EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

9m 2007 Report
Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the first nine months 2007
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Income Statements for the third quarter of 2007 and2006………………………………………………………………………………………................................3
Unaudited Condensed IFRS Consolidated Balance Sheets….…..………….……………...……...…4
Unaudited Condensed IFRS Consolidated Cash Flow Statements……………....…...…………..…5
Unaudited Condensed IFRS Consolidated Statements of Recognised
Income and Expense..…………………………………………………….…………………………………..6
Additional Information: Unaudited Condensed IFRS Consolidated Reconciliation of Movementin Equity attributable to equity holders of the parent and Minority interests…..…………….....…7
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at September 30, 2007…… ………………………………………….…………...…………..….....…....7
1. The Company……………………………………………………………………………………..…..7
2. Accounting policies……………….………………………………………………..…………….....7
3. Changes in the consolidation perimeter of EADS…………………………....…….……….....9
4. Segment information………………………………..…………..…………………………..……..10
5. EBIT pre-goodwill impairment and exceptionals…..……..…………………………………..11
6. Significant income statement items………….…………………..………….………..……......11
7. Significant balance sheet items…………………...…………………………………...……......12
8. Significant cash flow items……………………………………………………..…...…..……….14
9. Number of shares………………………………………………………..........................….....…15
10. Earnings per share……………………………………..……………….………...………,……….15
11. Related party transactions ………………..…………………...…….……………………..……16
12. Number of employees ……………………………….……………….……………..........………16
13. Subsequent events ……………………………….……………………………..…….………..…16

1

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

Unaudited Condensed IFRS Consolidated Income Statements

January 1 September 30, 2007
Revenues*)
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expensesM€
27,767-24,9962,771

January 1 September 30, 2006

%
100
-90
10

M€
27,469-23,065
4,404-1,681-6-1,906
197

Deviation

%

M€

%

100
-84
16

298
-1,931-1,6331
8-37-1,694

-6

13

-1

-7

-1,691

-6

-215

13

1

225

1

-28

-12

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

211

1

137

0

74

54

-408
386
-560
-277
-451
173
-686

-1
1
-2
-1
-2
1
-2

1,381
341
-419
-73
-151
-371
859

5
1
-2
0
-1
-1
3

-1,789
45
-141
-204
-300
544
-1,545

-130
13
34
279
199
-147
-180

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

-705
19

-2
0

867
-8

3
0

-1,572
27

-181
-338

Earnings per share
*)
Basic
*)
Diluted

€

€

€

-0.88
-0.88

1.08
1.08

-1.96
-1.96

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

2

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

Unaudited Condensed IFRS Consolidated Income Statements for the third
quarter 2007 and 2006

July 1 September 30, 2007
Revenues
Cost of sales *)Gross margin
Selling, administrative & otherexpenses
Research and development
expenses
Other income

M€
9,274
-9,018256

July 1 September 30, 2006

%
100
-97
3

M€
8,489
-7,713
776

-490

-5

-638
65

Deviation

%

M€

%

100
-91
9

785
-1,305
-520

9
17
-67

-562

-7

72

-13

-7

-552

-6

-86

16

0

29

0

36

124

Share of profit from associates andother income from investments
Loss before finance costs andincome taxes
Interest income
Interest expenses
Other financial result
Finance costs*)
Income taxes
Loss for the period*)

68

1

68

1

0

0

-739
156
-226
-169
-239
207
-771

-8
2
-2
-2
-2
2
-8

-241
123
-145
16
-6
69
-178

-3
1
-1
0
0
1
-2

-498
33
-81
-185
-233
138
-593

207
27
56
-1,156
3,883
200
333

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

-776
5

-8
0

-189
11

-2
0

-587
-6

311
-55

Earnings per share
Basic *)
Diluted *)

€

€

€

-0.97
-0.96

-0.24
-0.23

-0.73
-0.73

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

3

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

Unaudited Condensed IFRS Consolidated Balance Sheets
September 30, 2007
M€%

December 31, 2006
M€%

10,845
13,70415
19

10,855
14,315

15
20

-10
-611

0
-4

2,161

3

2,095

3

66

3

1,651

2

1,666

2

-15

-1

3,697
2,698
2,933
37,689

5
4
4
52

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

6
4
2
52

-534
74
1,639
609

-13
3
127
2

19,673
4,448
5,206
925
5,392
35,644

27
6
7
1
7
48

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

23
7
6
1
11
48

2,781
-404
661
376
-2,751
663

16
-8
15
68
-34
2

0

0

76

0

-76

-100

Total assets

73,333100

72,137

100

1,196

2

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

814
6,948

1
9

816
7,593

1
11

-2
-645

0
-8

5,003

7

4,955

7

48

1

-251
12,514147
12,661

0
17
0
17

-349
13,015
137
13,152

0
19
0
19

98
-501
10
-491

-28
-4
7
-4

9,058
3,309
2,511
13,222
28,100

12
5
3
18
38

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

13
5
3
17
38

-5
-252
46
542
331

0
-7
2
4
1

4,613
1,427
6,784
214
19,53432,572

7
2
9
0
27
45

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

5
3
10
0
25
43

982
-769
-677
-4
1,888
1,420

27
-35
-9
-2
11
5

0

0

64

0

-64

-100

60,67273,33383
100

58,985
72,137

81
100

1,687
1,196

3
2

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

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

4

Deviation
M€%

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

Unaudited Condensed IFRS Consolidated Cash Flow Statements(Loss) profit for the period attributable to equity holders of the1)parent (Net loss / income)
Profit (loss) attributable to minority interests
Adjustments to reconcile (loss) profit for the period (net loss /income) to cash provided by operating activities
Depreciation and amortization
Valuation adjustments
1)
Deferred tax expense (income)Change in income tax assets, income tax liabilities and provisions
for actual income tax
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 sale2)
Change of securities
Cash (used for) provided by investing activities2)
Change in long-term and short-term financial 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) provided by financing activities
Effect of foreign exchange rate changes and other valuation
adjustments on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents2)
Cash and cash equivalents at beginning of period2)
Cash and cash equivalents at end of period2)

January 1 September 30, 2007
M€

January 1 September 30, 2006
M€

-705
19

867
-8

1,199
675
-76

1,183
163
143

9
-123
-142
2,175
-1,8791,152-1,351
136
0
34

141
-271
-107
424
-1,754781-1,758
47
-72
81

-526

-169

407
39
-29
322
-155
104

589
46
-146
29
-9
54

26
-2,013-3,006
-784
-97
-14
0
43
2
-850

374
2,038
1,104
886
-520
0
-129
85
-18
304

-47
-2,751

-13
2,176

8,143
5,392

5,386
7,562

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

5

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

As of September 30, 2007, EADS’ cash position (stated as cash and cash equivalents in theunaudited consolidated cash flow statements) includes 700 M € (597 M € as of December 31, 2006),
which represent EADS’ share in MBDA’s cash and cash equivalents deposited at other shareholders.
These funds are available for EADS upon demand.

Unaudited Condensed IFRS Consolidated Statements of Recognised Income
and Expense
January 1 September 30,
2007

January 1 September 30,
2006

Foreign currency translation differences for foreign operations

-153

-215

Changes in fair value of cash flow hedges

121

1,140

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

in M €-68

86

Changes in actuarial gains and losses

400

-33

Others-450

Tax on income and expense recognised directly in equity

-39

-401

Income and expense recognised directly in equity

216

577

(Loss) profit for the period *)

-686

859

Total recognised income and expense of the period

-470

1,436

-493
23
-470

1,442
-6
1,436

*)

Attributable to:Equity holders of the parent
Minority interests
Total recognised income and expense of the period*) For retrospective adjustments concerning the first nine months 2006 due to the revised IAS 19 “Employee benefits” pleaserefer to Note 2 “Accounting policies”.

6

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 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
13,726in M €
Balance at January 1, 2006

Minority
interests

total
176

13,902

-672

-23

-695

Balance at January 1, 2006, adjusted

13,054153

13,207*)

Total recognised income and expense

1,442

-6

1,436

Cash distribution to shareholders

-520

-1

-521

Capital Increase

85

0

85

Disposals of treasury shares

-18

0

-18

Others31

536

Balance at September 30, 2006

14,074151

14,225

Balance at January 1, 2007

13,015

137

13,152

Total recognised income and expense

-493

23

-470

Cash distribution to shareholders

-97

-14

-111

Capital Increase

43

1

44

Purchases of treasury shares

2

0

2

Others44044

12,514147

12,661Retrospective adjustments*)

Balance at September 30, 2007*) For retrospective adjustments as of January 1, 2006 and concerning the first nine months 2006 please refer to Note 2“Accounting policies”.

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at September 30, 2007
1. The Company
The accompanying Condensed Interim Consolidated Financial Statements (unaudited) present theoperations of European Aeronautic Defence and Space Company EADS N.V. and its subsidiaries(“EADS” or the “Group”), a Dutch public limited liability company (Naamloze Vennootschap) legallyseated in Amsterdam (Le Carré, Beechavenue 130-132, 1119 PR, Schiphol-Rijk, The
Netherlands), and are prepared and reported in Euros (“€”). EADS’ core business is the
manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the first nine months 2007 were authorized for issue by EADS’ Board of
Directors on November 7, 2007.
2. Accounting policies
These Condensed Interim Consolidated Financial Statements have been prepared in accordancewith IAS 34 Interim Financial Reporting as adopted by the European Union (EU). EADS’
Consolidated Financial Statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”), adopted by the International Accounting Standards Board (“IASB”)

7

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

as endorsed by the EU as at September 30, 2007. They comprise (i) IFRS, (ii) International
Accounting Standards (“IAS”) and (iii) Interpretations originated by the International Financial
Reporting Interpretations Committee (“IFRIC”) or former Standards Interpretation Committee(“SIC”).
As of January 1, 2007, the following amendment to existing Standards, new Standard and newInterpretations became mandatory to EADS. The corresponding announcements have beenreleased by the IASB throughout 2005 and 2006:
EADS applies new IFRS 7 “Financial Instruments: Disclosures” and the complementary
amendment to IAS 1 “Presentation of Financial Statements” regarding “Capital Disclosures”(August 2005). Furthermore, EADS applies new Interpretations IFRIC 7 “Applying the Restatement
Approach under IAS 29”, IFRIC 8 ”Scope of IFRS 2”, IFRIC 9 “Reassessment of Embedded
Derivatives” and IFRIC 10 “Interim Financial Reporting and Impairment”.
IFRS 7 Financial Instruments: Disclosures
The application of IFRS 7 will lead to disclosures in the annual financial statements regarding thesignificance of EADS’ different financial instruments. Many of these requirements have previously
been covered by IAS 32. In addition, the Standard requires the disclosure of qualitative andquantitative information about an entity’s risk exposure arising from these financial instruments,
including sensitivity analyses of market risks.
Amendment to IAS 1 Presentation of Financial Statements – Capital Disclosure
The IAS 1 amendment introduces new qualitative and quantitative annual disclosure requirements
regarding managing capital in order to provide useful information for assessing an entity’s risk
profile as well as its ability to withstand unexpected adverse events. The requirements include
information about an entity’s objectives, policies and processes for managing capital as well as
quantitative data about what it regards as capital.
The application of the IAS 1 amendment and new IFRS 7 will lead to additional disclosures in
EADS’ annual Consolidated Financial Statements prepared for year end 2007. However, neither
the new Standard, nor the amendment, nor the new Interpretations mentioned above have a major
impact on these Condensed Interim Consolidated Financial Statements.
Amendment to IAS 19 Employee Benefits
With the application of amended IAS 19 “Employee Benefits” in 2006, EADS changed its
accounting policy regarding the recognition of actuarial gains and losses which led to retrospective
adjustments in the Consolidated Financial Statements for the prior period presented:
The amendment to IAS 19 introduced the recognition of actuarial gains and losses outside theincome statement within retained earnings as a third option (“Equity Option”). As of January 1,
2006, EADS applied the newly introduced alternative and changed its accounting policy regarding
the recognition of actuarial gains and losses arising from defined benefit plans for its 2006
Consolidated Financial Statements from the formerly applied corridor approach. Variations ofactuarial gains and losses are now directly recognised in equity in the period in which they occur.
Prior period figures presented have been adjusted accordingly as required under IAS 8“Accounting Policies, Changes in Accounting Estimates and Errors” (please refer to Note 7“Significant balance sheet items”).
Compared to the corridor approach, the accounting of actuarial gains and losses as at January 1,
2006 led to an increase in pension provision of 1,118 M € and in deferred tax assets of 423 M €and to a decrease in equity of 672 M € and in minority interests of 23 M €.

807.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

The 2006 change in the accounting policy for the recognition of actuarial gains and losses from thecorridor to the equity approach implied the reversal of actuarial gains and losses under the corridor
approach accounted for as expenses. In the first nine months 2006, the application of the equity
approach led to positive impacts of 33 M € to EBIT and 19 M € to Net Income. This impact on the
EBIT has been allocated to Airbus (+9 M €), Eurocopter (+6 M €), Defence & Security (+12 M €),Astrium (+3 M €) and Headquarters (+3 M €).
Changes in actuarial gains and losses in interim periods are only recognized, if there is asignificant change in actuarial assumptions applied for the calculation of pension provisions.
Since 2006 year-end closing, EADS accounts for its participation in BAE Systems’ UK pension
plans by applying defined benefit accounting based on information provided by BAE Systems in
December 2006. Before that date, the information provided by BAE Systems was judged not to be
sufficient to identify EADS’ share in the UK pension schemes for accounting purposes.
Consequently in previous years, EADS had expensed the contributions made to the pension
schemes as if the plans were defined contribution plans.
The new 2006 information basis resulted in a change in accounting estimates as at 2006 year-end
closing and was accounted for accordingly under IAS 8 “Accounting Policies, Changes in
Accounting Estimates and Errors”.
The inclusion of EADS’ share in BAE Systems’ pension schemes as of December 31, 2006, withthe application of the newly introduced equity approach contributed 897 M € to the total increase inpension provisions, 44 M € to the increase of deferred tax assets, 827 M € to the decrease inequity and 26 M € to the decrease in minority interests.
Cash and cash equivalents
For 2006 year-end Consolidated Financial Statements EADS restricted its interpretation of the
cash equivalents’ definition as provided in IAS 7 “Cash Flow Statements” to better reflect its shortterm investment strategy. IAS 7 states that “cash equivalents are held for short-term cash
commitments […], must be readily convertible to a known amount of cash and be subject to an
insignificant risk of changes in value. Therefore, an investment normally qualifies as a cash
equivalent only when it has a short-term maturity of, say, three months or less from the date ofacquisition.” EADS now strictly limits its cash equivalents to such investments having a maturity of
three months or less from acquisition date. Prior periods have been adjusted accordingly as
required under IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”.
Besides consequential changes as mentioned above the accounting policies used in the
preparation of the Condensed Interim Consolidated Financial Statements are consistent with thoseused for the annual Consolidated Financial Statements for the year ended December 31, 2006,
which are disclosed as an integral part of the Group’s Annual Report 2006. The annual
Consolidated Financial Statements were authorised for issue by EADS’ Board of Directors on
March 8, 2007.
3. Changes in the consolidation perimeter of EADSIn January 2007, EADS transferred its naval business to the Atlas Elektronik group. In connection
with this contribution, EADS increased its percentage of ownership from 40% to 49%. Atlas
Elektronik group is proportionately consolidated.
Following an agreement dated January 10, 2007, EADS sold the remaining 60% shares ofSogerma Services as well as the shares of its subsidiaries Barfield and Sogerma Tunisia.
Apart from these transactions, other acquisitions or disposals by the Group that occurred in thefirst nine months of 2007 are not material.

9

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

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.

in M €

AirbusMilitary
Transport
AircraftEurocopter

Defence &Security

Astrium

Other
HQ/ Conso.
Businesses

Consolidated

Nine months ended September 30, 2007
Revenues

18,856

1,014

2,599

3,414

2,191

877

-1,184

27,767

Research anddevelopment
expenses-1,586

-13

-61

-121

-52

-5

-68

-1,906

-677

-144

113

133

71

69

92

-343

18,570

1,699

2,364

3,553

1,960

922

-1,59927,469-1,413

-10

-54

-130

-49

-4

-31

-1,691

1,150

22

131

160

48

-187

102

1,426

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

Nine months ended September 30, 2006
Revenues
Research anddevelopment
expenses
EBIT pre-goodwill
imp. and exceptionals(see definition below)*)*) For retrospective adjustments concerning the first nine months 2006 please refer to Note 2 “Accounting policies”.

10

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

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 €):January 1September 30,
2007

January 1September 30,
2006

-408

1,381

Disposal of Goodwill

120

Fair value adjustments

53

45

-343

1,426

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

EBIT pre-goodwill impairment and exceptionals*)*) For retrospective adjustments concerning the first nine months 2006 please refer to Note 2 “Accounting policies”.

6. Significant income statement items
Revenues of 27,767 M € (first nine months 2006: 27,469 M €) increase by 1% mainly due toAirbus, Eurocopter and Astrium. This was partly offset by negative developments at MTA, Defence& Security and Other Businesses.
The Gross Margin decreases by -1,633 M € to 2,771 M € compared to 4,404 M € in the first ninemonths 2006. This decrease mainly results from Airbus (in particular due to the negative impact of
the estimated level of charges resulting from the revised delivery schedule for the A400M, accrued“Power 8” restructuring charges and A350 XWB charges) and MTA whereas Astrium records anincreased level of gross margin.
Research and development expenses of -1,906 M € (first nine months 2006: -1,691 M €) mainly
increase because of aircraft programs at Airbus. With A380 development moving from basic tocontinuing development, EADS capitalized no further development costs for A380 in the first ninemonths of 2007 (in the first nine months 2006: 194 M €).
Other income decreases by -28 M € to 197 M €, mainly due to the non-recurring gain of 106 M €resulting from the sale of LFK GmbH and TDW GmbH to MBDA Group accounted for in the firstnine months 2006. In the first nine months 2007, other income includes among others gains fromthe sale of land and buildings.
Share of profit from associates under the equity method and other income frominvestments of 211 M € (first nine months 2006: 137 M €) is mainly influenced by the result ofDassault Aviation of 140 M € (first nine months 2006: 105 M €). The result in the first nine months
2007 of Dassault Aviation includes positive 2006 IFRS catch up adjustments amounting to 19 M €(first nine months 2006: 0 M €). Additionally in the first nine months of 2007, the sale of EADS’interest in Embraer resulted in a non-recurring gain of 46 M €.

11

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

Net finance costs amount to -451 M € (first nine months 2006: -151 M €) including the update of
the present value of A380 and A350 provisions which are discounted under IFRS principles andnegative exchange effects in Airbus division.
An income tax benefit of +173 M € (first nine months 2006: a charge of -371 M €) corresponds toan effective income tax rate of 20.1 %. Tax rate changes in Germany and UK, effective in 2008,
led to an expense of 85 M €, due to revaluation of net deferred tax assets.

7. Significant balance sheet items
Non-current assets
Intangible assets of 10,845 M € (prior year-end: 10,855 M €) include 9,561 M € (prior year-end:
9,565 M €) of Goodwill. It mainly stems from Airbus (6,374 M €), Defence & Security (2,465 M €),Astrium (583 M €) and Eurocopter (111 M €). The related annual impairment tests, which were
performed at the end of the prior year, did not lead to any impairment charges. Considering thatthe increasing weakness of the USD / € rate during the first nine months 2007 constituted a
triggering event, EADS has reassessed the value of the Airbus goodwill by performing an
impairment test as at September 30, 2007. On the basis of the current operating plan assumptions
and figures (unchanged from 2006), no impairment of the Airbus Goodwill is concluded at the endof the third quarter 2007. The annual Airbus Goodwill impairment test will be performed at yearend 2007, based on the then available information. This will take into account, among others, thethen prevailing USD foreign exchange rates, an updated Airbus operating plan, the Power 8
expected achievements as well as impacts from potential further management actions.
Eliminating foreign exchange-rate effects of -201 M €, property, plant and equipment decreaseby -410 M € to 13,704 M € (prior year-end: 14,315 M €), including leased assets of 1,424 M €(prior year-end: 1,992 M €). Property, plant and equipment comprises “Investment property”
amounting to 86 M € (prior year-end: 137 M €).
Investments in associates under the equity method of 2,161 M € (prior year-end: 2,095 M €)increase due to the change in the equity investment in Dassault Aviation, amounting to 2,060 M €(prior year-end: 1,985 M €).
Other investments and long-term financial assets of 1,651 M € (prior year-end: 1,666 M €) areallocated to Airbus in the amount of 1,126 M € (prior year-end: 1,012 M €), mainly concerning thenon-current portion of aircraft financing activities. The increase at Airbus is more thancompensated by the sale of Embraer shares (-123 M €).
Non-current other assets mainly comprise “Non-current derivative financial instruments” and“Non-current prepaid expenses”. The decrease by -534 M € to 3,697 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 (-524 M €).
Deferred tax assets of 2,698 M € (prior year-end: 2,624 M €) are presented as non-current assets
as required by IAS 1.
Non-current securities increase by +1,639 M € to 2,933 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 2,711 M € (prior year-end: 3,235 M €), in current other assets (2,570 M €, prior yearend: 2,007 M €), in non-current provisions (209 M €, prior year-end: 152 M €) and in current
provisions (74 M €, prior year-end: 79 M €) which corresponds to a total net fair value of 4,998 M €(prior year-end: 5,011 M €). The volume of hedged US dollar-contracts increases from 45.1 bn US

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07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

dollar as at December 31, 2006 to 48.4 bn US dollar as at September 30, 2007. The US dollar
exchange rate became less favourable (USD / € spot rate of 1.42 at September 30, 2007 vs. 1.32
at December 31, 2006). The average US dollar hedge rate for the hedge portfolio of the Groupchanged from 1.16 as at December 31, 2006 to 1.22 as at September 30, 2007 (US dollar / € rate
respectively).

Current assets
Inventories of 19,673 M € (prior year-end: 16,892 M €) increase by 2,781 M € in all divisions. Thisis mainly driven by a higher level of unfinished goods and services, mostly for Airbus (+545 M € aswell as advance payments made with an amount of +339 M €), an increase in Eurocopter (+677 M€) due to a ramp-up of all commercialized programs (mainly SuperPuma) and delays ingovernmental programs, a higher level of unfinished goods and services at Defence & Security(+396 M €) and a higher work in progress at Astrium (+386 M €), boosted by all Business Units. At
MTA, an amount of -65 M € of inventories was written off following a new obsolescenceassessment on slow moving inventory.
Other current assets include “Current portion of long-term financial assets”, “Current otherassets”, “Current tax assets” and “Current prepaid expenses”. The increase of +661 M € to 5,206
M € (prior year-end: 4,545 M €) comprises among others an increase of +563 M € in positive fairvalues of derivative financial instruments.
Cash and cash equivalents decrease from 8,143 M € to 5,392 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 12,514 M € (prior year-end: 13,015 M €). The decrease is mainly due to income and expense
recognised in equity of -493 M €, primarily resulting from the loss for the period. Positive effects
from changes in fair values of derivative financial instruments and changes in actuarial gains andlosses (please refer to “non-current provisions”) partly compensate this decrease. A cash
distribution to shareholders leads to a reduction in equity. The January 1, 2006 figure had beenadjusted retrospectively by -672 M € because of the application of the Equity option of IAS 19 as
amended in 2006 (please refer to Note 2 “Accounting policies”).
Minority interests increase to 147 M € (prior year-end: 137 M €) due to the allocation ofrecognised income and expense.

Non-current liabilities
Non-current provisions of 9,058 M € (prior year-end: 9,063 M €) comprise the non-current
portion of pension provisions with a decrease of -286 M € to 5,316 M € (prior year-end: 5,602 M €).
Compared with year-end 2006, the assumed discount rate in Euro-countries for the calculation ofpension provisions increases from 4.5 % to 5.2 %, thus leading to a decrease in the net actuarial
losses of -400 M €. Since EADS applies the equity approach for actuarial gains and losses, theeffect is considered in non-current pension provisions with a corresponding net of tax increase inequity (please refer to Note 2 “Accounting policies” and “Equity”). Actuarial gains and losses for
the EADS’ share in BAE Systems’ pension schemes have not been adjusted, since not allnecessary information is available.

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07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

Moreover, other provisions are included in non-current provisions, which increase by +281 M € to
3,742 M €. A significant part of the increase is dedicated to the non-current portion of therestructuring provisions for the “Power 8” program. Provisions for derivative financial instruments
according to IAS 39 increased by +57 M € to 209 M €. Other provisions include among others
aircraft financing activities and obligations for settlement and buy-out charges for the A380 andA350 programs. A reclassification to “Other non-current liabilities” is made for those obligations forwhich an agreement is signed.
Long-term financial liabilities of 3,309 M € (prior year-end: 3,561 M €), excluding foreignexchange-rate effects of -98 M €, decrease by -154 M € in particular due to Airbus.
Other non-current liabilities comprise “Non-current other liabilities” and “Non-current deferredincome” and increase in total by +542 M € to 13,222 M € (prior year-end: 12,680 M €). They
mainly include non-current customer advance payments received of 6,620 M € (prior year-end:
6,308 M €) and the non-current portion of European Government refundable advances amounting
to 5,026 M € (prior year-end: 5,029 M €). The main part of non-current deferred income of 822 M €(prior year-end: 1,110 M €) is linked to deferred revenues of Airbus and ATR according to Residual
Value Guarantee clauses. The remaining portfolio, which is included in non-current deferredincome, 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 +982 M € to 4,613 M € (prior year-end: 3,631 M €) and comprisethe current portions of pensions (281 M €) and other provisions (4,332 M €). The build-up mainlyreflects an increase in provisions for loss-making contracts dedicated to the A400M program (+1.3
bn €) and an increase due to the current portion of restructuring provisions for the “Power 8”
program (+258 M €). This is partly compensated by a decrease in miscellaneous other provisions(-589 M €), including a reclassification to “Other current liabilities” regarding signed agreements ofsettlement charges in connection with the A380 program.
The production costs considered for the calculation of the A 380 loss making contract provision
have been updated at September 30, 2007. The assessed margin of A 350 XWB contracts will be
reviewed in the fourth quarter 2007 based on the then technical status of the aircraft definition.
Short-term financial liabilities of 1,427 M € (prior year-end: 2,196 M €) decrease by -769 M €.
Trade liabilities decrease by -677 M € to 6,784 M € (prior year-end: 7,461 M €), mainly comingfrom Airbus (-645 M €), Defence & Security (-173 M €) and Astrium (-65 M €), partly offset by
Eurocopter (+191 M €).
Other current liabilities include “Current other liabilities” and “Current deferred income”. They
increase by +1,888 M € to 19,534 M € (prior year-end: 17,646 M €). Other current liabilities mainlycomprise current customer advance payments of 15,900 M € (prior year-end: 14,172 M €).
Obligations from signed agreements in connection with the A380 program have been reclassified
from “Current provisions”.
8. Significant cash flow items
Cash provided by operating activities increases by +371 M € to 1,152 M € (first nine months
2006: 781 M €). Gross cash flow from operations (excluding working capital change) with 3,031 M€ exceeds prior year’s level (first nine months 2006: 2,535 M €), while changes in other operating

14

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

assets and liabilities (working capital change) amount to -1,879 M € (first nine months 2006: -1,754
M €).
Cash used for investing activities amounts to -3,006 M € (cash provided by investing activities
in the first nine months 2006: 1,104 M €). This comprises purchases of intangible assets andproperty, plant and equipment, namely in Airbus and Astrium, customer financing activities ofAirbus and a net purchase of securities of -2,013 M €.
Cash used for financing activities decreases by -1,154 M € to -850 M € (cash provided byfinancing activities in the first nine months 2006: +304 M €). The outflow mainly contains the net
repayment of financial liabilities and the cash distribution to shareholders.
Since EADS restricted its interpretation of the cash equivalents definition (please refer to Note 2“Accounting policies”), cash and cash equivalents at January 1, 2006 were decreased from 9,546
M € to 5,386 M € and at September 30, 2006 from 9,366 M € to 7,562 M €. The amounts
concerned have been reclassified to securities. Consequently the line “change in securities” for the
first nine months 2006 records an amount of +2,038 M €, compared to -318 M € under theprevious interpretation. Cash provided by investing activities is shown with an amount of 1,104 M€, compared to -1,252 M € before. Instead of an increase of +2,176 M €, cash and cash
equivalents decreased under the previous interpretation by -180 M € during the first nine months
2006.
9. Number of shares
The total number of shares outstanding is 804,017,011 and 801,467,988 as of September 30,
2007 and 2006, respectively. EADS’ shares are exclusively ordinary shares with a par value of
1.00 €.
During the first nine months 2007, the number of treasury shares held by EADS decreased from13,800,531 as of December 31, 2006 to 9,808,480 as of September 30, 2007.
424,537 new shares (in the first nine months 2006: 4,263,405 shares) were issued as a result of
the exercise of stock options in compliance with the implemented stock option plans. Under the2007 Employee Stock Ownership Plan, 2,037,835 shares were issued in May 2007. (In 2006, no
Employee Stock Ownership Plan was issued).
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
September 30,
2007

January 1 to
September 30,
2006

Net loss/income attributable to equity holders of the parent-705 M €867 M €

Weighted average number of ordinary shares outstanding

802,805,702

799,634,560-0.88€

1.08 €

Basic earnings per share15

07.11.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

The effect from applying in the first nine months 2006 the IAS 19 equity approach instead of thepreviously applied corridor approach contributes 0.02 € to basic earnings per share. For further
details please refer to Note 2 “Accounting policies”.

For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. The Group’s only
category of dilutive potential ordinary shares is stock options. Since the average price of EADS
shares during the first nine months 2007 exceeded the exercise price of the stock options underthe 1st, 2nd, 4th and 5th stock option plans (in the first nine months of 2006: the 1st, 2nd, 3rd, 4th, 5th
and 6th stock option plans) initiated by the Group, the inclusion of the related potential ordinary
shares increases the weighted average number of shares. 2,524,149 shares (first nine months
2006: 5,081,257 shares) are considered dilutive according to IAS 33.
January 1 to
September 30,
2007

January 1 to
September 30,
2006

Net loss/income attributable to equity holders of the parent-705 M €867 M €

Weighted average number of ordinary shares outstanding(diluted)

805,329,851

804,715,817-0.88 €

1.08 €

Diluted earnings per share

The effect from applying in the first nine months 2006 the IAS 19 equity approach instead of thepreviously applied corridor approach contributes 0.03 € to diluted earnings per share. For further
details please refer to Note 2 “Accounting policies”.
11. Related party transactions
The Group has entered into various transactions with related companies in the first nine months
2007 and 2006 that have all been carried out in the normal course of business. As is the Group’s
policy, all related party transactions have to be carried out at arm’s length. Transactions withrelated 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 Groupeither individually or in the aggregate. The transactions with the French State include mainly sales
from the Eurocopter, Defence & Security and Astrium divisions.
12. Number of employees
The number of employees at September 30, 2007 is 117,266 as compared to 116,805 at
December 31, 2006.
13. Subsequent events
Starting in the second half-year 2007, EADS implemented a contractual trust arrangement (CTA)
following the Board of Directors’ decision to fund pension obligations with an amount to be
determined each year. Funds transferred into the CTA will only be available to cover spending of
EADS’ future pension payments. The initial contribution amounts to 500 M €, funded in the fourth
quarter 2007 and mirrored by a corresponding decrease of the pension provision.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine months period ended September 30, 2007

In an Extraordinary General Meeting held on October 22, 2007, EADS shareholders formalised thechanges in the Group’s management and leadership structure by adopting the proposed
resolutions. EADS will be led by a single Chairman and a single Chief Executive Officer. Elected
for a five-year-term (ending at the close of the Annual General Meeting which shall be held in2012) the EADS Board of Directors includes four independent members and is composed asfollows:•

Mr. Rüdiger Grube, Chairman of the EADS Board of Directors,•

Mr. Louis Gallois, Chief Executive Officer of EADS,•

Mr. Rolf Bartke, Chairman of Kuka AG,•

Mr. Dominique D’Hinnin, Chief Financial Officer of Lagardère SCA,•

Mr. Juan Manuel Eguiagaray Ucelay, Director of Studies at Fundación Alternativas,•

Mr. Arnaud Lagardère, General Partner and CEO of Lagardère SCA,•

Mr. Hermann-Josef Lamberti, Member of the Management Board of Deutsche Bank AG,•

Mr. Lakshmi N. Mittal, President and Chief Executive Officer of Arcelor Mittal,•

Sir John Parker, Chairman of National Grid,•

Mr. Michel Pébereau, Chairman of BNP Paribas,•

Mr. Bodo Uebber, Member of the Board of Management of Daimler AG.

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07.11.2007