MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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KEY FIGURES, GROUP STRATEGY AND RISK FACTORS Risk factors

The Company’s Fixed-line and Mobile telephony business may be affected by the growth of these gateways. Mobile activities are affected by the increasing use of Voice over IP (VoIP) applications, which are defined as technologies that enable voice and video communications over the internet that have been deregulated in Morocco since Novemberb2016. If this phenomenon continues to grow, these alternative technologies could call into question the usefulness of the Company’s infrastructure or business model, which could significantly affect its revenues and profits. POTENTIAL HEALTH RISKS PRESENTED BY NETWORKS, MOBILE PHONES, AND WI-FI TERMINALS In recentbyears, concerns have been expressed internationally about the potential risks to health of electromagnetic waves from mobile phones andmobile transmission sites. To date, Maroc Telecom is not aware of any tangible evidence that proves the existence of risks to human health associated with the use of mobile phones, with the emission of radio frequencies, or with electromagnetic fields. Maroc Telecom conducts campaigns eachbyear to measure the intensity of electromagnetic waves from antennas, the results of which have always proved consistent with international standards. Nevertheless, the perception of these risks by the public could have significant negative effects on the revenues or the financial position of Maroc Telecom, particularly if legal proceedings were instituted or if regulation imposed additional costs for compliance with new standards. THE FRAUDULENT DIVERSION OF TRAFFIC COULD LIMIT THE COMPANY’S REVENUES AND AFFECT ITS RESULTS The Company suffered a fraudulent diversion of traffic. Since then, Maroc Telecom has introduced a plan to fight against this fraud. However, Maroc Telecom cannot predict if new means of fraud will develop, nor the sectors that will possibly be targeted by offenders, nor the impact that any such fraud might have. If Maroc Telecom fails to curb the use of fraud, it could see its traffic decline, and its revenues and results could be affected. THE RISKS INHERENT IN POTENTIAL ACQUISITIONS BY MAROC TELECOM OF TELECOM COMPANIES OR LICENSES COULD HAVE AN IMPACT ON MAROC TELECOM’S BUSINESS ACTIVITIES To broaden its search for new drivers for growth, Maroc Telecom is seeking to achieve external growth by acquiring telecom companies, or by licensing, in other countries. Such transactions necessarily involve risks. If Maroc Telecom were to fail to achieve the results expected from these acquisitions, its business activities and its results could be affected. Maroc Telecom could, in particular: – make acquisitions on financial or operational terms and conditions which prove to be unfavorable;

– have difficulty absorbing the acquired companies, their networks, products or services; – fail to retain the key talent in the acquired companies or to recruit skilled employees as needed; – fail to achieve the expected synergies or economies of scale; – make investments in countries where the political, economic or legal situation poses specific risks, such as civil or military unrest, the lack of real or comprehensive protection of shareholders’ rights, or disagreements with other leading shareholders, including the public authorities, over management of the acquired companies; and – fail to adapt to the specific characteristics of the countries in which the companies may possibly be acquired. THE BUSINESS ACTIVITY OF MAROC TELECOM OUTSIDE MOROCCO COULD GIVE RISE TO ADDITIONAL RISKS In the conduct of its international business, Maroc Telecom may be faced with risks, such as: – fluctuations in exchange rates and the devaluation of certain currencies; – restrictions imposed on the repatriation of capital; – unexpected changes in the regulatory and tax environment; – tax measures that could have negative effects on Maroc Telecom’s WHEREVER MAROC TELECOM OPERATES, IT COULD FAIL TO RETAIN KEY PERSONNEL OR TO HIRE HIGHLY QUALIFIED STAFF, WHICH COULD SIGNIFICANTLY AFFECT THE COMPANY’S BUSINESS ACTIVITIES AND ITS ABILITY TO ADAPT TO ITS ENVIRONMENT The performance of Maroc Telecom depends significantly on skills and services provided by its management team. The management team has a great deal of experience and extensive knowledge of the telecoms industry. The loss of key members of management could have a significant negative impact on the ability of Maroc Telecom to implement its strategy. Maroc Telecom and its performance are also dependent on skilled personnel with the experience and the technical and commercial skills needed to grow its business. Maroc Telecom’s ability to adapt its services, its products and its commercial offers, whether in the field of fixed-line or of mobile telecoms, is highly dependent on its having competent and skilled teams in each market segment. If Maroc Telecomwere not to succeed in retaining its key personnel, whether in its management team or among its commercial and technical staff, its business could be affected and its operating income could diminish substantially. results of operations or on its cash flows; – the local economic and political situation.

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MAROC TELECOM ____ 2017 Registration Document