EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

First half-year 2010 Financial Report2010 Semi-Annual Report of the Board of Directors…………………………………2
Unaudited Condensed IFRS Consolidated Financial Information of EADS N.V.
for the six-month period ended June 30, 2010……………..…………………….…...4
Appendix: Auditor’s Review report

1

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 20102010 Semi-Annual Report of the Board of Directors

1. Semi-Annual Report on Activities
Main Events in the first half-year of 2010
For an overview of the main events that occurred during the first half of 2010 and their impact
on the Unaudited Condensed Consolidated Financial Information of EADS for the six-month
period ended 30 June 2010 (the “Semi-Annual Financial Statements”), please refer to thepress release to be issued on 30 July 2010, available on EADS’ website www.eads.com.
For further information regarding EADS’ activities, finances, financing, risk factors andcorporate governance, please refer to EADS’ website www.eads.com (Investor Relations)and the documents posted thereon.
Related Party Transactions
Please refer to the notes to the Semi-Annual Financial Statements attached hereto.

2. Risk Factors
For a description of the main risks and uncertainties facing EADS for the remainder of 2010
and thereafter, please refer to Section 5.4 of the Report of the Board of Directors on activities
during the 2009 financial year (the “2009 Annual Board Report”), available on EADS’
website www.eads.com.
For further information relating to the A400M program in particular, see the press release to
be issued on 30 July 2010 as well as the A400M-related section of the notes to the SemiAnnual Financial Statements.

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

4. Statement of the Board of Directors
The Board of Directors of EADS hereby declares that, to the best of its knowledge:(i) the Semi-Annual Financial Statements for the period ended 30 June 2010 give a true andfair view of the assets, liabilities, financial position and profits or losses of EADS andundertakings included in the consolidation taken as a whole; and(ii) this Semi-Annual Board Report (which includes the press release issued on 30 July2010) gives a true and fair view of the position as per the balance sheet date, and of thedevelopment and performance during the first half of the 2010 financial year andexpected course of events of EADS and undertakings included in the consolidation taken
as a whole. This Semi-Annual Board Report has paid special attention to investments
and circumstances upon which the development of revenues and profitability isdependent, as these have been described herein.

2

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Leiden, 29 July 2010
The Board of Directors
Bodo Uebber, Chairman
Louis Gallois, Chief Executive Officer
Rolf Bartke, Director
Dominique D'Hinnin, Director
Juan Manuel Eguiagaray Ucelay, Director
Arnaud Lagardère, Director
Hermann-Josef Lamberti, Director
Lakshmi N. Mittal, Director
Sir John Parker, Director
Michel Pébereau, Director
Wilfried Porth, Director

3

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the six-month period ended June 30, 2010
Unaudited Condensed IFRS Consolidated Income Statements …………………………………......5
Unaudited Condensed IFRS Consolidated Income Statements for the second quarter of 2010
and 2009………………………………………………………………….……………………………………...6
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...7
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...…………8
Unaudited Condensed IFRS Consolidated Statements of Cash Flows.………....…...……………..9
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity……………………10
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at June 30, 2010………...…………………….…………………….…………...…………..….....……..10
1. The Company………………………………………………………………………………………..10
2. Accounting policies……………….………………………………………………..……………...10
3. Accounting for the A400M program…...………….…………………………..………………...12
4. Changes in the consolidation perimeter of EADS…………………………....…….……......13
5. Segment information………………………………..…………..…………………………..……..13
6. EBIT pre-goodwill impairment and exceptionals…..……..…………………………………..14
7. Significant income statement items………….…………………..………….………..………...15
8. Significant items of the statements of financial position ……………….………...………..16
9. Significant cash flow items……………………………………………………..…...…..……….18
10. Number of shares………………………………………………………..........................….........18
11. Earnings per share……………………………………..……………….………...………………..19
12. Related party transactions ………………..…………………...…….……………………..…....19
13. Number of employees ……………………………….……………….……………..........……....19
14. Litigation and claims …..…………………………….……………….……………..........…...….20
15. Subsequent events……………………………………………………………………………...….21

4

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Unaudited Condensed IFRS Consolidated Income Statements

January 1 - June 30, 2010

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

January 1 - June 30, 2009

DeviationM€
20,308-17,626
2,682

%
100
-87
13

M€
20,195-17,194
3,001

%
100
-85
15

M€
113
-432
-319

-1,146-5-1,124-5-22-1,301-6-1,172

-6

-129

89

0

89

0

0

Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance result andincome taxes
Interest income
Interest expense
Other financial result
Finance result
Income taxes
Profit for the period

60

0

67

0

-7

384
166
-280
5
-109
-88
187

2
1
-1
0
0
-1
1

861
203
-243
-267
-307
-174
380

4
1
-1
-1
-1
-1
2

-477
-37
-37
272
198
86
-193

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

185
2

1
0

378
2

2
0

-193
0

Earnings per share

€

€

€

Basic and diluted

0.23

0.47

-0.24

5

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Unaudited Condensed IFRS Consolidated Income Statements for the second
quarter of 2010 and 2009

April 1 - June 30, 2010

Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses
Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance result andincome taxes
Interest income
Interest expense
Other financial result
Finance result
Income taxes
Profit for the period
Attributable to:Equity owners of the parent(Net income)Non-controlling interests

April 1 - June 30, 2009

Deviation

M€
11.358-9.782
1.576

%
100
-86
14

M€
11.728-9.934
1.794

%
100
-85
15

M€
-370
152
-218

-619

-5

-576

-5

-43

-729

-6

-610

-5

-119

41

0

19

0

22

42

0

18

0

24

311
84
-145
-125
-186
-41
84

3
1
-2
-1
-2
0
1

645
81
-112
-307
-338
-97
210

5
1
-1
-2
-2
-1
2

-334
3
-33
182
152
56
-126

82
2

1
0

208
2

2
0

-126
0

Earnings per share

€

€

€

Basic and diluted

0,10

0,26

-0,16

6

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Incomein M €
Profit for the period
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges

January 1 June 30, 2010

January 1 June 30, 2009

187

380

178

-296

-7,452

1,374

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

-187

79

Actuarial losses on defined benefit pension plans

-550

-199

Tax on income and expense recognized directly in equity

2,461

-429

Other comprehensive income, net of tax-5,550529

Total comprehensive income of the period-5,363909-5,362-1-5,363907
2909

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

7

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Unaudited Condensed IFRS Consolidated Statements of Financial Position
June 30, 2010

December 31, 2009

Deviation

M€

%

M€

%

M€

%

11,151
13,01613
16

11,06012,586

14
16

91
430

1
3

2,376

3

2,514

3

-138

-5

2,686

3

2,210

3

476

22

1,785
5,456
4,186
40,656

2
7
5
49

2,783
2,656
3,983
37,792

3
3
5
47

-998
2,800
203
2,864

-36
105
5
8

Inventories

23,81929

21,577

27

2,242

10

Trade receivables

5,952

7

5,587

7

365

7
-13

Non-current assets
Intangible assets
Property, plant and equipment
Investments in associates underthe equity method
Other investments and long-term
financial assets
Other non-current assets
Deferred tax assets
Non-current securities
Current assets

Other current assets

3,698

4

4,238

5

-540

Current securities

3,997

5

4,072

5

-75

-2

Cash and cash equivalents

5,328

6

7,038

9

-1,710-24

42,79451

42,51253282

183,450100

80,304

100

3,146

4

Total assets
Total equity
Equity attributable to equity
owners of the parent
Capital stockReserves
Accumulated othercomprehensive income
Treasury shares

816

1

816

1

0

0

6,944

8

7,182

9

-238

-3

-2,494

-3

2,646

3

-5,140

-194

-117

0

-109

0

-8

7

5,149

6

10,53513-5,386

-51

90

0

106

0

-16

-15

5,239

6

10,641

13-5,402

-51

8,760
3,029
1,070
21,091
33,950

11
4
1
25
41

8,137
2,867
751
15,532
27,287

10
4
1
19
34

623
162
319
5,559
6,663

8
6
42
36
24

5,954
1,618
8,468
212
28,00944,261

7
2
10
0
34
53

5,883
2,429
8,217
220
25,62742,376

8
3
10
0
32
53

71
-811
251
-8
2,382
1,885

1
-33
3
-4
9
4

Total liabilities

78,211

94

69,663

87

8,548

12

Total equity and liabilities

83,450100

80,304

100

3,146

4

Non-controlling interests
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current tax liabilities
Other current liabilities

8

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Unaudited Condensed IFRS Consolidated Statements of Cash Flows
January 1 - June January 1 - June30, 2010
30, 2009
M€
Profit for the period attributable to equity owners of the parent(Net income)

M€
185

378

2

2

Depreciation and amortization

764

802

Valuation adjustments

-367

192

-2

109

84
-18
-52
278
-815

71
-33
-45
-125
-1,89859-547

Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by (usedfor) operating activities

Deferred tax (income) expense
Change in income tax assets, income tax liabilities and provisions forincome tax
Results on 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 (used for) operating activities
Investments:- Purchase of intangible assets, PPE

-810

-752

- Proceeds from disposals of intangible assets, PPE- Acquisitions of subsidiaries, joint ventures, businesses andnon-controlling interests (net of cash)

10

10

-4

0

- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-term financial assets

0

13

-90

-56

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

57

34

41

27

- Dividends paid by companies valued at equity
Disposals of non-current assets / disposal groups classified as held forsale and liabilities directly associated with non-current assets classified
as held for sale

0102Change in securities

-76

1,647

Contribution to plan assets for pensions

-316

0

-1,188
-765
0
-5
-22
-8

1,025
-74
-162
0
1
2

-800

-233

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 non-controlling interests
Capital increase and changes in non-controlling interests
Change in treasury shares
Cash (used for) financing activities
Effect of foreign exchange rate changes and other valuation adjustments
on cash and cash equivalents

219

14

Net (decrease) increase in cash and cash equivalents-1,710259

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

7,038
5,328

6,745
7,004

9

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

As of June 30, 2010, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 705 M € (751 M € as ofDecember 31, 2009), which represents EADS’ share in MBDA’s cash and cash equivalents depositedat other shareholders. These funds are available for EADS upon demand.

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity
in M €
Balance at January 1, 2009

Equityattributable to Non-controllinginterests
equity owners of
the parent
11,022
104

Total equity
11,126

Total comprehensive income

907

2

909

Cash distribution to shareholders

-162

0

-162

Capital increase

0

1

1

Change in treasury shares

2

0

2

Others707Balance at June 30, 2009

11,776

107

11,883

Balance at January 1, 2010

10,535106

10,641

Total comprehensive income-5,362-1-5,363

Capital decrease

-19

-3

-22

Change in treasury shares

-8

0

-8

Dividends

0

-5

-5

OthersBalance at June 30, 2010

3

-7

-4

5,149

90

5,239

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at June 30, 2010
1. The Company
The accompanying Unaudited Condensed Consolidated Financial Statements present theoperations of European Aeronautic Defence and Space Company EADS N.V. and its
subsidiaries (“EADS” or the “Group”), a Dutch public limited liability company (Naamloze
Vennootschap) legally seated in Amsterdam (current registered office at Mendelweg 30, 2333 CS
Leiden, The Netherlands), and are prepared and reported in Euros (“€”). EADS’ core business isthe manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the six-month period ended June 30, 2010 were authorized for issue by
EADS’ Board of Directors on July 29, 2010.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EU).

10

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

EADS’ Consolidated Financial Statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”)
and as endorsed by the EU and Part 9 of Book 2 of the Netherlands Civil Code. They comprise (i)IFRS, (ii) International Accounting Standards (“IAS”) and (iii) Interpretations originated by theInternational Financial Reporting Interpretations Committee (“IFRIC”) or former Standards
Interpretation Committee (“SIC”).
These Unaudited Condensed IFRS Interim Consolidated Financial Statements should be read in
conjunction with EADS’ Consolidated Financial Statements as of December 31, 2009.

Financial reporting rules applied for the first time in the first half-year 2010
The following revised or amended Standards were applied for the first time in the first half-year2010 and are effective for EADS as of January 1, 2010. If not otherwise stated, the following
revised or amended standards do not have a material impact on EADS’ Consolidated Financial
Statements as well as its basic and diluted earnings per share.

The amendment to IFRS 2 "Share-based Payment - Group Cash-settled Share-based Payment
Transactions" amends the definitions in IFRS 2 for transactions and arrangements, as well as thescope of the Standard. In addition, guidance is given for accounting for share-based paymenttransactions amongst group entities.
IFRS 3R “Business Combinations” and IAS 27 (amend.) “Consolidated and Separate Financial
Statements” is mandatory for EADS since January 1, 2010. IFRS 3R introduces a number ofchanges in the accounting for business combinations that are likely to be relevant to EADS’operations: The definition of a business has been broadened, which is likely to result in moreacquisitions being treated as business combinations. Contingent consideration will be measured atfair value, with subsequent changes therein recognized in profit or loss. Transaction costs, otherthan share and debt issue costs, will be expensed as incurred. Any pre-existing interest in theacquiree will be measured at fair value with the gain or loss recognized in profit or loss. Any noncontrolling interest will be measured at either fair value, or at its proportionate interest in theidentifiable assets and liabilities of the acquiree, on a transaction-by-transaction basis. Further,
IAS 27 (amend.) requires that a change in the ownership interest of a subsidiary without gaining or
losing control is accounted for as an equity transaction. Therefore such transactions regarding
changes in non-controlling interest will no longer give rise to goodwill, nor will it give rise to again/loss.
The objective of the Amendment “Eligible Hedged Items – Amendment to IAS 39 “Financial
Instruments: Recognition and Measurement”” is to propose rules-based amendments to IAS 39 tosimplify the hedge accounting requirements by clarifying the risks that may be designated ashedged risks and the portion of cash flows of a financial instrument that may be designated as ahedged item.
In April 2009, the IASB issued its second omnibus of amendments to its standards containing 15
amendments to 10 IFRS Standards and 2 Interpretations. The amendments refer to a broad set of
IFRS Standards and Interpretations including IFRS 2, IFRS 5, IFRS 8, IAS 1, IAS 7, IAS 17, IAS
18, IAS 36, IAS 38, IAS 39, IFRIC 9 and IFRIC 16. Furthermore, the amendments made to IFRS 5
due to the Annual Improvement Project 2008 were also applied by EADS for the first time in thefirst half-year 2010.

11

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

The following endorsed Interpretations were also required to be applied for the first time in the firsthalf-year 2010. These Interpretations have no material impact on EADS’ Consolidated Financial
Statements as well as its basic and diluted earnings per share.
IFRIC 12 “Service Concession Arrangements”
IFRIC 17 “Distribution of Non-Cash Assets to Owners”
IFRIC 18 “Transfers of Assets from Customers”

New financial reporting rules issued during the first half-year 2010
The following minor amendments were published during the first half-year 2010, which are notexpected to have an impact on EADS’ Consolidated Financial Statements as well as its basic anddiluted earnings per share.
In May 2010, the IASB issued its third omnibus of amendments to its standards affecting 6 IFRSStandards and 1 Interpretation, including IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 27, IAS 34 and
IFRIC 13.
3. Accounting for the A400M program
EADS resumed the common percentage of completion method for the A400M program from endof 2009 onwards, i.e. A400M related contract revenues and contract costs are recognised asrevenues and expenses respectively by reference to the stage of completion of the A400M
contract activity at the reporting date.
The technical progress of the A400M program - amongst other including further successful test
flights, the first flight of the second prototype aircraft on April 9, 2010 and the approval of theDevelopment Phase Quality Plan by OCCAR - resulted in the recognition of A400M related
revenues of 314 M€ until June 30, 2010 with reference to the current milestone structure.
EADS/Airbus/AMSL and the Launch Nations continued their negotiations since March 5, 2010 inview of transforming the “A400M Understanding” into a contract amendment and a related export
levy facility scheme. The direction of these negotiations confirmed in principle the assumptions of
EADS’ management used for the year end reporting 2009. As previously released, areassessment of these assumptions could have a significant impact on future results.
In the meantime the A400M flight test program is progressing better than expected, however thedevelopment of the Flight Management System is on the critical path, with more challenges than
expected. Risk mitigation actions are being undertaken.
As of June 30, 2010 the A400M provision amounts to 2,677 M€ (prior year end 2,464 M €). The
variation is mainly due to foreign currency impacts.
For further information on the A400M program and relating accounting impacts including potential
impacts in case of a reassessment of the determining elements of the A400M provision see note 3“Accounting for the A400M program” in the notes to the Consolidated Financial Statements for theyear ending December 31, 2009.

12

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

4. Changes in the consolidation perimeter of EADSIn 2008, EADS concluded negotiations with GKN to divest its Airbus site in Filton (UK). The closingof the sale occurred on January 5, 2009.
On January 7, 2009, DAHER acquired a 70% majority share of EADS SOCATA. The remaining
30% of EADS SOCATA are accounted for using the equity method and presented in “Other
Businesses”.
Apart from these transactions, other acquisitions or disposals by the Group that occurred in thefirst six months of 2010 or 2009, respectively, are not material.

5. Segment information
The Group operates in five reportable segments which reflect the internal organizational andmanagement structure according to the nature of the products and services provided.
• Airbus Commercial — Development, manufacturing, marketing and sale of commercial jet
aircraft of more than 100 seats; aircraft conversion.
• Airbus Military — Development, manufacturing, marketing and sale of military transport aircraft
and special mission aircraft. Airbus Military integrates the former Military Transport Aircraft
Division (MTAD) and Airbus A400M operations.
The above mentioned reportable segments Airbus Commercial and Airbus Military form the Airbus
Division.
• Eurocopter — Development, manufacturing, marketing and sale of civil and military helicopters;
provision of helicopter related services.
• Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers; provision of space services.
• Defence & Security — Development, manufacturing, marketing and sale of missiles systems,
military combat aircraft and training aircraft; provision of defence electronics and of global
security market solutions such as integrated systems for global border security and securecommunications solutions and logistics; training, testing, engineering and other related services.
The following table presents information with respect to the Group’s business segments. “Other
Businesses” mainly comprises the development, manufacturing, marketing and sale of regional
turboprop aircraft, aircraft components as well as the Group’s activities managed in the US.
Consolidation effects, the holding function of EADS Headquarters and other activities not allocableto the reportable segments are disclosed in the column “HQ / Conso.”.

13

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

in M €

AirbusCommercial

AirbusMilitary

Eurocopter

Astrium

Defence
Other
Total
&
Businessegments
Securityses

HQ/
Conso.

Consolidated

Six-month period ended June 30, 2010
Revenues

12,965

1,007

2,109

2,110

2,183

554

20,928-620

20,308

Research anddevelopment expenses-1,021

-3

-94

-31

-123

-2

-1,274-27-1,301

Profit (loss) before
finance result andincome taxes

228

-162

70

104

107

0

347

37

384

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

241

-161

71

106

110

0

367

39

406

13,204

855

1,908

2,194

2,161

480

20,802-607

20,195

Research anddevelopment expenses

-930

-7

-78

-32

-90

-2

-1,139-33-1,172

Profit (loss) before
finance result andincome taxes

726

-219

98

97

134

2

838

23

861

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

737

-218

99

99

143

2

862

26

888

Six-month period ended June 30, 2009
Revenues

The presentation for Airbus Commercial ,Airbus Military and HQ/Conso. for the first half-year 2009 is adjusted according to
the presentation for the first half-year 2010.

6. 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.
The reconciliation from profit before finance result and income taxes to EBIT pre-goodwill
impairment and exceptionals is set forth in the following table (in M €):January 1June 30, 2010

January 1June 30, 2009

Profit before finance result and income taxes

384

861

Goodwill and exceptionals:
Exceptional depreciation (fixed assets in cost of sales)

22

27

EBIT pre-goodwill impairment and exceptionals

406

888

in M €

14

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

7. Significant income statement items
Revenues of 20,308 M € (first half-year 2009: 20,195 M €) increase by +113 M €, mainly at
Eurocopter and Airbus Military. Revenues of Airbus Military include milestones of the A 400M
program reached in the second quarter leading to a revenue recognition of +314 M € (first halfyear 2009: 295 M € recognized under the early stage method of accounting). Moreover, Other
Businesses and Defence & Security contributed positively. Positive mix effects in Airbus
Commercial are more than offset by an unfavorable US dollar impact as well as reduced revenues
in Astrium division.
The Gross Margin decreases by -319 M € to 2,682 M € compared to 3,001 M € in the first halfyear of 2009. This reduction is mainly related to unfavorable foreign exchange rate effects at
Airbus Commercial.
Research and development expenses increase by -129 M € to -1,301 M € (first half-year 2009:-1,172 M €), principally reflecting an increase for the Airbus A350XWB and some Defence andEurocopter programs partly compensated by a decrease for the Airbus A330-220F program.
Other income of 89 M € (first half-year 2009: 89 M €) includes the gain on the disposal of
DASELL Cabin Interior GmbH, Hamburg with +16 M € (while first half-year 2009 includes the gainon the disposal of Filton site in the amount of +33 M €).
Share of profit from associates under the equity method and other income frominvestments of 60 M € (first half-year 2009: 67 M €) is mainly influenced by the expected result
from Dassault Aviation of 66 M € (first half-year 2009: 59 M €). The Dassault Aviation equity
accounted-for income in the first half-year 2010 includes a positive catch-up on 2009 results
amounting to 3 M € (first half-year 2009: 4 M € positive catch-up on 2008 results).
Finance result amounts to -109 M € (first half-year 2009: -307 M €) mainly including interest resultof -114 M € (first half-year 2009: -40 M €) reflecting decreasing interest rates on cash balances.
Other financial result amounts to 5 M € (first half-year 2009: -267 M €) and includes the positive
impact from foreign exchange translation of monetary items (313 M €, first half-year 2009: 126 M€), nearly compensated by charges from the negative revaluation of financial instruments (-156 M€, first half-year 2009: -213 M €), mainly from embedded derivatives, and the unwinding of
discounted provisions (-152 M €, first half-year 2009: -180 M €).
EADS separates derivatives with a nominal amount of 1.4 billion USD, embedded in supplier hostcontracts which relate to the A400M program. Changes in the fair value of these embedded
derivatives in the amount of -178 M € are recognized in other financial result of the first half-year
2010.
EADS further refined the foreign exchange rate treatment in its income statement.
In this respect, a natural hedge relationship between 0.9 billion USD of forward purchase of USD
and A400M USD costs is taken into account since January 1, 2010. Under this natural hedge
relationship, both the re-measurement gains and losses on the naturally hedged USD costs in the
A400M loss making contract on one side and the offsetting changes of the USD forward
instruments involved in the natural hedge on the other side are presented in EBIT.
Following a refined hedging policy, a natural hedge relationship is identified since April 1, 2010
between the USD denominated trade payables and USD treasury swaps. Under the natural hedge
relationship established in the second quarter 2010 both the re-measurement gains and losses on
the hedged trade liabilities and credit notes on one side and the offsetting changes of the foreignexchange rate swaps involved in the hedge on the other side are recorded in EBIT. The foreign
currency re-measurement of USD treasury swaps therefore recorded in EBIT instead of financial
result is a net gain of +186 M € as of June 30, 2010.

15

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

The income tax expense of -88 M € (first half-year 2009: -174 M €) corresponds to an effective
income tax rate of 32% (first half-year 2009: 31%).

8. Significant items of the statements of financial positionNon-current assets
Intangible assets of 11,151 M € (prior year-end: 11,060 M €) include 9,808 M € (prior year-end:
9,741 M €) of goodwill. This mainly relates to Airbus Commercial (6,425 M €), Defence & Security(2,548 M €), Astrium (616 M €) and Eurocopter (111 M €). The last annual impairment tests, whichwere performed in the fourth quarter 2009, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of +361 M €, property, plant and equipment increaseby +69 M € to 13,016 M € (prior year-end: 12,586 M €), including leased assets of 726 M € (prioryear-end: 703 M €). Property, plant and equipment also comprise “Investment property” amounting
to 76 M € (prior year-end: 78 M €).
Investments in associates under the equity method of 2,376 M € (prior year-end: 2,514 M €)mainly reflect the decrease in the equity investment in Dassault Aviation, amounting to 2,249 M €(prior year-end: 2,380 M €).
Other investments and other long-term financial assets of 2,686 M € (prior year-end:
2,210 M €) are related to Airbus for an amount of 2,157 M € (prior year-end: 1,691 M €), mainly
concerning the non-current portion of aircraft financing activities including a foreign exchange rate
effect of +194 M €.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The decrease by -998 M € to 1,785 M € (prior year-end: 2,783 M €) ismainly caused by the negative variation of the non-current portion of fair values of derivative
financial instruments (-1,006 M €).
Deferred tax assets of 5,456 M € (prior year-end: 2,656 M €) are presented as non-current assets
as required by IAS 1. The increase is mainly due to the negative variation of fair values ofderivative financial instruments.
The fair values of derivative financial instruments are included in other non-current assets(301 M €, prior year-end: 1,307 M €), in other current assets (271 M €, prior year-end: 937 M €), inother non-current liabilities (4,981 M €, prior year-end: 732 M €) and in other current liabilities(1,796 M €, prior year-end: 220 M €) which corresponds to a total net fair value of -6,205 M € (prioryear-end: 1,292 M €). The volume of hedged US dollar-contracts increases from 60.8 billion US
dollar as at December 31, 2009 to a net of 70.1 billion US dollar as at June 30, 2010. The US
dollar vanilla options of 2 billion US dollar as of December 31, 2009 were sold. Collars in theamount of 1.2 billion US dollar were purchased. The US dollar spot rate became more favorable(USD/€ spot rate of 1.23 at June 30, 2010 vs. 1.44 at December 31, 2009). The average US dollar
hedge rate for the hedge portfolio of the Group improves slightly from 1.39 USD/€ as at December
31, 2009 to 1.38 USD/€ as at June 30, 2010, respectively.

Current assets
Inventories of 23,819 M € (prior year-end: 21,577 M €) increase by +2,242 M €. This is mainly
driven by an increase in unfinished goods and services in Airbus Division (+917 M €), at
Eurocopter (+238 M €) coming from commercial programs as well as governmental programs (NH16

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

90 and Tiger) and at Defence & Security (+561 M €, thereof +172 M € for the Eurofighter
program). Additionally, Airbus records higher finished goods for aircraft on stock (+280 M €).
Trade receivables increase by +365 M € to 5,952 M € (prior year-end: 5,587 M €), mainly caused
by Astrium (+336 M €).
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The decrease of -540 M € to
3,698 M € (prior year-end: 4,238 M €) comprises among others a decrease of -666 M € in positive
fair values of derivative financial instruments and reduced receivables from related companies(-133 M €, mainly Eurofighter Jagdflugzeug GmbH). This is partly compensated by increasing
current other assets (+194 M €), comprising among others claims to tax rebates and current
prepaid expenses.
Cash and cash equivalents decrease from 7,038 M € to 5,328 M € (see also note 9 “Significant
cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 5,149 M € (prior year-end: 10,535 M €). The decrease in equity is mainly due to acomprehensive income for the period of -5,362 M €, resulting from a negative net change in fairvalue of cash flow hedges and from actuarial losses on defined benefit pension plans (please refer
to “non-current provisions”), partly offset by corresponding changes of deferred taxes.
Non-controlling interests slightly decrease to 90 M € (prior year-end: 106 M €).

Non-current liabilities
Non-current provisions of 8,760 M € (prior year-end: 8,137 M €) comprise the non-current
portion of pension provisions with an increase of +445 M € to 5,525 M € (prior year-end:
5,080 M €). Compared with year-end 2009, the assumed discount rate applied to the calculation ofpension provisions decreases from 5.3 % (Germany) and 5.25 % (France) to 4.4 % and from 5.7% to 5.5 % (UK), leading to an increase of about 540 M € with a corresponding effect in actuarial
losses in equity and deferred tax assets.
Moreover, other provisions are included in non-current provisions, which increase by +178 M € to
3,235 M €. The increase mainly reflects provisions for aircraft financing activities (+133 M €) due toforeign exchange rate effects and provisions for loss making contracts (+48 M €).
Long-term financing liabilities, which mainly comprise bonds, increase by +162 M € to
3,029 M € (prior year-end: 2,867 M €).
Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, increase in total by +5,559 M € to 21,091 M €(prior year-end: 15,532 M €). The increase mainly comes from the non-current portion of liabilities
for derivative financial instruments (+4,249 M €), amounting to 4,981 M € (prior year-end:
732 M €) and the non-current portion of government receipts for development programs.

Current liabilities
Current provisions increase by +71 M € to 5,954 M € (prior year-end: 5,883 M €) and comprisethe current portions of pensions (205 M €) and other provisions (5,749 M €). The increase mainly

17

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010reflects provisions for loss making contracts (+183 M €) and for restructuring measures (+44 M €,thereof +67 M € reclassified from non-current provisions), partly reduced by provisions foroutstanding costs (-81 M €) and provisions for personnel charges (-63 M €).
Short-term financing liabilities of 1,618 M € (prior year-end: 2,429 M €) decrease by -811 M €,mainly due to the repayment of the first tranche of the EMTN bond with an amount of 1 billion € in
March 2010.
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +2,382 M € to 28,009 M € (prior year-end:
25,627 M €). Other current liabilities mainly comprise current customer advance payments of
21,904 M € (prior year-end: 21,271 M €). The rise is mainly caused by the increase of the current
portion of liabilities for derivative financial instruments (+1,576 M €).

9. Significant cash flow items
Cash provided by / used for operating activities increases by +606 M € to +59 M € (first six
months 2009: -547 M €). Gross cash flow from operations (before changes in other operating
assets and liabilities) of +874 M € falls below the prior period’s level (first six months 2009: +1,351
M €). The decrease is mainly affected by foreign exchange rate effects. Changes in otheroperating assets and liabilities amount to -815 M € (first six months 2009: -1,898 M €), mainlyreflecting an increase in inventories, partly compensated by increases in government receipts fordevelopment programs as well as advance payments received.
Cash used for / provided by investing activities amounts to -1,188 M € (first six months 2009:+1,025 M €). This mainly comprises purchases of intangible assets and property, plant andequipment of -810 M € (first six months 2009: -752 M €), namely in Airbus division, contributions toplan assets for pensions of -316 M € (first six months 2009: 0 M €) and payments for investments
in associates and other investments and long-term financial assets of -90 M € (first six months
2009: -56 M €).
Cash used for financing activities amounts to -800 M € (first six months 2009: -233 M €). The
outflow comprises the repayment of the first tranche of the EMTN bond (1 billion €) included infinancing liabilities.

10. Number of shares
The total number of shares outstanding is 810,584,337 and 809,964,924 as of June 30, 2010 and2009, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the first six months of 2010, the number of treasury shares held by EADS increased from
5,196,450 as of December 31, 2009 to 5,566,174 as of June 30, 2010.
In the first six months of 2010 EADS, issued 45,450 new shares (in the first six months 2009: noissuance of shares).

18

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

11. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
owners of the parent (Net income) by the weighted average number of issued ordinary shares
during the period, excluding ordinary shares purchased by the Group and held as treasury shares:
January 1 toJune 30, 2010
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share

January 1 toJune 30, 2009

185 M €

378 M €

810,848,870

810,058,069

0.23 €

0.47 €For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. After the end of thevesting period for the performance and restricted shares, the Group’s only remaining category of
dilutive potential ordinary shares is stock options. Since the average price of EADS shares did notexceed the exercise price of any stock option plan initiated by the Group during the first six monthsof 2010 and 2009, no shares related to stock options were considered in the calculation of diluted
earnings per share. In the first six months of 2009, 909,871 shares related to performance andrestricted shares were considered in the calculation, since the average price of EADS shares
during the first six months of 2009 exceeded the price of performance and restricted shares.

January 1 toJune 30, 2010
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

January 1 toJune 30, 2009

185 M €

378 M €

810,848,870

810,967,940

0.23 €

0.47 €

12. Related party transactions
The Group has entered into various transactions with related companies in the first six months of2010 and 2009 that have all been carried out in the normal course of business. As it is the Group’s
policy, all related party transactions have to be carried out at arm’s length. Transactions withrelated parties include the French State, Daimler AG, Lagardère and SEPI (Spanish State). Except
for the transactions with the French State and SEPI, such transactions are not considered material
to the Group either individually or on aggregate. The transactions with the French State include
mainly sales from the Eurocopter, Defence & Security and Astrium divisions. The transactions withSEPI include mainly sales from Airbus Military and Defence & Security division.

13. Number of employees
The number of employees as at June 30, 2010 is 120,038 as compared to 119,506 as at
December 31, 2009.

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

14. Litigation and claims
The following supplements and amends the discussion set forth under note 33 “Litigation andclaims” in the notes to the Consolidated Financial Statements for the year ending December 31,
2009.

Paragraphs 2 and 3 are replaced by the following: In 2005, the liquidator of FlightLease HoldingsGroup (a SwissAir subsidiary and 50% shareholder of the special purpose vehicle GFAC, a joint
venture between Swissair and GATX), prompted a lawsuit by GFAC against Airbus in a court in
New York to recover USD 227 million in pre-delivery payments, together with interest and costs.
The lawsuit followed Airbus’ termination of a purchase agreement with GFAC in October 2001 for
38 single-aisle and long-range aircraft, in the context of Swissair’s bankruptcy. In 2006, theFlightLease liquidator brought a separate action before the commercial court of Paris to recover an
additional USD 319 million in pre-delivery payments, together with interest and costs, on a
separate purchase agreement between Airbus and a wholly owned subsidiary of FlightLease(which was also terminated by Airbus in the context of SwissAir’s bankruptcy). On 6
February 2009, the trial judge in the New York action decided in favor of GFAC. Airbus appealed
the decision to the appellate division. In May 2010, while the decision on Airbus’ appeal in the
New York lawsuit was still pending and before trial had commenced in the Paris lawsuit, theparties agreed on a confidential settlement to terminate all proceedings.

Paragraph 4 is amended by the following: Although EADS is not a party, EADS is supporting theEuropean Commission in litigation before the WTO. On 30 June 2010 the final report was
published in the case brought by the US which did not become binding because it was appealed.
A draft decision in the case brought by the EU concerning subsidies to Boeing is expected in
September 2010.

Paragraph 7 is replaced by the following: On 12 June 2008, two actions were initiated in the UnitedStates District Court for the Southern District of New York, one of which has since been voluntarily
withdrawn. The remaining action purports to be a class action brought on behalf of all persons andentities residing in the United States who purchased or otherwise acquired EADS’ common stockduring the period from 27 July 2005 through 9 March 2007. Named as defendants are EADS andfour current or former executives of EADS and Airbus. The action seeks damages in an
unspecified amount, with interest and attorneys’ fees, for alleged violations of the US securities
laws in connection with financial disclosures issued by EADS in 2005, 2006 and 2007 and publicstatements made during that same time frame relating to A380 programme delays. On 26 March
2010, the Court granted defendants’ motion to dismiss for lack of subject matter jurisdiction. On 23
April 2010, plaintiff filed a notice of appeal of the Court’s decision.

Paragraph 10 is replaced by the following: On 10 November 2009, Airbus Military SL (AMSL)
notified Europrop International GmbH (EPI), the engine manufacturer under the A400M aircraft
programme, that it had a number of contractual claims against it for breach of Milestones 7, 8 and
9 under the engine agreement, in an amount currently totalling approximately 500 M €. On 8
February 2010, EPI notified AMSL of its own claims under the engine agreement in an amount
totalling approximately 425 M €, and on 23 February 2010, EPI sent notice of its intent to seek
arbitration, and of its sending of a request for arbitration to the International Chamber of20

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period ended June 30, 2010

Commerce (ICC) on the same day. On 4 May 2010, AMSL and EPI entered into a Standstill
Agreement to allow without prejudice business discussions and renegotiations, which are ongoing.

15. Subsequent events
On July 16, 2010, celebrating the initial public offering of EADS 10 years ago, it was announced,
that each eligible employee of the Group will receive 10 shares of EADS. This “EADS 10 Years
Anniversary Plan” is issued instead of the Employee Share Ownership Plan (ESOP) of 2010.

21

To: EADS N.V.:

Review report
Introduction
We have reviewed the condensed consolidated financial information of EADS N.V., Leiden(“EADS” or “the Company”) for the six-month period ended June 30, 2010, which comprises
the condensed consolidated statement of financial position as at June 30, 2010, and the relatedcondensed consolidated statements of income, comprehensive income, changes in equity andcash flows for the six-month period then ended and explanatory notes. Company’s management
is responsible for the preparation and presentation of this condensed consolidated financial
information in accordance with International Financial Reporting Standards as adopted by theEuropean Union (‘IAS 34’). Our responsibility is to express a conclusion on this condensed
consolidated financial information based on our review.
Scope of Review
We conducted our review in accordance with Dutch law including standard 2410, “Review ofInterim Financial Information Performed by the Auditor of the Entity”. A review of interim
financial information consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with auditing standards andconsequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that theaccompanying condensed consolidated financial information for the six-month period ended
June 30, 2010 is not prepared, in all material respects, in accordance with IAS 34, ‘Interim
Financial Reporting’, as adopted by the European Union.

Emphasis of matter
Without qualifying our conclusion above, we draw attention to all of the specific disclosures
made by the Company in its notes to the condensed consolidated financial information under
Note 3 “Accounting for the A400M Program” in relation with the risks and uncertainties
attached to the A400M program.

Rotterdam, July 29, 2010

Amsterdam, July 29, 2010

KPMG Accountants N.V.
(signed by L.A. Blok)

Ernst & Young Accountants LLP(signed by F.A.L van der Bruggen)