EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the nine-month period ended 30 September 2011
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Income Statements for the third quarter of 2011
and 2010…………………………………………………………….……………………………………......…3
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...4
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income for the third
quarter 2011 and 2010………………………………………………………………………..……….……...5
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…6
Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....……………..…7
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..……………….......8
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at 30 September 2011…....……. ………………………………….…………...…………..….....….......8
1. The Company……………………………………………………………………………………..…..8
2. Accounting policies……………….………………………………………………..…………….....9
3. Changes in the consolidation perimeter of EADS…………………………....…….………...10
4. Segment information………………………………..…………..…………………………..……..10
5. EBIT pre-goodwill impairment and exceptionals…..……..………………………………..…11
6. Significant income statement items………….…………………..………….………..……......12
7. Significant items of the statements of financial position…….……………………...…......12
8. Significant cash flow items……………………………………………………..…...…..……….15
9. Number of shares………………………………………………………..........................….....…15
10. Earnings per share……………………………………..……………….………...………………..15
11. Related party transactions.………………..…………………...…….……………………..……16
12. Number of employees ……………………………….……………….……………..........………16
13. Litigation and claims …..…………………………….……………….……………..........………17
14. Subsequent events... …..…………………………….……………….……………..........………17

1

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Unaudited Condensed IFRS Consolidated Income Statements

1 January 30 September 2011
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

1 January 30 September 2010

DeviationM€
32,687-28,256
4,431

%
100
-86
14

M€
31,554-27,256
4,298

%
100
-86
14

M€
1,133
-1,000133-1,817-5-1,739-6-78-2,151-7-2,038

-6

-113

286

1

113

0

173

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

84

0

117

0

-33

833
321
-330
-203
-212
-198
423

3
1
-1
-1
-1
-1
1

751
259
-435
-276
-452
-96
203

2
1
-1
-1
-1
0
1

82
62
105
73
240
-102
220

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

421
2

1
0

198
5

1
0

223
-3

Earnings per share

€

€

€

Basic and diluted

0.52

0.24

0.28

2

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Unaudited Condensed IFRS Consolidated Income Statements for the third
quarter of 2011 and 2010

1 July 30 September 2011
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

1 July 30 September 2010

Deviation

M€
10,751-9,356
1,395

%
100
-87
13

M€
11,246-9,630
1,616

%
100
-86
14

M€
-495
274
-221

-603

-5

-593

-5

-10

-742

-7

-737

-6

-5

219

2

24

0

195

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

43

0

57

0

-14

312
136
-48
66
154
-153
313

3
1
0
0
1
-1
3

367
93
-155
-281
-343
-8
16

3
1
-2
-2
-3
0
0

-55
43
107
347
497
-145
297

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

312
1

3
0

13
3

0
0

299
-2

Earnings per share

€

€

€

Basic and diluted

0.38

0.02

0.36

3

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income1 January 30 September
2011

1 January 30 September
2010

423

203

-33

77

390

-2,371

-53

49

-330

-550

137

-144

Tax on income and expense recognized directly in equity

-17

877

Other comprehensive income, net of tax

94-2,062

Total comprehensive income of the period

517-1,8595125517-1,865
6-1,859in M €
Profit for the period
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges

1)

Net change in fair value of available-for-sale financial assets
Actuarial losses on defined benefit plans

1)1)

Unrealized changes from investments accounted forusing the equity method

1)

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period
1)

Other comprehensive income recognized for investments accounted for using the equity method is presented
separately. Comparative information has been adjusted accordingly.

4

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income for the third quarter 2011 and 2010

in M €
Profit for the period
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges

1)

Net change in fair value of available-for-sale financial assets
Actuarial losses on defined benefit plans

1)1)

1 July 30 September
2011

1 July 30 September
2010

313

16

26

-102

-2,934

5,081

-198

272

-330

0

Unrealized changes from investments accounted forusing the equity method

1)

21

-179

Tax on income and expense recognized directly in equity

1,002-1,584

Other comprehensive income, net of tax-2,413

3,488

Total comprehensive income of the period-2,1003,504-2,106
6-2,100

3,497
7
3,504

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period
1)

Other comprehensive income recognized for investments accounted for using the equity method is presented
separately. Comparative information has been adjusted accordingly.

5

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

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
Total liabilities
Total equity and liabilities

Deviation
M€

%

14
17

278
75

2
1

2,451

3

136

6

3

2,386

3

-11

0

1,945
4,124
6,280
42,467

2
5
7
48

1,975
4,250
5,332
41,197

2
5
6
50

-30
-126
948
1,270

-2
-3
18
3

24,166
6,767
4,763
4,718
5,117

28
8
5
5
6

20,862
6,632
3,632
5,834
5,030

25
8
4
7
6

3,304
135
1,131
-1,116
87

16
2
31
-19
2

0

0

0

0

0

45,531
87,99852
100

41,99083,187

50
100

3,541
4,811

8
6

820
7,707

1
8

816
7,691

1
9

4
16

0
0

787

1

446

1

341

76

-113
9,201
29
9,230

0
10
0
10

-112
8,841
95
8,936

0
11
0
11

-1
360
-66
294

1
4
-69
3

8,427
3,532
1,237
18,13031,326

10
4
1
21
36

8,213
2,870
1,195
18,20330,481

10
3
2
22
37

214
662
42
-73
845

3
23
4
0
3

5,862
1,184
9,310
226
30,86047,442
78,76887,998

7
1
11
0
35
54
90
100

5,766
1,408
8,546
254
27,796
43,77074,251
83,187

7
2
10
0
33
52
89
100

96
-224
764
-28
3,064
3,672
4,517
4,811

2
-16
9
-11
11
8
6
6

30 September 2011M€%

31 December 2010
M€%

11,577
13,57913
15

11,29913,504

2,587

3

2,375

6

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Unaudited Condensed IFRS Consolidated Statements of Cash Flows

Profit for the period attributable to equity owners of the parent(Net income)1 January 30 September
2011

1 January 30 September
2010

M€

M€
421

198

2

5

1,192

1,149

Valuation adjustments

-91

31

Deferred tax expense (income)

112

-51

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

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

-73

72

Results on disposals of non-current assets

-17

-18

Results of companies accounted for by the equity method

-60

-83

Change in current and non-current provisions

357

250

Change in other operating assets and liabilities

84

531

1,927

2,084

-1,333-1,307

Cash provided by operating activities
Investments:- Purchase of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE

65

18

-439

0

18

0

-179

-114

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

46

69- Dividends paid by companies valued at equity

50

41- Acquisitions of subsidiaries and joint ventures (net of cash)- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-term financial assets

Change in securities

23-1,831

Contribution to plan assets for pensions

-300

-323

Cash (used for) investing activities-2,049-3,447

Change in long-term and short-term financing liabilities

478

-881

Cash distribution to EADS N.V. shareholders

-178

0

Dividends paid to non-controlling interests-4-6

Change in capital and non-controlling interests

-57

-25

Change in treasury shares

-1

-14

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

238

-926

-29

42

Net increase (decrease) in cash and cash equivalents

87-2,247

Cash and cash equivalents at beginning of period

5,030

7,038

Cash and cash equivalents at end of period

5,117

4,791

7

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

As of 30 September 2011, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 638 M € (735 M € as of 31
December 2010), 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 2010

Equityattributable to Non-controlling
equity owners ofinterests
the parent
10,535
106

Profit for the period

198

total
10,6415

203-2,0631-2,0620-6-6Capital decrease

-20

-6

-26

Change in treasury shares

-14

0

-14

8

-6

2

Balance at 30 September 2010

8,644

94

8,738

Balance at 1 January 2011

8,841

95

8,936

Profit for the period

421

2

423

Other comprehensive income

91

3

94

-178

-4

-182

Capital increase

57

4

61

Change in treasury shares

-1

0

-1

Equity transaction (IAS 27)

-45

-70

-115

Others

15

-1

14

9,201

29

9,230

Other comprehensive income
Dividends to non-controlling interests

OthersCash distribution to shareholders / dividends to noncontrolling interests

Balance at 30 September 2011

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 30 September 2011
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 and8

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

rendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the nine-month period ended 30 September 2011 were authorized for
issue by EADS’ Board of Directors on 9 November 2011.

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 September 2011
and Part 9 of Book 2 of the Netherlands Civil Code. They comprise (i) IFRS, (ii) International
Accounting Standards (“IAS”) and (iii) Interpretations originated by the IFRS Interpretations
Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
These Unaudited Condensed IFRS Interim Consolidated Financial Statements should be read in
conjunction with EADS’ Consolidated Financial Statements as of 31 December 2010. Except for
the revised or amended Standards to be applied for the first time in the first nine months 2011
(mentioned below in the next section), EADS’ accounting policies and techniques are unchanged
compared to 31 December 2010.
Financial reporting rules applied for the first time in the first nine months 2011
The following revised or amended Standards were applied for the first time in the first nine months
2011 and are effective for EADS as of 1 January 2011. If not otherwise stated, they do not have amaterial impact on EADS’ Consolidated Financial Statements as well as its basic and diluted
earnings per share.
The IASB issued a revised version of IAS 24 “Related Party Disclosures” that simplifies thedisclosure requirements for government related entities and clarifies the definition of a related
party.
The amendment to IAS 32 “Classification of Rights Issues – Amendment to IAS 32 Financial
Instruments: Presentation” addresses the accounting for rights issues (rights, options or warrants)that are denominated in a currency other than the functional currency of the issuer. In particular,when the amendment is retrospectively applied, rights (and similar derivatives) to acquire a fixed
number of an entity’s own equity instruments for a fixed price stated in a currency other than theentity’s functional currency would be equity instruments, provided the entity offers the rights pro
rata to all of its existing owners of the same class of its own non derivative equity instruments.
The third omnibus of amendments to IFRS Standards (2010) includes amendments to 8 IFRSStandards and 1 Interpretation. The amendments refer to IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 21,
IAS 28, IAS 31, IAS 34 and IFRIC 13. Most of the amendments are mandatory for annual periods
beginning on or after 1 January 2011 with separate transition provisions for each amendment.
To correct an unintended consequence of IFRIC 14, the IASB issued amendments to IFRIC 14“Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14)”. Without theseamendments in some circumstances entities are not permitted to recognise some voluntary
prepayments for minimum funding contributions as an asset. This was not intended when IFRIC
14 was issued, and the amendments correct this issue.

9

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

3. Changes in the consolidation perimeter of EADSOn 30 June 2011, Eurocopter Holding S.A.S., a subsidiary of EADS N.V., acquired 98.32% of
Vector Aerospace Corporation, Toronto (Canada), (hereafter referred to as “Vector”) an
independent global provider of OEM approved maintenance, repair and overhaul aviation services(MRO services) for aircraft and helicopter operators following a CAD 13.00 / share cash offer for
all of the outstanding common shares of Vector, including all shares that may be issued on theexercise of options granted under Vector’s share option plan. As the purchase price allocation ofthis transaction is not finalized yet, EADS refers to the Vector-related notes disclosures provided
for its six-month period ended June 30, 2011 for further details of this transaction.

On 30 July 2011, Astrium Holding SAS entered into an agreement with Apax Partners, a French
Private Equity Fund, to acquire Vizada Group, a leading independent provider of global satellitebased mobility communication services for 960 M USD. Closing of the transaction is subject tocustomary regulatory approvals.

Apart from these transactions, other acquisitions or disposals by the Group that occurred in thefirst nine months of 2011 or 2010, respectively, are not material.

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 and related services; aircraft conversion.
 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 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.”.

10

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011
AirbusCommercial

in M €

AirbusMilitary

Eurocopter

Astrium

Other
Total
Cassidian Businessegments
ses

HQ/
Conso.

Consolidated

Nine-month period ended 30 September 2011
Revenues

21,120

1,747

3,458

3,440

3,419

833

34,017-1,33032,687

Research anddevelopment expenses-1,690

-15

-154

-60

-174

-7

-2,100-51-2,151

Profit before financeresult and income taxes

286

4

156

162

153

10

771

62

833

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

306

5

157

165

170

20

823

62

885

Nine-month period ended 30 September 2010
Revenues

20,446

1,540

3,085

3,226

3,470

805

32,572-1,01831,554

Research anddevelopment expenses-1,607

-6

-135

-50

-181

-6

-1,985-53-2,038

Profit (loss) before
finance result andincome taxes

308

-36

120

155

199

-6

740

11

751

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

328

-35

121

158

204

-6

770

14

784

5. EBIT pre-goodwill impairment and exceptionals
EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic
performance. The term “exceptionals” refers to such items as depreciation expenses of fair value
adjustments relating to the EADS merger, the Airbus combination and the formation of MBDA, as
well as impairment charges thereon. It also comprises disposal impacts related to goodwill and fairvalue adjustments from these transactions. EBIT pre-goodwill impairment and exceptionals is
treated by management as a key indicator to measure the segments’ economic performances.
The reconciliation from profit before finance result and income taxes to EBIT pre-goodwill
impairment and exceptionals is set forth in the following table (in M €):1 January 30 September
2011

1 January 30 September
2010

833

751

Disposal of goodwill

22

0

Exceptional depreciation (fixed assets in cost of sales)

30

33

885

784

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

EBIT pre-goodwill impairment and exceptionals

11

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

6. Significant income statement items
Revenues of 32,687 M € (first nine months 2010: 31,554 M €) increase by +1,133 M €, mainly at
Airbus Commercial (+674 M €) and Eurocopter (+373 M €). Airbus Military includes revenues
related to the A400M programme of 635 M € recognized under the percentage of completion
method based on milestones (first nine months 2010: 515 M €). Moreover, Astrium also
contributes to the increase of revenues whereas Cassidian revenues decrease slightly.
Gross margin increases by +133 M € to 4,431 M € compared to 4,298 M € in the first nine monthsof 2010. This improvement is mainly related to better performance of legacy programmes at Airbus
Commercial. The operational improvement at Airbus including favorable phasing, Eurocopter andAstrium is partly compensated by unfavorable foreign exchange rate effects at Airbus Commercial.
Research and development expenses increase by -113 M € to -2,151 M € (first nine months
2010: -2,038 M €) principally reflecting an increase for the Airbus A350XWB.
Other income increases by +173 M € to 286 M € (first nine months 2010: 113 M €) mainly due toa release of refundable advances of +192 M € (please refer to ”other non-current liabilities” in note
7 “Significant items of the statements of financial position”).
Share of profit from associates under the equity method and other income frominvestments of 84 M € (first nine months 2010: 117 M €) mainly consists of the consistently
estimated share of the result of Dassault Aviation of 67 M € (first nine months 2010: 100 M €). The
Dassault Aviation equity accounted-for income in the first nine months 2011 includes a negative
catch-up on 2010 results amounting to -3 M € (first nine months 2010: +3 M € positive catch-up on
2009 results).
Finance result amounts to -212 M € (first nine months 2010: -452 M €) comprising interest resultof -9 M € (first nine months 2010: -176 M €). The improvement is mainly due to a positive impact of+120 M € related to a release of refundable advances (please refer to ”other non-current liabilities”
in note 7 “Significant items of the statements of financial position”). Other financial result amounts
to -203 M € (first nine months 2010: -276 M €) and mainly includes charges from the negativerevaluation of financial instruments (-54 M €, first nine months 2010: -180 M €), the positive impact
from foreign exchange valuation of monetary items (37 M €, first nine months 2010: 72 M €) andthe unwinding of discounted provisions (-108 M €, first nine months 2010: -174 M €).
The income tax expense of -198 M € (first nine months 2010: -96 M €) corresponds to an effective
income tax rate of 32% (first nine months 2010: 32%).

7. Significant items of the statements of financial positionNon-current assets
Intangible assets of 11,577 M € (prior year-end: 11,299 M €) include 9,994 M € (prior year-end:
9,809 M €) of goodwill, which is mainly allocated to Airbus Commercial (6,425 M €), Cassidian(2,536 M €), Astrium (643 M €) and Eurocopter (299 M €). The increase of goodwill primarily
relates to the acquisition of Vector (please refer to note 3 “Changes in the consolidation perimeterof EADS”). The last annual impairment tests, which were performed in the fourth quarter of 2010,
did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of -32 M €, property, plant and equipment increase by+107 M € to 13,579 M € (prior year-end: 13,504 M €), including leased assets of 577 M € (prioryear-end: 759 M €). Property, plant and equipment also comprise “Investment property” amounting
to 74 M € (prior year-end: 77 M €).

12

09.11.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Investments in associates under the equity method of 2,587 M € (prior year-end: 2,451 M €)mainly reflect the increase in the value of the equity investment in Dassault Aviation, amounting to2,474 M € (prior year-end: 2,318 M €).
Other investments and other long-term financial assets of 2,375 M € (prior year-end:
2,386 M €) are related to Airbus for an amount of 1,597 M € (prior year-end: 1,765 M €), mainly
concerning the non-current portion of aircraft financing.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The decrease by -30 M € to 1,945 M € (prior year-end: 1,975 M €) ismainly caused by the decrease of paid option premiums (-50 M €).
Deferred tax assets of 4,124 M € (prior year-end: 4,250 M €) are presented as non-current assets
as required by IAS 1. The decrease is mainly due to the positive variation of fair values ofderivative financial instruments.
The fair values of derivative financial instruments are included in other non-current assets(595 M €, prior year-end: 602 M €), in other current assets (625 M €, prior year-end: 364 M €), inother non-current liabilities (1,878 M €, prior year-end: 2,109 M €) and in other current liabilities(675 M €, prior year-end: 821 M €) which corresponds to a total net fair value of -1,333 M € (prioryear-end: -1,964 M €). The volume of hedged US dollar-contracts increases from 70.2 billion US
dollar as at 31 December 2010 to 71.8 billion US dollar as at 30 September 2011. The US dollar
spot rate became less favorable (USD / € spot rate of 1.35 at 30 September, 2011 vs. 1.34 at 31
December 2010). The average US dollar hedge rate for the hedge portfolio of the Group remains
stable at 1.38 USD / € as at 30 September 2011 and at 31 December 2010.

Current assets
Inventories of 24,166 M € (prior year-end: 20,862 M €) increase by +3,304 M €. This is partly
driven by higher unfinished goods and services for Airbus (+664 M €), Eurocopter (+550 M €),Cassidian (+350 M €) and Astrium (+252 M €) programmes. Moreover, there are also increases infinished goods (+692 M €) and higher advance payments made (+416 M €) for the Group.
Trade receivables increase by +135 M € to 6,767 M € (prior year-end: 6,632 M €), mainly causedby Eurocopter (+394 M €) and Astrium (+153 M €), partly compensated by a decrease at Airbus(-319 M €) and Cassidian (-69 M €).
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The increase of +1,131 M € to
4,763 M € (prior year-end: 3,632 M €) mainly relates to “current other financial assets” (+642 M €)and “current other assets” (+318 M €).
Cash and cash equivalents slightly increase from 5,030 M € to 5,117 M € (see also note 8“Significant cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 9,201 M € (prior year-end: 8,841 M €). The increase in equity is mainly due to total
comprehensive income for the period of +512 M €, mainly due to the profit for the period andchange of fair values in cash flow hedges, partly compensated by actuarial losses on defined
benefit plans. The cash distribution to EADS NV shareholders of -178 M € further reduces equity.

13

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Non-controlling interests decrease by -66 M € to 29 M € (prior year-end: 95 M €), mainly due tothe purchase of the remaining 25% of DADC Luft- und Raumfahrt Beteiligungs AG, Munich by
EADS.

Non-current liabilities
Non-current provisions of 8,427 M € (prior year-end: 8,213 M €) comprise the non-current
portion of pension provisions with an increase of +215 M € to 5,252 M € (prior year-end:
5,037 M €) mainly resulting from actuarial losses on defined benefit plans, partly compensated bycontributions to plan assets.
Moreover, other provisions, which are part of non-current provisions, remain stable at 3,175 M €(prior year-end: 3,176 M €). The decrease in provisions for aircraft financing activities (-108 M €),mainly due to reclassifications to current provision, is counterbalanced by an increase in loss
making provisions (+147 M €). Included in the increase are 200 M € which are related to the
A350XWB programme reflecting the start of its Final Assembly Line now scheduled for early 2012and Entry-into-Service now scheduled for the first half-year 2014.
Long-term financing liabilities, mainly comprising bonds, increase by +662 M € to 3,532 M €(prior year-end: 2,870 M €). This increase is mainly related to new loans of 752 M € in total, which
are granted by the European Investment Bank and the Development Bank of Japan.
Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, decrease in total by -73 M € to 18,130 M €(prior year-end: 18,203 M €), due to decreases of fair values for financial instruments and ofrefundable advances in “non-current other financial liabilities”, partly compensated by higher
advance payments.
Refundable advances including interest accretion for the total amount of 406 M € representing
obligations arising out of contracts associated with the long-range programme in Airbus
Commercial have been settled as a result of actions taken by Airbus in the third quarter 2011, due
to the termination of the A340 programme. The release of the liabilities has positively affected theconsolidated income statement before taxes by 192 M € in other operating income and by 120 M €in interest result and will further result in an associated operating cash outflow of approximately
94 M € in the fourth quarter 2011.

Current liabilities
Current provisions increase by +96 M € to 5,862 M € (prior year-end: 5,766 M €) and comprisethe current portion of pension provisions (153 M €) and of other provisions (5,709 M €). An
increase of provisions for outstanding costs (+200 M €) and of provisions for aircraft financing(+82 M €) is partly compensated by a decrease in provisions for loss making costs (-152 M €). The
provisions for loss making contracts include provisions for the A400M programme of 2,159 M €(prior year-end: 2,344 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +3,064 M € to 30,860 M € (prior year-end:
27,796 M €). Other current liabilities mainly comprise current customer advance payments of
26,203 M € (prior year-end: 23,285 M €), increasing by +2,918 M €.

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

8. Significant cash flow items
Cash provided by operating activities decreases by -157 M € to +1,927 M € (first nine months
2010: +2,084 M €). Gross cash flow from operations (before changes in other operating assets
and liabilities) of +1,843 M € improves compared to the prior period’s level (first nine months 2010:+1,553 M €). Changes in other operating assets and liabilities amount to +84 M € (first ninemonths 2010: +531 M €), mainly reflecting a higher level of advance payments received and tradeliabilities, partly compensated by an increase in inventories.
Cash used for investing activities amounts to -2,049 M € (first nine months 2010: -3,447 M €).
This mainly comprises purchases of intangible assets and property, plant and equipment of-1,333 M € (first nine months 2010: -1,307 M €), namely in Airbus division, acquisitions ofsubsidiaries and joint ventures of -439 M € (first nine months 2010: 0 M €), primarily due to thepurchase of Vector Aerospace, and contributions to plan assets for pensions of -300 M € (first ninemonths 2010: -323 M €).
Cash provided by/ used for financing activities improves by +1,164 M € to +238 M € (first ninemonths 2010: -926 M €). While the outflow in the first nine months 2010 primarily comprised therepayment of the first tranche of the EMTN bond (1 billion €) (included in change in long-term andshort-term financing liabilities), the cash distribution to shareholders of -178 M € as well as thepurchase of the remaining 25% of the DADC Luft- und Raumfahrt Beteiligungs AG (shown inchanges in capital and non-controlling interests) are included in the first nine months 2011.
Moreover, in the first nine months 2011 new loans were granted to EADS by the European
Investment Bank and the Development Bank of Japan in the amount of 752 M € in total.

9. Number of shares
The total number of shares outstanding is 814,822,229 and 810,461,129 as of September 30,
2011 and 2010, respectively. EADS’ shares are exclusively ordinary shares with a par value of
1.00 €.
During the first nine months 2011, the number of treasury shares held by EADS decreased from
5,341,084 as of 31 December 2010 to 5,319,337 as of 30 September 2011.
In the first nine months of 2011, EADS issued 1,372,167 new shares (in the first nine months of
2010: 221,200 new shares) as a result of the exercise of stock options in compliance with theimplemented stock option plans. Under the 2011 Employee Stock Ownership Plan, which was
granted in June 2011, 2,445,527 shares were issued in July 2011. During the first nine months
2010, no Employee Stock Ownership Plan was implemented.

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:

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share

1 January to 30
September 2011

1 January to 30
September 2010

421 M €

198 M €

811,713,726

810,745,035

0.52 €

0.24 €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. After the end of thevesting period for the performance and restricted shares, the Group’s only remaining category of
dilutive potential ordinary shares is stock options. Since the average price of EADS shares
exceeded the exercise price of the 4th and the 5th stock option plan in the first nine months of 2011
(in the first nine months of 2010: the 5th stock option plan), 1,257,453 potential shares (in the firstnine months 2010: 125,934 shares) were considered in the calculation of diluted earnings per
share.

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
September 2011

1 January to 30
September 2010

421 M €

198 M €

812,971,179

810,870,969

0.52 €

0.24 €

11. Related party transactions
The Group has entered into various transactions with related companies in the first nine months of2011 and 2010 that have 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 withrelated parties include the French State, Daimler AG, Lagardère and SEPI (Spanish State). Except
for the transactions with the French State and SEPI and the aforementioned transaction with theDaimler AG, such transactions are not considered material to the Group either individually or on
aggregate. The transactions with the French State include mainly sales from the Eurocopter,
Astrium and Cassidian divisions. The transactions with SEPI include mainly sales from Airbus
Military and Cassidian. The French and Spanish State are also customers of the A400M
programme.
In the first nine months of 2011, EADS purchased the remaining 25% of DADC Luft- undRaumfahrt Beteiligungs AG, Munich from Daimler AG for a consideration of 110 M €.

12. Number of employees
The number of employees as at 30 September 2011 is 128,038 as compared to 121,691 as at 31
December 2010.

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

13. Litigation and claims
The following supplements and amends the discussion set forth under note 32 "Litigation andclaims" in the notes to the consolidated financial statements for the year ended 31 December
2010:
WTO Proceedings - On 31 March 2011, the final report was published in the case brought by the
EU concerning subsidies to Boeing and has been appealed. On 18 May 2011, the WTO Appellate
Body published its final report in the case brought by the US assessing funding to Airbus from
European governments. Exact timing of further steps in the WTO litigation process is subject tofurther rulings and to negotiations between the US and the EU. Unless a settlement, which iscurrently not under discussion, is reached between the parties, the litigation is expected tocontinue for several years.
EPI Arbitration - On 26 April 2011, Airbus Military SL (AMSL) and Europrop International GmbH
(EPI) agreed to terminate the stayed arbitration proceedings before the International Chamber ofCommerce (ICC), following signing of an amendment to the engine agreement related to the
A400M aircraft programme.
Guardia di Finanza Proceedings – In September 2011, Astrium and Italian tax authorities agreed
on a settlement to terminate their respective claims. Astrium will therefore argue for a dismissal of
the pending proceedings against its legal representatives.

14. Subsequent events
On 5 October 2011, Airbus S.A.S., a subsidiary of EADS N.V., acquired 96.7 % of Satair A/S,
Copenhagen, Denmark ("Satair") via its subsidiary Airbus Denmark Holding ApS following a public
voluntary conditional tender offer of DKr 580 / share for all of the outstanding shares of Satair,including an offer of DKr 378.66 / warrant for or each warrant holder.
Satair is a Danish Group listed on the NASDAQ OMX Copenhagen and a premier independent
distributor of aircraft parts and services specialised in expendables and components. The
acquisition will facilitate the growth of Airbus' material management business and offers an
opportunity to develop new services both in civil and governmental markets.
During Satair´s fiscal year 2010/2011 until June 2011 Satair realised 296 M € revenues equallydistributed in Europe/ Middle East/ Africa (EMEA), Asia Pacific and North/South America, an EBIT
of 22 M € and a net profit of 15 M € from continuing activities as well as a profit from discontinued
operations of 49 M €.
The following table provides an overview of the consideration transferred, the preliminary estimateof the fair value of the identifiable assets acquired and liabilities assumed as at the date ofacquisition determined based on Satair's YE 2010/2011 financial statements as of 30 June 2011
published on 14 September 2011.

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

Preliminary
fair value
recognised on
acquisition
58
8
4
81
50
39
14
254

in M €
Intangible assets
Property, plant and equipment
Other non-current assets
Inventories
Trade receivables
Securities
Cash and cash equivalents

Provisions
Financing liabilities
Trade liabilities
Tax liabilities
Other liabilities

0
45
42
3
31
121

Preliminary net assets acquired
Preliminary goodwill arising on acquisition

133
210

Preliminary total consideration

343

The preliminary total consideration includes the amount paid in cash for the acquisition of 96.7% of
Satair’s shares and 100% of warrants (331 M €) at the beginning of October 2011 as well as the
expected amount of approximately 12 M € to be paid to the remaining non-controlling interest
shareholders within the upcoming squeeze out procedures.
Intangible assets to be identified in a purchase price allocation are currently expected to include
primarily supplier relationships and a brand name. The preliminary goodwill before purchase priceallocation exercise of 210 M € includes a control premium reflecting the expected synergies arisingfrom the combination.
At the acquisition date the trade and other receivables comprise gross contractual amounts due of
51 M € of which approximately 1 M € were expected to be uncollectible resulting in a fair value ofthe trade receivables portfolio of approximately 50 M €.
As this acquisition took place on 5 October 2011, Satair has not contributed to the revenues and to
the profit of the first three quarters of 2011 of EADS Group. Had this business combination beeneffected at the beginning of the year, EADS’ year to date revenues / EBIT / net earnings for the
first half year 2011 are expected to have been approximately 151 M € / 11 M € / 8 M € higher.
EADS considers these ‘pro-forma’ figures to represent an initial approximate measure of theperformance of the combined Group on an annualised basis and to provide an initial reference
point for comparisons in future periods – but only based on the latest available IFRS figures of
Satair as of 30 June 2011 and without considering unwinding effects on EBIT and net earnings
from the purchase price allocation.
Acquisition related costs amounting to 5.5 M € year to date have been excluded from theconsideration transferred and have been recognised as an expense in the current year, within theother expenses’ line item in the consolidated income statement.

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2011

On 20 October 2011, Airbus Operations GmbH, a subsidiary of EADS N.V., acquired the majorityof the shares and voting rights of PFW Aerospace AG ("PFW"), Speyer, Germany. PFW is a
specialised producer of tube and duct systems, aircraft on-board cargo loading systems as well as
structural and assembly components.
Airbus’ investment is intended to stabilise PFW´s financial position and operational set up during
its current turnaround situation. EADS and Airbus are currently assessing the implications of thistransaction for EADS' financial reporting. PFW reported revenues of 214 M € for the year 2010.

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