Ituran Location and Control Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Ituron second quarter 2021 results conference call. All participants are present in a listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Eturan's Investor Relations Team at GK Investor and Public Relations at 1-646-688-3559 or view it in the news section of the company's website, www.eturan.co.il. I will now hand over the call to Mr. Ehud Helft of GK Investor Relations. Mr. Helft, would you like to begin?

Thank you, Operator. Good day to all of you and welcome to E2RUN's conference call to discuss the second quarter of 2021 results. I would like to thank E2RUN's management for hosting this conference call. With me today on the call are Mr. Eyal Sharatsky, the CEO, Mr. Udi Mizrahi, Deputy CEO and VP Finance, and Mr. Eli Kamar, CFO of E2RUN. Eyal will begin with a summary of the quarter results, followed by Eli with a summary of the financials. We will then open the call for the question and answer session. I'd like to remind everyone that the safe harbor and the press release also cover the content of this conference call. And now, Eyal, would you like to begin, please? Thank you, Eyal.

I'd like to welcome all of you and thank you for joining us today. We are very pleased with the results of the second quarter, which outperformed our expectations. Our results demonstrate that it will continue its recovery with both sequential as well as year-over-year revenue and EBITDA growths. This is despite continued impact from the pandemic, which still affects much of the world, especially in the countries in which we operate. We grow our subscriber base at the highest rate we have seen for many quarters with 24,000 net ads. While the OEM segment is now showing stabilization with 1,000 net ads, the strengths continue to be driven by the aftermarket segment with 23,000 net ads. This is a rate which is nicely ahead of our typical range of between $15,000 and $20,000. We are very happy with this solid increase and its promising scene for continued growth in the subscription revenues over the quarter ahead. Our business in Israel continues to contribute strongly to subscriber growth. Driven by the strong new car sales in the country, which has substantially recovered over, with 45% year-over-year new registration in the first half versus that of last year. In addition, our growth in Israel has also been driven by our usage-based insurance, or UBI, sales. It is worth mentioning that the aftermarket subscriber base in Brazil has stabilized, even though the situation with the pandemic still remains tougher. As the global recovery moves to a more solid footing with the associated recovery in global car sales, we are well positioned across all our geographies to capitalize on the ongoing recovery and renewed growth. However, I want to stress that the pandemic is still very much with us throughout the world and there continues to be uncertainty, including shortages of electronic components, which as of now has not had a significant impact on us. We continue to operate carefully and conservatively facing the challenges as they rise. From the profitability standpoint, for the quarter reported EBITDA of $18.2 million. This is our highest level in two years and again a strong testament to the overall resilience and stability of our business model. The operating leverage inherent in our business model, which enable us to add new subscribers on a mostly fixed operating base, will allow us to see a larger portion of future expected top line revenue growth drop down to the bottom line. This will improve our profitability margins as we grow. Our continued profitability and ongoing cash generation enable us to share the reward of our success with our shareholders via regular dividends of at least $3 million. Given our growth potential ahead, as well as the existing value we need to run, we believe our own shares represent good value and is another tool which we can use to enhance shareholder value. Our board of directors therefore renewed our share buyback program from 2019, of which $19 million remains and which will commence in the coming days. Before moving over to Eli for the financial summary, I wanted to take a moment to discuss Bring, which now has significant value to it to run. But with value not reflected in any of our financial statements and all the potential value is future upside. Bring's company, we see that in 2014, and is still valued at close to zero on our balance sheet. The company continues to grow quickly and has become a tech leader in the last mile delivery and fulfillment space. Now, seven years later, in Bring's most recent capital raising round, the company was valued at $1 billion, and Ituran holds, post the offering, 7.2% of the company's shares, remaining the largest shareholder. Bring is a testament to Ituran's ability to correctly read market trends and invest into disruptive mobility technologies, and we believe this strategy will continue to bring strong value to Ituuan's shareholders over the coming years. In summary, as we move through 2021, Ituuan is regaining growing strength, and I am excited with our potential over the coming quarters and years. Furthermore, we remain focused on shareholders' value, and we are taking additional steps to bring value to shareholders. I look forward to commencing our buyback plan in the coming days. I will now hand the call over to Eli for a financial summary.