EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

Year 2009 Report
Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the year ended December 31, 2009
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...3
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…4
Unaudited Condensed IFRS Consolidated Statements of Cash Flows.………....…...…………..…5
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity…………………......6
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at December 31, 2009…...……. …………….…………………….…………...…………..….....….......6
1. The Company……………………………………………………………………………………..…..6
2. Accounting policies……………….………………………………………………..…………….....7
3. Accounting for the A400M programme..………….…………………………..………………….9
4. Changes in the consolidation perimeter of EADS…………………………....…….………...12
5. Segment information………………………………..…………..…………………………..……..13
6. EBIT pre-goodwill impairment and exceptionals…..……..………………………………..…14
7. Significant income statement items………….…………………..………….………..……......15
8. Significant items of the statements of financial position ……………….………...…….....16
9. Significant cash flow items……………………………………………………..…...…..……….18
10. Number of shares………………………………………………………..........................….....…18
11. Earnings per share……………………………………..……………….………...………………..18
12. Related party transactions ………………..…………………...…….……………………..……19
13. Number of employees ……………………………….……………….……………..........………19
14. Litigation and claims …..…………………………….……………….……………..........………20
15. Subsequent events…………………………………………………………………………………22

1

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

Unaudited Condensed IFRS Consolidated Income Statements

January 1 December 31, 2009
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

January 1 December 31, 2008

DeviationM€
42,822-38,383
4,439

%
100
-90
10

M€
43,265-35,907
7,358

%
100
-83
17

M€
-443
-2,476-2,919-2,298-5-2,317-5

19-2,825-6-2,669

-6

-156

170

0

189

0

-19

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

134

0

211

0

-77

-380
356
-503
-445
-592
220
-752

-1
1
-1
-1
-1
0
-2

2,772
617
-581
-508
-472
-703
1,597

6
1
-1
-1
-1
-1
4

-3,152
-261
78
63
-120
923
-2,349Attributable to:Equity owners of the parent (Netloss / income)Non-controlling interests

-763
11

-2
0

1,572
25

4
0

-2,335-14

Earnings per share

€

€

€

Basic and diluted

-0.94

1.95

-2.89

2

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
IncomeJanuary 1 December 31,
2009

January 1 December 31,
2008

Profit (loss) for the period

-752

1,597

Foreign currency translation differences for foreign operations

-262

417

Net change in fair value of cash flow hedges

in M €

1,483-5,427

Net change in fair value of available-for-sale financial assets

162

0Changes in actuarial gains and losses

-595

-346

Tax on income and expense recognized directly in equity

-381

1,722

Other comprehensive income, net of tax

407-3,634

Total comprehensive income of the period-345-2,037-354
9-2,05619

Attributable to:Equity owners of the parent
Non-controlling interests

3

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

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
Non-current assets / disposal groups
classified as held for sale
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
Liabilities directly associated with noncurrent assets classified as held forsale
Total liabilities
Total equity and liabilities

December 31, 2009
M€%

December 31, 2008
M€%

Deviation
M€%

11,06012,58614
16

11,171
12,243

15
16

-111
343

-1
3

2,514

3

2,356

3

158

7

2,210

3

1,712

2

498

29

2,783
2,656
3,983
37,792

3
3
5
47

2,646
2,756
3,040
35,924

3
4
4
47

137
-100
943
1,868

5
-4
31
5

21,577
5,587
4,238
4,072
7,038

27
7
5
5
9

19,452
5,267
4,590
3,912
6,745

26
7
6
5
9

2,125
320
-352
160
293

11
6
-8
4
4

0

0

263

0

-263

42,51280,30453
100

40,22976,153

53
100

2,283
4,151

6
5

816
7,182

1
9

815
8,558

1
11

1
-1,376

0
-16

2,646

3

1,758

3

888

51

-109
10,535106
10,641

0
13
0
13

-109
11,022
104
11,126

0
15
0
15

0
-487
2
-485

0
-4
2
-4

8,137
2,867
751
15,532
27,287

10
4
1
19
34

7,479
3,046
953
16,82428,302

10
4
1
22
37

658
-179
-202
-1,292-1,015

9
-6
-21
-8
-4

5,883
2,429
8,217
220
25,627

8
3
10
0
32

4,583
1,458
7,824
201
22,504

6
2
10
0
30

1,300
971
393
19
3,123

28
67
5
9
14

0

0

155

0

-155

42,376
69,66380,30453
87
100

36,72565,02776,153

48
85
100

5,651
4,636
4,151

4

15
7
5

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

Unaudited Condensed IFRS Consolidated Statements of Cash Flows

Profit (loss) for the period attributable to equity owners of theparent (Net loss / income)January 1 December 31,
2009

January 1 December 31,
2008

M€

M€
-763

1,572

11

25

1,826

1,667

Valuation adjustments

-20

1,215

Deferred tax expense (income)Change in income tax assets, income tax liabilities and provisions for
actual income tax
Results on disposal of non-current assets
Results of companies accounted for by the equity method
Change in current and non-current provisions
Change in other operating assets and liabilities

-428

349

176
-31
-115
1,767
15

-39
-31
-188
1
-172

Cash provided by operating activities

2,438

4,399

-1,957-1,837

75

35

-21

-265

13

2

-136

-122

43

180

Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit (loss) for the period to cash provided byoperating activities
Depreciation and amortization

Investments:- Purchase of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE- Acquisitions of subsidiaries, joint ventures, businesses and noncontrolling interests (net of cash)- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-term financial assets- Proceeds from disposals of associates and otherinvestments and long-term financial assets- Dividends paid by companies valued at equity
Disposals of non-current assets / disposal groups classified as held forsale and liabilities directly associated with non-current assets classified
as held for sale

27

50

103

117

Change in securities-821-2,676-173-2,847
1,114
-208
-162
-4
17
-5
752

-436
-4,952
471
-628
-97
-10
24
39
-201

-50
293

-50
-804

Cash and cash equivalents at beginning of period

6,745

7,549

Cash and cash equivalents at end of period

7,038

6,745

Contribution to plan assets
Cash (used for) investing activities
Increase in financing liabilities
Repayment of financing liabilities
Cash distribution to EADS N.V. shareholders
Dividends paid to non-controlling interests
Capital increase and changes in non-controlling interests
Change in treasury shares
Cash provided by (used for) financing activities
Effect of foreign exchange rate changes and other valuation adjustments
on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

5

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

As of December 31, 2009, EADS’ cash position (stated as cash and cash equivalents in theunaudited consolidated cash flow statements) includes 751 M € (666 M € as of December 31,2008), which represent EADS’ share in MBDA’s cash and cash equivalents deposited at othershareholders. These funds are available for EADS upon demand.

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity
in M €
Balance at January 1, 2008

Equityattributable to Non-controlling
equity owners ofinterests
the parent
13,09085

Total comprehensive income

Total equity
13,175-2,05619-2,037

Cash distribution to shareholders

-97

-10

-107

Capital Increase

24

1

25

Change in treasury shares

39

0

39

Change in non-controlling interests

0

9

9

Others220

22

11,022

104

11,126

Total comprehensive income

-354

9

-345

Cash distribution to shareholders

-162

-4

-166

Capital Increase

15

2

17

Change in treasury shares

-5

0

-5

Balance at December 31, 2008

OthersBalance at December 31, 2009

19

-5

14

10,535106

10,641

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at December 31, 2009
1. The Company
The accompanying Unaudited Condensed 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 year ended December 31, 2009 were authorized for issue by EADS’
Board of Directors on March 8, 2010.

6

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) as endorsed by theEuropean Union (EU) as at December 31, 2009.

The IFRS rules applied by EADS for preparing 2009 year end Consolidated Financial Statements
are the same as for the previous financial year except for those following the application of new oramended Standards or Interpretations respectively and changes in accounting policies as detailed
below.
a) New or Amended Standards
The application of the following amended standards is mandatory for EADS for the fiscal year
starting January 1, 2009. If not otherwise stated, the following new or amended Standards did nothave a material impact on EADS’ Consolidated Financial Statements as well as its basic anddiluted earnings per share.

IFRS 8 “Operating Segments” (issued in November 2006 and endorsed in November 2007)
replaced IAS 14 “Segment Reporting” for accounting periods beginning on or after January 1,
2009. IFRS 8 requires the presentation and disclosure of segment information to be based on theinternal management reports regularly reviewed by EADS´ Chief Operating Decision Maker inorder to assess each segment’s performance and to allocate resources to them. EADS’ segment
reporting takes into consideration these new requirements of IFRS 8 as well as its new
management structure from 2009 onwards. See Note 5 “Segment Information” for the relatingchanges to the presentation of segment information.

The Amendment to IAS 23 “Borrowing Costs” removes the option of recognizing borrowing costs
that are directly attributable to the acquisition, construction or production of a qualifying asset as
an expense and therefore requires capitalizing such borrowing costs as part of the cost of theasset prospectively. A qualifying asset is an asset that necessarily takes a substantial period oftime to get ready for its intended use or sale. This amendment was released in April 2007, wasendorsed in December 2008 and became mandatory to EADS as of January 1, 2009. The
application of the amended IAS 23 results in the mandatory capitalization of borrowing costs
related to qualifying assets and will thus increase the amount of total costs capitalized and thus thebasis of depreciations of such qualifying assets.

The Amendment to IAS 1 “Presentation of Financial Statements: A revised presentation” (issued
in September 2007 and endorsed in December 2008) became effective for EADS as of January 1,
2009 and introduced the term total comprehensive income, which represents changes in equity
during a period other than those changes resulting from transactions with owners in their capacity
as owners. Total comprehensive income may be presented either according to a single statement
approach (effectively combining both the consolidated income statement and all non-ownerchanges in equity in a single statement), or according to a two statement approach in aconsolidated income statement and a separate statement of comprehensive income. EADS
provides such information according to the two statement approach in an income statement aswell as in a statement of comprehensive income for its Consolidated Financial Statements from2009 onwards.

7

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

The Amendments to IFRS 4 and IFRS 7 “Improving Disclosures about Financial Instruments”(issued in March 2009 and endorsed in December 2009) require enhanced disclosures about fairvalue measurement and liquidity risk. In particular, the amendments require disclosure of fair value
measurements by level of a fair value measurement hierarchy.

EADS applied the amendments to IAS 32 and IAS 1 “Puttable Financial Instruments” (issued in
February 2008, endorsed in January 2009), the amendments to IFRS 1 “First-time Adoption ofInternational Financial Reporting Standards” and to IAS 27 “Consolidated and Separate Financial
Statements” (issued in May 2008, endorsed in January 2009) as well as the amendments to IFRS
2 “Share Based Payments - Vesting Conditions and Cancellations” (amended in January 2008 andendorsed in December 2008).

Further, in May 2008 the IASB issued its first omnibus of amendments to its standards primarily
with a view to removing inconsistencies and clarifying wording in several IFRS standards, which
was endorsed in January 2009. There are separate transition rules for each amended standard.
Except for the amendments regarding IAS 16 and IAS 7 (presentation of the sales proceeds fromassets previously used for renting activities), which were early adopted by EADS in its 2008
Consolidated Financial Statements, the majority of these amendments, being effective fromJanuary 1, 2009 onwards, did not have any material impact on EADS’ Consolidated Financial
Statements.

Finally, EADS’ accounting policies were not affected by the amendments “Reclassification of
Financial Assets: Amendments to IAS 39 “Financial Instruments: Recognition and Measurement”
and IFRS 7 “Financial Instruments: Disclosures” (both Standards amended and endorsed in
October 2008) as well as their related later amendments regarding the effective date and thetransition rules (endorsed in September 2009), as EADS did not reclassify any such financial
instruments. Furthermore, the related amendments “Embedded Derivatives: Amendments to
IFRIC 9 “Reassessment of Embedded Derivatives” and IAS 39 “Financial Instruments:
Recognition and Measurement” (both amended in December 2008 and endorsed in November2009) also did not have an impact on EADS’ accounting policies.

b) New Interpretations
The following Interpretation became effective as of January 1, 2009. If not otherwise stated, thefollowing Interpretations did not have a material impact on EADS’ Consolidated Financial
Statements as well as its basic and diluted earnings per share.

IFRIC 14 “IAS 19 – The Limit of a Defined Benefit Asset, Minimum Funding Requirements andtheir Interaction” (issued in July 2007, endorsed in December 2008 resulting in an effective date asof January 1, 2009) clarifies how the maximum amount of net plan assets is calculated and which
circumstances require an additional pension liability to be recognized.

IFRIC 16 “Hedges of a Net Investment in a Foreign Operation” (issued in July 2008, endorsed inJune 2009) provides additional guidance on the accounting for a hedge of a net investment, mainly
regarding the identification of the foreign currency risks that qualify for hedge accounting, where
within the group the hedging instruments can be held and how an entity should determine the8

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009amount of foreign currency gain or loss, relating to both the net investment and the hedging
instrument, to be recycled on disposal of the net investment.

Further, EADS’ accounting policies were not affected by IFRIC 13 “Customer Loyalty
Programmes” (issued in June 2007, endorsed in December 2008) and the sector-specificinterpretation IFRIC 15 “Agreements for the Construction of Real Estate” (issued in July 2008,
endorsed in July 2009), as EADS does neither maintain such customer loyalty programs nor
undertakes such construction activities.

3. Accounting for the A400M programme
In September 2008, the Airbus A400M airlifter programme was affected by an undefined delay of
the first flight of the A400M, mainly due to the unavailability of the propulsion system and beyond
that – but not first flight critical – due to the fact that other major suppliers of mission criticalsystems and of system integration were severely struggling with the challenging technicalrequirements of this aircraft. Consequently, from September 2008 onwards EADS could neither
finally agree with OCCAR an updated contract scheme for the A400M programme nor reliably
assess the related financial implications of this delay and applied the early-stage method of
accounting until the end of December 2009 (see the corresponding notes disclosures in Note 3“Accounting for the A400M programme” in EADS’ Consolidated Financial Statements 2008 andthe unaudited Quarterly Condensed Consolidated Financial Information 2009 for further details of
the A400M programme and its related accounting issues). Under the early stage method of
accounting applied until the end of December 2009, all A400M related work-in-progress, which
would have been expensed upon the completion of technical milestones according to the common
percentage at completion method of accounting only, have been expensed as incurred, withrelated revenues recognized up to the recoverable part of these costs as per the initial A400M
Launch Contract.

During its ongoing discussions in 2009 with OCCAR and the Launch Nations, EADS successfully
reinforced the Nations’ confidence in the A400M programme and prepared a common basis for allparties involved to realign and rebase the A400M programme on future realistic general andspecific conditions acceptable to all parties. These discussions addressed various aspects of the
future progress of the programme such as the date for the first flight, certification procedures andthe expected first entry into service as well as technical details of the aircraft and commercial
issues of an updated contract scheme. Even though these ongoing discussions did not lead to an
updated A400M contract scheme until the date of issuance of these IFRS Consolidated Financial
Statements, the increasing level of details agreed between EADS, OCCAR and the Launch
Nations in their constructive negotiations during the 4th quarter 2009 and the first weeks of 2010provides a reasonable basis for reassessing contract revenues from an EADS perspective. An
important step on the commercial side was achieved with the signing of the joint principle
agreement “Understanding on the Continuation of the A400M Programme” reached between theseven Launch Nations and EADS/Airbus/AMSL on March 5, 2010. This step was accompanied bya further technical progress of the programme - mainly reflected in the successful first flight of the
A400M on December, 11 2009 - and a considerable reduction of sources of uncertainty regarding
the total expected costs. All three items, the ongoing progress on the commercial side including
the level of details agreed between EADS and the Launch Nations since the fourth quarter 2009,
the successful first flight of the A400M (and its implications for linked programme milestones such

9

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009as the delivery of the first aircraft) together with a significant higher visibility on total expected costs
enabled EADS to leave the early-stage accounting of the A400M programme at the end of
December 2009 and to reassess the A400M loss provision within the A400M related year end
closing procedures.
This reassessment also considered as an adjusting event for the EADS’ 2009 Consolidated
Financial Statements the details agreed upon with the Launch Nations during February and March
2010. In particular, the assessment of the need and amount of additional provisions for thecontinuation and completion of the A400M programme is based on the “Understanding on theContinuation of the A400M Programme” reached between the seven Launch Nations (“Nations”)
and EADS/Airbus/AMSL jointly signed by them (together the “Parties”) on March 5, 2010 (“A400M
Understanding”). This A400M Understanding has been reached “without prejudice and subject tocontract”. It is based on an exchange of letters from the State Secretary of the German Ministry of
Defence, Rüdiger Wolf, on behalf of the seven Launch Nations and from the EADS CEO, Louis
Gallois, during February 2010. The A400M Understanding - referring to the latest draft no. 14 of
the Heads of Terms exchanged between the Parties until March 5, 2010 (“Heads of Terms”) - andthese letters are the result of negotiations over several months and constitute the basis on which
management expects that a final agreement between the Parties on an amendment of the contract
between AMSL and OCCAR (“Contract”) will be reached as soon as practically possible.

The A400M Understanding, the Heads of Terms and the exchanged letters summarize the statusof the negotiations and propose a number of changes to the initial contract which will only become
binding upon Contract amendment and further requiring the implementation of an Export Levy
Scheme or similar schemes. Assuming that the Nations will not derogate from what is agreed in
the A400M Understanding and was offered in Mr. Wolf’s letters previously, management has madefurther assumptions.
Whilst management has made these assumptions in good faith and believing them to be probable,
there is no certainty that a final Contract amendment can be achieved. In particular, it is critical tothe management’s assessment that the agreed Export Levy Scheme or a similar scheme providingfor 1.5 billion € will finally be concluded in a way which allows EADS/Airbus a revenue recognition
as agreed in the A400M Understanding or can be included otherwise in the loss making contract(“LMC”) computation. This will require a specific agreement with the Nations on an Export Levy
Scheme or on a similar scheme mechanism and will be subject to national approval processes andthe availability of funds (for this specific scheme).

The following elements of the ongoing negotiations between EADS, OCCAR and the Launch
Nations - as currently expressed in the A400M Understanding, the Heads of Terms and theexchanged letters - were inter alia considered within the reassessment of A400M loss provision asof December 31, 2009:•a price increase of 2 billion € at economic conditions as of January 2009,•

a waiver on liquidated damages arising from the former A400M delivery scheme being
realigned to the new delivery plan proposed to the Launch Nations,•an Export Levy Scheme providing for 1.5 billion € and•accelerated pre-delivery payments in the period of 2010 to 2014 according to the newdelivery plan.

10

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

The main characteristics of the Export Levy Scheme as currently negotiated is that a fixed predefined levy would be paid by EADS for each new export aircraft delivered without further
guarantees by EADS.
The reassessment of the A400M loss provision considered also the updated expected total costs
as of December 2009 in accordance with the current status of the negotiations. In addition, theimpacts arisen from the cancellation of the South African A400M order in November 2009 weretaken into account as well. Finally, EADS’ management best estimate comprised an assessmentof the fiscal consequences of the update of the A400M loss provision.
The following tables summarise the major accounting balances specifically related to the A400M
programme as at December 31, 2009 and as at December 31, 2008:

December 31,
2009

December 31,
2008

Accumulated revenues

5,042

4,543

Accumulated cost of sales(9,056)(6,739)

Accumulated EBIT-impact(4,014)(2,196)

December 31,
2009

December 31,
2008

Accumulated revenues

5,042

4,543

Accumulated advance payments received(7,049)(5,712)

Net advance payments received(shown in liabilities)(2,007)(1,169)in M €

in M €

Total EBIT impact of the A400M
programme
January 1 December 31,
2009

January 1 December 31,
2008

Revenues

499

1,526

Expenses(1,218)(1,938)Subtotal

(719)

(412)

Consumption of provision

719

404

Additional costs (including increase in provision)(1,818)(696)

Total EBIT impact(1,818)(704)

in M €

11

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

December 31,
2009

December 31,
2008

Property, plant and equipment(mainly buildings and jigs and tools)

755

722

Current assets(mainly advance payments made)

1,115

953

Net advance payments received(shown in liabilities)(2,007)(1,169)

A400M loss provision(2,464)(1,349)in M €The A400M loss provision as at December 31, 2009 (amounting to 2,464 M€ (1,349 M€ as at
December 31, 2008)) has been determined based on the best estimate of EADS’ management,
reflecting in particular the status of the elements of the ongoing negotiations between EADS andthe Launch Nations as of December 31, 2009, and adjusted to actual values as explained above
as well as the expected total costs of the A400M programme updated in December 2009. Due tothe fact that the envisaged contract amendments agreed upon in the A400M Understanding andthe Heads of Terms have not been concluded yet, the financial consequences of the upcoming
contractual amendments of the A400M contract scheme on EADS’ Consolidated Financial
Statements have been assessed on a best estimate basis and may be subject to changes
depending on final contracts to be implemented. There is no certainty that such contractual
amendments will be accomplished including any necessary parliamentary approval processes andavailability of funds of the Launch Nations. Consequently and in particular with regard to the export
levy scheme, there might arise a need that EADS’ management has to reassess its assumptions
regarding the consideration of the elements described above in the computation of the A400M loss
provision as soon as the negotiations are finished. In case of such a reassessment EADS futurefinancial performance could be significantly impacted.
The assessment of the statutory and fiscal consequences of the flow down of the above
mentioned ongoing negotiations to the local and national entities of EADS is in process.
EADS intends to resume the common percentage at completion method for the A400M
programme from 2010 onwards.

4. Changes in the consolidation perimeter of EADSOn April 22, 2008, EADS acquired PlantCML California / USA, a leading provider of emergency
response solutions, which has been fully consolidated since that date. The difference between thepurchase price and the acquired net assets led to the recognition of a final goodwill of 278 M USD.
On July 28, 2008, EADS acquired an additional 41% of Spot Image, Toulouse / France, a world
leader in the provision of satellite imagery and geo-information value-added services. EADS thusincreased its stake in Spot Image to 81% and consolidates it fully. This additional purchase led to
the recognition of a final goodwill of 4 M €.
In the previous year, EADS concluded negotiations with GKN to divest its Airbus site in Filton(UK). The closing of the sale occurred on January 5, 2009.

12

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

On January 7, 2009, DAHER acquired a 70% majority share of EADS SOCATA. The remaining
30% of EADS SOCATA is accounted for using the equity method and presented in “Other
Businesses”.
Other acquisitions or disposals by the Group that occurred in 2009 are not material, nor were
those that occurred in 2008.

5. Segment information
Through the end of 2009, the Group operated in five reportable segments which reflect the internalorganizational and management structure according to the nature of the products and services
provided.
• Airbus Commercial — Development, manufacturing, marketing and sale of commercial jet
aircraft of more than 100 seats; aircraft conversion.
• Airbus Military — Development, manufacturing, marketing and sale of military transport aircraft
and special mission aircraft. As per decision of the Board of Directors the former MilitaryTransport Aircraft Division (MTAD) has been integrated into the Airbus organisation since
January 1, 2009. Airbus Military integrates the former MTAD business and all Airbus A400M
operations.
The above mentioned reportable segments Airbus Commercial and Airbus Military form the Airbus
Division.

• Eurocopter — Development, manufacturing, marketing and sale of civil and military helicopters;
provision of maintenance services.
• Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers; provision of space services.
• Defence & Security — Development, manufacturing, marketing and sale of missiles systems,
military combat aircraft and training aircraft; provision of defence electronics and defencerelated telecommunications solutions and logistics; training, testing, engineering and otherrelated services.

In the context of the full integration of the former Military Transport Aircraft Division (MTAD) into
Airbus being Airbus Military and the consolidation of EADS EFW (previously included in Other
Businesses) within Airbus from 2009 onwards, the 2008 figures have been restated accordingly.
Additionally, completing the reorganization of aerostructures activities within EADS, the site inAugsburg (previously included in Defence & Security) was transferred to Airbus Commercial in
2009. The respective previous year’s figures are not restated, but impacts are explained whereconsidered to be material.
In the second quarter of 2009, the carrying amounts of operative real estate, owned by
Headquarters, were transferred retrospectively to the respective segments as at January 1, 2009.
Since the operative segments as tenants are treated as if they were the owners, rental income anddepreciations in Headquarters were restated accordingly, thus affecting its EBIT.

13

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

The following table presents information with respect to the Group’s business segments.
Consolidation effects, the holding function of EADS Headquarters and other activities not allocableto the reportable segments are disclosed in the column “HQ / Conso.”. “Other Businesses” mainlycomprises the development, manufacturing, marketing and sale of regional turboprop aircraft, lightcommercial aircraft and aircraft components.

in M €

AirbusCommercial

AirbusMilitary

Eurocopter

Astrium

Defence
Other
Total
&
Businessegments
Securityses

HQ/
Conso.

Consolidated

Year ended December 31, 2009
Revenues

26,370

2,235

4,570

4,799

5,363

1,096

44,433-1,61142,822

Research anddevelopment expenses-2,293

-13

-164

-74

-216

-6

-2,766-59-2,825

Profit (loss) before
finance result andincome taxes

363-1,756

262

257

437

21

-416

36

-380

EBIT pre-goodwill imp.
and exceptionals (seedefinition below)

386-1,754

263

261

449

21

-374

52

-322

Year ended December 31, 2008
Revenues

26,524

2,759

4,486

4,289

5,668 *)

1,338

45,064-1,79943,265

Research anddevelopment expenses-2,210

-9

-134

-69

-174

-9

-2,605-64-2,669Profit (loss) before
finance result andincome taxes

2,279

-495

292

231

399

43

2,749

23

2,772

EBIT pre-goodwill imp.
and exceptionals (seedefinition below)

2,306

-493

293

234

408

43

2,791

39

2,830

*)

thereof revenues of 438 M € related to the site in Augsburg

6. 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.
A 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 €):14

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009
January 1December 31,
2009

January 1December 31,
2008

-380

2,772

Exceptional depreciation (fixed and financial assets in cost of sales)

56

52

Exceptional disposal (fixed assets in other income)

2

6

-322

2,830

in M €
Profit (loss) before finance result and income taxes
Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals

7. Significant income statement items
Revenues of 42,822 M € (2008: 43,265 M €) decrease by -443 M € due to an unfavorable US
Dollar impact, the deconsolidation of Socata, of which 70 % was sold in 2009 and the remaining
30% are now accounted for at equity, despite of higher activities at Astrium (partly driven by acatch-up for in-orbit incentive schemes on commercial telecommunication satellites). Moreover,
Airbus Commercial delivered more aircraft (498 versus 483 in the previous year) and Eurocopter
contributed positively. The revenues also include 499 M € (2008: 1,107 M €), resulting from theapplication of the early stage accounting method for the A400M contract.
The Gross Margin decreases by -2,919 M € to 4,439 M € compared to 7,358 M € in 2008. This
deterioration is mainly related to higher expenses for the A400M at Airbus Military. Additionally in
2009, the gross margin of Airbus Commercial is in particular burdened by foreign exchange rate
effects and lower realized prices for delivered A330 aircraft, partly compensated by lower A380
onerous contract charges. In 2009, strong operational performance with delivery ramp-up, Power8
savings and improvements in Defence & Security and Astrium positively contribute to thedevelopment of the gross margin.
Research and development expenses of -2,825 M € (2008: -2,669 M €) principally reflect anincrease for the Airbus A350XWB and some Defence & Security and Eurocopter programs partly
compensated for by a decrease in the Airbus A380 program.
Other income decreases by -19 M € to 170 M € (2008: 189 M €). Other income includes among
others gains from the sale of land and buildings.
Share of profit from associates under the equity method and other income frominvestments of 134 M € (2008: 211 M €) mainly consists of the result of Dassault Aviation of 120
M € (2008: 169 M €). Since for the second half-year 2009 no published financial information isavailable yet from Dassault Aviation at the date of authorization for issue of 2009 financial
statements, EADS used a best estimate for the net income of Dassault Aviation including a catchup on results for 2008 as well as direct recognitions in equity (AOCI) with regards to restatements
for different treatments of actuarial gains and losses of pensions.
Finance result amounts to -592 M € (2008: -472 M €) mainly including negative impacts from theunwinding of the discount of provisions and the revaluation of some monetary items and financial
instruments as well as the interest result of -147 M € (2008: +36 M €) reflecting decreasing interest
rates.
The income tax benefit of +220 M € (2008: -703 M €) corresponds to an effective income tax rateof 23% (2008: 31%). Major driver of this tax rate are unexpected write-downs of non-recoverable
tax assets within Airbus Division.

15

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

8. Significant items of the statements of financial positionNon-current assets
Intangible assets of 11,060 M € (prior year-end: 11,171 M €) include 9,741 M € (prior year-end:
9,760 M €) of goodwill. This mainly relates to Airbus Commercial (6,425 M €), Defence & Security(2,503 M €), Astrium (604 M €) and Eurocopter (111 M €). The related annual impairment tests,
which were performed at the end of the year, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of +160 M €, property, plant and equipment increaseby +183 M € to 12,586 M € (prior year-end: 12,243 M €), including leased assets of 703 M € (prioryear-end: 878 M €). Property, plant and equipment also comprise “Investment property” amounting
to 78 M € (prior year-end: 87 M €).
Investments in associates under the equity method of 2,514 M € (prior year-end: 2,356 M €)mainly reflect the increase in the equity investment in Dassault Aviation, amounting to 2,380 M €(prior year-end: 2,243 M €).
Other investments and other long-term financial assets of 2,210 M € (prior year-end:
1,712 M €) are related to Airbus for an amount of 1,691 M € (prior year-end: 1,290 M €), mainly
concerning the non-current portion of aircraft financing activities including a foreign exchange rate
effect of -35 M €.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The increase by +137 M € to 2,783 M € (prior year-end: 2,646 M €) ismainly caused by the positive variation of the non-current portion of fair values of derivative
financial instruments (+206 M €).
Deferred tax assets of 2,656 M € (prior year-end: 2,756 M €) are presented as non-current assets
as required by IAS 1.
The fair values of derivative financial instruments are included in other non-current assets(1,307 M €, prior year-end: 1,101 M €), in other current assets (937 M €, prior year-end:
1,482 M €), in other non-current liabilities (732 M €, prior year-end: 2,208 M €) and in other current
liabilities (220 M €, prior year-end: 657 M €) which corresponds to a total net fair value of
1,292 M € (prior year-end: -282 M €). The volume of hedged US dollar-contracts decreases from
68.1 billion US dollar as at December 31, 2008 to a net of 60.8 billion US dollar as at December
31, 2009, including 2 billion of US dollar vanilla options (prior year-end: 9 billion USD). The US
dollar exchange rate became less favorable (USD / € spot rate of 1.44 at December 31, 2009 vs.
1.39 at December 31, 2008). The average US dollar hedge rate for the hedge portfolio of theGroup deteriorates from 1.36 USD / € as at December 31, 2008 to 1.39 USD / € as at December
31, 2009 (excluding US dollar plain vanilla options which are out of the money).

Current assets
Inventories of 21,577 M € (prior year-end: 19,452 M €) increase by +2,125 M €. This is mainly
driven by an increase in unfinished goods and services in Airbus Commercial’s A380, Single Aisle
and Long Range programs (+1,351 M €), at Eurocopter (+169 M €) due to lower deliveries incommercial programs (mainly Dauphin and Ecureuil) and governmental programs (NH 90 and
Tiger) and at Defence & Security (+64 M €). Boosted by its launcher business, Astrium records ahigher level of advance payments made to suppliers (+406 M €).
Trade receivables increase by +320 M € to 5,587 M € (prior year-end: 5,267 M €), mainly causedby Airbus (+188 M €), predominantly for Tanker, and by Astrium (+106 M €), mostly from Direction
Générale de l’ Armement.

16

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The decrease of -352 M € to4,238 M € (prior year-end: 4,590 M €) comprises among others a decrease of -545 M € in positive
fair values of derivative financial instruments. This is partly compensated by increased receivablesfrom related companies (+189 M €, mainly Eurofighter Jagdflugzeug GmbH).
Cash and cash equivalents increase from 6,745 M € to 7,038 M € (see also note 9 “Significant
cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 10,535 M € (prior year-end: 11,022 M €). The decrease in equity is mainly due to acomprehensive income for the period of -354 M €, primarily resulting from the loss of the period
and changes in actuarial losses on defined benefit plans, partly compensated by a positive netchange in fair value of cash flow hedges. Additionally, equity is reduced by the cash distribution to
the shareholders.
Non-controlling interests slightly increase to 106 M € (prior year-end: 104 M €).

Non-current liabilities
Non-current provisions of 8,137 M € (prior year-end: 7,479 M €) comprise the non-current
portion of pension provisions with an increase of +745 M € to 5,080 M € (prior year-end:
4,335 M €), mainly reflecting lower discount rates used for the calculation of pension obligations.
Moreover, other provisions are included in non-current provisions, which decrease by -87 M € to
3,057 M €. The decrease mainly reflects restructuring provisions for the reduction of overhead
costs (“Power 8” program, -130 M €) and provisions for outstanding costs (-44 M€), partly
compensated for by provisions for loss making contracts (+120 M €).
Other provisions include among others the provision for aircraft financing activities.
Long-term financing liabilities of 2,867 M € (prior year-end: 3,046 M €) decrease by -179 M €.
Due to the maturity date of the first tranche of the EMTN bond in March 2010, an amount of
1 billion € is classified to short-term financing liabilities. In August 2009, this decrease wasbalanced by issuing the third tranche of the EMTN bond amounting to 1 billion €.
Other non-current liabilities comprise “Non-current other financial liabilities”, “Non-current otherliabilities” and “Non-current deferred income” and decrease in total by -1,292 M € to 15,532 M €(prior year-end: 16,824 M €). They mainly include non-current customer advance payments
received of 8,579 M € (prior year-end: 8,843 M €) and the non-current portion of European
Government refundable advances amounting to 4,882 M € (prior year-end: 4,563 M €). The
decrease is mainly affected by the reduction of fair values of derivative financial instruments(please refer to “derivative financial instruments”). The main part of non-current deferred income of
266 M € (prior year-end: 418 M €) is linked to deferred revenues of Airbus and ATR relating to
Residual Value Guarantee clauses. These are reversed over the guaranteed period.

Current liabilities
Current provisions increase by +1,300 M € to 5,883 M € (prior year-end: 4,583 M €) andcomprise the current portions of pensions (226 M €) and other provisions (5,657 M €). The

17

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

increase mainly reflects provisions for loss making contracts (+1,161 M €), primarily from A400M
charges, provisions for litigations (+69 M €) and provisions for outstanding costs (+64 M€).
Short-term financing liabilities of 2,429 M € (prior year-end: 1,458 M €) increase by +971 M €,mainly due to the first tranche of the EMTN bond with an amount of 1 billion €, maturing inMarch 2010.
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +3,123 M € to 25,627 M € (prior year-end:
22,504 M €). Other current liabilities mainly comprise current customer advance payments of
21,271 M € (prior year-end: 17,802 M €).

9. Significant cash flow items
Cash provided by operating activities decreases by -1,961 M € to 2,438 M € (2008: 4,399 M €).
Gross cash flow from operations (excluding working capital changes) of 2,423 M € falls below theprior period’s level (2008: 4,571 M €). The decrease is mainly caused by the Airbus division.
Changes in other operating assets and liabilities (working capital changes) amount to +15 M €(2008: -172 M €), mainly reflecting a higher advance payments received, partly compensated byan increase in inventories and trade receivables.
Cash used for investing activities (including change in securities) amounts to -2,847 M € (2008:-4,952 M €). This mainly comprises purchases of intangible assets and property, plant andequipment of -1,957 M €, namely in Airbus division, and a net purchase of securities of -821 M €.
Cash provided by (used for) financing activities improves by +953 M € to 752 M € (2008:-201 M €). The inflow comprises the issuance of the third tranche of the EMTN bond (1 billion €)included in financing liabilities partly offset by the cash payment to shareholders.

10. Number of shares
The total number of shares outstanding is 810,908,611 and 809,509,147 as of December 31, 2009
and 2008, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the year 2009, the number of treasury shares held by EADS decreased from 5,259,965 asof December 31, 2008 to 5,196,450 as of December 31, 2009.
In 2009, EADS issued no shares (in 2008: 14,200 shares) as a result of the exercise of stock
options in relation to the implemented stock option plans. Under the 2009 Employee Stock
Ownership Plan, EADS issued 1,358,936 shares in December 2009. Under ESOP 2008,
2,031,820 shares were issued in July 2008.

11. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
holders 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:

18

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

January 1 to
December 31,
2009
Net income (loss) attributable to equity owners of theparentWeighted average number of ordinary shares outstanding
Basic earnings per share

January 1 to
December 31,
2008-763 M €1,572 M €809,698,631

806,978,801-0.94 €

1.95 €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 categories
of dilutive potential ordinary shares are stock options as well as performance and restricted
shares. Since the average price of EADS shares did not exceed the exercise price of any stock
option plan initiated by the Group, no shares related to stock options were considered in thecalculation of diluted earnings per share in 2009 and 2008. Since the average price of EADS
shares in 2009 exceeded the price of performance and restricted shares, 1,491,482 shares related
to performance and restricted shares (in 2008: 618,141 shares) were considered in the calculation.
January 1 to
December 31,
2009
Net income (loss) attributable to equity owners of theparentWeighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

January 1 to
December 31,
2008-763 M €1,572 M €811,190,113

807,596,942-0.94 €

1.95 €

12. Related party transactions
The Group has entered into various transactions with related companies in 2009 and 2008 thathave all been carried out in the normal course of business. As it is the Group’s policy, all related
party transactions have to be carried out at arm’s length. Transactions with related parties include
the French State, Daimler, Lagardère and SEPI (Spanish State). Except for the transactions with
the French State and SEPI, such transactions are not considered material to the Group either
individually or on aggregate. The transactions with the French State include mainly sales from theEurocopter, Defence & Security and Astrium divisions. The transactions with SEPI include mainly
sales from Airbus Military and Defence & Security division.

13. Number of employees
The number of employees as at December 31, 2009 is 119,506 as compared to 118,349 as at
December 31, 2008.

19

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

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 governmental, legal or arbitration proceedings (including any
such proceedings which are pending or threatened), during a period covering at least the previous
twelve months which may have, or have had in the recent past significant effects on EADS’ or theGroup’s financial position or profitability.
In 2005, a liquidator representing the special purpose vehicle GFAC (a joint venture between
Swissair and GATX) sued Airbus before a New York court to recover USD 227 million in predelivery payments, together with interest and costs. The lawsuit followed Airbus’ termination of apurchase agreement with GFAC in October 2001 for 38 single-aisle and long-range aircraft, in thecontext of Swissair’s bankruptcy. On 6 February 2009, a judge decided in favour of GFAC. In
March 2009, GFAC submitted arguments on the amount of its alleged damages and requested
entry of judgment. In parallel, Airbus has filed an appeal of the February 2009 decision, which washeard by the appellate court on 17 September 2009. Both plaintiff’s request and defendant’s
appeal are currently pending, with the risk that Airbus may ultimately be required to pay an amountequal to the pre-delivery payments plus legal interest as damages.
In 2006, a liquidator representing the special purpose vehicle Flightlease No. 7 (a wholly-owned
subsidiary of the bankrupt Swissair Group) sued Airbus before a Paris court to recover USD 319
million in pre-delivery payments, together with interest and costs. The lawsuit followed Airbus’
termination of a purchase agreement with Flightlease No. 7 in October 2001, in the context ofSwissair’s bankruptcy. On 23 December 2009 Airbus SAS filed a counterclaim against Flightlease
No. 7 and notified its parent company Flightlease Holdings to be joined in the proceedings as
guarantor of Flightlease No. 7.
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 31 May 2005, the US and the EU each requested the establishment of a panel. At
its meeting on 20 July 2005, the Dispute Settlement Body established the panels. Between
November 2005 and the present, the parties filed numerous written submissions and attended
several oral hearings in both cases. On 4 September 2009, a non-binding confidential draft report
was issued in the case brought by the US. The parties are currently providing comments on thedraft, and a first instance decision could occur in the second quarter of 2010. A draft decision in
the case brought by the EU concerning subsidies to Boeing is expected in June 2010. Exacttiming of further steps in the WTO litigation process is subject to ruling of the panels 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.
The French Autorité des marchés financiers (the “AMF”) began investigations in 2006 for alleged
breaches of market regulations and insider trading rules with respect to, among other things, theA380 delays announced in 2006. On 1 April 2008, the AMF announced the notification of charges
against EADS and certain of its current and former executives for breach of such market
regulations and insider trading rules, respectively. On 22 July 2009, the Rapporteur of theSanction Commission of the AMF issued a report regarding the charges notified by the AMF,
which contained various recommendations to the Sanction Commission on the merits of thecharges. Following oral hearings before the Sanction Commission which took place from 23-27
November 2009, the Sanction Commission decided, in a decision published on 17 December
2009, to dismiss all charges against EADS and the other notified persons. The Sanctions

20

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

Commission held that EADS had complied with all applicable market information duties, inparticular in respect of risk of delays affecting the A380 programme and its development, and that
there had been no breach of insider trading rules. Following criminal complaints filed by ashareholders’ association and by an individual shareholder (including a civil claim for damages), a
French investigating judge is still carrying out an investigation on the same facts.
In Germany, criminal proceedings regarding suspected insider trading offences have notestablished any wrongdoing and are meanwhile mostly terminated. Furthermore, in Germany,
several shareholders have filed civil actions against EADS since 2006 to recover their alleged
losses in connection with the disclosure of A380 programme delays. Several plaintiffs have filed
motions for “model proceedings”, which would allow common issues of fact or law in multiple
individual securities actions to be decided together with binding effect in all such actions. The
proceedings are in their preliminary stage and the amounts claimed are relatively small.
On 12 June 2008, two actions were initiated in the United States District Court for the Southern
District of New York, one of which has since been voluntarily withdrawn. The remaining action
purports to be a class action brought on behalf of all persons and entities residing in the UnitedStates who purchased or otherwise acquired EADS’ common stock during the period from27 July 2005 through 9 March 2007. Named as defendants are EADS and four current or former
executives of EADS and Airbus. The action seeks damages in an unspecified amount, withinterest and attorneys’ fees, for alleged violations of the US securities laws in connection withfinancial disclosures issued by EADS in 2005, 2006 and 2007 and public statements made duringthat same time frame relating to A380 programme delays. On 2 January 2009, defendants filed
motions to dismiss the complaint in the action. On 17 March 2009, plaintiff filed its opposition to
the motions to dismiss; on 23 April 2009, defendants filed replies; and on 30 April 2009, plaintiff
requested leave to file a sur-reply. On 16 November 2009, plaintiff and defendants filed
supplemental memorandums in support of their positions, which were followed by oral argumentson the motions to dismiss on 11 December 2009. The defendants’ motions to dismiss are pending.
On 9 September 2009 and 4 December 2009, respectively, two separate requests were filed byinstitutional shareholders with the Enterprise Chamber (Ondernemingskamer) of the Court ofAppeal in Amsterdam to open an inquiry into the management and affairs of EADS. The applicants
allege in their requests that there are serious reasons to doubt proper management by EADS,
primarily with respect to the A380 programme delays announced in 2006 and the related
disclosures to the market. A hearing on the requests was held on 28 January 2010 before theEnterprise Court, with a decision currently pending.
Following an investigation conducted by the Italian Guardia di Finanza, Italian tax authorities are
currently evaluating whether Astrium owes any overdue tax in Italy related to its past contractual
relationships. In parallel, the Italian Public Prosecutor decided at the end of December 2009 to
initiate proceedings against Astrium’s legal representatives for failure to file a tax declaration andattempted fraud.
On 10 November 2009, Airbus Military SL (AMSL) notified Europrop International GmbH (EPI), theengine manufacturer under the A400M aircraft programme, that it had a number of contractual
claims against it for breach of Milestones 7, 8 and 9 under the engine agreement, in an amountcurrently totalling approximately € 500 million. On 17 December 2009, the parties entered into astandstill agreement, pursuant to which AMSL agreed not to pursue its claims until a later date. On
8 February 2010, EPI notified AMSL of its own claims under the engine agreement, in an amount
totalling approximately € 425 million, and requested that AMSL enters into a standstill agreement
in respect of such claims. AMSL refused this request. On 23 February 2010, EPI sent notice of its
intent to seek arbitration, and of its sending of a request for arbitration to the International

21

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2009

Chamber of Commerce (ICC) on the same day. AMSL has sent notice of termination of thestandstill agreement dated 17 December 2009.
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.

15. Subsequent events
In February 2010, EADS entered into negotiations to increase Airbus’ stake in DASELL Cabin
Interior GmbH / Germany, a medium-sized manufacturer of cabin interior components and sanitaryfacilities, to 100% and to sell this Aerospace OEM supplier afterwards to an industrial investor.
These negotiations were not finalized until the date the Consolidated Financial Statements wereauthorized for issue by EADS’ Board of Directors.

On March 5, 2010, the Launch Nations and EADS have come to a principle agreement regarding
the A400M military airlifter with the intention to amend the original contract accordingly in the
coming weeks. Please refer to the notes section “3. Accounting for the A400M programme” forfurther details.

Upon evaluation of the request for proposal for the US Air Force Tanker replacement, Northrop
Grumman has decided not to submit a bid to the US Department of Defence for the KC-X programin March 2010. EADS as partner to Northrop Grumman regrets but accepts this decision.

22