Cordial welcome to all of you to the Annual General Meeting of Sika AG. It's a special pleasure to me to welcome so many of you to Waldmannhalle, Baar today. A particular word of welcome goes to the members of the Board of Directors and the Group Management and all employees present here of Sika. I personally know many people present here today, and I would like to welcome all those I know personally. Here on the podium we have Thomas Hasler, our CEO, Adrian Widmer, our CFO, as well as Stefan Mösli, the senior counsel and secretary of the Board of Directors. We have around 20 Sika employees who are working at various places at this Annual General Meeting , and I would like to bid a cordial welcome to these helpers, assistants, and thank them for their commitment. Firstly, let's set up the Annual General Meeting today.
Let's set it up properly. By publication in the Swiss Commercial Gazette on the 23rd of February 2024, and by a written communication sent off on the 23rd of February 2024, you have been invited to the Annual General Meeting in accordance with the Articles of Association and the law. You've been invited in due course. The invitation included the items to be dealt with at the Annual General Meeting , plus the motions by the Board of Directors . From February the 16th, 2024, the annual report, the report of the auditors, and the compensation report have been available on our website for perusal by shareholders. On January the 26th, 2024, the company asked for suggestions, for issues, items to be added to the agenda. We have not received any such proposals.
The minutes of the last Annual General Meeting were signed by the chairman and the minute keeper, and it was available for inspection by shareholders at the company's headquarters and was also published on the internet. Pursuant to our Articles of Association, I shall chair the meeting as the Chairman of the Board of Directors. The minutes will be kept again by Mr. Stefan Mösli. In this context, I would like to point out that the Annual General Meetin g will be recorded on video, and there's a live web stream on the internet. The minutes of the Annual General Meeting , as well as the presentations, will be available on our website. They will be sent to you on request. Let's now appoint the tellers, whose names you can see on the screen behind me.
The tellers will only be used in case the electronic voting system should not work, and we needed to have an open-hand vote or a vote in writing. In that case, we would be using the coupons that were sent to you. The head teller is Mrs. Caroline Inauen . I would like to thank the ladies and gentlemen tellers for taking on this assignment. The statutory auditors, KPMG AG, is represented by Mr. Toni Wattenhofer. I would like to welcome him. I would like to also welcome the independent proxy, Mr. Jost Windlin, lawyer and notary of Bartlaw AG of Zug. He is going to cast votes according to instructions given to him. I would like to thank Mr. Windlin for taking over this mandate .
The independent proxy should have informed him of the management of the votes to be instructed or to have informed here of this, but this is not the case. The shareholders at this Annual General Meeting also had the possibility of giving proxies to the independent proxy, and electronic participation and any changes of instructions given electronically were possible until Sunday, March the 24th, 2024, at 11:59 P.M. The Annual General Meeting today, as I mentioned before, will be broadcast as a web stream on the Sika website as last year. Shareholders had a possibility of using an online platform for signing on, for registration, and for submitting questions. The link for registration on the online platform was sent out with the invitation on February 23, 2024. Registration was possible until Sunday, March the 24th, 2024, at 11:59 P.M.
Shareholders who have registered for the AGM and to speak at the AGM will be called by name in due course and will be shown through the live stream. In this context, I would like to point out once again that shareholders attending the Annual General Meeting via the web stream were able to exercise their shareholder rights either via the independent proxy or by granting a power of attorney to a third party prior to today's Annual General Meeting . It is not possible to exercise shareholder rights through the online platform. Finally, I would like to take this opportunity to thank Dominik Slappnig and his team for organizing the event today. The number of shareholders present and the number of votes represented will be updated on an ongoing basis, and I shall announce to you attendance before the vote on agenda item one.
I therefore note that you have been invited to the Annual General Meeting in accordance with the Articles of Association and the law, and that the Annual General Meeting has been duly set up and is therefore qualified to pass resolutions on all items on the agenda. Any objections to these statements? This is not the case. Thank you very much. At the Annual General Meeting today, you have the opportunity to voice your opinions or ask questions. If you wish to take the floor, we would like to ask you to first sign up at the speaker's registration desk on the left-hand side in the hall and to let us know which agenda item you wish to speak on. You will then be called at the appropriate time, and we'll be able to cast or to make your statement at one of the lecterns here up front.
In order to keep the Annual General Meeting running efficiently, we would like to ask you to register as early as now at the speaker's desk if you wish to take the floor at one point. Shareholders who have registered through the online platform to ask a question via the web stream will be called by name at the appropriate time and will be shown on the live stream. Maximum speaking time fundamentally is three minutes each. The Board of Directors reserves the right to comment on questions in aggregated or individualized form and to further restrict speaking time if necessary. At today's general meeting, we shall proceed according to the agenda shown here. After my remarks on the strategy, our CEO, Thomas Hasler, will report on the past financial year 2023 under agenda item one and provide an outlook for the 2024 financial year.
Patricia Heidtman, the Chief Innovation and Sustainability Officer, will then talk about Sika's sustainability strategy and innovations with which the company is making a significant contribution to the transformation of the construction and transport industry towards greater environmental friendliness. This is going to happen under item five. Let me now move on with my statements on the year 2023 and on our strategy. The reporting year, 2023, was both a significant and a challenging year for our company. With MBCC, we have realized the largest acquisition in Sika's history to date. MBCC not only brings us additional annual sales of around CHF 2.1 billion, but above all, we have gained a strong partner in our team with whom we've become the clear innovation and sustainability leader in our industry. Furthermore, the complementarity in terms of products, markets, and geography is now perfect.
We would like to welcome all the former MBCC employees to the Sika family. In operating terms, we performed well in 2023 despite economic headwinds. Once again, we were able to gain market share and generate strong results. For example, we increased our sales in local currencies by 14.5% and our operating free cash flow by 58.7%. Our CEO, Thomas Hasler, will present a broader review of the year under the agenda item of the annual report. The good results also allowed us to propose a dividend increase to shareholders for the 12th consecutive time. We are therefore asking you today to approve an increase in the gross dividend from CHF 3.20 to CHF 3.30 per share. Another important highlight in 2023 was the revision of our strategy.
In October, we were able to present this to the public for the next period of strategy until 2028 under the heading of Beyond the Expected. Allow me to briefly turn to strategy 2028. Essentially, it is a continuation of the successful strategy 2023. In the last period of strategy, Sika was able to increase sales from CHF 7.1 billion to CHF 11.2 billion and continuously raise the margin. With all the strategic indicators defined at the time, we thus exceeded our targets. Following the acquisition of MBCC, we're well positioned to continue this success story in the current strategy 2028. Thanks to the synergies identified, we can even expect disproportionately high growth in our margins, and given the expanded technology base, we will also be able to make an even greater contribution to reducing greenhouse gas emissions in the construction industry.
We're operating in a market with a potential of more than CHF 100 billion. With our market share of 11%, we're the clear global market leader, and with our Sika brand, we've got the strongest brand in this industry. The market is also still highly fragmented and therefore offers countless opportunities around the world to expand our positions through acquisitions. As the largest player in the construction chemicals market, we're therefore predestined to further expand our market share and continue to grow profitably. Various megatrends are also supporting growth in all our target markets. Let me particularly mention the sharp increase in urbanization, especially in our growth markets. There are megacities all over the world, and the number of them is increasing as more and more people are moving from rural areas to urban centers.
This increases the demand for high-performance solutions that enable densification of modern cities with increasingly complex infrastructure. Sika is responding with innovative solutions to this situation. With our portfolio, we are in an excellent strategic position to utilize growth opportunities in a targeted manner. Over the next few years, we are expecting to be able to grow by an average of 6%-9% per year as measured in local currencies. Our success is primarily based on our focused growth strategy and our decentralized organization. Strategy 2028 is solidly based on four pillars and clearly focused on profitable growth. We're efficiently utilizing the opportunities that arise from market penetration, from acquisitions and innovation, and based on our corporate culture. As you can see, our financial targets are ambitious, and we communicate them very transparently.
We have also identified measurable sustainability targets in the new strategy, and we have communicated them. This makes them just as important and transparent as the financial targets. An important component of Strategy 2028 is organic growth and thus the market penetration, highlighted in this chart in yellow. As the core of the new strategy, we want to strengthen this in a targeted manner with the levers shown here, thus making it the main carrier of our growth. We are supporting our growth with bolt-on acquisitions, and we will also be able to benefit from the general growth in our markets due to the megatrends that I've mentioned a minute ago. Sustainability is an important aspect of Sika's culture and thus of our strategy. We're being recognized for our efforts, and the ratings of the most important international agencies are showing that.
These have all consistently improved in the past year. In 2023, Sika received a double-A sustainability rating from MSCI and is categorized as the industry leader in the Sustainalytics rating. Both ratings are among the most important sustainability ratings of all. Our strong positioning was also confirmed by our recently announced inclusion in the Dow Jones Sustainability Index for the third time in a row. In addition, Sika has developed its emission reduction targets according to the latest Science Based Targets initiative criteria and submitted them in October 2023. The validation process is currently underway, and we expect our targets to be recognized by SBTi as early as the first half of 2024.
Patricia Heidtman is going to explain our sustainability strategy to you in more detail later under item five. As you can see, Sika is well prepared for the next strategy period and ready to continue its success story.
Dear shareholders, this is also the right moment for me to hand over the chairmanship after 12 years. In Thierry Vanlancker, we can today propose a proven personality for election as chairman to you. He not only has the necessary industry expertise but has also proven himself to be a successful leader. He will introduce himself to you personally before his election. I can look back on 12 eventful years, and I'm proud that I was able to help right the beginning of Sika's second century of history with great Sika staff. In particular, our development since our independence has confirmed that we can be extremely successful without an anchor shareholder, whether Swiss or French. All shareholders who remained loyal to Sika during the turbulence were rewarded for their trust. I'm particularly pleased that the larger number of newly recruited employees share our typical culture, the much-cited Sika Spirit.
We continue to make our decisions at the lowest possible level and as close to customers as possible. Performance is key to us, but we also treat each other with respect, and we celebrate our success with appropriate humility. Despite the new size, no big corporate thinking has crept in. At the core, we have remained a medium-sized and pragmatic and entrepreneurial company. Our corporate culture is our most important success factor. It is practiced every day by our management and our employees. Their great commitment, their agility, and their annual top performance make Sika unique. I would like to sincerely thank all our employees around the world for their great commitment, their focus on our joint goals, and their strong identification with our company. Dear shareholders, I'm convinced Sika is well positioned and will be well positioned for the challenges in the future.
I would like to thank you very much for your great confidence in our performance on behalf of the Board of Directors , the Group Management , and the more than 33,000 employees. Thank you very much indeed. Let's begin with the more formal part of the meeting, and allow me first to make a few comments on the voting procedure. As you've seen, we're using an electronic voting system. It is operated by a company called Devigus Engineering AG. I'd briefly like to explain to you how to use the voting devices. The voting device has three buttons. The top button is used to vote yes, the middle button is for abstention, and the bottom button is used to vote no. If you do not press any of the buttons during the voting window, this is considered an abstention or an invalid vote.
As soon as I've explained a motion during today's meeting and the request to speak have been concluded, I will officially open the vote. From this point on, your voting devices will automatically be switched to voting mode, and all three buttons will light up. This indicates that the voting device is ready, ready for voting. If this is not the case, in your device, please go to check-in and get your device replaced. You will have five seconds to cast your vote. While the five seconds of voting time are counted down on the screen, you can cast your vote by pressing the green yes button, the amber abstention button, or the red no button. If you have accidentally pressed the wrong button, you can cast your vote again within the voting time simply by pressing the correct button.
Once the 5 seconds of voting time have elapsed, it is no longer possible to correct your vote. A short time later, the voting result will be displayed on the screen. If you notice that your device is out of order during the voting process or if you have problems operating it, please contact check-in. If you wish to leave the hall during the meeting, please take your voting device and voting material with you. Shareholders who vote against a motion have the opportunity to have that recorded in the minutes. In order to do so, we ask you to hand back your voting device after the Annual General Meeting stating your name and to do this at the registration desk. Furthermore, every shareholder may request that their statements be recorded in the minutes.
The exact voting results will be recorded in the minutes of the Annual General Meeting and published later. Now we're going to check the electronic voting systems with a trial question. The trial question is: Did you know that Sika in the 2023 financial year achieved sales over CHF 11 billion for the first time? You will have five seconds' time to cast your yes, no, or abstention vote once I've opened the vote. So please take your voting device, and voting time is on now. Time is up. You see the results here. All of you knew that Sika in 2023 achieved sales in excess of CHF 11 billion for the first time. It's not true? Oh, yes. Sorry, that was wrong. Almost everyone knew. Should you have found your device being out of order, please turn to check-in.
Moving on with attendance figures at the Annual General Meeting today. On the screen behind me, you can see the number of shareholders present and the aggregate total of votes represented. We have 781 shareholders present, and the aggregate total of votes represented is 93,369,394. Shares held by Sika and its subsidiaries are not entitled to vote and not being represented. These figures will be calculated again before every vote to account for people leaving and people returning. Based on our Articles, the Annual General Meeting passes its resolutions and conducts its elections at an absolute majority of the votes represented, excluding abstentions and blank and invalid votes, unless the law or the Articles of Association contain provisions to the contrary. The number of votes in favor, against, and abstentions on the individual votes are announced and will be announced for each agenda item.
This brings us to the agenda items of today's AGM. Here you see the list of agenda items that you also received with your invitation already. This is why I will now not read them out in detail. We start with agenda item one. Approval of the annual financial statements and consolidated financial statements for 2023. During the media conference of 16 February 2024, we already gave a comprehensive overview of the business year 2023. For further details on the annual financial statements and consolidated financial statements 2023, I would refer you to the detailed figures in the business report 2023 of Sika AG. Our CEO, Thomas Hasler, will now give a few more details and also an outlook for the ongoing year.
For years, Sika has been pushing the construction and automotive industries forward, developing automation, increasing digitalization, and creating products with improved sustainable impact.
In the modern world, you can find Sika's cutting-edge solutions almost anywhere, be it in building projects, critical infrastructure, transportation solutions, or renewable energy sources. Sika is driving change and powering improved performance, longevity, and sustainability. Wherever you look, you can find Sika going beyond the expected.
[Foreign language] And I think the video we just saw shows very clearly all the areas that Sika is involved in in construction. There's almost no area of that industry where we are not present in over more than 103 countries internationally. So all of this boiled down to a 30-second video thanks to the communications team for that nice illustration.
I would like to briefly look back on our business year 2023 and once again say that we've had over CHF 11 billion in sales, actually CHF 11,238 million, and we were able to increase our sales by 14.5% in local currencies. Of course, in Switzerland, the currency plays a strong role, but you also have to see that somewhat in context because it's transactive and not transitory, and it's both top and bottom line relevant. The EBIT saw a slight decrease. If we look at one-off effects of sales, for example, in Germany and acquisitions in MBCC, we were still well within our EBIT margin, and we were even able to raise it.
We're very proud of our cash flow of CHF 1.372 billion, which is testament to the strong shape our company is in and, of course, also excellent working capital management that allowed us to use our assets. Central in 2023 was, of course, the successful MBCC acquisition starting the whole integration process. It's significant that we were already able to release CHF 41 million of synergies in those first few months. Innovation and sustainability are, of course, very important topics. We will hear more about those as the meeting goes on, but also here a very strong year with more than 100 new patents and almost 200 new inventions registered. This shows that we are still continuing with this very important pillar of our DNA, and we are never done with looking for new inventions and new patents.
Also relating to CO2 reductions, we were able to make progress, and we intend to further fine-tune this in the years to come. The strategy 2028 has a strong balance between financial and non-financial goals, and here is an especially relevant topic: CO2 emissions. Sales in the regions have had a fairly even increase of 15%, give or take, and MBCC was, of course, very important in this. The global segment, global business without the acquisition, was still in the two-digit organic growth in local currencies. As already explained previously, it's not only financial goals, but it's also important to us to focus on our non-financial goals, for example, in waste reduction, water use reduction, safety of our employees, but also in the area of CO2 to keep progressing there. All these areas show a very positive trend, which encourages us to persevere in this and have a balanced approach.
As usual, looking back at a business year, there is the inorganic and organic aspect to be considered. Acquisitions in 2023, of course, the number one which I'll come back to presently is MBCC, but I don't want to forget about other important acquisitions: Thiessen Team in the USA, the mining business, but also in Peru. [Foreign language]
We have been able to increase our footprint. In Switzerland, in Kirchberg, we have an expansion for injection cement, which will help us to be more involved or continue to be involved in tunnel construction in Switzerland and the Alpine regions. In China, we've opened a technology center. It's the largest of its kind in the group following our Swiss branch. This is a very clear sign that Sika is committed to this largest single market in the world. The next 2 slides show us what the foundations are of this successful year last year, but also in the medium-term 2028 strategy. It's clear that originally we were very strong in infrastructure, and during the last 20 years, there's been a lot of diversification, for example, into residential, automotive, or the manufacturing. Those are vertical markets that we intend to use for future growth.
But also the mature markets are in the balance that show huge potential for growth. We are talking about new constructions as opposed to renovations, and here we have a very good balance. We are strong in both fields in order to keep growing organically and non-organically. Looking back over the last six years, we can see what our DNA is: above-average growth of our EBIT, but also the two-figure growth in Swiss francs in the last six years. We have obviously got a growth gene in our DNA, and we are combining it with an above-average profitability increase. And for me, that is the absolute proof that if you want to gain market shares and stay profitable or become even more so, that you need to bring significant solutions to the market, and people will accept these and appreciate them.
Comparing the last couple of years, then we have to kind of put those wild 20s into perspective somewhat, starting with 2020 when the world suddenly came to a standstill due to COVID. Nonetheless, Sika still managed to grow 3.4%. 2021, the year when all volumes went down, we still had 17.1%, also mainly organic volume growth. 2022 was a year characterized by inflation tendencies with supply problems. Here again, 15.8% growth, mainly driven by price adjustments to the inflation. Those were the main topics in 2022. Last year, as you can see, also compared to our competitors or peers who report their growth, their growth across the board went down by 3.5%, and that was consistent with the general reduction of the market. But we had an organic growth of 1.2%. And above that, again, two-digit growth thanks to MBCC.
This mixture of pricing, volume, positions gives us a basis to keep gaining market shares throughout the years. A few words on MBCC. Truly fantastic transaction. 6,000 additional employees that have joined us on 2 May last year, CHF 2.1 billion in turnover, and a very strong product portfolio that is a perfect complement to our own portfolio. We have looked at the synergies during the first 100 days, and we're able to increase them. By now, we are expecting, if we fully manage to implement all these steps, CHF 180 million-CHF 200 million + in synergies that can be realized thanks to the complementary nature of our business fields. That's over 60 countries that contribute to this, over 1,000 individual initiatives that come to fruition.
And this is why it's even more important. Paul already mentioned, it's the people who help us realize these goals, the people at MBCC or formerly MBCC and Sika that together are taking these opportunities. And for all of the people involved, of course, there will be changes and adjustments. They need to have a very close and relatable strategic leadership. We always take these pulse checks to see that everybody understands where we're going and why. And if we realize that there is still a lack of understanding, we can communicate and make sure that all our employees are on board in the best way possible and are committed to realizing these significant synergies and opportunities that have been made possible thanks to this acquisition. Outlook for 2024, I briefly mentioned it before. Last year was, generally speaking, a year of decrease.
Our competitors went down by a bit over 3%. We were able to grow 1.2%. But the year started as the last one ended. No fundamental change there. But looking forward for the next couple of months, we're expecting more positive trends. We see that interests are going down, and hopefully this will encourage more activity in the construction sector. Then, of course, there are still geopolitical problems to be taken into consideration, not to be underestimated. So in total, we have committed for the entire year that we will have sales growth in local currencies of 6%-9% as usual, coupled with an above-average EBITDA increase. And also our new strategic goals that we will be able to fortify them and further confirm them. And we're still expecting further growth in that area. And with that, I would li ke to hand back to Paul.
Thank you, Thomas. And I'd like to take the opportunity to thank the management and all employees of Sika for this convincing performance last year. Congratulations, and I think this is worth another hand. Getting back to item 1, approval of the annual financial statements and consolidated financial statements for 2023. The annual and consolidated financial statements were audited by the auditors KPMG. The auditors' reports on the consolidated financial statements and the annual financial statements can be found on pages 255-259 and 276-279, respectively, of the annual report. In these reports, KPMG recommends that you approve the annual financial statements and the consolidated financial statements. I would like to thank the auditors for their work performed. So let's move to the motion based on the auditors' reports.
The Board of Directors proposes that the annual financial statements and the consolidated financial statements for 2023 be approved. The floor is open for a debate on this item. Iain Richards has asked for the floor.
Mr. Chairman, members of the board, all the employees of Sika present or with us in spirit, fellow shareholders, good afternoon. As some of you will know, I'm Iain Richards from Columbia Threadneedle Investments. It's my great pleasure to be here once again in Baar, six years, I believe, since my last appearance, and to see so many familiar faces. As shareholders and long-term supporters of this business, we know all too well the ups and downs of industries, economies, and businesses themselves. In my world, we often talk about share prices and similar metrics, but I wanted to give you a sort of slightly broader context to this year's financial results and the statements we've been asked to approve.
In 2009, and I choose that year for a good reason, this business was solid, and it was worth about CHF 1.6 billion. Today, 15 years later, we've built this business into one that is a $48 billion global leader. Sika today is worth over 26 times what it was worth in 2009. To give you some context, there are about 55,000 listed companies in the world. Sika, as of today, ranks number 400. It's the 11th largest business in Switzerland. It's in the top 60 in Europe. That's an amazing success that is down to the employees of this business and to the leadership of the business for which, as shareholders, we are eternally grateful. Another point that was talked about with the 6,000 new employees. Back in 2009, there were 12,000 employees, roughly. Today, we have over 33,000 members of the Sika family.
That is truly impressive. There was a time that we feared that the potential of this great business would be wasted and betrayed. But here we are celebrating another successful year. This is largely thanks to the commitment and hard work of all the employees of this business, the Sika family, who've made this company the success that it is. You've just completed the largest acquisition in the company's history. We have a new strategy. For me, the real driver of this business is its innovation, its operational agility, and delivery. Plus, let us not forget the Sika Spirit, the secret sauce, the secret ingredient that makes Sika special, maybe even unique. Thinking about that, back in 2009, about 1.8% of net sales, so CHF 74 million, a bit over CHF 74 million Swiss francs, was reinvested into research and development.
Last year, it was 2.4% of net sales, CHF 270 million, nearly four times as much. No wonder, with all of these things, Sika took first place in the Swiss reputation top 20. That is a tribute to everyone in this business and to all the employees that are here and elsewhere in the world working to make this business the success that it is. I couldn't be prouder of all of you. You achieved the highest score in products and innovation, stood out for both economic performance and sustainability, among other things. We welcome and support these financial statements. But we do live in a world where lots of people have agendas. So I want to leave you with a few final thoughts. For me, you already know what you need to do. It's commercial focus. It's organic and complementary growth. And most importantly, execution and delivery.
You should be proud of the work you've already done in this area. Looking ahead, it's important that you stay focused, keep delivering and innovating, and never lose sight of the Sika Spirit. But please, do be wary of the pied pipers that are out there, whether they are bankers with new wonderful deal ideas or so-called ESG experts with their checklists and often uncommercial demands. Stay true to what this business is. Keep delivering. You have a great opportunity, and you have a great future. And as shareholders, we're eternally grateful. Thank you.
Thank you, Iain, for your kind and encouraging words. We've met several times during the 12 years, and you always had a kind of a list of good recommendations, which we try to follow. I'm sure we'll continue to do so. We are also happy if we have happy shareholders on the other side. So thank you very much. I think there are no other. No further requests to speak at this point. So we will now proceed with voting on agenda item 1. Voting starts now. Next, agenda item 2, appropriation of the retained earnings and distribution out of reserves from capital contribution of Sika AG. The AGM has just below CHF 1.4 billion at its disposal. The Board of Directors proposes a dividend payment of CHF 529.6 million, which would be carrying forward to the new next year of CHF 1.12 billion.
This payout would consist of one-half retained earnings and the other reserves from capital contributions. This proposal for the dividend, with the explanations, has been included in the invitation to today's AGM and also in page 275 in the annual report. Our auditors confirm that the proposed allocation of these earnings is in accordance with the law and our Articles of Association . Therefore, I will not read out the entire proposal. Should you agree to this proposal, the gross dividend will consist of CHF 3.3 per share. Does anybody wish to speak regarding this agenda item, this proposal? I don't see anybody raise their hand. So we will start voting on article 2 now. Time's up. You have approved the proposal of the Board of Directors in a large majority. We thank you sincerely. We come to the next agenda item, granting discharge to the administrative bodies.
The Board of Directors proposes to grant discharge to the members of the Board of Directors and Group Management . We want to make a global vote on this proposal. Before we do so, I would like to note again that in accordance with article 695 of the Swiss Code of Obligations, any persons that have participated in any way of the management of the company have no voting rights on this agenda item and neither do any persons who are representing share votes belonging to such persons. Does anybody wish to speak on this proposal? I don't see anybody asking for the floor. Therefore, we will proceed with the vote on agenda item 3. Voting starts now. Time's up. I see that discharge to the administrative bodies in a large majority. We thank you sincerely. Next, elections. We start with the re-elections to the Board of Directors .
As already stated in our Articles of Association, all members of the Board are elected individually and for a duration of one year, meaning until the next AGM. The electronic voting system allows us to carry out all elections in immediate succession and then subsequently present you the outcomes of all individual votes in one go. Or to put it differently, I will carry out the vote on each candidate individually, and all the results will be only shown after the last election is over. This will save us some time. As can be made out from the invitation of 23rd of February 2023, the individuals listed behind me are standing for re-election. They are all supported by the Board in this endeavor. Personally, I am no longer electable. Does anybody wish to speak on this topic? Please state your name.
Max Enderli, Hagenwil. My name is Max Enderli from Hagenwil. Ladies and gentlemen, we are coming to the end of an era. Paul Hälg is no longer a candidate. He was a real, true Sika servant who really cared about Sika from the bottom of his heart to preserve this company. Thanks to him and the entire team, Sika is still with us now the way it was before and hasn't been taken over. He put up a huge fight. I'm sure it cost him quite a few nights of sleep. This is something we should really appreciate, what he has achieved here. He was not afraid. When things got rocky, I'm sorry, I should be speaking High German, a big storm came up. He was not afraid but kept going forward. Kept his feet on the ground and fought for Sika for all the employees.
For every one of us. This is how we could keep Sika in Switzerland. We can be really proud that we have people like him that care about something and that put themselves in the service. I would like to stress that. They serve the company. They're not there to just milk it like some others. So, Paul Hälg, thank you so much.
Thank you. It's not only one achievement. It was the entire company. The management, the Board of Directors, and also all the shareholders like yourself that kept supporting us during this struggle. So my thanks goes right back to you. I don't see anybody else asking for the floor. Therefore, we can now proceed with voting. The Board of Directors proposes that the following persons be re-elected to the Board of Directors for a term of office of one year under agenda items 4.1.1 to 4.1.7: Victor Balli, Lucrèce Foufopoulos, Justin Howell, Gordana Landen, Monika Ribar, Paul Schuler, and Thierry Vanlancker. Please take out your voting devices and vote in each case with yes, no, or abstention. In which case you would have to press the amber button in the middle.
As mentioned previously, we will have all of the elections in succession and show you the results at the end.
So we come now to the re-election of Victor Balli. 4.1.1 starts now. Voting on agenda item 4.1.2 starts now. Please vote. Time's up. We come to the re-election of Justin Howell. 4.1.3. Voting starts now. Next, the re-election of Gordana Landen. Please start voting now. Next, the proposed re-election of Monika Ribar. [Foreign language] Voting is now closed. [Foreign language] I congratulate all my colleagues on their re-election and thank you for your trust. Moving on to agenda item 4.2, election of Thomas Aebischer as a new member of the Board of Directors . Thomas Aebischer brings many years of international experience in the chemical and construction industries.
With his expertise in financial management, strategy, business development, and mergers and acquisitions, he will make a valuable contribution on the Board of Director s. Until December 2023, he served as caretaker CFO of Master Builders Solutions, a leading provider of construction chemical solutions. From 2016 to 2022, he served as chief financial officer of various companies in the chemical industry. Prior to that, for around 20 years, he worked for Holcim from 2011 to 2015 as the group CFO and a member of the executive committee. He is a member of the Board of Directors of Solvay and Dormakaba. Two listed companies. The Board of Directors is convinced that Mr. Aebischer's experience will make him a valuable addition to the Board of Directors . Please, Mr. Aebischer, would you please briefly introduce yourself here at the rostrum.
Dear shareholders, it's an honor to be able to present myself briefly to you. You heard my name. My name is Thomas Aebischer. I grew up in Bern. I did my education there. I started my professional career at the Cantonal Tax Office in Bern. Maybe you can still hear it by my accent where I come from. Afterwards, I was at Pricewaterhouse. I was nine years at Pricewaterhouse in Switzerland, also in Eastern Europe and Asia. Then I worked for Holcim in Switzerland and the U.S. and Mexico and later for another company in Texas. As Mr. Hälg already mentioned, since 2020, I've been working on a mandate base. I am also very pleased to be proposed as a member of the board of directors at Sika. It's an honor to be nominated. I thank you for your trust.
Thank you, Mr. Aebischer. So let's move on to the motion. The Board of Directors , in accordance with agenda item 4.2, the Board of Directors proposes election of Thomas Aebischer as a member of the Board of Directors for a term of office of one year. Anyone requesting the floor on this item? This not being the case, let's proceed to the election. Time is on. Time is up. You have elected Mr. Aebischer at a vast majority as a member of the Board of Directors . Congratulations, Mr. Aebischer, on your election. I wish you all the success you need at Sika. This brings us to item 4.3, election of a new chairman. As I'll be stepping down at the end of my term of office, that is at the end of this Annual General Meeting , a new chairman of the Board of Directors will be elected.
Thierry Vanlancker is standing for election and would now like to address you. Thierry, please, may I invite you to the lectern?
Dear Paul, ladies and gentlemen, as German is not my mother tongue, I need some written support so that I don't get lost in German grammar. When in 2019 I joined Sika's board in 2019, that's 5 years ago, it was for me the beginning of an inspiring journey. First, getting to know and like Sika and its people, to finally getting to admire the impressive company called Sika and understanding the drivers of why Sika has been such a clear global leader in the construction chemicals industry. Maybe my career is a bit boring, but after graduating in 1987 at the University of Kent in Belgium with a master's in chemical engineering and a master's in philosophy, and after doing my military service in Belgium, I joined the American chemical company DuPont in 1988. I stayed for almost 27 years with DuPont.
I was active in different businesses such as polymers, paints, and floor products. I had the opportunity to grow from a starting salesperson, the biggest thing I've ever had, through research and development and several business leadership roles to finally end my career with DuPont as its global president of chemicals and floor products. After an interim year with DuPont spinoff Chemours, at the end of 2016, I joined AkzoNobel, a global chemical Dutch company headquartered in Amsterdam, where I still live today. At the beginning of 2017, I was appointed global CEO of AkzoNobel and remained in this position for six years. AkzoNobel, in terms of revenue, number of employees, and geographical reach, is very similar to Sika.
My professional journey led me to France and Germany and in the US, eight, nine years respectively, and seven years in the Netherlands, which was a major cultural shock for us in the family. The University of Kent not only gave me a good, solid academic education, I believe, but it is also where I befriended a very nice female chemical engineer student, Tineke, with whom I will have been married for 35 years this year. We've got two daughters, and we are very proud of them. I believe my professional journey is useful and gave me useful tools to add or try to add to Sika's success story. In my career, I experienced many good and less good business ideas. In my career, I encountered many good operating models or less good operating models.
I believe that the paints and chemicals business has a similar supply chain and similar channels as Sika's. So this may be useful and perhaps reassuring to know that many customers and suppliers of a paints and coatings company basically are the same as Sika's. The same goes for distribution channels and the way we open up markets is all overlapping. It's a very local business as for Sika, and success depends very much on having good overview and clear processes. But of course, we need a decentralized, empowered organization to be as close to customers and to be as fast as possible. So from the very start, five years ago, Sika was like home to me.
In the past five years, as a member of the board of Sika and as the chairperson of the Sustainability Committee , I got an impression of how the management team works and how the Board of Directors works. I have observed how much passion and knowledge and expertise there is in the management and the Board of Directors . Over the years, I had the opportunity to get to know Sika teams around the world, be it in Europe, North America, Latin America, and several Asian countries. It simply is fun to talk to competent and passionate people around the world who are part of Sika.
I've been convinced by them that the true success factor for Sika, the secret source that was mentioned already, lies in the great people, great employees who work a little faster and a little better than at competitors every day for Sika. It's a great honor for me to be proposed as the new chairperson of the Sika board. I'm really looking forward to continuing to write the success story of Sika. But don't expect any revolution after the handover from Paul Hälg to me. As far as I'm concerned, it's all about continuing along the path the company has embarked on. By the way, talking about Paul Hälg, let me just say that it's quite intimidating to me to follow such a monumentally successful and longstanding chairman like Paul.
Paul has this rare combination of knowledge, grace, tenacity, curiosity, and a very big heart for Sika's workers, Sika's employees. It is fair to say that he was the key person 7-8 years ago to throw himself personally in the battle to make sure Sika not only continued to exist, but that Sika became one of the most impressive growth and value stories in the global chemicals industry. So these are very, very big shoes to fill. I count therefore on the continued enthusiasm and support of the strong members of the whole Sika board and the management team by continuing the pragmatical and energizing dialogues to keep the Sika ship on its successful course. And we simply want to have fun keeping it on its successful course. Paul, from the bottom of my heart, I would like to thank you very much indeed.
You have my promise, and I'll do everything in my power, to continue along the successful trajectory that you have embarked on with Sika. Thank you very much.
Thank you, Thierry, for your introduction and also for your kind words. We on the board are firmly convinced that with your experience, you will be successful in this new capacity and keep the company on its trajectory. We have Mr. Jopp from Effretikon, who has also signed up to speak on this subject matter.
I can tell you, I know Mr. Jopp from Effretikon already. Some of you might know him from other AGMs.
Dear Chairman, ladies and gentlemen, Mr. Vanlancker, you spoke from my heart.
I really like you. You made a very positive impression on me. I really have to say it. It's rare that you hear these kind of words. Excellent job.
I wish you in this new position.
I would like to wish you in this new position all the best.
I think it would be good for Sika as a company that there is a fresh breath of air at the top.
Maybe I can have a little bit more of a positive view on this company in the future.
Thank you, Mr. Jopp.
We have another request to speak, Chris Rossbach from J. Stern.
Thank you, Mr. Hälg. I don't really know what I could add to all that.
Nonetheless, what I wanted to say is J. Stern & Co. is a longstanding shareholder of Sika AG. And already long before the attempted takeover by Saint-Gobain, we were investing in this company and are today still convinced of the value creating potential of this company. The composition of the Board of Directors is of great significance to us because we believe in equal opportunities. And Sika is a worldwide company, and we need people with various types of life experience and perspectives to be members of the board. But we've also seen in the recent years how important it is that it is staffed with people and how important the board and its chairmen are to take their responsibilities seriously and act in the interest of all shareholders and take the right decisions, also if they're sometimes difficult or fraught with risk.
Thierry Vanlancker has a long and successful career at AkzoNobel and has been a member of the board since 2019. He knows the company and what are the challenges and opportunities. We are convinced that he has the necessary background and experience to successfully lead Sika concerning the integration of acquisitions, innovation, growth, and other matters. We are also convinced that he has the necessary sense of responsibility and the courage to do the right thing for Sika and the shareholders and to preserve the independence of the company. This is why we fully support the election of Thierry Vanlancker as chairman of the Board of Directors and as the successor of Paul Hälg. We are optimistic that Sika will continue to create value under his leadership.
Thank you, Mr. Rossbach. I don't see any further requests to speak. Therefore, we will now proceed with the vote. The Board of Directors proposes the election of Thierry Vanlancker as the newly elected chair of the board for a term of office of one year. Please start voting now. You have elected Mr. Vanlancker as the new chairman of the board with a large majority. Thank you very much. Congratulations, Thierry, and all the best. I wish you great success and satisfaction in this new position. Agenda item 4.4. Proposal. The Board of Directors proposes that the following persons be reelected to the Nomination and Compensation Committee for a term of office of one year. The members of this committee will be elected individually for a term of office of one year until the next ordinary general meeting. It will be the same procedure again.
The elections will be held successively with the results in their totality presented after the final election.
After being elected to the Board as the Chairman of the Board of Directors, Thierry Vanlancker is no longer a candidate for that committee. Therefore, we only have two candidates. All candidates are supported by the Board of Directors. Does anybody wish to speak on this agenda item? The Board of Directors proposes that the following persons be reelected to the Nomination and Compensation Committee for a term of office of one year: Justin Howell, Gordana Landen, and Paul Schuler. I would like to ask you to take out your voting device and start with the reelection of Justin Howell. [Foreign language] Please vote now. [Foreign language] Voting is closed, and you will see the results in a moment.
Sie haben Justin Howell, Gordana Landen und Paul Schuler nominated for Nominations and Compensation Committee . Thank you, and congratulations to all three of the candidates. Agenda item 4.5. Election of statutory auditors. The Board of Directors proposes that KPMG AG be elected as statutory auditors for the 2024 financial year. Ms. Pohl and Mr. Wattenhofer have informed us that KPMG would be glad to continue the mandate if the AGM appoints them to that position again. Does anybody wish to speak? Apparently not, so we will proceed with voting on agenda item 4.5. Voting starts now. You have appointed KPMG by a large majority to once again be our auditors for the year 2024. Congratulations to KPMG on your election. This brings us to agenda item 4.6. Election of the independent voting proxy. As stated by the article of association, the general meeting appoints the independent proxy.
The Board of Directors proposes that Jost Windlin, Attorney at Law and Notary at Bartlaw AG in Zug, be elected independent proxy until the close of the next Annual General Meeting . Does anybody wish to speak on this agenda item? Apparently not, so we will proceed with the vote. Please start voting on agenda item 4.6 now. You have chosen Mr. Windlin or reelected Mr. Windlin as our independent proxy by a large majority. Congratulations, Mr. Windlin. Next comes item number 5, sustainability report. Sika AG, with the introduction of article 964A of the Swiss Code of Obligations, is obliged for the first time this year to submit to shareholders its sustainability report and to submit it for approval. Explanations on the sustainability report agenda item can be found in the invitation to today's Annual General Meeting .
The sustainability report can be found on pages 38-151 of the annual report. Before I move to the motion and the vote, I would like to invite Patricia Heidtman to come on stage. Patricia is Sika's Chief Innovation and Sustainability Officer. In this capacity, she is responsible at group level for innovation management and drives implementation of the sustainability strategy. Both areas are very important to Sika. One of the company's declared objectives is to meet global challenges by developing innovative and sustainable solutions and to support customers on their path towards net zero. Patricia, the floor is yours.
Dear Paul, dear shareholders, dear colleagues, dear visitors to this Annual General Meeting . Our strategy is based on four pillars. One of them is innovation, innovation and sustainability. Innovation and sustainability are interdependent. They reinforce each other in their efforts, in their endeavors.
I'd like to present to you a few examples that illustrate how our solutions drive technological progress while taking into account sustainability aspects. In 1910, Kaspar Winkler founded his company. His first invention included products for cleaning and maintaining granite and a sealing mortar called Sika. Breakthrough came in 1918 when the Swiss Federal Railways carried out successful trials with Sika -1 to seal the tunnels on the Gotthard Line. Now, this happened just at the right time. With the switch from coal to electricity in railway operations, the issue of sealing became extremely relevant. But why go so far back in history? I think this example wonderfully illustrates that a company more than 100 years old can still continue to be innovative. One could even say we've been a startup for more than 100 years.
Now, tunnel engineering continues to be a very interesting subject matter presenting exciting challenges to which we are happy to contribute our solutions. As you can see in this chart, every year around the world, 5,000 kilometers of tunnels are built. This is almost 80 times the Gotthard Tunnel. If you add up the ongoing and the planned projects, the aggregate amount will be more than CHF 1 billion of expenditure, more than CHF 1 trillion. From this, Sika derives a market potential of CHF 4 billion by 2030. Now, where's the innovation in that? Sika has developed a new technology for surface sealing of tunnels called SikaProof. SikaProof-200 is characterized by the fact that it bonds optimally with concrete and thus makes it waterproof subsequently. The product was developed at Sarnen, Switzerland, and is also manufactured there.
Now, with this impressive technology, we can achieve faster installation while supporting the quality and durability of the structure without compromising it. As you can see, an application that has been around for 100 years can still be improved upon. Innovation has been firmly anchored in our DNA since 1910. Now, from tunneling to the heights of the mountains or from tradition to an ultramodern project, the Azabudai Hills in Tokyo, I'm referring to. This mixed-use complex can accommodate around 20,000 employees, 3,500 residents, and more than 30 million visitors a year. At a total height of 330 meters and a gross floor space of 460,000 square meters, this is a very impressive structure. The most important Sika products in the tower include concrete admixtures and sealants, which ensure reliable and safe construction. A major contribution to sustainability was made by Sika in the following project as well.
The Quay Quarter Tower in Sydney is a refurbishment project for a building built in 1976. The original building was no longer in line with modern requirements after 40 years and was in need of structural improvement. Sika's carbon fiber reinforcement systems reinforced the existing concrete structure. This, in turn, led to an increase in the height of the building and doubled the floor space. Sika also supplied fireproofing, floor leveling products, and other construction chemicals for this particular project. Refurbishment made it possible to save considerable amounts of resources and reduce the environmental impact. For example, 23,000 cubic meters of concrete and 12,000 tons of CO2 were saved. These savings demonstrate the effectiveness of Sika's sustainable approaches and help to reduce the environmental impact of the construction industry. In the circular economy, our aim is to extend the lifespan of buildings.
Nevertheless, when new structures are built, we can make a significant contribution by choosing raw materials that are not recycled elsewhere. We have invented excellent systems for analyzing materials from recycling and converting them into high-quality solutions using our specially developed additives. We not only carry out these practices here in Switzerland but also select sustainable raw materials worldwide. One example of this is our initiative in China to replace 50% of the sand we use with recycled raw materials by 2028. As part of society's sustainability efforts, more and more applications are being operated electronically. In Europe alone, by 2030, capacities for more than 1,700 gigawatts are being planned. Sikafloor-2350 ESD is a modern floor covering with patented nanotechnology. Its conductive properties prevent the accumulation of electrostatic charge and thus protect people and infrastructure.
The innovation is that the coating system does not require a conductive film, which means less material, fewer work steps, and cost savings for our customers. With this new product, we also have access to projects in the field of battery production, whether for general energy storage or for the automotive industry, as this example shows. As a longstanding supplier to the automotive industry, Sika was on board from the very beginning when the automotive industry developed new concepts for electric vehicles. This created a need for new products. In addition to adhesives that reinforce, bond, and seal, we also developed new properties such as thermal conductivity of SikaBiresin TC-455. This solution is ideal for transferring waste heat from the battery to the cooling plate and thus increasing the efficiency of the battery.
Let me give you a final example of innovation and sustainability, mentioning a project from the automotive sector. Every year, we produce millions, hundreds of millions of parts for our automotive customers. These parts are installed in the body shell of a vehicle and separate the interior from the exterior to optimize the experience. Traditionally, the parts are packaged in recyclable containers during injection molding, as you can see in that picture shown here. But the bulk density is relatively low with a high empty volume. Sika's new parts have now been designed to be ideally stacked and automatically placed out of the container. This means that significantly more parts can be packed, which in turn means savings in transport. This enables us to achieve smooth integration into our customers' supply chains.
This example goes to show that we can further develop our innovations along the entire value chain and make them sustainable. We are excellently prepared to meet the requirements of sustainability with innovative solutions. We've been doing this since our company was founded and will continue to do so in future and with great pleasure. Now, let me hand the floor back to our chairman. Thank you very much for your kind attention.
Vielen Dank, Patricia. Patricia, thank you very much. As you see, innovation and sustainability are very important to Sika. They are part of our strategy of our competitive edge. This brings us back to the agenda item. I will not read out the whole sustainability report. You see how many pages it has. I will come directly to the vote. The Board of Directors proposes that the 2023 sustainability report be approved. Does anybody wish to speak on this topic?
Doesn't seem like there is, but we have a video call coming in from Pauline Lecoursonnois. All fine.
So, Mr. Chairman, members of the board, and fellow shareholders. My name is Pauline Lecoursonnois, and I work for EOS at Federated Hermes. I am speaking today on behalf of 51 institutional investor clients who represent assets of $1 billion in total. As part of the investor initiative on Hazardous Chemicals, we have discussed with Sika representatives the management of risk related to the use of hazardous substances. Due to the material regulatory, litigation, and reputational risk, this is important for investors in companies using or manufacturing these substances. We welcome the increased transparency provided by Sika. We now know the percentage of sales generated by products containing substances of very high concerns and PFAS too. It is also positive that you are working to reduce the use of such substances in your product portfolio.
I have three questions today regarding your commitments and the level of transparency provided to encourage the positive direction of travel that you have taken. First, can you publicly confirm that new products will not contain these substances? Second, in line with best practice, will you be disclosing a report every year on the list of substances that you have managed to phase out? We suggest making a distinction with those substances that remain used but not only as intermediates for industrial purposes. And my third question is, do you have a plan for substances that are not on the REACH Candidate List yet but with hazardous properties that already fulfill the criteria to be placed on it? Thank you.
Thank you for your questions, Pauline. Please allow me to answer in German for the auditorium here.
We are in contact with Pauline.
Just for your information, we have less than 0.5% of our products contain such materials. I can also say that as part of our strategy 2028, we have a so-called sustainability portfolio management methodology. So all new product developments must obtain a positive validation with regards to sustainability but also usefulness to clients. So they have to fulfill certain criteria. And one criteria is the hazard potential. So chemical hazard and exposure. I would like to answer the first and third questions together. Yes, we will continue to work on this goal and make sure that no new products would contain such substances. About the reporting, this is something that we have to reconsider every time when the new report comes out. Each report is 100 pages plus, so we will have to look into this each time.
Pauline, I think the answer was translated to you, so I hope this is okay for you.
I haven't seen the translation, but I will look for it so I can find some. Thank you very much.
Thank you, Pauline. Bye-bye. Are there any further requests to speak? That seems not to be the case. That brings us to the votes on agenda item 5. For the sustainability report, the voting is now open. Time's up.
You have approved the sustainability report by a large majority. Thank you very much. Moving on to item 6, compensation. First, on the consultative vote, the compensation report for 2023. The 2023 compensation report explains the compensation systems and their programs for the Board of Directors and the Group Management , as well as compensation paid to the members of the Board of Directors and the management for the 2023 financial year. The compensation report can be found on pages 174-198 of the annual report. Allow me to take this opportunity to briefly explain the compensation system for the Board of Directors and the Group Management . Compensation of the Board of Directors consists of a basic fee for work on the Board of Directors and additional compensation for work on various board committees.
The basic fee and compensation for committee work is paid in cash and in restricted shares, each of which is paid in half. Restricted shares cannot be traded for three years. The compensation model for Group Managemen t consists of fixed compensation and variable compensation. The fixed compensation consists of the basic salary and fringe benefits. Variable compensation of members of the Group Management is linked to the company's success, the business unit's results, and sustainability targets, and consists of an annual performance bonus and a long-term participation plan. The performance bonus rewards the group's annual financial results compared to the market and the results of the business units and fulfillment of two sustainability targets. The long-term incentive plan honors the company's long-term performance and strengthens alignment with shareholders' interests in the form of entitlements to shares, which are subject to a three-year performance period.
The final number of shares depends on relative shareholder return during the performance period and the return on capital employed (ROCE) achieved. The Board of Directors is convinced that the remuneration model is balanced and well aligned with shareholders' interests. By the way, it's been in place for more than 10 years. The compensation paid to the Board of Directors for the 2023 financial year totaled around CHF 3.1 million. Compensation for the executive committee or the Group Management in 2023 of around CHF 17 million was higher than the previous year, mainly attributable to the outstanding performance in the financial year and the associated higher payments of the annual bonus. Compensation paid out in 2023 is lower than maximum aggregate compensation of CHF 20.5 million approved by the shareholders at the Annual General Meeting in 2022 for the 2023 financial year.
Details of this, as well as the entire compensation report, can be found, as I mentioned, on pages 174-198 of the annual report. This brings us to the board's motion. The board proposes that the 2023 compensation report be approved in a non-binding consultative vote. Anyone requesting the floor on this item? It's not being the case. Let's proceed to the vote. I cannot see anyone. Unfortunately, the interpreters can't hear the comment. Mr. Jopp, please, you have the floor.
Well, Mr. Chairman, ladies and gentlemen.
[Foreign language]
I'm pleased we got this video statement.
I wanted to talk about this under item 1 very briefly.
Now, that is a positive thing about Sika. Now, you're offering the web stream today and the possibility of attending the Annual General Meeting through an online platform, submitting questions orally. Unfortunately, it's not possible to exercise voting rights equally. So let me praise Energiedienst . They carried out a virtual AGM with the possibility of exercising all shareholder rights, presenting the major benefit that I can even submit questions beforehand to speed up proceedings here.
I've been a convinced advocate of this new way of conducting AGMs since last year. So I agree with that and I'm looking forward to this future way of holding AGMs. In conclusion, I have two questions, and I'm really interested in those two questions and the answers. Is it technically possible to announce to us today how many shareholders are currently following the web stream live, observing the AGM, and how many shareholders have signed up to participate in the AGM online? I would like to know about the cost today for this purely physical meeting we're having today. It's not quite cheap, I guess. And what will the broadcast, the webcast, the live stream cost? How much does Sika pay for all this? No. So much on that. Now, I'll talk about item 2 and 6.3 collectively. Mr. Hälg. Well, three minutes. You have three minutes.
Speed up. You've got one minute left. Well, I'll talk about 2 and 6.3 now. Well, I prepared a statement. I'm going to read it off. Mr. Hälg, you know that we're not friends and we'll probably never be friends. For too long, for 15 years, you've been working for Sika. Fortunately, this is my first AGM at Sika and the last one under your chairmanship, under your presence. So I'll talk about 6.2 and 6.3 in the following. Mr. Hälg, you are suggesting to us high amounts for yourself and your colleagues on the board and the eight members of the Group Management . These are horrendous figures. Well, we'll give you one more minute. Please restart the clock. Well, these are horrendous amounts, ladies and gentlemen. You can read them up in the annual report. The monthly salary of CHF 78,000 for Mr.
Hälg and so on and so forth. Not even talking about Mr. Hasler, 10 times as much as a member of the Swiss government. That simply is not possible. Now, on Mrs. Ribar, a member of the Board of Directors , what do you think? In my life, for almost 29 years, I have worked my head off for a company where you are a member of the Board of Directo rs. And at the age of 77, I'm still dreaming to earn in one single year as much as you are earning as members of the Board of Directo rs of Sika. I will certainly say no to these two items on the agenda.
Thank you, Mr. Jopp. There's one question that you asked. There are 2,000 people following the AGM live. As far as the additional cost is concerned for the web stream, the cost is negligible.
Anyone else who requests the floor on this item? If not, we move on with the board's proposal. The board proposes to approve the compensation report for 2023 in a consultative vote. The vote is on now. The vote is closed. We have approved the compensation report at a vast majority. Apparently, not everyone agrees with Mr. Jopp. This brings us on to item 6, to approval of future compensation for the Board of Directors. The Board of Directors proposes that an aggregate amount of CHF 3.4 million be approved for the eight members of the Board of Directors for the period from the 2024 Annual General Meeting to the 2025 Annual General Meeting. Explanations are being shown on the screen behind me. The amount is composed as follows: CHF 1.6 million for fixed compensation, CHF 1.6 million for share-based compensation, and CHF 200,000 for social security contributions.
The compensation structure remains unchanged from the previous compensation period, and the aggregate amount proposed has remained the same as in the previous year. Let's move on to the board's proposal. The Board of Directors proposes approval of the aggregate amount of compensation for the Board of Directors consisting of eight members of a maximum of CHF 3.4 million for a term of office of one year until the end of the next Annual General Meeting or the Annual General Meeting next year. Anyone requesting the floor on this item? Mr. Jopp is back. Okay. There's no one else who wishes to take the floor, so we'll proceed to the vote. It's too late now. Item 6.2, the vote is on now. The vote is closed. You have approved future compensation of the Board of Directors . Thank you very much for your trust.
Moving on with item 6.3, approval of future compensation for the Group Management . Allow me to provide a few additional details by way of explanation. The aggregate amount requested for the 2025 financial year is slightly higher than the aggregate amount approved for the 2024 financial year. Several of the current members of the Group Management took on new roles in October 2023 with regard to the 2028 growth strategy and/or have been promoted to the Group Management in recent years. The aggregate amount requested is expected to include CHF 9 million for fixed compensation, CHF 8.1 million for the performance bonus, which is calculated with a maximum payout of 150%. The actual payout will take place in the year 2026 and will depend on the extent to which the Group Management will have achieved the targets in 2025.
Furthermore, CHF 5.9 million for allocation of rights to Sika shares entitlements to Sika shares under the long-term incentive plan for the 2025 to 2027 performance period based on the fair value of the allocated entitlements at the time of allocation. These rights will be paid out in shares only after the performance period, that is to say in 2028, based on actual target achievement. The proposed aggregate amount for the 2025 financial year of CHF 23 million was calculated for eight members of the Executive Board or the Group Management . The amount also includes a reserve for any potential adjustments. Now, we come to the motion. The Board of Directors proposes approval of the aggregate amount of compensation for the Group Management consisting of eight members of a maximum of CHF 23 million for the 2025 financial year. Anyone requesting the floor on this item?
This not being the case, let's proceed to the vote on item 6.3. The voting time is on now. Time is up. You have approved future compensation for the Group Management at a vast majority, and I would like to thank you for your trust. This brings us to the end of the official part of this AGM of Sika AG, but I see that there are still some speakers who wish to take the podium. Dear Paul, we come to a slightly sad part, but a very important part of this event to pay tribute to you and all you have done in your function as chairman of the board for this company. And I would like to invite, first of all, Monika Ribar up on stage, and anything she will say is true and not exaggerated in any fashion.
Ladies and gentlemen, as Mr. Mösli said, as the longest-serving member of the board, it is my honor to start the first of a few small speeches that we'll hold here. However, I gave a warning to my colleagues in advance. I have sometimes a little bit of problems with the waterworks when things get too emotional. Tears start flowing, so I have my hankies with me already. But it is an emotional moment because it's been 13 years now that I've been working together with Paul in the board of Sika, and we've been through all kinds of situations together, the highs and lows. It was already shown today looking at the outcome of these 12 years. Then I think the figures speak a clear language. But I would like to repeat a few. The share price has risen from CHF 32 to CHF 273.
Market value has almost increased tenfold. We have 80 subsidiaries.
We used to have 80 subsidiaries. Now it's 103. We have almost twice as many employees as previously, 33,000. Sales have increased by 133%, EBIT and net profit by 200% or more. These are very impressive figures, and they prove that Sika, under the leadership of Paul, showed a very impressive development. Paul, however, is not just financial and sales, one who keeps an eye on the financials. Innovation was always a central topic for Sika. Sika lives by its innovation, and I think Patricia could show that very nicely in her presentation and showing that sustainability, durability are very important in the company today and also that it's been always broadly supported by the board under the leadership of Paul. So we have seen the figures for 2023, but we also saw that 1,000 new patents were applied for and 50 acquisitions.
Parex, you might remember, MBCC, that was a huge change, of course, but it took three CEOs, and we have one single member left of our original Group Management . So it shows you what tenacity Paul has and that he has set himself very clear goals that he was striving to realize together with the teams and with the support of the teams. I could continue for a long time about the corona period, about management changes. I didn't always arrive at the ideal point, changes in the market, but you'll surely agree with me that the most profound effect we had was this drawn-out takeover battle with and against the founding family and Saint-Gobain. I remember very well the 6th of December when Paul, Daniel Sauter, and myself were in Zurich and for the first time met the CEO of Saint-Gobain at the time, Mr. de Chalendar.
You heard a lot about culture today. That was a very different culture, let me tell you. On Sunday, the 7th of December, we met in Baar, and the whole Group Management was there. This is where we fully understood the full implications of this proposed deal. This is the day when we analyzed, we discussed, we argued because that's also part of it. But in the end, we took a decision, and Paul Hälg and Jan Jenisch stood in front of the media the next day and said, "We are not for sale." In the time leading up to this AGM, I found a letter that Paul wrote to Mr. de Chalendar on the 7th of December, and I was really amazed how the topics that always stayed with us after that are already completely summarized in this letter.
We felt betrayed by the family, ourselves, but also the employees of Sika worldwide. But we also were of the opinion that you as shareholders would not profit from this deal. We're looking at the potential end of Sika as we knew it. And there was one thing we were 100% sure of, and I think everything you've seen here today proves that. Sika can create more stakeholder value for clients, for customers, for the employees, for the management, for all involved parties than as part of some large conglomerate. The company has shown excellent development. Paul said it was very important for us, and this was not something you can take for granted. I've seen other developments, especially in situations like this. For all of us, but especially the independent members of the board, it was not an easy time. We were attacked also sometimes in our private lives.
There were major media campaigns going on. We were facing lawsuits, etc., etc. During this time, Paul was always the rock I could rely on all around us. There was a storm going on. Other ships sank, but he stayed his course, and he took us along with him. I remember very well that nine-hour Annual General Meeting , what stoicism he showed. I don't know what he felt like inside, but here he just showed an absolute stoicism. Also, board meetings where three members from the opposite camp would start long legal declarations. All of this he just went through because giving up was not an option for him, ladies and gentlemen. This is what, once again today, we want to thank you for.
Darf ich Herrn Rechsteiner von Ethos bitten? Can I ask Mr. Rechsteiner from Ethos to join us on the podium?
Sehr geehrter Herr Präsident, dear chairman, members of the Board of Directors , dear shareholders, dear Paul Hälg, my name is Rudolf Rechsteiner. I'm the president of the Ethos Foundation. At this Annual General Meeting , I'm talking to look back and to say thank you to you. On December 12th, 2013, the grandchild of the founder of this company, Mrs. Franziska Burkard-Schenker, died. The family shares were inherited to her five children. On the 5th of December, 2014, and Mrs. Ribar said so, it was announced that the heirs, following 104 years of family ownership, wanted to sell their shares to the Saint-Gobain company at a takeover price of no less than CHF 2.75 billion, which was 80% above the market value of the remaining shares. The Sika share, as a result, and within weeks, lost 30% of its value.
Among the minority shareholders, there were numerous Swiss pension funds, members of Ethos. At the time, they suffered book losses of more than CHF 2 billion unless Saint-Gobain would be forced to submit an equivalent takeover bid to all shareholders. One of the flagships of the Swiss industry risked to end up in the hands of its largest French competitor. By coincidence, you, Mr. Hälg, Chairman of the Board of Directors, in the autumn of 2014, gave a presentation at an Ethos meeting. Our members knew you. This inspired Ethos and made it easier for Ethos within next-to-no time to round up support of 11 heavyweight pension funds. Together, we wanted to work against the factor expropriation of independent shareholders. The opting-out regulation at the time would have allowed Saint-Gobain, the competitor, to control 52% of the votes with only 16% of the capital.
Now, Ethos battled against that and supported re-election of the independent members of the Board of Directors . That is you, Mr. Hälg, but also Mrs. Monika Ribar, Mr. Daniel Sauter, Frits van Dijk, Christoph Tobler, and Ulrich Suter. Now, of all these persons, Monika Ribar is still here at this Annual General Meeting , as well as Daniel Sauter, and of course you, Mr. Hälg. The motion from Ethos was supported by 97% of the shares not related to the family. In this conflict, you, as the chairman of the board and a member of the board, took an extraordinarily courageous step. At the beginning of the Annual General Meeting at the time, you announced that the majority of the members of the Board of Directors , based on the Articles of Association, decided to restrict the voting rights of the Burkard family to 25%.
Thus, you enabled all the shareholders present here, the minority shareholders, to be successful. The stability of the company was secured. Otherwise, it would have been the end of Sika as an independent company. The heirs of the Burkard family took legal action, but on the 28th of October, 2016, the Cantonal Court of Zug , in its second instance, supported your position, and Ethos was a non-intervening secondary party. The rest is history. On 11th May, 2018, there was a friendly agreement between the heirs of the founding family and Saint-Gobain. The president of Ethos, Rudolf Rechsteiner, at the time, was pleased, together with you, to work on this solution that secured equal treatment of all shareholders through restriction of transferability.
However, Saint-Gobain took profit in the billions from it, but in the meantime, we have found that the development of the share price has been more than worth this price. The quintessence is Sika remained independent. Saint-Gobain, in 2020, sold their remaining stake and is no longer a shareholder of Sika's. This turned out to be absolutely crucial. Within 10 years, the company developed from sales of CHF 5.6 billion to CHF 11.2 billion, more than doubled its sales, and the number of employees rose from 16,900 to 33,500, 2,000 of which in Switzerland. The share price rose from CHF 48 to CHF 270, the Sika share being one of the most successful securities traded on the Swiss Exchange.
I would like to thank you, Mr. Hälg, Mr. Chairman, and all the other persons involved in the Board of Directors for the extraordinary courage you showed at the time and the persistence in defending the interests of Sika and the independent shareholders. I would like to thank you on behalf of all the pension funds benefiting from the development of the share price with more than 1 million insured persons who are a member of Ethos and who have been able to provide their support along the way. I wish you all the best, and same for the company, and I would like to thank you for your kind attention.
Thank you, Mr. Rechsteiner. I remember very well the presentation to the pension funds before all this started here. That was about a month before. During this presentation, I praised family-controlled businesses as a good business model.
I'm sorry if I misled any of you about how was I to know. I also really appreciate that Ethos was one of the first shareholder organizations that officially gave their support. Based on that, various other, a little bit larger organizations joined us as well. So that during the first AGM, we had the same amount of capital behind us as the family, not as many votes, but the same amount of capital. Ethos was surely a very important factor in this. So my thanks goes back to you.
Lieber Paul Hälg, [Foreign language] J. Stern & Co., [Foreign language] I would like to thank you again. But let me start with a question to all of you. What is the difference between William Tell and Paul Hälg? So William Tell represents the myth and the reality of Swiss independence. It wasn't too far from here that the famous Apple Shot took place that encouraged the Swiss Confederation to rebel against the takeover by the House of Habsburg. It took a while, but eventually, this small Swiss alliance was able, against all obstacles, to set the basis for a free, peaceful, and prosperous country. Paul Hälg, our Wilhelm Tell of Baar, which one is it?
Thanks, Mr. Jopp. Also led a rebellion against the takeover, this time against the French and their allies. It was probably the longest takeover battle in Swiss history, at least corporate history, that is. In the beginning, it looked quite hopeless.
But Paul Hälg and the other independent members of the board, and I'd like to name them again, Monika Ribar, Daniel Sauter, Ulrich Suter, Christoph Tobler, and Frits van Dijk, stood up to their responsibility to act in the interest of all shareholders against this obvious abuse of the extended voting rights and made use of the Articles of Association to protect the voting rights of everyone. So the voting rights of the Burkard heirs were treated equally as all others, and the takeover was thwarted. So this is something that Paul Hälg and the other members of the board pulled through for almost four years under great risk, personal risk also, without payment and without discharge from the AGM, right up into the courts. In the beginning, not all media understood this.
The Handelszeitung in 2016 was writing about a "unique Sika Spirit" and said that the damage claims cost CHF 1 million per day. The members of the board were personally brought to court. In the end, the verdict was clear. Paul Hälg and the board were in the right, and the voting rights of the would-be buyers stayed limited right to the end. For us as shareholders, it was very impressive to see how strongly the board, the Group Management , management, and employees at Sika stood together. They were always there at the meetings. I will never forget the second Annual General Meeting that I took place in, when the entire management of Sika came from all different countries here to Baar to stand on the stage and say, "Sika stays independent." That is the Sika Spirit.
What is crucial here is also that the words were followed up by deeds. While Paul Hälg was fighting the legal battle together with the board and the management, the management and employees made sure that the company continued to develop. We are convinced, as longtime investors in Sika and other companies that are of quality and represent durable and sustainable value, that there can be short-term fluctuations in share prices, but that on the long term, they are dependent on the operative results, sales, the earnings, and the cash flow of a company. Sika is a world leader in sealing, bonding, and various other processes for supporting structures. It's a leader in using technology for sustainability. Many of the challenges, like climate change, energy reform, or the reduction of CO2 emissions and net zero, are an opportunity to use these technologies for the common good.
Warren Buffett once said, "The price is what you pay, the value is what you get." The value of a Sika share has doubled since the time of the takeover bid by Saint-Gobain, and that also made the settlement possible. There's been another doubling, and we are still optimistic that there's a competitive advantage of Sika, and that is the quality and the continuity of management and employees. This will continue to deliver further success. Another important contribution was made by the independent shareholders of Sika. I especially want to name Cascade and their representatives, Mike Larson and Justin Howell, who is now in the board. They kept supporting the board in the interest of all shareholders and were able to preserve the independence of the company. We, as long-term shareholders, were also part of this and gave our support.
This makes it especially pleasing with me to be here today. Congratulations to Thierry Vanlancker for his election to Chairman of the Board of Directors. With the handing over from Paul Hälg to Thierry Vanlancker, we also see the end of a major chapter in the history of Sika and also in the history of corporate governance in Switzerland and worldwide. The independence of Sika is the proof that boards, management, employees, and long-term shareholders can work together to create sustainability, growth, jobs, and value. Sika was founded more than 100 years ago. Dear Paul Hälg, without your sense of responsibility, your courage, and the tenacity that you showed, Sika would no longer be independent today, and we couldn't look forward to another 100 years of value creation. Well, it might be a bit of a long shot, but you really hit the jackpot here.
After 15 years as a board member and 12 as chairman, you leave a legacy behind that you can be proud of. The Sika Spirit is alive, and we thank you all for it.
Thank you very much, Mr. Rossbach, for these friendly words. Regarding William Tell, I'm not William Tell, but I drive his registration plate, Uri number 1. Ann Steele, the next person to. Today is a very important day. As one of Europe's leading industrialists, as well as having a doctorate in chemistry, which of course gives you that specific know-how in adhesive technology, no wonder you were chosen to join the Sika board in 2009 and become their chairman three years later. I think, ladies and gentlemen, it's called right place, right person, right time. But today, you managed to fit far more into your working day than most people.
We also recognize your numerous wider achievements in your work. 13 years as CEO of Datwyler, and you're also a longstanding foundation council member of Swissc ontact. That's an organization that promotes economic, social, and ecological development by supporting people from Nepal to Cambodia, from Bolivia to Bangladesh, in activities as wide-ranging as agricultural development to digital literacy. This experience has provided you with the right knowledge to oversee and drive Sika's performance in the area of ESG, as we've seen from Patricia, to the very highest of standards. You're also on the executive committee of the Foundation Board of Rega, the Swiss Air-Rescue, and that helps many people in distress. In fact, last year, they undertook over 21,000 missions by helicopter and ambulance jets. By my calculation, that's an average of 57 jobs every 24 hours.
Ladies and gentlemen, the common thread here is that Paul has used his 30 years of financial and management ability to help people businesses. No wonder you're such a well-recognized leader. Now, at Sika, shareholders, we've watched your magic touch as chairman in a very fast-growing company, and we've recognized your many attributes. As a good listener, you're fair. You're determined to succeed even when the going got tough. You're respectful of all the staff, their families, the shareholders, and you're very open to listen to the opinions of others, as we've seen today. And you've ensured Sika always found the best solutions, and as chairman, you've excelled as a constant strength and guide through many years of growth. Now, at Columbia Threadneedle, where I'm a portfolio manager, we look after nearly $1.2 trillion, and we've been a Sika shareholder for well over 25 years. We've watched the expansion.
And really, to be able to enjoy skyscrapers, airports, stations, tunnels, ports in 103 countries is pretty sparkling. You've joined the SMI, and the share price in our portfolios has risen over 1,000%. Paul, as someone who doesn't take easily to compliments, you have quite simply been a constant strength and guide throughout good times and bad. And we know that during the Saint-Gobain merger battle, you were personally threatened. But we offer you and Mrs. Hälg our humble and hearty thanks for all that you've sustained for the Sika family so unstintingly. Ladies and gentlemen, we all owe Paul a debt of gratitude far greater than he would ever claim, or indeed, we shall ever know. So thank you, Paul, for guiding Sika along a path of continued independence, expansion, and vibrant growth.
We're going to miss your wise counsel, but we send both you and your family every good wish for the future. Thank you.
Thank you, Anne, for your kind and touching words. The leader is never alone. He's always the team. And I want also to forward the thanks again to the team. It really was a great cooperation with the board, with the management. Everybody had a task and everybody contributed to the solution during that time, and also especially then afterwards when we went for the growth path and accelerated the journey. So thanks to everybody. Lieber Paul. Dear Paul. [Foreign language] I think I can only agree wholeheartedly with what the previous speaker said. [Foreign language] They have already shown what the great things you have achieved.
One little aspect I would still like to highlight in a few small presents: Sika depends on its employees, the Sika Spirit. You know it. You helped shape it and will continue to do so, I'm sure, after your time here. A first souvenir that we'd like to give you from our senior managers. It was already mentioned a few times. This legendary general meeting that we already talked about. All senior managers were gathered here. They were right there. The slogan was, "We are not for sale," in support of your strategy to defend Sika. It was the senior managers that followed your call for action. In the past three weeks, we had our worldwide regional senior meetings in Mexico, China, and last week in Germany.
And we took the opportunity to take this poster with us and have everybody sign it and give their thanks to you. So there are over 400 senior managers who remember this decisive moment very well. So this is our souvenir to you from the senior managers. A great example of your leadership. I think if you look there, you will see many, many familiar names. Charles Kidd as a spokesman at the time. And all of them were fully in support. So this is the gift from them to you, the first gift. [Foreign language] Meetings organisiert sind. I know how these meetings are organized. This poster has a long journey, has had a long journey. That's for sure. Thank you so much. Number 2. [Foreign language]
Something that I might imagine you'll take a look at in the future every once in a while. It's a memory book, individual experiences of employees, senior managers, management members, board members, employees, past and present, that you really had a big impact on. And there was a huge response when we started asking around about this and asked people if they would like to take part. So I think it's a very personal and very individually designed present. You'll see many pictures from your travels, from your events, from your meetings, many happy faces. And again, personal souvenir from all employees to you. And finally, and probably the most sustainable, if I may call it like that, that we can give along to you. You know our performance-driven culture. We are very happy that every year we can give a special thank you to the strongest performing organization.
There are many elements involved in this: achieving targets, financial results, non-financial results, fostering employees. It's not just about what you do, but how you do it. Of course, you know in the past that always was related to the family. We have neutralized it, so to speak, in the past years. But yesterday or recently in the meetings, there was a clear opinion that we will now rename it the Paul Hälg Trophy. Something that we kind of discussed already early on during the independence struggle, that the Board of Directors fights for independence any way they can.
We from the business side support them and demonstrate by our ongoing performance that we don't need anybody, that we can do this by ourselves, and we don't need the support from France or any other, and that we deserve this independence by virtue of our hard work. The Paul Hälg Trophy is also a call to action to say to everybody, performance and innovation are like sustainability. So I think having your name on this award is a nice incentive for the future also to inspire people and make sure that the company remains independent. Thank you so much, Paul.
Well, this is, of course, a very special honor. This award is very significant in the company.
Now that this award is now bearing my name, and I hope for more than just a few years, that's really one of the best possible farewell gifts I would never have dreamed of. Thank you very much to everyone who's been involved in this decision. Well, I have to get back to working, bringing this meeting to a close, I guess. So this was the last Annual General Meeting chaired by myself. I would like to truly thank you very much from the bottom of my heart for your loyalty to Sika, for your trust in the Board of Directors and the Group Management and the extended management. I wish Sika a lot of success in the future. And to you as shareholders, of course, I hope you're going to be pleased with your investment in Sika.
The next Annual General Meeting , the 57th one, is going to take place on March 25, 2025, at Kongresshaus Zürich. As Waldmannhalle here, this auditorium here has been booked for a number of years for a sports event. Unfortunately, it will not be available for us. As you leave, I would like to ask you to hand back your voting devices and headsets to either the Sika assistants or leave them on your chairs. Following the Annual General Meeting on either side of the hall and at the lower end, there will be refreshments, and I think some barbecue. I invite you to stay with us and to toast to each other. Later on, you will have an opportunity to take the shuttle bus back to the train station on this. Let me close the Annual General Meeting .
I would like to thank you for having come here in such a high number. Wish you a safe trip home. Thank you very much.