The Romanian Investor Relations Association (ARIR) has published VEKTOR results for the companies listed on the Regulated Market.
Ten companies, namely, Antibiotice, Banca Transilvania, BRK Financial Group, Electrica, Farmaceutica Remedia, Impact Developer & Contractor, Nuclearelectrica, OMV Petrom, Purcari and TeraPlast, obtained the maximum mark, 10, in communication with investors, based on a methodology that includes 15 criteria, in line with best international practices in Investor Relations (IR).
“The number of issuers that obtained maximum scores confirms the widespread adoption of good practices in investor communication and corporate governance that ARIR assumed 3 years ago when it launched VEKTOR indicator. Nevertheless, it is time to move to the next level, with new criteria that meet the expectations of a more sophisticated, digitized and involved investor. We are launching today for public debate the new VEKTOR methodology for 2022 after a wide consultation with capital market stakeholders, for another step towards best practices in the field”, said Daniela Serban, ARIR President & Co-founder.
The association has launched for public debate on Monday (Jan 31) the new VEKTOR methodology for 2022 after a wide consultation with capital market stakeholders, for another step towards best practices in the field.
“For a listed company that wants investor recognition, the communication with them is paramount. We are glad that, three years after the launch of VEKTOR indicator by ARIR, more and more companies score very good marks, an indication that the awareness regarding the importance of communication with investors among them has increased considerably. The market has evolved a lot and the requirements of investors too, becoming more and more demanding. We welcome the initiative of ARIR to review VEKTOR indicator methodology for the current year, as well as to extend this indicator to companies from AeRO market”, said Adrian Tanase, CEO of the Bucharest Stock Exchange:
VEKTOR results for 2021:
The listed companies that obtained 10 at VEKTOR 2021 evaluation are: Antibiotice, Banca Transilvania, BRK Financial Group, Electrica, Farmaceutica REMEDIA, IMPACT Developer & Contractor, Nuclearelectrica, OMV Petrom, Purcari, TeraPlast.
The listed companies that obtained 9.5 at VEKTOR 2021 evaluation are: ALRO, BRD – Groupe Societe Generale, Bursa de Valori București, MedLife, ONE United Properties, Romgaz, SIF Transilvania, Sphera Franchise Group, Transgaz.
The listed companies that obtained 9 at VEKTOR 2021 evaluation are: Bittnet Systems, Fondul Proprietatea, Romcarbon.
The listed companies that registered the highest growth in 2021 are: Turism Felix, Sphera Franchise Group, Evergent Investments, Electromagnetica, SIF Banat Crisana, Santierul Naval Orsova.
The criteria fulfilled by the largest number of companies at VEKTOR evaluation are as follows: the fifth criterion (60 companies), which refers to making available stock price information on the issuer’s website, and the 14th criterion (54 companies), which requires the existence of a remuneration policy, where we observe an increase in the number of companies by 38 compared to 2020 evaluation.
The fewest companies (24) fulfilled the sixth criterion which refers to the organization of at least one annual event to present the company’s activity to investors and analysts or to participate in at least one international / local event for investors.
The average of VEKTOR indicator for all companies is 4.9, higher by 1.1 points (compared to 3.8 in 2020), and for the companies from premium category is 8.6 (versus 7.3 in 2020). There is also a significant increase for companies included in the BET index, with the average VEKTOR indicator for these companies of 9.2 (versus 8.6 in 2020).
The VEKTOR indicator was calculated by ARIR for the first time in 2019 and is published annually to evaluate the companies’ communication with investors.
The VEKTOR methodology was developed by ARIR in collaboration with an extensive group of local and international specialists (financial analysts, IR professionals, consultants and academia) to include the expectations of institutional and individual investors. The methodology includes 15 objective criteria, aligned with international best practices in investor relations (IR), among which: information about investor relations team; the existence of investor presentation; organising financial results conference calls; dissemination of press releases related to financial results; participation to investors events; the availability of financial results information in Excel format; transcript or replay of the most recent results’ conference calls; availability of stock price information; information about analyst coverage; information about corporate governance – company management, committees, remuneration policy; non-financial reporting.
The evaluation process was audited in January 2022 by Mazars audit and consulting company.