Slide 1: 3Q05 Results
Opera - Simply The Best Internet Experience 3Q05 Results November 21, 2005
Slide 2: Highlights – Third Quarter 2005
Opera - Simply The Best Internet Experience Highlights – Third Quarter 2005 Opera Mini rolls out in the Nordics Early user statistics show high daily usage Roll-out continued in Germany in November Nine new handsets announced since last quarterly presentation Nokia: N70, N90 and 6630 (in T
Slide 3: Profit and loss account – 3Q05
Opera - Simply The Best Internet Experience Profit and loss account – 3Q05 PROFIT AND LOSS ACCOUNT Third Quarter Full year (Figures in TNOK) 2004 2005 2004 Revenues, PC/Desktop 9 446 6 069 33 439 Revenues, Internet Devices 15 121 31 437 65 886 Other income 0 0 87 689 Total Operating Revenues 24 567
Slide 4: Costs related to option program per quarter (NOK)
Opera - Simply The Best Internet Experience Costs related to option program per quarter (NOK) 4 000 000 3 561 085 3 500 000 3 000 000 2 500 000 2 000 000 1 303 899 1 414 042 1 500 000 919 511 1 000 000 444 485 500 000 238 804 33 476 -8 068 0 Q1 Q2 Q3 Q4* -500 000 2004 : MNOK 0.7 2005 : MNOK 7.2 *: 2
Slide 5: Profit and loss account – accumulated 2005
Opera - Simply The Best Internet Experience Profit and loss account – accumulated 2005 PROFIT AND LOSS ACCOUNT Accumulated Full year (Figures in TNOK) 2004 2005 2004 Revenues, PC/Desktop 23 682 19 430 33 439 Revenues, Internet Devices 45 808 86 459 65 886 Other income 87 565 0 87 689 Total Operating
Slide 6: Number of phones sold to end-users
Opera - Simply The Best Internet Experience Number of phones sold to end-users Per year Per quarter 12 000 000 4 500 000 11 000 000 4 000 000 10 000 000 3 500 000 9 000 000 8 000 000 3 000 000 7 000 000 2 500 000 6 000 000 2 000 000 5 000 000 4 000 000 1 500 000 3 000 000 1 000 000 2 000 000 500 000
Slide 7: Growth trend confirmed
Opera - Simply The Best Internet Experience Growth trend confirmed Per year* Per quarter* 110 45 100 40 90 80 35 70 30 60 50 25 40 20 30 20 15 10 10 0 -10 5 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 -20 0 -30 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 -5 -40 -50 -10 Operating inc
Slide 8: Balance sheet – 3Q05
Opera - Simply The Best Internet Experience Balance sheet – 3Q05 BALANCE SHEET 30. September 31. Dec (Figures in TNOK) 2004 2005 2004 Assets Deferred taxes 1 091 1 455 1 055 Goodwill 3 143 3 143 3 143 Tangible assets 1 993 6 671 2 338 Other current assets 31 062 76 637 33 404 Cash and cash equivalen
Slide 9: Financial outlook
Opera - Simply The Best Internet Experience Financial outlook The development for the full year 2005 will be positive supporting previous outlook of positive earnings and earnings growth Revenue growth to continue in 2006 and onwards Mobile Phones will be the main value driver in 2006 Inve
Slide 10: Financial outlook, cont’d
Opera - Simply The Best Internet Experience Financial outlook, cont’d Operating cost expected to continue to grow in 2006, but at a somewhat lower phase than in 2005 Opera Mini requires significant investments in new infrastructure Revenue potential for Opera Mini is however very strong Oper
Slide 11: Mobile business unit
Opera - Simply The Best Internet Experience Mobile business unit
Slide 12: Nine new models announced since the 2Q05 presentation
Opera - Simply The Best Internet Experience Nine new models announces since the 2Q05 presentation *: Only in Cingular’s network Toshiba W32T **: Only in T-mobile’s network Sony Ericsson P990 Nokia 6630** Kyocera WX 300K Kyocera WX 310K Kyocera AH-K3002V Nokia N70 Nokia N90 Nokia 7710 T-Mobile SDA II
Slide 13: Mobile phones – strengthened market position in Q3
Opera - Simply The Best Internet Experience Mobile phones – strengthened market position in Q3 Expanded relationship with Motorola Opera makes browser available on major OS’ supported by Motorola Contract expected to significantly increase Opera’s market share Opera Mini launched Server ba
Slide 14: Opera Mini ensures solutions for entire value chain
Opera - Simply The Best Internet Experience Opera Mini™ ensures solutions for entire value chain Opera Mobile browser Full Web browser for OEM integration Opera Mini Light weight Web browser Opera Platform Device independent platform for mobile Web applications Opera Platform Opera Mobile Brow
Slide 15: Opera Mini
Opera - Simply The Best Internet Experience Opera Mini Targets low- and mid-tier phones A fast and easy alternative to Opera’s mobile browser Mobile surfing is no longer limited to advanced phones Provides ’top-tier’ functionality Speed and usability Superior rendering of content (using Smal
Slide 16: Superior browser experience on all terminals
Opera - Simply The Best Internet Experience Superior browser experience on all terminals Vanilla phones Feature phones Smartphones ≈ 70%* ≈ 25%* ≈ 5%* WAP 1.x WAP 2.0 Native browsers i-mode HTTP Web Opera Mini Opera Mini Solution OBML** Opera Mini Server * Approximate global market share ** OBML: Op
Slide 17: Opera Mini launched in the Nordics and Germany – more regions to come
Opera - Simply The Best Internet Experience Opera Mini launched in the Nordics and Germany – more regions to come Opera starts tapping into 700+ million handset market Opera aggressively pursues dominant brand leadership in the mobile browser market with Opera Mini Opera Mini receives great pr
Slide 18: Web’n’walk - Operators moving towards HTML
Opera - Simply The Best Internet Experience Web’n’walk - Operators moving towards HTML
Slide 19: PC/Desktop Business Unit
Opera - Simply The Best Internet Experience PC/Desktop Business Unit
Slide 20: Opera Desktop – Business model revised
Opera - Simply The Best Internet Experience Opera Desktop – Business model revised Average daily download rate doubled to 80 000 - 100,000 5.5 million downloads since Sept. 20 Opera prepares marketing campaign towards mass market Search agreement with Google running smoothly Partner agreem
Slide 21: Home Media Business Unit
Opera - Simply The Best Internet Experience Home Media Business Unit
Slide 22: Increased number of opportunities in Home Media
Opera - Simply The Best Internet Experience Increased number of opportunities in Home Media Contract signed with a global home media player Expected to be a high volume product Available for the customer’s proprietary operating system Increased interest in including browsers on all kind of d
Slide 23: Opera Traditional Target Device Types
Opera - Simply The Best Internet Experience Opera Traditional Target Device Types Network DVD/BlueRay/HD-DVD, Network TVs DVRs & Media Servers Game Consoles Portable Media Players IP Screen Phones Set-top Boxes
Slide 24: New Target Device Categories based on Opera’s SDK
Opera - Simply The Best Internet Experience New Target Device Categories based on Opera’s SDK Remote Controls Printers & Copiers Car Navigation & Entertainment In-flight and Vertical Applications Other Networked Transportation Devices w/Screens
Slide 25: The Opera SDK – example of successful implementation
Opera - Simply The Best Internet Experience The Opera SDK – example of successful implementation Airline passengers to enjoy a full Internet The Opera Bi-Directional scripts - right to left global deployments in multiple languages Thales product is based on Opera’s SDK requires limited wor
Slide 26: The Opera Advantage - Reformatting Technologies
Opera - Simply The Best Internet Experience The Opera Advantage - Reformatting Technologies 176x208 320x240 700x512 SSR MSR TVR Extensible Rendering Architecture (ERA) “[Opera's] new software will help transform the wireless Web from a misnomer into a reality.” The Economist
Slide 27: Organizing for future growth
Opera - Simply The Best Internet Experience Organizing for future growth Strong focus on commercialisation Increasing focus on business units Scott Hedrick new Executive Vice President Home Media Business Unit Desktop VP still pending 252 highly talented employees as of 30. September “Pr
Slide 28: Summary – positioned for growth
Opera - Simply The Best Internet Experience Summary – positioned for growth Number of Web enabled mobile phones expected to grow significantly Opera Mini™ expected to escalate growth of Web enabled phones Large opportunities inside home media segment with more and more devices utilising Web te