Weekly Letter. Market summary. Weekly performance. Company news. Key Performance Indicators. Highlights. Casablanca Tunis Abidjan Dakar Cotonou ...

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1 Weekly Letter Market summary Weekly performance Company news ADDOHA: A cumulative deleveraging of MAD 3.4bn since the beginning of the program until the end of October Key Performance Indicators Highlights Following a mitigated session, the key indexes of the Casablanca Stock Exchange closed, in extremis, on a positive note with a MASI up by 0.22% to 12,386.9 points and a MADEX increasing by 0.19% to 10, points for respective y-t-d performances of % and %; Average, the total transactional volume amounted to MAD 110.7m, made up to an extent of 51.9% by the transactions on 72,327 ATTIJARIWAFA BANK shares, 322,503 ADDOHA stocks (i.e. 0.1% stake) and 81,124 IAM shares; At the top of the podium, FENIE BROSSETTE led the way with a 6.60% improvement to MAD for only 2 traded shares, followed by SNEP which increased by 5.63% to MAD for 1,405 traded stocks (i.e. 0.1% stake); In contrast, ZELLIDJA fell by 5.98% to MAD for 20 traded securities while SALAFIN dropped by 3.17% to MAD for 16 treated shares. Casablanca Tunis Abidjan Dakar Cotonou Our research is also available on Bloomberg, Thomson Reuters, Factset, S&P Capital IQ and Research Pool. Please refer to the important legal information at the end of the document and our website:

2 Market summary Floating MASI Daily perf Annual perf Floating MADEX Daily perf Annual perf FTSE CSE Morocco 15 Daily perf Annual perf FTSE CSE Morocco All Liquid Daily perf Annual perf Volume Central Market 12, pts +0.22% +6.38% 10, pts +0.19% +5.82% 11, pts +0.28% +8.85% 10, pts +0.22% +6.78% MAD m MAD m 100.0% OTC Market MAD 0.0 m 0.0% Market Capitalization MAD bn Ranking central volume Volume % Total In MAD m Volume ATTIJARIWAFA BANK % ADDOHA % MAROC TELECOM % LAFARGEHOLCIM MAROC % BMCI % MASI and MADEX since 12/08/2016 Base 100 MASI (Rebased) MADEX (Rebased) Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Top 5 sector indexes Indexes Points % Var YTD Chemicals 4, % % Transportation 2, % % Beverages 17, % % Industrial Gas & Petroleum 15, % % Tourism % % Ranking OTC volume Price per share Volume Number of shares In MAD In MAD m Nil Biggest rises and falls Rising shares Price on Quantity P/E D/Y % Change Traded 2017E 2017E FENIE BROSSETTE % n/d n/d SNEP , % n/d n/d SONASID % 69.5x 0.0% CTM % n/d n/d JET CONTRACTORS , % n/d n/d Falling shares Price on Quantity P/E D/Y % Change Traded 2017E 2017E ZELLIDJA % n/d n/d SALAFIN % n/d n/d BMCI , % 20.7x 3.5% TAQA MOROCCO % 18.8x 4.4% MED PAPER % n/d n/d NB: Changes are calculated in reference to the last transaction price. 2

3 Weekly Performance Market Indicators Floating Floating MASI MADEX CLOSING 12, pts 10, pts PREVIOUS DAY % % 1 WEEK % % 3 MONTHS % % YEAR-TO-DATE % % Main increases of MADEX shares Closing Weekly Y-T-D Perf Perf UNIMER % % CTM % % JET CONTRACTORS % % LABEL' VIE 1, % % MARSA MAROC % % TOTAL MAROC 1, % % CDM % % INVOLYS % % STOKVIS % % MANAGEM 1, % % Principal volumes for the week In MAD k Central OTC Total(MAD m) Market Market BMCE BANK 4,526 6,226,618 6,231,143 ATTIJARIWAFA BANK 93, ,657 ADDOHA 68, ,991 MAROC TELECOM 56, ,301 MARSA MAROC 52, ,274 COSUMAR 49, ,703 BCP 31, ,092 LAFARGEHOLCIM MAROC 28, ,327 JET CONTRACTORS 20, ,362 TAQA MOROCCO 18, ,346 Volumes for the week 12/04/17 to 12/08/17 CM OTC Retail Market vs. Institutionals Global Volume MAD 6,749.4 m Central Market MAD m 7.7% OTC Market MAD 6,226.6 m 92.3% Main decreases of MADEX shares Closing Weekly Y-T-D Perf Perf RDS % % ALLIANCES % % M2M GROUP % % SONASID % % ADDOHA % % TAQA MOROCCO % % EQDOM 1, % % BMCI % % ATTIJARIWAFA BANK % % ALUM DU MAROC 1, % % Screening Top 5 least volatile stocks Volatility Volatility 3 months 1 year MAROC TELECOM 7.6% 13.7% AFRIC INDUSTRIES 9.9% 23.1% CENTRALE DANONE 12.1% 28.7% BMCE BANK 14.1% 17.8% UNIMER 14.5% 19.3% Weekly schedule of coming coupon removals Dividend (In MAD) Date of removal Nil - - Schedule of coming meetings Type of meeting Date of meeting Nil - - 6, /4/ /5/ /6/ /7/ /8/2017 3

4 vvdsvdvsdy Source: FactSet 20 s ep t. 14 déc. 14 mar s 15 juin 15 sept. 15 déc. 15 mars 16 juin 16 s ep t. 16 déc. 16 mar s 17 juin 17 sept. 17 dé c. 17 Price Short Avg (Rebased) Company news ADDOHA REAL ESTATE Buy Recommendation unchanged Price: MAD 036 Closing price as of : 12/08/2017 Target price : MAD 56 Target price unchanged Reuters/Bloomberg ADH.CS/ADH MC In (MAD m) e 2018e Sales 7, , ,381.0 Var % 0.2% 0.7% 3.0% Operating Income 1, , ,618.1 Var % 20.4% 3.4% 6.6% Operating margin 20.6% 21.2% 21.9% Net Profit 1, , ,122.8 Var % 18.4% 6.0% 4.9% Net margin 15.8% 16.4% 16.7% ROE 8.7% 9.0% 9.3% ROCE 5.4% 5.7% 6.1% P/E 13.7x 10.9x 10.4x P/B 1.2x 1.0x 1.0x D/Y 6.6% 7.2% 7.5% Price Source: Company, BMCE Capital Research estimate A cumulative deleveraging of MAD 3.4bn since the beginning of the program until the end of October 2017 Fact: Publication of its CGP status at the end of October Analysis: ADDOHA Group has just published the status of its "Cash Generation Plan" (CGP) from its start until the end of October 2017, highlighting the following achievements: A net deleveraging of MAD 3.4bn (i.e. 71% of the CGP target), setting the net debt to MAD 5.9bn, i.e. a debt ratio (net debt/[net debt+equity]) of 31.5%, one of the lowest in the sector which shows an average near 48% in H1 2017; Pre-sales of more than 9,300 units of finished products, against an initial stock of 15,000 units (i.e. 62% of the CGP target); And, a cash collection beyond MAD 23.6bn (i.e. 91% of the CGP target), including MAD 15.1bn in the Economic and Mid-range segment. Thus, and despite difficult sectoral conditions, the Group has mainly managed to achieve its Plan s targets and is prepared for the after CGP. Regarding the operational level, the Group's pre-sales amounted to 11,381 units at the end of October 2017, thanks to the pursuit of its sales strategy focused on the finished products stocks, which amounted to 5,318 units, i.e. almost 47% of the total. By segment, Economic & Mid-range pre-sales amounted to 10,048 units (of which 4,879 finished products, i.e. 49% of the total) while those of the Business Unit (BU) High-end amounted to 1,133 units (including 439 finished products, i.e. 39% of the total). According to the Management, the good performance of the BU High-end was mainly explained by a positioning oriented towards local demand and innovation in the product concept in line with the buyers budgets. Besides and as part of the preparations for the launch of its new strategic vision which would be published before the end of the year, the Group has initiated operations in order to sustain its future activity through securing of its land reserve. In fact, the new land acquisitions involved are located in Casablanca and are intended for the Economic & Midrange. Let s not forget that in H1 2017, disbursements which are related to lands acquisition amounted to MAD 320m and covered lands in the new city of ERRAHMA for nearly 80 ha (remainder payment of the finalized selling price) and other lands in Casablanca (signed sales agreements) for the CORALIA brand. Lastly and in terms of yield, the Group has distributed a dividend of MAD 774m in 2016, i.e. a MAD 2.4 DPS. At this dividend level and based on a price of MAD 43 observed on 12/30/2016, the company shows a D/Y of 5.6% significantly higher than the one of the Market which amounted to 4% at the same date. Pending the release of its new strategic vision and detailed accounts for 2017, we maintain unchanged both of our target price and recommendation on the share. Analyst(s): Hajar TAHRI LAMTAHRI h.tahri@bmcek.co.ma

5 Key performance indicators (1/2) SHARES Value on EPS P/E D/Y P/B Capitalization Quantity of shares Perf /08/ E 2018E E 2018E E 2018E E 2018E in % MAD m TOTAL MARKET 6.38% x 19.2x 18.2x 4.0% 3.5% 3.6% 2.7x 2.8x 2.7x 100.0% 628,204 AGRI-BUSINESS 23.8% x 18.7x 18.0x 3.6% 4.2% 4.3% 3.2x 3.7x 3.5x 7.1% 44,878 BRASSERIES DU MAROC 2, ,829, % x 21.3x 19.1x 4.8% 3.6% 4.0% 4.2x 4.8x 4.5x 17.3% 7,782 CARTIER SAADA ,265, % 1.3 n/d n/d 16.3x n/d n/d 4.8% n/d n/d 1.0x n/d n/d 0.3% 131 CENTRALE DANONE ,420, % 6.3 n/d n/d 97.4x n/d n/d 1.4% n/d n/d 5.5x n/d n/d 15.7% 7,065 COSUMAR ,991, % x 17.6x 17.6x 3.8% 4.7% 4.7% 3.2x 3.6x 3.5x 42.1% 18,897 DARI COUSPATE 3, , % n/d n/d 15.0x n/d n/d 2.7% n/d n/d 4.1x n/d n/d 2.1% 955 LESIEUR CRISTAL ,631, % x 21.2x 19.9x 3.7% 3.0% 3.0% 2.3x 2.7x 2.6x 10.4% 4,645 OULMES 1, ,980, % x 17.5x 16.2x 5.2% 4.4% 4.7% 3.9x 4.3x 4.0x 7.5% 3,350 UNIMER ,413, % 9.9 n/d n/d 17.9x n/d n/d 1.7% n/d n/d 1.2x n/d n/d 4.6% 2,053 INSURANCES 13.8% x 17.9x 16.5x 2.9% 2.7% 2.7% 2.3x 2.5x 2.3x 4.3% 27,293 ATLANTA ,190, % x 19.3x 17.1x 4.1% 3.2% 3.3% 2.0x 2.5x 2.3x 13.9% 3,792 SAHAM ASSURANCE 1, ,116, % x 15.9x 14.8x 3.5% 2.6% 2.6% 1.3x 1.6x 1.5x 23.1% 6,299 WAFA ASSURANCE 4, ,500, % x 18.5x 17.0x 2.6% 2.6% 2.6% 3.1x 3.0x 2.8x 63.0% 17,203 BANKS 8.9% x 18.5x 17.3x 2.8% 2.6% 2.8% 1.9x 1.9x 1.8x 34.2% 215,029 ATTIJARIWAFA BANK ,527, % x 18.9x 17.8x 2.9% 2.7% 2.9% 2.1x 2.2x 2.1x 45.4% 97,693 BCP ,254, % x 18.4x 17.4x 2.1% 2.1% 2.2% 1.8x 1.8x 1.7x 25.5% 54,859 BMCE BANK ,463, % x 16.7x 14.9x 2.2% 2.5% 2.6% 2.2x 1.9x 1.8x 17.4% 37,328 BMCI ,279, % x 20.7x 19.8x 8.2% 3.5% 3.6% 0.9x 1.3x 1.3x 5.2% 11,287 CDM ,881, % x 15.9x 17.3x 2.0% 2.0% 2.1% 1.2x 1.3x 1.2x 2.8% 6,093 CIH BANK ,608, % x 26.1x 19.4x 4.7% 5.1% 5.5% 1.6x 1.6x 1.6x 3.6% 7,768 CHEMISTRY 266.9% 16.6 n/d n/d 9.9x n/s n/s 3.1% n/s n/s 0.8x n/s n/s 0.2% 1,440 SNEP ,400, % 16.6 n/d n/d 9.9x n/d n/d 3.1% n/d n/d 0.8x n/d n/d 100.0% 1,440 CEMENTS AND METALLURGICAL -6.4% x 22.9x 21.8x 5.9% 3.8% 3.8% 4.0x 4.1x 3.9x 11.8% 74,262 AFRIC INDUSTRIES , % 18.5 n/d n/d 18.9x n/d n/d 4.3% n/d n/d 2.5x n/d n/d 0.1% 84 ALUM DU MAROC 1, , % x 10.0x 9.5x 6.7% 6.4% 6.4% 1.5x 1.5x 1.4x 0.8% 580 CIMENTS DU MAROC 1, ,436, % n/s 25.1x 24.7x 5.0% 3.6% 3.4% 3.5x 4.6x 4.5x 32.9% 24,397 COLORADO ,088, % x 18.8x 17.8x 7.9% 5.2% 5.2% 1.9x 2.9x 2.8x 1.3% 991 JET CONTRACTORS ,400, % 13.4 n/d n/d 12.2x n/d n/d 2.4% n/d n/d 0.9x n/d n/d 1.1% 850 LAFARGEHOLCIM MAROC 1, ,431, % x 21.4x 20.3x 6.3% 4.1% 4.2% 5.0x 4.4x 4.3x 59.9% 44,519 SONASID ,900, % n/s 69.5x 39.9x 0.0% 0.0% 0.0% 0.8x 1.5x 1.4x 3.8% 2,842 BROKERAGE 20.9% 84.1 n/d n/d 13.2x n/s n/s 7.2% 0.0% 0.0% 8.4x n/s n/s 0.3% 1,606 AFMA ,000, % 60.3 n/d n/d 13.6x n/d n/d 6.7% 0.0% 0.0% 11.8x n/d n/d 61.0% 980 AGMA LAHLOU 3, , % n/d n/d 12.5x n/s n/s 8.1% 0.0% 0.0% 5.7x n/s n/s 39.0% 626 FOOD DISTRIBUTION 49.4% x 29.7x 25.9x 2.3% 1.7% 1.7% 2.5x 3.5x 3.2x 0.8% 5,096 LABEL' VIE 1, ,838, % x 29.7x 25.9x 2.3% 1.7% 1.7% 2.5x 3.5x 3.2x 100.0% 5,096 SPECIALIZED DISTRIBUTION -5.2% x 19.3x 17.1x 4.7% 3.9% 3.9% 2.7x 2.7x 2.6x 1.4% 8,995 AUTO HALL ,245, % x 26.3x 23.8x 5.5% 3.7% 3.2% 3.0x 2.8x 2.7x 52.0% 4,678 AUTO NEJMA 2, ,023, % x 15.7x 13.1x 3.8% 3.8% 4.6% 2.6x 2.8x 2.5x 25.5% 2,291 ENNAKL ,000, % x 13.2x 12.0x 4.5% 4.8% 5.2% 3.2x 2.6x 2.4x 16.8% 1,509 FENIE BROSSETTE ,438, % -7.3 n/d n/d n/s n/d n/d 0.0% n/d n/d 0.5x n/d n/d 2.6% 230 SRM , % 33.7 n/d n/d 8.2x n/d n/d 3.6% n/d n/d 0.6x n/d n/d 1.0% 92 STOKVIS ,195, % -1.7 n/d n/d n/s n/d n/d 0.0% n/d n/d 3.7x n/d n/d 2.2% 195 ELECTRICITY 14.4% x 18.8x 17.7x 4.7% 4.4% 4.5% 3.6x 3.9x 3.7x 3.3% 21,041 TAQA MOROCCO ,588, % x 18.8x 17.7x 4.7% 4.4% 4.5% 3.6x 3.9x 3.7x 100.0% 21,041 GAS 30.1% x 17.9x 16.9x 4.0% 3.5% 3.7% 5.3x 6.1x 5.3x 4.2% 26,457 AFRIQUIA GAZ 2, ,437, % x 18.0x 16.9x 4.0% 3.7% 3.9% 4.1x 4.1x 3.7x 37.0% 9,797 MAGHREB OXYGENE , % 13.0 n/d n/d 8.2x n/d n/d 3.8% n/d n/d 0.4x n/d n/d 0.4% 111 TOTAL MAROC 1, ,960, % x 17.9x 16.9x 4.0% 3.4% 3.5% 8.0x 8.8x 7.2x 62.6% 16,549 5

6 Key performance indicators (2/2) Value on EPS P/E D/Y P/B Capitalization SHARES Quantity of shares Perf /08/ E 2018E E 2018E E 2018E E 2018E in % MAD m HOLDING 13.9% x 14.4x 13.5x 4.1% 3.3% 3.6% 1.5x 1.6x 1.5x 0.5% 2,973 DELTA HOLDING ,600, % x 14.4x 13.5x 4.1% 3.3% 3.6% 1.5x 1.6x 1.5x 97.2% 2,891 ZELLIDJA , % 0.3 n/d n/d n/s n/d n/d n/d n/d n/d n/d n/d n/d 2.8% 82 HOTELS AND LEISURE 20.6% 6.4 n/d n/d 18.5x n/s n/s 0.0% n/s n/s 1.2x n/s n/s 0.3% 2,036 RISMA ,326, % 6.4 n/d n/d 18.5x n/d n/d 0.0% n/d n/d 1.2x n/d n/d 100.0% 2,036 REAL ESTATE -6.3% x 10.8x 9.8x 4.3% 5.6% 5.7% 1.2x 1.0x 1.0x 3.0% 18,795 ADDOHA ,557, % x 10.9x 10.4x 5.6% 7.2% 7.5% 1.2x 1.0x 1.0x 62.0% 11,651 ALLIANCES ,648, % x 20.6x 11.0x 0.0% 0.0% 0.0% 0.7x 1.8x 1.7x 16.2% 3,036 BALIMA ,744, % 5.8 n/d n/d 17.1x n/d n/d 4.4% n/d n/d 1.6x n/d n/d 0.9% 167 RDS ,208, % x 7.9x 7.8x 1.8% 5.1% 5.1% 1.3x 0.9x 0.8x 21.0% 3,942 INDUSTRIAL SERVICES 5.6% n/d n/d n/s n/s n/s 1.9% n/s n/s 3.7x n/s n/s 0.1% 386 DELATTRE LEVIVIER ,250, % 9.4 n/d n/d 20.1x n/d n/d 2.9% n/d n/d 1.0x n/d n/d 61.1% 236 MED PAPER ,582, % n/d n/d n/s n/d n/d 0.0% n/d n/d -2.3x n/d n/d 22.3% 86 STROC INDUSTRIE ,248, % n/d n/d n/s n/d n/d 0.0% n/d n/d -0.5x n/d n/d 16.6% 64 INDUSTRIAL TRANSPORTION 29.9% x 21.7x 22.1x 6.8% 2.2% 2.2% 3.2x 4.6x 4.1x 2.0% 12,251 CTM ,225, % 56.8 n/d n/d 10.7x n/d n/d 7.4% n/d n/d 2.4x n/d n/d 7.8% 956 MARSA MAROC ,395, % x 21.7x 22.1x 6.8% 2.2% 2.2% 3.4x 4.6x 4.1x 91.7% 11,230 TIMAR , % 7.7 n/d n/d 40.8x n/d n/d 0.0% n/d n/d 1.0x n/d n/d 0.5% 66 INFORMATION TECHNOLOGY 50.9% x n/s n/s 5.6% n/s n/s 1.5x n/s n/s 0.5% 2,904 DISWAY ,885, % x 11.5 x 10.0x 6.4% 6.0% 6.4% 1.1x 1.2x 1.1x 27.3% 792 HPS 1, , % x 16.8x 14.3x 4.5% 2.4% 2.8% 2.2x 3.9x 3.3x 38.8% 1,126 IB MAROC , % -8.8 n/d n/d n/s n/d n/d 0.0% n/d n/d 0.7x n/d n/d 1.8% 52 INVOLYS , % 19.8 n/d n/d 5.1x n/d n/d 0.0% n/d n/d 0.5x n/d n/d 1.9% 55 M2M GROUP , % 12.0 n/d n/d 25.8x n/d n/d 0.0% n/d n/d 1.5x n/d n/d 8.4% 244 MICRODATA ,680, % 23.8 n/d n/d 6.3x n/d n/d 11.0% n/d n/d 2.4x n/d n/d 14.5% 420 S2M , % 21.5 n/d n/d 9.9x n/d n/d 6.8% n/d n/d 2.3x n/d n/d 7.4% 216 ELECTRICS & ELECTRONICS 1.4% 7.5 n/d n/d 19.7x n/s n/s 2.7% n/s n/s 0.5x n/s n/s 0.1% 337 NEXANS MAROC ,243, % 7.5 n/d n/d 19.7x n/d n/d 2.7% n/d n/d 0.5x n/d n/d 100.0% 337 MINING 60.3% x 20.7x 26.3x 3.2% 2.4% 2.3% 2.8x 3.5x 3.3x 4.0% 25,425 MANAGEM 1, ,991, % x 22.2x 35.4x 2.1% 1.7% 1.4% 2.5x 3.4x 3.3x 68.3% 17,365 MINIERE TOUISSIT 1, ,681, % x 15.8 x 14.7x 3.6% 3.2% 3.4% 3.7x 3.8x 3.3x 10.2% 2,606 REBAB COMPANY , % n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d 0.1% 25 SM IMITER 3, ,645, % x 19.6x 18.3x 5.4% 4.3% 4.6% 3.2x 3.7x 3.6x 21.4% 5,429 TELECOMS -4.2% x 21.4x 20.8x 4.5% 4.7% 4.8% 8.1x 7.7x 7.6x 19.0% 119,601 MAROC TELECOM ,095, % x 21.4x 20.8x 4.5% 4.7% 4.8% 8.1x 7.7x 7.6x 100.0% 119,601 OIL 0.0% n/d n/d n/d n/s n/s n/s n/s n/s n/s n/s n/s n/s 0.2% 1,521 SAMIR ,899, % n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d 100.0% 1,521 PHARAMCEUTICAL 27.7% x 17.7x 15.4x 7.5% 4.2% 4.4% 3.3x 4.3x 3.9x 0.7% 4,259 PROMOPHARM 1, ,000, % x 20.0x 17.8x 12.2% 5.0% 5.6% 3.8x 6.3x 6.1x 36.4% 1,550 SOTHEMA 1, ,800, % x 16.6x 14.2x 4.7% 3.7% 3.7% 3.1x 3.6x 3.2x 63.6% 2,709 UTILITIES 9.3% x 16.9x 16.1x 4.2% 4.1% 4.4% 2.4x 2.5x 2.3x 0.8% 4,720 LYDEC ,000, % x 16.9x 16.1x 4.2% 4.1% 4.4% 2.4x 2.5x 2.3x 100.0% 4,720 FINANCIAL SERVICES 9.7% x n/s n/s 6.4% n/s n/s 1.5x n/s n/s 1.1% 6,899 DIAC SALAF ,053, % n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d n/d 0.4% 28 EQDOM 1, ,670, % x 13.2x 14.1x 8.5% 7.8% 8.1% 1.1x 1.2x 1.3x 26.9% 1,854 MAGHREBAIL ,384, % 89.3 n/d n/d 10.4x n/d n/d 5.1% n/d n/d 1.1x n/d n/d 19.0% 1,312 MAROC LEASING ,776, % 21.7 n/d n/d 17.9x n/d n/d 4.1% n/d n/d 1.3x n/d n/d 15.9% 1,097 SALAFIN ,394, % 57.8 n/d n/d 14.3x n/d n/d 7.0% n/d n/d 3.1x n/d n/d 30.1% 2,080 TASLIF ,472, % 1.8 n/d n/d 15.8x n/d n/d 6.1% n/d n/d 1.7x n/d n/d 7.7% 529 S: Suspended n/s = Not significant n/a = Not available Source: Companies, BMCE Capital Research 6

7 System of recommendations BMCE Capital Research uses an absolute system of recommendation. The recommendation for each stock is made according to the total return, which is the potential for increase (dividend payout and share buybacks included) within 12 months. BMCE Capital Research uses 5 recommendations: Buy, Accumulate, Hold, Reduce and Sell. In specific cases, for a short period, analysts can choose to suspend their opinion, in which case they use Suspended or Not monitored, terms which are defined below. Definition of the various recommendations Buy: the stock should generate a total gain of more than 20% within 12 months; Accumulate: the stock should generate a total gain ranging from 10% to 20% within 12 months; Hold: the stock should generate a total gain ranging from 0% to 10% within 12 months; Reduce: the stock should record a total drop ranging from 0% to -10% within 12 months; Sell: the stock should record a total drop of more than -10% within 12 months; Suspended / No recommendation: For ethical reasons, a capital transaction (takeover bid, exchange offer or other) or change of analyst; Not monitored: this is used for companies at the time of their IPO or initiating coverage report. Sell Lighten Hold Accumlate Buy -10% 0% +10% +20% This recommendation system is given as an indication. Analysts may diverge in case of an erratic or punctual price evolution on the stock market of a certain value. Thus, the change in recommendation is not systematic and can intervene, in some cases, only after an observation period allowing to confirm the trend of the share on the stock exchange. Methods of valuation This document may refer to the following methods of valuation: DCF: The discounted cashflow method determines the present value of the cashflows that the company will generate in the future. This method is based on estimates established using a certain number of assumptions. We take as the discount rate the weighted average cost of capital, which represents the cost of the company s debt and the cost of stockholders equity estimated by the analysis, weighted for the proportion of each in the company s financing. Sum of parts: This method values the company s different activities separately, on the basis of methods appropriate to each of them and then adds them up. Stock market comparisons: This method compares the company s ratios with those of a sample of companies in the same business or with a similar profile (the comparables ). The average of the sample gives a valuation reference. The analyst then applies a downside or an upside depending on their view of the company (growth prospects, level of returns, etc.). Anglo-Saxon: The Anglo-Saxon method determines the present value of post-acquisition net economic benefits which should be generated by the company in the future taking account of the minimum solvability ratio. 7

8 Headquarters: 63, Boulevard Moulay Youssef, Casablanca Morocco Phone: Fax: / Casablanca trade register No License No. 3/26 by the approval of the Ministry of Finance Contact information: Mr. Mohamed BENJELLOUN Trader Phone: / m.benjelloun@bmcek.co.ma Headquarters: Tour BMCE, Rond-Point Hassan II, Casablanca - Morocco Offices: 63, Boulevard Moulay Youssef, Casablanca Morocco Phone: Fax: Casablanca trade register No Disclaimer This document was prepared by BMCE Capital Research and published in accordance with current procedures. The content of this document comes from various reliable written sources but, in the event of damage resulting from the use of this information, is not binding on BMCE Capital Research, nor on BMCE Capital and nor on BMCE Capital Bourse, including in the case of lack of due care or negligence. BMCE Capital Research has established an organizational structure and procedures (or Chinese wall) designed to guarantee the independence of the financial analysts and the priority of customers interests. A black-out period is stipulated, running from the date of the beginning of drafting of the research memorandum until 3 months after its publication, during which time the financial analysts refrain from trading on their own account in shares in relation with the issuers and sectors they are monitoring. The information contained in this document and any opinion expressed in it do not under any circumstances encourage investment in the financial markets in general and in the Stock Exchange in particular. It is only given for information purposes and cannot be considered in any way as advice. In particular, any revenue from securities referred to in this analysis may fluctuate and the prices of securities may rise or fall. Investors may thus get back less than their initial investment and past performance is no guide to future performance. Currency exchange rates can have a negative effect on the value, price or revenues of the securities mentioned in this document. In addition, foreign investors who hold securities assume a foreign currency risk. This document was drawn up for clients and prospects of BMCE Capital and BMCE Capital Bourse. This document is intended for investors aware of the risks related to financial markets. If any individual should come into possession of this document, they should not make any investment decision solely on the basis of this document and should consult their own advisors. Investors should seek financial advice to ensure that the investment strategies examined or recommended in this document are appropriate and should understand that the opinions on the future prospects may not materialize. BMCE Capital Research, BMCE Capital and BMCE Capital Bourse individually and jointly decline any responsibility in terms of this document and give no guarantee as to the achievement of the targets and recommendations given herein, nor the accuracy or dependability of the information it contains. The information and explanations reproduced herein and the content are the exclusive property of BMCE Capital Research. It is strictly forbidden to copy, modify, reproduce, re-publish, distribute, display or pass on the content to an entity established under private law or public law, for profit or non-profit purposes, irrespective of the medium or means of communication and the good or bad faith of the entity performing any of the above-mentioned actions. The content is for individual, strictly personal use. It may not be used for any commercial purpose or end. There are no exceptions to these rules unless the entity duly considered to be the owner of the intellectual property rights of this content (BMCE Capital Research) so agrees. Any breach of these rules exposes the entity responsible for the breach to the relevant penal sanctions and the legal action necessary for the restoration of the rights of the authors and their compensation. Any disputes concerning these rules shall come under the jurisdiction of the courts of Casablanca. 8

9 NOTICE TO US INVESTORS This report was prepared, approved by BMCE CAPITAL RESEARCH S.A. and published and distributed by its affiliate BMCE CAPITAL BOURSE S.A. Both companies are located outside of the United States ( non-us Group Companies ). This report is distributed in the U.S. by LXM LLP USA, a U.S. registered broker dealer, on behalf of BMCE CAPITAL RESEARCH S.A. and BMCE CAPITAL BOURSE S.A. only to major U.S. institutional investors (as defined in Rule 15a-6 under the U.S. Securities Exchange Act of 1934 (the Exchange Act )) pursuant to the exemption in Rule 15a-6 and any transaction effected by a U.S. customer in the securities described in this report must be effected through LXM LLP USA. Neither the report nor any analyst who prepared or approved the report is subject to U.S. legal requirements or the Financial Industry Regulatory Authority, Inc. ( FINRA ) or other regulatory requirements pertaining to research reports or research analysts. No non-us Group Companies are registered as broker-dealers under the Exchange Act or are members of the Financial Industry Regulatory Authority, Inc. or any other U.S. self-regulatory organization. Analyst Certification. Each of the analysts identified in this report certifies, with respect to the companies or securities that the individual analyses, that (1) the views expressed in this report reflect his or her personal views about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly dependent on the specific recommendations or views expressed in this report. Please bear in mind that (i) BMCE CAPITAL RESEARCH S.A. is the employer of the research analyst(s) responsible for the content of this report and (ii) research analysts preparing this report are resident outside the United States and are not associated persons of any US regulated broker-dealer and that therefore the analyst(s) is/are not subject to supervision by a US broker-dealer, and are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with US rules or regulations regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account. Important US Regulatory Disclosures on Subject Companies. This material was produced by Analysis BMCE CAPITAL RESEARCH S.A. solely for information purposes and for the use of the recipient. It is not to be reproduced under any circumstances and is not to be copied or made available to any person other than the recipient. It is distributed in the United States of America by LXM LLP USA and elsewhere in the world by BMCE CAPITAL RESEARCH S.A. or an authorized affiliate of BMCE CAPITAL RESEARCH S.A., including BMCE CAPITAL BOURSE S.A. This document does not constitute an offer of, or an invitation by or on behalf of BMCE CAPITAL RESEARCH S.A. or its affiliates or any other company to any person, to buy or sell any security. The information contained herein has been obtained from published information and other sources, which BMCE CAPITAL RESEARCH S.A. or its Affiliates consider to be reliable. None of BMCE CAPITAL RESEARCH S.A. or BMCE CAPITAL BOURSE S.A. accept any liability or responsibility whatsoever for the accuracy or completeness of any such information. All estimates, expressions of opinion and other subjective judgments contained herein are made as of the date of this document. Emerging securities markets may be subject to risks significantly higher than more established markets. In particular, the political and economic environment, company practices and market prices and volumes may be subject to significant variations. The ability to assess such risks may also be limited due to significantly lower information quantity and quality. By accepting this document, you agree to be bound by all the foregoing provisions. LXM LLP USA assumes responsibility for the research reports content in regards to research distributed in the U.S. LXM LLP USA or its affiliates has not managed or co-managed a public offering of securities for the subject company in the past 12 months, has not received compensation for investment banking services from the subject company in the past 12 months, does not expect to receive and does not intend to seek compensation for investment banking services from the subject company in the next 3 months. LXM LLP USA has never owned any class of equity securities of the subject company. There are not any other actual, material conflicts of interest of LXM LLP USA at the time of the publication of this research report. As of the publication of this report LXM LLP USA, does not make a market in the subject securities. 9