EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the three-month period ended March 31, 2011
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...3
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…4
Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....……………..…5
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..……………….......6
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at March 31, 2011…...……..……………………………………….…………...…………..….....…........6
1. The Company……………………………………………………………………………………..…..6
2. Accounting policies……………….………………………………………………..…………….....6
3. Segment information………………………………..…………..…………………………....……..7
4. EBIT pre-goodwill impairment and exceptionals…..……..………………………………..…..8
5. Significant income statement items………….…………………..………….………..……........9
6. Significant items of the statement of financial position…….……………………...…….....10
7. Significant cash flow items……………………………………………………..…...…..……….12
8. Number of shares………………………………………………………..........................….....…12
9. Earnings per share……………………………………..……………….………...………………..12
10. Related party transactions.………………..…………………...…….……………………..……13
11. Number of employees ……………………………….……………….……………..........………13
12. Litigation and claims …..…………………………….……………….……………..........………13
13. Subsequent events... …..…………………………….……………….……………..........………141

13.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

Unaudited Condensed IFRS Consolidated Income Statements

January 1 -March 31,
2011

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

January 1 March
31, 2010

Deviation

M€
9,854-8,515
1,339

%
100
-86
14

M€
8,950
-7,844
1,106

%
100
-88
12

M€
904
-671
233

-589

-6

-527

-6

-62

-650

-6

-572

-6

-78

48

0

48

1

0

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 (loss) for the period

33

0

18

0

15

181
99
-146
-150
-197
5
-11

2
1
-1
-2
-2
0
0

73
82
-135
130
77
-47
103

1
1
-1
1
1
-1
1

108
17
-11
-280
-274
52
-114

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

-12
1

0
0

103
0

1
0

-115
1

Earnings per share

€

€

€

Basic and diluted

-0.01

0.13

-0.14

2

13.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
IncomeJanuary 1 January 1 March 31, 2011 March 31, 2010

in M €
Profit (loss) for the period
Foreign currency translation adjustments for foreign operations
Net change in fair value of cash flow hedges
Net change in fair value of available-for-sale financial assets

1)

1)

-11

103

-54

99

2,616

-3,0061052

Unrealized changes from investments accounted forusing the equity method 1)

120

35

Tax on income and expense recognized directly in equity

-808

949

Other comprehensive income, net of tax

1,884-1,871

Total comprehensive income of the period

1,873-1,768

1,873
0
1,873

-1,767-1-1,768Attributable 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 ispresented separately. Comparative information has been adjusted accordingly.

3

13.05.2011

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

March 31, 2011
M€%

December 31, 2010
M€%

DeviationM€%

11,246
13,34613
16

11,29913,504

14
17

-53
-158

0
-1

2,602

3

2,451

3

151

6

2,300

3

2,386

3

-86

-4

2,730
3,637
5,759
41,620

3
4
7
49

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

2
5
6
50

755
-613
427
423

38
-14
8
1

22,564
6,091
4,226
5,688
4,958
43,527
85,147

26
7
5
7
6
51
100

20,862
6,632
3,632
5,834
5,030
41,99083,187

25
8
4
7
6
50
100

1,702
-541
594
-146
-72
1,537
1,960

8
-8
16
-3
-1
4
2

817
7,685

1
9

816
7,691

1
9

1
-6

0
0

2,331

3

446

1

1,885

423

-126
10,70795
10,802

0
13
0
13

-112
8,841
95
8,936

0
11
0
11

-14
1,866
0
1,866

13
21
0
21

8,087
2,887
1,409
17,06229,445

9
3
2
20
34

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

10
3
2
22
37

-126
17
214
-1,141-1,036

-2
1
18
-6
-3

5,818
1,346
8,617
229
28,89044,90074,34585,147

7
2
10
0
34
53
87
100

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

7
2
10
0
33
52
89
100

52
-62
71
-25
1,094
1,130
94
1,960

1
-4
1
-10
4
3
0
2

4

13.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

Unaudited Condensed IFRS Consolidated Statements of Cash Flows

Profit (loss) for the period attributable to equity owners of theparent (Net income (loss))

January 1 March 31, 2011

January 1 March 31, 2010

M€

M€
-12

103

1

0

Depreciation and amortization

408

384

Valuation adjustments

199

-92

Deferred tax (income) expense

-45

17

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

-35

-29

0

-3

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

Results on disposals of non-current assets
Results of companies accounted for by the equity method

-31

-19

Change in current and non-current provisions

83

25

Change in other operating assets and liabilities

112-1,112

Cash provided by (used for) operating activities

680

-726

-367

-345

3

7

-22

-83

Investments:- Purchases of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE- Payments for investments in associates and otherinvestments and long-term financial assets- Proceeds from disposals of associates and otherinvestments and long-term financial assets
Change of securities

15

23

-371

136

Contribution to plan assets for pensions-8-1

Cash (used for) investing activities

-750

-263

Change in long-term and short-term financing liabilities

44-1,010Changes in capital and non-controlling interests

7-2

Change in treasury shares

-14

-1

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

37-1,013-39

67

Net (decrease) in cash and cash equivalents-72-1,935

5,030
4,958

7,038
5,103

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

As of March 31, 2011, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 747 M € (735 M € as ofDecember 31, 2010), which represents EADS’ share in MBDA’s cash and cash equivalents depositedat other shareholders. These funds are available for EADS upon demand.

5

13.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity
in M €
Balance at January 1, 2010

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

Profit for the period

total
10,641

103

0

103

-1,870-1-1,871

Capital decrease

0

-3

-3

Change in treasury shares

-1

0

-1

Other comprehensive income

Others202Balance at March 31, 2010

8,769

102

8,871

Balance at January 1, 2011

8,841

95

8,936

Profit (loss) for the period
Other comprehensive income
Capital increase

-12

1

-11

1,885

-1

1,884

7

0

7

Change in treasury shares

-14

0

-14

Balance at March 31, 2011

10,70795

10,802

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at March 31, 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 andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the three-month period ended March 31, 2011 were authorized for issue
by EADS’ Board of Directors on May 12, 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 March 31, 2011 andPart 9 of Book 2 of the Netherlands Civil Code. They comprise (i) IFRS, (ii) International
Accounting Standards (“IAS”) and (iii) Interpretations originated by the International Financial

613.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

Reporting 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 December 31, 2010. Except for
the revised or amended Standards to be applied for the first time in the first three months 2011
(mentioned below in the next section), EADS’ accounting policies and techniques are unchanged
compared to December 31, 2010.
Financial reporting rules applied for the first time in the first three months 2011
The following revised or amended Standards were applied for the first time in the first threemonths 2011 and are effective for EADS as of January 1, 2011. If not otherwise stated, they do nothave a material impact on EADS’ Consolidated Financial Statements as well as its basic anddiluted 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.

3. 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. Airbus Military integrates the former MilitaryTransport Aircraft Division (MTAD) and Airbus A400M operations.
The reportable segments Airbus Commercial and Airbus Military form the Airbus Division.

7

13.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

• 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.”.

in M €

AirbusCommercial

AirbusMilitary

Other
Total
Astrium Cassidian Businessegments
ses

Eurocopter

HQ/
Conso.

Consolidated

Three-month period ended March 31, 2011
Revenues

6,707

434

823

1,171

878

246

10,259

-405

9,854

Research anddevelopment expenses

-516

-9

-44

-13

-53

-2

-637

-13

-650

Profit (loss) before
finance result andincome taxes

118

1

31

51

6

-3

204

-23

181

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

125

1

31

52

8

-3

214

-22

192

Three-month period ended March 31, 2010
Revenues

5,989

384

798

924

928

246

9,269

-319

8,950

Research anddevelopment expenses

-431

-2

-47

-18

-57

-1

-556

-16

-572

Profit (loss) before
finance result andincome taxes

0

1

25

40

19

-1

84

-11

73

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

6

1

26

41

21

-1

94

-11

83

4. 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

813.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011adjustments 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 €):in M €
Profit before finance result and income taxes

January 1March 31, 2011

January 1March 31, 2010

181

73

11

10

192

83

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

5. Significant income statement items
Revenues of 9,854 M € (first quarter 2010: 8,950 M €) increase by +904 M €, mainly at Airbus
Commercial (+718 M €) and Astrium (+247 M €). Airbus Military includes revenues related to the
A400M programme of 165 M € recognized under the percentage of completion method based on
milestones (first quarter 2010: 0 M €). Moreover, Eurocopter also contributes to the increase ofrevenues whereas Cassidian revenues decrease slightly. Positive mix effects drive theimprovement at Airbus Commercial.
The Gross Margin increases by +233 M € to 1,339 M € compared to 1,106 M € in the first quarterof 2010. This improvement is mainly related to better performance of legacy programmes andfavorable phasing effects at Airbus Commercial. The operational improvement at Airbus, Astrium
and Eurocopter is partly compensated by unfavorable foreign exchange rate effects at Airbus
Commercial.
Research and development expenses increase by -78 M € to -650 M € (first quarter 2010:-572 M €) principally reflecting an increase for the Airbus A350XWB.
Share of profit from associates under the equity method and other income frominvestments of 33 M € (first quarter 2010: 18 M €) mainly consists of the result of Dassault
Aviation of 30 M € (first quarter 2010: 30 M €). The Dassault Aviation equity accounted-for incomein the first quarter 2011 includes a negative catch-up on 2010 results amounting to -3 M € (firstquarter 2010: +3 M € positive catch-up on 2009 results).
Finance result amounts to -197 M € (first quarter 2010: 77 M €) comprising interest result of-47 M € (first quarter 2010: -53 M €). Other financial result amounts to -150 M € (first quarter 2010:
130 M €) and mainly includes charges from the negative revaluation of financial instruments(-56 M €, first quarter 2010: -3 M €), the negative impact from foreign exchange translation ofmonetary items (-47 M € vs. first quarter 2010: a positive impact of 170 M €) and the unwinding of
discounted provisions (-37 M €, first quarter 2010: -59 M €).
The income tax benefit of 5 M € (first quarter 2010: an income tax expense of -47 M €)corresponds to an effective income tax rate of 31% (first quarter 2010: 31%).

913.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

6. Significant items of the statement of financial positionNon-current assets
Intangible assets of 11,246 M € (prior year-end: 11,299 M €) include 9,786 M € (prior year-end:
9,809 M €) of goodwill. This mainly relates to Airbus Commercial (6,425 M €), Cassidian(2,505 M €), Astrium (641 M €) and Eurocopter (117 M €). The last annual impairment tests, whichwere performed in the fourth quarter of 2010, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of -114 M €, property, plant and equipment decreaseby -44 M € to 13,346 M € (prior year-end: 13,504 M €), including leased assets of 665 M € (prioryear-end: 759 M €). Property, plant and equipment also comprise “Investment property” amounting
to 75 M € (prior year-end: 77 M €).
Investments in associates under the equity method of 2,602 M € (prior year-end: 2,451 M €)mainly reflect the increase in the value of the equity investment in Dassault Aviation, amounting to
2,460 M € (prior year-end: 2,318 M €).
Other investments and other long-term financial assets of 2,300 M € (prior year-end:
2,386 M €) are related to Airbus for an amount of 1,608 M € (prior year-end: 1,765 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 increase by +755 M € to 2,730 M € (prior year-end: 1,975 M €) ismainly caused by the positive variation of the non-current portion of fair values of derivative
financial instruments (+689 M €).
Deferred tax assets of 3,637 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(1,291 M €, prior year-end: 602 M €), in other current assets (658 M €, prior year-end: 364 M €), inother non-current liabilities (984 M €, prior year-end: 2,109 M €) and in other current liabilities(479 M €, prior year-end: 821 M €) which corresponds to a total net fair value of 486 M € (prioryear-end: -1,964 M €). The volume of hedged US dollar-contracts increases from 70.2 billion US
dollar as at December 31, 2010 to 71.1 billion US dollar as at March 31, 2011. The US dollar spot
rate became less favorable (USD / € spot rate of 1.42 at March 31, 2011 vs. 1.34 at December 31,2010). The average US dollar hedge rate for the hedge portfolio of the Group slightly improves
from 1.38 USD / € as at December 31, 2010 to 1.37 USD / € as at March 31, 2011.

Current assets
Inventories of 22,564 M € (prior year-end: 20,862 M €) increase by +1,702 M €. This is partly
driven by higher unfinished goods and services for Airbus Commercial (+654 M €), Cassidian(+285 M €), Eurocopter (+248 M €) and Astrium (+109 M €) programmes. Airbus also records
higher finished goods (+308 M €).
Trade receivables decrease by -541 M € to 6,091 M € (prior year-end: 6,632 M €), mainly causedby Airbus (-234 M €), Cassidian (-203 M €) and Eurocopter (-103 M €).

10

13.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

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 +594 M € to
4,226 M € (prior year-end: 3,632 M €) comprises among others an increase of +302 M € in claims
to value added tax rebates and of +294 M € in positive fair values of derivative financial
instruments.
Cash and cash equivalents slightly decrease from 5,030 M € to 4,958 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 10,707 M € (prior year-end: 8,841 M €). The increase in equity is mainly due to othercomprehensive income for the period of +1,885 M €, mainly due to the change of fair values incash flow hedges.
Non-controlling interests remain stable at 95 M € (prior year-end: 95 M €).
Non-current liabilities
Non-current provisions of 8,087 M € (prior year-end: 8,213 M €) comprise the non-current
portion of pension provisions with an increase of +16 M € to 5,053 M € (prior year-end: 5,037 M €).
Moreover, other provisions are included in non-current provisions, which decrease by -142 M € to
3,034 M €. The decrease mainly reflects provisions for loss making contracts (-70 M €) andprovisions for aircraft financing activities (-63 M €) due to foreign exchange rate effects.
Long-term financing liabilities, which mainly comprise bonds, increase by +17 M € to 2,887 M €(prior year-end: 2,870 M €).
Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, decrease in total by -1,141 M € to 17,062 M €(prior year-end: 18,203 M €). The decrease mainly comes from the non-current portion of liabilities
for derivative financial instruments (-1,125 M €), amounting to 984 M € (prior year-end: 2,109 M €).

Current liabilities
Current provisions increase by +52 M € to 5,818 M € (prior year-end: 5,766 M €) and comprisethe current portions of pensions (184 M €) and of other provisions (5,634 M €). An increase inprovisions for personnel expenses (+55 M €) and in provisions for outstanding costs (+39 M €) ispartly compensated by a decrease of provisions for loss making contracts (-68 M €). The
provisions for loss making contracts include provision for the A400M programme of 2,263 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 +1,094 M € to 28,890 M € (prior year-end:
27,796 M €). Other current liabilities mainly comprise current customer advance payments of
24,413 M € (prior year-end: 23,285 M €), increasing by +1,128 M €.

1113.05.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

7. Significant cash flow items
Cash provided by (used for) operating activities increases by +1,406 M € to +680 M € (first
three months 2010: -726 M €). Gross cash flow from operations (before changes in other operating
assets and liabilities) of +568 M € improves compared to the prior period’s level (first three months
2010: +386 M €). Changes in other operating assets and liabilities amount to +112 M € (first threemonths 2010: -1,112 M €), mainly reflecting a higher level of advance payments received and areduction of trade receivables partly compensated by an increase in inventories (mainly at Airbus).
Cash used for investing activities amounts to -750 M € (first three months 2010: -263 M €). This
mainly comprises a change in securities of -371 M € (first three months 2010: +136 M €) andpurchases of intangible assets and property, plant and equipment of -367 M € (first three months
2010: -345 M €), namely in Airbus division.
Cash provided by (used for) financing activities improves by +1,050 M € to +37 M € (first threemonths 2010: -1,013 M €). The outflow in 2010 primarily comprised the repayment of the firsttranche of the EMTN bond (1 billion €) included in financing liabilities.

8. Number of shares
The total number of shares outstanding is 810,835,530 and 810,886,053 as of March 31, 2011 and2010, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the first three months of 2011, the number of treasury shares held by EADS increased from
5,341,084 as of December 31, 2010 to 6,011,879 as of March 31, 2011.
In the first three months 2011, EADS issued 444,687 new shares (in the first three months 2010:
no issuance of shares).

9. Earnings per share
Basic earnings per share are calculated by dividing profit (loss) for the period attributable toequity owners of the parent (Net income (loss)) by the weighted average number of issued
ordinary shares during the period, excluding ordinary shares purchased by the Group and held astreasury shares:

Net income (loss) attributable to equity owners of theparentWeighted average number of ordinary shares outstanding
Basic earnings per share

January 1 toMarch 31, 2011

January 1 toMarch 31, 2010

-12 M €

103 M €

810,699,249

810,894,262-0.01 €

0.13 €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 category of dilutive
potential ordinary shares is stock options. Since the average price of EADS shares exceeded the12

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Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

exercise price of the 4th and the 5th stock option plan in the first three months of 2011 (in the first
three months of 2010: none of the stock option plans), 1,255,698 potential shares (in the first threemonths 2010: no shares) were considered in the calculation of diluted earnings per share. In thefirst three months 2010, 1,280,857 shares related to performance and restricted shares wereconsidered in the calculation, since the average price of EADS shares in the first three months
2010 exceeded the price of performance and restricted shares.

Net income (loss) attributable to equity owners of theparentWeighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

January 1 toMarch 31, 2011

January 1 toMarch 31, 2010

-12 M €

103 M €

811,954,947

812,175,119-0.01 €

0.13 €

10. Related party transactions
The Group has entered into various transactions with related companies in the first three monthsof 2011 and 2010 that have all been carried out in the normal course of business. As it 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 on aggregate. The transactions with the French State
include mainly sales from the Eurocopter, Astrium and Cassidian divisions. The transactions withSEPI include mainly sales from Airbus Military and Cassidian. The French and Spanish State arealso customers of the A400M programme.

11. Number of employees
The number of employees as at March 31, 2011 is 122,899 as compared to 121,691 as at
December 31, 2010.

12. 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 also been appealed. Exact timing of further steps in
the WTO litigation process is subject to further rulings and to negotiations between the US and the13

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the three-month period
ended March 31, 2011

EU. Unless a settlement, which is currently not under discussion, is reached between the parties,
the litigation is expected to continue for several years.

13. Subsequent events
EADS and Airbus Military finalised the contract amendment negotiations with OCCAR and theseven A400M launch customer nations on 7 April 2011. The contract amendment implements thechanges which were agreed in principle by the participating nations with EADS and Airbus Military
in the A400M Understanding signed on 5 March 2010.
Following a joint announcement regarding Eurocopter’s intention to accomplish a supported takeover bid for Vector Aerospace Corporation, Toronto (Canada), on 28 March 2011, Eurocopter and
Vector Aerospace announced on 21 April 2011 that the formal bid circular to acquire all of theoutstanding common shares of Vector Aerospace, including all shares that may be issued on theexercise of options granted under Vector Aerospace’s stock option plan, has been mailed to
Vector Aerospace’s shareholders. Vector Aerospace has also mailed its directors’ circular
recommending that Vector Aerospace’s shareholders deposit their shares under the offer. The
offer is scheduled to expire on 26 May 2011, but is subject to extension beyond such date.
Completion of the offer is subject to, amongst other things, obtaining all necessary regulatory
clearances.
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.

1413.05.2011