EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

First half-year 2013 Financial Report2013 Semi-Annual Report of the Board of Directors…………………………………2

Unaudited Condensed IFRS Consolidated Financial Information of EADS N.V.
for the six-month period ended 30 June 2013.……………..…………………….…...4

Appendix: Review report of the independent auditors

1

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 20132013 Semi-Annual Report of the Board of Directors

1. Semi-Annual Report on Activities
Main Events in the first half-year of 2013For an overview of the main events that occurred during the first half of 2013 and their impact
on the Unaudited Condensed IFRS Consolidated Financial Information of EADS for the sixmonth period ended 30 June 2013 (the “Semi-Annual Financial Statements”), please referto the press release, which will be issued on 31 July 2013, available on EADS’ websitewww.eads.com.
For further information and detail regarding EADS’ activities, finances, financing, risk factors
and corporate governance, please refer to EADS’ website www.eads.com and the
documents posted thereon.
Related Party Transactions
Please refer to the notes to the Semi-Annual Financial Statements attached hereto (see Note
12 “Related party transactions”).

2. Risk Factors
The aerospace and defence industry’s complex programmes, and its long-term
returns on investment delivered over volatile market cycles, amplify risk andopportunity. By systematically integrating enterprise risk management (ERM) acrossthe Group, EADS is mitigating risk and increasing opportunity, so supporting value
creation.
For a description of the Enterprise Risk Management system, the main risks anduncertainties, please refer to thea. EADS Report of the Board of Directors 2012 (sections 4.5 and 4.6)
( http://www.eads.com/dms/eads/int/en/investorrelations/documents/2013/AGM/2012-Report-of-the-Board-ofDirectors/2012%20Report%20of%20the%20Board%20of%20Directors.pdf ),b. EADS Registration Document 2012 (section “Risk Factors”)( http://www.eads.com/dms/eads/int/en/investorrelations/documents/2013/AGM/EADS-Annual-Review2012/EADS%20Annual%20Review%202012.pdf ), andc. EADS Corporate Responsibility & Sustainability Report 2012 (p14/15)( http://www.eads.com/dms/eads/int/en/our-responsibilities/CSR-Report/New-CRSReport/New%20CRS%20Report.pdf )230.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

3. Semi-Annual Financial Statements
The Semi-Annual Financial Statements, including the review report by Ernst & Young
Accountants LLP and KPMG Accountants N.V., are attached hereto.

4. Statement of the Board of Directors
The Board of Directors of EADS hereby declares that, to the best of its knowledge:(i) the Semi-Annual Financial Statements for the period ended 30 June 2013 give a true andfair view of the assets, liabilities, financial position and profits or losses of EADS andundertakings included in the consolidation taken as a whole; and(ii) this Semi-Annual Board Report (which includes the press release, which will be issued on
31 July 2013) gives a true and fair view of the position as per the balance sheet date, andof the development and performance during the first half of the 2013 financial year andexpected course of events of EADS and undertakings included in the consolidation taken
as a whole. This Semi-Annual Board Report has paid special attention to investments
and circumstances upon which the development of revenues and profitability isdependent, as these have been described herein.

30 July 2013,
The Board of Directors
Denis Ranque, Chairman
Dr. Thomas Enders, Chief Executive Officer
Manfred Bischoff, Director
Ralph D. Crosby, Director
Hans-Peter Keitel, Director
Hermann-Josef Lamberti, Director
Anne Lauvergeon, Director
Lakshmi N. Mittal, Director
Sir John Parker, Director
Michel Pébereau, Director
Josep Piqué i Camps, Director
Jean-Claude Trichet, Director

330.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the six-month period ended 30 June 2013
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…5
Unaudited Condensed IFRS Consolidated Income Statements for the second quarterof 2013 and 2012……………………………………………..……………………….………………......…6
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...7
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income for thethe second quarter 2013 and 2012………………………………………………………………………..8
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…9Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....………………10
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..…………….........11
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at 30 June 2013……….……………………….…………………..……....…………..…......…...........12
1. The Company…………………………………………………………………………………..……12
2. Accounting policies……………….………………………………………………..…..……........12
3. Acquisitions and other M&A transactions……….. ….……………………………………..…13
4. Segment information………………………………..………………………………..…….....…..13
5. EBIT pre-goodwill impairment and exceptionals…..……..…………………………….…….16
6. Significant income statement items………….…………………..………….……………........16
7. Significant items of the statement of financial position…….……………………...…........17
8. Significant cash flow items……………………………………………………..…...…..……….19
9. Financial instruments……………………………………………………………………………..19
10. Number of shares………………………………………….……………......................................23
11. Earnings per share……………………………………..……………….………...……...………..24
12. Related party transactions.………………..…………………...…….……………………..……24
13. Number of employees ……………………………….……………….……………..........………26
14. Litigation and claims …..…………………………….……………….……………..........………26
15. Subsequent events…………………………………………………………………………………27

4

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Unaudited Condensed IFRS Consolidated Income Statements

1 January 30 June 2013
Revenues
Cost of sales *)Gross margin *)Selling, administrative & otherexpenses *)Research and development
expenses
Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance result andincome taxes *)Interest income
Interest expense
Other financial result
Finance result
Income taxes *)Profit for the period *)Attributable to:Equity owners of the parent(Net income) *)Non-controlling interests

1 January 30 June 2012

Deviation

M€
26,332-22,169
4,163

%
100
-84
16

M€
24,934-21,222
3,712

%
100
-85
15

M€
1,398
-947
451

-1,523-6-1,460-6-63-1,414-5-1,425

-6

11

84

0

84

0

0

154

1

127

1

27

1,464
92
-264
-235
-407
-297
760

6
0
-1
-1
-2
-1
3

1,038
129
-272
-96
-239
-221
578

4
0
-1
0
-1
-1
2

426
-37
8
-139
-168
-76
182

759
1

3
0

579
-1

2
0

180
2

Earnings per share

€

€

€

Basic and diluted *)

0.94

0.71

0.23

*) Previous year’s figures are adjusted due to revised IAS 19.

530.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Unaudited Condensed IFRS Consolidated Income Statements for the second
quarter of 2013 and 2012
1 April - 30 June 2013

Revenues
Cost of sales *)Gross margin *)Selling, administrative & otherexpenses *)Research and development
expenses

1 April - 30 June 2012

DeviationM€
13,945-11,529
2,416

%
100
-83
17

M€
13,530-11,472
2,058

%
100
-85
15

M€
415
-57
358

-821

-6

-775

-6

-46

-790

-6

-699

-5

-91

26

0

40

0

-14

Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance result andincome taxes *)Interest income
Interest expense
Other financial result
Finance result
Income taxes *)Profit for the period

47

0

91

1

-44

878
49
-135
-70
-156
-205
517

6
0
-1
-1
-1
-1
4

715
49
-119
-26
-96
-169
450

5
0
-1
0
-1
-1
3

163
0
-16
-44
-60
-36
67

Attributable to:Equity owners of the parent(Net income) *)Non-controlling interests

518
-1

4
0

453
-3

3
0

65
2

Earnings per share

€

€

€

Basic and diluted *)

0.64

0.55

0.09

*) Previous year’s figures are adjusted due to revised IAS 19.

630.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Incomein M €
Profit for the period*)

1 January 30 June 2013

1 January 30 June 2012

760

578

-349

-809

Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit plans*)
Actuarial losses on defined benefit plans from investments
using the equity method

5-86

Tax on items that will not be reclassified to profit or loss*)

96

240

43

18

Net change in fair value of cash flow hedges-573-1,290Net change in fair value of available-for-sale financial assets

-53

113

Items that will be reclassified to profit or loss:
Foreign currency translation differences for foreign operations

Changes in other comprehensive income from investments accounted forusing the equity method

10

-114

Tax on items that will be reclassified to profit or loss

187

402

Other comprehensive income, net of tax *)-634-1,526

Total comprehensive income of the period

126

-948

132
-6
126

-945
-3
-948

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period*) Previous year’s figures are adjusted due to revised IAS 19.

7

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income for the second quarter 2013 and 2012
1 April 30 1 April 30
June 2013
June 2012

in M €
Profit for the period*)

517

450

-349

-820

using the equity method

13

-71

Tax on items that will not be reclassified to profit or loss*)

96

243

-72

64

1,298

-2,963-42-26

Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit plans*)
Actuarial losses on defined benefit plans from investments

Items that will be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges
Net change in fair value of available-for-sale financial assets
Changes in other comprehensive income from investments accounted forusing the equity method

-19

-27

Tax on items that will be reclassified to profit or loss

-376

951

Other comprehensive income, net of tax *)549-2,649Total comprehensive income of the period

1,066-2,199

1,071
-5
1,066

-2,195-4-2,199Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period*) Previous year’s figures are adjusted due to revised IAS 19.

830.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Unaudited Condensed IFRS Consolidated Statements of Financial PositionNon-current assets
Intangible assets
Property, plant and equipment
Investments in associates under theequity method
Other investments and long-term
financial assets
Other non-current assets
Deferred tax assets *)Non-current securities
Current assets
Inventories
Trade receivables
Other current assets
Current securities
Cash and cash equivalents
Total assets
Total equity
Equity attributable to equity owners of
the parent
Capital stockReserves *)Accumulated other comprehensive
incomeTreasury shares
Non-controlling interests
Non-current liabilities
Non-current provisions *)Long-term financing liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current tax liabilities
Other current liabilities
Total liabilities
Total equity and liabilities

30 June 2013
M€%

31 December 2012
M€%

DeviationM€%

13,597
15,41215
17

13,422
15,268

15
16

175
144

1
1

2,748

3

2,662

3

86

3

2,024

2

2,115

2

-91

-4

2,539
4,753
4,479
45,552

3
5
5
50

2,801
4,523
5,987
46,778

3
5
7
51

-262
230
-1,508-1,226

-9
5
-25
-3

27,070
6,610
4,275
3,007
5,148
46,11091,662

30
7
4
3
6
50
100

23,216
6,790
4,239
2,328
8,756
45,32992,107

25
7
4
3
10
49
100

3,854
-180
36
679
-3,608
781
-445

17
-3
1
29
-41
2
0

785
6,490

1
7

827
8,147

1
8

-42
-1,657

-5
-20

1,134

1

1,513

2

-379

-25

-128
8,281
47
8,328

0
9
0
9

-84
10,40325
10,428

0
11
0
11

-44
-2,12222-2,100

52
-20
88
-20

10,1304,509
1,604
18,347
34,590

11
5
2
20
38

9,827
3,506
1,504
18,19433,031

11
4
2
19
36

303
1,003
100
153
1,559

3
29
7
1
5

5,403
2,192
9,582
466
31,101
48,744
83,334
91,662

6
2
10
1
34
53
91
100

6,045
1,273
9,917
458
30,95548,64881,67992,107

7
1
11
0
34
53
89
100

-642
919
-335
8
146
96
1,655
-445

-11
72
-3
2
0
0
2
0

*) Previous year’s figures are adjusted due to revised IAS 19.

930.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Unaudited Condensed IFRS Consolidated Statements of Cash Flows
1 January 30 June 2013
M€
Profit for the period attributable to equity owners of the parent (Net income)*)1 January 30 June 2012
M€
759

579

1

-1

Depreciation and amortization

895

913

Valuation adjustments*)

340

242

Deferred tax expense

144

117

Profit (loss) for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash (used for) operating activities

Change in income tax assets, income tax liabilities and provisions for income tax

-8

-32

Results on disposals of non-current assets

-1

-21

Results of companies accounted for by the equity method

-120

-97

Change in current and non-current provisions*)

-204

429

Reimbursement from / contribution to plan assets

-24

-320

Change in other operating assets and liabilities-4,452-2,808Cash (used for) operating activities-2,670-999-1,407-1,168- Proceeds from disposals of intangible assets, PPE

2777- Acquisitions of subsidiaries and joint ventures (net of cash)

-13

-5

- Payments for investments in associates and otherinvestments and long-term financial assets

-256

-92

- Proceeds from disposals of associates and otherinvestments and long-term financial assets

90

73- Dividends paid by companies valued at equity

49

43

Change of securities

771

1,961

Cash (used for) provided by investing activities

-739

889

Change in long-term and short-term financing liabilities

2,002

302

Cash distribution to EADS N.V. shareholders

-467

-369

Dividends paid to non-controlling interests-1-2

Changes in capital and non-controlling interests

130

87

Investments:- Purchases of intangible assets, PPE

Change in treasury shares-1,828-5

Cash (used for) provided by financing activities
Effect of foreign exchange rate changes and other valuation adjustments on cash
and cash equivalents

-164

13

-35

57

Net decrease of cash and cash equivalents-3,608-40

Cash and cash equivalents at beginning of period

8,756

5,284

Cash and cash equivalents at end of period

5,148

5,244

*) Previous year’s figures are adjusted due to revised IAS 19

1030.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

As of 30 June 2013, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 335 M € (374 M € as of 31
December 2012), which represents EADS’ share in MBDA’s cash and cash equivalents deposited atother shareholders. These funds are available for EADS upon demand.

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity

Balance at 1 January 2012

Equityattributable to Non-controlling
equity owners ofinterests
the parent
8,850
15

Retrospective adjustment *)

-7

0

-7

8,843

15

8,858

579

-1

578

-1,524-2-1,526

Total comprehensive income
Dividends to non-controlling interests
Capital increase

-945
-369
87

-3
-2
0

-948
-371
87

Equity transactions (IAS 27)

-15

10

-5

Change in treasury shares

-5

0

-5

Others18

018

Balance at 30 June 2012

7,596

20

7,616

Balance at 1 January 2013

10,40925

10,434Retrospective adjustment *)

-6

0

-6

10,40325

10,428in M €

Balance at 1 January 2012, adjusted
Profit for the period *)Other comprehensive income *)Balance at 1 January 2013, adjusted

total
8,865

Profit for the period

759

1

760

Other comprehensive income

-627

-7

-634

Total comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Capital increase

132

-6

126

-467

-1

-468

157

3

160

Equity transactions (IAS 27)

-117

26

-91

Change in treasury shares-1,8280-1,828OthersBalance at 30 June 2013

1

0

1

8,281

47

8,328

*) Previous year’s figures are adjusted due to revised IAS 19.

11

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 30 June 2013
1. The Company
The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present theoperations of European Aeronautic Defence and Space Company EADS N.V. and its
subsidiaries (“EADS” or the “Group”), a Dutch public limited liability company (Naamloze
Vennootschap) legally seated in Amsterdam (current registered office at Mendelweg 30, 2333 CS
Leiden, The Netherlands), and are prepared and reported in Euros (“€”). EADS’ core business isthe manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the six-month period ended 30 June 2013 were authorized for issue by
EADS’ Board of Directors on 30 July 2013.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) issued by the International
Accounting Standards Board (“IASB”) and as endorsed by the European Union (EU) as at 30 June2013 and Part 9 of Book 2 of the Netherlands Civil Code. They comprise (i) IFRS, (ii) International
Accounting Standards (“IAS”) and (iii) Interpretations originated by the IFRS Interpretations
Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
These Unaudited Condensed IFRS Interim Consolidated Financial Statements should be read in
conjunction with EADS’ Consolidated Financial Statements as of 31 December 2012. Except for
the amended Standards to be applied for the first time in the first six months 2013 (mentioned
below in the next section), EADS’ accounting policies and techniques are unchanged compared to
31 December 2012.
Financial reporting rules applied for the first time in the first six months 2013:
The following new, revised or amended Standards were applied for the first time in the first six
months 2013 and are effective for EADS as of 1 January 2013. If not otherwise stated, their first
application has not had a material impact on EADS’ Consolidated Financial Statements as well as
its basic and diluted earnings per share.
The IASB issued amendments to IAS 12 “Income Taxes” providing practical guidance for themeasurement of deferred tax relating to an asset by introducing the presumption that recovery of
the carrying amount of that asset will normally be through sale. Amendments supersede SIC 21“Income Taxes – recovery of Revalued Non Depreciable Assets”.
Amended version of IAS 19 “Employee Benefits” requires full recognition of actuarial gains andlosses directly in equity, a method already used by EADS. Furthermore, the revised standard
introduces a net interest approach, under which for defined benefit obligation and plan assets thesame interest rate is applied, and it requires past service costs to be fully recognized in the periodof the related plan amendment. Also, the amendments will henceforth require EADS to recognize
the additional compensation payable under certain German early retirement programs(‘Altersteilzeitprogramme’) rateably over the active service period of such programs. Applying the12

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

amended standard retrospectively in 2013, EADS’ consolidated opening net equity as of 1 January
2012 has been adjusted by -7 M €. Comparative consolidated statement of income for the first six
months 2012 have been restated leading to an impact of -21 M € on profit before finance result
and income taxes and -15 M € on profit for the period. The impact on comparative basic anddiluted earnings per share for the first six months 2012 amounts to -0.02 €.
Amendments to IAS 1 “Presentation of Items of Other Comprehensive Income” require separate
presentation of items of other comprehensive income that are reclassified subsequently to profit orloss (recyclable) and those that are not reclassified to profit or loss (non-recyclable).
Amendments to IFRS 7 “Financial Instruments: Disclosures” define IASB’s disclosure
requirements in the context of offsetting financial assets and financial liabilities.
New IFRS 13 “Fair Value Measurement” defines fair value, sets out in a single IFRS a framework
for measuring fair value and requires disclosures about fair value measurement. As EADS has
already considered in previous years credit/ debit value adjustments as the counterparty risk
recognized in the fair values of its derivative financial instruments, the application of IFRS 13 does
not lead to any material changes in this respect.
The IASB issued various amendments to IFRS Standards within the Annual Improvements 20092011 Cycle, which have become applicable as of 1 January 2013. The amendments refer to IFRS
1, IAS 1, IAS 16, IAS 32 and IAS 34.

3. Acquisitions and other M&A transactions
On 31 January 2013, ST Aerospace Ltd., Singapore (Singapore) acquired a 35% non-controllinginterest in Elbe Flugzeugwerke, Dresden (Germany) (EFW). EADS as the former sole shareholder
retains 65% of the shares of EFW.
On 1 March 2013, Cassidian terminated its Joint Venture with Odebrecht Group by selling its 50%
share to Odebrecht Defesa e Tecnologia SA, Sao Paolo (Brazil).
On 17 May 2013, Cassidian Cybersecurity SAS, Elancourt (France) acquired a 83.9% controllinginterest in Arkoon Network Security SA, Lyon (France). On 14 June 2013 Cassidian Cybersecurity
SAS made a mandatory simplified public offering on the remaining shares of Arkoon Network
Security. The term of acceptance for this offer ended on 4 July 2013. (Please refer to Note 14“Subsequent events”.)
On 31 May 2013, Astrium Services GmbH, Ottobrunn (Germany) acquired remaining noncontrolling interest of 24.9% in ND Satcom GmbH, Immenstaad (Germany) from SES S.A.,
Betzdorf (Luxemburg).
The transactions above are considered to have no material impact on EADS’ consolidated
financial statements.

4. Segment information
The Group operates in five reportable segments which reflect the internal organizational andmanagement structure according to the nature of the products and services provided.

13

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

 Airbus Commercial — Development, manufacturing, marketing and sale of commercial jet
aircraft of more than 100 seats; aircraft conversion and related services. Additionally, thedevelopment, manufacturing, marketing and sale of regional turboprop aircraft and aircraftcomponents are reclassified from “Other Businesses” and are from the 1 January 2013 onwards
managed by Airbus Commercial.
 Airbus Military — Development, manufacturing, marketing and sale of military transport aircraft
and special mission aircraft and related services.
The reportable segments Airbus Commercial and Airbus Military form the Airbus Division.
 Eurocopter — Development, manufacturing, marketing and sale of civil and military helicopters;
provision of helicopter related services.
 Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers; provision of space related services.
 Cassidian — Development, manufacturing, marketing and sale of missiles systems, military
combat aircraft and training aircraft; provision of defence electronics and of global security
market solutions such as integrated systems for global border security and securecommunications solutions and logistics; training, testing, engineering and other related services.
The following table presents information with respect to the Group’s business segments. As a rule,inter-segment transfers are carried out on an arm’s length basis. After the reclassification of ATRgroup and Sogerma group to “Airbus Commercial”, “Other Businesses” comprises the Group’s
activities managed in the US. Combined together with consolidation effects, the holding function of
EADS Headquarters and other activities not allocable to the reportable segments, they aredisclosed in the column “Others/ HQ / Conso.”.

14

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

in M €

AirbusCommercial

AirbusMilitary

Eurocopter

Astrium

CassidianTotalsegments

Others/
HQ/
Conso.

Consolidated

Year ended 30 June 2013
Total revenues

18,235

1,067

2,584

2,808

2,286

26,980241

27,221

Internal revenues

-415

-118

-245

-6

-91

-875

-14

-889

17,820

949

2,339

2,802

2,195

26,105

227

26,332-1,096

-9

-143

-51

-112

-1,411-3-1,414

1,080

9

127

121

83

1,420

44

1,464

1,092

10

128

123

86

1,439

44

1,483

Revenues
Research anddevelopment
expensesProfit before financeresult and income
taxes
EBIT pre-goodwill
imp. and exceptionals(see definition below)
Finance result-407

Income taxes-297

Profit for the period

760Year ended 30 June 2012
Total revenues

16,864

843

2,771

2,661

2,186

25,325351

25,676

Internal revenues

-124

-243

-263

-4

-94

-728

-14

-742

Revenues **)16,740

600

2,508

2,657

2,092

24,597337

24,934

Research anddevelopment
expenses **)-1,123

-7

-131

-54

-101

-1,416-9-1,425

Profit before financeresult and income
taxes *), **)

546

1

197

127

78

949

89

1,038

EBIT pre-goodwill
imp. and exceptionals(see definition below)*), **)

558

2

198

129

81

968

89

1,057

Finance result-239

Income taxes-221

Profit for the period

578*) Previous year’s figures are adjusted due to revised IAS 19.
**) Previous year’s figures are adjusted due to the inclusion of ATR group and Sogerma group into Airbus Commercial andthe remaining activities of ‘Other Businesses’ into ‘Others/ HQ/ Conso.’.

15

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

5. EBIT pre-goodwill impairment and exceptionals
EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic
performance. The term “exceptionals” refers to such items as depreciation expenses of fair value
adjustments relating to the EADS merger, the Airbus combination and the formation of MBDA, as
well as impairment charges thereon. It also comprises disposal impacts related to goodwill and fairvalue adjustments from these transactions. EBIT pre-goodwill impairment and exceptionals is
treated by management as a key indicator to measure the segments’ economic performances.
The reconciliation from profit before finance result and income taxes to EBIT pre-goodwill
impairment and exceptionals is set forth in the following table (in M €):1 January 30 June 2013

in M €
Profit before finance result and income taxes *)1 January 30 June 2012

1,464

1,038

19

19

1,483

1,057

Goodwill and exceptionals:
Exceptional depreciation/ disposal (fixed assets in cost of sales)
EBIT pre-goodwill impairment and exceptionals*)*) Previous year’s figures are adjusted due to revised IAS 19.

6. Significant income statement items
Revenues of 26,332 M € (first half-year 2012: 24,934 M €) increase by +1,398 M €, mainly at
Airbus Commercial (+1,371 M €). Except for Eurocopter, all segments contributed positively to theincrease of revenues.
The Gross margin increases by +451 M € to 4,163 M € compared to 3,712 M € (adjusted) in thefirst half-year 2012. This improvement is mainly related to better performance of the long range
and single aisle programs (including positive volume effects and better pricing) in Airbus
Commercial and lower expenses for A380 wing rib provisioning, partly compensated by negative
currency one-offs at Airbus Commercial compared to 2012. Contractually, Airbus Commercial is
not liable versus airlines for loss of use, revenue or profit or for any other direct, incidental orconsequential damages related to wing ribs issue. However, in view of overall commercial
relationships, contracts adjustments may occur, and be considered on a case by case basis. The
A350 XWB Entry Into Service is scheduled for the second half of 2014. Airbus continues to makesignificant progress on the A350 XWB programme. Since the first flight in June, the entire flightenvelope has been cleared and first tests of all major aircraft systems successfully performed.
Airbus is now entering the most critical phase of the A350 programme. The industrial ramp-up
preparation is underway and risks related to the ramp-up are being closely monitored in line withthe schedule, aircraft performance and overall cost envelope.
Research and development expenses decrease by +11 M € to -1,414 M € (first half-year 2012:-1,425 M €) mainly reflecting a decrease for the A380 and the A350XWB following the start of thecapitalization of development cost as of 1 April 2012 partly compensated by higher expenses for
the Single Aisle program.

16

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Share of profit from associates under the equity method and other income frominvestments of 154 M € (first half-year 2012: 127 M €) mainly consists of the share of the result ofDassault Aviation of 101 M € (first half-year 2012: 89 M €). The Dassault Aviation equity
accounted-for income in the first half-year 2013 includes a positive catch-up on 2012 results.
Finance result amounts to -407 M € (first half-year 2012: -239 M €) comprising interest result of-172 M € (first half-year 2012: -143 M €). Other financial result amounts to -235 M € (first half-year
2012: -96 M €) and mainly includes the negative impact from foreign exchange valuation ofmonetary items (-117 M €, first half-year 2012: +57 M €) and the effects from the unwinding of
discounted provisions (-69 M €, first half-year 2012: -82 M €).
The income tax expense of -297 M € (first half-year 2012 adjusted: -221 M €) corresponds to aneffective income tax rate of 28% (first half-year 2012: 28%).

7. Significant items of the statement of financial positionNon-current assets
Intangible assets of 13,597 M € (prior year-end: 13,422 M €) include 11,002 M € (prior year-end:
11,003 M €) of goodwill. This mainly relates to Airbus Commercial (6,672 M €), Cassidian(2,722 M €), Astrium (1,231 M €) and Eurocopter (314 M €). The last annual impairment tests
were performed in the fourth quarter of 2012. No triggering event for an impairment test has been
identified during the first half-year 2013. Capitalization for development costs of the A350 XWB
programme started in the second quarter 2012. In the first six months of 2013, an amount of
130 M € has been capitalized resulting in a total amount of 495 M €.
Eliminating foreign exchange-rate effects of -144 M €, property, plant and equipment increaseby +288 M € to 15,412 M € (prior year-end: 15,268 M €), including leased assets of 545 M € (prioryear-end: 576 M €). The increase is mainly driven by the A350 programme. Property, plant andequipment also comprise “Investment property” amounting to 75 M € (prior year-end: 72 M €).
Investments in associates under the equity method of 2,748 M € (prior year-end: 2,662 M €)mainly include the equity investment in Dassault Aviation. The equity investment in Dassault
Aviation includes an IFRS catch-up adjustment for income and other comprehensive income
relating to prior period.
Other investments and other long-term financial assets of 2,024 M € (prior year-end:
2,115 M €) are related to Airbus for an amount of 1,202 M € (prior year-end: 1,288 M €), mainly
concerning the non-current portion of aircraft financing activities.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The decrease by -262 M € to 2,539 M € (prior year-end: 2,801 M €) ismainly caused by the negative variation of the non-current portion of fair values of derivative
financial instruments (-348 M €), partly compensated by higher prepaid expenses (+119 M €).
Deferred tax assets increase by +230 M € to 4,753 M € (prior year-end adjusted: 4,523 M €).
The fair values of derivative financial instruments are included in other non-current assets(849 M €, prior year-end: 1,197 M €), in other current assets (248 M €, prior year-end: 321 M €), inother non-current liabilities (1,314 M €, prior year-end: 1,159 M €) and in other current liabilities(848 M €, prior year-end: 852 M €) which corresponds to a total net fair value of -1,065 M € (prioryear-end: -493 M €). The volume of hedged US dollar-contracts decreases from 83.6 billion US
dollar as at 31 December 2012 to 82.1 billion US dollar as at 30 June 2013. The US dollar spot

17

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

rate is USD/ € 1.31 at 30 June 2013 vs. 1.32 at 31 December 2012. The average US dollar hedge
rate for the hedge portfolio of the Group improves from 1.35 USD/ € as at 31 December 2012 to1.34 USD/ € as at 30 June 2013.

Current assets
Inventories of 27,070 M € (prior year-end: 23,216 M €) increase by +3,854 M €. This is mainly
driven by higher unfinished goods and services at Airbus (+2,038 M €), Eurocopter (+514 M €) andCassidian (+358 M €), as well as higher aircraft on stock at Airbus (+601 M €) and Eurocopter(+92 M €).
Trade receivables decrease by -180 M € to 6,610 M € (prior year-end: 6,790 M €), mainly caused
by Cassidian (-234 M €), Astrium (-97 M €) and Eurocopter (-67 M €), partly offset by Airbus(+195 M €).
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The increase of +36 M € to
4,275 M € (prior year-end: 4,239 M €) comprises among others an increase of VAT receivables(+212 M €), partly offset by a decrease of receivables from related companies (-93 M €) and of
financial instruments (-73 M €).
Cash and cash equivalents decrease from 8,756 M € to 5,148 M € (see also note 8 “Significant
cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 8,281 M € (prior year-end adjusted: 10,403 M €). The decrease is mainly due to a purchase oftreasury stock of -1,828 M € following the implementation of the announced share buy-backprogramme, a cash distribution to shareholders of -467 M € (corresponding to 0.60 € per share),other comprehensive income of -627 M €, partly compensated by a net income of +759 M €.
Non-controlling interests increase to 47 M € (prior year-end: 25 M €), mainly due to the EFW
transaction.

Non-current liabilities
Non-current provisions of 10,130 M € (prior year-end adjusted: 9,827 M €) include the noncurrent portion of pension provisions which increases by +322 M € to 6,480 M € (prior year-end
adjusted: 6,158 M €).
Moreover, other provisions are included in non-current provisions, which decrease by -19 M € to
3,650 M € (prior year-end adjusted: 3,669 M €).
Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions
increase by +1,003 M € to 4,509 M € (prior year-end: 3,506 M €). This increase is mainly affectedby the issuance of an inaugural 1 billion US dollar bond with a 10-year maturity placed U.S.
institutional market on 9 April 2013. The bonds will pay a fixed coupon of 2.7%. Further, EIB loans
in the amount of 406 M US dollar were issued.

18

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, increase in total by +153 M € to 18,347 M €(prior year-end: 18,194 M €), mainly due to an increase of fair values for financial instruments(+155 M €).

Current liabilities
Current provisions decrease by -642 M € to 5,403 M € (prior year-end: 6,045 M €) and comprisethe current portions of pensions (323 M €) and of other provisions (5,080 M €).
Short-term financing liabilities increase by +919 M € to 2,192 M € (prior year-end: 1,273 M €),mainly due to transactions related to the commercial paper programme.
Trade liabilities decrease by -335 M € to 9,582 M € (prior year-end: 9,917 M €), mainly at Astrium(-113 M €), at Cassidian (-90 M €), at Eurocopter (-87 M €) and at Airbus (-76 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +146 M € to 31,101 M € (prior year-end: 30,955 M €).

8. Significant cash flow items
Cash (used for) operating activities decreases by -1,671 M € to -2,670 M € (first half-year 2012:-999 M €). Gross cash flow from operations (before changes in other operating assets andliabilities) of +1,782 M € decreases compared to the prior period’s level (first half-year 2012:+1,809 M €). Changes in other operating assets and liabilities amount to -4,452 M € (first half-year
2012: -2,808 M €), mainly reflecting an increase in inventories due to delivery phasing and aramp-up for new programmes at Airbus and Eurocopter.
Cash (used for) provided by investing activities amounts to -739 M € (first half-year 2012:+889 M €). This mainly comprises purchases of intangible assets and property, plant andequipment of -1,407 M € (first half-year 2012: -1,168 M €) (mainly in Airbus) and changes insecurities of +771 M € (first half-year 2012: +1,961 M €).
Cash (used for) provided by financing activities decreases by -177 M € to -164 M € (first halfyear 2012: +13 M €). This mainly comprises changes in treasury shares of -1,828 (first half-year
2012: -5 M €) and a cash distribution to shareholders of -467 M € (first half-year 2012: -369 M €),nearly compensated by changes in long-term and short-term financing liabilities of +2,002 M €(please refer to Note 7 “Significant items of the statement of financial positions”) (first half-year
2012: +302 M €) and by changes in capital and non-controlling interests of +130 M € (first halfyear 2012: +87 M €), mainly due to the exercise of stock options.

9. Financial instruments
The fair value of a financial instrument is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement
date. Fair values of financial instruments have been determined with reference to available market
information at the end of the reporting period and the valuation methodologies discussed below.
Considering the variability of their value-determining factors and the volume of financial

19

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

instruments, the fair values presented herein may not be indicative of the amounts that the Group
could realise in a current market environment.
The following table presents the carrying amounts and fair values of financial instruments as of
30 June 2013:30 June 2013

Financial Instruments
Total

in M €
AssetsBook Value

Other investments and other long-term financial
assets- thereof at amortised cost
- thereof at cost
- thereof Fair value via OCI
Current portion of other long-term financial
assetsNon-current and current other financial assets
Trade receivables
Non-current and current securities
Cash and cash equivalents
Total

Fair Value

1,366
381
277
254

1,366

2,252
6,610
7,486
5,148
23,774

2,252
6,610
7,486
5,148
23,393-6,701-9,665-9,582-25,948-6,913-9,6652)-9,582-26,160

1)

277
254

Liabilities
Long-term and short-term financing liabilities
Non-current and current other financial liabilities
Trade liabilities
Total

1)
2)

Fair value not reliably measurable
The European Governments refundable advances of 6,259 M € are measured at amortised cost; a fairvalue cannot be measured reliably due to their risk sharing nature and uncertainty about the repayment
dates. They may be reassessed as relating programmes approach the end of the production.

For the fair value measurement of financial instruments EADS generally applied the same
methodologies as described in detail in note 34 b) to the 2012 Consolidated Financial Statements.

20

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

The following table allocates the financial assets and liabilities measured at fair value to the threelevels of the fair value hierarchy as of 30 June 2013:30 June 2013
In M €

Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
Financial assets measured at fair value
through profit or loss

1,530

89

34

1,653

Derivative financial instruments for hedge
relations

-

980

8

988

Available for Sale financial assets

9,094

138

-

9,232

Total

10,6241,207

42

11,873Financial liabilities measured at fair value
through profit or loss and earn-out liabilities

-

-194

-50

-244

Derivative financial instruments for hedge
relations--1,968--1,968

Written put
interests

-

-

-132

-132

-

-2,162-182-2,344

Financial liabilities measured at fair value

optionson

non-controlling

Total

21

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

The development of financial instruments of Level 3 is as follows:
Total gains or losses
inFinancialassets andliabilities on
Level 3

Balanceat
1 January
2013

profit or
loss

41

-7

-

-

-

-

-

34

8
49

-7

-

-

-

-

-

8
42

-5

-

-

-

-

5

-

0

1)

2

-

-

-

-

-

-50

-57

1
3

-

-

-101
-101

5

-32
-32

2)

-132
-182

other
comprePurReclassihensive
income chases Issues Settlements fication

Balanceat 30 June2013

Financial assets
Financial assets
measured at fairvalue throughprofit or loss
Financial
instruments forhedge relations
Total

Financialliabilities
Financial
instruments forhedge relations
Earn- out
liabilities
Written put
options on noncontrollinginterest

Total

1)

-52

52 M € of earn-outs for entities acquired in 2012 have been recorded within Other Provisions of 2012
Financial Statements and have been reclassified to Level 3 financial liabilities at fair value through profit
or loss.

2)

Reclassification of 32 M € for written put option on non-controlling interests from financial liabilities
recognized at amortised cost.

The fair value of securities included in available-for-sale investments (mainly bonds and money
market funds) is determined by reference to their quoted market price at the end of the reporting
period (level 1). If a quoted market price is not available, fair value is determined on the basis ofgenerally accepted valuation methods on the basis of market information available at the end of
the reporting period (level 2).
EADS determines Level 2 fair values for derivative financial instruments for hedge relations using
recognised valuation techniques such as option pricing models and discounted cash flow models.
The valuation is based on market data such as currency rates, interest rates and credit spreads aswell as price and rate volatilities obtained from recognised vendors of market data.
Financial instruments are classified as Level 3 if their valuation incorporates inputs that are notbased on observable market data, and if the unobservable element has a significant impact on thefair value.
Financial Assets classified as Level 3
The Financial assets measured at fair value that are classified as Level 3 mainly consist of shortterm commodity contracts whose notional amounts vary with the actual volumes of certain

22

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

commodity purchases made by the Group in specific months. For fair value measurement
purposes, the notional amounts, being the unobservable input, are set with reference to monthly
commodity volumes that management expects to purchase based on planning forecasts. The fairvalues are otherwise determined using observable market data including quoted interest rates andpricing information obtained from recognised vendors of market data.
A deviation of 10% of actual monthly volumes purchased from expected monthly volumes
purchased would increase or decrease (depending on whether actual volumes are 10% more or
10% less than expected volumes) the total Level 3 fair value of these short term commodity
contracts by 3 M €.
Financial Liabilities classified as Level 3
The Financial liabilities measured at fair value that are classified as Level 3 consist of several
written put options on non-controlling interest (“NCI puts”) of EADS subsidiaries. The fair values ofthese NCI puts (ie the net present value of their redemption amount on exercise) are derived froma discounted cash flow analysis of the latest operating planning figures of the respective entities.
The fair value measurements are performed on an annual basis in line with the operative planning
cycle. For interim financial statements an analysis of the input parameters is performed for
determination of significant changes since the last measurement date that would call for an
adjustment of the value of the put options.
Apart from the detailed five-year operating planning figures, there are two unobservable inputs thatsignificantly affect the values of the NCI puts: the weighted average cost of capital (”WACC”) used
to discount the forecasted cash flows and the growth rate used to determine the terminal value. An
increase (decrease) of the discount rates by 100 basis points results in a decrease (increase) of
the NCI put values by 21 M € (29 M €). An increase (decrease) in the growth rates by 100 basis
point decreases (increases) the NCI put values by 16 M € (22 M €) respectively.
Another element of financial liabilities measured at fair value classified as Level 3 are earn-out
payments that have been agreed with former shareholders of entities acquired by EADS in
business combinations. Fair Value measurement is based on the expectation regarding theachievement of defined target figures by the acquired entity or its ability to close identified
customer contracts.

10. Number of shares
The total number of shares outstanding is 778,297,504 and 819,057,104 as of 30 June 2013 and2012, respectively. The decrease is mainly affected by the share buy-back programme comprising
48,713,535 shares in the first six months 2013. EADS’ shares are exclusively ordinary shares witha par value of 1.00 €.
During the first half-year 2013, the number of treasury shares held by EADS increased from
5,226,305 as of 31 December 2012 to 6,291,260 as of 30 June 2013. Shares in the amount of
47,648,691, which were bought back from the market in the first six months 2013, have been
already cancelled.
In the first half-year 2013, EADS issued 4,869,510 new shares due to the exercise of stock options(in the first half-year 2012: 4,358,124 new shares).

2330.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

11. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
owners of the parent (Net income) by the weighted average number of issued ordinary shares
during the period, excluding ordinary shares purchased by the Group and held as treasury shares:
1 January to
30 June 2013
Net income attributable to equity owners of the parent*)

759 M €

1 January to
30 June 2012
579 M €

806,014,369
Weighted average number of ordinary shares outstanding
Basic earnings per share*)817,333,453
0.94 €

0.71 €*) Previous year’s figures are adjusted due to revised IAS 19.

For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. The Group’s only
category of dilutive potential ordinary shares is stock options. Since the average price of EADS
shares exceeded the exercise price of the 5th, 6th, 7th and 8th stock option plan in the first six
months of 2013 (in the first six months 2012: the 4th, 5th, 6th and 8th stock option plan), 1,623,391
potential shares (in the first six months 2012: 1,548,793 shares) were considered in the calculationof diluted earnings per share.

1 January to
30 June 2013
Net income attributable to equity owners of the parent*)
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share*)

1 January to
30 June 2012

759 M €

579 M €

807,637,760

818,882,246

0.94 €

0.71 €*) Previous year’s figures are adjusted due to revised IAS 19.

12. Related party transactions
On 5 December 2012, EADS had announced that their Board of Directors and core shareholders
had agreed on a far-reaching change of the company’s shareholding structure and governance.
This agreement aimed at normalising and simplifying the governance of EADS while securing ashareholding structure that allows France, Germany and Spain to protect their legitimate strategicinterests. On 27 March 2013, the shareholders approved in an Extraordinary General Meeting all
resolutions that were required to authorize the Completion (“Consummation”) of the Multiparty
Agreement announced on 5 December 2012. On 2 April 2013, the Completion (“Consummation”)
of the Multiparty Agreement occurred, following the authorization by the shareholders. Previously
existing shareholder agreements were terminated. From this date onwards EADS considers, thatgovernmental shareholders are not meeting the definition of a related party under IAS 24.

24

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Before 2 April 2013, transactions with related parties include the French government, Daimler AG,
Lagardère group and the Spanish government (SEPI) and its related entities. The Group hasentered into various transactions with related entities in the first three months 2013 and thecomparable period for 2012 that have all been carried out in the normal course of business.

13. Number of employees
The number of employees as at 30 June 2013 is 143,358 as compared to 140,405 as at
31 December 2012.

14. Litigation and claims
EADS is involved from time to time in various legal and arbitration proceedings in the ordinary
course of its business, the most significant of which are described below. Other than as described
below, EADS is not aware of any material governmental, legal or arbitration proceedings (including
any such proceedings which are pending or threatened), during a period covering at least theprevious twelve months which may have, or have had in the recent past significant effects on
EADS N.V.’s or the Group’s financial position or profitability.
Regarding EADS’ provisions policy, EADS recognises provisions for litigation and claims when(i) it has a present obligation from legal actions, governmental investigations, proceedings andother claims resulting from past events that are pending or may be instituted or asserted in the
future against the Group, (ii) it is probable that an outflow of resources embodying economic
benefits will be required to settle such obligation and (iii) a reliable estimate of the amount of suchobligation can be made. EADS believes that it has made adequate provisions to cover current orcontemplated general and specific litigation risks.

WTO
Although EADS is not a party, EADS is supporting the European Commission in litigation before
the WTO. Following its unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large
Civil Aircraft, the US lodged a request on 6 October 2004 to initiate proceedings before the WTO.
On the same day, the EU launched a parallel WTO case against the US in relation to its subsidies
to Boeing.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US
assessing funding to Airbus from European governments. On 1 December 2011, the EU informed
the WTO that it had taken appropriate steps to bring its measures fully into conformity with its
WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the US
did not agree, the matter is now under WTO panel review pursuant to WTO rules.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the
EU assessing funding to Boeing from the US. The EU has cited the failure by the US to implement
the findings prior to the due date of 23 September 2012 in commencing a new proceeding on theadequacy of US compliance.

25

30.07.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

Exact timing of further steps in the WTO litigation process is subject to further rulings and tonegotiations between the US and the EU. Unless a settlement, which is currently not underdiscussion, is reached between the parties, the litigation is expected to continue for several years.

Securities Litigation
Following the dismissal of charges brought by the French Autorité des marchés financiers foralleged breaches of market regulations and insider trading rules with respect primarily to the A380
delays announced in 2006, proceedings initiated in other jurisdictions have also been terminated.
Nevertheless, following criminal complaints filed by several shareholders in 2006 (including civil
claims for damages), a French investigating judge is still carrying out an investigation based on thesame facts. It is expected that the investigating judge will decide later in 2013 on whether to close
the file (ordonnance de non-lieu) or to bring the case to trial (renvoi devant le tribunal
correctionnel).

CNIM
On 30 July 2010, Constructions Industrielles de la Méditerrannée (“CNIM”) brought an action
against EADS and certain of its subsidiaries before the commercial court of Paris, alleging anticompetitive practices, breach of long-term contractual relationships and improper termination ofpre-contractual discussions. CNIM is seeking approximately €115 million in damages on a joint
and several basis. On 12 January 2012, the court rejected all of CNIM’s claims, following which
CNIM filed for appeal.

GPT
Prompted by a whistleblower’s allegations, EADS has conducted internal audits andcommissioned an external investigation relating to GPT Special Project Management Ltd. (“GPT”),
a subsidiary that EADS acquired in 2007. The allegations called into question a service contract
entered into by GPT prior to its acquisition by EADS, relating to activities conducted by GPT in
Saudi Arabia. Following the allegations, EADS conducted comprehensive internal audits in 2010that did not detect any violations of law. The UK Serious Fraud Office (the “SFO”) subsequently
commenced a review of the matter. In 2011, EADS retained PricewaterhouseCoopers (“PwC”) to
conduct an independent review, the scope of which was agreed with the SFO. In the period underreview and based on the work it undertook, nothing came to PwC’s attention to suggest that
improper payments were made by GPT. Further, the review did not find evidence to suggest thatGPT or through GPT, any other EADS Group company, asked specific third parties to make
improper payments on their behalves. The PwC review was conducted between November 2011
and March 2012, and a copy of its report was provided by EADS to the SFO in March 2012.
Separately, in August 2012, the SFO announced that it had opened a formal criminal investigation
into the matter. EADS is cooperating fully with this investigation.

Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian
public prosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach oftrust by current and former employees of EADS Deutschland GmbH and Eurofighter Jagdflugzeug

26

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2013

GmbH as well as by third parties relating to the sale of Eurofighter aircraft to Austria in 2003.
EADS is cooperating fully with this investigation and has also engaged external legal counsel toconduct an independent review of the matter which is currently still ongoing.

Commercial dispute
In May 2013, the Group has been notified of a commercial dispute following the decision taken by
the Group to cease a partnership for sales support activities in some local markets abroad. The
Group believes it has solid grounds to legally object to the alleged breach of a commercial
agreement. However, the consequences of this dispute and the potential outcome of any future
procedures to be initiated by the parties cannot be assessed at this stage.

15. Subsequent events
A400M
Regarding the A400M program, the IOC milestone 13 remains to be achieved, with negotiations to
obtain OCCAR/Nations` agreement being at a very advanced stage. Milestone 13 fell due end
June 2012, and the termination right related thereto became exercisable by OCCAR/Nations on 1
July 2013. It has not at the date hereof been exercised. The A400M financial reporting at 30 June2013 – in particular the contract loss provision update - reflects management’s best view on thecontract costs and revenue estimate at completion based on current industrial and certification /retrofit scenario including commercial concessions and industrial agreements related to IOC
limitations and exceptions as envisaged in the negotiated but not yet signed IOC Amendment 64.
ArkoonAfter the acquisition of 83.9% controlling interest in Arkoon Network Security SA (“Arkoon”), Lyon
(France), on 17 May 2013, acquirer Cassidian Cybersecurity SAS (“Cassidian”), Elancourt(France) entered into a mandatory simplified tender offer procedure in line with General
Regulations of the French Financial Market Authority (“AMF”) for all outstanding shares in Arkoon.
As a result of the tender offer that ended 4 July 2013 Cassidian’s interest in Arkoon increased to
97.3%. Subsequent squeeze-out procedure of remaining shareholders was finalized on 15 July
2013 leaving Cassidian as sole shareholder of Arkoon.

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To: The EADS N.V. shareholders:Review report
Introduction
We have reviewed the condensed consolidated financial information of EADS N.V.,
Amsterdam, (‘the Company’) for the six-month period ended June 30, 2013, which comprises
the condensed consolidated statement of financial position as at June 30, 2013, and the relatedcondensed consolidated statements of income, comprehensive income, changes in equity andcash flows for the six-month period then ended and explanatory notes. Company’s management
is responsible for the preparation and presentation of this condensed consolidated financial
information in accordance with International Financial Reporting Standards as adopted by theEuropean Union (‘IAS 34’). Our responsibility is to express a conclusion on this condensed
consolidated financial information based on our review.
Scope of Review
We conducted our review in accordance with Dutch law including standard 2410, ‘Review ofInterim Financial Information Performed by the Auditor of the Entity’. A review of interim
financial information consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with auditing standards andconsequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that theaccompanying condensed consolidated financial information for the six-month period ended
June 30, 2013 is not prepared, in all material respects, in accordance with IAS 34, ‘Interim
Financial Reporting’, as adopted by the European Union.
Utrecht, July 30, 2013

Rotterdam, July 30, 2013

KPMG Accountants N.V.
(signed by A.A. van Eimeren)

Ernst & Young Accountants LLP(signed by C.T. Reckers)