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2 I. Overview II. Market Opportunity III. Mobile Consumers IV. Mobile Operators V. Mobile Publishers & Advertisers VI. Summary Opera’s Financial Performance Has been strong since end of 2009 Revenue CAGR of 32% and adjusted EBITDA CAGR of 72% since 2009
Revenue (MUSD) Revenue Growth Adj EBITDA* (MUSD) Adj EBITDA Growth $ 250 45 % $ 70 120 % 40 % $ 60 100 % $ 200 35 % $ 50 30 % 80 % $ 150 25 % $ 40 60 % 20 % $ 100 $ 30 15 % 40 % $ 20 10 % $ 50 20 % 5 % $ 10 $ 0 0 % $ 0 0 % 2009 2010 2011 2012 2009 2010 2011 2012
4 The Opera Cloud for Mobility: Key Strategic Areas Revenue growth driven by smartphones and tablets
Mobile Consumers
Mobile Mobile Operators Advertising
5 Opera helps partners reach its massive mobile audience Skyfire helps Opera power the entire mobile ecosystem 500 mm user reach
250 million users 250 million users
Opera Network Member Opera websites and applications Websites/Applications
Search, operators and developers
Advertisers
Media Optimization Capabilities 6 I. Overview II. Market Opportunity III. Mobile Consumers IV. Mobile Operators V. Mobile Publishers & Advertisers VI. Summary Smartphones Massive opportunity 5 billion smartphone users by 2016, up 1 billion from 2012 Smartphones and Tablets dwarfs PC shipments
Source: IDC | 9 5 billion smartphone users by 2016, up 1 billion from 2012 Time spent on smartphones has doubled during last 2 years alone
Minutes spent Applications Mobile Web
140 120 100 80 60 40 20 0 Dec. 2010 Dec. 2011 Dec. 2012
Source: Nilesen Smartphone Analytics (US Smartphone Users)
| 10 Mobile data Massive opportunity A value proposition for the entire mobile data market Mobile data revenue expected to double from 2012 to 2016 ($USB)
$ 1,000 $ 900 $ 800 Mobile Data $ 700 Mobile Data $ 600 $ 500 SMS/MMS SMS/MMS $ 400 $ 300 $ 200 Voice Voice $ 100 $ 0 2012 2016 12 A value proposition for the entire mobile data market Video data traffic expected to consume 67% of global bandwidth by 2017
Where we are today 13 Mobile Advertising Massive opportunity Mobile ad spend expected increase 4x from 2012 to 2016
15 Mobile ad revenue will follow mobile audience
Source: Mary Meeker, KPCB (Kleiner Perkins Caufield Byers) 2012 16 I. Overview II. Market Opportunity III. Mobile Consumers IV. Mobile Operators V. Mobile Publishers & Advertisers VI. Summary Opera’s mobile user base: 250 million active users Recent growth driven smartphone users
Smart Phone Feature Phone 250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
18 More than 50 million Android users 10% browser market share
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0 Key features on Android Opera Owned and Operated Properties Areas of monetization
Partnerships Search Advertising 21 Mobile consumers: Very strong long term growth
Revenue driven by Opera/Skyfire Monetization of Opera O&O mobile user/audience growth Properties via partners
Opera Mobile Users (Mill) 400 350 Ads 300 250 200 Opera/Skyfire 150 Web/App 100 Users 50 Search Store 0 2009 2010 2011 2012 2013 2014 2015 22 I. Overview II. Market Opportunity III. Mobile Consumers IV. Mobile Operators V. Mobile Publishers & Advertisers VI. Summary Commercial partnerships with 120+ operators
60+ million Opera users activated 24 A Broad Operator Portfolio Spanning from access, to monetization, to network management
Smartphones, Tablets & Mi-Fi Rocket Horizon Boost Platform Optimizer
Opera Web Pass
Opera Mini co-brand Feature phones
Increase revenue Manage traffic | 25 Skyfire Rocket Optimizer delivers 50-60% boost Lift in Supported Users at Bottlenecked Network Nodes
Video and Audio 64% Savings
HTTP Images 20% Savings 45% Savings
Supersize the Network, Make Capacity Elastic Solution generating over 38% savings on total peak data at congestion points. Equivalent to boosting capacity on Spectrum, RAN and backhaul by 60% 26 Horizon Strategic Proposition
• For consumers, Skyfire Horizon fills lack of mobile browser personalization, extensions and toolbars
• Horizon provides a “wingman” for users, both pre- embedded or as a download across multiple browsers
• For operators, challenge as they lose contact with their customers on leading smartphone platforms, traditional “portals” dwindling
• Creates “beach front” property for operators or portals, similar to Opera Mini Co-Brands – enables Opcos ability to generate advertising, search, and eCommerce revenue + communicate with subs
• Cloud CMS platform seamlessly updates client, giving Operators a cloud publishing platform 27 Operators: Strong Revenue Growth
Opera & Skyfire Revenue Building Blocks Operator Value Proposition
Rocket Optimizer Data plans / revenue
Horizon Extension Platform Grow subs Reduce churn Opera Boost High Growth Content revenue Web Pass for Smart phones Reduce network cost Audience Analytics Ad revenue Opera Mini Co-brand Capex savings Mature Opera Mini Data Plans Mobile store 28 I. Overview II. Market Opportunity III. Mobile Consumers IV. Mobile Operators V. Mobile Publishers & Advertisers VI. Summary Mobile Publishers & Advertisers (Opera Network Members) Mobile Advertising Platform that covers the full value chain
Consumer Retail Packaged Goods Finance Lifestyle B2B v v v v v
Advertisers
Publishers
30 Core Metrics (Opera Network Members) Significant Market Reach and Presence
50B+ 250M+ Ad impressions monthly Monthly unique consumers
13k+ $400M+ Mobile sites & Apps Publisher revenue enabled in 2012
31 Marquee Publisher Customers: Premium Brands 20 of the top 25 Media Companies around the World
32 Marquee Advertisers: Premium Brands 70 of the top 100 AdAge Advertisers in the U.S.
33 New Offering: Performance Advertising
34 Mobile Publishers and Advertisers (Opera Network Members)
Revenue growth facilitated by increased And driven by Ad dollars from display and audience reach via partner network. performance advertisers.
AdMarvel Audience Reach (Mill) Existing Markets New Markets
400 US (60% CAGR* 2012-2015) Country 2012-2015 UK (57% CAGR* 2012-2015) 350 CAGR* China 80% 300 Ad revenue 250 follow the Indonesia 87% audience 200 India 86% Brazil 80% 150 Russia 43% 100 Western 40% 50 Europe 0
35 I. Overview II. Market Opportunity III. Mobile Consumers IV. Mobile Operators V. Mobile Publishers & Advertisers VI. Summary Summary: Pillars of Long-Term Growth
Continue to build up a Mobile ad and partner dollars massive mobile audience will follow the audience
Strong Long Term Revenue Growth
Provide highly value added products to key player in the Grab unfair share of mobile ecosystem: smartphone users Operators
37