MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

FINANCIAL REPORT

Consolidated financial statements at 31 December 2015, 2016 and 2017

NET CASH USED IN FINANCING ACTIVITIES This flowmainly reflects dividends paid to shareholders amounting to MAD -6,519 million and debt service payments amounting to MAD -3,338 million. Cash inflows during the period were mainly loans

from banks amounting to MAD 1,873 million and overdraft lines of credit amounting toMAD718million earmarked for funding ongoing operations.

NOTE 13 — DIVIDENDS

13.1 DIVIDENDS

(in MAD million)

2017

2016

2015

Dividends paid by subsidiaries to their noncontrolling interests TOTALb(A) Dividends paid by Maroc Telecom to its shareholders – Kingdom of Morocco – Société de Participation dans les Télécommunications (SPT)

4

918

1,118

1,089

1,677 2,963

1,677 2,963

1,820 3,215 1,031 6,065 7,154

– Other

950

949

TOTALb(B)

5,591 6,509

5,590 6,708

TOTAL DIVIDENDS PAIDb(A)+(B)

13.2 DIVIDEND PROPOSED FOR 2017 Dividends paid by Maroc Telecom to its shareholders remained steady relative to 2016.

Dividends paid by subsidiaries to non-controlling shareholders fell by 17% versus 2016, which has been marked by exceptional distributions.

NOTE 14 — PROVISIONS

Provisions for contingencies and losses are analyzed as follows: 2017

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Noncurrent provisions Provisions for life annuities

570

470

535

17

18

19

Provisions for termination benefits Provisions for disputes with third parties

428

400

381

94 32

28 23

29

Other provisions Current provisions

106 834 131

838

1,208

Provisions for voluntary redundancy plan Provisions for employee-related expenses Provisions for disputes with third parties

0 0

386

0

0

834

822

365 338

Other provisions

4

0

TOTAL

1,408

1,679

1,369

147

MAROC TELECOM ____ 2017 Registration Document