Slide 1: Opera Software First quarter 2008
Opera Software First quarter 2008
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
Agenda 1. Highlights Erik Harrell, CFO/COO 2. Financial review Erik Harrell, CFO/COO 3. Operational update Business, Consumer Jon S. von Tetzchner, CEO 4. Q&A
Slide 4: 2008 highlights
4 2008 highlights On track, focused and taking advantage of industry trends Business Shipments of Opera Mobile: 10.5 million in 1Q 33 new mobile phones shipping with Opera 5 with Opera Mobile, 28 with Opera Mini HTC ships Touch Diamond with Opera Mobile 9.5 Leading operators select Opera Mini 02 Ger
Slide 5: Revenue 1Q 2008 vs 1Q 2007
Revenue 1Q 2008 vs 1Q 2007 Introduction 57% Revenue highlights 1Q revenue: MNOK 102.7, up 57% vs. 1Q07 Record quarter Desktop revenue MNOK 23.1, up 56% vs. 1Q07 Internet Devices revenue MNOK 80.0, EBITDA ex options 1Q 2008 vs 1Q 2007 up 57% vs. 1Q07 EBITDA highlights 1Q EBITDA: MNOK 11.6 vs. MNOK -7
Slide 6: Financial Review
Financial Review PERA Q OPERA
Slide 7: Income statement
1Q08 financial review 7 Income statement NOK Million 1Q 2008 1Q 2007 Q on Q Desktop + 23.1 14.8 56% Internet Devices + 80.0 50.6 57% Total revenue = 102.7 65.4 57% Payroll and related expenses - 66.0 53.4 23% Stock option costs - 4.0 1.6 150% Depreciation and amortization - 2.0 1.6 24% Other operati
Slide 8: Key financial figures
1Q08 financial review 8 Key financial figures Operating revenues (NOK Million) EBITDA* (Non-IFRS) (NOK Million) * Non-IFRS EBITDA excludes stock option cost
Slide 9: Key revenue drivers in 1Q
1Q08 financial review 9 Key revenue drivers in 1Q Internet Devices revenue 1Q 2008 vs 1Q 2007 Business area 57% Strong revenue growth from key OEM and operator customers - Services revenue particularly strong - This is positive as it indicates potential future license revenue (porting on to new plat
Slide 10: OPEX development
1Q08 financial update 10 OPEX development OPEX (NOK Million) OPEX comments 1Q08 vs 1Q07 • Payroll cost up 23% • Headcount growth worldwide • Stock option costs up 150% • New option program in place (predominantly non-cash) • Share price appreciation of 22% • Option cost low in 1Q07 due to decrease i
Slide 11: EBITDA development
1Q08 financial review 11 EBITDA development 1Q 2007 / 1Q 2008 (NOK Million) Comments on EBITDA development YoY* Revenues up MNOK 37.3 Desktop + MNOK 8.3 Internet Devices + MNOK 29.0 Payroll and related expenses up MNOK 12.5 Engineering Sales and Marketing globally Overall headcount up 37% vs. 1Q07 O
Slide 12: Strong capital structure
1Q08 financial review 12 Strong capital structure Balance Sheet (MNOK) BALANCE SHEET Q1 2008 Q4 2007 Q1 2007 Deferred tax asset 9 370 9 724 11 684 Goodwill 3 143 3 143 3 143 Office machinery, equipment etc., Net 20 424 17 832 24 023 Other investments and deposits 4 651 4 541 Accounts receivables 48
Slide 13: Strong cash flow
1Q08 financial review 13 Strong cash flow CASH FLOW STATEMENT Q1 2008 Cash flow from operating activities Operating cash flow MNOK 34.4 in 1Q 2008 Profit/loss before taxes 10 814 •Primarily through operating profit and Taxes paid -3 469 Depreciation expense 1 963 focused working capital management I
Slide 14: Update on Opera's FY 2008 operational priorities
1Q08 financial review 14 Update on Opera’s FY 2008 operational priorities Priorities YTD status report Focus and invest in consumer area Desktop revenue up 56% YoY Number of desktop users increased 10% in 1Q08 vs. 4Q07 11.9 million unique monthly users of Opera Mini in March 2008 My Opera users up 1
Slide 15: Key strategies to achieve financial goals
1Q08 financial review 15 Key strategies to achieve financial goals Metric Strategies Revenue Continue to scale Consumer area aggressively Opportunity to grow Opera Desktop and Opera Mini revenue significantly More scaleable (standard products) Geographic focus critical to success Reap benefits of cr
Slide 16: Key strategies to achieve financial goals
1Q08 financial review 16 Key strategies to achieve financial goals Metric Strategies Profit Continue to scale Consumer area aggressively High long-term margins Grow user base, reap higher ARPU on Opera Mini and Opera Desktop Continue to focus on top operators and OEMs Greater standardization of prod
Slide 17: Welcome to Capital Markets Day 2008
Welcome to Capital Markets Day 2008 June 19, 2008 13:00-17:00 CET Location: The Norwegian Opera & Ballet House Oslo, Norway Registration required: cmd2008@opera.com Or call Petter Lade at +47 2416 4444
Slide 18: Operations Update
Operations Update
Slide 19: Opera's vision
19 Opera’s vision Opera’s vision is to provide the best Internet experience on any device
Slide 20: This is Opera Software
This is Opera Software Only dedicated Web browser developer End-user movement: company in the world: 510+ employees in 11.9 million unique monthly users of nine countries Opera Mini in March 2008 Unmatched footprint across PCs, mobile Opera Mobile shipped on 100 million phones and other connected de
Slide 21: Leading, global customers...
21 Leading, global customers...
Slide 22: ... and leading, global partners
22 ... and leading, global partners
Slide 23: Opera's unique ability to deliver a world-class mobile browser
23 Opera’s unique ability to deliver a world- class mobile browser Technical Core – a single, powerful rendering engine designed to run on any platform Support quickly evolving standards, to enable a desktop experience on a mobile handset Multiple mobile platforms supported Advanced features such as
Slide 24: The unique differentiators
24 The unique differentiators PocketP Windows Motorola P2K C Smart ltron phone Windows CE/Mobile Superior user experience S60 Media Opera is the smallest full-featured Highway Symbian Platform browser OS Independent UIQ kernel Performs well on low-resource Mac devices QnX Java Opera is the fastest f
Slide 25: The diversity of mobile operating systems
25 The diversity of mobile operating systems 90% of mobile handsets ship with proprietary mobile operating system In 2007, approximately 1.1 billion handsets shipped with a proprietary OS while just 100 million shipped with an open OS Examples of leading, proprietary OSs: S40 (Nokia), EMP (Sony Eric
Slide 26: Opera introduces behind-the-scene look at mobile Web usage
26 Opera introduces behind-the-scene look at mobile Web usage State of the Mobile Web report launched
Slide 27: State of the mobile Web, Q1: Key findings
27 State of the mobile Web, Q1: Key findings One Web triumphs over WAP content Methodology Full Web surfing comprises more than Traffic analysis: aggregated 77% of all traffic. WAP traffic is decreasing traffic generated by approx. 12 million monthly unique users of in the first quarter as more cons
Slide 28: State of the mobile Web: More key findings
28 State of the mobile Web: More key findings People use the Web on their phones Top 10 sites in the USA just like they would on their PC. Top sites mirror PC traffic www.myspace.com www.google.com Country example: United States www.mocospace.com More than 63% of U.S. Web traffic on www.yahoo.com mo
Slide 29: State of the mobile Web: More key findings
29 State of the mobile Web: More key findings The mobile Web bridges the digital Top 10 sites in Russia divide: Opera has users in more than 200 countries and the next billion www.vkontakte.ru people will use a mobile device to come online win.mail.ru www.google.com Country example: Russia www.rambl
Slide 30: Read the full report at www.opera.com/mobile_report
30 Read the full report at www.opera.com/mobile_report
Slide 31: Delivering one Web
Delivering one Web People want to access the same Web-based services regardless of device The cost of teaching people to do something new is too high Most connected devices will have full Web browsers– good for users, operators and manufacturers The browser is now a platform for Web 2.0 applications
Slide 32: Stand-alone vs. Web-based
32 Stand-alone vs. Web-based Question: How much of your time with a PC did you spend with stand-alone applications vs. Web-based apps in 1998? What about now?
Slide 33: The Opera-powered day
33 The Opera-powered day Breakfast: Bus: Work: Boring Airport Recreation: Opera on Opera Opera on meeting: lounge: Opera on laptop Mobile laptop Opera Mini Opera on Wii Archos PMP
Slide 34: Web as a platform gains momentum
34 Web as a platform gains momentum OEMs and operators are looking to leverage the Web as a platform for mobile applications, UIs, and services OEMs and operators looking for an open developer environment they can offer across phones IPTV STBs, VoIP screen phones, PMPs, wall pads and other devices u
Slide 35: Opera Widgets are already in the market
35 Opera Widgets are already in the market Windows, Mac and Linux desktop Archos 605 WiFi portable media player Nintendo Wii KDDI au Gadgets
Slide 36: Operations Update Business area
Operations Update Business area
Slide 37: Industry traction for Opera Mobile 9.5
37 Industry traction for Opera Mobile 9.5 HTC ships Opera Mobile 9.5 UIQ selects Opera Mobile 9.5 for Sony Ericsson handsets Willcom selects Opera for Windows Mobile device One un-named OEM selects Opera Mobile 9.5 More to be announced...
Slide 38: O2 Germany selects Opera Mini
38 O2 Germany selects Opera Mini Opera signs agreement with a leading mobile phone operator, 02 Germany. 02 Germany will pre-install a customized version of the mobile browser Opera Mini on selected handsets as well as making it available as a download over the air (OTA) O2 (Germany) is part of Tele
Slide 39: debitel Germany selects Opera Mini
39 debitel Germany selects Opera Mini Opera signs agreement with another leading mobile phone operator in Germany, the debitel Group, with 13 million subscribers debitel will pre-install a customized version of the mobile browser Opera Mini on selected handsets as well as making it available as a do
Slide 40: Operators and Opera Mini
40 Operators and Opera Mini Full-scale commercial partners: Debitel (Germany) (new) O2 (Germany) (new) PTC/era (Poland) T-Mobile International Tata Teleservices (India) Telefónica Móviles de España (Spain and CALA) TMN (Portugal) Vodafone D2 Distribution deals: GrameenPhone (Bangladesh) Helio (USA)
Slide 41: Opera Mobile: 1Q highlights
41 Opera Mobile: 1Q highlights Number of phone models with Opera pre-installed Shipments of phones with Opera pre-Installed The number of mobile phones shipped with the Opera browser was 10.5 million in 1Q08. 3 new mobile phones that include the Opera Mobile browser were announced in 1Q 5 in total s
Slide 42: Opera delivers breakthrough Web experience on HTC Touch Diamond
42 Opera delivers breakthrough Web experience on HTC Touch Diamond “2008 will come to be known as the year the mobile Internet became usable and the HTC Touch Diamond will be one of the main devices driving this change.” Peter Chou, president and CEO, HTC Corp. Opera Mobile on HTC Touch Diamond Easy
Slide 43: Opera Mobile and Opera Mini: 33 new phones in 2008
43 Opera Mobile and Opera Mini: 33 new phones in 2008 Opera Mobile Opera Mini Motorola Fly (India) Samsung Moto Z10 Fly MC 100 Samsung SGH-A800 Moto Z9 Fly E 130 Samsung F700 Fly B 700 Samsung J700 Sony Ericsson Samsung U900 Sony Ericsson G700 LG Sony Ericsson G900 LG KS20 Sony Ericsson Sony Ericsso
Slide 44: Opera powers the Web on wide variety of devices
44 Opera powers the Web on wide variety of devices
Slide 45: New device categories introduced
45 New device categories introduced Sony selects Opera 9.5 to power digital photo frame Opera delivers Web-based information and services on the device screen Opera selected for the Celio Redfly, a smartphone companion "Opera is able to meet Sony's demands for a rich and user- friendly experience" T
Slide 46: Operations Update Consumer area
46 Operations Update Consumer area
Slide 47: Opera for Desktop
47 Opera for Desktop Global movement continues towards a better, alternative Web browsing experience, focusing on security, speed and flexibility 20+ million monthly users Strong growth continues in rapidly emerging markets
Slide 48: Opera for Desktop: Revenue growth
48 Opera for Desktop: Revenue growth Opera Desktop Revenue (MNOK) Seventh consecutive quarter of growth Revenue growth of 56% compared to 1Q07 Reaping benefits of localization strategy in terms of product features, marketing materials and commercial agreements Opera’s multi-platform advantage drives
Slide 49: Opera Mini: 1Q highlights
49 Opera Mini: 1Q highlights Opera Mini monthly page views Cumulative pages downloaded since launch: 20.0 billion 11.9 million unique monthly users in March 2008 Opera introduced Opera Mini 4.1 Auto-complete URLs 50% faster Save & send images Note: Statistics as of 31. March, 2008
Slide 50: My Opera – at the heart of Opera's universe
50 My Opera – at the heart of Opera’s universe 1,450,000+ members 1,800 signups per day 1,500,000+ page views per day 6,000,000+ photos stored 2,350,00 forum posts 315,000 blogs 120,000+ different pages visited per day
Slide 51: My Opera statistics
My Opera statistics 1500 000 1400000 + 1300000 + 1200000 4 1100000 + 1000000 + 900000 4 800 000 4 fuuuuu 4 600 000 + 500000 4 400000 4 300000 4 200000 4 100000 | 04
Slide 52: In summary...
52 In summary... “The Opera browser on board helps bring the perfect web 2.0 experience.” Toshiba press release at launch of the Portégé G910 device "....which in my humble opinion after using it for several days, is the best mobile browser I've ever used.” Matthew Miller, ZDNet, tests the Opera Mob
Slide 53: Thank you for listening
53 Thank you for listening