Investor Presentation May 2015

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-looking statements by terminology such as "expect," "estimate," "anticipate," "intend," "predict," "believe," and similar expressions and variations thereof.  Such  forward-looking statements include statements regarding the intent, belief, current expectations or projections about future events of Ituran Location and Control Ltd.  Readers are cautioned that these forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Ituran Location and Control Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include without limitation, general economic and business conditions, the loss of market share, changes in the competitive landscape, failure to keep up with technological advances and other factors over which Ituran Location and Control Ltd. has little or no control.  Ituran Location and Control Ltd. undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date hereof.

services and products for vehicles Our Business Location based services and products for vehicles

Company Overview TICKER ITRN High visibility recurring revenue through subscriptions 817k subscribers up 10% over last year Strong operating leverage cost of supporting every new subscriber is minimal Strong cash generation $38 million in 2014 Diversified across two main markets with strong growth engine in Brazil MARKET CAP ~$480m NET CASH $41m DIVIDEND YIELD ~4.7% FY14 REVENUE $182m (+7% YOY) FY14 EBITDA $58m (+7% YOY) *Based on FY’14 data Share price of $22.86 as of May 2, 2015

Location–Based Services Our Business Location–Based Services Stolen vehicle recovery (SVR) Fleet management and Drive Diagnostic Usage based Insurance (pay as you drive) Concierge (Mr.Big) Currently over 90% of revenues Location–Based Products RF Products GPS/GPRS Products (ERM) Personal Navigation (MAPA)

SVR Business Overview and Drivers Increasing car ownership and demand for security Quick and very high (85%+) vehicle recovery rate Growing (8% 5yr CAGR) subscriber base International (Israel, Brazil, Argentina, US) Diversified technologies (both RF and GPS/GPRS)

Competitive Advantages The best overall solution for location–based applications 15+ years operating SVR business Strong management ability and experience Both RF and GPS/GPRS RF provides reliable performance in dense urban areas High resistance to jamming Real time alerts SVR Fleet management Concierge (Mr. Big) Location Usage based Insurance Driver behavior Accident indicator Full suite of location- based services Experience Technology edge

Brazil

Growth Drivers – Brazil Growth Strategy Highlights Technology: San Paulo and Rio use RF system for increased reliability in urban areas and elsewhere uses GPS/GPRS. Leasing business model: Almost all transactions are done through commodato. GM Agreement: Agreement with General Motors Brazil for regulation 245 which will offer immobilization, location and telematics services for the Chevrolet range of vehicles it sells in Brazil. Actual and target segments: Car manufactures and car dealers Working with most insurance companies High uninsured population which today on an incremental basis represents 50% on new installations: expect this to increase. Insurance carriers New cities manufacturers Target car Fleet management Uninsured end-users Ituran is growing faster than its competitors in Brazil

Telematics

Israel

Growth Drivers in Israel Highlights Nationwide: RF coverage Business model: sale of units to third party installers and engaging with the car owners for the service fees using the insurance companies as a “private regulator” Subscriber growth : continued growth coming mianly from Ituran Save segment Market Share: considered as monopoly with more than 80% market share Segments: High end cars – required by insurance companies :our premium product Mid range cars – recently launched Ituran Save product

Looking to the long-term future Penetrate new segments such as car manufactures and car dealers in existing regions Expand operations and leverage know-how into new and existing regions through M&A Use customer relationships to up- sell added value services: Mr. Big, Mapa

Strong Cash Generation Growth with Stability Strong Cash Generation Growing business in Brazil and Israel Increased requirement for asset protection Increased demand for Ituran’s services

Financial Overview

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

Q4 2014 Results Summary Summary* (US$m) Highlights Excluding the exchange rate impacts business and margins grew Excluding xrate impact, increase in revenues would have been 11% YoY Record gross margins Op. income of $10.0m vs8.0m last year EBITDA margin of 32.3% Cash flow generation: In Q4 Ituran paid $4.5 million in legal fees Dividend of $7 declared Ended the quarter with $40.8 million in net cash & equivalents Operating Cash Flow (US$m)

Long-term Subscriber Growth Subscribers (‘000) Highlights Record 22k net subscriber adds in Q4-2014, reaching 817k Subscriber base growing in line with long-term targets 11% CAGR Subscribers at period ended

Long-term Growth Annual Financials Highlights Strongly increased penetration in Brazil Enhanced relationships with insurance companies and began targeting car manufacturers Israeli business growing and generating strong positive cash flow Gradual increase in gross and operating margins due to the operating leverage inherent in the business model Gross margins Operating margins 8% revenue CAGR ’09-’14 *Operating income exclude one time expenses in 2010, 2011, 2013, 2014

Margin Development Margin* Comparison Highlights Inherent operating leverage - ability to add subscribers at no real incremental cost to the business *Operating margin exclude one time expenses in 2010 & 2011, primarily related to litigation fees. Also in 2011, Ituran received a one-time high-margin license fee related to Mapa. In 2013, operating income of one-time non cash expenses of $4.4 million are excluded. In 2014, there was a write-off in Mapa.

(based on full year average share price) Dividend History Annual Dividend Issued (US$m) Dividend Policy Dividend Yield (based on full year average share price) Current dividend policy*: At least 50% of profits will be issued on a quarterly basis Total dividends of $19.5m have been declared in 2014 Since IPO in 2005, $174m (over a third of current market cap) has been issued in dividends Special dividend following sale of Telematics *Dividend policy updated as of 2012

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

Thank you