Q3 2002 results :On-track for Year-End
Profitability and Cash targets
Analysts conference call - Hans-Peter Ring, CFO
November 14th, 2002
1

Welcome fromnew CFO and new Head of IR

Hans-Peter Ring
EADS CFOand Executive Committee member
Pierre de Bausset
EADS Investor Relations,
Senior Vice-President
2

Business Highlights from June 2002

• Airbus: 219 delivered aircraft at Sept; on track for 300 at YE
43 new orders in Q3; 2 new clients
EasyJet MOU in October for 120 a/c + options• Defence: Taurus contract on Q3 with Germany : € 0.5 bn
MTA selected in November with Brazil : € 0.6 bn
Continuing delays in A400M, Meteor contracts
Possible Slippage in Eurofighter first deliveries• Space :3Continuing market difficulties

easyJet deal : Key financial features• Cash transaction : nocustomer financing• Progressive andsignificant customer
advance payment
schedule• Short-term deliveries: starting already in 2003
• Enhance EBIT margin from the first deliveries• 2 additional aircraft in production per month from 2004 represents
an increase of 10% to current A320 family rate
• Buy-back risk on 10 B737 (4 old generation + 6 NG) is fully priced

4Enhance cash and EBIT margin
at any point of the contract

9-month 2002 Financial Milestones• Revenues at € 20 bn on track with plan (-3.3 % from2001 reflecting lower deliveries and weakened dollar)• EBIT and R&D : in line with plan; 2002 EBIT enhanced
guidance confirmed at €1.4 bn• Cash management : on track for year-end guidance withpositive net cash position• Customer financing exposure stable on 9 months• Order-book at € 177 bn represents over 5 times ofannual revenues; Brazil and EasyJet deals not included
5

9-month 2002 Financial Highlights
9-mth 2002

€m9-mth 2001 Change

Revenues

19,996

20,685(3%)

EBIT*

1,013

1,123(10%)

EPS*€ 0.61€ 0.79(23%)

Free Cash Flow**(622)445

Sept 30, 2002

Net Cash position
Total Order-Book

670
176,569

Dec 31, 01

Change1,533
183,256(56%)(4%)* pre-goodwill and exceptional** including customer financing cash impact, excluding change in securities

6Resilience to the downturn while A380 ramp up...

A380 ramp up
Self-financed R&D expensed by quarter in € m628650
4502504454123564734036493101126

Q1 2001

Q2 2001

Q3 2001

Q4 2001

150154

Q1 2002

Q2 2002

48019350A380 R&DQ3 2002

EADS total R&D

1000Capex by quarter in € m 904
704
33050030626507258
5070150383175230190

0… On Track
7

Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002

Total Capex

A380 Capex9-month 2002 Order intake and Order-Book

Order Intake

Order-Bookin € m9-mth 2002 from Sept 01

9-mth 2002 from Dec. 01

Airbus
MTA
Aeronautics
SpaceDCS
HQ/Eliminations
Total EADS

15,446 (62%)
290 (64%)
3,171 (11%)
1,068 27%
2,720 41%(354)22,341 (53%)

148,898
1,258
13,5293,445
9,953(514)
176,569(5%)
(5%)
(1%)
(9%)
9%

(4%)

Order-Book will be further enhanced by easyJet deal
89-month 2002 Revenues and EBIT

Revenues

EBIT*

9-mth 2002

from 01(5)%

HQ/Eliminations

13,750
310
3,363
1,389
1,874(690)

Total EADS

19,996€mAirbus
MTA
Aeronautics
SpaceDCS

9-mth 2002 9-mth 2001

14%

1,072(79)132(101)(91)
80

1,131(12)144(8)(163)
31(3)%

1,013

1,1231%6%
(10)%
(8)%

* pre-goodwill and exceptional depreciation of fair value

9On Track despite continued weak economic climate

Restructuring, write-off and disposal
items included in EBIT*€m9-mth 2002

9-mth 2001

1,013
5.1%

1,123
5.4%

EADS EBIT*EBIT* margin (% of revenues)

EADS EBIT* includes the following items

10

Airbus Aircelle disposal gain

63

MTA

Inventory depreciation(54)

Space Risk program provision
Asset depreciation
Restructuring

(101)
(42)

* pre-goodwill and exceptional depreciation of fair value

(20)
(38)

Profit & loss highlights
9-mth 2002

9-mth 2001€m€m% Revenues

Revenues

19,996

Self-Financed R&D

1,356

6,8%

1,213

5,9%

EBITDA*

2,134 10,7%

2,245

10,9%

EBIT*

1,013

5,1%

1,123

5,4%

Interest(77) (0,4%)

68

0,3%

Net Income*Net Income

493
23638
2,282

3,1%
11,0%

* pre-goodwill and exceptional depreciation of fair value

11% Revenues

20,6852.5%0,1%Development of net cash over 9-month
9-mth 2002

€ million

9-mth 2001

1,533

2,143

0-838

Net Cash position as of January 1st1,533

1,305

Gross Cash Flow from Operations *Change in working capital

1,207(78)1,469(562)

Cash used for investing activities**(1,751)(462)

Of which Capital expenditures(1,414)
Of which Customer Financing net additions (418)

(989)
315

Net Cash position as of Dec. 31stConsolidation effect AIC

Free Cash Flow**
Dividend payments (including Airbus 100%)
Capital increase
OthersNet Cash position as of Sept. 30th(622)
(506)
0265

670

445(405)052
1,397* gross cash flow from operations, excluding working capital change** including customer financing cash impact, excluding change in securities
12Net Cash positive despite A380 ramp-up

Balance Sheet€ million

Sept. 2002 Dec. 2001

Total Assetsof which goodwillof which cash & equivalents,securitiesof which positive hedge mark-to-market

13

46,23810,034
5,929
964

48,715
10,442
8,033
54

Shareholders´ Equity
11,510of which OCI
886
Minority interest
996
Total provisions
8,907
of which pensions
3,324
of which negative hedge mark-to-market
860
of which other provisions
4,723
Liabilities
20,898of which financial debts5,259
of which European gvts refundable advances 4,204

9,877(1,278)559
11,918
3,176
3,673
5,069
22,5976,500
3,469

Net cash position

1,533670

2002 Outlookn2002 guidance reiterated
n Revenues close to € 30 bn
n FY02 EBIT* at € 1.4 bn
n Positive net cash position at year-endnReduce the customer financing budget below € 1 bnof net addition for the rest of the year

* pre-goodwill and exceptional depreciation of fair value

14

2004 Outlookn

A stable economic and diplomatic situation underlies
2004 10% EBIT* margin milestone, ….

n… Current market conditions :Air traffic recovery reversal
n Space market over-capacity
n Budgetary priorities impact on major defense orders
nn

Double-digit EBIT* margin target achieved after 2004

* pre-goodwill and exceptional depreciation of fair value
15Appendixes

16

EPS pre-goodwill and exceptional€m9-mth 2002

Published Net Profit
Airbus UK dilution gain
Goodwill amortisation
Fair value on fixed assets
Fair value on inventory
Tax impact on fair value
Tax on non-operationalOthers

230431
163
9(62)
(71)
(71)

2,282(2,537)
475
185
262(150)223(102)

Net Income*

493

638

Average number of shares

805.4 mio

807.2 mioEPS*

€ 0.61€ 0.79* pre-goodwill and exceptional depreciation of fair value
179-mth 2001

Airbus
Nine -month 2002 Performance and Key Drivers€m9-mth 2002 9-mth 2001

Deliveries in units

219

236

Revenues

13,75014,431

R&D**

1,071

935

In % of revenues

7.8%

6.5%

EBIT*

1,072

1,131

in % of revenues

7.8%

7.8%

Order book 148,898
in units
1492

154,683
1665nnnnn*pre- goodwill and exceptional depreciation of fair value** excluding J&T depreciation
18Revenues down 5% from 2001,
down 3% with constant $.
R&D on track with plan; A380
R&D increased from258 in 9-mth
2001 to 497 in 9-mth 2002
Performance improvement :EBIT margin pre-R&D increased
from 14.3% to 15.6% despite
decrease in deliveries
Order-book : represents 55%
world-wide market share;
43 new orders on Q3 of which 2
new clients; easyJet order will
add 120 units to order-bookMilitary Transport Aircraft
Nine -month 2002 Performance and Key Drivers€m9-mth 2002 9-mth 2001Revenues

310

306

EBIT*(79)

(12)

1,258

1,362

Order book* pre-goodwill and exceptional depreciation of fair value

19• EBIT impacted by the €54 mcharge from asset write-off,following the Fairchild Dornier
insolvency• selected in November by Brazil
for mission aircraft contract worth€ 0.6 bn
• € 18 bn A400M contract delay

Aeronautics
Nine -month 2002 Performance and Key Drivers€m9-mth 2002 9-mth 2001

Revenues

3,363

n3,161
n

EBIT*

132

144

in % of revenues 3.9%

4.6%

R&D

101

86

in % of revenues 3.0%

2.7%

Order book 13,529

13,826* pre-goodwill and exceptional depreciation of fair value

20n

Revenues growth driven by
Eurocopter,
EBIT reduced following slowdown
in commercial aviation
aerostructure and maintenancebusinesses and increased R&D;
Eurofighter :Roll-Out andsuccessful flight of the first
production A/C ; possible
slippage in Eurofighter delivery
schedule

SpaceNine -month 2002 Performance and Key Drivers• Revenues contracted due tocontinued weak commercial
satellite market€m9-mth 2002 9-mth 2001

Revenues

1,389

1,543

EBIT*(101)(8)

Order book

3,445

4,042• EBIT impacted by programs
provisions, asset depreciation;
restructuring expected in Q4• Signature of Skynet 5 expected
end of 2002n* pre-goodwill and exceptional depreciation of fair valuen21

Galileo program approved by EU
Successful Ariane5 launch ofAstrium Envisat

Defence and Civil Systems
Nine -month 2002 Performance and Key Drivers€m9-mth 2002 9-mth 2001

Revenues
EBIT*
Order book

1,874

2,044

(91)

(163)

9,953

9,426

• Seasonality effect on revenues
and profitability; on track for
EBIT breakeven+ on full year
• Decrease in revenues mostly
due to the consolidation effectfrom 100% ASM missiles to 50%MBDA• Order-Book of MBDA
* pre-goodwill and exceptional depreciation of fair value
represents over 4 years ofrevenues• Meteor contract delay
22

Customer financing exposure
all figures in € mFigures for 100% Airbus

Sept 30, 2002

closing $ rate versus €

0.986

0.881

3,388985(1,863)
1,525(1,525)
0

3,505
1,236
(1,988)1,517(1,517)0June, 30 , 2002

Dec.31, 2002

681
203(597)
84(84)
0828
174(710)118(118)
0Total Gross exposure*of which off-balance sheet
Estimate value of collateralNet exposure
Provision
AIRBUS Net exposure after provision

Figures for 50% ATR
Total Gross exposureof which off-balance sheet
Estimate value of collateralNet exposure
Provision
ATR Net exposure after provision* after adjustments and excluding stipulated losses
23Dec. 31, 2001

Prudent provision policyHedging portfolio strategy :protecting the future
Status as of Sept 30, 2002

Total hedging portfolio: $ 43.5 bn
100% microof which £ hedge : $ 7.5 bn2002

20032004

2005

2006-10

3.3

10.5

8.3

5.9

15.5

average EBIT $ rate/€ 0.96

0.96

0.94

0.94

0.95

average EBIT $ rate/£ 1.55

1.53

1.53

1.46

1.46

3 months

Volume hedged ($bn)

24

Locked-in attractive dollar rates to secure future earnings

Quarterly revenues breakdown (cumulative)

Q1
2002 2001

2002

Airbus

4,646

4,600

9,870 9,982

MTA

101

70

Aeronautics

936Spacein €m

25

Q2

234

Q3
2001

2001

Q4
2002 2001

13,750 14,431

20,549

2002

195

310

306

547

883

2,226 2,020

3,363

3,161

5,065

426

402

882 1,0541,389

1,543

2,439

DCS

539

589

1,245 1,358

1,874

2,044

3,345

HQ/Elim.

(240)

(268)

(483)

(690)

(800)

(1,147)

Total EADS

6,408

6,276

19,996 20,685

30,798(566)

13,974 14,043

Quarterly EBIT breakdown (cumulative)

in €m

26

Q1
2002 2001

Q2

Q3

2002

2001

2002

2001

Q4
2002 2001

Airbus

396

427

874

797

1,072

1,131

1,655

MTA

(12)

(12)

(72)

(21)

(79)

(12)

1

Aeronautics

16

19

63

85

132

144

308

Space

(33)

2(85)

29(101)

(8)

(222)

DCS

(72)

(87)

(71)

(128)

(91)(163)(79)

HQ/Elim.

20

(39)

66

280

3131

Total EADS

315

310

775

764

1,013

1,123

1,694