PRESENTATION UDI MIZRAHI, VP FINANCE January 2017

ABOUT ITURAN (NASDAQ: ITRN) Leader in Stolen Vehicle Recovery and Telematic Services Founded | 1995 Employees | 1,600 Global subscribers | 1,035,000| up 13% YoY Active in ISRAEL | BRAZIL | ARGENTINA | USA

FINANCIAL OVERVIEW $550m $32m 3.3% $26m $193m $58m High visibility; recurring revenue through subscriptions Significant long-term operating leverage Long history of profitability No negative quarters; unparalleled in the industry Generates strong cash flow and dividends ~$200 million issued in dividends since IPO in 2005 Diversified across several global markets with strong growth engine in South America & Israel Global penetration from new fleet management services MARKET CAP $550m OPERATING CASH FLOW $32m DIVIDEND YIELD 3.3% NET CASH $26m REVENUE $193m EBITDA $58m Balance sheet data based on Q3-end 2016 and income statement data based on LTM data prior to Q3 2016 Market cap based on share price as of November 9, 2016

OUR SERVICES AND TELEMATICS WORLDWIDE SVR -Stolen Vehicle Recovery Fleet Management and Telemetric represents over 85% of revenues Driver Behavior Analysis & Improvement Remote Vehicle Diagnostics Concierge Services Temperature Control Real Time Accident Notification & Accident Reconstruction Maintenance Management Usage-based Insurance

LONG-TERM SUBSCRIBER GROWTH Record net subscriber adds throughout 2015 and into 2016 Subscriber base growing ahead of long-term targets Typical growth of ~25k sub- adds per quarter Highlights 11% CAGR year-over-year subscriber growth ► Sept 30 Subscribers (‘000) at period-end

LONG-TERM GROWTH & OPERATING LEVERAGE Strongly increased penetration in Brazil & Israel Enhanced relationships with insurance companies and began targeting car manufacturers Global business growing and generating strong positive cash flow Significant negative impact from US$ increase vs local operating currencies in 2015 In local currencies revenues grew 20% Currency impact started to reverse in early 2016 Highlights gross margin▲ op. margin▲ revenue ▼

SOME OF ITURAN’S GLOBAL PARTNERS AND CLIENTS

Ituran FMS Ituran SVR ITURAN SERVICES Fleet Management Services SVR in Brazil Business Intelligence BI Ituran SVR GROWTH ENGINES Safety, Diagnostics & ITC Ituran Save in Israel

85% STOLEN VEHICLE RECOVERY (SVR) success rate Over Global success rate in stolen vehicle recovery saving insurance companies of around $2bn SVR is currently ~85% of revenues- recurring Fast-growing international base of 1,035,000 subscribers (+13% YoY) Predominantly in Israel and Brazil Additional potential from Argentina, US, Europe and Africa Based on a unique command and control system Uses diverse RF & GPS/GPRS technologies

BRAZIL ~40% of revenues from Brazil Strong growth engine; adding new subscribers quickly Fast growth by capturing market share Untapped uninsured population: represents more than 50% on new installations on an incremental basis Working with a leading car manufacture, car dealers and most insurance companies IRT: new JV in Brazil (50%), providing telematic services for new cars from one of the leading manufacturers JV potentially covers a few hundred thousand cars Initial Investment in 2015; expected to be cash flow positive in 2017

ISRAEL ~50% of revenues from Israel Business model: sale of units to third party installers and engaging with the car owners for the service fees using the insurance companies Continued subscriber growth coming from growth in new car sales, from Ituran Save (budget) segment and fleet management Market Share is high: considered as monopoly with more than 80% market share Target both high-end and mid-range of markets high-end cars – premium product required by insurance companies mid-range cars – target for Ituran Save product

FINANCIALS

FINANCIAL HIGHLIGHTS Subscription services: strong visibility and recurring revenue stream 90%+ of previous quarters’ fees roll into next quarter Strong profitability & cash flow generation Long-term operating leverage As subscriber base continues to grow, marginal cost of adding new subscriber decreases

Q3 RESULTS Significant YoY strengthening of US dollar vs local operating currencies had negative financial impact YOY growth in subscribers of 13% (to 1.037m) While results were solid, in local currencies the were even better: Revenues grew 20% Operating profit* grew 30% EBITDA* grew 26% Dividend of $4.1m declared $20.9m paid in last twelve months Strong operating cash flow: $12m Ended the quarter with $26.0 million in net cash & equivalents Revenues (US$ millions) EBIT* (US$ millions) 21% growth 30% growth EBITDA* (US$ millions) Operating Cash Flow (US$ millions) *In Q3 2016, there was a one-time expense of $1.2m related to the repurchase of options to a former employee in Brazil, which is excluded from the EBIT/EBITDA.

Expand operations & penetrate new segments in existing regions Leverage know-how into new regions Use customer relationships to up-sell fleet management and added-value services LONG-TERM PLAN

100% 55%+ 30%+ LONG TERM FINANCIAL MODEL* Services Products Revenue Gross Margin Operating Margin *Illustrative Purposes Only

(based on that year’s end share price) DIVIDEND HISTORY Dividend Yield (based on that year’s end share price) “At least 50% of profits will be issued on a quarterly basis” Total dividends of $16m were declared in 2015 $11.3m declared for first three quarters of 2016 Since IPO in 2005, $200m+ has been issued in dividends; over a third of current market cap to Sept-30

Low-risk subscription model Diversified and growing customer base Ongoing high revenue visibility Strong operating leverage Profitable & strong cash generation Strong growth engines in Brazil Platform for further growth & expansion SUMMARY

Thank You להכניס פה את הסרט של MOBILEYE