NAOS CEO Insights

CEO INSIGHTS – Week Ending 19 November 2021 By NAOS Asset Management

November 19, 2021

“We are thrilled to see audiences returning in significant numbers…there are real grounds for optimism in our industry” Mooky Greidinger, CEO, Cineworld Group plc [world’s second largest cinema chain]

CEO INSIGHTS – Week Ending 19 November 2021 By NAOS Asset Management

“We are thrilled to see audiences returning in significant numbers…there are real grounds for optimism in our industry” Mooky Greidinger, CEO, Cineworld Group plc [world’s second largest cinema chain]

As part of the NAOS investment process, we pay particular attention to the comments made by company CEOs and business leaders in order to gain a greater understanding of the current investment environment and key trends that may be emerging. Below are quotes from the week which in our view detail some of the most important and prominent industry trends and economic factors impacting their businesses.  
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Banking & Financial Markets

“When I step back and I think about my 40-year career, there have been periods of time when greed has far outpaced fear. We're in one of those periods. Generally speaking, my experience says that those periods are not long-lived. Something will rebalance it and bring a little bit more perspective” David Solomon, CEO, The Goldman Sachs Group Inc

“The increase in banknotes in circulation against the backdrop of declining transactional cash use can be attributed to the growing role of cash for precautionary and/or store-of-wealth purposes” Market Statement, Reserve Bank of Australia

“Almost half of all Australians, and almost 70 per cent of all Millennials, did not know what a credit union was” Nigel Ampherlaw, Chairman, Great Southern Bank [Australia’s largest customer owned bank/formerly Credit Union Australia]

Leisure & Entertainment

“We are thrilled to see audiences returning in significant numbers…there are real grounds for optimism in our industry” Mooky Greidinger, CEO, Cineworld Group plc [world’s second largest cinema chain]

Agriculture

“Prices for beef and lamb in 2021-22 are anticipated to remain high in the medium term, driven by limited supply and strong domestic re-stocker demand” Market Statement, Elders Ltd

“High levels of demand for farmland are expected to continue, fuelled by favourable commodity price outlook, low interest rates and good seasonal conditions” Market Statement, Elders Ltd

“Weather conditions across Eastern Australia remain favourable, with many cropping and pasture districts receiving above average rainfall. Increased soil moisture levels in most districts on the East Coast, coupled with high dam levels is expected to drive demand for fertiliser” Market Statement, Incitec Pivot Ltd

Energy

“When you look at the size and complexity of the world’s energy needs, we firmly believe that gas has a very important role to play” Meg O’Neill, CEO, Woodside Petroleum Ltd

“Two Tesla’s plugged into the Walmart drawing more power than the Walmart. This is a phenomenal shift in terms of the electricity draw, so you’ve got to make sure the grid can cope, the micro grids can cope, and you’ve got to make sure that you’ve got charging infrastructure for people who otherwise have a concern about range, especially in a country like Australia” Matt Halliday, CEO, Ampol Ltd

Residential & Housing

“In 1981, when the Boomer generation was settling down and having families, 67 per cent of 30-year-olds owned their own home. In 2016, the equivalent figure was 45 per cent” Danielle Wood, CEO, Grattan Institute

Consumer confidence is high, especially in NSW, with similar trends expected in Victoria. It pays to be a tradie, with record job numbers up for the taking“ Roby Sharon-Zipser, CEO, Hipages Group Holdings Ltd

“Many Australians are clearly on the brink and are sleepwalking into disaster, living in the false hope that rates will stay this low” Peter White, CEO, Finance Brokers Association of Australia

Supply Chain

“I think that through the next year, demand is going to far exceed supply, we don’t have any magic bullets in navigating the supply chain” Jensen Huang, CEO, Nvidia [the world’s most valuable semiconductor company]

“Finally, our outlook for the market during 2022 and 2023 remains positive. The very low order book combined with the lack of yard space, uncertainty on future vessel propulsion, and increased inefficiencies create a favourable supply side picture for our industry and support our optimistic view on the future prospects of the dry bulk margins” Petros Pappas, CEO, Star Bulk Carriers Corp. [major global bulk shipping company]

Technology

“Every second, 127 devices hook up to the internet for the first time” Market Statement, Altium Ltd

“The idea falsely promoted by the platforms that algorithms are somehow objective and solely scientific is complete nonsense. Algorithms are subjective and they can be manipulated by people to kill competition and damage other people, publishers and businesses” Rupert Murdoch, Chairman, News Corp.

Labour Markets

“Work is not a place you go, it's something you do” Bret Taylor, COO, Salesforce Inc

“We are hiring more than we ever have, but it is definitely competitive, the downstream effects of COVID mean that not only are you competing more against global players, who traditionally hired more in the US but are now looking globally, but also locally we are all now hiring all across Australia, whereas before, hiring tended to be focused in the city where your office was based” Didier Elzinga, CEO, Culture AMP [global HR software company]

Retail

“While shopping online for things like health and exercise equipment, pet-related goods, and apparel, featured heavily during lockdown, more than two-thirds of Aussies missed being able to physically look through stores and to see and feel their purchases” Anthony Eisen, Co-CEO, Afterpay Ltd

Mining & Mining Services

“Customers are continually pushing production by extending the life of their fleet, creating a high level of demand for support activity. Customers are also focused on optimising their fleet over the long term. We have seen the first wave of technological step-change through autonomous haulage, which is ongoing and expanding from trucks to other ancillary equipment” Ryan Stokes, CEO, Seven Group Holdings Ltd

Healthcare

“The way we think about health and wellbeing, the expectations of our customers, how we interact with the health system, and the way we work – all have been changed because of COVID” David Koczkar, CEO, Medibank Ltd

Important information: This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) for general information purposes only and must not be construed as investment advice. Certain economic, market or company information contained in this material may have been obtained from published sources prepared by third parties. Nothing contained herein should be construed as granting by implication or otherwise, any license or right to use such third party content without the written permission of the owner.