MACROECONOMIC ENVIRONMENT

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3 MACROECONOMIC ENVIRONMENT MAROC INTERNATIONAL 4.5% 4.5% 5.7% 5.7% 6.1% 1.8% e 2017e PIB Actual GDP growth e PIB Actual GDP growth Resumption of economic growth due to the prospect of strong harvests Inflation under control Sustained economic growth Inflation under control Sources: Ministry of the Economy and of Finance I 3 I Sources: IMF Data October 2016

4 HIGHLIGHTS GROWTH IN CONSOLIDATED REVENUE : +3,3% NET INCREASE OF PRE-RESTRUCTURING GROUP SHARE OF NET INCOME : +3,2% SUCCESSFUL UPGRADE OF NEW SUBSIDIARIES REVENUE GROWTH IN MOROCCO : +1,0% ACCELERATED ROLLOUT OF 4G+ IN MOROCCO : COVERAGE RATIO OF 73% SUCCESSFUL VOLUNTARY REDUNDANCY PLAN IN MOROCCO : 700 EMPLOYEES CONCERNED SO FAR I 4 I

5 OPERATING AND FINANCIAL ACTIVITIES I GROWTH IN CUSTOMER BASE I (million) I GROWTH IN CONSOLIDATED GROUP REVENUE I (MAD billion) % % 34.1* +2.4%** 35.2* %** % % Morocco International ROBUST 6.3% INCREASE IN GROUP CUSTOMER BASE TO CROSS THE 54 MILLION CUSTOMERS Continued growth in customer base despite the customer identification requirements in all countries Sustained 27% growth in customer bases of new subsidiaries SOLID GROWTH IN CONSOLIDATED REVENUE (+2.4% like-for-like) Strong growth of new subsidiaries revenue (+14.6%) Growth in revenue in Morocco (+1.0%) * After eliminations ** The like-for-like basis shows the impact of the consolidation of the Moov subsidiaries as if ir had occurred on January 1 st, 2015, and if the MAD/Ouguiya/CFA franc exchange rate had remained unchanged I 5 I

6 SUCCESS OF INTERNATIONAL DEVELOPMENT STRATEGY % GROUP CUSTOMER BASE 49% 59% 61% % GROUP REVENUES 30% 41% 43% Morocco International % EBITDA 26% 33% 35% I 6 I

7 REGULATORY HIGHLIGHTS IN MOROCCO All IP-based telephone applications and services (VoIP) re-established at the request of ANRT Maroc Telecom is declared as dominant operator over all relevant markets Adopted pricing guidelines favorable to competitors ANRT issues warning regarding unbundling practices, and Orange Maroc charged with anti-competitive unbundling practices Warning from the ANRT concerning the implementation of the bundling requirements and notification by Orange Maroc for anticompetitive practices AT SUBSIDIARIES 3G license granted in Togo and a global license in Ivory Coast Decline in call termination rates Increase in fiscal and parafiscal pressures Mounting constraints on customer identification: Constraints on SIM card sales and suspension of customers I 7 I

8 RESULTS EXCEEDING THE OBJECTIVES ANNOUNCED IMPROVED 2016 OUTLOOK At constant scope and forex* FY 2016 ACHIEVEMENTS Slight revenue growth +2.4% Stable EBITDA +0.9% CAPEX approximately 20% du revenues, excluding frequencies, licenses 20.1% * At constant scope and forex, figures show the impact of the consolidation of the Moov subsidiaries as if they had occurred on January 1, 2015, and if the MAD/Ouguiya/CFA franc exchange rate had remained unchanged. I 8 I

9 STABLE DIVIDEND DESPITE RESTRUCTURING CHARGES Proposal to distribute MAD 6.36/share 100% of Group share of net income REPRESENTING A YIELD OF 4,5%* *Based on the share price at February 24, 2017 (MAD 140) I 9 I

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11 MOROCCO MOBILE I EVOLUTION OF PRICE-PER-MINUTE OF OUTGOING CALLS I (MAD) I CHANGE IN ELASTICITY OF USE / PRICE IN 2016 I (Elasticity calculated over a year) Q1 Q2 Q3 Q4 MT Market Price / outgoing min. -30% -20% -2% +5% Outgoing usage +19% +7% +3% -8% Q Q Q Q Q Q Q Q IMPACT OF NEW PRICING GUIDELINES: Increase in price per minute (+5% in Q4 2016) and decline in usage (-8% in Q4 2016) Maroc Telecom maintains a premium relative to the market I 11 I

12 MOROCCO MOBILE I MOBILE CUSTOMER BASE I (000) I MOBILE REVENUE I (MMAD) 18, % 18,375 1,649 1,729 16,649 16, % 0.0% 14,276-1,1% 14, ,058 13, % Prepaid Postpaid Services Equipment 62.5 I ARPUI (MAD/month) -2.2% GROWTH IN MOBILE CUSTOMER BASE 1.7 pt market share gain in a year to reach 44.2% as of end of December Sustained growth in Postpaid Mobile customer base DECLINE IN INTERNATIONAL INCOMING TRAFFIC following the resumption of VoIP services in November 2016 I 12 I

13 MOROCCO DATA MOBILE CONTINUED SURGE IN MOBILE DATA I MOBILE INTERNET CUSTOMER BASE I (000) I DATA TRAFFIC I (GB) 36% 43% Penetration rate* 6,502 1, % 7,844 1, % 16,6% +96% 5,040 6, % Prepaid Postpaid HIGH DEMAND FOR 3G/4G INTERNET AS A RESULT OF: Expansion of the 4G+ network 4G data traffic represented 34% of Mobile Internet traffic in Q4 2016, a year and a half after the service was launched MAROC TELECOM IS THE SOLID LEADER IN MOBILE INTERNET WITH 49,6% MARKET SHARE AS OF END OF DECEMBER 2016 * Calculation based on Maroc Telecom total customer base I 13 I

14 MAROC FIXED-LINE AND INTERNET GROWTH MAINTAINED IN FIXED-LINE BUSINESS I FIXED-LINE & INTERNET REVENUE I (MAD million) I FIXED-LINE & ADSL CUSTOMER BASE** I (000) 8, % ,217 2, % 2,263 2, % 4,248 4, % -2.0% 1,583 1,640 1,136 1, % +9.2% Voice (including transit) Data* Intra-LL Maroc Telecom Fixed-line ADSL CONTINUING STRONG GROWTH IN FIXED-LINE AND INTERNET BUSINESS thanks to success of broadband with many customers signing up mainly for double play offers * Fixed-line data includes Internet, ADSL TV, and Data services to businesses; ** Includes low-speed and leased connections. I 14 I

15 INTERNATIONAL CONTINUATION OF VERY STEADY GROWTH I MOBILE CUSTOMER BASE I (000) I REVENUE GROWTH AT CONSTANT EXCHANGE RATE I 29, % 32,370 14,010** +7.1% 15,326** 17,909 17, % +3.6% 11,515 14, % Historical subsidiaries +14.6% 2015* 2016 New subsidiaries 2015* 2016 I MARKET SHARES I (%) 2015 Q Historical subsidiaries 44% 45% New subsidiaries 24% 27% Global 33% 35% SUSTAINED GROWTH in the subsidiaries thanks to growing market share (+2 PTS FROM THE END OF 2015) despite an UNFAVORABLE MACROECONOMIC ENVIRONMENT and the REQUIREMENT TO IDENTIFY MOBILE CUSTOMERS * Restated figures, following the merger of Gabon Telecom and Moov Gabon in 2016 **After eliminations I 15 I

16 MOROCCO - NETWORK MODERNIZATION I CAPEX I (MAD million) I COVERAGE I (as % of population) 18.4% 18.4% 3, % 3,905 1, ,060 1, , * 2016 Very-High-Speed Fixed-Line Very-High-Speed Mobile *Excluding 4G Licenses Other CAPEX/ REVENUES G 99% 100% 3G 86% 87% 4G 60% 73% CONTINUING INVESTMENT IN HIGH-SPEED SERVICES TO OFFER MAROC TELECOM CUSTOMERS INCREASINGLY HIGHER FIXED-LINE AND MOBILE THROUGHPUT In 2016, nearly 1,200 radio sites were fitted with Single RAN technology to deliver greater capacity and better service quality 100 Gb/s connections came into service on the national Backbone Strong growth in international bandwidth capacity with a doubling of Mobile Data network capacity I 16 I

17 INTERNATIONAL ACCELERATING INVESTMENT TO SUPPORT GROWTH OF SUBSIDIARIES I CAPEX (excl. licenses) I (MAD million) I CHANGE IN RADIO SITES I 16.8% 20.8% CAPEX/ REVENUES 2, % 3,189 1,723 X2.8 3,779 4, % 1,735 1, % New subsidiaries 4,762 5, % 2015* 2016 Historical subsidiaries INTERNATIONAL Launch of 4G in Ivory Coast and 3G in Togo Continued upgrading of network and IS infrastructure at Moov subsidiaries: increase in network core capacity and Mobile coverage Merger of core networks of Gabon Télécom and Moov Gabon * Restated figures, following the merger of Gabon Telecom and Moov Gabon in 2016 I 17 I

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19 MOROCCO CONTINUING HIGH MARGINS AND STRONG CASH GENERATION MAD million Change I EBITDA MARGIN I (%) REVENUES 21,033 21, % EBITDA 11,144 11, % Margin (%) 53.0% 51.8% -1.2 pt EBITA before restructuring 7,386 7, % Margin (%) 35.1% 33.7% -1.4 pt EBITA after restructuring 7,386 6, % CAPEX 4,792 3, % o/w licenses & frequencies CAPEX/REVENUES (excl. licenses & frequencies) 18.4% 18.4% +0.0 pt Gross Margin OPEX -0.8 pt -0.4 pt 53.0% 51.8% I VERY STRONG CASH GENERATION I (MAD million) 67%* 65% CFFO 6,576 7, % % EBITDA 59.0% 64.7% +5.7 pts NET DEBT 11,741 10,937-4G licenses and frequencies %* 6,576 7,124 CFFO +8,3% EBITDA Net debt / EBITDA 1.0x 1.0x *Excl. license CFFO / EBITDA (%) I 19 I

20 INTERNATIONAL STEADY GROWTH IN RESULTS AND CASH GENERATION MAD million Change Change like-forlike REVENUES 14,010 15, % +7.1% EBITDA 5,599 5, % +5.0% 40.0% -0.6 pt I EBITDA MARGIN I (%) -0.9 pt -1.8 pt +1.8 pt 38.5% Margin (%) 40.0% 38.5% -1.4 pt -0.8 pt EBITA 2,954 3, % +22.0% Margin (%) 21.1% 23.3% +2.2 pts +2.9 pts CAPEX 4,043 4, % 2015 Scope Non-recurring Taxes and Cost 2016 effect items fees optimization I CONTINUING STRONG CASH GENERATION I (MMAD) o/w licenses & frequencies 1, CAPEX/REVENUES (excl. licenses & frequencies) 16.8% 20.8% +4.0 pts CFFO 2,785 3, % 82%* 65% CFFO EBITDA % EBITDA 49.7% 65.1% pts NET DEBT 4,679 4,670 - Net debt / EBITDA 0.8x 0.8x - 1, %* 2,785 3, *Excluding licenses CFFO / EBITDA (%) License paid (33) +38.1% I 20 I

21 MAROC TELECOM GROUP CONSOLIDATED RESULTS MAD million Change Change like-forlike REVENUES 34,134 35, % +2.4% EBITDA 16,742 16, % +0.9% Margin (%) 49.0% 48.0% -1.1 pt -0.7 pt EBITA before restructuring 10,340 10, % +3.5% Margin (%) 30.3% 30.4% +0.1 pt +0.3 pt EBITA after restructuring 10,340 10, % +1.7% Financial Income % Corp. inc. tax 3,152-3, % Minorities 982-1, % GROUP SHARE OF NET INCOME before restructuring 5,595 5, % Margin (%) 16.4% 16.4% +0.0 pt GROUP SHARE OF NET INCOME 5,595 5, % 5, Group Share Net Income Change EBITA before restructuring I GROUP SHARE OF NET INCOME I (MAD million) Change Financial Result Change Corp. inc. tax - 49 Change minorities 5, Group Share Net Income before restructuring Restructuring costs +3.2% 5, % 2016 Group Share Net Income after restructuring I 21 I

22 MAROC TELECOM GROUP CONSOLIDATED CASH FLOW MAD million Change EBITDA 16,742 16, % CAPEX 8,835 7, % o/w licenses and frequencies 2, CAPEX / revenues (excl. licenses & frequencies) 18.2% 20.1% +1.9 pt CFFO 9,362 10, % % EBITDA 55.9% 64.9% +9.0 pts Financial expenses % Income tax paid -3,018-3, % CFAIT 5,795 7, % Dec x ND/EBITDA + 10,970 Financial expenses I NET DEBT I (MAD million) Income tax -5,590 paid Dividends to minorities -12,555-12, % CFFO ,388-1,210 Dividends to shareholders -99 Other Dec x ND/EBITDA % EBITDA 34.6% 42.4% +7.8 pts NET DEBT 12,555 12, % Net debt / EBITDA 0.7x 0.7x A STRONG CASH GENERATION THATS PERMITS FINANCING OF MAJOR CAPEX PROGRAM WHILE DISTRIBUTING ENTIRE NET EARNINGS I 22 I

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24 2017 OUTLOOK 2017 HIGHLIGHTS IN MOROCCO Continuing investment to modernize networks (Single RAN) and to roll out 4G+ Regulatory and competitive pressures on Mobile and Fixed-line businesses INTERNATIONAL Investment still very steady in expanding coverage and improving service quality Continued profitable growth despite fiscal and regulatory pressures 2G license renewal in Gabon and attribution of 4G license in Togo Plan of Roaming charges removal among some African countries MAROC TELECOM GROUP OUTLOOK FOR 2017 Stable revenues Stable EBITDA CAPEX amounting to around 23% of revenues, excluding frequencies and licenses I 24 I

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26 MOROCCO GLOBAL TELECOM MARKET I MOBILE: A DECLINING MARKET I I MOBILE: INSUFFICIENT ELASTICITY TO STRONG PRICE CUTS I 133% 127% 123% Mobile market (M customers) Penetration rate (%) I FIXED-LINE: EXCLUDING RESTRICTED MOBILITY, MARKET STILL GROWING I 7.5% 6.6% -2,5% 6.1% ,5% Outgoing usage Price per outgoing mobile minute (MAD/min) (mins/customer/month) I ADSL: MARKET STILL GROWING I 3.0% +25% 3.2% +9,8% +11,9% 3.6% Source: ANRT, Q ,5% +1,6% Fixed-line market (M customers) Restricted mobility (M customers) Penetration rate (%) I 26 I 983 1,132 1, ADSL market (000) Penetration rate (%)

27 CENTRAL AFRICA IVORY COAST NIGER TOGO GABON MOROCCO MAURITANIA BURKINA FASO MALI BENIN MAROC TELECOM GROUP AREA OF ACTIVITIES Population: 34.0 million GDP: US$102 billion Mobile penetration: 123% Mobile market share: 44% Competitive position: 1/3 Population: 3.8 million GDP: US$4.7 billion Mobile penetration: 94% Mobile market share: 58% Competitive position: 1/3 Population: 18.3 million GDP: US$12.0 billion Mobile penetration: 77% Mobile market share: 49% Competitive position: 1/3 Population: 16.7 million GDP: US$14.1 billion Mobile penetration: 108% Mobile market share: 39%* Competitive position: 2/2 Population: 11.1 million GDP: US$8.9 billion Mobile penetration: 83% Mobile market share: 40% Competitive position: 2/4 Population: 4.9 million GDP: US$1.8 billion Mobile penetration: 19% Mobile market share: 15% Competitive position: 4/4 Population: 24.2 million GDP: US$34.6 billion Mobile penetration: 114% Mobile market share: 23% Competitive position: 3/3 Population: 18.1 million GDP: US$7.6 billion Mobile penetration: 41% Mobile market share: 16% Competitive position: 3/4 Population: 7.5 million GDP: US$4.5 billion Mobile penetration: 67% Mobile market share: 47% Competitive position: 2/2 Population: 1.9 million GDP: US$14.6 billion Mobile penetration: 156% Mobile market share: 59% Competitive position: 1/3 Source: Dataxis Q3 2016, IMF October 2016 and ANRT Q4 2016; *Sonatel data Q I 27 I

28 IMPORTANT LEGAL NOTICES FORWARD-LOOKING STATEMENTS This presentation contains forward looking statements and provisional items concerning the financial position, operating results, strategy and outlook of Maroc Telecom and the impacts of certain transactions. Although Maroc Telecom may base its forwardlooking statements on what it considers to be reasonable assumptions, those statements do not guarantee the future performance of the Company. The actual results may be very different from the forward-looking statements because of a number of risks and uncertainties, both known and unknown. The majority of these risks are beyond our control, namely the risks described in public documents filed by Maroc Telecom with the Autorité Marocaine du Marché des Capitaux ( and the Autorité des Marchés Financiers ( These documents are also available in French on our website ( This presentation contains forward-looking information which can be assessed only on the date it is disclosed. Maroc Telecom in no way commits to completing, updating, or modifying these forward-looking statements as a result of new information, future events, or any other reason, subject to applicable regulations and especially to Articles III.2.31 et seq. of the circular of the Conseil Déontologique des Valeurs Mobilières and to Articles et seq. of the General Regulation of the French securities regulatory authority (Autorité des Marchés Financiers, or AMF).