1. PRESENTATION
UDI MIZRAHI, VP FINANCE
January 2017

2. 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

3. 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

4. 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

5. 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

6. 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 ▼

7. SOME OF ITURAN’S GLOBAL PARTNERS AND CLIENTS

8. 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

9. 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 ,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

10. 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

11. 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

12. FINANCIALS

13. 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

14. 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.

15. 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

16. 100% 55%+ 30%+ LONG TERM FINANCIAL MODEL* Services Products Revenue
Gross Margin
Operating Margin
*Illustrative Purposes Only

17. (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

18. 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

19. Thank You
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