Slide 1: Opera Software Second quarter 2008
Opera Software Second q 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
3 Agenda 1. Highlights Erik Harrell, 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 since 1Q presentation
4 4 2008 highlights hi hli ht since 1Q presentation On track, focused and taking advantage of industry trends Business 80 new mobile phones shipping with Opera 32 with Opera Mobile, 48 with Opera Mini Year to date total: 113 Shipments of Opera Mobile: 7.8 million in 2Q Leading operator Swisscom sele
Slide 5: Introduction
Revenue 2Q Q 2008 vs 2Q Q 2007 Introduction 50% Revenue highlights g g 2Q revenue: MNOK 112.7, up 50% vs. 2Q07 Record quarter Desktop revenue MNOK 23.2, up 49% vs. 2Q07 Internet Devices revenue MNOK 89.5, EBITDA ex options 2Q 2008 vs 2Q 2007 up 50% vs. 2Q07 EBITDA highlights 2Q EBITDA: MNOK 19.4 vs.
Slide 6: Financial Review
Financial Review & OPERA software
Slide 7: 2Q08 financial review
2Q08 financial review 7 MNOK 2Q 2008 2Q 2007 Q on Q 1H 2008 1H 2007 1H on 1H Desktop + 23.2 15.6 49% 46.3 30.4 52% Internet Devices + 89.5 59.7 50% 169.1 110.3 53% Total revenue = 112.7 75.3 50% 215.4 140.7 53% Payroll and related 69.3 49.3 41% 135.2 102.7 32% expenses - Stock option costs - 1.4 3.4
Slide 8: Key financial figures
2Q08 financial review 8 K fi Key financial i l figures fi Operating revenues (NOK Million) EBITDA* (Non-IFRS) (NOK Million) * Non-IFRS EBITDA excludes stock option cost
Slide 9: Key revenue drivers in 2Q
2Q08 financial review 9 Key revenue drivers in 2Q Internet Devices revenue 2Q 2008 vs 2Q 2007 Business area Strong revenue growth from key OEM and 50% operator customers - Development fee revenue particularly strong - This Thi is i positive iti as it indicates i di t potential t ti l future f t li
Slide 10: OPEX development
2Q08 financial update 10 OPEX development d l t OPEX (NOK Million) OPEX comments 2Q08 vs 2Q07 • Payroll cost up 41% •Headcount growth worldwide of 35% since 2Q07 • Expect headcount additions in the 2H08 to be comparable to slightly higher than 1H08 • St k option Stock ti costs t down d 59% •New opti
Slide 11: EBITDA development
2Q08 financial review 11 EBITDA d development l t 2Q 2007 / 2Q 2008 (NOK Million) Comments on EBITDA development YoY* Revenues up MNOK 37.4 Desktop + MNOK 7.6 Internet Devices + MNOK 29.8 Payroll and related expenses up MNOK 20.0 Engineering Sales and Marketing globally Overall headcount u
Slide 12: Strong capital structure
2Q08 financial review 12 St Strong capital it l structure t t Balance sheet (MNOK) BALANCE SHEET 30 06 2008 30.06.2008 30 06 2007 30.06.2007 FY 2007 (Unaudited) (Unaudited) (Audited) Deferred tax asset 5 184 12 321 9 724 Goodwill 3 143 3 143 3 143 Office machinery, equipment etc., Net 21 613 23 709
Slide 13: Strong cash flow
2Q08 financial review 13 Strong cash flow 1H CASH FLOW STATEMENT Q2 2008 (Unaudited) Operating cash flow MNOK 2.0 in 2Q 2008 Cash flow from operating activities Profit/loss before taxes 24 551 Taxes paid -2 496 Depreciation expense 1 823 Impariment of shares 0 Changes in accounts receivable *) -25 1
Slide 14: Update on Opera's FY 2008 operational priorities
2Q08 financial review 14 Update on Opera’s FY 2008 operational priorities Priorities YTD status report Focus and invest in consumer area Desktop revenue up 52% 1H08 vs 1H07 Number of desktop users increased 15% in 2Q08 vs. 4Q07 15 8 million unique monthly users of Opera Mini in July 2008 15.8 Signed
Slide 15: Key strategies to achieve goals: Business Area
Goals 2008-2009 15 Key strategies to achieve goals: Business Area Revenues Profit Continue to focus on top mobile Focus on top customers and operators and OEMs opportunities Expand server product offerings to top Continous improvement in engineering Operators [e.g., widgets hosted planning relative
Slide 16: Key strategies to achieve goals: Consumer Area
Goals 2008-2009 16 Key strategies to achieve goals: Consumer Area Revenues Profit Aggressively grow Opera Desktop and Continue to maximize standardization of Opera Mini users in top ten target products geographic markets Prioritize most strategic features and Leverage Opera Link and increase functio
Slide 17: Invitation to Extraordinary General Meeting in Opera Software ASA
17 Invitation to Extraordinary General Meeting in Opera Software ASA Date: September 29, 2008 Time: 16:00 CET Location: Hotel Continental Stortingsgaten 24/26 Oslo, Norway
Slide 18: Operations Update
Operations Update
Slide 19: Opera's vision
19 Opera’s vision Opera’s O ’ vision i i iis to provide id the h bbest Internet experience on any device
Slide 20: This is Opera Software
20 This is Opera Software The world’s leading Web browser End-user movement: developer company: 529 employees in 15.8 million unique monthly users of nine countries Opera Mini in July 2008 Unmatched footprint across PCs, mobile Opera Mobile shipped on 100 million phones and other connected devices p
Slide 21: The vision has become reality
21 Th vision The i i has h become b reality lit
Slide 22: The differentiators
22 Th diff The differentiators ti t Motorola PocketP oc et Windows P2K S Superior i user experience i C Smart ltron Opera is the smallest full-featured phone Windows CE/Mobile browser Media S60 Highway Performs P f wellll on llow-resource Symbian Platform devices OS Independent UIQ kernel Opera is t
Slide 23: Opera's unique ability to deliver a world-class cross-platform browser
23 Opera’s unique ability to deliver a world- world class cross-platform browser Technical Core – a single, powerful engine Support pp q quickly y evolving g standards Multiple mobile platforms supported Advanced features such as tabs, Opera Zoom, full- page view, AJAX support Organizational
Slide 24: The diversity of mobile operating systems
24 The diversity of mobile operating systems 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 leading, proprietary OSs: S40 (Nokia), EMP
Slide 25: Where the world is going
Where the world is going Q OPERA software
Slide 26: There is only one Web
There is only one Web People want to access the same Web-based services regardless of device The costt off teaching Th t hi people l to t do d something new is too high Most connected devices de ices will ill ha have e full Web browsers– good for users, operators and manufacturers The browser is now
Slide 27: Stand-alone vs. Web-based
27 Stand alone vs Stand-alone vs. Web Web-based based Q Question: ti 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 28: The Opera-powered day
28 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 29: Web as a platform gains momentum
29 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 p developer p environment they can offer across phones STBs VoIP screen phones, IPTV STBs, phones PMPs, wall pads and
Slide 30: Opera Widgets are already in the market
30 Opera Widgets are already in the market Windows, Mac and Linux desktop Archos 605 WiFi portable media player Nintendo Wii KDDI au Gadgets
Slide 31: State of the mobile Web report
31 State of the mobile Web report
Slide 32: The growth of the mobile Web continues
32 The growth of the mobile Web continues July 2007: 3.5 million unique monthly users of Opera Mini July 2008: 15.8 million unique Growth: users 351% July 2007: People viewed 860 million Web pages with Opera Growth: G th Mini July 2008: 3 viewed 3.7 7 billion pages were 330%
Slide 33: State of the mobile Web, July: Key findings
33 State of the mobile Web Web, July Key findings Across-the-board growth Methodology Usage of the mobile Web continues to Traffic analysis: aggregated grow in i tterms off unique i users, page views, i traffic generated by approx. approx 16 million monthly unique users of and data transferred. Oper
Slide 34: State of the mobile Web: More key findings
34 State of the mobile Web: More key findings Top 10 sites in July, based on unique users Mobile traffic mirrors PC traffic Top 10 sites in the USA Top 10 sites in China - Social S i l networking t ki iis h huge on mobile bil - Search S h services i d drive i ttraffic ffi 1. google.com 1. kong.net 2
Slide 35: State of the mobile Web: More key findings
35 State of the mobile Web: More key findings The world’s hottest mobile Web phones Worldwide Country example: South Africa - Nokia and Sony Ericsson dominates - Samsung is hot 1. Nokia N70 1. Samsung S E250 2. Nokia N73 2. Samsung E370 3. Nokia 6300 3. Samsung D900i 4. Sony Ericsson K750i 4. Nokia
Slide 36: Operations Update: Business area
Operations Update Business area
Slide 37: Swisscom joins Opera Mini revolution
37 Swisscom joins Opera Mini revolution Opera signs an agreement with the leading operator in Switzerland, Swisscom “We wanted the most feature-rich and fastest browser available that will work on all the Swisscom mobile phones on the market today. Opera Mini has proven its value to millions of user
Slide 38: Opera Mini heads south
38 Opera Mini heads south Leading operator Movistar in Mexico selects Opera Mini A Opera Branded customized Spanish-speaking version of Opera Mini meets 14.2 million subscribers Opera Mini g goes to Africa For the first time, an African operator selects Opera Mini for major j mobile Internet The bro
Slide 39: Operators and Opera Mini
39 Operators and Opera Mini Operator-branded: Debitel (Germany) O2 (Germany) O2 (Slovakia) (new) Branding & colors PTC/era (Poland) properly represented Swisscom (Switzerland) (new) T Mobile International T-Mobile Tata Teleservices (India) Search Integration Telefónica Móviles de España (Spain and C
Slide 40: Opera Mobile 9.5 ships on more top-notch devices
40 Opera Mobile 9 9.5 5 ships on more top- notch devices Samsung Omnia, running Windows Mobile, features the p Opera browser
Slide 41: Opera Mobile hits mass market
41 Opera Mobile hits mass market The much-anticipated Opera Mobile 9.5 takes the leap into the public domain with ith th the llaunch h off th the fifirstt b beta t Innovations include: Pan and zoom Save pages and/or images Improved user interface Increased speed Opera Dragonfly developer t
Slide 42: Opera introduces development kit for Widgets
42 Opera introduces development kit for Widgets The Opera Widgets SDK (beta) allows developers to put Web applications li ti on any ddevice i Emulator, libraries, document and Opera Dragonfly for debugging
Slide 43: Opera Mobile: 2Q highlights
43 Opera Mobile: 2Q highlights Number of phone models with Opera pre-installed Shipments of phones with Opera pre-Installed 70 63 60 50 40 37 35 30 24 20 13 10 6 0 2003 2004 2005 2006 2007 2008 YTD The number of mobile phones shipped with the Opera browser was 7.8 million in 2Q08. 32 new mobile phon
Slide 44: Opera Mobile and Opera Mini: 113 new phones in 2008
44 Opera Mobile and Opera Mini: 113 new phones in 2008 Opera Mobile Casio Panasonic P i Toshiba T hib Panasonic W61P Toshiba W61T Casio Hitachi W61CA Toshiba Sportio Casio W62CA Pantech Toshiba W62T Pantech W61PT Hitachi Pantech W62PT WILLCOM Hitachi W61H WILLCOM 03 Hitachi W62H Samsung Willcom WX33
Slide 45: Opera Mobile and Opera Mini: 113 new phones in 2008
45 Opera Mobile and Opera Mini: 113 new phones in 2008 Opera Mini Fly (India) Nokia N ki Motorola M t l Sony Ericsson S Ei Fly MC 100 Nokia N82 Motorola V3 Sony Ericsson K818c Fly E 130 Nokia N81 Motorola V9 Sony Ericsson K750i Fly B 700 Nokia N86 Sony Ericsson W380i Nokia 5000 Samsung S Sony Ei Eri
Slide 46: Opera powers the Web on a wide variety of devices
46 Opera powers the Web on a wide variety of devices
Slide 47: Opera Devices – continued growth and new device categories announced
47 Opera Devices – continued growth and new device categories announced Opera selected for Philips connected TVs USEN Corporation has licensed Opera Devices SDK 9.5 to make the Opera Web browser available on a new range of set-top boxes ARCHOS introduces new line-up of media and Internet devices, fe
Slide 48: ARCHOS Redefines Mobile Internet and Media With Its Internet Media Tablets
48 ARCHOS press release, Aug. 20, 2008: “ARCHOS Redefines Mobile Internet and Media With Its Internet Media Tablets” Opera again selected for ARCHOS’s media tablet Three new devices: ARCHOS 5 ARCHOS 5 5g ARCHOS 7
Slide 49: Operations Update: Consumer area
49 Operations p Update p Consumer area
Slide 50: Opera for Desktop
50 Opera for Desktop New version of Opera introduced in June 5 days, 4.5 million downloads Opera 9.5 redefines the browsing experience Opera Link, Quick Find and a new user interface
Slide 51: Opera for Desktop: Revenue growth
51 Opera for Desktop: Revenue growth Opera Desktop Revenue (MNOK) Eight consecutive quarter of growth Revenue growth of 49% compared to 2Q07 Reaping benefits of localization strategy in terms of product features, marketing materials and commercial agreements Opera’s multi-platform advantage drives a
Slide 52: Opera Mini: 2Q highlights
52 O Opera Mini: Mi i 2Q highlights hi hli ht O Opera Mini Mi i monthly thl page views i Cumulative pages 4 000 000 000 downloaded since 3 500 000 000 launch: 31 31.8 8 billion (as of end of July 2008) 3 000 000 000 2 500 000 000 15.8 15 8 million unique niq e 2 000 000 000 monthly users in July 1 5
Slide 53: My Opera – at the heart of Opera's universe
53 M Opera My O – att th the heart h t off Opera’s O ’ universe i 1.655,227+ members 1,747 signups per day (average) 1 500 000+ page views per day 1.500,000+ 6.653,250+ photos stored 2.411,814 forum posts 354,666 blogs 120,000+ different pages visited per day
Slide 54: In summary...
54 In summary... summary “I have found using g Opera p Mini brings me a much better experience than my default f browser " browser. Mobile Internet analyst Michael Wolf at ABI Research (USA) reviews the software on his BlackBerry 8830
Slide 55: Thank you for listening
55 Thank you for listening