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

First half-year 2011 Financial Report

2011 Semi-Annual Report of the Board of Directors…………………………………2

Unaudited Condensed IFRS Consolidated Financial Information of EADS N.V.
for the six-month period ended 30 June 2011.……………..…………………….…...4

Appendix: Auditor’s Review report128.07.2011

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

2011 Semi-Annual Report of the Board of Directors

1. Semi-Annual Report on Activities
Main Events in the first half-year of 2011
For an overview of the main events that occurred during the first half of 2011 and their impact
on the Unaudited Condensed IFRS Consolidated Financial Information of EADS for the sixmonth period ended 30 June 2011 (the “Semi-Annual Financial Statements”), please referto the press release issued on 29 July 2011, available on EADS’ website www.eads.com.
For further information and detail regarding EADS’ activities, finances, financing, risk factors
and corporate governance, please refer to EADS’ website www.eads.com and the
documents posted thereon.
Related Party Transactions
Please refer to the notes to the Semi-Annual Financial Statements attached hereto.

2. Risk Factors
EADS is subject to many risks and uncertainties that may affect its financial performance.
For a description of the main risks and uncertainties facing EADS for the remainder of 2011
and thereafter, please refer to Section 5.4 of the “Report of the Board of Directors” onactivities during the 2010 financial year (the “2010 Annual Board Report”), available on
EADS’ website www.eads.com.

3. Semi-Annual Financial Statements
The Semi-Annual Financial Statements, including the review report by Ernst & Young
Accountants LLP and KPMG Accountants N.V., are attached hereto.

4. Statement of the Board of Directors
The Board of Directors of EADS hereby declares that, to the best of its knowledge:(i) the Semi-Annual Financial Statements for the period ended 30 June 2011 give a true andfair view of the assets, liabilities, financial position and profits or losses of EADS andundertakings included in the consolidation taken as a whole; and2

28.07.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2011(ii) this Semi-Annual Board Report (which includes the press release issued on 29 July2011) gives a true and fair view of the position as per the balance sheet date, and of thedevelopment and performance during the first half of the 2011 financial year andexpected course of events of EADS and undertakings included in the consolidation taken
as a whole. This Semi-Annual Board Report has paid special attention to investments
and circumstances upon which the development of revenues and profitability isdependent, as these have been described herein.

Leiden, 28 July 2011
The Board of Directors
Bodo Uebber, Chairman
Louis Gallois, Chief Executive Officer
Rolf Bartke, Director
Dominique D'Hinnin, Director
Juan Manuel Eguiagaray Ucelay, Director
Arnaud Lagardère, Director
Hermann-Josef Lamberti, Director
Lakshmi N. Mittal, Director
Sir John Parker, Director
Michel Pébereau, Director
Wilfried Porth, Director

328.07.2011

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

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the six-month period ended 30 June 2011
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…5
Unaudited Condensed IFRS Consolidated Income Statements for thesecond quarter 2011 and 2010………………………………………………………………………………6
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...7
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…8
Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....……………..…9
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..……………….....10
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at 30 June 2011…...……….……………………………………….…………...…………..….....…......10
1. The Company……………………………………………………………………………………..…10
2. Accounting policies……………….………………………………………………..……………...11
3. Changes in the consolidation perimeter of EADS……...…………………………………….12
4. Segment information………………………………..…………..…………………………....……13
5. EBIT pre-goodwill impairment and exceptionals…..……..………………………………..…14
6. Significant income statement items………….…………………..………….………..……......15
7. Significant items of the statement of financial position…….……………………...…….....16
8. Significant cash flow items……………………………………………………..…...…..……….18
9. Number of shares………………………………………………………..........................……..…18
10. Earnings per share……………………………………..……………….………...…………….....18
11. Related party transactions.………………..…………………...…….……………………..……19
12. Number of employees ……………………………….……………….……………..........………19
13. Litigation and claims …..…………………………….……………….……………..........………20
14. Subsequent events... …..…………………………….……………….……………..........………20

4

28.07.2011

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

Unaudited Condensed IFRS Consolidated Income Statements

1 January - 30 June 2011

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

1 January - 30 June 2010

DeviationM€
21,936-18,900
3,036

%
100
-86
14

M€
20,308-17,626
2,682

%
100
-87
13

M€
1,628
-1,274354-1,214-6-1,146-5-68-1,409-6-1,301

-6

-108

67

0

89

0

-22

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

41

0

60

0

-19

521
185
-282
-269
-366
-45
110

2
1
-2
-1
-2
0
0

384
166
-280
5
-109
-88
187

2
1
-1
0
0
-1
1

137
19
-2
-274
-257
43
-77

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

109
1

0
0

185
2

1
0

-76
-1

Earnings per share

€

€

€

Basic and diluted

0.13

0.23

-0.10

5

28.07.2011

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

Unaudited Condensed IFRS Consolidated Income Statements for the second
quarter of 2011 and 2010
1 April - 30 June 2011

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

1 April - 30 June 2010

DeviationM€
12,082-10,385
1,697

%
100
-86
14

M€
11,358-9,782
1,576

%
100
-86
14

M€
724
-603
121

-625

-5

-619

-5

-6

-759

-6

-729

-6

-30

19

0

41

0

-22

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

8

0

42

0

-34

340
86
-136
-119
-169
-50
121

3
0
-1
-1
-2
0
1

311
84
-145
-125
-186
-41
84

3
1
-2
-1
-2
0
1

29
2
9
6
17
-9
37

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

121
0

1
0

82
2

1
0

39
-2

Earnings per share

€

€

€

Basic and diluted

0.15

0.10

0.05

6

28.07.2011

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

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

1 January 30 June 2010

110

187

-59

179

3,324

-7,452

145

-223

0

-550

116

35

Tax on income and expense recognized directly in equity-1,0192,461

Other comprehensive income, net of tax

2,507-5,550Total comprehensive income of the period

2,617-5,363

2,618
-1
2,617

-5,362-1-5,363in M €
Profit 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
Actuarial losses on defined benefit plans

1)1)

Unrealized changes from investments accounted forusing the equity method

1)

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

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

728.07.2011

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

Unaudited Condensed IFRS Consolidated Statements of Financial Position
30 June 2011M€%
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
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

31 December 2010
M€%

Deviation
M€%

11,554
13,42314
15

11,29913,504

14
17

255
-81

2
-1

2,535

3

2,451

3

84

3

2,438

3

2,386

3

52

2

2,720
3,050
5,910
41,630

3
4
7
49

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

2
5
6
50

745
-1,200
578
433

38
-28
11
1

22,991
6,579
5,069
4,219
5,146
44,004
85,634

27
8
5
5
6
51
100

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

25
8
4
7
6
50
100

2,129
-53
1,437
-1,615
116
2,014
2,447

10
-1
40
-28
2
5
3

817
7,607

1
9

816
7,691

1
9

1
-84

0
-1

2,955

3

446

1

2,509

563

-132
11,24727
11,274

0
13
0
13

-112
8,841
95
8,936

0
11
0
11

-20
2,406
-68
2,338

18
27
-72
26

7,776
2,891
1,079
16,66828,414

9
3
1
20
33

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

10
3
2
22
37

-437
21
-116
-1,535-2,067

-5
1
-10
-8
-7

5,719
1,344
8,548
216
30,11945,94674,36085,634

7
2
10
0
35
54
87
100

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

7
2
10
0
33
52
89
100

-47
-64
2
-38
2,323
2,176
109
2,447

-1
-5
0
-15
8
5
0
3

8

28.07.2011

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

Unaudited Condensed IFRS Consolidated Statements of Cash Flows

Profit for the period attributable to equity owners of the parent (Netincome)Profit for the period attributable to non-controlling interests

1 January 30 June 2011

1 January 30 June 2010

M€

M€
109

185

1

2

Adjustments to reconcile profit for the period to cash provided byoperating activities
Depreciation and amortization

823

764

Valuation adjustments

281

-367

Deferred tax (income)

-20

-2

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

-57

84

Results on disposals of non-current assets

12

-18

Results of companies accounted for by the equity method

-26

-52

Change in current and non-current provisions

-40

278

Change in other operating assets and liabilities
Cash provided by operating activities

-30

-815

1,053

59

-809

-810

20

10

-436

-4

18

0

Investments:- Purchases 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

-120

-90

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

40

57- Dividends paid by companies valued at equity

50

41

Change in securities

938

-76

Contribution to plan assets for pensions

-300

-316

Cash (used for) investing activities-599-1,188

9

-765

-178

0

Change in long-term and short-term financing liabilities
Cash distribution to EADS N.V. shareholders
Dividends paid to non-controlling interests-1-5

Changes in capital and non-controlling interests

-99

-22

Change in treasury shares

-20

-8

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

-289

-800

-49

219

Net increase (decrease) in cash and cash equivalents

116-1,710Cash and cash equivalents at beginning of period

5,030

7,038

Cash and cash equivalents at end of period

5,146

5,328

9

28.07.2011

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

As of 30 June 2011, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 723 M € (735 M € as of 31
December 2010), which represents EADS’ share in MBDA’s cash and cash equivalents deposited atother shareholders. These funds are available for EADS upon demand.

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

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

Profit for the period

total
10,641

185

2

187

-5,547-3-5,5500-5-5Capital decrease

-19

-3

-22

Change in treasury shares

-8

0

-8

Others3-7-4

Balance at 30 June 2010

5,149

90

5,239

Balance at 1 January 2011

8,841

95

8,936

Other comprehensive income
Dividends

Profit for the period

109

1

110

Other comprehensive income

2,509

-2

2,507

Dividends

-178

-1

-179

Equity transaction (IAS 27)

-45

-70

-115

Capital increase

16

4

20

Change in treasury shares

-20

0

-20

Others15

0

15

11,24727

11,274

Balance at 30 June 2011

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 30 June 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

10

28.07.2011

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

Financial Statements for the six-month period ended 30 June 2011 were authorized for issue by
EADS’ Board of Directors on 28 July 2011.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with IAS 34 Interim Financial Reporting (amended 2010) as adopted by the European
Union (EU). EADS’ Consolidated Financial Statements are prepared in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International AccountingStandards Board (“IASB”) and as endorsed by the European Union (EU) as at 30 June 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 IFRS Interpretations
Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
These Unaudited Condensed IFRS Interim Consolidated Financial Statements should be read in
conjunction with EADS’ Consolidated Financial Statements as of 31 December 2010. Except for
the revised or amended Standards to be applied for the first time in the first six months 2011
(mentioned below in the next section), EADS’ accounting policies and techniques are unchanged
compared to 31 December 2010.
Financial reporting rules applied for the first time in the first six months 2011
The following revised or amended Standards were applied for the first time in the first six months
2011 and are effective for EADS as of 1 January 2011. If not otherwise stated, they do not have amaterial impact on EADS’ Consolidated Financial Statements as well as its basic and diluted
earnings per share.
The IASB issued a revised version of IAS 24 “Related Party Disclosures” that simplifies thedisclosure requirements for government related entities and clarifies the definition of a related
party.
The amendment to IAS 32 “Classification of Rights Issues – Amendment to IAS 32 Financial
Instruments: Presentation” addresses the accounting for rights issues (rights, options or warrants)that are denominated in a currency other than the functional currency of the issuer. In particular,when the amendment is retrospectively applied, rights (and similar derivatives) to acquire a fixed
number of an entity’s own equity instruments for a fixed price stated in a currency other than theentity’s functional currency would be equity instruments, provided the entity offers the rights pro
rata to all of its existing owners of the same class of its own non derivative equity instruments.
The third omnibus of amendments to IFRS Standards (2010) includes amendments to 8 IFRSStandards and 1 Interpretation. The amendments refer to IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 21,
IAS 28, IAS 31, IAS 34 and IFRIC 13. Most of the amendments are mandatory for annual periods
beginning on or after 1 January 2011 with separate transition provisions for each amendment.
To correct an unintended consequence of IFRIC 14, the IASB issued amendments to IFRIC 14“Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14)”. Without theseamendments in some circumstances entities are not permitted to recognise some voluntary
prepayments for minimum funding contributions as an asset. This was not intended when IFRIC
14 was issued, and the amendments correct this issue.

11

28.07.2011

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

3. Changes in the consolidation perimeter of EADSOn 30 June 2011, Eurocopter Holding S.A.S., a subsidiary of EADS N.V., acquired 98.32% of
Vector Aerospace Corporation, Toronto (Canada), (hereafter referred to as “Vector”) following a
CAD 13.00 / share cash offer for all of the outstanding common shares of Vector, including all
shares that may be issued on the exercise of options granted under Vector’s share option plan.
Vector is an independent global provider of OEM approved maintenance, repair and overhaul
aviation services (MRO services) for aircraft and helicopter operators with annual revenues of
CAD 545 million / an EBIT of CAD 49 million / net earnings of CAD 33 million in 2010 according to
the year end 2010 consolidated financial statements prepared under Canadian GAAP. The
acquisition of Vector will help to increase the growth of support & services activities for Eurocopterand EADS in both the civil and governmental markets. Vector will also strengthen EADS’ presencein North America and the UK, in alignment with the company’s strategic goals as outlined in EADS’Vision 2020 plan.
The following table summarises the consideration transferred, the preliminary fair value of theidentifiable assets acquired and liabilities assumed as at the date of acquisition determined basedon Vector’s Q1/2011 IFRS financial statements published on 14 June 2011 as being the latest
financial information currently available.

Preliminary
fair value
recognised on
acquisition

In M €
Intangible assets

158

Property, plant and equipment

85

Deferred tax assets

2

Inventories

90

Trade receivables

71

Other current assets

4Cash and cash equivalents

23
433

Provisions

33

Financing liabilities

31

Trade liabilities

38

Tax liabilities

46

Other liabilities

20
168

Net assets acquired

265

Goodwill arising on acquisition

195

Total consideration in cash

460

12

28.07.2011

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

The preliminary total consideration includes the amount paid in cash for the acquisition of 98.32%
of Vector’s shares (452 M €) at the end of June 2011 as well as the amount of approximately
8 M € expected to be paid to the remaining non-controlling interest shareholders within theupcoming squeeze out procedures. Due to the payment obligation attached to these remaining
non controlling interest of Vector, EADS presents the resulting liability of this non-controllinginterest within other liabilities.
The acquired intangible assets identified within a preliminary purchase price allocation exercise
are expected to include customer and supplier relationships, technologies arising from Vector’srefit & upgrade capabilities and a brand name. The fair value of these acquired intangible assets ofapproximately 158 M € as well as the fair values of the other assets and liabilities acquired areprovisional pending on the final outcome of the purchase price allocation. The preliminary goodwillof 195 M € includes a control premium reflecting the expected synergies arising from the
combination with the existing MRO business of Eurocopter and EADS Group and joint future
market developments as well as the significant value of Vector’s assembled workforce due toregulatory training and licensing requirements for MRO staff in the aerospace sector. None of the
goodwill recognised is expected to be deductible for income tax purposes.
The gross amount of the trade receivables of 71 M € reflects their fair value. None of the tradereceivables have been significantly impaired and it is expected that the full contractual amounts
can be collected.
As the date of acquisition was 30 June 2011, Vector has not contributed to the revenues and to
the profit for the half year period of EADS Group. Within the first quarter 2011 (3 month period
from 1 January to 31 March 2011), Vector published revenues / an EBIT / net earnings ofapproximately 94 M € / 6 M € / 5 M € (before transaction costs). Had this business combination
been effected at the beginning of the year, the corresponding Q1/2011 EADS Group figures would
have increased accordingly. EADS considers these figures to represent an initial approximate
measure of the quarterly performance of the combined Group and to provide an initial reference
point for comparisons in future periods – based on the latest available IFRS figures of Vector as of
31 March 2011.

Apart from this transaction, other acquisitions or disposals by the Group that occurred in the firstsix months of 2011 or 2010, respectively, are not material.

4. Segment information
The Group operates in five reportable segments which reflect the internal organizational andmanagement structure according to the nature of the products and services provided.
 Airbus Commercial — Development, manufacturing, marketing and sale of commercial jet
aircraft of more than 100 seats and related services; aircraft conversion.
Airbus Military — Development, manufacturing, marketing and sale of military transport aircraft
and special mission aircraft and related services.

The reportable segments Airbus Commercial and Airbus Military form the Airbus Division.
 Eurocopter — Development, manufacturing, marketing and sale of civil and military helicopters;
provision of helicopter related services.

13

28.07.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2011 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

Six-month period ended 30 June 2011
Revenues

14,464

1,112

2,171

2,347

2,133

524

22,751-815

21,936

Research anddevelopment expenses-1,120

-14

-102

-30

-113

-4

-1,383-26-1,409Profit before financeresult and income taxes

210

2

94

101

74

2

483

38

521

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

223

3

94

103

89

12

524

39

563

Six-month period ended 30 June 2010
Revenues

12,965

1,007

2,109

2,110

2,183

554

20,928-620

20,308

Research anddevelopment expenses-1,021

-3

-94

-31

-123

-2

-1,274-27-1,301

Profit (loss) before
finance result andincome taxes

228

-162

70

104

107

0

347

37

384

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

241

-161

71

106

110

0

367

39

406

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

14

28.07.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 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 €):1 January 30 June 2011

in M €
Profit before finance result and income taxes

1 January 30 June 2010

521

384

Disposal of goodwill

22

0

Exceptional depreciation (fixed assets in cost of sales)

20

22

563

406

Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals

6. Significant income statement items
Revenues of 21,936 M € (first half-year 2010: 20,308 M €) increase by +1,628 M €, mainly at
Airbus Commercial (+1,499 M €) and Astrium (+237 M €). Airbus Military includes revenues
related to the A400M programme of 412 M € recognized under the percentage of completion
method based on milestones (first half-year 2010: 314 M €). Moreover, Eurocopter also
contributes to the increase of revenues whereas Cassidian revenues decrease slightly. Positive
volume and pricing effects drive the improvement at Airbus Commercial.
The Gross Margin increases by +354 M € to 3,036 M € compared to 2,682 M € in the first halfyear of 2010. This improvement is mainly related to better performance of legacy programmes atAirbus Commercial. The operational improvement at Airbus and Eurocopter is partly compensatedby unfavorable foreign exchange rate effects at Airbus Commercial.
Research and development expenses increase by -108 M € to -1,409 M € (first half-year 2010:-1,301 M €) principally reflecting an increase for the Airbus A350XWB.
Share of profit from associates under the equity method and other income frominvestments of 41 M € (first half-year 2010: 60 M €) mainly consists of the consistently estimatedshare of the result of Dassault Aviation of 38 M € (first half-year 2010: 66 M €). The Dassault
Aviation equity accounted-for income in the first half-year 2011 includes a negative catch-up on
2010 results amounting to -3 M € (first half-year 2010: +3 M € positive catch-up on 2009 results).
Finance result amounts to -366 M € (first half-year 2010: -109 M €) comprising interest result of-97 M € (first half-year 2010: -114 M €). Other financial result amounts to -269 M € (first half-year
2010: 5 M €) and mainly includes charges from the negative revaluation of financial instruments(-70 M €, first half-year 2010: -156 M €), the negative impact from foreign exchange valuation ofmonetary items (-102 M € vs. first half-year 2010: a positive impact of 299 M €) and the unwindingof discounted provisions (-81 M €, first half-year 2010: -152 M €).
The income tax expense of -45 M € (first half-year 2010: -88 M €) corresponds to an effective
income tax rate of 29% (first half-year 2010: 32%).

15

28.07.2011

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

7. Significant items of the statement of financial positionNon-current assets
Intangible assets of 11,554 M € (prior year-end: 11,299 M €) include 9,984 M € (prior year-end:
9,809 M €) of goodwill. This mainly relates to Airbus Commercial (6,425 M €), Cassidian(2,523 M €), Astrium (638 M €) and Eurocopter (312 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 -177 M €, property, plant and equipment increaseby +96 M € to 13,423 M € (prior year-end: 13,504 M €), including leased assets of 640 M € (prioryear-end: 759 M €). Property, plant and equipment also comprise “Investment property” amounting
to 74 M € (prior year-end: 77 M €).
Investments in associates under the equity method of 2,535 M € (prior year-end: 2,451 M €)mainly reflect the increase in the value of the equity investment in Dassault Aviation, amounting to2,418 M € (prior year-end: 2,318 M €).
Other investments and other long-term financial assets of 2,438 M € (prior year-end: 2,386
M €) are related to Airbus for an amount of 1,513 M € (prior year-end: 1,765 M €), mainly
concerning the non-current portion of aircraft financing activities including a foreign exchange rate
effect of -54 M €.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The increase by +745 M € to 2,720 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 (+797 M €).
Deferred tax assets of 3,050 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(1,399 M €, prior year-end: 602 M €), in other current assets (868 M €, prior year-end: 364 M €), inother non-current liabilities (678 M €, prior year-end: 2,109 M €) and in other current liabilities(314 M €, prior year-end: 821 M €) which corresponds to a total net fair value of 1,275 M € (prioryear-end: -1,964 M €). The volume of hedged US dollar-contracts increases from 70.2 billion US
dollar as at 31 December 2010 to 71.3 billion US dollar as at 30 June 2011. The US dollar spot
rate became less favorable (USD / € spot rate of 1.45 at June 30, 2011 vs. 1.34 at 31 December2010). The average US dollar hedge rate for the hedge portfolio of the Group remains stable at
1.38 USD / € as at 30 June 2011 and at 31 December 2010.

Current assets
Inventories of 22,991 M € (prior year-end: 20,862 M €) increase by +2,129 M €. This is partly
driven by higher unfinished goods and services for Eurocopter (+435 M €), Airbus (+405 M €),Cassidian (+321 M €), and Astrium (+172 M €) programmes. Airbus also records higher advancepayments made (+306 M €).
Trade receivables decrease by -53 M € to 6,579 M € (prior year-end: 6,632 M €), mainly causedby Airbus (-253 M €) and Cassidian (-114 M €) partly compensated by an increase at Eurocopter(+254 M €).

16

28.07.2011

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 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 +1,437 M € to
5,069 M € (prior year-end: 3,632 M €) comprises among others an increase of +504 M € in positive
fair values of derivative financial instruments.
Cash and cash equivalents slightly increase from 5,030 M € to 5,146 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 11,247 M € (prior year-end: 8,841 M €). The increase in equity is mainly due to othercomprehensive income for the period of +2,509 M €, mainly due to the change of fair values incash flow hedges. The increase is partly compensated by the cash distribution to EADS NV
shareholders of -178 M€.
Non-controlling interests decrease by -68 M € to 27 M € (prior year-end: 95 M €), mainly due tothe purchase of the remaining 25% of DADC Luft- und Raumfahrt Beteiligungs AG, Munich by
EADS.

Non-current liabilities
Non-current provisions of 7,776 M € (prior year-end: 8,213 M €) comprise the non-current
portion of pension provisions with a decrease of -212 M € to 4,825 M € (prior year-end:
5,037 M €) resulting from contributions to plan assets.
Moreover, other provisions are included in non-current provisions, which decrease by -225 M € to
2,951 M €. The decrease mainly reflects provisions for aircraft financing activities (-155 M €)mainly due to foreign exchange rate effects and provisions for loss making contracts (-50 M €).
Long-term financing liabilities, which mainly comprise bonds, increase by +21 M € to 2,891 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 -1,535 M € to 16,668 M €(prior year-end: 18,203 M €). The decrease mainly comes from the non-current portion of liabilities
for derivative financial instruments (-1,431 M €), amounting to 678 M € (prior year-end: 2,109 M €).

Current liabilities
Current provisions decrease by -47 M € to 5,719 M € (prior year-end: 5,766 M €) and comprisethe current portion of pension provisions (184 M €) and of other provisions (5,535 M €). A
decrease of provisions for loss making contracts (-136 M €) and of provisions for personnel
expenses (-75 M €) is partly compensated by an increase in provisions for outstanding costs (+76
M €) and provisions for aircraft financing (+57 M €). The provisions for loss making contracts
include provisions for the A400M programme of 2,165 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 +2,323 M € to 30,119 M € (prior year-end: 27,796
M €). Other current liabilities mainly comprise current customer advance payments of 25,622 M €(prior year-end: 23,285 M €), increasing by +2,337 M €.

1728.07.2011

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

8. Significant cash flow items
Cash provided by operating activities increases by +994 M € to +1,053 M € (first half-year
2010: +59 M €). Gross cash flow from operations (before changes in other operating assets andliabilities) of +1,083 M € improves compared to the prior period’s level (first half-year 2010: +874 M€). Changes in other operating assets and liabilities amount to -30 M € (first half-year 2010: -815 M€), mainly reflecting an increase in inventories nearly compensated by a higher level of advancepayments received and trade liabilities.
Cash used for investing activities amounts to -599 M € (first half-year 2010: -1,188 M €). This
mainly comprises purchases of intangible assets and property, plant and equipment of -809 M €(first half-year 2010: -810 M €), namely in Airbus division, acquisitions of subsidiaries and joint
ventures of -436 M € (first half-year 2010: - 4 M €), primarily due to the purchase of Vector
Aerospace and contributions to plan assets for pensions of -300 M € (first half-year 2010: -316 M€). These outflows are partly compensated by a change in securities of +938 M € (first half-year
2010: -76 M €).
Cash used for financing activities improves by +511 M € to -289 M € (first half-year 2010: -800
M €). While the outflow in the first half-year 2010 primarily comprised the repayment of the firsttranche of the EMTN bond (1 billion €) (included in change in long-term and short-term financing
liabilities), the cash distribution to shareholders of -178 M € as well as the purchase of theremaining 25% of the DADC Luft- und Raumfahrt Beteiligungs AG (shown in changes in capitaland non-controlling interests) are included in the first half-year 2011.

9. Number of shares
The total number of shares outstanding is 811,215,145 and 810,584,337 as of 30 June 2011 and2010, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the first half-year of 2011, the number of treasury shares held by EADS increased from
5,341,084 as of 31 December 2010 to 6,181,824 as of 30 June 2011.
In the first six months of 2011, EADS issued 994,247 new shares (in the first six months of 2010:
45,450 new shares).

10. 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:
1 January to
30 June 2011
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share18

1 January to
30 June 2010

109 M €

185 M €

810,797,892

810,848,870

0.13 €

0.23 €

28.07.2011

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

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 theexercise price of the 4th and the 5th stock option plan in the first six months of 2011 (in the first six
months of 2010: none of the stock option plans), 1,270,810 potential shares (in the first six months
2010: no shares) were considered in the calculation of diluted earnings per share.

1 January to
30 June 2011
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

1 January to
30 June 2010

109 M €

185 M €

812,068,702

810,848,870

0.13 €

0.23 €

11. Related party transactions
The Group has entered into various transactions with related companies in the first six months of2011 and 2010 that have all been carried out in the normal course of business. As it is the Group’s
policy, all related party transactions have to be carried out at arm’s length. Transactions withrelated parties include the French State, Daimler AG, Lagardère and SEPI (Spanish State). Except
for the transactions with the French State and SEPI and the transaction with the Daimler AG
mentioned below, such transactions are not considered material to the Group either individually oron aggregate. The transactions with the French State include mainly sales from the Eurocopter,
Astrium and Cassidian divisions. The transactions with SEPI include mainly sales from Airbus
Military and Cassidian. The French and Spanish State are also customers of the A400M
programme.
In the first half-year 2011, EADS purchased the remaining 25% of DADC Luft- und Raumfahrt
Beteiligungs AG, Munich from Daimler AG for a consideration of 110 M €.

12. Number of employees
The number of employees as at 30 June 2011 is 123,975 as compared to 121,691 as at 31
December 2010.

19

28.07.2011

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

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

14. Subsequent events
On 19 July 2011, the British Government and Airbus signed the Export Levy Financing agreement
for the A400M programme.

On 27 July 2011, Airbus announced that it has entered into an agreement with the Board of
Directors of Satair A/S, a Danish listed supplier of aftermarket products and services to thecommercial aerospace sector, for the launch of a public voluntary conditional tender offer.
According to this agreement, Airbus will offer the shareholders of Satair A/S a price of DKK 580 incash per share and the warrant holders in Satair A/S a price of DKK 378,66 per warrant. Thistransaction represents a total consideration of 2,595 M DKK or 348 M € respectively. Satair A/S
has undertaken to recommend the offer to its shareholders subject to and upon publication of theoffer document. Satair A/S' shareholders representing approximately 16% of its shares havealready committed to accept this offer under certain conditions.

20

28.07.2011

To: The EADS N.V. shareholders:Review report
Introduction
We have reviewed the condensed consolidated financial information of EADS N.V.,
Amsterdam, (‘the Company’) for the six-month period ended June 30, 2011, which comprises
the condensed consolidated statement of financial position as at June 30, 2011, and the relatedcondensed consolidated statements of income, comprehensive income, changes in equity andcash flows for the six-month period then ended and explanatory notes. Company’s management
is responsible for the preparation and presentation of this condensed consolidated financial
information in accordance with International Financial Reporting Standards as adopted by theEuropean Union (‘IAS 34’). Our responsibility is to express a conclusion on this condensed
consolidated financial information based on our review.
Scope of Review
We conducted our review in accordance with Dutch law including standard 2410, ‘Review ofInterim Financial Information Performed by the Auditor of the Entity’. A review of interim
financial information consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with auditing standards andconsequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that theaccompanying condensed consolidated financial information for the six-month period ended
June 30, 2011 is not prepared, in all material respects, in accordance with IAS 34, ‘Interim
Financial Reporting’, as adopted by the European Union.

Utrecht, July 28, 2011

Rotterdam, July 28, 2011

KPMG Accountants N.V.
(signed by J.C.M. van Rooijen)

Ernst & Young Accountants LLP(signed by C.T. Reckers)