Quarterly Supplementary Materials February 16, 2017 Revenue - PowerPoint PPT Presentation

Quarterly Supplementary Materials February 16, 2017

Revenue Structure Yandex ex Revenue ue Break akdown own 1 , , MM RUB, % 22,119 19 5% 19,293 93 18,094 94 18,040 40 4% 16,473 73 3% 4% 15,439 39 25% 14,667 67 4% 13,920 20 2% 2% 26% 26% 12,339 39 3% 26% 27% 2% 25% 24% 25% 25% 70% 75% 73% 70% 70% 73% 71% 72% 69% Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Advertising Network Online Ad Revenues Other Revenues Total Revenues 1 As online advertising formats continue to converge, starting from Q1 2016 we are no longer providing a breakdown of our online ad revenues into text-based and display revenues. However, we continue to separately present online advertising revenues from Yandex websites and revenues from our Ad Network. Items may not total 100% due to rounding

Operational Metrics 120% Growth h in Paid Clicks and CPC, % 100% 80% 68% 65% 61% 62% 60% 50% 52% 49% 51%47% 39% 35% 36% 34% 40% 28% 29% 29% 24% 26% 26% 22% 19% 19% 18% 18% 18% 12% 12% 15% 13% 12% 12% 20% 10% 20% 21% 17% 11% 14% 12% 12% 14% 10% 13% 0% 7% 8% 8% 8% 5% 5% 3% 3% 2% 1% 0% -1% -5% -7% -5% -7% -5% -7% -7% -20% -15% -13% -18% -40% -60% Clicks Y/Y Growth CPC Y/Y Growth

Traffic Acquisition Costs Partne ner r TAC as % o of Ad Networ ork k Revenu nue, , MM RUB, % 60.9% 61.2% 60.3% 59.3% 57.6% 56.3% 55.7% 55.5% 56.2% 3,101 2,778 2,669 2,641 2,495 2,333 2,102 2,113 1,866 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Partner TAC Partner TAC as % of Ad Network Revenue Distribu butio ion n TAC as % o of Yandex x Websites s Online e Ad Revenu nue, , MM RUB, % 9.5% 9.1% 9.0% 8.5% 8.2% 7.8% 7.6% 7.3% 7.1% 1,173 1,051 993 954 949 909 895 913 851 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Distribution TAC Distribution TAC as % of Yandex Websites Revenue 1 As online advertising formats continue to converge, starting from Q1 2016 we are no longer providing a breakdown of our online ad revenues into text-based and display revenues. However, we continue to separately present online advertising revenues from Yandex websites and revenues from our Ad Network. As a result, we now show Partner TAC as % of our Ad Network revenue, which includes revenues from text- based ad network and our display ad network , and distribution TAC as % of our online advertising revenues from text-based and display advertising on our owned and operated websites.

Headcount by Cost Category and Personnel Cost Evolution nt 1 by GAAP Cost Category Headco count ory 2 27% 24% 23% 21% 20% 20% 20% 20% 18% 6,271 5,909 5,616 5,603 5,559 5,464 5,463 5,458 5,412 34% 33% 33% 34% 32% 33% 32% 32% 32% 59% 59% 58% 60% 60% 60% 60% 61% 59% 8% 8% 8% 8% 8% 8% 8% 8% 7% Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Cost of Sales Product Development SG&A Personnel costs as % of Revenue 1 As of the end of the period 2 Items may not total 100% due to rounding

Capex, MM RUB 50% 39% 6,000 29% 30% 20% 16% 4,836 14% 14% 13% 5,000 9% 9% 10% 4,026 4,000 -10% 2,998 2,923 2,761 3,000 2,486 2,524 -30% 1,659 2,000 1,455 -50% 1,000 -70% - -90% Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Capex Capex as % of Revenue

Costs, MM RUB Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Cost of Sales (COS) TAC 3,095 2,717 3,022 3,282 3,720 3,390 3,554 3,732 4,274 COS ex-SBC, ex-TAC 880 953 919 995 1,034 1,065 1,096 1,136 1,314 SBC related to COS 32 43 41 41 43 49 46 50 48 Total Cost of Sales 4,007 3,713 3,982 4,318 4,797 4,504 4,696 4,918 5,636 Total COS as % of Revenue 27% 30% 29% 28% 27% 27% 26% 25% 25% Product Development (PD) PD ex-SBC 2,419 2,968 2,905 2,711 2,977 3,282 3,249 3,326 3,737 SBC related to PD 254 379 395 457 629 595 545 532 566 Total PD 2,673 3,347 3,300 3,168 3,606 3,877 3,794 3,858 4,303 PD as % of Revenue 18% 27% 24% 21% 20% 24% 21% 20% 19% SG&A SG&A expense ex-SBC 2,213 2,165 2,410 2,445 3,891 3,011 3,427 4,272 6,184 SBC related to SG&A 90 138 158 173 221 247 290 203 251 Total SG&A 2,303 2,303 2,568 2,618 4,112 3,258 3,717 4,475 6,435 SG&A as % fo Revenue 16% 19% 18% 17% 23% 20% 21% 23% 29% Depreciation & Amortization (D&A) 1,206 1,490 1,874 2,152 2,275 2,394 2,316 2,489 2,408 D&A as % of Revenue 8% 12% 13% 14% 13% 15% 13% 13% 11% Total Costs 10,189 10,853 11,724 12,256 15,366* 14,033 14,523 15,740 18,782 Total Costs as % of Revenue 69% 88% 84% 79% 85% 85% 81% 82% 85% Items may not total 100% due to rounding * Total costs in Q4 2015 include 576MM RUB of goodwill impairment related to Kinopoisk acquisition, reflecting more conservative projected free cash flows

Historical Information on Revenues and Adjusted EBITDA of Our Segments Quarterly data Annual data In RUB millions Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 2013 2014 2015 2016 Revenues: Search and Portal 11,620 13,107 14,505 16,673 15,147 16,532 17,482 20,095 37,039 47,920 55,905 69,256 E-commerce 671 730 827 1,172 1,043 1,069 1,200 1,406 2,810 2,889 3,400 4,718 Taxi 161 194 234 395 445 528 587 753 112 327 984 2,313 Classifieds 179 211 243 261 241 313 352 398 327 539 894 1,304 Experiments 99 94 106 142 185 153 210 282 179 337 441 830 Eliminations* (391) (416) (476) (549) (588) (555) (538) (815) (965) (1,245) (1,832) (2,496) 12,339 13,920 15,439 18,094 16,473 18,040 19,293 22,119 39,502 50,767 59,792 75,925 Total Revenues Quarterly data Annual data In RUB millions Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 2013 2014 2015 2016 Adjusted EBITDA: Search and Portal 3,585 4,897 6,041 7,128 5,911 6,927 7,484 8,123 16,136 20,417 21,651 28,445 E-commerce 393 411 436 486 380 325 386 329 2,071 1,873 1,726 1,420 Taxi 87 50 44 (19) 0 (153) (633) (1,300) 57 217 162 (2,086) Classifieds 10 67 83 (14) (6) 23 26 (97) 221 278 146 (54) Experiments (504) (608) (583) (1,021) (515) (360) (375) (354) (1,118) (1,733) (2,716) (1,604) Total adjusted 3,571 4,817 6,021 6,560 5,770 6,762 6,888 6,701 17,367 21,052 20,969 26,121 Search and Portal segment includes all our services offered in Russia, Ukraine, Belarus and Kazakhstan, other than those, described below; E-commerce segment includes our Yandex.Market service; Taxi segment includes our Yandex.Taxi service; Classifieds segment includes Auto.ru, Yandex.Realty, Yandex.Jobs and Yandex.Travel; Experiments segment includes Media Services (including Kinopoisk, Yandex.Music, Yandex.Radio, Yandex.Tickets, Yandex.Afisha and Yandex TV program), Yandex Data Factory, Discovery services, including Yandex Zen and Yandex Launcher international products, and Search and Portal in Turkey. Eliminations represent the elimination of transaction results between the reportable segments, primarily related to advertising.