MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

FINANCIAL REPORT

Overview

4.2.2.1.3 International activities FINANCIAL INDICATORS

Changes on a like-for-like basis (a)

IFRS (in MAD million)

2017

2016

Changes +2.7% +3.3% +7.6% +1.9pt +10.1% +1.6pt -10.7% +1.4pt +3.9% +23.5%

REVENUES

15,733 14,274 6,357 40.4% 3,599 22.9% 3,643 22.2% 3,700 5,767 156

15,326 13,815 5,905 38.5% 3,268 21.3% 4,077 20.8% 3,563 4,670 888

+2.4% +3.1% +7.6% +1.9pt +10.2%

o/w Mobile Services

EBITDA

Margin (%)

Adjusted EBITA

Margin (%)

+1.6pt

CAPEX

o/w licenses and frequencies

4

CAPEX/Rev. (excluding licenses and frequencies)

Adjusted CFFO

Net Debt

Net debt/EBITDA

0.9

0.8

(a) At a constant exchange rate for the MAD, Ouguiya and CFA franc.

At 2017-end, the Group’s International operations posted revenues of MAD 15,733 million, up 2.7% (+2.4% at constant exchange rates) driven by the 11.9% revenue increase (at constant exchange rates) of the new subsidiaries, offsetting the impacts of the drop in call termination rates, of the erosion of the international incoming traffic and of the deactivation of unidentified customers. At 2017-end, earnings from operations before depreciation and amortization (EBITDA) amounted to MAD 6,357 million, up 7.6% at constant exchange rates.The EBITDAmargin increased by 1.9 points

to 40.4%, driven by the call termination rates and operating costs (-1.0% at constant exchange rates) decreases. Adjusted earnings from operations (EBITA) were MAD 3,599 million, up 10.2% at constant exchange rates mainly due to the increase in EBITDA. The EBITAmargin rose by 1.6 points (at constant exchange rates) to 22.9%. Adjusted cash flow (CFFO) from international activities was up 3.9% toMAD 3,700million, despite the acceleration in capital expenditure which reached more than 22% of revenues.

113

MAROC TELECOM ____ 2017 Registration Document