EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

First quarter 2007 Report

Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the first quarter 2007

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 Recognised
Income and Expenses for the first three months 2007 and 2006……………………………………..5
Unaudited Condensed IFRS Consolidated Reconciliation of Movement in Equity
attributable to equity holders of the parent and Minority interests…………………………….....…6
Condensed Notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at March 31, 2007……...….…………………………………………….…………...…………..….....…..6
1. The Company……………………………………………………………………………………..…..6
2. Accounting policies……………….………………………………………………..…………….....6
3. Changes in the consolidation perimeter of EADS…………………………....…….……….…8
4. Segment information………………………………..…………..…………………………..………8
5. EBIT pre-goodwill impairment and exceptionals…..……..……………………………………96. Significant income statement items………….…………………..………….………..……......10
7. Significant balance sheet items…………………...…………………………………...……......10
8. Significant cash flow items……………………………………………………..…...…..……….12
9. Number of shares………………………………………………………..........................….....…13
10. Earnings per share……………………………………..……………….………...………,……….13
11. Related party transactions ………………..…………………...…….……………………..……14
12. Number of employees ……………………………….……………….……………..........………14
13. Subsequent events ……………………………….……………………………..…….………..…14

1

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

Unaudited Condensed IFRS Consolidated Income Statements

January 1 March 31, 2007
Revenues*)
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expensesM€
8,984-7,866
1,118

January 1 March 31, 2006

%
100
-88
12

M€
9,083
-7,379
1,704

-626

-7

-550
44

Deviation

%

M€

%

100
-81
19

-99
-487
-586

-1
7
-34

-575

-6

-51

9

-6

-536

-6

-14

3

1

156

1

-112

-72

Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance costs andincome taxes
Interest income
Interest expenses
Other financial result
Finance costs*)
Income taxes(Loss) profit for the period

91

1

25

0

66

264

77
104
-135
-69
-100
16
-7

1
1
-1
-1
-1
0
0

774
96
-125
-33
-62
-215
497

8
1
-1
0
0
-2
6

-697
8
-10
-36
-38
231
-504

-90
8
8
109
61
-107
-101

Attributable to:Equity holders of the parent (Netloss / income)*)Minority interests

-10
3

0
0

522
-25

6
0

-532
28

-102
-112

Earnings per share
*)
Basic
*)
Diluted

€

€

€

-0.01
-0.01

0.66
0.65

-0.67
-0.66

*) For retrospective adjustments concerning the first quarter 2006 please refer to Note 2 “Accounting policies” and Note 10“Earnings per share”.

2

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

Unaudited Condensed IFRS Consolidated Balance Sheets
March 31, 2007
M€%

December 31, 2006
M€%

10,85914,25915
20

10,855
14,315

15
20

4
-56

0
0

2,124

3

2,095

3

29

1

1,600

2

1,666

2

-66

-4

3,847
2,757
1,484
36,930

5
4
2
51

4,231
2,624
1,294
37,080

6
4
2
52

-384
133
190
-150

-9
5
15
0

18,734
4,474
4,797
290
6,946
35,241

26
6
7
0
10
49

16,892
4,852
4,545
549
8,143
34,981

23
7
6
1
11
48

1,842
-378
252
-259
-1,197
260

11
-8
6
-47
-15
1

0

0

76

0

-76

-100

Total assets

72,171

100

72,137100

340Total equity
Equity attributable to equity holders of
the parent
Capital StockReserves
Accumulated other comprehensive
incomeTreasury shares

816
7,567

1
11

816
7,593

1
11

0
-26

0
0

4,615

6

4,955

7

-340

-7

-341
12,657139
12,796

0
18
0
18

-349
13,015
137
13,152

0
19
0
19

8
-358
2
-356

-2
-3
1
-3

9,726
3,459
2,373
12,31627,874

14
5
3
17
39

9,063
3,561
2,465
12,68027,769

13
5
3
17
38

663
-102
-92
-364
105

7
-3
-4
-3
0

3,718
1,761
7,310
225
18,48731,501

5
2
10
0
26
43

3,631
2,196
7,461
218
17,64631,152

5
3
10
0
25
43

87
-435
-151
7
841
349

2
-20
-2
3
5
1

0

0

64

0

-64

-100

59,37572,171

82
100

58,985
72,137

81
100

390
34

1
0

Non-current assets
Intangible assets
Property, Plant and Equipment
Investments in associates under theequity method
Other investments and long-term
financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Other current assets
Current securities
Cash and cash equivalents
Non-current assets / disposalgroups classified as held for sale

Minority interests
Non-current liabilities
Non-current provisions
Long-term financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Short-term financial liabilities
Trade liabilities
Current tax liabilities
Other current liabilities
Liabilities directly associated with
non-current assets classified asheld for sale
Total liabilities
Total equity and liabilities

3

Deviation
M€%

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

Unaudited Condensed IFRS Consolidated Cash Flow Statements
January 1 - March
31, 2007
M€(Loss) profit for the period attributable to equity holders of the1)parent (Net loss / income)
Profit (loss) attributable to minority interests
Adjustments to reconcile (loss) profit for the period (net loss /income) to cash (used for) provided by operating activities
Depreciation and amortization
Valuation adjustments and CTA release1)
Deferred tax (income) / expense
Change in tax assets, tax liabilities and provisions for actual
income tax
Results of disposal of non-current assets
Results of companies accounted for by the equity method
1)
Change in current and non-current provisions
Change in other operating assets and liabilities
Cash (used for) provided by operating activities- Purchase of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE- Acquisitions of subsidiaries and joint ventures (net of cash)- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-term financial assets- Proceeds from disposals of associates and otherinvestments and long-term financial assets- Increase in equipment of leased assets- Proceeds from disposals of leased assets- Increase in finance lease receivables- Decrease in finance lease receivables

January 1 - March 31,
2006
M€

-10
3

522
(25)

448
102
-41

345
23
155

-63
-86
-48
842
-1,603
-456
-502
36
0
30

6
-258
-23
90
-603
232
-501
35
-9
81

-203

-83

150
0
32
-6
77

453
-35
19
-5
15

Disposals of non-current assets / disposal groups classified asheld for sale and liabilities directly associated with non-current
assets classified as held for sale2)
Change of securities
Cash (used for) provided by investing activities2)
Change in long-term and short-term financial liabilities
Capital increase
Disposal (purchase) of treasury shares
Cash (used for) financing activities
Effect of foreign exchange rate changes and other valuation
adjustments on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents2)

27
70
-289
-461
5
8
-448

161
1,316
1,447
-265
76
-34
-223

-4
-1,197-8
1,448

Cash and cash equivalents at beginning of period2)
Cash and cash equivalents at end of period2)

8,143
6,946

5,386
6,834

1) For retrospective adjustments concerning the first quarter 2006 due to the revised IAS 19 “Employee benefits” please refer toNote 2 “Accounting policies”.
2) For retrospective adjustments concerning the first quarter 2006 of “Cash and cash equivalents” please refer to Note 2“Accounting policies” and Note 8 ”Significant cash flow items”.

As of March 31, 2007, EADS’ cash position (stated as cash and cash equivalents in the unaudited
consolidated cash flow statements) includes 573 M € (597 M € as of December 31, 2006), which
represent EADS’ share in MBDA’s cash and cash equivalents deposited at other shareholders. These
funds are available for EADS upon demand.

4

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

Unaudited Condensed IFRS Consolidated Statements of Recognised Income
and Expenses for the first three months 2007 and 2006

January 1 January 1 March 31, 2007 March 31, 2006

in M €
Foreign currency translation differences for foreign operations

-29

-69

Changes in fair value of cash flow hedges

-431

396

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

-45

36

Others*-46-11

Tax on income and expense recognised directly in equity

172

-144

Income and expenses recognised directly in equity

-379

208

-7

497

-386

705

-388
2
-386

730
-25
705

)

(Loss) profit for the period

Total recognised income and expense of the period
Attributable to:Equity holders of the parent
Minority interests
Total recognised income and expense of the period*) For retrospective adjustments concerning the first quarter 2006 due to the revised IAS 19 “Emloyee benefits” please refer toNote 2 “Accounting policies”.

5

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

Unaudited Condensed IFRS Consolidated Reconciliation of Movement inEquity attributable to equity holders of the parent and Minority interests
Equityattributable toequity holders of
the parent
13,726in M €
Balance at January 1, 2006

Minority
interests

total
176

13,902

-672

-23

-695

13,054153

13,207

Total recognised income and expenses

730

-25

705

Capital Increase

76

76

Disposals of treasury shares

-34

-34

*)

Retrospective adjustments
Balance at January 1, 2006, adjusted*)

Others10

7

17

Balance at March 31, 2006

13,836135

13,971

Balance at January 1, 2007

13,015

137

13,152

-388

2

-386

Total recognised income and expenses
Capital Increase

55Purchases of treasury shares

8

8

Others17

Balance at March 31, 2007

12,65717
139

12,796*) For retrospective adjustments as of January 1, 2006 and concerning the first quarter 2006 please refer to Note 2 “Accounting
policies”.

Condensed Notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at March 31, 2007
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) legallyseated in Amsterdam (Le Carré, Beechavenue 130-132, 1119 PR, Schiphol-Rijk, 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.
2. Accounting policies
These Condensed Interim Consolidated Financial Statements have been prepared in accordancewith IAS 34 Interim Financial Reporting. EADS’ Consolidated Financial Statements are prepared inaccordance with International Financial Reporting Standards (“IFRS”), adopted by the International
Accounting Standards Board (“IASB”) as endorsed by the European Union (EU). They comprise (i)IFRS, (ii) International Accounting Standards (“IAS”) and (iii) Interpretations originated by theInternational Financial Reporting Interpretations Committee (“IFRIC”) or former Standards
Interpretation Committee (“SIC”).

6

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

As of January 1, 2007, the following amendment to existing Standards, new Standard and newInterpretations became mandatory to EADS. The corresponding announcements have beenreleased by the IASB throughout 2005 and 2006:
EADS applies new IFRS 7 “Financial Instruments: Disclosures” and the complementary
amendment to IAS 1 “Presentation of Financial Statements” regarding “Capital Disclosures”(August 2005). Furthermore, EADS applies new Interpretations IFRIC 7 “Applying the Restatement
Approach under IAS 29”, IFRIC 8 ”Scope of IFRS 2” and IFRIC 9 “Reassessment of Embedded
Derivatives”.
IFRS 7 Financial Instruments: Disclosures
The application of IFRS 7 will lead to disclosures in the annual financial statements regarding thesignificance of EADS’ different financial instruments. Many of these requirements have previously
been covered by IAS 32. In addition, the Standard requires the disclosure of qualitative andquantitative information about an entity’s risk exposure arising from these financial instruments,
including sensitivity analyses of market risks.
Amendment to IAS 1 Presentation of Financial Statements – Capital Disclosure
The IAS 1 amendment introduces new qualitative and quantitative annual disclosure requirements
regarding managing capital in order to provide useful information for assessing an entity’s risk
profile as well as its ability to withstand unexpected adverse events. The requirements include
information about an entity’s objectives, policies and processes for managing capital as well as
quantitative data about what it regards as capital.
The application of the IAS 1 amendment and new IFRS 7 will lead to additional disclosures in
EADS annual Consolidated Financial Statements for year end 2007. However, neither the newStandard, nor the amendment, nor the new Interpretations mentioned above have a major impact
on these Condensed Interim Consolidated Financial Statements.
With the application of amended IAS 19 “Employee Benefits” in 2006 EADS changed its
accounting policy regarding the recognition of actuarial gains and losses which led to retrospective
adjustments in the Consolidated Financial Statements for the prior period presented:
Amendment to IAS 19 Employee Benefits
The amendment to IAS 19 introduced the recognition of actuarial gains and losses outside theincome statement within retained earnings as a third option (“Equity Option”). As of January 1,
2006, EADS applied the newly introduced alternative and changed its accounting policy regarding
the recognition of actuarial gains and losses arising from defined benefit plans for its 2006
Consolidated Financial Statements from formerly applied corridor approach. Actuarial gains andlosses are now directly recognised in equity in the period in which they occur. Prior period figures
presented have been adjusted accordingly as required under IAS 8 “Accounting Policies, Changes
in Accounting Estimates and Errors” (please refer to Note 7 “Significant balance sheet items”).
Compared to the corridor approach, the inclusion of actuarial gains and losses on January 1, 2006
led to an increase in pension provision of 1,118 M €, in deferred tax assets of 423 M € and to adecrease in equity of 672 M € and minority interests of 23 M €.
The 2006 change in the accounting policy for the recognition of actuarial gains and losses from thecorridor to the equity approach implied the reversal of expensed actuarial gains and losses under
the corridor approach. In the first three months of 2006, the continuation of the corridor approach
would have led to negative impacts of 11 M € to EBIT and 6 M € to Net Income.
Since 2006 year-end closing, EADS accounts for its participation in BAE Systems’ UK pension
plans by applying defined benefit accounting based on information provided by BAE Systems in

7

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

December 2006. Before that date, the information provided by BAE Systems was judged not to be
sufficient to identify EADS’ share in the UK pension schemes for accounting purposes.
Consequently in previous years, EADS had expensed the contributions made to the pension
schemes as if the plans were defined contribution plans.
The new information basis resulted in a change in accounting estimates as at 2006 year-end
closing and was accounted for accordingly under IAS 8 “Accounting Policies, Changes in
Accounting Estimates and Errors”.
The inclusion of EADS’ share in BAE Systems’ pension schemes as of December 31, 2006, withthe application of the newly introduced equity approach contributed 897 M € to the total increase inpension provisions, 44 M € to the increase of deferred tax assets, 827 M € to the decrease inequity and 26 M€ to the decrease in minority interests.
Cash and cash equivalents
For 2006 year-end Consolidated Financial Statements EADS restricted its interpretation of the
cash equivalents’ definition as provided in IAS 7 “Cash Flow Statements” to better reflect its shortterm investment strategy. IAS 7 states that “cash equivalents are held for short-term cash
commitments […], must be readily convertible to a known amount of cash and be subject to an
insignificant risk of changes in value. Therefore, an investment normally qualifies as a cash
equivalent only when it has a short-term maturity of, say, three months or less from the date ofacquisition.” EADS now strictly limits its cash equivalents to such investments having a maturity of
three months or less from acquisition date. Prior periods have been adjusted accordingly as
required under IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”.
Besides consequential changes as mentioned above the accounting policies used in the
preparation of the Condensed Interim Consolidated Financial Statements are consistent with thoseused for the annual Consolidated Financial Statements for the year ended December 31, 2006,
which are disclosed as an integral part of the Group’s Annual Report 2006. The annual
Consolidated Financial Statements were authorised for issue by EADS’ Board of Directors on
March 8, 2007.

3. Changes in the consolidation perimeter of EADSIn January 2007, EADS transferred its naval business to the Atlas Elektronik group. In connection
with this contribution, EADS increased its percentage of ownership from 40% to 49%. Atlas
Elektronik group is proportionately consolidated.
Following an agreement dated January 10, 2007, EADS sold the remaining 60% shares ofSogerma Services as well as the shares of its subsidiaries Barfield and Sogerma Tunisia.
Apart from these transactions, other acquisitions or disposals by the Group that occurred in thefirst quarter of 2007 are not material.
4. Segment information
The Group operates in five divisions (segments) which reflect the internal organizational andmanagement structure according to the nature of the products and services provided.
• Airbus — Development, manufacturing, marketing and sale of commercial jet aircraft of morethan 100 seats and the development and manufacturing of aircraft for military use.
• Military Transport Aircraft — Development, manufacturing, marketing and sale of militarytransport aircraft and special mission aircraft.

809.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

• Eurocopter — Development, manufacturing, marketing and sale of civil and military helicoptersand maintenance services.
• Defence & Security — Development, manufacturing, marketing and sale of missiles systems;
military combat and training aircraft; provision of defence electronics, defence-related
telecommunications solutions; and logistics, training, testing, engineering and other related
services.
• Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers; and provision of space services.
The following table presents information with respect to the Group’s business segments.
Consolidation effects, the holding function of EADS headquarters and other activities not allocableto the divisions are disclosed in the column “HQ/ Conso.”. “Other Businesses” comprises thedevelopment, manufacturing, marketing and sale of regional turboprop aircraft and lightcommercial aircraft, aircraft components as well as civil and military aircraft conversion andmaintenance services.

in M €

AirbusMilitary
Transport
AircraftEurocopter

Defence &Security

Other
HQ/ Conso.
Businesses

Astrium

Consolidated

Three months ended March 31, 2007
Revenues

6,606

133

671

970

629

282

-307

8,984

Research anddevelopment
expenses

-467

-4

-19

-39

-12

-2

-7

-550

EBIT pre-goodwill
imp. and exceptionals(see definition below)

-69

-13

33

-6

10

20

114

89

6,362

822

656

1,000

493

330

-580

9,083

-449

-3

-17

-44

-12

-2

-9

-536

684

9

28

39

1

-4

34

791

Three months ended March 31, 2006
Revenues
Research anddevelopment
expenses
EBIT pre-goodwill
imp. and exceptionals(see definition below)*)*) For retrospective adjustments concerning the first quarter 2006 please refer to Note 2 “Accounting policies”.

5. EBIT pre-goodwill impairment and exceptionals
EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic
performance. The term “exceptionals” refers to such items as depreciation expenses of fair value
adjustments relating to the EADS merger, the Airbus combination and the formation of MBDA, as
well as impairment charges thereon. EBIT pre-goodwill impairment and exceptionals is treated bymanagement as a key indicator to measure the segments’ economic performances.

9

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

A reconciliation from Profit before finance costs and income taxes to EBIT pre goodwill impairment
and exceptionals is set forth in the following table (in M €):in M €
Profit before finance costs and income taxes *)Fair value adjustments
EBIT pre-goodwill impairment and exceptionals*)January 1Mar. 31, 2007

January 1Mar. 31, 2006

77

774

12

17

89

791

*) For retrospective adjustments concerning the first quarter 2006 please refer to Note 2 “Accounting policies”.

6. Significant income statement items
Revenues of 8,984 M € (first quarter 2006: 9,083 M €) decrease by 1% mostly due to MTA (nomilestone recognition in relation to the A400M program in the first quarter of 2007). This was partly
compensated by positive developments at Airbus, Astrium and Eurocopter.
The Gross Margin decreases by -586 M € to 1,118 M € compared to 1,704 M € in the first quarter2006. This decrease mainly results from Airbus (in particular due to the negative impact resulting
from accrued “Power 8” restructuring charges) whereas Astrium, Defence & Security andEurocopter record increased gross margins.
Research and development expenses of 550 M € (first quarter 2006: 536 M €) mainly increase
because of aircraft programs and more research & technology efforts. With A380 development
moving from basic to continuing development, EADS capitalized no further development costs for
A380 in the first quarter of 2007 (in the first quarter 2006: 49 M €) in accordance with IAS 38.
Other income decreases by -112 M € to 44 M €, mainly due to the gain of 106 M € resulting fromthe sale of LFK GmbH and TDW GmbH to MBDA Group in the first quarter 2006.
Share of profit from associates under the equity method and other income frominvestments of 91 M € (first quarter 2006: 25 M €) is influenced by the result of Dassault Aviationof 48 M € (first quarter 2006: 24 M €). The result in the first quarter 2007 of Dassault Aviation
includes positive 2006 IFRS catch up adjustments amounting to +19 M €. Additionally, the sale of
EADS’ interest in Embraer resulted in a gain of 46 M €.
Finance costs deteriorate to -100 M € (first quarter 2006: -62 M €) mainly due to Airbus division.
Income taxes of +16 M € (first quarter 2006: -215 M €) are impacted - among others - by
DASSAULT’s equity result.

7. Significant balance sheet items
Non-current assets
Intangible assets of 10,859 M € (prior year: 10,855 M €) include 9,572 M € (prior year: 9,565 M €)of Goodwill. It mainly stems from Airbus (6,374 M €), Defence & Security (2,483 M €), Astrium(575 M €) and Eurocopter (111 M €). The annual impairment tests, which were performed at theend of the year, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of -53 M €, property, plant and equipment is nearlystable at 14,259 M € (prior year: 14,315 M €), including leased assets of 1,874 M € (prior year:

10

09.05.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

1,992 M €). Property, plant and equipment comprises “Investment property” amounting to 135 M €(prior year: 137 M €).
Investments in associates under the equity method of 2,124 M € (prior year: 2,095 M €)increase due to the change in the equity investment in Dassault Aviation, amounting to 2,014 M €(prior year: 1,985 M €).
Other investments and long-term financial assets of 1,600 M € (prior year: 1,666 M €) areallocated to Airbus in the amount of 1,048 M € (prior year: 1,012 M €), mainly concerning the noncurrent portion of aircraft financing activities with a foreign exchange-rate effect of -8 M €. The
increase at Airbus is more than compensated by the sale of Embraer shares (-123 M €).
Non-current other assets mainly comprise “Non-current derivative financial instruments” and“Non-current prepaid expenses”. The decrease by -384 M € to 3,847 M € (prior year: 4,231 M €) ismainly caused by the variation of the non-current portion of fair values of financial instruments(-454 M €).
Deferred tax assets of 2,757 M € (prior year: 2,624 M €) are presented as non-current assets as
required by IAS 1.
The fair values of derivative financial instruments are included in non-current other assets with
an amount of 2,781 M € (prior year: 3,235 M €), in current other assets (2,029 M €, prior year:
2,007 M €), in non-current provisions (198 M €, prior year: 152 M €) and in current provisions(73 M €, prior year: 79 M €) which corresponds to a total net fair value of 4,539 M € (prior year:
5,011 M €). The volume of hedged US dollar-contracts decreased from 45.1 bn US dollar to 44.3
bn US dollar. The US dollar exchange rate became less favourable (USD / € spot rate of 1.33 atMarch 31, 2007 vs. 1.32 at December 31, 2006). The average US dollar hedge rate for the hedge
portfolio of the Group as at March 31, 2007 changed from 1.16 as at December 31, 2006 to 1.17
as at March 31, 2007 (US dollar / € rate respectively).

Current assets
Inventories of 18,734 M € (prior year: 16,892 M €) increase by 1,842 M € in all divisions. This ismainly driven by a higher level of unfinished goods and services (mostly for A400M (+191 M€) andfor A380 (+144 M €)) and advance payments made (+232 M €) at Airbus, the progress of several
serial production programs in Eurocopter (+454 M €), higher activities at Defence and Security(+385 M €) and a higher work in progress at Astrium (+192 M €) boosted by Astrium’s satellite
business.
Other current assets include “Current portion of long-term financial assets”, “Current otherassets”, “Current tax assets” and “Current prepaid expenses”. The increase of +252 M € to 4,797
M € (prior year: 4,545 M €) comprises a +203 M € rise in value added tax claims.
Cash and cash equivalents decrease from 8,143 M € to 6,946 M €.

Total equity
Equity attributable to equity holders of the parent (including treasury shares) amounts to 12,657
M € (prior year: 13,015 M €). The decrease comes from income and expenses recognised inequity of -388 M €, primarily resulting from consumption as well as changes in fair values ofderivative financial instruments. The March 31, 2006 figure was adjusted retrospectively by -672 M€ because of the application of the Equity option of IAS 19 as amended in 2006 (please refer toNote 2 “Accounting policies”).

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

Minority interests slightly increase to 139 M € (prior year: 137 M €) due to the allocation ofrecognised income and expenses.

Non-current liabilities
Non-current provisions of 9,726 M € (prior year: 9,063 M €) comprise the non-current portion ofpension provisions with an increase of +83 M € to 5,685 M € (prior year: 5,602 M €).
Moreover, other provisions are included in non-current provisions, which increase by +580 M € to
4,041 M €. Other provisions include among others aircraft financing activities with a decrease of-57 M € to 964 M € (thereof foreign exchange rate effects of -11 M €) and obligations forsettlement charges for the A380 and A350 programs. The largest part of the increase is dedicatedto the non-current portion of the restructuring provisions for the “Power 8” program. Provisions forderivative financial instruments according to IAS 39 increased by +46 M € to 198 M €.
Long-term financial liabilities of 3,459 M € (prior year: 3,561 M €), excluding foreign exchangerate effects of -14 M €, decrease by -88 M € in particular due to lower Airbus loans.
Other non-current liabilities comprise “Non-current other liabilities” and “Non-current deferredincome” and decrease in total by -364 M € to 12,316 M € (prior year: 12,680 M €). They mainly
include non-current customer advance payments received of 6,088 M € (prior year: 6,308 M €) andthe non-current portion of European Government refundable advances amounting to 5,018 M €(prior year: 5,029 M €). The main part of non-current deferred income of 989 M € (prior year: 1,110
M €) is linked to deferred revenues of Airbus and ATR according to Residual Value Guarantee
clauses. The remaining portfolio, which is included in non-current deferred income, is depreciatedover the guaranteed period.

Current liabilities
Current provisions increase by +87 M € to 3,718 M € (prior year: 3,631 M €) and comprise thecurrent portions of pensions (281 M €) and other provisions (3,437 M €). The increase mainlyreflects the current portion of restructuring provisions for the “Power 8” program.
Short-term financial liabilities of 1,761 M € (prior year: 2,196 M €), excluding foreign exchangerate effects of -7 M €, decrease by -428 M €, mainly due to net repayments of commercial papers
with an amount of 290 M €.
Trade liabilities decrease by -151 M € to 7,310 M € (prior year: 7,461 M €), mainly coming from
Airbus (-160 M €) and Military Transport Aircraft (-105 M €), partly offset by Eurocopter (+256
M €).
Other current liabilities include “Current other liabilities” and “Current deferred income”. They
increase by +841 M € to 18,487 M € (prior year: 17,646 M €). Other current liabilities mainlycomprise current customer advance payments of 15,039 M € (prior year: 14,172 M €).
8. Significant cash flow items
Cash used for operating activities decreases by -688 M € to -456 M € (first three months 2006:
232 M €). Gross cash flow from operations (excluding working capital change) with 1,147 M €exceeds prior year’s level (first three months 2006: 835 M €), while changes in other operating
assets and liabilities (working capital change) amount to -1,603 M € (first three months 2006:
603 M €).

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

Cash used for investing activities decreases by -1,736 M € to -289 M € (first three months 2006:
1,447 M €). This is caused by negative effects from customer financing activities of Airbus and by
a decrease in changes of securities of -1,246 M €.
Cash used for financing activities decreases by -225 M € to -448 M € (first three months 2006:-223 M €). The outflow mainly contains the net repayment of financial liabilities.
Since EADS restricted its interpretation of the cash equivalents definition (please refer to Note 2“Accounting policies”), cash and cash equivalents at January 1, 2006 were decreased from 9,546
M € to 5,386 M € and at March 31, 2006 from 9,451 M € to 6,834 M €. The amounts concerned
are reclassified to securities. Consequently the line “change in securities” for the first three months
2006 records an amount of +1,316 M €, compared to -227 M € under the previous interpretation.
Cash provided by investing activities is shown with an amount of +1,447 M €, compared to -96 M €before. Instead of a decrease of -95 M €, cash and cash equivalents increase by +1,448 M € forthe first three months 2006.
9. Number of shares
The total number of shares outstanding is 801,577,420 and 799,933,291 as of March 31, 2007 and2006, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the first three months 2007, the number of treasury shares held by EADS increased from13,800,531 as of December 31, 2006 to 14,638,314 as of March 31, 2007.
284,210 new shares (in the first three months 2006: 3,812,891 shares) were issued as a result of
the exercise of stock options in compliance with the implemented stock option plans.
10. Earnings per share
Basic earnings per share are calculated by dividing loss (profit) for the period attributable toequity holders of the parent (Net loss / income) by the weighted average number of issued
ordinary shares during the period, excluding ordinary shares purchased by the Group and held astreasury shares:
January 1 toMarch 31, 2007

January 1 toMarch 31, 2006

Net loss/income attributable to equity holders of the parent-10 M €

522 M €

Weighted average number of ordinary shares outstanding

801,580,807

795,283,531-0.01 €

0.66 €

Basic earnings per share

The effect from applying in the first months of 2006 the IAS 19 equity approach instead of thecorridor approach contributes 0.01 € to basic earnings per share. For further details please refer toNote 2 “Accounting policies”.

For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. The Group’s only
category of dilutive potential ordinary shares is stock options. Since the average price of EADS
shares during the first three months of 2007 exceeded the exercise price of the stock options
under the 1st, 2nd, 4th and 5th stock option plans (in the first three months of 2006: the 1st, 2nd, 3rd,
4th, 5th and 6th stock option plan) initiated by the Group, the inclusion of the related potential

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months period ended March 31, 2007

ordinary shares increases the weighted average number of shares. 2,924,113 shares (first threemonths 2006: 7,953,755 shares) are considered dilutive according to IAS 33.

January 1 toMarch 31, 2007

January 1 toMarch 31, 2006

Net loss/income attributable to equity holders of the parent-10 M €

522 M €

Weighted average number of ordinary shares outstanding(diluted)

804,504,920

803,237,286-0.01 €

0.65 €

Diluted earnings per share

The effect from applying in the first three months 2006 the IAS 19 equity approach instead of thecorridor approach contributes 0.01 € to diluted earnings per share. For further details please refer
to Note 2 “Accounting policies”.
11. Related party transactions
The Group has entered into various transactions with related companies in the first quarter 2007
and 2006 that have all been carried out in the normal course of business. As is the Group’s policy,
all related party transactions have to be carried out at arm’s length. Transactions with relatedparties include the French State, DaimlerChrysler, Lagardère, and SEPI (Spanish State). Except
for the transactions with the French State, such transactions are not considered material to theGroup either individually or in the aggregate. The transactions with the French State include
mainly sales from the Eurocopter, Defence & Security and Astrium divisions.
12. Number of employees
The number of employees at March 31, 2007 is 116,966 as compared to 116,805 at December 31,
2006.
13. Subsequent events
The Annual Shareholders General Meeting held on May 4, 2007 in Amsterdam approved the 2006
annual accounts and a resolution for the payment of a cash distribution of 0.12 € per share.

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