The objective of sustainable success, introduced by the Code of Corporate Governance for Listed Companies to which Iren adheres, is also based on a solid and transparent relationship with shareholders and investors. In order to improve interactions with these stakeholders, in 2021, Iren’s Board of Directors approved the Policy for managing the dialogue with General Shareholders and Investors (published on the Group’s website), which regulates the extra-assembly dialogue between the Board of Directors and the representatives of shareholders and investors on issues within the Board’s competence and defines the principles, rules and methods for conducting this dialogue, identifying the recipients, the interlocutors, the topics of discussion, the timing and channels of interaction. The Policy is based on the principles of transparency, correctness, punctuality and timeliness of information, equal treatment of shareholders, effectiveness, compliance with regulatory provisions – including those concerning market abuse -, internal governance rules and procedures, always ensuring cooperation and transparency to supervisory authorities, regulators and competent administrations.
The Investor Relations Department is responsible for managing relations with shareholders and the financial market in general, and among other things discloses important information about the Group through the website in an objective and transparent manner. The Director of Administration, Finance and Control, who is in charge, among other things, of the Investor Relations function, is identified as the point of contact for the purposes of the Policy for managing the dialogue with General Shareholders and Investors. Moreover, pursuant to the Consolidated Law on Finance, shareholders can ask questions on the items on the agenda of the Shareholders’ Meeting (by e-mail, fax or filling in the form available on the Group’s website), even before the meeting itself.
Iren Group carries out an intense activity aimed at reinforcing the relationship of trust with its shareholders and at increasing the interest and knowledge of Italian and foreign analysts and investors.
The strong interest of the market in the Group is confirmed by the intensification of relations and opportunities for contact with analysts, also following the positive performances recorded, supported by the Business Plan to 2030, the first ten-year plan in Iren’s history. In addition to this, there is the positive effect of the optimisation of the financial profile, through greater recourse to the bond market, compared to the banking channel, confirmed by the issue in 2021 of a Green Bond for 200 million Euro, which contributes to strengthening the strategic vision oriented to sustainability.
In 2021, seven brokers covering the bond were confirmed with periodic reports: Equita, Exane (sponsored research), Intermonte, Intesa Sanpaolo, KeplerCheuvreux, Mediobanca, Stifel.
The increased interest shown by investors towards the Group has required greater communication intensity. As in the past, the roadshow, organised from time to time by different brokers, remained the main tool for introducing the Group to Italian and foreign institutional investors. In 2021, 16 virtual roadshows and conferences were held in the major European financial markets (London, Paris, Geneva, Brussels, Luxembourg and Frankfurt). More than 100 investment funds were met during the year, with a total of 140 fund managers or analysts. The direct day-to-day contact with managers of institutional funds and financial analysts that oversee the bond is of particular significance.
In addition to the roadshows, the Group has maintained a constantly communication with the market using different channels, including quarterly conference calls for the presentation of the results for the period. The most important event during the year was the presentation of the Business Plan to 2030, held on 11 November, during which top management illustrated the Group’s new strategy and investment plan to the financial community.
Investors are paying increasing attention to environmental, social and governance (ESG) issues both through direct contact with the Group and through ratings issued by specialist rating agencies. Iren has established a transparent and timely dialogue with ESG investors, taking part in roadshows and conferences on these topics, actively contributing to analyses and surveys of ESG rating companies, periodically reviewing the investors section of the website to make information more accessible and developing, every year, its own specific analyses aimed at identifying possible areas of improvement.
There were no instances of fines or penalties for failure to comply with the regulations and laws for shareholders.
Iren share performance
In 2021, the main world stock exchange indices showed upward trends, thanks in particular to the actions taken against the spread of Covid- 19 and the consequent expectations of economic recovery supported, among other things, by the European Next Generation plan and the maintenance of expansive monetary policies by the major international central banks. The year was marked by extreme volatility in the energy scenario and a higher-than-expected inflation rate, phenomena attributable to the evolution of the pandemic emergency, which had a negative impact on the markets, especially in the last quarter. Nonetheless, the FTSE Italia All-Share (the main index of the Italian Stock Exchange) grew by 23.7% and multi-utilities also posted rising performances, benefiting from expectations of a positive impact of European and national plans for economic recovery and infrastructure development. At 30 December 2021 (last day of trading), the price of Iren stock stood at 2.654 Euro per share, up 24.8% compared to the price at the beginning of the year, with average volumes traded during the period amounting to approximately 1.88 million units per day. The average price was 2.483 Euro per share, which reached the highest level of the year (2.884 Euro per share) on 10 November 2021 and its minimum level (2.028 Euro per share) on 21 January 2021.