MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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DESCRIPTION OF THE GROUP, BUSINESS ACTIVITIES, LEGAL AND ARBITRATION PROCEEDINGS Description of the Group

CSR audit of commercial partners Since 2010,“sustainable development” clauses have been included in all supplier agreements.These clauses cover respect for fundamental human rights and labor rights as well as commitments relating to environmental protection and anti-corruption measures. Since 2012, Maroc Telecom’s Internal Audit Department has performed annual supplier audits to verify compliance with these clauses. Since 2014, a charter of these same principles has been deployed with Maroc Telecom distributors and “Full Image” retailers. Since 2015, it has included the distributors and “Full Image” retailers within the scope of the audits. At end 2017, 60 audits had been conducted with 55 partners. Non-financial reporting Maroc Telecom introduced non-financial reporting in 2009. Since then, the Company has compiled non-financial data eachbyear on Maroc Telecom runs its networks and retail, support and administrative operations frommore than 8,090 sites (buildings, land) throughout Morocco, of which approximately 85% are leased and 15% are owned by the Group. These facilities are primarily on sites historically owned by the Kingdom of Morocco which were legally transferred to Maroc Telecom at the time of its incorporation in 1998 in accordance with Law 24-96 against a contribution in kind. Maroc Telecom is in the process of obtaining formal legal title to these sites. The registration rates for the sites on which Maroc Telecom holds property rights are 97.5% composed of the following: – 84.87% of the sites have a deed in the name of Maroc Telecom; – 12.63%of the sites are being requisitioned from land conservancies. Requisition is a claim to a property right. It is issued by the land registrar once the application for land registration has been made. It is transformed into a property title after completion of the regulatory administrative formalities: publication of the application for land requisition, boundary marking, land survey, notification of closed requisition and registration. This procedure is subject to statutory time limits; – 2.5% of the sites are thus pending and consist of 15 premises for which legal title is in the works (three of these are at an advanced stage of registration) and 12 premises for which legal disputes are underway. Maroc Telecom does not have legal title for a further 42 other sites: – 36 sites are being expropriated; – 6 sites are under dispute. 3.1.4 REAL PROPERTY

the environment, its employees, and stakeholders. Some of the data are published. In 2017, Maroc Telecom compiled data for more than 170 non-financial performance indicators (48 social indicators, 23 environmental indicators and more than 100 employee-related indicators).The non-financial data is audited eachbyear by the internal auditors. These audits guarantee that reporting is in line with the relevant procedures and meets the criteria for completeness and reliability. GOALS FOR 2018 In 2018, the Corporate Social Responsibility policy will be strengthened. The scope of the reporting will be extended to new social indicators in the subsidiaries. New initiatives such as managing waste, landscaping cell towers, reducing energy consumption, and promoting and assessing the CSR performance of suppliers will continue.

2017 HIGHLIGHTS – Two large sites with a combined estimated value of MMAD 26 million registered in the name of Maroc Telecom. – Two large sites with a current estimated value of MMAD 63 million at an advanced stage of registration. Sites under dispute or subject to expropriation primarily involve land parcels owned by the government or local authorities, for which legal title follows a specific administrative procedure, and privately owned land where there is no proof of ownership. The estimated costs of these procedures (e.g., payment of land-registration fees) and/or the potential financial risks likely to arise from any dispute over the legal title of ownership are deemed to be insignificant. A similar process is taking place at Maroc Telecom’s sub-Saharan subsidiaries. Mauritel, Onatel, Gabon Telecom, and Sotelma are former state-owned companies in which Maroc Telecom took a controlling stake when they were privatized. In these four transactions, the property holdings were transferred by the various states to the entities acquired by Maroc Telecom. Maroc Telecom is current in the process of obtaining legal title to these property assets. The same regularization approach was adopted for the new subsidiaries (Moov) recently acquired by Maroc Telecom.

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MAROC TELECOM ____ 2017 Registration Document