MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

4

FINANCIAL REPORT Overview

4.2.2.2.3 International activities FINANCIAL INDICATORS Since 26bJanuaryb2015, the acquisition completion date, international activities include the new subsidiaries in Ivory Coast, Benin, Togo, Niger and Central African Republic, as well as Prestige Telecom which provides IT services to those entities.

IFRS (in MAD million)

Changes on a like-for-like basis

2016

2015

Changes +9.4% +9.7% +5.5% -1.4pt +20.7% +2.2pt +0.9%

REVENUES

15,326 13,815 5,905 38.5% 3,565 23.3% 4,077 20.8% 3,847 4,670 888

14,010 12,589 5,599 40.0% 2,954 21.1% 4,043 1,696 16.8% 2,785 4,679

+7.1% +7.2% +5.0% -0.8pt +22.0%

o/w Mobile services

EBITDA

Margin (%)

EBITA

Margin (%)

+2.9pt

CAPEX

o/w licenses & frequencies

CAPEX/Revenues (excl. licenses and frequencies)

+4.0pt 38.1%

CFFO

Net Debt

Net debt/EBITDA

0.8x

0.8x

At December-end 2016, Group international activities reported MAD 15,326 million revenue, up 9.4% (+7.1% on a like-for-like basis) reflecting increasing revenues by new subsidiaries (+14.6%on a like- for-like basis), especially Ivory Coast and Niger, as well as historic subsidiaries (+3.6% at constant change). Earnings from operations before interest and depreciation (EBITDA) at end-2016 amounted to MAD 5,905 million, up 5.5% (+5.0% on a like-for-like basis) despite new taxes and royalties and non- recurring charges. Excluding scope effects (full-year consolidation of new subsidiaries), and non-recurring items, EBITDA margin on international operations would remain stable, with cost optimization programs offsetting new taxes and royalties.

Earnings fromoperations amounted toMAD 3,565million, up 20.7% (+22.0%on a like-for-like basis) reflecting the increase in EBITDA, and the capital gain realized from the sale of a real estate asset (MAD 297 million). The EBITAmargin was 23.3%, up 2.2 points (+2.9 points on a like-for-like basis). Cash flow from international operations was up 38.1% compared to 2015, driven by EBITDA growth, the sale of real estate, and the positive comparative effect from licenses payment in 2015 (in Mauritania, Niger, Gabon, and Côte d’Ivoire) amounting to MAD 1,787 million. Capital expenditure in networks increased to 20.8% of revenues (compared to 16.8% in 2015) to support business growth particularly in Fixed-line and Mobile data, and the gain in market share.

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MAROC TELECOM ____ 2017 Registration Document