Holding 68,553 shares. One shareholder represented by proxy holding 3,468 shares. The provisional information on attendance in person is as follows: 5,001 shareholders present holding 1,178,560,324 shares. 22,377 shareholders represented by proxy holding 174,200 shares. In total, 27,390 shareholders attend the meeting in person or by proxy, holding 3,720,786,545 shares, representing 65.62% of the share capital of the company, Telefónica, S.A. There is sufficient quorum for the valid constitution of this GSM in the second call.
In view of the information provided by the secretary, I hereby declare a valid quorum to exist for this ordinary general shareholders meeting on second call. The notary has the floor. Ladies and gentlemen, shareholders, in compliance with the provisions of commercial law, I hereby ask the attendees whether they have any reservations or protests with respect to the statements regarding the number of shareholders attending the meeting and the capital present and represented by proxy. Shareholders attending remotely can report them now using the participation platform. I hereby inform you that there have been no reservations or protests with respect to the statements made by the secretary regarding the number of shareholders attending the meeting and the capital present and represented by proxy.
There being no objections of any kind to the matter raised by the notary, I confirm that the general shareholders meeting of Telefónica Sociedad Anónima is validly established on second call in order for the shareholders to discuss and decide all the matters included on the agenda. The secretary has the floor again. I hereby inform that shareholders who have recorded a reservation or protest with respect to statements of the secretary regarding the number of shareholders attending the meeting and the share capital present and represented by proxy. In particular, these reservations or protests that I will record in the minutes of this meeting are on the April 10th, 2025 or with regards to the auditor's report. The agreements, then they can go to the shareholders assistance desk located on the corresponding sides of the rooms where this meeting is being held.
At these desks, their identity and the number of shares represented or held by them will be verified. Subsequently, the Presiding Committee of the General Shareholders Meeting will then establish the order in which they are to speak. Shareholders wishing to have their presentation recorded in the notarized minutes of the meeting are kindly requested to deliver the written text thereof to the notary's office located at the shareholder attendance desk. Shareholders attending this meeting remotely have been able to intervene from the time of their registration on the participation platform through the participation form enabled for such purpose. Thus, remote participants have been able to submit their participation question or proposal in writing until the chairman has declared the valid establishment of this meeting.
On the other hand, the resolutions proposed by the Board of Directors to all of you, ladies and gentlemen, shareholders, are those included in the documentation that has been made available to you since the date of the call to the meeting, both on the website and at the registered office of the company. The shareholders are reminded that the full text of the proposed resolution submitted to a vote is available to them in the participation platform for remote attendance at the meeting. Moreover, pursuant to applicable legal provisions, the shareholders at this general shareholders meeting must be informed of the following matters.
First, information must be provided regarding the company's annual corporate governance report for fiscal year 2025, which has been prepared in accordance with the regulations established by the Spanish National Securities Market Commission, and which has been included in the management reports that are attached to both the individual annual accounts of Telefónica and the accounts of its consolidated group, all of them for fiscal year 2025. The aforementioned annual corporate governance report was registered with the Spanish National Securities Market Commission on February 24, 2026, and has been available since then on the website of the company.
With regards to the company's level of compliance with the recommendations of the good governance code and pursuant to the chairman's directions, I inform you that, as set out in the annual corporate governance report for fiscal year 2025, Telefónica complies with practically all of the recommendations of the good governance code.
Regarding the recommendations that Telefónica partially complies with, I would like to point out that firstly, the limit on the maximum number of votes that a single shareholder may cast, 10% of the total share capital, as stated in Article 26 of the bylaws, is an effective tool to protect the interests of all minority shareholders. Secondly, and in relation to the committees of the board of directors, it should be pointed out that the Appointments, Remunerations, and Good Governance Committee is a single body, and to date, as there have been no discussion of splitting up in order to favor coordination and ensure that it continues to work efficiently.
Thirdly, finally, and in regards to fiscal year 2025, the annual corporate governance report and the annual report on directors' remuneration provide full details on the terms and conditions of the executive directors' contracts, and in the case of the chief operating officer, with respect to severance pay, he maintains the conditions that were included in his previous contract prior to being appointed as chief operating officer.
On the other hand, regarding the annual report on remuneration of directors of Telefónica for fiscal year 2025, I inform you that it was approved by the board of the company at its meeting on the February 23rd, 2026, in accordance with the proposal made by the Nominating, Compensation and Corporate Governance Committee, which was registered on the February 24th, 2026 with the National Securities Market Commission and has been available on the company's website from that date. Finally, you are hereby notified that the full written text of the report that the chairman will now present at this ordinary general shareholders meeting will be published on the website and be made available to the shareholders.
As regards the process for voting on the proposed resolution submitted to the shareholders for approval at this general meeting, please note that in order for public solicitations for proxy representation to be effective, those directors who might be affected by a potential conflict of interest will cast their vote in accordance with the specific instructions given by the shareholder they represent. If the shareholder being represented has not given specific instructions, or if the instructions given are ambiguous, then the director will not exercise the right to vote attaching to the shares represented thereby, and it will be for the secretary of the general meeting to exercise the right to vote attaching to such shares.
Those shareholders attending this meeting in person who want to cast a vote against or abstain from voting with regards to any of the proposed resolutions included in the agenda may express it at the desks attended by the notary and his officers at the sides of the rooms where the meeting is being held. Those shareholders who do not expressly declare their vote against or their abstention shall be considered as voting in favor of the proposed resolutions included in the agenda. In addition, as stated in the announcement of the call to meeting and on the corporate website, shareholders or their representatives attending this general meeting remotely have been able to cast their vote on the proposals regarding items included on the agenda from the time that the chairman declared the meeting to be validly established.
In this case, the process of voting will conclude once the voting for the submitted proposal begins in these premises where the meeting is being held, and after the summaries of such proposed resolutions have been read aloud. Proposed resolutions. As regards the proposals included on the agenda, pursuant to the regulations for the general shareholders meeting, it is not necessary to read a full or summarized version of the proposed resolutions if the text of such proposals has been provided to the shareholders at the beginning of the general meeting, as has been the case today, given that such proposed resolutions are available in the application for remote attendance at the meeting. Therefore, in the interest of providing greater agility to this event, I will limit myself to presenting to you the most important text of the proposed resolutions.
The full text of these proposed resolutions, which you can see displayed on the screen in this room, and to which the shareholders who are attending remotely can access through the participation platform, will be included in the notarized minutes of the meeting. First, approval of the individual and consolidated annual accounts and management report, consolidated sustainability information, and management of the board of directors. Under this first item of the agenda, the following resolutions are submitted for approval by the general meeting. 1.1, approval of the annual accounts and of the management report of both Telefónica SA and its consolidated group of companies for fiscal year 2025.
It is required to approve the individual annual accounts, the consolidated financial statements, and the management reports of Telefónica, S.A. and its consolidated group of companies for the fiscal year ending on December 31st, 2025, as filed by the board of directors at its meeting on the 23rd of February 2026. 1.2, approval of the statement of non-financial information and sustainability information of the consolidated group of companies. It is requested to approve the statement of non-financial information and sustainability information of the consolidated group of companies led by Telefónica, S.A. for fiscal year 2025, included in the consolidated management report of Telefónica, S.A. and of its group of companies for such fiscal year. Both financial and non-financial information has been audited and verified by the statutory auditor, PricewaterhouseCoopers, PwC. 1.3, approval of the management of the board of directors.
Likewise, it is required to approve the corporate management of the Board of Directors of Telefónica, S.A. during fiscal year 2025. Second, approval of the proposed allocation of the profits and losses. Under this second item of the agenda, it is proposed to approve the following proposed allocation of profits, losses of Telefónica, S.A. for the fiscal year ending December 31st, 2025, allocating the profits obtained by Telefónica, S.A. in the amount of EUR 1,060 million to voluntary reserves. Third, re-election of the statutory auditor for fiscal year 2026. Under this third item of the agenda, and pursuant to the proposal made by the Audit and Control Committee, and the Board of Directors submits the following resolution for approval of the shareholders at the general shareholders meeting to re-elect PricewaterhouseCoopers Auditores, S.L. as statutory auditor of Telefónica, S.A.
It's consolidated group of companies for fiscal year 2026. Fourth, appointment of the statutory auditor for fiscal years 2027, 2028, and 2029. Under this fourth item of the agenda, it is proposed, after having carried out a public tender process for the statutory audit, in accordance with the provisions of Act 22/2015 of July 20th on the audit of accounts and Regulation (EU) No 537/2014 of April 16th, and among the audit firms that have participated in the resulting impartial, transparent, and non-discriminatory selection process, taking into consideration the preference expressed by the Audit and Control Committee and endorsed by the Board of Directors to appoint the firm PricewaterhouseCoopers Auditores, S.L. a s statutory auditor of Telefónica, Sociedad Anónima and of its consolidated group of companies for fiscal years 2027, 2028, and 2029.
Fifth, re-election, ratification, and appointment of directors, if applicable. Under this fifth item on the agenda, it is proposed to re-elect 5.1, to re-elect Ms. María Luisa García Blanco as director following a proposal by the Appointments, Remunerations and Corporate Governance Committee for the bylaw-mandated term of four years with the category of independent director. 5.2, to ratify the appointment by co-option of Ms. Anna Martínez-Balañá as director, agreed at the time by the Board of Directors, and to appoint her as director following a proposal by the Appointments, Remunerations, and Good Governance Committee for the bylaw-mandated term of four years with the category of independent director.
5.3, to ratify the appointment by co-option of Mr. César Mascaró y Alonso as director, agreed at the time by the Board of Directors, and to appoint him as director following a proposal from the Nominating, Compensation and Corporate Governance Committee for the bylaw-mandated term of four years with the category of independent director. 5.4, to ratify the appointment by co-option of Ms. Mónica Rey Amado as a director, agreed at the time by the Board of Directors, and to appoint her as director following a proposal from the Nominating, Compensation and Corporate Governance Committee for the bylaw-mandated term of four years with the category of independent director. 5.5, to appoint Ms. Jane Thompson as a director following a proposal from the Nominating, Compensation and Corporate Governance Committee for the bylaw-mandated term of four years with the category of independent director.
Six, Shareholder Remuneration, Distribution of Dividends Charged to Free Reserves. Under this sixth item of the agenda, it is proposed to distribute a cash dividend charged to free reserves of EUR 0.15 per share. The payment of EUR 0.15 will be made on June 18, 2026. Seventh, Approval of the Remuneration Policy for the Directors of Telefónica, S.A. Under the seventh item of the agenda, it is proposed to this general shareholders meeting to approve the directors' remuneration policy of Telefónica, S.A., which shall apply from the very date of its approval and during the three following fiscal years, 2027, 2028, and 2029. Eighth, Delegation of Powers to Formalize, Interpret, Remedy, and Carry Out the Resolutions Adopted at the General Shareholders Meeting.
Under this eighth item of the agenda, it is proposed 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 may formalize and implement the foregoing resolutions. Ninth, consultative vote on the 2025 annual report on directors' remuneration. Under this ninth item on the agenda, it is proposed to approve on a consultative basis the annual report on directors' remuneration for fiscal year 2025. Upon the reading of the proposed resolutions to be subsequently submitted for approval, the Chairman shall present his report to the general shareholders meeting.
Good morning, ladies and gentlemen, shareholders. Welcome to the general ordinary meeting of Telefónica. Thank you for accompanying us here, physically present in the auditorium, as well as those who are following us from far away.[Non-English content]
A year ago, I stood before you. I had just been given this position. I wanted to talk about the way we wanted Telefónica to do. We wanted to reinforce our strategy in Europe and to simplify, make the company much simpler.
Concentrating on our core markets and to move forward and to reduce our exposure in Latin America. Today, I stand before you for the second time as a president with one clear objective, and that is accountability. Accountability with facts, accountability with results. About 15 months ago, we started this whole phase of deep transformation. Today, we have not come to talk about our good intentions. We have come to talk about execution. We've come to talk about results, and we've come also to talk about the future. In order to transform a company, the first thing we need to do is to analyze it in depth, and that is the first thing that we did.
We made sure that something was absolutely true, and that is that Telefónica is an extraordinary company, a leader in two of our core markets with advanced and solid infrastructures, pioneers in strategy for convergence, and especially with the enormously valuable human capital. We also identified what we needed to correct. The complexity of the organization, slow to execute, a lack of financial flexibility, a structural pressure in the costs, and also an aversion to take difficult decisions. Transformation demands clarity, and clarity implies taking decisions. We decided to simplify. We decided to be more focused. We decided to strengthen our balance and to take calculated risks because transformation is not born from comfort. It's born from being determined and by carrying out things by execution.
If I may make a little parenthesis, I'm British on my mother's side, as many of you might know, and I've always felt very comfortable with British humor. There is a saying that has sort of jumped into my head in the last few months working here. I believe that the company must transform, and I sometimes remind my team something that is said often in the United Kingdom, and that is, "If you don't do anything, the problem is that you never know when you've finished." In other words, I believe strongly that we must take action. Transformation requires assuming risks, taking risks, and identifying when we should take these risks rigorously. The world is living through an important change due to the technological impact at all levels, and especially everything that has to do with artificial intelligence.
In the 30 years that I've been dedicated to technology, I have never seen such useful, large, and disruptive advancement and specific disruptions as we've seen in the last four months. We're facing new challenges, but we also are facing important opportunities that we must take advantage of. We don't go with the wind, we adjust our sails. Spain, Europe, and the world is in the midst of a complete transformation, and Telefónica will be part of this change. We must be focused, and we must never waste time hunting for shadows on a sunny day. Therefore, at Telefónica, we have a challenge that will define our strategy for the next few years. In Telefónica, we assume the challenge of being the best point of access for citizens, companies to, and institutions to digital technologies.
We will become one of the best tech-telcos of Europe for the year 2030 and to be one of the best telco companies of the world by 2035. With this objective in mind, we want to transform our company completely. We start, first of all, with governance. We want to incorporate new people, new profiles that will help us to empower our board of directors adapted to the new objectives that we are going after. These people have international experience and digital technology expertise as well. Aligned with the good governance practices, we have reinforced the fact that we have more independent directors and also more women.
Since the last general shareholders meeting in last April last year, we have now incorporated to the board of directors as independent directors, Ana Martínez, Mónica Rey, and César Mascaraque, and we're asking this general board to ratify them. Also, the board of directors has agreed to propose before this general shareholders, Jane Thompson as an independent director. I want to thank the board members who are leaving for all of the good work that they have done and all of their commitment while carrying out their duties. Good governance is not a formal requirement, it is the basis that we need to have trust among our interest groups.
We move ourselves in a context or a market context that has a lot of uncertainty and geopolitical and economic uncertainty due to artificial intelligence and the changes that will come from this. It's something unstoppable. Therefore, we have a very clear route that we're following and our strategic plan called Transform and Grow, which we talked about and presented before you last November. It's very clear we want to make Telefónica a much more focused, efficient, and profitable company. As I said before, we want to turn Telefónica into the best point of access for people, companies, and institutions to have access to digital technologies. In order to achieve this, we have five main points or axes. The five priorities, but one single direction. The first one is to consolidate and become leaders in Europe.
Europe needs strong operators with the proper capacity for investment, with the proper scale, and with strategic vision. In this geopolitical instability scenario that we're living in, we defend firmly the consolidation of this sector in Europe as a necessary condition to be able to create European technological sovereignty. We share together with the European authorities, we're betting on the consolidation to build a stronger Europe. The time is now. The fragmentation of the European markets limits the scale, reduces the investment in technology, and makes innovation difficult. The technical world is not made up of just two. It's made up of three. It's not only China and United States, it is also Europe. In this new global balance, Europe needs companies that are leaders and able to compete, innovate, and to guarantee its technical sovereignty.
Telefónica wants to be part of this response, this European response. I'll give you an example. Quite recently, in this whole line of consolidation, what we have done is acquire Netomnia in the United Kingdom, an operation that strengthens our presence in one of the most relevant markets of Europe, and it also reinforces our capacities for networks, so new generation networks, actually. We're betting on consolidation in our key markets, and we move forward in the execution of our disinvestment strategy in Latin America. We have finished leaving Peru, Uruguay, Ecuador, Colombia, and Chile. We're concentrating in our four core markets, Spain, United Kingdom, Germany, and Brazil. Less dispersion and much more focus. The second point, a company. We will become a company which is much more innovative and competitive. We have simplified obsolete structures.
We've reinforced our talents, and our commitment to innovation translates to technical capacities that are concrete. I want to share with you three examples. The first one, Telefónica is implementing a cloud with an AI capacities and low-latency processing. This includes the deployment of our pioneering infrastructure in 17 edge nodes, and it helps with the digital services of a new generation that are much faster, safe, and efficient. Example number two, the resilience of our networks through automation. This is a capacity that's already been integrated into our infrastructure in order to guarantee continuity and safety in critical situations. That capacity has already been given to our clients, companies and administrations through Titan Connect, which is a solution that guarantees a safe and resilient connectivity in critical environments such as emergency, safety, and defense. My third example.
As an example of Telefónica betting on development and distributing audiovisual, high quality audiovisual matters, we have Movistar Plus+. Anatomía de un instante has been one of the largest audiovisual phenomena that we've had this year. Due to its quality, it has been well received by the critics and the public, and it's been used greatly in festivals and awards. Los domingos and La Infiltrada were a great year for Spanish cinema and with its awards that have been given in the Premios Goya and also the Oscar awards. These three examples I've just given you talk about Telefónica innovation, technology, and creating quality content. Now, the third point, better services and more services for our clients. Our commitment is very clear: to offer the best access to technology, more networks, more quality, and more capacity.
In the center of this transformation, we have our clients. The clients of Telefónica have to be the center of activities. Customer-centric. I come from a family that for many generations we celebrate it's a traditional game of football. For years now, I have been hosting this, and I recognize it's one of the best moments of the year for me. Sometimes it's difficult for some of us to show some kind of affection publicly. For me, this annual meeting that gathers all of my friends in the field to share an informal and fun day is my way of saying to these people how satisfied I feel by being part of their lives, and I want them to know that they're an important part of my life. That day, we have a spirit of complicity and trust.
That spirit, I have tried to bring it here to my professional world, to always have our clients at the center so that they will know that our main commitment is to gain their trust, because we know that if we're able to do so, it will be the best form of proof that we've done a good job. Technology is a tool for economic progress as well as social progress, but for many, it's also something that is quite worrisome because they don't know how to manage it or use it and take advantage of its possibilities. This is why in Telefónica, we have decided to be the best access point of all of our clients to digital technologies and the most advanced ones, too.
To deploy the best technology is to be able to contribute to the development of the world that is around us, and that is what Telefónica is about. I've always preferred that things should be done discreetly and without much noise. Technology applied to real needs. Point number four, to be an institutional reference of Spain in Europe and the world. Telefónica is a company that manages critical technology, but we're also a strategic asset for Spain and for Europe. We are an economic engine. We are social cohesion. We are critical infrastructure. I'd like to expressly mention the work that is being done by Fundación Telefónica. An example is the program for scholarships, technical scholarships, that was announced recently that it has to do with training people in artificial intelligence, data science, cybersecurity, or quantum technologies.
This initiative to train 150 young people in centers of excellence with the round trips to and from Spain. We are a company that has committed above and beyond the business, and we'd like to reinforce our role as an economic engine and also as part of a European technological sovereignty. Then point number five. Ambitious, rigorous, and efficient management. Transformation is only credible if it's executed with discipline. We commit to comply with our financial guidance, and we have done so. To direct a company such as Telefónica to do this, we need absolute discipline in our financial objectives. To manage rigorously means that we will not make great announcements, but we will do a lot of work. Only in that way we will be coherent before the market and before our shareholders.
These five main points define the route for Telefónica, and they have made us carry out transformations in our operations that have to do with CapEx and OpEx. The execution of our strategic plan, Transform and Grow, is already up and running. We have started down this path, and we are not going to deviate. Today, we can state this with the data, and we can back it up with data. In 2025, we complied with all of our financial commitments. We have grown as far as income is concerned, and we have made our profitability improve. The income of our cash flow has improved, and the income increases 1.5 as far as the interest rate is concerned. The EBIT adjusted to the exchange rate of 2025 has grown 2%.
The free cash flow of these continued operations has reached EUR 2,069 million. Six months ago, it was something that we promised, and today we see the results. Access is up to 326 million, which is 2% greater than last year. We are growing in B2B 7.1%. The income of IT, which is our main engine for growth, is now moving forward, and it is more than 48% of the income of B2B in 2025. In Spain, we have been able to have the best fiscal year we've seen in the last seven years, with simultaneous growth of EBIT, Adjusted EBITDA income and operating cash flow, which has been adjusted for the first time in 17 years.
The churn is a minimum in Germany, and I also want to highlight our strength in Brazil. Vivo is a leader. Its net benefit growth 11.2% in 2025 and already is, we already have 103 million mobile access. Vivo Total is growing at 41%. The income per digital services are growing strongly in B2B 29.5% as well as B2C 20.7%. We have also acquired 100% of the fiber of FiBrasil. We simplified the perimeter. We made it much less complex, and we strengthened the balance. Today, Telefónica is structurally more solid. The results include these extraordinary impacts that have due to this transformation. Now, our operations show the real strength of our business. We have gone from promises to execution.
The processes of transformation take time, but now we have gone from promises into compliance, promises into action. Telefónica keeps its word and will continue to keep its word, and we will keep up this commitment in the year 2026. We have met our targets. Our commitment for 2026 is a natural consequence of what we've already started doing. We will continue to improve investment in our customers and clients, investing in artificial intelligence. We will continue to broaden our fiber network in 5G in our core markets and then increase the capacity for fiber into five gigas in Spain and Brazil. To integrate solutions and cybersecurity and cloud in B2B and to strengthen our presence in defense products. We will simplify and optimize our costs. We will have more.
We will become more efficient, we will have more automation, and we'll be more focused. The conclusion that we have is that we have complied, we have kept our word in 2025, and we will continue to do so in the year 2026. One of the hobbies that I like the most in my life is to read, and what I really like is finding new words with strange meanings or unknown to me. I like to collect words, and I write them down in a notebook. Not too long ago, I came across one that I'd never heard of, and it's called [paratonomeaia], which is the belief that some people have, some executives or other people in important companies, that all of the people that are surrounding them are against them or want to lead them to ruin.
I can say quite clearly that [paratonomeaia] does not exist in this company, Telefónica. On the contrary, this is why I want to take advantage of this opportunity to wholeheartedly thank all of the team that work in Telefónica and publicly recognize their talent and professional attitude. No technology can substitute human excellence, and the better the technology, more talent is needed. Thank all of you. I want to thank all of the Telefónica people. Permit me to end with one last message. We are now living through a time of technical and geopolitical transformation that we have not seen before. In Telefónica, we want to be the protagonists of this transformation. We want to lead in such a way that every user will be convinced that Telefónica gives them the possibility to have access to the best digital products that are developed by technology.
We have a five-year plan, and we're already building a stronger and more efficient company, more efficient, more profitable, more disciplined, and better prepared to compete at a global level. We are complying with all of this, and we will continue to do so with ambition, with rigor, with responsibility for our shareholders, who I would really like to thank for their trust and support, and for the professional people who work with us and also for Spain, Europe, and Brazil. Spain and Europe and the world are going through a profound change. Telefónica wants to contribute in a decisive way to that change. Telefónica has met its targets from the year 2025. Transformation is already up and running. Thank you very much.
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The final information on shareholders' attendance at this general shareholders' meeting. 11 shareholders present holding 68,553 shares. One, shareholder represented by proxy holding 3,468 shares. Final information on in-person attendance are 5,046 shareholders present, holding 1,178,560,331 shares. 22,600 shareholders represented, totaling the figure there. In total, there are present or represented 27,661 shareholders attending the meeting in person, holding 3,726,013,000 shares, representing 65.71% of the company's share capital.
Now that the list of speakers has been closed, we turn to the presentations of the shareholders who have requested to speak. I give the floor to the secretary, whom I instruct to order and moderate the presentations.
First, as stated in the announcement of the call to this general shareholders meeting, those shareholders or their representatives who, in the exercise of their rights, have by remote means desired to make presentations at this meeting and, if applicable, to request information or clarifications regarding the items on the agenda, to request clarifications regarding information accessible to the public that has been provided by the company to the National Securities Market Commission since the holding of the last general meeting or regarding the auditor's report, or to make proposals in the cases allowed by law, have been able to do so from the time they logged on to the participation platform using the presentation form available for such purpose.
Thus, remote attendees have been able to submit and send their presentation, question or proposal in writing until the moment when the chairman declared this general meeting to be validly established. The shareholders or their representatives attending remotely have also been able to express their desire for their presentation to be recorded in the minutes of the meeting. Secondly, with regards to the shareholders that are attending in person and have requested to speak to facilitate the development of the meeting, out of respect for the rest of shareholders present at it and taking into account the experience of pre-previous years and the high number of participants, I kindly request from them to limit the duration of the exposure of their presentations not exceeding five minutes in duration.
To this end, after the said five minutes have elapsed, the intervention exceeds that duration, shareholders will be informed that their turn has ended, giving way to the next shareholder. I also remind you that this presiding committee may limit the presentations when the subject matter is not included in the agenda, does not relate to the information accessible to the public provided by the company to the National Securities Market Commission since the celebration of the last general meeting on the April 10th, 2025, nor on the basis of the auditor's reports is sufficiently debated or hinders the progress of the meeting. Any requested information or clarifications deemed admissible will be provided during the meeting, if possible, and an answer will be provided to the questions and issues raised also to the extent possible.
Any pertinent request for information received from the shareholders that cannot be dealt with at the meeting itself will be answered in writing within seven days of the end of this meeting. Next, with regard to the shareholders attending this meeting remotely, I would like to inform you that Mr. Luis Miguel Busto Maglián, representing the trade unions, and Ms. Adriana Aldén Mengo have expressed that they wish to speak via the means provided. The request for information focuses on the following matters, the redundancy plan, the dividend. We will now begin the questions from shareholders present in person at this AGM. Mr. Don Pedro López Martínez Andino has the floor.
Y es, thank you for the opportunity you have given me to be able to speak at this AGM. Mr. Chairman, last November, you presented your new strategic plan to make a stronger Telefónica and more profitable Telefónica. One of the measures that surprised shareholders most, and the market too, was cutting back the dividend vis-à-vis the future. In this respect, there are many shareholders that do not understand why, after so many years, the company has decided to change its remuneration policy despite setting a target of greater growth. Therefore, I would like to request that you explain to all shareholders, firstly, why you decided to cut down, cut back that dividend. Secondly, what performance you think there will be with the share price in the next few months and years. Thank you.
Thank you, Mr. López Andino. Ms. Raúl Morentín Ramírez has the floor.
I spoke at previous GSM meetings and it served very little, for very little or no purpose at all because Telefónica continues to operate in a very standard fashion, things have become quite serious now. I'm going to send a written document so that it is included in the minutes of the GSM. I will make it reach the notary this afternoon so that the secretary can answer important matters that may have a negative influence on the future of the company, and of course, its shareholders. The liability will lie in all Telefónica's directors, including those who are present here today, as well as those previous members of the board of directors, former members, because of their totally disloyal attitude that cannot be understood in present times of companies such as Telefónica.
I am wondering whether all the members of the board of directors of Telefónica are aware or whether they know whether the yearly audited accounts in all of these past years reflect the true reality of the company. I have serious doubts about this, and we do have to recognize the fact that Telefónica is a listed company, both in Spain as well as in the United States. I must point out that I, in my modest opinion, believe that the accounts do not reflect the true financial statements of the company that refer to the fiscal credit from ICOS, from the merger between Terra and Telefónica.
That Telefónica did a misleading maneuver against the shareholders of Terra to keep that asset as a property, an asset that to date these expenses have been deducted in the yearly account, so they cannot say that this is a past event, because in the current accounts, this asset is still being considered. I imagine that the council, the general council will say to placate me that I have a condemnation against me in the CIMA, the arbitration headquarters in Madrid. The CIMA simply pointed out that I breached the confidential agreement that I did with Mr. Pablo de Carvajal, and I did so because I was misled once again.
A legal cause was hidden from me with regards to the fiscal credits from the ICOS that Telefónica won against the tax office, and that was EUR 790 million in interest. Now, when I negotiated with Mr. Pablo de Carvajal, he hid from me this legal proceeding. I must point out too that I would not invest in a company whose compliance department, and there we have the director present, who is also a member of the CIMA, the arbitration headquarters where Telefónica forced me, or in the contract it said that they had to intervene. I don't trust Telefónica, and I can prove this with the facts.
The compliance department here in Telefónica is articulated, and it does not comply with its mission, and they are under the chair of the Audit and Control Committee's chairlady, the lady I mentioned before. It doesn't matter how many complaints you make and how many irregularities there are. They have no documentation, and they appealed against this ruling, and today I am still waiting for a reply to my appeal, or to a reply. I'm not going to go into the auditors and the company as a whole. As I say, I very much doubt what this fiscal credits from the ICO is all about, and there has been a clear breach of all the international accountancy standards here. That's all.
Thank you very much. Mr. Angel Carpintero Garcia has the floor.
Good morning, shareholders, directors, and chairman. First of all, I'd like to remember all those former directors, shareholders, and former employees, retired employees, and people who have died since the last GSM on the April 10th, 2025. First of all, I would like to request the secretary that when he moderates the GSM, he not repeat the warnings that we shareholders should shorten our speeches. Shareholders who are present and those who are following the GSM by other means, except for in the case of exceptions, we are all interested in things that have occurred, or are occurring, or might occur and that could be the result of Telefónica's management. Because even the stupidest person may have the greatest idea.
In any case, convene the GSM earlier if you wish or allow it to finish later because the most important event, Telefónica cannot be shortened. It should not be shortened. You, as the secretary from the previous term, you knew that this was not allowed, and I've read 19 pages in the past, and I have never been interrupted because they were important things, and we shareholders are here to criticize you or to applaud you for your management. All right. Mr. Isidro Fainé is very much aware of this, one of the biggest shareholders throughout Telefónica's phase through the La Caixa Foundation. Now, because of my age, I don't drive much, but it's a shame that you don't provide us with adequate lighting to be able to read things here because it's all dark here.
Thanks to my advanced age, I don't drive much, but I do meet a lot of people and retired people from Telefónica, from the 12 provinces where I have worked, and I have held positions in different places, and they all say the same, that the infrastructures have been abandoned since the copper network has been switched off. They have been totally abandoned, these facilities. That is what they say to me, and increasingly so, thanks to some maintenance work, some facilities are still there after 80 years of existence of Telefónica. Now they want to put up the emblematic building of Telefónica up for sale in Gran Vía number 98, when it has been and will be, whether you sell it or not, the old Telefónica building. With the millions that it will be worth, the results still don't improve.
They do not improve. The only thing that improves, and I have to congratulate the Chair for his presentation that was so very detailed, full of lovely words, and I would request that those words be put into practice because it was a speech that personally I liked very much. Therefore, the millions that will come out of the sale will not be put towards improving the results because of free competition and the proliferation of operators and carriers on a European level, such as in the United States and China or elsewhere, where they have three, four carriers or operators, and that's where the limit lies because technological progress cannot occur with different guerrillas. Then, of course, there are delays. Something very serious is that 90% could have been avoided in Spain.
If you drive along any national, provincial, or autonomous regional road and you see the old copper cables and the fiber that has been laid, you see cables that are hanging there that have been stolen, and they've all got hooked up, and they cut them at the height of a person. I've received complaints as a retired employee of Telefónica 25 years ago from people who've had their combine harvester damaged by steel cables that are just chucked amongst their wheat fields or barley fields. The problems have been resolved, but you've got to take into account, and I'm not reading my document here, that given the price of copper currently, those lines that have been have included three, two, and one cables that have been replaced by fiber. Those copper lines covered 25% of the cost, the decommissioning work.
We would have 70% of what it's worth for scrap in profits. It's terrible. With my presentation, I'm going to attach 21 photographs from around Spain and four from Brazil, from Rio de Janeiro. It's dreadful when you walk along the streets and see houses that don't have networks inside their homes. You see on the facades of the buildings, you see more and more cables hanging there from all the operators. It's a great shame because those things didn't use to happen in Telefónica. Networks were made to look smart before, and this should not be allowed to happen. I continue to read. The different cables of different calibers and capacities.
Well, the robbers have now found a system which is like a fishing rod that they use to cut cables without the need to climb up the post. They ask the Civil Guard. Well, the Civil Guard just detains them for a couple of hours, arrests them for a couple of hours, and the next day they're at it again. They're stealing the cables. This is dreadful. We have to put an end to this. We should have dismantled this. If the copper network has been switched off, it should have been dismantled because it would have covered our expenses and provided profits. Because when the copper network was switched off and the fiber came along, no single copper cable was decommissioned. There are two, three, and even four cables that were outside of middle-sized cities.
Cables that would go to the center of other villages, and then the headquarters would be set up, and the workman would concentrate. There would be aerial cables and sometimes underground cables. As I say, given the price of cable, 25%. I would like to convey to Mr. Emilio Gayo, responsible for Telefónica España for five or six years before joining as CEO with the chairman under Mr. Murtra. He already had responsibility for this. Now as managing director or as CEO, he is even more responsible for this because he has more power, more responsibilities. This started happening 10 years ago or 12 years ago or more when fiber was deployed and headquarters were shut down or facilities were shut down, which continued or was completed at the end of Mr. Pallete's term or the beginning of Mr. Murtra's term.
Now they're saying that they're going to start with the facilities. Those facilities are shut down, and they should be maintained. The most important thing is what is in danger of being stolen. It's dreadful seeing this when you drive along any roads in Spain, and this goes against Telefónica saying that it's the best company out there. Just look at the state of the cables, just abandoned and hanging there and harming farmers and their combine harvesters. That gets out. Another thing that I wanted to convey to you, because I am a little nervous, and I can't see properly here, despite the fact that I have quite a good eyesight, but because of the shadows and the lights, it's not possible to see properly here.
In 2023, several city halls or town halls in Spain drew up projects. There were different companies that came to town halls. In my village, in the province of León, a project went to the town hall, and I attached this to my presentation, with EUR 5,539.29 worth, charged to the European Union NextGenerationEU funds. It was the fund for the Recovery and Resilience Facility, and I attached a copy of this. Providing facilities with new fiberglass posts and a ditch or a trench, and a tube was installed. Three tubes were installed in the trench. Around 5 centimeters diameter and all knotted together. They believe that one post is valid for the future only. Only one single post out of all of them.
These three tubes serve no purpose because there's a trench, a Telefónica trench on the other side of the road called the Camino de las Bodegas, and it turns out that they have installed two posts to go to the cemetery in the municipality of 400 inhabitants to take fixed line telephone to the cemetery, when in the province of León, there are two town halls that have a fixed line there, and they probably don't have it anymore. In León and Ponferrada, it's throwing money away using European funds that is being wasted. Don't waste it with the funds that you will receive now to remove the shadows in the mobile telephony 5G sector. Those shadows in Spain, don't waste the money in the same way. Make good use of those funds, please, because all companies are doing so.
A company that I don't want to quote here, because if I do, it installed optical fiber in my village, and it's crossed a road underground, under the road, went, did a route of 3 km, and then went to another neighborhood on the side of the road. In total, 3 km more was used to cross a road when they needed to go back to the entrance point, when there was tunnels and tubes that already existed for the copper cables. It's such a shame that this cannot be easily explained so that everybody can know about the fact that part of European funds have been wasted. The deputy regional government there, who did an inauguration there, said, "You don't understand these things." I said, "Do you know who you're speaking to? I do understand.
You are speaking to a former Telefónica employee, and for thirty-something years, I was involved in all these things. That is the state things are in Spain. People who are incompetent are in positions who are in charge of things, and money is wasted uselessly. To conclude, since 1992, in the times of Mr. Cándido Velázquez- Cartero Ruiz, there was a readjustment of the workforce because the old networks and developments were more necessary than they are now with fiber optics and with progress in telecommunications. I agree with Mr. Emilio Gayo here that, well, with Mr. Murtra, actually, that Telefónica has too many companies, and there's no prosperity in the technology companies and one should move on to the next stage.
The collective bargaining agreements allowed for people to retire. Those who met the conditions in brackets or in inverted commas were almost forced during Mr. Villalonga Navarro's time to leave, and then individual contracts for early retirements were added in. In June of 1999, there was the first redundancy plan that took place, and it lasted for two years. Almost all these previous redundancy plans or people who took or who left were penalized by 8% for the number of years that they retired early, and normally it was five. They only had 60% of the value left, which was a ridiculous pension when they had served in the company for 42 years and paid into the social security system.
It turns out that in several provinces, just as happened in the Basque Country and Navarre and part of Catalonia, it turns out that they were given 70%, and only 6% was deducted instead of 8%. The laws and the constitution stipulates that all Spaniards should be treated equally. That is not the case. It is not the case. Now with the mutual companies, the same has happened. They have laughed at us in our face, us elderly people. They said they were going to pay us in 2024 or then in 2025, and let's see if finally, they pay us in 2026 or we will have reached our graves by then.
Well, now to conclude really, the only thing that I request is to be able to express myself because I have gone over my time, I admit, but it has been useful for listeners to hear me out. I believe that just as you welcomed members to the summit, new members to the summit, I think it's good to speak and to listen because even the stupidest person may have the most brilliant idea. I have colleagues all over Spain, and now I am focused on improving pensions because in Catalonia, they achieved this. There's an additional provision in law 40 20
2007 stipulates that those who retired before the first of January 2022 through bargaining agreement with individual contracts, as I say, with the bargaining agreement or through a redundancy plan, would see an improvement in their pensions if they had retired at the age of 60, of EUR 63 per month improvement. In Catalonia, that was. The law stipulates that social security will take this into account on request of the interested party. In Catalonia, 99.9% achieved this. In Castilla y León, nothing was achieved. In Navarra and the Basque Country, same there too.
There cannot be a single Spain or a single Telefónica if this thing, these things happen because there are abandoned buildings and facilities, and I'm not referring to the optical fiber closures that are taking place because they're small buildings. I fight, and I hope I have enough strength to continue attending, and I'd like to ask Isidro Fainé to continue to, who's a year older than me.
Thank you very much, Mr. Carpintero. Now, Mr. Marta Guitián Crispo has the floor.
Good morning, Mr. Chairman. From the beginning, since you arrived at this company, you've been talking about the consolidation of European, consolidation of the telecommunication sector as like creating this digital sovereignty and strategic autonomy. I would like to ask you about this. As more than a year has gone by since your management, what is your vision, your current vision for the consolidation of this European sector, and what role does Telefónica play in all of this? Thank you very much.
Thank you. Next, we give the floor to Mr. Ramón Hidalgo Cércoles.
Members of the board of directors and ladies and gentlemen, please. Would you please explain to us with greater depth the strategic plans, pillars that you have for the company plan? Could you please give us more details about the concrete priorities for the business that will take place in Spain due to the weight that you have within the group and the regulatory context in which you operate? Could you please tell us what are the lines of action that you consider to be most relevant to be able to continue to strengthen Telefónica's position and ensure sustainable growth in the next years in the Spanish market? Thank you very much. Thank you.
Next, we give the floor to Mr. Santiago González Carrero.
Good morning. Dear members of the board, shareholders, and distinguished guests, it is an honor to be here today representing the Association of Telefónica, and we're grateful to share with you not only the financial results, but also the important human and social impact that our generals that our association generates, because we honor the trajectory and the values of Telefónica. In Telefónica, we understand that talent and experience do not expire.
Our association is a vibrant reflection of this, made up by thousands of ex-employees that rather than retiring, have decided to reinvest their knowledge and time into the community through social work and volunteering. In the last year, we have intensified our commitment with several causes, proving once again the transformative force of a solidary spirit. We are focused on crucial matters such as digital literacy for elderly people, mentorship for young people who are vulnerable and at risk of being excluded, as well as other vulnerable people, and we've been taking our passion and help to those who need it the most.
I want to take the opportunity to thank publicly more than 600 people who volunteer their work. Now, we don't do this all by ourselves. We are strong, and we feel very proud for the collaboration that we have with the Fundación Telefónica, as well as the area of insurance for our volunteers. This alliance is of fundamental importance to maximize the impact of our initiatives as well as increase our scope. Together, we have designed and implemented projects this year, 250, that not only benefit society, but also strengthen the image and the social commitment that we have for Telefónica on a world level. We've also extended our hands to other organizations and social entities, making a network of solidarity that makes us much richer.
Personally, I have built this important company because this association of the elders of Telefónica cares about the well-being of the elderly as well. We stand for policies that help our elderly have a dignified and better life outside of the work area. This is an asset that it should be recognized because it's very valuable, and it should be taken advantage of and respected. We are part of the Confederation of the Elders, and we are part of the State Council, as well as sectorial ones. We also work with other areas that have to do with the elderly and the digital matters and other social matters as well. Therefore, today, apart from talking about our work, we also want to have a sincere and constructive request.
We would like to have greater visibility for our shareholders and for all of the voluntary work that we do. We believe that letting others know about our activities will not only inspire others to join our movement, but will also help to be a testimony or witness of our commitment and the commitment of Telefónica, especially in all of our interest groups, and that includes, of course, our stakeholders. We would like to invite you to look beyond the figures and see the tangible and human impact that this association of Telefónica creates. We are part of the history and the future of this company, and we are sure that making our work more visible, everyone will be benefited by this, and we are counting on you. Thank you very much.
Thank you. Now that we have finished, we will be looking at a video from Telefónica, and according to Article 520 of the Companies Act, we will proceed to answer these matters that have to do with items on the agenda using publicly available information provided by the company to the National Securities Market Commission since the last general meeting or regarding the auditor's report. As I indicated earlier.
Any request for information that cannot be addressed during this meeting will be answered in writing within seven days following the conclusion of this meeting. Now that the shareholders' presentations have concluded, we will endeavor to provide responses to those issues raised that are genuinely related to the agenda for the general meeting. In the interest of greater clarity, we will, to the extent possible, group such replies together according to the matters to which they refer. One, with regard to the questions concerning the company's strategy and development plans, I proceed to their response. Specifically, with regards to the question from Mr. Pedro López about the dividend and the assessment of the share or the share price of the share. Thank you for your question.
With regards to the dividend, as for the dividend policy, it is a comprehensive part of our capital allocation policy. We took into account the possibility of generation of cash flow and given the financial flexibility necessary for this new phase that the markets require. Our commitment is to share the generation of cash flow with shareholders. For 2026, our commitment is a dividend of EUR 0.15 in cash per share. In the medium term, we believe that the most effective way to generate dividends and to generate value for the share is to move towards the future, focus on the growth of the company and the necessary financial flexibility and the generation of cash flow.
As for the performance of the share price, we believe that the share price is and will be the result of the capacity to generate revenues in the market, to generate EBIT, quality EBITDA, and to transform that EBITDA into cash flow. We are focused on that in transforming the company to generate better results, better quality results with less uncertainty and less risk. Once we've achieved that, once we have gained the trust of investors that will be reflected in the share price, as we have seen in many other companies, as based on my financial know-how and my professional experience. To answer the question made by Marta Guitián about the consolidation of the sector in Europe. We were asked about our vision about possible consolidation.
We believe, as I said in my presentation and as our strategy stipulates, that there's a great dispersion in the telecommunications sector in Europe with 38 big operators and carriers versus three in the United States, three in China, three in India, just to give some examples. Scale is required to provide best services and have better infrastructure, and to develop our own technology, and to be able to be more competitive. We believe that the strategic reading that we have adopted is correct, and we will be able to see what progress is being made through the statements of political leaders on a European level and national companies. This is backed by the Draghi reports and Letta reports. Telefónica, in coherence with its history, will lead or co-lead that consolidation process.
We believe that this has to begin first intra-market and then, only after that can it happen at a European level. Unfortunately, even though I'm very eager, I can't share any of the movements that we're working on or any of the conversations that we may have underway. In addition, everything that has to do with consolidation, for good or for bad, only will be effective if at the end of the day there is an agreement reached. As for the presentation by Mr. Santiago González, on behalf of the elderly group from Telefónica, I'm grateful for the question, and I'm also grateful on behalf of Telefónica and its board of directors, and on behalf of myself as Chairman, the great task that they do based on generosity, rigor, and the great impact that you all have in the work that you carry out.
Your testimony reminds us of something essential. The value of Telefónica doesn't only lie in its technology or its capacity for innovation and its services, but also in its people. We are a company that goes a lot further than the business itself. The Telefónica employees behave like that once they're in Telefónica and when they have outside of Telefónica, when they've left Telefónica. Thank you for ATAM, the Fundación Telefónica, and the insurance area because this includes our commitment towards society, a commitment that I personally witness to. We share your aspiration to get greater visibility for the tasks carried out, and we will continue to make efforts to achieve this and coordinate ourselves as I believe we already do.
Your work should be recognized, your work and that of the whole association, and from the company, we will continue to foster actions that will give value to the social tasks that you carry out. As for the questions regarding the evolution of the business and the company, I will give the floor to the CEO, Mr. Emilio Gayo, to reply to those questions.
Thank you. As for the question by Mr. Luis Miguel Bustos, thank you for your question about the redundancy process in Telefónica. This will allow us to create trust, to bring in new specialized talent in new technologies, and it will allow us to improve the employability of our employees through re-skilling programs.
Likewise, it allows us to make progress on new work models where autonomy and responsibility become very relevant items. In Telefónica España, they've made more progress in these new labor practices. The result of the redundancy plan that we executed has been very positive. It shows the firm commitment of the company towards stability and social peace, thanks to a negotiated process that was very much backed by representatives of workers trade unions, and also very much welcomed by the workforce itself because as you could see, the most exits were voluntary. As for the other matters mentioned in your presentation, your questions are actually nothing to do with the agenda. To reply to the question by Mr. Ángel Carpintero García, and I'm grateful for his question about the cable, cabling in Spain, the use of European funds and pension funds.
I'd like to point out that as for the cabling in Spain, we withdrew many posts per year. We renewed 50,000 posts on a yearly basis, and we have plans to increase that figure to 100,000 posts or pillars. As for copper, 60% has been dismantled or decommissioned, and we're waiting to complete that task in the next 12 months. According to the standards in place, we place our piping cables in trenches, and it's not feasible to use the copper trenches. Telefónica always certifies the standards with a supervisory model and deployment, and we guarantee security. In short, the deployment of Telefónica is within the legal framework. As for the use of the European funds, we can confirm that the European funds that were received have been used for dual use. On the one hand, they have used.
They have allowed us to improve the infrastructures for 5G connectivity or fiber in those rural areas in Spain and to develop more advanced networks, such as edge computing. The funds have fostered the digitalization of our customers, SMEs, key accounts, big companies, and public administrations. Over the next few years, we will continue to execute these funds to improve better the technology and improve the service rendered to customers. As for the funds for retired people in Telefónica, there are allegations made against Social Security, and we make available to all former employees different places where they can send in their queries. To conclude, Mr. Carpintero, we're grateful once again your participation in the GSM, and we take note of your suggestions. In reply to the question made by Mr. Ramón Hidalgo, I'm grateful for his question about the strategic priorities of the company and the business in Spain.
I would like to point out that our commitments for 2026 are a result of progress made in the last few months based on the strategic pillars that we defined in our plan. We commit to improving or to continue improving customers' experience with the resolution of incidents in a more agile manner based on the use of AI and the use of other technologies we have at our disposal. In Brazil and in Spain, we have the state-of-the-art Wi-Fi 7 in people's homes that reflects or that translates into a much better coverage and experience. In residential area, we are accelerating convergence in Brazil and in Germany, and we're improving capabilities in the U.K., and we're expanding our ecosystem.
We are ensuring more prime, premium content in Spain, such as the FIFA World Cup that will be seen through Movistar Plus+ next summer. In companies, we will scale up cybersecurity and cloud and gain relevance in defense and in the U.K. In technological capabilities, we will improve this in Brazil and the U.K. 5G coverage in all core markets, and we will increase the network capacity from 1-10 gigas in Spain and in Brazil, and we will shut down copper in Brazil and complete the decommissioning in Spain. In simplification, we will complete the restructuring in Spain and optimize the tools and contracts with suppliers, and we complete the guide to automate processes and operations. We will maintain commitment towards talent and the training of the workforce, particularly with the use of AI.
To be European leaders in this sphere. As for our business in Spain, in 2025, we have grown in all variables, financial and commercial variables. We have the best operating data since 2018. We're growing in fiber, in converging customers, mobile television, thanks to a better combination in the market in net gains, ARPU, churn, and NPS, the index that measures the satisfaction of customers with us. As for financial indicators, these have grown simultaneously at the same time, for the first time since 2018. In 2026, Spain hopes to accelerate the rhythm of year-on-year growth of all of these financial indicators. This greater growth is based on a sound commercial action, activities, growing all strategic services and reduction of churn and improvement of NPS.
We hope to grow in retail based on leading ecosystem of digital services and the excellent performance of IT business in companies. In parallel, we continue to execute our ambitious efficiencies program to improve our operating cash flow adjusted after revenues. With regards to Mr. Ángel Carpintero's speech and to add to what Mr. Emilio Gayo said, I give the floor to Mr. Isidro Fainé.
Mr. Carpintero, you mentioned something without knowing the background. All the dividends from Telefónica, all of them are invested in social works. Not only what we have within Telefónica, but also other stakes, industrial stakes. Because I come from a poor family, and I am close to reality. Child poverty is very important, and we invest EUR 1 billion. We will be investing EUR 1 billion in the next four years. I don't know why you're complaining.
If everyone were to invest in social works, it goes back to society, to the most needy. I say this, that there's coherence. If you ever want more information, just call me. We'll make an appointment in Madrid, and I'll explain every detail of what our social work of the La Caixa Foundation is all about.
Thank you very much. Next, I give the floor to the secretary, Don Pablo de Carvajal, who will be answering other matters that the stakeholders have mentioned.
To answer the question from Madam Dia Portovello about remuneration and dividends, we say that the reduction of the dividend is within the policies of capital allocation, and the first priority of this policy is to invest in our business to make it grow. The second one is to make sure we have financial headroom, and the third one is the dividend in order of priority. As far as remuneration, from the directors, we have to say that it's linked to mostly two results. This implies that the variable remuneration is adjusted automatically to the way the company has been behaving as it happened in 2025. This is not discretionary.
It has to do with the dividend, but it's in a demanding model that is very demanding and has adjusted to what we have written there. This is the most coherent and responsible to protect the interest of all shareholders. With regards to the question of Raúl, Mr. Raúl Valentín, I'd like to say the following. All of the shares or the actions rather that you have started throughout all of these years in various jurisdictions have always had the same result. They've been filed away. Due to your behavior, the courts in Madrid have asked you to pay Telefónica a relevant amount, plus interest and costs.
Not only have you never won any of the procedures that you started, but also you have been sentenced due to non-compliance or due to lack of payment to this company. Now that we finished with the questions from our shareholders, now we have to put before you the proposals and the agreements of the agenda for the general meeting. Therefore, we give the floor to the secretary.
Having concluded the matters that have been said by the. According to what has been said before, the whole process of voting has ended for those who have been able to make their votes from this meeting with regards to the proposals within the agenda. Therefore, I am.
Consequently, I am pleased to inform to you that the votes resulting from the proxies and the distant votes received prior to this meeting, and regardless of the votes in favor, against and abstentions, if any, cast by the shareholders or the representatives attending this meeting in the manner indicated earlier, there is sufficient majority in each of the items on the agenda to approve all the proposed resolutions submitted by the board of directors to the shareholders at this meeting. Therefore, each and every one of these items on the agenda are hereby approved. With regards to number five or numeral five, we would like to inform you that after this meeting, the directors shall proceed to accept their appointment by any means administered by law.
Without prejudice to the foregoing, the final voting data will be published in the company's corporate website. The notary, Madam Notary, will clarify the minutes of this general shareholders meeting, adding all legal requirements that are necessary. Thank you very much, ladies and gentlemen, shareholdings, the shareholders. The meeting is adjourned.