Ituran Location and Control Ltd (ITRN) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Ituran first-quarter 2025 results conference call. (Operator Instructions)

女士們、先生們，感謝你們的支持。歡迎參加伊圖蘭 2025 年第一季業績電話會議。（操作員指示）

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.

大家現在應該都已經收到該公司的新聞稿了。如果您尚未收到，請聯絡 EK Global Investor Relations 的 Ituran 投資者關係團隊，電話 1-212-378-8040，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?

我現在將電話交給 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. Good day to all of you, and welcome to Ituran's conference call to discuss our first-quarter 2025 results. I would like to thank Ituran's management for hosting this conference call. With me today on the call are Mr. Eyal Sheratzky, CEO; Mr. Udi Mizrahi, Deputy CEO and VP Finance; Mr. Eli Kamer, CFO of Ituran. Eyal will begin with a summary of the quarter's results, followed by Eli with a summary of the financials. We'll then open the call for the question-and-answer session.

謝謝。大家好，歡迎參加 Ituran 的電話會議，討論我們 2025 年第一季的業績。我要感謝 Ituran 管理階層主持這場電話會議。今天與我一起參加電話會議的有執行長 Eyal Sheratzky 先生、副執行長兼財務副總裁 Udi Mizrahi 先生和 Ituran 財務長 Eli Kamer 先生。Eyal 將首先總結本季的業績，然後 Eli 將總結財務狀況。然後我們將開始問答環節。

I would like to remind everyone that the Safe Harbor statement in today's press release also covers the contents of this conference call. And now, Eyal, would you like to begin, please?

我想提醒大家，今天新聞稿中的安全港聲明也涵蓋了本次電話會議的內容。現在，Eyal，你可以開始了嗎？

Thank you, Kenny. I'd like to welcome all of you to our first-quarter 2025 results 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.

謝謝你，肯尼。歡迎大家參加我們的 2025 年第一季業績電話會議，並感謝大家今天的加入。我們對第一季的業績感到滿意，我們經營所在地區的收入和利潤再一次實現了同比增長。

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.

第一季度，我們新增用戶數量非常高，淨增加99,000名。憑藉這一強勁增長，我們達到了一個重要的里程碑，用戶數量提前超過 250 萬，超出了我們的預期。

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 Ituran and Ituran began providing services to the subscribers.

本季用戶群的顯著成長部分歸功於我們與主要汽車 OEM 製造商 Stellantis 簽署的新的遠端資訊處理服務協議的額外貢獻。作為三月協議的初始部分，Stellantis 將其 SVR 用戶群轉移到 Ituran，而 Ituran 開始向這些用戶提供服務。

Given the jump in subscribers, we increased our expectations for 2025 subscriber growth 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 subscribers add will trend upward.

鑑於用戶數量的激增，我們將 2025 年用戶成長預期上調至 22 萬至 24 萬名淨新增用戶，這意味著未來三個季度將再新增 12 萬至 14 萬名淨新增用戶。過去一年來，我們努力推出新穎、有吸引力的應用程式、產品和服務，並取得了非常積極的成果。展望未來，我們相信從長期來看，淨增用戶數將呈現上升趨勢。

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 note that we grew ahead of what our US dollar-denominated results suggest.

儘管我們取得了優異的業績，但我想補充一點，與上一季類似，雖然以美元計算呈現增長，但美元兌我們經營的許多當地貨幣（尤其是巴西雷亞爾和墨西哥比索）走強，對以美元計價的財務業績產生了負面影響。以當地貨幣計算，在我們每個地區，我注意到我們的成長都超過了以美元計價的業績所顯示的水平。

Our success reflects ongoing and growing demand for location-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.

我們的成功反映了我們所有地區對基於位置的產品和遠端資訊處理服務持續增長的需求，以及對我們的新舉措和服務的吸引力。我們的第一季表現良好，我想總結我們的一些活動，這些活動將繼續促進我們的成長和成功。

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 we previously untapped by us, such as lower-priced new vehicles or the secondhand car markets. Our usage-based insurance business in Israel continue to gain strong traction, bringing us new subscribers and is one of the reasons why we continue to see strong subscriber growth in Israel.

以色列的高汽車失竊率對我們的服務產生了強勁的需求，並使我們能夠從我們以前未開發的部分市場（例如低價新車或二手車市場）獲得更多新用戶。我們在以色列的基於使用情況的保險業務繼續獲得強勁發展，為我們帶來了新的用戶，這也是我們在以色列繼續看到用戶強勁增長的原因之一。

Our product for motorcycle is gaining traction across all our geographies in South America. Motorcycle significantly increased our total addressable market and continue to represent a very significant untapped market for us in all our region.

我們的摩托車產品在南美洲所有地區都越來越受歡迎。摩托車顯著增加了我們的總目標市場，並繼續代表我們在整個地區非常重要的未開發市場。

And as I mentioned earlier, during the first quarter, we were very pleased to have signed a new OEM agreement with Stellantis, our new OEM customer, made a strategic decision to begin working with Ituran for telematics services. And in March, we started providing our services to their subscriber base. Stellantis 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.

正如我之前提到的，在第一季度，我們非常高興與我們的新 OEM 客戶 Stellantis 簽署了新的 OEM 協議，並做出了開始與 Ituran 合作提供遠端資訊處理服務的策略決策。今年三月，我們開始為他們的用戶群提供服務。Stellantis 是拉丁美洲最大的汽車製造商，旗下擁有許多菲亞特、吉普、標緻等品牌。他們選擇與我們合作是因為他們對我們的技術和服務能力感到滿意。

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.

由於我們目前與 Stellantis 簽訂了初始且有限的 OEM SVR 服務協議，因此 Stellantis 用戶的 ARPU 值雖然對我們的營業收入和利潤都有所貢獻，但比起 Ituran 的平均水平，他們的 ARPU 值卻較低。根據這項初步協議，我們期望在不久的將來擴大對 Stellantis 的服務範圍。

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 Stellantis in additional geographies as well as the potential to provide additional telematics services to their 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.

我們將這項新的 OEM 協議視為我們在全球擴大 OEM 關係的重要里程碑。我們相信，這為與 Stellantis 在其他地區的進一步合作打開了大門，並有可能為其客戶群提供更多的遠端資訊處理服務。除了我們已經合作的製造商之外，我們還在與其他一些主要的 OEM 汽車製造商進行討論，以便將我們的服務帶到他們在南美洲其他地區的子公司。

Ituran is a cash-generating company, and we generated $15.5 million in operating cash flow during the quarter. Ituran 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 represents $0.50 per share. Our dividend yield on an annualized 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.

Ituran 是一家現金產生公司，本季我們產生了 1,550 萬美元的營運現金流。Ituran 專注於創造股東價值，因此董事會決定向股東發放 1,000 萬美元的股息。我提醒您，在 2024 年第四季度，我們將股利政策提高了 25%，從每季 800 萬美元增加到 1000 萬美元。這相當於每股 0.50 美元。我們的年化股息殖利率約為 6%，這對於一家強大而穩定的公司來說是一個非常可觀的回報。我們將持續派發股利視為對股東對公司的忠誠和長期支持的回報。

In summary, we remain pleased with Ituran's performance. The first quarter was a quarter of continued growth for Ituran, 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 Ituran. 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.

總而言之，我們對 Ituran 的表現仍然感到滿意。第一季是 Ituran 持續成長的季度，特別是在營業收入和用戶成長方面，同時從策略角度來看，為 Ituran 帶來了新的 OEM 關係和交易。我們相信，2025 年我們將持續維持成長勢頭，新增用戶數將達到 22 萬至 24 萬。同時，我們也在尋找更多途徑來進一步加速我們在所有地區的業務發展。

We are very pleased to have reached a major milestone of Ituran with 2.5 million paying subscribers. And I would like to thank and congratulate all our employees for this amazing achievement.

我們非常高興 Ituran 達到了一個重要的里程碑，擁有 250 萬付費用戶。我要感謝並祝賀我們所有的員工取得這項驚人的成就。

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

說完，我將麥克風交給了 Eli。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.

謝謝，埃亞爾。我將對財務結果進行簡要總結。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。

First-quarter revenues were a record $86.5 million, a 2% increase compared with revenues of $85 million in the first quarter of last year. The strengthening of the US dollar in the first quarter versus various local currencies in which Ituran operated in impacted the revenues when translated into US dollar. In local currency, revenues grew by 7% year over year.

第一季營收達到創紀錄的 8,650 萬美元，較去年第一季的 8,500 萬美元成長 2%。第一季度，美元對 Ituran 營運所使用的各種當地貨幣的走強影響了其以美元計價的收入。以當地貨幣計算，營收年增7%。

Revenues from subscription fees in the quarter were $62.2 million, an increase of 2% year over year and in local currency, an increase of 9%. Product revenues in the quarter were $24.3 million, an increase of 1% year over year and in local currencies, an increase of 3%. The subscriber base expanded to 2,508,000 by the end of the first quarter, an increase of 99,000 from the end of the previous quarter.

本季訂閱費收入為 6,220 萬美元，年增 2%，以當地貨幣計算，成長 9%。本季產品營收為 2,430 萬美元，年增 1%，以當地貨幣計算，成長 3%。截至第一季末，行動用戶數達250.8萬戶，較上一季末增加9.9萬戶。

The geographic breakdown of revenues in the first quarter was as follows: Israel, 55%; Brazil, 23%; Rest of World, 22%. EBITDA for the quarter was $23.3 million or 26.9% of revenues, an increase of 4% compared with EBITDA of $22.3 million or 26.3% of revenues in the first quarter of last year. In local currencies, EBITDA grew 12% year over year.

第一季營收的地理分佈如下：以色列，55%；巴西，23%；世界其他地區，22%。本季的 EBITDA 為 2,330 萬美元，佔營收的 26.9%，與去年第一季的 EBITDA 2,230 萬美元或占營收的 26.3% 相比成長了 4%。以當地貨幣計算，EBITDA 年增 12%。

Net income for the first quarter was $14.6 million or diluted earnings per share of $0.73, an increase of 12% compared to $13 million or diluted earnings per share of $0.66 in the first quarter of last year. In local currency, net income grew 20% year over year.

第一季淨收入為 1,460 萬美元，即每股攤薄收益 0.73 美元，較去年第一季的 1,300 萬美元或每股攤薄收益 0.66 美元增長 12%。以當地貨幣計算，淨收入年增20%。

Cash flow from operations for the first quarter of 2025 was $15.5 million. As of March 31, 2025, the company had net cash, including marketable securities of $75.7 million. This is compared with the net cash, including marketable securities of $77.2 million as of year-end 2024.

2025 年第一季的經營現金流為 1,550 萬美元。截至 2025 年 3 月 31 日，該公司擁有淨現金，包括 7,570 萬美元的有價證券。相較之下，截至 2024 年底，包括有價證券在內的淨現金為 7,720 萬美元。

The Board of Directors declared a dividend of $10 million for the quarter. The current dividend takes into account the company's continuing strong profitability, ongoing positive cash flow, and strong balance sheet.

董事會宣布本季派發股息 1,000 萬美元。當前股息考慮了公司持續強勁的盈利能力、持續的正現金流和強勁的資產負債表。

And with that, I'd like to open the call for the question-and-answer session. Operator?

現在，我想開始問答環節。操作員？

(Operator Instructions) Sergey Glinyanov, Freedom Capital Markets.

（操作員指令）Sergey Glinyanov，Freedom Capital Markets。

Do you hear me well?

你聽清楚了嗎？

Yes, loud and clear.

是的，聲音響亮、清晰。

So great. In terms of new agreements, does it imply you set up new equipment and provide services for each produced car by Stellantis in Latin America or you have some options for them?

太棒了。就新協議而言，這是否意味著你們為 Stellantis 在拉丁美洲生產的每輛汽車設置新設備並提供服務，或者你們為他們提供一些選擇？

Hi, Sergey. This agreement that we report that we published is currently at this stage, as we said, is to provide services based on technology, which was already implemented in the past -- in the cars of Stellantis. Of course, we see this agreement as an opportunity to broaden the relationship and probably in the future, we hope that we will have the ability to add other services as well as hardware in some models. But this -- what we published yesterday, it's to provide services.

你好，謝爾蓋。正如我們所說，我們發布的協議目前處於此階段，旨在提供基於技術的服務，該技術過去已在 Stellantis 汽車中實施。當然，我們將這項協議視為拓寬合作關係的機會，並且在未來，我們希望能夠在某些型號中添加其他服務以及硬體。但是，我們昨天發布的是提供服務的。

Okay. Got it. And is total effect on your subscription base in place? It seems you raised your subscription base guidance range by 40,000 in midpoint, exactly what we saw in Q1, considering previous run rate. So --

好的。知道了。這對你的訂閱基礎有整體影響嗎？考慮到先前的運行率，您似乎在中期將訂閱基礎指導範圍提高了 40,000，這正是我們在第一季看到的。所以--

This agreement was before -- this agreement is in place since March, meaning in Q1, there is no almost -- almost zero influence. But it's also important for me to mention, when we talk about services and specifically OEM deals, which with large quantities, but which is with a lower ARPU.

該協議是先前達成的——該協議自三月起生效，這意味著在第一季度，幾乎沒有影響。但當我們談論服務，特別是 OEM 交易時，我還有必要提一下，雖然數量很大，但 ARPU 較低。

So it's taking time that it become material because -- don't forget, we had before this quarter about 2.4 million subscribers. The additional influence in the short term is smaller. But the important thing in each and one of these contracts is that we're talking about longer-term relationship. We're talking about growing customer base from this customer. And when it's exponentially increase -- the margins increase, so the contribution to the total results of Ituran will appear in the future, but then it will be more material.

所以它需要時間才能實現，因為——別忘了，在本季之前我們擁有大約 240 萬訂閱用戶。短期內附加影響較小。但每一份合約中重要的是我們談論的是長期關係。我們正在討論從這個客戶擴大客戶群。當它呈指數級增長時——利潤率也會增加，因此對 Ituran 整體業績的貢獻將在未來顯現，但那時它將更加重要。

But I don't think that it's the right way to judge a contract now for the next -- for this quarter or for the next quarter because the customer base, the revenues that we have from subscribers fee at all are much higher than only this. But in the future, these contracts will -- ramping up every month, every quarter, and it will be more contribution to our results.

但我不認為現在就評判下一季或下一季的合約的正確方法，因為客戶群以及我們從訂戶費用中獲得的收入遠高於這一點。但在未來，這些合約將會每月、每季增加，並將對我們的業績做出更多貢獻。

Okay. But what did primarily affect your ramp-up of subscription base? Because recently, it was roughly 40,000 per quarter. And now we see that it's roughly 100,000.

好的。但是，主要影響您訂閱用戶群成長的因素是什麼呢？因為最近，每季大約是40,000。現在我們看到這個數字大約是 100,000。

Actually, the agreement includes at the first stage, gaining to Ituran a bulk of Stellantis car owners, okay, as a first stage. And then they will continue on an annual basis based on their sales. So the number that we show at Q1, it's not a typical number. This is why we provide expectation that the next quarters will continue to be about 40,000 per quarter and not as Q1, almost 100,000.

實際上，該協議的第一階段包括為伊圖蘭贏得大量 Stellantis 車主，好的，作為第一階段。然後他們將根據年度銷售情況繼續進行。因此，我們在第一季顯示的數字並不是一個典型的數字。這就是為什麼我們預期接下來的幾個季度將繼續保持每季約 40,000 輛，而不是像第一季那樣達到近 100,000 輛。

We got initial bank of customers at one time now. Of course, they will be with us a few years according to the contract. But now every month, Stellantis will continue to add subscribers, but it will be not on the same level that the initial one was.

我們現在已經擁有了第一批客戶。當然，依照合約規定，他們會和我們合作幾年。但現在，Stellantis 每個月都會繼續增加訂閱用戶，但數量不會與最初的水平相同。

Yeah. Got it. That's exactly what I interested in. And now turning to your financial figures. Eli, that's a question for you. I guess, product gross margin has increased substantially. Have Ituran taken some steps to improve that? And what should we think about it for next couple of quarters?

是的。知道了。這正是我感興趣的。現在來看看您的財務數據。Eli，這是問你的問題。我估計，產品毛利率大幅提升了。伊圖蘭是否已採取一些措施來改善這種情況？那麼，我們該如何看待接下來的幾季呢？

Gross margin, if we split it to two, if we are talking about the gross margin relates to the telematics services has actually improved a little bit, and this is due to the operating leverage that we have in our business model. So if you are asking me for the future, as long as we continue to increase our subscriber base, I don't see any reason why the gross margin on the telematics services should improve a little bit.

如果我們把毛利率分成兩部分，那麼與遠端資訊處理服務相關的毛利率實際上有所提高，這是由於我們商業模式中的經營槓桿所致。所以如果你問我對未來的看法，只要我們繼續增加用戶群，我就看不出遠端資訊處理服務的毛利率有什麼理由會提高一點。

Regarding the telematics products gross margins that increased, then it relates to cost savings that we are doing all the time and volatilities between the quarters because there is a mix of products that sometimes change from that you are selling one or more products with a different gross margin. So that is a little bit of volatility as well.

關於遠端資訊處理產品毛利率的提高，這與我們一直在進行的成本節約以及季度之間的波動有關，因為產品組合有時會發生變化，即您銷售一種或多種具有不同毛利率的產品。所以這也有一點波動。

Yeah. Thank you. Got it. And what's about operation expenses? It seems your R&D and marketing expenditures rise faster than revenue. What should we think about it?

是的。謝謝。知道了。那麼營運費用如何呢？看來你們的研發和行銷支出成長速度快於收入。我們該怎麼看待這個問題？

If I'm looking at the R&D expenses, it more or less represent about 5.5% of the revenues, and it's quite stable along the time. So if you're asking me going forward, that's a reasonable assumption to use for the future.

如果我看一下研發費用，它大約佔收入的 5.5%，而且一直相當穩定。因此，如果您問我未來會如何發展，那麼這是一個適用於未來的合理假設。

Okay. Understood. And I think the last question, is increased CapEx attributable to new agreements? And what level should we expect throughout 2025?

好的。明白了。我認為最後一個問題是，資本支出的增加是否歸因於新協議？那麼，我們預期 2025 年的水準會達到什麼程度呢？

Yeah. Regarding CapEx, you have to remember that that's -- it includes a lot of consideration of volatility due to the fact of a couple of things. One, the company is making purchases of machines, vehicles and hardware, and it's not spread equally amongst the quarters. And second, also inventory, I'll not say fixed assets or inventory that we are using in Brazil and Argentina that usually depends on -- we can buy it on bulks and things like that.

是的。關於資本支出，你必須記住，由於一些因素，它包含了許多對波動性的考慮。一是公司正在採購機器、車輛和硬件，但採購量在各季度之間分佈並不均勻。其次，還有庫存，我不會說我們在巴西和阿根廷使用的固定資產或庫存，這通常取決於——我們可以批量購買等等。

Q1, for your question, was higher than the average. But looking forward, the CapEx should go down if you would compare, I mean, the second quarter and moving forward.

對於您的問題，Q1 高於平均水平。但展望未來，如果比較第二季和未來，資本支出應該會下降。

Okay. Thank you. Got it. And yeah, I have one more question about insurance market in Lat Am. Just wondering and would like to hear your thoughts about it. What do you expect from Lat Am insurance market? For instance, in Brazil, despite cars thefts are declining, insurance cost rises rapidly, especially for the most popular cars like Fiat.

好的。謝謝。知道了。是的，我還有一個關於拉丁美洲保險市場的問題。只是好奇並想聽聽您的想法。您對拉丁美洲保險市場有何期待？例如，在巴西，儘管汽車失竊案正在下降，但保險費用卻迅速上漲，尤其是對於菲亞特等最受歡迎的汽車而言。

Do you consider it as a potential opportunity for Ituran in terms of consumer demand transitioning to UBI insurance? So what are your perspectives for the next couple of years on that sales field?

您是否認為這對 Ituran 來說是一個潛在的機會，因為消費者需求正在轉向 UBI 保險？那麼，您對未來幾年銷售領域的前景有何看法？

First of all, we don't see declining cars freight. We have to understand that with all the respect to Ituran, when we have a few hundred thousands of cars, when we talk about tens of millions driving on the roads, still, we usually have more -- a better approach to cars, which are more popular to be stealing, whether it's insurance companies or even consumers.

首先，我們沒有看到汽車貨運量下降。我們必須明白，儘管我們對伊圖蘭的情況表示尊重，但當我們談論道路上行駛的汽車只有幾十萬輛，甚至有數千萬輛時，我們通常有更多更好的方法來處理汽車問題，因為汽車更容易被盜，無論是保險公司還是消費者。

We are -- we don't see the trend that you mentioned. I know that some models, sometimes it has a volatility. But overall, we see a high demand in Brazil for car theft solution, specifically the insurance companies that we work with and especially the audience when we talk about into Ituran com Seguro that we approach. So we don't see that.

我們—我們沒有看到您提到的趨勢。我知道有些模型，有時候會有波動。但總體而言，我們發現巴西對汽車竊盜解決方案的需求很高，特別是與我們合作的保險公司，以及當我們談到與 Ituran com Seguro 接觸時，尤其是受眾。所以我們沒有看到這一點。

Regard UBI, I said it in the past, we're always knocking on the doors of our partners, the insurance companies, and provide them the solutions. Unfortunately, Brazil as well as Mexico, which is the two largest countries in South America, the insurance companies are not willing to explore this journey, which means to change their actuarial methodology and implement software and integration with this solution.

關於 UBI，我過去說過，我們一直在敲合作夥伴、保險公司的門，為他們提供解決方案。不幸的是，巴西和墨西哥這兩個南美洲最大的國家，他們的保險公司並不願意探索這趟旅程，這意味著要改變他們的精算方法並實施軟體並與該解決方案整合。

So the only country, by the way, that we succeed to have some deals, it's Argentina. But I think that the competition between insurance companies, the digital insurance companies penetration, prices that should go -- went down and will continue, probably will create more fertile ground for accepting a UBI solution.

順便說一句，我們成功達成交易的唯一國家是阿根廷。但我認為，保險公司之間的競爭、數位保險公司的滲透率、價格的下降以及價格的持續下降，可能會為接受 UBI 解決方案創造更肥沃的土壤。

And once it will happen, I believe, and we do the best that we can to be there based on the strong relationship that we have with major players in the insurance industry. But currently, Brazil and Mexico in the short future are not the market that we expect to sell the UBI.

我相信，一旦實現這一目標，我們將憑藉與保險業主要參與者之間建立的牢固關係，盡最大努力實現這一目標。但目前來看，巴西和墨西哥在短期內並不是我們預期出售UBI的市場。

Chris Reimer, Barclays.

巴克萊銀行的克里斯雷默 (Chris Reimer)。

Congratulations on the strong results. I'd like to -- you mentioned the lower ARPU for customers on deals of the type of Stellantis with the bulk customers. I was wondering if you could talk a little bit about the attrition rates and customers that leave or are finished with their contracts. Is -- does it work that you get new customers at a higher ARPU? Or because of these large deals, are some of the new customers coming in at a lower ARPU than the ones that are leaving?

恭喜您取得如此優異的成績。我想—您提到了與大宗客戶簽訂的 Stellantis 類型的交易中，客戶的 ARPU 較低。我想知道您是否可以談談流失率以及離開或合約到期的客戶。以更高的 ARPU 來獲取新客戶是否有效？或者由於這些大額交易，一些新客戶的 ARPU 是否低於那些離開的客戶的 ARPU？

First of all, it should be clear that our customer is Stellantis. I mean, all the accounts and the calculation and the ARPU and everything done through them. The customer get it as a free trial as a part of, let's say, like having the car has these services, which for us is good because we don't have to convince the customer. We don't have to work consumer by consumer. The checks come from one institutional player, et cetera.

首先，應該要明確的是，我們的客戶是Stellantis。我的意思是，所有的帳戶、計算、ARPU 以及所有的事情都是透過它們完成的。客戶可以免費試用，就像汽車擁有這些服務一樣，這對我們來說很好，因為我們不必說服客戶。我們不必針對每個消費者開展工作。這些支票來自一個機構參與者，等等。

But once the time, which is usually between two to three years, sometimes five years of these free services, we have the ability to approach the customers when they finish the free trial and to offer them the services, which, by the way, has two additional, I would say, benefits.

但是一旦這些免費服務的時間（通常是兩到三年，有時是五年）到了，我們就有能力在客戶完成免費試用後與他們聯繫並為他們提供服務，順便說一句，我想說這還有兩個額外的好處。

First of all, the prices that we offer the renewals are higher because to convince Stellantis to pay for hundreds of thousand subscribers, of course, it's related to a very high discount or lower or to a lower ARPU. When you go customer by customer, when we do the renewals, if they had satisfaction with the three or five years of services, it will be easier for us to convince them to pay higher service fees. So this is the situation here. We don't have -- the churn, I would say, is lower because there is no economic pressure on the driver or the car owner.

首先，我們提供的續約價格較高，因為要說服 Stellantis 為數十萬訂戶付費，當然，這與非常高的折扣或更低的 ARPU 有關。當我們逐一拜訪客戶並進行續約時，如果他們對三到五年的服務感到滿意，我們就更容易說服他們支付更高的服務費。這裡的情況就是這樣。我們沒有—我想說，客戶流失率較低，因為駕駛或車主沒有經濟壓力。

By the way, it's the situation with all the OEM deals. Now regarding ARPU, I don't -- I'm not sure if you ask this specifically, but I would add that the ARPU is lower because it's only service. There is no -- we are not at least any hardware, which we have to integrate it in the monthly service fees like we do, for example, with the Nissan. So it's only the service, so it's lower.

順便說一句，所有 OEM 交易都是如此。現在關於 ARPU，我不知道您是否具體問了這個問題，但我想補充一點，ARPU 較低是因為這只是一項服務。沒有——我們至少沒有任何硬件，我們必須將其整合到每月的服務費中，就像我們對日產所做的那樣。所以只是服務，所以價格較低。

Second, we are talking about kind of services that since we don't have the hardware and all the back office related to the hardware, so the margins are dramatically higher than a typical service or full connected car services, which the ARPU is higher, but the gross cost also higher, the direct cost also higher. So the margin is higher here.

其次，我們談論的是那種我們沒有硬體和所有與硬體相關的後台辦公的服務，所以利潤率比典型的服務或全連網汽車服務高得多，雖然 ARPU 更高，但總成本也更高，直接成本也更高。所以這裡的利潤更高。

Got it. Thanks. That's really helpful. And I was wondering if you could talk a little bit about the dynamics in the market for the product revenues and how you see the pipeline evolving throughout the year?

知道了。謝謝。這真的很有幫助。我想知道您是否可以談談產品收入市場動態以及您如何看待全年產品線的發展？

Theoretically, again, usually the pipeline regarding -- we have orders, but it's on a daily basis that we receive. Of course, there are some backlogs of orders that we know from OEMs that we plan and we manufacture the units in order to provide it. So we are ready always to promote or to provide the deliveries to our customers. So we have stock, enough stock whenever they need. Of course, based on demand, of course, we can increase the inventory or reduce the inventory based on that.

從理論上講，通常相關的管道 - 我們有訂單，但我們每天都會收到訂單。當然，我們從原始設備製造商那裡了解到一些積壓的訂單，我們計劃並製造這些訂單以便提供這些訂單。因此，我們隨時準備向客戶推銷或提供送貨服務。所以我們有庫存，無論何時他們需要，都有足夠的庫存。當然，根據需求，我們當然可以增加庫存或減少庫存。

Regarding the gross margins that you mentioned, that's really -- there is a lot of volatility over here along the quarters. And this is why it's very hard to say. But I would say even going forward, around the 20%, 25% makes sense to me on a gross margin for the product revenues, but it depends on the product mix.

關於您提到的毛利率，這確實是——各個季度的波動性很大。這就是為什麼很難說。但我想說，即使展望未來，產品收入的毛利率在 20% 到 25% 左右對我來說也是合理的，但這取決於產品組合。

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 on Ituran's website, www.ituran.co.il. Mr. Sheratzky, would you like to make your concluding statement?

目前沒有其他問題。在請謝拉茨基先生作總結發言之前，我想提醒各位與會者，本次電話會議的重播將於明天在伊圖蘭公司網站 www.ituran.co.il 上發布。謝拉茨基先生，您願意做總結發言嗎？

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. 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. Thank you and have a good day.

我謹代表伊圖蘭管理層感謝我們的股東對我們業務的持續關注和長期支持。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，我們的通話結束了。謝謝您，祝您有美好的一天。

Thank you. This concludes the Ituran first-quarter 2025 results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝。伊圖蘭 2025 年第一季業績電話會議到此結束。感謝您的參與。您可以繼續並斷開連線。