Ituran Location and Control Ltd (ITRN) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Kenny Green. I'm part of the Investor Relations team at Ituran. I would like to welcome all of you to Ituran's results zoom webinar, and I would like to thank Ituran's management for hosting this call.

女士們、先生們，感謝你們的支持。我的名字是肯尼·格林。我是 Ituran 投資者關係團隊的一員。我歡迎大家參加 Ituran 的成果縮放網路研討會，並感謝 Ituran 的管理層主持這次電話會議。

(Operator Instructions) I would like to remind everyone that this conference call is being recorded, and the recording will be available from the link in the earnings press release and on Ituran's website from tomorrow.

（操作員指示）我想提醒大家，本次電話會議正在錄音，錄音將於明天起透過收益新聞稿中的連結和 Ituran 的網站上提供。

With me today on the call are Mr. Eyal Sheratzky, CEO; Mr. Udi Mizrahi, Deputy CEO and VP Finance; and Mr. Eli Kamer, CFO of Ituran. Eyal will begin with a summary of the quarter's results followed by Eli with a summary of our financials.

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 先生以及 Ituran 財務長 Eli Kamer 先生。Eyal 將首先總結本季的業績，然後 Eli 將總結我們的財務狀況。

We will then open the call for the question-and-answer session. You should have all by now received the company's press release, if not, please view it on the company's website.

然後我們將開始問答環節。大家現在應該已經收到了公司的新聞稿，如果沒有，請在公司網站上查看。

I'd like to remind everyone that the safe harbor statement in today's press release also covers the contents of this conference call and the associated presentation. 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和相關簡報。現在，Eyal，你可以開始了嗎？

Thank you, Kenny. I'd like to welcome all of you to our second quarter 2025 results call, and thank you for joining us today. I'm pleased to report another solid quarter for Ituran.

謝謝你，肯尼。歡迎大家參加我們的 2025 年第二季業績電話會議，並感謝大家今天的加入。我很高興地向大家報告，Ituran 本季業績表現又十分穩健。

We've continued to execute on our strategic objectives delivering steady growth. This was achieved despite a war between Israel and Iran during the quarter, which led to an approximate two week suspension of economic activities in Israel.

我們繼續執行我們的策略目標，實現穩步成長。儘管本季以色列和伊朗爆發戰爭，導致以色列的經濟活動暫停約兩週，但仍取得了這項成就。

On the positive side, during the quarter, Ituran celebrated its 30th birthday, of which 20 of those has been as a public company, and we hosted a company even for employees, management and partners.

積極的一面是，在本季度，Ituran 慶祝了其成立 30 週年，其中 20 年是作為上市公司成立，我們甚至為員工、管理層和合作夥伴舉辦了一場公司聚會。

This is a significant milestone, and I'm proud in what we have been able to accomplish over the years, thanks to our dedicated employees and management. We aim to continue our path of growth and profitability for the decade ahead.

這是一個重要的里程碑，我為我們多年來所取得的成就感到自豪，這要歸功於我們敬業的員工和管理層。我們的目標是在未來十年繼續保持成長和獲利之路。

Our results show an ongoing expansion across our target geographies in our large subscriber base of over 2.5 million subscribers. In the second quarter, we added 40,000 net subscribers, and we remain on track for 2025 subscriber growth to reach between 220,000 and 240,000 net subscribers.

我們的結果表明，我們的用戶群在目標地區持續擴張，用戶群超過 250 萬。在第二季度，我們增加了 40,000 名淨用戶，並且我們仍有望在 2025 年實現 220,000 至 240,000 名淨用戶的成長。

In all our geographies, we continue to launch attractive new and advanced telematics products and services adding value to our customer base, including a new product targeted to motorcycles owners, which is seeing solid traction.

在我們所有的地區，我們繼續推出有吸引力的新的和先進的遠端資訊處理產品和服務，為我們的客戶群增加價值，其中包括一款針對摩托車車主的新產品，該產品正受到強勁的關注。

The strengthening of the dollar versus many of the local currencies in which we operate compared with the second quarter of last year had a slight deflating impact on our financial results when denominated in US dollars. In local currencies, in each of our regions, I note that we grow slightly ahead of what our US dollar-denominated results suggest.

與去年第二季相比，美元兌我們經營所使用的許多當地貨幣走強，這對我們以美元計價的財務業績產生了輕微的負面影響。以當地貨幣計算，在我們每個地區，我注意到我們的成長略高於以美元計價的結果。

We had a good second quarter, and I want to summarize some of our activities which will continue to contribute to our growth and success. We continue to see solid demand for our location-based product and telematics services in all our regions as well as traction from our new initiative and services.

我們在第二季度表現良好，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。我們繼續看到所有地區對我們基於位置的產品和遠端資訊處理服務的強勁需求，以及我們的新舉措和服務的吸引力。

As I mentioned earlier, the war with Iran in second quarter had a short but intensive economic impact in the country as the country came to economic standstill for about two weeks. This impacted new car sales, which led to a slight delay in product sales.

正如我之前提到的，第二季與伊朗的戰爭對該國的經濟產生了短暫但強烈的影響，導致該國經濟停滯約兩週。這對新車銷售產生了影響，導致產品銷售略有延遲。

High car theft rate in Israel continued to provide strong demand for our services in the country, and we are reaching additional new subscribers from part of the market that were previously untapped by us such as lower-priced new vehicles or the second-hand car market.

以色列的高汽車失竊率繼續為我們在該國的服務提供強勁的需求，我們正在從之前未開發的部分市場（例如低價新車或二手車市場）吸引更多新用戶。

Finally, our usage-based insurance business in Israel is seeing good traction and bringing continued strong subscriber growth in Israel. In Latin America, we continue to expand our reach in the motorcycle market, and we announced a new partnership with BMW Motorrad in Brazil.

最後，我們在以色列的基於使用情況的保險業務表現出色，並為以色列帶來了持續強勁的用戶成長。在拉丁美洲，我們繼續擴大摩托車市場的影響力，並宣布與巴西的寶馬摩托車建立新的合作關係。

Motorcycle represent a significant market opportunity being the top mode of transportation in many parts of the world. It significantly increased our total addressable market.

摩托車作為世界許多地方的主要交通工具，代表著巨大的市場機會。它顯著增加了我們的總目標市場。

Our new product targeting motorcycle continues to gain traction across all our geographies in South America. With Brazil as our starting point, we plan to scale into other high-growth motorcycle markets through partnerships with local OEMs as well as sales to the aftermarket.

我們針對摩托車的新產品在南美洲所有地區繼續受到歡迎。以巴西為起點，我們計劃透過與當地原始設備製造商合作以及向售後市場銷售，擴展到其他高成長摩托車市場。

Ituran generated a high level of cash in the quarter, amounting to $22.4 million in operating cash flow during the quarter. Ituran is focused on shareholder value creation.

伊圖蘭在本季產生了大量現金，本季的營運現金流達到 2,240 萬美元。Ituran 專注於創造股東價值。

And as such, the Board of Directors decided to issue a dividend of $10 million to shareholders. I remind you that at the end of last year, we increased our dividend policy by 25% from issuing $8 million quarter to $10 million.

因此，董事會決定向股東發放 1,000 萬美元的股利。我提醒您，去年年底，我們將股利政策提高了 25%，從每季 800 萬美元增加到 1,000 萬美元。

This represents $0.50 per share. Our dividend yield on an annualized basis represents a return of around 5%, which is a very solid return from a strong and stable company.

這相當於每股 0.50 美元。我們的年化股息殖利率約為 5%，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。

We see our ongoing dividend as a reward to our shareholders for their loyalty and long-term support of our company. At the same time, as of the end of the quarter, we had around $6 million still available under our buyback program, which we intend to deploy over the coming quarters.

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。同時，截至本季末，我們的回購計畫仍有約 600 萬美元可用，我們打算在未來幾季內部署這筆資金。

In summary, we remain pleased with Ituran's ongoing performance. We believe we will continue to see growth throughout 2025, adding between 220,000 and 240,000 new subscribers in 2025.

總而言之，我們對 Ituran 的持續表現感到滿意。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。

At the same time, we look for more avenues for accelerating our business even further across all our regions. And with that, I hand over to Eli. Eli, please go ahead.

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。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。

Second quarter revenues were a record $86.8 million, a 2% increase compared with revenues of $84.9 million in the second quarter of last year. The overall strengthening of the US dollar in the second quarter versus some of the various local currencies in which Ituran operates in impacted the revenues when translated into US dollars.

第二季營收達到創紀錄的 8,680 萬美元，較去年第二季的 8,490 萬美元成長 2%。第二季度，美元對伊圖蘭公司經營所使用的部分當地貨幣整體走強，對以美元計算的收入產生了影響。

In local currencies, revenues grew by 4% year-over-year. Revenues from subscription fees in the quarter were $63.8 million, an increase of 6% year-over-year, and in local currencies, an increase of 7%. Product revenues in the quarter were $23 million, a decrease of 6% year-over-year.

以當地貨幣計算，營收年增4%。本季訂閱費收入為 6,380 萬美元，年增 6%，以當地貨幣計算，成長 7%。本季產品營收為 2,300 萬美元，年減 6%。

Product sales were impacted due to a cessation of new sales during the 12 day war between Israel and Iran during the quarter. The subscriber base expanded to 2,548,000 by the end of the second quarter, an increase of 40,000 from the end of the previous quarter.

由於本季以色列和伊朗之間為期 12 天的戰爭導致新銷售中斷，產品銷售受到影響。截至第二季末，用戶數擴大至254.8萬戶，較上一季末增加4萬戶。

The geographic breakdown of revenues in the second quarter was as follow. Israel, 54%; Brazil, 23%; Rest of World, 23%. EBITDA for the quarter was $22.9 million or 26.4% of revenues, a decrease of 1% compared with EBITDA of $23.1 million or 27.2% of revenues in the second quarter of last year. In local currencies, EBITDA grew 2% year-over-year.

第二季營收的地理分佈如下。以色列，54%；巴西，23%；世界其他地區，23%。本季的 EBITDA 為 2,290 萬美元，佔營收的 26.4%，與去年第二季的 EBITDA 2,310 萬美元或占營收的 27.2% 相比下降了 1%。以當地貨幣計算，EBITDA 年增 2%。

Operating expenses in the quarter were slightly higher due to a onetime operating expense in the second quarter related to the company-wide celebration of our 30 years milestone. In the second quarter, finance expenses were $1.3 million compared with finance income of $0.1 million in the second quarter of last year.

本季的營運費用略高，因為第二季與全公司慶祝成立 30 週年里程碑有關的一次性營運費用。第二季度，財務支出為 130 萬美元，而去年第二季的財務收入為 10 萬美元。

The expenses this quarter was due to the strongly increased level of the Israeli shekel compared to the US dollar at the end of the quarter which led to a lowering in value of US dollar-linked deposits in Israel, which caused a noncash finance expenses on those deposits.

本季的費用是由於本季度末以色列謝克爾兌美元匯率大幅上漲，導致以色列與美元掛鉤的存款價值下降，從而產生了這些存款的非現金融資費用。

Net income for the second quarter was $13.5 million or diluted earnings per share of $0.68, an increase of 2% compared to $13.1 million or diluted earnings per share of $0.66 in the second quarter of last year. In local currencies, net income grew 6% year-over-year.

第二季淨收入為 1,350 萬美元，即每股攤薄收益 0.68 美元，較去年同期的 1,310 萬美元或每股攤薄收益 0.66 美元增長 2%。以當地貨幣計算，淨收入年增6%。

Cash flow from operations for the second quarter of 2025 was $22.4 million. As of June 30, 2025, the company had net cash, including marketable securities of $88.7 million.

2025 年第二季的經營現金流為 2,240 萬美元。截至 2025 年 6 月 30 日，該公司擁有淨現金，包括 8,870 萬美元的有價證券。

This is compared with net cash, including marketable securities of $77.3 million as of year-end 2024. The Board of Directors declared a dividend of $10 million for the quarter.

相較之下，截至 2024 年底，包括有價證券在內的淨現金為 7,730 萬美元。董事會宣布本季​​派發股息 1,000 萬美元。

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.

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。現在，我想開始問答環節。

(Operator Instructions)

（操作員指示）

Chris Reimer, Barclays.

巴克萊銀行的克里斯雷默 (Chris Reimer)。

You can hear me okay?

你聽得到我說話嗎？

Yeah.

是的。

First off, I'd like to ask how should we be --

首先，我想問我們應該如何--

Chris, we lost you for a second. Please repeat your question.

克里斯，我們失去了你一秒鐘。請重複您的問題。

Sorry. How should we be looking at growth into the second half? And would you say you've seen a bounce back in Israel?

對不起。我們該如何看待下半年的成長？您認為您看到以色列經濟復甦了嗎？

Actually, we're still on track with our forecast of 220,000 to 240,000 subscribers. So I believe that this will be the growth in subscribers in the second -- according to this, we will have the growth in the second half of the year.

實際上，我們仍然符合 220,000 至 240,000 名用戶的預測。因此我相信這將是第二季度用戶數量的成長——根據這一點，我們將在今年下半年實現成長。

Right. Okay. And can you provide any more color on the BMW deal? What's the potential scope of customers? And when might we see impact?

正確的。好的。您能提供更多關於寶馬交易的詳細資訊嗎？潛在客戶範圍是怎樣的？我們什麼時候可以看到影響？

Actually, BMW motorcycles in Brazil are signed with us the kind of a partnership agreement, and they're going to install our motorcycle solution with their motorcycle, with the BMW motorcycle. It's a very strong brand in Brazil.

實際上，巴西的寶馬摩托車與我們簽署了一種合作協議，他們將在他們的寶馬摩托車上安裝我們的摩托車解決方案。這是巴西非常強大的品牌。

In terms of numbers, usually, when we sign OEM contracts, we get kind of roughly projections for numbers, but they never commit. But based on the relationship, the negotiation and the discussions, we are quiet confidence that we are talking about tens of thousands of new subscribers every year in the coming years.

就數字而言，通常，當我們簽署 OEM 合約時，我們會得到一些粗略的數字預測，但他們從未承諾過。但基於雙方的關係、談判和討論，我們有信心在未來幾年內每年都會新增數萬名用戶。

Got it. That's helpful. And maybe for Eli, how should we be looking at the financial expenses going forward?

知道了。這很有幫助。對 Eli 來說，我們該如何看待未來的財務支出？

Chris, financial expenses, usually, if you look at the past, our average is around breakeven or a little bit positive, like up until $0.5 million, but the financial expenses/income is really linked to the FX and our deposits of cash that we have.

克里斯，財務支出，通常，如果你回顧過去，我們的平均水平是收支平衡或略微正向的，例如高達 50 萬美元，但財務支出/收入實際上與外匯和我們擁有的現金存款有關。

This quarter, specifically, we had deposits linked to the US dollars here in Ituran Israel, which were attributed to the dividend that we are going to pay. And due to the fact that in the end of June, the shekel got stronger significantly that affected our financial expenses.

具體來說，本季度我們在以色列伊圖蘭有與美元掛鉤的存款，這些存款歸因於我們將要支付的股息。而且由於六月底謝克爾大幅升值，影響了我們的財務支出。

So basically, it's not in cash flow, but this is. So going forward, it's hard to say.

所以基本上，它不在現金流中，但這是。因此，未來的情況還很難說。

That looks like that's all the questions we have in the queue. So I'll hand it back to Eyal for the closing statement. Eyal, please go ahead.

看起來這就是我們排隊等待的所有問題。因此我將把發言交還給 Eyal 作最後陳述。埃亞爾，請繼續。

Thank you, Kenny. 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. We look forward to continuing our accomplishments over the next decade.

謝謝你，肯尼。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。我們期待在未來十年繼續取得成就。

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.

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，祝您有美好的一天。