MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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FINANCIAL REPORT Statutory financial statements

– Main terms: In 2009, Sotelma and IAM concluded an agreement under which IAMprovides technical assistance and services.These services are carried out mostly by expatriate employees. – Products or services delivered or provided: In 2017, IAMprovided Sotelma with technical assistance services. On Decemberb31, 2017, the amount booked in revenues by IAM amounts to MAD 17.3bmillion (excluding VAT). The balance of the receivable hold by IAM at Decemberb31, 2017 on Sotelma totalized MAD 6million dirhams. – Amounts received: IAM received18.2bmillion dirhams in 2017. 2.6. Agreement with ONATEL – Parties concerned: — IAM is the major shareholder of Onatel. – Contract form: Written agreement. – Nature and purpose of the agreement: Supply of services and technical assistance. – Main terms: In September 2007, Onatel and IAM concluded an agreement under which IAM provides technical assistance and services. These services are carried out mostly by expatriate employees. – Products or services delivered or provided: During fiscal year 2017, IAM provided services to Onatel in the following areas: — Strategy and development. — Organization. — Information systems. — Regulatory matters. At Decemberb 31, 2017, revenues booked by IAM amount to 9.2bmillion dirhams (excluding VAT). At Decemberb31, 2017, the Onatel receivable on IAM’s books totalized 2 million dirhams. – Amounts received: IAM receivedMAD 8.8million dirhams in 2017. 2.7. Agreement with Gabon Telecom – Parties concerned: — Itissalat Al Maghrib (IAM) is the major shareholder of Gabon Telecom (GT). — M. Brahim BOUDAOUD is the common member of the Management Board of IAM and Gabon Telecom. – Form of the agreement: Written agreement. – Nature and purpose of the agreement: Service commitment agreement. – Main terms: On Novemberb22 nd , 2016, Gabon Telecom (which absorbed the subsidiary Atlantique Telecom Gabon on Juneb29, 2016 with effect from January, 1 st , 2016) and Itissalat Al Maghrib (IAM) concluded an agreement under which IAM provides technical assistance and services, with retroactive effect starting from January, 1 st , 2013. These services are carried out mostly by expatriate employees or by resort to a third party, after Gabon Telecom agreement. – Products or services delivered or provided: In 2017, Itissalat Al Maghrib (IAM) provided services to Gabon Telecom(GT) in the following areas: — Strategy and Organization. — Networks. — Marketing. — Finance. — Purchasing. — Human resources.

— Development. — Marketing. — Finance. — Purchasing. — Quality. — Human resources. — Information systems. — Interconnection and Regulatory commitments of GT.

— International traffic and roaming. — Taxation, legal and governance. — Network technologies and operations. — Wholesale services, Roaming and traffic routing services. Under all of these services’ provisions, IAM recorded in its accounts: – Service commitment agreement: During 2017, the revenues booked by Itissalat Al Maghrib (IAM) represented a total amount (excluding VAT) of 14.2bmillion dirhams. The receivable balance hold by Itissalat Al Maghrib (IAM) as of December, 31 st , 2017 amounts to 24.3bmillion dirhams. – Management fees: – Technical assistance services: During 2017, the revenues booked by Itissalat Al Maghrib (IAM) represented a total amount (excluding VAT) of 96.9bmillion dirhams. These revenues rate for the fiscal years 2013, 2014 and 2015 is 2.5%, while the rate of the fiscal years 2016 and 2017 is 5%. – Supply of services: Itissalat Al Maghrib (IAM) booked within its revenues a fee for the supply of services provided to its subsidiary amounting to (excluding VAT) 17.4bmillion dirhams. The receivable balance hold by Itissalat Al Maghrib (IAM) as of Decemberb31 st , 2017 amounts to 328bmillion dirhams. – Amounts received: In 2017, IAM received a total amount of 30.7bmillion dirhams. – Loan: The remaining balance related to the acquisition of Moov subsidiaries amount to 1bmillion euros as at Decemberb31 st , 2017 (equivalent of 10.8bmillion dirhams). IAMbooked a revenue related to interests and penalties for respectively 0.3bmillion euros and 0.6bmillion euros in 2017 (equivalent to 3.28 and 6.56bmillion dirhams). – Amount paid: Itissalat Al Maghrib received in 2017, as loan reimbursement, an amount of 16.8bmillion euros (equivalent to 183 million dirhams), 1.8bmillion euros as interest and 2.1bmillion euros as penalties (equivalent to 19.7 and 22.8bmillion dirhams) 2.8. Agreement with Mauritel – Parties concerned: — IAM is the major shareholder of Mauritel — Mr. Hassan RACHAD is the common member of IAM and Mauritel Management Boards. – Agreement form: Written agreement. – Nature and purpose of the agreement: Services and technical assistance. – Main terms: In 2001, Mauritel and IAM concluded an agreement under which IAM provides technical assistance and equipments. – Products or services delivered or provided: IAMprovides Mauritel with telecommunication equipments and technical assistance. Under this agreement, the amount of revenues invoiced by IAM amounts to11.6bmillion dirhams (excl. tax) in 2017. At December 31, 2017, theMauritel receivable on IAM’s books stood at 4.9 million dirhams – Amounts received: IAM received 12.2bmillion dirhams in 2017.

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MAROC TELECOM ____ 2017 Registration Document