MAROC_TELECOM_REGISTRATION_DOCUMENT_2017

FINANCIAL REPORT

Consolidated financial statements at 31 December 2015, 2016 and 2017

2015

Change in scope of consolidation

Translation adjustment

(in MAD million)

2014 366

Charges

Used

Reversals Reclassification

2015 535

Noncurrent provisions Provisions for life annuities Provisions for termination benefits Provisions for disputes with third parties

41

-31

166

-4

0

-2

20

-1

19

337

33

-25

41

-4

0

381

9

8

-1 -3

15

0

0 0

-2

29

Other provisions Current provisions

-

-

110 139

-1

0

106 834

571

244

-144

0

-4

27

Provisions for voluntary redundancy plan

134

-4

131

Provisions for employee-related expenses

4

-

Provisions for disputes with third parties

328 109 937

83

-52 -88

47 92

1

-4

-37 64 24

365 338

Other provisions

161 285

-1 -4

0

TOTAL

-175

305

-4

1,369

NOTE 15 — BORROWINGS AND OTHER FINANCIAL LIABILITIES

15.1 NET CASH POSITION

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Bank loans due in more than onebyear Bank loans due in less than onebyear

4,200 2,913 7,977

4,666 2,551 7,559

6,039 2,438 7,172

Bank overdrafts

BORROWING AND OTHER FINANCIAL LIABILITIES

15,090

14,775

15,648

Cash and cash equivalents

2,010

2,438

3,082

Cash held in escrow for repayment of bank loans

38

48

11

NET CASH POSITION

-13,042

-12,289

-12,555

(in MAD million)

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Outstanding debt and accrued interestb(A)

15,090

14,775

15,648

Cash assetsb(B)

2,048

2,486

3,093

NET CASH POSITIONb(B)-(A)

-13,042

-12,289

-12,555

The change in the Group’s financial liabilities is explained by: – increase in debt by subsidiaries with credit institutions in the amount of MAD 2,076 million; – increase in bank overdrafts in the amount of MAD 784 million mainly in Morocco for MAD 535 million;

– repayment of the euro-denominated line of credit granted by Etisalat to Maroc Telecom in the amount of MAD 999 million; – repayment of financial debts and bank overdrafts by subsidiaries in the amount of MAD 2,620 million.

149

MAROC TELECOM ____ 2017 Registration Document