Opera leading the way in full Internet
Kai Leppnen Vice President, Mobile
The best Internet experience on any device

Agenda

Introducing Opera to III VAS audience Mobile Product Portfolio Web vs WAP Web vs WAP Proof of Concept

Operas Mission

Deliver the best possible Internet experience to all Internet users, regardless of geography and skill levels, across all devices.
Opera for Desktop Multiplatform desktop browser for Windows, Linux and Mac.
Opera for Mobile Web browser solutions for any mobile phone.
Opera for Devices Embedded browser for verticals, TV, game consoles and IP solutions.

Opera History and Future

Focus R&D Desktop Keyboard navigation Multiple Documents Innovation Image zooming Mouse Gestures R&D Internet Devices Cross-platform development Commercialisation Expanding in the value chain
Small Screen Rendering Opera Platform Footprint reduction Multimodal Porting to EPOC Spatial navigation ERA Smart frames Web forms Focus on Modularisation Table magic Home Media Opera Show DOM/BIDI for Smartphones

Features

Products
Opera is already in a 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
Operas Reformatting Technologies

176x208 SSR

320x240 MSR Extensible Rendering Architecture (ERA)

700x512 TVR

Our rendering technologies adapts content of a web page dynamically to fit any screen orientation and resolution
[Opera's] new software will help transform the wireless Web from a misnomer into a reality.

The Economist, 2005

Opera for Mobile
Web browser solutions for any mobile phone.
Opera Mobile: Same code base 3 products

Opera Mobile Widgets

Device independent platform for mobile web applications

Opera Mobile

Full web client browser for Smartphones

Opera Mini

Light java browser for mid-tier and feature phones

Why Mobile browsing?

$ Value
Service providers need a strategy for the full content curve
Premium mobile content Advanced web services Mobile Web browsing

Opera Widgets

Targeted mobile services

Opera Mobile Opera Mini

Full web browsing

Content

10+ billion Web sites

Opera Mini to date

Experience since Worldwide release in Jan. 2006
+7 million unique active users since launch Page compression to 1015% of actual desktop size
Over +2 billion pages downloaded Average downloads 10- 15 pages per user per day
Norways Opera Software, recently unveiled whats quickly become recognized as the best cellphone Web browser yet, known as Opera Mini Matthew Maier, CNN.com
This is a really big breakthrough for the mobile space. Michael Gartenberg, Jupiter Research

Product Architecture

Opera Mini Opera Mini Server Internet
Compressed traffic via OBML*

HTTP(s)

Small Java application Browser user interface OTA deployment: download with phone browser from http://mini.opera.com MIDP 1 & 2: 50-100KB
Featuring full Opera browser engine to: Render page with Opera Small Screen Rendering Minimize traffic volume and improve loading time Provide billing information to trusted web sites

Web & WAP content

* OBML: Opera Binary Markup Language a compressed, binary representation of the page rendered by Mini Server
General Commercial Models
Option 1: A Royalty free Generic version of Opera Mini can be distributed by selected partners
- Opera provides license-free Hosted download server and proxy solution - Partner provides marketing and device pre-installation
Option 2: Partners licenses a Custom or Branded versions of the application and promote their own services
Opera offers: - Hosted server solution - Client customization & branding services - Support & Maintenance
Price: Distributor only pays yearly Support & Maintenance
Price: Dependant on volumes and level of customization
31 Models shipping with Opera in 2006
Motorola A1200 Sharp W-ZERO3 Nokia 9300i *: Only in Cingulars network **: Only in T-mobiles network Toshiba W32T Sony Ericsson P990 Nokia 6630** Last updated: Aug 30, 2006 Kyocera WX 300K Kyocera WX 310K Kyocera AH-K3002V Nokia N70 Nokia N90 Nokia 7710 Casio W21CA Nokia 6620* Nokia 9300 Sendo X Nokia 6600 Sony Ericsson P900 Motorola A920 Sharp Zaurus Sony Ericsson P800 Sharp Zaurus Psion Revo Nokia 9210 Motorola A780 Sony Ericsson P910 Motorola A1000 Nokia 7610 Nokia 9500 BenQ P30 Nokia 7700 Kyocera PS 900 Sharp SL-6000 T-Mobile SDA II** Motorola E895 Motorola E680i Hitachi W32H Nokia 6682 Nokia 6681 Nokia 6680** Toshiba W31T Casio W31CA Casio W21CA II ZTE e3 Motorola M1000 Motorola A1010 MOTORAZR xx Nokia N70** Sharp W-ZERO3[es] Sony Ericsson M608c Nokia N72 Toshiba W44T Hitachi W42H Casio W42CA Sony Ericsson W42S Sanyo W33SA II Sanyo E02SA Toshiba W43T Sony Ericsson W950 Sony Ericsson M600 Hitachi W41H Casio W41CA Sony Ericsson W41S Motorola ROKR 2 Hitachi W43H Toshiba W47T Toshiba DRAPE Casio W43CA Sanyo W43SA Sony Ericsson W43S Kyocera W43K Nokia 6233** Sony Ericsson W810i** Nokia 6131** BenQ-Siemens EL71** BenQ-Siemens EF81** Sony Ericsson K608i** Nokia 6280** Motorola RAZR V3i** Motorola RAZR V3 ** Motorola L7** Sharp W41SH Toshiba W45T Sanyo W42SA Kyocera W44K Motorola RAZR V3x ** MOTORAZR maxx

2000-2003

2006 cont'd
Multiplatform Web Applications for Mobile Phones
Opera Mobile and Opera Widgets
A regular mobile browser Browser-based application platform

Premium service delivery

Service delivery

On-device Portal

Rich Media integration

WAP vs WEB

Why Opera is Better?

AJAX DOM CSS

Opera 6 Opera 5 Opera 4 Opera 3 XHTML MP cHTML WML WAP 2.0 iMode WAP 1.x CSS MP Opera 8
Mobile browsers HTML5, WebForms2, Canvas2D, Street-XML, Widgets Desktop browsers

Opera 9

Level of complexity

Desktop browsing

JavaScript HTML

Mobile browsing

Proof of Concept How Mobile Network Operators increased ARPU and competitive position using the Opera browser
Web Browsing in Different Market Environments
Competitive environment Fierce competition vs. Vodafone & market leader NTT DoCoMo Saturated market 3G networks & high-tier handsets available Strategic implications Competitive edge required in order to gain sufficient market share to compete with DoCoMo

International

Incumbent German operator with international operations Duopoly situation with Vodafone Saturated market 3G networks & high-tier handsets available
Competitive edge required to defend market leader position
Web Browsing provides KDDI and T-Mobile with an additional boost in Data ARPU and a competitive edge in an increasingly tough market
All KDDI EV-DO BREW Terminals Feature Opera

2H W21CA 1H W21CA II

2H W31CA W41CA 1H W42CA

2H W43CA

27 devices from 5 vendors shipped through November 2006 KDDI enables their complete EV-DO portfolio

W33SA II

KDDI is Japans Fastest Growing Carrier

Annual Revenue

KDDI has always faced fierce competition from industry giants DoCoMo and Vodafone but since the introduction of 1XRTT & EV-DO networks, KDDI has been Japans growth leader in 2004 and 2005

1 year growth

2 year growth

5% 13% -1% -8%

10% 33% 2% -10%
Web Browsing with Opera Mobile has - become a core service for KDDIs EV-DO based services - and helped drive 2-digit growth rates in a mature and saturated market

Sources: Telecom Carriers Association Japan, KDDI IR The best Internet experience on any device
Competitive environment Fierce competition vs. Vodafone and market leader NTT DoCoMo Saturated market 3G networks & high-tier handsets available Strategic implications Competitive edge required in order to gain sufficient market share to compete with DoCoMo
Webnwalk - Operators moving towards HTML
Web n Walk Utilizes Opera Mini to Enable Additional Handsets

Opera Mobile Browser

SDA II

RAZR SLVR V3/V3i L7

W810i K510i W300i

6131 6233

EL71 EF81
Opera Transformed Portal Browsing Into Full Web Browsing
Web links Start page offers all T-Mobile and cobranded services in one UI:
- Google search - Web links - Portal services

Sport News

Shopping

Travel

Information

Entertainment

Technology

Health

T-Mobile International Web n Walk Drives ARPU Increase

Pricing*:

Data volume / user

Q3 2005

Charge / month

$45 $39

Web n Walk XL 5GB Data 150

$20 $13 $10 $6.50

Data 30
Data APRU (excl. SMS) / user

Data 5

Q1 2006
Significant increase in ARPU after 1st quarter of launch Web 'n walk customers were visiting 330 Internet pages per month

Data usage [MB]

* Example T-Mobile Germany. This offer includes use of PC modem connection and is in addition to any voice plan
Opera Powered Solutions Proof of Concept continued from Opera for Devices point of view

Sony Mylo

Archos 604 WiFi & PMA400
"Opera is a very valuable partner for us and its browser is an asset to our product." - Henri Crohas, ARCHOS Founder & CEO

Nokia 770

"In short, the Nokia 770 offers by far the best Internet browsing experience of any handheld device I've ever used." - Eric Bangeman, ArsTechnica.com

Nintendo Wii

"For our Wii console launch in 2006, we required a browser that was fast and secure with support for the latest standards including AJAX. Opera proved perfect for our purposes and is an exceptional addition to both the Nintendo DS and the Wii console."
- Genyo Takeda, Senior Managing Director and General Manager, Integrated Research & Development Division, Nintendo Co., Ltd.
Nintendo DS & DS Lite
"Opera exceeded our expectations with its user friendly interface, quick access to all your favorite sites, ease of use and, most importantly, in making the best use of the Nintendo DS system's unique double screens and touch screen features. Opera is an important partner for Nintendo in our efforts to further expand the users of the Nintendo DS." - Masaru Shimomura, Deputy General Manager of Nintendo's R & D Department

Amino AmiNET103,110,125,125i,130
"Its industry-leading support for the W3C Web standards and its remarkable performance make Opera an attractive choice for better browsing and advanced user interfaces on Amino's AmiNET110 and our upcoming next generation set-top boxes. - Roy Kirsopp, VP & General Manager, Amino
Iwatsu Corporate IP Phone Solution Including Opera Powered Phones by Quanta
Thales TopSeries In-flight Entertainment
"The Opera product is an excellent fit to our system architecture. It provides the flexibility and utility that our customers are asking for."
- Brad Foreman, Vice President and General Manager for Thales
Dreampark Dreamgallery IPTV Solution

THANK YOU!

kai.leppanen@opera.com Mobile: +1485
Please download Opera 9 and Opera Mini from www.opera.com

Opera Past, Present, Future

Jn S von Tetzchner, CEO

Operas vision
Operas mission is to provide the best Internet experience on any device

Opera - Background

Opera Background

Background

Founders started to work with the WWW in 1992 Started to develop Browser technology in 1994 Opera was founded in 1995 with NOK in starting capital
It has to be one of the strangest business plans in the history of the Internet

Time Magazine, Oct. 2001

R&D Desktop Keyboard navigation Multiple Documents Image zooming Mouse Gestures
R&D Internet Devices Cross-platform development

Commercialisation

Expanding in the value chain

Innovation

Small Screen Rendering Opera Platform Footprint reduction Multimodal Porting to EPOC Spatial navigation ERA Smart frames Web forms Focus on Modularisation Table magic Opera Show DOM/BIDI for Smartphones

Products

Organization today 380 employees 40 nationalities represented Offices in Norway, Sweden, Poland, USA, Japan, China, Korea, India

Operas Overall Strategy

Be World Champion in ONE area Browsing is a growing industry Do not loose focus Make the smallest and fastest browser Be Persistent Follow our belief even if major players are moving in other directions Microsoft and Netscape went the other direction and hence does not fit into smartphones While everyone was shouting about WAP, Opera was focusing on HTML Accept Lost Opportunities In order to get acceptable prices, Opera has been willing to loose contracts Concentrate on long-term strategies, not on short-term exit

Sony Ericsson P800

How can a small Nordic Company grow internationally
A great product always helps full focus on R&D since 1995 Work through strategic partners Opera focus sales efforts on a limited number of strategic partners One-on-One meetings -Travel Understand our partners organisation Full focus on PR and communication Covered Opera: CNN, BBC, Economist, News Week, Business Week, Wall Street Journal, Fortune, Time, etc. Actively using Communication in building user base Opera has become an established brand Establish an international organisation Local employees in local markets 40 nationalities and only 50% Norwegians makes Opera a truly international company

Motorola 920A

Opera - The Present

Opera The Present

Operas key strengths leading technology, cross platform
Opera is the smallest full-featured browser PC Download from 3.4MB Minimal browser is less than 1.3MB uncompressed Opera Mini starts at 50kb. Lower HW requirements Lower power consumption

QnX Unix

Qte Qt FreeB SD Smart phone Pocke tPC

Windows

Motorola P2K ltron
Windows CE/Mobile Media Highway

S60 Symbian OS UIQ

Platform Independent kernel
Java J2ME (Mini) Brew Nintendo

WII DS

Solari s
Opera is the fastest full-featured browser Superior on limited bandwidth Better Internet experience

Qtopia

Significantly faster than the competitors in a number of tests Opera is the most standard compliant browser in the world.

Opera Desktop

Opera UI
Improved traction with premier online brands

Opera for T-Online

Opera and T-Online create custom version of the Opera browser New road to commercialize browser and expand distribution Direct links to favorite T-Online content Leverages T-Online distribution channels Complements T-Onlines other branded offerings

2006 contd

Mobile browsing momentum accelerates
Sneak peek: 25 new phones so far in 2007

ASUS V1210

HTC HTC Ameo (T-Mobile) HTC U1000 (Dopod) Longcheer Linux Smartphone Motorola V1100 A1200e MOTOQ Q9 RIZR Z8 Sharp eMobile
Simcom S955T Toshiba G500 G900 Wistron D-link ZTE E700
Sharp W51SH Casio W51CA Hitachi W51H Kyocera W51K Sony Ericsson W51S Toshiba W52T Toshiba W51T au design project MEDIA SKIN Sanyo W51SA Panasonic W51P

Consumer Mini highlights

Opera Mini launched world wide in January 2006 Powers mobile social networking with intuitive new features Total number of cumulative users*: nearly 12 million Cumulative pages downloaded since launch: nearly 4 billion
Cumulative Opera Mini Users and Page Views

Millions

2,2,1,1,000 2
AR AP R M AY JU N JU L AU G SE P V EC N B O C JA FE M O N D JA N T

Cumulative users

Page views
* Number of users who have downloaded and used Opera Mini
Opera Mobile Success stories
Opera Mobile: Success stories
KDDI is Japans Fastest Growing MNO
KDDI has always faced fierce competition from industry giants DoCoMo and Vodafone nowadays Softbank but since the introduction of 1XRTT & EV-DO networks, KDDI has been Japans growth leader in 2004 and 2005
[JPY] 50 M 40 M 30 M 20 M 10 M 0

Annual Revenue

Web Browsing with Opera Mobile has become a core service for KDDIs EV-DO based services and helped drive 2-digit growth rates in a mature and saturated market
1 year growth 2 year growth
Double flat light Flat rate Double flat Web browsing offer

5% 13% -1% -8%

10% 33% 2% -10%
Sources: Telecom Carriers Association Japan, KDDI IR
All KDDI EV-DO BREW Terminals Feature Opera

2H W21CA 1H W21CA II

2H W31CA W41CA 1H W42CA

2H W43CA

27 devices from 7 vendors shipped through November 2006 KDDI enables their complete EV-DO portfolio

W33SA II

T-Mobile 1st to Launch Full Mobile Internet Strategy in Europe
In 2005, T-Mobile International launched Opera Mobile enabling full Web Browsing across the companys European markets in Germany UK Austria Netherlands Czech Republic Hungary remaining natcos to follow shortly NB: total addressable market in Europe +60m
Web n Walk Utilizes Opera Mini to Enable Additional Handsets

SDA II

RAZR SLVR V3/V3i L7
Web n Walk ARPU Increase example from Germany
Germany: Internet usage and revenue growth in 2006
Significant increase in data ARPU after Opera Mini launch in March 06 Web 'n walk customers were visiting 330 Internet pages per month
* Source, T-Mobile International Q3-06 presentation, November 2006
Opera Mobile: Success stories Gaining traction with Tier One operators
Telefnica launches Navega
Opera Mini pre-installed on high-volume handsets: Sony Ericsson Z610i Sony Ericsson K800 Sony Ericsson K610i Nokia N70 (with more to come) Revenue model for Opera: License fees based on active users Maintenance & support Server hosting fees
Opera Devices Success stories
Opera Devices: Success stories
Nokia 770 and 800 Web Tablets
"In short, the Nokia 770 offers by far the best Internet browsing experience of any handheld device I've ever used."
- Eric Bangeman, ArsTechnica.com

Kocom Wall Pad

"Opera is a versatile tool that enables us to update the Wall Pad system quickly and dynamically, which is important to our customers, - Ihnguen Nam, Director, Kocom Co. Ltd.
Thales TopSeries In-flight Entertainment
"The Opera product is an excellent fit to our system architecture. It provides the flexibility and utility that our customers are asking for." - Brad Foreman, Vice President and General Manager for Thales
Archos 604 WiFi & PMA400
"Opera is a very valuable partner for us and its browser is an asset to our product." - Henri Crohas, ARCHOS founder and chief executive officer
Dreampark Dreamgallery IPTV Solution
Nintendo DS & DS Lite
"Opera exceeded our expectations with its user friendly interface, quick access to all your favorite sites, ease of use and, most importantly, in making the best use of the Nintendo DS system's unique double screens and touch screen features. Opera is an important partner for Nintendo in our efforts to further expand the users of the Nintendo DS." - Masaru Shimomura, Deputy General Manager of Nintendo's R & D Department

Nintendo Wii Opera is included in the revolutionary Wii game console
"For our Wii console launch in 2006, we required a browser that was fast and secure with support for the latest standards including AJAX. Opera proved perfect for our purposes and is an exceptional addition to both the Nintendo DS and the Wii console."
Genyo Takeda, senior managing director and general manager, Integrated Research & Development Division, Nintendo Co., Ltd.
Featured Opera Powered Device - Sony mylo
Sony selected Opera as a key application in their innovative new product, the mylo, my life, online Mylo combines portable media playing with browsing, VoIP and instant messaging via integrated WiFi Shipped in the US in September

Opera Community

Opera Services
My Opera community key for consumer growth
My.Opera.com popular with close to 700.000 members today doubled the number of users since Dec. 2005 Opera to continue to work with its loyal user base to build word of mouth and brand awareness Community-based services represents the key opportunity to create true convergence

Opera powers convergence

There is only one Web
The services that win on the ordinary Web also win on the mobile web The cost of teaching people to do something new is too high WAP was a mistake, let's not do it again Most mobile phones and other devices will ultimately have full web browsers; browsing drives higher ARPU and improves customer retention
The growth of Web applications
Exercise: Find the Windows applications.

netvibes

Web applications what happened?
No more native applications: practically all new services and applications are based on Web technologies such as Ajax. The social Web: people create web content through services like Flickr, MySpace, Blogger and YouTube. The open Web: content providers make their services available to all by using open web standards and APIs.

WEB 2.0

Stand-alone v. web-based

Question:

How much of you time with a PC did you spend with stand alone applications vs. web based apps in 1998? What about now?

80% 15%

The browser is the glue
Three screens boundaries blurring
making calls watching movies

watching films

browsing Web

making calls

The Opera-powered day
Widgets: Web 2.0 escapes your browser
Widgets are fun Web programs you can run right on your desktop. Access news and weather, play games, follow your favorite sports teams and much more. There are currently 984 widgets available. Anyone can make a widget!

Opera defining mobile Ajax since 2003

Opera Platform 2003

Opera Platform 2006
Example: Mash-up service mixing search results from multiple sources
Example: Mash-up service for LBS based realtime traffic information
Opera brings Ajax to your TV
Web applications and user interfaces here today Opera enables Web applications on devices Web applications are dynamic, quick to create and can easily be modified Opera supports cutting edge technologies such as Ajax

Thank you for listening