Ituran Location and Control Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the E2RAN third quarter of 2024 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 Ituran's investor relations team at EK Global Investor Relations at 1-212-378-8040 or view it in the news section of the company's website, www.ituran.co.il. I will now hand the call over to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin?

Thank you, Operator. Good day to all of you and welcome to Iteron's conference call to discuss the third quarter 2024 results. I would like to thank Iteron's management for hosting this call. With me today are Mr. Eyal Sharatsky, CEO, Mr. Udi Mizrahi, Deputy CEO and VP Finance, and Mr. Eli Kamar, CFO, Obitua. Eyal will begin with a summary of the quarter's results, followed by Eli with a summary of the financials. We will then open the call for the question and answer session. I would like to remind everyone that the safe harbor statement in today's press release also covers the content of this conference call. And now, Eyal, would you like to begin, please?

Thank you, Kenny. I'd like to welcome all of you to our third quarter 2024 call, and thank you for joining us today. We are pleased with our third quarter results, presenting steady growth in revenue and profit across the geographies in which we operate. We are also happy to report a high level of 40,000 net subscribers in the quarter, which came in at the top end of our expectations. The results were achieved despite the negative impact of the U.S. dollar strength in the quarter, which lowered our local currency denominated results when presented in U.S. dollars. In fact, in local currency terms, our growth in most of the geographies in which we operate was even higher. We increased our subscriber base by a net of 40,000 in the quarter, at the high end of our expectation, which is between 35,000 and 40,000. Our ongoing success reflects continued demand for location-based products and pneumatic services, as well as traction from the new initiatives and services we continue to launch in the various geographies in which we operate. Last week, we announced a five-year contract with Nissan Chile. We have a long-term partnership with Nissan, one of the world's leading automakers and OEMs, and have partnered with them for many years in Mexico. Under our new contract with them, it will provide Nissan Chilean customers with vehicle location unit pre-installed in three new vehicle models, which potentially is tens of thousands of vehicles over the years. We will also provide telematics and stolen vehicle recovery services. Following a Nissan Chile customer's car purchase, they will enjoy a years-free trial of it to run services paid by Nissan, after which they will have the option to continue with their service, which they will pay to Nissan and e2Run. Customers will have access to comprehensive Nissan branded on vehicle application. Additionally, the customer will also have access to e2Run Chile's 24-hour contract center, assistance in the event of vehicle theft, and emergency services such as breakdown assistance and towing. This new agreement in Chile is the culmination of well-over-used discussions on how we can replicate our strong service for Nissan in Mexico and bring this service to the customers in Chile. This new agreement shows the very strong satisfaction that Nissan has from our cooperation in Mexico, and I believe that this will enable us to expand to additional regions with Nissan in the future. We are also aiming to build a strong aftermarket business in Chile, leveraging the strong experience we have in this market in many of the other regions in which we operate. We are also in active discussions with a number of major OEM car manufacturers, in addition to those that we already work with. We are looking to bring new OEM partners, as well as broaden the services we provide existing OEMs to additional countries in South America. We see strong long-term growth potential via this initiative. From a financial perspective, even with the currency headwinds throughout the past year, we remain on track to meet our targets. We will trade that for 2024, our guidance is full EBITDA of between 90 and 95 million dollars. We continue to expect that for the quarter, Subscriber growth will be between 35,000 and 40,000 net new subscribers. Given the strong net cash position of over $67 million, our ongoing cash generation, which came to $17.2 million in the quarter, we continue to share a strong quarterly dividend of $8 million with our shareholders. This dividend is at the same level that we issued last quarter and 60% increased of a debt of the year-ago quarter. Our dividend yield on an annualized basis represents a return of over 6%, which is a very solid return from a strong and stable company. We see our ongoing dividend as a reward to our shareholders for their loyalty and long-term support of e2e. In summary, we remain pleased with e2e's performance. Our consistently growing subscriber growth will continue to translate into increased revenue, improved margins, and greater profitability growth over the long term due to the operating leverage inherent to our business. We aim to enhance our subscriber growth and we are currently engaged in active discussions with a number of major OEM car manufacturers, both current and new potential customers, to bring our services to additional countries in South America as well as new OEM customers across all our regions. I look forward to updating you on our progress again in the coming quarter. And with that, I hand over to Eli. Eli, please go ahead.