Ituran Location and Control Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Turan first quarter 2025 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 the Turan'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.iteran.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. Good day to all of you and welcome to ITERAN's conference call to discuss our first quarter 2025 results. I would like to thank Iteron's management for hosting this conference call. With me today on the call are Mr Eyal Shiratsky, CEO, Mr Uldi Mizrahi, Deputy CEO and VP Finance, Mr Eli Kamar, CFO of Iteron. 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 Harbour Statement in today's 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 first quarter 2025 result call and thank you for joining us today. We are pleased with our first quarter results presenting another quarter of year-over-year growth in revenue and profit across the geographies in which we operate. In the first quarter, we added a very high level of new subscribers, amounting to 99,000 net. With this strong jump, we reached a major milestone, crossing 2.5 million subscribers ahead of our expectation. The significant growth in the subscriber base during the quarter was partly due to an additional contribution from a new telematics service agreement that we signed with major car OEM manufacturer Stellantis. As an initial part of this agreement, in March, Stellantis switched their SVR subscriber base to e2Run and e2Run began providing services to these subscribers. Given the jump in subscribers, we increase our expectations for 2025 subscriber goals to between 220,000 and 240,000 net new subscribers, implying a further 120,000 to 140,000 net new subscribers in the upcoming three quarters. The hard work we've done over the past year in bringing new and attractive applications, products and services has brought these highly positive results. Looking ahead, we believe over the long term, the net subscriber's ad will trend upward. Even while presenting excellent results, I want to add that, similar to the last quarters, while showing growth in US dollar terms, the strengthening of the dollar versus many of the local currencies in which we operate, and in particular the Brazilian real and the Mexican peso, had a deflating impact on our financial results when denominated in US dollar. In local currencies, in each of our regions, I know that we grew ahead of what our US dollar denominated results suggest. Our success reflects ongoing and growing demand for relocation-based product and telematics services in all our regions, as well as traction for our new initiatives and services. We had a good first quarter and I want to summarize some of our activities which will continue to contribute to our growth and success. Israel, the high car theft rate, is providing strong demand for our services and enabling us to reach additional new subscribers from part of the market that was previously untapped by us. such as lower priced new vehicles or the second-hand car markets. Our usage-based insurance business in Israel continues to gain strong traction, bringing us new subscribers and is one of the reasons why we continue to see strong subscriber growth in Israel. Our product for motorcycle is gaining traction across all our geographies in South America. Motorcycles significantly increase our total addressable market and continue to represent a very significant untapped market for us in all our region. And as I mentioned earlier, during the first quarter, we were very pleased to have assigned a new OEM agreement With Stalantis, our new OEM customer, made a strategic decision to begin working with Iturán for telematics services and in March, we started providing our services to their subscriber base. Stalantis is the largest car manufacturer in Latin America, which includes Fiat, Jeep, Peugeot and many others. They choose to work with us because of their satisfaction with our technological and service capabilities. While contributing to both our top and bottom line, because we currently have with them an initial and limited OEM SVR service agreement, the Stellantis subscribers are at lower ARPU than the Ituran average. Following this initial agreement, we expect in the near future to broaden our scope of services to Stellantis. We view this new OEM agreement as an important milestone in expanding our OEM relationships globally. We believe it opens the door to further collaborations with Talentes in additional geographies, as well as the potential to provide additional telematics services to the customer base. We remain in discussion with a number of other major OEM car manufacturers, in addition to those that we already work with, in order to bring our services to their subsidiaries elsewhere in South America. Ituran is a cash generating company and we generated $15.5 million in operating cash flow during the quarter. to run is focused on shareholder value creation. And as such board of directors decided to issue a dividend of $10 million to shareholders. I remind you that in Q4, 2024, we increased our dividend policy by 25% from issuing $8 million per quarter to $10 million. This represent 50 cents per share. Our dividend yield on an analyzed basis represents a return around of 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 our company. In summary, we remain pleased with e2run's performance. The first quarter was a quarter of continued growth for e2run, particularly in terms of top-line revenue and subscriber growth, as well as from a strategic perspective, bringing a new OEM relationship and deal to e2run. We believe we will continue to see growth throughout 2025, adding between 220,000 and 240,000 new subscribers in 2025. At the same time, we look for more avenues for accelerating our business even further across all our regions. We are very pleased to have reached a major milestone of Ituran with two and a half million paying subscribers. And I would like to thank and congratulate all our employees for this amazing achievement. And with that, I hand over to Eli. Eli, please go ahead.