EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009First quarter 2009 Report

Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the three-month period ended March 31, 2009
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Balance Sheets….…..………….……………...……...…3
Unaudited Condensed IFRS Consolidated Cash Flow Statements……………....…...…………..…4
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income (Loss)……...5
Unaudited Condensed IFRS Consolidated Reconciliation of Movement in Equity attributable toEquity holders of the parent and Minority interests…..…………...…………………..………….....…5
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at March 31, 2009…...……. ………………………………………….…………...…………..….....…....6
1. The Company……………………………………………………………………………………..…..6
2. Accounting policies……………….………………………………………………..…………….....6
3. Accounting for the A400M programme..………….……………………………………………...8
4. Changes in the consolidation perimeter of EADS…………………………....…….………...10
5. Segment information………………………………..…………..…………………………..……..10
6. EBIT pre-goodwill impairment and exceptionals…..……..………………………………..…12
7. Significant income statement items………….…………………..………….………..……......12
8. Significant balance sheet items…………………...…………………………………...……......13
9. Significant cash flow items……………………………………………………..…...…..……….15
10. Number of shares………………………………………………………..........................….....…15
11. Earnings per share……………………………………..……………….………...………………..16
12. Related party transactions ………………..…………………...…….……………………..……16
13. Number of employees ……………………………….……………….……………..........………16
14. Litigation and claims …..…………………………….……………….……………..........………17
15. Subsequent events ……………………………….……………………………..…….………..…18

1

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

Unaudited Condensed IFRS Consolidated Income Statements

January 1 31, 2009
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expensesM€
8,467-7,260
1,207

March
%

January 1 31, 2008

100
-86
14

M€
9,853
-8,145
1,708

-548

-6

-562
70

March
%

Deviation

100
-83
17

M€
-1,386
885
-501

-485

-5

-63

-7

-534

-5

-28

1

25

0

45

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

49

1

44

1

5

216
122
-131
40
31
-77
170

3
1
-1
0
0
-1
2

758
147
-154
-333
-340
-125
293

8
1
-2
-3
-4
-1
3

-542
-25
23
373
371
48
-123

Attributable to:Equity holders of the parent (Netincome)Minority interests

170
0

2
0

285
8

3
0

-115
-8

Earnings per share

€

€

€

Basic and diluted

0.21

0.35

-0.14

2

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

Unaudited Condensed IFRS Consolidated Balance Sheets

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
Non-current assets / disposal groups
classified as held for sale
Total assets
Total equity
Equity attributable to equity holders of
the parent
Capital stockReserves
Accumulated other comprehensive
incomeTreasury shares
Minority 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

March 31, 2009
M€%

December 31, 2008
M€%

11,16012,28015
16

11,171
12,243

15
16

-11
37

0
0

2,414

3

2,356

3

58

2

1,748

2

1,712

2

36

2

2,364
3,239
3,240
36,445

3
4
4
47

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

3
4
4
47

-282
483
200
521

-11
18
7
1

22,144
5,087
4,169
2,869
6,979

28
7
5
4
9

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

26
7
6
5
9

2,692
-180
-421
-1,043
234

14
-3
-9
-27
3

0

0

263

0

-263

41,24877,69353
100

40,22976,153

53
100

1,019
1,540

3
2

815
8,732

1
11

815
8,558

1
11

0
174

0
2

886

1

1,758

3

-872

-50

-99
10,334105
10,439

0
13
0
13

-109
11,022
104
11,126

0
15
0
15

10
-688
1
-687

-9
-6
1
-6

7,601
2,069
1,044
17,26527,979

10
3
1
22
36

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

10
4
1
22
37

122
-977
91
441
-323

2
-32
10
3
-1

4,644
2,274
8,154
201
24,002

6
3
11
0
31

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

6
2
10
0
30

61
816
330
0
1,498

1
56
4
0
7

0

0

155

0

-155

39,27567,254
77,69351
87
100

36,72565,02776,153

48
85
100

2,550
2,227
1,540

3

Deviation
M€

%

7
3
2

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

Unaudited Condensed IFRS Consolidated Cash Flow Statements
January 1 - March
31, 2009
M€
Profit for the period attributable to equity holders of the parent(Net incom e)Profit for the period attributable to m inority interes ts
Adjustm ents to reconcile profit for the period (net incom e) tocash provided b y (used for) operating activities
Depreciation and am ortization
Valuation adjus tm ents
Deferred tax expens e
Change in incom e tax as s ets , incom e tax liabilities andprovis ions for actual incom e tax
Res ults on dis pos al of non-current as s ets
Res ults of com panies accounted for by the equity m ethod
Change in current and non-current provis ions
Change in other operating as s ets and liabilities
Cash (used for) provided by operating activities- Purchas e of intangible as s ets , PPE- Proceeds from dis pos als of intangible as s ets , PPE- Proceeds from dis pos als of s ubs idiaries (net of cas h)- Paym ents for inves tm ents in as s ociates and otherinves tm ents and long-term financial as s ets- Proceeds from dis pos als of as s ociates and otherinves tm ents and long-term financial as s ets
Dis pos als of non-current as s ets / dis pos al groups clas s ified
as held for s ale and liabilities directly as s ociated with noncurrent as s ets clas s ified as held for s ale
Change of s ecurities
Cash provided by (used for) investing activities
Change in long-term and s hort-term financing liabilities
Change in m inority interes ts and capital increas e
Dis pos al of treas ury s hares
Cash (used for) financing activities
Effect of foreign exchange rate changes and other valuation
adjus tm ents on cas h and cas h equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

January 1 - March
31, 2008
M€

170
0

285
8

369
110
36

420
518
107

-41
-44
-44
102
-1.018
-360
-310
7
15

11
-13
-43
22
138
1.453
-326
0
0

-48

-63

7

15

104
891
666
-105
1
10
-94

0
-1.918-2.292
-294
0
26
-268

22
234

-42
-1.149

6.745
6.979

7.549
6.400

Note: For retrospective adjustments concerning the first quarter 2008 please refer to Note 9 “Significant cash flow items”.

As of March 31, 2009, EADS’ cash position (stated as cash and cash equivalents in the unaudited
consolidated cash flow statements) includes 628 M € (666 M € as of December 31, 2008), which
represent EADS’ share in MBDA’s cash and cash equivalents deposited at other shareholders. These
funds are available for EADS upon demand.

4

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income (Loss)
January 1 January 1 March 31, 2009 March 31, 2008

in M €
Profit for the period

170

293

Foreign currency translation differences for foreign operations

11

-68

Changes in fair value of cash flow hedges-1,311

826

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

29

-25

Tax on income and expense recognized directly in equity

399

-256

Other comprehensive income (loss), net of tax

-872

477

Total comprehensive income (loss) of the period

-702

770

-702
0
-702

762
8
770

Attributable to:Equity holders of the parent
Minority interests
Total comprehensive income (loss) of the period

Unaudited Condensed IFRS Consolidated Reconciliation of Movement inEquity attributable to Equity holders of the parent and Minority interests

Balance at January 1, 2008

Equityattributable toequity holders of
the parent
13,09085

13,175

Total comprehensive income

762

8

770

Sale of treasury shares

26

0

26

Others606Balance at March 31, 2008

13,88493

13,977

Balance at January 1, 2009
Total comprehensive loss

11,022-702

104
011,126-702

Sale of treasury shares

10

0

10

Others4

1

5

10,334105

10,439in M €

Balance at March 31, 2009

5

Minority
interests

total

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at March 31, 2009
1. The Company
The accompanying Condensed Interim Consolidated Financial Statements (unaudited) 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 (registered office at Mendelweg 30, 2333 CS Leiden,
The Netherlands), and are prepared and reported in Euros (“€”). EADS’ core business is the
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 three-month period ended March 31, 2009 were authorized for issue
by EADS’ Board of Directors on May 11, 2009.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EU).
EADS’ Consolidated Financial Statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”), adopted by the International Accounting Standards Board (“IASB”)
as endorsed by the EU. They comprise (i) IFRS, (ii) International Accounting Standards (“IAS”)
and (iii) Interpretations originated by the International Financial Reporting Interpretations
Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).

Financial reporting rules applied for the first time in the first quarter 2009
The following Standards and revised Standards were applied for the first time in the first quarter2009 and are effective for EADS as of January 1, 2009. If not otherwise stated, it is expected thatthe following standards and revised standards will not have a material impact on EADS’
Consolidated Financial Statements.
The Amendment to IAS 23 “Borrowing Costs” removes the option of recognising borrowing costs
that are directly attributable to the acquisition, construction or production of a qualifying asset as
an expense and therefore requires capitalising such borrowing costs as part of the cost of theasset prospectively. The application of the amended IAS 23 results in the mandatory capitalisationof borrowing costs related to qualifying assets and thus increases the amount of total costs
capitalised and thus the basis of depreciations of such qualifying assets.
IFRS 8 “Operating Segments” 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 the internal management reports regularly reviewed by EADS’ Chief
Operating Decision Maker in order 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 relating changes to the presentation of segment information.
The Amendment to IAS 1 “Presentation of Financial Statements: A revised presentation”
introduces among other notes disclosures the term total comprehensive income, which represents

6

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009changes in equity during a period other than those changes resulting from transactions withowners in their capacity as owners.
The Amendments to IAS 32 and IAS 1 “Puttable Financial Instruments”.
The Amendments to IFRS 1 “First-time Adoption of International Financial Reporting Standards”
and IAS 27 “Consolidated and Separate Financial Statements”.
The Amendments to IFRS 2 “Share Based Payments - Vesting Conditions and Cancellations”.

Finally, in May 2008 the IASB issued its omnibus of amendments to its standards primarily with aview to removing inconsistencies and clarifying wording. There are separate transition rules foreach amended standard. Except for the amendments regarding IAS 16 and IAS 7 (see Note 9“Significant cash flow items”), which were early adopted by EADS in its 2008’ Consolidated
Financial Statements, the majority of these amendments, being effective from January 1, 2009
onwards, will not have a material impact on EADS’ Consolidated Financial Statements.

The following endorsed Interpretations were also required to be applied for the first time in the firstquarter 2009:
IFRIC 13 “Customer Loyalty Programmes” (issued 2007, endorsed in December 2008)
IFRIC 14 “IAS 19 – The Limit of a Defined Benefit Asset Minimum Funding Requirements and theirInteraction” (issued 2007, endorsed in December 2008 resulting in an effective date as of January
1st, 2009)
These Interpretations do not have a significant impact on EADS’ Consolidated Financial
Statements.

IFRIC 12 “Service Concession Arrangements” (issued 2006, endorsed in March 2009) will beeffective from January 1, 2010 onwards. The potential impacts from its application are underinvestigation.

New financial reporting rules issued during the first quarter 2009
The following amendments were published during the first quarter 2009:
The IASB published in March 2009 Amendments to IFRS 7 “Financial Instruments: Disclosures:
Improving Disclosures about Financial Instruments” which are mandatory for the first time forannual periods beginning on or after January 1, 2009. These amendments will result in additional
disclosures in EADS’ Consolidated Financial Statements for 2009 with regard to the fair value
measurement of financial instruments and liquidity risks.
Further, the IASB issued Amendments to IFRIC 9 and IAS 39 “Embedded Derivatives” to clarify
the accounting treatment of embedded derivatives. The amendments are mandatory (retrospective
application) for the first time for annual periods ending on or after June 30, 2009.
The following Interpretation was also issued:
IFRIC 18 “Transfers of Assets from Customers”. The Interpretation is mandatory (prospective
application) for annual periods beginning on or after July 1, 2009. Retrospective application is also
permitted to a limited extent.

7

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

With the exception of the changes regarding IFRS 7 “Financial Instruments: Disclosures:
Improving Disclosures about Financial Instruments”, these new financial reporting rules are notexpected to have a significant impact on EADS’ Consolidated Financial Statements.

The accounting policies used in the preparation of these Unaudited Condensed Interim
Consolidated Financial Statements are consistent with those used for the annual Consolidated
Financial Statements for the year ended December 31, 2008, which are disclosed as an integral
part of the Group’s Annual Report 2008. The annual Consolidated Financial Statements wereauthorized for issue by EADS’ Board of Directors on March 9, 2009.

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 and up to the date ofthese Unaudited Condensed IFRS Consolidated Financial Statements, EADS could not reliably
assess either a revised technical timetable of the A400M programme or the related financial
implications of this delay and applied the early-stage method of accounting (see Note 3“Accounting for the A400M programme” in EADS’ Consolidated Financial Statements 2008 forfurther details of the A400M programme and relating accounting issues).

Under the Launch Contract between Airbus Military SL (“AMSL”) and OCCAR, OCCAR had thecontractual right with unanimous mandate of all Launch Nations to claim termination of the whole
A400M Launch Contract as of April 1, 2009, as the first flight of the A400M did not occur before
March 31, 2009. OCCAR did not exercise this cancellation right and subsequently agreed to athree month moratorium period until the end of June 2009. This moratorium period provides anopportunity for all partners of the programme to agree on the way ahead for various unresolved
issues related to the whole program. Furthermore, it gives room to realign and rebase the contract
on realistic general and specific conditions acceptable to all parties.
During this period, EADS and AMSL continue to address all technical challenges associated withthe assembly of the first A400M aircraft and will continue to work with their suppliers and partners
to confirm a robust timetable including a date for the first flight.
Under the early stage method of accounting, all A400M related work-in-progress, which would
have been expensed upon the completion of technical milestones according to the estimate atcompletion method of accounting only, have been expensed as incurred, with related revenues
recognized up to the recoverable part of these costs as per the A400M Launch Contract. The
A400M contract loss provision was accounted for in light of the excess-contract-costs-overremaining-contract-revenues, based on the probable remaining contract costs that could be
estimated. Additional potential contract costs not estimable as of the date of these Unaudited
Condensed IFRS Consolidated Financial Statements have been considered as contingent
liabilities.

The following tables summarize the major accounting balances specifically related to the A400M
programme as at March 31, 2009:8

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

As at March 31, 2009

in M €

4,697-7,013-2,316

Accumulated revenues
Accumulated cost of sales
Accumulated EBIT-impact

As at March 31, 2009

in M €

Accumulated revenues
Accumulated advance payments received
Net advance payments received (shown as liabilities)

4,697-5,891-1,194First three month-period enden March 31, 2009

in M €

Revenues
Expensed work-in-progress
Subtotal
Consumption of contract provision
Additional costs (including addition to contract
provision)
Total EBIT impact

154
-261
-107
107
-120
-120

As at March 31, 2009

in M €

Property, plant and equipment (mainly buildings and jigs and tools)
Current assets (mainly advance payments made)Net advance payments received (shown as liabilities)
A400M provision

786
933
1,194
1,371

In case of a potential, but still considered to date unlikely by EADS, cancellation of the A400M
contract by OCCAR at the end of the moratorium period, AMSL would have to reimburse all initial
payments, pre-delivery payments and any other payments received from OCCAR which would
represent a total amount of cash of approximately 5.9 bn €. In addition, EADS would have todetermine the further utilisation of specific tangible assets currently used for the A400M
programme.
Under the scenario of a continuation of the A400M programme under the Launch Contract,significant penalties based on contractual clauses could be notified to EADS for a cumulative
amount of 1.4 bn €, due in case each aircraft delivery would be delayed by more than 10 months
from the original contractual timetable. Based upon the currently probable minimum delivery
delays, this penalty clause would apply at least to a significant number of aircraft, but would be
subject to future discussion with customers. The A400M provision as of March 31, 2009 includes
EADS’ current assessment of the pro-rated amount of penalties to be finally paid.
The A400M provision related to the excess-of-contract-costs-over-remaining-contract-revenues(amounting to 1,371 M € as at March 31, 2009) has been determined on the basis of the probable
excess contract costs that could be estimated at the end of the first quarter 2009 taking into
consideration the technical and industrial uncertainties attached to the programme. As they cannot
currently be estimated, various potential additional costs linked to the unquantifiable financial
consequences of the shift in the delivery schedule have not been taken into account whenreassessing the A400M provision in EADS’ financial statements for the first quarter 2009. Therefore,
significant negative income statement’s impacts may still have to be accounted for in future periods

911.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

when such costs become estimable or triggering events lead to a return to the estimate-at-completion
method of accounting. Potential benefits from current discussions with customers might reduce suchimpacts, but would only be taken into account once agreed upon by OCCAR and the Launch Nations.
Currently, under certain continuation scenarios which are still lacking enough estimable evidence andwhich are not taking into account the expected outcome by EADS of the current discussions with
OCCAR, the magnitude of the negative impact of additional costs would substantially alter thefinancial statements of EADS as a whole in the future. An appropriate assessment of this negative
impact requires sufficient progress of current discussions with OCCAR and the clients as well as an
in-depth related update of the consolidated financial contract review of the A400M programme.
In conclusion, while EADS believes the cost and revenue estimates currently incorporated in the
Unaudited Condensed IFRS Consolidated Financial Statements under the early stage method of
accounting reflect its most appropriate judgments under the current circumstances, the technicalcomplexity of the A400M programme and the uncertainty about the outcome of on-going technicaldevelopments imply that further financial risks may arise, such as significant additional delays indelivery schedule, additional contract completion costs as well as the ultimate amount of liquidated
damages to be paid. Materialisation of these risks could also trigger an additional significant financial
exposure due to potential order cancellations or even as a result of a potential early termination of thewhole A400M programme.

4. Changes in the consolidation perimeter of EADSIn the previous year, EADS had concluded negotiations with GKN to divest its Airbus site in Filton(UK). The closing of the sale occurred on January 5, 2009.
On January 7, 2009, DAHER acquired a 70% majority share of EADS SOCATA. The remaining
30% of EADS SOCATA are accounted for using the equity method and presented in “Other
Businesses”.
Other acquisitions or disposals by the Group that occurred in the first three months of 2009 are notmaterial, nor were those that occurred in the first three months 2008.

5. Segment information
In 2009, the Group operates in four divisions (reportable segments) which reflect the internalorganizational and management structure.
• Airbus segment — Development, manufacturing, marketing and sale of commercial jet aircraftof more than 100 seats, military transport aircraft and special mission aircraft; aircraft
conversion.
• 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.

10

11.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

In the context of the full integration of the former Military Transport Aircraft Division (MTA) into
Airbus being Airbus Military and the consolidation of EADS EFW (previously included in Other
Businesses) within Airbus from 2009 onwards, the Airbus segment’s 2008 figures and Other
Businesses’ figures have been restated accordingly. Additionally, completing the reorganisation ofaerostructures activities within EADS, the site in Augsburg (previously included in Defence &Security) has been transferred to Airbus segment in 2009. The respective previous year’s figures
are not restated, but explained where considered to be material.

The following table presents information with respect to the Group’s reportable segments.
Consolidation effects, the holding function of EADS Headquarters and other activities not allocableto the divisions (segments) are disclosed in the column “HQ / Conso.”. “Other Businesses”
comprises operating segments, which are not reportable and mainly includes the development,
manufacturing, marketing and sale of regional turboprop aircraft, aircraft components as well as
maintenance services.

in M €

AirbusEurocopter

Defence &Security

Astrium

Other
total
Businesse
segmentss

HQ/
Conso.

Consolidated

Three-month period ended March 31, 2009
Revenues

5,883

thereof Airbus Military456

Research anddevelopment expenses-441

thereof Airbus Military-3

Profit before financeresult and income taxes

83

thereof Airbus Military-5

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

89

thereof Airbus Military

-5

758

934

904

214

8,693

-226

8,467

-41

-37

-17

-1

-537

-25

-562

38

15

35

0

171

45

216

38

21

36

0

184

48

232

732

990 *)

751

257

10,160

-307

9,853

-24

-35

-14

-2

-517

-17

-534

37

31

32

9

738

20

758

37

33

33

9

747

22

769

Three-month period ended March 31, 2008
Revenues

7,430

thereof Airbus Military636

Research anddevelopment expenses-442

thereof Airbus Military-1

Profit before financeresult and income taxes

629

thereof Airbus Military-1

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

635

thereof Airbus Military-1*)

thereof revenues of 81 M € related to the site in Augsburg

1111.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

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 €):in M €
Profit before finance result and income taxes

Ja nuary 1March 3 1, 2 009

Ja nua ry 1Ma rch 31, 2008

216

758

16

11

232

769

Goodwill and exceptionals:
Exceptional depreciation (fixed assets in cost of sales)
EBIT pre-goodwill impairment and exceptionals

7. Significant income statement items
Revenues of 8,467 M € (first quarter 2008: 9,853 M €) decrease by -14% due to less commercial
aircraft deliveries (116 units versus 123 in the first quarter 2008) at Airbus, an unfavorable US
Dollar impact and lower revenues in relation to the A400M programme. This is partly compensatedby increased volumes mainly at Astrium.
The Gross Margin decreases by -501 M € to 1,207 M € compared to 1,708 M € in the first quarterof 2008. This deterioration is mainly related to Airbus which is in particular burdened in 2009 byforeign exchange rate effects and negative volume effects. Except for Airbus and Defence &Security, the other divisions increase gross margins.
Research and development expenses of -562 M € (first quarter 2008: -534 M €) principallyreflect an increase for the Airbus A350XWB and some Eurocopter programmes partly
compensated by a decrease in the Airbus A380-800 programme.
Other income increases by +45 M € to 70 M € (first quarter 2008: 25 M €) mainly due to thepreliminary gain of +33 M € resulting from the sale of Airbus UK’s former site in Filton to GKN.
Share of profit from associates under the equity method and other income frominvestments of 49 M € (first quarter 2008: 44 M €) is mainly influenced by the consistently
estimated share of the result of Dassault Aviation of 43 M € (first quarter 2008: 43 M €). The
Dassault Aviation equity accounted-for income in the first quarter 2009 includes a positive 2008
catch-up amounting to +4 M €.
Finance result amounts to +31 M € (first quarter 2008: -340 M €) including positive effects fromthe revaluation of USD and GBP positions, partly offset by the negative impacts from therevaluation of capitalized option premiums and the unwinding of the discounting mainly on A380,
A350XWB and Power8 provisions.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

The income tax expense of -77 M € (first quarter 2008: -125 M €) corresponds to an effective
income tax rate of 31% (first quarter 2008: 30%). It was impacted by a negative tax rate differentialfrom main EADS countries with higher income tax rates applied than in the Netherlands and by an
impairment of deferred tax assets partly compensated by the lower effective tax rate on the shareof Dassault Aviation equity result.

8. Significant balance sheet items
Non-current assets
Intangible assets of 11,160 M € (prior year-end: 11,171 M €) include 9,771 M € (prior year-end:
9,760 M €) of goodwill. This mainly relates to Airbus (6,437 M €), Defence & Security (2,520 M €),Astrium (616 M €) and Eurocopter (111 M €). The last annual impairment tests, which were
performed at the end of the year 2008, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of +86 M €, property, plant and equipment decreaseby -49 M € to 12,280 M € (prior year-end: 12,243 M €), including leased assets of 841 M € (prioryear-end: 878 M €). Property, plant and equipment also comprise “Investment property” amounting
to 85 M € (prior year-end: 87 M €).
Investments in associates under the equity method of 2,414 M € (prior year-end: 2,356 M €)mainly reflect the increase in the equity investment in Dassault Aviation, amounting to 2,297 M €(prior year-end: 2,243 M €).
Other investments and other long-term financial assets of 1,748 M € (prior year-end: 1,712 M€) are related to Airbus for an amount of 1,261 M € (prior year-end: 1,290 M €), mainly concerning
the non-current portion of aircraft financing activities including a foreign exchange rate effect of+43 M €.
Other non-current assets mainly comprise Non-current derivative financial instruments and Noncurrent prepaid expenses. The decrease by -282 M € to 2,364 M € (prior year-end: 2,646 M €) ismainly caused by the negative variation of the non-current portion of fair values of derivative
financial instruments (-196 M €) and the negative revaluation of option premiums at Airbus
contracted in the course of the EADS US dollar hedging strategy.
Deferred tax assets of 3,239 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(905 M €, prior year-end: 1,101 M €), in other current assets (822 M €, prior year-end: 1,482 M €),in other non-current liabilities (2,650 M €, prior year-end: 2,208 M €) and in other current liabilities(755 M €, prior year-end: 657 M €) which corresponds to a total net fair value of -1,678 M € (prioryear-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 67.6 billion US dollar as at March 31, 2009, including 8billion of US dollar vanilla options. Though the US dollar exchange rate became stronger (USD / €spot rate of 1.33 at March 31, 2009 vs. 1.39 at December 31, 2008), the average US dollar hedge
rate for the hedge portfolio of the Group remains stable at 1.36 USD / € as at March 31, 2009
(excluding US dollar plain vanilla options which are out of the money).

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

Current assets
Inventories of 22,144 M € (prior year-end: 19,452 M €) increase by +2,692 M €. This is mainly
driven by an increase of unfinished goods and services at Airbus segment (+1,795 M €) and at
Eurocopter (+372 M €) due to a ramp-up of commercial programmes (mainly SuperPuma,
Dauphin and EC 135) and governmental programmes. Boosted by its launcher business, Astrium
records a higher level of work in progress as well as of advance payments made.
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 -421 M € to
4,169 M € (prior year-end: 4,590 M €) comprises among others a decrease of -660 M € in positive
fair values of derivative financial instruments.
Cash and cash equivalents increase from 6,745 M € to 6,979 M € (see also note 9 “Significant
cash flow items”).

Total equity
Equity attributable to equity holders of the parent (including purchased treasury shares) amounts
to 10,334 M € (prior year-end: 11,022 M €). The decrease is mainly due to a comprehensive loss
for the period of -702 M €, primarily resulting from negative effects from changes in fair values ofderivative financial instruments, partly compensated by the profit for the period.
Minority interests slightly increase to 105 M € (prior year-end: 104 M €).

Non-current liabilities
Non-current provisions of 7,601 M € (prior year-end: 7,479 M €) comprise the non-current
portion of pension provisions with an increase of +79 M € to 4,414 M € (prior year-end: 4,335 M €).
Moreover, other provisions are included in non-current provisions, which increase by +43 M € to
3,187 M €. A significant part of the increase (+42 M €, thereof foreign exchange effects of+35 M € ) relates to the provision for aircraft financing activities, which amounts to 845 M €.
Long-term financing liabilities of 2,069 M € (prior year-end: 3,046 M €), excluding foreignexchange rate effects of +55 M € decrease by -1,032 M €. Due to the maturity date of the firsttranche of the EMTN bond, an amount of 1 bn € is shifted to short-term financing liabilities.
Other non-current liabilities comprise “Non-current other financial liabilities”, “Non-current otherliabilities” and “Non-current deferred income” and increase in total by +441 M € to 17,265 M €(prior year-end: 16,824 M €). They mainly include non-current customer advance payments
received of 8,931 M € (prior year-end: 8,843 M €) and the non-current portion of European
Government refundable advances amounting to 4,585 M € (prior year-end: 4,563 M €). The mainpart of non-current deferred income of 310 M € (prior year-end: 418 M €) is linked to deferred
revenues of Airbus and ATR according to Residual Value Guarantee clauses. These are reversed
over the guaranteed period.

Current liabilities
Current provisions increase by +61 M € to 4,644 M € (prior year-end: 4,583 M €) and comprisethe current portions of pensions (202 M €) and other provisions (4,442 M €). The increase mainlyreflects provisions for personnel expenses (+40 M €) and obligations from service andmaintenance agreements (+21 M €).

1411.05.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

Short-term financing liabilities of 2,274 M € (prior year-end: 1,458 M €) increase by +816 M €,mainly due to the first tranche of the EMTN bond with an amount of 1 bn €, which matures within
one year from March 31, 2009 onwards.
Trade liabilities increase by +330 M € (thereof +50 M € foreign exchange rate effect) to 8,154 M €(prior year-end: 7,824 M €), mainly coming from Airbus (+402 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +1,498 M € to 24,002 M € (prior year-end: 22,504 M€). Other current liabilities mainly comprise current customer advance payments of 18,827 M €(prior year-end: 17,802 M €).

9. Significant cash flow items
IAS 16 “Property, Plant and Equipment” and consequentially IAS 7 “Statement of Cash Flows”
were amended by the IASB’s Annual Improvements Project 2008 regarding the presentation of
cash flows relating to customer financing activities. Cash flows from leased assets and financelease receivables formerly presented within investing activities are now included in “change inother operating assets and liabilities” within operating activities. Cash flows in relation to customer
finance liabilities formerly presented in “change in long-term and short-term financing liabilities”
within financing activities are now also included in “change in other operating assets and liabilities”
within operating activities.
Cash (used for) provided by operating activities decreases by -1,813 M € to -360 M € (first
three months 2008: 1,453 M €). Gross cash flow from operations (excluding working capitalchanges) of 658 M € falls below prior period’s level (first three months 2008: 1,315 M €) as well aschanges in other operating assets and liabilities (working capital changes) which amount to-1,018 M € (first three months 2008: 138 M €). The degradation mainly results from an increase of
inventories.
Cash provided by (used for) investing activities amounts to +666 M € (first three months 2008:-2,292 M €). This mainly comprises a net sale of securities of +891 M €, partly offset by purchasesof intangible assets and property, plant and equipment of -310 M €, namely in Airbus.
Cash (used for) financing activities improves by +174 M € to -94 M € (first three months 2008:-268 M €). The outflow mainly comprises the net repayment of financing liabilities.

10. Number of shares
The total number of shares outstanding is 810,648,402 and 805,855,052 as of March 31, 2009 and2008, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the first three months of 2009, the number of treasury shares held by EADS decreased
from 5,259,965 as of December 31, 2008 to 4,120,710 as of March 31, 2009.
EADS did not issue any new shares. In the first three months 2008, EADS issued 14,200 sharesas a result of the exercise of stock options in relation with the implemented stock option plans.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

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:

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

January 1 toMarch 31, 2009

January 1 toMarch 31, 2008

170 M €

285 M €

809,366,635

804,848,965

0.21 €

0.35 €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 during the first three months of 2009 did notexceed the exercise price of any stock option plan (in the first three months of 2008: the 4th and 5thstock option plans) initiated by the Group, no shares related to stock options were considered in
the calculation of diluted earnings per share (in the first three months of 2008: 481,076 shares).
Since the average price of EADS shares during the first three months 2009 exceeded the price ofperformance and restricted shares, 675,086 shares related to performance and restricted shares(in the first three months of 2008: no shares) were considered in the calculation.

Net income attributable to equity holders of the parent
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

January 1 toMarch 31, 2009

January 1 toMarch 31, 2008

170 M €

285 M €

810,041,721

805,330,041

0.21 €

0.35 €

12. Related party transactions
The Group has entered into various transactions with related companies in the first three monthsof 2009 and 2008 that have all been carried out in the normal course of business. As is theGroup’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 consideredmaterial to the Group either individually or in the aggregate. The transactions with the French
State include mainly sales from the Eurocopter, Defence & Security and Astrium divisions. The
transactions with SEPI include mainly sales from Airbus Military in Airbus segment and Defence &Security division.

13. Number of employees
The number of employees at March 31, 2009 is 117,198 as compared to 118,349 at December 31,
2008.

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Unaudited Condensed Consolidated Financial Information for the three-month period ended March 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 of which EADS is aware), during a period
covering at least the previous twelve months which may have, or have had in the recent pastsignificant effects on EADS and/or the Group’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 thePurchase Agreement with GFAC in October 2001 for 38 SA and LR aircraft, in the context ofSwissair’s bankruptcy. On 6 February 2009, the judge decided in favour of GFAC. Airbus has
asked the court to reconsider its decision at a hearing on 18 March 2009 and has also filed an
appeal. Both requests are under consideration by the courts, and it cannot be excluded that Airbus
could be ordered to pay an amount equal to the pre-delivery payments plus legal interest.
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
subsidisation of Boeing. On 31 May 2005, the US and the EU each requested the establishment ofa 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 andattended several oral hearings in both cases. The parties continue to provide input in response to
the WTO’s written questions in advance of issuance of the WTO panels’ reports. Exact timing offurther steps in the WTO litigation process is subject to ruling of the panels and to negotiations
between the US and the EU. Unless a settlement, which is currently not under discussion, isreached between the parties, the WTO panels have indicated that they will issue draft reports
sometime in 2009.
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 executives for breach of such market regulations and insider
trading rules, respectively. EADS and the individual defendants intend to vigorously exercise theirdefence rights in front of the Sanction Commission of the AMF, which will decide whether toimpose fines after due hearing of the parties. EADS believes that the financial risk associated withthis procedure and its possible consequences is not material. However, it recognises that theseproceedings may have significant consequences on its image and reputation. Following criminal
complaints filed by a shareholders’ association and by an individual shareholder (including a civil
claim for damages), French investigating judges are also carrying out investigations on the samefacts.
In Germany, the German Federal Financial Supervisory Authority (the “BaFin”) began its own
investigations in 2006 for alleged breaches of market regulations and insider trading rules.
However, the BaFin formally notified EADS on 2 March 2007 that it had discontinued its
investigation for suspected breaches of market regulations. Upon referral by the BaFin, Germancriminal proceedings regarding suspected insider trading offences are still pending against a small
number of individuals at lower management level, while investigations against other individuals
were discontinued without charges being brought.

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Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

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, thelatest such actions being filed in early 2009. A plaintiff motion for “model proceedings” is also
currently pending before the court, which would allow common issues of fact or law in multiple
individual securities actions to be bundled together. The actions are in their preliminary stage andthe amounts claimed are relatively small. EADS anticipates a vigorous defence.
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. That request and defendants’ motions to dismiss are pending.
EADS anticipates a vigorous defence to the lawsuit.
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 eventsThe EADS Board of Directors has appointed Bodo Uebber as Chairman of the Board of Directors.
Mr Uebber, who has been member of the EADS Board of Directors since 2007, has succeeded
Ruediger Grube effective 14 April 2009. Mr Grube resigned from his Chairman’s position following
his new appointment at Deutsche Bahn AG.
Furthermore, the EADS Board of Directors has proposed the appointment of a new Board
Member, Wilfried Porth (Member of the Management Board of Daimler AG), to fill the Board
vacancy left by Mr Grube’s departure. EADS’ shareholders will be asked to confirm thisappointment at their Annual General Meeting to be held on 27 May 2009.

On May 6, 2009 Airbus announced that due to the current economic and aviation crisis andfollowing specific customer requests for deferrals, it is adapting its A380 aircraft delivery schedulefor 2009 / 2010. According to the new plan, Airbus expects to deliver 14 double-decker aircraft in2009 and more than 20 aircraft in 2010.

Within the ongoing negotiations with OCCAR in April 2009, EADS and AMSL proposed a newprogramme baseline for the A400M to the Launch Nations. This proposed programme baseline
which is conditional on achieving certain maturity gates includes changes of the programme

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Unaudited Condensed Consolidated Financial Information for the three-month period ended March 31, 2009

organisation based on the integration of MTA into Airbus, suggestions for the technical evolution of
the propulsion system and other mission critical systems as well as a proposal for potential
contract adjustments.

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