Ituran Location and Control Ltd. · NASDAQ:ITRN
Ituran Location and Control — Investor Presentation (August 2009)
18 slides from Ituran Location and Control's investor presentation, August 2009
Slide 1: Investor Presentation
Investor Presentation Eyal Sheratzki, co-CEO August 2009
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Except for statements of historical fact, the information presented herein constitutes forward- looking statements within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-look
Slide 3: Our Business
Our Business location–based services and products primarily for stolen vehicle recovery 3
Slide 4: Company Overview
Company Overview Overview High Visibility NASDAQ, TASE: Globally Strong Operating Subscription ITRN Diversified Leverage Model Market cap* ~$200m 533k subscribers 1000 employees with Q209 revenues Net cash $58m at end of Q2-09 operations in $28.4m Recent ‘08 dividend 12k net subscriber Israel, Brazi
Slide 5: Why Ituran?
Why Ituran? Strong relationships with insurance 7 Diversified and growing customer base i Platform for business expansion Low-risk subscription model Defensive in current | environment | Ongoing high revenue visibility Strong operating leverage communication & location
Slide 6: Our Business
Our Business Location–Based Services Currently over 90% of revenues Location–Based Products 6
Slide 7: SVR Business Overview and Drivers
SVR Business Overview and Drivers 7
Slide 8: Competitive Advantages
Competitive Advantages The best overall solution for location–based applications • 14 years operating SVR • Both RF and GPS/GPRS • SVR business • RF provides reliable • Fleet management • Strong management performance in dense • Concierge (Mr. Big) ability and experience urban areas • Location • Hig
Slide 9: Growth Drivers – Brazil
Growth Drivers – Brazil Growth Strategy Highlights Sao Paulo and Rio: Use RF system for increased reliability in urban areas Nationwide: GPS/GPRS technologies End of ‘08 subscribers: 135k with around 50-70k gross subscribers added on an annual basis- continues to grow quickly Actual and target segme
Slide 10: Looking to the long-term future
Looking to the long-term future 10
Slide 11: Defensive in Current Environment
Defensive in Current Environment Stable, cash generating business in Israel 11
Slide 12: Financial Overview
Financial Overview & =4 communication & location
Slide 13: Financial Highlights
Financial Highlights Subscription services: strong visibility and recurring revenue stream ¢ 90%+ of previous quarters’ fees expected to roll into next quarter High profitability with strong cash flow generation Significant long-term operating leverage ¢ Minimal cost in adding new subscriber &TURAN
Slide 14: Q2 2009 Summary
Q2 2009 Summary Annual Revenue & Opex Q2 2009 Highlights Revenues of $28.4m YoY shortfall due to strong increase in US Dollar vs Brazilian Real, Argentinean Peso & Shekel Strong net subscriber growth in Brazil Strong operating margin of 21.1% vs 19.3% in Q208 Strong cash flow from operations of US$5
Slide 15: Long-Term Subscriber Growth
Long-Term Subscriber Growth Subscribers (‘000) Q2 2009 Highlights Additional 12k net subscriber adds in Q2, reaching 533k Strong subscriber adds in Brazil GR CA % 18 H1 Subscribers at period ended 15
Slide 16: Long-term Revenue Growth Model
Long-term Revenue Growth Model Annual Revenue Growth FY 2008 Highlights Improved gross, operating and net margins R C AG nu e Strongly increased penetration in eve 14 %r Brazil Enhanced relationships with insurance companies and began targeting car manufacturers Israeli business generating strong po
Slide 17: Summary
Summary High-visibility, low risk subscription model with strong operating | leverage Growth potential in Brazil & Argentina High profitability and cash generating Strong cash position for acquisitions Defensive in current global economic environment Experienced team with proven track record and est
Slide 18: Thank you
Thank you 18
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