Ladies and gentlemen, shareholders, good morning to you all. First of all, I'd like to thank you for the trust you have placed in Telefónica, and that you're showing with your presence today at this annual general shareholders meeting, and in attendance, in person or remotely. We will begin the session. I'd like to inform all attendees that in accordance with the Corporate Enterprises Act, the Board of Directors has required the presence of the notary from Madrid, José Miguel García Lombardía, to draw up the minutes of the present GSM. Mr. García Lombardía is present on one of the tables on the side of this room, to the left of you. The secretary has the floor. Good morning.
Following the formal legal formalities, we'd like to state that in Madrid, at 11:00 A.M. on the 12th of April, 2024, at the offices of Telefónica S.A., Distrito Telefónica, Ronda de la Comunicación without a number, auditorium in the central building. On the second call, the shareholders are meeting, and the Presiding Committee of the Ordinary General Shareholders Meeting, convened with the agreement of the Board of Directors on the 8th of March, 2024, through the communication on the Stock Exchange Commission's website and the website of the company, published on the 9th of March, 2024, in the newspapers El País and Expansión, where we have all the matters that are to be put to the approval of this GSM.
The Presiding Committee is made up of Mr. José María Álvarez-Pallette López, Chairman of the GSM, as President of the Board of Directors, and myself, Mr. Pablo de Carvajal González, Secretary of the GSM and as Secretary of the Board of Directors, both, with a position enforced, registered at the Mercantile Registry, and the directors of the company attending in person.
As for the quorum for a valid meeting, indicated in the call for the meeting and on the website, the registering of remote attendance of the GSM has been closed and provisionally closed the registering and counting of attendance cards of shareholders who are attending this meeting in person and together with the votes, issued remotely or proxies, it allows us to see that the meeting is quorate and that we can start the session. Without prejudice to the fact that attendance cards and proxies will continue to be accepted until the time limit established by the regulations of the GSM, that is, before the shareholders intervene.
The final data that we have are 13 shareholders present, zero shareholders represented by proxy, holders of zero shares. We have 5,306,000 shareholders present, with 342,620,000 shares. 70,964 shareholders represented by proxies. They have 3.229554193 shares. In total, we have present or represented by proxy, 23,270 shareholders who are owners of 3,572,174,658 shares, of which represent 62.12% of the share capital of the company, Telefónica S.A. The share capital is of EUR 5,750,458,145, with an equal number of shares.
Therefore, the meeting is quorate for the valid constitution of this GSM and second call, and to be able to debate all those matters included in the agenda. Based on the data facilitated by Mr. Secretary, I declare the meeting quorate of this ordinary GSM at second call. The notary has the floor. Thank you, Chairman. Ladies and gentlemen, shareholders, in compliance with what is established by the mercantile legislation, I'd like to ask attendees whether there are any reservations or protests with regards to the statements relating to the number of members attending the GSM and the capital present and represented by proxy. The shareholders that attend remotely can communicate through the IT application called Participation Platform. There are no reservations. As there are no objections of any nature to what the notary has said, I confirm that the meeting is quorate.
This GSM is quorate for Telefónica, S.A., at the second call, in order to deal with all the items included on the agenda. The secretary has the floor again. In order to order this GSM, shareholders who attend this GSM in person, and who wish to ask for the floor and ask for information or any clarifications on those matters included in the agenda, on information accessible to the public, facilitated by the company, to the Stock Exchange Commission, since the holding of the last GSM on the 31st of March, 2023, or with regards to auditors' reports, or to formulate the proposed resolutions, can go to the tables on the sides of this building, in the two rooms where the GSM is taking place. At said table, they will say what their identity is and the number of shares that they represent or are holders of.
Following this, the presiding committee will establish the order of their interventions. If they wish their intervention to be included in the minutes of the GSM, they should hand in the text in writing of their participation to the notaries next to the tables for shareholders. The shareholders who attend remotely will have been able to intervene since their registration through the Participation Platform, using the forms provided. The remote attendees will have been able to send in their interventions in writing or their questions in writing, up until the chairman declared this meeting quorate.
In addition, the resolutions that the board is submitting to all of you shareholders, are those contained in the documentation that has been given to you on entry to this GSM, and that you have had at your disposal since this was convened, both on the website as well as the head office of the company. The shareholders are reminded, who are attending remotely, that they have at their disposal in the Participation Platform, the full text of the proposed resolutions put to the vote. Likewise, in accordance with what is in the standards and regulations, this GSM must be informed of the following matters.
Firstly, it is necessary to inform on the non-modification of the regulations of the Board of Directors of the company, agreed upon by the board in its session held on the 13th of December, 2023, and which was registered in the Mercantile Registry in Madrid on the 24th of January, 2024. Said modification was carried out with the following main objectives: firstly, to simplify and adapt the organizational structure of the Board of Directors committees to the current composition, reducing the number of committees by 2. Secondly, to foster strategic supervision of the board by eliminating the Strategy and Innovation Committee, to ensure that all deliberations and debates on the strategy of the company take place within the Board of Directors.
Thirdly, to extend the functions of the current Sustainability and Regulations Committee, before called the Sustainability and Quality Committee, to inform on regulatory matters which are more closely linked to the sustainability strategy of the company. The resulting text of the modification is at your disposal on the corporate website of the company. Secondly, we must inform about the Corporate Governance Yearly Report of the company corresponding to the year 2023, drawn up in accordance with the standards and regulations of the Stock Exchange Commission, and that has included the management reports, the individual yearly accounts of Telefónica, as well as its consolidated group, corresponding to the financial year 2023. The Corporate Governance Yearly Report was registered on 23rd of February, 2024, in the Stock Exchange Commission, and has been available since that date on the company's website.
As for the degree of compliance by the company of the recommendations of the good governance code, and following the recommendations of the president, I inform you that included in this Corporate Governance Yearly Report, Telefónica complies with almost all the said recommendations. As for the main changes that have taken place since the last GSM, I must underline compliance with the presence of female board members that represent 40% of the members of the Board of Directors, in line with best international practices. As for the recommendations that Telefónica partially follows, I'd like to point out the following: firstly, the limitation of the maximum number of votes that a single shareholder can issue, 10% of the total share capital. In Article 26 of the bylaws, constitute an efficient tool for the protection of the interests of all retail or minority shareholders.
Likewise, in relation to the Board of Directors committees, I'd like to point out that the Appointments, Remunerations, and Good Governance Committee is a single committee, and this committee has not been made into two, to enhance coordination, to make it more efficient. In addition, the Audit and Control Committee, and that of Appointments, Remunerations, and Good Governance, are chaired by independent directors, in accordance with what has been legally foreseen. As for the composition of said committees, with competencies in matters related to business of the company and management matters, it has been considered timely for these to be part of these directors who are proprietary directors and another external director, for them to contribute their technical know-how and experience. Finally, in the Corporate Governance Yearly Report and the Yearly Report on Remunerations, there are details on the contracts of executive directors.
As for compensation and severance, they maintain the conditions that were in their contracts before they were appointed executive directors. In addition, as for the Yearly Report on Remunerations of Telefónica's directors, corresponding to the financial year 2023, I'd like to inform you that the Board of Directors approved in its session on the 21st of February 2024, in accordance to the proposal made by the Appointments, Remunerations, and Good Governance Committee, that in addition, on the 23rd of February 2024, it was registered also in the Stock Exchange Commission, and is available since that date on the company's website. Finally, I want to communicate that we will make available to shareholders on our website, the full text of the report that the chairman will present to this ordinary GCM.
If we now move on to the voting process, the proposed resolutions that are put for the approval of this GCM, in order for public representation request to be effective, those directors who may be in a situation of conflict of interest, they will exercise their vote in accordance with the precise instructions given by the shareholder represented. If the shareholder represented had not given precise instructions or these were wrong, then this board member will not exercise the vote of the shares represented by him or her, and it will be the secretary of the GSM that will exercise the vote for said shares.
Those shareholders that are attending the GSM in person and wish to vote against or abstain against any of the proposed resolutions included in the agenda, can state this and the presiding committees, presided by the notary and his coworkers, on the side of this room. Votes will be considered favorable, in terms of the proposed resolutions, on behalf of those shareholders who don't vote against or abstain. Likewise, and in accordance with what has been said in the call for the meeting and on the corporate website, the shareholders or their proxies who remotely attend this GSM, can issue their vote on the proposals included in the agenda from the time the president has declared the meeting quorate.
In this case, the voting process will end once the voting of the proposed resolutions takes place at this venue of the GSM, and once the summaries of said proposed agreements has taken place, or proposed resolutions. As for the proposed resolutions included in the agenda, will be, it is not necessary to fully read the proposed resolutions if the text has been given to the shareholders at the beginning of the GSM, as has been the case, and also said proposed resolutions have been made available to remote attendees. In order to move on more quickly in this event, we will just underline the main points.
The full text of these proposed resolutions, you'll be able to see on the screen, and those who are attending remotely can access this via the participation platform, and these will be included in the minutes. Firstly, approval of the individual consolidated annual accounts, consolidated non-financial information, and management of the board of directors during fiscal year 2023. In this point of the agenda, as for the approval of the following agreements. First, approval of the annual accounts and the management report of both Telefónica SA and its consolidated group of companies for fiscal year 2023.
We propose to approve the individual annual accounts, balance sheet, income statement, equity, cash flow statement, the consolidated financial statements, consolidated annual accounts, and the management reports of Telefónica S.A. and its consolidated group of companies for the fiscal year ended on December 31, 2023, finalized by the Board of Directors at a meeting on February 21, 2024. To approval of the statements of non-financial information of the consolidated group of companies led by Telefónica. To approve the statement, non-financial information of consolidated group of companies led by Telefónica fiscal year 2023, included in the consolidated management report of Telefónica S.A. and its group of companies for such fiscal year, and specifically, the information regarding climate change and the decarbonization targets included in Section 2.2 of such report. The financial and non-financial information has been audited by PricewaterhouseCoopers.
One point three, approval of the management of the Board of Directors of Telefónica S.A., to approve the corporate management of the Board of Directors of Telefónica S.A. during fiscal year 2023. Second, approval of the proposed allocation of the profit, loss, and losses of Telefónica S.A. for fiscal year 2023. To approve the following proposed allocation of profit, losses of Telefónica S.A. for the fiscal year ended December 31, 2023, to allocate the amount to the following ends: EUR 91,095,635.32 to the legal reserve. EUR 63,868,252.60 to voluntary reserves. Third, the re-election of the statutory auditor for fiscal year 2024.
In this third point of the agenda, we propose, in accordance with the proposal made by the Audit and Control Committee of the Board of Directors, to re-elect PricewaterhouseCoopers Auditores, S.L. as the statutory auditor of Telefónica, S.A. and its consolidated group of companies for fiscal year 2024. Fourth, the re-election, ratification, and appointment of directors, if applicable. In this point four of the agenda, four point one, to re-elect Mr. Isidro Fainé Casas as a director for bylaw mandated term of four years, following a favorable report from Nominating Compensation Corporate Governance Committee. Two, to re-elect Mr. José Javier Echenique for four years as an independent director. Four point three, to re-elect Mr. Peter Löscher for a new term of four years as independent director. Four point four, to re-elect Ms. Verónica María Pascual Boé for a new period of four years as an independent director.
4.5, to re-elect Ms. Claudia Sender Ramírez for a new term of four years as an independent director. 4.6, to ratify the appointment by co-option of Ms. Solange Sobral Targa, agreed on by the Board of Directors, and appointed as a director for a term of four years as an independent director. 4.7, to ratify the appointment by co-option of Mr. Alejandro Reynal Ample, agreed on by the Board of Directors, and appointed as a director for a term of four years as an independent director. Fifth, to reduce share capital through cancellation of own shares, excluding the right of creditors to object, amending the text of Article VI of the bylaws relating to share capital. In this fifth item on the agenda, the proposal is to reduce the share capital of Telefónica S.A.
by EUR 80,296,591, by means of the cancellation of 80,296,591 shares of the company currently held as treasury stock, representing approximately 1.4% of the company's current share capital. This reduction in share capital will be made with a charge to unrestricted reserves by means of the funding of a reserve for canceled share capital in an amount equal to the par value of the canceled shares, which may only be used in compliance with the same requirements of those established for reduction in share capital of the Companies Act. Accordingly, there will be no possibility to go against this. Six, shareholder compensation, distribution of dividends from unrestricted reserves.
In this sixth item, the proposal is to distribute the dividends in cash with a charge to unrestricted reserves through the payment of 0.3 EUR per share. The first payment, 0.15 EUR, will be carried out on the 20th of June, 2024. The second payment, for the same amount, will be paid on the 19th of December, 2024. Seventh, approval of a long-term incentive plan consisting on the delivery of shares of Telefónica S.A. to senior executives of the Telefónica Group.
In this seventh item on the agenda, the proposal is to approve a long-term incentive plan consisting of the delivery of shares of Telefónica S.A., to comply with the objectives, targeting senior executive Telefónica Group, including the Executive Director of Telefónica S.A., who comply with the requirements established for this at each moment in time and who are invited to participate in the plan. The purpose of the plan is to encourage the commitment of the executive directors and the senior executives of the company and its strategic plan, linking their compensation to the creation of value for the shareholders of Telefónica, and to the sustainable achievement of strategic objectives in a manner that is aligned with best compensation practices, offering a competitive compensation package that contributes to retaining the senior executives holding key positions in the group.
The main characteristics of this incentive long-term incentive plans are as follows: The plan will have a total duration of five years and will be divided in five cycles of three years, each, different to each other. The first cycle will begin on the first of January 2024, and each participant will be allocated at the beginning of the corresponding cycle, a maximum number of theoretical shares, and the specific number of shares to be handed over will depend on the compliance on the objectives set for each cycle. In any case, the total of shares to be handed over for the execution of the plan for all participants, including the executive directors, will never be able to surpass 0.45% of share capital of Telefónica S.A. at the beginning of the corresponding cycle.
The specific number of Telefónica S.A. shares, within the maximum established, will be handed to participants at the end of each cycle, will be conditioned by and be determined by the level of compliance with the economic financial objectives met, and the objectives linked to sustainability, the environment, and good governance. The objectives will be approved by the Board of Directors at the beginning of each cycle of the plan, at the proposal of the Appointments, Remuneration, and Good Governance Committee within the framework established within the remuneration policy of the directors. The Appointments, Remuneration, and Good Governance Committee will do a yearly follow-up of the objectives, and once each of the cycles of the plans has been completed, the degree of achievement will be determined. The Board of Directors will value the report drawn up by the Appointments, Remuneration, and Good Governance Committee to calculate the shares handed over.
The handing over of shares, these may be treasury stock or new emission shares, will take place at the end of each cycle in 2027, 2028, and 2029. 100% of the shares that are handed over to executive shareholders will be subjected to a retention period of two years, which will be extended to three years if the number of shares subject to the commitment of permanent holding of shares is not met. Eighth, the delegation of powers to formalize, interpret, remedy, and carry out the resolutions adopted by the shareholders of General Shareholders' Meeting.
In this eighth item on the agenda, the proposal to this GSM is to authorize, on a several basis, the Executive Chairman of the Board of Directors, the Chief Operating Officer, the Secretary of the Board of Directors, and the Deputy Secretary of the Board of Directors, such that any of them can formalize and execute the resolutions. Ninth, the consultative vote on the 2023 annual report on directors' remuneration. In the ninth item on the agenda, the proposal to the GSM is to approve, on a consultative basis, the annual report on directors' remuneration for fiscal year 2023. So now that the reading of the proposed resolutions have been read, that will be subject to your approval, the president will present his report to the GSM.
[Foreign language]
[Foreign language]
We are very concentrated on our four core markets: Spain, Germany, the UK, and Brazil. So we're very focused on improving our position there.
[Foreign language]
[Foreign language]
The future is here, and we are ready.
Accionista.
Shareholders, we are at our centenary, and we're at the height of our history and prepared for the future. A company, a company like ours has to have a proposal and reinvent itself to last 100 years. Only those companies that innovate have the right to continue to exist, and Telefónica is that type of company. The visionaries at that time founded our company, and since then, Telefónica has been, and is, people serving people. People with a shared proposal. We, those of us who are here, it is our responsibility to make sure that it continues to be that, and we accept that challenge and with pleasure. Now, the networks that began our history, that made sense for voice, then started to decline while the new products started to rise: data... And that required new networks.
We knew how to foresee this and build this new future. In 2015, we had 320 million customers. Now we have 388 million. We have more customers that are more satisfied, customers that have seen the change and know the value of what we produce. In 2015, the revenues from connectivity and digital products accounted for 46%. Now, 76%. We've transformed our revenues, and we're moving towards the future. This required a deep change in the company. We've had to change our network. Copper and mobile technology couldn't deal with this growth within data traffic. In 2015, the data traffic in our network was 17 million terabytes. Now it's 149 million terabytes.
We've deployed more than 3 million kilometers of fiber and used 4G to 5G technology to 78 base stations. We've increased by 250% our processing. And it was so important to create this, these new things and close off the old networks. We dismantled 126,000 tons of copper, 4,000 central offices, and 44% of the 2G and 3G systems. We have done a lot of investment. Accumulated investment during this period was more than EUR 72 billion, and a debt reduction of EUR 22 billion. The generation of net profit has EUR 21 billion, and the generation of cash flow, EUR 40 billion. We've allocated EUR 19 million to our shareholders, and we've increased our net treasury to six billion. Corporate actions by EUR 95 billion.
We've reduced by 81% our emissions, and the women now account for 39% of our teams and 40% of the board. We've more than 100,000 people are being retrained for this new world, and we've invested more than 30 million hours of training to do that. The foundation has devoted all of its resources to social programs to improve the lives of 130 million people. Now, why have we made this huge transformation in our company? Because we're a stronger company and better prepared for the next 100 years. We are a company that knows what our proposal is. We make our world more human by connecting the lives of people. We're the company that puts the customers in the center, looking at excellence above all.
A company that is trustworthy there when we, when it is needed, and we have no fear in competing. We've revolutionized communication. We saw telephony over copper 100 years ago, and now 5G and data 5 years ago, and we're, we're dealing with this change. We're European leaders back 100 years ago, and now we're the leaders in the rollout of fiber. We're the company that has imagined a new sector and is leading, leading this through the GSMA. We're a responsible company. We're a fundamental part of the societies that we form part of. In 2023, we've created more than EUR 49 billion for the GDP for our major locations, and have more than EUR 7 billion in taxes for those countries. So we are prepared to help the countries that we are working in.
Prepared for a new period. The world that we're looking at eight years ago is here now. At the GSM in May 2016, we talked about machine learning and artificial intelligence. I shared with you the need to change Telefónica into a platforms company and the need to have connectivity with cutting-edge connectivity. And this fifth platform linked to artificial intelligence, and I committed to build something that no one had ever seen at that time. This world is with us today, and during this path, we had Brexit, COVID, globalization, the energy crisis, and high inflation, and a much more difficult environment. And technology is coming into a world where disinformation, inequality, polarization, have created... cast uncertainty on everything. And it's the biggest technological change in the history of humanity, and the background is artificial intelligence.
Man creating, for the first time, machines that have the capacity to be, for intelligence. Telefónica is key in this whole process. It's been part of the solution of problems through technology and a commitment to our people. At the beginning of this second century of life, it's time to share with you our pillars of how we see the future. We see artificial intelligence and computation, Web3 and future generation webs generating bigger changes than electricity, steam engines, and so forth. The technology is going to change everything again. We see a world where the policies are being redefined, where there's new actors, new players. They're vying for economic leadership in the world. The technological platforms dominating the world are generating sovereignty over and above national sovereignties.
These same platforms are at risk due to these new champions in computing and by citizens who are starting to call for their digital rights and don't want those rights to be abused, and they want a responsible use of energy and telecommunications, a new collective awareness that requires a new social contract. We have regulators that will have to abandon regulation from last generation and have a new type of, a broader type of regulation, to understand that it's now time to allow us to compete on an equal playing field. We have this explosion of data in our networks, and we were staying ahead of that game starting eight years ago.
Technologies like edge computing, network slicing, Open RAN, open broadband, generating super computers where there used to be networks, and through Open Gateway, creating new areas of innovation for developers, companies, and individuals. We have a new era full of opportunity that require new rules, and since there are no precedents, we need to base all of our all this on values. In Telefónica, we think the best way to stay ahead of this future is to build it, and that's what we are doing. Connectivity makes it possible—it makes the future possible, that networks aren't an impediment, but and an enabler to be able to support this, this number of data and this responsibility, so that wherever we are, the networks give equal opportunities for everyone, leaving no one behind.
Artificial intelligence is a source of value and efficiency, and therefore, through this connectivity, we've built the capacity, cognitive capacity, to provide services and products that are cutting edge, giving our customers ways to improve their lives. We need fair laws for all players, that we all make the same contribution, and there is no abuse. We think that data sovereignty is part of personal dignity, and cannot be expropriated without the user's knowledge. We have a new social contract. This requires a new social contract. It's the time for people, it's the time for social sciences, sociology, and anthropology. We think that technology is at the service of people and not the other way around. Therefore, we want to share this new social contract and be part of that.
We commit to a responsible use of technology in a world without rules. We created, for the first time, an ethical monitoring commission for artificial intelligence for all of our stakeholders. We, Telefónica then, is at the vanguard or at the service of our customers. We commit to grow and generate value for our customers, shareholders, employees, and stakeholders. And therefore, in November of last year, for the first time in 12 years, we held an investor day where we shared 3-year objectives, despite the uncertainty of our environment. We asked for a fair playing field to compete with a new regulation. We need new regulation. We're committed to collaborate with the sector and the technological ecosystem, so that the supercomputers that we are creating can connect to the cloud. We're committed to fighting against the abusive use of networks.
We will continue advancing in best practices of corporate governance, maintaining Telefónica as a leader in sustainability, and we understand the interest of Telefónica in the investment company and investment community, all of the stakeholders that want to be in Telefónica, because Telefónica is part of the future, future that we are betting on. We welcome those that decided to participate in this future, and of course, we thank those that have come with us hand in hand during this path. We're in the future. We know that we've met our financial objectives that we established at the beginning of 2023, and that we improved in the middle of the year. So that's our starting point, and we reiterate our commitments that we made public in November. Over the next three years, we will grow in revenues and operational profit.
We will grow in cash flow generation by 50% to reaching EUR 3 billion. We'll continue to reduce our indebtedness ratio, and we will, we will distribute more than EUR 5.1 billion in dividends, but especially, we will continue being loyal to our spirit. Thanks to all of those that found part of Telefónica during this incredible journey. Thanks to the human team that has been working with us during all of these years. Thanks to our suppliers that have made us, that have been with us and have been part of our journey. Thanks to our customers that have... for their loyalty and have made even sense to what we're doing. And especially, thanks to our shareholders for giving their trust to this company and supporting us in the good and bad times.
I started out by talking about the importance of, you know, our 100-year anniversary and our vision to what brought us here, and the objectives that we have to—for a better and better-prepared Telefónica. And today, I commit to all of you to continue building a Telefónica, that when we look back 100 years from now, we'll feel proud. The same, the same pride that we feel today. Thank you very much.
The final attendance figures of shareholders to the current, GSM have been drawn up by the external company to Telefónica, Indra, which is prestigious and has reviewed and analyzed the data of attendance in person to this GSM, as well as remote attendance, and distant voting and by proxy. This is available to shareholders who wish to analyze this data. The final data of attendance are 13 shareholders present, holders of 148,501 shares. Zero shareholders represented by proxy.
The attendance in person are 5,293 shareholders present, holders of 342,471,964 shares, and 17,964 shareholders represented by proxy, holders of 3.229554193 shares. As for the shareholders present, 23,270 holders of 3,003.572174658 shares, which represents 62.12% of share capital of the company. Next, we will have the round of interventions of shareholders who have asked for the floor. I'll give the floor to the secretary to moderate the interventions.
First of all, and in accordance with what has been stated in the call for the meeting, the current GSM, those shareholders or those represented by proxy and exercising their rights, so who have wished to intervene in this GSM via remotely, in person or remotely, to request information or clarifications, on the items on the agenda, or to request clarifications on information accessible to the public that the company provided to the Stock Exchange Commission, or as for the auditor's report, or three, to make proposals of those in those cases allowed by law, have been able to do so from the time they registered to participate remotely through a form on the Participation Platform. Likewise, remote attendees will have been able to make their questions in writing up until the time the president declared the meeting quorum.
Likewise, those shareholders or those represented by proxy who are attending remotely have been able to say if they want their intervention to appear in the minutes. Secondly, those shareholders who are attending the GSM in person and who have requested the floor, in order for the GSM to proceed with no problems, and based on our experience and the number of participants in previous year, the duration of any speech must not surpass five minutes. Once five minutes is concluded, the shareholders will be warned and asked to finish their talk, and if they do not do so, they will be informed that their turn has finished, and the floor will be given to the next shareholder.
Likewise, I'd like to remind you that this presiding committee will be able to shorten interventions when the subject is not included in the agenda or has nothing to do with the information accessible to the public, made available to the Stock Exchange Commission by the company since the holding of the last GSM on the 31st of March, 2023, or with the auditor's report, or has been sufficiently well debated on, or if it makes the proceeding of the GSM more complicated. The information will be given when requested in as far as possible, and those requests for information that cannot be dealt with straight away will be replied to in writing within seven days after this GSM concludes.
Next, in relation to those shareholders who are attending this GSM remotely, I'd like to inform you that Mr. Intergugan, Mr. Torres Sánchez have declared the wish to intervene via the means provided for this. The request for information of said shareholders have put forward are focusing on the following matters: measures for internal control and trade unions. Now, the round of interventions of shareholders present in person at this GSM begins. Mr. Santiago González Carrero has the floor.
Buenos días. Good morning, Chairman, board members, shareholders. I speak on behalf of the Elderly of Telefónica, and our association that is 30 years old, with 20,000 partners. I am the president of, expressing our congratulations for the fantastic results obtained during 2023. Telefónica has always been providing public service to the societies where it operates, and that makes it different from other companies. Its generous spirit, empathy with social problems as well. Through its foundation, it carries out projects like ProFuturo to integrate children in education systems, offering alternatives for development that otherwise they would not have, or voluntary, Telefónica volunteer programs collaborating in different social organizations. Our association participates in many projects. This year, 241, as just another part of the labor work done, the work done by Telefónica.
Therefore, we like to believe that we're contributing something to social responsibility that has always, Telefónica has always shown in the places where it works. In addition to 600 volunteers, it is working, it has thousands of calls and visits to the most vulnerable, given their age, health, solitude, and we're working through our voluntary program of Telefónica. Telefónica Foundation, we'd like to thank them for everything that has been done, so that the very difficult situation that some people, some elderly are dealing with, can be remedied, those that are older or have other types of deficiencies. So thanks for the fantastic work being done for accompaniment, closeness, solidarity, and problem-solving of people who are on their own and need our help. The Telefónica people have solidarity in their DNA.
As I mentioned, personally, I'd like to thank this support and affection that we always feel from you, and the commitment to continue contributing to our solidarity work and volunteer work, providing energy and human warmth to the most vulnerable people who need us the most. In short, I'd like to just remember the hundreds of volunteers that are doing this extraordinary work, and we feel very proud of them, and we congratulate them for that good work. I'd like to say that on these occasions, we appreciate the closeness and affection that we receive from the company, that we continue linked to, that we can count on all of us in terms of humanitarian work and social collaboration, so we can work through the Telefónica Foundation.
We also work on dependence and disability and other issues related to health, and working with other projects with insurance brokers. Also, we're working actively to defend the interests of the elderly and those that will soon be elderly. We form part of the Confederation of Organization for the Elderly, CEOMA, and therefore, we're on the Elderly and Pensioners platform, more than 5,000 people, elderly people, and we're at the part of the, the... We're on the board of the 65YMÁS, and we have, we're, we're very visible in all that we are doing. This year, I'd like to congratulate the company for its 100-year anniversary. This is a milestone that's very difficult in such, in a very difficult today. So congratulations for that, and thank you for allowing us to share this celebration with you.
You're giving us, making us visible, those that have formed part of Telefónica over the past century, with like, programs like Universo Telefónica, with more than 30 partners that are also part of that 100-year anniversary. So thank you so much for this shared excitement with the elderly. Just one more thought. We would like your support to give greater visibility within the company, greater visibility to our associations. It's important that the new generations of Telefónica, our workers, work in benefit of the entire society, and so we count on your support. Once again, thank you so much for your collaboration with us, and we will collaborate with you in anything that you need from us. Thank you very much. Thank you very much, Mr. Santiago. Now, Damián Gálvez López has the floor. Good morning.
My question has to do with, after the recent approval of the merger between Orange and MÁSMÓVIL, first of all, I would like you to talk about the effects of that merger and the con- as a consequence of that, I'd like you to talk about the impact of the remedies that have been imposed on those companies, the merged companies. And I would like you to inform us about the situation then, the new situation in the Spanish telecommunications. Thank you very much, Mr. Galveca. Now, José Antonio del Barrio Colmenarejo has the floor. Mr. Chairman, board members, directors, all in Telefónica is really, it's really been disappointing. Mr. César Alierta made Telefónica an international giant. He was there being the first company in IBEX 35, EUR 80-something billion in capitalization, with a dividend of EUR 0.75 per share.
These data, some of you have known this because you belonged, at that time, to the board of Telefónica. Today, Telefónica S.A. is the ninth company on the IBEX, with a capitalization of EUR 22 billion and a dividend of EUR 0.30 per share. In 1993, the best year of the history for the IBEX 35 since 2009, we are the black sheep, and you have losses of EUR 892 million. Mr. José María Álvarez-Pallette, aren't you ashamed of yourself? You're not working or managing the company well, and this is having an impact on thousands of minority shareholders that see every day their investment is worth less and less. In my case, 70% less due to ...
I bought shares in 2015 at EUR 12.75, and today, after nine years, they are worth EUR 3.94 each. Mr. José María Álvarez-Pallette , do you think you are in a position to direct Telefónica S.A. another three or four years now that the company is capitalizing, it capitalizes about EUR 10 per share, that you even mentioned as the just share price in more than one occasion in the past? Mr. JJosé María Álvarez-Pallette , despite the price of the share and the benefits have gone down, you and the rest of the board have increased your salaries, both fixed and variable, in unjustifiable proportions over these years. My question is: Are you, Mr. Chairman, board members, directors, willing to raise your salaries until you can... The capitalization of the value is around EUR 8, or wait until you get the capitalization at EUR 8?
Would you, when you brought down the dividend from 75 cents to 0.40 cents, and after that, down to 35 cents per share. And now I'm wondering, when is that dividend going to go back up? We need these thousands of minority shareholders that are owners today of 69.70% of Telefónica S.A. As a shareholder, I should, I should ask for an advisory board for minority shareholders that can help give more transparency to your work and for the rest of the minority shareholders, so that we have firsthand news of the company, where we can hear their possible, possible complaints. José María Álvarez-Pallette, do you for 2024 to 2025, do you have three major milestones, which are, first, the capitalization of Telefónica S.A. of around EUR 8 per share.
Second, distribution of a dividend, if possible, not lower than EUR 0.40 per share. And third, make Telefónica the place in the IBEX 35 and at world level that it should have, and given certain circumstances today, it is not holding that position. These will only be achieved with a lot of hard work and effort, and that is what I'm asking you for, Mr. Chairman, to celebrate for all of the shareholders, this 100-year anniversary of Telefónica S.A., you have to present this year, 2024, very good news. Yes, if that's not the case, then the party will only be for you, which are the ones that earn the money. Thank you.
Thank you very much, José Antonio del Barrio Colmenarejo. José María López Ruiz has the floor.
José María López Ruiz, you have the floor, sir.
Good morning. We come to this meeting in representation of ADICAE, the protection of consumers in Spain, and the small shareholder and savers that have delegated their vote in us to represent them here at the meeting. The consumers and small shareholders over the past several months have seen an investment firm to the possibility of becoming a major shareholder. After that, the SEPI came in and decided not to lose control of this company. And just a few days ago, Criteria raised its share to become a majority shareholder. Is that going to have an impact on the small shareholders, the minority shareholders? Also, we are concerned with the concentration of shares in just a few hands.
We want to remind you at Telefónica, that the small shareholders are legitimate owners of the company, and when will we be allowed to really participate in the taking of decisions affecting the future of the company? Also, reduction of the staff, contributing to an improve of the profit margins of Telefónica, have implications that can be very negative, especially for those employees and potentially for the quality of services offered to consumers. A reduction of more than 20,000 people in the staff since 2017 could mean greater work, more work for the remaining workers, which could also mean a decrease in quality for customers or lower capacity to respond to technical problems of consumers. How does Telefónica plan to approach the negative implications that could affect the quality of customer service?
Also, as in this consumer association, we've been receiving complaints about the inclusion of certain charges in the bill and other problems, billing problems. This means lack of satisfaction with the total cost of the bill and the services provided. ADICAE believes that Telefónica, at the very highest level, is abusing its customers. What measures will be adopted to improve the situation of consumers with regard to the constant complaints that I just mentioned? Thank you very much.
Thank you very much, José María López. Now, Raúl Morodo Ramírez has the floor.
I wasn't given the right to repli- to replicate and also to speak with the press. Series of circumstances. And we're going to focus on the certain points I want to make today. In the notaries, I would like to challenge the accounts. Why am I challenging the accounts? Well, for a simple reason. Last year and this year, I requested those BINs from Telefónica. This is... Not everyone might know what that is. That's the tax losses of the group, attributable to previous tax years that can... Both in last year and this year, I requested information on these amounts, on the amounts that could be reduced from the income tax and the amounts used. Both at the last GSM and this one, the response was to look at the fiscal note published in the annual accounts, and that's it.
All of this is because I was an old shareholder of Terra, and in my investigation of everything of everything that belonged to the shareholders of Terra, and there was a corrupt action taken through some of the different banks to get all of these tax tax credits in 2008, 2009, 2010, and I think 2011 as well. Telefónica, with the debt that it had, did not use the BINs from the Telefónica group. In other words, it didn't use this compensation of tax losses that it had and that it could have reduced its tax bill in those years. Also, on top of that, Mr. Alierta. He bought shares and millions of options that I have noted here.
With the notaries, he bought options in the group for 2012 and 2, 2014. Those two fiscal years. Remember that the trajectory of Mr. Alierta and what he, what his responsibility was in the Tabacalera company. I met several times with the two commissioners, the Good Governance Committee and the Audit Committee. The words from the mister- the secretary that I met with on one occasion, was that they were not allow me to meet with those two committees. In terms of the point on the selection of Mr. Isidro Fainé, if I'm not poorly informed, I think he's around 80 years old. I think that here, 80 years old. I don't know if there are many 80-year-olds here, but at that age, you should be taking walks.
He's part of the corrupt group around Terra, and he was a board member of Telefónica at that time, under, through CaixaBank. This man, from my point of view, cannot contribute anything, and he hasn't contributed anything for some time now. Now he's being reelected, a man, 80 years old. And he's also a board member of CaixaBank. But anyway, I've also requested the immediate firing, his firing in Telefónica, the chairman. His CEO, Ángel Vilá , personally. I think that he cannot be in that position. He was also a board member of Terra. When there was a merger on Terra, this person, he was a board member under Telefónica, and he left that post, and in the last year and a half that I've been researching or investigating this corruption, Telefónica, BBVA, the Caixa, and the state.
This man was a board member, also of BBVA, under Telefónica. In the board, he was a proprietary member named by Telefónica on the council of BBVA, because he was the only major shareholder in BBVA. But they had four proprietary board members in Terra. This man was also a board member of Endemol, and with the tax losses of the group were activated. And regarding Terra, the board of Terra, directed by Telefónica, they hid their tax credits, EUR 1.5 billion in tax credits, actually. And this meant today, 11.11 EUR for every shareholder of Terra, who received Telefónica shares. Now, through burofax and so forth, I've requested Mr. Álvarez-Pallete and the Secretary General of Telefónica, Mr. Pablo de Carvajal, that this money belongs to the shareholders of Terra.
Also, on top of that, when they approved the government in 2012, these tax credits could have been used by the Telefónica Group. The Ministry of Finance, with Mr. Montoro at its head, said that he, they couldn't, that despite the regulations and what those that had, were in charge of Telefónica said, they said, "These tax credits in Telefónica could be compensated." Mr. Alierta knew this, and that's why he invested. And also, Mr. Iván Rosa, the husband of the ex-vice president of Ms. Santa, Mrs. Santa María. Now, all of this was irregular. This all meant that EUR 176 million to the treasury. And I said to the secretary, who's looking at his watch now, that I've finished my five minutes, allow me just a little bit more, please.
And Mr. Morantín, please finish up. Calm, calm, calm yourself. And that 11 years, Mr. Álvarez-Pallete, I apologize for all of the other shareholders of Telefónica, but they belong to the shareholders of Terra, those eleven years. Now, a few, as you say, in this company, you stand for values and so forth. That money is illicit money that was stolen from us, from the shareholders of Terra, for publicity, public relations with Mr. Álvarez-Pallete at the head. And since he says he's so honest, money should be given back to the shareholders. The introduction of the first shareholder was, it was in a different room. I was told that in the room that you were in, you're probably very busy. I can see empty seats. I don't know if the notary can say tell me that that room is full, and they didn't let me enter.
Another thing that I asked information about was the period for people with information can buy shares, because Mr. Fainé, at the CaixaBank continually is buying share, Telefónica shares, which I think is all well and good, but I asked in my report for people that have privileged information, what the time bar is for the purchase of shares, and I wasn't given the information. And in the publication of the good governance report, everything is there, and they say that they have everything is legal, but I shareholder, why isn't this information given to a shareholder? Information from 2023. I asked for this period, and I could continue with many more things, but I think that here the most... Oh, there is another thing. Mr. Álvarez-Pallete, do you think you're a good chairman for this company? Do you defend the interest- Please, Mr. Morodo, please finish up.
This is very important. Please don't turn off my microphone. How is it possible that the government can say that it's going to come into the social capital of the company, and it's going to with 10%, and you have the gall to say that at the current prices? I don't understand that. Is this... They're gonna get 10% of the company at the current price? That's, it's incredible. Why didn't you come out, Mr. Álvarez-Pallete, come out publicly saying that Telefónica, I can go, and that any shareholder can, can buy into the company, but at market prices, I don't know what favors you're conceding here, because in the, the tax issue, fraud and others, I think that it's important, Mr. Morodo, you have just one more minute. If not, I will close your... Turn off your microphone. One, one minute, please.
You know me quite well. We've met. You know who I am. So I inform you that from now on, you're going to have news because I have my two daughters here. They were babies at the time. I was in charge of the platform for those who have suffered the fraud from Terra. People here from Colombia, Algeria. I informed you of the legal case for this fraud against Terra. So this mafioso type of attitude from the executives of the company, I hope that those EUR 11 come back to the minority shareholders. I talked about the dismissal of several people. Just like last year, I said I wanted to point on the agenda and let the shareholders vote on whether you should continue being the chairman of the company.
I would like to do the same with your CEO, Ángel Vilá , with Isidro Fainé, which I hope is not elected, that the CaixaBank can put another person in his place. Please finish, Mr. Morantin. And Laura Abasolo, of course, that should... Thank you very much, Mr. Morantin. Now, Rafael Miralles Ponte has the floor. Board members, public, general public. My intervention has to do in representation of ADICAE and the small shareholders and customers of Telefónica that have given me their vote, and we represent them at this event. At the end of 2023, Telefónica increased its revenues in the main markets. The net ordinary profit, excluding provisions and extraordinaries, has grew by 17.1%, reaching EUR 2.3 billion. However, if we consider all of the accounting variables, the company reported losses of EUR 892 million.
This reversion of the negative trend of profits before interest, taxes, and depreciation, and amortization in Spain in the Q4 of 2023 is positive news. Although this situation has not been translated into a better service, a better service for the customers of Telefónica. Specifically, the price, prices have gone up in Telefónica, and does this increase mean better quality of the service or new benefits for users? So in short, the small shareholders of Telefónica find that the company finished 2023 with major numbers, but these, given for one reason or another, are not reflected in the remuneration of the shareholders. The dividend is the same as it was last year. What explanations can you give us for this situation? You must realize that the shareholders, long-term shareholders, have suffered the value of their shares.
If we go back to 2017, for example, the share cost was about EUR 10 in twenty- and it was up as high as EUR 13 and even EUR 20 at one point in history. The current situation is certainly a concern. Do you have any plan to bring up the value of your share? And also, I think it's a good idea to underscore our concern for the evolution of the debt of the company, which has become an albatross on the back of the company. This debt is above EUR 27 billion. Can you give us a strategic plan to turn this situation around? Remember that we are shareholders for more than 30 years now, that have been loyal to the company and users of your services.
When we listen to these magnificent ideas of the company and the profitability of the company, of our investment, I think that we should see many more evidence of this.
Thank you very much, Mr. Miralles . Mr. Jesús Tesorero Hernández has the floor. Thank you.
Good morning.
Good morning. Perhaps it would be nice if you could reply in a credible manner to the following question, that almost all the minority shareholders, humble minority shareholders, ask themselves who are here today. After so many purchases of shares on a mass scale, after so many favorable agreements with the competition and with others, and after so much favorable regulation for our dear Telefónica, the only thing that's going to increase today are your salaries, whilst the share price does not even get as high as one's hand, EUR 5. Why not? Thank you.
Muchas gracias, Don Jesús Tesorero.
Thank you very much, Mr. Jesús Tesorero. Ms. Marta Millán Crespo has the floor.
Good morning, Chairman, and all those present. Before you underlined the importance of AI, and all of us are observing that increasingly, more and more is spoken about this, and many companies want to make use of its applications to reduce expenses or to increase their revenues. Nevertheless, there are critical voices with regards to AI, and this could pose a risk for those companies that wish to apply this. Could you tell us about your company's posture with regards to AI? What risks and opportunities exist in its use, and how is AI already being used in the company? Thank you very much.
Thank you very much, Marta. And Mr. Pedro López Jimeno has the floor.
Well, very good morning to you. First of all, I'd like to thank you for the opportunity for being able to participate in this GSM. I have a very specific question that has to do with the Open Gateway project. More than a year has gone by since the launch was announced, and I'd be very interested in you telling me what progress has been made during this time, and whether you are sufficiently satisfied with how the project has gone to date. Thank you very much.
Thank you very much, Mr. Pedro López. Next, José Margalef García has the floor.
Good morning to you all. I'm going to begin with a small speech. Mr. Chair, Secretary, Directors, I'm José Margalef García, and once again, I have the opportunity to speak to you all within the framework of the GSM, in this particular, corresponding to 2024.
I do so on my behalf and on behalf of colleagues who have given me their proxy, and on behalf of all those who, without being shareholders, they are part of the former employees of Telefónica. Some already retired, integrated into the elderly group, others in the pre-retirement phase, and others who are part of Confedetel. So on my behalf and on behalf of all of them, I would like to thank you for your stance that I seem to detect in the decisions taken by you about with regards to our groups. As for conflicts that we still have with the tax of the Ministry of Finance, although to a lesser extent now, we hope that the recent measures adopted on payments to the mutual companies will have less repercussion and get away the negative effect for orphanhood and widowhood.
The technique also to correct what we call a contributive balance. We call this the elimination of the drop in pensions, retirement pensions, having had to retire early. The first to retire were forced to retire early with a deduction of 8% for every year early that we retired before 65 years old. In my case, and many, the case of many colleagues, the reduction is of up to 40%. And if we consider the amount that was earned up to 65 as a prepayment to retirement, 40% that is deducted is the return of that amount that was paid in advance. And so up to the age of 81 years, then the amount received between 60 and 65 would have been returned, and so therefore, I should now get 100% of my pension.
I would like to ask you, Mr. President, for you to give us your support in this matter, in the contacts you have with other state bodies. Thank you very much, and I'm sorry.
Thank you very much, Mr. Margalef. Bernardo Fernández de Santos has the floor. In your recent Capital Markets Day, you announced a dividend of at least EUR 0.30 in cash for the next 3 years, and I would like to ask a couple of questions about that. First of all, is this dividend open to... Is it compatible with the generation of cash flow? Is this dividend or could it be- it could increase over the next, in future years? And thirdly, if there's greater cash flow for more than is needed, are you thinking about launching a repurchase of shares? To conclude, thank you to the board, and especially your chairman, for your management. Thank you.
Thank you, Mr. Bernardo Fernández. That's the end of the Q&A session. Now, there's going to be a centennial video, and after that, we'll respond to the questions posed. Te voy a echar de menos. Un beso.
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language]
[Foreign language] , don Raúl Morodo Ramírez. Mr. Morodo Ramírez, he requested to exercise his right to call for the dismissal of Ángel Vilá . Now, under Article twenty-three of the board, these votes from shareholders that expressly did not vote in favor are considered, or so only those who vote in favor or abstain to that proposal may do that, going to the notary board and through the application, the remote application.
In the section provided. The notary will then make this known in the minutes. The shareholders will be issued to be able to issue their voting with regards to the proposal as from now onwards, until the president or the managing director have provided an answer to all the questions put forward by the shareholders. Once the interventions on behalf of the shareholders have ended, we will now attempt to give replies, and for ease of this, we will try to group the answers together by subject.
Yes, those that were directed to me, I will answer, and then I'll shift the floor to my CEO for other questions. From Mr. Santiago González Carrero, first of all, I'd like to tell you thank you very much for your words, and thanks also for your continued support that your association gives this company, and the solidarity that you have shown, which is an example for all. Our thanks is always with you, and even more today, given this celebration of the 100-year anniversary. The history of our company cannot be understood without all of you, without the elderly, so I wanted to thank you, really, for your work. Also, to tell you that we've tried to find the greatest number of people, of former employees... providing so many services to this company to recognize your contribution.
We've gone through really fantastic times and listening to voices from the past, and this has helped us very much to build the script for the history of Telefónica. We're always available to the society, to serve the society, to provide our human side. Thank you very much for your work and your intervention. Now, in terms of Mr. Don José Antonio del Barrio Colmenarejo, the share price over the last several years, we haven't been immune to the trend, the downward trend of in revenues and EBITDA in our sector, given our exposure to Latin America and interest rate exchange rates. So this is one of the reasons why telecoms in Europe has done poorly over the last five years, 66 percentage points worse than the overall market.
And our, as managers, we have to take decisions and to deal with the situation, and that's what we've done. At the end of 2019, we gave the three pillars of our strategic plan. Given the pandemic that we couldn't foresee, where we transformed Telefónica, focusing on the four main markets, reducing capital employed in Latin America with the launch of Telefónica Tech, Telefónica Infra, and the new operational model. All of this, while we kept to reduce debt, to try to continue with financial flexibility. And now, having analyzed that step and having recovered growth in the main parameters of the company, as we complied with guidance last year, that we raised in the middle of the year, for the first time in 12 years, we launched a new strategic plan.
We presented that on Investor Day for the first time in 12 years, and we announced growth in revenues, in operational profit, net profit on leases, and growth in cash flow by 10%, while we're committed to continue reducing debt. We've returned to growth in revenues and OIBDA since 2015 and 14 consecutive semesters with the public, doing better with our, with our results. This has made us more efficient, and we'll continue taking the right decisions to deal with the regulatory difficulties and try to preserve and increase the value for our shareholders. In terms of remuneration of, directors, the financial, situation of GPS are present in the variable remuneration of our people, of our directors, all the executives....
in Telefónica, so we're trying to align the, our interests with those of the objectives of the company and the interests of our shareholders, and regarding the cons, consultation group that you mentioned in your intervention. The question by Rafael Miralles Ponte about the dividend and the share price, I'll try to respond to that. Yeah, I think I responded to that in the previous question. In debt, over in the last Investor Day, we established an objective to continue to reduce debt over the next three years, which shows the trust that we have in our plan, especially in cash flow generation, and this allows us to commit even more to our level of investment. For years now, we have this commitment to deleverage, and we have been reducing debt, but we want to take another step forward.
Therefore, we implemented a capital program that's even more intense, and we believe that we're past our top levels of investment, and then CapEx over sales of less than 12% for 2026, as we established. The management of our debt and our treasury has been very good over the last several years. We've increased the life of the debt in more than 12 years, more than 80% is fixed, and we have a liquidity situation that is well above the days for the loan days for the next several years. The next answer to the next question from Ms. Crespo about artificial intelligence. Telefónica began ten years ago with the first use cases of AI, and now we have 630 use cases active.
We have a solid governance model and the use of data through our platform, through our Kernel, and we have a strategy, solution strategy using responsibly such a positive or a powerful tool as AI. We're also using this in our catalog of products and services through Telefónica Tech. Artificial intelligence, generative AI, through European institutions, is the time to put together an ethical code about the use of AI and approaching the risks. 5G networks and systems, so forth, but also the non-mobile network, advanced use of data, provisions for traffic. Also, it's helping us to optimize the consumption of energy on the commercial side, personalization of the offer, so we can better serve our customers, knowing our customers better. Through Aura, our customers can communicate with us every day of the year, at any time, and improving the quality of service.
In terms of the question, Pedro, by Pedro López Jimeno, about Open Gateway. Open Gateway is an ecosystem that is constantly evolving. That was an idea two years ago. It was simply a memorandum between several operators one year ago, and now it's a commercial reality with six national launches: Brazil, Germany, Spain, Indonesia, South Africa, and Sri Lanka, and many more countries that are coming on. 10 APIs are available, and Open Gateway is the beginning of a new stage in our sector. GSMA, for the World Organization for Operators, is backing this, and the main operators around the world have subscribed, and there are use cases. Anyone interested, we're at your disposal to talk about the commercial realities taking place and the advances made. But the message is that we think that this is a main part of the future of this sector.
The question by, from José Margalef regarding conflicts with the finance ministry. First of all, thank you for your words and your presence here. In terms of your collaboration and claims, we understand the situation, and we need to respect the courts and the solution mechanisms, and we will ask you please continue to work as an ambassador to the company. In terms of the question, I think with that, I've answered everything that I was responsible for. I'm going to turn it over to the CEO now. In terms of the question by Damián Galveca about the merger between Orange and MÁSMÓVIL, remedies and implications, we believe that there's an inconsistency there in the preliminary analysis done by the commission and the final result. The remedies announced are in line with what we expected and that we tried to reflect in our strategic plan.
Remember that in the preliminary conclusions of the commission, it was determined that there was no need for remedies in the wholesale market since it was competitive enough. But all of the remedies are going to work on the wholesale market in terms of the impact of these remedies. The beneficiary does not have enough spectrum in high bands or in low bands, therefore, is going to need an interim roaming agreement, and also a new roaming agreement with Orange is optional over the medium term, not compulsory. Therefore, Telefónica is in a competitive position to negotiate a new wholesale agreement with Digi. The Spanish market is one of the most competitive in Europe, and it has become more competitive due to our high quality of our network and our customer base.
We can now personalize offers despite certain limitations imposed by regulations. We don't forget that other operators that are coming up have high levels of leverage, and to preserve their existing customer base and the operations that they developed. So therefore, this limits their capacity to increase their commercial strength. Therefore, we feel very capable of continuing to compete in this new scenario, where there is a stronger competitor due to that Orange plus MÁSMÓVIL merger. In terms of the question number four by José María López Ruiz from ADICAE, first of all, your questions on shareholders have been responded to by the chairman. In terms of your question on the impact of the customers that have been...
Employees that have been let go by Telefónica and the dissatisfaction that you mentioned by some customers, I can say that in Telefónica Spain, well, our main objective is quality and customer service. There, in fact, in 2023, we have continued to improve their satisfaction, reaching the highest result in the history of our NPS indication, 9 points higher in December 2023 compared to the previous year. This confirms another year of leadership of Telefónica Spain in the market in terms of customer satisfaction. We are, therefore, having record rates of customer satisfaction in Spain, and we hope to continue offering a high-quality service that is perceived by our customers. We continue very committed to create this quality service and to be a benchmark in the telecom industry.
In terms of the question by Estela Torre on the web, about the losing jobs, labor rights, subcontracting, dismissals in Movistar, Chile, and the court case in Peru, and questioning transparency on the future of the company. Relating to all of these issues and the trade union comments over the last several years in Telefónica Spain, we've moved forward in developing a collective bargaining agreements through dialogue and social agreement to reach the agreements that we have reached. This has allowed us to, by unanimous decision, agree with the main trade unions, the third collective bargaining agreement up to 2026, the end of 2026. In terms of the adjustment plan in the associated companies and the size of our staff, this reflects the exercise that we're carrying out to the digital transformation of Telefónica and its activities.
This transition means a reconfiguration of the capacities and volume of workers. Therefore, it has been a positive process. We haven't had to force anyone out, but the company has committed to social peace and dialogue. In this search for balance, the third collective bargaining agreement creates stability and conciliation, new forms of work and productivity, including salary yearly salary reviews within that collective bargaining agreement. Also, the context where of each employee and absenteeism, and so forth. We're moving towards a work week of 36 years, with high-quality employment and retention and retainment of the best talent through a lot of investment in retraining of our workers. In terms of Chile, in the different geographies that we're working in, where we're restructuring, we always do this within the social parameters.
In Peru, the international labor authorities didn't see any type of violation of any rights of workers in that country. In terms of transparency of the future plans of the company, just say that last November, as you know, that we had our Capital Markets Day, where we announced the new plan of the company, and we announced the commitment to for the five different areas over the next several years. Lastly, in the new shareholders coming into the company, we believe that this contributes to the financial stability of the company, reflects the commitment and trust in the long-term strategy of Telefónica. Our plan is based on strict and disciplined use of capital with cash flow that grows by 10%. With that, we have answered all of the questions and interventions.
I'm gonna give the floor to the secretary.
As for those matters brought up by Mr. Morodo, the information has been provided that you are legally entitled to, on behalf of the company. With regards to statements made, we must repeat that this is about a transaction that took place more than 20 years ago. So therefore, it has no effect now, and all other comments have nothing to do with the agenda of the meeting or with the right to information with regard to this GSM. Allow me, before continuing, to put the items of the agenda to the vote. I'd like to say I feel extremely proud about being part of this company, and also Mr. Isidro Fainé, he's been a member for many years of the board and has contributed a great deal. So now we will put the proposed resolutions to the vote.
The secretary has the floor. As the questions raised by the shareholders have been replied to and in accordance with what has been mentioned beforehand, the process of voting remotely since the meeting was declared quorum, has finalized, and so I'm. It's a pleasure to inform you that with the votes that have, we have from those represented by proxy and those who voted before the GSM, and regardless of the votes in favor, against, or abstain, with abstention, in the manner that was expressed before, there is a sufficient majority for, to approve all the proposed resolutions subjected to this GSM, so each and every one of the items on the agenda have been approved.
Likewise, in relation to the proposed resolution not included in the agenda, based on the information of the presiding committee, we communicate to the shareholders that this has been rejected by a majority of the share capital. As for Mr. Isidro Fainé, his vote cannot go forward as the proposal has fallen in this GSM, in accordance with Article 23.1 of the regulations of the GSM. Without prejudice to this previous information, the information will be published on the corporate website of the company. The notary will proceed to authorize the minutes of said GSM meeting and complying with the legal requirements. Those shareholders who would like to read this can request this at the Telefónica Shareholders Office to be sent a photocopy of the minutes of the GSM.
Before adjourning the session, I would like to repeat just how proud it makes me to hold the centenary or celebrate the centenary of this company. Thank you very much.