Ituran Location and Control Ltd (ITRN) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran third quarter of 2024 results conference call. (Operator Instructions) All As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Ituran'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.ituran.co.il.

女士們先生們，謝謝你們的支持。歡迎參加 Ituran 2024 年第三季業績電話會議。（操作員說明） 全部 謹此提醒，本次會議正在錄製中。現在你們應該已經收到公司的新聞稿了。如果您尚未收到，請致電 1-212-378-8040 聯絡 EK 全球投資者關係部的 Ituran 投資者關係團隊，或在公司網站 www.ituran.co.il 的新聞部分查看。

I will now hand the call over to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin?

我現在會把電話轉給 EK 全球投資者關係部的 Kenny Green 先生。格林先生，您想開始嗎？

Thank you, operator. Good day to all of you and welcome to Ituran's conference call to discuss the third quarter 2024 results. I would like to thank Ituran's management for hosting this call. With me today are Mr. Eyal Sheratzky, CEO; Mr. Udi Mizrahi, Deputy CEO and VP Finance; and Mr. Eli Kamer, CFO of Ituran's.

謝謝你，接線生。祝大家美好的一天，歡迎參加 Ituran 的電話會議，討論 2024 年第三季的業績。我要感謝 Ituran 的管理階層主持這場電話會議。今天與我在一起的有執行長 Eyal Sheratzky 先生； Udi Mizrahi 先生，副執行長兼財務副總裁；以及 Ituran 財務長 Eli Kamer 先生。

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 Harbor statement in today's press release also covers the content of this conference call. And now, Eyal, would you like to begin, please?

Eyal 將首先總結本季的業績，然後由 Eli 總結財務狀況。然後我們將開始問答環節。我想提醒大家的是，今天新聞稿中的安全港聲明也涵蓋了這次電話會議的內容。現在，埃亞爾，你願意開始嗎？

Thank you, Kenny. I'd like to welcome all of you to our third quarter 2024 call and thank you for joining us today. We are pleased with our third quarter results, presenting steady growth in revenue and profit across the geographies in which we operate. We are also happy to report a high level of 40,000 net subscribers in the quarter, which came in at the top end of our expectations.

謝謝你，肯尼。歡迎大家參加我們的 2024 年第三季電話會議，並感謝你們今天加入我們。我們對第三季的業績感到滿意，我們經營所在地區的營收和利潤均穩定成長。我們也很高興地報告本季淨訂戶數量高達 40,000 名，超出了我們的預期。

The results were achieved despite the negative impact of the US dollar strength in the quarter, which lowered our local currency denominated results when presented in US dollars. In fact, in local currency terms, our growth in most of the geographies in which we operate was even higher.

儘管本季度美元走強帶來了負面影響，導致我們以當地貨幣計價的美元業績有所下降，但仍取得了上述業績。事實上，以當地貨幣計算，我們業務所在的大多數地區的成長甚至更高。

We increased our subscriber base by a net of 40,000 in the quarter at the high end of our expectation, which is between 35,000 and 40,000. Our ongoing success reflects continued demand for a location-based product and telematic services, as well as traction from the new initiatives and services we continue to launch in the various geographies in which we operate.

本季我們的訂戶數量淨增加 40,000 人，達到我們預期的上限，即 35,000 至 40,000 人之間。我們持續的成功反映了對基於位置的產品和遠端資訊處理服務的持續需求，以及我們在營運所在的各個地區不斷推出的新舉措和服務的吸引力。

Last week, we announced a five-year contract with Nissan Chile. We have a long-term partnership with Nissan, one of the world's leading automakers and OEMs, and have partnered with them for many years in Mexico. Under our new contract with them, it will provide Nissan Chilean customers with a vehicle location unit pre-installed in three new vehicle models, which potentially is tens of thousands of vehicles over the years. We will also provide telematics and stolen vehicle recovery services.

上週，我們宣布與智利日產簽訂為期五年的合約。我們與全球領先的汽車製造商和原始設備製造商之一日產建立了長期合作夥伴關係，並在墨西哥與他們合作多年。根據我們與他們的新合同，它將為日產智利客戶提供預裝在三款新車型中的車輛定位單元，這些年可能會增加數萬輛汽車。我們還將提供遠端資訊處理和被盜車輛追回服務。

Following a Nissan Chile customer's car purchase, they will enjoy a year's free trial of Ituran services paid by Nissan, after which they will have the option to continue with their service, which they will pay to Nissan and Ituran. Customers will have access to comprehensive Nissan-branded on-vehicle application. Additionally, the customer will also have access to Ituran Chile's 24-hour contract center, assistance in the event of vehicle theft, and emergency services such as breakdown assistance and towing.

日產智利客戶購買汽車後，將享受由日產支付的 Ituran 服務一年免費試用，之後他們可以選擇繼續使用其服務，並向日產和 Ituran 支付費用。客戶將可以使用全面的日產品牌車載應用程式。此外，客戶還可以使用 Ituran Chile 的 24 小時合約中心，在車輛被盜時獲得援助，以及故障援助和拖車等緊急服務。

This new agreement in Chile is the culmination of well over a year's discussions on how we can replicate our strong service for Nissan in Mexico and bring this service to the customers in Chile. This new agreement shows the very strong satisfaction that Nissan has from our cooperation in Mexico, and I believe that this will enable us to expand to additional regions with Nissan in the future.

智利的這項新協議是我們一年多來討論如何在墨西哥複製我們為日產提供的強大服務並將這項服務帶給智利客戶的討論的結晶。這項新協議表明日產對我們在墨西哥的合作非常滿意，我相信這將使我們將來能夠與日產擴展到更多地區。

We are also aiming to build a strong aftermarket business in Chile, leveraging the strong experience we have in this market in many of the other regions in which we operate. 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.

我們還計劃利用我們在智利開展業務的許多其他地區在該市場上擁有的豐富經驗，在智利建立強大的售後市場業務。除了我們已經合作過的製造商之外，我們還與一些主要的 OEM 汽車製造商進行積極的討論。我們希望引進新的 OEM 合作夥伴，並擴大我們向南美洲其他國家提供現有 OEM 的服務。我們透過這項舉措看到了強勁的長期成長潛力。

From a financial perspective, even with the currency headwinds throughout the past year, we remain on track to meet our targets. We will trade that for 2024. Our guidance is fully EBITDA of between $90 million and $95 million. We continue to expect that for the quarter, subscriber growth will be between 35,000 and 40,000 net new subscribers.

從財務角度來看，即使在過去一年中遇到了貨幣逆風，我們仍有望實現我們的目標。我們將在 2024 年進行交易。我們的指導是 EBITDA 為 9000 萬至 9500 萬美元。我們繼續預計本季的淨新訂戶數量將增加 35,000 至 40,000 名。

Given the strong net cash position of over $67 million, our ongoing cash generation, which came to $17.2 million in the quarter, we continue to share a strong quarterly dividend of $8 million with our shareholders. This dividend is at the same level that we issued last quarter, and 60% increased over that of the year-ago quarter. Our dividend yield, on an annualized basis, represents a return of over 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 Ituran.

鑑於超過 6700 萬美元的強勁淨現金頭寸以及我們持續產生的現金（本季度達到 1720 萬美元），我們將繼續與股東分享 800 萬美元的強勁季度股息。此次股利與我們上季發放的水平相同，比去年同期增加了 60%。我們的年化股息殖利率超過 6%，對於一家實力雄厚、穩定的公司來說，這是非常可觀的回報。我們將持續派發股利視為對股東對 Ituran 的忠誠和長期支持的回報。

In summary, we remain pleased with Ituran's performance. Our consistently growing subscriber growth will continue to translate into increased revenue, improved margins, and better profitability growth over the long term due to the operating leverage inherent to our business. We aim to enhance our subscriber growth, and we are currently engaged in active discussions with a number of major OEM car manufacturers, both current and new potential customers, to bring our services to additional countries in South America, as well as new OEM customers across all our regions. I look forward to updating you on our progress again in the coming quarter.

總而言之，我們對 Ituran 的表現仍然感到滿意。由於我們業務固有的營運槓桿，我們持續成長的用戶成長將繼續轉化為長期收入的增加、利潤的提高和獲利能力的更好成長。我們的目標是促進我們的用戶成長，目前我們正在與許多主要OEM 汽車製造商（包括現有客戶和新的潛在客戶）進行積極討論，以將我們的服務帶到南美洲的其他國家以及各地的新OEM 客戶。我期待在下個季度再次向您通報我們的進展。

And with that, I hand over to Eli. Eli, please go ahead.

就這樣，我把任務交給了伊萊。伊萊，請繼續。

Thanks, Eyal. I will provide a short summary of the financial results. You can find the more detailed results that we issued in the press release earlier today. Third quarter revenues were $83.5 million, a 3% increase compared with revenues of $81.1 million last year. The strengthening of the US dollar in the third quarter versus the various local currencies in which Ituran operates in impacted the revenues when translated into US dollars.

謝謝，埃亞爾。我將提供財務表現的簡短摘要。您可以在今天早些時候的新聞稿中找到我們發布的更詳細的結果。第三季營收為 8,350 萬美元，比去年同期的 8,110 萬美元成長 3%。第三季美元兌 Ituran 營運所用的各種當地貨幣的走強影響了換算成美元後的收入。

In local currencies, revenues grew by 7% year-over-year. Revenues from subscription fees in the quarter were $59.6 million, a decrease of 1% year-over-year, and in local currencies, an increase of 4%. World bank revenues in the quarter were $23.9 million, an increase of 14% year-over-year, and in local currencies, an increase of 15%.

以當地貨幣計算，營收年增 7%。本季訂閱費收入為 5,960 萬美元，年減 1%，以當地貨幣計算成長 4%。世界銀行本季營收為 2,390 萬美元，年增 14%，以當地貨幣計算成長 15%。

The subscriber base expanded to $2,369,000 by the end of the third quarter, an increase of $40,000 from the end of the previous quarter. The geographic breakdown of revenues in the third quarter was as follows. Israel 53%, Brazil 23%, rest of world 24%. EBITDA for the quarter was $23.3 million or 27.9% of revenues, an increase of 4% compared with EBITDA of $22.5 million or 27.8% of revenues in the third quarter of last year.

截至第三季末，用戶基礎擴大至 2,369,000 美元，比上一季末增加 40,000 美元。第三季營收的地域分佈如下。以色列 53%，巴西 23%，全球其他地區 24%。本季 EBITDA 為 2,330 萬美元，佔營收的 27.9%，比去年第三季的 EBITDA 2,250 萬美元，佔營收的 27.8% 成長了 4%。

In local currencies, EBITDA grew 9% year-over-year. Net income for the third quarter was $13.7 million or diluted earnings per share of $0.69, an increase of 9% compared to $12.5 million or diluted earnings per share of $0.63 in the third quarter of last year.

以當地貨幣計算，EBITDA 年成長 9%。第三季淨利為 1,370 萬美元，或攤薄後每股收益為 0.69 美元，較去年第三季的 1,250 萬美元或攤薄後每股收益 0.63 美元增長 9%。

In local currency, net income grew 14% year-over-year. Cash flow from operations for the third quarter of 2024 was $17.2 million. As of September 30, 2024, the company had cash, including multiple securities, of $67.5 million and a debt of $0.2 million, amounting to a net position of $67.3 million. This is compared with cash, including multiple securities, of $53.6 million and a debt of $0.6 million, amounting to a net cash position of $53 million as of year-end 2023.

以當地貨幣計算，淨利年增14%。2024 年第三季營運現金流為 1,720 萬美元。截至 2024 年 9 月 30 日，該公司擁有現金（包括多種證券）6,750 萬美元和債務 20 萬美元，淨部位為 6,730 萬美元。相較之下，截至 2023 年底，現金（包括多種證券）為 5,360 萬美元，債務為 60 萬美元，淨現金部位為 5,300 萬美元。

The Board of Directors declared dividends for the quarter of $8 million. The current dividend takes into account the company's continuing strong profitability, ongoing positive cash flow, and strong balance sheet. And with that, I'd like to open the call for the question-and-answer session.

董事會宣布本季​​股息為 800 萬美元。目前的股息考慮了公司持續強勁的獲利能力、持續的正現金流和強勁的資產負債表。接下來，我想開始問答環節。

(Operator Instructions) The first question is from Sergey Glinyanov from Freedom Capital. Please go ahead.

（操作員說明）第一個問題來自 Freedom Capital 的 Sergey Glinyanov。請繼續。

Hello, everyone. So it's obviously resilient results. But we see price company decline in service segment might be caused not only by currency fluctuation but something else. Thank you.

大家好。所以這顯然是有彈性的結果。但我們認為價格公司在服務領域的下滑可能不僅是由貨幣波動造成的，還有其他原因。謝謝。

Service revenues, as you mentioned, you are talking comparing to last year or comparing to the previous quarter?

正如您所提到的，服務收入是與去年相比還是與上一季相比？

Comparing previous year.

與往年相比。

The previous year, yes. So service revenues did went down by almost $600,000. But the main reason is the currency exchange effect. So if you exclude it, you are getting only the currency on that was about an effect of $3 million. So basically, their service revenues went up as expected.

前一年，是的。因此，服務收入確實下降了近 60 萬美元。但主要原因是貨幣兌換效應。因此，如果您排除它，您只能得到大約 300 萬美元的貨幣影響。所以基本上，他們的服務收入如預期成長了。

Okay. Thank you. They also say operation margin, better operation margin due to G&A decrease. What are the main components which impacted on it?

好的。謝謝。他們也表示，由於一般費用和行政費用的減少，營運利潤率有所提高。對其產生影響的主要因素有哪些？

The margin for the third quarter operating margins were 22% comparing to last year was 20.8%. So the margin went up. And the main reason is the operating leverage in the business model.

第三季營業利益率為 22%，去年同期為 20.8%。所以利潤率上升了。而主要原因就是商業模式中的經營槓桿。

Okay, got it. You mentioned that recently you've seen an agreement with Nissan Chile. May any further agreements boost product revenue sales?

好的，明白了。您提到最近您與日產智利公司達成了一項協議。任何進一步的協議是否可以促進產品收入銷售？

The contract is a typical contract that we have for many years with Nissan in Mexico. Of course, Chile is a smaller market than Mexico. But still, since it's a longer term contract, we are talking about 10,000 of new customers slash subscribers because the contract includes hardware and services that Nissan paying directly to us. Add to that our experience with renewals that allow us to extend the contract also with the renewals to a higher profits and profitability along the years.

該合約是我們與墨西哥日產公司多年來簽訂的典型合約。當然，智利的市場比墨西哥小。但是，由於這是一份長期合同，我們正在談論 10,000 名新客戶大幅削減訂戶，因為該合約包括日產直接向我們支付的硬體和服務。除此之外，我們在續約方面的經驗使我們能夠透過續約來延長合同，從而逐年獲得更高的利潤和獲利能力。

Okay, thank you a lot. That's all my questions.

好的，非常感謝。這就是我的所有問題。

The next question is from Alan Klee from Maxim Group. Please go ahead.

下一個問題來自 Maxim Group 的 Alan Klee。請繼續。

Yes, hello. Could you talk a little like your partnerships with potential ones or whatever with automakers, financing companies and auto insurance companies? What would you say are the major hurdles to get through to get someone to sign up? And what are the most compelling arguments that you can make to them for someone to decide to sign up? Thank you.

是的，你好。您能否談談您與潛在合作夥伴的合作關係，或與汽車製造商、金融公司和汽車保險公司的合作關係？您認為讓某人註冊要克服的主要障礙是什麼？您可以向他們提出哪些最有說服力的論點，讓他們決定註冊？謝謝。

There are several reasons that the let's call it the sales cycle in this B2B segment is long. First of all, and this is the basic is a marketing or strategy of each one of these brand or industries leaders that you mentioned. If we consider a car brand manufacturer, which is a very international, or if it's a bank such as Santander, or its insurance companies that can be again, MapRed, Generali, HDI, et cetera.

B2B 細分市場的銷售週期較長有幾個原因。首先，這是您提到的每個品牌或行業領導者的行銷或策略的基礎。如果我們考慮一個非常國際化的汽車品牌製造商，或者如果它是一家銀行，如桑坦德銀行，或其保險公司，也可以是 MapRed、Generali、HDI 等。

So first of all, it's their decision to go and offer and invest because they have to pay in the end of the day for those solutions in their strategy. So this is their own decision. Of course, we have a strong will here to convince them that it will be something with benefits.

因此，首先，他們決定提供和投資，因為他們最終必須為策略中的這些解決方案付費。所以這是他們自己的決定。當然，我們有強烈的意願讓他們相信這會帶來好處。

Second, once they decide they have to choose the right partner, and then we get into technology aspect, installations, facilities, and how it's spread around large regions such as Brazil, Mexico, and other countries. So this takes a lot of time, it's good validation, it includes pilots.

其次，一旦他們決定必須選擇合適的合作夥伴，然後我們就會進入技術面、裝置、設施以及它如何在巴西、墨西哥和其他國家等大地區傳播。所以這需要很多時間，這是很好的驗證，其中包括試點。

And third is how the contract looks like. Then there is a negotiation that takes time. Usually, customers want to pay less, suppliers want to get more, there are the KPIs, et cetera. So when you take these three aspects, it's taking a long time.

第三是契約的形式。然後就是需要時間的談判。通常，客戶希望支付更少的費用，供應商希望獲得更多的費用，還有 KPI 等等。所以當你把這三個面向都考慮進去的時候，是需要很長時間的。

And the last one, which is another thing that we should create confidence when a company such as Nissan has to attach their brand and their large marketing expenses with a brand of a supplier like Ituran. Because everybody knows in Mexico, for example, that we are the supplier and every that drive a Nissan car. And as a problem, it's a Nissan problem.

最後一點，當像日產這樣的公司必須將自己的品牌和巨額行銷費用與伊圖蘭這樣的供應商的品牌聯繫在一起時，我們應該建立信心。因為例如在墨西哥，每個人都知道我們是供應商，每個駕駛日產汽車的人都知道我們是供應商。作為一個問題，這是日產的問題。

So they have to know that they attach their brand to a brand which they can trust, that it will not downgrade their own brand. As this is one of the most important thing that we are very, very, I think, happy with and respect. I hope I answered.

所以他們必須知道，他們將自己的品牌依附在一個他們可以信任的品牌，這不會降低他們自己的品牌。因為我認為這是我們非常非常高興和尊重的最重要的事情之一。我希望我回答了。

Thank you. Yeah, that was great. Could you talk about some of the bigger countries that you're in? What is about the environment there that makes it attractive for your product? And are there other countries that you see as big opportunities that you also see the setup positive?

謝謝。是的，那太好了。您能談談您所在的一些較大的國家嗎？那裡的環境對您的產品有何吸引力？您是否認為其他國家有巨大的機遇，並且您也認為這種設定是正面的？

There is -- the basic for us is that we have a lot of experience and we have a lot of, let's say, a large operation and our brand is strong in almost most of the countries in Latin America. This is something very important. Then the needs in those countries is stronger. The security people are more, have more security problems. They need more -- I would say, someone or a solution that will provide them more confidence. And this is the main reason. This is, I would say, the main driver.

對我們來說，最基本的是我們擁有豐富的經驗，我們有很多，比如說，大型業務，而且我們的品牌在拉丁美洲的幾乎大多數國家都很強大。這是非常重要的事。那麼這些國家的需求就更強烈。保全人員越多，安全問題就越多。他們需要更多——我想說，需要一個人或一個解決方案來為他們提供更多信心。這是主要原因。我想說，這是主要驅動力。

Then each country has a different mentality. In Brazil, for example, most of the people cannot afford themselves a full insurance, as an example. So we found a solution like the ICS, which is kind of Ituran with insurance. And in that case, we are selling something very unique, which is only a car theft insurance, monthly payment. And this is something that allowed a large segment that do not insure his car. And on the other end, it's a touch other insurance companies to do it with us and not create cannibalism for their main business.

那麼每個國家都有不同的心態。例如，在巴西，大多數人無法負擔全額保險。所以我們找到了像 ICS 這樣的解決方案，這是一種有保險的 Ituran。在這種情況下，我們銷售的東西非常獨特，這只是汽車防盜保險，按月付款。這使得很大一部分人不為自己的汽車投保。另一方面，其他保險公司與我們合作而不是對他們的主要業務造成蠶食，這也是一種觸動。

And also, when you talk about, if we go to other segments, again, which is the car manufacturers or car dealers, they want to offer and to show their customer that they take care for their security. They care for their car, even after they took it out from the dealer. So this is the reason why Latin America, or I would say more globally emerging market, are a fertile ground for Ituran businesses.

而且，當你談到時，如果我們再次進入其他細分市場，即汽車製造商或汽車經銷商，他們希望向客戶展示他們關心他們的安全。他們保養自己的汽車，即使是從經銷商取出汽車後也是如此。這就是為什麼拉丁美洲，或我想說的全球新興市場，是 Ituran 企業的沃土的原因。

Thank you. My last question is, you're involved in usage-based insurance. And can you talk about what you do and where you see the opportunity there?

謝謝。我的最後一個問題是，您參與了基於使用的保險。您能談談您的工作以及在哪裡看到的機會嗎？

It comes from a basic idea that as much as a driver drives more mileage, or his driving skills are better and more secure, so insurance companies will have less expenses because they will have less accidents and they will have less payment of claims. So on the other end, insurance companies can get something which they can customize the premium. So when you attach these two, I think, components, it's something that we thought going to be very interesting for insurance companies.

它源自於一個基本思想，即駕駛員駕駛的里程越多，或者他的駕駛技術越好、越有保障，那麼保險公司的費用就會減少，因為他們的事故會減少，索賠的支付也會減少。因此，另一方面，保險公司可以獲得一些可以客製化保費的東西。因此，我認為，當你附加這兩個組件時，我們認為保險公司會非常感興趣。

It takes also time. It's a longer sell cycle because we know that insurance companies is something very traditional, very large, very large corporates. So it takes time to change from the traditional methods to something which is more customized, depend on technology. I am happy that in Israel, we succeeded to do it about two, 2.5 years ago, by convincing the first insurance company that adopt our solution.

也需要時間。這是一個較長的銷售週期，因為我們知道保險公司是非常傳統、非常大的企業。因此，從傳統方法轉變為更客製化、依賴技術的方法需要時間。我很高興在以色列，大約兩年前，也就是 2.5 年前，我們成功說服了第一家保險公司採用我們的解決方案。

Since then, I would say that major portion of the insurance industry and the insurance companies in Israel decide to join this train and adopt our technology. And in terms of technology, we have two types of offer. One offer include using our hardware and service that our hardware for this a solution has a module that provide the data that allow to evaluate the risk of the driver online and then create the right billing methods for his risk.

從那時起，我想說以色列的大部分保險業和保險公司決定加入這趟列車並採用我們的技術。在技​​術方面，我們有兩種類型的產品。其中一個優惠包括使用我們的硬體和服務，我們的硬體解決方案具有一個模組，該模組提供的數據允許在線評估駕駛員的風險，然後為其風險創建正確的計費方法。

And the second is without the hardware, using the phone, the iPhone or the Android application that we attach to our software and also with some partners that we integrated in order to do it without hardware in the car.

第二種是在沒有硬體的情況下，使用我們附加到我們軟體上的手機、iPhone 或Android 應用程序，以及我們與一些合作夥伴集成的應用程序，以便在汽車中沒有硬體的情況下實現這一點。

In terms of our own, I would say profitability, it's a very equal, the prices are different, depend what is the contract and the program that each insurance companies did with us. We started in Israel and it's something that very grow and we start putting some seeds also in insurance industries in Argentina and now in Mexico. It's not yet, I would say, mature enough. The needs in those markets or how insurance companies still look at that, it's something that will take more time because we have to convince them and it's also in Israel took us a few years. Our experience and track record in Israel will, I think, or I see will support a faster penetration also to other geographies that we operate.

就我們自己而言，我想說的是盈利能力，這是非常平等的，價格不同，取決於每個保險公司與我們簽訂的合約和計劃。我們從以色列開始，它的發展非常迅速，我們也開始在阿根廷和現在的墨西哥的保險業中投入一些種子。我想說，它還不夠成熟。這些市場的需求或保險公司仍然如何看待這一點，這需要更多時間，因為我們必須說服他們，而且在以色列也花了我們幾年的時間。我認為，或者我認為，我們在以色列的經驗和業績記錄將支持我們更快地滲透到我們經營的其他地區。

That's great. I actually did have one other question I just thought of. For your announcement with Santander, could you just explain what you think the size of that opportunity could be?

那太棒了。我實際上確實有另一個我剛剛想到的問題。對於您與桑坦德銀行的聲明，您能否解釋一下您認為該機會的規模有多大？

The announcement with Santander was, I think, almost two years ago. This is when we started the contract. By the way, also after almost a year of pilot and we are talking about hundreds of thousands of subscribers that derived from their needs to secure their collateral when they provide loans to car buyers.

我想，與桑坦德銀行的宣布是在大約兩年前。這是我們開始簽訂合約的時候。順便說一句，經過近一年的試點，我們談論的是數十萬訂戶，他們在向汽車購買者提供貸款時需要確保抵押品。

This is something that we aim to expand and to extend to more years. It means that on an annual basis, it provides us tens of thousands of subscribers, but we have to be aware that those subscribers are for 18 or 24 months. When they finish their loan or their risk to pay the loan going or decreasing, then, of course, Santander release them from the service with Ituran, it's kind of a cycle.

這是我們的目標是擴大並延續到更多年。這意味著它每年為我們提供數以萬計的訂閱者，但我們必須意識到這些訂閱者的訂閱期限為 18 或 24 個月。當他們完成貸款或支付貸款的風險上升或下降時，當然，桑坦德銀行將他們從伊圖蘭的服務中釋放出來，這是一個循環。

In the end, it will be hundreds of thousands of subscribers. The net should be around 100,000 or 150,000 on average every year. Only in Brazil, by the way. Only in Brazil, I hope. We are doing our efforts to extend it to other Santander regions in Latin America.

最終，訂閱者將達到數十萬。每年平均淨額應在10萬或15萬左右。順便說一句，只有在巴西。我希望只有在巴西。我們正在努力將其擴展到拉丁美洲的其他桑坦德地區。

Thank you very much.

非常感謝。

The next question is from Chris Reimer from Barclays. Please go ahead.

下一個問題來自巴克萊銀行的克里斯·雷默。請繼續。

Yeah, hi. Thanks for taking my questions. A couple of quick ones for me. Can you just remind us if there's any seasonality with either of your revenue lines?

是的，嗨。感謝您回答我的問題。對我來說有幾個快速的。您能否提醒我們，您的兩條收入線是否有季節性？

No. First of all, we have a diversified business, diversified between segments, very diversified between geographies. Even if there is something which is not material in one area, which I cannot appoint specifically, but I'm saying it on the general, still, it will be edged by others. There is no seasonality as a group.

不。首先，我們的業務多元化，各個細分市場之間、各個地區之間都非常多元化。即使有一些在某一方面並不重要的東西，我不能具體指定，但我是在一般情況下說的，但它仍然會被其他人所邊緣化。作為一個群體，沒有季節性。

Got it. Yeah. Just touching on the motorcycle insurance product, can you give any color as to how that's trending? What's the initial reaction been like?

知道了。是的。就摩托車保險產品而言，您能透露一下它的趨勢嗎？最初的反應是什麼樣的？

It started then. Motorcycle insurance is a very risky segment for insurance because there is a lot of cost. It's easy to steal a motorcycle more than steal a car. But we succeed to develop a solution which provide more security to those motorcycles.

事情就是從那時開始的。摩托車保險對於保險來說是一個風險非常大的部分，因為成本很高。偷摩托車比偷汽車容易。但我們成功地開發了一種解決方案，為這些摩托車提供更多的安全性。

And even here, we have two different, I would say, drivers. In Israel, for example, people that buy motorcycles, they do not insure their motorcycle. So they use our solution to reduce their risk as motorcycle owners, because we have high rate of recovery in motorcycle based on the technology and using AI. We need to run a back office software.

即使在這裡，我們也有兩個不同的驅動程式。例如，在以色列，購買摩托車的人並不為摩托車投保。因此，他們使用我們的解決方案來降低摩托車車主的風險，因為我們基於該技術並使用人工智慧，摩托車的恢復率很高。我們需要運行後台軟體。

And in Brazil, since the motorcycle market is very, very large compared to the total vehicle market and insurance companies needs and want to insure motorcycles, but the risk was very high. So we succeed to reduce it. And we came out with this proposal about a year ago. And we see more and more attraction, which ramping up our customer base, that get also motorcycles, driver and motorcycle insurers.

在巴西，由於與整個汽車市場相比，摩托車市場非常非常大，保險公司需要並希望為摩托車提供保險，但風險非常高。所以我們成功地減少了它。大約一年前，我們提出了這個提案。我們看到越來越多的吸引力，這擴大了我們的客戶群，也吸引了摩托車、駕駛和摩托車保險公司。

Got it. Thanks. That's it for me.

知道了。謝謝。對我來說就是這樣。

The next question is from Josh Strauss from Peckin Hardy. Please go ahead.

下一個問題來自 Peckin Hardy 的 Josh Strauss。請繼續。

Yeah, I had a couple of questions. First, I'd like to talk about the core market of Israel. It's rather impressive that you guys have had the consistency of business in the face of the biggest war since the war. And in the face of pretty rough economy in Israel right now, you have GDP down -- double digits.

是的，我有幾個問題。首先我想談談以色列的核心市場。令人印象深刻的是，面對戰後最大規模的戰爭，你們的業務依然保持穩定。面對以色列目前相當嚴峻的經濟情勢，GDP 下降了兩位數。

And so I guess I can't imagine there's a lot of import, importing of new cars coming in right now. And I'm just trying to get my arms around how, how you're able to keep the business as stable as it is. So let's just start there.

所以我想我無法想像現在有大量進口新車進來。我只是想了解如何保持業務穩定。那麼就讓我們從這裡開始吧。

So first of all, you're right. The car importers went down. It's because of the situation, because of the dollar and the cost for cars here, et cetera. But the thing that supports our growth in Israel, even at these tough times, is that -- the cost of freight went dramatically high. And this is not something, unique. We have to understand in countries where there is no -- or there is security problems or economic problems, usually the violence is growing.

所以首先，你是對的。汽車進口商下跌。這是因為這種情況，因為這裡的美元和汽車成本等等。但即使在這些困難時期，支持我們在以色列發展的因素是──貨運成本急劇上升。這並不是什麼獨特的事。我們必須明白，在沒有安全問題或經濟問題或有安全問題或經濟問題的國家，暴力通常會增加。

And when the violence is growing, it's mean that also cars have trade going. And at this situation in Ituran, I would say, getting more attraction and the needs ofsolutions such as we provide become stronger. So just to explain, this is the first year after almost a decade that we get tens of thousands of cars that when they were bought a year or two years ago, the insurance companies didn't ask for a security system.

當暴力事件愈演愈烈時，就意味著汽車也開始進行交易。我想說，在伊圖蘭的這種情況下，吸引力越來越大，對我們提供的解決方案的需求也越來越強烈。解釋一下，這是近十年後的第一年，我們收到了數以萬計的汽車，而這些汽車在一兩年前購買時，保險公司沒有要求安裝安全系統。

Now, when they want to renew their insurance policy, they send us to install security system when 90% of them installed it to one. So in one hand, we are losing brand new cars, but on the other hand, we get a, we get a more -- let's call it kind of a second hand or old car.

現在，當他們想要續保時，他們會派我們去安裝安全系統，而90%的人都安裝了安全系統。因此，一方面，我們正在失去全新的汽車，但另一方面，我們得到了一輛，我們得到了更多——讓我們稱之為二手車或舊車。

Regard the rest of the business. I'm not sure as long as I remember, I'm not sure that the GDP in Ituran went down when we talk about a year, but of course the war at the beginning of 2024, and of course, October, November, December '23, everything here was shut down, but we recovered and except living not in a very, quiet area, the things are moving and the commercial life almost become to a normal.

關注其餘的業務。我不太確定，只要我記得，我不確定伊圖蘭的GDP在我們談論一年時會下降，但當然是2024年初的戰爭，當然還有10月、11月、12月'23，這裡的一切都關閉了，但我們恢復了，除了生活在一個非常安靜的區域之外，一切都在移動，商業生活幾乎變得正常。

Right. Well, that's helpful. Certainly, most of the population in the Tel Aviv, Jerusalem area, that's not particularly surprising, but it just from, for us on the other side of the pond, it's hard to imagine such a stable business than a little before, but thanks for the caller. Can we talk about (inaudible) ? Is there any updates here on what's going on with (inaudible) ?

正確的。嗯，這很有幫助。當然，對於特拉維夫、耶路撒冷地區的大多數人口來說，這並不是特別令人驚訝，但這只是對於我們在池塘另一邊的人來說，很難想像比以前更穩定的生意，但感謝來電者。我們可以談談嗎（聽不清楚）？這裡有關於發生的事情的任何更新嗎（聽不清楚）？

I of course cannot provide specific numbers and everything. It's a private entity. We have only 17%, but talking general information bring has a business plan and this year there are succeed to achieve the business plan. It's a growing SAS company. We understand that the last round that was done on the valuation of $1 billion and the investment that led by insight partners of more than $100 million. There was different times in terms of financial market for startups.

我當然無法提供具體數字和一切。這是一個私人實體。我們只有17%，但是談論一般資訊帶來的商業計劃，今年有成功實現商業計劃的。這是一家不斷發展的 SAS 公司。據我們了解，上一輪融資的估值為 10 億美元，由 Insight Partners 領投的投資額超過 1 億美元。新創企業的金融市場經歷了不同的時期。

So of course it's not a thing that we can do now, for example, to liquid our holdings, whether it's by IPO or by M&A, or, but sell it in the market. So we prefer to be wise and be wait, of course we are in part of the board members. We know what's going on and we really optimistic regard being in a good position in the future to do it.

所以當然，我們現在不能做的事情，例如，透過IPO或併購來變現我們的持股，或者，而是在市場上出售。所以我們更願意明智地等待，當然我們是董事會成員的一部分。我們知道正在發生什麼，我們非常樂觀地認為未來能夠做到這一點。

I just remind you that bring a value in our balance sheet is zero. So in, I believe that in the future it will contribute or will be a bonus of profits.

我只是提醒您，我們資產負債表中的價值為零。所以在，我相信未來它會貢獻或是利潤的紅利。

Right. No, I remember all too well and the market values is a zero too, and they shouldn't. I agree. One more question. I'm -- I was looking at your, cashflow statement and you've got a almost a $4 billion gap in terms of increasing in other current and non-current assets. And I just year over year and I wanted to know what was, what's going on there. What does that mean?

正確的。不，我記得太清楚了，市場價值也為零，他們不應該這樣做。我同意。還有一個問題。我正在查看您的現金流量表，在其他流動和非流動資產的增加方面，您有近 40 億美元的缺口。我年復一年地想知道那裡發生了什麼事。這意味著什麼？

Which item you're talking about for that, for which period?

您正在討論哪個項目、哪個時期？

In your cash flow statement year over year on it doesn't show much of a, it's not much of a difference from a nine month standpoint, but in a three month standpoint, there's a $4 billion difference in terms of increasing other current and non-current assets. Well this year you, you had a increase of $957,000 last year was a decrease of 2.9 million.

在您的現金流量表中，逐年顯示並沒有顯示太多的差異，從九個月的角度來看，沒有太大差異，但從三個月的角度來看，在增加其他流動和非流動性方面存在40 億美元的差異-流動資產。那麼今年你呢,你增加了95.7萬美元,去年減少了290萬,.

I'm trying to find it so I can help you.

我正在努力找到它，這樣我就可以幫助你。

It's not a cashflow statement.

這不是現金流量表。

Let me check and we can get back to you on that because there is nothing specific. There's probably it's working capital that there is a volatility between quarters or between periods. There is nothing specific that on this item that can change, but again, we can -- we can check it and get back to you.

讓我查一下，我們可以回覆您，因為沒有任何具體資訊。可能是營運資金在季度之間或期間之間存在波動。該項目沒有任何具體內容可以更改，但我們可以再次檢查並回覆您。

I mean, yeah, I'm very curious on whether or not it's revenues on the balance sheet that haven't not yet hit the income statement or something like that. So yeah, please just shoot me a note or give me a call and let me know what the story is there. Okay.

我的意思是，是的，我很好奇資產負債表上的收入是否尚未達到損益表或類似的內容。所以，是的，請給我留言或給我打電話，讓我知道裡面的故事。好的。

But that's it for now. Great quarter guys. Keep going. I'm looking forward to see the stock going over to $40.

但現在就這樣了。很棒的季度夥計們。繼續前進。我期待看到該股漲至 40 美元。

(Operator Instructions) There are no further questions at this time. Before I ask Mr. Sheratzky to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available tomorrow Ituran's website, www.ituran.co.il. Mr. Sheratzky, would you like to make your concluding statement?

（操作員說明） 目前沒有其他問題。在我請 Sheratzky 先生繼續其結束語之前，我想提醒與會者，明天將在 Ituran 網站 www.ituran.co.il 上重播本次電話會議。 Sheratzky先生，您願意做一下總結發言嗎？

On behalf of the management of Ituran, I would like to thank you, our shareholders, for your continued interest and long-term support of our business. In the coming months, we will be meeting with investors and presenting at LD Micro and need them, and we hope to see you soon there. If you are interested in meeting or speaking with us, feel free to reach out to our investor relations team. And with that, we end our call and have a good day.

我謹代表 Ituran 管理層感謝您，我們的股東，感謝您對我們業務的持續關注和長期支持。在接下來的幾個月中，我們將與投資者會面並在 LD Micro 上進行展示，我們需要他們，我們希望很快就能在那裡見到您。如果您有興趣與我們會面或交談，請隨時聯繫我們的投資者關係團隊。就這樣，我們結束了通話，度過了愉快的一天。

Thank you. This concludes the Ituran's quarter of 2024 results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝。Ituran 2024 年季度業績電話會議至此結束。感謝您的參與。您可以繼續並斷開連線。