Russian digital advertising market and yandex overview updated as of Q2 2011.

1. Q2 2011 Update Search
July 2011

2. Forward Looking Statement Disclaimer
This presentation includes forward-looking statements. All statements contained in this presentation other than
statements of historical fact, including statements regarding the expected growth of the internet search market and the
number of internet and broadband users in the countries in which we operate; competition in the internet search market
in the countries in which we operate; our anticipated growth and investment strategies; our future business development,
results of operations and financial condition; expected changes in our margins and certain cost or expense items as a
percentage of our revenues; our ability to attract and retain users, advertisers and partners; future advertising supply
and demand dynamics; are forward-looking statements.
These forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause
actual outcomes and results to be materially different from those projected. These risks, uncertainties and assumptions
expressly qualify all subsequent oral and written forward-looking statements attributable to Yandex or persons acting on
its behalf and include, but are not limited to, the following: the growth of the online advertising market; competitive
dynamics in our market; quarterly fluctuations in our operating results; seasonality; our ability to attract users and search
traffic; our ability to continue to develop successful services; the adoption of social, mobile and the web as relationship
marketing channels; our ability to maintain profitability; global economic conditions; political, legislative and regulatory
developments and the other risks described under Risk Factors and elsewhere in our prospectus. It is not possible for
our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-
looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends
discussed in this presentation may not occur and actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
You should not rely upon forward-looking statements as predictions of future events. The events and circumstances
reflected in the forward-looking statements may not be achieved or occur. We cannot guarantee future results, levels of
activity, performance or achievements. We are under no duty to update any of these forward-looking statements after the
date of this presentation or to confirm these statements to actual results or revised expectations, and we disclaim any
obligation to do so, except as required by law.
2

3. Introduction
Yandex: World-Class Technology & Internet Leader
#1 Search #1 Internet
Leader Destination
65% search market share in Russia 38 million unique visitors per month
44% of Russian users homepages
Leading Online Largest Russian
Advertising Platform Internet Business
180,000+ advertisers $440 million Revenues (2010)
58% online ad market share $217 million Adj. EBITDA (2010)
3

4. Key Investment Highlights
Local Champions Can Win in Search
Yandex
Baidu
Naver
(launched 1997) (launched 2001) (launched 1999)
Yandex Baidu NHN
65% 1 80%
2
69%3
South
Russia China Korea
6% 4%
Others 14% 22% Google Others
14% Others 27% Google
Google
Source: Liveinternet.ru, iResearch, SearchEngineWatch.com, Nielsen KoreanClick
1. As of March 2011
2. Average market share for 2010
3. As of August 2010
4

5. 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
5

6. 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.”
6

7. Key Investment Highlights
Yandex: The Search Market Leader in Russia
Search Traffic Share 1
65%
58%
November 2009
2006
Launch of MatrixNet
• Google opens office in Russia
• Google introduces Russian
language morphology January 2010
Mail.ru stops using Yandex
for search
26%
22%
5% 7%
5% 2%
Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11
Source: LiveInternet.ru (March 2011)
1. Search traffic reflects Russian users to Russian websites
7

8. 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%
64%
52%
46%
48% 48%
29%
24% 26%
37% 40%
19%
22% 20%
7%
6%
3% 3%
Apr-09
Jun-09
Aug-09
Oct-09
Jan-10
Mar-10
May-10
Aug-10
Oct-10
Dec-10
Mar-11
Jan-10
Apr-10
Jun-10
Aug-10
Nov-10
Jan-11
Mar-11
Source: LiveInternet.ru (March 2011)
1. Search traffic reflects transitions by respective country s users to local and Russian sites
8

9. Leadership in a Fast-Growing Market
Number of Searches per Month (MM) 1
2,336
783
254
68
54
сен.05 мар.06 сен.06 мар.07 сен.07 мар.08 сен.08 мар.09 сен.09 мар.10 сен.10 мар.11
Sources: LiveInternet.ru (March 2011)
1. Based on monthly search traffic to Russian websites from Russian IP addresses
9

10. 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
10

11. The Most Popular Online Destination in Russia
Monthly Unique Visitors in Russia (MM)
38.3
35.7
31.6
28.4
23.3
YANDEX MAIL.RU Vkontakte Google Odnoklassniki
Source: comScore (March, 2011)
11

12. Key Investment Highlights
Russia: Large and High Growth Internet Market Opportunity
Growth in Internet Users vs. Penetration Total Internet Users (MM)
100
Key Developed Markets
80
80
Russia 2014e 66
Internet Penetration 2010 (%)
60
BRIC 54
50
Brazil 39
40
33
31
Russia 2010
China
20
India
0
0 5 10 15 Germany UK Russia France Italy Spain
Internet users CAGR 2010-14e (%) 2010 2014E
2010 2014e
Source: Euromonitor (January 2011), FOM (March 2011) for Russia
12

13. Market Overview
The Russian Advertising Market Is Booming
Russian Total Ad Market ($ Bn) Online as % of Total Ad Spend – 2010
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
Source: ZenithOptimedia (April 2011)
13

14. Financial Review
Russia – A Rich Source of Technical Talent
Education in Hard Sciences Math & Programming Olympiads
Yandex School of Data Analysis Best Place to Work for Russian Developers
14

15. Technology,
Technology,
Technology,
Local Focus,
Culture.
15

16. 4 Things to Remember when you use Yandex
v Simple auction based bidding; but with some local differences
v Geographic targeting is important; but you can dip your toes in without it
v Russian language is very different; localization and translation from English is difficult
v Conversion can be different; make sure you are measuring the right things
16

17. Get Stare
Want to try Yandex?
v Contact International Business Development team
v Free translation, training and initial setup
v Local optimization and campaign feedback
v Dedicated English speaking Account Manager in Moscow
v Web based reporting, budgeting, etc. available in English language interface
v Yandex U.S. entity available for simplified payment, invoicing & contracting
v Dollars vs. Rubles
v Post pay billing available
v U.S. vs. Russian legal jurisdiction
v European entity planned for late 2011
17

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