1. Russia’s search engine
Russian search engine
Peter Tang’s own opinion

2. Yandex is Russia’s biggest search engine
4th biggest search engine worldwide (behind Google, Baidu and Yahoo)
Market share 57% of searches in Russia compared to Google 35% (January 2015)
The search engine was launched in 1997 by Arkady Volozh and Arkady Borkovsky

3. Yandex is good business

4. Financial statements ok

5. It’s cheap on a multiples basis

6. There are risks for Yandex
Russia’s macro + political environment
Foreign exchange risk
Substitution risk (Are desktop and mobiles the platforms of the future?)

7. The pie is getting bigger for Google and Yandex

8. Latest developments Antitrust ruling against Google
Yandex teams up with Microsoft

9. In summary Good business with great margins
Unproven ability to compete or protect business
But is cheap on a multiples basis
Doesn’t need to win for the investment to pay off
Relies on mean reversion – High risk