MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

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DESCRIPTION OF THE GROUP, BUSINESS ACTIVITIES, LEGAL AND ARBITRATION PROCEEDINGS Business activities

Contributions to research, training and standardization of telecoms

DISTRIBUTION STRATEGY The extent and organization of Maroc Telecom’s distribution network is a major strategic asset for the Company. The operator’s distribution strategy is mainly focused on the following areas: – expand its direct branch network by opening new Retail branches and refurbishing old ones everybyear, to maximize customer satisfaction while keeping up with the technological trends; – increase digital distribution via indirect channels to forge closer ties with customers; – strengthen the role of all those involved directly or indirectly, to promote its offerings and meet everyone’s needs; – diversify the distributionmedia (electronic top-ups, ATMs, express top-ups, online top-ups, paybpointsbetc.); – ensure synergy between direct and indirect channels in order to offer customers a very high-quality service. DIRECT DISTRIBUTION NETWORK In order tomaintain the central and dynamic role of the direct network in its marketing and sales strategy,Maroc Telecomhas continuedwith its program to expand andmodernize its proprietary sales network in accordance with the new-generation retail branch concept. With five newly opened Retail branches and 14 branches totally refurbished by the end of Decemberb2017, 359 of Maroc Telecom’s sales outlets now feature the new design scheme. At the end of Decemberb2017 Maroc Telecom’s network of Retail branches consisted of 444 branches, with eight regional offices, ensuring optimal coverage and density. The network has 417 Retail branches and 27 Corporate branches. And four dedicated branches with nationwide coverage for key accounts. INDIRECT DISTRIBUTION NETWORK At the end of Decemberb2017, the indirect distribution network consisted of a wide range of licensed resellers, top-up outlets and regional and national distributors. The resellers network is composed mainly of convenience stores and other distributors of telecoms products which have signed agreements to sell Maroc Telecom products and services. A new category of resellers (“Revendeurs Plus”) has been added in the form of Full Image salesbpoints, which sell all Maroc Telecom prepaid and postpaid products. This network, which has a similar design scheme toMaroc TelecomRetail branches, currently hasmore than 460 stores. These make a valuable contribution to business performance and customer service, as well as providing visibility and sales coverage at the local level. Overall, the indirect network comprised more than 75,000 prepaid resellers in 2017. More than 52,700 resellers offer the express top- up service. Individual agreements with each partner serve to reinforce the network and to ensure local distribution. Partners are paid through commissions on the products and services sold. Maroc Telecom has also signed agreements with partners for the international distribution of electronic top-ups.

Lawb55-01, amending and supplementing Lawb24/96, states that the contribution of operators of public telecoms networks to training and standardization is set at 0.75% of revenues, before tax and net of interconnection fees, generated by the telecoms operations covered by their license. The contribution for research is set at 0.25% of the revenues referred to above. This amount is paid into a special fund for research. Operators providing equivalent funding for research programs under agreements with officially designated research agencies are exempt from the payment. Since 2007, Maroc Telecom no longer enters into agreements with such agencies and pays the entirety of the abovementioned contribution into an account earmarked for research. Identification of customers The ANRT has informed the operators of public telecoms networks about Decision 04/11 of Julyb13, 2011 relating to the identification of 2G and 3G Mobile customers. The ANRT issued a new decision on Novemberb8, 2013, amended by a decision on Januaryb31, 2014, pursuant to which the sale of pre- activated prepaid SIM cards was prohibited as from Aprilb1, 2014. Dispute resolution The procedure followed before the ANRT concerning litigation, anti- competitive practices and economic concentration transactions, particularly taking into account ANRT’s new authority in competition matters, is described in Decreeb2-05-772 of Julyb13, 2005. Maroc Telecom has the largest distribution network nationally. It includes more than 75,000 distribution outlets for direct and indirect sales. In 2017, Maroc Telecom’s various distribution channels were: – the direct network, composed of 448 branches at end- Decemberb2017. This network is growing fast and everybyear new Retail branches are added and existing branches are refurbished; – more than 460 full-image resellers, managed directly by Maroc Telecom’s own network, which market consumer products and services; – the indirect network comprises independent local shops, some of which have exclusivity agreements and are managed by the nearest retail branch. Nationwide distributors whose main activity is not telecoms, such as Canal M, M2T,betc.; – four national distributors, two of which operate exclusively in the field of telecoms for Corporate customers. The business of the other two concerns different customer segments and all Maroc Telecom’s product ranges and services; – five partners for sales and installation of the PABX product. 3.2.1.5 DISTRIBUTION AND COMMUNICATION Distribution ORGANIZATION

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MAROC TELECOM ____ 2017 Registration Document