yandex roadshow slides april 2014

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Company Presentation Search

April 2014



Forward Looking Statement Disclaimer

This presentation contains forward-looking statements that involve risks and uncertainties. Theseinclude statements regarding the anticipated development of the internet search and the online

advertising markets, the planned growth of our business and our anticipated revenues and capitalexpenditures.

Actual results may differ materially from the results predicted or implied by such statements, and ourreported results should not be considered as an indication of future performance. The potential risksand uncertainties that could cause actual results to differ from the results predicted or implied by suchstatements include, among others, competitive pressures, our ability to attract and retain users,advertisers and partners, changes in advertising patterns, changes in internet usage patterns, changes

in the legal and regulatory environment, technological developments and our need to expend capital toaccommodate the growth of the business, as well as those risks and uncertainties included under thecaptions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results ofOperations” in our Annual Report on Form 20-F dated April 4, 2014, which is on file with the Securitiesand Exchange Commission and is available on our investor relations website.

All information provided in this presentation is as of April 25, 2014, and Yandex expressly disclaims anyduty to update this information unless required by law.



3

Yandex is the Market Leader in Russia

#1 InternetDestination

66 MM unique visitors per month in Russia2

Search Leader

62.0% search market share in Russia1

Leading Online

Advertising PlatformMore than 460,000 advertisers in 20133

57% online ad market share4

Largest Internet

Business$1,207 MM Revenues5 in 2013 (+37% yoy)

$531 MM Adj. EBITDA 6 in 2013 (+32% yoy)

1 Source: Liveinternet, through April 27, 20142 Source: comScore, Jan 20133

Source: Company Information, FY 2013

4 Source: http://www.akarussia.ru/knowledge/market_size, AKAR for 2013, adjusted for commissions5 Source: Company Information for FY 2013, using an exchange rate of RUR 32.37292 to $1.00 as of 31 December 20136

Source: Company Information for FY 2013, using an exchange rate of RUR 32.7292 to $1.00 as of 31 December 2013 Adjusted EBITDA is EBITDA before share-based compensation. See slides 20-23 for reconciliation to US GAAP Net income

http://www.akarussia.ru/knowledge/market_size%20AKAR%20for%20H1%202013H1





114.1

13.6

7.46.9

6.1 5.9 5.4

2.6 2.3 2

4

Russia is One of the World’s Largest Internet Markets

Internet Users and Penetration Worldwide Top-10 Search Properties (Bn Searches)3

1 Source: InternetWorldStats for the USA, China, France, Germany, India, Spain, 30 June 2012; InternetWorlsStats for Brazil, UK, Italy, 31 December 2011; FOM (Public OpinionFoundation) for Russia, Fall 2013

2 FOM (Public Opinion Foundation) forecast conducted by Leonid Delitsyn, Finam, Dec 2013. The forecast projects the best case scenario of 85% internet penetration in 2020 and73% internet penetration in 2020 in worst case scenario.3 Source: comScore, January 2014

150

300

600

8 24 40 56 72 88

Internet Penetration (%)1

Key developed markets

BRIC

Russia

Russia 2020E2

Internet Users (MM)1

http://corp.360.cn/

http://localhost/var/www/apps/conversion/tmp/scratch_9/w/index.php?title=File:EBay_logo.svg&page=1

http://localhost/var/www/apps/conversion/tmp/scratch_9/w/index.php?title=File:Yahoo_Logo.svg&page=1

http://localhost/var/www/apps/conversion/tmp/scratch_9/w/index.php?title=File:Baidu.svg&page=1

http://localhost/var/www/apps/conversion/tmp/scratch_9//upload.wikimedia.org/wikipedia/commons/f/f4/Microsoft.svg



165

219234

177207

252

286

322354

387416

-

100

200

300

400

500

600

700

800

900

2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E

Total Ex-Online Online Advertising

5

Russia Has a Very Attractive Advertising Market

1 Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2013

Total Russian Advertising Market in constant currencies (RUR Bn)1

Online as % of Total Ad Market 12.9% 16.6% 22.8% 26.1% 10.8%

Russian Online Advertising to Grow at 25% CAGR 2013E –2015E

32.4% 19.7% 29.4%



49%

35%32% 31% 26% 26% 23%

19%

10% 5%

UK Russia US Germany China France Spain Italy Brazil India

41%

23% 23% 22% 22% 22% 21%16%

7% 4%

UK France Germany Russia Spain US China Italy Brazil India

YoY Growth Rates of Text-based vs. Display Advertising2

6

Online Advertising Expected to Continue to Outperform

1

Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 2013;2 Source: http://www.akarussia.ru/knowledge/market_size AKAR for 2010, 2011, 2012, 20133 Based on “Total Major Media” ad spend (including TV, Radio, Magazines, Newspapers, Outdoor, Internet and Cinema)

Text-based Continues to Grow Faster than Display in Russia

46%

17%

12%

63%

45%

34%

2011

2012

2013

Display Text-Based

Text-basedrepresented

71% oftotal onlineadvertisingin 2013

YoY Growth Rates1

Online Advertising in Russia Has Consistently

Outperformed OfflineOnline as % of Total Ad Spend –2013E1

Online as % of Total Ad Spend –2016E1

3

3

17%

9% 8%5%

56%

35%30%

26%

0%

10%

20%

30%

40%

50%

60%

2011 2012 2013E 2014E

Total Ex-Online Online



J u n - 0 6

A u g - 0 6

O c t - 0 6

D e c - 0 6

F e b - 0 7

A p r - 0 7

J u n - 0 7

A u g - 0 7

O c t - 0 7

D e c - 0 7

F e b - 0 8

A p r - 0 8

J u n - 0 8

A u g - 0 8

O c t - 0 8

D e c - 0 8

F e b - 0 9

A p r - 0 9

J u n - 0 9

A u g - 0 9

O c t - 0 9

D e c - 0 9

F e b - 1 0

A p r - 1 0

J u n - 1 0

A u g - 1 0

O c t - 1 0

D e c - 1 0

F e b - 1 1

A p r - 1 1

J u n - 1 1

A u g - 1 1

O c t - 1 1

D e c - 1 1

F e b - 1 2

A p r - 1 2

J u n - 1 2

A u g - 1 2

O c t - 1 2

D e c - 1 2

F e b - 1 3

A p r - 1 3

J u n - 1 3

A u g - 1 3

O c t - 1 3

D e c - 1 3

F e b - 1 4

A p r - 1 4

7

Yandex is the Consistent Search Leader in Russia

1 Source: LiveInternet.ru through April 27, 2014. Search traffic reflects Russian users to Russian websites and includes desktop and mobile

Share of Searches1

27.6%

7.7%

1.0%

8%

6%

21%

62.0%60%

http://www.rambler.ru/click?from=logo&_URL=http://beta.rambler.ru



59.3%62.0%

68.6%

79.2%

32.5% 38.0%

69.8%

71.9%

65.2%

77.5%

32.7%31.6%

84.6%

92.9%

40.2%

47.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

30-Jan-12 30-Jul-12 30-Jan-13 30-Jul-13 30-Jan-14

Yandex is Gaining Share in All Major Browsers1

8

Market Share Gains in all Major Browsers

Yandex’s Recent Search Innovations

Islands - a new search platform that groups results intoinformation blocks and allows us for interactivity withthird-party sites directly on the Yandex SERP through theuse of APIs

Upgraded personalized search, part of Yandex’s search platform, Dublin. Based on both user’s long-termand short-term interests – those within the current searchsession

Intent-based search understands users’ needs andhelps them to attain their goals. Based on proprietarySpectrum technology

Facts and figures in suggestions - users now see theanswers to their queries even before they finish typing

Social search complements search results with socialnetworking content

Partnership with Facebook – access to the full ‘firehose’ of all public posts in Russia, CIS and Turkey

Freshness - search returns a group of links to the mostrecent web documents graphically separated from othersearch results. Based on proprietary Orange technology

Constant improvements in the quality of search includingfreshness, response time and quality of answers tolong-tail queries

Overall

1 Source: LiveInternet.ru, weekly through the week beginning April14, 20132 Google Chrome shown separately3 We have cautioned in the past that LiveInternet market share data for mobile operating systems, such as Android is highly unreliable. Lately, we also have had little more difficulty

than usual in accurately measuring our market share internally. Our latest assessment is that our Android share is 54%.4 We cautioned previously that starting from September 2012 LiveInternet market share data for Safari is unreliable. According to our own estimates, based on Yandex.Metrica measurements, our latest assessment of our search share on iOS is 45%.

2

3

4

2



Yandex.Market - #1 Comparison Shopping Destination in RussiaOver 14,000 e-shops, 60+MM offers

E-shops show up in ‘shops nearby’ based

on the advertiserlocation and CPC bid

User GeneratedReviews

‘To the shop’ buttonleads you right to theproduct page of the

correspondent e-shop

‘Order on Market’ buttonadds the product to a

unified basket

Shopping basket



Yandex is Gaining Momentum in Turkey

12

Turkey - Our First International Market

Population of 80 MM Internet users (2012): 36 MM

(46% penetration) 2 Bn local webpages Online ad market (2013E): $595 MM

Online ad penetration: 19% Projected to grow to $1,055 MM

in 2016E

21% 2013-2016 CAGR

1 Source: Euromonitor; FOM; InternetWorldStats.com; ZenithOptimedia - Advertising Expenditure Forecasts as of December 2013; Internet user penetration based on totalpopulation (source: InternetWorldStats)

2 Souce: comScore, January 2014

Turkey is a Large and Fast-growing Online Market 1

Turkey – Launched ServicesOur new Islands platform was first launched in Turkey

News

Timetable

Mail

Maps, traffic andpanoramic street images

Weather

5% of Turkish search market2

In March 2014, our average monthly visitorsnumbered around 14 MM people according toComScore, which is a 2-fold increase from ayear ago

Yandex.Navigator was named the local mobileapp of the year at Webrazzi Awards 2013

Web Search

Video

Images

Maps

Traffic

News

Translate

Weather

Webmaster

Search for websites

Yandex.Bar

Mozilla Firefox

InternetExplorer

Opera

Yandex.Browser

Time

Mail

Mobile services& applications

Metrica

Yandex.XML

Market



Financials



1,301965

2,151

5,530

3,984

4,936

859

2,065

-

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013 Q12013 Q12014

2,523 2,2703,968

6,003

8,768

12,140

2,410 2,552

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008 2009 2010 2011 2012 2013 Q12013 Q12014

3,825 3,759

6,164

9,237

13,142

17,367

3,504 4,042

0

5,000

10,000

15,000

20,000

2008 2009 2010 2011 2012 2013 Q12013 Q12014

7,649 8,72912,500

20,033

28,767

39,502

7,99910,885

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2008 2009 2010 2011 2012 2013 Q12013 Q12014

$5313

14

Financial Summary

Financial Review

1 Revenues are recognized net of VAT, discounts and commissions, but gross of TAC2 Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA margin and Adjusted Net Income margin are non-GAAP financial measures. For Reconciliations of non-GAAP financial

measures to the nearest comparable US GAAP measures see slides 20-233 Translated using an exchange rate of RUR32.7292 to $1.00 as of Dec 31, 2013. $ figures shown in charts expressed in millions4 Figures have been restated to exclude Yandex.Money capex for all periods. Capex as % of Revenue excludes Yandex.Money from numerator and denominator

$1,2073

Adjusted Net Income2

$3713

Capex4

$1513

17% 11% 17% 28% 14%

x% Capex as % of Revenue

Adjusted EBITDA2Revenues1

RUR MM

RUR MM RUR MM

RUR MM

11% 19%12%



RUR MM

62%

66%

76%

73%

72%

70%

73%

68%24%20%

12%

15%

17%

20%

16%

24%

12%11%

10%

10%

9%

9%

8%

7%7,649 8,729

12,500

20,033

28,767

39,502

7,999

10,885

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2008 2009 2010 2011 2012 2013 Q12013 Q12014

Text-Based O&O Text-Based Yandex Ad Network Display Yandex.Money & Other

15

Revenues

Financial Review

1 Revenues are recognized net of VAT, discounts and commissions, but gross of TAC

Revenues1 and Contribution by Source



Adjusted EBITDA1 (RUR MM) and Margin (%)

Adjusted EBITDA

Financial Review

16

1. Adjusted EBITDA is EBITDA before share-based compensation. Adjusted EBITDA Margin means adjusted EBITDA divided by US GAAP revenues. Adjusted ex-TAC EBITDA marginmeans adjusted EBITDA divided by ex-TAC revenues. For a reconciliation of these non-GAAP financial measures to their most directly comparable US GAAP measures, see slides20-23.

1 1 1

991 1,448 1,5192,206

6,164

1,719 1,914 2,3353,269

9,237

2,3773,070 3,440 4,255

13,142

3,504 4,303 4,412

5,148

17,367

4,042

42%

50% 49%53%

49%44% 42%

45%51%

46%

41%45% 47% 48% 46% 44%

47%43% 43% 44%

37%

49%

57% 56%61%

56%51% 49%

54%

60%54%

49%54%

57% 57% 55%52%

56% 55% 56% 55%

49%

(80)%

(60)%

(40)%

(20)%

0%

20%

40%

60%

(2,000)

3,000

8,000

13,000

18,000

23,000

28,000

Q1'10 Q2'10 Q3'10 Q4'10 2010 Q1'11 Q2'11 Q3'11 Q4'11 2011 Q1'12 Q2'12 Q3'12 Q4'12 2012 Q1'13 Q2'13 Q3'13 Q4'13 2013 Q1'14

Adjusted EBITDA Adjusted EBITDA margin Adjusted EBITDA margin ex-TAC



Adjusted Net Income

Financial Review

Adjusted Net Income1 (RUR MM) and Margin (%)

17

1. Adjusted net income is net income before share-based compensation and foreign exchange (gains)/losses in both cases tax-adjusted. Adjusted net income margin is adjusted netincome divided by US GAAP revenues. Adjusted ex-TAC net income margin is adjusted net income divided by ex-TAC revenues. For a reconciliation of these non-GAAP measuresto their most directly comparable US GAAP measures see slides 20-23.

1 1 1

585935 978

1,470

3,968

1,088 1,258 1,4592,198

6,003

1,5052,069 2,229

2,965

8,768

2,410 3,058 3,153

3,519

12,140

2,552

25%

32% 31%

36%

32%

28% 28% 28%

34%

30%

26%

30% 31%34%

30% 30%

33%31%

29%31%

23%

29%

37% 36%

41%

36%

32% 32%34%

40%

35%

31%

37% 37%40%

37% 36%40% 40% 38% 38%

31%

(30)

(20)

(10)

0%

10

20

30

40

0

,000

,000

,000

,000

,000

,000

,000

,000

,000

,000


Adjusted Net Income Adjusted Net Income margin Adjusted Net Income margin ex-TAC

Fi i l R i



Capex

Financial Review

Capex and Capex/Revenue Ratio1

RUR MM

1 Figures have been restated to exclude Yandex.Money capex for all periods. Capex as % of Revenue excludes Yandex.Money from numerator and denominator

222

725510

694

2,151

968 1,121

1,708 1,733

5,530

764 690

1,530

1,000

3,984

859685

1,727 1,665

4,936

2,065

9%

25%

16%17% 17%

25% 25%

33%

27% 28%

13%

10%

21%

11%14%

11%

7%

17%

14%12%

19%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000


Capex Capex as % of Revenue



Supplementary

Materials



Reconciliation of Non-GAAP Financial Measures1

1 Figures may not add due to rounding

Reconciliation of Ex-TAC Revenues to US GAAP Revenues

In RUR millions

Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Total revenues 2,355 2,889 3,131 4,125 3,894 4,541 5,159 6,439 5,874 6,801 7,273 8,819 7,999 9,199 10,218 12,086 10,885

Less: traffic acquisition costs (TAC) 317 353 396 507 537 641 818 1,002 992 1,141 1,231 1,416 1,305 1,465 2,252 2,828 2,568

Ex-TAC revenues 2,038 2,536 2,735 3,618 3,357 3,900 4,341 5,437 4,882 5,660 6,042 7,403 6,694 7,734 7,966 9,258 8,317

Reconciliation of Adjusted EBITDA to US GAAP Net Income

In RUR millions


Net income 507 1,017 883 1,410 820 1,125 1,705 2,123 1,258 1,983 2,291 2,691 2,246 2,915 4,967 3,346 2,680

Add: depreciation and amortization 259 272 307 343 377 427 488 582 661 696 734 860 879 912 914 990 1,069

Add: share-based compensation (SBC) expense 33 32 39 56 70 109 66 84 81 74 106 115 151 151 229 223 255

Add: compensation expense related to contingent consideration - - - - - - - - 76 55 57 173 21 22 24 14 -

Less: interest income, net (28) (39) (43) (46) (34) (36) (47) (105) (167) (234) (268) (333) (368) (452) (483) (414) (172)

Less: other income, net 57 (143) 60 2 254 33 (361) 12 124 (53) (147) (42) (26) (17) ( 2,022) (94) (668)

Add: provision for income taxes 163 309 273 441 232 256 484 573 344 549 667 791 601 772 783 1,083 878

Adjusted EBITDA 991 1,448 1,519 2,206 1,719 1,914 2,335 3,269 2,377 3,070 3,440 4,255 3,504 4,303 4,412 5,148 4,042

Reconciliation of Adjusted Net Income to US GAAP Net Income

In RUR millions


Net income 507 1,017 883 1,410 820 1,125 1,705 2,123 1,258 1,983 2,291 2,691 2,246 2,915 4,967 3,346 2,680

Add: SBC expense 33 32 39 56 70 109 66 84 81 74 106 115 151 151 229 223 255

Le ss: re ducti on i n i ncome tax attri butab le to SBC e xpe nse - - - - - (3) (6) (4) (1) (1) (1) (1) (2) (2) (2) (3) (5)

Add: compensation expense related to contingent consideration - - - - - - - - 76 55 57 173 21 22 24 14 -

Less: foreign exchange (gain) 57 (143) 70 5 254 34 (383) (6) 114 (52) 13 (17) (7) (35) 2 (99) (647)

Add: increase/(reduction) in income tax attributable to foreign

exchange (gain)/loss (12) 29 (14) (1) (56) (7) 77 1 (23) 10 (3) 4 1 7 - 20 129

Less: gain from sale of equity investments and deconsolidation - - - - - - - - - - (234) - - - (2,067) - -

Add: amortization of debt discount - - - - - - - - - - - - - - - 24 183

Less: reduction in income tax attributable to amortization of debt - - - - - - - - - - - - - - - (6) (43)

Adjusted net income 585 935 978 1,470 1,088 1,258 1,459 2,198 1,505 2,069 2,229 2,965 2,410 3,058 3,153 3,519 2,552



Reconciliation of Non-GAAP Financial Measures (cont’d)1

1 Figures may not add due to rounding

Reconciliation of Ex-TAC Revenues to US GAAP Revenues

In RUR millions

2007 2008 2009 2010 2011 2012 2013

Total revenues 4,249 7,649 8,729 12,500 20,033 28,767 39,502Less: traffic acquisition costs (TAC) 504 1,270 1,305 1,573 2,998 4,780 7,850

Ex-TAC revenues 3,745 6,379 7,424 10,927 17,035 23,987 31,652

Reconciliation of Adjusted EBITDA to US GAAP Net Income

In RUR millions

2007 2008 2009 2010 2011 2012 2013

Net income 1,520 2,432 2,010 3,817 5,773 8,223 13,474

Add: depreciation and amortization 295 600 912 1,181 1,874 2,951 3,695

Add: share-based compensation (SBC) expense 37 140 209 160 329 376 754

Add: compensation expense related to contingent consideration - - - - - 361 81

Less: interest income, net (31) (86) (67) (156) (222) (1,002) (1,717)

Less: other income, net 4 (208) 23 (24) (62) (118) (2,159)

Add: provision for income taxes 559 947 672 1,186 1,545 2,351 3,239

Adjusted EBITDA 2,384 3,825 3,759 6,164 9,237 13,142 17,367

Reconciliation of Adjusted Net Income to US GAAP Net Income

In RUR millions

2007 2008 2009 2010 2011 2012 2013

Net income 1,520 2,432 2,010 3,817 5,773 8,223 13,474

Add: SBC expense 37 140 209 160 329 376 754 Less: reduction in income tax attributable to SBC expense - - - - (13) (4) (9)

Add: compensation expense related to contingent consideration - - - - - 361 81

Less: foreign exchange (gain)/loss 5 (65) 64 (11) (101) 57 (139)

Add: increase/(reduction) in income tax attributable to foreign

exchange (gain)/loss (1) 16 (13) 2 15 (11) 28

Less: gain from sale of equity investments and deconsolidation - - - - - (234) (2,067)

Add: amortization of debt discount - - - - - - 24

Less: reduction in income tax attributable to amortization of debt discount - - - - - - (6)

Adjusted net income 1,561 2,523 2,270 3,968 6,003 8,768 12,140



Reconciliation of Non-GAAP Financial Measures (cont’d)

Reconciliation of Adjusted EBITDA Margin and Adjusted Ex-TAC EBITDA Margin to US GAAP Net Income Margin

In RUR millions

US GAAP Net Income Net Income Margin

(1)

Adjustment (2) Adjust ed EBITDA Adjust ed EBITDA

Margin (3)

Adjusted Ex-TAC

EBITDA Margin (4)

Three months ended March 31, 2010 507 21.5% 484 991 42.1% 48.6%

Three months ended June 30, 2010 1,017 35.2% 431 1,448 50.1% 57.1%

Three months ended September 30, 2010 883 28.2% 636 1,519 48.5% 55.5%

Three months ended December 31, 2010 1,410 34.2% 796 2,206 53.5% 61.0%

Three months ended March 31, 2011 820 21.1% 899 1,719 44.1% 51.2%


Three months ended September 30, 2011 1,705 33.0% 630 2,335 45.3% 53.8%

Three months ended December 31, 2011 2,123 33.0% 1,146 3,269 50.8% 60.1%

Three months ended March 31, 2012 1,258 21.4% 1,119 2,377 40.5% 48.7%

Three months ended June 30, 2012 1,983 29.2% 1,087 3,070 45.1% 54.2%

Three months ended September 30, 2012 2,291 31.5% 1,149 3,440 47.3% 56.9%



Three months ended June 30, 2013 2,915 31.7% 1,388 4,303 46.8% 55.6%

Three months ended September 30, 2013 4,967 48.6% (555) 4,412 43.2% 55.4%



Twelve months ended December 31, 2010 3,817 30.5% 2,347 6,164 49.3% 56.4%

Twelve months ended December 31, 2011 5,773 28.8% 3,464 9,237 46.1% 54.2% Twelve months ended December 31, 2012 8,223 28.6% 4,919 13,142 45.7% 54.8%

Twelve months ended December 31, 2013 13,474 34.1% 3,893 17,367 44.0% 54.9%

(1) Net income margin is defined as net income divided by total revenues.

(2) Adjusted to eliminate depreciation and amortization expense, SBC expense, interest income, net, other (expense)/income, net, and provision for income taxes.

For a reconciliation of adjusted EBITDA to net income, please see the table above.

(3) Adjusted EBITDA margin is defined as adjusted EBITDA divided by total revenues.

(4) Adjusted ex-TAC EBITDA margin is defined as adjusted EBITDA divided by ex-TAC revenues. For a reconciliation of ex-TAC revenues to GAAP revenues, please see the table above.



23

Reconciliation of Non-GAAP Financial Measures (cont’d)

Reconciliation of Adjusted Net Income Margin and Adjusted Ex-TAC Net Income Margin to US GAAP Net Income Margin

In RUR millionsUS GAAP Net Income Net Income Margin

(1)

Adjustment (2) Adjusted Net Income Adjusted Net Income

Margin (3)

Adjusted Ex-TAC Net

Income Margin (4)

Three months ended March 31, 2010 507 21.5% 78 585 24.8% 28.7%

Three months ended June 30, 2010 1,017 35.2% (82) 935 32.4% 36.9%

Three months ended September 30, 2010 883 28.2% 95 978 31.2% 35.8%


Three months ended March 31, 2011 820 21.1% 268 1,088 27.9% 32.4%




Three months ended March 31, 2012 1,258 21.4% 247 1,505 25.6% 30.8% Three months ended June 30, 2012 1,983 29.2% 86 2,069 30.4% 36.6%


Three months e nded December 31, 2012 2,691 30.5% 274 2,965 33.6% 40.1%

Three months ended March 31, 2013 2,246 28.1% 164 2,410 30.1% 36.0%

Three months e nded June 30, 2013 2,915 31.7% 143 3,058 33.2% 39.5%

Three months ended September 30, 2013 4,967 48.6% (1,814) 3,153 30.9% 39.6%

Three months e nded December 31, 2013 3,346 27.7% 173 3,519 29.1% 38.0%

Three months ended March 31, 2014 2,680 24.6% (128) 2,552 23.4% 30.7%

Twelve months ended December 31, 2010 3,817 30.5% 151 3,968 31.7% 36.3%

Twelve months ended December 31, 2011 5,773 28.8% 230 6,003 30.0% 35.2% Twelve months ended December 31, 2012 8,223 28.6% 545 8,768 30.5% 36.6%

Twelve months ended December 31, 2013 13,474 34.1% (1,334) 12,140 30.7% 38.4%

(1) Net income margin is defined as net income divided by total revenues.

(2) Adjusted to eliminate SBC expense (as adjusted for the income tax reduction attributable to SBC expense), foreign ex change gain (as adjusted for the reduction in income

tax attributable to the gain) and amortization of debt discount (as adjusted for the reduction in income tax attributable to the expense).

For a reconciliation of adjusted net income to net income, please see the table above.

(3) Adjusted net income margin is defined as adjusted net income divided by total revenues.

(4) Adjusted ex- TAC net income margin is defined as adjusted net income divided by ex-TAC revenues. For a reconciliation of ex-TAC revenues to US GAAP revenues, ple ase see the table above.

Appendix



2424

Appendix

Shareholders Economic ownership as of Mar 31, 20141

Principal pre-IPO Shareholder, Directors,Officers and Employees

22.5%

Baring Vostok 6.3%

Arkady Volozh (CEO) 10.7%

Other Directors

0.9%

Other Officers & Employees 4.6%

Other Pre-IPO Shareholders 6.0%

Public Investors 71.3%

Total 100.0%2

Ownership Structure

1. Figures may not add due to rounding

2. The total number of shares issued and outstanding of March 31, 2014 was 321,175,805, including 250,305,393 Class A shares, 70,870,411 Class B shares, and one Priorityshare and excluding 8,745,949 Class A shares held in treasury as a result of Yandex’s repurchase program

Financial Review



29%

19%14%

29%

52%

60%62%

73%67%

57% 57%

43% 43% 43% 39% 40%37% 37%

33%30%

26%

-9% -11%

-16%

12%

-8%-12% -14%

-17%

38%

69%

124%

131%

117%

93%

55%41%

28%

82%

94%

104%

-15% -13%-18%

-7%

13%

20%24%

26%

7% 8%

-1%

-7% -5% -7%

5% 11% 14% 5%

-5%-7%

-5%

39%

28% 29%34%

22%

19% 17%21%

51%

47%

68% 65%61% 62%

35%1

26%18%

29%

50%52%

49%

Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

25

Financial Review

Growth in Paid Clicks and CPC

Operational Metrics

CPC Y/Y GrowthClicks Y/Y Growth Yandex Websites Contextual Revenue Y/Y Growth Ad Network Contextual Revenue Y/Y Growth

Key Investment Highlights



26


Traffic Acquisition Costs

Partner TAC

RUR MM

TAC Breakdown1

RUR MM

Distribution TAC Partner TAC Personnel costs as % of Revenue

RUR MM

Distribution TAC

Partner TAC As % of Partner Revenue

Distribution TAC As % of O&O Text-Based RevenueTAC as % of Revenue

992

1,1411,231

1,4161,305

1,465

2,252

2,828

2,568

17% 17% 17%16%

16% 16%

22%

23% 24%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

0

500

000

500

000

500

000

500

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

657 729 814 928 820 890

1,644

2,0231,789

64.4% 64.4% 63.4% 63.5% 62.8% 63.0%70.3% 71.5% 67.2%

-20.0

0.0%

20.0%

40.0%

60.0%

-400

100

600

1,100

1,600

2,100

2,600

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

335412 417

488 485 575 608

805 7797.8% 8.4% 7.9% 7.9% 8.3% 8.6% 8.7% 10.1% 10.5%

-6.0%

-1.0%

4.0%

9.0%

-100

100

300

500

700

900

1100

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14





Headcount Evolution

1 Items may not total 100% due to rounding; Includes Yandex.Money employees for the respective periods

Personnel Breakdown by GAAP Cost Category1

RUR MM

Cost of Sales Product Development Personnel costs as % of RevenueSG&A

10% 10% 10% 9% 10%10% 10% 10% 10% 10% 10% 10% 10% 9% 8% 8% 8%

53% 53% 54%

55%53%

54%55%

56% 55% 55% 54%54%

55%55%

58%

60%59%

37%36%

36%

36%

37%

36%35%

35% 35%35%

36%36%

35%

36%34%

32%

33%

1,860 1,9482,168

2,385

2,677

3,0013,163

3,312 3,3413,474 3,607

3,7613,972

4,298 4,409

4,9025,136

26%21% 21% 19%

26%22%

19% 17%

24%20% 18% 18%

21% 20% 18% 16%22%

-110%

-90%

-70%

-50%

-30%

-10%

10%

0

000

000

000

000

000


yandex roadshow slides april 2014

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