In ARIR’s 2023 VEKTOR report, 20 Bucharest Stock Exchange firms earned top marks for investor communication

ARIR (Romanian Investor Relations Association), the promoter of the Investor Relations (IR) concept, announces the results for VEKTOR by ARIR for 2023, the indicator that evaluates investor communication for listed companies.

VEKTOR by ARIR 2023 results:

In the Main Market, out of 80 evaluated companies, 16 have achieved VEKTOR by ARIR 10, based on a methodology that includes 10 criteria, which was updated in 2023 by a committee consisting of 12 members, representatives of institutional investors, individual investors, brokers, analysts, and representatives of institutions from the capital market, to enhance interaction with investors. For the companies included in BETAeRO, 4 companies out of 38 evaluated have obtained VEKTOR by ARIR 10 for the communication with investors, based on an adapted methodology, which includes 11 criteria.

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Main Market

AeRO Market

The average of the VEKTOR by ARIR indicator for all companies on the Main Market is 4 (4.3 in 2022), and for companies in the Premium category is 7.8 (8.5 in 2022). The decrease of the results at the market level is attributed to the revision of the methodology. Regarding the companies in the BET index, the average of the VEKTOR by ARIR indicator for these companies is 9.1 (9.4 in 2022), slightly lower than the previous evaluation.

The average of the VEKTOR by ARIR indicator for companies in BETAeRO is 5, compared to 5.3 at the first evaluation from 2022. The number of companies included in BETAeRO in the 2023 evaluation increased by 7.

The most fulfilled criteria by companies in the Main Market, according to the VEKTOR by ARIR 2023 methodology, are: criterion 7, which requires the presentation of the company’s board of directors and executive leadership, and criterion 8 which requires the publication of remuneration and dividend policies, criteria met by approximately half of the evaluated companies. On the other hand, only 24 companies comply with criterion 4, which requires the publication of the audio-video recording or bilingual transcript for financial results presentation teleconferences, and criterion 9, which requires organizing at least one annual event to present the company to investors.

The most fulfilled criteria by companies in the AeRO Market are: criterion 1, which requires contact information for IR, and criterion 5, which calls for the use of digital tools for presenting financial results, met by more than half of the companies. The criteria met by the smallest number of companies are criterion 7, which requires the publication of financial results in an easily processable format, and criterion 11, which calls for facilitating access through electronic means to the GMS

VEKTOR by ARIR 2023 results are available on the webpage of each issuer on the Bucharest Stock Exchange (BVB) website, while aggregated data for all companies are available in the section dedicated to the VEKTOR indicator on ARIR’s website.

The evaluation of investor communication through the VEKTOR by ARIR indicator takes place annually, starting from 2019. Since 2022, the indicator was also extended to companies in the BETAeRO index. The VEKTOR by ARIR results have been annually audited by Mazars Romania. In 2024, ARIR will collaborate with experts in the capital market for VEKTOR by ARIR for bond issuers.