Otello Corporation ASA

Investor Presentation • Mar 30, 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

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 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.

Capital Markets Day 2017

Lars Boilesen Chief Executive Officer

Agenda of the day

09:00 – 09:05 CET	Welcome	5 min
09:05 – 09:20 CET	Opera Software - CEO	15 min
09:20 – 09:35 CET	Opera Software - CFO	15 min
09:35 – 09:50 CET	SurfEasy	15 min
09:50 – 10:05 CET	Skyfire	15 min
10:05 – 10:45 CET	Bemobi	40 min
10:45 – 11:00 CET	Break	15 min

11:00 – 11:25 CET	AdColony - CEO	25 min
11:25 – 11:55 CET	AdColony - Products & Tech (Apollo)	30 min
11:55 – 12:15 CET	AdColony - Performance	20 min
12:15 – 12:35 CET	AdColony - Programmatic & Brands	20 min
12:35 – 12:40 CET	AdColony - Closing remarks (CEO)	5 min
12:40 – 13:00 CET	Conclusion and Q&A - All	20 min
13:00 – 14:00 CET	Lunch - All	60 min

Opera's goal was to leverage on the user base generated by the consumer browser

Opera Software at the start of 2016

November 2016	Divestment of Consumer Business
December 2016	Divestment of majority stake (70%) in Opera TV
November 2016	Share buyback of up to 10% of outstanding shares
December 2016	Payment of NOK 15 in dividends
December 2016	Repayment of senior loan

USD 575m
USD 80m
In progress
USD 260m
USD 185m

Outcome of the strategic review was divestment of the Consumer business and Opera TV. Proceeds used for dividends, share buybacks and loan repayment

2016 has been a year of change for Opera Software

4 separate companies positioned for growth and profitability

Where are we now?

• Corporate FTEs: 50
• Corporate cost: ~USD 15m

Lean organization – reduced corporate staff

Opera Software corporate objective is to drive shareholder value through developing the operating entities

Opera Software corporate objective

Opera Software corporate objectives

Focus

• Revenue growth
• Increase margins
• Cost control
• Unique & relevant products
• Scalable businesses

Maximize shareholder value

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

Petter Lade Chief Financial Officer

How to model each of our businesses

Focus areas

11

Key figures

Opera Software

Guidance & Aspirations

Opera Software key figures

Operating entities' key figures

• Fewer global app launches and late to market with new SDK

• Higher costs related to the reorganization and tech integration work of the Apollo platform

• Organic revenue growth of 43%

• Continued strong growth in number of subscriber in Latin America
• First phase of global growth

▪ Solid growth from both directto-consumer and white-label businesses, which power VPN for third party brands

• Organization cut in half, focus on Rocket product
• Slow rollout with Huawei

Revenue				Gross margin			Other opex (fixed cost base)
	Performance		Share of revenue: 49%		Performance	Gross margin: 37%		Compensation		In % of OPEX
다는		Brand - Managed IO	Share of revenue: 34%	로는	Brand - Managed IO	Gross margin: 48%	다근	Hosting		In % of OPEX
도 는		Brand - Performance	Share of revenue: 7%	55	Brand - Performance	Gross margin: 25%	片戸	Other opex		In % of OPEX
도 큰		Brand - Programmatic	Share of revenue: 9%	도근	Brand - Programmatic	Gross margin: 34%	$\equiv$		Total opex (2016)	USD
		Revenue (2016)	USD 484m	$\equiv$	Gross margin (2016)	Gross margin: 38%
Performance key revenue drivers		1. App launches 2. Apollo 7/8 (access to inventory) 3. Apollo 9 (additional ad units)			• Gross margin is mainly driven by: Mix of revenue, i.e. programmatic has lower gross margins			Compensation	1. Number of employees 2. Apollo $10/11$
1. Market growth 2. SDK 3.1 - New Video Ad Formats Brand 3. Programmatic Growth (unlocking Instant key revenue Play Exchange) drivers 4. Brand Performance - international expansion			Type of add units, rich media ads tends to have higher margin than banner adds. Revenue share with publishers 3. Apollo 7 (bidding engine for UA display) and 8 (flexible 4. supply toolkit for SDK inventory) will allow AdColony to control revenue vs gross margin trade-off. Fixed revenue to publishers		Hosting		1. Cloud services cost (AWS) 2. Investment in Data Science 3. Apollo $10/11$
					Other opex		1. Headcount 2. Office expense/marketing $A_{\text{real}}$ 10/11

Bemobi – Revenue & profit (illustration)

Revenue			Gross margin				Other opex (fixed cost base)
	Net ARPU		USD 3			License fee to app dev	In % of revenue: 30%		Compensation		In % of OPEX: 75%
		Number of subscribers	16 million			Acquisition cost	In % of revenue: 5%		Hosting		In % of OPEX: 5%
		Revenue (2016)	USD 48m			Gross margin (2016)	Gross margin: 65%		Other opex		In % of OPEX: 20%
										Total opex (2016)	USD 9m
Net ARPU		1. Number of compelling services to mobile users, i.e. Apps Club − More services offered in Latin America		app dev	License fee to	Deal structure with app developers − Revenue share − Fixed cost			Compensation	1. Number of employees 2. Geographical footprint
		Apps Club first service to be launched − outside of Latin America				Revenue share % with OTT distribution		Hosting		1. Cloud services cost
Number of subscribers		1. Addressable users of services 2. Reach of distribution channels Operators − OTT partnerships − − No data, No credit portal			Acquisition cost	partners		Other opex		1. Number of employees 2. Office expenses

Revenue				Gross margin				Other opex (fixed cost base)
	Net ARPU		USD 3			License fee to app dev		In % of revenue: 30%		Compensation		In % of OPEX: 75%
		Number of subscribers	16 million			Acquisition cost		In % of revenue: 5%		Hosting		In % of OPEX: 5%
		Revenue (2016)	USD 48m			Gross margin (2016)		Gross margin: 65%		Other opex		In % of OPEX: 20%
											Total opex (2016)	USD 9m
Net ARPU		1. Number of compelling services to mobile users, i.e. Apps Club − More services offered in Latin America Apps Club first service to be launched −		app dev	License fee to	− −	Revenue share Fixed cost	Deal structure with app developers		Compensation	1. Number of employees 2. Geographical footprint 1. Cloud services cost
		outside of Latin America 1. Addressable users of services 2. Reach of distribution channels				partners		Revenue share % with OTT distribution	Hosting
Number of subscribers		Operators − OTT partnerships − − No data, No credit portal			Acquisition cost				Other opex		1. Number of employees 2. Office expenses
		3. Churn

SurfEasy – Revenue & profit (illustration)

Revenue					Gross margin				Other opex (fixed cost base)
		ARPU/Net ARPU	USD 25		COGS		In % of revenue: 20%		Compensation		In % of OPEX: 45%
		Number of subscribers	200K			Gross margin (2016)	Gross margin: 80%		Hosting		In % of OPEX: 40%
		Revenue (2016)	USD 5m						Other opex		In % of OPEX: 15%
										Total opex (2016)	USD 5m
Net ARPU		1. Direct vs. Partner Revenue (a) Direct (high margin, lower subscriber) (b) Indirect (low ARPU, high subscriber numbers, no COGS)		COGS		1.	Apple/Google (App store transaction fee)		Compensation	1. Number of employees 2. R&D efforts
		1. Partner VPN product launch						Hosting		1. 2. Opera Desktop VPN cost	Cloud services cost (Multiple Vendors)
Number of subscribers		2. Consumer customers 3. Churn						Other opex		1. Number of employees 2. Office expenses 3. Marketing

Net ARPU	1. Direct vs. Partner Revenue (a) Direct (high margin, lower subscriber) (b) Indirect (low ARPU, high subscriber numbers, no COGS)	COGS
Number of subscribers	1. Partner VPN product launch 2. Consumer customers 3. Churn

Skyfire – Revenue & profit (illustration)

Number of live contracts	1. Success of direct sales efforts 2. Traction with partners like Huawei 3. Growth of unlimited data plans	COGS
Annual revenue per contract	1. Size of customer subscriber base 2. Direct deal or through partners 3. Complexity of services sold to each customer

All hosted by Operator	▪ [xx] Compensation	1. Number of employees 2. R&D efforts 3. Geographical footprint

Other opex

• 1. Number of employees
• 1. Office expenses

Note: 1) Operating cash flow / Adjusted EBITDA; 2) Excludes operating cash flow from discontinued operations

Optimizing capital structure

• Repayment of senior loan USD 185m during 2016
• Long term senior loan
• − Term loan fully outstanding: USD 100m
• − Undrawn revolving credit facility: USD 50m
• Cash and cash equivalents: USD 220m
• Net cash position1 of: USD 120m
• Earn-out commitments of USD 99m
• − Majority related to Bemobi, where earn-out is capped to free cash flow

Net debt and undrawn facilities per 31.12.2016 (USDm)

Opera Software has a target of zero net debt/cash over time Ambition to use excess cash to distribute dividends or buyback shares

Notes: 1) Excluding earn-out commitments

Medium-term outlook and financial ambitions

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

SurfEasy, Opera Privacy Solutions CMD 2017+

Agenda

• What SurfEasy does.
• How we make money.
• Review of each business unit.

What is a VPN?

Without a VPN - You're Exposed

When you connect to the internet, all of the data sent in and out of your device is generally unencrypted. Anyone with access to the network (such as a Wi-Fi hacker) is able to monitor, block or intercept your online activities.

When you connect to a website or application - your device is sending information like your IP address that allows you to be identified, tracked and monitored by the website.

With Surfeasy - You're Secure

We create an encrypted connection between your device and our Global Private Network. All of your data is wrapped in bank grade encryption ensuring its secure, private and unrestricted.

Before we send your data to the website or application, we remove personally identifiable information like your IP address and replace it with ours to give you control when you identify yourself to the web.

SurfEasy Direct

SurfEasy branded VPN for mobile and desktop. High ARPU recurring subscription revenue

White labeled VPN solutions for 3rd party brands. Non-recurring engineering and recurring service revenue

SurfEasy Business Units

15% growth in 2017

84% Growth in 2016 60% Projected for 2017

SurfEasy Direct

Premium VPN Brand that stands for Privacy and Security.

High value subscribers with average monthly ARPU for new users above \$4.50 USD.

2016 subscription revenue grew an average of 4% month over month.

COGs margins between 5-30%.

Profitable as a standalone business in 2016.

Partners

SurfEasy VPN infrastructure powering third party white-labeled solutions.

Tier 1 brands as existing partners (under NDA) with strong inbound deal flow as VPN becomes mass market.

Powering Opera Desktop Browser with 2.7m MAU VPN users.

Lower ARPU than direct – but higher volume and gross margin.

2017 will shift revenue from predominantly NRE to recurring revenues with strong deferred carry forward into 2018.

Opera VPN

Free VPN for iOS and Android with 2M MAU.

Anonymized subscriber data resold to third parties for market intelligence.

Launched summer of 2016. Past 2 quarters spent restructuring the data collection system independent of Opera Consumer.

First data deal signed in Feb. Strong market feedback and pipeline from multiple industry verticals

Growing Sustainable Revenue

Strong consistent revenue growth.

Recurring revenue as a percentage of total revenue increasing from 42% to 95% over two years.

Strong momentum behind recurring with significant portion annual subscriptions with deferred revenue.

Combining SurfEasy standalone P&L with Embedded Opera P&L. Bringing combined P&L to profitability by end of the year.

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

DAVID BROWN CEO, SKYFIRE

Capital Markets Day: Rocket Market Update

Q1 2017

Agenda

1) Top Priorities for the Year

2) Market Trends

3) Mobile Operator Monetization

4) Rocket Platform

Top Priorities for Coming Year

• Ensure positive EBITDA in 2017 and beyond
• Growing pipeline & market share
• Leverage Huawei / partners as profitable channel
• Add 5 New Customers While Expanding Existing Deployments
• Execute on Key Product Priorities
• Improved Reporting, New Optimization Features

Explosive Video Growth Across the World

• Video 60%+ of traffic volume in most mobile operators
• "Cheap" and unlimited data driving growth
• Video quality moving to HD / 4K: uses more capacity
• 5G still years off

Telenor Bandwidth Drivers

Source: Telenor Press Release

Encryption Has Changed the Landscape

Source: www.netmagik.com

• Traditional optimization relied on shrinking "in-the-clear" traffic
• Growth of encryption necessitates new techniques
• Many vendors (such as Citrix / ByteMobile) have not been able to make the leap

Percentage of Encrypted Web Traffic

Optimization Industry is at an Inflection Point

© 2017 Opera Software ASA. Confidential

Inflection Point Creating Opportunity to Grow Market Share

"Optimization Renaissance" (Monetizable Video Services)

Confidential and Proprietary, Opera ASA. ByteMobile Implosion (Void to be Filled)

+

© 2017 Opera Software ASA. Confidential

"Unlimited" Trend in the Market Starting in US; expected to spread!

"Unlimited Buffet" Dramatically Changing Consumption

Usage Scenario	"Limited Data" Typical User Behaviour	Typical "Unlimited Data" User Behaviour
WiFi vs. Mobile	Uses WiFi whenever available	Uses mobile carrier as long as there is signal
Video consumption	Minimize unless on WiFi; limit to short videos on mobile network	Consumes more video on mobile, longer form videos
Netflix Settings	Leaves on "default" for 480p video	Users set to maximum settings and consume far more
Photo backup, app updates, etc.	Configures to WiFi only in most cases	Users set to allow on mobile network – no downside

NET EFFECT: "Unlimited" users are altering their behavior and consuming far more data

Most US Operators Limiting Consumption with Optimization Example: T-Mobile

Mobile	Data Throttled	Unlimited Data	Single Line Data Cost for
Carrier	After	Monthly Cost	2 Years
AT&T Plus	22 GB / Month	$\frac{1}{2}$ 90 / Month	\$2,160
AT&T Choice	22 GB / Month	$$60 / M$ onth	\$1,440
Verizon	22 GB / Month	$$80 / M$ onth	\$1,920
T-Mobile One	30 GB / Month	$$70 / M$ onth	\$1,680
Sprint	23 GB / Month	\$50 / Month (promotional)	\$1,320

• Unlimited Plan with No Throttling can be enabled. • Video limiting to "standard definition" by default

Where/Why Rocket is Used

▪ Reasons for Purchasing Optimization:

▪ Reducing traffic -> Less investment in Radio Area Network -> Lower Opex /

• • Capex

▪ Reducing video traffic can help QoE by freeing up capacity

▪ Monetizing new mobile plans (e.g., "Unlimited Data with 480p video streaming")

• Typical Customers:

▪ MVNOs (Mobile Virtual Network Operators)

▪ Mobile operators in developing countries (for data savings / congestion relief)

▪ Mobile operators in developed countries (for monetization or quality of experience)

Optimizing Encrypted Videos

• Optimization triggered by pacing encrypted videos from popular OTT video sites (e.g., YouTube.com, Netflix, etc.)
• Savings can be as high as 80% on some services

…

Rocket Pipeline Growth

• Mobile operators investing again in optimization solutions, with a focus on encrypted video
• Seeing more optimization RFPs compared to last year
• Initial Huawei customer deployments and proven solution are increasing pipeline and
• wins.
• New win in Asia with Tier 1 group operator – deployment being kicked off in 2nd half 2017.

Results from Recent "Bake-Off" Resulted in Rocket Win

© 2017 Opera Software ASA. Confidential

Competition

Vendors

DPI / GiLAN Vendors

✔	½	✗

© 2017 Opera Software ASA. Confidential

Summary / Conclusion

• Optimization market remains a highly competitive market (including new entrants)
• Growing Pipeline
• Monetization (new, more innovative mobile plans) is increasingly the operator focus
• Rocket offers a strong feature set in the market
• Primary focus of Rocket team is to win deals and achieve profitability

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

Bemobi (Apps and Games) Company Presentation – March 2017

Introduction to Bemobi

Service offering and distribution channels

Strategy and growth

Key financials

Table of contents

Bemobi key highlights

~USD 48 million in revenue 2016

Partnerships with 49 mobile operators in 26 countries

~17.5 million paying subscribers

B2B2C model reaching ~2 billion mobile users

Number of smartphones shipments (millions) Android vs. iOS (apple) in emerging markets

Most of the new smartphones will come out of emerging markets

Android is the clear market leader in emerging markets due to availability of affordable devices

Source: Forbes, BGR, Apple Insider, ZDNet, Tech in Asia, Amazon, Price check, StatCounter Global Stats, Statista, eMarketer, Ericsson Notes: 1) Based on cost of IPhone 6

Android is the platform of choice in emerging markets

The app "Monetization Gap" in emerging markets

Despite the download leadership, no emerging markets appear within the top 10 countries in revenue for apps

Top countries: IOS App Store & Google Play (Q1 2016) Mobile data cost and payment method in emerging markets

Emerging markets requires affordable services matching their disposable income and needs In emerging markets, willingness to pay for digital content is low and pre-paid SIM cards is the predominant payment method

Source: Fortumo Emerging Markets Payment Index:Q1 2016, Fortumo Carrier Billing reports, Wallethub, Euromonitor, World Databank Note: 1) based on mobile cellular subscription (per 100 people). If above 100, assumed to be 100%

Credit card penetration Mobile penetration1 , i.e. operator billing 100% 79% 100% 100% 100% 32% 4% 2% 14% 60% Brazil India Indonesia South Africa USA

	Cost 500MB	Hours of work*
Brazil	\$13.77	13hrs	Mobile data can be expensive, slow and unreliable in
India	\$3.38	17hrs	emerging markets
Indonesia	\$2.39	6hrs	Only 60% of total mobile connections worldwide
US	\$25.00	3hrs	are on 2G

*Hours of minimum wage needs to buy 500MB

End-user differences Key success factors

Bemobi has proven their ability to successfully address the emerging smartphone user

New approaches are needed to close the monetization gap in emerging markets

The app subscription model

We believe there is an untapped opportunity for a subscription based app and games distribution model – "We want to be the Netflix for Apps and Games"

Of the three distribution business models that coexist in every digital media segment, subscription has emerged successful

Introduction to Bemobi

Service offering and distribution channels

Strategy and growth

Key financials

Table of contents

Overview of Bemobi's services and channels

REACH OF DISTRIBUTION CHANNELS

Growth comes from combining a compelling service with billing availability and a wide distribution channels reach

Illustration of growth in number of subscribers

SERVICES need to be available in the market so that users become addressable and can sign-up and pay for the service through their mobile account. Hence, the first step is to make agreements and integration with operators

The seconds step is to promote services through various digital mobile CHANNELS that reach with addressable users to grow the subscriber base

The combination of:

• Service and operator billing agreements

• Wide reach of mobile distribution channels creates a unique platform for distributing monetizing mobile content and services to billions of users in emerging markets

Bemobi service offering

Integrate people and mobile content through technology and subscription based models

Apps Club family

Description Example of operator partners

• Apps Club family are services that gives users in emerging markets unlimited access to different bundles of curated high quality apps for a low subscription fee, across multiple verticals such as games, kids, utilities, health & fitness, education and entertainment
• The service is mainly offered in partnership with leading mobile operators in emerging countries
• Distribution partners contribute with co-branding, promotion and distribution, by pre-loading the services storefront into their clients' smartphones, and by providing billing integration
• Its distribution and bundled billing model complements the existing Free, Freemium & Pay per Download models available from Google Play
• Users don't need credit cards as billing is done by the operator and in many cases there is no need for a mobile data plan to download new apps since the service is zero-rated

Key stakeholders in ecosystem

Hundreds

• Promotes the service
• End-to-end user subscription acquisition and life-cycle process including billing management
• Applies the DRM to protect publishers IPs against unintended use (no code change required)
• Manages the global revenue share settlement with hundreds of developers
• Provides and operates complete end to end platform: Native Store front; Online portals for operators and developers; Full DRM and analytics
• 2nd level customer care

▪ License IP through non-exclusive standard online distribution agreement

• Provide existing APK (Google Play or Amazon build) – no code change required
• Receive revenue share from all paying subscribers divided amongst publishers proportionally to unique daily usage of each app

A subscription model based on real usage provides a better value for consumers

• Top premium paid apps, complete without ads
• Highly curated i.e. best apps only with ★★★★ stars and above
• No need for credit card
• More value for money over \$5,000 of premium apps or included In-App-Purchases for only ~\$1-2 per month
• No need for a data plan to download new apps
• 15 day period of free trial
• Complements the existing Free & Pay per Download model from Google Play

Value proposition for consumers

Limited app competition, where just a few hundred curated, premium

apps are pre-selected and divided among noncompeting categories

Very high app competition, where hundreds of thousands of apps compete for visibility – users also

value each app differently, thus a fixed

pricing is inefficient

Millions of users with smartphones in emerging markets, but just a small percentage have credit cards and the willingness to use them

Hundreds of Millions

of users with smartphones, all of them enabled

by operator billing to pay for apps

Everyone a paying customer, and no incremental cost under the subscription model – lots of apps downloaded and used on a recurring basis

Few apps downloaded and even fewer paid for – especially in emerging markets

Transactional

Apps Club

Additional sales channel and incremental revenue to the existing Google Play & App Store

Value proposition for app developers

No need for additional development or new app builds required (no SDK)

Recurring revenue represents a better monetization model for emerging markets

Value proposition for operators

distribution and monetization value chain

Increase customer loyalty by associating the "app stickiness" to their mobile service subscription

New source of incremental recurring revenue

Apps Club Catalogue

App Club's premium app catalogue

Apps Club has the best curated selection of top premium apps, thereby providing a unique value proposition

Best Rated - ★★★★ stars and above

Premium titles or F2P In-App-Purchase credit included

Most popular apps in Google Play with hundreds of thousands of downloads

Best Value - Over USD 5 000 in Premium Apps and IAP's included

Apps Club Over 200 top publishers

Bemobi's distribution channels

Bemobi has created a turnkey solution for operators to capture when users are out of credit or data

NO DATA PORTAL

No Data, No Credit portal

Description and value proposition Key attributes

• More than 95% pre-paid mobile subscribers in emerging markets, and 60% to 70% are out of credit at any given time
• Currently most mobile operators' subscribers experience is just a dumb info page or SMS informing users that their service was discontinued for the lack of air-time balance or data allowance
• Bemobi portal offers subscribers the option continue their service, while also offering operators a new sales channel
• Portal triggers:
• 1. No Credit / out of balance
• 1. No data / out of bundle
• 1. 404 Error / content unreachable
• The portal is a highly effective touch point, typically reaching 30%-50% of the operators subscriber base in any given month
• Free distribution channel, where Bemobi has control of a significant part of its inventory
• Currently launched with all key operators in Brazil (i.e. Oi, TIM, VIVO and Claro) and in deployment phase in additional operators internationally

Main message: User notification of their current status - no credit and/or data
Primary call to action: Option to top-up/recharge/buy a bundle/ loans etc.
Secondary call to action: Services offered by operator to users with no credit/data, e.g. subscription services with a trial period, own portal, etc.
Additional opportunities: Link to operator portal/inventory, advertising, 3rd party monetization etc.

Introduction to Bemobi

Service offering and distribution channels

Strategy and growth

Key financials

Table of contents

Growth strategy 2017e-2019e

Growth comes from combining a compelling service, with billing availability and a wide distribution channels reach

REACH OF DISTRIBUTION CHANNELS

Illustration of growth in number of subscribers

The seconds step is to promote services through various digital mobile CHANNELS that reach with addressable users to grow the subscriber base

The combination of:

• Service and operator billing agreements

• Wide reach of mobile distribution channels creates an unique platform for distributing a monetizing mobile content and services to billions of users in emerging markets

SERVICES need to be available in the market so that users becomes addressable and can sign-up and pay for the service through their mobile account. Hence, the first step is to make agreements and integration with operators

approx. 2bn users

Combined future potential reach from distribution channels (international)

Monthly subscribers from operator channel:

Monthly subscribers from NDNC channel:

Monthly subscribers from partners:

Total monthly subscribers:

A successful channel strategy has the potential increase gross monthly subscribers inflow by 12.5x

Creating the leading emerging markets distribution and monetization mobile platform

• 1. Secure billing integration and service agreements with all key emerging markets mobile operators
• 1. Develop effective marketing channels to promote and sell services in the same markets
• 1. Pilot owned or third party service locally1 and scale globally

Note: 1) Given Bemobi s mature promotional channel structure in Brazil, addressable user base of 100% and its relatively large size (20 0MM+), Brazil is an ideal pilot market before global expansion

Introduction to Bemobi

Service offering and distribution channels

Strategy and growth

Key financials

Table of contents

2012 – 2016 number of subscribers

International emerging markets expected to be the main driver for continued growth

Number of subscribers 2012 – 2016 (millions) Key growth drivers going forward

• Signing of new agreements with both Latin American and international operators during 2017e-2019e, of which a majority is expected to be signed in 2017
• Successful implementation of the No Data, No Credit Portal internationally
• Secure international OTT partnerships
• Continuation of conversion and billing rates

Historical financials

Revenue1 2012-2016 (USDm)

Adjusted EBITDA1,2 2012-2016 (USDm)

Note:1) Constant currency applied for revenue and costs, 2012 -2015 figures excludes any international revenue and cost contribution; 2) Excluding restructuring costs and stock-based compensation expenses

Revenue and EBITDA by geography 2016

Revenue from geography Adjusted EBITDA from geography

Fixed and Variable cost by geography 2016

Fixed vs. variable costs1 Fixed vs. variable costs by geography - International ¹ by geography – Latin America

Key financials

Key financials 2016 (USDm) Key drivers behind

• New Apps Club subscribers in emerging markets are expected to be primary driver of the topline growth in 2017e-2019e
• License cost represents revenue share with app developers
• Acquisition cost represents the cost related to OTT partnership
• − Only related to international markets, as subscribers in Latin America comes from operator and NDNC channels
• − Increase in 2017 is related to the sale of Opera browser business, which previously was not reviving a revenue share
• − Decreases as % of sales over time as NCNC portal is successfully implemented
• Fixed cost base is primarily related to compensation, which is driven by headcount
• Bemobi does not expect any significant increases in headcounts to being able to deliver growth in the next three years. Hence, fixed cost base is expected to remain relatively stable 3

	Key financials	2016
1	Total revenues	48.2
	Acquisition cost	0.2
	License cost	16.6
2	Gross profit	31.3
	Margin (%)	65%
	Compensation	7.0
	Hosting	0.2
	Other expenses	1.6
3	Total operating expenses	8.9
	% of sales	18%
	EBITDA	22.5
	Margin (%)	47%

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© 2017 Opera Software ASA. All rights reserved.

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

WILL KASSOY CEO, ADCOLONY

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CMD 2017 Agenda

• 1) AdColony Overview- Will Kassoy (CEO)
• 2) Product Overview- David Kurtz (CPO)
• 3) Performance Business- Bryan Buskas (CCO)
• 4) Brand Business Mike Owen (CRO Brand)
• 5) Closing- Will Kassoy (CEO)

Background

1) 2016 delivered 6th consecutive year of record revenue

• Faster than market growth in Programmatic, Video, Brand Performance and amazing

2) Integrated business and unified company organization structure with

• Organic growth vs. Acquired growth
• International expansion from EMEA & APAC!
• Video business milestone \$300M+ in revenues
• aligned goals and team leadership; Started "Apollo" initiative
• Big accomplishment to unify 11 companies around the world
• Hard work lots of change, new leaders
• Product & Technology teams coming together
• Commercial teams forging business w/limited new products

3) Well positioned for the future

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Positioned for Long Term Success

1) Mobile market continues to grow

• 2017 is inflection point year where digital media > TV in US
• Video, Performance & Programmatic = growth drivers

2) AdColony holds strong Market Position

• SDK footprint 2nd only to Google in top 1000 apps globally!
• Diversity of revenues Brand, Performance & Programmatic & International
• Differentiated technology add value via creativity and data science/AI
• Global scale, revenue growth, profitable and strong balance sheet

3) Apollo - Unified Platform unlocking Revenue Growth/EBITDA yield

• Focused all development on prioritizing revenue generating products first so that the

• Biggest slate of new products the company has ever seen!
• commercial teams are armed w/the products they need to drive growth
• Today: Aurora SDK, Apollo & CORE impacts to Rev, Margin & Opex

AdColony Overview

The Largest Independent Mobile Advertising Platform

85%

of the Top Grossing app publishers trust us as a partner

90% of the Ad Age Top 100 brands have worked with us

1:1 SDK directly integrated with more top apps than anyone but Google

User reach, SDK footprint, and brand/developer relationships are unmatched

The Largest Independent Mobile Advertising Platform

Ahead of Twitter (MoPub), Facebook, AOL (Millennial), InMobi

Our Role in the Ecosystem

Marketers strive to captivate consumers and make an impact at scale

…but capturing consumer attention is now more complex than ever

Marketers started investing in mobile with major platforms

12

Consumer time spent is found beyond social platforms AdColony reaches consumers across key categories

Share of mobile app time spent

Source: comScore Mobile Metrix, October 2016

15

How AdColony is differentiated vis-a-vis Social (FB, Google)

• Higher impact ads that deliver real results/2ndary metrics, not just pushing impressions

• 1) Full Screen environments vs. Feed-based

• • Integrated ad units including user initiated, driving high outcomes

• 2) Focused on most popular top 1000 apps "Todays Primetime"
• It's today's "cable" vs network TV
• 57% of time spent in mobile apps vs. 25% in Social
• Critical reach for media buyers; complementary to FB/Google
• 3) Differentiated Ad Units that drive engagement & outcomes!
• 4) Data/Automation
• SDK provide powerful data signals that other competitors don't receive

• We deliver powerful brand experiences that FB/Google are not delivering today

We aim to be the #1 independent. Complementary to Social

Our Vision

Elevate the state of mobile advertising with high quality advertising experiences that deliver outcomes for brands and publishers on today's most popular"primetime" apps and sites.

Full-Screen, Edge-to-Edge

Video + Display Interstitials via Aurora Other sources provide scale Non-full screen focused on Performance

In Today's Primetime

Best of Mobile entertainment 57% of consumer time spent Redefining content quality

Automated Outcomes

For both Brand & Performance Powered by technology Informed by Data

Creative Experiences

Aurora-focused/powered Supported/extended with Celtra

We Will Stand for One Thing: Mobile Advertising Done Right

Financial Overview

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Financial Overview by BU

Characteristics of each business is different:

1) Brand Business = \$249M in Revenues (51% of Rev)

• Business is with all major Media Agencies and Trading Desks
• Premium Pricing
• against upper and lower funnel KPI's

• Focus on Fortune 100 Brands who value innovative creative & strategic thinking/planning • Large sales organization, transacts in managed & programmatic capacity while delivering

• Programmatic - Mostly Brand and Display advertising (commodity; price/scale)

2) Performance Business = \$235M (49% of Rev)

• Business is 100% direct with customers (app developers)
• Highly re-occuring business (90%+ customer renewal rates)
• Revenues growth relies on accessing high quality supply

• Small and agile sales team with analysts, BI and data science teams to support

AdColony Financial Summary

2016 Financial Summary

\$484M	38%
\$46	34%
\$33	25%
\$170	48%
\$249M	41%
\$235M	37%
REVENUE	GROSS MARGIN

AdColony Financial Summary

2017 Financial Drivers

REVENUE

• Apollo IX / Playables
• 3.1 SDK (Vertical, Interactive)
• CORE / LTV modeling
• Apollo VII / Performance
• Apollo VIII / Bid into Waterfalls
• China / Int'l Expansion

GROSS MARGIN

• Apollo VIII / Bid into Waterfalls
• Revenue mix shift to Programmatic / Brand Performance

OPERATING EXPENSES

• IT / Hosting
• Apollo X
• Apollo XI

AdColony Financial Summary

2018 Financial Drivers

REVENUE

• Growth rates > 2017

GROSS MARGIN

• Some margin degradation from continued revenue mix shift to Programmatic/ Brand Performance

EBITDA

• Margin % improvements from scale and full year of cost efficiencies

Key Take-Aways

1) Growing Market - Mobile

• 2017 is an inflection year where digital spending > TV
• Mobile expected to be 1/3rd of total media spend by 2019 in US & APAC

• FB/Google has captured strong % of early share, but marketers are diversifying spend

2) We have valuable assets today & leading market position

• SDK footprint in top 1000 apps
• Video innovation and differentiated products
• Diverse revenue mix: Performance, Brand, Programmatic
• Data science/AI algorithms, CORE delivering market leading results

3) Investments in SDK & Apollo, will fuel market share growth into the future • 2017 = year of new products introductions & getting organization onto one platform • EBITDA growth driven by automation and operational efficiencies long term

• Expecting strong revenue growth in 2nd half of 2017 and beyond

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

David Kurtz Chief Product Officer

Platform SDK/Creative AI/ Machine Learning

Apollo VII Bidding Engine for Performance Display

Apollo VIII Flexible Supply Toolkit for SDK Inventory

Apollo X All Demand on 1 platform; CORE for Brand

Apollo XI Single SDK, Single Portal

Aurora - Next Generation Ad Products

Instant-Play™ HD Vertical Video

Mobile video that delivers sight, sound, motion and feeling and drives engagement.

Aurora™ Explorable HD Video

Mobile video that drives user exploration and choice

Aurora™ Interactive HD Video

Mobile video that delivers sight, sound, motion, feeling and interactivity

Aurora™ Playables

Putting the game into the Ad

Instant-Play™ HD Video Instant-Play™ HD Vertical Video Aurora™ Explorable HD Video Aurora™ Interactive HD Video

Aurora™ Insterstitials & Playables

Always Edge-to-Edge

Matches App Orientation

Fundamentally Viewable

Industry-Leading Completion Rates

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Core™ - Machine-Learning Driven Ad Serving

Leveraging machine-learning algorithms powered by realtime data, our Core™ engine automatically optimizes campaigns for maximum return on ad spend for advertisers and monetization efficiency for publishers.

Waterfall Position

Prices

Results

eCPMs

Constraints

User Score 75 = \$11.25 User Score 50 = \$7.50 User Score 35 = \$5.25

Predictive Models

• Session Data
• Device Data
• Impression Data
• Clickstream Data

• Set Goal Predictive Models

• Session Data
• Device Data
• Impression Data
• Clickstream Data

• Pricing Target Predictive Models

• Session Data
• Device Data
• Impression Data
• Clickstream Data

User Acquisition - Install Auto-Optimization

User Acquisition - User Value Auto-Optimization

• Session Data
• Device Data
• Activity Data

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

BRYAN BUSKAS CHIEF CUSTOMER OFFICER, ADCOLONY

Performance

Bryan Buskas Chief Customer Officer

The App Install Ecosystem The app install market & AdColony's role

App Install Ecosystem Dynamics

"Growth marketing" is large, growing and global

• A \$10-15B* global app install market growing at 10-20% annually • ~100% direct to developer (no agencies)
• Budgets are unlimited given performance
• Global buying is centralized with one media buying and analytics team
• Fully measurable from ad view > click > app install > launch > post install activities
• Fully transparent down to publisher and site level
• Advertisers (developers) bid and optimize in real-time to fund growth where Return on Ad Spend (ROAS) is greater than Cost Per Install (CPI)
• Constant innovation of ad units
• Constant ability to test new ad formats, channels, partners, data, etc.

AdColony's Position Reported by Top Measurement Partners AdColony is consistently ranked in the Top 5 regardless of measurement partner

Call		G
TOP 25 MOBILE PARTNER	$\overline{2}$	bb
2016	3
TUNE	4
	5
	6
	7	٢
	8
	9
	10

AdColony's App Install Marketplace Position A Top 2 provider of app install scale (quantity of installs)

*Source: AdColony Q3 2016 App Install Marketing Survey

AdColony's App Install Marketplace Position A Top 2 provider of app install quality (retention, engagement, monetization, LTV)

*Source: AdColony Q3 2016 App Install Marketing Survey

Key Trends Budgets, formats, and trends

Video and Social Account for 69% of Advertiser Budgets

Video continues to grow and win additional share

• Facebook controls the social category with news feed and Instagram app install ads
• Most of the social channels continue to shift focus away from native display to video
• Today, AdColony is a leader in mobile video outside of social
• •In 2017, we will expand AdColony performance into new segments (display, playables)

Top 5 App Install Campaign Trends

Larger budgets, more share to video, global campaigns, and fewer larger players

*Source: AdColony Q3 2016 App Install Marketing Survey

Increase Spend More Video More Geos Partner Consolidation Testing New Channels

Investment in Social is Slowing while Video is Growing

AdColony is well-positioned to benefit from continued share gains in video

*Source: AdColony Q3 2016 App Install Marketing Survey

Agree Neutral Disagree

Budgets Shifting to Video

Budgets Shifting to Social

Key Drivers of Our Success AI, creativity and customer experience

Our 3 Strategic Pillars

Creativity (Aurora™)

Focus on full screen experiences that drive engagement (clicks), conversions (installs), monetization (in app purchases) and retention

AI Engine (Core™)

Real-time data driven optimization for clicks, installs, retention, engagement, and in-app-purchases providing both quality and scale

Service

High touch customer service providing daily interaction, support, optimization and ideas that result in 90% annual renewal rates

Our focus on creativity, AI, and customer experience produce results at scale

2017 Performance Products - Creativity and Innovation

Aurora™ Video

Programmatic Display

Aurora™ Interactive Display

Performance Media (APM)

Vertical Video Explorable Video Interactive Video

Full Screen Display Rich Media Playables

Increased reach and scale

leveraging Core™ and RTB AdColony partners who can extend campaign reach and results (non-gaming)

A new suite of Aurora™ interactive formats designed to increase engagement and deliver results

AdColony SDK (3.1)

Non-SDK (Reach & Scale)

360o Developer Service

integration to maximize eCPM

Last year, we renewed 90% of app install customers and 96% of our top 100 publishers

Customer RETENTION

We currently have visibility into at least 30 major new app launches from global top 100 developers over the next 2 quarters

App Developer OUTLOOK

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

MIKE OWEN CHIEF REVENUE OFFICER, BRAND, ADCOLONY

Brand

Mike Owen Chief Revenue Officer, Brand

An AWAKENING

Spotlight On MOBILE

"It's clear that the younger consumer engages with us predominately over the mobile device", Chief Executive Kasper Rorsted told CNBC

Marketers are DECIDING

PRIMETIME

A new quality

Brand-Safe Fraud-Free Highly Viewable

CAPITAL MARKETS DAY 2017 OPERA SOFTWARE

HOTEL CONTINENTAL, OSLO, NORWAY, 30TH MARCH 2017