The Romanian Investor Relations Association (ARIR) publishes VEKTOR results for the listed companies from the Regulated Market. 22 issuers obtained over 9 at VEKTOR evaluation from December 2021 compared to 15 companies in December 2020. 10 companies 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 results are available on the page of each issuer on Bucharest Stock Exchange (BVB) website and aggregated data for all companies are available in VEKTOR dedicated section on ARIR website.
Daniela Șerban, ARIR President & Co-founder:
“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.”
Adrian Tănase, CEO Bucharest Stock Exchange:
“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.”
VEKTOR 2021 results:
• 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: the 5th 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 6th criteria 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 was met by the fewest issuers (24).
The average of VEKTOR indicator for all companies is 4.9, an increase of 1.1 points (compared to 3.8 in 2020), and for the companies from premium category is 8.6 (vs 7.3 in 2020). There is also a significant increase for companies included in BET index, with the average VEKTOR indicator for these companies of 9.2 (vs 8.6 in 2020).
The companies that obtained the highest VEKTOR indicator:
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, one of the largest audit and consulting companies in the world, present in 90 countries and territories, with 25 years of experience on the Romanian market.
About Romanian Investor Relations Associations (ARIR):
ARIR is a non-governmental and non-profit organization that was set-up to provide current and potential issuers a platform for the development of Investor Relations (IR) professionals and contribute to the implementation of best practices in investor communication and corporate governance. It was established in November 2018 and it currently has 36 members: listed companies, companies with potential to become listed companies, fund managers, IR professionals as well as consultants. The founding members are BVB, ALRO, Electromagnetica, Franklin Templeton Management – Bucharest Branch, Hidroelectrica, Nuclearelectrica, TeraPlast, Transelectrica, Daniela Șerban, Cosmin Răduță and Tony Romani, while Electrica, OMV Petrom, Antibiotice, Purcari, Idea Bank, BRK Financial Group, Banca Transilvania, Transgaz, Biofarm, MedLife, Romcarbon, Farmaceutica REMEDIA, Autonom, IMPACT Developer & Contractor, 2Performant, One United Properties, Transport Trade Services (TTS), Patria Bank and Connections Consult joined as Associate Members and INNOVA Project Consulting, ENVISIA, RTPR, Intercapital Invest, eVote, Mazars and Marsh as Affiliate Members.