Our Search and Portal segment includes Search, Geo, Yandex 360, Weather, News, Travel, Alice voice assistant and a number of other services offered in Russia, Belarus and Kazakhstan.

Key operational trends: ? Share of Russian search market, including mobile, averaged 59.7% in Q2 2021, broadly in line with 59.6% in Q2 2020

and down slightly from 60.0% in Q1 2021 (primarily reflecting a seasonal normalization of the desktop market

share), according to Yandex.Radar ? Search share on Android in Russia was 59.5% in Q2 2021, up from 57.5% in Q2 2020 and 59.3% in Q1 2021, according to

Yandex.Radar ? Mobile search traffic was 63.3% of our total search traffic in Q2 2021. Mobile revenues represented 56.7% of our

search revenues in Q2 2021 ? Search queries in Russia decreased 5% in Q2 2021 on year-on-year basis driven by the high base in Q2 2020 when the

start of the pandemic led to a material acceleration of search queries growth 


 
In RUB millions        Three months ended June 30,   Six months ended June 30, 
                       2020      2021      Change    2020     2021     Change 
Revenues               25,554    39,419    54%       56,090   74,564   33% 
Revenues Ex-TAC        20,909    32,358    55%       45,522   61,174   34% 
Adjusted EBITDA        10,991    18,226    66%       25,733   35,185   37% 
Adjusted EBITDA margin 43.0%     46.2%     3.2 pp    45.9%    47.2%    1.3 pp

Revenues increased by 54% and Revenues Ex-TAC increased by 55% year-on-year in Q2 2021, primarily driven by the low base effect of Q2 2020 related to the COVID-driven decline in economic activity and advertising demand. On a two-year stack basis the revenues increased by 16% reflecting the solid performance of the core search business on the back of the improved search share, mobile monetization and supported by our investments in advertising technology.

Adjusted EBITDA margin came to 46.2% in Q2 2021 compared with 43.0% in Q2 2020. The year-on-year improvement dynamic was primarily driven by the positive operating leverage effect on the back of the recovering revenue growth and improvement in TAC.

Taxi

The Taxi segment includes our mobility businesses, which consists of the Ride-hailing business (including Yandex.Taxi in Russia and 16 other countries across CIS and EMEA, and Uber in Russia and CIS) for both B2C and B2B, and Yandex.Drive, our car-sharing business; Yandex.Delivery (Logistics), our shipping and logistics service provider; and FoodTech businesses (including Yandex.Eats, our ready-to-eat and grocery delivery service; and Yandex.Lavka, our hyperlocal convenience store delivery service).

Key operational trends: ? Number of rides in the Ride-hailing service, excluding logistics deliveries, increased 104% compared with Q2 2020 ? GMV in the Ride-hailing service, excluding logistics deliveries, reached RUB 134.9 billion as of the end of Q2

2021, up 161% from the end of Q2 2020 ? GMV of Yandex.Eats business reached RUB 11.1 billion as of the end of Q2 2021, up 53% from the end of Q2 2020 ? GMV of Yandex.Lavka service reached RUB 6.3 billion as of the end of Q2 2021, up 132% from the end of Q2 2020. The

number of our own dark stores in Yandex.Lavka service reached 362 stores as of the end of June 2021 


 
In RUB millions                     Three months ended June 30,   Six months ended June 30, 
 
                                    2020    2021       Change     2020     2021     Change 
GMV: 
Mobility                             52,557  138,580   164%        136,728  257,982 89% 
Ride-hailing                         51,713  134,909   161%        132,721  251,315 89% 
Drive                                844     3,671     335%        4,007    6,667   66% 
Yandex.Delivery (Logistics)6         1,706   5,834     242%        2,096    10,283  391% 
FoodTech                             9,985   17,421    74%         14,710   32,448  121% 
Total GMV                            64,248  161,835   152%        153,534  300,713 96% 
Revenues: 
Mobility                             8,475   18,526    119%        20,718   36,580  77% 
Ride-hailing                         7,789   15,445    98%         17,429   31,026  78% 
Drive                                686     3,081     349%        3,289    5,554   69% 
Yandex.Delivery (Logistics)          720     2,318     222%        805      4,303   n/m 
FoodTech                             4,203   8,105     93%         5,895    15,190  158% 
Eliminations                         (267)   (829)     210%        (266)    (1,390) n/m 
Total revenues                       13,131  28,120    114%        27,152   54,683  101% 
Adjusted EBITDA: 
Mobility                             925     4,901     n/m         1,875    10,742  n/m 
Ride-hailing                         1,872   4,706     151%        3,815    10,439  174% 
Drive                                (947)   195       n/m         (1,940)  303     n/m 
Yandex.Delivery (Logistics)          (116)   (279)     141%        (185)    (501)   171% 
FoodTech                             (758)   (3,054)   303%        (1,760)  (4,931) 180% 
Total Adjusted EBITDA                51      1,568     n/m         (70)     5,310   n/m 
Adjusted EBITDA margin as % of GMV: 
Mobility                            1.8%    3.5%       1.7 pp     1.4%     4.2%     2.8 pp 
Ride-hailing                        3.6%    3.5%       -0.1 pp    2.9%     4.2%     1.3 pp 
Drive                               -112.2% 5.3%       117.5 pp   -48.4%   4.5%     52.9 pp 
Yandex.Delivery (Logistics)         -6.8%   -4.8%      2.0 pp     -8.8%    -4.9%    3.9 pp 
FoodTech                            -7.6%   -17.5%     -9.9 pp    -12.0%   -15.2%   -3.2 pp 
Total Adjusted EBITDA as % of GMV   0.1%    1.0%       0.9 pp     0.0%     1.8%     1.8 pp

(6) Delivery (Logistics) GMV is defined as total transaction amounts, paid by individual users and B2B clients for a last-mile delivery service, including VAT and excluding any adjustment for consumer discounts and refunds, Partner (Driver / Courier) earnings and Partner incentives.

Taxi segment revenues increased by 114%, primarily driven by the solid performance of our Ride-hailing (including our corporate Taxi business) and Yandex.Lavka businesses, as well as the growth of car-sharing and Logistics. Ride-hailing and Drive revenue increased by 98% and 349% respectively due to an increase in a number of rides on the back of the low base effect of Q2 2020 as well as recovering consumer demand. FoodTech revenue delivered solid 93% year-on-year growth despite high base effect in Q2 2020 on the back of the increasing penetration of food delivery services as well as the improving market position of our services. On a 2-year stack revenue in Ride-Hailing, Drive and FoodTech increased by 39%, 33% and 223% respectively.

Eliminations related to the Taxi segment represent the eliminations of intercompany revenues between different businesses within Taxi Group. The increase of 210% in Q2 2021 compared with Q2 2020 was mainly attributed to a higher volume of FoodTech orders fulfilled by our Yandex.Delivery (Logistics) vertical.

Adjusted EBITDA of Taxi was RUB 1,568 million in Q2 2021, up from RUB 51 million in Q2 2020. The increase of adjusted EBITDA was primarily driven by the significant improvement of our Ride-hailing Adjusted EBITDA and Yandex.Drive (which has delivered positive Adjusted EBITDA for four consecutive quarters), partially offset by the investments into the rapidly growing Yandex.Lavka and Yandex.Eats (grocery delivery from retail chains in particular) businesses as well as our Logistics services.

Yandex.Market

The Yandex.Market segment includes our marketplace, price comparison service, and several small experiments.

Key operational trends: ? The GMV of Yandex.Market marketplace increased by 144% year-on-year in Q2 2021 ? Total E-Commerce GMV (Yandex.Market marketplace, our e-grocery business Yandex.Lavka and grocery-originated GMV of

Yandex.Eats) increased by 155% year-on-year in Q2 2021 ? The share of GMV sold by third-party sellers on our Yandex.Market marketplace reached 70% in Q2 2021 compared to

56% in Q2 2020 ? Marketplace's assortment reached 16.8 million SKUs as of the end of Q2 2021 compared to 3.8 million SKUs as of the

end of Q1 2021 and 1 million SKUs as of the end of Q2 2020 ? The number of active buyers on Yandex.Market marketplace increased by 78% year-on-year and reached 7.1 million as

of the end of Q2 2021 The table below presents the financial results of the Yandex.Market segment on a like-for-like basis for the full three and six months periods ended June 30, 2020 and 2021. 


 
In RUB millions                                Three months ended June 30,  Six months ended June 30, 
                                               2020 *   2021      Change    2020 *   2021      Change 
GMV of Yandex.Market                            10,947   26,692   144%       18,775   44,360   136% 
Revenues:                                       7,189    8,828    23%        13,262   16,172   22% 
Revenues from sale of goods (1P)                3,998    6,675    67%        7,483    11,503   54% 
Commission and other marketplace revenues (3P)  1,097    957      -13%       1,668    1,641    -2% 
CPC revenues7                                   2,094    1,196    -43%       4,111    3,028    -26% 
Adjusted EBITDA                                 (1,844)  (9,918)  n/m        (4,037)  (16,406) 306% 
Adjusted EBITDA margin                         -25.7%   -112.3%   -86.6 pp  -30.4%   -101.4%   -71.0 pp

* Financial results of Yandex.Market for the six and three months ended June 30, 2020 were not included in Yandex's consolidated financial results on a consolidated basis, but portion of the results were recognized in line «Loss from equity method investments» due to accounting for the equity stake in Yandex.Market.

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