Slide 1: Opera Software First quarter 2009
Opera Software First q quarter 2009
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 Jon S. von Tetzchner, CEO 4. Q&A
Slide 4: Operational highlights: 1Q09 + YTD 2009
4 Operational highlights: 1Q09 + YTD 2009 Priority Overview Areas Operators Vodafone announced a global agreement with Opera covering Opera Mini, Opera Turbo and Opera Widgets SK Telecom, the leading operator in Korea, selected Opera Mini O Opera introduced i d dOOpera T Turbo b Mobile 63 new phones
Slide 5: 2009 financial highlights
1Q09 financial review 5 2009 financial highlights Priorities 1Q status report Revenue MNOK 163.0 (+59% vs 1Q08) EBITDA* MNOK 31.3 (MNOK 15.6 in 1Q08) Operating Cash MNOK 59.7 (MNOK 34.4 in 1Q08) Flow * Non-IFRS EBITDA excludes stock option cost
Slide 6: Financial Review
Financial Review Q opera
Slide 7: 1Q09 financial review
1Q09 financial review 7 MNOK 1Q 2009 1Q 2008 Q on Q Desktop + 47.0 23.1 103% Internet Devices + 116.0 79.6 46% Total revenue = 163.0 102.7 59% Payroll and related expenses - 101.2 66.0 53% Stock option costs - 3.7 4.0 -8% Depreciation and amortization - 2.7 2.0 40% Other operating expenses - 30.5 21
Slide 8: Key financial figures
1Q09 financial review 8 K fi Key financial i l figures fi Operating revenues (NOK Million) EBITDA* (Non-IFRS) (NOK Million) 180 35 160 36 163 157 31 140 25 26 120 125 113 21 100 103 15 93 16 80 82 12 12 75 10 60 65 5 7 61 5 52 53 3 -2 -1 -1 3 40 48 48 -2 -3 2 40 38 -5 -6 20 30 28 -5 22 23 25 -12 0 Q
Slide 9: Revenues: 1Q09
1Q09 financial review 9 Revenues: 1Q09 Area Comments: Revenues (vs (vs. 1Q08) Business Operators: Strong growth in Opera Mini license revenue, driven by operator active user growth and new operator agreements Mobile and Device OEMs: Large increase in revenue from existing and new customers Consumer
Slide 10: OPEX development
1Q09 financial review 10 OPEX development d l t OPEX (NOK Million) Payroll Stock Options Depreciation Other OPEX Non recurring costs OPEX comments 1Q09 vs 1Q08 160 • Total operating expenses up 48% •Expect total operating 140 expenses/employee to be comparable to 1Q for remainder 120 of FY2009 100 •
Slide 11: EBITDA development
1Q09 financial review 11 EBITDA d development l t 1Q 2008 / 1Q 2009 (NOK Million) 80,0 Comments on EBITDA development YoY* 70,0 Revenues up MNOK 60.3 60,0 Desktop + MNOK 23.8 Internet Devices + MNOK 36.5 50,0 Payroll and related expenses up 40,0 MNOK 35.2 Engineering 30,0 Sales and Marketing
Slide 12: Strong capital structure
1Q09 financial review 12 St Strong capital it l structure t t Balance sheet (MNOK) Balance sheet highlights g g 900 800 Metric 1Q09 1Q08 700 Cash and cash 600 equivalents q Cash MNOK 628 MNOK 487 500 400 Current assets 300 200 NWC* MNOK -57 MNOK 10 100 Fixed assets 0 31.03.2008 31.12.2008 31.03.2009
Slide 13: Strong cash flow
1Q09 financial review 13 Strong cash flow Cash Flow highlights g g 70 1Q09 1Q08 Mil lions 60 Operating MNOK 60 MNOK 34 50 cash flow Investments MNOK -8 MNOK -5 40 30 Financing MNOK 13* MNOK -10** 20 Cash balance MNOK 628 MNOK 487 10 * Proceeds from exercise of stock options ** Opera Software bought
Slide 14: Operational focus FY2009
1Q09 financial review 14 Operational focus FY2009 Grow revenues across customer segments Be mindful of macroeconomic environment Invest and increase headcount, while being vigilant on costs Focus on operating cash flow Note: This does NOT constitute financial guidance *Excludes stock option costs
Slide 15: Key strategies to achieve goals: Revenues
1Q09 financial review 15 Key strategies to achieve goals: Revenues Business area Consumer area Focus on top mobile operators and Aggressively grow Opera Desktop and OEMs Opera Mini users in top ten target geographic markets Grow operator-branded Opera Mini active users and win new operators for Leve
Slide 16: Key strategies to achieve goals: Profits
1Q09 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: 710+ employees in 23+ million unique monthly users of more than ten countries Opera Mini in April 2009 Unmatched footprint across PCs, mobile Opera Mobile shipped on 130+ phones and other connected de
Slide 20: The vision has become reality
20 Th vision The i i has h become b 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 iis ttoo hi high 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 pl
Slide 24: One browser core for any platform powers One Web
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 Highway Symbian Platform- Pl tf 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 In 2007 2007, approximately 1 1 billion 1.1 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: Widgets embodify the platform promise
28 Widgets embodify the platform promise Real people get: Instant access to personalized content One experience across devices Web developers get: Wide distribution Tools to enable cross-platform testing Operators p get: g One platform for content management and distribution Full brand control Manuf
Slide 29: Opera Turbo: Why it's hot
29 Opera Turbo: Why it’s hot Real people: A fast, attractive Web experience at a lower cost Operators: Increase data revenue and margin Manufacturers: Product differentiation, reduced burden on hardware and operating system
Slide 30: Operations Update: Business area
Operations Update Business area
Slide 31: Why operators choose Opera Mini
31 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
Slide 32: SK Telecom selects Opera Mini
32 SK Telecom selects Opera Mini SK Telecom is the largest operator in South Korea 50.5% market share as of 2008 Number of subscribers in Q109 climbed by 4% year-on-year to reach 23.35 million SK Telecom will deploy a customized version of Opera p Mini
Slide 33: The giants lead the innovation race
33 The giants lead the innovation race Vodafone selects broad range of Opera products to di W drive Webb and d content t t innovation across mobile platforms T-Mobile set to launch web’n’walk 4.0 to the consumer market, featuring Opera Widgets and back-end service
Slide 34: The dynamic duo: Opera Mobile and Opera Mini
34 The dynamic duo: Opera Mobile and Opera Mini Number of phone models with Opera pre-installed Opera’s presence keeps growing on 250 an ever larger list of mobile phone models 200 New models with Opera Mobile in 1Q: 7 150 141 New models with Opera Mini in 100 59 1Q: 56 35 T t l new models Total d l
Slide 35: Operators and Opera Mini
35 Operators and Opera Mini Operator-branded (10): Opera-branded (18): Cell One (Namibia) GrameenPhone (Bangladesh) Debitel (Germany) HT Telecom (Europe) O2 (Slovakia & Germany) mobilkom (Austria) PTC/era (Poland) Mobitel (Sri Lanka) SK Telecom (new) Movistar (Mexico) Swisscom (Switzerland) Movistar
Slide 36: Opera Mobile: 7 new models to date in 2009
36 Opera Mobile: 7 new models to date in 2009 HTC HTC Touch 3G HTC Touch Diamond2 HTC Touch Pro2 Garmin-ASUS Garmin ASUS nüvifone M20 Motorola MOTOSURF A3100 Samsung Samsung Mondi XDA (O2) XDA Ignito I it
Slide 37: KDDI and Opera Mobile: fresh off the press (2Q09)
37 KDDI and Opera Mobile: fresh off the press (2Q09) Toshiba Biblio and "We are now getting close to having collaborated with Opera Toshiba T002 with on nearly 100 of our mobile phones. Early on, we knew that in order to appeal to the mature Japanese mobile market, we Opera Mobile, running would hav
Slide 38: Opera Mini: 56 new models to date in 2009
38 Opera Mini: 56 new models to date in 2009 Haier Nokia Sony Ericsson Haier CG100 Nokia 2865 Sony Ericsson C903 Nokia 3155 Sony Ericsson S312 N ki 5800 Nokia S Sony Ericsson Ei W205 Huawei Nokia 6155 Sony Ericsson W508 Huawei 736 Nokia 6255 Sony Ericsson W705 Huawei 835 Nokia 6265 Sony Ericsson W70
Slide 39: Opera Devices: pushing boundaries of One Web
39 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 40: Study: I want Internet on my TV
40 Study: I want Internet on my TV Nearly half of prospective TV buyers say they want to buy an Internet-connected TV Preferences: Video: Vid 62% Weather: 59% Online games: 57% Source: Net-Enabled Video: Early Adopters Only? (April 2009). Conducted in December 2008. CEA Market Research
Slide 41: Mobile office: Opera brings full Web browsing to Ford trucks and vans
41 Mobile office: Opera brings full Web browsing to Ford trucks and vans Part of Ford Work Solutions technology package Opera is available on the new 2009 Ford F-150 XL, STX, XLT trucks; F-Series Super D t XL, Duty XL XLT and d FX4 trucks t k andd allll 2009 E E-Series S i vans
Slide 42: Devices with Opera: set-top boxes, TVs, consoles and more
42 KDDI au BOX Sony VGF-CP1 Sony Bravia Video Internet link Nintendo DSi Nintendo Wii ASUS Eee Top PC 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 43: Operations Update: Consumer area
43 Operations p Update p Consumer area
Slide 44: 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 45: Users embrace the mobile Web
Users embrace the mobile Web… More users Number of Opera Mini users in April 2008: 9.7 million Number of Opera Mini users in April 2009: 23.4 million Data traffic growth (April 2008 – April 2009) + 295% (to 151 million MB)
Slide 46: … to the benefit of operators
… to the benefit of operators p Customers of U.S. operators view more data-intensive pages than subscribers in any other country The average page viewed over U.S. operator networks is approx. 32KB compressed (or 320KB uncompressed) In Ukraine, operators enjoy the most active mobile Web users Average
Slide 47: Opera for Desktop: Revenue growth
47 Opera for Desktop: Revenue growth Opera Desktop Revenue (MNOK) 50 Revenue growth of 103% 45 compared to 1Q08 40 35 User growth 64% compared to 1Q08 30 25 Reaping benefits of localization strategy in terms of product 20 features marketing materials features, 15 and commercial agreements 10 Higher
Slide 48: Opera Mini
48 O Opera Mini: Mi i Opera Mini monthly page views 10 000 000 000 23.4 million monthly 9 000 000 000 users 8 000 000 000 7 000 000 000 151 million MB of data transferred 6 000 000 000 monthly 5 000 000 000 4 000 000 000 Value for operators (at NOK 4 per MB): 3 000 000 000 NOK 7.2 billion per 2 000
Slide 49: My Opera – at the heart of Opera's universe
49 M Opera My O – att th the heart h t off Opera’s O ’ universe i Total members: 2 399 503 Monthly unique visitors: 10,740,603 Average daily sign-ups: 3014 Average daily page views: 1,448,347 (Numbers by May 24, 2009)
Slide 50: Thank you for listening
Thank you for listening