The momentum continues
Philippe Camus - Rainer Hertrich, CEOs
Axel Arendt, CFO
Conference call - Amsterdam - March 18th, 20021

Safe Harbor Statement
Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and otherforward-looking statements that are based on management’s beliefs. These statements reflect the Company’s views and assumptions
as of the date of the statements and involve known and unknown risk and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such statements.
When used in this document, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend”, “plan to” and “project” areintended to identify forward-looking statements. Such forward-looking statements include, without limitation, projections forimprovements in process and operations, new business opportunities, revenues and revenues growth, operating margin growth, cash
flow, deliveries, launches, compliance with delivery schedules, performance against Company targets, new products, current andfuture markets for the Company products and other trend projections.
This forward looking information is based upon a number of assumptions including without limitation:·Assumption regarding demand·Current and future markets for the Company’s products and services·
Internal performance including the ability to successfully integrate EADS’ activities to control costs and maintain quality·
Customer financing·
Customer, supplier and subcontractor performance or contract negotiations·
Favourable outcomes of certain pending sales campaigns
Forward looking statements are subject to uncertainty and actual future results and trends may differ materially depending on variety
of factors including without limitation:·
General economic and labour conditions, including in particular economic conditions in Europe and North America,·Legal, financial and governmental risk related to international transactions·
The Cyclical nature of some of the Company’s businesses·
Volatility of the market for certain products and services·
Product performance risks·
Collective bargaining labour disputes·
Factors that result in significant and prolonged disruption to air travel world-wide·
The outcome of political and legal processes, including uncertainty regarding government funding of certain programs·Consolidation among competitors in the aerospace industry·
The cost of developing, and the commercial success of new products·
Exchange rate and interest rate spread fluctuations between the Euro and the U.S. dollar and other currencies·
Legal proceeding and other economic, political and technological risk and uncertainties
Additional information regarding these factors is contained in the Company’s “document de référence” dated 26 April 2001.
The Company disclaims any intention or obligation to update these forward-looking statements.

2Conference call - Amsterdam- March 18th, 20022

1.

2001 Overview

2.

Operating performance by activity

3.

Financials

4.

Outlook3
Conference call - Amsterdam- March 18th, 2002
3

2001 A Year of achievements

Exceed all growth targets ; EBIT +21%■

protected cash and profitability

Substantially grew defence business across EADS■

Revenues 01: € 6.1 bn ; Backlog: €18 bn ; Revenues growth 50% by 2004

Stabilised commercial A/C business despite Sept 11th■

Deliveries expected in 02 at 300 A/C - Flexibility & Cost savings programs

4
Conference call - Amsterdam- March 18th, 2002
4

2001: Exceeding on our promises
2001
2001Financial
Financialtargets
targets

2001
2001Achievements
Achievements•• Book-to-bill
Book-to-bill>>11

Book-to-bill
Book-to-bill==22,,excluding
excludingA400M
A400M•• Revenues
Revenues+20+20%%

Revenues
Revenues+27%,+27%,ininspite
spiteofofcivilcivil
aviation
aviationdramatic
dramaticsituation
situation•• EBIT
EBIT+15%+15%

EBIT
EBIT+21%,+21%,ininspite
spiteofofdifficult
difficultsituation
situationat
atDCS
DCSandandat
atSpace;Space;
EBIT
marginpre-R&D=
EBIT margin pre-R&D =12.1%
12.1%•• Synergies:
Synergies:6060€€mm

Synergies
Synergiesexceedingexceeding100100€€mm•• FreeFreeCash
CashFlow
Flow~~0€0€FreeFreeCash
CashFlow
Flow==€€ 774m774m
Year-endnetcashposition>
Year-end net cash position>€€1.5
1.5bnbn5
Conference call - Amsterdam- March 18th, 2002
5

Outperformed all financial targets

2001 Financial Highlights
2001 Actual (Airbus 100% consolidated)change from 2000
pro-forma** organic

Revenues
30.8 € bn
EBIT *
1.7 € bn
Free Cash Flow ***0.8 € bn

+ 27%+ 10%+ 21%+ 5%€ 1.5 bn in 2000

EPS *1.16 €(0.06 €) in 2000

New orders
Total backlog

60.2 € bn
183.3 € bn+ 23%+ 39%+ 4%+ 16%* pre-goodwill amortisation and exceptional** EADS pro-forma, excluding Airbus UK in 2000*** including customer financing cash impact
6

Strong improvement of financial performance

Conference call - Amsterdam- March 18th, 2002
6

2001: Operating performance improvement
across all the board
including nonrecurring expenses

Revenues
2001
changeEBIT***
2001
2000

Airbus*20.5 €bn+ 38%

1,655€m

1,412€m

MTA **

0.5 €bn+ 73%

1€m(63€m)

Aeronautics**

5.1 €bn+8%

308€m

296€m

Space**

2.4 €bn(4%)(222€m)67€m

DCS **

3.3 €bn+15%(79 €m)(110€m)HQ/Eliminations(1.0 €bn)31€m(203€m)Total EADS

30.8 €bn

1,694€m

1,399€m+27%* in 2000 only 80%** total EADS military business: 6.1Bn*** pre-goodwill amortisation and exceptional
7All divisions but Space increased revenues and EBIT

Conference call - Amsterdam- March 18th, 2002
7EADS regional breakdown
pro-forma 2000 Revenues
regional breakdown

pro-forma 2001 Revenues
regional breakdown

Rest of theWorld

Rest of theWorld

10%
9%

Asia

Asia

11%
10%

53%

Europe45%

28%
NorthAmerica

8Conference call - Amsterdam- March 18th, 2002
8Europe34%
NorthAmerica

A strong business base

Synergies
Value added achievements ahead of plans2001 breakdown by division
Aeronautic
6%

e2004

DCS
21%

Space 7%
MTA 3%

Airbus63%

2001 breakdown by source
Purchasing
value added

29%
71%

Others :R&D,production,efficiencies...

e2002 600€m

Added 300
2001 €m>100€m

Further improvement of EADS cost structureby reaching Merger Integration targets
Conference call - Amsterdam- March 18th, 2002
991.

2001 Overview

2.

Operating performance by activity

3.

Financials

4.

Outlook

10
Conference call - Amsterdam- March 18th, 2002
10Airbus 2001 performance and key drivers€mpro-forma** Actual
2000
2001
311

325

14,856

20,549R&D self-financed920
in % of revenues
6.2%

1,630
7.9%

EBIT*
in % of revenues

1,412
9.5%

1,655
8.1%

Order book104,387
in units
1626
in yrs of prod ***5.4

156,075
1575
5.3

Deliveries (in units)
Revenues*
pre- goodwill and exceptional** excluding Airbus UK in 2000*** at expected 2002 production level (300)11
Conference call - Amsterdam- March 18th, 2002
11■■

■■

■

■

2001 backlog =1575 ac , net of
distressed airlines orders
Revised backlog with customers(post- Sept 11) secures deliveries
at 300 in 2002
A380 success : 85 firm orders +12 commitments, including 37
post Sept 11 events
R&D increase in line withbudget
Production Flexibility allows to
cut costs equivalent to 6,000 fulltime jobs
Customer financing exposure :decrease in 2001 despite Sept 11

Efficiently Manage the current downturnMTA 2001 performance and key drivers€mRevenues

pro-forma Actual2000
2001■316547■

R&D self-financed
59
in % of revenues 18.7%

539.7%■

EBIT*-63
in % of revenues -19.9%

10.2%

Order bookTimes Revenues

1,320
2.4

873
2.8

* pre- goodwill and exceptional

12■■

Positive EBIT in 2001
Ramp up of C295 deliveries
C295 selected by Poland andAbu Dhabi
C235 platform selected byBoeing for Deep Water
contract€ 18 bn A400M contract
signed on Dec. 2001, to be
enforced this year after
German Parliament approval;
EADS project stake 89.5%(with Airbus 100%); strong
revenues generation from 2002
onwards

A fast growing profile of revenues and EBIT

Conference call - Amsterdam- March 18th, 2002
12Aeronautics 2001 performance and key drivers
pro-forma
2000

Actual
2001

4,704

5,065

R&D self-financed
128
in % of revenues
2.7%

132
2.6%

EBIT*
in % of revenues

308
6.1%

€mRevenues

296
6.3%

■

■

■

Order book
13,067
Times Revenues
2.8* pre- goodwill and exceptional

1313,722
2.7■

Civil helicopters: increased worldwide civil market share to 57%;
security forces new needs
Military helicopters : outstanding
successes on export markets(Portugal, Northern countries,Australia) worth €1.6bn in total ;more than 500 military helicoptersin backlog
Eurofighter : production ramp up;
deliveries to start in 2002
Regional aircraft : ATR integrated
company created; positive EBIT

Upbeat future driven by military contracts

Conference call - Amsterdam- March 18th, 2002
13

Space 2001 performance and key drivers
pro-forma
2000

Actual
2001

2,535

2,439

R&D self-financed
61
in % of revenues
2.4%602.5%EBIT*
in % of revenues

672.6%

(222)
-9.1%

Order bookTimes Revenues

4,826
1.9

3,796
1.6€mRevenues* pre- goodwill and exceptional, butincluding non-recurring expenses

Restructuring on track :■ New management put in placewith business now refocused■ 2 integrated businesses
Launchers and satellites■ Accelerating cost cutting andimproved efficiencies■ Non Recurring expenses in 01
due to additional restructuring,
depreciation of some investments
and cost overruns on someprograms■ Astrium selected for the £ 2 bn
Skynet 5 project

Secure future earnings through14current restructuring and new projects
Conference call - Amsterdam- March 18th, 2002
14Defence and Civil Systems
2001 performance and key drivers
pro-forma
2000

Actual
2001

2,909

3,345

R&D self-financed161
in % of revenues
5.5%

173
5.2%

EBIT*
in % of revenues

(110)
-3.8%

(79)
-2.4%

Order bookTimes Revenues

9,722
3.3

9,094
2.7

€mRevenues

EBIT loss reduced from 2000;
EBIT positive in H2 2001; on
track with target■ On-going restructuring■ MBDA creation effective■ Main missiles programs : end ofdevelopment, start of production■ Defenceelectronics growthfrom Eurofighter delivery ramp up■ EDSN business strengthened byCogent acquisition■* pre- goodwill and exceptional, butincluding non-recurring expenses

Growth of EBIT driven by on-going restructuring
15and programs entering delivery
Conference call - Amsterdam - March 18th, 2002
15

1.

2001 Overview

2.

Operating performance by activity

3.

Financials

4.

Outlook

16
Conference call - Amsterdam- March 18th, 2002
16

Management Focus

Management focused onC

Cost savings

CSynergies

CCash management

C

17
Conference call - Amsterdam- March 18th, 200217

Improving ROI on DefencebusinessProfit & loss highlights
Pro forma 2000**€m€ million

Actual 2001

in % ofrevenues€ million

in % ofrevenues

6.6%
10.4%
5.5%
8.2%
(1.7%)

Revenues
Self-financed R&DEBITDA*
EBIT *

24,208
1,339
2,334
1,399

5.5%
9.6%
5.8%

30,798
2,046
3,213
1,694

Operating income after
goodwill/exceptional
Financial results

200(1,315)0.8%(5.4%)

2,514
(513)

of which due to hedge accountingof which Nortel JV impairment test(1,436)
0Net income
Net income *(909)
(45)

(234)
(315)

(3.8%)(0.2%)* pre-goodwill and exceptional

Year-end net cash position

2,143

1,372
936

4.5%
3.0%

** excluding Airbus UK in 2000

1,533

Strong improvement of Net Profit before exceptional &18
goodwill despite heavy non-recurring expenses
Conference call - Amsterdam - March 18th, 2002
18

Goodwill and exceptionals€mValue asof Dec.
31, 2001
Extraordinary gain from Airbus creation
Extraordinary gain from MBDA creation

Annual amortisation chargeamortisation
2000
2001 e2002*
period02,5370na0257

Goodwill(429)(1,466)

(680)

(429)

(676)(680)

0(790)

010,442- of which normal amortization- of which DCS and Space
impairement tests

Impairement test on Nortel JV

20 yrs(315)

Fair value on fixed assets

1,452(176)

(260)

(250)

Fair value on inventories
Total goodwill& exceptionals (pre-tax)

47(483)

(275)

(47)

(1,088)

478

(977)

5-25 yrs* estimates

19

Exceptional acceleration of goodwill depreciation on
Space and DCS assets; Airbus goodwill confirmed

Conference call - Amsterdam- March 18th, 2002
19

Development of net cash
€ million

Net cash position of previous yearpro-forma
2000(946)

Actual2001
2,143

Change in debt due to Airbus 100% consolidation(838)

Net cash position as of January 1st 2001

1,305

Cash flow from operations

1,699

2,654

Cash from Working capital reduction

1,460

2

Cash used for investing activities*(1,628)(1,882)

Free cash flow

1,531

774

Dividend payments
Capital increase(31)
1,540(404)2149(163)

2,143

1,533

OthersNet cash position as of December 31* excluding investment in medium-term securities for € 390 m in 200120
Conference call - Amsterdam- March 18th, 2002
20

free cash flow generation guarantees
flexibility in 2002

Dividend policy
WeWepropose
proposeto
topay
pay€€404404m*
m*asasdividend
dividendfor
for2001
2001asasaaresult
resultofofourourstrong
strongcommercial
commercialsuccesssuccess

EADS Dividend per share
0,60,50,40,50,52000

2001

0,30,20,10
Dividend/Share (€)* subject to AGM approval on May 17

21
Conference call - Amsterdam- March 18th, 2002
21

Continuing our dividend policy

1.

2001 Overview

2.

Operating performance by activity

3.

Financials

4.

Outlook

22
Conference call - Amsterdam- March 18th, 200222

2002 Financial targets■

Book-to bill ratio > 1■

Backlog expected to grow > € 190 bn■

Revenues forecast to hold solidity at about the current level(-2% from 2001using constant US$) despite difficult aviation
business environment■

EBIT* margin pre-R&D maintained around 12%.
By including higher R&D, low deliveries, risk assessment andfurther reactivity, 2002 EBIT* is targeted at ~1.2 € bn■

Free Cash Flow positive before customer financing cash impact,
itself strictly limited below € 1.8 bn* pre-goodwill & exceptional

23
Conference call - Amsterdam- March 18th, 2002
23

Top priority : preserving profitability

EADS:strong and resilient

Actively protecting profitability and cash
Value creation and recurring savings on track
future growth secured by unparalleled backlog
Strong Defence business growth to enhance
future profitability

24
Conference call - Amsterdam- March 18th, 2002
24

ANNEXE

25

ANNEXE : Balance sheet€ million
Dec. 2001**

Dec. 2000

Fixed Assetsof which intangible assets/ goodwillof which property, plant & equipmentof which financial assets
Current Assetsof which cash & equivalents,securitiesof which working capital assets
Deferred Tax Assets
Pre-paid Expenses
Total Assets

25,364
10,58810,0504,726
18,318
8,033
10,285
4,288
745
48,71520,894
8,165
8,120
4,609
16,745
7,922
8,823
3,151
654
41,444

Shareholders´ Equity
Minority interest
Total provisionsof which other accrualsof which pensions
Deferred Tax Liabilities & Income
Total Liabilitiesof which trade liabilitiesof which financial debt
of which other liabilities
Total Shareholders´ Equity & Liabilities

9,877
559
11,918
8,742
3,176
3,764
22,597
5,466
6,500
10,631
48,715

10,250
221
8,684
5,698
2,986
4,042
18,247
4,268
5,779
8,200
41,444* Airbus 100% consolidated from January 1st 2001** MBDA 50% consolidated in 2001 year-end balance sheet
26
Conference call - Amsterdam- March 18th, 2002
26