Group 1 - Ituran Location and Control Ltd. has announced a new multi-year service agreement with Stellantis in South America, which may expand to additional markets [1][2] - The partnership aims to enhance vehicle security and connectivity for Stellantis customers, leveraging Ituran's advanced stolen vehicle recovery and tracking solutions [2] - Ituran is the largest OEM telematics provider in Latin America, with a subscriber base of approximately 2.5 million users of its location-based services [3][4] Group 2 - Stellantis is the largest car manufacturer in Latin America, encompassing brands such as Fiat, Jeep, and Peugeot [2] - Ituran has been growing its subscriber base significantly since its inception in 1995 and currently employs around 3,000 people globally [4] - The company operates in over 20 countries, providing a full suite of location-based services for connected cars, including fleet management and personal security [3]

Core Insights - Ituran Location and Control Ltd. (NASDAQ: ITRN) is a prominent provider of telematic services and products, operating through two segments: Telematics Services and Telematics Products [1] - The company's main service offerings include stolen vehicle recovery (SVR), fleet management, usage-based insurance (UBI), and other value-added services like personal location [1] Company Overview - Ituran specializes in telematics, which encompasses a range of services aimed at vehicle tracking and management [1] - The company has a strong focus on providing innovative solutions that enhance vehicle security and operational efficiency for its clients [1] Investment Perspective - The Stock Research Platform (SRP) is actively seeking companies with robust balance sheets, sustainable growth trajectories, and attractive valuations that present significant upside potential with limited downside risk [1] - The analysis emphasizes the importance of conducting personal due diligence in investment decisions, as individual investment goals and risk tolerances vary [1]

Company Overview - Ituran Location and Control Ltd. is a leader in mobility technology, providing location-based services including stolen vehicle recovery and fleet management [4] - The company has a significant market presence in Israel and Latin America, with approximately 2.5 million subscribers [5] - Ituran was established in 1995 and employs around 2,800 people globally, with offices in multiple countries [5] Upcoming Events - Ituran will release its first quarter 2025 results on May 28, 2025, followed by a video conference call at 9am Eastern Time [1] - The call will be accessible via Zoom, and registration is required to participate [2] - A replay of the call will be available shortly after its conclusion [3]

Revenue Generation and Market Dynamics - The company relies on relationships with insurance companies and car manufacturers for revenue generation from its stolen vehicle recovery (SVR) services and telematics products, which are critical for growth potential [33]. - Changes in insurance company practices could adversely affect revenues, as they currently mandate or incentivize the use of SVR services for certain vehicle owners [34]. - A reduction in vehicle theft rates may lead to decreased demand for SVR services and telematics products, impacting overall revenue [39]. - Declines in new car sales in the markets could reduce the addressable market for SVR services and telematics products, negatively affecting demand [40]. - Global and local economic downturns could adversely affect consumer spending in the automobile industry, impacting the company's future revenue and earnings [80]. - The company generated total revenues of $336.3 million in 2024, compared to $320 million in 2023, indicating an overall growth of 5.4% [174]. - Revenues in the telematics services segment rose by $8.0 million from $234.5 million in 2023 to $242.5 million in 2024, or 3.4%, driven by an increase in average annual subscribers from 2,186,000 to 2,350,000 [211]. - Revenues in the telematics products segment increased from $85.4 million in 2023 to $93.8 million in 2024, or 9.7%, primarily due to higher unit sales [212]. Competition and Technological Challenges - The company faces significant competition in the telematics market, which could adversely affect its operational results if it fails to compete effectively [41]. - The rapid technological changes and the introduction of new competitive products may render the company's offerings less competitive, potentially leading to revenue declines [42]. - The effectiveness of telematics products is contingent on local law enforcement's ability to recover stolen vehicles, which can impact customer perception and revenue [43]. - The company competes on technology edge, functionality, and service availability across various markets [116]. Operational Risks and Challenges - The company outsources manufacturing to third parties, which poses risks related to timely product delivery and cost-effectiveness, potentially impacting revenues and profit margins [49]. - Expansion into new markets presents risks such as longer payment cycles and difficulties in enforcing agreements, which may impede revenue generation and growth strategy [54]. - The company relies on specific licenses and approvals from governmental authorities for operations, and any loss of these could significantly increase costs and reduce revenues [46]. - The company relies on GPS/GPRS technology, and any loss or increased costs associated with this technology could negatively impact future revenues and growth [55]. - A major cybersecurity breach could harm operations, potentially leading to data corruption and financial losses, which may not be covered by current insurance policies [56][57]. - Labor disputes in Brazil and Argentina could result in strikes, delaying revenue generation in those markets [58]. - The company has faced semiconductor shortages, leading to inventory orders placed 12 months in advance, which may increase product costs if shortages persist [59]. - Inflation and rising interest rates in key operating territories have caused additional financing and operational costs, potentially impacting results [60]. Market Presence and Subscriber Base - In 2024, 72% of the company's revenues were attributable to telematics services, with approximately 930,000 subscribers in Israel, 725,000 in Brazil, and 754,000 in other countries [89]. - The company provides fleet management services to approximately 474,000 end-users through corporate customers and 26,000 distributors as of December 31, 2024 [91]. - The company has installed 98 base sites in Israel, 124 in Sao Paulo, and 7 in Buenos Aires, but many operate without local building permits, which could affect network coverage [61][62]. - As of December 31, 2024, the company served approximately 474,000 corporate customers and individuals in the fleet management market [111]. - In 2024, the total subscriber base for telematics services reached 2,409,000, an increase of 7% from 2,252,000 in 2023 [173]. Financial Performance and Investments - The company had capital expenditures of $13.6 million in 2024, down from $14.2 million in 2023 and $26.5 million in 2022, primarily financed by cash flows from operations [86]. - Operating income rose from $66.0 million in 2023 to $71.2 million in 2024, reflecting a 7.9% increase [219]. - General and administrative expenses decreased from $56.6 million in 2023 to $56.2 million in 2024, or 1% [218]. - Financing income, net, improved to $0.1 million in 2024 compared to a net expense of $1.6 million in 2023 [222]. - Income tax expenses increased from $13.4 million in 2023 to $14.6 million in 2024, or 9.2% [224]. Regulatory and Compliance Issues - The company is considered a monopoly under Israeli law, which imposes restrictions that may hinder business growth [69]. - Changes in Israel's judicial system may deter foreign investment and lead to increased currency fluctuations and interest rates, adversely affecting business operations [68]. - The company is not in compliance with all relevant laws regarding the erection of transmission antennas in Israel and Brazil, which may lead to potential sanctions [148]. Corporate Governance and Ethical Practices - The company has a zero-tolerance policy for corruption and promotes ethical practices and corporate governance [135]. - The company has implemented a "Whistle Blower" procedure to prevent illegal activities and protect its reputation [135]. - The company aims to reduce accessibility gaps in professional services globally, focusing on fair social and economic opportunities [136]. - The company has adopted an environmental policy aimed at reducing waste and greenhouse gas emissions through product development [139].

Group 1 - The market has declined to levels seen during the COVID-19 pandemic, with tariffs impacting stock performance and almost all stocks experiencing a downturn [1] - Ituran Location and Control, a telematics company based in Tel Aviv, Israel, presents a potential investment opportunity amidst the market challenges [1] - Henriot Capital operates on a quant-driven investment model, emphasizing a disciplined approach to hedge fund management and prioritizing data-driven decisions over human bias [1] Group 2 - The investment strategy of Henriot Capital is characterized by the motto "invest first, investigate later," indicating a focus on immediate data-driven stock selection followed by subsequent research [1]

Company Overview - Ituran Location and Control Ltd. is a global leader in vehicle telematics, providing value-added location-based services including Stolen Vehicle Recovery and fleet management [4] - The company has a subscriber base exceeding 2.4 million, with a strong market position in Israel and Latin America [5] - Ituran operates in over 20 countries and employs approximately 3,000 people worldwide [5] Upcoming Event - Ituran will participate in the 15th Annual LD Micro Invitational investor conference in New York on April 9th and 10th, 2025 [1] - CEO Ariad Sommer will present to investors on April 10 between 9:00-9:25 am [2] - Management will be available for one-on-one meetings with investors throughout the conference [2][3] Industry Context - Ituran is recognized as the largest OEM telematics provider in Latin America [4] - The company is also involved in promoting smart mobility technology through its DRIVE startup incubator based in Tel Aviv [4]

Financial Data and Key Metrics Changes - Fourth quarter revenues were $82.9 million, a 7% increase compared to $77.8 million in the same quarter last year. In local currency, revenues grew by 11% year over year [20][21] - Subscription fee revenue for the quarter was $61.5 million, a 4% year-over-year increase, while product revenues were $21.3 million, a 16% increase year over year [20][21] - Net income for the fourth quarter was $13.8 million, or diluted earnings per share of $0.70, a 15% increase compared to $12 million or $0.60 per share in the same quarter last year [22] - For the full year 2024, revenues reached a record $336 million, a 5% increase over $320 million in 2023, with net income of $53.7 million, an 11% increase compared to $48.1 million in 2023 [23][25] Business Line Data and Key Metrics Changes - The subscriber base grew to 2,409,000 by the end of the fourth quarter, with an addition of 40,000 subscribers from the previous quarter [21] - Revenue from location-based service subscription fees accounted for 72% of total revenues, while product revenue made up 28% [23] Market Data and Key Metrics Changes - Geographic breakdown of revenues in the fourth quarter was as follows: Israel 52%, Brazil 25%, Rest of the world 23% [21] - The usage-based insurance business in Israel is gaining traction, contributing to strong subscriber growth [12] Company Strategy and Development Direction - The company aims to accelerate subscriber growth, projecting an increase to between 180,000 and 200,000 new subscribers in 2025, which is over 20% ahead of 2024 rates [8][15] - New initiatives include a joint venture in India with Lumax and a five-year contract with Nissan in Chile, indicating a focus on expanding partnerships with OEMs [9][10][11] - The company is also exploring opportunities in the motorcycle market, which significantly increases its total addressable market [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth despite currency fluctuations, noting that local operations are performing well [15][39] - The high car theft rate in Israel is driving demand for security systems, which is expected to contribute to growth in the region [33][34] Other Important Information - The board of directors increased the quarterly dividend payment by 25% from $8 million to $10 million, reflecting strong profitability and cash flow [13][27] - The company reported a net cash position of $77.3 million as of December 31, 2024, compared to $53 million at the end of 2023 [26] Q&A Session Summary Question: Impact of product mix on gross margin - Management indicated that gross margin is affected by the product mix sold across different regions, with volatility between quarters [30][31] Question: Subscriber growth expectations for 2025 - Management highlighted growth in Israel due to high car theft rates and increasing demand for security systems, as well as traction in the motorcycle segment in Brazil [33][36] Question: EBITDA expectations for 2025 - Management noted that currency volatility makes it challenging to provide meaningful EBITDA guidance, but they remain optimistic about subscriber growth [39][42] Question: Plans to increase subscription fees in 2025 - Management stated that pricing is always reviewed, but no new decisions have been made regarding fee increases at this time [43][44] Question: Contribution of OEMs to subscriber growth - Management clarified that while OEM growth is occurring, the majority of growth is still coming from the retail market [48][50] Question: Revenue contribution from new products - Management did not disclose specific revenue contributions from new products but emphasized ongoing advancements in technology [51][53] Question: ARPU growth expectations - Management indicated that while subscriber growth may lead to a lower ARPU due to new solutions and OEM contracts, the overall impact on total ARPU will be minimal [60][62]

Core Viewpoint - Ituran Location and Control Ltd. has declared a cash dividend of $0.50 per share, totaling approximately $10 million, reflecting a 25% increase in the quarterly dividend amount as per the updated dividend policy [1][2]. Financial Summary - As of December 31, 2024, the company's retained earnings were $226.1 million, which will decrease to $216.1 million after the dividend distribution [3]. - The company had a cash balance of $77.4 million prior to the payment of a $8 million dividend for Q3 2024, which was paid in January 2025 [3]. - Current assets (excluding cash and cash equivalents) totaled $119.8 million, while current liabilities amounted to $87.9 million as of December 31, 2024 [3]. Company Overview - Ituran is a leader in mobility technology, providing location-based services including stolen vehicle recovery and fleet management [4]. - The company has a subscriber base exceeding 2.4 million, with a strong market position in Israel and Latin America [5]. - Established in 1995, Ituran employs approximately 2,800 people globally, with offices in multiple countries including Israel, Brazil, and the United States [5].

Exhibit 99.1 ITURAN PRESENTS FOURTH QUARTER & FULL YEAR 2024 RESULTS Increases net subscriber-add expectations for 2025 significantly to 180-200,000, expecting to reach 2.6 million subscribers by year-end; Increases dividend policy by 25% to $10 million per quarter; AZOUR, Israel – February 26, 2025. Ituran Location and Control Ltd. (NASDAQ: ITRN) today announced its consolidated financial results for the fourth quarter 2024. Highlights of Full Year 2024 Highlights of the Fourth Quarter of 2024 Management C ...

Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Industry and Company Analysis - The finance experience of Dion spans multiple sectors including Telecom, Media and Entertainment, Hospitality, and Construction [1] - The approach to investment prioritizes cash flow as a critical factor for both companies and investors [1]