Ituran Location and Control (ITRN) LD Micro Main Event XIX Investor Conference summary

Market position and business model

• Serves over 2.5 million subscribers across OEM, insurance, finance, and retail segments, with a strong presence in Israel and Latin America.

• Offers a full suite of telematics services, including stolen vehicle recovery, fleet management, connected car, and UBI solutions.

• 70% of revenue is recurring, with high gross margins (65%) and strong cash flow, supporting a stable dividend policy.

• Maintains a global footprint, leveraging operational know-how and advanced technology, including AI and big data analytics.

• Business model is resilient to economic downturns due to natural hedging and demand linked to crime rates.

Customer segments and partnerships

• Works with major OEMs (GM, Nissan, BMW, Yamaha, Stellantis), insurance companies, finance/leasing firms, and retail customers.

• OEMs benefit from free trial periods and high renewal rates, with Ituran providing both hardware and services as needed.

• Insurance and finance companies use telematics to reduce risk and claims, with finance firms seeing increased sales points.

• Retail market, especially in Brazil, is a fast-growing segment due to high insurance premiums and low coverage rates.

• Recent agreements with Stellantis, BMW, and Yamaha expand reach in automotive and motorcycle markets.

Competitive advantages and technology

• Advanced algorithms enable vehicle recovery often before owners are aware of theft.

• Strong operational expertise in high-risk regions, such as rapid recovery in Israel and access to challenging areas in Brazil.

• Global presence allows for single-provider solutions for multinational clients.

• Technology detects accidents and unauthorized vehicle access, providing value-added services to OEMs and dealers.

• Big data from 2.5 million vehicles is monetized through sales to third parties, with potential for future growth.