Gaming - Presentation by Dan Brody, Vice President Business Development of Tencent at the NOAH 2014 Conference in London, Old Billingsgate on the 13th of November 2014.

3. Tencent Milestones
Launched
Tencent Mobile
Gaming Platform!
2004.6
1999.21998.11
2000.8
2003.8
2005.5
2010.3
2011.1
2011.6
2003.11
Tencent was
founded !
Launched mobile
value-added
services!
Launched
IM service
QQ !
Launched casual
games portal QQ
game!
Launched web
portal
www.qq.com!
Listed on HK
stock
exchange!
Launched
SNS
platform!
Qzone!
QQ PCU (Peak
Concurrent User)
exceeded 100 million!
Launched open
platform strategy!
Weixin/WeChat
registered user
accounts exceeded
300 million !
2013.1
2013.8
2014.4
Launched
mobile social
communication
service Weixin!
!
QQ PCU
over 200
million
!
!
Weixin/WeChat MAU
over 468 million and
QQ MAU over 820
million
2014.9

4. Corporate
Development
Group
(CDG)
Mobile
Internet Group
(MIG)
Interactive
Entertainment
Group
(IEG)
Online Media
Group
(OMG)
Social Network
Group
(SNG)
Technology
and
Engineering
Group (TEG)
Diversified Online Services
WeChat Group
(WXG)

5. China Overview
800
600
400
160
510
719
200
0
14Q1
698
496
154
13Q4
645
445
161
13Q3
576
386
150
13Q2
480
322
130
13Q1
399
267
108
14Q2
Android
Others
iOS
220
600
500
400
300
200
100
0
2014E
510
367
135
2013
390
118
2012
254
Others
Android
iOS
China Smartphone Device
(2013Q1-2014Q2, M)
Source：iResearch, iiMedia, CNNIC, Tencent Analysis
China Mobile Game User Base
(2012-2014E, M)
710
590
290
800
600
400
200
0
2014E20132012
China Mobile Internet User Base
(2012-2014E, M)
5,000
469
4,000
3,000
2012
2,000
1,000 640
0
2014E
327
163
3,607
2,480
1,078
2013
1,475
938
Others
Android
iOS
China Mobile Game Market Size
(2012-2014E, M)

6. Fragmented Devices & Complex Network Environment
Requires More Work by Game Developers
Mobile Phone Hardware Specs
2013-14
China Network Usage
2014
0
20
40
60
80
100%
C hina
Low End
20%
M id R ange
45%
H igh End
35%
0%
17%
22%
61%
4G3G2GWiFi
Mobile Phone Hardware by Brand
2013-14
0
20
40
60
80
100%
C hina
A pple 19%
Sam sung 16%
Lenovo 11%
C oolpad 10%
H uaw ei9%
Xiaom i6%
H TC 5%
Z TE 4%
O P P O 4%
O thers 16%
Source：iResearch

7. Chinese Gamers are Becoming More Mature
0%
10%
20%
30%
4h+2h-4h1h-2h30min-
1h
20-30
min
10-20
min
1-10min
Average Time Spent on Mobile Games Daily
2014Q1
28%
23%
13%
9%
0%
10%
20%
30%
40%
2013Q42013Q32013Q22013Q1
% of Users Spending More than 1 hour per day
25%
62%
89%
8%
23%
41%
At least 10
At least 5
At least 3
2013Q12013Q4
% of Users Playing Different GamesMonthly Pay Rate for Mobile Games
0%
2%
4%
6%
Oct-
13
Sep-
13
Aug-
13
Apr-
14
Mar-
14
Feb-
14
Jan-
14
Dec-
13
Nov-
13
Source：Umeng, Tencent Analysis

8. Tencent Mobile Games Platform Milestone
Tencent Mobile Games
Platform Strategy
Announced
2013.5
First Game Launched o
n Tencent Mobile
Games Platform
2013.8
100 Million
Registered Users
2013.9
Tencent Mobile Games
Platform became the
Largest Distribution
Channel in China and
MyApp 4.0 Launched
2014.1
35 Games and
Continuing
Now
500 Million
Registered Users
2014.4

9. Tencent Mobile Platform Performance
Top Spot on iOS Download Chart Top Spot on iOS Download and
Grossing Chart
7 out of 10
Top Grossing Mobile Games from Tencent
4.8 Billion
Tencent Mobile Games Revenue 2014H1
19 Games 9 Games
Source: App Annie 2014Q2

10. China Mobile Game Market Monthly Revenue
and Tencent Proportion
Rapid Growth Opportunities in the China Market
>50M
>30M
>10M
>5M
WeFight WeChat Dash WeFly
Thunder
Fighter
WeChat Speed
We HeroesWater Margin WeTown
Top China Mobile Games by Average
Monthly Revenue
2013-14
DOTA
Legend
SanGuo
Unleashed
Boom Beach Gedou
Jianghu
Sword of
God
Mini Journey
to the West
49%49%50%55%
60%
53%55%
49%
2014
07
2014
06
2014
05
2014
04
2014
03
2014
02
2014
09
Tencent
Action RPG
Casual &
Puzzle Strategy
Tencent Non-Tencent
2014
08
Others
Source: Tencent Analysis

11. 0
300
600
900
1,200
1,500
1,800
2,100
Tencent SNDA Netease GA Cyou PWRD
Strengthening Competitive Advantages
(USD in millions)
Revenue of Top Game Companies in China
(2008Q1-2014Q2)
Source: Company Annual Report & Newzoo report
66
83
138150
191
243
375
0
100
200
300
400
Market Capitalizations of Largest Internet
Companies October 2014
EbayBaiduTencentFacebookGoogle AmazonAlibaba
(USD in billions)
$2.5
$2.2
$2.4
$1.7
$2.0
$1.1
$0.7 $0.7 $0.7 $0.8
$3.5
$2.3
$2.1 $2.0 $2.0 $1.9
$1.4
$1.2
$0.9 $0.8
Tencent EA Activision
Blizzard
Sony Microsoft Apple Google King GungHo Nexon
Comparison of Top 10 Public Companies by H1 2014
and H1 2013 Game Revenues ($Bn)
H1 2013
H1 2014

12. Coverage of Massive User Base
One-stop Payment Solution
Social Marketing
Analytics and
Fine-tuned Operations
Key Capabilities in Mobile Publishing
Security Solution

13. Mobile Platform
PC Platform
Unparalleled Platform Resources
of the Platforms has over 10 million DAU 10 million

14. Social Network Matters
40%
50%
60%
70%
80%
90%
Number of in-game friends
Next Day Retention Rate
6
7
8
9
10
11
12
13
Number of in-game Friends
Number of Sessions Played per Day
Number of Sessions Played for WeChat DashRetention Rate We Heroes
Market Average 42% Market Average 6.6
Source: Tencent Analysis

15. Analytics for Game Operations
Tutorial
Leveling
PVP
Social
Fine-tuned
Operations
Experience
Monetization
Targeted
Marketing
Visuals
Tencent
Analytics
User Behavior
Data

16. Offline Locations
• Support cash top-up at
1. Convenient stores
2. Supermarkets
3. Post Offices
4. Door-to-door top-up
service
One-Stop Payment Solution
Pre-paid Cards
• Pre-paid QQ/Mobile top-
up card available at
newsstands,
bookstores, computer
stores, online etc.
Easy Mobile Payment
• One-click payment for WeChat
users
• QR Code payment reduces
steps needed
• Card reader for additional ease
Supports over 25 ebanking services
Ebanking
Online Payment Solution Offline Payment Solution
QQ Coins
(The most used virtual currency in China)

17. Security and Back-End Supports
• 200 people team to prevent games from hacking and Trojan, and to protect user's
account security and virtual currency
• On a company level we provide multi-level, multi-dimensional real-time and offline
security analysis
• Product security, information security, and operational security
• Proprietary Tencent Protect System with 10 years of experience in anti-hack
Resource
Isolation
Security
Enforcement
Network Security
Data Security
Account
Security
TenProtect System

18. Case Studies: Thunder Fighter and WeChat Dash
• Launched in China March 2014
• Top 5 game since launch
• DAU 10+M
• Key Success Factors
− Unique gameplay (Shooting & RPG)
− Outstanding optimization (UI,
monetization, constellation and tutorial)
• Launched in China September 2013
• Top grossing action and casual game since
launch, consecutively for 5 months
• DAU 70+M
• Key Success Factors
− New game modes
− Increase monetization
− Easy controls but hard to master

19. Case Studies: Candy Crush and WeQuiz
• Launched in China August 2014
• DAU 4+M
• Key Success Factors
− Outstanding game quality
− Logical localization
− Multifaceted monetization
− Celebrity effect
• Plan to launch in China November 24th, 2014
• Key Factors
− Outstanding game quality
− Excellent developing team
− Logical localization
− Strong social features
− Multifaceted marketing promotion

20. Case Studies: Blade & Soul and League of Legends
• Launched in China Nov 2013
• PCU: 1.7M
• MAU: 7+M
• Key Success Factors:
– Localized game contents
– Economy system backed by analytics
– Strong user community
• Launched in China Sep 2011
• PCU: 5M
• MAU: 40+M
• Key Success Factors
– Back-end infrastructure to support massive
user-base
– Monetization system and seasonal
promotions
– E-sports and tournaments

21. Together, We Can Make Wonders!