MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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FINANCIAL REPORT Consolidated financial statements at 31 December 2015, 2016 and 2017

NOTE 11 — CURRENT FINANCIAL ASSETS

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Term deposit > 90bdays Escrow account Marketable securities NET TOTAL

119

156

126

119

156

126

Maroc Telecom commissioned RothschildMartinMaurel to execute a liquidity contract on the Paris stock exchange and a share price adjustment agreement on the Casablanca stock exchange to maintain the liquidity of its stock.

NOTE 12 — CASH AND CASH EQUIVALENTS

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Cash

1,923

2,338

2,784

Cash equivalents

87

100

298

CASH AND CASH EQUIVALENTS

2,010

2,438

3,082

Cash and cash equivalents fell by MAD 428 million, mainly due to Morocco.

CHANGE IN CASH AND CASH EQUIVALENTS

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Net cash from operating activities Net cash used in investing activities Net cash used in financing activities Foreign-currency translation adjustments CHANGE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period CHANGE IN CASH AND CASH EQUIVALENTS

14,911 -8,061 -7,266

13,483 -6,094 -7,979

14,569 -8,828 -4,008 1,823 1,259 3,082 1,823 91

-13

-53

-428

-644

2,438 2,010

3,082 2,438

-428

-644

Cash and cash equivalents fell by MAD 428million in 2017.This drop reflects the decline in cash flow from investing activities in 2017; in particular the acquisitions of tangible and intangible assets partially offset by the 10.6% increase in cash flow from operating activities and improved cash flow from financing activities.

This increase of MAD 1,334 million is mainly due to the change of working capital that essentially comes from Morocco.

NET CASH USED IN INVESTING ACTIVITIES Net cash flow from investing activities amounted to an outflow of MADb-8,061bmillion, a cash flow decrease of MADb1,966bmillion versus 2016. This decline was mainly due to the mismatch during the period between reimbursements to equipment suppliers and new asset acquisitions, primarily of network equipment.

NET CASH FROM OPERATING ACTIVITIES In 2017, the net cash flow fromoperating activities amounted toMAD 14,911 million, an increase of MAD 1,428 million compared to 2016.

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MAROC TELECOM ____ 2017 Registration Document