EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

First half-year 2012 Financial Report

2012 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 2012.……………..…………………….…...4

Appendix: Auditor’s Review report1

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 20122012 Semi-Annual Report of the Board of Directors

1. Semi-Annual Report on Activities
Main Events in the first half-year of 2012For an overview of the main events that occurred during the first half of 2012 and their impact
on the Unaudited Condensed IFRS Consolidated Financial Information of EADS for the sixmonth period ended 30 June 2012 (the “Semi-Annual Financial Statements”), please referto the press release issued on 27 July 2012, available on EADS’ website www.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.

2. Risk Factors
EADS is subject to many risks and uncertainties that may affect its financial performance.
For a description of the main risks and uncertainties facing EADS for the remainder of 2012
and thereafter, please refer to Section 4.6 of the “Report of the Board of Directors” onactivities during the 2011 financial year (the “2011 Annual Board Report”), available on
EADS’ website www.eads.com. In addition to this, EADS is considering consequences what
could happen in case member states would depart from the Eurozone.

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 2012 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; and2

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012(ii) this Semi-Annual Board Report (which includes the press release issued on 27 July2012) gives a true and fair view of the position as per the balance sheet date, and of thedevelopment and performance during the first half of the 2012 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.

26 July 2012,
The Board of Directors
Arnaud Lagardère, Chairman
Dr. Thomas Enders, Chief Executive Officer
Dominique D'Hinnin, Director
Hermann-Josef Lamberti, Director
Lakshmi N. Mittal, Director
Sir John Parker, Director
Michel Pébereau, Director
Josep Piqué i Camps, Director
Wilfried Porth, Director
Jean-Claude Trichet, Director
Bodo K. Uebber, Director

324.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the six-month period ended 30 June 2012
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…5
Unaudited Condensed IFRS Consolidated Income Statements for the second quarter of 2012
and 2011………………………………………………………………….………………………………......…6
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...7
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…8
Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....……………..…9
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..…………….........10
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at 30 June 2012…...……..………………………………………….………...…………..…......…........10
1. The Company………………………………………………………………………………..…..…..10
2. Accounting policies……………….………………………………………………..…..……….....11
3. Acquisitions and other M&A transactions……………………………………………………..11
4. Segment information………………………………..…………..………………………….....…..12
5. EBIT pre-goodwill impairment and exceptionals…..……..………………….…………..…..13
6. Significant income statement items………….…………………..………….……………........14
7. Significant items of the statement of financial position…….……………………...…........15
8. Significant cash flow items……………………………………………………..…...…..……….17
9. Number of shares……………………………………………………….........................….....….17
10. Earnings per share……………………………………..……………….………...……...………..17
11. Related party transactions.………………..…………………...…….……………………..……18
12. Number of employees ……………………………….……………….……………..........………18
13. Litigation and claims …..…………………………….……………….……………..........………18
14. Subsequent events…………………………………………………………………………………20

4

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

Unaudited Condensed IFRS Consolidated Income Statements

1 January - 30 June 2012
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 2011

DeviationM€
24,934-21,203
3,731

%
100
-85
15

M€
21,936-18,900
3,036

%
100
-86
14

M€
2,998
-2,303695-1,458-5-1,214-6-244-1,425-6-1,409

-6

-16

84

0

67

0

17

127

0

41

0

86

1,059
129
-272
-96
-239
-227
593

4
0
-1
0
-1
-1
2

521
185
-282
-269
-366
-45
110

2
1
-2
-1
-2
0
0

538
-56
10
173
127
-182
483

594
-1

2
0

109
1

0
0

485
-2

Earnings per share

€

€

€

Basic and diluted

0.73

0.13

0.60

5

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

Unaudited Condensed IFRS Consolidated Income Statements for the second
quarter of 2012 and 2011
1 April - 30 June 2012

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

1 April - 30 June 2011

DeviationM€
13,530-11,463
2,067

%
100
-85
15

M€
12,082-10,385
1,697

%
100
-86
14

M€
1,448
-1,078
370

-773

-5

-625

-5

-148

-699

-5

-759

-6

60

40

0

19

0

21

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

91

1

8

0

83

726
49
-119
-26
-96
-172
458

5
0
-1
0
-1
-1
3

340
86
-136
-119
-169
-50
121

3
1
-2
-1
-2
0
1

386
-37
17
93
73
-122
337

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

461
-3

3
0

121
0

1
0

340
-3

Earnings per share

€

€

€

Basic and diluted

0.56

0.15

0.41

6

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Incomein M €
Profit for the period
Foreign currency translation differences for foreign operations

1 January 30 June 2012

1 January 30 June 2011

593

110

18

-59

-1,2903,324

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

113

145

Actuarial losses on defined benefit plans

-830

0

Net change in fair value of cash flow hedges

Unrealized changes from investments accounted forusing the equity method

-200

116

648

-1,019Other comprehensive income, net of tax-1,541

2,507

Total comprehensive income of the period

-948

2,617

-945
-3
-948

2,618
-1
2,617

Tax on income and expense recognized directly in equity

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period

7

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

Unaudited Condensed IFRS Consolidated Statements of Financial Position
30 June 2012M€%
Non-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

31 December 2011
M€%

Deviation
M€%

12,934
14,48714
16

12,745
14,233

14
16

189
254

1
2

2,537

3

2,677

3

-140

-5

2,433

3

2,378

3

55

2

1,766
4,927
6,691
45,775

2
5
8
51

1,884
4,309
7,229
45,455

2
5
8
51

-118
618
-538
320

-6
14
-7
1

25,128
6,138
4,748
3,066
5,244
44,32490,099

28
7
5
3
6
49
100

22,563
6,399
4,503
4,272
5,284
43,021
88,476

26
7
5
5
6
49
100

2,565
-261
245
-1,206
-40
1,303
1,623

11
-4
5
-28
-1
3
2

824
7,631

1
9

820
7,990

1
9

4
-359

0
-4

-716

-1

153

0

-869

-568

-118
7,621
25
7,646

0
9
0
9

-113
8,850
20
8,870

0
10
0
10

-5
-1,2295-1,224

4
-14
25
-14

10,013
3,566
1,056
18,89733,532

11
4
1
21
37

9,125
3,628
1,050
18,297
32,100

10
4
1
21
36

888
-62
6
600
1,432

10
-2
1
3
4

5,650
1,730
8,893
328
32,32048,92182,45390,099

7
2
10
0
35
54
91
100

5,860
1,476
9,630
308
30,23247,506
79,60688,476

7
2
11
0
34
54
90
100

-210
254
-737
20
2,088
1,415
2,847
1,623

-4
17
-8
6
7
3
4
2

8

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

Unaudited Condensed IFRS Consolidated Statements of Cash Flows

1 January 30 June 2012

1 January *)30 June 2011

M€

M€

Profit for the period attributable to equity owners of the parent (Netincome)594

109(Loss) profit for the period attributable to non-controlling interests-1

1

Depreciation and amortization

913

823

Valuation adjustments

248

281

Deferred tax expense (income)

117

-20

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

-32

-57

Results on disposals of non-current assets

-21

12

Results of companies accounted for by the equity method

-97

-26

*)

88

-340

Change in other operating assets and liabilities-2,808-30

Cash (used for) provided by operating activities

-999

753

-1,168-809- Proceeds from disposals of intangible assets, PPE

77

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

-5

-436

- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-termfinancial assets

0

18

-92

-120

- Proceeds from disposals of associates and otherinvestments and long-termfinancial assets

73

40- Dividends paid by companies valued at equity

43

50

Cash provided by (used for) investing activities

1,961
889

938
-299

Change in long-term and short-term financing liabilities

302

9Cash distribution to EADSN.V. shareholders

-369

-178

Dividends paid to non-controlling interests-2-1

Changes in capital and non-controlling interests

87

-99

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 (decrease) increase in cash and cash equivalents

-5
13

-20
-289

57
-40

-49
116

Cash and cash equivalents at beginning of period

5,284

5,030

Cash and cash equivalents at end of period

5,244

5,146

Adjustments to reconcile profit for the period to cash (used for) provided
by operating activities

Change in current and non-current provisions

Investments:- Purchases of intangible assets, PPE

Change of securities

924.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012*)
In the first six months of 2012 and 2011, “contribution to plan assets for pensions" is shown in “change in current and non-current
provisions” within cash (used for) provided by operating activities. Previously, “contribution to plan assets for pensions" was disclosed in
cash provided by (used for) investing activities. It amounts in the first six months of 2012 to -320 M € (first six months 2011: -300 M €).
Prior half-year figures have been adjusted accordingly.

As of 30 June 2012, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 703 M € (710 M € as of 31
December 2011), 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
in M €
Balance at 1 January 2011

Equityattributable to Non-controllinginterests
equity owners of
the parent
8,841
95

Profit for the period
Other comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Equity transaction (IAS 27)

total
8,936

109

1

110

2,509

-2

2,507

-178

-1

-179

-45

-70

-115

Capital increase

16

4

20

Change in treasury shares

-20

0

-20

Others15

015

Balance at 30 June 2011

11,24727

11,274

Balance at 1 January 2012

8,850

20

8,870

594

-1

593

-1,539-2-1,541

-369

-2

-371

87

0

87

Equity transactions (IAS 27)

-15

10

-5

Change in treasury shares

-5

0

-5

Profit for the period
Other comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Capital increase

OthersBalance at 30 June 2012

18

0

18

7,621

25

7,646

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 30 June 2012
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

10

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

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 2012 were authorized for issue by
EADS’ Board of Directors on 26 July 2012.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with IAS 34 Interim Financial Reporting (amended 2010) as adopted by the European
Union (EU). EADS’ Consolidated Financial Statements are prepared in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International AccountingStandards Board (“IASB”) and as endorsed by the European Union (EU) as at 30 June 2012 andPart 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 2011. Except for
the amended Standards to be applied for the first time in the first six months 2012 (mentioned
below in the next section), EADS’ accounting policies and techniques are unchanged compared to
31 December 2011.
Financial reporting rules applied for the first time in the first six months 2012
The following amended Standard was applied for the first time in the first six months 2012 and iseffective for EADS as of 1 January 2012. If not otherwise stated, it does not have a material impact
on EADS’ Consolidated Financial Statements as well as its basic and diluted earnings per share.
The IASB issued amendments to IFRS 7 “Financial Instruments: Disclosures” as part of its
comprehensive review of off balance sheet activities relating to transfers of financial assets. The
amendments shall help users of financial statements evaluating the risk exposures relating to suchtransfers and the effect of those risks on an entity’s financial position and require additional
disclosures.

3. Acquisitions and other M&A transactions
On 3 April 2012, Astrium Holding S.A.S. acquired 66.8% of Space Engineering, Rome (Italy), a
specialist in digital telecommunications, RF and antenna equipment engineering for both spaceand ground based applications.
On 28 May 2012, Cassidian reduced its current shareholding of 87.4% in Grintek Ewation (Pty)Ltd., Pretoria, South Africa, to 75% to comply with local black economic empowerment (BEE)
requirements.
Both transactions are considered to be insignificant for EADS – individually and collectively. Other
M&A transactions were not material for EADS Group.

11

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

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.
 Airbus Commercial — Development, manufacturing, marketing and sale of commercial jet
aircraft of more than 100 seats; aircraft conversion and related services.
 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. “Other
Businesses” mainly comprises the development, manufacturing, marketing and sale of regional
turboprop aircraft, aircraft components as well as the Group’s activities managed in the US.
Consolidation effects, the holding function of EADS Headquarters and other activities not allocableto the reportable segments are disclosed in the column “HQ / Conso.”.

12

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

in M €

AirbusAirbusCommerMilitary
cial

Eurocopter

Astrium

Other
Cassidian Businesses

Total
segments

HQ/
Conso.

Consolidated

Six-month period ended 30 June 2012
Revenues

16,585

843

2,771

2,661

2,186

721

25,767-833

24,934

Research anddevelopment expenses-1,121

-7

-131

-54

-101

-7

-1,421-4-1,425

Profit before financeresult and income taxes

536

1

198

128

85

13

961

98

1,059

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

548

2

199

130

88

13

980

98

1,078

Six-month period ended 30 June 2011
Revenues

14,464

1,112

2,171

2,347

2,133

524

22,751-815

21,936

Research anddevelopment expenses-1,120

-14

-102

-30

-113

-4

-1,383-26-1,409Profit before financeresult and income taxes

210

2

94

101

74

2

483

38

521

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

223

3

94

103

89

12

524

39

563

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 €):13

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

1 January 30 June 2012

in M €
Profit before finance result and income taxes

1 January 30 June 2011

1,059

521

Disposal of goodwill

0

22

Exceptional depreciation (fixed assets in cost of sales)

19

20

1,078

563

Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals

6. Significant income statement items
Revenues of 24,934 M € (first half-year 2011: 21,936 M €) increase by +2,998 M €, mainly at
Airbus Commercial (+2,121 M €), Eurocopter (+600 M €) and Astrium (+314 M €). All segments,
except for Airbus Military, contributed positively to the increase of revenues. Airbus Military
includes revenues related to the A400M programme of 234 M € (first half-year 2011: 412 M €).
Companies, which were acquired in 2011, contributed to the increase of revenues by 773 M €.
The Gross Margin increases by +695 M € to 3,731 M € compared to 3,036 M € in the first halfyear of 2011. This improvement is mainly related to better performance of the long range andsingle aisle programs in Airbus Commercial and of the civil helicopter programmes in Eurocopter
and to Astrium. Based on an updated technical solution concept to fix permanently the retrofit of
the A380 wing rib issue, an additional amount of -181 M € is recognized in the first six months
2012 for the repair costs on delivered aircraft. Contractually, Airbus Commercial is not liableversus airlines for loss of use, revenue or profit or for any other direct, incidental or consequential
damages related to wing ribs issue. However, in view of overall commercial relationship, contracts
adjustments may occur, and be considered on a case by case basis. The A350 XWB Entry Into
Service has now moved into the second half of 2014. Airbus Commercial booked a charge of -124
M €, which accounts for an actual delay incurred of around three months.
Research and development expenses increase by -16 M € to -1,425 M € (first half-year 2011:-1,409 M €) mainly reflecting programs of Eurocopter and Astrium. The main contribution to theexpenses comes from the A350 XWB programme.
Share of profit from associates under the equity method and other income frominvestments of 127 M € (first half-year 2011: 41 M €) mainly consists of the share of the result ofDassault Aviation of 89 M € (first half-year 2011: 38 M €).
Finance result amounts to -239 M € (first half-year 2011: -366 M €) comprising interest result of-143 M € (first half-year 2011: -97 M €). Other financial result amounts to -96 M € (first half-year
2011: -269 M €) and mainly includes charges from the unwinding of discounted provisions(-82 M €, first half-year 2011: -81 M €), the negative revaluation of financial instruments (-43 M €,first half-year 2011: -70 M €) and the positive impact from foreign exchange valuation of monetary
items (+57 M €, first half-year 2011: a negative impact of -102 M €).
The income tax expense of -227 M € (first half-year 2011: -45 M €) corresponds to an effective
income tax rate of 28% (first half-year 2011: 29%).

14

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

7. Significant items of the statement of financial positionNon-current assets
Intangible assets of 12,934 M € (prior year-end: 12,745 M €) include 10,796 M € (prior year-end:
10,760 M €) of goodwill. This mainly relates to Airbus Commercial (6,666 M €), Cassidian(2,563 M €), Astrium (1,176 M €) and Eurocopter (328 M €). Except for an impairment charge in
Other Businesses of -20 M €, the last annual impairment tests, which were performed in the fourth
quarter of 2011, did not lead to any impairment charges. Capitalization for development costs of
the A350 XWB programme started in the second quarter 2012. Since 1 April 2012, a total amountof 128 M € is capitalized for the A350XWB.
Property, plant and equipment remain stable at 14,487 M € (prior year-end: 14,233 M €),including leased assets of 547 M € (prior year-end: 574 M €). Property, plant and equipment also
comprise “Investment property” amounting to 74 M € (prior year-end: 74 M €).
Investments in associates under the equity method of 2,537 M € (prior year-end: 2,677 M €)mainly include the equity investment in Dassault Aviation, amounting to 2,410 M € (prior year-end:
2,552 M €). The change in Dassault Aviation is affected by the recognition of a negative catch-up
regarding EADS’ 2011 share in other comprehensive income of -101 M €.
Other investments and other long-term financial assets of 2,433 M € (prior year-end:
2,378 M €) are related to Airbus for an amount of 1,651 M € (prior year-end: 1,659 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 -118 M € to 1,766 M € (prior year-end: 1,884 M €) ismainly caused by the negative variation of the non-current portion of fair values of derivative
financial instruments (-79 M €).
Deferred tax assets increase by +618 M € to 4,927 M € (prior year-end: 4,309 M €). The increaseis mainly due to the variation of fair values of derivative financial instruments.
The fair values of derivative financial instruments are included in other non-current assets(407 M €, prior year-end: 486 M €), in other current assets (273 M €, prior year-end: 404 M €), inother non-current liabilities (3,132 M €, prior year-end: 2,140 M €) and in other current liabilities(1,343 M €, prior year-end: 995 M €) which corresponds to a total net fair value of -3,795 M € (prioryear-end: -2,245 M €). The volume of hedged US dollar-contracts increases from 75.1 billion US
dollar as at 31 December 2011 to 84.1 billion US dollar as at 30 June 2012. The US dollar spot
rate became more favorable (USD/ € spot rate of 1.26 at 30 June 2012 vs. 1.29 at 31 December2011). The average US dollar hedge rate for the hedge portfolio of the Group improves from1.37 USD/ € as at 31 December 2011 to 1.36 USD/ € as at 30 June 2012.

Current assets
Inventories of 25,128 M € (prior year-end: 22,563 M €) increase by +2,565 M €. This is mainly
driven by the phasing of deliveries and a ramp-up reflected in the increase of unfinished goods
and services for Airbus (+1,736 M €), Cassidian (+338 M €) and Eurocopter (+302 M €)programmes. Airbus also records higher finished goods (+160 M €).
Trade receivables decrease by -261 M € to 6,138 M € (prior year-end: 6,399 M €), mainly caused
by Cassidian (-240 M €), Airbus (-99 M €) and Eurocopter (-90 M €), being partly offset by Astrium(+155 M €).

15

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

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 +245 M € to
4,748 M € (prior year-end: 4,503 M €) comprises among others an increase of +152 M € inreceivables from related parties and of +48 M € in VAT receivables.
Cash and cash equivalents decrease from 5,284 M € to 5,244 M € (see also note 7 “Significant
cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 7,621 M € (prior year-end: 8,850 M €). The decrease in equity is mainly due to othercomprehensive income for the period of -1,539 M € and a cash distribution to shareholders of-369 M €, partly compensated by a net income +594 M €.
Non-controlling interests increased to 25 M € (prior year-end: 20 M €).

Non-current liabilities
Non-current provisions of 10,013 M € (prior year-end: 9,125 M €) comprise the non-current
portion of pension provisions with an increase of +651 M € to 6,279 M € (prior year-end:
5,628 M €). Compared to year-end 2011, the discount rates applied to the calculation of pension
provisions decreases from 4.5 % to 3.4 % (Germany) and 3.5 % (France) and from 4.8 % to 4.4 %(UK), leading to an increase of +830 M € with a corresponding effect in deferred tax assets of+250 M € and actuarial losses of -580 M € in equity.
Moreover, other provisions are included in non-current provisions, which increase by +237 M € to
3,734 M €. This reflects the increase of the onerous contract provision for the A350 XWB, where acharge of 124 M € has been recorded.
Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions,decrease by -62 M € to 3,566 M € (prior year-end: 3,628 M €).
Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, increase in total by +600 M € to 18,897 M €(prior year-end: 18,297 M €), due to the non-current portion of liabilities for derivative financial
instruments (+992 M €) while non-current advance payments received decrease by -383 M €.

Current liabilities
Current provisions decrease by -210 M € to 5,650 M € (prior year-end: 5,860 M €) and comprisethe current portions of pensions (193 M €) and of other provisions (5,457 M €).
Trade liabilities decrease by -737 M € to 8,893 M € (prior year-end: 9,630 M €), mainly at Astrium(-448 M €) and Cassidian (-319 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +2,088 M € to 32,320 M € (prior year-end:
30,232 M €). Other current liabilities mainly comprise current customer advance payments of
26,229 M € (prior year-end: 25,006 M €), increasing by +1,223 M €.

16

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

8. Significant cash flow items
Cash (used for) provided by operating activities decreases by -1,752 M € to -999 M € (firsthalf-year 2011 adjusted by -300 M € to +753 M € - please refer to the footnote to the cash flow
statements). Gross cash flow from operations (before changes in other operating assets andliabilities) of +1,809 M € improves compared to the prior period’s level (first half-year 2011adjusted by -300 M € to +783 M €). Changes in other operating assets and liabilities amount to-2,808 M € (first half-year 2011: -30 M €), mainly reflecting back-loaded deliveries as well as a
ramp-up and thus a strong increase in inventories across most divisions, which are partly offset bycustomer advance payments received.
Cash provided by (used for) investing activities amounts to +889 M € (first half-year 2011adjusted by +300 M € to -299 M €). This mainly comprises a change in securities of +1,961 M €(first half-year 2011: +938 M €), partly offset by purchases of intangible assets and property, plantand equipment of -1,168 M € (first half-year 2011: -809 M €), mainly in Airbus.
Cash provided by (used for) financing activities increases by +302 M € to +13 M € (first halfyear 2011: -289 M €). Changes in long-term and short-term financing liabilities of +302 M € (firsthalf-year 2011: +9 M €) reflecting the resumption of the commercial paper programme andchanges in capital and non-controlling interests of +87 M € (first half-year 2011: -99 M €) related tothe issuance of new shares due to the exercise of stock options are partly offset by a cash
distribution to shareholders of -369 M € (first half-year 2011: -178 M €).

9. Number of shares
The total number of shares outstanding is 819,057,104 and 811,215,145 as of 30 June 2012 and2011, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the first half-year of 2012, the number of treasury shares held by EADS increased from5,585,780 as of 31 December 2011 to 5,783,311 as of 30 June 2012.
In the first half-year 2012, EADS issued 4,358,124 new shares (in the first half-year 2011: 994,247
new shares).

10. 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 2012
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share17

1 January to
30 June 2011

594 M €

109 M €

817,333,453

810,797,892

0.73 €

0.13 €

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

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 4th, 5th, 6th and 8th stock option plan in the first six
months of 2012 (in the first six months of 2011: the 4th and the 5th stock option plan), 1,548,793
potential shares (in the first six months 2011: 1,270,810 shares) were considered in the calculationof diluted earnings per share.

1 January to
30 June 2012
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 2011

594 M €

109 M €

818,882,246

812,068,702

0.73 €

0.13 €

11. Related party transactions
The Group has entered into various transactions with related companies in the first six months of2012 and 2011 that have all been carried out in the normal course of business. As it is the Group’s
policy, related party transactions have to be carried out at arm’s length. Transactions with relatedparties include the French government and its related entities, Daimler AG, Lagardère group andthe Spanish government (SEPI). Except for the transactions with the French and Spanish
government, such transactions are not considered material to the Group either individually or on
aggregate. The transactions with the French government include mainly sales from Eurocopter,
Astrium, Cassidian and Airbus Military. The transactions with the Spanish government include
mainly sales from Airbus Military and Cassidian. The French and Spanish government are also
customers of the A400M programme.

12. Number of employees
The number of employees as at 30 June 2012 is 135,634 as compared to 133,115 as at
31 December 2011.

13. 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.

18

24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

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 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 EUconcerning subsidies to Boeing. The US has until 23 September 2012 to implement the findings.
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 desmarchés financiers for alleged breaches of market regulations and insider trading rules withrespect 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 the same facts.

CNIM - On 30 July 2010, Constructions Industrielles de la Méditerrannée (“CNIM”) brought anaction against EADS and certain of its subsidiaries before the commercial court of Paris, alleging
anti-competitive practices, breach of long-term contractual relationships and improper terminationof pre-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 - EADS has commissioned an independent investigation into compliance allegations made inconnection with one of its subsidiaries, GPT Special Project Management Ltd. The independent
investigation remains ongoing.

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.

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24.07.2012

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2012

14. Subsequent events
On 1 July 2012, Cassidian acquired 51% of RAS GmbH, Bremen (Germany), to pursue
Rheinmetall’s activities related to Unmanned Aerial Systems (UAS) as well as cargo loading
systems (CLS) together with Rheinmetall within a new entity. The revenue of both activities
amounted to approximately 70 M € for the year 2011.
On 13 July 2012, Cassidian signed an agreement to acquire via its German legal entity EADS
Deutschland GmbH, Ottobrunn, Germany, 75.1% of the shares of Carl Zeiss Optronics GmbH,
Oberkochen, Germany, (CZO) with the intention to run the optics and optronics activities of Carl
Zeiss Optronics GmbH together with Carl Zeiss AG. CZO is a manufacturer of optronic, optic andprecision-engineered products for military and civil applications and reported revenues ofapproximately 160 M € for its last fiscal year 2010/ 2011. The closing of the transaction is subject
to anti-trust and regulatory approvals and is expected to be finalised in the second half of 2012.
The total purchase consideration for both transactions is expected to amount to approximately 140
M € based on an initial valuation of its contingent components.

On 2 July 2012, Airbus announced it will establish a manufacturing facility in the United States toassemble and deliver A320 Family aircraft. Located at the Brookley Aeroplex in Mobile, Alabama,
it will be the company’s first U.S.-based production facility. Airbus stressed that the assembly line,
which will create jobs and strengthen the aerospace industry, is part of its strategy to enhance
Airbus’ global competitiveness by meeting the growing needs of its customers in the United Statesand elsewhere. The facility in Alabama will assemble the industry-leading family of A319, A320
and A321 aircraft. The company said construction of the assembly line will begin in summer 2013.
Aircraft assembly is planned to start in 2015, with first deliveries from the Mobile facility beginningin 2016. Airbus anticipates the facility will produce between 40 and 50 aircraft per year by 2018.

20

24.07.2012

To: Th
he EADS N.V
V. shareholderrs:

Review
w report
IntroduuctionWe havve reviewed thet condensed
d consolidated
d financial infformation of EADS N.V.,
Amsterrdam, (‘the Company’) forr the six-montth period endded June 30, 22012, which ccomprises
the conndensed conso
olidated statem
ment of finan
ncial position as at June 300, 2012, and thhe relatedcondennsed consolidaated statemen
nts of income,, comprehenssive income, cchanges in eqquity andcash floows for the siix-month periiod then ended and explanaatory notes. C
Company’s mmanagement
is respo
onsible for the preparationn and presentaation of this coondensed connsolidated finnancial
information in accorrdance with In
nternational Financial
F
Repporting Standaards as adopted by theEuropeean Union (‘IAAS 34’). Our responsibility
y is to expresss a conclusioon on this condensed
consoliidated financiial informatioon based on ou
ur review.
Scope ofo Review
We connducted our review in accoordance with Dutch law in cluding standdard 2410, ‘R
Review ofInterimm Financial In
nformation Peerformed by th
he Auditor off the Entity’. A review of innterim
financiial information consists of making inquiiries, primarilly of persons responsible ffor financial
and acccounting mattters, and appllying analyticcal and other rreview proceddures. A revieew issubstanntially less in scope than an
n audit condu
ucted in accorrdance with auuditing standaards andconseqquently does notn enable us tot obtain assu
urance that w e would becoome aware off all
significcant matters that might be identified in ana audit. Acccordingly, we do not express an audit
opinionn.
Concluusion
Based ono our review
w, nothing hass come to ourr attention thaat causes us too believe that theaccomppanying conddensed consolidated financial informatioon for the six--month periodd ended
June 30
0, 2012 is nott prepared, in all material respects,rin acccordance witth IAS 34, ‘Innterim
Financial Reportingg’, as adopted by the Europpean Union.
Utrechtt, July 26, 2012

R
Rotterdam, Jully 26, 2012

G Accountantss N.V.
KPMG
(signedd by J.C.M. vaan Rooijen)

Errnst & Youngg Accountants LLP(ssigned by C.T
T. Reckers)