Slide 1: Opera Software First quarter 2007
Opera Software First quarter 2007
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: Breaking News: TMN selects Opera Mini
BREAKING NEWS Portugal’s leading telecom operator, TMN, selects Opera Mini for major mobile Web push
Slide 4: 1Q 2007 highlights
Highlights 4 1Q 2007 highlights Business Shipments of Opera Mobile: 10.5 million in 1Q 29 new mobile phones include the Opera Mobile browser pre-installed 45 new mobile phones announced YTD 60 new mobile phones when Opera Mini pre-installs are included Notable contract signatures ARCHOS for next-gen
Slide 5: 1Q 2007 highlights
Highlights 5 1Q 2007 highlights Revenue highlights Revenue 1Q revenue: MNOK 65.4, up 37% vs. 1Q06 37% Record quarter Desktop revenue MNOK 14.8, up 142% vs. 1Q06 Internet Devices revenue MNOK 50.6, up 21% EBITDA highlights 1Q EBITDA*: MNOK -5.8 vs. MNOK 1.2 in 1Q06 * Non-IFRS EBITDA excludes stock op
Slide 6: Financial Review
Financial Review
Slide 7: Income statement
1Q07 financial review 7 Income statement NOK Million Q1 2007 Q1 2006 Q on Q Desktop + 14 839 6 120 142% Internet Devices + 50 557 41 717 21% Total revenue = 65 397 47 837 37% Payroll and related expenses - 53 453 33 093 62% Stock option costs - 1 594 8 430 -81% Depreciation and amortization - 1 581
Slide 8: Key financial figures
1Q07 financial review 8 Key financial figures Operating revenues (NOK Million) EBITDA* (Non-IFRS) (NOK Million) * Non-IFRS EBITDA excludes stock option cost
Slide 9: OPEX development
1Q07 financial review 9 OPEX development OPEX (NOK Million) OPEX comments 1Q07 vs 4Q06 Payroll Stock Options Depreciation Other OPEX Non recurring costs Payroll cost up 11% 90 000 Increase in headcount of 3.5%, mainly sales Normal yearly wage increases 80 000 Stock option costs down 23% 70 000 Refle
Slide 10: EBITDA development
1Q07 financial review 10 EBITDA development 1Q 2006 / 1Q 2007 Comments on EBITDA development YoY* 15 Revenues up MNOK 17.6 Desktop + MNOK 8.7 Internet Devices + MNOK 8.8 10 Payroll and related expenses up MNOK 20.4 Sales and Marketing globally Engineering 5 Overall headcount up 37% vs. 1Q06 Stock op
Slide 11: Strong capital structure
1Q07 financial review 11 Strong capital structure Balance Sheet Balance Sheet Q1 07 Q4 06 600 Deferred Taxes 11 684 9 730 Goodwill 3 143 3 143 500 Fixed Assets, Net 24 023 20 754 Cash and cash 400 equivalents Accounts Receivable 69 327 55 172 Accrued, but Unbilled Revenue 32 145 43 636 300 Other Cur
Slide 12: Update on Opera's FY 2007 priorities
1Q07 financial review 12 Update on Opera’s FY 2007 priorities Priorities YTD status report Focus and invest in consumer area Desktop revenue up 142% YoY 1Q07 Opera Mini page views up 48% vs. 4Q06 April 07 up 12% vs. March 07 My Opera users up 146% YoY Accelerate momentum among mobile 22 new phones f
Slide 13: Operations Update
Operations Update
Slide 14: Opera's vision
14 Opera’s vision Opera’s vision is to provide the best Internet experience on any device
Slide 15: Opera delivers cross-platform innovation
15 Opera delivers cross-platform innovation Desktop computers Laptops Gaming consoles TVs Set top boxes Mobile phones Personal communicators Portable media players PDAs In-flight entertainment systems Web tablets IP screen phones
Slide 16: Working with global leaders
16 Working with global leaders
Slide 17: Opera powers convergence
Opera powers convergence
Slide 18: There is only one Web
18 There is only one Web The services that win on the ordinary Web also win on the mobile Web The cost of teaching people to do something new is too high – WAP was a mistake, let's not do it again Most mobile phones and other devices will ultimately have full Web browsers; browsing drives higher ARP
Slide 19: The browser is the glue
The browser is the glue You(fiD « mn aqme | tig Myspace.com. Lo a place for friends
Slide 20: Three screens – boundaries blurring
20 Three screens – boundaries blurring making calls watching movies watching films browsing Web browsing web making calls 1998 2007
Slide 21: The Opera-powered day
The Opera-powered day g SS & xe? Ss & & s ss x? . & a S & < RS S RS) Ss & ef s 07:00 08:00 12:00 14:00 cS & a es oS SF & & Q eS 18:55 21:00
Slide 22: Operations Update: Business area
Operations Update Business area
Slide 23: The unique differentiators
23 The unique differentiators Windows Motorola Pocket P2K PC Smart ltron phone Windows CE/Mobile Superior user experience Media S60 Opera is the smallest full-featured Highway Symbian Platform browser OS Independent UIQ kernel Lower HW, power requirements Mac Performs well on low-resource QnX Java d
Slide 24: Opera value proposition: Business area
24 Opera value proposition: Business area Target Key value proposition of full Web browsers and Opera Customer/Market Mobile operators Full Web browsing Drives data traffic = higher ARPU* Facilitates customer retention Differentiates operator service offering from competition Opera Can power converg
Slide 25: Opera value proposition: Business area
25 Opera value proposition: Business area Target Key value proposition of full Web browsers and Opera Customer/Market Consumer Full Web browsing as a product differentiator Electronic Device Helps OEMs meet and exceed customer expectations of browsing on OEMs any Internet connected device Provides s
Slide 26: Opera Mobile: 1Q highlights
26 Opera Mobile: 1Q highlights Number of phone models with Opera pre-installed Shipments of phones with Opera pre-Installed 40 Millions 37 12 35 10 30 29 25 24 8 20 6 15 13 4 10 6 5 2 0 2003 2004 2005 2006 2007 Q1 0 04 04 04 04 05 05 05 05 06 06 06 06 07 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ Q Q Q
Slide 27: Opera Mobile: new phones so far in 2007
27 Opera Mobile: 45 new phones so far in 2007 Accton HTC Panasonic Toshiba VM3228T HTC Ameo (T-Mobile) Panasonic W51P Toshiba G500 HTC U1000 (Dopod) Panasonic W52P Toshiba G900 HTC Advantage Toshiba W51T ASUS Samsung Toshiba W52T ASUS V1210 KDDI Samsung SPH-8100 Toshiba W53T MEDIA SKIN Toshiba W54T
Slide 28: Opera starts shipping on HTC devices
28 Opera starts shipping on HTC devices The Opera Mobile browser serves as a differentatior on HTC’s devices HTC is the leading manufacturer of Windows Mobile cell phones and PDAs. More than 70% of all HTC U1000 HTC Advantage Windows Mobile phones are made (Dopod) by HTC HTC currently has 4,904 empl
Slide 29: New Opera partner: Palm Inc.
29 New Opera partner: Palm Inc. Palm is a leader in mobile computing Palm has licensed Opera 9 to enable the full Internet
Slide 30: This just in: TMN selects Opera
30 This just in: TMN selects Opera TMN- Telecomunicações Móveis Nacionais, S.A. – is the mobile communications unit of Portugal Telecom (PT), the national incumbent TMN has selected Opera Mini for a major consumer push on the mobile Web
Slide 31: KDDI continues its growth in Japan
31 KDDI continues its growth in Japan KDDI had 27,099,400 subscribers in its ‘au’ network in April 2007, up from 22,213,400 in the same month last year Opera continues to power KDDI’s 3G handsets (au) 40 models shipped so far with Opera Mobile In latest models, Opera’s browser sports tabbed browsing
Slide 32: PTC/era: the leading operator in Poland
32 PTC/era: the leading operator in Poland Polska Telefonia Cyfrowa (operator of the Era network) is the leading Polish mobile operator with more than 12 million subscribers PTC/era is the subsidiary of T-Mobile It offers the fastest wireless Internet access solution, called blueconnect, powered by
Slide 33: Opera Mini: 15 new phones so far in 2007
33 Opera Mini: 15 new phones so far in 2007 LG Sagem LG KU250 My411x LG KE970 Samsung LG KU311 Samsung E900 Samsung SGH-E250 Motorola Samsung SGH-D900 Motorola K1 Nokia Nokia 6085 Nokia 5500 Nokia 3110 Nokia 7373 Nokia 6131 Nokia 5300 Nokia 6230i
Slide 34: Growth continues in Opera for Devices
34 Growth continues in Opera for Devices Full version of Opera for Nintendo launched (in 2Q) Motorola, Inc. expands relationship with Opera by licensing Opera’s SDK for use in Connected Home products In South Korea, Kocom will use Kocom KHN-U881 Wall Pad Opera for its Wall Pad Opera selected for Tra
Slide 35: This just in: Tilgin selects Opera
35 This just in: Tilgin selects Opera for Mood 300 and 400 set-top boxes Tilgin is headquartered in Sweden, with several international sales offices. More than 30 operators offer their IP-based services based on solutions from Tilgin
Slide 36: ARCHOS goes next-generation with Opera
36 ARCHOS goes next-generation with Opera ARCHOS selects Opera for upcoming, next-generation line of devices Founded in 1988, ARCHOS is a global consumer electronics manufacturer and leader in portable digital entertainment solutions. Revenues of €124M in 2006 ARCHOS is a strong contender in the por
Slide 37: Wii demo
37 Wii demo “Nintendo's Internet Channel, developed by Opera Software, is so simple even your computer-phobic, "Wii Sports"-loving grandma can use it.” Lou Kesten, Associated Press
Slide 38: Operations Update: Consumer area
Operations Update Consumer area
Slide 39: Opera for Desktop: 1Q highlights
39 Opera for Desktop: 1Q highlights Further increase in usage drives Opera Desktop Revenue (MNOK) record revenues 16 Third consecutive quarter of 14 growth 12 Revenue growth of 142% 10 compared to 1Q06 8 6 4 2 0 04 04 04 04 05 05 05 05 06 06 06 06 07 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q *1Q07 desk
Slide 40: Speed Dial
40 Speed Dial Opera introduces Opera 9.2 with groundbreaking Speed Dial capability This allows users to visit their favorite sites with one click Opens commercialization opportunities with content providers such as Yahoo!
Slide 41: Opera Mini: 1Q highlights
41 Opera Mini: 1Q highlights In 1Q, Opera Mini celebrated its Cumulative Opera Mini Users and Page Views first year of existence and its 16 6 000 Millions Millions position as the first mass market mobile browser 14 5 000 12 Cumulative pages downloaded 10 4 000 since launch: 5.2 billion 8 3 000 Cumu
Slide 42: Growth in Opera Mini traffic continues
Growth in Opera Mini traffic continues 42 Opera Mini monthly page views 800 000 000 700 000 000 600 000 000 500 000 000 400 000 000 300 000 000 200 000 000 100 000 000 0 P R R EB EB G N N Y V N EC T L R R E O JU A C JA JA AP P A A JU AU S F F M A O N D M M
Slide 43: Introducing the power of My Opera
43 Introducing the power of My Opera Vision: A personal space on the Web, regardless of device Started as discussion forum and technical support. Today it is our industry’s most powerful online community My Opera is a differentiator Increases the value of our software products Improves brand loyalty
Slide 44: My Opera – the facts
44 My Opera – the facts Size of My Opera Community quadruples in 2.5 years: currently more than 820 000* members 1 500 sign-ups per day 116 000 blogs 3.1 million photos stored 1.75 million forum posts 1.9 million unique weekly visitors, making it Norway’s third most popular site, ahead “No other bro
Slide 45: My Opera statistics
My Opera statistics 45 Cumulative registered users 800 000 700 000 600 000 500 000 R PR N EC B A FE JA M A D
Slide 46: Summary of FY 2007 priorities
46 Summary of FY 2007 priorities Focus and invest in the consumer area Accelerate momentum among mobile phone operators Increase position with top mobile OEMs globally Build on the momentum among consumer electronics OEMs Begin to capitalize on unique cross-platform position and offering content rel
Slide 47: Thank you for listening!
Thank you for listening!