Presentation by Arkady Volozh of Yandex for the Dutch Delegation of the Digital Perestroika 2.0 Business Trip organized by Coincide & Marketingfacts. June 18, 2009

1. Company Presentation
June 2009
Confidential

2. Disclaimer
Disclaimer
These materials have been prepared by Yandex N.V. (the "Company") and have not been
independently verified. No representations or warranties, express or implied, are made and no
reliance should be placed on the accuracy, fairness or completeness of the information presented or
contained in these materials. Neither the Company nor any of its affiliates, advisers or
representatives accept any responsibility whatsoever for any loss howsoever arising from any
information presented or contained in these materials. No part of these materials shall form the
basis of or be relied upon in connection with any contract or commitment whatsoever. The
information presented or contained in these materials is subject to change without notice.
These materials are highly confidential. The information contained herein may not be copied,
reproduced, redistributed, or otherwise disclosed, in whole or in part to any other person in any
manner. Unauthorized use, copying, reproduction, redistribution or disclosure of these materials to
any other parties (including journalists) is prohibited. You agree to keep the contents of this
presentation and these materials confidential.
These materials do not constitute an offer or invitation to purchase or subscribe for, or a solicitation
of an offer to purchase or subscribe for, any shares of the Company in any jurisdiction.
Confidential
2

3. Yandex Highlights
Yandex at a Glance
The largest internet search engine
Russia’s #1 57% market share in search1
search engine Over 4.0 Bn web pages indexed
More than 15 years of development behind Yandex’s proprietary algorithms capturing
the complex items and nuances of the Russian language
A leading Russian
technology World-class in-house R&D team, benefiting from Russia’s educational focus on applied
company mathematics and data analysis
Yandex culture encourages innovation, creativity and the exchange of ideas
A leading internet 6.7 Bn page views per month 2
destination in
Russia 1.9 Bn search results pages per month 3
Sources:
1. LiveInternet.ru (May 2009)
2. Yandex logs (May 2009)
3. Yandex logs (May 2009)
Confidential
3

4. Yandex Highlights
Yandex – Russia’s Search and Information Retrieval Portal
Facilitating access to the wealth of information available online for Russian-speaking users
News
Mail
Market
Traffic
Photo Sharing Weather jams/maps
Auto
Blog search
Money
Confidential
4

5. Yandex Highlights
Yandex’s Mission
Our goal is to provide easy access
to the wealth of information available online
to answer any questions
our Russian-speaking users may have.
Confidential
5

6. Yandex Highlights
Company History
Search technology developed and refined over more than 15 years
Founding team Fact Search through
begins the Incorporation
extraction Launch of international
development of of Yandex
Yandex.ru technology Yandex documents
Yandex search website is Parallel introduced in advertising
technology launched Search Yandex.News network Yandex.Traffic
1993 1998 2002 2004 2007
1989 1997 2000 2003 2005 2008
Breakeven
Founding team The first Proprietary Purchase of
point achieved
joins CompTek contextual anti-spam Yandex.Money
in Q3
banner is software
displayed introduced
Confidential
6

7. Competitive Highlights
Russia’s Leading Search Engine
Search engine traffic market share in Russia, May 2009
Mail.ru
Other 10%
5%
Rambler
4.5%
Yandex
57%
Google
24%
Source: LiveInternet.ru (May 2009)
Confidential
7

8. Competitive Highlights
Market Share Evolution
Russian search traffic market share 1
January 2006
Yandex begins
to power Mail.ru
search
+
66 67
58
57
May 2008
Updated core search and
ranking algorithms
2006
Google introduces Russian language
morphology-based search capabilities June 2008
Google launches outdoor
26 advertising campaign
24
2001
Google launches March 2006
Russian language Google opens
search engine office in Russia
10
5
5 5
Mar-05
Mar-06
Mar-07
Jul-07
Mar-08
Jul-08
Mar-09
May-07
May-08
May-09
Jun-05
Sep-05
Jun-06
Sep-06
Jan-07
Apr-07
Jun-07
Aug-07
Sep-07
Jan-08
Apr-08
Jun-08
Aug-08
Jan-09
Dec-05
Dec-06
Oct-07
Nov-07
Dec-07
Feb-08
Sep-08
Oct-08
Nov-08
Apr-09
Dec-08
Feb-09
Source: LiveInternet.ru (May 2009)
1. Based on monthly search traffic generation in the Russian internet from Russian IP addresses
Confidential
8

9. Local Strengths
To Win in Certain Markets, Local Knowledge is Key
China (2000) Proprietary South Korea (1999)
Search market share 1: search Search market share 1:
• Baidu – 62% technology • Naver – 57%
• Google – 13% • Google – 10%
Search market share 2:
• Yandex – 57%
• Google – 24%
+ Taiwan
Czech Republic
Japan
Sources:
1. ComScore (May 2008)
2. Liveinternet.ru (May 2009) Confidential
9

10. Local Strengths
Local Market Expertise
Deep Understanding the needs and
• Value proposition for users
customer preferences of Russian internet
and advertisers
insight users and advertisers
• Query response time and
download speed
Proprietary Local network of data centers
• Cost to users
infrastructure and points-of-presence
• Service scalability and
redundancy
• 60,000 advertisers
Local An ecosystem fueled by local
• > 2,000 news sources
Partnerships relationships
• > 1,800 electronic shops
Confidential
10

11. Traffic
0
5
10
15
20
25
30
35
40
45
50
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Jan-05 Jan-05
Mar-05
Mar-05
May-05
Source: Yandex logs, as of May 2009
May-05
Yandex.Search
Jul-05
Jul-05
Sep-05
Sep-05
Nov-05
Nov-05
Jan-06
Jan-06
Mar-06
Mar-06
May-06
May-06
Jul-06
Jul-06
Sep-06
Sep-06
Nov-06
Nov-06
Jan-07
Jan-07
Mar-07
Mar-07
Confidential
May-07
May-07
Jul-07
Jul-07
Sep-07
Sep-07
Nov-07
Nov-07
Monthly O&O SERPs, in millions
Jan-08
Jan-08
Mar-08
Mar-08
Monthly O&O Unique Visitors, in thousands
May-08
May-08
Jul-08
Jul-08
Sep-08
Sep-08
Nov-08
Nov-08
Jan-09
Jan-09
Mar-09
Mar-09
May-09
May-09
49,605
1,920
11

12. Market Opportunities
Internet Users and Penetration
Internet users (MM) and Internet user penetration
298
73% 70% 71%
64%
220 52% 53% 50%
29% 33%
23%
7%
81
50
39 38 35 31
20
5 5
China US India Germany Brazil Russia UK France Poland Hungary Czech
Sources: FOM (16+ group) for Mar 2009 for Russia; Nielsen NetRatings (16-17+ age group) for Q4 2008 for UK, France, Germany and Brazil; Nielsen NetRatings for 2008 for the US; CNNIC (6+ age group) for Jan 2009 for China; ITU
for Nov 2008 for India, GfK for Nov 2008 for Poland; ITU for Dec 2008 for Hungary, ITU for Dec 2008 for Czech Republic
Internet users, Summer 2008 (MM) Internet penetration in Russia, Summer 2008
58%
Central, incl.
Moscow TNS reports that over 85% of
11.2 internet users in Moscow have
33% broadband access
38%
Other Regions 1
22.6 30%
26% 27% 27% 25%
67% 23%
Moscow Central North- Far East Ural South Volga Siberia
ex- West
Moscow
Source: FOM (18+ age group) for summer 2008 Source: FOM (18+ age group) for summer 2008
1. Includes Volga, North-West, South, Siberian, Ural and Far East
Confidential
12

13. Market Opportunities
Online Ad Market
Russian online ad market ($MM)
6%
CAGR
734
2003-08
5%
Display 79%
Text-based 132%
Total 98%
401*
3% 475
248
2%
237
1%
130 333
1%
107
227
56 47
24 107
21
6 35 60
18
2003 2004 2005 2006 2007 2008
Display Text-based online ad spend % of total ad spend
* 2008 text-based ad market is presented as a mid point of the AIB’s consensus estimate of between $390
mm - $410 mm inclusive of VAT
Sources: All data other than for online text-based advertising provided by ZenithOptimedia (June 2008) based on
ruble-denominated data from the Association of Communication Agencies of Russia (AKAR), and the AKAR
2008 Russian media market estimates’ release. Data on online text-based advertising are provided by AIB,
and include both text-based advertising and a small portion of contextually targeted display advertising. All
data are reported inclusive of VAT
Confidential
13