EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the nine-month period ended September 30, 2009
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Income Statements for the third quarter of 2009 and2008………………………………………………………………… ……………………………………......…3
Unaudited Condensed IFRS Consolidated Balance Sheets….…..………….……………...……...…4
Unaudited Condensed IFRS Consolidated Cash Flow Statements……………....…...…………..…5
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...6
Unaudited Condensed IFRS Consolidated Reconciliation of Movement in Equity attributable toEquity owners of the parent and Non-controlling interests..…..…………...…………………….......7
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at September 30, 2009…...……. ………………………………….…………...…………..….....….......7
1. The Company……………………………………………………………………………………..…..7
2. Accounting policies……………….………………………………………………..…………….....7
3. Accounting for the A400M programme..………….…………………………………………….10
4. Changes in the consolidation perimeter of EADS…………………………....…….………...12
5. Segment information………………………………..…………..…………………………..……..13
6. EBIT pre-goodwill impairment and exceptionals…..……..………………………………..…14
7. Significant income statement items………….…………………..………….………..……......15
8. Significant balance sheet items…………………...…………………………………...…….....15
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 ……………………………….……………….……………..........………20
14. Litigation and claims …..…………………………….……………….……………..........………20
15. Subsequent events... …..…………………………….……………….……………..........………21

1

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Unaudited Condensed IFRS Consolidated Income Statements

January 1 September 30, 2009
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

January 1 September 30, 2008

Deviation

M€
29,723-25,361
4,362

%
100
-85
15

M€
29,440-24,323
5,117

%
100
-83
17

M€
283
-1,038-755-1,733-5-1,591-5-142-1,834-6-1,792

-6

-42

137

0

94

0

43

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

118

0

155

1

-37

1,050
299
-388
-526
-615
-140
295

4
1
-1
-2
-2
-1
1

1,983
479
-469
-328
-318
-567
1,098

7
2
-2
-1
-1
-2
4

-933
-180
81
-198
-297
427
-803

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

291
4

1
0

1,082
16

4
0

-791
-12

Earnings per share

€

€

€

Basic and diluted

0.36

1.34

-0.98

2

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Unaudited Condensed IFRS Consolidated Income Statements for the third
quarter of 2009 and 2008
July 1 September 30, 2009
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

July 1 -September
30, 2008

Deviation

M€
9,528-8,167
1,361

%
100
-86
14

M€
9,701
-7,730
1,971

%
100
-80
20

M€
-173
-437
-610

-609

-6

-538

-5

-71

-662

-7

-662

-7

0

48

1

32

0

16

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
Loss / profit for the period

51

1

45

1

6

189
96
-145
-259
-308
34
-85

3
1
-2
-3
-4
0
-1

848
189
-169
154
174
-335
687

9
2
-2
2
2
-4
7

-659
-93
24
-413
-482
369
-772

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

-87
2

-1
0

679
8

7
0

-766
-6

Earnings per share

€

€

€

Basic and diluted

-0.11

0.84

-0.95

3

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

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
Non-current assets / disposal groups
classified as held for sale
Total assets
Total equity
Equity attributable to equity owners of
the parent
Capital stockReserves
Accumulated other comprehensive
incomeTreasury shares
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
Liabilities directly associated with noncurrent assets classified as held forsale
Total liabilities
Total equity and liabilities

September 30, 2009
M€%

December 31, 2008
M€%

DeviationM€%

11,101
12,43114
16

11,171
12,243

15
16

-70
188

-1
2

2,506

3

2,356

3

150

6

1,951

3

1,712

2

239

14

3,056
2,668
4,010
37,723

4
3
5
48

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

3
4
4
47

410
-88
970
1,799

15
-3
32
5

22,691
5,067
4,324
3,851
5,298

29
6
5
5
7

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

26
7
6
5
9

3,239
-200
-266
-61
-1,447

17
-4
-6
-2
-21

0

0

263

0

-263

41,231
78,95452
100

40,22976,153

53
100

1,002
2,801

2
4

815
8,509

1
11

815
8,558

1
11

0
-49

0
-1

3,256

4

1,758

3

1,498

85

-124
12,456110
12,566

0
16
0
16

-109
11,022
104
11,126

0
15
0
15

-15
1,434
6
1,440

14
13
6
13

7,855
2,874
1,578
15,531
27,838

10
4
2
19
35

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

10
4
1
22
37

376
-172
625
-1,293
-464

5
-6
66
-8
-2

4,499
2,226
7,133
164
24,528

6
3
9
0
31

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

6
2
10
0
30

-84
768
-691
-37
2,024

-2
53
-9
-18
9

0

0

155

0

-155

38,55066,38878,95449
84
100

36,72565,02776,153

48
85
100

1,825
1,361
2,801

4

5
2
4

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Unaudited Condensed IFRS Consolidated Cash Flow Statements

Profit for the period attributable to equity owners of the parent (Netincome)January 1 September 30,
2009

January 1 September 30,
2008

M€

M€
291

1082

4

16

1.233

1.159

Valuation adjustments

108

354

Deferred tax expense
Change in income tax assets, income tax liabilities and provisions 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

60

389

200
-30
-95
49
-1.838

-121
-27
-128
-377
721

-18

3.068

-1.274-1.066

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

Cash (used for) provided by operating activities
Investments:- Purchase of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE

23

19- Acquisitions of subsidiaries and joint ventures (net of cash)

0

-197

- Proceeds from disposals of subsidiaries (net of cash)

16

2- Payments for investments in associates and otherinvestments and long-term financial assets

-81

-104

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

21

95- Dividends paid by companies valued at equity- Decrease in finance lease receivables

27
0

50
0

Disposals of non-current assets / disposal groups classified as held forsale and liabilities directly associated with non-current assets classified asheld for sale

104

0Change in securities-846-4.357-2.010
814
-162
0
2
-15

-5.558
-690
-97
-3
26
39

639

-725

-58

-7

Net (decrease) in cash and cash equivalents-1.447-3.222

Cash and cash equivalents at beginning of period

6.745

7.549

Cash and cash equivalents at end of period

5.298

4.327

Cash (used for) 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 provided by (used for) financing activities
Effect of foreign exchange rate changes and other valuation adjustments
on cash and cash equivalents

Note: For retrospective adjustments concerning the first nine months 2009 please refer to Note 9. “Significant cash flow items”

5

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

As of September 30, 2009, EADS’ cash position (stated as cash and cash equivalents in the unaudited
consolidated cash flow statements) includes 649 M € (666 M € as of 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 Comprehensive
IncomeJanuary 1 September 30,
2009

January 1 September 30,
2008

Profit for the period

295

1,098

Foreign currency translation differences for foreign operations

-238

15

Net change in fair value of cash flow hedges

2,323-3,423in M €Net change in fair value of available-for-sale financial assets

144

-92

Others-208

300

Tax on income and expense recognized directly in equity

-712

972

Other comprehensive income, net of tax

1,309-2,228

Total comprehensive income of the period

1,604-1,1301,599
5-1,15020

Attributable to:Equity owners of the parent
Non-controlling interests

6

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Unaudited Condensed IFRS Consolidated Reconciliation of Movement inEquity attributable to Equity owners of the parent and Non-controlling interests
in M €
Balance at January 1, 2008

Equityattributable to Non-controlling
equity owners ofinterests
the parent
13,09085

Total comprehensive income

total
13,175-1,15020-1,130Cash distribution to shareholders

-97

-3

-100

Capital Increase

24

1

25

Change in treasury shares

39

0

39

Change in non-controlling interests

0

41

41

Others25-124

Balance at September 30, 2008

11,931

143

12,074

Balance at January 1, 2009

11,022

104

11,126

Total comprehensive income

1,599

5

1,604

Cash distribution to shareholders

-162

0

-162

0

2

2

Capital Increase
Change in treasury shares

-15

0

-15

Others12-1

11

12,456110

12,566

Balance at September 30, 2009

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at September 30, 2009
1. The Company
The accompanying Condensed Interim Consolidated Financial Statements (unaudited) present theoperations of European Aeronautic Defence and Space Company EADS N.V. and its
subsidiaries (“EADS” or the “Group”), a Dutch public limited liability company (Naamloze
Vennootschap) legally seated in Amsterdam (registered office at Mendelweg 30, 2333 CS Leiden,
The Netherlands), and are prepared and reported in Euros (“€”). EADS’ core business is the
manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the nine-month period ended September 30, 2009 were authorized for
issue by EADS’ Board of Directors on November 13, 2009.

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).
EADS’ Consolidated Financial Statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”), adopted by the International Accounting Standards Board (“IASB”)
as endorsed by the EU. They comprise (i) IFRS, (ii) International Accounting Standards (“IAS”)

7

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

and (iii) Interpretations originated by the International Financial Reporting Interpretations
Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).

Financial reporting rules applied for the first time in the first nine months 2009
The following Standards and revised Standards were applied for the first time in the first ninemonths 2009 and are effective for EADS as of January 1, 2009. If not otherwise stated, thefollowing standards and revised standards did not have a material impact on EADS’ Consolidated
Financial Statements.
The amendment to IAS 23 “Borrowing Costs” removes the option of recognizing borrowing costs
that are directly attributable to the acquisition, construction or production of a qualifying asset as
an expense and therefore requires capitalizing such borrowing costs as part of the cost of theasset prospectively. The application of the amended IAS 23 results in the mandatory capitalizationof borrowing costs related to qualifying assets and thus increases the amount of total costs
capitalized and thus the basis of depreciation of such qualifying assets.
IFRS 8 “Operating Segments” replaced IAS 14 “Segment Reporting” for accounting periods
beginning on or after January 1, 2009. IFRS 8 requires the presentation and disclosure of segment
information to be based on the internal management reports regularly reviewed by EADS’ Chief
Operating Decision Maker in order to assess each segment’s performance and to allocate
resources to them. EADS’ segment reporting takes into consideration these new requirements of
IFRS 8 as well as its new management structure from 2009 onwards. See Note 5 “Segment
Information” for relating changes to the presentation of segment information.
The amendment to IAS 1 “Presentation of Financial Statements: A revised presentation”
introduces among other notes disclosures the term total comprehensive income, which representschanges in equity during a period other than those changes resulting from transactions withowners in their capacity as owners. EADS provides information regarding its total comprehensive
income according to the two statement approach in an income statement as well as in a statementof comprehensive income.

Further, EADS applied the amendments to IAS 32 and IAS 1 “Puttable Financial Instruments”, theamendments to IFRS 1 “First-time Adoption of International Financial Reporting Standards” and to
IAS 27 “Consolidated and Separate Financial Statements” as well as the amendments to IFRS 2“Share Based Payments - Vesting Conditions and Cancellations”.

Finally, in May 2008 the IASB issued its omnibus of amendments to its standards primarily with aview to removing inconsistencies and clarifying wording. There are separate transition rules foreach amended standard. Except for the amendments regarding IAS 16 and IAS 7 (see Note 9“Significant cash flow items”), which were early adopted by EADS in its 2008’ Consolidated
Financial Statements, the majority of these amendments, being effective from January 1, 2009
onwards, did not have a material impact on EADS’ Consolidated Financial Statements.

The following endorsed Interpretations were also required to be applied for the first time beginningof January 1, 2009:
IFRIC 13 “Customer Loyalty Programmes” (issued 2007, endorsed in December 2008)8

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

IFRIC 14 “IAS 19 – The Limit of a Defined Benefit Asset Minimum Funding Requirements and theirInteraction” (issued 2007, endorsed in December 2008 resulting in an effective date as of January
1st, 2009)
These Interpretations did not have a significant impact on EADS’ Consolidated Financial
Statements.

IFRIC 12 “Service Concession Arrangements” (issued 2006, endorsed in March 2009) will beeffective from January 1, 2010 onwards. The potential impacts from its application are currently
under investigation.

New financial reporting rules issued during the first nine months 2009
The following amendments were published during the first nine months 2009:
The IASB published in March 2009 amendments to IFRS 7 “Financial Instruments: Disclosures:
Improving Disclosures about Financial Instruments” which are mandatory for the first time forannual periods beginning on or after January 1, 2009. These amendments will result in additional
disclosures in EADS’ Consolidated Financial Statements for 2009 with regard to the fair value
measurement of financial instruments and liquidity risks.
Further, the IASB issued amendments to IFRIC 9 and IAS 39 “Embedded Derivatives” to clarify
the accounting treatment of embedded derivatives. The amendments are mandatory (retrospective
application) for the first time for annual periods ending on or after June 30, 2009.
In April 2009, the IASB issued its second omnibus of amendments to its standards containing 15
amendments to 12 standards. The amendments refer to 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. Most of the amendments aremandatory for annual periods beginning on or after January 1, 2010 with separate transition rules
for each amendment.
In June 2009 the IASB issued an amendment to IFRS 2 "Share-based Payments - Group Cashsettled Share-based Payment Transactions" which amends the definitions in IFRS 2 fortransactions and arrangements, and the scope of the standard. In addition, guidance is given foraccounting for share-based payment transactions amongst group entities. The amendment is
mandatory for annual periods beginning on or after January 1, 2010.
Finally, the IASB published an amendment to IAS 32 “Classification of Rights Issues –Amendment to IAS 32 Financial Instruments: Presentation”, in October 2009. This amendment to
IAS 32 addresses the accounting for rights issues (rights, options or warrants) that are
denominated in a currency other than the functional currency of the issuer. In particular, when theamendment is applied, rights (and similar derivatives) to acquire a fixed number of an entity’s own
equity instruments for a fixed price stated in a currency other than the entity’s functional currency,
would be equity instruments, provided the entity offers the rights pro rata to all of its existingowners of the same class of its own non-derivative equity instruments.

The following Interpretation was also issued:
IFRIC 18 “Transfers of Assets from Customers”. The Interpretation is mandatory (prospective
application) for annual periods beginning on or after July 1, 2009. Retrospective application is also
permitted to a limited extent.

9

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

The potential impacts from the application of those newly issued amendments and interpretations
are currently under investigation. Further, EADS does not expect any impacts on its accounting
policies arising from the IFRS for SMEs and the amendments made to IFRS 1 regarding additional
exemptions for IFRS first time adopters, both published by the IASB in July 2009.

The accounting policies used in the preparation of these Unaudited Condensed Interim
Consolidated Financial Statements are consistent with those used for the annual Consolidated
Financial Statements for the year ended December 31, 2008, which are disclosed as an integral
part of the Group’s Annual Report 2008. The annual Consolidated Financial Statements wereauthorized for issue by EADS’ Board of Directors on March 9, 2009.

3. Accounting for the A400M programme
In September 2008, the Airbus A400M airlifter programme was affected by an undefined delay of
the first flight of the A400M, mainly due to the unavailability of the propulsion system and beyond
that – but not first flight critical – due to the fact that other major suppliers of mission criticalsystems and of system integration were severely struggling with the challenging technicalrequirements of this aircraft. Consequently, from September 2008 onwards and up to the date ofthese Unaudited Condensed IFRS Consolidated Financial Statements, EADS could neither agreewith OCCAR a committed revised technical timetable of the A400M programme nor reliably assess
the related financial implications of this delay and applied the early-stage method of accounting(see Note 3 “Accounting for the A400M programme” in EADS’ Consolidated Financial Statements
2008 for further details of the A400M programme and relating accounting issues).
Under the Launch Contract between Airbus Military SL (“AMSL”) and OCCAR, OCCAR had thecontractual right with unanimous mandate of all launch nations to claim termination of the whole
A400M Launch Contract as of April 1, 2009, as the first flight of the A400M did not occur before
March 31, 2009. OCCAR did not exercise this cancellation right and subsequently agreed to athree month moratorium period until the end of June 2009. On July 24, 2009, the Defence
Ministers of the launch nations confirmed to adhere to the A400M contract to enable detailed
negotiations up to the end of the year. From a commercial as well as from a technical perspective,
the A400M programme has made additional progress during the last months. Our ongoing
discussions with OCCAR and the launch nations have contributed further to reinforce the nations’confidence in the A400M programme and to prepare a common basis for all parties involved forentering into a new negotiation phase in order to realign the A400M programme on an achievablebasis. However, the discussions with the representatives of OCCAR and the launch nations did
not lead to an updated A400M contract scheme until the date of issuance of these Unaudited
Condensed IFRS Consolidated Financial Statements, which will realign and rebase the contract onrealistic general and specific conditions acceptable to all parties.
Therefore, EADS and AMSL continue to address all contractual issues with OCCAR and thelaunch nations as well as the technical challenges associated with the assembly of the first A400M
aircraft and its planned first flight and continue to work with their suppliers and partners to be able
to confirm a realistic timetable as well as a reliable and robust cost structure of the programme.
The technical progress made in summary on the A400M programme is anticipated to enable theachievement of the 1st Flight around the end of 2009. This technical progress of the A400M
programme during the last months is interrelated with considerable reductions of sources of
uncertainty which mainly arose from the unavailability of the propulsion system and other mission
critical systems in the past. Compared to the situation during the second quarter 2009, additional

10

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

progress in terms of generating a more reliable and robust cost structure for the remaining cost tocompletion has been made, however, with some areas of uncertainties still existing. Therefore,and due to the significant work still to be performed under this planning process EADS regards thecost information available as of September 30, 2009 still as premature. Accordingly, EADS
considers itself still not to be in a position to comply with the requirements of IAS 11.22 to apply adifferent method of accounting than early stage accounting as of September 30, 2009.
Under the early stage method of accounting, all A400M related work-in-progress, which would
have been expensed upon the completion of technical milestones according to the estimate atcompletion method of accounting only, have been expensed as incurred, with related revenues
recognized up to the recoverable part of these costs as per the A400M Launch Contract. The
A400M contract loss provision was accounted for in light of the excess-contract-costs-overremaining-contract-revenues, based on the probable remaining contract costs that could be
estimated. Additional potential contract costs not estimable as of the date of these Unaudited
Condensed IFRS Consolidated Financial Statements have been considered as contingent
liabilities.

The following tables summarize the major accounting balances specifically related to the A400M
programme as at September 30, 2009:

As at September 30, 2009
4,941
(7,362)(2,421)

in M €

Accumulated revenues
Accumulated cost of sales
Accumulated EBIT-impact

in M €

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

As at September 30, 2009
4,941
(6,360)(1,419)First nine months 2009
Early stage accountingof the A400M programme
399
(710)
(311)
311
(224)
(224)

in M €

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

In M €

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

As at September 30, 2009
788
1,069
1,419
1,282

In case of a potential, but still considered to date unlikely by EADS, cancellation of the A400M
contract by OCCAR at the end of the moratorium period, AMSL would have to reimburse all initial
payments, pre-delivery payments and any other payments received from OCCAR which would
represent a total amount of cash of approximately 6.4 bn €. In addition, EADS would have todetermine the further utilisation of specific tangible assets currently used for the A400M
programme and to take into account possible claims from suppliers.

11

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Under the scenario of a continuation of the A400M programme under the Launch Contract,significant penalties based on contractual clauses could be notified to EADS for a cumulative
amount of €1.3 bn, due in case each aircraft delivery would be delayed by more than 10 months
from the original contractual timetable. Based upon the currently probable minimum delivery
delays, this penalty clause would apply at least to a significant number of aircraft, but would be
subject to future discussion with customers. The A400M provision as of September 30, 2009
includes EADS’ current assessment of the pro-rated amount of penalties to be finally paid.
Considering the current status of discussions between EADS and OCCAR as well as the launchnations, the initial A400M contract is still not expected to frame the conditions for EADS to proceedwith the A400M programme on an achievable reasonable basis over the next years. However, as longas this existing contract scheme is not replaced by an updated contract, it still remains terminable.
Taken into consideration the reduced but ongoing technical and industrial uncertainties attached to
the A400M programme and the uncertainties from the ongoing discussions with OCCAR and thelaunch nations to adjust contractual arrangements, no robust and validated comprehensive updateof the cost to complete and the provision based on stabilized assumptions was possible. Due tothese ongoing uncertainties the early stage method of accounting was retained for the closing of
the third quarter 2009. Therefore, significant negative income statement’s impacts may still have tobe accounted for in future periods when such costs become estimable on a valid basis or
triggering events lead to a return to the estimate-at-completion method of accounting. Potential
benefits from current discussions with customers might reduce such impacts, but would only betaken into account once the respective agreement with OCCAR and the launch nations is
assessed to be highly probable. Currently, under certain continuation scenarios which are stilllacking enough estimable evidence and which are not taking into account the expected outcome
by EADS of the current discussions with OCCAR, the magnitude of the negative impact ofadditional costs would substantially alter the financial statements of EADS as a whole in the future.
A reliable assessment of this negative impact requires sufficient progress of current discussions
with OCCAR and the launch nations, which are entering into a difficult and decisive phase.

In conclusion, EADS believes the early stage method of accounting currently incorporated in these
Unaudited Condensed IFRS Consolidated Financial Statements reflects its most appropriate
judgments under the current circumstances, the technical complexity of the A400M programme andthe uncertainty about the outcome of on-going negotiations.

4. Changes in the consolidation perimeter of EADSOn April 22, 2008, EADS acquired PlantCML California / USA, a leading provider of emergency
response solutions, which has been fully consolidated since that date. The difference between thepurchase price and the acquired net assets led to the recognition of goodwill of 275 M USD.
On July 28, 2008, EADS acquired an additional 41% of Spot Image, Toulouse / France, a world
leader in the provision of satellite imagery and geo-information value-added services. EADS thusincreased its stake in Spot Image to 81% and consolidates it fully. This additional purchase led to
the recognition of a goodwill of 2 M €.
In the previous year, EADS concluded negotiations with GKN to divest its Airbus site in Filton(UK). The closing of the sale occurred on January 5, 2009.

12

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

On January 7, 2009, DAHER acquired a 70% majority share of EADS SOCATA. The remaining
30% of EADS SOCATA is accounted for using the equity method and presented in “Other
Businesses”.
Other acquisitions or disposals by the Group that occurred in the first nine months of 2009 are notmaterial, nor were those that occurred in the first nine months of 2008.

5. Segment information
In 2009, the Group operates in four divisions (reportable segments) which reflect the internalorganizational and management structure.
• Airbus segment — Development, manufacturing, marketing and sale of commercial jet aircraftof more than 100 seats, military transport aircraft and special mission aircraft; aircraft
conversion.
• Eurocopter — Development, manufacturing, marketing and sale of civil and military helicopters;
provision of maintenance 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 defencerelated telecommunications solutions and logistics; training, testing, engineering and otherrelated services.

In the context of the full integration of the former Military Transport Aircraft Division (MTA) into
Airbus being Airbus Military and the consolidation of EADS EFW (previously included in Other
Businesses) within Airbus from 2009 onwards, the Airbus segment’s 2008 figures and Other
Businesses’ figures have been restated accordingly. Until the completion of the consequentialchanges to the internal reporting systems, the Airbus Segment is presented as one reportablesegment, disclosing Airbus Military thereof in the former MTA perimeter. Additionally, completing
the reorganization of aerostructures activities within EADS, the site in Augsburg (previously
included in Defence & Security) was transferred to the Airbus segment in 2009. The respective
previous year’s figures are not restated, but impacts are explained where considered to bematerial.
In the second quarter of 2009, the carrying amounts of operative real estate, owned by
Headquarters, were transferred retrospectively to the respective segments (mainly Airbus) as atJanuary 1, 2009. Since the operative segments as tenants are treated as if they were the owners,
rental income and depreciations in Headquarters were restated accordingly, thus affecting its
EBIT.
The following table presents information with respect to the Group’s reportable segments.
Consolidation effects, the holding function of EADS Headquarters and other activities not
attributable to the divisions (segments) are disclosed in the column “HQ / Conso.”. “Other
Businesses” comprises operating segments, which are not reportable and mainly includes thedevelopment, manufacturing, marketing and sale of regional turboprop aircraft, aircraftcomponents as well as maintenance services.

13

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

in M €

AirbusDefence &Security

Astrium

Other
Businesses

Total
segments

3,039

3,296

3,228

723

30,479-756

29,723

-107

-138

-52

-3

-1,773-61-1,834

164

210

152

3

1,033

17

1,050

165

220

155

3

1,066

23

1,089

2,781

3,490 *)

2,749

958

30,543-1,10329,440

-89

-117

-56

-7

-1,737-55-1,792

164

212

137

33

1,992

-9

1,983

164

219

140

33

2,020

-2

2,018

Eurocopter

Consolidated

HQ/
Conso.

Nine-month period ended September 30, 2009
Revenues

20,193

thereof Airbus Military

1,637

Research anddevelopment expenses-1,473

thereof Airbus Military-10

Profit before financeresult and income taxes

504

thereof Airbus Military-6

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

523

thereof Airbus Military-5

Nine-month period ended September 30, 2008
Revenues

20,565

thereof Airbus Military

1,949

Research anddevelopment expenses-1,468

thereof Airbus Military-5

Profit before financeresult and income taxes

1,446

thereof Airbus Military-69

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

1,464

thereof Airbus Military

-68

*)

thereof revenues of 281 M € related to the site in Augsburg

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 result and income taxes to EBIT pre-goodwill impairment
and exceptionals is set forth in the following table (in M €):14

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009
January 1September 30,
2009

January 1September 30,
2008

1,050

1,983

Exceptional depreciation (fixed assets in cost of sales)

38

34

Exceptional disposal (fixed assets in other income)

1

1

1,089

2,018

in M €
Profit before finance result and income taxes
Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals

7. Significant income statement items
Revenues of 29,723 M € (first nine months 2008: 29,440 M €) increase by +283 M € mainly at
Astrium (partly driven by a catch-up for in-orbit incentive schemes on commercial
telecommunication satellites) and Eurocopter. This is to some extent compensated by Airbus andSocata, of which 70 % was sold in 2009 and the remaining 30% are now accounted for at equity.
The Gross Margin decreases by -755 M € to 4,362 M € compared to 5,117 M € in the first ninemonths of 2008. This deterioration is mainly related to Airbus which is in particular burdened in2009 by foreign exchange rate effects and lower realized prices for delivered aircraft, partly
benefiting from lower A380 onerous contract charges. Apart from Airbus, the other divisions
increase their gross margins.
Research and development expenses of -1,834 M € (first nine months 2008: -1,792 M €)principally reflect an increase for the Airbus A350XWB and some Defence and Eurocopter
programs partly compensated for by a decrease in the Airbus A380-800 program.
Other income increases by +43 M € to 137 M € (first nine months 2008: 94 M €) mainly due to thegain of +33 M € resulting from the sale of Airbus UK’s former site in Filton to GKN.
Share of profit from associates under the equity method and other income frominvestments of 118 M € (first nine months 2008: 155 M €) mainly consists of the result of Dassault
Aviation of 107 M € (first nine months 2008: 123 M €). The Dassault Aviation equity accounted-for
income in the first nine months 2009 includes a positive catch-up on 2008 results amounting to 4
M €.
Finance result amounts to -615 M € (first nine months 2008: -318 M €) mainly including negative
impacts from the revaluation at closing spot rate of some assets and from the unwinding ofprovisions.
The income tax expense of -140 M € (first nine months 2008: -567 M €) corresponds to aneffective income tax rate of 32% (first nine months 2008: 34%).

8. Significant balance sheet items
Non-current assets
Intangible assets of 11,101 M € (prior year-end: 11,171 M €) include 9,728 M € (prior year-end:
9,760 M €) of goodwill. This mainly relates to Airbus (6,437 M €), Defence & Security (2,482 M €),Astrium (614 M €) and Eurocopter (111 M €). The last annual impairment tests, which were
performed at the end of the year 2008, did not lead to any impairment charges.
Eliminating foreign exchange-rate effects of +89 M €, property, plant and equipment increase by+99 M € to 12,431 M € (prior year-end: 12,243 M €), including leased assets of 766 M € (prior15

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

year-end: 878 M €). Property, plant and equipment also comprise “Investment property” amounting
to 80 M € (prior year-end: 87 M €).
Investments in associates under the equity method of 2,506 M € (prior year-end: 2,356 M €)mainly reflect the increase in the equity investment in Dassault Aviation, amounting to 2,367 M €(prior year-end: 2,243 M €).
Other investments and other long-term financial assets of 1,951 M € (prior year-end: 1,712 M€) are related to Airbus for an amount of 1,308 M € (prior year-end: 1,290 M €), mainly concerning
the non-current portion of aircraft financing activities including a foreign exchange rate effectof -89 M €.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The increase by +410 M € to 3,056 M € (prior year-end: 2,646 M €) ismainly caused by the positive variation of the non-current portion of fair values of derivative
financial instruments (+587 M €) and higher non-current prepaid expenses (+36 M €), partly offset
by the restructuring and negative revaluation of foreign exchange options.
Deferred tax assets of 2,668 M € (prior year-end: 2,756 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(1,688 M €, prior year-end: 1,101 M €), in other current assets (1,263 M €, prior year-end:
1,482 M €), in other non-current liabilities (636 M €, prior year-end: 2,208 M €) and in other current
liabilities (386 M €, prior year-end: 657 M €) which corresponds to a total net fair value of 1,929 M€ (prior year-end: -282 M €). The volume of hedged US dollar-contracts decreases from 68.1
billion US dollar as at December 31, 2008 to a net of 62.5 billion US dollar as at September 30,
2009, including 4 billion of US dollar vanilla options. The US dollar exchange rate became lessfavorable (USD / € spot rate of 1.46 at September 30, 2009 vs. 1.39 at December 31, 2008). The
average US dollar hedge rate for the hedge portfolio of the Group deteriorates from 1.36 USD / €as at December 31, 2008 to 1.38 USD / € as at September 30, 2009 (excluding US dollar plain
vanilla options which are out of the money).

Current assets
Inventories of 22,691 M € (prior year-end: 19,452 M €) increase by +3,239 M €. This is mainly
driven by an increase in unfinished goods and services in Airbus (+1,719 M €) among others due
to a ramp-up in A380 program, at Defence (+365 M €) fuelled by communication systems andmissile systems and at Eurocopter (+299 M €) due to an increase in commercial programs (mainly
SuperPuma, Dauphin and EC 145) and governmental programs. Boosted by its launcher
business, Astrium records a higher level of work in progress (+86 M €) as well as of advancepayments made to suppliers (+319 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 -266 M € to
4,324 M € (prior year-end: 4,590 M €) comprises among others a decrease of -219 M € in positive
fair values of derivative financial instruments and lower current tax assets (-216 M €).
Cash and cash equivalents decrease from 6,745 M € to 5,298 M € (see also note 9 “Significant
cash flow items”).

16

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 12,456 M € (prior year-end: 11,022 M €). The increase in equity is mainly due to acomprehensive income for the period of +1,599 M €, primarily resulting from the positive effects ofa net change in fair value of cash flow hedges and the profit for the period, partly compensated forby the cash distribution to the shareholders. The re-assessment of BAE Systems’ pension deficit
leads for the EADS share to a decrease of net accumulated actuarial gains and losses of -180 M €(included in “others” in the Statement of Comprehensive Income) and to a foreign exchange rate
effect of -25 M € (see “non-current provisions”).
Non-controlling interests slightly increase to 110 M € (prior year-end: 104 M €).

Non-current liabilities
Non-current provisions of 7,855 M € (prior year-end: 7,479 M €) comprise the non-current
portion of pension provisions with an increase of +397 M € to 4,732 M € (prior year-end: 4,335 M€). For the first half-year 2009, BAE Systems re-assessed its pension deficit including an update of
the assumptions for their calculation of the defined benefit obligations, thereby leading to anincrease of the net pension obligation. Since EADS applies the equity approach under IAS 19,
non-current pension provisions increase by +220 M €, reflecting EADS’ share in the BAE Systems’
pension deficit. For its other pension schemes, EADS re-assessed the cumulated actuarial gains
and losses, resulting in no material change in the net pension obligation.
Moreover, other provisions are included in non-current provisions, which decrease by -21 M € to
3,123 M €. Other provisions include among others the provision for aircraft financing activities.
Long-term financing liabilities of 2,874 M € (prior year-end: 3,046 M €) decrease by -172 M €.
Due to the maturity date of the first tranche of the EMTN bond, an amount of 1 billion € is classified
to short-term financing liabilities. In August 2009, this decrease is balanced by issuing the third
tranche of the EMTN bond amounting to 1 billion €.
Other non-current liabilities comprise “Non-current other financial liabilities”, “Non-current otherliabilities” and “Non-current deferred income” and decrease in total by -1,293 M € to 15,531 M €(prior year-end: 16,824 M €). They mainly include non-current customer advance payments
received of 9,175 M € (prior year-end: 8,843 M €) and the non-current portion of European
Government refundable advances amounting to 4,604 M € (prior year-end: 4,563 M €). The
decrease is mainly affected by the reduction of fair values of derivative financial instruments(please refer to “derivative financial instruments”.) The main part of non-current deferred income of
284 M € (prior year-end: 418 M €) is linked to deferred revenues of Airbus and ATR relating to
Residual Value Guarantee clauses. These are reversed over the guaranteed period.

Current liabilities
Current provisions decrease by -84 M € to 4,499 M € (prior year-end: 4,583 M €) and comprisethe current portions of pensions (211 M €) and other provisions (4,288 M €). The decrease mainlyreflects restructuring provisions for the “Power 8” program (-57 M €) and provisions for outstanding
costs (-51 M€), partly compensated for by provisions for aircraft financing activities.
Short-term financing liabilities of 2,226 M € (prior year-end: 1,458 M €) increase by +768 M €,mainly due to the first tranche of the EMTN bond with an amount of 1 billion €, maturing inMarch 2010.

17

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Trade liabilities decrease by -691 M € (thereof +84 M € foreign exchange rate effect) to
7,133 M € (prior year-end: 7,824 M €), mainly coming from Airbus (-373 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +2,024 M € to 24,528 M € (prior year-end:
22,504 M €). Other current liabilities mainly comprise current customer advance payments of
20,043 M € (prior year-end: 17,802 M €).

9. Significant cash flow items
IAS 16 “Property, Plant and Equipment” and consequentially IAS 7 “Statement of Cash Flows”
were amended by the IASB’s Annual Improvements Project 2008 regarding the presentation of
cash flows relating to customer financing activities. Cash flows from leased assets and financelease receivables formerly presented within investing activities are now included in “change inother operating assets and liabilities” within operating activities. Cash flows in relation to customer
finance liabilities formerly presented in “change in long-term and short-term financing liabilities”
within financing activities are now also included in “change in other operating assets and liabilities”
within operating activities.
Cash (used for) provided by operating activities decreases by -3,086 M € to -18 M € (first ninemonths 2008: 3,068 M €).Gross cash flow from operations (excluding working capital changes) of
1,820 M € falls below the prior period’s level (first nine months 2008: 2,347 M €). The decrease ismainly caused by Airbus. Changes in other operating assets and liabilities (working capitalchanges) amount to -1,838 M € (first nine months 2008: 721 M €), mainly resulting from anincrease in inventories as well as lower advance payments received.
Cash (used for) investing activities (including change in securities) amounts to -2,010 M € (firstnine months 2008: -5,558 M €). This mainly comprises purchases of intangible assets andproperty, plant and equipment of -1,274 M €, namely in Airbus, and a net purchase of securities of-846 M €.
Cash provided by (used for) financing activities improves by +1,364 M € to 639 M € (first ninemonths 2008: -725 M €). The inflow comprises the issuance of the third tranche of the EMTN bond
(1 billion €) included in financing liabilities partly offset by the cash payment to shareholders.

10. Number of shares
The total number of shares outstanding is 808,803,672 and 809,263,685 as of September 30,
2009 and 2008, respectively. EADS’ shares are exclusively ordinary shares with a par value of
1.00 €.
During the first nine months 2009, the number of treasury shares held by EADS increased from5,259,965 as of December 31, 2008 to 5,942,453 as of September 30, 2009.
EADS neither issued any new shares nor implemented an Employee Stock Ownership Plan. In thefirst nine months 2008, EADS issued 14,200 shares as a result of the exercise of stock options inrelation to the implemented stock option plans. Under ESOP 2008, 2,031,820 shares were granted
in June 2008 and issued in July 2008.

18

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

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) 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
September 30,
2009
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share

January 1 to
September 30,
2008

291 M €

1,082 M €810,057,593

806,251,855

0.36 €

1.34 €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. Since the average price of EADS shares during the first nine months 2009 and 2008,
respectively did not exceed the exercise price of any stock option plan initiated by the Group, noshares related to stock options were considered in the calculation of diluted earnings per share.
Since the average price of EADS shares during the first nine months 2009 exceeded the price ofperformance and restricted shares, 1,218,814 shares related to performance and restricted shares(in the first nine months 2008: 486,041 shares) were considered in the calculation.
January 1 to
September 30,
2009
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

January 1 to
September 30,
2008

291 M €

1,082 M €811,276,407

806,719,896

0.36 €

1.34 €

12. Related party transactions
The Group has entered into various transactions with related companies in the first nine months of2009 and 2008 that have all been carried out in the normal course of business. As is the Group’s
policy, all related party transactions have to be carried out at arm’s length. Transactions withrelated parties include the French State, Daimler, Lagardère and SEPI (Spanish State). Except for
the transactions with the French State 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 in the Airbus segment and Defence & Security
division.

19

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

13. Number of employees
The number of employees as at September 30, 2009 is 118,149 as compared to 118,349 as at
December 31, 2008.

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.
In 2005, a liquidator representing the special purpose vehicle GFAC (a joint venture between
Swissair and GATX) sued Airbus before a New York court to recover USD 227 million in predelivery payments, together with interest and costs. The lawsuit followed Airbus’ termination of apurchase agreement with GFAC in October 2001 for 38 single-aisle and long-range aircraft, in thecontext of Swissair’s bankruptcy. On 6 February 2009, a judge decided in favour of GFAC. In
March 2009, GFAC submitted arguments on the amount of its alleged damages and requested
entry of judgment. In parallel, Airbus has filed an appeal of the February 2009 decision. Bothrequests are currently under consideration by the courts, and it cannot be excluded that Airbus
could be ordered to pay an amount equal to the pre-delivery payments plus legal interest.
In 2006, a liquidator representing the special purpose vehicle FlightLease No. 7 (a wholly-owned
subsidiary of the bankrupt Swissair Group) sued Airbus before a Paris court to recover USD 319
million in pre-delivery payments, together with interest and costs. The lawsuit followed Airbus’
termination of a purchase agreement with FlightLease No. 7 in October 2001, in the context ofSwissair’s bankruptcy. The case is at an early procedural stage.
Although EADS is not a party, EADS is supporting the European Commission in litigation before
the WTO. Following its unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large
Civil Aircraft, the US lodged a request on 6 October 2004 to initiate proceedings before the WTO.
On the same day, the EU launched a parallel WTO case against the US in relation to its subsidies
to Boeing. On 31 May 2005, the US and the EU each requested the establishment of a panel. At
its meeting on 20 July 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. On 4 September 2009, a non-binding confidential draft
decision was issued in the case brought by the US. The parties are currently providing commentson the draft, and a first instance decision could occur in the second quarter of 2010. A draft
decision in the case brought by the EU concerning subsidies to Boeing is expected in December
2009. Exact timing of further steps in the WTO litigation process is subject to ruling of the panels
and to negotiations between the US and the EU. Unless a settlement, which is currently not underdiscussion, is reached between the parties, the litigation is expected to continue for several years.
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 1 April 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. On 22 July 2009, the Rapporteur of the Sanction Commission of the
AMF issued a report regarding the charges notified by the AMF, which contains various
recommendations to the Sanction Commission on the merits of the charges. EADS and theindividual defendants intend to vigorously exercise their defence rights in front of the Sanction

20

16.11.2009

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2009

Commission of the AMF, which will decide whether to impose fines after due hearing of theparties. EADS believes that the financial risk associated with this procedure and its possible
consequences is not material. However, it recognises that these proceedings may have significant
consequences on its image and reputation. Following criminal complaints filed by a 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, criminal proceedings regarding suspected insider trading offences involving a small
number of individuals have either been discontinued without charges being brought or dismissedby the court. Furthermore, in Germany, several shareholders have filed civil actions against EADS
since 2006 to recover their alleged losses in connection with the disclosure of A380 programmedelays. The actions are in their preliminary stage and the amounts claimed are relatively small. On
17 July 2009, the regional court of Frankfurt partially granted one plaintiff’s motion for “model
proceedings”, which would allow common issues of fact or law in multiple individual securities
actions to be bundled together.
On 12 June 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 from27 July 2005 through 9 March 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 US 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 2 January 2009, defendants filed
motions to dismiss the complaint in the action. On 17 March 2009, plaintiff filed its opposition to
the motions to dismiss; on 23 April 2009, defendants filed replies; and on 30 April 2009, plaintiff
requested leave to file a sur-reply. This request and defendants’ motions to dismiss are pending.
Finally, on 9 September 2009, an institutional shareholder filed a request with the Enterprise
Chamber of the Amsterdam Court of Appeal to conduct an inquiry into whether EADS’ affairs withrespect to the A380 have been properly conducted. This request is currently pending. EADS
anticipates a vigorous defence.
Regarding certain past contractual relationships of Astrium in Italy, there is currently an analysis
ongoing by the Italian tax authorities to assess whether Astrium owes any tax in Italy.
Regarding EADS’ provisions policy, EADS recognises provisions for litigation and claims when(i) it has a present obligation from legal actions, governmental investigations, proceedings andother claims resulting from past events that are pending or may be instituted or asserted in the
future against the Group, (ii) it is probable that an outflow of resources embodying economic
benefits will be required to settle such obligation and (iii) a reliable estimate of the amount of suchobligation can be made. EADS believes that it has made adequate provisions to cover current orcontemplated general and specific litigation risks.

15. Subsequent events
On November 5, 2009, the South African government withdraw from the A400M programme andcancelled its order for eight aircraft. Further, the Malaysian government declared on November 6,2009 that it would maintain its order for four A400M but specified that their delivery would bedelayed to 2016. EADS is currently investigating the industrial and financial implications of these
subsequent events.

21

16.11.2009