EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

First Quarter 2004 Report

Unaudited Condensed Interim Consolidated
Financial Information of EADS N.V.
for the first quarter of 2004

Unaudited Condensed Consolidated Income Statements ........................................... 2
Unaudited Condensed Consolidated Balance Sheets ................................................. 3
Unaudited Condensed Consolidated Cash Flow Statements ...................................... 4
Unaudited Condensed Consol. Statements of Changes in Shareholders’ Equity ....... 5
Notes to the Unaudited Condensed Interim Consolidated Financial Statements(according to IFRS) as at March 31, 2004 ................................................................... 5
1. The Company...................................................................................................... 5
2. Accounting policies ............................................................................................. 5
3. Changes in the consolidation perimeter and major events of EADS.................. 6
4. Segment information ........................................................................................... 6
5. EBIT pre goodwill amortization and exceptionals............................................... 7
6. Significant profit and loss statement items ......................................................... 7
7. Significant balance sheet items .......................................................................... 8
8. Significant cash flow items.................................................................................. 8
9. Contingencies ..................................................................................................... 9
10. Number of shares ............................................................................................... 9
11. Earnings per share.............................................................................................. 9
12. Related party transactions ................................................................................ 10
13. Number of employees………………………………………………………….
10
14. Subsequent events ………………………………………………………………. 10

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

Unaudited Condensed Consolidated Income Statements
January 1 March 31, 2004
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
thereof amortization of goodwill
and related impairment losses
Research and development
expenses
Other income
Income (loss) from operating
activities
Financial result
Income taxes
Profit (loss) from ordinary
activities
Minority interests
Net income (loss)

Earnings per share
Basic and diluted

M€
6.031
-4.881
1.150

January 1 March 31, 2003

%
100
-81
19

M€
5.520
-4.454
1.066

-562

-9

0

Deviation

%

M€

%

100
-81
19

511
-427
84

9
10
8

-689

-12

127

-18

0

-140

-3

140

-100

-535

-9

-528

-10

-7

1

65

1

55

1

10

18

118
-16
-42

2
0
-1

-96
-14
1

-2
0
0

214
-2
-43

-223
14
-4.300

60
-11
49

1
0
1

-109
16
-93

-2
0
-2

169
-27
142

-155
-169
-153

€

€

€

0,06

-0,12

0,18

2

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

Unaudited Condensed Consolidated Balance Sheets
March 31, 2004

December 31, 2003

M€

M€

%

Deviation

%

M€

%

Fixed assets
Intangible assets

9.711

18

9.694

17

17

0

Property, Plant and Equipment

11.66822

11.44821

220

2

Financial Assets

4.240

8

4.129

8

111

3

25.61948

25.27146

348

1Inventories

3.425

6

3.279

6

146

4

Trade receivables

3.449

6

4.001

7

-552

-14

Other receivables and other assets

9.036

17

10.28019-1.244

-12

260

1

468

1

-208

-44

Non-fixed assets

Securities
Cash and cash equivalents
Deferred taxes
Prepaid expenses

8.185

15

7.404

14

781

11

24.35545

25.43247-1.077

-4

2.758

5

2.724

5

34

1

950

2

951

2

-1

0

53.682100

54.378

100

-696

-1

813

2

813

1

0

0

Reserves

9.638

18

9.589

18

49

1

Accumulated other comprehensive
income

5.374

10

5.934

10

-560

-9

Treasury shares

-187

0

-187

0

0

0

15.63830

16.149

29

-511

-3

Total assets
Shareholders' equity
Capital Stock

Minority interests

2.051

4

2.179

4

-128

-6

Provisions

8.822

16

8.726

16

96

1

5.001

9

4.767

9

234

5

Trade liabilities

5.282

10

5.117

9

165

3

Other liabilities

11.21321

11.318

21

-105

-1

Liabilities
Financial liabilities

21.49640

21.202

39

294

1

Deferred taxes

3.258

6

3.664

7

-406

-11

Deferred income

2.417

4

2.458

5

-41

-2

Total liabilities andshareholders' equity

53.682100

54.378

100

-696

-1

3

12.05.2004

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

Unaudited Condensed Consolidated Cash Flow Statements

Net income (loss)
Income (loss) applicable to minority interest
Adjustments to reconcile net income(loss) to cash provided byoperating activities
Depreciation and amortization of fixed assets
Valuation adjustments
Deferred tax income
Results on disposals of fixed assets/businesses and results ofassociates (equity method)
Change in provisions
Change in other operating assets and liabilities
Cash provided by operating activities
Investments:- Purchases in fixed assets- Increase in equipment of leased assets

January 1 - March 31, January 1 - March 31,
2004
2003
M€
M€
49
-93
11
-16

380
21
-11

453
5
-95

-23
78
462
967

-37
-197
102
122

-501
-27

-409
-104

- Payments for investments in financial assets and acquisitions ofsubsidiaries- Proceeds from disposal of fixed assets and decrease inequipment of leased assets- Proceeds from disposal of financial assets and subsidiaries- Change in finance lease receivables
Change in securities
Change in cash from changes in consolidation
Cash used for investing activities
Change in financial liabilities
OthersCash provided by financing activities
Effect of foreign exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

-18

-112

21
30
14
213
0
-268
83
1
84

22
84
9
9
-160
-661
1.080
0
1.080

-2
781

-7
534

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

7.404
8.185

5.401
5.935

In the first quarter 2004, cash flow from changes in securities included in investing activities increased
due to sales of securities by 213 M € (first quarter 2003: sale of securities for 9 M €). These mediumterm securities are included in Securities as stated in the balance sheet.

As of March 31, 2004, 551 M € (December 31, 2003: 613 M €) are included in Cash and cash
equivalents, which represent EADS’ share in MBDA’s cash and cash equivalents, deposited at BAe
Systems and Finmeccanica. Additionally, Cash and cash equivalents include 333 M € (December 31,
2003: 273 M €) representing the amount Airbus has deposited at BAe Systems. These funds areavailable for EADS upon demand.

4

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

Unaudited Condensed Consolidated Statements of Changes in Shareholders’EquityM€
Equity as of January 1, 2004
Net income
OCI
Equity as of March 31, 2004
Equity as of January 1, 2003
Net loss
OCI
Equity as of March 31, 2003

16.14949-560
15.63812.765-93758
13.430Notes to the Unaudited Condensed Interim Consolidated Financial Statements(according to IFRS) as at March 31, 2004
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 helicopters, commercial space launch vehicles, missiles,
military aircraft, satellites, defence electronics and rendering 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. Except for IFRS 3, the accounting policies used in the
preparation of the interim consolidated financial statements are consistent with those used in theannual Consolidated Financial Statements for the year ended December 31, 2003, which aredisclosed as an integral part of the Group’s Annual Report 2003. The annual Consolidated
Financial Statements were authorised for issue by EADS’ Board of Directors on March 5, 2004.
EADS is following International Financial Reporting Standards (IFRS) principles.
Costs incurring unevenly during the financial year are anticipated or deferred in the interim period
only if it is appropriate to anticipate or defer that type of cost at the end of the financial year.
Income tax expense is recognized based on the best estimate of the weighted-average annual
income tax rate expected for the full year applied on pre-tax income. The estimated annual
average income tax rate for 2004 is about 40 % (projected in the first quarter 2003: 41 %).
EADS decided to anticipate application of IFRS 3 “business combinations” as of January 1, 2004:
Goodwill is no longer regularly amortized, as previously requested under IAS 22, but instead is
subject to annual impairment tests. Furthermore, EADS also applies the revised versions of IAS 36
and 38 from January 1, 2004.
These Condensed Interim Consolidated Financial Statements should be read in conjunction withthe annual Consolidated Financial Statements 2003.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

3. Changes in the consolidation perimeter and major events of EADS
There were no material acquisitions or disposals of subsidiaries, business combinations, long-term
investments and discontinued operations during the first quarter 2004.
4. Segment information
The Group operates in 5 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 — Development, manufacturing, marketing and sale of military transport
aircraft and special mission aircraft.
• Aeronautics — Development, manufacturing, marketing and sale of civil and military helicopters,
regional turboprop aircraft and light commercial aircraft; and civil and military aircraft conversion
and maintenance services.
• Defence & Security Systems — Development, manufacturing, marketing and sale of missiles
systems; military combat aircraft; and provision of defence electronics, defence-related
telecommunications solutions; and logistics, training, testing, engineering and other related
services.
• Space — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers; and provision of launch 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.”.
Due to the new organizational structure of the Group, the Defence & Security Systems division has
been renamed and restructured, especially the Military Aircraft business unit has been transferredfrom Aeronautics division to Defence & Security Systems division. Prior year figures are adjusted
accordingly in these notes.

in M €

AirbusMilitary
Transport

Aeronautics

Defence &Security
SystemsSpace

HQ/ Conso.

Consolidated

Three months ended March 31, 2004
External revenues

4.126

101

645

932

457

-230

6.031

Research and development
expenses

463

7

18

40

8

-1

535

EBIT pre goodwill amort. andexceptionals (see definition
below)

224

-8

10

-51

-11

34

198

3.775

96

686

813

403

-253

5.520

Research and development
expenses

445

6

17

49

11

0

528

EBIT pre goodwill amort. andexceptionals (see definition
below)

166

-11

16

-54

-21

34

130

Three months ended March 31, 2003
External revenues

6

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

5. EBIT pre goodwill amortization and exceptionals
EADS uses EBIT pre goodwill amortization and exceptionals as a key indicator to measure theeconomic performance of the Group and its Segments. The term “exceptionals” refers to income
or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments
relating to the EADS merger, the Airbus combination and the formation of MBDA, as well as
impairment charges.
A reconciliation from Income from operating activities to EBIT pre goodwill amortization andexceptionals is set forth in the following table (in M €):January 1March 31, 2004

January 1March 31, 2003

Income (loss) from operating activities

118

-96

Income from investments

28

24

146

-72

Goodwill amortisation and related impairment charges

0140

Fair value adjustment

52

62

198

130

in M €

Goodwill and exceptionals:

EBIT pre goodwill amortization and exceptionals

6. Significant profit and loss statement items
EADS Group revenues in the first quarter 2004 reached 6.031 M €, which - compared with thefirst quarter 2003 – is an increase of 511 M €. All divisions except Aeronautics recorded increasing
revenues, mostly reflecting on one hand higher aircraft deliveries of Airbus with a more favourable
model mix and on the other hand stronger Military Aircraft and Missiles sales at the Defence &Security Systems division.
Research and development expenses of 535 M € (first quarter 2003: 528 M €) remained aboutstable mainly because of the Airbus A 380 project continuation. The change in accounting policy
with respect to capitalization of development costs did not significantly impact the R&D costs
recognized as expenses.
EADS applied IFRS 3 “business combinations” as of January 1, 2004: Goodwill is no longer
regularly amortized, as previously requested under IAS 22, but instead is subject to annual
impairment tests. In the first quarter 2003, Goodwill amortization of 140 M € represented regularperiodic amortization.
The financial result includes net interest charge of -59 M € (first quarter 2003: -18 M €), whichchanged mostly due to a higher interest charge accrued for refundable government advances andnegative effects from the interest spread between cash and financial liabilities.
Income from investments of 28 M € (first quarter 2003: 24 M €) was mainly influenced by the resultof Dassault Aviation of 23 M € (first quarter 2003: 28 M €). The decrease is mainly due to negative
IFRS-catch up restatements of 2003 in 2004.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

7. Significant balance sheet items
Intangible assets of 9.711 M € (prior year 9.694 M €) include 9.372 M € (prior year: 9.372 M €) ofGoodwill. EADS applied IFRS 3 “business combinations” as of January 1, 2004: Goodwill is nolonger regularly amortized, as previously requested under IAS 22, but instead is subject to annual
impairment tests.
Eliminating foreign exchange-rate effects of +114 M €, Property, plant and equipment increasedby 106 M € to 11.668 M € (prior year: 11.448 M €). Most of the increase is made by Airbus, due tostrong capital expenditures related to the A380 project and Space division, mainly caused by the
Paradigm / Skynet 5 program.
Financial Assets of 4.240 M € (prior year: 4.129 M €) increased in total – excluding foreignexchange-rate effect of +58 M € – by 53 M €, coming mainly from change in equity-value of
Dassault Aviation.
Inventories of 3.425 M € (prior year: 3.279 M €), net of customer advances, increased by 146 M €due to a higher level of unfinished goods and services.
The decrease in trade receivables is mainly due to high customer payments in Defence andSecurity, in Airbus and Aeronautics Divisions.
Other receivables and other assets decreased by -1.244 M € to 9.036 M € (prior year: 10.280 M€). The decrease is mainly caused by the variation of the fair values of financial instruments (1.168 M €), as a result of the rising US dollar exchange rate (USD / € spot rate of 1.22 at March
31, 2004 vs. 1.26 at December 31, 2003).
Cash and cash equivalents increased from 7.404 M € to 8.185 M €.
Stockholders‘ equity amounts to 15.638 M € (prior year: 16.149 M €), resulting from a Net
income of 49 M € and a decrease of -560 M € of OCI.
Minority interests of 2.051 M € (prior year: 2.179 M €) mainly represent shares of BAe Systems
in Airbus Group. The decrease in BAe Systems’ minority interest mainly is attributable to change infair values of financial instruments that qualify for hedge accounting according to IAS 39 in Airbus.
Provisions include 3.827 M € for retirement plans and similar obligations (prior year: 3.772 M €),187 M € of provisions for financial instruments (prior year: 100 M €) and 4.808 M € of otherprovisions (prior year: 4.854 M €).
Financial liabilities of 5.001 M € (prior year: 4.767 M €), excluding foreign exchange-rate effects
of +147 M €, increased by 87 M € due to the issuance of commercial papers of 100 M €.
Without considering foreign exchange-rate effects of +89 M €, other liabilities decreased by -194
M € to 11.213 M € (prior year: 11.318 M €). Other liabilities mainly include 5.176 M € of European
Government refundable advances and 3.544 M € of customer advance payments.
The decrease in deferred tax liabilities of -406 M € to 3.258 M € (prior year: 3.664 M €) issignificantly influenced by the decrease in the fair value of financial instruments accounted for asother assets.
8. Significant cash flow items
Cash provided by operating activities increases by 845 M € to 967 M € (first quarter 2003: 122
M €). This increase is mostly due to improvement in working capital resulting from lower
inventories increase and positive effects from trade payables. Moreover, last year’s cash flow
included negative effects from tax payments and the consumption of provision for old “macrohedges” that bore unfavourable rates.

8

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

Cash used for investing activities increases by 393 M € to -268 M € (first quarter 2003: -661 M€). The outflow is mainly caused by investments in fixed assets of -501 M €, thereof -90 M € in the
Paradigm program within Space division and investments of -159 M € for A380 in Airbus division.
These outflows were partly offset by the sale of securities in the first quarter 2004 by 213 M € (firstquarter 2003: 9 M €).
Cash provided by financing activities amounts to 84 M € (first quarter 2003: 1.080 M €) andmainly contains new commercial papers of EADS N.V. of 100 M € issued in the first quarter 2004.
9. Contingencies
Since the last balance sheet date (December 31, 2003), there were no significant changes incontingent liabilities.
10. Number of shares
The total number of shares outstanding is 800.957.248 and 800.957.248 as of March 31, 2004 and2003, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1,00 €. No
shares were repurchased neither in the first quarter of 2004 nor in the first quarter of 2003.
11. Earnings per share
Basic earnings per share are calculated by dividing net income (loss) attributable toshareholders by the weighted average number of issued ordinary shares during the period,
excluding ordinary shares purchased by the Group and held as treasury shares:

Net income (loss) attributable to shareholders
Weighted average number of ordinary shares outstanding
Basic earnings per share

January 1 toMarch 31, 2004

January 1 toMarch 31, 2003

49 M €(93) M €800.957.248

800.957.248

0,06 €(0,12) €For the 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 exercise price of the stock
options under the 4th and 5th stock option plans initiated by the Group is exceeding the share priceof EADS shares, the inclusion of these potential ordinary shares has a dilutive effect on theweighted average number of shares. According to IAS 33, 1.363.026 stock options are dilutive:

Net income (loss) attributable to shareholders
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

9

January 1 toMarch 31, 2004

January 1 toMarch 31, 2003

49 M €(93) M €802.320.274

800.957.248

0,06 €(0,12) €12.05.2004

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the three months ending March 31, 2004

12. Related party transactions
The Group has entered into various transactions with related companies in 2004 and 2003 thathave 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 related parties include
the French State, DaimlerChrysler, Lagardère, and SEPI (Spanish State). Except for thetransactions with the French State the transactions are not considered material to the Group either
individually or in the aggregate. The transactions with the French State include mainly sales fromthe Aeronautics, Defence & Security Systems and Space divisions.
13. Number of employees
The number of employees at March 31, 2004 is 109.869 as compared to 109.135 at December 31,
2003.
14. Subsequent events
In the context of the Advance Pricing Agreement with tax authorities (France, UK, Germany andSpain), the Airbus Group legal set up has been simplified and the contractual relationships
between the Airbus legal entities have been modified. In particular, the Airbus GIE has beenlegally merged in April 2004 within Airbus SAS, effective retroactively as of January 1st, 2004.
As a consequence, Airbus SAS being a Euro denominated entity, former operations handled by
the Airbus GIE entity are now considered accounting wise as foreign currency operations.
As the measurement of the accounting impact on the affected assets and liabilities (including
Currency Translation Adjustments reflected in Equity) resulting from transactions before January
1st, 2004 has not been completely assessed, the Q1 2004 financial statements do not report suchpotentially material positive accounting impacts. EADS will retroactively include and disclose in its
first half year 2004 financial statements the results of this modification.

10

12.05.2004