International Search Summit – San Jose

1. International Search Summit – San Jose Search February 2012

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

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

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

5. Russian Internet Penetration Growth Russian market is growing extremely quickly because of penetration growth Internet Penetration in Russia (2000-2011) 43% 42% 37% 27% 21% 19% 15% 12% % of Population 10% 7% 4% 2%

6. Key Investment Highlights Internet Penetration in major cities is close to western standards Internet penetration in Russia by Region (%) Moscow Saint-Petersburg 1M+ Cities Other Russia Source: Public opinion foundation report, June 2011. Data for other countries provided by InternetWorldStats.com, June2011, 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 • Google opens office in Russia • Google introduces Russianlanguage morphology November 2009 Launch of MatrixNet January 2010 Mail.ru stops using Yandexfor search 26% 26% 5% 8% 5% 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 10-13e CAGR:23% 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 Russian e-commerce(mln. USD) 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

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

15. Introduction Yandex isthe Market Leader Search Leader 60% search market share in Russia1 #1 Internet Destination 45 million unique visitors per month2 44% of Russian users’ homepages3 Leading Online Advertising Platform 270,000+ advertisers in 20114 51% online ad market share5 Largest Russian Internet Business FY 2011 $622m Revenues6 (60% yoy growth) $287m Adj. EBITDA7 (50% yoy growth) 1 Source: Liveinternet, January 2012 2 Source: comScore (December 2011) 3 Source: TNS, January 2011 4 Source: Company Information, FY 2011 5 Source: AKAR 2011, as of Feb 22, 2012, adjusted for commissions 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 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 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 Understanding Search News Shopping Maps 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 Videos Music Goods Blogs … 1,400 different territories for Yandex 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% 46% 50% 46% 48% 28% 38% 24% 24% 19% 37% 3% 7% 22% 3% 6% 19% 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 Yandex in Turkey Turkey at a Glance1 News • Population of 76MM • Internet users (‘11): 35MM (46%) • 28local portals • Online ad market (‘13E): $300MM • No established #2 player in search • 2.0MM users in January 20122 • >200K daily users of the portal 2 • Local content & home page • Exclusive content on Yandex.Maps Mail Turkish Market: Fast Growing and Sizeable Maps and Map Based Services Weather Image search Video search Search for goods • 130K downloads of Yandex Mobile Maps Widgets 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

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

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

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

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

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