Itissalat Al Maghrib IAM S A : Maroc Telecom - PR FY2022 Results 21/02/2023

PRESS RELEASE

Rabat, February 21, 2023

CONSOLIDATED RESULTS - YEAR ENDED

DECEMBER 31, 2022

Operating results in line with objectives:

• Group's customer base reached 75.4 million customers, up 1.6% of which +3.8% for the subsidiaries and -3.0% for Morocco;
• Slight decline in Group revenues (-0.5%at constant rate*);
• Continued growth in Fixed Data revenues in Morocco (+6.7%), driven by the expansion of the FTTH customer base (+44%);
• Decline in Mobile activities in Morocco (-3.9%)and in particular in Mobile Data (-5.6%);
• Growth in Moov Africa subsidiaries revenues (+1.3% at constant rate*) thanks to the expansion of Mobile Data (+28% at constant rate*);
• Maintained high profitability with a Group adjusted EBITDA margin of 51.8%;
• High level of Group investments maintained (excluding frequencies and licenses) representing 21.2% of revenues at the end of 2022;
• Net Debt under control representing 0.8x EBITDA.

Proposed distribution of MAD 1.9 billion, i.e. MAD 2.19 per share, representing a return of 2.25%**.

Maroc Telecom Group's outlook for 2023, at constant scope and exchange rates:

• Stable revenues;
• Stable EBITDA;
• CAPEX of approximately 20% of revenues, excluding frequencies and licenses.

Despite the regulatory environment, competitive intensity and the effects of the international economic crisis on inflation, Maroc Telecom Group is ending 2022 in line with its operational and financial objectives.

Thanks to the African subsidiaries' activities, which are showing growth indicators, and to its ongoing efforts to optimize costs, the Group is maintaining a high level of profitability, leaving it free to ensure its level of development.

To anticipate the expectations of its customers and implement its strategy combining innovation and quality of service, the Group is pursuing its proactive investment policy, focused on Mobile and Fixed Data networks, which will enable it to support the growing activities while strengthening its role as a driver of digital transformation, both on the domestic market and in the countries where it operates

*Constant MAD/ouguiya/CFA franc exchange rate.

** Based on the share price on February 20, 2023 (MAD 97.50)

1

GROUP ADJUSTED CONSOLIDATED RESULTS*

				Change at
(IFRS in MAD millions)	Q4 2021	Q4 2022	Change	constant
exchange
				rates(1)
Revenues	9,004	8,923	-0.9%	-3.0%
Adjusted EBITDA	4,760	4,420	-7.2%	-8.9%
Margin (%)	52.9%	49.5%	-3.3 pt	-3.2 pt
Adjusted EBITA	3,082	2,596	-15.8%	-17.3%
Margin (%)	34.2%	29.1%	-5.1 pt	-5.0 pt
Adjusted net income	1,714	1,300	-24.1%	-25.0%
Group share
Margin (%)	19.0%	14.6%	-4.5 pt	-4.3 pt
CAPEX(2)	1,928	2,075	7.6%	5.2%
Of which frequencies and	1	0
licenses
CAPEX/Rev (excluding	21.4%	23.3%	1.8 pt	1.8 pt
frequencies and licenses)
Adjusted CFFO	3,736	3,134	-16.1%	-17.2%
Net Debt	14,397	16,355	13.6%	12.8%
Net Debt/EBITDA(3)	0.7x	0.9x

* The adjustments to the financial indicators are detailed in Appendix 1.

			Change at
2021	2022	Change	constant
exchange
			rates(1)
35,790	35,731	-0.2%	-0.5%
18,589	18,492	-0.5%	-0.8%
51.9%	51.8%	-0.2 pt	-0.2 pt
11,586	11,468	-1.0%	-1.4%
32.4%	32.1%	-0.3 pt	-0.3 pt
6,014	5,820	-3.2%	-3.3%
16.8%	16.3%	-0.5 pt	-0.5 pt
5,615	7,572	34.8%	34.1%
123	0
15.3%	21.2%	5.8 pt	5.8 pt
12,110	11,294	-6.7%	-7.1%
14,397	16,355	13.6%	12.8%
0.7x	0.8x

• Customer base
  The Group customer base reached 75,4 million customers in 2022, up 1.6% driven mainly by the expansion of subsidiaries' customer bases.
• Revenues
  The Maroc Telecom Group generated revenues(4) of MAD 35.7 billion in 2022, down slightly by 0.2% (-0.5% at constant exchange rates(1)). Growth in the Moov Africa subsidiaries revenues and in the Fixed Internet business in Morocco partly offset the decrease in the Mobile business in Morocco, impacted by the economic, competitive and regulatory environment.
• Earnings from operations before depreciation and amortization
  For the 2022 financial year, the Maroc Telecom Group posted adjusted earnings from operations before depreciation and amortization (EBITDA) of MAD 18,492 million, down 0.5% (-0.8% at constant exchange rates(1)). The adjusted EBITDA margin remained high at 51.8%, virtually stable year on year.
• Earnings from operations
  Adjusted earnings from operations (EBITA)(5) for the year amounted to MAD 11,468 million, down 1.0% (-1.4% at constant exchange rates(1)). The adjusted EBITA margin was 32.1%.

2

• Group share of net income
  Adjusted Group share of net income was down 3.3% at constant exchange rates(1) and totaled MAD 5,820 million for the year ended December 31, 2022.
• Investments
  Investments(2) excluding frequencies and licenses represented 21.2% of 2022 revenues, in line with the objectives.
• Cash flow
  Adjusted cash flows from operations (CFFO)(6) fell by 7.1% at constant exchange rates(1) to MAD 11,294 million, mainly due to the increase in CAPEX.
  At December 31, 2022, consolidated net debt(7) represented 0.8 times(3) Group full-year EBITDA.
• Dividend
  At the next General Meeting of Shareholders, the Maroc Telecom Supervisory Board will propose payment of a dividend of MAD 2.19 per share, representing a total amount of MAD 1.9 billion.
• Maroc Telecom Group's outlook for 2023
  Based on recent market developments and provided no new major exceptional event disrupts the Group's activity, Maroc Telecom forecasts the following outlook for 2023 at constant scope and exchange rates:
• • Stable revenues;
  • Stable EBITDA;
  • CAPEX of approximately 20% of revenues, excluding frequencies and licenses.

3

GROUP BUSINESS REVIEW

Details of the financial indicator adjustments for "Morocco" and "International" are provided in Appendix 1.

• Morocco

(IFRS in MAD millions)	Q4 2021	Q4 2022	Change
Revenues	5,028	4,738	-5.8%
Mobile	3,072	2,859	-6.9%
Services	2,834	2,777	-2.0%
Equipment	238	82	-65.6%
Fixed	2,416	2,326	-3.7%
Of which Fixed Data*	965	1,007	4.3%
Elimination and other income	-460	-447
Adjusted EBITDA	2,972	2,579	-13.2%
Margin (%)	59.1%	54.4%	-4.7 pt
Adjusted EBITA	2,110	1,682	-20.3%
Margin (%)	42.0%	35.5%	-6.5 pt

2021	2022	Change
19,906	19,546	-1.8%
12,270	11,789	-3.9%
11,684	11,296	-3.3%
586	493	-15.8%
9,474	9,564	1.0%
3,754	4,007	6.7%
-1,837	-1,807
11,234	10,974	-2.3%
56.4%	56.1%	-0.3 pt
7,599	7,446	-2.0%
38.2%	38.1%	-0.1 pt

CAPEX(2)	754	802	6.4%	2,630	3,183	21.0%
Of which frequencies and	0	0		0	0
licenses
CAPEX/Rev (excluding	15.0%	16.9%	1.9 pt	13.2%	16.3%	3.1 pt
frequencies and licenses)

Adjusted CFFO	2,578	2,343	-9,1%
Net debt	9,350	9,405	0.6%
Net debt/EBITDA(3)	0.7x	0.9x

7,179	7,798	8.6%
9,350	9,405	0.6%
0.8x	0.8x

* Fixed Data includes the Internet, ADSL TV and Data services to companies.

Revenues from the Group's activities in Morocco totaled MAD 19,546 million, down 1.8% versus 2021. A strong performance from Fixed Data (+6.7%) partly offset the decline in Mobile revenues (-3.9%), which continued to suffer from the economic, competitive and regulatory environment.

Adjusted earnings from operations before depreciation and amortization (EBITDA) in 2022 amounted to MAD 10,974 million, down 2.3% versus 2021. The adjusted EBITDA margin remained high at 56.1%.

Adjusted earnings from operations (EBITA)(5) totaled MAD 7,446 million, down 2.0%, giving an adjusted margin of 38.1%.

Adjusted cash flows from operations (CFFO)(6) increased by 8.6% to MAD 7,798 million.

4

Mobile

	Unit	12/31/2021
Customer base(8)	(000)	19,900
Prepaid	(000)	17,538
Postpaid	(000)	2,362
Of which Internet 3G/4G+(9)	(000)	10,633
ARPU(10)	(MAD/month)	48.7

12/31/2022

19,252

16,836

2,416

11,043

46.8

Change

-3.3%

-4.0%

2.3%

3.9% -4.0%

At the end of 2022, the Mobile customer base(8) totaled 19.3 million customers, down 3.3% year on year.

Mobile revenues were down 3.9% year on year at MAD 11,789 million, in a challenging competitive and regulatory environment.

2022 blended ARPU(10) was MAD 46.8, down 4.0% year on year.

Fixed-line and Internet

	Unit	12/31/2021
Fixed-line	(000)	1,974
Broadband access(11)	(000)	1,735

12/31/2022 Change

1,931-2.2%

1,706-1.6%

The Fixed customer base fell by 2.2% to just over 1.9 million lines at the end of 2022. The Broadband customer base totaled 1.7 million customers, driven by the expansion of the FTTH customer base, up 44% versus 2021.

Fixed and Internet activities generated revenues of MAD 9,564 million, up 1.0% versus 2021. Growth in Fixed-Line Data (+6.7%), mainly driven by FTTH activity (+37%), offset the decline in Voice.

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