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4. Global X ASX Investor Day 2022.pptx

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4. Global X ASX Investor Day 2022.pptx

  1. 1. Good Things Come in Threes Blair Hannon – Head of Investment Strategy 3 ideas, 3 slides each in 3(0) minutes
  2. 2. 2 © Global X Management (AUS) Limited Confidential | All numbers are approximate G O O D T H I N G S C O M E I N T H R E E S What does Back to The Future have to do with Investing? 1. What Comes Next? Its very hard to forecast/predict the future 2. But…To Invest is to Predict Three themes about what comes next, that matter 3. One or All Invest in stocks or the broader theme
  3. 3. 3 © Global X Management (AUS) Limited Confidential | All numbers are approximate G O O D T H I N G S C O M E I N T H R E E ’ S The S-Curve Can Help
  4. 4. © Global X Management (AUS) Limited Confidential | All numbers are approximate Future of Mobility Electric vehicle (EV) sales are reaching an inflection point as consumers, auto manufacturers, and governments accelerate the shift away from petrol power. An expected shift to cheaper, more robust lithium-iron batteries are expected to help EVs reach the mass market However, auto manufacturers and governments must pay attention to supply chain risks, as delayed investment in lithium mining and processing could pose risks to widespread EV adoption.
  5. 5. 5 © Global X Management (AUS) Limited Confidential | All numbers are approximate F U T U R E O F M O B I L I T Y Exploring the Electric Mobility Landscape Sources: 1. Benchmark Mineral Intelligence, 2021 2. Rho Motion, 2021
  6. 6. 6 © Global X Management (AUS) Limited Confidential | All numbers are approximate F U T U R E O F M O B I L I T Y Investing in Thematic Disruption Source: Albemarle, Bloomberg NEF. Lithium is the world’s lightest metal and is dubbed “white petroleum” due to its common usage in state-of-the-art batteries. AS ELECTRIC VEHICLE (EV) SALES GROW, THE DEMAND FOR LITHIUM AND BATTERIES COULD INCREASE Source: IEA, May 2022. *Forecast GLOBAL BATTERY ELECTRIC VEHICLE (BEV) CAR SALES (#, MILLIONS) 0 5 10 15 20 25 2020 2021 2025* 2030* Millions China Europe Rest of the World United States
  7. 7. 7 © Global X Management (AUS) Limited Confidential | All numbers are approximate Despite advancing battery technologies and improving charging infrastructure, an undersupply of lithium could slow EV adoption. Sources: Bandy, et al., 2021; Benchmark Mineral Intelligence, 2021 100,000 0 -100,000 -200,000 -300,000 -400,000 -500,000 -600,000 -700,000 -800,000 -900,000 -1,000,000 -1,100,000 -1,200,000 -1,300,000 -1,400,000 2020 2021* 2022* 2026* 2027* 2028* 2029* 2030* Metric Tons per annum of Litihium Carbonate Equivalent (LCE) Lithium Surplus / Deficit 2023* 2024* 2025* But underinvestment in lithium mining could pose risks to OEMs’ ambitious EV goals. We expect a lithium deficit in 2022, with conditions worsening over the next several years. New lithium mining operations can take 3-5 years to complete, making 2025’s forecasted undersupply an issue that needs immediate attention Lithium Supply / Demand Imbalance Poses Risks to Electric Vehicle Adoption F U T U R E O F M O B I L I T Y
  8. 8. Decarbonisation Planet Earth’s climate is changing for the worse. Yet, just as human activity has created the climate predicament, human innovation could solve it. Decarbonisation is one of the most pressing, globally shared objectives of the 21st century. It can put us on a path that limits warming and reduces its impacts. Transitioning to clean energy sources and adopting clean technologies would make this path a reality. 77
  9. 9. 9 © Global X Management (AUS) Limited Confidential | All numbers are approximate D E C A R B O N I S AT I O N Minerals used in clean energy technologies compared to other power generation sources Sources: Source: IEA. Data as of August 2021. 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Offshore wind Onshore wind Solar PV Nuclear Coal Natural gas kg/MW Copper Nickel Manganese Cobalt Chromium Molybdenum Zinc Rare earths Silicon Others
  10. 10. 10 © Global X Management (AUS) Limited Confidential | All numbers are approximate D E C A R B O N I S AT I O N The Shift to Renewables starts now Source: 1. IEA, The Role of Critical Minerals in Clean Energy Transitions, May 2021. 2020 2030* 2040* Revenue from disruptive materials revenue could increase 5x by 2040, reaching over $250 billion While mining coal revenues decline by 59%. 1 Source: IEA, May 2021. *Forecasts $431 $294 $175 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 In Billions Mining Revenue Coal Copper Lithium Nickel Cobalt Graphite Manganese Rare earth elements $41 $159 $261
  11. 11. 11 © Global X Management (AUS) Limited Confidential | All numbers are approximate D E C A R B O N I S AT I O N Renewables – The shift has begun 2010 20% 2020 29% 2030 61% 2050 88% 15% 30% 45% 60% 75% 90% Historical Share (%) RENEWABLES’ SHARE OF GLOBAL POWER MIX (%) Must reach 88% by 2050 to limit to warming to 1.5 °C Sources: International Energy Agency, 2021a, 2021b, 2021c, 2020, 2019 2010 2020 2030 2040 2050 “Renewables’ cost of electricity to build and operate a source plunged over the past decade, making renewable power cheaper than fossil fuel power.” European Energy Crisis Impact
  12. 12. Robotics & Artificial Intelligence Robots and artificial intelligence (AI) algorithms are becoming smarter and more capable than ever before. At the same time, weakened supply chains, rising wages, labor shortages, have created greater demand for automation technology. As robot and AI adoption grows, we are likely to see productivity surge, the costs of services fall, and the very nature of work drastically change.
  13. 13. 13 © Global X Management (AUS) Limited Confidential | All numbers are approximate R O B O T I C S & A I Investing in Thematic Disruption Sources: 1. Global X calculation based on Mordor Intelligence, Research and Markets, 360 Research Reports, & Expert Market Research 2021 reports.; 2. Precedence Research, “”Artificial Intelligence Market Size to Surpass Around US$ 1,597.1 Bn By 2030,” April 2022. Note: See appendix for more information on sources. $250B $510B 2020 2026* Robotics encompasses the creation, design, and application of programmable machines that can perform tasks and interact with their environments without or alongside humans. Artificial intelligence (AI) refers to computer systems that can work, react, and learn like humans to autonomously perform tasks that involve decision making, visual perception, and speech recognition. Source: Mordor Intelligence, July 2021.; Research and Markets, February & June 2021.; 360 Research Reports, March 2021.; Expert Market Research, February 2021 & December 2020. *Forecast Source: Precedence Research, April 2022. *Forecast ROBOTICS MARKET ($B) AI MARKET ($B) $87B $1,597B 2021 2030*
  14. 14. 14 © Global X Management (AUS) Limited Confidential | All numbers are approximate R O B O T I C S & A I Next Frontiers Smart Robot Market: $16b+ by 2025 Industrial Automation Market: $352b by 2024 Number of 5G Users: 1 billion by 2023 Computer Vision Market: $19b+ by 2025 Healthcare AI Markets: 45% growth just in 2022-23 Source: Grand View Research, Transparency Market Research, TechRepublic, Market Insights, Forbes, 2020
  15. 15. 15 © Global X Management (AUS) Limited Confidential | All numbers are approximate R O B O T I C S & A I Robotics & AI: How 5G and AI can work together “The global market for 5G in cloud robotics is expected to grow at a 79.2% compound annual growth rate to reach $10.6 billion by 2028”
  16. 16. 16 © Global X Management (AUS) Limited Confidential | All numbers are approximate Back to The Future…. S-Curve Innovators Early Adopters Late Majority Laggards 1. By 2030, EVs could achieve a 36% penetration rate, representing a $1.4 trillion opportunity. 2. We expect the industrial robotics market to reach $37 billion in sales by 2030, more than doubling in size from 2020. 3. Shift to Renewables will see Copper, for example, may be in deficit by the end of the decade – Mike Henry, CEO BHP Early Majority Innovators Electric Vehicles AI Robotics Renewable Energy 2030
  17. 17. 17 © Global X Management (AUS) Limited Confidential | All numbers are approximate D I S C L A I M E R Notice to Residents of Australia This webinar is issued by Global X Management (AUS) Limited (“Global X ”) (Australian Financial Services License Number 466778). The information provided in this webinar is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information in this document, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of Global X, the group of companies of which Mirae Asset Global Investments Co., Ltd is the parent, or their respective directors, employees or agents guarantees the performance of any products issued by Global X or the repayment of capital or any particular rate of return therefrom. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

Editor's Notes

  • Affordable Electricity: Becoming cheaper than electricity produced by fossil fuels (see following sections)
    Amazon & Walmart among companies with plans to decarbonize using renewable energy and clean technologies1
    Energy Independence: 75% global population lives in country that is net importer of fossil fuels. Renewable energy could yield energy independence2
    Labor: Employment in renewables is rapidly growing & should increase as the transition continues to gain momentum

    Clean Power Sources: Solar and wind power generation produce no direct greenhouse gas emissions
    After 3 years of operation, a solar panel pays off “carbon debt” from manufacturing3
    After 6 months–1 year of operation, a wind turbine pays off “carbon debt” from manufacturing4
    Highly Scalable: Solar and wind energy are the easiest renewable sources to scale
    In many markets solar energy is least expensive electricity that can be quickly integrated & requires little maintenance
    Efficient: Wind power in particular is more efficient than many other cost competitive power sources
    Boasts 35-50% efficiency, more efficient than most fossil fuel powerplants5,6

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