Ituran Location and Control Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran third quarter 2021 results conference call. All participants are present in 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 1-212-378-8040 or view it in the news section of the company's website, www.eturan.com. I will now hand over the call to Mr. Ehud Helft of GK Investor Relations. Mr. Helft, would you like to begin, please?

Thank you, operator. Good day to all of you, and welcome to E2RAN's conference call to discuss the third quarter 2021 results. I would like to thank E2RAN management for hosting this conference call. With me today on the call are Mr. Eyal Sharassky, the CEO, Mr. Udi Mizrahi, Deputy CEO, MVP Finance, and Mr. Eli Kamar, the CFO of E2RAN. 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 questions and answer session. I'd like to remind everyone that the safe harbor in the press release also covers the content of this conference call. And now, Eyal, would you like to begin, please?

Thank you, Ehud. I'd like to welcome all of you, and thank you for joining us today. We are very pleased with the results of the third quarter, which were again ahead of our expectations. We grew our subscriber base at the highest rate we have seen for two years with 25,000 net ads. The OEM segment is showing a recovery with 4,000 net ads, and our aftermarket segments saw above-average growth at 21,000 net ads. This is ahead of our typically expected range of between 15,000 and 20,000. The growth we experience in subscriber ads is a positive indication with regard to revenue growth in the quarter ahead. We continue to see strong aftermarket subscriber growth in many of the geographies in which we operate, even in a quarter which is seasonally weaker due to the holiday season in Israel. In particular, we see increasing contribution from one of our growth engines, usage-based insurance, or UBI. The consumer market is now becoming increasingly educated to the value that they gain by using a usage-based insurance plan rather than fixed. This has led to increased traction, and we are now working with all the seven major insurance companies in Israel. The corona slowdown created plenty of new markets and opportunities and over that time new car sales around the world went down. We identified a very strong second-hand car market in many of our geographies in Latin America and new fintech startups as well as the large banks have come in to provide the financing in this specific market. However, They all need a location-based and connected car technology service provider such as e2one to monitor the cars and driver behavior and by this reduce the risk of loss against the car. We therefore initiated an approach to these financing companies and offered our solution. Following on from these efforts, we are now working with a number of partners in this area and we see great potential in which to expand this business. While currently we are only in the initial stage, we see the interest and we therefore believe this has the potential to be significant growth engine for it to run, starting from the second half of 2022 and beyond. I would like to discuss the electronic component shortage and increasing prices. That has been widely reported and is increasingly become an issue for everyone. To date, we have successfully been managing through the shortages. It's important to note that as primarily a subscriber service business, the impact on it to run to date has been low, primarily on the product revenue side, which has smaller effect on our bottom line. There is also a potentially indirect impact due to the potential slowing of new car sales, simply because of the inability of car manufacturers to produce cars at the required quantities. However, it runs as a number of growth engines, which will increasingly benefit us in the quarters ahead, which will compensate for slowness in global sales of new cars. In summary, we are performing well, but most importantly, we are seeding new growth engines, which will accelerate our growth in the years ahead. I am more excited now than ever with our long-term potential over the coming years. I will now hand the call over to Eli for a financial summary. Eli? Thanks, Eyal.