SES San Francisco Search

August 2011

2

Russian Market & Yandex Overview

Paid Search

Organic Search

Get Stare

Agenda

3

Introduction

Yandex: World-Class Technology & Internet Leader

#1 Internet Destination

38 million unique visitors per

month

44% of Russian users’

homepages

#1 Search Leader

65% search market share in

Russia

Leading Online Advertising

Platform

180,000+ advertisers

58% online ad market share

Largest Russian Internet Business

$440 million Revenues (2010)

$217 million Adj. EBITDA (2010)

14% 22%

65% 80%

14%6%

69%

4%27%

4

Key Investment Highlights

Naver

Yandex

Baidu

(launched 1997) (launched 2001) (launched 1999)

1 2 3

1. As of March 2011 2. Average market share for 20103. As of August 2010

Russia ChinaSouthKorea

Yandex

GoogleOthers

Baidu

Google

OthersOthers Google

NHN

Source: Liveinternet.ru, iResearch, SearchEngineWatch.com, Nielsen KoreanClick

Local Champions Can Win in Search

5

Key Investment Highlights

Source: Company information, Liveinternet.ru, iResearch, SearchEngineWatch.com, comScore

Continuous Focus on Innovation

1. Baidu News Service launch date based on being available as of the date of IPO

1998

1997 2000 2002 2004

2002 2004 2006

2001 2005 2008

1

Search

Mail

MapsShoppingNews

PaymentsLanguage

Understanding

1989

2005

1989

6

Local Focus and Understanding

Russia/CIS is our “Backyard” Locally-relevant Content and Services

Financial Review

Our Ad Campaigns Have a Russian Accent…

Search Verticals

Maps/TrafficStreet Views

ImagesVideosMusicGoodsBlogs

…

“The monitor does not give consultations.”

1,400 different territories for Yandex

Russia + Ukraine + Kazakhstan + Belarus

7

Source: LiveInternet.ru (March 2011)

Key Investment Highlights

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11

Source: LiveInternet.ru (March 2011)

22%

7%

2%

5%

5%

26%

Search Traffic Share 1

Yandex: The Search Market Leader in Russia

1. Search traffic reflects Russian users to Russian websites

2006• Google opens office in Russia• Google introduces Russian

language morphology

65%58%

November 2009Launch of MatrixNet

January 2010Mail.ru stops using Yandexfor search

8

Yandex is Replicating Success in Adjacent Markets

Key Investment Highlights

Share of Search Traffic in Ukraine, Kazakhstan and Belarus 1

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

Ukraine Kazakhstan Belarus

Source: LiveInternet.ru (March 2011)

(2005) (2009) (2010)

19%

29%

3% 3%

73%

64%

26%

52%

48%

22%

24%

20%6%

7%

40%37%

48%46%

1. Search traffic reflects transitions by respective country’s users to local and Russian sites

Sources: LiveInternet.ru (March 2011)1. Based on monthly search traffic to Russian websites from Russian IP addresses

9

Number of Searches per Month (MM) 1

Leadership in a Fast-Growing Market

сен.05 мар.06 сен.06 мар.07 сен.07 мар.08 сен.08 мар.09 сен.09 мар.10 сен.10 мар.11

2,336

54

254

783

68

10

The Gateway to the Russian Internet

NewsNews

Traffic Jams / MapsTraffic Jams / Maps

Yandex.MoneyYandex.Money

Comparison ShoppingComparison Shopping

MailMail

Russia’s Most Popular Homepage – 44% of All Russian Users

11

The Most Popular Online Destination in Russia

Monthly Unique Visitors in Russia (MM)

Source: comScore (March, 2011)

38.335.7

31.6

28.4

23.3

YANDEX MAIL.RU Vkontakte Google Odnoklassniki

12

Russia: Large and High Growth Internet Market Opportunity

Key Investment Highlights

Growth in Internet Users vs. Penetration

0

20

40

60

80

100

0 5 10 15

Inte

rnet

Pen

etr

ati

on

20

10

(%

)

Internet users CAGR 2010-14e (%)

Source: Euromonitor (January 2011), FOM (March 2011) for Russia

Key Developed Markets

Total Internet Users (MM)

Brazil

China

India

Russia 2010

80

5054

66

3933 31

Germany UK Russia France Italy Spain

2010 2014E

Russia 2014e

2010 2014e

BRIC

7.9

9.6

11.8

14.6

2010 2011e 2012e 2013e

2%

5%

10%11%

13%

15%

18%18%20%

29%

UK China GermanyFrance US Spain Russia Italy Brazil India

13

The Russian Advertising Market Is Booming

Market Overview

Source: ZenithOptimedia (April 2011)

Russian Total Ad Market ($ Bn)

10-13e CAGR: 23%

Online as % of Total Ad Spend – 2010

14

Russia – A Rich Source of Technical Talent

Education in “Hard” Sciences Math & Programming Olympiads

Financial Review

Yandex School of Data AnalysisBest Place to Work for Russian

Developers

15

Russian Market & Yandex Overview

Paid Search

Organic Search

Get Stare

Agenda

16

Simple auction based bidding; but with some local differences

Geographic targeting is important; but you can dip your toes in without it

Russian language is very different; localization and translation from English is difficult

“Conversion” can be different; make sure you are measuring the right things

4 Things to Remember when you use Yandex

17

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

Yandex U.S. entity available for simplified payment, invoicing & contracting

Dollars vs. Rubles

Post pay billing available

U.S. vs. Russian legal jurisdiction

European entity planned for late 2011

Get Stare

Want to try Yandex?

18

Russian Market & Yandex Overview

Paid Search

Organic Search

Get Stare

Agenda

19

Organic engine rewritten and launched as MatrixNet in November 2009

Most of the “old” advice doesn’t apply anymoreMachine 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’sVery good webmaster tools (available in English)General written guidelines available for how to get included in

index

Yandex 101

SEO for Yandex

20

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

Yandex Webmaster Tools tell you

21

Yandex Webmaster Tools Examples

Click Share by Query CTR by Query

Links Popular Queries

22

Register on http://webmaster.yandex.com

Verify site ownership (variety of choices - text file, DNS, etc)

Go play!

How do I get started on Yandex.Webmaster in 3 easy steps?

Preston CareyDirector, Business Development

preston.carey@yandex.ru+1 857.288.8762@prestoncarey

Thank You!