Opera Software: Second quarter 2012

• Revenue growth of 32% (37% FX adjusted)

• Record revenue and strong profitability

• Strong revenue growth from Mobile Consumers, Mobile Publishers &

Advertisers coupled with solid growth from Desktop and Devices OEMs

*Non-IFRS EBITDA excludes stock option costs

**Excluding one-off extraordinary costs of MUSD 4.3 in 2Q12

Financial metric 2Q12

(MUSD)

2Q11

(MUSD)

Revenue Total revenue 52.1 39.4

Profitability Adj. EBITDA*/**

EBIT**

14.5

11.0

10.2

8.1

2Q 2012 Financial highlights

Operators

• Strong growth in operator Opera Mini users: 39.8 million in June 2012,

vs. 16.2m in June 2011, up 145%

• Strong operator platform for continued growth • Growth from existing customers like Telkomsel, AT&T, MTN, Telenor and

MTS

• New operator agreements announced in the quarter include VimpelCom

(Russia), America Movil (Mexico) and Airtel (India)

Mobile/Devices

• 200m users of Opera mobile browser products in June 2012

• Continue to build leading position in the TV/set-top box segment

End users

• 275 million+ people using Opera browsers every month

• Mobile Consumer revenue up 168%+ in 2Q12 vs. 2Q11

• Mobile Publishers & Advertisers revenue up 450+% in 2Q12 vs. 2Q11

• Launched Opera Mini 7 with Smart Page and Opera 12 for Desktop

Highlights Highlights

Financial review

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 unknown risks, uncertainties and other factors which may cause our actual results,

performance or achievements to be materially different from any future results, performances or achievements

expressed or implied by the forward-looking statements.

Forward-looking statements may in some cases be identified by terminology such as “may”, “will”, “could”, “should”,

“expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms

or other comparable terminology. These forward looking statements are only predictions. Actual events or results may

differ materially, and a number of factors may cause our actual results to differ materially from any such statement. Such

factors include i.a. general market conditions, demand for our services, the continued attractiveness of our technology,

unpredictable changes in regulations affecting our markets, market acceptance of new products and services and such

other factors that may be relevant from time to time. Although we believe that the expectations and assumptions

reflected in the statements are reasonable, we cannot guarantee future results, levels of activity, performance or

achievement.

Opera Software ASA makes no representation or warranty (express or implied) as to the correctness or completeness of

the presentation, and neither Opera Software ASA nor any of its subsidiaries, directors or employees assumes any

liability connected to the presentation and the statements made herein. Except as required by law, we undertake no

obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform

these statements to actual results or to changes in our expectations. You are advised, however, to consult any further

public disclosures made by us, such as filings made with the Oslo Stock Exchange or press releases.

This presentation is for information purposes in connection with the Opera Software ASA 2Q12 presentation only. This

presentation is not an offer or invitation to sell or issue securities for sale in the United States, and does not constitute

any solicitation for any offer to purchase or subscribe any securities. Securities may not be sold in the United States

unless they are registered or are exempt from registration. Opera Software ASA does not intend to register any

securities in the United States or to conduct a public offering in the United States. Any public offering of securities to be

made in the United States would be made by means of a prospectus that will contain detailed information about Opera

Software ASA and its management, as well as financial statements. Copies of this presentation should not be distributed

in or sent into any jurisdiction where such distribution may be unlawful. The information in this presentation does not

constitute an offer of securities for sale in Canada, Japan or Australia.

A note from our lawyers

3Q 2011 Financial highlights

*Non-IFRS EBITDA excludes stock option costs

**Excluding one-off extraordinary costs of MUSD 4.3 in 2Q12

*** Operating Cash Flow less capital expenditures

Financial metric 2Q12

(MUSD)

2Q11

(MUSD)

Revenue Total revenue 52.1 39.4

Profitability Adj. EBITDA*/**

EBIT**

14.5

11.0

10.2

8.1

Cash generation Operating Cash

Flow

Free Cash Flow***

4.6

1.1

6.5

3.4

Financial Highlights

2Q 2012 Actuals 2Q 2012 Midpoint

Guidance

(May 4)*

Revenue MUSD 52.1 MUSD 51.5

EBIT** MUSD 11.0 MUSD 10.5

*Provided at 1Q12 Presentation

** Excluding one-off extraordinary costs of MUSD 4.3 in 2Q12

2Q12 Actuals versus Guidance

* Excludes extraordinary one-time costs

MUSD 2Q12* 2Q11 Q on Q

Revenue 52.1 39.4 32%

Cost of Goods sold- 6.2 0.8 676%

Payroll and related expenses - 23.1 20.5 13%

Stock option costs - 1.1 0.8 42%

Depreciation and amortization - 2.5 1.4 84%

Other operating expenses - 8.2 7.9 4%

Total expenses = 41.1 31.3 31%

EBIT 11.0 8.1 35%

Net Income 4.1 5.1

EPS (USD) 0.03 0.04

2Q12 Financial review

Revenue (MUSD)

* Non-IFRS EBITDA excludes stock option costs and extraordinary one-time costs

Adjusted EBITDA* (MUSD)

0

5

10

15

20

25

30

35

40

45

50

55

2Q11 3Q11 4Q11 1Q12 2Q12

Revenue

Financial highlights: 2Q11-2Q12

0 1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16

2Q11 3Q11 4Q11 1Q12 2Q12

Adjusted EBITDA*

Operators: Users and Usage

Mobile Consumers: Users and Usage

Desktop: Users and Usage

Device OEMs: ConnectedTVs

Mobile Publishers & Advertisers: Mobile Advertising Spend from Premium Brands

Revenue growth drivers

Overall Mobile Monetization Strategy

Opera Properties Non-Opera Properties

Ad mediation, serving, campaign management

Opera

Payment

Exchange

+

Analytics

Search, opcos and developers

Revenue: Customer type (2Q12)

Overall revenue as expected

2 4 2 2 1

14 12 10 10 10

6 6 9 8 7

13 13 15 17 16

1 2 2 3 3 2 3 4

7 13

0

5

10

15

20

25

30

35

40

45

50

55

2Q11 3Q11 4Q11 1Q12 2Q12

Other

Mobile Publishers & Advertisers

Mobile Consumers

Desktop

Device OEMs

Operators

Mobile OEMs

MUSD

Customer Type

Operators Lower than expected

Mobile Consumers (Opera owned and

operated properties)

As expected vs. guidance

Mobile OEMs As expected vs. guidance

Desktop Consumers As expected vs. guidance

Device OEMs As expected vs. guidance

Mobile Publishers & Advertisers (Non

Opera owned and operated properties)

Better than expected vs. guidance

0 %

20 %

40 %

60 %

80 %

100 %

2Q11 3Q11 4Q11 1Q12 2Q12

Other

Mobile Publishers & Advertisers

Mobile Consumers

Desktop

Device OEMs

Operators

Mobile OEMs

Revenue: Operators (2Q12)

10 9 9 10 9

3 2

1 1 1

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

2Q11 3Q11 4Q11 1Q12 2Q12

MUSD Operator Revenue total*

NRE + M&S Licenses

* Unaudited

Operator Revenue lower than expected

145% Operator Opera Mini user growth June 2012 vs. June 2011

User growth driven by MTN, MTS, Telenor, Telkomsel, and Vodafone in particular

Opera Mini licence revenue up 3% to MUSD 9.2

Overall revenue growth: Down 24% versus 2Q11, with solid Opera Mini user and license

growth offset by lower customized Opera Mobile license and NRE revenue

Revenue: Mobile Consumers (Opera owned

and operated properties) - 2Q12

* Unaudited

Mobile Consumer revenue as expected

Revenue growth driven primarily by mobile search and Opera Mobile Store vs. 2Q11

Revenue growth: 168% versus 2Q11

1 2

2

3 3

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2Q11 3Q11 4Q11 1Q12 2Q12

MUSD Mobile Consumers (Opera owned and operated properties)*

Revenue: Mobile OEMs (2Q12)

* Unaudited

Mobile OEM revenue in line with expectations

License revenue: 45+% of revenue

Overall revenue growth: down 40% versus 2Q11

1

3

1 1 1

1

1

1

1 1

-

1,0

2,0

3,0

4,0

5,0

2Q11 3Q11 4Q11 1Q12 2Q12

MUSD Mobile OEM revenue*

NRE + M&S Licenses

Revenue: Desktop Consumers (2Q12)

55 54 57 60 55

0

10

20

30

40

50

60

2Q11 3Q11 4Q11 1Q12 2Q12

Monthly Desktop users* (last month of quarter)

13 13 15

17 16

0

2

4

6

8

10

12

14

16

18

2Q11 3Q11 4Q11 1Q12 2Q12

Desktop revenue* (MUSD)

*Unaudited. User figures are in millions

Desktop revenue in line with expectations

Strong ARPU due to strong local affiliate and search revenue

Desktop users flat versus end of 2Q11

Overall revenue growth: 22% versus 2Q11

Revenue: Device OEMs (2Q12)

* Unaudited

Device OEM revenue as expected

Revenue driven by Connected TV customers

License revenue: 60%+ of revenue

Overall revenue growth: 16% versus 2Q11

5 5

7 6

4

1 1

2

2 3

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0

10,0

2Q11 3Q11 4Q11 1Q12 2Q12

MUSD Device OEM revenue*

NRE + M&S Licenses

Brand Ad

agency Ad network

Ad Serving

Ad Mediation

Campaign Mgt Publishers Consumer

Mobile Internet, SMS,

MMS, Video, Apps

Demand side Supply side

Update on Mobile Ad Network Strategy

Revenue: Mobile Publishers & Advertisers (Non

Opera owned and operated properties) - 2Q12

* Unaudited

Mobile Publisher & Advertiser revenue better than expected versus

guidance

Revenue growth driven primarily by premium advertisers and publishers

AdMarvel managed 102B ad impressions in 2Q12, up 92% vs. 2Q11

Revenue growth: 450+% versus 2Q11

2 3 4

7

13

0

2

4

6

8

10

12

14

16

2Q11 3Q11 4Q11 1Q12 2Q12

MUSD Mobile Publishers & Advertisers (Non Opera owned and operated properties) *

OPEX development

OPEX (NOK Million)

0 5

10 15 20 25 30 35 40 45 50

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

One time extraordinary cost

Cost of goods sold

Other OPEX

Depreciation

Stock Options

Payroll

Cost line 2Q12 vs.

2Q11

Comments

Payroll 13% •Higher compensation expense per

employee and overall headcount

growth.

Cost of Goods

Sold

676% •Driven by 450%+ growth in Mobile

Publisher and Advertiser revenue

•COGS or Publisher Cost related to

Mobile Publisher & Advertiser

business

Other OPEX 4% •Higher server hosting, travel and

marketing costs.

•Hosting costs* key driver (total of

MUSD 3.4 in 2Q12 versus MUSD

2.0 in 2Q11)

Depreciation &

Amortization

84% •Investments in Opera Mini server

infrastructure

•Implementation of shorter

depreciation period for servers,

effective 3Q11

Stock options 42% •Higher average strike price on

options issued at the end of 2Q12

compared to 2Q11

One time

extraordinary

costs

N/A •Primarily related to change of

headquarter and severance

agreements

Total Expenses** 31% • Generally good cost control *Unaudited. Also includes relevant depreciation.

**Excludes one time extraordinary costs

Cash flow 2Q12 (MUSD)

-6

-4

-2

0

2

4

6

8

3Q12 Guidance

* Assumes currency remainder of 2012 (NOK 5.9 /USD, USD 1.25 /EUR)

**Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs.

Metric 3Q 2012 Guidance

Revenue* MUSD 56-58

EBIT** MUSD 11.5-12.5

3Q12 Guidance

* Assumes currency remainder of 2012 (NOK 5.9 /USD, USD 1.25/EUR)

Vs. 2Q12 Comments

Revenue* Operators Up Opera Mini user growth from existing and new

agreements

Mobile Consumers Up Opera Mini user growth, search revenue and Opera

Mobile Store

Mobile OEMs Down General trend

Desktop Flat-Up Stable user trend and solid ARPU

Device OEMs Down Coming off solid 2Q12

Mobile Publishers &

Advertisers

Up

Driven by premium advertisers and publishers

Expenses Payroll Flat-Up Increase in headcount offset by ”vacation effect”

Cost of goods sold Up Growth in Mobile Publisher and Advertiser business

Stock option costs Up Due to issuance of new options

Depreciation Up Continued investments in Opera Mini server hosting

infrastructure

Other Opex Up Primarily due to server hosting, travel and marketing

FY2012 Outlook

*Assumes currency remainder of 2012 (NOK 5.9 /USD, USD 1.25 /EUR)

**Earnings before interest and taxes, exclude extraordinary/one-time costs and acquisition costs.

***Prior guidance refers to 4Q11 and 1Q12 presentations

Metric 2012 Guidance (prior***) 2012 Guidance (new)

Revenue* MUSD 200-215 MUSD 214-219

EBIT** MUSD 48-53 MUSD 45-48

Operational Update

Q2-2012

New agreement Google

Worldwide agreement:

Desktop

Mobile

Tablet

Smartpage

Yandex agreement extended

Opera Mini 7.0.1 Android

Opera 11.63 for Mac App Store

Beta launch of Opera 12

Opera product launches 2Q 2012

Final release of Opera 12

April June May

Opera Mini 7.0.2 for Android

Opera Mini 6.5.2 for S60

Opera Mobile 12.0.2 for Android and S60

Opera 12 Beta for Mac, Windows and Linux

Opera 11.64 Final

Opera Mini 7.0.3 Android

Opera Mobile 12.0.3 Android

Opera Mini 7.0.2 for iOS

Opera Mini 7 for feature phones Smart Page for Opera Mini

Opera 12 Final for Mac,

Windows and Linux

Last version of Opera 11

App-Tribute for advertisers & publishers

Operators

Continued strong growth: Nearly 40 million Operator Opera Mini users

0

5

10

15

20

25

30

35

40

Operator- & Co-Branded Opera Mini Active Users (million)

New operator wins: Airtel, VimpelCom, América

Móvil group deals, 600M+ subscribers

240M subscribers,

20 countries 240M subscribers,

18 countries

200M subscribers,

18 countries

Re-signed strategic existing customers

Airtel India and Bangladesh launch Opera

Mini with integrated marketing campaigns

MTN Nigeria follows up TV campaign with below-the-line activations

• Quiz competition with social media sharing

• Win Samsung Galaxy Pocket phones

• BTL campaign (SMS, social media, website)

Tecno partnering with MTN and running TV

ads in Africa promoting Opera phones

Etisalat Nigeria launches attractive Opera Mini data bundles

• 24h Opera Mini data bundles

(social and sports)

• Low price of 50 NGN (0.32

USD)

• Promoted through SMS, social

media, website, press releases

and radio

SingTel Opera Mini launch campaign

targeting prepaid segment

Press clippings

Sim card inserts SingTel Brochures

0

20 000 000

40 000 000

60 000 000

80 000 000

100 000 000

120 000 000

140 000 000

160 000 000

180 000 000

200 000 000

Ja

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ary

M

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h

Ma

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er

No

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Unique users

Opera mobile browser user growth continues

0

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

Opera growth on Android

Smartphone growth will enable better monetization of mobile search

Significant part of our user

growth is on

smartphones (from 25% in 2Q-11 to 67% 2Q-12)

2Q-11 2Q-12

25%

67%

Well-positioned for growth in Google Play

with both Opera Mini and Opera Mobile .

Opera Mini

• In top 10 free apps for 30+ markets

• Good positions in fast moving

markets (IN, RU, BR, ID, UK)

Opera Mobile

• In top 5 free apps in Russia/CIS

and Central Europe

• Good positions in mature markets

(DE, UK, CZ, FI, NO, DK, PT, IT)

Mobile OEMs

New contracts: • 3 new contracts in India

New handsets:

• Global: 5 handsets from 2

manufacturers

• India: 8 handsets from 5

manufacturers

• Africa: 6 handsets from 1

manufacturer

Coming soon... • >3 Tablets, >5 Android phones

Tecno launched Opera Mini phone for

African markets

Tecno launched Opera Mini phone for

African markets

TV & Devices

Smart TVs • TCL

• HiSense

STBs • Altech UEC

• Huawei

• Dune HD

• Topfield

• Marusys

Automotive • TomTom (for Renault)

• Johnson Controls (for Mazda)

Wins in

Q2

68 apps published

106 contracts signed

25 apps in QA

Opera TV Store Status

Launched

with tier 1

Strong

pipeline

Desktop

Revenue up 3M$ vs 2Q-2011

13

16

0

2

4

6

8

10

12

14

16

18

2Q11 2Q12

Desktop revenue (MUSD)

Traffic and revenue from desktop online

transactions continues the growth

• Further growth in revenues from

existing tier one content partners

• Yandex, Booking.com, Amazon, eBay,

Schibsted CM

• Leveraging user base with tailored

partner solutions

• Mail.ru, Rambler, Facebook, eBay

• Continue to partner with leading

regional affiliate networks gaining

global coverage

• Continue to serve localized content

for new countries

• Pakistan, Vietnam, Philippines, Nigeria Desktop Startpage

reaching millions of users

Opera Mini 7 with Smart Page launched

- Launched for J2ME, Symbian and

Blackberry

- Android version to be available in

September 2012

- Key features include: Advertising

enabled, Facebook and Twitter

integration, personalized based on

users history.

- Close to 20 million users have the

Smart Page with the number to

jump to over 30 million when we

launch Android in September.

Monetization strategy for Smart Page

- 35 million Smart Page views per day

generating over 80 million ad

impressions (all plugged into AdMarvel)

- First flow of ad campaigns sold in

Russia, India and Brazil. Expected fast

growth when Android launches.

- Scaling the local partnerships by

setting up reseller ad networks and

working with current sales team.

- Key property to drive traffic to partners

and current high paying gaming

partners.

Opera Mobile Store statistics Opera Mobile Store growth

Sept 2011 June 2012 Growth

# of Apps 38.000 64.500 +70%

# of Developers 6.300 8.500 +35%

# of Downloads 11 million 38 million +245%

# of Visitis 21 million 36 million +71%

Successful

launch of pay-

per-download

Revenue from

PPD grew by

350+% from Q1

to Q2

1,00

4,69

-

1,00

2,00

3,00

4,00

5,00

1Q12 2Q12

PPD Revenue Index

Top PPD campaigns:

Top brands are available in the store

Advertising

Ad impression grew 18% from Q1 to Q2

And 92% YoY

Strong

performance

53 56 72

86 102

0

20

40

60

80

100

120

2Q11 3Q11 4Q11 1Q12 2Q12

Ad impressions - Bn In 2011 more than $200

million in advertising

spend was managed

by the Admarvel

platform.

In 2012 we’re on track

to do more than $400

million

1,00

1,94

-

0,50

1,00

1,50

2,00

2,50

1Q12 2Q12

Mobile Advertising Revenue Index

Mobile Advertising Revenue grew 94% from Q1 to Q2. Technical migration completed.

Mobile Theory

Notable Advertising

Campaigns run for

brand advertisers in

the US

Panoramic

technology

Infiniti

For Infiniti we produced a highly rich, interactive HTML5

ad unit to showcase the JX series. This offered the user

the opportunity to look around the inside of the car using

all axis, panoramic navigation. This was controlled by a

finger swipe on the screen for instant, smooth movement.

This user was then able to explore various other features

of the Infiniti JX being showcased though in ad video or

further on screen interaction.

This ad unit encouraged users to explore and play with

the Infiniti JX. We saw an average dwell time of 21

seconds.

Dynamic

Feeds eBay

By integrating with eBay through an

API feed we were able to

dynamically pull in the latest deals

that were being offered on the

auction site. The user was able to

swipe through all the latest deal in ad

and then click to go through to site

and purchase. eBay therefore had

complete control of what products

were being shown at any given time.

Q&A