MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

FINANCIAL REPORT

Consolidated financial statements at 31 December 2015, 2016 and 2017

Gross inventories on 31b Decemberb 2017, mainly comprised inventories in Morocco (MAD 387 million), including: – MAD 161 million in Mobile handsets; – MAD 103 million in consumable materials and supplies (includingbMAD 80 million in SIM cards);

– MAD 83 million in multimedia handsets; – MAD 40 million in Fixed-line handsets. Changes in inventories are recognized in cost of purchases. Inventory impairment is recorded under “Amortization, depreciation and charges to provisions».

NOTE 10 — TRADE ACCOUNTS RECEIVABLE AND OTHER

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Trade receivables and related accounts

8,527 2,798

8,929 3,072

8,851 2,341

Other receivables and accruals

4

NET TOTAL

11,325

12,001

11,192

10.1 TRADE RECEIVABLES AND RELATED ACCOUNTS

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Trade receivables

14,554 1,611 -7,638 8,527

14,776 1,507 -7,354 8,929

14,536 1,682 -7,367 8,851

Gouvernment receivables

Depreciation of trade receivables (-)

NET TOTAL

Net trade receivables fell by 4.5% versus 2016, including a MAD 118million drop in gross receivables. Provisioning therefore increased by 2.1%.

10.2 OTHER RECEIVABLES AND ACCRUALS

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Trade receivables, advances, and deposits

169

240

123

Employee receivables

82

87

89

Tax receivables Other receivables

1,193

1,687

1,369

985 369

774 283

463 298

Accruals

NET TOTAL

2,798

3,072

2,341

The item “Tax receivables” mainly refers to VAT and corporation income tax receivables.

In 2017, net tax receivables amounted to MAD 1,193 million (vs.bMAD 1,687 million in 2016), down 29.2%. This variation comes partly from lower tax charges at the level of certain international

subsidiaries. Onbthe other hand, the decrease is also explained by the compensation receivable taxes of VAT.

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MAROC TELECOM ____ 2017 Registration Document

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