Dear shareholders and other attendees, it's a great pleasure for me to wish you warmly welcome to the AGM of Orkla ASA, and I hereby declare the AGM formally opened. The AGM has been convened by the board pursuant to Section eleven of the Articles of Association. The notice, dated twenty-third of March this year, has been sent to all of the shareholders with a known address. It was also publicized as a notice to the Oslo Stock Exchange and on our websites on the same day. The board has decided, in line with the Articles of Association twelve, second subsection, that the documents to be discussed at this AGM should not be sent out physically together with the notice, but made available to the shareholders via the Internet instead.
On our home page, you will find, together with the annual accounts and your financial statements, and the annual report, and the auditor's report, and the appendices three, four, and six, as well as recommendation of the Nomination Committee. The financial statements, and the report, and the recommendations of the Nomination Committee were published on the seventeenth of March, whereas the other appendices were made public together with the notice on twenty-third of March. The shareholders who nevertheless have wanted to receive the documents physically, have been able to receive them free of cost by contacting the company. Any objections to the notice? That not being the case, I declare it legally convened. Let's present or introduce first those who are present. It's me, Stein Erik Hagen. I'm Chairman of the Board. Peter Ruzicka, CEO.
With the Secretariat of the AGM, with the person of the Executive Vice President, Karl Otto Tveter. We also have the Auditor of the Company, Jan Willem Svensson. Where are you? And then we will introduce the board to you. The whole board is here. We will see them here. You know me. You recognize me, I believe. And then it's the Vice President of the Board, Grace Reksten Skaugen, first elected in twenty twelve, and she works as an independent consultant, and she has several other directorships, among others in Investor AB. Ingrid Jonasson Blank, she's Swedish, and she was elected for the first time in twenty thirteen, and she's worked in ICA from 1986 to 2010 . She's well acquainted with the brands sold through our shops and it. From Denmark, Lisbeth Valther.
She was elected in 2013 for the first time. She's co-founder and CEO of Next Step Citizen. She has a long career in Lego, and she can also contribute a lot of knowledge on branded goods. Lars Dahlgren from Sweden. He was elected in 2014 for the first time. He's CEO of Swedish Match, a position he's held since 2008. Nils Selte, first elected in 2014. He's CEO of Canica, and he's also Chairman of the Board of Komplett and some other companies. Those are the board members elected by the shareholders, and we have those elected by the employees. Terje Utstrand, he was first elected in 2012. He's from Nidar, and he represents the Norwegian trade union, National Union of Food Workers.
Then we have Sverre Tønjum, elected in 2012. He's also from the negotiation system, Confectionery and Snacks, and he leads the National Council for the white-collar workers of Orkla. And we have Roger Vangen. He's from Stranda. You know what he's involved in? He makes pizza. Grandiosa, one of our most important products, so Roger is a very important man. First elected in 2016. Karin Hansson, she's from Orkla Foods in Sweden, and she's been part of different trade union management bodies, yeah, among them, the European Works Council. Peer Sørensen, he's from Odense, the marzipan. He's an observer at the board meetings, but as you can see from the notice, we have agreed to cancel this post as observer, and if the AGM so agrees, this post or this position will be canceled.
There's also representatives from the different business areas here today and from the executive board, and we now have the record of shares present. We now have advanced votes and attendees and proxies. 188 voting persons, shareholders, advanced votes, or with proxies, represent 338,053,335 shares and votes. The represented shares account for 49.59% of the total equity.
The shareholding, the represented shares, sorry, account for 49.16% of the voting shares in the company. That is excluding treasury shares. All of those shares that are represented at the AGM have voting rights. I would like to ask then, if there are any objections to the record? That seems not to be the case, which means that the record of attendees is adopted. Let me see what is next on the agenda. It according to the PLC Act, the AGM has been opened by me as Chairman of the Board. The first item on the agenda is the election of the chair of the AGM. Anders Ryssdal is our proposal. He has no shares in Orkla himself. Any against this proposal?
That not being the case, Anders Ryssdal has been elected Chairman of the AGM. We also have to nominate a person among the shareholders as a co-signer of the minutes. We propose Ann-Kristin Braathen from the National Insurance Fund. Votes against? That does not appear to be the case. That motion has been carried. Anders Ryssdal then has the floor. Thank you.
On my own behalf also, welcome to all of you. We are now on item two of the agenda, which is the adoption of the financial statements for 2015 for the Orkla ASA, and the annual report. And also the approval for the dividend in the sum of NOK 2.50 per share.
The director's report and the proposed annual accounts and balance sheet for 2015 for Orkla and for the group, and the auditor's report have been made available on the company website, and have been sent to all the shareholders who have requested them. The documents have been available for perusal in the company's premises since 17th March, 2016 . I assume that those present have familiarized yourselves with the content, so that it's not necessary for me to read all the documents aloud. The procedure of this item will be dealt with as follows: The CEO of Orkla, Peter Ruzicka, will now give us a briefing on the group's development and strategic position before the Group CFO, Jens Bjørn Staff, will then give us the highlights of the financial statements for 2015.
The Executive Vice President and Chief Executive Officer of the Orkla Foods business area, Atle Vidar Nagel Johansen, will then give us a report on Orkla's operation in Central Europe, and afterwards, we'll open the floor for questions and comments. Next, you will be presented with the board's proposed dividend, and then finally, a statement from the auditor's report. I now give the floor to Chief Executive Officer, Peter Ruzicka, who will report on the group's developments and strategic position.
[Foreign language]
Yeah. Thank you, Anders. First, I would like to thank all of you for your engagement by attending this annual general meeting. We greatly appreciate it. In my presentation, I would briefly like to summarize the operations in 2015, and then I would also like to report on our sustainability strategy. As I'm sure you will have noticed, the annual report and the sustainability report have been merged into one report for 2015. We've done this because it signals the significance that these issues have for Orkla. Let's start by taking a look at the key financial figures for 2015. The Orkla group achieved total operating revenues of NOK 33 billion, up 12% from 2014. The revenue growth is attributable to increased sales, acquisitions, and foreign exchange impacts.
It's also positive that the fourth quarter of 2015 was the seventh quarter running that we were able to report organic growth. The operating profit was NOK 3.6 billion, up 12% from 2014. The improvement is attributable to cost savings, improved operations, boosted sales, but also foreign exchange impacts. Jens Staff will be reverting to some of these details later. On the whole, the earnings per share came to NOK 3.24, compared with NOK 1.63 in 2014. In 2015, the Orkla share obtained a return for the shareholders of 42.4%. As a benchmark, the return on Oslo Stock Exchange was 5.9%.
I mean, if we were to compare ourselves with the current bank rates, then of course, we are satisfied with this. Let me now make some comments to developments throughout the past year. As I said, Orkla achieved growth both in terms of revenues and profits for 2015. This can mainly be attributable to increased sales, among others, due to several major innovations. A greater share of the innovations are now launched across country borders under local brand names. Often, we also see that new launches is the result of good cooperation between different Orkla companies.
By associating closer together as one Orkla, we can also benefit to a great extent from the expertise and the resources we have across the organizations, in the best interests of the consumers, but also the shareholders in terms of improved profitability. In the course of 2015, we have continued to invest in the branded consumer goods areas through acquisitions such as Cederroth and NP Foods. We have strengthened our position in existing geographical regions and categories. In addition, we have increased our exposure within the ice cream segments, in Orkla Food Ingredients, in vegan foods, and ecological foods. At the same time, we have reduced our exposure outside the branded consumer goods area through the sales of the Gränges shares, and continue the streamlining of our share portfolio, and this work will continue going forward.
After the end of last year, we've sold the remaining shares in Gränges. We have had our acquisition of Kavli in Denmark approved, and we have also had the acquisition of Hamé in the Czech Republic and Slovakia approved, and Atle Vidar will be relating to this later in his presentation. We have also signed an agreement for the purchase of four Finnish textile brands to strengthen Pierre Robert's position in the Nordic region. All these acquisitions make us more diversified and less vulnerable or less dependent on individual markets. Despite the fact that Orkla has delivered good performances in 2015, I can see that we also face challenges in several areas. We face keen competition, partly from strong local players, but also from big multinational companies with international brands.
And last but not least, we also face strong competitions from proprietary brands, also known as private labels. We also see that the customers are concentrating. We now have three major customers with similar situation in Sweden and Denmark, and also we see the same trend in Finland. So we see that there is a consolidation of our customer base. And in this situation, we are dependent on doing our utmost to remain competitive also going forward. And in the end, it is our competitiveness, and that will also help safeguard our jobs in the long run. We had to do two things. It sounds simple, but we need to boost sales, and then we also need a competitive cost level. In recent years, we have done a lot to improve the efficiency of our cost base.
We have emerged sales organizations, and we've also made changes in our staff and support functions, especially in the field of economy, where we have set up a central accounting center, and also within human resources, we have established a matrix organization in Orkla. Recently, we've also focused on optimizing our production structure. So this means that we have to improve our performance at all levels, and our hypothesis is also that we need to reduce the number of plants. And I want to emphasize that our target is not to have as few factories as possible, but to have an optimal factory structure with good utilization of our capacity. Today, we have more than 100 factories, which in some have too low utilization degree, and this is not sustainable over time, neither in terms of economy or the environment.
The decision to reorganize, and in some cases, close down factories, are heavy and difficult. For us, it's important that we have good processes around such developments where everyone is heard and all stakeholders are taken good care of. These projects often entail risk, but I believe that the greatest risk we take is not to raise these issues for discussion and decision-making, because if we do, we neglect the duty we have in managing Orkla for the future. In this connection, it's important to mention that we also have made some changes by moving production within and across Orkla's geographies. Recently, it has been a lot of focus on production moved out of Norway, and it's important to specify that most of the volume that we move is within Orkla. We don't discriminate. One workplace is as valuable as another, regardless of geography.
But we don't want to achieve success by saving and saving and saving. Quite to the contrary, we invest. In 2015, Orkla invested more than NOK 1.2 billion in maintenance, EHS, and not least, in new technology for innovation and growth. And of this sum, Orkla invested more than NOK 700 million in production activities in Norway, up 50% from the previous year. Among the investments, we can mention the new factory for the Norwegian snack, lefse, a new refrigerated storage at Stranda, jam and salad production at Elverum, and also big modernization of the canning production in Fredrikstad. In addition, there are investments in product developments, brand building in the Norwegian market. We do believe that knowledge, innovation, and the ability to change will also provide a lasting basis for value creation in Norway.
In September 2015, we had our capital markets day in London, where we presented our goals for the next 3-year period, and also informed them about our focus areas. Our main message is that our strategy remains firm. We are moving towards becoming a leading Nordic brand companies. It's important to create growth. Our goal is to grow at least in step with the markets where we operate, and we also need to improve our profitability, as well as strengthening our market shares. We also have a target to have achieved an EBIT growth of between 6%-9 % before major acquisitions. It is ambitious, but it signals that we also need to improve the efficiency of our top line growth and also our cost base.
As we will see later, the 2015 performance shows that we have come quite far, and luckily, we also see that there is still a significant potential for further improvements. As a leading manufacturer and supplier of branded consumer goods to the retail trade, Orkla has a responsibility to operate its activities with respect for people, the environment, and the society that we are part of. I would therefore like to say a few words about Orkla's sustainability work, focusing on nutrition and health. As a leading manufacturer and supplier of branded consumer goods to the retail trade, our activities are affected on global health and sustainability trends, and our customers demand increasingly more of us in terms of providing them with safe and traceable food.
In order to succeed, sustainable growth is of the essence, and therefore, we've set ambitious targets for our sustainability works towards 2020. We want to contribute through healthy and more environmentally friendly products, set a high standard for food safety, efficient use of resources, and also to have improvement efforts throughout the value chain. In Orkla, we also focus on shouldering our part of the responsibility when it comes to nutrition and health, and we do that by developing products with an improved health and nutritional profile, to label our products clearly so that our customers know what they contain, and also to ensure that our marketing is responsible.
We have a great task cut out for us when it comes to improving our everyday diet, and we do that by reducing the proportion of saturated fats, salt, and sugar, like we've done in many of Orkla's products already. Just to give you some numbers, in 2015, we reduced the salt contents in pizza, soups, bread mixes, sauces, salad dressings, ketchups, equivalent to an annual reduction of the consumption of eighty tons. We also reduced the contents of saturated fats in our products, equivalent to an annual consumption of two hundred and ninety tons. We've done it by replacing palm oil with healthier oils in several of our products. We also reduced the sugar intake of the population by one hundred and twenty tons through launching sugar-free alternatives and variances with reduced sugar contents.
Jam is, of course, an excellent example where we offer the consumers more healthy alternatives. And like you can see here, the best jam we have, Nora's company, contains 80% berries. And the National Information Office for Fruit and Vegetables advises that if you want to make your own jam, you should use a proportionate relationship between berry and sugar of two to one, two kilos berries, one kilos of sugar. And I'm proud to announce that our jams contain far less sugar than that. So we're going to offer alternatives in all categories where we are a sizable player so that the consumers can make informed choices. Orkla is a large company. I mentioned that we have around 100 factories.
We have operations in several countries, and every single day, three hundred and sixty-five days a year, Orkla manufactures and sells eight million consumer units, and that is about three billion units annually, not only in Norway, but in a number of countries. Our branded goods play different roles in different situations, but they all share one common denominator, namely, that our consumers chooses them every single day because they like them, and they trust them, and we're happy to see that. Many people have strong opinions about the industrially manufactured foods, and I would like to take this opportunity to talk positively about industrialized food. Contrary to how it is often presented, and similar to what the consumers do in their own kitchen, we cook the food and prepare the food based on carefully selected raw materials from scratch.
At the same time, we also implement strict controls so that we can ensure that the food made is safe. I hope that we can also make consumers more enthusiastic going forward about our foods. They are good quality, developed by our cooks, and also manufactured under a strict hygienic environment. I would like to give the floor to Jens, who will give you the financial developments in 2015.
Thank you, Peter. My name is Jens Bjørn Staff, and I'm the CFO of Orkla. I will now briefly take you through the financial highlights for 2015. The Orkla Group achieved gross revenues totaling in excess of NOK 33 billion in 2015, compared with almost NOK 30 billion in 2014.
Most of this growth can be attributed to a significant strengthening of our branded consumer goods area. The revenues in our branded consumer goods area increased by 12% up from the previous year, totaling NOK 32 billion in 2015. And what does it mean if we sell branded consumer goods worth NOK 32 million ? Peter mentioned it. It means that every single day, 365 days a year, Orkla sells 8 million products. This is equivalent to almost 100 active choices per second that consumers make benefiting an Orkla product. If we look at the main reasons behind the 12% growth, you see it illustrated on the graph behind me, then 4.9% is related to the contributions from the many acquisitions mentioned by Peter earlier.
Orkla has a big part of its operations outside of Norway, and the weakened Norwegian kroner the past year has resulted in the revenues from foreign activities converted into Norwegian kroner has increased by 4.3%. The last part of the graph showing organic growth was 2.8%. The organic growth illustrates our ability to sell more pizza, dishwasher remedies, chocolate bars, et cetera, in our existing activities, and this is a growth rate that we haven't seen for many years in Orkla. The acquisitions made during the past year has mainly taken place outside of Norway, and therefore, as a result of this, our branded consumer goods area has become more international, with a stronger position in the Baltics and Central Europe.
Norway is still our biggest market, but our exposure outside of Norway increased from 63%-69%, than measured in relation to revenues. Let's move on to look at the income statement. Orkla achieved an EBIT adjusted of NOK 3.6 billion in 2015, and like I said, up 12% from 2014. Behind me, you can see this, that is the line where it says EBIT adjusted, which is the English name for the adjusted profit. Increased revenues and also an improved efficiency in our operations were the main reasons for the growth in EBIT adjusted.
The extensive restructuring that is now going on within the consumer goods area to secure our competitiveness going forward did also make us incur some substantial extraordinary non-recurrent costs in 2015, and this gave us a reported EBIT on a par with the previous years. The lines under the EBIT, where it says profit from associates and joint ventures, we present the contributions from companies where we have ownership stakes in, and that we don't consolidate into our revenues and profits. This is our share of those companies' net profit after tax. The largest companies that Orkla has stakes in are Sapa and Jotun. Orkla has a share of 50% and 42.5% of these two companies, respectively. And in total, the two companies have revenues of approximately NOK 70 billion.
Contributions from partially owned companies increased significantly from NOK 100 million in 2014 to NOK 1.1 billion in 2015. And this is mainly due to the positive developments in both Sapa and Jotun, but also profit or a gain from the sales of shares in Gränges. I will be reverting to Sapa and Jotun later. In 2015, Orkla had NOK 128 million in interest expenses and other financial expenses, in addition to NOK 722 million in taxes. The profit for the year after tax for 2015 came to approximately NOK 3.4 billion, compared to NOK 1.7 billion in 2014.
And this means that earnings per share increased from 1.63 NOK in 2014 to 3.24 NOK in 2014, a considerable progress made. As Peter mentioned initially, the Orkla share obtained a return to shareholders of 42.4% in 2015. These were Orkla's results for 2015, but I would now briefly like to give you some further details to the biggest business areas. Orkla Foods is our largest business area, with total revenues of 13 billion NOK, accounting for 40% of Orkla's turnover. Orkla Foods include well-known Norwegian brands such as Toro, Grandiosa, and Stabburet, in addition to many well-known brands in other countries. Orkla Foods have operations in all the Nordic and Baltic countries, and also in several countries in Central Europe and in India.
Orkla Foods reported good revenue and profit growth in 2014, among other things, as a result of several successful innovations and improved efficiency. The profits came to NOK 1.7 billion or 14% growth up on the previous years. Let's move on to look at Orkla Confectionery and Snacks. Orkla Confectionery and Snacks includes well-known brands in sweets, snacks, and biscuits, such as Nidar, Paulúns, and KiMs. This business area grew its revenues by 17% in 2015, partly as a result of contributions from acquired operations, but also due to positive underlying developments with an organic sales growth of 3.5%. The biggest acquisition in 2015 was NP Foods, that contain Latvia's iconic chocolate brand, Laima. With these acquisitions, Orkla more or less doubled its Baltic activities.
Let's move on to Orkla Care. Orkla Care is the most highly differentiated business area we have, and it's engaged with sales of toothpaste, detergents, and shampoos to textiles, cod liver oil, and paintbrush. Some of the brand names are Zalo, Define, Möller's, Pierre Robert, and Jordan. Orkla Care buys a lot of finished goods from abroad, and also in 2015, faced a challenging situation due to the weak Norwegian kroner. This resulted in higher prices of input factors and also weaker margins. However, revenues and profits increased by 12% and 3%, respectively, partly as a result of the acquisition of the Swedish company, Cederroth. With the acquisition of Cederroth, Orkla Care obtains strong positions within major categories in Sweden, but also strengthened presence in the pharmacy channel. Let's now take a look at Orkla Food Ingredients.
Food Ingredients reported continued progress in 2015, obtaining revenues of NOK 7.6 billion and an operating profit of NOK 414 million. This is equivalent to a growth of 16% and 20%, respectively, as a result of a continued strengthening of the competitive edge within the company and also as a result of some smaller acquisitions. Food Ingredients sell mainly ingredients for the bakery industry under well-known brands such as Idun and Odense. In recent years, this business area has also built up a strong position in accessories and ingredients for ice cream, and they also, among other things, supply biscuits and various types of toppings, and this area also contributed substantially to the growth in 2015. Orkla Investments have major investments outside the branded consumer goods area.
Analysts estimate that on the average, almost 30% of Orkla's assets are outside the branded goods. The two major investments are assets in the paint company, Jotun, and the aluminum company of Sapa. Both of these companies reported strong development in 2015. Jotun grew as a result by almost 60%, reporting some growth in all areas, very strong results. Sapa also reported strong growth as a result of improved efficiency and also a high demand of aluminum products in North America. In summary, Orkla has made good progress, both in terms of revenues and profits, inside and outside the branded consumer goods area. Next, I would like to say a few words about the balance sheet. Orkla has a strong balance sheet with total assets of NOK 54 billion and a net interest-bearing debts of just less than NOK 8 billion .
This result enables us to continue investing in the branded consumer goods area and also to have a predictable dividend policy. Our goal is to pay a minimum of an annual dividend of NOK 2.50, while at the same time maintaining high credit rating. During 2015, Orkla has made several interesting acquisitions, and I will now give the floor to Atle Vidar Nagel Johansen, who will tell you more about the newest member of the Orkla family, the Czech branded goods company, Hamé.
Good afternoon. My name is Atle Vidar Nagel Johansen, and I head the business area Orkla Foods, and I have the pleasure of informing you of a very exciting acquisition in Europe, the purchase of the group Hamé. Hamé is a considerably important player in foods in Central Europe, which is, and has its main markets in Czechia and Slovakia. Orkla entered into agreement of the purchase of 100% of the shares of Hamé in December 15 , and the transaction was presented to the competition authorities for approval in seven different markets and been approved in all markets without any recommendations or requirements. So the contract was implemented 31st of March this year, and thus Orkla became an owner of Hamé from that date, which means that the company will be consolidated into the Orkla financial statements as of second quarter.
Hamé is a company that Orkla has been interested in for a long time. Here are some key figures. They have a turnover about NOK 1.7 billion , 2,400 employees, 10 factories in four countries, and operating result in 2015 was about NOK 140 million. 68% of the turnover is in Czechia and Slovakia, which are absolutely the company's core markets. The remaining markets are in adjacent countries. Before the acquisition of Hamé, Orkla had three companies in the same region, Vitana Czechia, which came into the group when we acquired Rieber & Søn, and they produce soups and sauces like the Toro brand.
We have Felix, Austria, which has been in the group since 1995 and operates in Austria, as the name says, ketchup, pasta, sauces, and vegetables, and we have Orkla Foods that operates in Romania and is within the business area, Orkla Food Ingredients. Together, these companies account for NOK 1.5 billion in turnover and have about 1,200 staff. So the acquisition of Hamé doubles Orkla's turnover in this part of Europe. Now, if we look at Hamé and Hamé's products, they fit very well. They have strong market-leading local brands, and through this acquisition, Orkla becomes one of the absolutely biggest suppliers of consumer goods in the Czech Republic and Slovakia. Strong local brands, strong positions, and we will be a considerable supplier to the retail sector in foods.
The product portfolio includes the categories that are complementary or supplementary to our own products in these markets, but they're categories that we know very well, and we see that we can create important shareholder values through this acquisition. This is illustrated by some of our well-known brands horizontally in this picture. Some of our geographies are the verticals, and you'll see how Hamé's brands fit into sauces and ketchups, Majka in liver paste, in conserves, canned vegetables, and jams. I think this illustrates very clearly the strategic way, and this tallies with our existing position. Seen a different way, this picture shows how Hamé is entering into Orkla Foods and enlarges our market position. We have categories in the vertical and geographies
You see the flags, but what it shows is that Orkla Foods, through this acquisition, is becoming a market leader in markets, in eleven markets of ketchup in Europe, and the yellow squares show the positions that we, that Hamé represents. As you will see, within canned vegetables, we have a series of strong positions, also within jams and other categories. The value added to this acquisition will be created mainly by Hamé continuing the strong development they've reported since 2012. Good growth, both on the top and bottom lines. We believe that Orkla can help improve their governance systems, and in other ways, we also see that we can contribute to increasing efficiency and automatizing their factories, and we see that there is synergies within several of the core markets that Hamé has and that we can contribute to.
We have to do this in a way that does not disturb the good, strong development of Hamé today. I would like to end by say, by saying that Hamé was voted one of the 10 most respected companies in the Czech Republic, independently of the, branch or the industry, which tells you quite a lot about their status in their domestic market. Thank you.
We'll now open for Q&A or comments to the reports that you have heard. I'd like to remind you that when it, the remuneration policy will be dealt with separately under item three on the agenda later on. If you would like to take the floor, please stand up, introduce yourself, and please use the roving mic as this is being interpreted.
The press has been allowed to be present in line with our policy, but they have no speaking rights unless they're shareholders or hold proxies. So the floor is open. There is one person asking for the floor at the back of the room, I believe. I've been following Orkla in the press and the media, and the question of the possibility of closing a factory that's existed for 60 years in Rygge, that is very sad, I think. And my question is, have you tried to understand what this would be like for the 50 people who will lose their job? Might be young people with children, they might have mortgages, et cetera, and then they will lose their job, their income. And the mayor of the town has also said that it will be difficult.
And have negative consequences for the local community, so this is really sad. And this is a profitable company, as far as I can see, or entity in the group. I don't know whether the management would allow it, but maybe we should have a vote here. If there are many that support the closing of that plant, or that the shareholders like to have it. I don't have to get any dividend on my shares. I will survive anyhow. Thank you. Should we deal with that right away? Those who would like the company to leave the country, stand up, please, and be counted. Thank you. I'm sorry, this motion is outside of the AGM's agenda, but the CEO will reply anyhow. Now, Orkla has a long history as an industrial builder in Norway, builder of national industries.
We have a good foothold here, and we contribute to the employment in a very considerable manner. Therefore, we would like to contribute to it in future, too, to maintain employment, and we would like to contribute to sustainable production in our country. But in order to ensure our long-term competitive edge, it might be that we have to change our geographic presence. It's always very sad to close a plant, and we have deep empathy with those who are affected directly by this and indirectly, and we're doing our utmost to help these people in these difficult processes. But we have to also think ahead, and we have to ensure our competitive edge in future. If not, we will be negligent of our duty to ensure Orkla's long-term development. Thank you. Further questions or comments? There seems to be.
Please wait until you get the microphone and introduce yourself when you have the mic. Johnny Johansen. I work at Idun factory in Rygge, and I'm fighting to keep this plant. We're producing an enormous profit, which grows year on year, and we're one of those companies that contribute most per employee to the group. So it seems to me totally crazy, the way you present this, and I've heard quite a bit about what has been said in the negotiations, and these are sort of emergency decisions that are taken without any emergency being present. I would like to ask you to reconsider. We are one of the best producers of profit in Norway, and it grows year on year. Thank you. That was rather a comment, wasn't it? Would you like to add anything?
I believe that what I said a moment ago covers what was just said. I'd just like to underline that we haven't taken any decision yet. We are still in the thinking phase. Any other comments? Yes, please. Please introduce yourself, sir. Hans Henrik Torgersen is my name. Those present are owners, and you are sitting an exam every time you hold an AGM. If we don't think you do a good job, we can sell our shares. But ladies and gentlemen, this year, we must say that you have got the very triple A grading, and where there's a college, you'd have A plus, and I think you deserve an applause. I was one of those who asked to get the annual report and the financial statements on paper. I've reviewed them.
I don't know how many of you have, but I think many of you and us expected to have the paper copy in our post mailbox, and I'd like to ask for it to be recorded that we should have paper copies available when we get here. You can say, "Tough luck, you could ask for it in advance." But in terms of profiling the company, I think it would serve you well to offer us paper copies at the AGM. And if you have any environmental objections, I can tell you that 85% of all paper in Europe is recirculated. Wood is a renewable resource, and trees can be planted, and we can recirculate the paper. So that would be a very good green policy.
My main question was this, in reference to what has been noted by those who preceded me in the questions. Which companies have been closed in the preceding year? It was said by the CEO now. I think his presentation was not very clear on that point. I am aware that the decisions that are taken are taken based on the financial situation and future of the company, and so it should be, but is there a minimum of return on each of the company that informs your decisions? I would like to know what that minimum return is, if any. Because it is clear that if a company reports considerable profit, it's very difficult to explain to the local community why it should be closed, and we do have corporate social responsibility.
I know you've given a report, but I think it should be more detailed, and I think also the annual report was not very eloquent on that item. Thank you. There were two questions. Why is the annual report not sent out in the mail as we used to do? And the second question was whether there is a minimum requirement on return for each plant or company that would inform the closing of the companies. Is that correct? What I said was that we can ask for it in advance on paper, but not very many do, and I would like, in future, to have a paper copy of the annual report when I arrive at the AGM, and if you support me, the rest of the shareholders here, please applaud. Thank you for that comment.
Oh, well, if you do, you will have an even higher grade next year, and I won't forget it. Would you like to reply? Yes, please. As to your first question as to the annual report, it was not really a question, it was a bit. I would like to say we didn't print it for environmental and financial reasons. We've saved about NOK 600,000-NOK 700,000 on not printing the annual report 2015. It is available on our website. You can download it, but you can also have it sent to you by mail if you contact the company. As to the return, requirements on plants or companies, of course, we have a requirement or a goal for all of the companies and for return on investment and on projects, and of course, on acquisitions.
As was pointed out, it might be difficult to understand that it is necessary to change the structure of plants and close plants when they report considerable profit. It is exactly the point, to do this in good times when you can afford to do structural changes. We can't wait until it's too late. The fact is that Orkla is a result of many acquisitions over many years, which means that we have, as I already said, a lot of plants with low resource and capacity utilization. We have many companies and plants producing more or less the same thing in, within the same geography. If we only had operated in an isolated market, that would be of importance, but we operate in a world with very keen competition, and it grows sharper by the day.
For us to be competitive, we have to take this into account, which means fewer units, bigger units, enabling us to invest in new technology, which will afford us the possibility of innovating and creating growth in future. Thank you. Additional questions? May I have a comment, please? Just. And then we have to close. What I asked for, and what the AGM asked for, is that you distribute the report on paper here at the AGM, and that's what the attendees applauded. We didn't ask for it to be sent to us by mail on paper. Of course, the disadvantage of handing it out here, it would be difficult to read it beforehand. But I think we would just let that request stand and move on. Other questions on other topics? I see no raised hands.
Thank you for the questions and comments that you have put forward, and let's move on to the Chairman of the Board, Stein Erik Hagen, on the dividends policy.
Thank you. Orkla shareholders are to receive a competitive return on their investments through a combination of dividends and growth in the value of their shares over time. Orkla's dividend strategy attaches importance to predictability and stability, and this dividend policy has been well received in the market and has been reinforced by the fact that Orkla has never reduced its ordinary dividend compared with previous years. Moreover, Orkla has occasionally opted to pay extraordinary dividends. Orkla has a cash flow from the branded consumer goods area, which, along with earnings and divestment of non-branded goods, contribute to the group's dividend capability.
In recent years, the company has strengthened the branded goods area significantly through both acquisitions and operational improvements, and therefore, the board intends to maintain dividends at minimum the current level, which we also communicated to the market during our Capital Market Day in September last year. However, Orkla's general target is to maintain an investment-grade credit rating in relevant markets. Generally speaking, the board believes that a branded consumer goods company anchored in the Nordics should have a relatively high dividend ratio. Based on Orkla's dividend strategy and the group's financial position, as just presented by Peter Ruzicka and Jens Bjørn Staff, the board of directors moves to adopt a dividend for 2015 of NOK 2.50 per share, which is on par with the ordinary dividend for 2014.
Based on the AGM's resolution for a share dividend of NOK 2.50 per share, the dividend will be paid out on 26th of April, 2016, to those who hold shares on the date of the annual general meeting, that is today. The shares will be listed exclusive of dividends tomorrow, 15th of April. Over time, Orkla has allocated substantial capital to its shareholders. Since 2004, Orkla has allocated NOK 42 billion to its shareholders. In addition to dividends, Orkla also has a program to buy back treasury shares. This program has been used for moderate buybacks. The shares acquired under the program will be used for Orkla's share and incentive program for employees, approved by the annual general meeting, or be annulled. Under item six on the agenda, the board will move that the authorization be renewed. Thank you.
I will now invite State-authorized Public Accountant Jan Willem Svensson to present the auditor's report submitted by the elected accountant, Ernst & Young. It has also been included on page 137 in the annual report. Thank you, Moderator. As mentioned by the Moderator, our auditor's report is presented on page 137 of the annual report, and the conclusions are shown on screen behind me. Our auditor's report is addressed to the general meeting and is signed and dated 11th of February, 2016. Our auditor's report concluded that, in our opinion, the financial statements of the parent company, Orkla ASA, and the group give an accurate account of the financial position of the parent company and the group as at 31st of December, and of the comprehensive income and cash flows during the year under review.
The information disclosed in the director's report, the report on corporate governance, the assumption of going concern, and the allocation of the profits all are consistent with the financial statements and in compliance with legislation and regulations. In other words, we have given Orkla ASA a clean auditor's report for the financial year 2015. All right, before we put it to the vote, the floor is now open for questions or give any comments you may have. Yes? Just a moment, and you will get the microphone. A question to the auditor. Can you guarantee that there are no Panama Papers to Orkla's activities in Norway and outside the country? As mentioned, we have given Orkla ASA a clean auditor's report, and also for the parent company, in line with the auditor's report and the good accounting practice in Norway.
We have no knowledge that there are any papers, Panama Papers, like, attachment on the part of Orkla, and I think that's all I can say. Next. Well, actually, and one more question.
Hello.
What is your name? Folke Dahl is my name. I have a couple of comments to the dividend proposed. Mr. Hagen says that it's important to maintain stability, and, that, share dividends should also be predictable. And I can see from both the figures and otherwise, that, dividend policy has remained stable and predictable. But maybe it's just a bit too stable and predictable. From 2011 and onwards, we received a large and, highly welcome return.
So I don't want to criticize the policy, but if we look at the price trend, both when it comes to the share purchase value and also a general price trend, namely the cost of living index, I must say. I really want to commend the company for what you do and what you develop. But this year, I would actually have expected that it had been reduced by some decimal kroner. Because maybe you should indicate to the markets that there is some movements, and also that the financial effects we're seeing this year could have made it possible, actually, not to reduce it by a couple of decimals, but to increase it by a couple of decimals, to ensure that the shareholders remain in Orkla, because that would benefit the company.
Yes, I understand that you would like a slightly higher dividend. Many of us would like to want that. But if we go back, there was a weak period from 2010 , 2011, that we maintained a dividend that was absolutely too high, seeing those years in isolation. And we maintained it through the period of transition, but it was also basically a matter, of course, that after the few first three years of crisis, that we could not increase dividends once the profits increased. But if you look carefully at the figures, you will have seen that we distribute in dividend more than half of the profits. We discussed if we should have increased it by NOK 0.25, but we must also consider the collective bargaining negotiations this year.
I mean, we've heard what the trade union has negotiated, factories have been closed down, and we didn't feel it was right that Orkla would actually take out more money from the company in the current situation of the country, but we are saying that dividends should be at the minimum of this, at this level, so in this, we also indicate that we may increase it when the time is right, but we also need capital to strengthen our competitiveness. That will enable us to acquire new businesses, and to take advantage of the opportunities when they present themselves. If we see that we have a sound financial economy, so that we can afford to make acquisitions whenever we see fit, without going to the shareholders to ask for more money.
But this is something that is an ongoing consideration. I can't promise that we will increase the dividend, going forward, but I can say that the minimum we should pay is this, but it depends on the profits we have, both in the current year, and also to see which way the Norwegian and the Nordic economies are moving. Thank you. Are there any other questions? Any other comments before we put it to the vote? That does not seem to be the case. Then I would like to put the following, motion for a resolution on here.
Namely, that we ask you to approve the financial statements for 2015 for Orkla ASA and of the Orkla Group, as well as the annual directors' report, and including approval of a shared dividend for 2015 on 2.50 NOK, except for shares owned by the company. Are there anyone who does not vote in favor of this motion? That does not seem to be the case. This motion is hereby carried against the 14,213 shares, votes, that were absentee ballots. Let's move to the next case, namely, Orkla's Compensation and Benefits Policy, Remuneration of Executive Management, and the Group's Incentive Programs.
We propose to do this in the following way. I would first explain the background to this item on the item, and then the declaration of the board on the remuneration policy. This is part of the PLC Act, Section 5.6 A, and the president of the board, the chairman of the board, will then bring you through the main items on item five in the financial statements. It's also part of the annex to the notice, and then we will propose that you vote on the item. The board is to prepare a declaration on the or a report on the remuneration policy for executive management. That's four sections.
That's remuneration for executive staff and the guidelines for the coming financial year, report on the policy that has been implemented in the previous fiscal year, and new agreements with the CEO or other executive management. The item AGM has to do is to discuss and vote on the board's report, and hold an advisory vote on the guidelines as for the coming fiscal year, as well as to approve the guidelines for option incentives, share option incentives. Based on this, I'd like to give the floor to the chairman of the board. I will now talk briefly about the remuneration policy, the one on remuneration and options. This is filed in the annual accounts. Our policy is part of some different means to attract, further develop, and maintain the competency we need in the group.
The monetary part is divided into two elements. That's fixed remuneration and then variable elements, that's annual bonus and long-term bonus programs. The guidelines say that we should be competitive in the fixed elements based on the median consideration, whereas the potential of the bonus schemes should be above the median. The bonus requirement is directed towards improving the revenues and growth, and it's also a personal part. The system is calibrated so that if you, over time, deliver satisfactory results, you can expect a remuneration of about 30% of your annual salary. If you deliver better than expected, your remuneration will increase proportionately. In 2012, we introduced a cash-based long-term incentive program for executive staff and key staff to replace the option scheme. The main intention was to ensure the necessary competitive edge in order to keep our talents.
This was an amount based on the result of the annual bonus scheme that was in deposit in a bonus bank, and the bank is regulated in terms of the development of the share up until the day of redemption. After 2 years, 50%, and after 3 years of the date of acquisition. The annual payment from the long-term scheme cannot exceed one annual salary at the time of redemption. Any excess shall be added to the deposit in the bank to be redeemed the following year. Options that have been awarded previously run according to the existing conditions, but are adjusted as of 2012. The last redemption point is 2017.
The company has for many years implemented a scheme in which the staff are allowed to buy a reduced number of shares at a rebate of 20% in respect of the listed price. In 2015, there was a maximum amount of 28,000 NOK, and in 2015, it covered staff in 23 countries and about 1,380 staff. The number of buyers were 2,013, 1,062 in 2014, and the cost for the company was 22 million in 2015. We believe, as a board, that it's positive that the staff have shares, and we would therefore encourage the AGM to further develop or continue with the scheme on the same conditions as in 2015. Okay, then we're at the vote.
First, it's an advisory vote, consultative vote. Does the AGM support the declaration of the board on remuneration for executive staff, as described in note five to the notice? Votes against? That not being the case, this motion has been adopted, including the proxies and the advanced votes. The next motion is that the AGM adopts the proposal of the board to the share-related schemes for executive staff and key persons, as in respect of the bonus bank being tied to the total revenues of the Aker share, and to the sale of shares at the 33% discount to staff. Votes against? That not being the case, it's been adopted against 9,218,476 advanced votes and proxies. That leaves us at item four of the agenda.
You have the floor. Note, add anything? No. Agenda item four, that is the report on the company's corporate governance. This point will be dealt with in three parts. First, I will give you a brief introduction to the topic, and after that, the Chair of the Board will provide more details about the Board of Directors and the group's work on the issue of corporate governance, and after that, we will be taking comments and questions from the floor. The background is that corporate governance is becoming increasingly important. The Norwegian rules are listed, among other places, in the Norwegian Code of Practice for Corporate Governance. The code entails that the board must ensure that the company implements sound corporate governance, and also explains any deviation if recommendations have not been complied with.
They must also to clarify basic corporate values and formulate guidelines in accordance with these values. Pursuant to stock exchange regulations, listed companies are to have corporate governance that makes a clear internal allocation of responsibilities and duties between the shareholders and the board of directors and the day-to-day management, and they must give an overall report in the annual report or in a document referred to in the annual report. Special reporting requirements for corporate governance, including the company's internal control and risk management systems, also apply pursuant to Section 3. 3-B of the Norwegian Accounting Act. The report shall be dealt with at the general meeting as an information item, so general meeting need not approve the report.
This ensues from Section 5.6.4 subsections of the Public Limited Liability Companies Act, or clear reports in compliance with Section 3.3-B, as well as the Code of Practice. A detailed report on this may be found on pages 28-35 of the annual report. As indicated by this report, Orkla is in compliance with the Code of Practice for the most part. There are two minor matters where the company has reported deviations from the Code of Practice, and for the sake of good order, we have accounted for them in a separate appendix to the notice convening the AGM, and they are also evident from the presentation. Since the report has been made available to the shareholders in advance of the AGM, we will not reiterate the contents, but Stein Erik Hagen would like to outline how the board and group deals with it.
The objective of Orkla's principles for sound corporate governance is that they pave the way for long-term value creation, which benefits shareholders, employees, and society as a whole. Key principles such as openness, transparency, accountability, and equal treatment build confidence both within and outside the group. Orkla has developed a sustainability strategy for the years up to 2020, and we have set ambitious goals for our business. We've defined four areas where Orkla has a big impact on society and where we can make an important and positive difference. These areas are nutrition and health, food safety, responsible procurement, and the environment. For each area, we have established concrete goals and action plans, and like Peter Ruzicka said in his report to the AGM.
We can already see clear results from these efforts. Orkla Group's attitudes to corporate social responsibilities are also described in more detail in Orkla's sustainability report, which has been included in the annual report this year. Orkla's board takes a proactive view of sound corporate governance, and will, at all times, ensure that Orkla complies with the requirements posed in Section 3-3 B and in the Code of Practice. For Orkla's board and administration, the systematic work to continuously improve our corporate governance is essential. Openness, transparency, accountability, and equal treatment are, and should be, integral parts of Orkla's value creation. The group's standards and expectations. We should also, by dedicated efforts, create bigger value, and the value is true. The group's requirements and expectations for the individual groups are also described in corporate governance documents. We call it the Orkla Way.
The paramount principles for good corporate governance are integrated into the group's governing documents, and this helps ensure that the principles for good corporate governance permeate the decision-making process in the group, companies, and bodies, and, therefore, making it an important element in its corporate culture. Thank you. Are there any questions or any comments regarding this report? I can't see anyone asking for the floor, so I invite the general meeting to take this report under advisement. That brings us to the next item, namely amendments to the Articles of Association. Amendments to the Articles of Association of Orkla. Orkla, as is well known, has been through considerable transformations over the past years, from being a broad industrial conglomerate to becoming a more focused, branded goods company.
In line with the changes of the group, there has also been gradual adaptations of our industrial democracy schemes. In 2015, we renegotiated a new agreement on our industrial relations scheme between the management and the shop stewards, and we agreed that the post of observer would be canceled, and it has been approved by the Industrial Democracy Board, and the cancellation of this post also requires a change of our Articles of Association. This amendment requires 2/3 majority of the capital and votes attending the AGM. The amendment is a direct consequence of the cancellation of the observer post and are part of a package, and I would propose that we vote this en bloc. Votes against the proposed amendments? That not being the case, this motion has been carried against 5,169 votes.
That was more than two-thirds, I think. That brings us to item six, which is authorization to acquire treasury shares. This is a recurrent item on most AGMs. That's because these authorizations are only valid for one year at the time. In the ordinary AGMs of the 16th April 2015, the board was authorized to acquire treasury shares up until the AGM 2016. The AGM every year has authorized the board to acquire shares, and it's been used for moderate repurchase. The authorization from the AGM last year was 24 million. That has been used for the incentive program for employees, and it's 2,203,135 shares. The board has proposed that the authorization of power and authority be adopted, and it's an appendix to the notice.
I'd just like to say that the repurchase for amortization is one of several means that the company has to transfer values to shareholders, because the value of the remaining shares will increase, and the board would like to use this means. In addition, the company has a certain need for treasury shares to cover obligations under the different remuneration and incentive schemes. Therefore, in the proposal, we assume, as before, that the shares that will be purchased under the authorization will be applied for one of two things: one, amortize or cancel the shares, or to be used to cover the company's obligations to staff under the schemes, as we've done before, and as the AGM has approved in, on other occasions in previous years. Questions or comments to this report? That seems not to be the case.
I would like to remind you that we have indicated two specific purposes, and the shares cannot be used for any other purpose, so we'll vote on each of the purposes. The first proposal is, one, the AGM in Orkla hereby authorizes the board to let the company acquire shares for NOK 120 million on 100 million shares in such a way that the treasury shares do not exceed 10% of the outstanding shares at any point in time. The maximum minimum amount should be ten and hundred. The board is at liberty to decide on how the repurchase should be done. And this offer is on fifteenth April, up until the AGM of 2017. Votes against? I have a question, Mr. Taulo, you have the floor.
Are these shares voting shares? Do they have a right to dividends? These shares, treasury shares, do not pay dividends, and they have no voting rights. Thank you. To the agenda. It said that under the previous item, that we should approve the remuneration to the board. Did we do that? That was an amendment issue. It said that we should adopt or approve the fees, remuneration to the Board.
Did we do that? The motion was carried. But the amounts, what were the amounts? I am sober. But I didn't take any selfies today.
We're moving chronologically through the agenda.
I'm sorry, I am a bit late, but what you're asking for, I think, is under item eleven on the agenda.
I'm sorry, then I made a mistake. Thank you. We have to follow the agenda that has been sent out in advance. And with this clarification, on your question to 61 , I now have a question to the AGM. Votes against this motion? That not being the case, it has been carried against 1,856,107 votes, advance votes. The authorization can be used to fulfill obligations under the existing schemes, pursuant to the item three three of the agenda. Votes against? That not being the case, it's been adopted with the same majority. Item three, the repurchased shares can be used for amortization. Against 1,368,398 advance votes.
That brings us to the end of item six, and we can move on to item seven, which is elections and remuneration for the Board and the Nomination Committee.
The items on the agenda from seven through to 12 concern the elections and resolutions, elections of members and deputy member for the board of directors, and also nomination committee and chairs. And recommendation was handed in the 17th of March, and has been available on the corporate website. This was also made available for shareholders in attendance. We will deal with this the following way. First, I, as chair of the Nomination Committee, inform you of the work of the Nomination Committee, and then give an overall report on the committee's recommendations to item seven to twelve, and then we will go back and make separate votes for each individual issues.
When it comes to the work of the Nomination Committee, the Nomination Committee has consisted on me as chair, Leif Askvig, Nils Henrik Pettersson, and Karin Bing Orgland as members. In addition, the committee is supplemented by the employee representative, Vidar Dahl. When the recommendation for chair of the board are discussed, and his opinion is heard when remunerations are determined. He is Askvig, represents international institutional shareholders. Karin Bing Orgland has, as a previous DNB member of the board, she has a number of posts. She has been a member of the Nomination Committee. Henrik Pettersson, for term of 2 years, and he is not up for election. He was nominated by Canica. I, Anders Ryssdal, am a lawyer and partner of the law firm Wiersholm, and I have been member and chair of the Nomination Committee since 2012.
We should also support the composition of the Nomination Committee that safeguards the interest of the shareholder community and fulfills the criteria in the Norwegian practice for corporate governance, and all the recommendations are unanimous. We have some rules that we need to comply with. There's a separate instruction for the Nomination Committee. The instructions are available on Orkla's website. It contains rules for the composition and election of members, remuneration, the committee's duty, elements for competence, as well as rules and procedure. The committee has had six meetings in connection with the preparation of this year's recommendation. The committee has reviewed the evaluation of the board of directors and has had meetings with the Chair, Deputy Chair of the board, and with Orkla's CEO. We've also had contact with employee representatives, information.
About how shareholders can provide input to the Nomination Committee has been available on the corporate website. The committee has held its inaugural and has talked to several shareholders. I will now present the Nomination Committee's recommendation for the election of members and deputy members of the board, chair and deputy chair of the board, as well as for the election of members of the Nomination Committee, election of chair and the Nomination Committees, and proposed remuneration. It is quite simple, our recommendation. It has to do... We recommend that the following board members be re-elected: Stein Erik Hagen, Grace Reksten Skogen, Ingrid Jonasson Blank, Lisbeth Valther, Lars Dahlgren, and Nils Selte. And in addition to this, the committee further recommends Caroline Hagen Kjos to be elected as deputy member of the Board of Directors. The family holds 40% of the shares.
Over the last few years, a new generation has taken office in Canica, and Caroline Hagen Kjos is today the main shareholder in Canica, owning 99.75% of the shares, and she's also chair of the Board of Directors. Hagen Kjos is Stein Erik Hagen's daughter. To, and safeguard or ensure Canica's and the Hagen family's long-term ownership and involvement in Orkla, the Nomination Committee recommend and propose that Caroline Hagen Kjos be elected as personal deputy member for the two board members nominated by Canica, Stein Erik Hagen. Propose that this deputy will be entitled to meet and speak in the meetings, but will not have a voting right unless she replaces Hagen herself in their absences.
To avoid misunderstandings, we also do not want this deputy to take the place of Hagen herself, this positions as a chair or head of the Audit Committee, in her absence. According to Section four, third subsections of the Articles of Association, the term of office can be set to up to two years. The committee is of the opinion that an annual evaluations of the composition be had, and to allow greater flexibility, and we propose a term of one year. Pursuant to the Public Limited Liability Companies Act, the chair of the board of Orkla ASA is to be elected by the board itself if this is not elected by the annual general meeting.
The board would like to comply with the Code of Practice and also Articles of Association, and therefore, we propose that this general election of 16th April elect Stein Erik Hagen as Chair, Grace Reksten Skogen as the Deputy Chair, in line with previous practice, for one year. And also, we propose the re-election of Stein Erik Hagen as Chair and Grace Reksten Skogen as Deputy. We now go to the proposed nominations for the Nomination Committee. I, Karin Bing Orgland, and Leif Askvig were elected in 2014 for a term of two years, and are therefore up for election this year. As Nils Henrik Pettersson was elected in 2015 for a term of two years, and therefore he will remain. And the instructions and the common nomination have...
are unanimous in proposing the re-election of me, Karin Bing Orgland, and Leif Askvig for a term of two years. When it comes to the chair of the Nomination Committee, there is a proposed motion to re-elect me as chair of the Nomination Committee. Let's move to the proposed remuneration for the board members. We see here the current remunerations in parentheses and what has been proposed. It has been clearly set out the company's practiced an annual adjustment of the fees in line with the general index unless there was circumstances indicating something else.
The Nomination Committee would like to adhere to this general principle, and we see here that the chair have a remuneration of NOK 700,000 per year, deputy chair, NOK 545,000 per year, member of the board, NOK 410,000, observer, NOK 156,000 per year, deputy member, NOK 26,500 or twenty-six five hundred per meeting. Members of the board elected by shareholders resident outside of Norway should have an addition of NOK 16,500 kroner per meeting they attend, and also this is proposed for shareholder-elected deputies. The Compensation Committee chair should be paid a remuneration of NOK 134,000 per year, a member, NOK 100,000 per year, and for the Audit Committee, the chair, NOK 168,000, and also the member, NOK 112,000.
Those will briefly like to go through the remuneration for the members of the Nomination Committee, and we propose that it is normally adjusted every single year, but we have departed from a meeting where they are paid per meeting they attend. It is not very practical because there's a lot of work that is done between meetings, and therefore, the Nomination Committee would like to change this to have a fixed remuneration in line with the practice of other companies. We have no intention of changing the amount of the Nomination Committee's remuneration, and we see the proposed sums that you see here. The chair should receive a remuneration of NOK 60,000 per year, the member, NOK 44,000 per year, and the representative elected by employees should receive NOK 5,500 per meeting, and we propose that this should apply until a new decision is made.
That brings us to the actually elections, and we have included them on item seven of the agenda. I have now given information and report, and we'll now put it to the vote. The nomination proposes that the current board be reelected, in addition to Caroline Hagen Kjos, proposed as deputy member. You may now ask questions or propose alternative candidates. Would anyone like to ask for the floor for this, on this item? Do you have any questions, any comments? There are no alternative candidates for the recommendation through the nomination committee, and therefore, we can save time if we put all of the proposed resolutions. Are there anyone who vote against the recommendations for proposed nominees for the boards, including the deputy member? That is not the case.
The new board of directors has now been elected, and we welcome the new deputy. Against, 26,641,340 votes. The term of the office has been proposed, set at one year. Can we then assume that this has been adopted? So hereby done. That brings us to election of member and chair of the board, and we would like to propose that Stein Erik Hagen be reelected, and also that Grace Reksten Skogen be reelected as deputy. Are there any questions, any votes against? Are there anyone not voting in favor of these proposals? That is not the case. All right, Mr. Hagen and Mrs. Reksten Skogen have now been reelected as chair of the board of directors. We have now reelected them.
Against, still 1,904,825 . All right, what about the nomination committee? Are there alternative proposals? That is not the case. Are there anyone who are not voting in favoring of the proposed resolution? That is not the case. All right, it has now been voted against, against 5,390 votes. And the term of office is proposed, set at two years. Any comments? No alternative proposals. If not, this proposal has now been adopted. That brings us to number ten, the chair of the nomination committee. Well, it's always a pleasant thing to propose yourself as a nominee and see how that is received. Are there any other proposals for someone to chair the committee, apart from myself? That is not the case. All right, this proposal has been.
I have now been elected against 9,376 votes. All right, we have now come to item 11 on the agenda, and I now propose that we put everything of the votes. It's the same adjustment that's been made earlier. Are there anyone not voting in favor of the nomination committee's proposal? That is not the case. All right, we have now elected we have not adopted this proposal. Against 10,301 votes. Are there anyone not voting in favor of the recommendation of the nomination committee? It has now been adopted against 4,285 votes.
We have now come to the auditors remuneration, and the cost of statutory audit of Orkla that you are to approve is NOK 2,736,263 . The overall aggregate remuneration to Ernst & Young for the group in 2015 totaled about NOK 33 million, and the auditing fees are mostly for audits of group-related company, but also includes some advisory services. The audit fees to other auditors came to NOK 2 million, and I will refer to note five in the accounts for more detailed description. As observers, they will have noted there's a slight discrepancy between the amount to be approved by the AGM and the amount stated in the annual report.
This is due to the fact that the amount stated in the annual report complies with the Norwegian Financial Supervisory Authority reporting requirements, which includes some items not comprised by the statutory audit, but it is the amount that you need to approve that you see on the screen. Are there any alternative proposals? Anyone not in favor of the proposal? That is not the case. All right, then this has been voted and there are against 4,426 . All right, there are no other items to be addressed by the annual general meeting. I ask that Ann-Kristin Braathen remain in the venue to co-sign the minutes. All votes have been counted and the results announced.
I therefore propose that before we leave, we should give the floor to Stein Erik Hagen to round off today's annual general meeting.
Thank you. And our auditor, Jan Willem Svensson, has been our auditor for many, many years. But pursuant to the rotating clauses in the law auditors, it will be Erik Mamelund, who will take over as the company's chartered accountant for Ernst & Young, and that applies as of the fiscal year 2016 . I'd like to thank you then, Jan, for all the work you've invested, and I had hoped that we had some flowers for you. As you've seen, there are some cards on your chairs, discount cards for greens, vegetables, and berries that you can buy in your online shop. You have to use the keyword on the card. It's wonderful products. I would encourage you all to do so.
I'd like to thank the administration, that is Peter, in the person of Peter, for a wonderful, wonderful job that you've done in all of the companies. Thank you so much to all the employees in Norway and abroad, where we have sales offices and plants. Orkla is doing well. We've had the best year for a long time, and we hope that this will carry on this year and coming years as well. And I'd like to thank all my co-shareholders for attending. I'm glad that you took the time to come here to attend this AGM. Thank you so much.