Company Presentation. Search. September 2013

Transcription

1 Company Presentation Search September 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 Sept 6, 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 55 MM unique visitors per month in Russia 2 Leading Online Advertising Platform 300,000 advertisers in H % 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, Aug Source: comscore, July Source: Company Information, H Source: AKAR for H 203, 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 Spring 203; FOM Growth forecast as of March 20 2 Source: comscore, June 203 4

5 Russia Has a Very Attractive Advertising Market Russian Online Advertising to Grow at 25% CAGR 203E 205E Total 700 Russian Advertising Market in constant currencies (RUR Bn) E 204E 205E Total Ex-Online Online Advertising Online as % of Total Ad Market 0.8% 2.9% 6.6% 9.7% 22.6% 25.5% 29.0% Source: ZenithOptimedia, Advertising Expenditure Forecasts, June 203 5

6 Online Advertising Expected to Continue to Outperform Online as % of Total Ad Spend 202 Online Advertising in Russia Has Consistently Outperformed Offline YoY Growth Rates 37% 2% 2% 20% 9% 9% 9% 5% 5% 4% UK France Germany Russia Spain US 3 China Italy Brazil India 60% 50% 40% 30% 20% 0% 0% 40% 5% 6% 56% 35% 9% 8% E Total Ex-Online Online 28% Online as % of Total Ad Spend 205E Text-based Continues to Grow Faster than Display in Russia 45% YoY Growth Rates of Text-based vs. Display Advertising 2 32% 29% 28% 25% 25% 23% 9% 9% 5% % 28% 45% 45% 47% 63% Text-based represented 69% of total online advertising in UK Russia US Germany China France Spain Italy Brazil India Display Text-Based Source: ZenithOptimedia, Advertising Expenditure Forecasts, for 200 and 20, June 203; 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 60% 6.9% 26.0% 2% 8% 8.5% 6%.4% Jun-06 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 Jun-3 Aug-3 Source: LiveInternet.ru, through Aug 3, 203. Search traffic reflects Russian users to Russian websites and includes desktop and mobile 7

8 Market Share Gains in all Major Browsers 00.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 30-Jan-2 Yandex is Gaining Share in All Major Browsers 84.6% 69.8% 68.6% 65.2% 59.3% 40.2% 32.7% 32.5% 29-Feb Mar-2 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-3 3-Mar-3 30-Apr-3 3-May-3 30-Jun % 76.2% 73.5% 7.% 6.9% 48.3% 39.3% 3-Jul-3 2 Yandex s Recent Search Innovations Islands - a new search platform that groups results into information blocks and allows us for interactivity with third-party sites directly on the Yandex SERP through the use of APIs Personalized search, part of Yandex s search platform, Kaliningrad. Based on users behaviour, the search engine makes search suggestions and ranks results individually tailored for each user Intent-based search understands users needs and helps them to attain their goals. Based on proprietary Spectrum technology Facts and figures in suggestions - users now see the answers to their queries even before they finish typing Social search complements search results with social networking content 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 Constant improvements in the quality of search including freshness, response time and quality of answers to long-tail queries Overall Source: LiveInternet.ru, weekly through the week beginning Aug 26, Google Chrome shown separately 3 We have cautioned in the past that Liveinternet market share data for mobile operating systems, such as ios and 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 at least 47%-48% and might be as high as 50%. 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 3 8

9 Yandex.Browser Yandex is Constantly Innovating 0% 9% 8% 7% 6% 5% 4% 3% 2% % 0% 30 Sept'2 28 Oct' 2 25 Nov' 2 23 Dec' 2 20 Jan' 3 7 Feb' 3 7 Mar' 3 4 Apr' 4 2 May' 3 9 Jun'3 7 Jul' 3 4 Aug' 3 Sep' 3 Share of searches through Yandex.Browser Audience share Tabs 9.2% 5.5% 2 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 Mobile Yandex.Browser is launched Yandex.Browser Integrated, Fast, Cloud-Based and Safe Customizable background Synchronization between different computers Smartbox with search engines selection 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 Yandex.Browser Now for Smartphones and Tablets Get ready-made answers instead of habitual list of links Makes Mobile Search Easier Convenient Search on Tablets Need a photo or an article from Wikipedia - get to the right website instantly Search for filling station or a café see it right on a map Surf search results and specific websites simultaneously Allows to quickly switch between bookmarks 0

11 Yandex.Market - # Comparison Shopping Destination in Russia Over 3,000 e-shops, 50+MM offers User Generated Reviews E-shops show up in best offers based on the advertiser location and CPC bid Buy button leads you right to the product page of the correspondent e-shop

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 (202): $234 MM 2 Online ad penetration: 9% Projected to grow to $44 MM 2 in 205E 24% E CAGR Our new Islands platform was first launched in Turkey Yandex is Gaining Momentum in Turkey 2.5% of Turkish search market 3 Brand recognition survey: 84% heard about Yandex By the end of Q2 203, our average daily visitors numbered around.4 MM people according to ComScore, which is a 4-fold increase from a year ago Turkey Launched Services Maps, traffic and panoramic street images Mail Web Search Video Images Maps Traffic News Yandex.Bar Mozilla Firefox Internet Explorer Opera Yandex. Internet News Weather Timetable 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 June 203; 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: comscore, June 203 2

13 Financials

14 Financial Review Financial Summary Revenues Adjusted EBITDA 2 35,000 30,000 25,000 20,000 5,000 0,000 5, ,000 8,000 6,000 4,000 2,000 - RUR MM 4,249 7,649 8,729 2,500 20,033 28,767 8,768 2,675 7, H202 H203 RUR MM $947 3 Adjusted Net Income 2 4,000 2,000 0,000 8,000 6,000 4,000 2,000 6,000 5,530 6,003 $ ,468 5,000 3,984 3,968 4,000 3,574 2,523 3,000 2,5 $3 2,270 3,56 2,000,30,454, , H202 H H202 H203 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 0 RUR MM 2,384 3,825 3,759 6,64 9,237 3,42 $ ,447 7, H202 H203 RUR MM Capex 4 9% 7% % 7% 28% 4% % 9% 4

15 Financial Review Revenues Revenues and Contribution by Source RUR MM 35,000 30,000 28,767 25,000 20,000 5,000 0,000 5,000-9% 7% 20,033 0% 72% 7,98 5% 2,500 73% 2,675 0% 8% 8,729 2% 7% 4,249 7,649 % 76% 72% 2% 20% 24% 6% 66% 62% 6% 65% H 202 H 203 Text-Based O&O Text-Based Yandex Ad Network Display Yandex.Money & Other 8% 6% 73% Revenues are recognized net of VAT, discounts and commissions, but gross of TAC 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% 56% 60% 6,000 42% 50% 49% 53% 49% 44% 42% 45% 5% 46% 4% 45% 47% 48% 46% 44% 47% 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 4,303 (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 Q2 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% 32% 36% 3% 4% 36% 36% 32% 33% 32% 34% 28% 28% 28% 40% 34% 35% 30% 3% 26% 37% 37% 30% 3% 40% 34% 37% 36% 30% 30% 8,768 40% 33% 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, (0)% (20)% 0 Q 200Q2 200Q3 200Q Q 20Q2 20Q3 20Q Q 202Q2 202Q3 202Q Q 203Q2 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% % 7% 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 203Q % -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 Q2'3 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 9,99 Less: traffic acquisition costs (TAC) , ,4,23,46,305,465 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 7,734 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 Q2'3 Net income 507,07 883,40 820,25,705 2,23,258,983 2,29 2,69 2,246 2,95 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) (452) Add: other expense / (income) net 57 (43) (36) 2 24 (53) (47) (42) (26) (7) 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 4,303 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 Q2'3 Net income 507,07 883,40 820,25,705 2,23,258,983 2,29 2,69 2,246 2,95 Add: SBC expense Less: reduction in income tax attributable to SBC expense (3) (6) (4) () () () () (2) (2) Add: expense for acquisition-related contingent compensation Add: foreign exchange loss /(gain) 57 (43) (383) (6) 4 (52) 3 (7) (7) (35) Less: reduction / (increase) in income tax attributable to foreign exchange loss /(gain) (2) 29 (4) () (56) (7) 77 (23) 0 (3) 4 7 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 3,058 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 H'2 H' Total revenues 2,675 7,98 4,249 7,649 8,729 2,500 20,033 28,767 Less: traffic acquisition costs (TAC) 2,33 2, ,270,305,573 2,998 4,780 Ex-TAC revenues 0,542 4,428 3,745 6,379 7,424 0,927 7,035 23,987 Reconciliation of Adjusted EBITDA to US GAAP Net Income In RUR millions H'2 H' Net income 3,24 5,6,520 2,432 2,00 3,87 5,773 8,223 Add: depreciation and amortization,357, ,8,874 2,95 Add: share-based compensation (SBC) expense Add: expense for acquisition-related contingent compensation Less: interest income (40) (820) (3) (86) (67) (56) (222) (,002) Add: other expense / (income) net 7 (43) 4 (208) 23 (24) (62) (8) Add: provision for income taxes 893, ,86,545 2,35 Adjusted EBITDA 5,447 7,807 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 H'2 H' Net income 3,24 5,6,520 2,432 2,00 3,87 5,773 8,223 Add: SBC expense Less: reduction in income tax attributable to SBC expense (2) (4) (3) (4) Add: expense for acquisition-related contingent compensation Add: foreign exchange loss /(gain) 62 (42) 5 (65) 64 () (0) 57 Less: reduction / (increase) in income tax attributable to foreign exchange loss /(gain) (3) 8 () 6 (3) 2 5 () Less: gain from sale of equity investments -- (234) Adjusted net income 3,574 5,468,56 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% Three months ended June 30, 203 2,95 3.7%,388 4, % 55.6% 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, expense related to SPB Software contingent compensation, interest income, 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 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% Three months ended June 30, 203 2,95 3.7% 43 3, % 39.5% 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 depreciation and amortisation expense, SBC expense, expense related to SPB Software contingent compensation, gain from sale of equity investments and foreign exchange losses interest income, other (expense)/income, net, and provision for income taxes. 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 Aug 3, 203 Principal pre-ipo Shareholder, Directors, Officers and Employees 23.2% Baring Vostok 7.0% Arkady Volozh (CEO) 0.6% 2 Other Directors.0% Other Officers & Employees 4.6% Other Pre-IPO Shareholders 5.9% 3 Public Investors 70.9% Total 00%. Figures may not add due to rounding 2. Reflects decreases in the number of shares outstanding as a result of the repurchase of shares by Yandex NV pursuant to the share buy-back program announced in March 203. Repurchased shares are held in treasury pending reissuance pursuant to equity incentive awards. 3. Ilya Segalovich passed away on July 27, 203. All of his Class B shares were automatically converted into Class A shares upon his death and are now included with other pre-ipo shareholders 23

24 Financial Review Operational Metrics Growth in Paid Clicks and CPC 24% 3% 7% 93% 39% 29% 9% 28% 29% 4% 60% 62% 52% 34% 29% 22% 20% 24% 2% 3% 9% 7% 73% 67% 69% 68% 65% 6% 62% 57% 57% 5% 38% 47% 43% 43% 43% 26% 2% 7% 8% 55% 4% 39% 40% 35% 37% 37% 28% 29% 26% 8% 5% % 4% 5% -% -9% -% -7% -8% -7% -5% -7% -2% -5% -3% -6% -4% -7% -8% 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 Q2 203 Yandex Websites Contextual Revenue Y/Y Growth Ad Network Contextual Revenue Y/Y Growth Clicks Y/Y Growth CPC Y/Y Growth 24

25 Key Investment Highlights Traffic Acquisition Costs TAC Breakdown Partner TAC RUR MM 4% 4% % 88 7% 7% 7% 6%,23,4, % 6% 6%,200 6%,000 6% 800, %, , % 0 0% 8% 750 6% 550 4% 350 2% 50 RUR MM 62% 63% 64% 64% 64% 64% 63% 63% 63% 63% Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Q2'3 Partner TAC RUR MM As % of Partner Revenue Distribution TAC 8% 8% 8% 8% 8% 8% 8% 8% 8% 9% % 40% 20% 0% -20% 9% 4% -% 0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Q2'3 0% -50 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Q2'3-6% Distribution TAC Partner TAC Personnel TAC as % costs of Revenue as % of Revenue Distribution TAC As % of O&O Text-Based Revenue 25

26 Key Investment Highlights Headcount Evolution Personnel Breakdown by GAAP Cost Category RUR MM % 2% 2% 9% 26% 22% 9% 7% 24% 20% 8% 8% 2% 20% 4,298 0% ,860 37% 53%,948 36% 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% 3,474 3,607 35% 36% 55% 54% 3,76 36% 54% 3,972 35% 55% 36% 55% -0% -30% -50% -70% -90% 0 0% 0% 0% 9% 0% 0% 0% 0% 0% 0% 0% 0% 0% 9% Q'0 Q2'0 Q3'0 Q4'0 Q' Q2' Q3' Q4' Q'2 Q2'2 Q3'2 Q4'2 Q'3 Q2'3-0% Cost of Sales Product Development SG&A Personnel costs as % of Revenue Items may not total 00% due to rounding 26

27 Islands New Search Platform Ready-made solutions provided in collaboration with publishers Online Registration or Doctor Appointment: Do It in Just One Click Encyclopaedic Information All You Need at Fingertips 27