Slide 1: Opera Software Third quarter 2006
Opera - Simply The Best Internet Experience Opera Software Third quarter 2006 The best Internet experience on any device
Slide 2: Highlights Third quarter 2006
Opera - Simply The Best Internet Experience Highlights Third quarter 2006 Revenue 60 Millions Revenues of MNOK 53.2 in 3Q06, up from MNOK 37.5 in 3Q05, an increase of 42% 50 EBIT of MNOK -6.8 in 3Q06 versus MNOK 40 -5,1 in 3Q05 30 20 10 8.6 million mobile phones were shipped 0 with Opera in 3Q
Slide 3: Highlights Third quarter 2006
Opera - Simply The Best Internet Experience Highlights Third quarter 2006 Opera Mini continues its momentum Number of users*: 7 million Pages downloaded: 2 billion New operators signed up Opera Mini was pre-installed on 5 handsets in the quarter Opera Devices Signed IP set-top box deals wi
Slide 4: Financial Review
Financial Review Opera - Simply The Best Internet Experience
Slide 5: Income statement
Opera - Simply The Best Internet Experience Financial Review Income statement * Last twelwe months NOK Million Q3 2006 Q3 2005 YTD 2006 YTD 2005 LTM* 2005 Desktop 8 150 6 069 20 145 19 430 26 541 25 826 Internet Devices 45 030 31 437 133 085 86 458 174 754 128 128 Total Revenue 53 180 37 506 153 230
Slide 6: Financial key figures
Opera - Simply The Best Internet Experience Third quarter 2006 Financial key figures Operating Revenues (NOK Million) EBIT (Non-IFRS) (NOK Million) 60 20 15 50 52 53 48 48 10 40 9 40 38 5 5 30 30 0 2 -1 28 -2 -2 1 1 -3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 25 -4 04 04 04 04 05 05 05 05 06 06 06 20 22 23
Slide 7: OPEX development
Opera - Simply The Best Internet Experience Financial Review OPEX development OPEX (NOK Million) OPEX Comments 3Q06 vs 2Q06 Payroll Stock Options Depreciation Other OPEX 70 000 Overall costs higher in 3Q06 vs. 2Q06 Increased headcount 60 000 2Q06 payroll included June vacation 50 000 payment to
Slide 8: EBITDA Development
Opera - Simply The Best Internet Experience Financial Review EBITDA Development Q3 2005 / Q3 2006 Comments on EBITDA Development YoY* 14 Revenues up NOK 15,7 million 12 Desktop: + NOK 2.1 million 10 Internet Devices: + NOK 13.6 million 8 Payroll and related expenses up NOK 13.5 6 million 4 Sal
Slide 9: Strong Capital Structure
Opera - Simply The Best Internet Experience Financial Review Strong Capital Structure Balance Sheets Balance Sheet Q3 06 Q2 06 600 Assets 500 Cash and cash Deferred Taxes 5 954 5 210 equivalents Goodwill 3 143 3 143 400 Fixed Assets, Net 16 259 14 553 300 Current assets Accounts Receivable 35 963 23
Slide 10: Outlook: FY 2006
Opera - Simply The Best Internet Experience Financial Review Outlook: FY 2006 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
Slide 11: Outlook: FY 2006
Opera - Simply The Best Internet Experience Financial Review Outlook: FY 2006 Operating Expenses (ex. stock option costs): Continued investment in our business lines, in particular around Opera Mini Continued investment in sales & marketing, new foreign offices (Japan and USA, in particular), an
Slide 12: Operational Review
Operational Review Opera - Simply The Best Internet Experience
Slide 13: Opera's vision
Opera - Simply The Best Internet Experience Opera’s vision Opera’s vision is to provide the best Internet experience on any device
Slide 14: Opera's Markets
Opera - Simply The Best Internet Experience Operational Review Opera’s Markets
Slide 15: This just in: press quote
Opera - Simply The Best Internet Experience This just in: “For many, a night at the Opera has turned into a 24/7 experience on all their devices. Is there anything the Opera browser can’t do?” Alex Zaharov-Reutt, iTWire (Australia), November 13, 2006
Slide 16: Opera's vision is already delivered on a wide range of platforms
Opera - Simply The Best Internet Experience Opera’s vision is already delivered on a wide range of platforms 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 17: Opera Mobile
Operational Review Opera Mobile Opera - Simply The Best Internet Experience
Slide 18: Opera has solutions for the entire mobile value chain
Opera - Simply The Best Internet Experience Opera has solutions for the entire mobile 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 Mobile Browser Opera Mini
Slide 19: Opera for Mobile (full version) Third Quarter Highlights
Opera - Simply The Best Internet Experience Opera for Mobile (full version) Third Quarter Highlights Mobile phones shipped with Opera Total mobile shipments with Opera pre- 10 Millions installed increased 105%* in 3Q06 vs. 9 3Q05 13 new mobile phones that include the 8 Opera Mobile browser were
Slide 20: Announced phones (Opera Mobile) YTD: 33
Opera - Simply The Best Internet Experience Announced phones (Opera Mobile) YTD: 33 (goal = 48 for 2006) 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
Slide 21: KDDI: Japan's hottest mobile operator
Opera - Simply The Best Internet Experience KDDI: Japan’s hottest mobile operator KDDI has gained the most market share in 2004-2006 despite competition from industry giants DoCoMo and Vodafone (now Softbank) In Oct. 2006, when Mobile Number Portability launched in Japan, KDDI gained the most ma
Slide 22: KDDI and Opera
Opera - Simply The Best Internet Experience KDDI and Opera In 3Q06, KDDI and Opera renewed their license agreement In 3Q06, KDDI began to ship all KDDI EVDO (WIN brand) handsets with Opera installed Full Web access with Opera is a now a key KDDI 3G service, and users can jump to Opera full web
Slide 23: Opera Mini Third Quarter Highlights
Opera - Simply The Best Internet Experience Opera Mini Third Quarter Highlights Total pages downloaded with Opera Minii Two new operators signed up in 3Q06 – 3 000 Millions TDC in Denmark and Omnitel in Lithuania Opera Mini was pre-installed on 5 2 500 handsets in the quarter. Including 19 hands
Slide 24: Announced phones (Opera Mini) YTD: 34
Opera - Simply The Best Internet Experience Announced phones (Opera Mini) YTD: 34 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* Noki
Slide 25: Opera Mini distribution
Opera - Simply The Best Internet Experience Opera Mini distribution To date, 9 operators have chosen Opera Mini for their portfolios Telefónica Móviles (Europe & Latin America) – New in 4Q mobilkom austria (Europe) – New in 4Q TDC (Denmark) – New in Q3 Omnitel (Lithuania) – New in Q3 Panno
Slide 26: This just in:
Opera - Simply The Best Internet Experience This just in:
Slide 27: Opera Mini goes to Spain
Opera - Simply The Best Internet Experience Opera Mini goes to Spain Telefónica Móviles de España selects Opera Mini for its new “Navega” service 2nd major European operator to adopt Opera Mini for major mobile Internet push Telefónica Móviles is a an innovative and leading operator in multiple coun
Slide 28: Navega from Telefónica Móviles
Opera - Simply The Best Internet Experience Navega from Telefónica Móviles A branded version of Opera Mini will be pre-installed on high-volume handsets from manufacturers such as Sony Ericsson and Nokia Revenue model for Opera Software • License fees based on active users • Maintenance & Support •
Slide 29: Opera for Devices
Operational Review Opera for Devices Opera - Simply The Best Internet Experience
Slide 30: Opera browsers are already in a broad array of devices
Opera - Simply The Best Internet Experience Opera browsers are already in a broad array of devices and the device types continue to grow Web tablets Network TVs Game Consoles Portable Media Players IP Screen Phones Set-top Boxes
Slide 31: Opera for Devices Third Quarter Highlights
Opera - Simply The Best Internet Experience Opera for Devices Third Quarter Highlights Agreements signed with Telsey Telecommunications and Pirelli Broadband Solutions, leading manufacturers of IP set- top boxes Opera browser selected for ARCHOS 604 WiFi, ARCHOS’s latest portable media player
Slide 32: Opera for Devices Third Quarter Highlights
Opera - Simply The Best Internet Experience Opera for Devices Third Quarter Highlights Opera broadened its footprint by making Opera 9 available for Windows CE, an increasingly popular platform for connected devices The company shipped Opera 9 for Devices, bringing Opera Widgets and the latest W
Slide 33: Nintendo Wii launched in the U.S. yesterday
Opera - Simply The Best Internet Experience Nintendo Wii launched in the U.S. yesterday Key mission of Nintendo Wii is to broaden the market: turn non-gamers into gamers Completely new and revolutionary controller and interface design Broader array of games Almost instantaneous power-up of the
Slide 34: Nintendo Wii
Opera - Simply The Best Internet Experience Nintendo Wii Nintendo and Opera will introduce the full Web browser into the Wii Channel Menu following the regional releases of the Wii console. Opera for Wii will become available to Wii users to browse the Web from their consoles, though Nintendo has no
Slide 35: Industry update: Set-top boxes
Opera - Simply The Best Internet Experience Industry update: Set-top boxes Trend: IPTV is growing. In Europe there are currently 30 deployments or trials Trend: Operators are moving towards high-end set-top boxes – e.g. featuring PVR, MPEG4 and full Web browser Trend: End-users want the full Web, no
Slide 36: Opera for Desktop
Operational Review Opera for Desktop Opera - Simply The Best Internet Experience
Slide 37: Opera steps up marketing efforts in the U.S.
Opera - Simply The Best Internet Experience Opera steps up marketing efforts in the U.S. Media interviews last four months: USA Today, Wall Street Journal, BusinessWeek, PC World, Washington Post, New York Times, Forbes, eWeek, San Jose Mercury News, Seattle Times, InfoWorld, Popular Science, RCR Wi
Slide 38: Opera for Desktop Third Quarter Highlights
Opera - Simply The Best Internet Experience Opera for Desktop Third Quarter Highlights Sequential revenue growth for the first time since 4Q05. Revenue grew 38% in 3Q06 versus 2Q06 Search revenue up in 3Q vs. 3Q05 and 2Q06 Opera renewed agreement with Adobe. As a result, Opera's standards-base
Slide 39: Opera establishes office in Poland
Opera - Simply The Best Internet Experience Opera establishes office in Poland • On Nov 1st, Opera established an office in Poland • 23 highly skilled software engineers are ready to deliver from day one The Polish office will focus on: • Porting Opera Mobile and Opera Mini to BREW handsets in the A
Slide 40: Opera - Simply The Best Internet Experience
Opera - Simply The Best Internet Experience
Slide 41: Q&A
Opera - Simply The Best Internet Experience Q&A