Slide 1: Opera Software Fourth Quarter 2006
Opera Software Fourth Quarter 2006
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: 4Q highlights
4Q highlights 3 Revenue highlights Revenue 70 Millions 4Q revenue: MNOK 60.6, up 26% vs. 4Q05 60 26% Record quarter 50 Desktop revenue MNOK 12.9, up 101% vs. 4Q05 40 30 Internet Devices revenue MNOK 47.7, up 14% 20 10 0 FY revenue: MNOK 213.8, up 39% vs. FY05 Q4 2005 Q4 2006 EBITDA highlights Revenu
Slide 4: 4Q highlights
4Q highlights 4 Business Samsung selects Opera for upcoming mobile phones Opera Mini and Opera Mobile powers Navega mobile Web service from Telefónica Móviles Signed licensing deal with Sony Opera browser for Nintendo Wii available to the public Consumer Renewed strategic partnership with Google Ope
Slide 5: Financial Update
Financial Update
Slide 6: Income statement
4Q financial review 6 Income statement NOK Thousands Q4 2006 Q4 2005 FY 2006 FY 2005 Q on Q Y on Y Desktop 12 850 6 396 32 996 25 826 101% 28% Internet Devices 47 704 41 669 180 788 128 128 14% 41% Total Revenue 60 554 48 065 213 784 153 954 26% 39% Payroll and related expenses 48 069 32 494 156 960
Slide 7: Key financial figures
4Q financial review 7 Key financial figures Operating Revenues (NOK Million) EBITDA (Non-IFRS) (NOK Million) 70 20 15 60 61 10 50 52 53 10 48 48 5 5 40 3 -1 3 40 0 -2 -2 2 38 0 -4 30 -5 30 -5 28 25 20 22 23 -10 -12 10 -15 0 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 8: OPEX development
4Q financial review 8 OPEX development OPEX (NOK Thousands) OPEX Comments 4Q06 vs 3Q06 Payroll Stock Options Depreciation Other OPEX Non recurring costs Overall costs higher in 4Q06 vs. 90 000 3Q06 80 000 Increased headcount 70 000 Increased marketing costs 60 000 Opera also incurred 50 000 approxim
Slide 9: EBITDA development
4Q financial review 9 EBITDA development Q4 2005 / Q4 2006 Comments on EBITDA Development YoY* 20 Revenues up NOK 12,5 million Desktop: + NOK 6.5 million 15 Internet Devices: + NOK 6.0 million 10 Payroll and related expenses up NOK 15.6 million 5 Sales & marketing globally Engineering 0 EBITDA Q4 20
Slide 10: Strong capital structure
4Q financial review 10 Strong capital structure Balance Sheets Balance Sheet Q4 06 Q3 06 600 Deferred Taxes 9 730 5 954 500 Cash and cash Goodwill 3 143 3 143 equivalents Fixed Assets, Net 20 754 16 259 400 Accounts Receivable 55 172 35 963 300 Current assets Accrued, but Unbilled Revenue 43 636 56
Slide 11: Outlook: FY 2007
4Q financial review 11 Outlook: FY 2007 Revenue: Well-positioned for long-term growth As consumers worldwide embrace and access the Internet through a growing array of mobile and non-mobile phone devices, Opera believes it is well-positioned to take advantage of the mega trends in both the mobile ph
Slide 12: Outlook: FY 2007 Priorities
4Q financial review 12 Outlook: FY 2007 FY 2007: Priorities Desktop/Mini: Invest in a more aggressive manner in the Consumer Segment and continue to grow user base worldwide Devices: Build on the momentum Opera has going into FY2007 among major consumer electronic OEMs Mobile: Accelerate momentum am
Slide 13: Operations Update
Operations Update
Slide 14: Opera's vision
Opera’s vision 14 Opera’s mission is to provide the best Internet experience on any device
Slide 15: Delivering cross-platform innovation
Delivering cross-platform innovation 15 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: Leading cross-platform technology
Leading cross-platform technology 16 Opera is the smallest full-featured browser Lower HW requirements Lower power consumption Performs well on low-resource devices Opera is the fastest full-featured browser Limited bandwidth Better Internet experience Significantly faster than competitors in a numb
Slide 17: Opera powers convergence
Opera powers convergence
Slide 18: There is only one Web
There is only one Web 18 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 growth of Web applications
The growth of Web applications 19 Exercise: Find the Windows applications... netvibes
Slide 20: Web applications – what happened?
Web applications – what happened? 20 No more native applications: practically all new services and applications are based on Web technologies such as Ajax The social Web: people create Web content through services like Flickr, MySpace, Blogger and YouTube The open Web: content providers make their s
Slide 21: The browser is the glue
ee tig Myspace.com. Lo a place for friends
Slide 22: Three screens – boundaries blurring
Three screens – boundaries blurring 22 making calls watching movies watching films browsing Web browsing Web making calls 1998 2006
Slide 23: The Opera-powered day
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Slide 24: Opera defining mobile Ajax since 2003
Opera defining mobile Ajax since 2003 24 Opera Platform 2003 Opera Platform 2006
Slide 25: Opera brings Ajax to your TV
Opera brings Ajax to your TV 25 Web applications and user interfaces here today Opera enables Web applications on devices Web applications are dynamic, quick to create and can easily be modified Opera supports cutting-edge technologies such as Ajax
Slide 26: Operations Update: Business Segment
Operations Update Business Segment
Slide 27: Opera Mobile highlights
Opera Mobile highlights 27 Number of phone models with Opera pre-installed Shipments of phones with Opera pre-installed 40 Millions 12 35 37 10 30 25 8 24 20 6 15 13 4 10 5 6 2 0 2003 2004 2005 2006 0 * 04 04 04 04 05 05 05 05 06 06 06 06 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 4/ 3/ Q Q Q Q Q Q Q Q Q Q Q Q *
Slide 28: Opera Mobile announced models FY2006: 37
Phones with Opera Mobile 28 Opera Mobile announced models FY2006: 37 Motorola A1200 Casio W43CA Sharp W-ZERO3 Toshiba DRAPE Nokia 9300i Toshiba W47T Toshiba W32T Hitachi W43H *: Only in Cingular’s network **: Only in T-mobile’s network Sony Ericsson P990 Motorola RAZR V3x ** Nokia 6630** MOTORAZR ma
Slide 29: Sneak peek: new phones
Mobile browsing momentum accelerates 29 Sneak peek: 25 new phones ASUS HTC Simcom ASUS V1210 HTC Ameo (T-Mobile) S955T HTC U1000 (Dopod) KDDI Toshiba Sharp W51SH Longcheer G500 Casio W51CA G900 Linux Smartphone Hitachi W51H Wistron Kyocera W51K Motorola D-link Sony Ericsson W51S V1100 Toshiba W52T A
Slide 30: New Opera partner: Samsung
Gaining traction with Tier One OEMs 30 New Opera partner: Samsung Samsung shipped 118 million phones in 2006; 32 million in 4th quarter Samsung focuses on mid-range and high-end phones Opera complements current and future market strategy Will increase number of modestly priced phones to expand marke
Slide 31: New Opera partner: HTC
Gaining traction with Tier One OEMs 31 New Opera partner: HTC HTC is the leading manufacturer of Windows Mobile cell phones and PDAs More than 70% of all Windows Mobile phones are made by HTC Opera complements HTC’s strategy to customize product “HTC is becoming an industry offering for customers in
Slide 32: Business Mini highlights
Business Mini highlights 32 New distribution partners in 4Q: Mobilkom Austria and 4INFO Pannon pre-installs Opera Mini on 10 high-volume handsets Nokia pre-installs Opera Mini on the 6300 mid-range handset “We are confident that the Nokia 6300 will be among our best selling models in 2007.” - Kai Oi
Slide 33: Opera Mini announced models FY2006: 35
Phones with Opera Mini 33 Opera Mini announced models FY2006: 35 Samsung X160* Sony Ericsson K750i* Sony Ericsson Z530i* Sony Ericsson Z610i* Sony Ericsson K610i* Sony Ericsson K310i* Nokia N73* Nokia 6288* Nokia 6233* Nokia 6131* Nokia 6103* Nokia 6080* Nokia 6070* Nokia 2610* Nokia 6300 Nokia 6233
Slide 34: Telefónica launches Navega
Gaining traction with Tier One operators 34 Telefónica launches Navega Opera Mini pre-installed on high-volume handsets: Sony Ericsson Z610i Sony Ericsson K800 Sony Ericsson K610i Nokia N70 (with more to come) Revenue model for Opera: License fees based on active users Maintenance & support Server h
Slide 35: Devices highlights
Devices highlights 35 Opera for Nintendo Wii released in a public Beta First Opera 9 delivery on an embedded device Sony Electronics, Inc., selected the Opera 9 Software Development Kit (SDK) to power future consumer electronics products “Opera on Wii adds a new dimension and functionality to a vide
Slide 36: Opera adds to the winning Nintendo Wii experience
Opera adds to the winning Nintendo Wii experience 36 Opera on Wii makes Internet browsing in the living room more compelling than ever Opera has broken new ground by combining intelligent zoom and navigation using the Wii Remote Merrill Lynch predicts that by 2011, a third of all Japanese households
Slide 37: Operations Update: Consumer Segment
Operations Update Consumer Segment
Slide 38: Desktop highlights
Desktop highlights 38 Desktop reaches new revenue highs Opera Desktop Revenue (MNOK) 14 Revenue growth of 100%+ 12 Second consecutive quarter of 10 growth 8 Renewed strategic agreement with 6 Google with improved commercial terms 4 2 Commercialization strategy is working as predicted 0 04 04 04 04 0
Slide 39: Opera for T-Online
Improved traction with premier online brands 39 Opera for T-Online Opera and T-Online create custom version of the Opera browser New road to commercialize browser and expand distribution Direct links to favorite T-Online content Leverages T-Online distribution channels Complements T-Online’s other b
Slide 40: Consumer Mini highlights
Consumer Mini highlights 40 Opera Mini 3.0 released to rave Cumulative Opera Mini Users and Page Views reviews 12 3 500 Millions Millions 3 000 10 Powers mobile social networking with intuitive new 8 2 500 features 2 000 6 1 500 Total number of cumulative 4 users*: nearly 12 million** 1 000 2 500 Cu
Slide 41: Opera Mini partners with Yahoo!
Commercial opportunities abound 41 Opera Mini partners with Yahoo! Yahoo! becomes new mobile search provider for Opera Mobile and Opera Mini Yahoo! partnership enhances mobile search revenues and adds possibilities for new mobile services “This application is brilliant. If your phone does Internet,
Slide 42: My Opera community key for consumer growth
Services highlights 42 My Opera community key for consumer growth My.Opera.com popular with more than 600 000 members today - doubled the number of users since Dec. 2005 Opera continues to work with its loyal user base to build word of mouth and brand awareness Community-based services represent the
Slide 43: Thank you for listening
Thank you for listening