Ituran Location and Control Ltd. (NASDAQ:ITRN) Q2 2023 Earnings Conference Call August 15, 2023 10:00 AM ET Company Participants Kenny Green - Investor Relations Eyal Sheratzky - Chief Executive Officer Udi Mizrahi - Deputy Chief Executive Officer and Vice President, Finance Eli Kamer - Chief Financial Officer Conference Call Participants Chris Reimer - Barclays Abba Horwitz - Old School Partners Fred Foulkes - Boston University Operator Ladies and gentlemen, thank you for standing by. Welcome to Ituran’s S ...

ITURAN PRESENTS ITS SECOND QUARTER 2023 RESULTS Record revenue contributed from recent strong subscriber growth Net subscriber growth in Q2 2023 of 47,000 AZOUR, Israel – August 15, 2023 – Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the second quarter of 2023. Highlights of the Second Quarter of 2023 Management Comment Eyal Sheratzky, Co-CEO of Ituran said, "We are very pleased with the results of the second quarter of 2023, especially with our hig ...

Financial Data and Key Metrics - Q1 2023 revenue was $79.5 million, a 10.3% increase compared to $72.1 million in Q1 2022 [11] - Subscription revenue for Q1 2023 was $55.8 million, an 11% increase year-over-year [11] - Net income for Q1 2023 was $11.4 million, or 14.3% of revenue, compared to $8.7 million, or 12.1% of revenue, in Q1 2022 [12] - EBITDA for Q1 2023 was $20.8 million, or 26.2% of revenue, an 8% increase compared to $19.3 million in Q3 2022 [28] - Cash flow from operations for Q1 2023 was $17.4 million [12] - The company had $33.5 million in cash and marketable securities, with $9.2 million in debt, resulting in a net cash position of $24.3 million as of March 31, 2023 [12] Business Line Performance - The subscriber base reached 2,115,000 as of March 31, 2023, with a net addition of 49,000 subscribers in Q1 (44,000 from the aftermarket and 5,000 from OEM) [11][27] - Product revenue for Q1 2023 was $23.7 million, an 8% increase compared to Q1 2022 [28] - Subscription gross margin reached a record 58.1% in Q1 2023, reflecting improved operating leverage [23] Market Performance - Geographic revenue breakdown for Q1 2023: Israel (51%), Brazil (24%), and the rest of the world (25%) [28] - The Israeli market saw a significant increase in demand for stolen vehicle recovery services, driven by insurance companies [9] Strategy and Industry Competition - The company is confident in its subscriber growth trajectory, expecting to add between 180,000 to 200,000 net new subscribers annually [8] - New verticals, such as finance segments and usage-based insurance (UBI), are contributing to subscriber growth [9] - The company anticipates continued growth in 2023 and beyond, driven by operational leverage and strong performance in traditional aftermarket and OEM businesses [10][24] Management Commentary on Operating Environment and Future Outlook - Management highlighted the positive impact of operational leverage, with new subscribers adding to revenue without significant cost increases [23] - The company expects continued growth in subscription revenue and profitability, supported by its 2 million-plus subscriber base [24] - Despite global economic slowdown concerns, the company remains optimistic about its growth prospects [24] Other Important Information - A dividend of $3 million was declared in Q1 2023 [29] - The company repurchased 54,000 shares for $1.2 million under its share buyback program [29] Q&A Session Summary Question: Can you provide details on the uptick in OEM subscribers this quarter? [32] - The increase in OEM subscribers is attributed to recovery and seasonality, with expectations of continued growth in the coming year [33] Question: Can you discuss operating expenses and strategies to manage them? [15] - Operating expenses are expected to stabilize as revenue growth outpaces cost increases, with operating leverage benefiting margins [34] Question: What is the outlook for subscriber growth in the coming quarters? [43] - The company reaffirmed its guidance of 180,000 to 200,000 net new subscribers annually, driven by growth in new and traditional segments [43] Question: Should we expect a slowdown in fleet management subscriber growth? [46] - While percentage growth may decrease due to the larger subscriber base, absolute growth in fleet management subscribers is expected to continue [46][47] Question: Are there specific sales and marketing projects driving the increase in expenses? [37] - Sales and marketing expenses remained stable, with no significant changes in Q1 2023 [37][38]

Exhibit 99.1 ITURAN PRESENTS ITS FIRST QUARTER 2023 RESULTS Net subscriber growth in Q1 2023 of 49,000 Expects current strong subscriber net adds to contribute to accelerated revenue growth in 2023 AZOUR, Israel – May 24, 2023 – Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the first quarter of 2023. Highlights of the first quarter of 2023 Management Comment Eyal Sheratzky, Co-CEO of Ituran said, "We are very pleased with the results of the first qua ...

Financial Performance - Total revenues for 2022 reached $293.07 million, a 8.2% increase from $270.88 million in 2021[32] - Telematics services revenue grew to $209.56 million in 2022, up 10.5% from $189.65 million in 2021[32] - Net income attributable to company stockholders increased to $37.10 million in 2022, up 8.3% from $34.26 million in 2021[32] - Gross profit margin improved to 46.9% in 2022 from 47.2% in 2021[32] - Dividend declared per share decreased to $0.56 in 2022 from $0.90 in 2021[33] - Total revenues for Telematics services in 2022 were $209.6 million, compared to $189.6 million in 2021 and $182.9 million in 2020[210] - Total revenues for Telematics products in 2022 were $83.5 million, compared to $81.3 million in 2021 and $62.7 million in 2020[210] - Israel generated $103.3 million in Telematics services revenue in 2022, up from $96.5 million in 2021 and $85.1 million in 2020[210] - Brazil generated $66.7 million in Telematics services revenue in 2022, up from $55.2 million in 2021 but down from $60.0 million in 2020[210] Subscriber and Market Growth - Subscribers of telematics services reached 2.066 million in 2022, a 9.8% increase from 1.881 million in 2021[34] - The company's telematics services accounted for 71.5% of its revenues in 2022, with approximately 738,000 subscribers in Israel, 558,000 in Brazil, and 770,000 in other countries as of December 31, 2022[103] - The company had approximately 738,000 subscribers in Israel as of December 31, 2022[125] - In Brazil, the company had approximately 558,000 subscribers as of December 31, 2022[125] - The company had approximately 770,000 subscribers in countries excluding Israel and Brazil as of December 31, 2022[126] - The company's telematics services subscriber base grew to 2,066,000 in 2022, up from 1,881,000 in 2021, with Israel contributing 738,000 subscribers[208] - The company's Brazilian market continues to show growth potential due to high car theft rates and demand for telematics services[205] Operational Costs and Expenses - Research and development expenses increased to $16.85 million in 2022, up 19.5% from $14.10 million in 2021[32] - Cash and cash equivalents decreased to $28.17 million in 2022 from $54.71 million in 2021[33] - Total assets stood at $290.93 million in 2022, slightly down from $293.02 million in 2021[33] - Capital expenditures in 2022 were $26.5 million, primarily for operational equipment, compared to $16.6 million in 2021 and $10.2 million in 2020[100] - Telematics services cost of revenues includes staffing, maintenance, operation of control centers, and communication costs[213] - Telematics products cost of revenues primarily consists of production costs from third-party manufacturers and installation fees[214] - Research and development expenses are primarily for salaries, materials, and overhead related to telematics product design and development[215] - Selling and marketing expenses include advertising, salaries, commissions, and promotional expenses[216] - General and administrative expenses consist of salaries, bonuses, and accounting costs[217] Risks and Challenges - The company relies on third-party intellectual property licenses for SVR services and telematics products, and the loss of these licenses could adversely affect revenues[50] - The company's telematics products depend on government-issued radio frequency licenses, and third-party use of these frequencies could disrupt operations and increase costs[51] - The company's SVR services business model depends on specific market conditions, and the absence of these conditions could harm revenues and growth potential[52] - The company outsources telematics product manufacturing to third parties, and any disruption in manufacturing could impact revenues and profit margins[54] - The company faces potential annual costs of up to $4 million USD due to the cancellation of Generation 2.0 technology in Israel starting in 2026[58] - The company has increased inventory orders for semiconductors to 12 months in advance due to shortages, leading to higher product costs[67] - Inflation and rising interest rates in key operating territories have increased financing and operational costs, potentially impacting financial results[68] - The company is subject to a class action lawsuit in Israel claiming damages of approximately $85.2 million USD, which could significantly impact operations if unsuccessful[71] - The company operates base sites in Israel, Brazil, and Argentina without full compliance with local building permits, risking enforcement actions that could disrupt network coverage[74] - Currency fluctuations in multiple operating countries may result in valuation adjustments and negatively impact financial results[76] - The company is considered a monopoly in Israel under the Israeli Antitrust Law, potentially facing financial sanctions of up to NIS 100 million (approximately $28.4 million) or 8% of annual revenues for breaches[81] - In Argentina, most of the company's base sites operate without local Municipality permits, risking fines and potential closures[177] Acquisitions and Investments - The company completed the acquisition of Road Track Holding S.L. (now Ituran Spain Holdings S.L.) for a total cost of $103 million, combining shares and cash[98] - The company holds a 16.9% share in Bringg, valued at $1 billion following a $100 million funding round in 2021[183] - The company invested $1.7 million in SaverOne, holding approximately 3.2% of its share capital, with a fair value of $0.2 million as of December 31, 2022[184][185][186] Geographic and Market Operations - The company operates in multiple markets, including Israel, Brazil, Argentina, Mexico, Ecuador, Colombia, the United States, and Canada, with additional services provided through distributors[96] - The company's "Connected Car" service is operational in Israel, Brazil, Colombia, Mexico, Argentina, and Ecuador[135] - The company's "Usage Based Insurance" (UBI) service is implemented and marketed by the majority of insurance companies in Israel[136] - The company's stolen vehicle recovery system operates in Israel, Brazil, Mexico, Colombia, Ecuador, and Argentina, with private enforcement units in these regions[114] - The company operates in multiple countries including Israel, the US, Brazil, Argentina, Mexico, Ecuador, and Colombia with a diverse range of competitors[148] - In Colombia, the company pays 2.2% of annual gross income to MINTIC and 0.1% to CRC for telecommunication spectrum usage[179] Technology and Product Development - The company's technologies, originally developed for the Israeli Defence Forces, enable precise and secure high-speed data transmission and analysis for telematics services[101] - The company's telematics products are used for applications such as automatic vehicle location, stolen vehicle recovery, and fleet management[112][113] - The company's fleet management system includes features such as real-time vehicle status indicators, diagnostic alerts, and remote monitoring of data[117] - GPS technology faces limitations in urban areas, buildings, and underground spaces due to signal interference and noise[145] - Terrestrial network triangulation systems offer precise vehicle location without line-of-sight requirements, reducing stolen vehicle recovery times to minutes[147] - The stolen vehicle recovery system consists of a telematics end-unit, a network of base stations, and a 24-hour manned control center[154] Regulatory and Compliance - Regulatory compliance requires licenses for RF technology, building permits, product-specific approvals, and general commerce licenses in various countries[162][163][164] - Frequency licenses in Israel and Brazil are subject to renewal and potential interference from other operators, with ongoing negotiations in Argentina to resolve frequency conflicts[167][168][169] - The company operates 98 base stations in Israel, 147 in Brazil, and 37 in Argentina, with monthly lease rates ranging from $200 to $2,200 per site[200] ESG and Corporate Governance - The company is committed to ESG practices, including ethical business conduct, anti-corruption policies, and diversity initiatives[156][157][158][159][160] - The company holds trademarks such as "Ituran" and "Mr. Big" registered in multiple jurisdictions[155] Real Estate and Leasing - The company leases 64,750 square feet of office space in Israel for $1,323,000 annually, with the lease ending in April 2029[192] - In Argentina, the company leases 8,611 square feet of office space for AR$12,772,992 ($98,253) annually[193] Customer and Service Metrics - The company provides fleet management services to approximately 504,000 end-users through corporate customers and 24,000 distributors as of December 31, 2022[106] - The company's stolen vehicle recovery (SVR) services are used by individual vehicle owners, car manufacturers, and insurance companies, with some insurance companies directly subscribing on behalf of their customers[105] - The company's value-added services include 24-hour on-demand navigation guidance, traffic reports, and concierge services in Israel, Argentina, Ecuador, Colombia, and Brazil[107] - The company provided fleet management services to approximately 504,000 corporate customers and individuals as of December 31, 2022[132] - The company anticipates at least 90% of subscription fees from the prior quarter will recur in the following quarter, based on a historical average churn rate of 3% per month[211] Manufacturing and Supply Chain - Manufacturing operations are conducted in Israel and China, with ISO 9001 certification and high automotive standards ensuring product reliability[150] - The company relies on single or limited sources for several components, maintaining strong supplier relationships to secure favorable pricing and access to latest technologies[151] - The company's telematics products segment includes short- and medium-range two-way telematics products, integral to its telematics services[204]

Ituran Location and Control Ltd. (NASDAQ:ITRN) Q4 2022 Earnings Conference Call February 28, 2023 9:00 AM ET Company Participants Ehud Helft - EK Global Investor Relations Eyal Sheratzky - Co-CEO Eli Kamer - CFO Udi Mizrahi - Deputy CEO and VP, Finance Conference Call Participants Chris Reimer - Barclays Gavin Kennedy - Jefferies Abba Horovitz - Old School Partners Operator Ladies and gentlemen, thank you for standing by. Welcome to the Ituran Fourth Quarter 2022 Results Conference Call. [Operator Instruc ...

Exhibit 99.1 ITURAN PRESENTS RECORD SUBSCRIBER GROWTH, RECORD REVENUE & RECORD EBITDA IN ITS FULL YEAR 2022 RESULTS Subscriber-adds in Q4 of 46,000 and 185,000 for FY 2022 Expects recent strong subscriber growth to contribute to accelerated growth in 2023 AZOUR, Israel – February 28, 2023 – Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the fourth quarter and full year of 2022. Revenues for the fourth quarter of 2022 were $74.9 million, an increase of ...

Ituran Location and Control Ltd. (NASDAQ:ITRN) Q3 2022 Earnings Conference Call November 21, 2022 9:00 AM ET Â Company Participants Eyal Sheratzky - Chief Executive Officer Eli Kamer - Executive Vice President, Chief Financial Officer Kenny Green - EK Global Investor Relations Conference Call Participants Chris Reimer - Barclays Abba Horwitz - OSP Operator Ladies and gentlemen, thank you for standing by. Welcome to the Ituran third quarter 2022 results conference call. All participants are at present in lis ...

Exhibit 99.1 AZOUR, Israel – November 21, 2022 – Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced its consolidated financial results for the third quarter of 2022. Highlights of the Third Quarter of 2022 Management Comment Eyal Sheratzky, Co-CEO of Ituran said, "We are very proud to have crossed this significant milestone for our company of 2 million subscribers. Over the past four quarters our subscriber growth has accelerated dramatically and is the culmination of many years effort in addi ...

Ituran Location and Control Ltd. (NASDAQ:ITRN) Q2 2022 Earnings Conference Call August 29, 2022 9:00 AM ET Company Participants Eyal Sheratzky - Chief Executive Officer Eli Kamer - Executive Vice President, Chief Financial Officer Ehud Helft - GK Global Investor Relations Conference Call Participants Chris Reimer - Barclays Gavin Kennedy - Jefferies Boris Schneider - More Mutual Funds. Abba Horwitz - OSP Operator Ladies and gentlemen, thank you for standing by. Welcome to the Ituran second quarter 2022 resu ...