The document summarizes the Russian automotive market in February 2011. It notes that the automotive industry is one of Yandex's top industries and is growing quickly. The Russian automotive market saw strong growth in 2010 and is the 10th largest market worldwide, though car ownership remains low compared to Western countries. The government strongly supports the domestic automotive industry through subsidies and import restrictions. Foreign brands dominate the top automotive brands in Russia by market share. Passenger cars represent the largest category of automotive spend on Yandex.

1. Russian Automotive Market Update
February 2011

2. Automotive Market
Automotive Industry on Yandex
Automotive is growing quickly and one of Yandex’s top industries
Top Ten Industries on Yandex
v Automotive v Housing & Rentals
v Banking & Finance v Manufacturing
v Business Services v Personal Health
v Construction v Real Estate
v Consumer Shopping v Tourism
Automotive Spend on Yandex
Total
Automotive 130% Y/Y
Spend on Growth
Yandex
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 2010
Sources: Yandex; Top Ten by overall spend in recent period
2

3. Automotive Market
Russian Automotive Market
v Strong Automotive resurgence in 2010
v Currently 10th largest Automotive market in the world
v Roughly 1/3 the size of U.S. market
v Very low car ownership per capita compared to Western markets
v Government is strongly focused on supporting (domestic) industry:
v Increased import duty
v Subsidized loans for purchase of domestic autos
v Direct support and intervention for domestic OEMs
v Incentives for car scrapping
v Tightening restrictions on importing older used vehicles
v Strong growth is forecast to return; expected to become the 3rd largest
market in the world over the next 5 years
Sources: IHS Global Insight; Earnst & Young; Ministry of Economic Development
3

4. Automotive Market
Automotive Brand Market Share in Russia
Foreign brands dominate the top 10
Top Ten Automotive Brands ($ Share, 2009)
30%
24%
20%
% of
Russian
Market
10%
7%
6%
5% 5% 5% 5%
4% 4%
3%
0%
LADA Chevrolet Ford Hyundai Renault Kia Toyota Nissan Daewoo Mitsubishi
Sources: AEB
4

5. Automotive Market
Broad coverage of both foreign and domestic brands
20+ Automotive advertisers in 2010
Automotive Advertisers on Yandex
Advertiser Brand Advertiser Brand
AVTOVAZ LADA INFINITI
NISSAN
BMW NISSAN
BMW
MINI CITROEN
PEUGEOT
CITROEN
RUS
CHINA
CHONGQING
INDUSTRY
(GROUP)
CO.,LTD LIFAN PEUGEOT
CHRYSLER PORSCHE PORSCHE
CHRYSLER
CORPORATION DODGE RENAULT RENAULT
JEEP
GRAND
CHEROKEE FIAT
DAIMLER
AG MERCEDES-­‐BENZ ISUZU
FORD SOLLERS SOLLERS
FORD
MOTOR
CO MAZDA SSANG-­‐YONG
VOLVO UAZ
CHEVROLET SUBARU SUBARU
GENERAL
MOTORS
CORP
OPEL SUZUKI SUZUKI
HONDA HONDA LEXUS
TOYOTA
HYUNDAI HYUNDAI TOYOTA
JAGUAR AUDI
JAGUAR
LAND
ROVER
LAND
ROVER SEAT
VOLKSWAGEN
AG
(VAG)
MITSUBISHI
MOTORS MITSUBISHI SKODA
VOLKSWAGEN
Notes: Sample of Advertisers and Brands; not complete list 5

6. Automotive Market
Passenger Car spend dominates the Industry
Auto Loans and Commercial Transport spend grew slower than Passenger Cars
Automotive Spend by Category
Notes: Auto Manufacturers only, dealers excluded; Geo-Russia
6

7. Automotive Market
Passenger Car CPC was essentially flat in 2010
Auto Loan CPC had strong growth with slow overall spend growth
CPC by Category ($)
$1.00
$0.91
$0.75
$0.66 $0.64
$0.52
$0.50
$0.48
Cost per
Click
$0.27
$0.25
$0
Passenger Cars Commercial Transport Auto Loans
Notes: Auto Manufacturers only, dealers excluded; Geo-Russia
7

8. Russian Internet Search Market
8

9. Russian Internet Market
Internet Users - Global
Russia has the 7th largest audience of Internet Users in the world
Internet Users (MM) per Country (2010)
500
420
375
250 239
Millions of
Internet
Users
125 99
81 76 65 60 51 45 44 39
0
China US Japan India Brazil Germany Russia UK France Nigeria S. Korea
Sources: Internetworldstats
9

10. Russian Internet Market
Internet Penetration - Global
Russia currently has fairly low penetration compared to other large Internet populations
Internet Penetration per Country (2010)
100%
83% 81%
77% 78% 79%
75% 69%
50%
43%
% of Population
38%
31% 29%
25%
7%
0%
China US Japan India Brazil Germany Russia UK France Nigeria S. Korea
Sources: Internetworldstats
10

11. Russian Internet Market
Internet Users - Europe
Russia is the 2nd largest Internet market in Europe
Internet Users (MM) per Country (2010)
70
65
60
51
53
45
35
35
30 29
Millions of
Internet
Users 22
18 15 14
0
Germany Russia UK France Turkey Italy Spain Poland Ukraine Netherlands
Sources: Internetworldstats
11

12. Russian Internet Market
Internet Penetration - Europe
Russia has significant growth potential compared to other established European markets
Internet Penetration per Country (2010)
100%
89%
83%
79%
75% 69%
63%
58% Average
European Internet
52% Penetration
50% 45%
43%
% of
Population
34%
25%
0%
Germany Russia UK France Turkey Italy Spain Poland Ukraine Netherlands
Sources: Internetworldstats
12

13. Russian Internet Market
Russian Internet Penetration Growth
Russian market is growing extremely quickly
Internet Penetration in Russia (2000-2010)
75%
50% 43%
% of
37%
Population
27%
25%
21%
19%
15%
12%
7% 10%
2% 4%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: International Telecommunications Union 13

14. Russian Internet Market
Russian Search Engine Share
Search Engine Traffic Market Share in Russia, January 2011
Mail.ru
Other 7%
4%
Rambler
2%
Google
22%
Yandex
65%
Source: LiveInternet.ru
14

15. Russian Internet Market
Market Share Evolution
Russian Search Traffic Market Share1
Nov 2009
MatrixNet 65%
Dec 2010
Spectrum (Semantic
58%
Upgrade)
July 2010
Orange (Realtime
May 2008 Search)
Updated core search and
ranking algorithms
2006
Google introduces Russian
language morphology-based
search capabilities
June 2008
26% Google launches outdoor
advertising campaign
22%
2001
Google launches March 2006
Russian language Google opens
search engine office in Russia
5 7%
5
2%
Mar-05
Sept-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Jun-10
Dec-10
Source: LiveInternet.ru
1. Based on monthly search traffic to Russian websites from Russian IP addresses 15

16. Preston Carey
Business Development
preston.carey@yandex.ru
+1 857.288.8762
16