EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

Year 2007 Report

Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the year 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 Expense..…………………………………………………….…………………………………..5Additional Information: Unaudited Condensed IFRS Consolidated Reconciliation of Movementin Equity attributable to equity holders of the parent and Minority interests…..…………….....…6
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at December 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………….…………………..………….………..……........9
7. Significant balance sheet items…………………...…………………………………...……......10
8. Significant cash flow items……………………………………………………..…...…..……….13
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

10.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

Unaudited Condensed IFRS Consolidated Income Statements

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

January 1 December 31, 2007

January 1 December 31, 2006

M€
39,123-34,802
4,321

100
-89
11

M€
39,434-34,722
4,712-2,275-6-2,608%

Deviation

%
100
-88
12

M€
-311
-80
-391

%

-2,462

-6

187

-8

-7

-2,458

-6

-150

6

233

1

297

1

-64

-22

-1
0
-8

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

296

1

189

0

107

57

-33
502
-701
-538
-737
333
-437

0
1
-2
-1
-2
1
-1

278
454
-575
-123
-244
81
115

1
1
-2
0
-1
0
0

-311
48
-126
-415
-493
252
-552

-112
11
22
337
202
311
-480

Attributable to:Equity holders of the parent (Netincome (loss))
Minority interests

-446
9

-1
0

99
16

0
0

-545
-7

-551
-44

Earnings per share
Basic
Diluted

€

€

€

-0.56
-0.55

0.12
0.12

-0.68
-0.67

2

10.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

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

December 31, 2006
M€%

10,832
13,48914
18

10,855
14,315

15
20

-23
-826

0
-6

2,238

3

2,095

3

143

7

1,553

2

1,666

2

-113

-7

3,543
2,705
2,691
37,051

5
4
3
49

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

6
4
2
52

-688
81
1,397
-29

-16
3
108
0

18,906
4,639
5,713
1,598
7,549
38,405

25
6
8
2
10
51

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

23
7
6
1
11
48

2,014
-213
1,168
1,049
-594
3,424

12
-4
26
191
-7
10

0

0

76

0

-76

-100

Total assets

75,456100

72,137

100

3,319

5

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

814
7,406

1
9

816
7,593

1
11

-2
-187

0
-2

5,076

7

4,955

7

121

2

-206
13,09085
13,175

0
17
0
17

-349
13,015
137
13,152

0
19
0
19

143
75
-52
23

-41
1
-38
0

8,055
3,090
2,188
14,88028,213

11
4
3
20
38

8,911
3,561
2,465
12,832
27,769

12
5
3
18
38

-856
-471
-277
2,048
444

-10
-13
-11
16
2

4,378
1,724
7,398
179
20,38934,068

6
2
10
0
27
45

3,552
2,196
7,461
218
17,72531,152

5
3
10
0
25
43

826
-472
-63
-39
2,664
2,916

23
-21
-1
-18
15
9

0

0

64

0

-64

-100

62,28175,45683
100

58,985
72,137

81
100

3,296
3,319

6
5

Non-current assets
Intangible assets
Property, Plant and Equipment
Investments in associates under theequity method
Other investments and other longterm 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

DeviationM€%

Non-current liabilities
Non-current provisions 1)
Long-term financing liabilities
Deferred tax liabilities
Other non-current liabilities 1)
Current liabilities
Current provisions 2)
Short-term financing liabilities
Trade liabilities
Current tax liabilities
Other current liabilities

2)

Liabilities directly associated with
non-current assets classified asheld for sale
Total liabilities
Total equity and liabilities
1)

Regarding the retrospective change in 2006 in presentation of „Non-current provisions“ (-152 M €) and “Other non-current
liabilities” (+152 M €) for financial instruments please refer to Note 2 a) “Accounting policies”.
Regarding the retrospective change in 2006 in presentation of „Current provisions“ (-79 M €) and “Other current liabilities” (+79
M €) for financial instruments please refer to Note 2 a) “Accounting policies”.

2)

3

10.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

Unaudited Condensed IFRS Consolidated Cash Flow Statements
January 1 - December January 1 - December
31, 2007
31, 2006
M€
M€
Profit (loss) for the period attributable to equity holders of theparent (Net income (loss))
Profit attributable to minority interests
Adjustments to reconcile profit (loss) for the period (net income(loss)) to cash provided by operating activities
Depreciation and amortization
Valuation adjustments/ others
Results of disposal of non-current assets
Results of companies accounted for by the equity method
Change in current and non-current provisions
Change in other operating assets and liabilities
Cash 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- Dividends paid by companies valued at equity- Increase in equipment of leased assets- Proceeds from disposals of leased assets- Increase in finance lease receivables- Decrease in finance lease receivables
Disposals of non-current assets / disposal groups classified asheld for sale and liabilities directly associated with non-current
assets classified as held for sale
Change of securities
Reimbursement from / contribution to plan assets
Change in cash from changes in consolidation
Cash (used for) provided by investing activities
Change in long-term and short-term financing liabilities
Cash distribution to EADS N.V. shareholders
Dividends paid to minorities
Payments related to liability for puttable instruments
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 equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

-446
9

99
16

1,772
594
-125
-210
2,268
1,175
5,037
-2,028
162
0
29

1,691
73
-336
-152
2,150
-143
3,398
-2,708
76
-82
86

-568

-421

481
39
-30
371
-150
118

813
46
-147
215
-16
79

26
-2,641-303-249-4,743
-719
-97
-1
0
46
0
-771

690
3,357
0
0
1,988
784
-520
-16
-2,87994-35-2,572

-117
-594

-57
2,757

8,143
7,549

5,386
8,143

As of December 31, 2007, EADS’ cash position (stated as cash and cash equivalents in the unaudited
consolidated cash flow statements) includes 602 M € (597 M € as of December 31, 2006), which
represent EADS’ share in MBDA’s cash and cash equivalents deposited at other shareholders. These

4

10.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

funds are available for EADS upon demand. The percentage of the proportional consolidation of MBDA
has changed from 50% to 37.5% as of January 1, 2007.

Unaudited Condensed IFRS Consolidated Statements of Recognised Income
and Expense
January 1 December 31,
2007

January 1 December 31,
2006

Currency translation adjustments for foreign operations

-196

-324

Changes in fair value of cash flow hedges

240

1,863

Change in fair value of available-for-sale financial assets

-50

76

Changes in actuarial gains and losses

608

-690

Tax on income and expense recognised directly in equity

-46

-662

Income and expense recognised directly in equity

556

263

(Loss) profit for the period

-437

115

Total recognised income and expense of the period

119

378

78
41
119

382
-4
378

in M €

Attributable to:Equity holders of the parent
Minority interests
Total recognised income and expense of the period

510.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

Additional Information: Unaudited Condensed IFRS Consolidated
Reconciliation of Movement in Equity attributable to equity holders of theparent and Minority interests
Equityattributable toequity holders of
the parent
13,054in M €
Balance at January 1, 2006

Minority
interests

total
153

13,207

Total recognised income and expense

382

-4

378

Cash distribution to shareholders

-520

-16

-536

Capital Increase

94

0

94

Purchase of treasury shares

-35

0

-35

Others40

444

13,015

137

13,152

Total recognised income and expense

78

41

119

Cash distribution to shareholders

-97

-1

-98

Capital Increase

46

2

48

Balance at December 31, 2006

Changes in minority interests

1)

OthersBalance at December 31, 2007
1)

0

-94

-94

48

0

48

13,09085

13,175

Please refer to Note 3 “Changes in the consolidation perimeter of EADS” and Note 7 “Significant balance sheet items”.

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at December 31, 2007
1. The Company
The accompanying Condensed 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 Unaudited Consolidated Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”), adopted by the International
Accounting Standards Board (“IASB”) as endorsed by the EU as at December 31, 2007. They
comprise (i) IFRS, (ii) International Accounting Standards (“IAS”) and (iii) Interpretations originatedby the International Financial Reporting Interpretations Committee (“IFRIC”) or former Standards
Interpretation Committee (“SIC”).

6

10.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

New Standards, Amendments to existing Standards and new Interpretations
The IFRS rules applied by EADS for preparing 2007 year end Consolidated Financial Statements
are the same as for previous financial year except for those following the application of new oramended Standards or Interpretations respectively and changes in accounting policies as detailed
below.
a) New Standards
IFRS 7 Financial Instruments: Disclosures (issued 2005)
IFRS 7 and the complementary amendment to IAS 1 (see below under paragraph b) became
effective January 1, 2007. Both Standards introduce additional qualitative as well as quantitative
disclosure requirements regarding the nature and extent of risk arising from financial instruments.
However, they do not have any impact on the classification or valuation of EADS’ financial
instruments.
In the course of IFRS 7, EADS changed its Balance Sheet presentation in 2007 retrospectively for
December 31, 2006 regarding provisions:
231 M € “provisions for negative fair values of derivative financial instruments” (IAS 39 Hedging
contracts) were reclassified to other liabilities to present them as financial liability.
b) Amended Standards
The application of the following amended Standard is mandatory for EADS as of January 1, 2007.
IAS 1 Presentation of Financial Statements: Capital Disclosure (issued 2005)
This amendment led to additional disclosures which shall enable users of EADS Group Financial
Statements to evaluate the Group’s objectives, policies and processes for managing capital.
c) New Interpretations
The following four Interpretations have become effective as of 1st January 2007:
IFRIC 7 Applying the Restatement Approach under IAS 29 (issued 2005)
IFRIC 8 Scope of IFRS 2 (issued 2006)
IFRIC 9 Reassessment of Embedded Derivatives (issued 2006)
IFRIC 10 Interim Financial Reporting and Impairment (issued 2006)

IFRIC 7 addresses the application of IAS 29 when an economy first becomes hyperinflationary andin particular the accounting for deferred taxes.
IFRIC 8 requires consideration of transactions involving the issuance of equity instruments, where
the identifiable consideration received is less than the fair value of the equity instruments issued inorder to establish whether or not they fall within the scope of IFRS 2.
IFRIC 9 states that the date to assess the existence of an embedded derivative is the date that anentity first becomes a party to the contract, with reassessment only if there is a change to thecontract that significantly modifies the cash flows.
IFRIC 10 requires that an entity must not reverse an impairment loss recognised in a previous
interim period in respect of goodwill or an investment in either an equity instrument or a financial
asset carried at cost.
The application of the four Interpretations did not have an impact on EADS Group Financial
Statements.

710.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

3. Changes in the consolidation perimeter of EADSThe percentage of the proportionate consolidation of MBDA has changed from 50 % to 37.5 % asof January 1, 2007 reflecting EADS ownership in MBDA.
In January 2007, EADS increased its share in the Atlas Elektronik group from 40% to 49% in
connection with the transfer of the EADS naval business into Atlas Elektronik. Atlas Elektronik is
proportionately consolidated and the final allocation of the purchase price to the acquired assets
and liabilities led to a goodwill of 42 M €.
Following an agreement dated January 10, 2007, EADS sold the remaining 60% shares ofSogerma Services as well as all shares of its subsidiaries Sogerma America Barfield B.C. (100 %)and EADS Sogerma Tunisie (50.1 %).
Apart from these transactions, other acquisitions or disposals by the Group that occurred in the2007 are not material.
Non-current assets held for sale and discontinued operations – With regard to the plan to sellsites in Méaulte, St. Nazaire Ville, Nordenham, Varel, Augsburg, Laupheim and Filton, an indepth
analysis has been performed to assess whether requirements of IFRS 5 for the classification of
disposal group(s) held for sale were met as at December 31, 2007. Considering the status of the
project as of December 31, 2007, the actions still necessary to complete the plan to sell all of thesites were considered of such a magnitude that it was not unlikely that significant changes to theplan to sell could be made.
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.
• 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.

810.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

in M €

AirbusMilitary
Transport
AircraftEurocopter

Defence &Security

Astrium

Other
HQ/ Conso.
Businesses

Consolidated

Year ended Decem ber 31, 2007
Revenues

25,216

1,140

4,172

5,465

3,550

1,269

-1,68939,123

Research anddevelopment
expenses-2,175

-16

-93

-169

-78

-8

-69

-2,608

-881

-155

211

340

174

94

269

52

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

Year ended Decem ber 31, 2006
Revenues

25,190

2,200

3,803

5,864

3,212

1,257

-2,09239,434

Research anddevelopment
expenses-2,035

-13

-78

-195

-71

-6

-60

-2,458

-572

75

257

348

130

-288

449

399

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

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. 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.
A reconciliation from Loss / profit before finance costs and income taxes to EBIT pre-goodwill
impairment and exceptionals is set forth in the following table (in M €):Ja nua ry 1Decem ber 3 1,
2007

Jan uary 1De ce mb er 31,
2 006

-33

278

Disposal of goodwill/ subsequent adjustment of goodwill

1264

Exceptional depreciation (fixed assets in cost of sales)

49

57

Exceptional disposal (fixed assets in other income)

24

0

52

399

in M €(Loss) profit before finance costs and income taxes
Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals

6. Significant income statement items
Revenues stood at 39,123 M € (2006: 39,434 M €), supported by higher commercial aircraft
deliveries at Airbus (453 units versus 434 compared to the previous year), as well as increased

910.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

volumes at Eurocopter and EADS Astrium. Despite an unfavourable US Dollar impact and adecrease in A400M revenue recognition Group revenues remained roughly stable in comparison
with the previous year. EADS achieved 56 percent of its revenues outside Europe due to strong
contributions from North America (20 percent), Asia-Pacific (23 percent) and other regions (13percent).
The Gross Margin decreases by -391 M € to 4,321 M € compared to 4,712 M € in 2006. Thisdecrease mainly results from MTA and Airbus (in particular due to the negative impact of theestimated level of charges resulting from the revised delivery schedule for the A400M, accrued“Power 8” restructuring charges and A350 XWB charges) whereas Sogerma and Astrium records
an increased level of gross margin.
Research and development expenses of -2,608 M € (2006: -2,458 M €) mainly increase for the
Airbus A350XWB.
Other income decreases by -64 M € to 233 M €, mainly due to the non-recurring gain of 111 M €resulting from the sale of LFK GmbH and TDW GmbH to MBDA Group accounted for in 2006. In
2007, other income includes among others gains from the sale of land and buildings.
Share of profit from associates under the equity method and other income frominvestments of 296 M € (2006: 189 M €) is mainly influenced by the result of Dassault Aviation of
194 M € (2006: 130 M €). The Dassault Aviation Group reported for the year 2007 a net income of
382 M € of which EADS recognised an amount of 177 M € according to its share of 46.3%. The
EADS 2007 income from the participation of Dassault Aviation includes positive IFRS catch up
adjustments amounting to 17 M € (2006: 0 M €). Additionally in 2007, the sale of EADS’ interest in
Embraer resulted in a non-recurring gain of 46 M €.
Net finance costs amount to -737 M € (2006: -244 M €) including the unwinding of the discounts
on A380, A350 and Power8 provisions under IFRS principles and negative exchange effects in
Airbus division.
An income tax benefit of +333 M € (2006: +81 M €) results in an effective income tax rate of 43%.
It was impacted by a positive tax rate differential from countries with a low income tax rate andDassault result partly compensated by tax rate changes in Germany and UK, effective in 2008,
which led to an expense, due to revaluation of net deferred tax assets.

7. Significant balance sheet items
Non-current assets
Intangible assets of 10,832 M € (prior year-end: 10,855 M €) include 9,519 M € (prior year-end:
9,565 M €) of Goodwill. It mainly stems from Airbus (6,374 M €), Defence & Security (2,431 M €),Astrium (574 M €) and Eurocopter (111 M €). The related annual impairment tests, which were
performed at the end of the year, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of -392 M €, property, plant and equipment decreaseby -434 M € to 13,489 M € (prior year-end: 14,315 M €), including leased assets of 1,319 M €(prior year-end: 1,992 M €). Property, plant and equipment comprises “Investment property”
amounting to 96 M € (prior year-end: 137 M €).
Investments in associates under the equity method of 2,238 M € (prior year-end: 2,095 M €)increase due to the change in the equity investment in Dassault Aviation, amounting to 2,121 M €(prior year-end: 1,985 M €).
Other investments and other long-term financial assets of 1,553 M € (prior year-end: 1,666 M€) are allocated to Airbus in the amount of 1,013 M € (prior year-end: 1,012 M €), mainly

10

10.03.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

concerning the non-current portion of aircraft financing activities. Other investments decrease dueto 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 -688 M € to 3,543 M € (prior year-end: 4,231 M€) is mainly caused by the variation of the non-current portion of fair values of derivative financial
instruments (-795 M €).
Deferred tax assets of 2,705 M € (prior year-end: 2,624 M €) are presented as non-current assets
as required by IAS 1.
Non-current securities increase by +1,397 M € to 2,691 M € (prior year-end: 1,294 M €) due to ahigher level of purchases of medium-term securities.
The fair values of derivative financial instruments are included in non-current other assets with
an amount of 2,440 M € (prior year-end: 3,235 M €), in current other assets (2,955 M €, prior yearend: 2,032 M €), in other non-current liabilities (258 M €, prior year-end: 152 M €) and in othercurrent liabilities (36 M €, prior year-end: 79 M €) which corresponds to a total net fair value of
5,101 M € (prior year-end: 5,036 M €). The volume of hedged US dollar-contracts increases from45.1 bn US dollar as at December 31, 2006 to 51.3 bn US dollar as at December 31, 2007. The
US dollar exchange rate became less favourable (USD / € spot rate of 1.47 at December 31, 2007
vs. 1.32 at December 31, 2006). The average US dollar hedge rate for the hedge portfolio of theGroup changed from 1.16 as at December 31, 2006 to 1.26 as at December 31, 2007 (US dollar /€ rate respectively).

Current assets
Inventories of 18,906 M € (prior year-end: 16,892 M €) increase by +2,014 M € in all divisions.
This is mainly driven by Airbus (due to to a higher level of unfinished goods and services (+485 M€) and advance payments made (+416 M €)), an increase in Eurocopter (+488 M €) due to a rampup of commercialized programs (Ecureuil, SuperPuma and EC 145) and governmental programs,
a higher level of advance payments made at Defence & Security (+181 M €) and a higher work inprogress at Astrium (+135 M €), boosted by the service and satellite business. At MTA, an amountof -62 M € of inventories was written off following a new obsolescence assessment on slow
moving inventory.
Other current assets include “Current portion of other long-term financial assets”, “Current otherassets”, “Current tax assets” and “Current prepaid expenses”. The increase of +1,168 M € to 5,713
M € (prior year-end: 4,545 M €) comprises among others an increase of +923 M € in positive fairvalues of derivative financial instruments.
Cash and cash equivalents decrease from 8,143 M € to 7,549 M € (see also note 8 “Significant
cash flow items”).

Total equity
Equity attributable to equity holders of the parent (including purchased treasury shares) amounts
to 13,090 M € (prior year-end: 13,015 M €). The increase is mainly due to income and expense
recognised in equity of +78 M €, primarily resulting from positive effects from changes in fairvalues of derivative financial instruments and changes in actuarial gains and losses (please refer
to “non-current provisions”) partly compensated by the loss for the period. A cash distribution toshareholders leads to a reduction in equity.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

Minority interests decrease to 85 M € (prior year-end: 137 M €). Due to the change in the
proportional consolidation of MBDA from 50% to 37.5%, minority interests are no longer included(2006: 94 M € less 26 M € related to actuarial gains and losses included in total recognised
income and expense).

Non-current liabilities
Non-current provisions of 8,055 M € (prior year-end retrospectively changed: 8,911 M €)comprise the non-current portion of pension provisions with a decrease of -1,220 M € to 4,382 M €(prior year-end: 5,602 M €). Compared with year-end 2006, the assumed discount rate in Eurocountries for the calculation of pension provisions increases from 4.5% to 5.25% in France and5.35% in Germany, thus leading to lower actuarial losses. Since EADS applies the equity
approach for actuarial gains and losses, the effect is considered in non-current pension provisions
with a corresponding net of tax increase in equity (please refer to “Equity”). The assumptions of
BAe Systems’ pension schemes are also reflected in a decrease of actuarial losses. In 2007,
EADS implemented a Contractual Trust Arrangement (CTA). On October 28th, 2007, some EADS
companies contributed in total 310 M € in cash and 190 M € in securities as an initial funding of the
CTA. The assets held under the CTA are treated as plan assets according to IAS 19.
Moreover, other provisions are included in non-current provisions, which increase by +364 M € to
3,673 M €. A significant part of the increase is dedicated to the provision for the A350XWB and thenon-current portion of the restructuring provisions for the “Power 8” program. Other provisions
include among others aircraft financing activities. A reclassification to “Other non-current liabilities”
is made for those obligations for which an agreement is signed.
Long-term financing liabilities of 3,090 M € (prior year-end: 3,561 M €), excluding foreignexchange-rate effects of -146 M €, decrease by -325 M € in particular due to Airbus.
Other non-current liabilities comprise “Non-current other liabilities” and “Non-current deferredincome” and increase in total by +2,048 M € to 14,880 M € (prior year-end retrospectively
changed: 12,832 M €). They mainly include non-current customer advance payments received of
8,420 M € (prior year-end: 6,308 M €) and the non-current portion of European Government
refundable advances amounting to 4,854 M € (prior year-end: 5,029 M €). The main part of noncurrent deferred income of 753 M € (prior year-end: 1,110 M €) is linked to deferred revenues ofAirbus and ATR according to Residual Value Guarantee clauses. The remaining portfolio, which isincluded in non-current deferred income, is depreciated over the guaranteed period. Moreover,obligations from signed agreements for settlement or buy-out charges in connection with the A380
and A350 programs have been reclassified from “Non-current other provisions”.

Current liabilities
Current provisions increase by +826 M € to 4,378 M € (prior year-end retrospectively changed:
3,552 M €) and comprise the current portions of pensions (286 M €) and other provisions (4,092 M€). The build-up mainly reflects an increase in provisions for loss-making contracts dedicated to
the A400M program (+1,028 M €) and an increase due to the current portion of restructuringprovisions for the “Power 8” program (+315 M €). This is partly compensated by a decrease in
miscellaneous other provisions (-776 M €), including a reclassification to “Other current liabilities”
regarding signed agreements of settlement charges in connection with the A380 program.
Short-term financing liabilities of 1,724 M € (prior year-end: 2,196 M €) decrease by -472 M €.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

Trade liabilities decrease by -63 M € to 7,398 M € (prior year-end: 7,461 M €), mainly comingfrom Airbus (-178 M €) and Military Transport Aircraft (-133 M €), partly offset by Eurocopter (+248
M €).
Other current liabilities include “Current other liabilities” and “Current deferred income”. They
increase by +2,664 M € to 20,389 M € (prior year-end retrospectively changed: 17,725 M €). Other
current liabilities mainly comprise current customer advance payments of 16,214 M € (prior yearend: 14,172 M €). Obligations from signed agreements in connection with the A380 program havebeen reclassified from “Current provisions”.
8. Significant cash flow items
Cash provided by operating activities increases by +1,639 M € to 5,037 M € (2006: 3,398 M €).
Gross cash flow from operations (excluding working capital change) with 3,862 M € exceeds prioryear’s level (2006: 3,541 M €) as well as changes in other operating assets and liabilities (working
capital change) which amount to 1,175 M € (2006: -143 M €).
Cash used for investing activities amounts to -4,743 M € (cash provided by investing activities
in 2006: 1,988 M €). This comprises purchases of intangible assets and property, plant andequipment, namely in Airbus and Astrium, customer financing activities of Airbus and a net
purchase of securities of -2,641 M €. The change compared to previous year mainly results fromsecurities (-5,998 M €) and less positive customer financing (-1,099 M €) offset by lower purchaseof property, plant and equipment (+680 M €), namely in Airbus.
Cash used for financing activities improves by +1,801 M € to -771 M € (2006: -2,572 M €). In
2007 the outflow mainly comprises the net repayment of financing liabilities whereas last year the
repayment of the liability for puttable instruments to BAE Systems (-2,879 M €) was included.
9. Number of shares
The total number of shares outstanding is 804,209,475 and 802,130,993 as of December 31, 2007
and 2006, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the year 2007, the number of treasury shares held by EADS decreased from 13,800,531 asof December 31, 2006 to 9,804,998 as of December 31, 2007.
613,519 new shares (in 2006: 4,845,364 shares) were issued as a result of the exercise of stock
options in compliance with the implemented stock option plans. Under the 2007 Employee Stock
Ownership Plan, 2,037,835 shares were issued in May 2007. In 2006, no Employee Stock
Ownership Plan was issued.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

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 to
December 31,
2007

January 1 to
December 31,
2006

Net loss/income attributable to equity holders of the parent-446 M €99 M €

Weighted average number of ordinary shares outstanding

803,128,221

800,185,164-0.56€

0.12 €

Basic earnings per share

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 2007 exceeded the exercise price of the stock options under the 1st, 2nd, 4th and 5thstock option plans (in 2006: the 1st, 2nd, 3rd, 4th, 5th and 6th stock option plans) initiated by theGroup, the inclusion of the related potential ordinary shares increases the weighted average
number of shares. 2,420,180 shares (2006: 4,130,499 shares) are considered dilutive according to
IAS 33.
January 1 to
December 31,
2007

January 1 to
December 31,
2006

Net loss/income attributable to equity holders of the parent-446 M €99 M €

Weighted average number of ordinary shares outstanding(diluted)

805,548,401

804,315,663-0.55 €

0.12 €

Diluted earnings per share

11. Related party transactions
The Group has entered into various transactions with related companies in 2007 and 2006 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, Daimler, Lagardère and SEPI (Spanish State). Except for the transactions with
the French State, such transactions are not considered material to the Group either individually orin the aggregate. The transactions with the French State include mainly sales from the Eurocopter,
Defence & Security and Astrium divisions.
In 2007, Lagardère and the French State granted to the Group their received dividend for 2006 in
the amount of 29 M € as an interest free loan.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2007

12. Number of employees
The number of employees at December 31, 2007 is 116,493 as compared to 116,805 at
December 31, 2006.
13. Subsequent events
On February 29, 2008, the U.S. Air Force awarded Northrop Grumman Corp., USA a contract forthe development and procurement of up to 179 tanker aircraft for approximately 40 bn US$. Thisdollar amount includes both priced options for 80 aircraft and unpriced options for another 99 as
well as estimated support costs (currently unpriced). The initial contract for the newly named KC45A is for the system design and development of four test aircraft for 1.5 bn US$. The Air Forcewill be funding this initial tranche over the next three years. EADS North America Inc., USA is thepartner to Northrop Grumman Corp., USA on the new tanker contract, with responsibility forassembling airframes and providing completed flight-qualified aircraft and refueling sub-systems.
The Military Transport Aircraft Division (MTAD) is responsible within the EADS Group for all
military derivative programmes based on Airbus platforms, including tankers. Starting in 2011,
production of KC-45A airframes will be performed at Airbus’ new Mobile, Alabama aerospacecentre which will house the Airbus KC-45A final assembly facility. In addition, EADS Group andAirbus intend to transfer the final assembly of Airbus A330 civilian freighters there.
With regard to the plan to sell the Airbus sites in Méaulte, St. Nazaire Ville, Nordenham, Varel,
Laupheim and Filton and the EADS site in Augsburg negotiations with selected preferred bidders(Latécoère in France, GKN in the UK and MT Aerospace in Germany) are ongoing. So far, binding
agreements have not yet been reached. Furthermore, the potential divestment of the sites is still
subject to EADS’ Board of Directors decision.

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