NAOS CEO Insights

CEO INSIGHTS – Week Ending 5 November 2021 By NAOS Asset Management

November 5, 2021

“The defining quality of the metaverse will be a feeling of presence — like you are right there with another person or in another place. Feeling truly present with another person is the ultimate dream of social technology” Mark Zuckerberg, CEO, Meta Inc

CEO INSIGHTS – Week Ending 5 November 2021 By NAOS Asset Management

“The defining quality of the metaverse will be a feeling of presence — like you are right there with another person or in another place. Feeling truly present with another person is the ultimate dream of social technology” Mark Zuckerberg, CEO, Meta Inc

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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Social Media & Gaming

“The defining quality of the metaverse will be a feeling of presence — like you are right there with another person or in another place. Feeling truly present with another person is the ultimate dream of social technology” Mark Zuckerberg, CEO, Meta Inc

“In this future, you will be able to teleport instantly as a hologram to be at the office without a commute, at a concert with friends, or in your parents’ living room to catch up. This will open up more opportunity no matter where you live. You’ll be able to spend more time on what matters to you, cut down time in traffic, and reduce your carbon footprint” Mark Zuckerberg, CEO, Meta

“And there's a lot of conversation and at some level a lot of hype about it [play-to-earn cryptocurrency/NFT games]. I do think it will be an important part about the future of our industry on a go-forward basis” Andrew Wilson, CEO, Electronic Arts Inc

Food & Beverage

“The average consumer around the world spends 15% more time at home than before. It happens that these categories, biscuits and chocolate, are also something that is more consumed at home” Dirk Van de Put, CEO, Mondelez International Inc [one of the world’s largest snack food companies]

“When lockdowns go down, people are going out more to restaurants and they want to meet their friends again, and this can have an impact on at home cooking. And so you see frequency changes, but you see this not having a negative impact on the retention” Fabian Siegel, CEO, Marley Spoon AG

Global Economy

“The unpredictability in forecasting home prices far exceeds what we anticipated” Rich Barton, CEO, Zillow Inc [largest real estate website in U.S]

“Businesses will need to adapt, and some businesses that have stayed afloat to date may not be viable as support schemes wind down” Market Statement, Reserve Bank of New Zealand

Domestic Economy

“I recognise that some other central banks are raising rates but our situation is different” Philip Lowe, Governor, Reserve Bank of Australia

Construction & Industrials

“Customer demand for high-quality properties close to consumers has never been greater” Greg Goodman, CEO, Goodman Group

“Completion times for projects continue to lengthen, reflecting supply chain congestion, cost pressures and labour constraints which are impacting the broader industry” Market Statement, CSR Ltd

Travel

“I do think business travel on long haul will be a much slower and more painful recovery” Michael O'Leary, CEO, Ryanair Holdings Plc

Supply Chain

“We have taken several initiatives to alleviate these disruptions and the impact they have on our customers’ business. This includes expanding our capacity in Ocean to an all-time high level. Frankly, anything that can sail is out sailing today, and we have also increased the average speed of our vessels” Soren Skou, CEO, Maersk [world’s largest container shipping line and vessel operator]

“The scarcity and pricing of raw materials, and then the logistical problems - that means it will be difficult to grow in FY22” Martin van Dam, CFO, IKEA

Inflation

“Overall, I would say that we're expecting inflation to be in the high single digits like it was in quarter three (3QCY21), similar levels, slightly higher in quarter four” Amit Banati, CFO, The Kellogg Company

“TV prices were up 42% on average, which is a pretty big increase and also inventory was down, TVs were just not available” Anthony Wood, CEO, Roku Inc [global hardware manufacturer of video streaming devices]

Streaming & Advertising

“It's the fact that if you look at TV time in the U.S. today, adults 18 to 49 spend 42% of their TV time streaming. But if you look at the amount of ad spend on streaming versus traditional TV, it's only 22% has moved to streaming” Anthony Wood, CEO, Roku Inc [global hardware manufacturer of video streaming devices]

“It's quite clear that the winners in streaming are and will be those companies that can provide consumers with the best quality stories, the most appealing content choices, personalized and simple products, and all at a great value” David Zaslav, CEO, Discovery Inc

Automotive

“It is pleasing to see the number of new vehicles to be sold in Australia in calendar 2021 is tracking toward the 1.1-million-unit level, which demonstrates the steady growth in demand experienced over the last two decades, and looks set to continue” Mark Weaver, CEO, Peter Warren Automotive Holdings Ltd

“E-mobility has fully arrived in our everyday lives. However, the charging infrastructure isn't keeping up” Oliver Zipse, Chairman, BMW AG

Labour Markets & Workplace

“The hybrid workplace transformation as we emerge from the pandemic will drive technology demand across the entire real estate ecosystem” Christian Ulbrich, CEO, Jones Lang LaSalle Inc

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.