Ituran Location and Control Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the eTouran fourth 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. You should have all received by now the company's press release. If you have not received it, please contact eTouran's investor relations team at ekglobalinvestorrelations at 1 or view it in the news section of the company's website, www.iteron.co.il. I will now hand over the call to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin?

Thank you. Good day to all of you and welcome to ITERON's conference call to discuss the fourth quarter 2024 results. I would like to thank ITERON's management for hosting this conference call. With me today on the call are Mr. Eyal Sharadsky, CEO, Mr. Udi Mizrahi, Deputy CEO and VP Finance, and Mr. Eli Kamar, CFO of Etuan. Eyal will begin with a summary of the quarter's results, followed by Eli with a summary of the financials. We'll then open the call for the question and answer session. I would like to remind everyone that the safe harbor statement in the press release also covers the contents 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 fourth quarter and full year 2024 results call, and thank you for joining us today. We are pleased with our fourth quarter results, presenting another quarter of year-over-year growth in revenue and profit across the geographies in which we operate. I want to add that while we still showed growth in US dollar terms, the strengthening of the dollar versus many of the local currencies in which we operate In particular, the Brazilian real and Mexican peso had a negative impact on our financial results when denominate in US dollars. In local currencies in each of our regions, we grew ahead of what our US dollar dominated results suggest. In the fourth quarter, we were very happy to report a high level of 40,000 net subscribers ads in the quarter, which came in at the top end of our expectations of between 35 and 40,000 net per quarter. This is actually the third quarter in row where subscriber ads were above or at the very top of our expected range. The hard work we have done over the past year in bringing new and attractive applications, product and services, has brought these positive results and looking ahead, we believe the subscriber ad will be even higher. For 2025, we believe the subscriber ads will accelerate to between 180,000 and 200,000 for the year, over 20% ahead of the 2024 rate. Our success reflect ongoing and growing demand for our location-based products and telematics services in all our regions, as well as traction from our new initiatives and services. Looking back, we had a very good 2024, and I just want to summarize some of the main success of the year. which will contribute to the accelerated growth in our subscriber base in the coming years. In December, we announced that our JV in India with Lumax successfully concluded a validation and trial with Daimler India, commercial vehicles for its vehicles sold to the Indian market. Daimler fully tested its RANS device on around 15,000 vehicles operating in India, and we expect that over the time, we will sell tens of thousands of connected devices to Daimler annually. In November, we signed a five years contract with Nissan in Chile, initially covering three vehicle models. Following their car purchase, Nissan's customer will have a years free trial of e2Run service paid for by Nissan Chile. e2Run will provide a pre-installed vehicle location unit, and the suit of telematics and stolen vehicle recovery services to Nissan and its customers throughout Chile. This new agreement in Chile is the culmination of well-overused discussions on how we can replicate our strong service for Nissan customers in Mexico and bring these services to their customers in Chile. And just to touch on our relationship with Nissan in Mexico, in October, we were awarded their supplier of the year in the after-sales accessory category, demonstrating how happy they are with the high-quality service we are supplying to them and their customers. 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. Our usage-based insurance business in Israel continue to gain strong traction, bringing us new subscribers and is one of the reasons why we continue to see strong subscriber growth in Israel. This as well, A high car theft rate in Israel is enabling us to reach additional subscribers from part of the market that were previously untapped by us, such as lower-priced new vehicles or the second-hand car market. We launched a product for motorcycles early in 2024 and it has gained strong traction across all the geographies in South America in which we have launched it. Motorcycles represent a very significant untapped market for us in the region, which significantly increases our total addressable market. Given our strong net cash position of over $77 million, our ongoing cash generation, which came to almost $23 million in the quarter, the board of directors decided that from this quarter to increase the quarterly dividend payment to shareholders by 25% from $8 million per quarter to $10 million per quarter. Our dividend yield on an annualized basis represents a return of 5%, 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 our company. In summary, we remain pleased with Ituran's performance. 2024 represented a record for it to run in terms of top line revenue and subscriber goals, and we believe 2025 will be even better. While currencies impact us because our business is fundamentally strong in each of our regions, over a long period, the impacts should balance out. Most importantly, our effort to accelerate our subscriber growth is gaining traction. And we can see this in the strong subscribers net ads in 2024 and accelerated growth we expect in 2025. At the same time, we look for more revenues for accelerating our business even further 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.