Ride-Hailing Businesses Allowing To
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Company Presentation July 2021 This presentation contains forward-looking statements that involve risks and uncertainties. These include statements regarding our future financial and business performance, our business and strategy and the impact of the COVID-19 pandemic on our industry, business and financial results. 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 Forward 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, the Looking impact of the ongoing COVID-19 pandemic and regulatory and business responses to that crisis, macroeconomic and geopolitical developments affecting the Russian Statement economy or our business, changes in the political, legal and/or regulatory environment, competitive pressures, changes in advertising patterns, changes in user preferences, technological developments, and our need to expend capital to accommodate the growth Disclaimer 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 April 1, 2021, 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 July 28, 2021, and Yandex expressly disclaims any duty to update this information unless required by law. 2 Zen Yandex Ecosystem KinoPoisk Mail Toloka Navigator Music Yandex Browser Cloud Yandex.Fuel Afisha Translator Yandex.Delivery (Logistics) Alice Disk Air and Railway Tickets Q Maps more than a search Search Eats News Self-Driving Group Lavka Yandex.Travel Tutor Drive Yandex.Uslugi Yandex.Textbook (Services) Taxi Yandex Plus Praktikum Market Weather 3 Our Key Businesses Yandex is a technology Search & Portal Taxi Yandex.Market company that builds intelligent products and services powered Browser Maps Navigator Search Go Uber Delivery Drive Market by machine learning Alice Toloka Mail 360 Q Eats Lavka Our goal is to help consumers and businesses better navigate the online Media Services Classifieds Other Business and offline world Units and Initiatives Plus KinoPoisk Afisha Music Auto.ru Realty Classifides Jobs Self-Driving Zen Cloud Practicum For more details see https://ir.yandex/key- businesses Uslugi Station (Devices) 44 Key Operational and Financial Highlights Business Growth Dynamics Yandex transforming from an +188% 218.3 advertising business into a Revenue, 175.4 +75% comprehensive digital platform 154.5 for consumers and businesses RUB BN 127.7 94.1 88.4 75.9 Diversified business model with over 50% revenues coming from +30% fast growing non-advertising CAGR 2016 2017 2018 2019 2020 6m’20 6m’21 segments Highly marginal advertising and ride-hailing businesses allowing to Digital Ad Ready-to-eat delivery re-invest into new attractive growth 2010 0.9 Ecommerce Cloud opportunities and expansion of Egrocery Classifieds 6,533%66х Shared Transportation Media total addressable market TAM, 2020 59.7 Large total addressable Market in USD BN 171%2.7х current geographies ($60BN in 2020 vs. $0.9BN in 2010) with 2025E 161.5 significant growth potential presenting a catalyst for many years to come Source: Goldman Sachs estimates, AKAR, Euromonitor, AKIT, IDC, Analysts’ consensus estimates. PWC, 66 J’son&Partners Consulting, RBC, Company’s internal estimates, TMT Consulting Yandex Revenue Sources are Diversified Consolidated Revenue1 Breakdown, RUB BN, % Revenue Breakdown by Segments, RUB BN, % Online Ad Revenues Other Revenues Search and Portal Classifieds Revenues Related to Taxi segment, Excl. Sales of Goods Taxi Other Business Units and Initiatives Revenues Related to Sales of Goods Yandex.Market2 Eliminations Media Services 218.3 218.3 175.4 +75% 175.4 +75% 154.5 58% 54% 154.5 127.7 127.7 49% 45% 69% 67% 88.4 88.4 80% 77% 26% 29% 62% 27% 61% 33% 25% 25% 9% 16% 6% 10% 27% 16% 3% 29% 16% 2% 2% 5% 1% 7% 5% 8% 3% 1% 1% 3% 3% 2% 3% 4% 6% 2% 3% 5% 4% 3% 6% 2018 2019 2020 6m’20 6m’21 2018 2019 2020 6m’20 6m’21 1 Revenues are recognized net of VAT, discounts and commissions, but gross of TAC. 2 On April 27, 2018 Yandex and Sberbank announced the completion of the formation of the JV based on the Yandex.Market platform. The parties owned equal stakes in the JV. We deconsolidated Yandex.Market starting April 27, 2018 from our consolidated financial results. On July 23, 2020 Yandex and Sberbank closed the transactions to reorganize their two JV’s – Yandex.Market and Yandex.Money. As a result, Yandex has become the controlling shareholder in Yandex.Market and its result consolidated back to Yandex financial results. 7 Search and Portal Yandex’s Search Share across Platforms, % Evolution of Yandex’s Mobile Search Traffic & Revenue 63.3% 68.7% 62.7% 62.4% Mobile Traffic as % Total 60.5% of Total Search 64.2% Desktop 59.0% Traffic 59.3% 57.3% 57.5% 56.6% 58.4% Android 56.7% 54.4% 54.8% Mobile Search 59.1% iOS 53.3% 52.8% Revenue as % 48.2% 51.3% 50.4% of Total Search 42.5% 49.3% Revenue 38.0% 46.2% 46.3% Jan’15 Jun’21 2Q’19 3Q’19 4Q’19 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 Revenue, RUB BN Adj. EBITDA, RUB BN 54% YoY revenue 52% growth, % 48% 48% 48% 49% 48% 43% 46% Adj. EBITDA 18% 15% 16% 2-year stack margin, % 11% 11% 11% revenue 3% 58.3 60.5 growth, % 2% 12% 13% 2% 6% -13% 122.8 124.8 16.7 18.0 17.0 18.2 14.7 11.0 30.5 25.6 32.1 36.6 35.1 39.4 2019 2020 1Q’20 2Q’20* 3Q’20 4Q’20 1Q’21 2Q’21* 2019 2020 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 Source: Yandex.Radar *The COVID-19 pandemic and the resulting strict lockdown measures had a material impact on our financial results and operations in Q2 2020, particularly on our advertising and mobility businesses, as well as classifieds services. The growth dynamic in Q2 2021 is therefore impacted by the base effect: low base effect for Search & Portal, Ride-Hailing, Classifieds businesses, while high base effect for E-commerce, FoodTech and Media Services. 8 Taxi Group (MLU1) Total MLU Revenue YoY growth, % 2 year stack growth, % The Taxi segment includes 205% Ride-hailing business, which 111% 114% 2 68.0 89% Revenue , 120% 76% 83% 69% consists of Yandex.Taxi in Russia 81% 45.6 63% RUB BN 74% and 16 other countries across CIS 49% 60% 58% 54% 24% 26.6 28.1 and EMEA, and Uber in Russia 18.6 22.3 14.0 13.1 and CIS for both B2C and B2B 2019 2020 1Q’20 2Q’20* 3Q’20 4Q’20 1Q’21 2Q’21* Yandex.Delivery - logistics service for both B2C and B2B FoodTech businesses, which MLU adj. EBITDA MLU adj. EBITDA margin, % 14% includes Yandex.Eats, our ready- 9% to-eat and grocery delivery 8% service, and Yandex.Lavka, our Adj. EBITDA, 3.4 3.7 6% RUB BN 1.7 1.8 1.6 hyperlocal convenience store 0.1 5% 0.1 delivery service -0.1 0% 0% -1% Yandex.Drive, our car-sharing 2019 2020 1Q’20 2Q’20 3Q’20 4Q’20 1Q’21 2Q’21 business 1 MLU B.V. is a JV with Uber which was founded in February 2018, by combining Yandex Taxi Holding B.V. with several Uber legal entities. 2 Revenues are presented in accordance with Revenue, whereby in cities where we have implemented commissions, minimum fare guarantees, and discounts are netted against revenues. Following the revision of our organizational structure and financial disclosure *The COVID-19 pandemic and the resulting strict lockdown measures had a material impact on our financial results and operations in Q2 2020, particularly on our advertising and mobility businesses, as well as classifieds services. The growth dynamic in Q2 2021 is therefore impacted by the base effect: low base effect for Search & Portal, Ride-Hailing, Classifieds businesses, while high base effect for E-commerce, FoodTech and Media Services. The adverse impact was partially offset by the acceleration in FoodTech businesses (both Yandex.Eats and Lavka) and Media Services. As a result the year-on-year dynamic of FoodTech business in Q2 2021 was primarily driven by the high base effect, while the dynamic in mobility 99 business has been supported by the low base effect of the challenging Q2 2020. Mobility1 FoodTech2 Revenue, RUB BN Revenue, RUB BN 193% 99% 119% YoY growth, % 545% 598% 573% YoY growth, % 109% 57% 58% 502% 43% 42% 49% 2-year stack 429% 403% 2-year stack growth, % 319% growth, % 223% 17% 51% 47% 38% 365% 403% 49.2 26% 12% 440% 42.0 -13% 16.7 314% 227% 93% 155% 18.5 8.1 13.7 14.8 18.1 6.4 7.1 12.2 3.6 4.2 4.4 8.5 1.7 2019 2020 1Q’20 2Q’20* 3Q’20 4Q’20 1Q’21 2Q’21* 2019 2020 1Q’20 2Q’20* 3Q’20 4Q’20 1Q’21 2Q’21* Adj. EBITDA, RUB BN Adj. EBITDA, RUB BN 32% 26% Adj. EBITDA Adj. EBITDA 21% 23% margin as % margin as % 16% -0.8 7% 8% 11% of Revenue -1.0 -0.9 -1.1 of Revenue Adj. EBITDA -1.9 Adj.