing Listen Discover Perform Socialize Monetization Unique user experience Enrich content offerings Empower creation and distribution Platform Content TME Live QQ Music Lazy Audio Kugou Music WeSing Kuwo Music Online Music Online KaraokeLive Streaming Long-form Audio Concert Reach Monetization Copyright Protection Empower Creation Technology Content Provider Create Endless Possibilities with Music and Technology
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All-in-one Online Music and Audio Entertainment Destination 6 Proprietary Technology Large User Base Innovative Product Matrix Comprehensive Content Library Diversified Monetization All-around suite of music and audio entertainment products and services Online Music Kugou Music QQ Music Kuwo Music Online Karaoke Kugou Changchang WeSing Live Streaming Kuwo Live Kugou Live Long-form Audio Lazy Audio Live Events TME Live Original Content Musician Platform Tencent Musician Platform Virtual Fan-artist Community Venus Music Assistant Producer Studio Penguin Starlight Island
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Leading Online Music and Audio Entertainment Platform in China Note: 1. Three out of top five music mobile apps in terms of mobile MAUs in 2024; 2. In 3Q2025. For the definitions of the cited ke y operating metrics, please refer to the introduction section in the Company‘s 2024 20 -F filed on April 23, 2025. Beginning in the first quarter of 2023, “online music MAUs” includes unique mobile and certain IoT 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) in cludes 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; “Online music monthly ARPPU” for any given period refers to the monthly average of ( i) the subscription revenues of online music services for that period divided by (ii) the number of paying users of online music services for that period. 3. As of December 31, 2024; 4. As of September 30, 2025; 5. Last twelve months as of September 30, 2025. Extensive Content Strong Monetization RMB31.7bn LTM 20255 total revenues RMB36.08bn Total cash, cash equivalents, term deposits and short-term investments4 30.7% LTM 20255 adj. net margin Leading Platform 3 out of Top 5 Music mobile apps in China1 High-quality Growth 125.7mm Online music subscribers2 5.6% YoY growth World record in the MIREX song prediction technology competition Innovative Technology Winner of the world-renowned MIREX global song recognition technology competition 7 260mm+ Total music & audio tracks3 580K+ Number of indie musicians3 551mm Online music MAUs2 RMB11.9 Online music monthly ARPPU2 10.2% YoY growth
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02 BUSINESS OVERVIEW
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Our Content: Most Comprehensive Music Library in China 9 Note: 1. As of December 31, 2024. Tencent Musician Platform Promotional Capabilities Labels Leading music library with diversified genres Hundreds of domestic and international music label partners1 with 260mm+ music and audio tracks1 Head-start period partnerships with top domestic and overseas labels and artists Various trendy genres across diverse languages including Chinese ancient style, Hip-hop, J-POP, K-POP, C-POP, ACG, EDM; and diverse music verticals such as gaming, classical, and electronic music Weixin Video Accounts Tencent Video The Treasured Voice Season 6 Billboard Advanced technology-driven production capabilities Proprietary technology and deep understanding of music trends to systematically and efficiently create, evaluate and promote music Iconic IP cooperation across various entertainment verticals at home and abroad; and innovative approaches to content co-production with top musicians and partners Robust LLM capabilities with inhouse and other leading models like DeepSeek, AIGC tools & a full-suite of resources and services to bring novel experience to users and invigorate their passion for music creation Content Production Broader Tencent EcosystemIn-house Studios Largest Dolby Atmos music library, offering users a more immersive listening experience, available on mobile, in-car, and PC platforms. Innovative digital album offerings with distinguished fan-artist interaction benefits and creative sales models COPDD Cultivate and empower indie musicians & original music Rich variety of creation scenarios and opportunities to explore social and cultural values through music One-stop platform with proprietary IPs to empower musicians with comprehensive resources and services & holistic support ranging from album production, online and offline promotions to diverse monetization avenues More expansive and vibrant musician ecosystem co-built with Weixin to widen artists’ exposure Integrated internal and external promotion resources Varied promotional channels including variety shows, films, videos, performance events like sponsored music festivals, short video platforms and social media channels Broader Tencent ecosystem for music promotion Utilize LLMs & industry-pioneered licensed AI features to enhance promotion, distribution and copyright protection Proven capabilities to stage large-scale concert tours across both domestic and international markets My Odyssey Atlas of Tomorrow THE LYCHEE ROAD OST Shining Summer *Lucid*
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Our Platform: Listen, Watch, Sing and Play 10 51.7 71.2 85.3 103.0 119.0 125.7 8.0% 11.2% 14.5% 17.3% 20.7% 22.8% 3Q20 3Q21 3Q22 3Q23 3Q24 3Q25 Online music paying users (mm) Paying ratio Watch Makes music content more visually memorable Play New ways to interact & fun personalized features to explore Product matrix + multi-pronged membership offerings cater to the varying needs of music consumers SVIP penetration and ARPPU: improved through superior streaming experience and enriched artist- related benefits Music subscriptions exhibit robust growth momentum and potential 3Q25 Online music paying users and paying ratio 125.7mm 22.8% TME platform hosted various offline concerts, with enhanced capabilities in large- scale international concert production Vocal Producer KK Show Virtual karaoke rooms to sing & chat with friends Leading online karaoke social community with enriched real-time interaction scenarios & recording and singing optimization features to offer unique and engaging experience Innovative virtual fan- artist community empowers users to express their feelings for artists and music AI music companion: Xiaoqin, along with other specific virtual DJs for each genre, brings interactive and fun experiences with newly added music recommendation feature Sing From singing to multi- dimensional performance Listen Innovative and nimble features to elevate listening experience Sound optimization feature bubble on QQ Music allows users to engage directly with hundreds of K-pop and C-pop artists The inaugural TIMA 20k+ attendees 15mm+ SVIP subscribers 1 Note: 1. As of June 30, 2025. Super VIP: expansive privileges fuel SVIP membership growth Offline exhibitions and pop- up stores offer fans with tangible connections to artists Enhanced in-car experiences with premium sound effects and personalized on-demand features like AI vocal extraction and healing music playlists Digital albums Premium sound quality AI Chorus feature TMEA 2025 10k+ attendees G-DRAGON Concert Tour Hosted 14 sold-out shows Drew 150k+ attendees
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Our Industry-leading Technology Listening / watching / download history Favorite songs / artists / genres Likes / shares / comments Digital album purchases Locations Bullet chats Virtual gifting activity Saved playlists Feed browsing activity 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. Industry- leading Technology Data Value PropositionsTechnology Superior Sound Quality and Effects Optimized sound quality and effects : Dolby Surround Sound, Adaptive Sound Adjustment, etc. Data Analytics and Prediction Algorithms and multi-dimensional data insights, recommending music based on users’ music tastes Targeted promotion system based on real-time data analysis, helping artists and songs reach the right audience Song Recognition Identify songs by playing song track samples or short videos Facilitate user content discovery and searching Award-winning technology: winner of MIREX1 2020 global song recognition technology competition; New world record in MIREX 2020 song prediction technology competition AI Capabilities & AIGC Tools AI reading, AI-powered audio effects & AI voice extraction technologies Proprietary sound effects: panoramic, DJ mode, super bass, acoustic clear voice, 4D vibe, Viper Panoramic Surround Sound, Viper External Amplification Enhancement, VIPER HiFi, One -Click Audio Enhancement 2.0 Proprietary PDM predictive model at each key stage of the music production process, enabling creators to quickly make decisions 11 Lingyin Engine and LyraSinger Engine : patented AI-based voice synthesis technology Muse Engine: enable automated large- scale music poster production Virtual performers: LUCY (鹿晓希), Xiaoqin (小琴), Shanbao (扇宝) and Anko (安可) Venus: introduced zero-shot AI-powered music production tool AIGC-empowered virtual gifts and functions for live streaming Vocal Producer: create AI -generated music content in multiple languages QQ Music’s Quick Listen mode: chorus- focused content discovery feature Kugou Music 12.0: featuring fast discovery of multiple song covers LLMs to better distribute new songs, and increase promotion accuracy Lite Listening Mode: AI-enhanced SQ Lite Mode Premium Sound series: Premium Master Tape, Premium Panoramic Sound 2.0, Viper Ultra Sound 2.0, DTS Booming External Speaker
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Strong growth of online music paying users driven by premium content and services Subscription Our Diverse Monetization Opportunities Premium Membership Advertising Sponsored music events 12 Multi-faceted Models Digital albums …continue to innovate service models Artist merchandise Super VIP Membership Long-form audio Copyright licensing Mobile IoT Innovative and Diverse Ad Formats Incentive ads Live events Freemium mode Ads Membership
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Music-centric Live Streaming For Live Streamers Talent discovery Curation and promotion Private domain Music career path Connect and interact with fans Leading music-centric live streaming platform in collaboration with online music services Overseas Presence For Users Diversified categories Leading technologies Community & interest groups Healthy content Organic Traffic Music Content Enrichment Artist Discovery Monetization Collaboration with Music Music-centric Live Streaming Kugou Live Kuwo Live QQ Music Live Virtual Interactive Offerings 13 ✓ Localize online karaoke services based on successful domestic operational experiences ✓ ROI-focused operational strategy ✓ Virtual idol cultivation and AI companion creation ✓ AIGC-empowered features, e.g. WeSing’s AI singing and sing-along
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03 FINANCIAL HIGHLIGHTS
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3Q25 Gross margin 3Q25 Non-IFRS net profit Profitability 3Q25 Online music monthly ARPPU 3Q25 Revenue from online music services Monetization Strong Monetization and Profitability Note: Numbers may not add up due to rounding. 15 RMB11.9 10.2% YoY+ RMB6.97bn 27.2% YoY+ 43.5% 0.9ppt YoY+ RMB2.48bn 27.7% YoY+ RMB4.50bn 17.2% YoY+ Revenue from music subscriptions RMB2.47bn 50.6% YoY+ Revenue from other online music services
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Total Revenues Robust online music revenue performance Diverse Revenue Streams and Healthier Revenue Mix (RMB mm) 16 3,842 4,030 4,216 4,378 4,502 1,638 1,801 1,588 2,476 2,467 5,480 5,831 5,804 6,854 6,969 3Q24 4Q24 1Q25 2Q25 3Q25 Subscription Other online music services 10.8 11.1 11.4 11.7 11.9 20.7% 21.8% 22.1% 22.5% 22.8% 8 9 9 10 10 11 11 12 12 13 3Q24 4Q24 1Q25 2Q25 3Q25 Online music ARPPU (RMB) Paying ratio Subscription as a key growth driver Online Music Revenues (RMB mm) 5,480 5,831 5,804 6,854 6,969 1,535 1,627 1,552 1,588 1,494 7,015 7,458 7,356 8,442 8,463 78% 78% 79% 81% 82% 1 1 1 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 3Q24 4Q24 1Q25 2Q25 3Q25 Social entertainment services and others Online music services Online music services as % of total revenues
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2,991 3,253 3,242 3,749 3,682 42.6% 43.6% 44.1% 44.4% 43.5% 3Q24 4Q24 1Q25 2Q25 3Q25 Gross profit Gross margin Expanded Gross Margin and Healthy Profitability 17 (RMB mm) Gross profit and margin 1,940 2,399 2,226 2,640 2,477 27.7% 32.2% 30.3% 31.3% 29.3% 3Q24 4Q24 1Q25 2Q25 3Q25 Non-IFRS net profit Non-IFRS net margin Non-IFRS net profit1 and margin (RMB mm) Note: 1. For non-IFRS net profit, please refer to the appendix for reconciliation details.
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Solid Cash Position and Valuable Investment Note: 1. As of September 30, 2025; 2. In 3Q2025. Strong cash position & cash generation ability Equity investments 18 Cash, cash equivalents, term deposits and short-term investments1 Operating cash flow2 Financial assets at fair value through other comprehensive income1 Investments accounted for using equity method1 RMB36.08bn RMB3.68bn RMB30.94bn RMB1.86bn Share count ADSs used in computing diluted earnings per ADS2 1.56bn
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Unaudited Non-IFRS Financial Measure Appendix 19 TENCENT MUSIC ENTERTAINMENT GROUP UNAUDITED NON-IFRS FINANCIAL MEASURE 2024 2024 RMB RMB US$ RMB RMB US$ Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Profit for the period 1,709 2,212 311 5,033 9,067 1,274 Adjustments: Amortization of intangible and other assets arising from business acquisitions or combinations* 109 97 14 330 291 41 Share-based compensation 168 211 30 525 519 73 Losses/(Gains) from investments** - 14 2 16 (2,363) (332) Income tax effects*** (46) (57) (8) (167) (171) (24) Non-IFRS Net Profit 1,940 2,477 348 5,737 7,343 1,031 Attributable to: Equity holders of the Company 1,814 2,405 338 5,391 7,103 998 Non-controlling interests 126 72 10 346 240 34 Earnings per share for Class A and Class B ordinary shares Basic 0.59 0.78 0.11 1.75 2.32 0.33 Diluted 0.58 0.77 0.11 1.72 2.29 0.32 Earnings per ADS (2 Class A shares equal to 1 ADS) Basic 1.17 1.56 0.22 3.49 4.64 0.65 Diluted 1.16 1.54 0.22 3.44 4.58 0.64 Shares used in earnings per Class A and Class B ordinary share computation: Basic 3,092,300,590 3,074,517,375 3,074,517,375 3,087,337,746 3,063,014,206 3,063,014,206 Diluted 3,134,713,201 3,118,471,326 3,118,471,326 3,132,654,290 3,102,872,454 3,102,872,454 ADS used in earnings per ADS computation Basic 1,546,150,295 1,537,258,688 1,537,258,688 1,543,668,873 1,531,507,103 1,531,507,103 Diluted 1,567,356,601 1,559,235,663 1,559,235,663 1,566,327,145 1,551,436,227 1,551,436,227 *** Represents the income tax effects of Non-IFRS adjustments. * 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 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/losses 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. 2025 Three Months Ended September 30 (in millions, except per share data) Nine Months Ended September 30 2025 (in millions, except per share data)
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Contact Us ir@tencentmusic.com https://ir.tencentmusic.com THANK YOU!