The internet in today’s Russia: key facts and figures Internet users vs total population by country Russian internet self-identification: RUNET Audiences growth per device Internet penetration in Russia by age Internet penetration in Russia by region Multi-device and multi-screens Devices Russians use to access the internet Time online Russia’s Mobile Market Mobile activities Mobile Data and Device Metrics in Russia Mobile ad Spending in Russia Russia’s Advertising Market What will the Russia’s ad market look like? Most popular type of online advertising Growth in segments of the digital market Expected in Russian Ad Market Russian E-commerce Market Online shoppers in Russia (% of population) e-Commerce market in Russia Cross-border e-Commerce Cross-border trade in Russia (import) Parcels sent from online stores outside Russia Distribution of local and cross-border markets by product categories Russian spending in foreign online stores by country Cost of purchases in foreign online stores Yandex№1 in Russia Yandex's audience in Russia Yandex’s presence outside Russia Yandex is far more than a search engine Yandex reach and popularity

2. Russia is too large
for a helicopter view

3. 7 500 km
Area
17 125 191 km2
Population
146 544 710
Internet really matters when
distances are this huge

4. INTERNET
INRUSSIA

5. The internet in
today’s Russia: key
facts and figures

6. Source: Internet World Stats, Europe, June 2017
Internet users vs total population
by country, millions
143
81
66 65
80
60
46
39
17
44
Russia Germany UK France Turkey Italy Spain Poland Netherlands Ukraine
6
population, million
internet users, %
76
8794
89
70 87 87
73
95 52

7. Source: Web Index, Russia 0+, April– September 2017 Monthly reach
20
40
60
80
04.2015-09.2015 08.2015-01.2016 12.2015-05.2016 04.2016-09.2016 02.2017-09.2017
The internet as a whole
Mobile
Mobile users only
Russian internet self-identification: RUNET
+2 %
+9 %
+24%
per year
per year
per year
08.2016-01.2017

8. Mobile audiences
are growing
the fastest
Smartphone Desktop Smart TV
10%
52%
57%
Source: Web Index, Russia 0+, April – September 2017 Monthly reach
-5%
+9%
+11%

9. 5%
5% 6%
9%
14%
18%
25%
32%
39%
45%
50%
53%
57%
60%
9%
10%
14% 15%
22%
27%
33%
41%
48%
54%
59%
63% 64%
67%
12%
15%
19% 20%
26%
32%
38%
45%
51%
57%
62%
66%
69% 70%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
daily audience
weekly audience
monthly audience
Internet penetration, % of overall population of Russia 18+
3 in 4 Russians are already active internet users
70.4 million
daily audience
81.8 million
monthly audience
Source: FOM, October 2017

10. Source: Mediascope, Web Index, May – October 2017 Monthly Reach
Internet penetration in Russia by age
93% 96% 94%
88%
64%
52%
12-17 18-24 25-34 35-44 45-54 55-64

11. 70%
97%
46%
95%
13%
69%
2007
2017
Source: Mediascope, Web Index, 12+, February – July 2017
Russian internet penetration by age
12-24 25-44 45+

12. Source: FOM, Internet in Russia, Age 18+, May 2017
Internet penetration in Russia by region
Caucasus
70%
71%
Centre
Volga
67%
NorthWest
78%
71%
Urals
Siberia
69%
Far East
67%

13. Multi-device and multi-screens
2007
51% users at work and 72%
users at home
share a computer with someone else
1,5+ people 1 device 1 person
1 person uses 2-3
devices on average
14 unique users
2017
Source: TNS Web Index, Moscow, 12+, Monthly reach, growth from Dec ’07–Feb ’08 to Dec ’06–Feb ’07, among Russian internet users, 100k+, 12+ years old, Monthly reach, Dec ’07 – Feb ’08, %
internet users at work/home TNS Web Index, Russia 100k+, 12+, Monthly reach, %, Dec ’15 – Feb ’16, growth from Dec ’15 – Feb ’16 to Dec ’14 - Feb ’15, average number of device types for internet
access per user, Dec ’15 – Feb ’16, and Jan – Mar ’2017 for 0+

14. Source: Mediascope, Web Index, September 2016 – September 2017
Smartphone Tablet Smart TV
by Device, (% of Monthly Reach, aged 0+)
Devices Russians use to access the internet
Desktop, laptop
57% 35% 22% 10%52% 51% 19% 14%
2016 2017

15. 0
40
80
120
160
25-34 35-64
10
13
12
11
36
61
73
48
62637164
mobile web
mobile app
desktop
12-64 12-24
Source: WEB-Index, Moscow and Saint Petersburg, February 2017
Time online
123 min
Average time (in minutes) spent on the internet per 24-hour period,
by age group
137 min
108 min
156 min

16. Russia’s
Mobile
Market

17. Mobile audiences
are growing
the fastest
Smartphone Desktop Smart TV
10%
52%
57%
Source: Web Index, Russia 0+, April – September 2017 Monthly reach
-5%
+9%
+11%

18. Source: GlobalWebIndex, Q3&Q4 2016. Based on a survey of internet users aged 16-64. Figures represent percentage of the total population.
Mobile activities
social media
apps
43%
watching
videos on
mobile
67%
playing
games on
mobile
45%
mobile location-
based search
37%
mobile
banking
26%

19. 2013 2014 2015 2016 2017 2018 2019 2020 2021
93,691,688,8
85,180,2
74,1
66,9
45,3
34,4
Source: Statista, Smartphone users in Russia 2015-2021
Expected number of smartphone
owners, in millions
By 2021, 76% of Russians will own a smartphone

20. Source: Cisco Visual Networking Index (VNI): Global Mobile Data Traffic Forecast Update, Russia, 2015-2020, 2016
Mobile Data and Device Metrics in Russia
Smartphones
in use
Mobile Internet
users
21.
4M
34.
8M
Connected
tablets in use
116.2M
186.
2M 53
%
63
%
2015 2015 20152020 2020 2020

21. Source: eMarketer, March 2017
120
75
53
32 32 21 15
200
130
88
50
27 22 20
2014 2015 2016 2017 2018 2019 2020
Mobile ad Spending in Russia rising faster than
worldwide
Mobile ad spending in %
Worldwide
Russia

22. Source: eMarketer, March 2017
10
30
41
47
53
60
66
2015 2016 2017 2018 2019 2020 2021
Mobile ad spend in Russia
113
259
488
732
929
1134
1360
2014 2015 2016 2017 2018 2019 2020
Mobile internet ad spending in Russia,
in % of total digital ad spending
Mobile internet ad spending,
in millions $

23. Russia’s
Advertising
Market

24. What will the Russia’s ad market look like?
-
100,000
200,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Volume of ad market segments over time, billions RUR
Source: ZenithOptimedia, November 2017
TV
Internet
Outdoor
Press
Radio
Other

25. Source: ZenithOptimedia, December 2016
41%
33%
20%
6% 0% 0%
5%
42%
11%
4%
1%
38%
Press TV Outdoor Radio Cinema/Indoor Internet
Radical shifts in Russian advertising market 2000-
2017
2000
2017

26. 150.9 bln
rubles
136.0 bln
rubles
Source: RACA, IAB Russia, March 2017
15.1 bln
rubles
19.7 bln
rubles
38.3 bln
rubles
Russia’s advertising market 2016
4%
5%
11%
38%
42%
Radio
Press
Outdoor
Internet
TV
360bln
rub
TOTAL

27. +6 %
-16 %
+6 %
+21 %
+10 %
Source: RACA, IAB Russia, March 2017
Internet is the growth driver of the advertising
market
compared
to 2015
TV
Internet
Outdoor
Press
Radio %
It grew by
21

28. +2%
-10%
+9 %
+23%
+12%
Source: RACA, IAB Russia, November 2017
Internet is the growth driver of the advertising
market
Compared to Jan
– Sep 2016
TV
Internet
Outdoor
Press
Radio %
It grew by
23
January – September 2017

29. Source: RACA, IAB Russia, November 2017
Russia’s advertising market 2017:
Revenue of online ad. reached TV for the first time
115-116 bln
rubles
Radio
Press
Outdoor
Internet
TV
287bln
rub
Jan–Sep
2017
116-117 bln
rubles
10.5 bln
rubles
12.6 bln
rubles
31.3 bln
rubles

30. Paid search is the
most popular type of
online advertising
Source: ZenithOptimedia, March 2017
2008 2016
23 %
42 %
77 %
58 %
Search
Banners

31. FY2015 FY2016
6,6
5,6 21,2
19,1
49,5
36,6
58,750,7
Classified
Video
Banners (CPM)
CPx
Search
Source: IAB Russian Ad Market, FY2016
Includes revenue from sites and technology sellers without VAT
Growth in all segments of the digital market
Performance tools are the lion’s share of
advertisers’ investments
+16%
+35%
+11%
+19%
25108.2 B
136.0 B
Performance
+29%
Branding
+13%
Russian digital advertising market
(billions of rubles)

32. Formation of unified
ad markets by format
Unified planning,
purchasing, and
management
of ad placements
independent
of delivery method
Continuously increasing
number of activities
linked with
real sales KPIs
Integration
of online and online
data and behavior
What will be expected in Russian Ad Market

33. Russian
E-commerce
Market

34. Source: eMarketer, March 2017
Online shoppers in Russia (% of population)
2014 2015 2016 2017 2018 2019 2020
32,531,630,729,828,8
27,4
25

35. 2013 2014 2015 2016 2017F
1 150
920
760713
544
Billions of RUB
e-Commerce market in Russia
Source: AICT, July 2017
+31%
+7%
+21%
498
1H2017407
1H2016
+22%

36. Cross-border
e-Commerce
H1 2017
Source: AICT, July 2017
Cross-border e-Commerce
Market, GMV, 1H2017
$1.97bblnn
+34% YoY
152mln
Number of parcels from cross-
border stores,1H2017
+49% YoY

37. 2013 2014 2015 2016 2017F
420
301,8
219,2208,6
134
Cross-border trade in Russia (import)
Source: AICT, Russian Post, July 2017
+55.2%
+5.1%
+37%
Billions of RUB
178
1H2017
133
1H2016
+34%

38. 2013 2014 2015 2016 2017F
400
135
78
35
Parcels sent from online stores outside Russia
Source : AICT, Russian Post, July 2017
+122%
+73%
+73%
Billions of parcels
233
152
1H2017
102
1H2016
+49%

39. 11%
Household electronics
Clothing
Shoes
Automotive parts & acc.
Cosmetics
Home and garden
Other
3%Sports goods
5%
6%
7%
13 %
25 %
32%
Most popular product categories for
cross-border shopping:
Source: TNS, 2016, Yandex.Market, 2016, AICT, July 2017
Low price
Unique products
Wide assortment
Discounts
Better quality
Fast delivery
0 0,2 0,4 0,6 0,8
For fun 6%
7%
9%
21%
32%
34%
73%
Reasons for cross-border
purchases:
Cross-border e-Commerce, 1H2017

40. (basedonamountspent)
Miscellaneous
Distribution of local and cross-border markets by product
categories (based on amount spent)
35%
28%
22%
2%
3%
5%
2%1%1%
Local market 13%
32%
25%
11%
7% 6%
3%
3%
Cross-border
market
Accessories and gifts
Pet supplies
Office equipment
Construction materials
Decorations
Food and beverages
Books
Other
Source: AICT, July 2017
20%
Household appliances and
electronics
32%
Clothing
and footwear
26%
Automotive parts and
accessories
2%
Perfumes
and cosmetics
3%
Household items
5%
Sporting goods
2%
Food
1%
Jewellery
1%
Miscellaneous
11%
Household
appliances
and electronics
32%
Sporting goods
3%
Clothing
25%
Footwear
13%
Automotive parts and
accessories
7%
Perfumes
and cosmetics
6% 3%
Household goods

41. Russian spending in foreign online stores by
country
Source: AICT, July 2017
90%
2%
4%
4%
Distribution
of parcels
by country
USA
2%
EU
4%
Other
4%
China
90%
52%
12%
23%
13%
Distribution of Russian
spending by country
China
52%
USA
12%
EU
23%
Other
13%

42. Cost of purchases in foreign online stores
Source: AICT, July 2017
65%
21%
11%
3%
1%0%
Less than
€22
64.7%
€22 - €50
20.8%
€50 - €150
10.5%
€150 - €500
2.7%
€500 - €1000
0.9%
More than
€1000
0,4%
90 MLN
OVER
TRANSACTIONS

43. Yandex
№1 in Russia

44. Our mission
Help people discover new opportunities in their
lives.

45. 20.7
20.3
19.4
19.2
18.2
Yandex
Google
Vkontakte
Youtube
Mail.Ru
78,8%
77,2%
73,1%
71,2%
69,2%
Source: WEB-Index, Russia 700k+ Top5 Desktop&Mobile, July 2017, 12-64 age, Monthly Reach
Russia 700k+, 12-64, February 2017, Monthly Reach, % and million people
Yandex has the largest audience in Russia

46. Yandex's audience in Russia
88.0%
OVER
of internet
users

47. Sourse: LiveInternet (by search traffic), December 2017
Yandex is the unchallenged leader in Search
53.3%
Yandex
42,9%
Google
3,5%
Mail.ru

48. Belarus
34.2%
Kazakhstan
20.0%
Turkey
2.2%
Source:Yandex.Radar, December, 2017
Share of search
market
Share of search
marketShare of search
market
Yandex’s presence outside Russia

49. TV listings #1Music #1
Yandex is far more than a search engine
News #1
Search #1
Mail #2
Maps #1 Weather #2 Traffic #1

50. more than just a
search engine
Flights
SEARCH PORTAL BUSINESS UNITS EXPERIMENTS
Browser Realty Travels Trains Parking Traffic Health
Maps Navi Transport Metro
Zen Launcher Turkey YDF
Kinopoisk Afisha Music TV Program
Disk Mail Auto.ru Jobs
Search Ad Tech Taxi Market

51. Yandex home page most popular digital resource in
Russian internet
Top5 sites in Russian Internet, audience in million users, daily average
6,400
4,000
4,800
6,300
8,100
9,600
8,600
8,200
6,700
5,900
4,700
7,700
6,200
5,700
4,100
Yandex
Google
Vkontakte
Youtube
Mail.ru
desktop only desktop + mobile mobile only
Source: Mediascope Web Index, Russia 700k+, July 2017, aged 12-64, Monthly Reach, millions of users. Google data w/o Google.Play, Yandex
data w/o Yandex. Store

52. Yandex draws huge daily audiences on desktop and
mobile alike
Top5, Cities 700k+ // Comparison of Desktop and Mobile Audiences
20.8
20.4
19.4
19.0
18.9
Yandex
Google
VK
Youtube.com
Mail.ru
% of
population
Monthly Reach, in million
79,3
77,8
73,8
72,4
71,9 7.5
8.8
10.3
11.9
12.4
Youtube
Mail.Ru
Google
VK
Yandex 47,4
Average Daily Reach, in million % of
population
45,4
39,2
33,7
28,6
Source: Mediascope Web Index, Russia 700k+, April 2017, aged 12-64, Monthly Reach, millions of users. Google data w/o Google.Play,
Yandex data w/o Yandex. Store

53. CERN IRON&STEEL
WORKS
RAY TERRA
Yandex: solving problems inside and
outside the internet by applying its
technology for the benefit of society

54. Gazprom
Media
Source: Yandex, Gazprom Bank, 2017
Yandex generates more ad revenue than
the biggest Russian media holding with the
most popular TV channel
Yandex in Comparison
60.9bn
RUR
76.2
bn
RUR
Yandex

55. Size of Russian advertising
market in 2016
Yandex advertising
revenue in 2016
Source: RACA,2016 Yandex official financial reporting
for 2016
136 76 60
Yandex: #1 advertising partner in Russia
Yandex’s share of
digital advertising
market
Billion RUB Billion RUB
%

56. Yandex reach and popularity allows for effective
advertising KPIs and campaign planning
Yandex
(31 projects) desktop
Monthly reach
People, thousands 50 102.2
% of population 48.6%
Monthly frequency Avg. number of pages per person 191.3
Average weekly reach
People, thousands 41 802.9
% of population 40.5%
Average weekly frequency Avg. number of pages per person 51.5
Average daily reach
People, thousands 26 256.3
% of population 25.5%
Average daily frequency Avg. number of pages per person 11.8
48.6% of the
population
reached by Yandex
desktop projects
every month
Source: Mediascope Web Index, October 2017. Russia 0+, aged 12-64, excluding mobile devices

57. Yandex reach and popularity allows for effective
advertising KPIs and campaign planning
55.9% of the
population
reached by Yandex
mobile projects
every month
Source: Mediascope Web Index, October 2017. Russia 0+, aged 12-64, excluding desktop devices
Yandex, Mobile
Total
Mobile
Web
Mobile
App
Mobile
Monthly reach
People,
thousands 14 674,0 11 308,1 10 753,6
% of population 55,9% 43,1% 41,0%
Average weekly reach
People,
thousands 11 500,1 8 107,3 7 798,8
% of population 43,8% 30,9% 29,7%
Average daily reach
People,
thousands 6 039,4 3 518,2 3 600,4
% of population 23,0% 13,4% 13,7%
Days reached Avg. Number of
days per person 11,2 8,4 9,1

58. THE GATEWAY
WE ARE
more details to come

59. Thank you!
Mr. Constantin Starchikov
Business Solutions Manager.
Yandex (Russia and CIS) /
Webcertain Group Ltd
+44 (0) 203 239 5383
constantin.starchikov@webcertain.com