Casablanca Stock Market An Overview

GDP changes (1980 market prices)

Budget deficit

Inflation

Historical Background CSE founded in 1929 Morocco resort to the World Bank & IMF CSE reform in 1993 Privatization program launched in 1993

1999: GSM License (11 bn MAD) 2001: Vivendi/Maroc Telecom (22 bn MAD) 2003: ALTADIS (15 bn MAD) Foreign Direct Investment

Weaknesses of The CSE Marginalisation of minority shareholders Free float estimated at only 15% Overdominance of commercial banks Quasi-absence of Trading (leverage, short sales)

61.54%

Morocco launched during 2003 an important euro-bond issue worth € 400 millions over a five year period The bond issue spread amounted to 215 bp The bond issue, contracted without any foreign guarantee and with a favorable risk premium, reflects the confidence of foreign investors on Morocco The proceeds of the bond issue financed servicing Morocco’s expensive debt S&P improved Morocco status from Neutral to Positive

Macro-economic environment Overview  In the last years, GDP growth was over 3% through the dependency reduction from agriculture.  Inflation is maintained at a low level thanks to economy liberalization “pricing and Free trade”.  Budget deficit was restrained thanks to privatization revenues. GDP changes (1980 market prices) Inflation 2002 GDP Break Down Budget Deficit