Slide 1: Opera Software Fourth quarter 2008
Opera Software Fourth q quarter 2008
Slide 2: A note from our lawyers
A note from our lawyers 2 This presentation contains and is, i.a., based on forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results
Slide 3: Agenda
3 Agenda 1. Highlights Erik Harrell, Harrell CFO/COO 2. Financial review Erik Harrell, CFO/COO 3. Operational update Business, Consumer Jon S. von Tetzchner, CEO 4. Q&A
Slide 4: Operational highlights: 4Q08 + YTD 2009
4 Operational highlights: 4Q08 + YTD 2009 Priority Overview Areas Operators Vodafone signed Global Frame Agreement with Opera across multiple product categories and geographies Introduced Opera p Turbo – targeted g at operators p and OEMs Opera Mobile and Opera Widgets on KDDI's new mobile phone lin
Slide 5: 2008 Financial highlights
4Q08 financial review 5 2008 Financial highlights Priorities 4Q status report 2008 status report Revenue MNOK 157.0 (+69% vs 4Q07) MNOK 497.1 (+58% vs. 2007) EBITDA* MNOK 35.7 (MNOK 12.2 in MNOK 98.0 ( vs. MNOK 25.8 FY2007) 4Q07) Operating MNOK 69.0 (MNOK 5.3 in 4Q07) MNOK 149.7 ( vs. MNOK 38.9 FY20
Slide 6: Financial Review
Financial Review PE! Oop
Slide 7: 4Q08 financial review
4Q08 financial review 7 MNOK 4Q 2008 4Q 2007 Q on Q 2008 2007 08 vs 07 Desktop + 41.9 19.3 117% 116.3 67.1 73% Internet Devices + 115.0 73.7 56% 380.8 248.4 53% Total revenue = 157.0 93.0 69% 497.1 315.5 58% Payroll and related 88.0 58.5 50% 296.5 215.1 38% expenses - Stock option costs - 2.3 1.1 11
Slide 8: Key financial figures
4Q08 financial review 8 K financial Key fi i l figures fi Operating revenues (NOK Million) EBITDA* (Non-IFRS) (NOK Million) 160 157 140 35 36 120 125 25 26 113 100 103 21 93 80 15 82 16 75 12 12 60 65 10 61 7 5 52 53 5 48 8 48 8 -1 1 40 3 -2 -1 1 3 40 38 -2 -3 2 30 28 -5 -6 20 25 -5 22 23 -12 0 Q1 Q
Slide 9: Revenues: 4Q08
4Q08 financial review 9 Revenues: 4Q08 Area Comments: Revenues (vs. (vs 4Q07) Business Operators: Strong growth in Opera Mini license revenue, driven by operator active user growth Mobile and Device OEMs: Large increase in revenue from existing and new customers Consumer Opera Desktop: User growth u
Slide 10: OPEX development
4Q08 financial review 10 OPEX development d l t OPEX (NOK Million) Payroll Stock Options Depreciation Other OPEX Non recurring costs OPEX comments 4Q08 vs 4Q07 140 • Payroll cost up 50% • Headcount growth worldwide of 38% 120 since 4Q07 • Expect quarterly payroll cost/head to 100 be slightly higher
Slide 11: EBITDA development
4Q08 financial review 11 EBITDA d development l t 4Q 2007 / 4Q 2008 (NOK Million) 80,0 Comments on EBITDA development YoY* 70,0 Revenues up MNOK 64.0 60,0 ! Desktop + MNOK 22.6 ! Internet Devices + MNOK 41.3 50,0 Payroll and related expenses up 40,0 MNOK 29.5 ! Engineering 30,0 ! Sales and Marketing
Slide 12: Strong capital structure
4Q08 financial review 12 St Strong capital it l structure t t Balance sheet (MNOK) Balance sheet highlights g g 900 800 Metric 4Q08 4Q07 700 Cash and cash equivalents 600 Cash MNOK 564 MNOK 467 500 400 Current assets 300 NWC* MNOK 9 MNOK 17 200 100 Fi ed assets Fixed 0 Equity MNOK 598 MNOK 533 31.12
Slide 13: Strong cash flow
4Q08 financial review 13 St Strong cash flow fl 2008 Operating cash flow: MNOK 69.1 in 4Q08 p g cash flow : MNOK 149.7 in 2008 Operating Cash Flow highlights g g 200 4Q08 4Q07 180 Millions 160 Operating MNOK 69 MNOK 8 140 cash flow 120 Investments MNOK -5 MNOK -1 100 Financing* MNOK -8 MNOK -1 80 60
Slide 14: Operational focus FY2009
4Q08 financial review 14 Operational focus FY2009 Grow revenues across business segments Be mindful of macroeconomic environment Invest and increase headcount, while being vigilant on costs F Focus on operating i cash h flow fl Note: This does NOT constitute financial guidance *Excludes stock option
Slide 15: Key strategies to achieve goals: Revenues
4Q08 financial review 15 Key strategies to achieve goals: Revenues Business area Consumer area Continue to focus on top mobile Aggressively grow Opera Desktop and operators and OEMs Opera Mini users in top ten target geographic markets Grow operator-branded Opera Mini active users and win new operat
Slide 16: Key strategies to achieve goals: Profits
4Q08 financial review 16 Key strategies to achieve goals: Profits Business area Consumer area Focus on top customers and Prioritize most strategic features and opportunities functions Continous alignment of engineering Optimize headcount growth and priorities planning p g relative to p projected j d
Slide 17: Operations Update
Operations Update
Slide 18: Opera's vision
18 Opera’s vision Opera’s O ’ vision i i iis to provide id the h bbest Internet experience on any device
Slide 19: This is Opera Software
19 This is Opera Software The world’s leading Web browser End-user movement: developer company: 675+ employees in ! 20+ million unique monthly users of ten countries Opera Mini in January 2009 Unmatched footprint across PCs, mobile ! Opera Mobile shipped on 125+ phones and other connected devices p
Slide 20: The vision has become reality
20 Th vision The i i h has b become reality lit
Slide 21: Opera's unique ability to deliver a world-class, cross-platform browser
21 Opera’s unique ability to deliver a world-class, ld l cross- platform browser Technical ! One core – multiple platforms ! Support of quickly evolving standards ! Cutting edge innovation Organizational ! Experienced, global organization ! Management experience in handling highly complex technical
Slide 22: There is only one Web
22 There is only one Web Devices, platforms and networks: they come in all shapes and sizes. Only one thing unifies them: The Web
Slide 23: Why only One Web will prevail
Why only One Web will prevail People want to access the same services regardless of device The cost of teaching people to do something thi new is i too t high hi h Most connected devices will have f ll Web bro full browsers– sers good for users, sers operators and manufacturers The browser is now a
Slide 24: The unique differentiator: One browser core for any platform
24 The unique Th i diff differentiator: ti t One O browser b core for any platform powers One Web Motorola Pocket Windows P2K ltron PC Smart Samsung phone Windows SHP CE/Mobile S60 Media Symbian Platform- Pl tf Highway OS independent UIQ core Mac QnX Java Unix J2ME Qte Free (Mini) Qt Linux BSD Solar
Slide 25: Proprietary mobile operating systems will drive the Web as the application platform
25 Proprietary mobile operating systems will drive the Web as the application platform 90% of mobile handsets ship with proprietary mobile operating system 2007 approximately 1.1 In 2007, 1 1 billion handsets shipped with a proprietary OS while just 100 million shipped with p OS an open Examples of
Slide 26: The Opera-powered day
26 The Opera Opera-powered powered day Breakfast: Bus: Work: Boring Airport Recreation: Opera p on Opera p Opera p on meeting: g lounge: g Opera p on laptop Mobile laptop Opera Mini Opera on Wii Archos PMP
Slide 27: Web as a platform gains momentum
27 Web as a platform gains momentum OEMs and operators are looking to leverage the Web as a platform for mobile applications, user interfaces and services OEMs and operators are looking for an open p developerp environment they y can offer across phones Users are looking for an easy way to access pe
Slide 28: Operations Update Business area
Operations Update Business area
Slide 29: Why operators choose Opera Mini
29 Why operators choose Opera Mini Increase ARPU through frequent data usage Attract new customers Improve customer retention and reduce churn Maintain a sustainable competitive advantage t
Slide 30: Global agreement with Vodafone Group
30 Global agreement with Vodafone Group Vodafone and Opera collaborates to enhance the mobile Internet experience i on handsets h d t The global agreement covers a wide array of Opera products: Opera Mini, Opera Widgets and Opera Turbo Applications can be pre-installed or made available as over-the-
Slide 31: The dynamic duo: Opera Mobile and Opera Mini
31 The dynamic duo: Opera Mobile and Opera Mini Number of phone models with Opera pre-installed pre installed Opera’s presence keeps growing on 250 an ever larger list of mobile phone models 200 New models with Opera Mobile 150 in 4Q: 2 141 New models with Opera Mini in 100 59 4Q: 10 50 35 Total new
Slide 32: Operators and Opera Mini
32 Operators and Opera Mini Operator-branded: Opera-branded: Cell One (Namibia) GrameenPhone (Bangladesh) Debitel (Germany) Helio (USA) O2 (Slovakia & Germany) HT Telecom (Europe) PTC/era (Poland) mobilkom (Austria) Swisscom (Switzerland) MegaFon (Russia) T-Mobile International Meteor Communications
Slide 33: Opera Mobile: 56 new models in 2008
33 Opera Mobile: 56 new models in 2008 Casio Motorola Sony Ericsson Casio Hitachi W61CA Moto Z10 Sony Ericsson G700 Casio W62CA Moto Z9 Sonyy Ericsson G900 Casio EXILIM Keitai W63CA Moto A810 Sony Ericsson W61SA Motoming A1600 Sony Ericsson re Motorola Q9e Sony Ericsson W64S Hitachi MOTO Q Global Hi
Slide 34: Opera Mobile: fresh off the press (1Q09)
34 Opera Mobile: fresh off the press (1Q09) Garmin-Asus nüvifone M20 HTC Touch Diamond2 HTC Touch Pro2 MOTOSURF A3100 with Opera Mobile 9.5 95 with Opera Mobile 9.5 95 with Opera Mobile 9.5 95 with Opera Mobile
Slide 35: Opera Mini: 141 new models in 2008
35 Opera Mini: 141 new models in 2008 Samsung Sony Ericsson ASUS Nokia Nokia Sony Ericsson Linda Nokia 6210 Samsung Z400 ASUS P552 Nokia N82 Samsung B2700 Sony Ericsson Shiho Nokia N81 Nokia 6500 classic Sonyy Ericsson W760i N ki 7100 S Nokia Supernova Samsung D900i Fly (India) Nokia N86 Samsung E74
Slide 36: Opera Mini: Fresh of the press
36 Opera Mini: Fresh of the press Tough car meets tough phones meets tough browser Two new devices: Land Rover S1 by Sonim and Land Rover S2 G4 by Sonim
Slide 37: Opera Turbo: a superior Web experience with speed and cost benefits
37 Opera Turbo: a superior Web experience with significant speed and cost benefits With Opera Turbo, operators and OEMs keep customers happy and network costs down Users get a fast, attractive Web experience at a lower cost By compressing network traffic by up to 80%, Opera Turbo helps to enable the
Slide 38: Opera Devices: pushing boundaries of One Web
38 Opera Devices: pushing boundaries of One Web Two areas of use: Full Internet browsing. Opera Devices SDK used to develop a full- fledged browser for surfing Application environment. Opera Devices SDK powers a device with menu system, y , user interface,, Widgets and applications
Slide 39: Philips first to ship TVs with a browser inside
39 Philips first to ship TVs with a browser inside Philips introduces Net TV – powered by the Opera browser Philips introduces easy internet access on the TV with the i innovative ti Net N t TV feature f t To be available on all Philips televisions in Europe in the 8000 series, 9000 series and Cinem
Slide 40: ZyXEL and Alpha Networks select Opera for set-top boxes
40 ZyXEL and Alpha Networks select Opera for set-top boxes ZyXEL Communications (Taiwan), a leading broadband access solutions provider, has selected O Opera Devices D i 9.5 9 5 ffor it its new Li Linux-based b d set-top tt box (STB) series Opera also serves as the presentation engine on the STB ser
Slide 41: Touch the Web on ASUS Eee Top PC with the Opera browser
41 Touch the Web on ASUS Eee Top PC with the Opera browser Eee Top PC: An innovative touchscreen computer Opera brings drag-and- drop functionality, onscreen panning and an automatic virtual keyboard to the Eee Top PC Already available in multiple markets
Slide 42: The Nintendo DSi goes global
42 Th Nintendo The Ni t d DSi goes global l b l In early April 2009, the Nintendo DSi goes on sale l iin Europe E and d North America
Slide 43: Devices with Opera
43 KDDI au BOX Sony VGF-CP1 Sony Bravia Video Internet link Nintendo DS Q-matic ticket printer Nintendo Wii Phillips Professional Flat TV Archos 5 & 7 Iwatsu Precot IP Phones Amino Set-top box Telsey Waves VCom NDVB-9000 Tilgin Mood 300 & 400
Slide 44: Operations Update Consumer area
44 Operations p Update p Consumer area
Slide 45: The big picture: Global Internet penetration
The big g picture: p Global Internet penetration p now at 20% - as indicator of market opportunity pp y Growth in Desktop Internet Users (Global, MM) Source: Internet World Stats
Slide 46: Opera for Desktop: Revenue growth
46 Opera for Desktop: Revenue growth Opera Desktop Revenue (MNOK) Ninth consecutive quarter of 45 growth 40 35 Revenue growth of 117% compared to 4Q07 30 25 User growth 67% compared to 4Q07 20 15 R i b Reaping fit off localization benefits l li ti 10 strategy in terms of product features, marketing
Slide 47: The big picture: Mobile Web growth in 2008
47 The big picture: Mobile Web growth in 2008 From Opera’s monthly State of the Mobile Web report More users Number of Opera Mini users in Jan 2008: 7.6 million Number of Opera Mini users in Jan 2009: 20 million User growth on social networks in 2008: vKontakte: 910% Facebook: 693% MySpace: 618% Dat
Slide 48: Opera Mini
48 O Opera Mi Mini: i Opera Mini monthly page views 8 000 000 000 20 million monthly 7 000 000 000 users 6 000 000 000 122 million MB of 5 000 000 000 data transferred monthly 4 000 000 000 Value for operators 3 000 000 000 (at NOK 4 per MB): 2 000 000 000 NOK 5.9 billion per year 1 000 000 000 Oper
Slide 49: Yahoo! selects Opera Mini
49 Yahoo! selects Opera Mini Yahoo! improves consumers’ consumers ability to use their phones to discover and stay connected Opera Mini 4 4.2: 2: “An An integrated version of the world's most popular mobile web browser, with easy return to the Yahoo! Mobile app, that launches when web site access is
Slide 50: My Opera – at the heart of Opera's universe
50 M O My Opera – att the th heart h t off Opera’s O ’ universe i In January 2009: Total members: 2 100 000 Visitors: 9,121,448 Average daily sign-ups: 3211 Average daily page views: 1,203,713
Slide 51: Thank you for listening
Th k you for Thank f listening li t i