For Jefferies 2013 Global TMT Conference

Transcription

1 For Jefferies 203 Global TMT Conference Search May 203

2 Forward Looking Statement Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These include 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 capital expenditures. Actual results may differ materially from the results predicted or implied by such statements, and our reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted or implied by such statements 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 to accommodate the growth of the business, as well as those risks and uncertainties included under the captions Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 20-F dated March, 203, which is on file with the Securities and Exchange Commission and is available on our investor relations website. All information provided in this presentation is as of May 7, 203, and Yandex expressly disclaims any duty to update this information unless required by law.

3 Yandex is the Market Leader in Russia Search Leader # Internet Destination 6.9% search market share in Russia 53 MM unique visitors per month in Russia 2 Leading Online Advertising Platform 350,000 advertisers in % online ad market share 4 Largest Internet Business $947 MM Revenues 5 in 202 (+44% yoy) $433 MM Adj. EBITDA 6 in 202 (+42% yoy) Source: Liveinternet, through April Source: comscore, March Source: Company Information, FY Source: AKAR for 202, adjusted for commissions 5 Source: Company Information for FY 202, using an exchange rate of RUR to $.00 as of 3 December Source: Company Information for FY 202, using an exchange rate of RUR to $.00 as of 3 December 202 Adjusted EBITDA is EBITDA before share-based compensation. See slides for reconciliation to US GAAP Net income 3

4 Russia is One of the World s Largest Internet Markets Internet Users (MM) Internet Users and Penetration Worldwide Top-0 Search Properties (Bn Searches) BRIC Key developed markets Russia 204E Russia Internet Penetration (%) Source: InternetWorldStats for the USA, China, France, Germany, India, Spain, 30 June 202; InternetWorlsStats for Brazil, UK, Italy, 3 December 20; FOM (Public Opinion Foundation) for Russia for Fall 202; FOM Growth forecast as of March 20 2 Source: comscore, January 203 4

5 Russia Has a Very Attractive Advertising Market Russian Online Advertising to Grow at 26% CAGR 203E 205E 700 Total Russian Advertising Market in constant currencies (RUR Bn) E 203E 204E 205E Total Ex-Online Online Advertising Online as % of Total Ad Market 0.8% 2.9% 6.6% 9.8% 23.4% 26.2% 29.7% Source: ZenithOptimedia, Advertising Expenditure Forecasts, December 202 5

6 Online Advertising Expected to Continue to Outperform Online as % of Total Ad Spend 202E Online Advertising in Russia Has Consistently Outperformed Offline YoY Growth Rates 36% 56% 2% 2% 20% 9% 9% 8% 5% 40% 35% 5% 4% 5% 6% 9% UK France Germany Russia Spain US 3 China Italy Brazil India Total Ex-Online Online 4% Online as % of Total Ad Spend 205E Text-based Continues to Grow Faster than Display in Russia YoY Growth Rates of Text-based vs. Display Advertising 2 30% 28% 27% 27% 25% 23% 20% % 45% 45% 63% Text-based represented 69% of total online advertising in 202 7% 5% % 47% 3 UK Russia US Germany China France Spain Italy Brazil India Display Text-Based Source: ZenithOptimedia, Advertising Expenditure Forecasts, for 200 and 20, December 202; AKAR for Source: AKAR for 200, 20, Based on Total Major Media ad spend (including TV, Radio, Magazines, Newspapers, Outdoor, Internet and Cinema) 6

7 Yandex is the Consistent Search Leader in Russia Share of Searches Source: LiveInternet.ru, through April 30, 203. Search traffic reflects Russian users to Russian websites and includes desktop and mobile 25.8% 8.8%.3% 7 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-0 Apr-0 Jun-0 Aug-0 Oct-0 Dec-0 Feb- Apr- Jun- Aug- Oct- Dec- Feb-2 Apr-2 Jun-2 Aug-2 Oct-2 Dec-2 Feb-3 Apr-3 60% 2% 8% 6% 6.9%

8 Market Share Gains in all Major Browsers 00.0% Yandex is Gaining Share in All Major Browsers Yandex s Recent Search Innovations 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 30-Jan % 69.8% 68.6% 65.2% 59.3% 40.2% 32.7% 32.5% 29-Feb Mar-2 Overall 30-Apr-2 3-May-2 30-Jun-2 3-Jul-2 3-Aug-2 3.6% 30-Sep-2 3-Oct Nov-2 3-Dec-2 3-Jan-3 28-Feb % 73.7% 7.2% 70.6% 6.9% 47.6% 36.2% 3-Mar Personalized search, part of Yandex s new search platform, Kaliningrad. Based on users behaviour including search history, clicks on search results and language preferences, the search engine makes search suggestions and ranks results individually tailored for each user Social search complements search results with social networking content Intent-based search understands users needs and helps them to attain their goals. Based on proprietary Spectrum technology Partnership with Twitter - the full feed of all public tweets Freshness - search returns a group of links to the most recent web documents graphically separated from other search results. Based on proprietary Orange technology Facts and figures in suggestions - users now see the answers to their queries even before they finish typing Further improvements in the quality of search including freshness, response time and quality of answers to long-tail queries Source: LiveInternet.ru, weekly through April Google Chrome shown separately 3 Liveinternet data for Android is measured on a global basis, counting searches from non-russian countries. According to Yandex s internal statistics tool, Yandex s share in Android in Russia is 47% 4 From September 202 Liveinternet data for Safari demonstrated significant uptake in Yandex s share within this browser. We believe that some of the uptake is overstated due to technical issues 8

9 Yandex.Browser Yandex is Constantly Innovating Yandex.Browser Integrated, Fast, Cloud-Based and Safe 9% 8% 7% 7.4% Tabs Smartbox with search engines selection 6% 5% 4% 4.5% 2 3% 2% % 0% Yandex services 30 Sept'2 2 Oct' 2 Nov' 2 2 Dec' 2 23 Dec' 2 3 Jan' 3 3 Feb' 3 24 Feb' 3 7 Mar' 3 07 Apr' 4 28 Apr' 4 Share of searches through Yandex.Browser Audience share Tableau Integrated with Yandex services Turbo technology - faster browsing Smartbox gives users answers when they type queries in Cloud-based safe browsing technology Safe file downloads with Kaspersky Lab virus protection technology Share of searches processed through Yandex.Browser in Russia. Based on Liveinternet data 2 Liveinternet share in the number of users on the Russian Browser market 9

10 Recent Developments in Mobile Yandex.Store Yandex is Focused on Mobile One of the largest alternative Android app stores Over 50,000 apps Solution for OEMs - partnerships with 3Q, Explay, Oppo, PocketBook, Qumo, texet, and Wexler for mobile devices aimed at the Russian market Solution for service providers - white-label appstore getupps for Megafone Newly launched MTS phones with Yandex.Shell Yandex embedded search bar Partnerships with Russian operators Megafon s GetUpps appstore New Partnerships with Vendors Yandex.Shell Over M downloads since launch in March 202 International launch together with Yandex.Store Preinstalled on a operator-branded smartphones by MTS, Megafon and Avea in Turkey Nokia s WinPhone 8 in Russia Avea s Android smartphone in Turkey Yandex button Yandex embedded search bar Yandex is a default search engine on all WinPhone 8 devices in Russia, CIS, Turkey Source: Company data 0

11 Yandex.Market - # Comparison Shopping Destination in Russia Yandex.Market 5 MM users monthly 40% of Russian online shoppers use Yandex.Market 2 Aggregates about 2,000 e-shops with 45 MM offers 2 Re-platforming related to the introduction of Apparel allows Yandex to more easily add new verticals A New Category Comparison Shopping for Apparel Seasonal offers Yandex.Market Search Results Page Choice by parameters Vendors Ready made recipes Popular models Yandex. Guru Online shopping video guide New arrivals The most coveted goods Source: comscore, March Source: Company data, April 203 Related categories Selection of popular brands

12 Turkey - Our First International Market Turkey is a Large and Fast-growing Online Market Population of 80 MM Internet users (202): 36 MM (46% penetration) 2 Bn local webpages Online ad market (202E): $247 MM 2 Online ad penetration: 9% Projected to grow to $475 MM 2 in 205E 24% 202E-205E CAGR Yandex.Turkey Front Page Yandex is Gaining Momentum in Turkey 2% of Turkish search market 3 Brand recognition survey: 84% heard about Yandex By the end of Q4, our average daily visitors numbered around 940,000 people according to ComScore, which is a 0-fold increase from a year ago and 73% increase from September Turkey Launched Services News Cloud storage Web Search Video Images Maps Traffic News Yandex.Bar Mozilla Firefox Internet Explorer Opera Yandex. Internet Maps, traffic and panoramic street images Weather Services for webmasters Translate Weather Time Mail Mobile services & applications Metrica Webmaster Search for websites Yandex.XML Source: Euromonitor; FOM; InternetWorldStats.com; ZenithOptimedia - Advertising Expenditure Forecasts as of December 202; Internet user penetration based on total population (source: InternetWorldStats) 2 ZenithOptimeadia presents Display market only for Turkey. According to our estimates, contextual advertising market is equal to the display in Turkey 3 Souce: Yandex.Metrica, January 203 2

13 Financials

14 Financial Review Financial Summary 35,000 30,000 25,000 20,000 5,000 0,000 5,000 0 Revenues RUR MM 28,767 4,000 20,033 $ ,000 0,000 2,500 8,000 7,649 8,729 6,000 7,999 5,874 4,000 4,249 2, Q 202Q 203 Adjusted EBITDA 2 RUR MM 3,42 9,237 $ ,64 3,825 3,759 3,504 2,384 2, Q 202Q 203 0,000 8,000 6,000 4,000 2,000 RUR MM Adjusted Net Income 2 8,768 6,000 6,003 5,000 $ ,000 3,968 3,000 2,523 2,270 2,40,56,505 2,000, Q 202 Q 203 RUR MM 83, Capex 4 9% 7% % 7% 28% 4% 2,5 5,530 3, Q 202 Q 203 x% Capex as % of Revenue Revenues are recognized net of VAT, discounts and commissions, but gross of TAC 2 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 Translated using an exchange rate of RUR to $.00 as of Dec 3, 202. $ figures shown in charts expressed in millions 4 Figures have been restated to exclude Yandex.Money capex for all periods. Capex as % of Revenue excludes Yandex.Money from numerator and denominator $3 3 3% % 4

15 Financial Review Revenues Revenues and Contribution by Source RUR MM 35,000 30,000 25,000 28,767 2% 9% 7% 20,000 5,000 0,000 5,000-20,033 2% 0% 5% 2,500 2% 73% 0% 8,729 2% 7,649 3% 2% % 76% 2% 20% 4,249 2% 24% 66% 6% 62% 6% 65% Text-Based O&O Text-Based Yandex Ad Network Display Yandex.Money & Other 72% Revenues are recognized net of VAT, discounts and commissions, but gross of TAC; Items may not total 00% due to rounding 5

16 Financial Review Adjusted EBITDA Adjusted EBITDA (RUR MM) and Margin (%) 20,000 8,000 49% 57% 56% 6% 56% 5% 49% 54% 60% 54% 49% 54% 57% 57% 55% 52% 60% 6,000 42% 50% 49% 53% 49% 44% 42% 45% 5% 46% 4% 45% 47% 48% 46% 44% 40% 4,000 3,42 20% 2,000 0,000 9,237 0% 8,000 (20)% 6,000 4,000 2,000 99,448,59 2,206 6,64,79,94 2,335 3,269 2,377 3,070 3,440 4,255 3,504 (40)% (60)% 0 Q 200 Q2 200 Q3 200 Q Q 20 Q2 20 Q3 20 Q Q 202 Q2 202 Q3 202 Q Q 203 Adjusted EBITDA Adjusted EBITDA margin Adjusted EBITDA margin ex-tac (80)%. Adjusted EBITDA is EBITDA before share-based compensation. Adjusted EBITDA Margin means adjusted EBITDA divided by US GAAP revenues. Adjusted ex-tac EBITDA margin means 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 slides

17 Financial Review Adjusted Net Income Adjusted Net Income (RUR MM) and Margin (%) 4,000 2,000 0,000 29% 25% 37% 36% 4% 32% 3% 36% 36% 32% 33% 32% 34% 28% 28% 28% 40% 34% 35% 30% 3% 26% 37% 37% 40% 30% 3% 34% 37% 36% 30% 30% 8,768 40% 30% 20% 8,000 0% 6,000 6,003 0% 4,000 2, ,469 3,968,088,258,459 2,98,505 2,069 2,229 2,965 2,40 (0)% (20)% 0 Q 200Q2 200Q3 200Q Q 20Q2 20Q3 20Q Q 202Q2 202Q3 202Q Q 203 Adjusted Net Income Adjusted Net Income margin Adjusted Net Income margin ex-tac (30)%. 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 net income 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 measures to their most directly comparable US GAAP measures see slides

18 Financial Review Capex Capex and Capex/Revenue Ratio 0,000 RUR MM 33% 40% 9,000 25% 25% 25% 27% 28% 30% 8,000 7,000 6,000 9% 6% 7% 8% 5,530 3% 0% 2% % 4% % 20% 0% 5,000 0% 4,000 3,984-0% 3,000 2,000,000-2,5,708,733, ,2, Q 200Q2 200Q3 200Q Q 20Q2 20Q3 20Q Q 202Q2 202Q3 202Q Q % -30% -40% Capex Capex as % of Revenue Figures have been restated to exclude Yandex.Money capex for all periods. Capex as % of Revenue excludes Yandex.Money from numerator and denominator 8

19 Supplementary Materials

20 Reconciliation of Non-GAAP Financial Measures Reconciliation of Ex TAC Revenues to US GAAP Revenues In RUR millions Q'0 Q2'0 Q3'0 Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Total revenues 2,355 2,889 3,3 4,25 3,894 4,54 5,59 6,439 5,874 6,80 7,273 8,89 7,999 Less: traffic acquisition costs (TAC) , ,4,23,46,305 Ex TAC revenues 2,038 2,536 2,735 3,68 3,357 3,900 4,34 5,437 4,882 5,660 6,042 7,403 6,694 Reconciliation of Adjusted EBITDA to US GAAP Net Income In RUR millions Q'0 Q2'0 Q3'0 Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Net income 507,07 883,40 820,25,705 2,23,258,983 2,29 2,69 2,246 Add: depreciation and amortization Add: share based compensation (SBC) expense Add: expense for acquisition related contingent compensation Less: interest income (28) (39) (43) (46) (34) (36) (47) (05) (67) (234) (268) (333) (368) Add: other expense / (income) net 57 (43) (36) 2 24 (53) (47) (42) (26) Add: provision for income taxes Adjusted EBITDA 99,448,59 2,206,79,94 2,335 3,269 2,377 3,070 3,440 4,255 3,504 Reconciliation of Adjusted Net Income to US GAAP Net Income In RUR millions Q'0 Q2'0 Q3'0 Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Net income 507,07 883,40 820,25,705 2,23,258,983 2,29 2,69 2,246 Add: SBC expense Less: reduction in income tax attributable to SBC expense (3) (6) (4) () () () () (2) Add: expense for acquisition related contingent compensation Add: foreign exchange loss /(gain) 57 (43) (383) (6) 4 (52) 3 (7) (7) Less: reduction / (increase) in income tax attributable to foreign exchange loss /(gain) (2) 29 (4) () (56) (7) 77 (23) 0 (3) 4 Less: gain from sale of equity investments (234) Adjusted net income ,470,088,258,459 2,98,505 2,069 2,229 2,965 2,40 Figures may not add due to rounding 20

21 Reconciliation of Non-GAAP Financial Measures (cont d) Reconciliation of Ex TAC Revenues to US GAAP Revenues In RUR millions Total revenues 4,249 7,649 8,729 2,500 20,033 28,767 Less: traffic acquisition costs (TAC) 504,270,305,573 2,998 4,780 Ex TAC revenues 3,745 6,379 7,424 0,927 7,035 23,987 Reconciliation of Adjusted EBITDA to US GAAP Net Income In RUR millions Net income,520 2,432 2,00 3,87 5,773 8,223 Add: depreciation and amortization ,8,874 2,95 Add: share based compensation (SBC) expense Add: expense for acquisition related contingent compensation 36 Less: interest income (3) (86) (67) (56) (222) (,002) Add: other expense / (income) net 4 (208) 23 (24) (62) (8) Add: provision for income taxes ,86,545 2,35 Adjusted EBITDA 2,384 3,825 3,759 6,64 9,237 3,42 Reconciliation of Adjusted Net Income to US GAAP Net Income In RUR millions Net income,520 2,432 2,00 3,87 5,773 8,223 Add: SBC expense Less: reduction in income tax attributable to SBC expense (3) (4) Add: expense for acquisition related contingent compensation 36 Add: foreign exchange loss /(gain) 5 (65) 64 () (0) 57 Less: reduction / (increase) in income tax attributable to foreign exchange loss /(gain) () 6 (3) 2 5 () Less: gain from sale of equity investments (234) Adjusted net income,56 2,523 2,270 3,968 6,003 8,768 Figures may not add due to rounding 2

22 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 () Adjustment (2) Adjusted EBITDA Adjusted EBITDA Margin (3) Adjusted Ex TAC EBITDA Margin (4) Three months ended March 3, % % 48.6% Three months ended June 30, 200, % 43, % 57.% Three months ended September 30, % 636, % 55.5% Three months ended December 3, 200, % 796 2, % 6.0% Three months ended March 3, % 899,79 44.% 5.2% Three months ended June 30, 20, % 789,94 42.% 49.% Three months ended September 30, 20, % 630 2, % 53.8% Three months ended December 3, 20 2, %,46 3, % 60.% Three months ended March 3, 202, %,9 2, % 48.7% Three months ended June 30, 202, %,087 3, % 54.2% Three months ended September 30, 202 2,29 3.5%,49 3, % 56.9% Three months ended December 3, 202 2, %,564 4, % 57.5% Three months ended March 3, 203 2, %,258 3, % 52.3% Twelve months ended December 3, 200 3, % 2,347 6, % 56.4% Twelve months ended December 3, 20 5, % 3,464 9, % 54.2% Twelve months ended December 3, 202 8, % 4,99 3, % 54.8% () Net income margin is defined as net income divided by total revenues. (2) Adjusted to eliminate depreciation and amortization expense, SBC expense, interest income, other income/(expense), 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 US GAAP revenues, please see the table above. Reconciliation of Adjusted Net Income Margin and Adjusted Ex TAC Net Income Margin to US GAAP Net Income Margin In RUR millions US GAAP Net Income Net Income Margin () Adjustment (2) Adjusted Net Income Adjusted Net Income Margin (3) Adjusted Ex TAC Net Income Margin (4) Three months ended March 3, % % 28.7% Three months ended June 30, 200, % (82) % 36.9% Three months ended September 30, % % 35.8% Three months ended December 3, 200, % 60, % 40.6% Three months ended March 3, % 268, % 32.4% Three months ended June 30, 20, % 33, % 32.3% Three months ended September 30, 20, % (246), % 33.6% Three months ended December 3, 20 2, % 75 2,98 34.% 40.4% Three months ended March 3, 202, % 247, % 30.8% Three months ended June 30, 202, % 86 2, % 36.6% Three months ended September 30, 202 2,29 3.5% (62) 2, % 36.9% Three months ended December 3, 202 2, % 274 2, % 40.% Three months ended March 3, 203 2, % 64 2,40 30.% 36.0% Twelve months ended December 3, 200 3, % 5 3, % 36.3% Twelve months ended December 3, 20 5, % 230 6, % 35.2% Twelve months ended December 3, 202 8, % 545 8, % 36.6% () 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), expense related to SPB Software contingent compensation, gain from sale of equity investments and foreign exchange losses (as adjusted for the reduction in income tax attributable to the loss). 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, please see the table above. 22

23 Appendix Ownership Structure Shareholders Economic Ownership as of Dec 3, 202 Economic ownership as of Mar 3, Principal Shareholders 20.7% 4.6% Baring Vostok 6.0% 9.9% Tiger Global 4.7% 3 4.7% 3 Directors, Officers & Employees 2.8% 9.8% Arkady Volozh (CEO) 2.2% 0.5% Ilya Segalovich (CTO) 2.6% 2.5% Other Directors 2.% 2.% Other Officers & Employees 4.9% 4.7% Other Pre-IPO Shareholders 3.6% 3.3% Public Investors 53.9% 62.3% Total 00% 00% Figures may not add due to rounding 2 Ownership reflects secondary placement completed in March Based solely on the information as of December 3, 202 contained in Schedule 3-F filed by Tiger Global on 4 February

24 Financial Review Operational Metrics Growth in Paid Clicks and CPC 24% 3% 7% 93% 39% 29% 73% 67% 69% 68% 65% 60% 62% 6% 62% 57% 57% 55% 52% 5% 4% 43% 43% 43% 39% 40% 38% 37% 28% 29% 34% 47% 35% 28% 29% 20% 24% 26% 22% 26% 9% 8% 4% 2% 9% 2% 7% 3% 7% 8% 5% % 4% -9% -% -7% -5% -3% -6% -8% -8% -2% -4% -7% -% -7% -5% -7% Q 2009 Q Q Q Q 200 Q2 200 Q3 200 Q4 200 Q 20 Q2 20 Q3 20 Q4 20 Q 202 Q2 202 Q3 202 Q4 202 Q 203 Yandex Websites Contextual Revenue Y/Y Growth Ad Network Contextual Revenue Y/Y Growth Clicks Y/Y Growth CPC Y/Y Growth Lower growth rates in paid clicks reflects the fact that a full year has passed since we launched initiatives on our ad network that resulted in a significant increase in click through rates and the number of clicks on the ad network and since we added Rambler to our ad network. Additionally, growth rates during the four previous quarters benefited from our initiatives also launched in Q3 20 targeted at regional advertisers that resulted in many new lower cost clicks on our own search 24

25 Key Investment Highlights Traffic Acquisition Costs TAC Breakdown Partner TAC RUR MM RUR MM % 507 4% 4% % 6% 7% 7% 7% 6% 6% 88, ,23,4,46,305 Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3,200,000 5% % % 0 0% 5% 700 0% % % % 62% 63% 64% 64% 64% 64% 63% 63% 63% Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Partner TAC As % of Partner Revenue Distribution TAC RUR MM 7% 8% 8% 8% 8% 8% 8% 8% 8% 8% Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 60% 40% 20% 0% -20% 0% 8% 6% 4% 2% 0% 2% 4% 6% Distribution TAC Partner TAC Personnel TAC as % costs of Revenue as % of Revenue Distribution TAC As % of O&O Text-Based Revenue Items may not total due to rounding 25

26 Key Investment Highlights Headcount Evolution RUR MM Personnel Breakdown by GAAP Cost Category % 2% 2% 9% 26% 22% 9% 7% 24% 20% 8% 8% 2% ,860,948 37% 36% 53% 53% 2,68 36% 54% 2,385 36% 55% 2,677 37% 53% 3,00 36% 54% 3,63 35% 55% 3,32 3,34 35% 35% 56% 55% 3,607 3,474 35% 36% 55% 54% 3,76 36% 54% 3,972 35% 55% 0% 0% 30% 50% 70% 90% 0 0% 0% 0% 9% 0% 0% 0% 0% 0% 0% 0% 0% 0% Q'0 Q2'0 Q3'0 Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 0% Cost of Sales Product Development SG&A Personnel costs as % of Revenue Items may not total 00% due to rounding 26