Slide 1: Opera Software Second quarter 2009
Opera Software Second quarter 2009
Slide 2: A note from our lawyers
A note from our lawyers 2 DISCLAIMER: This presentation contains, and is i.a. based on, forward-looking statements regarding Opera Software ASA and its subsidiaries. These statements are based on various assumptions made by Opera Software ASA, which are beyond its control and which involve known and
Slide 3: Agenda
3 Agenda 1. Highlights Erik 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: 2Q09 + 3QTD
4 Operational highlights: 2Q09 + 3QTD Priority Overview Areas Operators Signed an agreement with Motricity to deliver Opera Mini to a leading North American mobile operator SK Telecom, the leading mobile operator in Korea, will deploy an operator branded version of the Opera Mini mobile browser Mobi
Slide 5: 2009 financial highlights
2Q09 financial review 5 2009 financial highlights Priorities 2Q status report 1H status report Revenue MNOK 172.4 (+53% vs MNOK 335.4 (+56% vs 2Q08) 1H08) EBITDA* MNOK 36.4 (MNOK 20.8 in MNOK 67.7 (MNOK 36.4 in 2Q08) 1H08) Operating MNOK -29.2 (MNOK 2.0 in MNOK 30.5 (MNOK 36.4 in Cash Flow 2Q08) 1H0
Slide 6: Financial Review
Financial Review Q OPERA software
Slide 7: 2Q09 financial review
2Q09 financial review 7 MNOK 2Q 2009 2Q 2008 Q on Q 1H 2009 1H 2008 1H vs 1H Desktop + 44.8 23.2 93% 91.8 46.4 98% Internet Devices + 127.7 89.5 43% 243.6 169.1 44% Total revenue = 172.4 112.7 53% 335.4 215.4 56% Payroll and related 99.7 69.3 44% 200.9 135.2 49% expenses - Stock option costs - 3.8 1
Slide 8: Key financial figures
2Q09 financial review 8 Key financial figures Operating revenues (NOK Million) EBITDA* (Non-IFRS) (NOK Million) 200 45 180 172 35 36 160 36 163 157 31 140 25 26 120 125 21 113 15 100 16 103 93 12 12 80 10 82 75 5 7 60 -1 -1 5 61 65 -2 3 -2 -3 2 3 52 53 -5 -6 40 48 48 -5 40 38 20 30 28 -12 22 23 25 -
Slide 9: Revenues: 2Q09
2Q09 financial review 9 Revenues: 2Q09 Area Comments: Revenues (vs. 2Q08) Business Operators: Strong growth in revenue from operators, both from existing and new agreements. Device OEMs: Large increase in revenue from existing and new customers Mobile OEMs: Slight increase in revenue driven by devel
Slide 10: OPEX development
2Q09 financial review 10 OPEX development OPEX (NOK Million) Payroll Stock Options Depreciation Other OPEX Non recurring costs OPEX comments 2Q09 vs. 2Q08 160 • Total operating expenses up 50% 140 Expect total operating expenses/employee to be slightly higher in 2H compared 120 to 1H 100 • Payroll c
Slide 11: EBITDA development
2Q09 financial review 11 EBITDA development 2Q 2008 / 2Q 2009 (NOK Million) 90,0 80,0 Comments on EBITDA development YoY* 70,0 Revenues up MNOK 59.7 Desktop + MNOK 21.5 60,0 Internet Devices + MNOK 38.2 50,0 Payroll and related expenses up 40,0 MNOK 30.4 Engineering 30,0 Sales and Marketing
Slide 12: Strong capital structure
2Q09 financial review 12 Strong capital structure Balance sheet (MNOK) Balance sheet highlights 1000 Metric 2Q09 2Q08 800 Cash and cash equivalents 600 Cash MNOK 587 MNOK 493 400 Current assets 200 0 Fixed assets NWC* MNOK -13 MNOK 33 30.06.2008 31.12.2008 30.06.2009 Equity MNOK 657 MNOK 560 Total E
Slide 13: Cash flow
2Q09 financial review 13 Cash flow Cash flow highlights 40 2Q09 2Q08 Millions 35 30 Operating MNOK -29 MNOK 2 cash flow 25 Investments MNOK -17* MNOK -3 20 15 Financing MNOK 5** MNOK 7** 10 Cash balance MNOK 587 MNOK 493 5 * Opera Software ASA acquired Mobica Solutions, a wholly owned 0 subsidiary o
Slide 14: Operational focus FY2009
2Q09 financial review 14 Operational focus FY2009 Grow revenues across customer segments Be mindful of the macroeconomic environment Continue to invest, while being extra vigilant on costs Focus on operating cash flow Note: This does NOT constitute financial guidance
Slide 15: Key strategies: Revenues
2Q09 financial review 15 Key strategies: 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 Leverage Opera Link a
Slide 16: Key strategies: Profits
2Q09 financial review 16 Key strategies: Profits Business area Consumer area Focus on top customers and Prioritize most strategic features and opportunities functions Continously align engineering planning Optimize headcount growth and priorities relative to projected demand Monitor efficiency of Op
Slide 17: Operations Update
Operations Update
Slide 18: Opera's vision
18 Opera’s vision Opera’s vision is to provide the best 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: 740+ employees in 29.1 million unique monthly users of more than ten countries Opera Mini in July 2009 Unmatched footprint across PCs, mobile Opera Mobile shipped on 130+ phones and other connected de
Slide 20: Opera's unique ability to deliver a world-class, cross-platform browser
20 Opera’s unique ability to deliver a world-class, 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 proje
Slide 21: One browser core powers One Web
21 The unique differentiator: One browser 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- OS independent UIQ core Mac QnX Java Unix J2ME Qte Free (Mini) Qt Linux BSD Solaris BREW Nintendo Qtop
Slide 22: Proprietary mobile operating systems will drive the Web as the application platform
22 Proprietary mobile operating systems will drive the Web as the application platform 90% of mobile handsets ship with a 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,
Slide 23: Opera's global customers
Opera’s global customers Peaverfore ER PHILIPS --F--Mobile: @ sorwerisson FCCLA THALES po bro O, tilgin = s) SoftBank swisscom eens ARCHOS En } Sagem Télécommunications - Oeen! TOSHIBA EMobile Meridian == WILLCOM WESTELL 2 HITACHI > CASIO. @ mororota YaHOoo! 7{— = —* 4 x K OPTIMUS nvipia. p Vp ig th
Slide 24: There is only One Web
24 There is only One Web… Devices, platforms and networks: They come in all shapes and sizes. Only one thing unifies them: The Web
Slide 25: 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 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 application
Slide 26: Exercise: Find the Windows applications...
26 Exercise: Find the Windows applications...
Slide 27: Opera Widgets are already in the market
27 Opera Widgets are already in the market Windows, Mac and Linux desktop Archos 605 Wi-Fi portable media player Nintendo Wii KDDI au Gadgets
Slide 28: Reinventing the Web: Opera Unite
Reinventing the Web: Opera Unite allows you to make the data on one machine accessible from anywhere No need to upload data to share it with others. Publish it directly from your own computer Opera Unite is extendable by installing new and free services with more functionality from unite.opera.com
Slide 29: Opera Unite: How it reinvents your Web experience
29 Opera Unite: How it reinvents your Web experience File sharing Share files directly from your computer in a simple and safe way Media player Access your complete home music library from wherever you are Photo sharing Share your personal photos with friends around the world without the need to upl
Slide 30: Opera Unite: how it reinvents your Web experience
30 Opera Unite: how it reinvents your Web experience The Fridge Leave notes on your computer for people in this fun place The Lounge Invite your friends to a chat in The Lounge hosted on your computer Web server Host your Web sites, running them from your own computer
Slide 31: IntoMobile on Opera Unite quote
31 "One small step for software, one giant leap for the internet" – IntoMobile on Opera Unite
Slide 32: Operations Update Business area
Operations Update Business area
Slide 33: Opera's unique ability to cover the entire mobile value chain
33 Opera’s unique ability to cover the entire mobile value chain Purpose build for a WEB Can support browsing Not built for environment With limitation WEB browsing Opera Turbo Number of units shipped Browsing capability Opera Widgets Opera Mobile Opera Mini PPC / Smart Phones Feature Phones Basic P
Slide 34: Why operators choose Opera Mini
Why operators choose Opera Mini • Instant recognition of Web pages Increase ARPU through frequent data usage • Dynamic user experience ensures that users keep clicking on links • Intuitive and familiar interface to any Attract new customers content, any time, from any mobile Improve customer retenti
Slide 35: The power of Opera Widgets
35 The power of Opera Widgets and why they are hot among operators and OEMs Widgets are single-purpose access points to Web content/services They are dynamic Web applications that are connected to the Internet but act like native code applications Real people get: Instant access to content One exper
Slide 36: Leading, global operators select Opera Mini
36 Leading, global operators select Opera Mini United States: Motricity Opera partnered with Motricity to deliver Opera Mini to a leading North American mobile operator South Korea: SK Telecom About Motricity: Drives the delivery of personalized mobile SK Telecom will deploy an operator data offerin
Slide 37: Operators and Opera Mini
37 Operators and Opera Mini Operator-branded (11): Opera-branded (19): Cell One (Namibia) GrameenPhone (Bangladesh) Debitel (Germany) HT Telecom (Europe) Motricity (USA) (new in 2Q) mobilkom (Austria) O2 (Slovakia & Germany) Mobitel (Sri Lanka) PTC/era (Poland) Movistar (Mexico) SK Telecom (new in 2
Slide 38: Opera is on board the new nüvifone M20 from Garmin-Asus
38 Opera is on board the new nüvifone M20 from Garmin-Asus With Opera Mobile 9.5, users of the nüvifone M20 can get online while on the go, easily navigating their favorite Web sites with a few finger taps. Opera Mobile includes panning and zooming technology for better viewing of selected content,
Slide 39: Opera Mobile: 10 new models to date in 2009
39 Opera Mobile: 10 new models to date in 2009 HTC HTC Touch 3G HTC Touch Diamond2 HTC Touch Pro2 Garmin-ASUS nüvifone M20 Motorola MOTOSURF A3100 Motorola A1200R Samsung Samsung Mondi XDA (O2) XDA Ignito Toshiba Toshiba Biblio Toshiba T0002
Slide 40: Opera Mini: 71 new models to date in 2009
40 Opera Mini: 71 new models to date in 2009 Haier Motorola Samsung Sonim Haier CG100 Motorola E8 Samsung C3050V Sonim XP3.20 Motorola K1M Samsung M310 Motorola V3C Samsung S3500V Spice Huawei Samsung S7220 Spice-D-1111 Huawei 736 Huawei 835 Nokia Samsung S7350 UTStarcom Huawei C2900i Nokia 2865 Sam
Slide 41: Opera Devices: Pushing boundaries of One Web
41 Opera Devices: Pushing boundaries of One Web Two areas of use: Full Internet browsing Opera Devices SDK is used to develop a full- fledged browser for surfing Application environment Opera Devices SDK powers a device with menu system, user interface, widgets and applications
Slide 42: Opera signs Devices deal with Thomson
42 Opera signs Devices deal with Thomson Thomson is the world leading Opera will provide Thomson with provider of solutions for the its Opera Devices SDK for creation, management, delivery deployment on its product and access of content for the platforms Communication, Media & These product platform
Slide 43: Opera works with Creative
43 Opera works with Creative The Opera Devices SDK 9.7 has been selected by ZiiLABS, a wholly owned subsidiary of Creative Technology Ltd., to bring full Web browsing and a Web application environment to its new developer platform, the handheld Zii EGG StemCell Computer Opera delivers tools to creat
Slide 44: Devices with Opera
44 KDDI au BOX Sony VGF-CP1 Sony Bravia Video Internet link Nintendo DSi Nintendo Wii ASUS Eee Top PC Phillips Net TV Archos 5 & 7 Iwatsu Precot IP Phones Amino set-top box Ford trucks and vans Telsey Waves VCom NDVB-9000 Tilgin Mood 300 & 400
Slide 45: Operations Update Consumer area
45 Operations Update Consumer area
Slide 46: Opera 10 gets ready for the red carpet
46 New features, new speed and new surprises await Opera 10 gets ready for the red carpet
Slide 47: Turbo charging Opera 10: Opera Turbo
47 Turbo charging Opera 10: Opera Turbo Opera Turbo cures the bandwidth blues On slow connections, Opera Turbo speeds up the download of content by as much as 80% The result: A fast, attractive Web experience at a lower cost
Slide 48: Opera 10 to be released on Sept. 1
48 Opera 10 to be released on Sept. 1 Why you need it: Opera Turbo cures the bandwidth blues New, intuitive design Powerful speed and performance improvements New and better tabbed browsing Improved e-mail client Spell checking … and much more…
Slide 49: Opera for Desktop: Revenue growth
49 Opera for Desktop: Revenue growth Opera Desktop Revenue (MNOK) 50 Revenue growth of 93% 45 compared to 2Q08 40 35 User growth 65% compared to 2Q08 30 25 Reaping benefits of localization 20 strategy in terms of product features, marketing materials 15 and commercial agreements 10 5 Higher user gro
Slide 50: Global Internet penetration now at 23.8%
The big picture: Global Internet penetration now at 23.8% - as indicator of market opportunity
Slide 51: Users embrace the Mobile Web
Users embrace the Mobile Web More users Number of Opera Mini users in July 2008: 15.8 million Number of Opera Mini users in July 2009: 29.1 million Data traffic growth (July 2008 – July 2009) + 233% (to 187 million MB)
Slide 52: U.S. snapshot
U.S. snapshot The growth of the Mobile Web Top 10 sites continues in the United States 1. google.com Page-view growth since July 2008: 2. facebook.com 189.5% 3. myspace.com Unique-user growth since July 2008: 4. yahoo.com (up from 7) 60.8% 5. wikipedia.org (down from 4) Page views per user in July 2
Slide 53: Opera Mini
53 Opera Mini: Opera Mini monthly page views In July 2009, Opera Mini had nearly 29.1 12 000 000 000 million users, a 9.9% increase from June 10 000 000 000 and up 145% compared to July 8 000 000 000 2008. 6 000 000 000 Opera Mini users viewed more than 12 billion pages in July 4 000 000 000 2009. S
Slide 54: Opera Mobile 9.7 hits the streets
54 Opera Mobile 9.7 hits the streets New beta with Opera Turbo speed, widgets and upgraded engine Speed is at the heart of Opera Mobile 9.7, featuring Opera Turbo technology for faster surfing Opera has also included its newly upgraded browser engine, for faster page loads and better overall perform
Slide 55: My Opera – at the heart of Opera's universe
55 My Opera – at the heart of Opera’s universe Strong growth in users and traffic Total members: 2,714,255 Average daily signups: 4,506 Average daily page views: 1,606,760 (Numbers by August 25, 2009)
Slide 56: Thank you for listening
Thank you for listening