MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

RECENT DEVELOPMENTS AND GROWTH OUTLOOK

Objectives

5.3 _ Objectives Section 5.3 contains information regarding The Group objectives for fiscalbyear 2017. The Company warns potential investors that these forward-looking statements are dependent on circumstances and events that are expected to occur in the future. These statements do not reflect historical data and should not be interpreted as guarantees that the facts and data mentioned will occur or that the targets will be achieved. Because of their uncertain nature, these targets may not be achieved, and the assumptions on which they are based may be found to be erroneous. Investors are encouraged to take into consideration the risks described in Sectionb3.4.The aforementioned The internet (fixed-line and mobile) customer base in Morocco was up 30%byear-on-year with an internet penetration rate of 63.67%. The growth potential of this market still exists, supported by the penetration of the smartphones that are revolutionizing usages. Changes in use also include the increasing use of Voice over IP applications, i.e., technologies that enable the free routing of voice communications over the internet, which have been deregulated in Morocco since Novemberb2016. Even though it encourages Data use, this alternative means of communication replaces traditional Voice communications and has a marked impact on incoming international traffic in particular. Morocco should benefit particularly from: – a favorable economic environment in 2018: GDP is expected to grow 3.2% and the budget deficit to be reduced to 3.5% of GDP (source: Ministry of Finance); the International Monetary Fund estimates growth of about 3.1%; – a population that is growing at an annual rate of 1.25%andwhich is increasingly urban: 60.3% of the population lives in urban centers (source: latest census of the High Commission for Planning, 2014); – an industrial acceleration plan and investment in renewable energies; – the increasing presence of major Moroccan groups in Africa; – amajor long-termprogram to combat poverty and social exclusion (National Initiative for Human Development, or INDH, launched in 2005). These are all factors that herald more intensive usage of new information technologies. Access to Internet services will continued to be carried by the mobile networks, but also by fiber optic fixed- line infrastructures, the only technologies capable of absorbing the constantly growing volumes of data exchanged.

Thanks to the accelerated deployment of its networks (3G et 4G+ for mobile, ADSL and optical fiber for Fixed-line), Maroc Telecom plans to take advantage of the popularity of the internet and support the increase in usages that will continue in the comingbyears. Changes in internet usages will create significant pressures on current infrastructure capacities. As a result, these new needs will require investments. Given the magnitude of the investments required, the trend toward new mobile technologies must include monetization of data services, the primary vector for maintaining positive growth in the sector. The new regulatory framework established by the regulator in 2016 ended the MINDLESS price cuts made by mobile operators and the destruction of value, which ultimately led to the birth of a newmarket model centered on innovation-based competition, adapted offers and the quality of the networks and services. Since Marchb2017, the Moroccan regulator has also reinstated an asymmetry of 20% on Mobile termination rates in favor of the competitors. Following the integration of the newMoov subsidiaries, the Group’s revenue from the International segment was close to 45% at end- 2017. The plans for upgrades, support and massive investment in subsidiaries will continue and reduce the operator’s exposure to its domestic market. In sub-Saharan Africa, where Maroc Telecom’s principal subsidiaries operate, the telecommunications market offers very high growth potential because of: – continued rapid growth, estimated at 5.7% in 2018 compared to 5.5% in 2017 (source: International Monetary Fund); – the sharp increase in public and private investment; and – a penetration rate projected to increase significantly in the comingbyears.

5

risk factors could have an impact on the Company’s operations and its ability to achieve its targets (see also Sectionb5.2 “Market Outlook”). On the basis of recent business trends inMorocco and internationally, The Group outlook for 2018, on a like-for-like basis, is as follows: – unchanged revenues; – unchanged EBITDA; – CAPEX of around 23% of revenue (excluding frequencies and licenses).

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MAROC TELECOM ____ 2017 Registration Document