Tencent Report 2018

Matthew Brennan Reports

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Tencent Report 2018 Slide 1

TENCENT REPORT A SHORT INTRODUCTION TO ASIA’S MOST IMPORTANT AND LEAST UNDERSTOOD INTERNET COMPANY PREPARED BY: MATTHEW BRENNAN & SAMIN SHA

Tencent Report 2018 Slide 1

MATTHEW BRENNAN CO-FOUNDER OF CHINA CHANNEL MATTHEW IS A REGULAR KEY NOTE SPEAKER ON THE TOPIC OF TENCENT AND WECHAT. HE WORKS PRIMARILY WITH INTERNATIONAL BUSINESSES HELPING TO FORM AND IMPLEMENT THEIR WECHAT PLATFORM STRATEGY THROUGH TRAINING, WORKSHOPS, COACHING. MATTHEW IS A FLUENT MANDARIN SPEAKER AND HOLDS 13+ YEARS ON THE GROUND ENTREPRENEURIAL EXPERIENCE IN CHINA. HIS COMPANY ORGANIZES CHINA’S LARGEST WECHAT MARKETING CONFERENCE SERIES FOR INTERNATIONAL COMPANIES. PARTS OF THIS REPORT ARE ADAPTED FROM KEYNOTE SPEECHES DELIVERED BY MATTHEW BRENNAN AT THE ALSMA APAC REGIONAL CONFERENCE, NOV 2017 SIEM REAP & THE MADE BY CHINA CONFERENCE, DECEMBER 2017 COPENHAGEN.

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INTRODUCTION THIS SHORT REPORT AIMS TO LAYOUT THE BASICS OF TENCENT’S STRUCTURE AND SOME DETAIL ON THEIR HIGHER MANAGEMENT AND FINANCIALS. I HAVE PUT IT ALL TOGETHER AS A RESOURCE TO HELP INVESTORS AND TECH INDUSTRY WATCHERS BETTER UNDERSTAND ASIA’S LARGEST TECH GIANT.

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GROUP STRUCTURE 7 CORE GROUPS

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TENCENT’S 7 CORE BUSINESS GROUPS

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IEG: INTERACTIVE ENTERTAINMENT GROUP, HEAD: MARK REN @TENCENT SINCE 2000 FOUNDED AUG 2003, CURRENTLY CONTRIBUTES AROUND 41% OF ALL REVENUE FOUNDED MAR 2012

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OMG: ONLINE MEDIA GROUP KEY DIVISIONS + PRODUCTS HEAD: MARK REN TOOK OVER OMG IN MAR 2017 FOUNDED AUG 2003

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MIG: MOBILE INTERNET GROUP KEY DIVISIONS + PRODUCTS HEAD: MARK REN TOOK OVER MIG IN JAN 2013

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SNG: SOCIAL NETWORK GROUP KEY DIVISIONS + PRODUCTS HEAD: DOWSON TONG @TENCENT SINCE 2005 THE ORIGINAL TENCENT PRODUCT. THE INSTANT MESSENGER THAT STARTED IT ALL

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CDG: CORPORATE DEVELOPMENT GROUP KEY DIVISIONS + PRODUCTS

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WXG: WEIXIN (WECHAT) GROUP KEY DIVISIONS + PRODUCTS WECHAT

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TEG: TECHNOLOGY & ENGINEERING GROUP KEY DIVISIONS + PRODUCTS

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TENCENT EMPLOYEES WECHAT TEAM ALL STAFF THERE ARE ALMOST HALF A MILLION ACTIVE WECHAT USERS FOR EVERY SINGLE STAFF MEMBER ON THE WECHAT TEAM!

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MANAGERIAL TALENT BOYS CLUB ONLY

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ALLEN ZHANG (张小龙), FOUNDER OF WECHAT DOWSON TONG, SENIOR EXECUTIVE VP (汤道生) JAMES MITCHELL CHIEF STRATEGY OFFICER MARK REN COO OF TENCENT, IMARK REN (任宇昕) PONY MA CEO OF TENCENT (马化腾) MARTIN LAU PRESIDENT OF TENCENT (刘炽平) SOME WHITE GUY. NOT SURE WHO HE IS 😉 TENCENT HIGHER MANAGEMENT TEAM AT CUPERTINO AUG 2017

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PONY MA马化腾 CO-FOUNDER & CEO

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MARTIN LAU 刘炽平 PRESIDENT

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MARK REN 任宇昕 CHIEF OPERATING OFFICER

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JAMES MITCHELL CHIEF STRATEGY OFFICER & SENIOR EXECUTIVE VP

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ALLEN ZHANG 张小龙 “THE FATHER OF WECHAT” SENIOR EXECUTIVE VP

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S Y LAU 刘胜义 SENIOR EXECUTIVE VP, CHAIRMAN OF TENCENT ADVERTISING

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OTHER KEY HIGHER MANAGEMENT

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WANG XING CEO OF MEITUAN DIANPING (王兴) RICHARD LIU FOUNDER OF JD (刘强东) ZHANG LEI FOUNDER OF HILLHOUSE CAPITAL (张磊) SU HUA FOUNDER & CEO OF KUAI (宿华) ZHANG YIMING CEO OF TOUTIAO (张一鸣) CHENG WEI, FOUNDER & CEO OF DIDI CHUXING (程维) LEI JUN FOUNDER OF XIAOMI (雷军) NEIL SHEN SEQUOIA CAPITAL GLOBAL MANAGING PARTNER (沈南鹏) DAVIS WANG CEO & CO-FOUNDER OF MOBIKE (王晓峰) WANG HUIWEN SENIOR VP OF MEITUAN DIANPING (王慧文) ZHOU YUAN FOUNDER OF ZHIHU (周源) YAO JINBO CEO OF 58.COM (姚劲波) ALLEN ZHU PARTNER, GSR VENTURES (朱啸虎) CHEN SHENGQIANG CEO OF JD FINANCIAL (陈生强) YANG YUANQING CEO OF LENOVO (杨元庆) PONY MA CO-FOUNDER & CEO TENCENT (马化腾)

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TENCENT & ALIBABA: SOME KEY AREAS OF COMPETITION

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TENCENT’S 2018 RETAIL INVESTMENT BLITZKRIEG LAYING THE FOUNDATIONS FOR SMART RETAIL

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OTHERS REVENUE & LOCATIONS

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TENCENT 2017 Q3 REVENUE

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REVENUE SEGMENTS MATCHED LOOSELY TO BUSINESS GROUPS

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APPLE AMAZON GOOGLE MICROSOFT FACEBOOK TENCENT ALIBABA REVENUE COMPARISON Q3 2017 BILLION USD

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PROFIT COMPARISON Q3 2017 BILLION USD YEARLY INCREASE

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TENCENT REVENUE, PROFIT & COST OF REVENUE PAST 9 QUARTERS MILLION RMB

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KEY PRODUCT INTRODUCTION: QQ MESSAGING FOR CHINA’S YOUTH QQ IS THE ORIGINAL TENCENT SOCIAL PLATFORM.

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KEY PRODUCT INTRODUCTION: WECHAT THE 900 POUND GORILLA OF CHINA’S INTERNET WECHAT IS CHINA’S MOST FAMOUS INTERNET PRODUCT BY FAR AND WITH GOOD REASON.

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WECHAT & QQ MONTHLY ACTIVE USERS QUARTERLY GROWTH OVER LAST 4 YEARS MONTHLY ACTIVE USERS (MILLIONS)

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1998 TENCENT WAS FOUNDED IN THIS SMALL ROOM IN SHENZHEN. NOV 11TH IS NOT ONLY THE DATE OF CHINA’S LARGEST SHOPPING FESTIVAL, IT ALSO HAPPENS TO BE THE BIRTHDAY OF TENCENT. ON NOVEMBER 11TH 1998

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2009 FOR THE PAST 9 YEARS THE TENCENT BUILDING IN CENTRAL SHENZHEN WITH IT’S DISTINCTIVE PENGUIN LOGO ATOP HAS BEEN THE HEAD QUARTERS. COMPLETED: AUG 2009 SIZE: 88,180 SQUARE METERS HEIGHT: 193 METERS (39 FLOORS)

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2018 TENCENT IS IN THE PROCESS OF MOVING HEAD OFFICES TO A NEW MORE MODERN, LARGER BUILDING: BINHAI MANSION COMPLETED: LATE 2017 SIZE: 345,570 SQUARE METERS HEIGHT: 248 METERS (50 FLOORS)

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GUANGZHOU IS WHERE THE WECHAT TEAM ARE BASED. THE OFFICES ARE LOW KEY SITUATED IN A LEAFY INNOVATION PARK

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PALO ALTO IS THE RELATIVELY SMALL, MORE LAID BACK U.S. HEADQUARTERS

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CHINA KEY TENCENT OFFICE LOCATIONS BEIJING CHENGDU (GAMING, HONOR OF KINGS) SHANGHAI GUANGZHOU (WECHAT) SHENZHEN (HEAD QUARTERS) BELLEVUE (A.I. LABS) PALO ALTO (U.S HEAD OFFICE) THE U.S

Tencent Report 2018 Slide 1

MATTHEW BRENNAN CO-FOUNDER OF CHINA CHANNEL MATTHEW IS A REGULAR KEY NOTE SPEAKER ON THE TOPIC OF TENCENT AND WECHAT. HE WORKS PRIMARILY WITH INTERNATIONAL BUSINESSES HELPING TO FORM AND IMPLEMENT THEIR WECHAT PLATFORM STRATEGY THROUGH TRAINING, WORKSHOPS, COACHING. MATTHEW IS A FLUENT MANDARIN SPEAKER AND HOLDS 13+ YEARS ON THE GROUND ENTREPRENEURIAL EXPERIENCE IN CHINA. HIS COMPANY ORGANIZES CHINA’S LARGEST WECHAT MARKETING CONFERENCE SERIES FOR INTERNATIONAL COMPANIES. PARTS OF THIS REPORT ARE ADAPTED FROM KEYNOTE SPEECHES DELIVERED BY MATTHEW BRENNAN AT THE ALSMA APAC REGIONAL CONFERENCE, NOV 2017 SIEM REAP & THE MADE BY CHINA CONFERENCE, DECEMBER 2017 COPENHAGEN.

Tencent Report 2018 Slide 1

TENCENT REPORT A SHORT INTRODUCTION TO ASIA’S MOST IMPORTANT AND LEAST UNDERSTOOD INTERNET COMPANY PREPARED BY: MATTHEW BRENNAN & SAMIN SHA

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