EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

Year 2008 Report
Unaudited Condensed Consolidated
Financial Information of EADS N.V.
For the year 2008
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Balance Sheets….…..………….……………...……...…3
Unaudited Condensed IFRS Consolidated Cash Flow Statements……………....…...…………..…4
Unaudited Condensed IFRS Consolidated Statements of RecognizedIncome and Expense..…………………………………………………….…………………………………..5
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at December 31, 2008……...….…………………………………….…………...……………….....…....6
Additional Information: Unaudited Condensed IFRS Consolidated Reconciliation of Movementin Equity attributable to equity holders of the parent and Minority interests…..…………….....…6
1. The Company……………………………………………………………………………………..…..6
2. Accounting policies……………….………………………………………………..…………….....6
3. Accounting for the A400M program….…….……..…………..…………………………..……...8
4. Changes in the consolidation perimeter of EADS…………………………....…….………...11
5. Segment information………………………………..…………..…………………………..……..11
6. EBIT pre-goodwill impairment and exceptionals…..……..…………………………………..13
7. Significant income statement items………….…………………..………….………..……......13
8. Significant balance sheet items…………………...…………………………………...……......14
9. Significant cash flow items……………………………………………………..…...…..……….17
10. Number of shares………………………………………………………..........................….....…17
11. Earnings per share……………………………………..……………….………...……….……….18
12. Related party transactions ………………..…………………...…….……………………..……18
13. Number of employees ……………………………….……………….……………..........………19
14. Litigation and claims.. ……………………………….……………….……………..........………19
15. Commitment and contingencies…………………………………………………………………20
16. Subsequent events ……………………………….……………………………..…….………..…21

1

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

Unaudited Condensed IFRS Consolidated Income Statements

January 1 December 31, 2008
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expensesM€
43,265-35,907
7,358

January 1 December 31, 2007

%
100
-83
17

M€
39,123-34,8024,321-2,317-5-2,669189

Deviation

%
100
-89
11

M€
4,142
-1,105
3,037%-2,275

-6

-42

-6

-2,608

-7

-61

2

0

233

1

-44

-19

11
3
70
2

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

211

0

296

1

-85

-29

2,772
617
-581
-508
-472
-703
1,597

6
1
-1
-1
-1
-1
4

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

0
1
-2
-1
-2
1
-1

2,805
115
120
30
265
-1,0362,034-8,500
23
-17
-6
-36
-311
-465

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

1,572
25

4
0

-446
9

-1
0

2,018
16

-452
178

Earnings per share
Basic
Diluted

€

€

€

1.95
1.95

-0.56
-0.55

2.51
2.50

2

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

Unaudited Condensed IFRS Consolidated Balance Sheets

Non-current assets
Intangible assets
Property, Plant and Equipment
Investments in associates under theequity method
Other investments and long-term
financial assets
Other non-current assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Other current assets
Current securities
Cash and cash equivalents
Assets / disposal groups classified asheld for sale
Total assets
Total equity
Equity attributable to equity holders of
the parent
Capital StockReserves
Accumulated other comprehensive
incomeTreasury shares
Minority 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
Liabilities directly associated withassets classified as held for sale
Total liabilities
Total equity and liabilities

December 31, 2008
M€%

December 31, 2007
M€%

11,171
12,24315
16

10,832
13,48914
18

339-1,246

3
-9

2,356

3

2,238

3

118

5

1,712

2

1,553

2

159

10

2,646
2,756
3,040
35,924

3
4
4
47

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

5
4
3
49

-897
51
349
-1,127

-25
2
13
-3

19,452
5,267
4,590
3,912
6,745

26
7
6
5
9

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

25
6
8
2
10

546
628
-1,123
2,314
-804

3
14
-20
145
-11

263

0

0

0

263

40,22976,15353
100

38,40575,456

51
100

1,824
697

5
1

815
8,558

1
11

814
7,406

1
9

1
1,152

0
16

1,758

3

5,076

7

-3,318-65-109
11,022
104
11,126

0
15
0
15

-206
13,09085
13,175

0
17
0
17

97
-2,06819-2,049

-47
-16
22
-16

7,479
3,046
953
16,82428,302

10
4
1
22
37

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

11
4
3
20
38

-576
-44
-1,235
1,944
89

-7
-1
-56
13
0

4,583
1,458
7,824
201
22,504

6
2
10
0
30

4,378
1,724
7,398
179
20,389

6
2
10
0
27

205
-266
426
22
2,115

5
-15
6
12
10

155

0

0

0

155

36,72565,02776,15348
85
100

34,06862,28175,456

45
83
100

2,657
2,746
697

3

Deviation
M€

%

8
4
1

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

Unaudited Condensed IFRS Consolidated Cash Flow Statements
January 1 January 1 December 31, 2008 December 31, 2007
M€
M€
Profit (loss) for the period attributable to equity holders of
the parent (Net income (loss))
Profit for the period attributable to minority interests
Adjustments to reconcile profit (loss) for the period to cash
provided b y operating activities
Depreciation and amortization
Valuation adjustments
Deferred tax expense (income)Change in income tax assets, income tax liabilities andprovisions for actual income 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 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
Disposals of non-current assets / disposal groups classified
as held for sale and liabilities directly associated with noncurrent assets classified as held for sale
Change in securities
Contribution to plan assets
Change in cash from changes in consolidation
Cash used for investing activities
Change in long-term and short-term financing liabilities
Cash distribution to EADS N.V. shareholders
Dividends paid to minority interests
Capital increase
Change in treasury shares
Cash used for financing activities
Effect of foreign exchange rate changes and other valuation
adjustments on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

1,572
25

-446
9

1,667
1,215
349

1,772
1,000
-397

-39
-31
-188
1
-172
4,399
-1,837
35
-265
2

-9
-125
-210
2,268
1,236
5,098
-2,028
162
0
29

-122

-132

180
50

186
39

117
-2,676-436
0-4,952
-157
-97
-10
24
39
-201

0
-2,641-303-249-4,937
-586
-97
-1
46
0
-638

-50
-804

-117
-594

7,549
6,745

8,143
7,549

Note: For retrospective adjustments concerning 2007 please refer to Note 9 “Significant cash flow items”.

As of December 31, 2008, EADS’ cash position (stated as cash and cash equivalents in the unauditedcondensed consolidated cash flow statements) includes 666 M € (602 M € as of December 31, 2007),

4

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

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 Recognized Income
and Expense
January 1 January 1 Decem ber 31, Decem ber 31,
2008
2007

in M €
Foreign currency trans lation differences for foreign operations

417

-196

-5.427

240

0

-50

Changes in actuarial gains and los s es

-346

608

Tax on incom e and expens e recognized directly in equity

1.722

-46

Income and expense recognized directly in equity-3.634

556

Profit (loss) for the period

1.597

-437

Total recognized income and expense of the period-2.037119-2.05619-2.03778
41
119

Changes in fair value of cas h flow hedges
Net change in fair value of available-for-s ale financial as s ets

Attributable to:Equity holders of the parent
Minority interes ts
Total recognized income and expense of the period

510.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at December 31, 2008

Additional Information: Unaudited Condensed IFRS Consolidated
Reconciliation of Movement in Equity attributable to equity holders of theparent and Minority interests

in M €

Balance at January 1, 2007

Equityattributable toequity holdersof the parent
13.015

Minority
interests

total

137

13.152

Total recognized incom e and expens e

78

41

119

Cash distribution to s hareholders

-97

-1

-98

Capital increas e

46

2

48

Change in m inority interes ts

0

-94

-94

Others48

048

Balance at December 31, 2007

13.09085

13.175

Total recognized incom e and expens e-2.05619-2.037

Cash distribution to s hareholders

-97

-10

-107

Capital Increas e

24

1

25

Change in m inority interes ts

0

9

9

Change in treas ury s hares

39

0

39

Others220

22

11.022104

11.126

Balance at December 31, 2008

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) legallyseated in Amsterdam (registered office at Mendelweg 30, 2333 CS Leiden, The Netherlands;
previously: Le Carré, Beechavenue 130-132, 1119 PR, Schiphol-Rijk, The Netherlands), and areprepared and reported in Euros (“€”). EADS’ core business is the manufacturing of commercial
aircraft, civil and military helicopters, commercial space launch vehicles, missiles, military aircraft,satellites, defence systems and defence electronics and rendering of services related to these
activities. The Unaudited Condensed Consolidated Financial Statements for the year ended
December 31, 2008 were authorized for issue by EADS’ Board of Directors on March 9, 2009.
2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) as endorsed by the EU as at
December 31, 2008.

6

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

New Interpretations
The IFRS rules applied by EADS for preparing 2008 year end Consolidated Financial Statements
are the same as for previous financial year except for those following the application of new oramended Standards or Interpretations respectively and changes in accounting policies as detailed
below.
a) Amended Standards
The application of the following amended standards is mandatory for EADS as of December 31,
2008.
The amendments “Reclassification of Financial Assets: Amendments to IAS 39 “Financial
Instruments: Recognition and Measurement” and IFRS 7 “Financial Instruments: Disclosures”(both Standards amended and endorsed in October 2008) allow an entity to reclassify nonderivative financial assets, other than those designated at fair value through profit or loss upon
initial recognition, out of the trading category in certain circumstances. These amendments also
permit an entity to reclassify from the available-for-sale category to the loans and receivables
category a financial asset that otherwise would have met the definition of loans and receivables, if
the entity has the intention and ability to hold that financial asset for the foreseeable future or until
maturity. Such reclassifications trigger additional disclosure requirements to permit users of thefinancial statements to determine what would have been the accounting result had thereclassification not been made.
Furthermore, in order to prevent diversity in practice developing as a result of the amendments
made to IAS 39 “Financial Instruments” in October 2008 regarding the reclassification of particularfinancial assets, the IASB published the amendments “Embedded Derivatives: Amendments to
IFRIC 9 “Reassessment of Embedded Derivatives” and IAS 39 “Financial Instruments:
Recognition and Measurement” (both amended in December 2008 and not endorsed yet).
According to these amendments, an entity is required to assess whether an embedded derivative
has to be separated from a host contract when the entity reclassifies a hybrid financial asset. This
assessment has to be made on the basis of the circumstances that existed when the entity firstbecame a party to the contract. However, if the fair value of such an embedded derivative thatwould have to be separated cannot be reliably measured, the entire hybrid financial instrument
must remain in the fair value through profit or loss category.
As EADS did not reclassify such financial instruments, these amendments did not have any impact
on the classification or valuation of EADS’ financial instruments.

Further, IAS 16 “Property, Plant and Equipment” and consequential IAS 7 “Statement of Cash
Flows” were amended by the Annual Improvement Project 2008 regarding the presentation of thesales proceeds from assets previously used for renting activities.
In May 2008 the IASB issued its first omnibus of amendments to its standards, primarily with aview to removing inconsistencies and clarifying wording. There are separate transitorial provisions
for each standard. EADS has early adopted the amendment to IAS 16 “Property, Plant andEquipment” and the consequential amendments to IAS 7 “Statement of Cash Flows” regarding thepresentation of the sales proceeds from assets previously used for renting activities. Following theamendments, proceeds received from the subsequent sale of such assets are presented asrevenues. Cash flows arising from the purchase, rental or sale of those assets are classified as

710.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

cash flows from operating activities. EADS anticipated the adoption of this amendment in its 2008
group financial statements.

b) New Interpretations
The following Interpretation became effective as of January 1, 2008:
IFRIC 11 “IFRS 2 – Group and Treasury Share Transactions” (issued 2006) requires
arrangements whereby an employee is granted rights to an entity´s equity instruments to beaccounted for as an equity-settled scheme, even if the entity buys the instruments from anotherparty or the shareholders provide the equity instruments needed. As EADS has not issued
instruments covered by this interpretation, the application of this Interpretation did not have an
impact on the Consolidated Financial Statements.
3. Accounting for the A400M programa) The A400M program
The Airbus A400M airlifter is a cost-effective, high-speed turboprop aircraft specifically designed tomeet the harmonised needs of European NATO nations and to fulfill the requirements ofinternational air forces. Sales commitments for the A400M total 192 as of December 31st, 2008.
These orders were mainly initiated from the European launch customers (Belgium, France,
Germany, Luxembourg, Spain, Turkey and the United Kingdom), and more recently also from
Malaysia and South Africa.
As the prime contractor for the A400M program and the customer interface, Airbus Military SL(“AMSL”), a subsidiary of EADS, is responsible for the commercial, financial and administrative
activities as well as procurement activities including the engines, power plant, the coordination forsystems; and the overall development program management.
On September, 25th 2008, EADS announced an undefined delay of the first flight of the A400M,
mainly due to the unavailability of the propulsion system, which is to be developed bysubcontractors - an engine manufacturers’ consortium - of AMSL. This undefined delay was
primarily due to an official notice by these subcontractors, as to their inability to specify a newdelivery date for the A400M engines and beyond that – but not first flight critical – due to the factthat other major suppliers of mission critical systems and of system integration were severely
struggling with the challenging technical requirements of this aircraft. Consequently, from that dateonwards and up to the date of these financial statements, a revised technical timetable of the
A400M program and the related financial implications of this delay could no longer be reliably
assessed.
Further, on January, 9th 2009, AMSL and EADS announced that they have proposed a newprogram approach for the A400M to the Launch Nations, through OCCAR, with the aim to find an
appropriate way forward for this program. AMSL and EADS wanted to initiate discussions aroundthe program schedule along with changes to other areas of the contract including in particularcertain technical characteristics of this military aircraft. In line with complex military development
programs, AMSL suggested to resume series production only once adequate maturity is reachedbased on flight test results. With such new approach, the first delivery of the A400M would thenoccur three years after its first flight. Further, AMSL and EADS will only be able to update all of thefinancial consequences of a revised industrial plan, once the availability of the engines and8

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

mission critical systems is firmly determined and once OCCAR´s position on the proposal is
known.
EADS and AMSL continue to address all technical challenges associated with the assembly of thefirst A400M aircrafts and also continue to work with the customers and suppliers to ensure an
appropriate consideration of the current challenges regarding their impacts on the delivery
schedule of this aircraft. As a number of these customers have contractual remedies that may be
implicated by any revision of the delivery plan, EADS continues to address these customer claims
and requests for other contractual relief as they arise. However, as long as certain subcontractors
cannot commit to delivery dates, EADS is currently not able to update its own delivery schedule.
Under the Launch Contract between AMSL and OCCAR, AMSL was required to manage theA400M first flight within a timeframe until January 31, 2008 and the grace period will expire on
March 31, 2009. This first flight date was not met. Given that the first flight will not occur before
March 31, 2009, OCCAR has the contractual right with unanimous mandate of all Launch Nations
to claim termination of the whole A400M Launch Contract as of April 1, 2009. In case of valid
termination AMSL would be obliged to repay to OCCAR all initial payments, pre-delivery payments
and any other payments received from OCCAR. Separately, each of the Launch Nations may
claim cancellation of those individual aircraft ordered which would be substantially delayed. This
would trigger reimbursement of the initial payments and pre-delivery payments received fromOCCAR in respect of such aircraft.
b) Risk and uncertainties arising from the A400M program and accounting consequences
As a result of the undefined delays and the uncertain technical environment which eventually led
to the proposed new program approach as described above, EADS applied the early stage
method of accounting from September 25th, 2008 onwards. Under this method, all A400M related
work-in-progress, which would have been expensed upon the completion of technical milestones
according to the estimate at completion method of accounting have since then been expensed as
incurred, with related revenues recognized up to the recoverable part of these costs as per the
A400M contract. At the same time, the A400M contract loss provision was updated in light of theexcess-contract-costs-over-remaining-contract-revenues, based on the probable remaining
contract costs that could be estimated. On the contrary, additional potential contract costs not
estimable as of the date of these financial statements have been considered as contingent
liabilities.
The early stage method of accounting has to be applied until future triggering events allow theresumption of the estimate at completion method. Such triggering events would mainly be theearliest of – among other elements – a valid committed time table of the engine subcontractors,
mission critical system suppliers and overall system integration, or an updated contractual
agreement with OCCAR and the representative nations establishing an appropriate revised
framework for the A400M program, such as the one which was proposed in the new programapproach described above. In this respect, EADS is still in relation with this engine manufacturers’
consortium to determine a reliable engine availability and a first flight date for the A400M.
Consequently, the year-end status of EADS’ validation of the committed time table of the engine
subcontractors and other suppliers did not enable a resumption of the estimate at completion
method according to IAS 11 in the EADS financial statements.
Even though the financial consequences of the extended time frame of three years between thefirst delivery of the A400M and its first flight on the ultimate level of development costs to be
incurred can not be determined precisely as long as a complete revised industrial plan is not

910.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

agreed upon with engines' and major critical systems' suppliers, the related risks have beenreflected in the A400M provision to the extent that EADS was able to estimate their probablefinancial impacts.
Total expected production costs to be incurred could not be reassessed since the beginning of
2008, as EADS believes that any revision of the program costs will only be possible once thesuppliers commit to delivery dates.
Claims received from suppliers are considered by EADS on a case by case basis and challenged
until they are accepted by EADS and reflected in contract costs.
In case of a potential, but considered to date unlikely by EADS, cancellation of the A400M contract
by OCCAR, AMSL would have to reimburse all initial payments, pre-delivery payments and anyother payments received from OCCAR which would represent a total amount of cash of
approximately 5,7 b€. In addition, EADS would have to determine the further utilisation of specifictangible assets currently used for the A400M program.
Under the current scenario of a continuation of the A400M program, significant penalties based oncontractual clauses could be notified for a cumulative amount of 1.4 b€, due in case each aircraft
delivery would be delayed by more than 10 months from the original contractual timetable. Basedupon the current probable minimum delivery delays, this penalty clause would apply at least to asignificant number of aircraft, but would be subject to future discussion with customers. The
A400M provision as of December 31st, 2008 includes EADS’ current assessment of the prorate
amount of penalties to be finally paid.
The A400M provision related to the excess-of-contract-costs-over-remaining-contract-revenues(amounting to 1,349 M€ as at December 31st, 2008) has been determined on the basis of theprobable excess contract costs that could be estimated at year-end 2008 taking into consideration
the technical and industrial uncertainties attached to the program. As they cannot currently be
estimated, various potential additional costs linked to the unquantifiable financial consequences ofthe shift in the delivery schedule have not been taken into account when reassessing the A400M
provision in the 2008´ financial statements. Therefore, significant negative income statement’s
impacts may still have to be accounted for in future periods when such costs become estimable ortriggering events lead to a return to the estimate at completion method of accounting. Potential
benefits from future discussions with customers, if any, might reduce such impacts, but would only
be taken into account once agreed upon by OCCAR and the Launch Nations.
In conclusion, while EADS believes the cost and revenue estimates currently incorporated in thefinancial statements under the early stage method of accounting reflect its most appropriate
judgments under the current circumstances, the technical complexity of the A400M program andthe uncertainty about the outcome of on-going technical developments imply that further financial
risks may arise, such as significant additional delays in delivery schedule, additional contract
completion costs as well as the ultimate amount of liquidated damages to be paid. Materialisationof these risks could also trigger an additional significant financial exposure to potential ordercancellations or even a potential termination of the whole A400M program.

The following tables summarize the major accounting balances specifically related to the A400M
program on certain balance sheet- and income statement-amounts:

1010.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

As at December 31, 2008

in M €

4,543
5,712
1,169

Accumulated revenues
Accumulated advance payments received
Net advance payments received (shown in liabilities)

Early stage
accounting
1,107(1,449)
(342)
334
(696)

in M €

Revenues
Expensed work in progress
Subtotal
Consumption of provision
Additional costs (including increase inprovision)
Total EBIT impact(704)

Year ended December 2008
Estimate at
Total impact
completionof the A400M
beforeearly stage
program
419
1,526
(489)
(1,938)
(70)
(412)
70
404
0
(696)
0

(704)

As at December 31, 2008

in M €

Property, plant and equipment (mainly buildings and jigs and tools)
Current assets (mainly advanced payments made)Net advance payments received (shown in liabilities)
A400M provision

722
953
1,169
1,349

4. Changes in the consolidation perimeter of EADSOn April 22, 2008, EADS acquired PlantCML based in California / USA, a leading provider of
emergency response solutions, which is fully consolidated from that date in Defence and Security.
The difference between the purchase price and the acquired net assets (not yet finally determined)
led to the recognition of a preliminary goodwill of 302 M US-$.
On July 28, 2008, EADS acquired an additional 41% of Spot Image based in Toulouse / France, aworld leader in the provision of satellite imagery and geo-information value-added services. EADS
thereby increased its stake in Spot Image to 81% but had been consolidating it fully in the Astrium
Division since January 1, 2008, based on effective control since that date. This additionalpurchase led to the recognition of an additional goodwill of 2 M € (not yet finally determined).
On April 7, 2008, EADS acquired Surrey Satellite Technology Limited (SSTL) based in the U.K.,
which is specialized in the design and manufacture of small and micro satellites. The acquisition
was approved by the European Commission in December 2008 leading to consolidation of the
SSTL balance sheet as at December 31, 2008 in the Astrium Division. This purchase led to therecognition of goodwill of 47 M GBP (not yet finally determined).
Apart from these transactions, other acquisitions or disposals by the Group that occurred in 2008
are not material.
5. Segment information
Through the end of 2008, the Group operated in five divisions (segments) which reflect the internalorganizational and management structure according to the nature of the products and services
provided.

11

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

• 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 provision of maintenance services.
• Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers, and 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 defencerelated telecommunications solutions and logistics; training, testing, engineering and otherrelated 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” mainly comprises
the development, manufacturing, marketing and sale of regional turboprop aircraft, lightcommercial aircraft and 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

Year ended December 31, 2008
Revenues

27,453

2,759

4,486

5,668

4,289

1,528

-2,91843,265

Research anddevelopment
expenses-2,209

-9

-134

-174

-69

-10

-64

-2,669Profit (loss) before
finance costs andincome taxes

1,763

-18

292

399

231

80

25

2,772

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

1,790

-16

293

408

234

80

41

2,830

Year ended December 31, 2007*)

Revenues

25,216

1,140

4,172

5,392

3,550

1,407

-1,754

39,123

Research anddevelopment
expenses-2,175

-16

-93

-168

-78

-8

-70

-2,608

Profit (loss) before
finance costs andincome taxes

-904

-156

210

323

170

84

240

-33

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

-881

-155

211

345

174

84

274

52

*)

Some minor activities have been transferred to “Other Businesses” from “Defence & Security”, “Eurocopter” and “HQ”.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

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.
A reconciliation from Profit before finance costs and income taxes to EBIT pre goodwill impairment
and exceptionals is set forth in the following table (in M €):Jan uary 1De cemb er 31,
2008

Ja nuary 1Decem ber 31 ,
2007

2,772

-33

Disposal of Goodwill

0

12

Exceptional depreciation and disposal

58

73

EBIT pre-goodwill impairment and exceptionals

2,830

52

in M €
Profit (loss) before finance costs and income taxes
Goodw ill and exceptionals:

7. Significant income statement items
Revenues of 43,265 M € (2007: 39,123 M €) increase by 11% despite an unfavorable US Dollar
impact, supported by higher activities in all divisions. Airbus delivered more commercial aircraft(483 versus 453 in the previous year) and Astrium, Military Transport Aircraft, Eurocopter andDefence also record increased volumes. The increase also includes 1,107 M €, resulting from theapplication of the early stage method of accounting for the A400M program (see Note 3“Accounting for the A400M program”).
The Gross Margin increases by +3,037 M € to 7,358 M € compared to 4,321 M € in 2007. This
improvement is mainly related to Airbus in particular benefiting in 2008 from foreign exchange
effects (GBP and USD) on onerous contracts and due to the higher impact in 2007 of A350XWB
burdens, higher charges related to the A400M and accrued Power8 restructuring charges. In 2008,
strong operational performance with delivery ramp-up, Power8 savings and improvements in alldivisions further contribute to the increase in the gross margin.
Research and development expenses of -2,669 M € (2007: -2,608 M €) principally reflect anincrease for the Airbus A350XWB program mainly compensated by a decrease on the Airbus
A380-800 program.
Other income decreases by -44 M € to 189 M € (2007: 233 M €). In 2007, other income included
among others gains from the sale of land and buildings.
Share of profit from associates under the equity method and other income frominvestments of 211 M € (2007: 296 M €) is mainly influenced by the estimated result of Dassault
Aviation of 169 M € (2007: 194 M €). Since for the second half-year 2008 no financial information

13

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008is yet available from Dassault Aviation, the net income of the second half year 2007 of Dassault
Aviation has been used as an estimate for the second half year’s Dassault Aviation net income for
2008, resulting in an amount of 92 M € estimated as EADS share (46.3%). For the first semester
2008 the Dassault Aviation Group reported a net income of 167 M € which has been equity
accounted by EADS according to its share of 46.3%. The equity result in 2008 of Dassault Aviation
does not include yet any potential IFRS catch-up adjustments (2007: +17 M €). Additionally, in
2007, the sale of EADS’ interest in Embraer resulted in a non-recurring capital gain of 46 M €.
Net finance costs amount to -472 M € (2007: -737 M €) including the negative impacts from therevaluation mainly of GBP positions and embedded derivatives as well as from the unwinding of
the discounting on A380, A350XWB and Power8 provisions, partially set off by the positive
impacts from realized treasury swap gains and revaluation of capitalized option premiums.
The income tax expense of -703 M € (2007: a benefit of 333 M €) corresponds to an effective
income tax rate of 31% (2007: 43%). It was impacted by a negative tax rate differential from main
EADS countries with higher income tax rates applied than in the Netherlands and by an
impairment of deferred tax assets partly compensated by the low effective tax rate on the share of
Dassault Aviation equity result.

8. Significant balance sheet items
Non-current assets
Intangible assets of 11,171 M € (prior year-end: 10,832 M €) include 9,760 M € (prior year-end:
9,519 M €) of goodwill. This mainly relates to Airbus (6,374 M €), Defence & Security (2,559 M €),Astrium (619 M €) and Eurocopter (111 M €). The related annual impairment tests, which were
performed at the end of the year, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of -704 M €, property, plant and equipment decreaseby -542 M € to 12,243 M € (prior year-end: 13,489 M €), including leased assets of 878 M € (prioryear-end: 1,319 M €). Property, plant and equipment used for the A400M program amounting to722 M€ were not subject to an impairment charge, as they are expected to be recoverable throughthe further progress of the A400M program (see Note 3 “Accounting for the A400M program”).
Property, plant and equipment also comprise “Investment property” amounting to 87 M € (prioryear-end: 96 M €).
Investments in associates under the equity method of 2,356 M € (prior year-end: 2,238 M €)mainly reflect the increase in the equity investment in Dassault Aviation, amounting to 2,243 M €(prior year-end: 2,121 M €).
Other investments and other long-term financial assets of 1,712 M € (prior year-end: 1,553 M€) are related to Airbus for an amount of 1,280 M € (prior year-end: 1,013 M €), mainly concerning
the non-current portion of aircraft financing activities including a foreign exchange rate effect of+43 M €.
Other non-current assets mainly comprise “Non-current derivative financial instruments” and“Non-current prepaid expenses”. The decrease by -897 M € to 2,646 M € (prior year-end: 3,543 M€) is mainly caused by the variation of the non-current portion of fair values of derivative financial
instruments (-1,339 M €) partly compensated by the purchase of option premiums at Airbus in thecourse of US dollar hedgings.

1410.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

Deferred tax assets of 2,756 M € (prior year-end: 2,705 M €) are presented as non-current assets
as required by IAS 1.
The fair values of derivative financial instruments are included in other non-current assets(1,101 M €, prior year-end: 2,440 M €), in other current assets (1,482 M €, prior year-end: 2,955 M€), in other non-current liabilities (2,208 M €, prior year-end: 258 M €) and in other current liabilities(657 M €, prior year-end: 36 M €) which corresponds to a total net fair value of -282 M € (prioryear-end: 5,101 M €). The volume of hedged US dollar-contracts increases from 51.3 billion US
dollar as at December 31, 2007 to net of 68.1 billion US dollar as at December 31, 2008, including
9 billion of US dollar vanilla options. The US dollar exchange rate became stronger (USD / € spot
rate of 1.39 at December 31, 2008 vs. 1.47 at December 31, 2007) towards year-end. However,
the average US dollar hedge rate for the hedge portfolio of the Group deteriorated from 1.26 as at
December 31, 2007 to 1.36 (excluding US dollar plain vanilla options which were out of themoney) as at December 31, 2008 (US dollar / € rate respectively).

Current assets
Inventories of 19,452 M € (prior year-end: 18,906 M €) increase by +546 M €. This is driven by all
divisions except for Military Transport Aircraft and Defence & Security: Eurocopter (+473 M €) withan increase in unfinished goods and services due to the ramp-up of commercialized programs(mainly SuperPuma, Dauphin, EC 135 and Ecureuil), a high number of helicopters ingovernmental programs (mainly NH90 and Tiger) and Airbus (+98 M €) partly compensated by alower level of unfinished goods and services and Astrium (+65 M €) with a higher level of work inprogress, boosted by the satellite and launcher business. The decrease at Military Transport
Aircraft by -113 M € mainly reflects a lower level of unfinished goods and services. Work inprogress for the A400M program of 1,449 M€ (see Note 3 “Accounting for the A400M program”),
which would have been capitalized under the estimate at completion method of PoC accounting,was expensed as cost of sales according to the early stage method of accounting (see Note 3“Accounting for the A400M program”).
Trade receivables increase by +628 M € to 5,267 M € (prior year-end: 4,639 M €), mainly caused
by Astrium (+469 M €) for M51, various satellites and Ariane launchers. A further increase isrelated to Eurocopter (+181 M €).
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets”, “Current tax assets” and “Current prepaid expenses”. The
decrease of -1,123 M € to 4,590 M € (prior year-end: 5,713 M €) comprises among others adecrease of -1,473 M € regarding positive fair values of derivative financial instruments. This ispartly compensated by higher receivables from related companies (+170 M €, mainly EurofighterGmbH).
Current securities increase from 1,598 M € to 3,912 M € (see also note 8 “Significant cash flow
items”).
Cash and cash equivalents decrease from 7,549 M € to 6,745 M €. The decrease mainly resultsfrom a change in the amount of securities (see also note 9 “Significant cash flow items”).
On January 7, 2009, DAHER acquired a 70% majority share in Socata and Socata Aircraft (USA)from EADS. Additionally, Airbus sold its site in Filton (UK) to GKN on January 5, 2009. Due to thehigh probability of a positive outcome of the aforementioned transactions at the end of 2008, thenon-current and current assets of these operations amounting to 263 M € are reclassified to15

10.03.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

assets / disposal groups classified as held for sale (prior year-end: 0 M €). Liabilities directly
associated to assets classified as held for sale amount to 155 M € (prior year-end: 0 M €).

Total equity
Equity attributable to equity holders of the parent (including purchased treasury shares) amounts
to 11,022 M € (prior year-end: 13,090 M €). The decrease is mainly due to income and expense
recognized in equity of –2,056 M €, which includes the profit for the period attributable to the equity
holders of the parent of +1,572 M € as well as changes in the fair value of cash flow hedges of-3,734 M € net of taxes. The amount of equity has also been reduced by the cash distribution toshareholders of -97 M €.
Minority interests increase to 104 M € (prior year-end: 85 M €) mainly in relation to initialconsolidations as well as to recognized income and expense.
Non-current liabilities
Non-current provisions of 7,479 M € (prior year-end: 8,055 M €) comprise the non-current
portion of pension provisions with a decrease of -47 M € to 4,335 M € (prior year-end: 4,382 M €).
In 2008, some EADS companies contributed in total 300 Mio. EUR in cash to the Contractual Trust
Arrangement (CTA) implemented in 2007. Moreover, other provisions are included in non-current
provisions, which decrease by -529 M € to 3,144 M €. A significant part of the decrease is related
to the provision for the A350XWB and the A380 due to the strengthening of USD / € rate regarding
the income streams and to the lowering of GBP/ € rate concerning the cost streams and due toutilisations and reclassification for settlement and buy-out charges for the A350 program. Other
provisions include among others the provision for aircraft financing activities with an increase of+99 M € to 803 M € (thereof foreign exchange effects of +42 M €).
Long-term financing liabilities of 3,046 M € (prior year-end: 3,090 M €), excluding foreignexchange-rate effects of +49 M €, decrease by -93 M € in particular due to Astrium and Airbus.
Other non-current liabilities comprise “Non-current other financial liabilities”, “Non-current otherliabilities” and “Non-current deferred income” and increase in total by +1,944 M € to 16,824 M €(prior year-end: 14,880 M €). They mainly include non-current customer advance payments
received of 8,843 M € (prior year-end: 8,420 M €), the non-current portion of European
Government refundable advances amounting to 4,563 M € (prior year-end: 4,854 M €) and noncurrent negative fair values of derivative financial instruments of 2,208 M € (prior year-end: 258 M€). The main part of non-current deferred income of 418 M € (prior year-end: 753 M €) is linked todeferred revenues of Airbus and ATR according to Residual Value Guarantee clauses. These arereversed over the guaranteed period.

Current liabilities
Current provisions increase by +205 M € to 4,583 M € (prior year-end: 4,378 M €) and comprisethe current portion of pension provisions (211 M €) and other provisions (4,372 M €). The increase
mainly reflects higher provisions for outstanding costs at Eurocopter and Defence & Security andadditional provisions for the A400M program with a net change of 154 M € to 1,349 M €, partly
offset by a decrease regarding the current portion of restructuring provisions for the “Power 8”
program.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

Short-term financing liabilities of 1,458 M € (prior year-end: 1,724 M €) decrease by -266 M €mainly due to a repayment of commercial paper of EADS B.V. (-501 M €).
Trade liabilities increase by +426 M € to 7,824 M € (prior year-end: 7,398 M €), mainly relating toAirbus (+264 M €) and Astrium (+108 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +2,115 M € to 22,504 M € (prior year-end: 20,389 M€). Other current liabilities mainly comprise current customer advance payments of 17,802 M €(prior year-end: 16,214 M €).

9. Significant cash flow items
Cash provided by operating activities decreases from 5,098 M € to 4,399 M €. Gross cash flowfrom operations (excluding working capital change) of 4,571 M € exceeds prior period’s level(2007: 3,862 M €); changes in other operating assets and liabilities (working capital changes)
amount to -172 M € (2007: +1,236 M €). Working capital mainly deteriorates due to lower advancepayments received compared to 2007 which benefited from a positive 1.1 bn € of Paradigm
refinancing. As stated in Note 2 “Accounting principles”, EADS anticipated adoption of the 2008
Annual Improvement Project in its 2008 group financial statements as far as it relates to IAS 16“Property, Plant and Equipment” and consequentially IAS 7 “Statement of Cash Flows”, classifying
cash flows arising from the rental or subsequent sale of assets previously used for renting
activities as cash flows from operating activities. In 2008, customer financing amounts to -327 M €(2007: +61 M €). Previous year’s cash flows have been adjusted accordingly.
Cash used for investing activities amounts to -4,952 M € (2007: -4,937 M €). This mainlycomprises securities purchased for -2,676 M € and purchases of intangible assets, property, plantand equipment and investment property for -1,837 M €, namely in Airbus and Astrium.
Cash used for financing activities improves by +437 M € to -201 M € (2007: -638 M €). The
outflow mainly comprises the net repayment of financing liabilities as well as the cash distribution
to shareholders.

10. Number of shares
The total number of shares outstanding is 809,509,147 and 804,209,475 as of December 31, 2008
and 2007, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the year 2008, the number of treasury shares held by EADS decreased from 9,804,998 asof December 31, 2007 to 5,259,965 as of December 31, 2008.
New shares amounting to 14,200 (in 2007: 613,519 new shares) were issued as a result of theexercise of stock options in compliance with the implemented stock option plans. Under the 2008
Employee Stock Ownership Plan, which was granted in June 2008, 2,031,820 shares were issuedin July 2008. (Under the 2007 Employee Stock Ownership Plan 2,037,835 shares were issued in
May 2007).

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

11. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
holders of the parent (Net income (loss)) by the weighted average number of issued ordinary
shares during the period, excluding ordinary shares purchased by the Group and held as treasury
shares:January 1 to
December 31,
2008

January 1 to
December 31,
2007

Net income (loss) attribut. to equity holders of the parent

1,572 M €-446 M €Weighted average number of ordinary shares outstanding

806,978,801

803,128,221

1.95 €-0.56 €

Basic earnings (losses) per share

For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. The Group’s categories
of dilutive potential ordinary shares are stock options as well as performance and restricted
shares. In 2008, the average price of EADS shares did not exceed the exercise price of stock
options under any stock option plan (in 2007: the 1st, 2nd, 4th and 5th stock option plans). Hence,no shares related to stock options (2007: 2,420,180 shares related to stock options) wereconsidered in the calculation of diluted earnings per share. Since the average price of EADS
shares during 2008 exceeded the price for performance and restricted shares, 618,141 shares
related to performance and restricted shares (in 2007 no shares) were considered in thecalculation..
January 1 to
December 31,
2008
Net income (loss) attribut. to equity holders of the parent
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings (losses) per share

January 1 to
December 31,
2007

1,572 M €-446 M €807,596,942

805,548,401

1.95 €-0.55 €

12. Related party transactions
The Group has entered into various transactions with related companies in 2008 and 2007 thathave all been carried out in the normal course of business. As is the Group’s policy, all related
party transactions have to be carried out at arm’s length. Transactions with related parties include
the French State, Daimler, Lagardère and SEPI (Spanish State). Except for the transactions with
the French State and SEPI, such transactions are not considered material to the Group either
individually or in the aggregate. The transactions with the French State include mainly sales fromthe Eurocopter, Defence & Security and Astrium divisions for programs like Tiger, M51 / M45

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

ballistic missiles and SCALP naval cruise missiles. The transactions with SEPI include mainly
sales from MTAD and Defence & Security divisions for programs like the A400M and Eurofighter.
In 2007, Lagardère and the French State through Sogéade had granted to the Group theirreceived dividend in relation with 2006 for an amount of 29 M € as an interest free loan.

13. Number of employees
The number of employees at December 31, 2008 is 118,349 as compared to 116,493 at
December 31, 2007.

14. Litigation and claims
EADS is involved from time to time in various legal and arbitration proceedings in the ordinary
course of its business, the most significant of which are described below. Other than as described
below, EADS is not aware of any governmental, legal or arbitration proceedings (including any
such proceedings which are pending or threatened of which EADS is aware), during a period
covering at least the previous twelve months which may have, or have had in the recent pastsignificant effects on EADS and/or the Group’s financial position or profitability.
Although EADS is not a party, EADS is supporting the European Commission in litigation before
the WTO. Following its unilateral withdrawal from the 1992 E.U.-U.S. Agreement on Trade in
Large Civil Aircraft, the U.S. lodged a request on October 6, 2004 to initiate proceedings before
the World Trade Organisation (“WTO”). On the same day, the E.U. launched a parallel WTO caseagainst the U.S. in relation to its subsidisation of Boeing. On May 31, 2005, the U.S. and the E.U.
each requested the establishment of a panel. At its meeting on July 20, 2005, the Dispute
Settlement Body established the panels. Between November 2005 and the present, the parties
filed numerous written submissions and attended several oral hearings in both cases. The parties
continue to provide input in response to the WTO’s written questions in advance of issuance of the
WTO panels’ reports. Exact timing of further steps in the WTO litigation process is subject to rulingof the panels and to negotiations between the U.S. and the E.U. Unless a settlement, which iscurrently not under discussion, is reached between the parties, the WTO panels have indicatedthat they will issue draft reports sometime in 2009.
The French Autorité des marchés financiers (the “AMF”) began investigations in 2006 for alleged
breaches of market regulations and insider trading rules with respect to, among other things, theA380 delays announced in 2006. On April 1, 2008, the AMF announced the notification of charges
against EADS and certain of its executives for breach of such market regulations and insider
trading rules, respectively. EADS and the individual defendants intend to vigorously exercise theirdefence rights in front of the Sanction Commission, which will decide whether to impose fines after
due hearing of the parties. EADS believes that the financial risk associated with this procedure andits possible consequences is not material. However, it recognises that these proceedings may
have significant consequences on its image and reputation. Following criminal complaints filed bya shareholders’ association and by an individual shareholder (including a civil claim for damages),
French investigating judges are also carrying out investigations on the same facts.
In Germany, the German Federal Financial Supervisory Authority (the “BaFin”) began its own
investigations in 2006 for alleged breaches of market regulations and insider trading rules.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

However, the BaFin formally notified EADS on March 2, 2007 that it had discontinued its
investigation for suspected breaches of market regulations. Upon referral by the BaFin, Germancriminal proceedings regarding suspected insider trading offences are still pending against a small
number of individuals at lower management level, while investigations against other individuals
were discontinued without charges being brought.
Furthermore, in Germany, several individual shareholders have filed a few civil actions against
EADS since 2006 to recover their alleged losses in connection with the disclosure of A380
programme delays, the latest such action being filed in early 2009. A plaintiff motion for “model
proceedings” is also currently pending before the court, which would allow common issues of factor law in multiple individual securities actions to be bundled together. The actions are in theirpreliminary stage and the amounts claimed are relatively small. EADS anticipates a vigorous
defence.
On June 12, 2008, two actions were initiated in the United States 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 and entities residing in the UnitedStates who purchased or otherwise acquired EADS’ common stock during the period from July 27,
2005 through March 9, 2007. Named as defendants are EADS and four current or former
executives of EADS and Airbus. The action seeks damages in an unspecified amount, withinterest and attorneys’ fees, for alleged violations of the U.S. securities laws in connection withfinancial disclosures issued by EADS in 2005, 2006 and 2007 and public statements made duringthat same time frame relating to A380 programme delays. On January 2, 2009, defendants filed
motions to dismiss the complaint in the action. EADS anticipates a further vigorous defence.
EADS recognizes provisions for litigation and claims when (i) it has a present obligation from legal
actions, governmental investigations, proceedings and other claims resulting from past events thatare pending or may be instituted or asserted in the future against the Group, (ii) it is probable thatan outflow of resources embodying economic benefits will be required to settle such obligation and(iii) a reliable estimate of the amount of such obligation can be made. EADS believes that it has
made adequate provisions to cover current or contemplated general and specific litigation risks.

15. Commitments and contingencies
As explained in Note 3 “Accounting for the A400M program”, in case of potential termination of theLaunch Contract initiated by OCCAR with unanimous mandate of all Launch Nations after March
31, 2009, AMSL would be obliged to repay to OCCAR all initial payments, pre-delivery payments
and any other payments received from OCCAR for the A400M program of approximately in total
5.7 b€. As of the date of these financial statements, EADS does not expect that OCCAR will
exercise its contractual termination right, as EADS assumes, that the proposed new programapproach will support the process of establishing an appropriate framework for the continuation of
the A400M program together with OCCAR.

Under the current scenario of a continuation of the A400M program, various potential additionalcosts linked to the unquantifiable financial consequences of the shift in the delivery schedule havenot been taken into account when reassessing the A400M provision in the 2008´ financial
statements. Therefore, significant negative income statement’ impacts may still have to beaccounted for in future periods when such costs become estimable or triggering events lead to a20

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the year ended December 31, 2008

return to the estimate at completion method of accounting. Potential benefits from future
discussions with customers, if any, might reduce such impacts, but would only be taken into
account once agreed upon by OCCAR and the Launch Nations. Finally, each of the Launch
Nations may separately claim cancellation of those individual aircraft ordered which would besubstantially delayed. This would trigger reimbursement of the initial payments and pre-delivery
payments received from OCCAR in respect of such aircraft.

16. Subsequent events
On January 7, 2009, the agreement with DAHER to acquire a 70% majority share in EADS Socata(announced on November 3, 2008) became effective.
In 2008, EADS had continuing negotiations with GKN to divest its Airbus site in Filton (UK). The
closing of the sale is effective since January 5, 2009.
Up to the release of these financial statements, no events have materialised that could beconsidered as triggering events requiring a change in the accounting methodology for the A400M
program (see Note 3 “Accounting for the A400M program”).
On January, 9th 2009, AMSL and EADS announced that they have proposed a new programapproach for the A400M to the Launch Nations, through OCCAR, with the aim to find an
appropriate way forward for this program. AMSL and EADS wanted to initiate discussions aroundthe program schedule along with changes to other areas of the contract including in particularcertain technical characteristics of this military aircraft. In line with complex military development
programs, AMSL suggested to resume series production only once adequate maturity is reachedbased on flight test results. With such new proposed approach, the first delivery of the A400M
would then occur three years after its first flight.
On February, 10th 2009, with reference to the report of the French senate finance and foreign
affairs commissions regarding their views on the current status of the A400M program, EADS
reaffirmed its full commitment to deliver on the European A400M military transport aircraft program
and welcomed the public support given by the French Senators being responsible for this report.
In 2005, the liquidator of the special purpose vehicle GFAC, a joint venture between Swissair and
GATX, sued Airbus at a court in New York to recover USD 227 M in pre-delivery payments,
together with interest and costs. The lawsuit followed Airbus’ termination of the Purchase
Agreement with GFAC in October 2001 for 38 SA and LR aircraft, in the context of Swissair’sbankruptcy. On February 6, the judge decided in favor of GFAC. Although Airbus has asked thecourt to reconsider its decision at a hearing on March 18, and will also file an appeal, it cannot be
excluded that Airbus will, on that day, be ordered to pay an amount equal to the pre-delivery
payments plus legal interest.

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