Telefónica's General Meeting of Shareholders today approved all the proposed resolutions presented by the company's Board of Directors, notably the distribution of a dividend of €0.75 per share for 2014. The first tranche (€0.35) will be distributed in the fourth quarter of the year in the form of a scrip dividend, which will be completed in the second quarter of 2015 with the payment of €0.40 per share in cash. Telefónica’s Executive Chairman, César Alierta, assessed the company’s performance in 2013 in his annual report. He stressed that “we have made considerable progress in the transformation process of the company, achieving the objectives we had been set for the year: the return to organic revenue growth, a progressive stabilisation of the margins and the improvement of our financial flexibility”. He also said that the company had set the objective of offering an attractive remuneration policy to shareholders and he indicated that “the remuneration announced for 2014 represents profitability of 6.2%([i]), which positions Telefónica as the company with the highest profitability from expected dividends for the current financial year among the largest companies in the telecommunications sector by stock market capitalisation”.
Along the same lines, and with regard to the past financial year, it is worth to highlight the strong increase in the value of Telefónica shares (16.1%), which, in combination with the company's dividend policy, meant total profitability for shareholders of 19.6% in 2013.
In his annual report, the Executive Chairman of Telefónica described the financial management of the Company as “excellent”, thanks to the improvement in financial flexibility and the strengthening of the balance sheet. The reduction in net debt in 2013 positioned Telefonica, for the second consecutive financial year, as the European telecommunications company reporting the greatest reduction in debt. The lower indebtedness, explained César Alierta, “is the result of the solid cash generation and the efficient management of our assets, which has enabled us to focus on key markets and reinforce our growth profile”. With a reduction of 5,878 million euros, Telefónica comfortably met its target of ending 2013 with net debt of less than 47 billion euros; at present, with the data available at the end of March 2014, the debt stands at around 42,724 million euros. 
Improvement of competitive positioning
In the course of financial year 2013, Telefónica consolidated its commitment to a sustainable long-term growth model. The company improved its competitive positioning in the highest value segments and renewed its commercial offering, with the launch of simple, innovative tariffs, and reinforced its digital capacities. At the same time, Telefónica has made considerable progress in the transformation of its networks and systems thanks to a major investment push aimed at the future growth of the company, which was translated into a total volume of 9.3 billion euros in 2013.
Precisely with regard to the future, Mr. Alierta explained that the profound digital revolution currently taking place in the world is merely the tip of the iceberg of the unprecedented change which must take place in society as we know it. He reminded that “Telefónica was a pioneer in its move towards the digital world in 2011, and now, building on the solid foundations laid in recent years, we are speeding up that transformation with a new operational structure which means incorporating the digital offering into the focus of all our commercial activity”.
Adapting public policies to this new digital reality is one challenge which lies ahead. According to the Executive Chairman of Telefónica, “it is vital for regulation to adapt in order to reflect the reality of the new digital economy and the new policies must be flexible and guarantee a level playing field for all the agents in the digital ecosystem”. He also highlighted the importance of advancing in the harmonisation of European regulations, convinced as he is that “Europe can and should lead the next wave of innovation and regain technological leadership”.
Approval of resolutions
In addition to the aforementioned agreement on the payment of dividends, Telefónica's General Meeting of Shareholders today gave the green light to all the proposed resolutions. Therefore, in addition of approving the annual accounts corresponding to 2013, shareholders renewed the power of the company's Board of Directors to issue debentures, bonds, promissory notes and other securities, and also to acquire treasury shares, directly or through companies of the group.
Likewise, a long-term incentive plan was also approved, aimed at the group's executives, who will receive Telefónica SA shares, as well as a global plan for the incentivised purchase of Telefónica shares for all the company's employees.

 [i] Calculated at the share price at the close of the month of April (12.07 euros at 30/04/2014)