The document summarizes information about the Russian internet market and search company Yandex. It discusses that Russia has the 7th largest internet audience globally and its market is growing rapidly due to increasing penetration rates. It provides an overview of Yandex, noting it has 60% search market share in Russia and is the largest Russian internet business. The document also describes how Yandex works, including its paid search and analytics tools available in English, and recommends contacting Yandex's international business development team for assistance setting up campaigns.

1. International Search Summit – San Jose Search
February 2012

2. Get Stare
Agenda
Russian Internet market
Yandex overview
How it works
2

3. Russian Internet Market
Internet Users by Country
Russia has the 7th largest audience of Internet Users in the world; 2nd largest in Europe
Internet Users (MM) per Country
Millions of
Internet Users
3

4. Internet Penetration by Country
Russia currently has fairly low penetration compared to other large Internet populations
Internet Penetration per Country
% of Population
4

5. Russian Internet Penetration Growth
Russian market is growing extremely quickly because of penetration growth
Internet Penetration in Russia (2000-2011)
43%
75% 42%
37%
27%
21%
50%
19%
15%
% of Population 12%
10%
7%
25% 4%
2%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
5

6. Key Investment Highlights
Internet Penetration in major cities is close to western standards
Internet penetration in Russia by Region (%)
72%
66%
53%
40%
Moscow Saint-Petersburg 1M+ Cities Other Russia
Source: Public opinion foundation report, June 2011.
Data for other countries provided by InternetWorldStats.com, June 2011, Dec 2011.
6

7. Internet users are concentrated in the western regions
7

8. Key Investment Highlights
Russian Search Engine Competitive Landscape
Search Traffic Share
58%
60%
June 2011
Rambler’s search services
are powered by Yandex
2006 November 2009
• Google opens office in Russia Launch of MatrixNet
• Google introduces Russian
language morphology January 2010
Mail.ru stops using Yandex
for search
26%
26%
5%
5% 8%
1.6%
Source: LiveInternet.ru
8

9. Market Overview
The Russian Advertising Market Is Booming
Russian Total Ad Market ($ Bn) Online as % of Total Ad Spend
14.6 29%
11.8
9.6 20%
18% 18%
7.9 15%
13%
11%
10%
5%
2%
2010 2011e 2012e 2013e UK China Germany France US Spain Russia Italy Brazil India
9

10. Russian online advertising share by media type
Mobile (1%)
Video (4%)
Social (4%)
Display (26%)
Paid Search (66%)
10

11. Russian e-commerce has grown more than 50% in last two years
$14,000
$12,000
$10,000
$8,000
Russian
e-commerce
(mln. USD) $6,000
$4,000
$2,000
$0
2010 2011 2012
Source: Data Insight
11

12. Mobile internet penetration is still relatively low
12

13. Get Stare
Agenda
Russian Internet market
Yandex overview
How it works
13

14. Key Investment Highlights
Local Champions Can Win in Search
Yandex
Baidu
Naver
(launched 1997) (launched 2001) (launched 1999)
Yandex 2
Baidu NHN 3
1
60% 76% 65%
South
Russia China Korea
Others 5%
Others 12%
25,5%
19% 9,5%
28%
Google Google Others Google
Source: Liveinternet.ru, comScore, Analysys International
14

15. Introduction
Yandex is the Market Leader
Search Leader #1 Internet
Destination
60% search market share in Russia1
45 million unique visitors per month2
44% of Russian users’ homepages3
Leading Online Largest Russian
Advertising Platform Internet Business
270,000+ advertisers in 20114 FY 2011
$622m Revenues6 (60% yoy growth)
51% online ad market share5
$287m Adj. EBITDA7 (50% yoy growth)
1 Source: 5 Source: AKAR 2011, as of Feb 22, 2012, adjusted for commissions
Liveinternet, January 2012
6 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 2011
2 Source: comScore (December 2011)
3 Source: TNS, January 2011 7 Source: Company Information for the FY period 2011, using an exchange rate of RUR 32.1961 to $1.00 as of Dec 31, 2011
4 Source: Company Information, FY 2011 Adjusted EBITDA is EBITDA before share-based compensation
15

16. Yandex: The Gateway to the Russian Internet
Russia’s Most Popular Homepage – 44% of All Russian Users
News
Mail
Traffic Jams / Maps
Comparison
Shopping
Yandex.Money
16

17. Key Investment Highlights
Continuous Focus on Innovation
Mail Payments
Language
Search News Shopping Maps
Understanding
1989 1997 2000 2002 2004
1998 2002 2004 2005 2006
1
1989 2001 2005 2008
Source: Company information, Liveinternet.ru, iResearch, SearchEngineWatch.com, comScore
1. Baidu News Service launch date based on being available as of the date of IPO
17

18. Financial Review
Local Focus and Understanding
Russia/CIS is our “Backyard” Locally-relevant Content and Services
Russia + Ukraine + Kazakhstan + Belarus
Search Verticals
Maps/Traffic
Street Views
Images
1,400 different territories for Yandex
Videos
Music
Goods
Blogs
…
Our Ad Campaigns Have a Russian Accent…
“The monitor
does not give
consultations.”
18

19. Key Investment Highlights
Yandex is Replicating Success in Adjacent Markets
Share of Search Traffic in Ukraine, Kazakhstan and Belarus 1
Ukraine Kazakhstan Belarus
(2005) (2009) (2010)
73%
60%
50% 46% 46%
48%
28%
24% 24% 38%
19% 37%
3% 3% 22% 7%
19% 6%
Source: LiveInternet.ru
1. Search traffic reflects transitions by respective country’s users to local and Russian sites
19

20. Turkey – Our First International Market
Expected to be among leading EMEA markets in terms of Ad Expenditure growth in 2011-2014
Turkey at a Glance1 Yandex in Turkey
 Population of 76MM
 Internet users (‘11): 35MM (46%)  2.0MM users in January 20122
 28 local portals  >200K daily users of the portal 2
 Online ad market (‘13E): $300MM  Local content & home page
 No established #2 player in search  Exclusive content on Yandex.Maps
Turkish Market: Fast Growing and Sizeable Maps and Map Based Services
News
Mail
Weather
Image Video
Search for search search
goods
Widgets
130K downloads of Yandex Mobile Maps
1 Euromonitor; FOM; Global Insight; InternetWorldStats.com; ZenithOptimedia; Advertising Expenditure Forecasts, December 2011; Internet user penetration based on total population (source: Global Insight)
2 comScore, January 2012
20

21. Get Stare
Agenda
Russian Internet market
Yandex overview
How it works
21

22. PPC interface available in English
22

23. Bid management in English
23

24. Wide range of Banner Ad options available
24

25. Yandex.Metrica – web analytics tool available in English
25

26. Yandex 101
SEO for Yandex
Organic engine rewritten and launched as MatrixNet in
November 2009
Most of the “old” advice doesn’t apply anymore
Machine learning based; Archetypal sites” chosen as targets by
“Assessors”
Makes advising on SEO very hard; we don’t even know
what the weights are
No formal customer support team for SEO’s
Very good webmaster tools (available in English)
General written guidelines available for how to get included in index
26

27. Yandex Webmaster Tools tell you
 What problems occurred during the indexing process
 Which pages are included in the search index
 Who links to your website
 What searches people make to find your website
 How to protect your site from viruses
 How to improve the appearance of your site in the search results
27

28. Yandex Webmaster Tools Examples
Click Share by Query CTR by Query
Links Popular Queries
28

29. Get Stare
Want to try Yandex?
Contact International Business Development team
Free translation, training and initial setup
Local optimization and campaign feedback
Dedicated English speaking Account Manager in Moscow
Web based reporting, budgeting, etc. available in English language interface
 U.S. or European Yandex entity available for simplified payment, invoicing & contracting
Dollars vs. Rubles
Post pay billing available
U.S. or EU vs. Russian legal jurisdiction
29

30. Thank You!
Preston Carey
Director, Business Development
preston.carey@yandex.ru
+1 857.288.8762
@prestoncarey