Company Presentation. May 2018

Transcription

1 Company Presentation May 2018

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, our anticipated revenues and capital. 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 27, 2018, 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 18, 2018, and Yandex expressly disclaims any duty to update this information unless required by law. 2

3 Yandex Search Leader Leading Online is a Market Ad Platform Leader in Russia 56.6% search market share in Russia 1 ~20% Russian ad market share 2 1 April 2018, according to Yandex.Radar 2 Based on AKAR estimates of the Russian advertising market for the FY2017 ( market_size/id8180), adjusted for commissions Business Largest Internet 3 Company information for FY2017, using exchange rate of RUB to $1.00 as of December 31, 2017 Diversification Business Adjusted EBITDA is a non-gaap financial measure. For a reconciliation of this non-gaap financial measure to the most directly comparable US GAAP measure, see slides * Our E-commerce segment includes Yandex.Market service. On April 27, 2018 Yandex and Sberbank announced the completion of the formation of the joint venture based on the Yandex.Market platform, aimed at developing a leading B2C E-commerce ecosystem. The parties own equal stakes in the JV and we deconsolidate Yandex.Market starting April 27, 2018 Search and Portal Taxi E-commerce* Classifieds Media Services Experiments $1,633 MM Revenues 3 in 2017 (+24% YoY in RUB) $505 MM Adjusted EBITDA 3 in 2017 (+11% YoY in RUB) 3 from our consolidated financial results

4 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Yandex is the 65.0% Consistent Search Leader in Russia 60.0% 55.0% 58.4% 56.6% In Apr 18 search share across different platforms was: 50.0% 67.3% on desktop 47.6% on Android 45.0% 39.0% on ios In Apr 18 share of Yandex Browser was: 40.0% 39.5% 25.2% on desktop 35.0% 32.6% 19.4% overall, including mobile 30.0% 25.0% Source: Yandex.Radar 4

5 Yandex Revenues and Contribution by Source In Q we introduced the changes to the segment structure, please see slide 16 The quarterly data on the slide is provided in accordance with new segment structure, while the annual data is based on the new one Consolidated Revenue 1 Breakdown, MM RUB, % 39,502 2% 20% 50,767 1% 23% 59,792 3% 25% 75,925 4% 26% 94,054 24% 26,573 20,652 14% 6% 20% 25% 78% 75% 72% 70% 69% 70% 66% Q1'17 Q1'18 7% Revenue Breakdown by Segments 2, MM RUB, % 59,792 1% 50,767 1% 1% 2% 1% 39,502 6% 7% 1% 6% 94,054 2% 2% 5% 75,925 1% 5% 2% 3% 6% 26,573 20,652 3% 2% 12% 4% 5% 6% 94% 94% 93% 91% 89% 90% 84% Q1'17 Q1'18 1 Revenues are recognized net of VAT, discounts and commissions, but gross of TAC Total Revenues Other Search and Portal E-commerce 2 Segments do not total to 100% due to eliminations: intersegment transactions, primarily related to advertising, which are eliminated in the consolidation Ad Network Revenues Yandex Properties Online Ad Revenues Taxi Experiments Classifieds Media Services 5

6 Segment Results

7 Search and Portal Revenue, MM RUB, YoY Growth, % 130,000 23% 22% 21% 20% 19% 29% 17% 24% 22% 110,000 90,000 70,000 50,000 30,000 15,143 16,527 17,517 20,112 18,671 20,166 21,159 24,172 22,285 37,039 47,920 55,905 69,256 84, ,000 (10,000) Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' * Revenue Revenue growth YoY Adjusted EBITDA, MM RUB, and Adjusted EBITDA Margin, % In Q we introduced the changes to the segment structure, please see slide 16 The quarterly data on the slide is provided in accordance with the new segment structure, while the annual data for is based on the old segment structure and for 2017 provided in the new one 53,000 43,000 33,000 23,000 13,000 3, % 41.1% 42.0% 40.1% 42.3% 44.9% 42.2% 44.4% 46.5% 43.6% 42.6% 38.7% 41.1% 43.5% 36,630 20,417 21,651 28,445 16,136 5,606 6,795 7,356 8,061 7,901 9,057 8,936 10,736 10, % 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% *We do not show YoY growth rates of BUs in 2013, as we had not yet formed segments in 2012 (7,000) Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' Adjusted EBITDA Adjusted EBITDA margin -30.0% Items may not total due to rounding 7

8 E-commerce Revenue, MM RUB, YoY Growth, % 10,000 9,000 8,000 7,000 55% 46% 45% 20% 24% 9% -12% 3% -3% 3% 18% 39% 5% 80% 30% 6,000 5,000 4,000 3,000 2,000 1,043 1,069 1,200 1,406 1,295 1,168 1,060 1,445 1,255 2,810 2,889 3,400 4,718 4,968-20% -70% -120% 1, % Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' * Revenue Revenue growth YoY Our E-commerce segment includes Yandex.Market service. On April 27, 2018 Yandex and Sberbank announced the completion of the formation of the joint venture based on the Yandex.Market platform, aimed at developing a leading B2C E- commerce ecosystem. The parties own equal stakes in the JV and we deconsolidate Yandex.Market starting April 27, 2018 from our consolidated financial results Yandex.Market provides access to 160+ MM offers from 20,000+ online retailers *We do not show YoY growth rates of BUs in 2013, as we had not yet formed segments in 2012 Items may not total due to rounding Adjusted EBITDA, MM RUB, and Adjusted EBITDA Margin, % % 30% 32% 43% 38% 23% 21% 26% 74% 65% 51% 30% 32% -13% 2,071 1,873 1,726 1,598 1, Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' Adjusted EBITDA Adjusted EBITDA margin 50% 0% -50% -100% -150% -200% 8

9 Taxi Revenue, MM RUB, YoY Growth, % 177 cities with population over 100 thousand people and another 69 cities with population over 50 thousand people across Russia and neighboring countries as of March ,500 8,500 7,500 6,500 5,500 4,500 3,500 2,500 1, % 172% 151% 91% 75% 46% 96% , % 2, % 3, % 201% % 111% 2,313 4, % 0% -200% -400% -600% Number of rides grew 222% YoY in Q Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' * Revenue Revenue growth YoY -800% Taxi segment includes our ride sharing business, which since Feb 7, 2018 is represented by the combination of Yandex.Taxi and Uber (in Russia and neighboring countries) and Food Delivery business (including Yandex.EATs and UberEATs) Revenues are presented in accordance with US GAAP, whereby in cities where we have implemented commissions, minimum fare guarantees and discounts are netted against revenues *We do not show YoY growth rates of BUs in 2013, as we had not yet formed segments in 2012 Adjusted EBITDA, MM RUB, and Adjusted EBITDA Margin, % 2, ,000-4,000-6,000-8,000-10,000 0% -29% -108% -173% -160% -255% -275% -72% -55% 51% 66% 16% -90% -163% ,300-1,245-1,966-1,584-1,712-2,086-3,168-7,963 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' Adjusted EBITDA Adjusted EBITDA margin 0% -500% -1000% -1500% -2000% -2500% -3000% -3500% -4000% Items may not total due to rounding 9

10 Classifieds Revenue, MM RUB, YoY Growth, % 2,950 57% 49% 62% 75% 92% 65% 66% 46% 58% 2,450 2, ,950 1, , (50) -3.5 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' * Revenue Revenue growth YoY In Q we introduced the changes to the segment structure, please see slide 16 The quarterly data on the slide is provided in accordance with the new segment structure, while the annual data for is based on the old segment structure and for 2017 provided in the new one Our Classifieds segment includes: Auto.ru / Yandex.Realty / Yandex.Jobs *We do not show YoY growth rates of BUs in 2013, as we had not yet formed segments in 2012 Adjusted EBITDA, MM RUB, and Adjusted EBITDA Margin, % (100) (200) (300) (400) 68% 52% -2% 7% 5% 1% -4% 8% 10% 16% 278-4% 5% -26% -41% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' Adjusted EBITDA Adjusted EBITDA margin 50% 0% -50% -100% -150% -200% Items may not total due to rounding 10

11 Media Services Revenue, MM RUB, YoY Growth, % 87% 100% 82% 72% 73% 83% , Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' Revenue Revenue growth YoY Adjusted EBITDA, MM RUB, and Adjusted EBITDA Margin, % % -64% -57% -44% -62% -42% -36% -21% -23% -57% -37% 0% -50% 0-100% % % % Our Media Services segment includes: KinoPoisk / Yandex.Music / Yandex.Afisha / Yandex.TV program % -350% % Starting Q1 2018, Media Services were broken out from Experiments and now constitute a separate business unit Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1' Adjusted EBITDA Adjusted EBITDA margin Items may not total due to rounding 11

12 Zen Yandex Zen our proprietary algorithmic personalized newsfeed In Mar 18 DAU was ~11MM, annual gross revenue run-rate was > 4BN RUB Zen is available in Yandex s Search App, our Home Page, Yandex Browser and Yandex Launcher. Since Sep 17 Zen exists as a standalone app on Android In May 17 Zen launched a platform to content publishers In Oct 17 we launched the new publisher format, called Narrative Recently we have created new distribution channel widget Zen for publishers (links to Zen from partner sites) 12

13 Alice Hi there! Hi Alice Alice the first conversational intelligent assistant in the Russian market Where can I have breakfast? Implements the best Russian voice recognition technology and has advanced understanding of context I would recommend Double B, 18B Lev Tolstoy street. It is open from 9 am to 10 pm and it is open now. More information Assists users with finding information online, recommending places to eat, providing weather forecasts, and supplying directions Integrates Yandex services, such as Search, News, Weather, Music, Maps and Taxi Сall Show on the map Web-site The external skills platform for Alice, Yandex.Dialogs, is currently in beta and includes such skills as ordering pizza from Papa John s or choosing a vacancy on HeadHunter, and others How can I get where? It will take you 4 minutes to get to Double B by car, or 8 minutes by public transport, or 8 minutes on foot. Available in Russian in the Yandex Search app and Yandex.Browser, as well as in Yandex Browser on Windows 13

14 Consolidated Financials

15 Financial Summary Revenues, MM RUB 1 Adjusted EBITDA, MM RUB 2 $ 1,633 3 $ ,000 85,000 65,000 45,000 25,000 20,033 28,767 39,502 50,767 59,792 75,925 94,054 20,652 26,573 35,000 30,000 25,000 20,000 15,000 10,000 9,237 13,142 17,367 21,052 20,969 26,121 29,075 6,874 7,704 5,000 5,000 0 (15,000) Q1'17 Q1' Q1'17 Q1'18 Adjusted Net Income, MM RUB 3 Capex, MM RUS, as % of Revenues 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 6,003 8,768 12,140 13,751 12,179 $ ,116 15,359 3,749 4,009 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 28% 14% 12% 19% 22% 13% 13,045 9,679 9,625 5,530 3,984 4,936 13% 18% 4% $ ,389 3,865 1, Q1'17 Q1'18 1 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 see slides Translated using an exchange rate of RUR to $1.00 as of Dec 31, $ figures, shown in charts, expressed in millions Q1'17 Q1'18 15

16 Quarterly Financial Summary by Segment Old Segment Structure Revenues, MM RUB Q1'16 Q2'16 Q3'16 Q4'16 FY 16 Q1'17 Q2'17 Q3 17 Q4 17 FY 17 Search & Portal 15,147 16,532 17,482 20,095 69,256 18,656 20,135 21,117 24,067 83,975 E-commerce 1,043 1,069 1,200 1,406 4,718 1,295 1,168 1,060 1,445 4,968 Taxi , ,150 2,191 4,891 Classifieds , ,082 New Segment Structure Revenues, MM RUB Q1'16 Q2'16 Q3'16 Q4'16 FY 16 Q1'17 Q2'17 Q3 17 Q4 17 FY 17 Q1 18 Search & Portal 15,143 16,527 17,517 20,112 69,299 18,671 20,166 21,159 24,172 84,168 22,285 E-commerce 1,043 1,069 1,200 1,406 4,718 1,295 1,168 1,060 1,445 4,968 1,255 Taxi , ,150 2,191 4,891 3,116 Classifieds , , Media Services , Experiments ,658 Eliminations (588) (555) (538) (815) (2,496) (774) (777) (857) (1,112) (3,520) Total Revenues 16,473 18,040 19,293 22,119 75,925 20,652 22,104 23,438 27,860 94,054 Experiments Eliminations (542) (520) (525) (809) (2,396) (769) (774) (861) (1,184) (3,588) (1,392) Total Revenues 16,473 18,040 19,293 22,119 75,925 20,652 22,104 23,438 27,860 94,054 26,573 Adj. EBITDA, MM RUB Q1'16 Q2'16 Q3'16 Q4'16 FY 16 Q1'17 Q2'17 Q3 17 Q4 17 FY 17 Search & Portal 5,911 6,927 7,484 8,123 28,445 7,973 9,098 8,922 10,665 36,658 E-commerce , ,598 Taxi 0 (153) (633) (1,300) (2,086) (1,245) (1,966) (3,168) (1,584) (7,963) Classifieds (6) (97) (54) 4 (17) Adj. EBITDA, MM RUB Q1'16 Q2'16 Q3'16 Q4'16 FY 16 Q1'17 Q2'17 Q3 17 Q4 17 FY 17 Q1 18 Search & Portal 5,606 6,795 7,356 8,061 27,818 7,901 9,057 8,936 10,736 36,630 10,367 E-commerce , ,598 (162) Taxi 0 (153) (633) (1,300) (2,086) (1,245) (1,966) (3,168) (1,584) (7,963) (1,712) Classifieds (6) (102) (72) 3 (20) (287) Media Services (98) (80) (91) (103) (372) (150) (106) (104) (84) (444) (97) Experiments (515) (360) (375) (354) (1,604) (418) (347) (331) (230) (1,326) Total Adj. EBITDA Search and Portal segment includes all our services offered in Russia, Belarus and Kazakhstan (and, for periods prior to the imposition of sanctions on Yandex by the government of Ukraine in May 2017, all our services offered in Ukraine), other than those described below; E-commerce segment includes our Yandex.Market service; Taxi segment includes our Yandex.Taxi service and Food delivery business FoodFox acquired in December 2017; Classifieds segment includes Auto.ru, Yandex.Realty, Yandex.Jobs and Yandex.Travel; Experiments segment includes Media Services (including KinoPoisk, Yandex.Music, Yandex.Afisha and Yandex.TV program), Yandex Data Factory, Discovery services (including Yandex Zen and Yandex Launcher international revenues) and Search and Portal in Turkey. Eliminations represent the elimination of transactions between the reportable segments, primarily related to advertising. *The numbers may not total due to rounding 5,770 6,762 6,888 6,701 26,121 6,874 7,213 5,695 9,293 29,075 Experiments (113) (145) (146) (184) (587) (195) (197) (236) (215) (843) (405) Total Adj.EBITDA 5,770 6,762 6,888 6,701 26,121 6,874 7,213 5,695 9,293 29,075 7,704 In Q we introduced the following changes to our segments structure: Search and Portal segment (including Geolocation services) offers a broad range of services in Russia, Belarus and Kazakhstan (and, for periods prior to the imposition of sanctions on Yandex by the government of Ukraine in May 2017, all our services offered in Ukraine), other than those described below. Since Q our Search and Portal segment also includes Search and Portal in Turkey and Yandex Launcher, previously reported in Experiments and Yandex.Travel, previously reported in Classifieds. E-commerce segment includes our Yandex.Market service; Taxi segment includes our Taxi business (including Yandex.Taxi and Uber in Russia and neighboring countries) and Food Delivery business (including Yandex.EATs and UberEATs); Classifieds segment includes Auto.ru, Yandex.Realty and Yandex.Jobs; Media Services segment includes KinoPoisk, Yandex.Music, Yandex.Afisha and Yandex.TV program; Media Services were broken out from Experiments and now constitute a separate business unit; Experiments segment includes Zen, Yandex.Cloud, Yandex.Health, Yandex.Drive and Yandex Data Factory. Yandex.Cloud and Yandex.Health initiatives previously were a part of our Search and Portal segment. Yandex.Drive is our car-sharing service, launched in February Eliminations represent the elimination of transactions between the reportable segments, primarily related to advertising. 16 Previous periods are restated in accordance with the new segment approach.

17 Consolidated Adjusted EBITDA 1 Adjusted EBITDA, MM RUB, and Margin, % % 44% 50% 46% 45% 44% 47% 44% 38% 43% 41% 40% 30% 40% 38% 35% 50% % 35% 39% 36% 35% 35% 37% 36% 30% 34% 33% 33% 24% 33% 31% 29% 29,075 0% , ,969 (50)% ,571 4,817 6,021 6,560 5,770 6,762 6,888 6,701 6,874 7,213 5,695 9,293 7,704 (100)% 1 Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA margin ex-tac are non- Q1'15 Q2'15 Q3'15 Q4' Q1'16 Q2'16 Q3'16 Q4' Q1'17 Q2'17 Q3'17 Q4' Q1' (150)% GAAP financial measures. For a reconciliation of these non-gaap financial measures to their Adjusted EBITDA Adjusted EBITDA margin Adjusted EBITDA margin ex-tac most directly comparable US GAAP measures, see slides

18 Consolidated Adjusted Net Income 1 Adjusted Net Income, MM RUB, and Margin, % 40% 45,001 40,001 35,001 23% 18% 26% 20% 29% 23% 25% 26% 24% 20% 20% 19% 27% 22% 24% 20% 18% 15% 23% 22% 22% 19% 18% 18% 12% 10% 23% 19% 20% 18% 16% 15% 20% 0% 30,001 25,001 (20)% 20,001 15,001 12,179 14,116 15,359 (40)% 10,001 5,001 2,249 2,791 3,507 3,632 3,168 3,906 3,793 3,249 3,749 3,990 2,371 5,249 4,009 (60)% 1 Adjusted Net Income, Adjusted Net Income 1 (80)% margin and Adjusted Net Income margin ex- TAC are non-gaap financial measures. For Q1'15 Q2'15 Q3'15 Q4' Q1'16 Q2'16 Q3'16 Q4' Q1'17 Q2'17 Q3'17 Q4' Q1'18 a reconciliation of these non-gaap financial Adjusted Net Income Adjusted Net Income margin Adjusted Net Income margin ex-tac measures to their most directly comparable US GAAP measures, see slides

19 Capex Capex, MM RUB, and Capex/Revenue Ratio, % 24,100 39% 19,100 29% 16% 9% 22% 9% 14% 14% 13% 13% 19% 17% 9% 9% 13% 4% 40% 20% 0% 14,100 13,045 12,389-20% 9,625-40% 9,100 4,100 4,836 4,026 2,524 1,659 1,455 2,486 2,761 2,923 3,865 3,864 2,097 2,563 1,156-80% -60% (900) Q1'15 Q2'15 Q3'15 Q4' Q1'16 Q2'16 Q3'16 Q4' Q1'17 Q2'17 Q3'17 Q4' Q1'18-100% Capex Capex as % of Revenue 19

20 Traffic Acquisition Partner TAC, MM RUB, and Partner TAC as % of Ad Network Revenue, % Costs 7, % 61.2% 59.3% 57.6% 56.3% 55.7% 55.5% 56.2% 56.1% 58.3% 59.4% 58.1% 59.0% 75.0% 6, % 5,000 4,000 3,000 1,866 2,113 2,333 2,669 2,495 2,641 2,778 3,101 2,896 3,148 3,296 3,567 3, % 45.0% 35.0% 2, % 1, % - 5.0% Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Partner TAC Partner TAC as % of Ad Network Revenue Distribution TAC as % of Yandex Websites Online Ad Revenue, MM RUB, % 9.5% 9.0% 8.5% 8.2% 7.8% 7.3% 7.1% 7.6% 7.2% 6.9% 6.8% 6.5% 6.6% 11.0% 3, % 2, % 7.0% 2,000 1,500 1, , ,173 1,039 1,068 1,109 1,222 1, % 3.0% 1.0% -1.0% -3.0% % % Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Distribution TAC Distribution TAC as % of Yandex Websites Revenue 20

21 Headcount Evolution - Headcount 1 by GAAP Cost Category 2 Breakdown by GAAP Cost 20% 18% 23% 21% 20% 20% 23% 22% 21% 19% 23% Category 8,000 7,445 8,134 8,999 7,000 6,000 5,412 5,463 5,464 5,559 5,909 6,271 6,485 6,517 6,896 7,999 6,999 5,999 5,000 4,999 4,000 3,999 3,000 2,999 2,000 1,999 1, (1) Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 1 As of the end of the period 2 Items may not total 100% due to rounding XX% Personnel costs as % of Revenue Cost of Sales Product Development SG&A 21

22 Operational Metrics Growth in Paid Clicks and CPC 135% 131% 124% 117% 135% 115% 95% 104% 93% 94% 92% 82% 73% 75% 60% 62% 67% 69% 68% 65% 61% 62% 57% 57% 52% 51% 55% 50% 52% 47% 55% 49% 43% 43% 43% 41% 39% 34% 43% 38% 39% 40% 37% 37% 36% 29% 29% 33% 33% 35% 35% 37% 28% 29% 28% 30% 26% 27% 27% 27% 22% 17% 21% 35% 26% 35% 25% 24% 24% 24% 20% 26% 24% 19% 19% 18% 14% 20% 21% 22% 22% 19% 18% 19% 22% 14% 29% 16% 17% 12% 13% 9% 13% 13% 14% 11% 11% 20% 24% 26% 8% 10% 12% 12% 12% 15% 19% 18% 10% 12% 13% 4% 11% 14% 12% 12% 15% 12% 12% 14% 10% 7% 13% 7% 8% 8% 10% 9% 6% 9% 8% 5% 5% -5% -15%-13% -18%-7% -1% 1% 3% -5% 2% 3% 0% -8% -7% -5% -7% -5% -7% -5% -9% -11% -12%-14%-17% -16% 75% 55% 35% 15% -25% Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 115% 95% -25% Yandex properties revenues Ad network revenues CPC paid clicks *Starting from Q we are no longer providing a breakdown of our online ad revenues into text-based and display revenues. Therefore, Q1 16 revenue growth for this respective period represents growth rate of our online advertising revenues from Yandex websites, which include our text-based and display revenues, derived from Yandex Websites, and growth rate of online advertising revenues from our Ad Network, which include our text-based and display revenues, derived from Yandex Advertising Network. Data for periods prior to Q1 16, is consistent with what was presented previously and provides growth rates of text-based revenues from Yandex Websites and growth rates of text-based revenues from Ad Network 22

23 Ownership Structure Shareholders Economic Ownership as of March 31, 2018* Principal pre-ipo Shareholders, Directors, Officers and Employees 14.4% The total number of shares issued and outstanding of March 31, 2018 was 327,690,428, including: Arkady Volozh (CEO) 10.2% 289,805,769 Class A shares 37,884,658 Class B shares One Priority share Excluding 2,625,886 Class A shares held in treasury as a result of Yandex s share repurchase program Other Directors, Officers & Employees 4.1% Other pre-ipo Shareholders 0.8% Public Investors 84.7% Total 100% *Items may not total due to rounding 23

24 Supplementary Materials

25 NewCo: Creating a Regional Leader in Ridesharing Transaction On Feb 7, 2018 Yandex.Taxi and Uber completed combination of their ridesharing businesses in Russia, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan and Moldova into NewCo NewCo operates Food Delivery businesses Yandex.EATS as well as UberEATs, which further will be combined into Yandex.EATS NewCo $3.8BN post-money valuation at closing As of March 31, 2018, Yandex.Taxi had cash, cash equivalents and term deposits in total amount of $457.5MM* Structure 59.3% owned by Yandex 36.9% owned by Uber 3.8% owned by NewCo employees (on an FD basis) Tigran Khudaverdyan is the CEO of NewCo Combined Stats 62MM rides in Jan 18, up 77% from Jun 17 $206MM in gross bookings in Jan 18, up 54% from Jun 17 *At the exchange rate of RUB to $1.00 as of March 31, 2018 Four directors of the supervisory board are nominated by Yandex and three directors are nominated by Uber 25

26 Reconciliation of Non-GAAP Financial Measures 1 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q Reconciliation of Ex-TAC Revenues to US GAAP Revenues (RUR MM) Total revenues 13,057 14,667 12,339 13,920 15,439 18,094 16,473 18,040 19,293 22,119 20,652 22,104 23,438 27,860 26,573 12,500 20,033 28,767 39,502 50,767 59,792 75,925 94,054 Less: traffic acquisition costs (TAC) 2,762 3,095 2,717 3,022 3,282 3,720 3,390 3,554 3,732 4,274 3,935 4,216 4,405 4,789 4,317 1,573 2,998 4,780 7,850 11,076 12,741 14,950 17,345 Ex-TAC revenues 10,295 11,572 9,622 10,898 12,157 14,374 13,083 14,486 15,561 17,845 16,717 17,888 19,033 23,071 22,256 10,927 17,035 23,987 31,652 39,691 47,051 60,975 76,709 Reconciliation of Adjusted EBITDA to US GAAP Net Income (RUR MM) Net income 4,372 7,572 2, ,278 2,851 1,069 2,058 2,443 1, , ,500 1,851 3,817 5,773 8,223 13,474 17,020 9,679 6,783 8,656 Add: depreciation and amortization Add: share-based compensation expense Add: compensation expense related to contingent consideration 1,095 1,206 1,490 1,874 2,152 2,275 2,394 2,316 2,489 2,408 2,463 2,823 2,930 3,023 2,890 1,181 1,874 2,951 3,695 4,484 7,791 9,607 11, ,394 1, ,210 2,718 3,422 4, Add: goodwill impairment Less: interest income, net (224) (257) (484) (356) (415) (489) (523) (437) (351) (344) (481) (471) (506) (554) (487) (156) (222) (1,002) (1,717) (856) (1,744) (1,655) (2,012) Less: other income/(loss), net (1,077) (5,175) (833) 1,787 (2,076) (1,137) 1, ,154 2,255 (1,389) 626 (26) 400 (24) (62) (118) (2,159) (6,296) (2,259) 3,395 1,466 Add: provision for income taxes 1,418 2, ,396 1, ,054 1,243 1, , ,897 1,395 1,186 1,545 2,351 3,239 5,455 3,917 4,324 4,926 Add: operating losses resulting from sanctions in Ukraine Adjusted EBITDA 5,905 6,078 3,571 4,817 6,021 6,560 5,770 6,762 6,888 6,701 6,874 7,213 5,695 9,293 7,704 6,164 9,237 13,142 17,367 21,052 20,969 26,121 29,075 1 Figures may not add due to rounding 26

27 Reconciliation of Non-GAAP Financial Measures (continued) 1 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q Reconciliation of Adjusted Net Income to US GAAP Net Income (RUR MM) Net income 4,372 7,572 2, ,278 2,851 1,069 2,058 2,443 1, , ,500 1,851 3,817 5,773 8,223 13,474 17,020 9,679 6,783 8,656 Add: SBC expense ,394 1, ,210 2,718 3,422 4,193 Less: reduction in income tax attributable to SBC expense Add: compensation expense related to contingent consideration (5) (5) (9) (11) (10) (11) (14) (10) (12) - (12) (16) (18) (16) (20) - (13) (4) (9) (20) (41) (36) (62) Less: foreign exchange (gain)/loss (1,824) (4,707) (716) 1,869 (1,947) (1,109) 1, ,163 2,205 (1,273) (11) (101) 57 (139) (6,553) (1,903) 3,834 1,784 Add: increase/(reduction) in income tax attributable to foreign exchange (gain)/loss Add: impairment of investment in equity securities Less: reduction in income tax attributable to impairment of investment in equity securities (374) (260) (198) (83) (234) (431) 270 (121) (44) (86) 2 15 (11) 28 1, (775) (326) (175) (175) Less: gain from sale and deconsolidation of equity investments (234) (2,067) Add: goodwill impairment Less: (gain)/loss from repurchases of convertible debt Add: increases/(reduction) in income tax attributable to (gain)/loss from repurchases of convertible debt - (548) (110) (40) (93) (67) (53) (548) (310) (53) (1) (1) Add: amortization of debt discount Less: reduction in income tax attributable to amortization of debt discount Add: losses resulting from sanctions in Ukraine (46) (56) (65) (52) (57) (56) (66) (56) (56) (50) (43) (42) (43) (43) (43) (6) (190) (230) (228) (171) Adjusted net income 3,914 3,967 2,249 2,791 3,507 3,632 3,168 3,906 3,793 3,249 3,749 3,990 2,371 5,249 4,009 3,968 6,003 8,768 12,140 13,751 12,179 14,116 15,359 1 Figures may not add due to rounding 27

28 Reconciliation of Non-GAAP Financial Measures (continued) 1 US GAAP Actual Net Income Net Income Margin (1) Adjustment (2) Adjusted EBITDA Adjusted EBITDA Margin (3) Adjusted Ex-TAC EBITDA Margin (4) Reconciliation of Adjusted EBITDA Margin and Adjusted Ex-TAC EBITDA Margin to US GAAP Net Income Margin (RUR MM) Three months ended December 31, , % (1,494) 6, % 52.5% Three months ended March 31, , % 1,444 3, % 37.1% Three months ended June 30, % 4,394 4, % 44.2% Three months ended September 30, , % 1,743 6, % 49.5% Three months ended December 31, , % 3,709 6, % 45.6% Three months ended March 31, , % 4,701 5, % 44.1% Three months ended June 30, , % 4,704 6, % 46.7% Three months ended September 30, , % 4,445 6, % 44.3% Three months ended December 31, , % 5,488 6, % 37.6% Three months ended March 31, % 6,055 6, % 41.1% Three months ended June 30, , % 3,729 7, % 40.3% Three months ended September 30, % 4,842 5, % 29.9% Three months ended December 31, , % 5,793 9, % 40.3% Three months ended March 31, , % 5,853 7, % 34.6% Twelve months ended December 31, , % 2,347 6, % 56.4% Twelve months ended December 31, , % 3,464 9, % 54.2% Twelve months ended December 31, , % 4,919 13, % 54.8% Twelve months ended December 31, , % 3,893 17, % 54.9% Twelve months ended December 31, , % 4,032 21, % 53.0% Twelve months ended December 31, , % 11,290 20, % 44.6% Twelve months ended December 31, , % 19,338 26, % 42.8% Twelve months ended December 31, , % 20,419 29, % 37.9% (1) 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 contingent compensation, interest income, net, other income/loss, net, operating losses resulting from sanctions in Ukraine 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. 1 Figures may not add due to rounding 28

29 Reconciliation of Non-GAAP Financial Measures (continued) 1 US GAAP Actual Net Income Net Income Margin (1) Adjustment (2) Adjusted Net Income Adjusted Net Income Margin (3) Adjusted Ex-TAC Net Income Margin (4) Reconciliation of Adjusted Net Income Margin and Adjusted Ex-TAC Net Income Margin to US GAAP Net Income Margin (RUR MM) Three months ended December 31, , % (3,605) 3, % 34.3% Three months ended March 31, , % 122 2, % 23.4% Three months ended June 30, % 2,368 2, % 25.6% Three months ended September 30, , % (771) 3, % 28.8% Three months ended December 31, , % 781 3, % 25.3% Three months ended March 31, , % 2,099 3, % 24.2% Three months ended June 30, , % 1,848 3, % 27.0% Three months ended September 30, , % 1,350 3, % 24.4% Three months ended December 31, , % 2,036 3, % 18.2% Three months ended March 31, % 2,930 3, % 22.4% Three months ended June 30, , % 506 3, % 22.3% Three months ended September 30, % 1,518 2, % 12.5% Three months ended December 31, , % 1,749 5, % 22.8% Three months ended March 31, , % 2,158 4, % 18.0% Twelve months ended December 31, , % 151 3, % 36.3% Twelve months ended December 31, , % 230 6, % 35.2% Twelve months ended December 31, , % 545 8, % 36.6% Twelve months ended December 31, , % (1,334) 12, % 38.4% Twelve months ended December 31, , % (3,269) 13, % 34.6% Twelve months ended December 31, , % 2,500 12, % 25.9% Twelve months ended December 31, , % 7,333 14, % 23.2% Twelve months ended December 31, , % 6,703 15, % 20.0% (1) 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 contingent compensation, foreign exchange (gains)/losses as adjusted for the increase/reduction in income tax attributable to the (gains)/losses, impairment of investment in equity securities (as adjusted for reduction in income tax attributable to impairment), gain from sale and deconsolidation of equity investments, goodwill impairment, (gains)/losses from repurchases of convertible debt (as adjusted for the related increase/reduction in income tax), amortization of debt discount (as adjusted for the related reduction in income tax) and losses resulting from sanctions in Ukraine. 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. 1 Figures may not add due to rounding 29

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