EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the nine-month period ended 30 September 2013
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Income Statements for the third quarterof 2013 and 2012……………………………………………..……………………….………………......…3
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...4
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income for thethe third quarter 2013 and 2012……………………………………………………………………….…..5
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…6
Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....………………..7
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..……………...........8
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at 30 September 2013……….……………………….…………..……....…………..…......….............9
1. The Company…………………………………………………………………………………..…….92. Accounting policies……………….………………………………………………..…..……..........93. Acquisitions and other M&A transactions……….. ….……………………………………..…10
4. Segment information………………………………..………………………………..…….....…..11
5. EBIT pre-goodwill impairment and exceptionals…..……..…………………………….…….13
6. Significant income statement items………….…………………..………….……………........13
7. Significant items of the statement of financial position…….……………………...…........14
8. Significant cash flow items……………………………………………………..…...…..……….16
9. Financial instruments……………………………………………………………………………..17
10. Number of shares………………………………………….……………......................................20
11. Earnings per share……………………………………..……………….………...……...………..20
12. Related party transactions.………………..…………………...…….……………………..……21
13. Number of employees ……………………………….……………….……………..........………21
14. Litigation and claims …..…………………………….……………….……………..........………22

1

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Unaudited Condensed IFRS Consolidated Income Statements

1 January 30 September 2013
Revenues
Cost of sales *)Gross margin *)Selling, administrative & otherexpenses *)Research and development
expenses

1 January 30 September 2012

DeviationM€
39,966-33,789
6,177

%
100
-85
15

M€
37,258-31,739
5,519

%
100
-85
15

M€
2,708
-2,050658-2,253-6-2,162-6-91-2,179-5-2,145

-6

-34

118

0

154

0

-36

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 *)

252

1

188

1

64

2,115
141
-398
-188
-445
-473
1,197

5
0
-1
0
-1
-1
3

1,554
168
-405
-100
-337
-337
880

4
0
-1
0
-1
-1
2

561
-27
7
-88
-108
-136
317

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

1,195
2

3
0

880
0

2
0

315
2

Earnings per share
Basic *)
Diluted *)

€

€

€

1.50
1.50

1.08
1.07

0.42
0.43

*) Previous year’s figures are adjusted due to revised IAS 19.

2

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Unaudited Condensed IFRS Consolidated Income Statements for the third
quarter of 2013 and 2012
1 July - 30 September 2013 1 July - 30 September 2012

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

DeviationM€
13,634-11,620
2,014

%
100
-85
15

M€
12,324-10,517
1,807

%
100
-85
15

M€
1,310
-1,103
207

-730

-5

-702

-6

-28

-765

-6

-720

-6

-45

34

0

70

1

-36

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 *)

98

1

61

0

37

651
49
-134
47
-38
-176
437

5
0
-1
0
-1
-1
3

516
39
-133
-4
-98
-116
302

4
0
-1
0
-1
-1
2

135
10
-1
51
60
-60
135

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

436
1

3
0

301
1

2
0

135
0

Earnings per share

€

€

€

Basic and diluted *)

0.55

0.37

0.18

*) Previous year’s figures are adjusted due to revised IAS 19.

3

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income1 January 30 September
2013

1 January 30 September
2012

1,197

880

-212

-798

using the equity method

6-86

Tax on items that will not be reclassified to profit or loss*)

61

237

-77

-27

1,271

500

-3

155

4

-118

Tax on items that will be reclassified to profit or loss

-390

-175

Other comprehensive income, net of tax *)

660

-312

Total comprehensive income of the period

1,857

568

1,863
-6
1,857

571
-3
568

in M €
Profit for the period*)
Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit plans*)
Actuarial losses on defined benefit plans from investments

Items that will be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges
Net change in fair value of available-for-sale financial assets
Changes in other comprehensive income from investments accounted forusing the equity method

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period*) Previous year’s figures are adjusted due to revised IAS 19.

4

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income for the third quarter 2013 and 2012
1 July 30 September
2013

1 July 30 September
2012

437

302

137

11

1

0

-35

-3

Foreign currency translation differences for foreign operations

-120

-45

Net change in fair value of cash flow hedges

1,844

1,790

50

42

-6

-4

Tax on items that will be reclassified to profit or loss

-577

-577

Other comprehensive income, net of tax *)

1,294

1,214

Total comprehensive income of the period

1,731

1,516

1,731
0
1,731

1,516
0
1,516

in M €
Profit for the period*)
Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit plans*)
Actuarial losses on defined benefit plans from investments
using the equity method
Tax on items that will not be reclassified to profit or loss*)
Items that will be reclassified to profit or loss:

Net change in fair value of available-for-sale financial assets
Changes in other comprehensive income from investments accounted forusing the equity method

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period*) Previous year’s figures are adjusted due to revised IAS 19.

5

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Unaudited Condensed IFRS Consolidated Statements of Financial PositionNon-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
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
Total liabilities
Total equity and liabilities

30 September 2013
M€%

31 December 2012
M€%

Deviation
M€%

13,657
15,62915
1713,422
15,268

15
16

235
361

2
2

2,824

3

2,662

3

162

6

2,102

2

2,115

2

-13

-1

3,229
4,488
4,329
46,258

3
5
5
50

2,801
4,523
5,987
46,778

3
5
7
51

428
-35
-1,658
-520

15
-1
-28
-1

27,422
6,155
4,303
3,086
5,048
46,014
92,272

30
7
5
3
5
50
100

23,216
6,790
4,239
2,328
8,756
45,32992,107

25
7
4
3
10
49
100

4,206
-635
64
758
-3,708
685
165

18
-9
2
33
-42
2
0

782
7,003

1
7

827
8,147

1
8

-45
-1,144

-5
-14

2,326

3

1,513

2

813

54

-48
10,063
39
10,102

0
11
0
11

-84
10,40325
10,428

0
11
0
11

36
-340
14
-326

-43
-3
56
-3

10,1094,349
2,060
18,011
34,529

11
5
2
19
37

9,827
3,506
1,504
18,19433,031

11
4
2
19
36

282
843
556
-183
1,498

3
24
37
-1
5

5,028
2,870
8,974
434
30,33547,641
82,17092,272

6
3
10
0
33
52
89
100

6,045
1,273
9,917
458
30,95548,64881,67992,107

7
1
11
0
34
53
89
100

-1,017
1,597
-943
-24
-620
-1,007
491
165

-17
125
-10
-5
-2
-2
1
0

*) Previous year’s figures are adjusted due to revised IAS 19.

6

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Unaudited Condensed IFRS Consolidated Statements of Cash Flows
1 January 30 September 2013
M€
Profit for the period attributable to equity owners of the parent (Net income)*)1 January 30 September 2012
M€

1,195

880

2

0

Depreciation and amortization

1,370

1,352

Valuation adjustments*)

381

374

Deferred tax expense

239

179

Change in income tax assets, income tax liabilities and provisions for income tax

-121

-31

-1

-20

Results of companies accounted for by the equity method

-201

-151

Change in current and non-current provisions*)

-246

530

Reimbursement from / contribution to plan assets

-35

-331

Change in other operating assets and liabilities-5,467-4,578Cash (used for) operating activities-2,884-1,796-2,082-1,894- Proceeds from disposals of intangible assets, PPE

1655- Acquisitions of subsidiaries and joint ventures (net of cash)

-15

-43

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

-308

-274

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

359

202

- Dividends paid by companies valued at equity

49

43

Change of securities

794

2,920

Change in cash from changes in consolidation-26

0Cash (used for) provided by investing activities-1,213

1,009

Change in long-term and short-term financing liabilities

2,620

548

Cash distribution to EADS N.V. shareholders

-467

-369

Dividends paid to non-controlling interests-1-2

Changes in capital and non-controlling interests

219

138

-1,913

-5

458

310

-69

49

Net decrease of cash and cash equivalents-3,708-428

Cash and cash equivalents at beginning of period

8,756

5,284

Cash and cash equivalents at end of period

5,048

4,856

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

Results on disposals of non-current assets

Investments:- Purchases of intangible assets, PPE

Change in treasury shares
Cash provided by financing activities
Effect of foreign exchange rate changes and other valuation adjustments on cash
and cash equivalents*) Previous year’s figures are adjusted due to revised IAS 19.

7

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

As of 30 September 2013, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 305 M € (374 M € as of 31
December 2012), which represents EADS’ share in MBDA’s cash and cash equivalents deposited atother shareholders. These funds are available for EADS upon demand.

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity

Balance at 1 January 2012

Equityattributable to Non-controlling
equity owners ofinterests
the parent
8,850
15

Retrospective adjustment *)

-7

0

-7

8,843

15

8,858

in M €

Balance at 1 January 2012, adjusted

total
8,865

Profit for the period *)

880

0

880

Other comprehensive income *)

-309

-3

-312

Total comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Capital increase

571

-3

568

-369

-2

-371

139

5

144

Equity transactions (IAS 27)

-15

10

-5

Change in treasury shares

-5

0

-5

Others18

018

Balance at 30 September 2012

9,182

25

9,207

Balance at 1 January 2013

10,40925

10,434Retrospective adjustment *)

-6

0

-6

Balance at 1 January 2013, adjusted

10,40325

10,428

Profit for the period

1,195

2

1,197

668

-8

660

1,863

-6

1,857

-467

-1

-468

216

3

219

Equity transactions (IAS 27)

-117

18

-99

Change in treasury shares-1,9130-1,913

Share-based payment (IFRS 2)

78

0

78

Balance at 30 September 2013

10,063

39

10,102Other comprehensive income
Total comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Capital increase*) Previous year’s figures are adjusted due to revised IAS 19.

8

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 30 September 2013
1. The Company
The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present theoperations of European Aeronautic Defence and Space Company EADS N.V. and its
subsidiaries (“EADS” or the “Group”), a Dutch public limited liability company (Naamloze
Vennootschap) legally seated in Amsterdam (current registered office at Mendelweg 30, 2333 CS
Leiden, The Netherlands), and are prepared and reported in Euros (“€”). EADS’ core business isthe manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the nine-month period ended 30 September 2013 were authorized for
issue by EADS’ Board of Directors on 13 November 2013.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) issued by the International
Accounting Standards Board (“IASB”) and as endorsed by the European Union (EU) as at 30
September 2013 and Part 9 of Book 2 of the Netherlands Civil Code. They comprise (i) IFRS, (ii)International Accounting Standards (“IAS”) and (iii) Interpretations originated by the IFRSInterpretations Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
These Unaudited Condensed IFRS Interim Consolidated Financial Statements should be read in
conjunction with EADS’ Consolidated Financial Statements as of 31 December 2012. Except for
the amended Standards to be applied for the first time in the first nine months 2013 (mentioned
below in the next section), EADS’ accounting policies and practices are unchanged compared to
31 December 2012.
The following new, revised or amended Standards were applied for the first time in the first ninemonths 2013 and are effective for EADS as of 1 January 2013. If not otherwise stated, their first
application has not had a material impact on EADS’ Consolidated Financial Statements as well as
its basic and diluted earnings per share.
The IASB issued amendments to IAS 12 “Income Taxes” providing practical guidance for themeasurement of deferred tax relating to an asset by introducing the presumption that recovery of
the carrying amount of that asset will normally be through sale. Amendments supersede SIC 21“Income Taxes – recovery of Revalued Non Depreciable Assets”.
Amended version of IAS 19 “Employee Benefits” requires full recognition of actuarial gains andlosses directly in equity, a method already used by EADS. Furthermore, the revised standard
introduces a net interest approach, under which for defined benefit obligation and plan assets thesame interest rate is applied, and it requires past service costs to be fully recognized in the periodof the related plan amendment. Also, the amendments will henceforth require EADS to recognize
the additional compensation payable under certain German early retirement programs(‘Altersteilzeitprogramme’) rateably over the active service period of such programs. Applying theamended standard retrospectively in 2013, EADS’ consolidated opening net equity as of 1 January
2012 has been adjusted by -7 M €. Comparative consolidated statement of income for the first9

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

nine months 2012 have been restated leading to an impact of -32 M € on profit before financeresult and income taxes and -23 M € on profit for the period. The impact on earnings per share forthe first nine months 2012 amounts to -0.02 € on basic and -0.03 € on diluted earnings per share.
If the Group had not applied IAS 19R beginning 1 January 2013, EBIT would have increased byaround +56 M €, while basic and diluted earnings per share would have had a positive impact ofapproximately +0.05 € in the first nine months 2013.
Amendments to IAS 1 “Presentation of Items of Other Comprehensive Income” require separate
presentation of items of other comprehensive income that are reclassified subsequently to profit orloss (recyclable) and those that are not reclassified to profit or loss (non-recyclable).
Amendments to IFRS 7 “Financial Instruments: Disclosures” define IASB’s disclosure
requirements in the context of offsetting financial assets and financial liabilities.
New IFRS 13 “Fair Value Measurement” defines fair value, sets out in a single IFRS framework formeasuring fair value and requires disclosures about fair value measurement. As EADS has
already considered in previous years credit/ debit value adjustments as the counterparty risk
recognized in the fair values of its derivative financial instruments, the application of IFRS 13 does
not lead to any material changes in this respect.
The IASB issued various amendments to IFRS Standards within the Annual Improvements 20092011 Cycle, which have become applicable as of 1 January 2013. The amendments refer to IFRS
1, IAS 1, IAS 16, IAS 32 and IAS 34.

3. Acquisitions and other M&A transactions
On 31 January 2013, ST Aerospace Ltd., Singapore (Singapore) acquired a 35% non-controllinginterest in Elbe Flugzeugwerke, Dresden (Germany) (EFW). EADS as the former sole shareholder
retains 65% of the shares of EFW.
On 1 March 2013, Cassidian terminated its Joint Venture with Odebrecht Group by selling its 50%
share to Odebrecht Defesa e Tecnologia SA, Sao Paolo (Brazil).
On 17 May 2013, Cassidian Cybersecurity SAS, Elancourt (France) acquired a 83.9% controllinginterest in Arkoon Network Security SA, Lyon (France). On 14 June 2013 Cassidian Cybersecurity
SAS made a mandatory simplified public offering on the remaining shares of Arkoon Network
Security in line with General Regulations of the French Financial Market Authority (“AMF”). As aresult of the tender offer that ended 4 July 2013 Cassidian’s interest in Arkoon increased to 97.3%.
Subsequent squeeze-out procedure of remaining shareholders was finalized on 15 July 2013
leaving Cassidian as sole shareholder of Arkoon.
On 31 May 2013, Astrium Services GmbH, Ottobrunn (Germany) acquired remaining noncontrolling interest of 24.9% in ND Satcom GmbH, Immenstaad (Germany) from SES S.A.,
Betzdorf (Luxemburg).
The transactions above are considered to have no material impact on EADS’ consolidated
financial statements.

10

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

4. Segment information
The Group operates in five reportable segments which reflect the internal organizational andmanagement structure according to the nature of the products and services provided.
Airbus Commercial — Development, manufacturing, marketing and sale of commercial jet
aircraft of more than 100 seats; aircraft conversion and related services. Additionally, thedevelopment, manufacturing, marketing and sale of regional turboprop aircraft and aircraftcomponents are reclassified from “Other Businesses” and are managed by Airbus Commercial
from 1 January 2013 onwards.
Airbus Military — Development, manufacturing, marketing and sale of military transport aircraft
and special mission aircraft and related services.
The reportable segments Airbus Commercial and Airbus Military form the Airbus Division.
Eurocopter — Development, manufacturing, marketing and sale of civil and military helicopters;
provision of helicopter related services.
Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers; provision of space related services.
Cassidian — Development, manufacturing, marketing and sale of missiles systems, military
combat aircraft and training aircraft; provision of defence electronics and of global security
market solutions such as integrated systems for global border security and securecommunications solutions and logistics; training, testing, engineering and other related services.
The following table presents information with respect to the Group’s business segments. As a rule,inter-segment transfers are carried out on an arm’s length basis. After the reclassification of ATRgroup and Sogerma group to “Airbus Commercial”, “Other Businesses” comprises the Group’s
activities managed in the US. Combined together with consolidation effects, the holding function of
EADS Headquarters and other activities not allocable to the reportable segments, they aredisclosed in the column “Others/ HQ / Conso.”.

11

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

in M €

AirbusCommercial

AirbusMilitary

Eurocopter

Astrium

CassidianTotalsegments

Others/
HQ/
Conso.

Consolidated

Year ended 30 September 2013
Total revenues

27,552

1,769

4,132

4,014

3,498

40,965348

41,313

Internal revenues

-629

-174

-374

-13

-138

-1,328-19-1,347

26,923

1,595

3,758

4,001

3,360

39,637329

39,966-1,684

-14

-218

-76

-172

-2,164-15-2,179

1,501

7

216

202

149

2,075

40

2,115

1,521

8

217

205

153

2,104

42

2,146

Revenues
Research anddevelopment
expensesProfit before financeresult and income
taxes
EBIT pre-goodwill
imp. and exceptionals(see definition below)
Finance result-445

Income taxes-473

Profit for the period

1,197

Year ended 30 September 2012
Total revenues

25,155

1,194

4,116

3,934

3,484

37,883494

38,377

Internal revenues

-337

-215

-399

-9

-137

-1,097-22-1,119

Revenues **)24,818

979

3,717

3,925

3,347

36,786472

37,258

Research anddevelopment
expenses **)-1,664

-12

-204

-85

-165

-2,130-15-2,145

Profit before financeresult and income
taxes *), **)

805

7

274

187

140

1,413

141

1,554

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

823

8

275

190

145

1,441

142

1,583

Finance result-337

Income taxes *)-337

Profit for the period

880*) Previous year’s figures are adjusted due to revised IAS 19.
**) Previous year’s figures are adjusted due to the inclusion of ATR group and Sogerma group into Airbus Commercial andthe remaining activities of ‘Other Businesses’ into ‘Others/ HQ/ Conso.’.

12

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

5. EBIT pre-goodwill impairment and exceptionals
EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic
performance. The term “exceptionals” refers to such items as depreciation expenses of fair value
adjustments relating to the EADS merger, the Airbus combination and the formation of MBDA, as
well as impairment charges thereon. It also comprises disposal impacts related to goodwill and fairvalue adjustments from these transactions. EBIT pre-goodwill impairment and exceptionals is
treated by management as a key indicator to measure the segments’ economic performances.
The reconciliation from profit before finance result and income taxes to EBIT pre-goodwill
impairment and exceptionals is set forth in the following table (in M €):in M €
Profit before finance result and income taxes *)1 January 30 September
2013

1 January 30 September
2012

2.115

1.554

31

29

2.146

1.583

Goodwill and exceptionals:
Exceptional depreciation/ disposal (fixed assets in cost of sales)
EBIT pre-goodwill impairment and exceptionals*)*) Previous year’s figures are adjusted due to revised IAS 19.

6. Significant income statement items
Revenues of 39,966 M € (first nine months 2012: 37,258 M €) increase by +2,708 M €, mainly at
Airbus Commercial (+2,397 M €). All segments contributed positively to the increase of revenues.
The Gross margin increases by +658 M € to 6,177 M € compared to 5,519 M € (adjusted) in thefirst nine months 2012. This improvement is mainly related to Airbus Commercial due to higherdeliveries of the long range and single aisle programs and better pricing as well as lower expenses
for A380 wing rib provisioning. Contractually, Airbus Commercial is not liable versus airlines forloss of use, revenue or profit or for any other direct, incidental or consequential damages related towing ribs issue. However, in view of overall commercial relationships, contracts adjustments may
occur, and be considered on a case by case basis. The improvement is partly compensated bynegative currency one-offs at Airbus Commercial compared to 2012. The A350 XWB Entry Into
Service is scheduled for the second half of 2014. Airbus continues to make significant progress on
the A350 XWB program. Since the first flight in June, the entire flight envelope has been cleared
and first tests of all major aircraft systems successfully performed. Airbus is now entering the mostcritical phase of the A350 program. The industrial ramp-up preparation is underway and risks
related to the ramp-up and associated cost are being closely monitored in line with the schedule,
aircraft performance and overall cost envelope.
Cassidian has entered into discussions with some of its customers for projects in the “Integrated
System“ business regarding amicable settlements of existing contracts. Financial consequences
will depend on the outcome of these negotiations and cannot be assessed yet.
Research and development expenses increase by -34 M € to -2,179 M € (first nine months
2012: -2,145 M €) mainly reflecting an increase for the A350XWB.

13

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Share of profit from associates under the equity method and other income frominvestments of 252 M € (first nine months 2012: 188 M €) mainly consists of the share of theresult of Dassault Aviation of 174 M € (first nine months 2012: 144 M €). The Dassault Aviation
equity accounted-for income in the first nine months 2013 includes a positive catch-up on 2012
results.
Finance result amounts to -445 M € (first nine months 2012: -337 M €) comprising interest resultof -257 M € (first nine months 2012: -237 M €). Other financial result amounts to -188 M € (firstnine months 2012: -100 M €) and mainly includes the negative impact from foreign exchange
valuation of monetary items (-53 M €, first nine months 2012: +98 M €) and the effects from theunwinding of discounted provisions (-101 M €, first nine months 2012: -118 M €).
The income tax expense of -473 M € (first nine months 2012 adjusted: -337 M €) corresponds toan effective income tax rate of 28% (first nine months 2012: 28%).

7. Significant items of the statement of financial positionNon-current assets
Intangible assets of 13,657 M € (prior year-end: 13,422 M €) include 10,997 M € (prior year-end:
11,003 M €) of goodwill. This mainly relates to Airbus Commercial (6,666 M €), Cassidian(2,725 M €), Astrium (1,235 M €) and Eurocopter (311 M €). The last annual impairment tests
were performed in the fourth quarter of 2012. No triggering event for an impairment test has been
identified during the first nine months 2013. Capitalization for development costs of the A350 XWB
programme started in the second quarter 2012. In the first nine months of 2013, an amount of
196 M € has been capitalized resulting in a total amount of 560 M €.
Property, plant and equipment increase by +361 M € to 15,629 M € (prior year-end: 15,268 M€), including leased assets of 498 M € (prior year-end: 576 M €). The increase is mainly driven by
the A350 programme. Property, plant and equipment also comprise “Investment property”
amounting to 74 M € (prior year-end: 72 M €).
Investments in associates under the equity method of 2,824 M € (prior year-end: 2,662 M €)mainly include the equity investment in Dassault Aviation. The equity investment in Dassault
Aviation includes an IFRS catch-up adjustment for income and other comprehensive income
relating to prior period.
Other investments and other long-term financial assets of 2,102 M € (prior year-end:
2,115 M €) are related to Airbus for an amount of 1,289 M € (prior year-end: 1,288 M €), mainly
concerning the non-current portion of aircraft financing activities.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The increase by +428 M € to 3,229 M € (prior year-end: 2,801 M €) ismainly caused by the positive variation of the non-current portion of fair values of derivative
financial instruments (+302 M €) and by higher prepaid expenses (+147 M €).
Deferred tax assets decrease by -35 M € to 4,488 M € (prior year-end adjusted: 4,523 M €).
The fair values of derivative financial instruments are included in other non-current assets(1,499 M €, prior year-end: 1,197 M €), in other current assets (528 M €, prior year-end: 321 M €),in other non-current liabilities (796 M €, prior year-end: 1,159 M €) and in other current liabilities(449 M €, prior year-end: 852 M €) which corresponds to a total net fair value of +782 M € (prioryear-end: -493 M €). The volume of hedged US dollar-contracts decreases from 83.6 billion US

14

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

dollar as at 31 December 2012 to 80.1 billion US dollar as at 30 September 2013. The US dollar
spot rate is 1.35 USD/ € at 30 September 2013 vs. 1.32 at 31 December 2012. The average US
dollar hedge rate for the hedge portfolio of the Group improves from 1.35 USD/ € as at 31
December 2012 to 1.34 USD/ € as at 30 September 2013.
Non-current securities with a remaining maturity of more than one year decrease by -1,658 M €to 4,329 M € (prior end: 5,987 M €). The movement is related to the cash management policy of
the Group.

Current assets
Inventories of 27,422 M € (prior year-end: 23,216 M €) increase by +4,206 M €. This is mainly
driven by higher unfinished goods and services at Airbus (+2,372 M €), Cassidian (+431 M €) andEurocopter (+362 M €), as well as higher aircraft on stock at Airbus (+369 M €) and Eurocopter(+104 M €).
Trade receivables decrease by -635 M € to 6,155 M € (prior year-end: 6,790 M €), mainly caused
by Cassidian (-414 M €), Astrium (-238 M €) and Eurocopter (-192 M €), partly offset by Airbus(+206 M €).
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The increase of +64 M € to
4,303 M € (prior year-end: 4,239 M €) comprises among others a positive variation of the current
portion of fair values of derivative financial instruments (+207 M €) and an increase of VAT
receivables (+135 M €), mostly offset by a decrease of receivables from related companies (-207M €) and of prepaid expenses (-82 M €).
Current securities with a remaining maturity of one year or less correspond to 3,086 M € (prioryear-end: 2,328 M €) and increase by +758 M €. (Please refer to “non-current securities”).
Cash and cash equivalents decrease from 8,756 M € to 5,048 M € (see also note 8 “Significant
cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 10,063 M € (prior year-end adjusted: 10,403 M €). The decrease is mainly due to a purchase oftreasury shares of -1,913 M € following the implementation of the announced share buy-backprogramme, a cash distribution to shareholders of -467 M € (corresponding to 0.60 € per share),partly compensated by a net income of +1,195 M € and other comprehensive income of +668 M €,Non-controlling interests increase to 39 M € (prior year-end: 25 M €), mainly due to the EFW
transaction (please refer to note 3 “Acquisitions and other M&A transactions”).

Non-current liabilities
Non-current provisions of 10,109 M € (prior year-end adjusted: 9,827 M €) include the noncurrent portion of pension provisions which increases by +286 M € to 6,444 M € (prior year-end
adjusted: 6,158 M €).

15

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

Moreover, other provisions are included in non-current provisions, which decrease by -4 M € to
3,665 M € (prior year-end adjusted: 3,669 M €).
Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions
increase by +843 M € to 4,349 M € (prior year-end: 3,506 M €). This increase is mainly due to theissuance of an inaugural 1 billion US dollar bond with a 10-year maturity placed on the U.S.
institutional market on 9 April 2013. The bonds will pay a fixed coupon of 2.7%. Further, EIB loans
in the amount of 406 M US dollar were issued.
Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, decrease in total by -183 M € to 18,011 M €(prior year-end: 18,194 M €), mainly due to a decrease of negative fair values of financial
instruments (-363 M €). The decrease is partly compensated by higher government refundable
advances of +147 M €, particularly in Airbus (+141 M€) and Eurocopter (+24 M€).

Current liabilities
Current provisions decrease by -1,017 M € to 5,028 M € (prior year-end: 6,045 M €) andcomprise the current portions of pensions (300 M €) and of other provisions (4,728 M €).
Short-term financing liabilities increase by +1,597 M € to 2,870 M € (prior year-end: 1,273 M €),mainly due to transactions related to the commercial paper programme and to repo agreements.
Trade liabilities decrease by -943 M € to 8,974 M € (prior year-end: 9,917 M €), mainly at Airbus(-535 M €), at Astrium (-187 M €), at Eurocopter (-150 M €) and at Cassidian (-64 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They decrease by -620 M € to 30,335 M € (prior year-end: 30,955 M €),mainly due to a decrease of the current portion of negative fair values of financial instruments(-403 M €).

8. Significant cash flow items
Cash (used for) operating activities decreases by -1,088 M € to -2,884 M € (first nine months
2012: -1,796 M €). Gross cash flow from operations (before changes in other operating assets andliabilities) of +2,583 M € decreases compared to the prior period’s level (first nine months 2012:+2,782 M €). Changes in other operating assets and liabilities amount to -5,467 M € (first ninemonths 2012: -4,578 M €), mainly reflecting an increase in inventories due to delivery phasing anda ramp-up for new programmes at Airbus and Eurocopter as well as customer financing activities.
Cash (used for) provided by investing activities amounts to -1,213 M € (first nine months 2012:+1,009 M €). This mainly comprises purchases of intangible assets and property, plant andequipment of -2,082 M € (first nine months 2012: -1,894 M €) (mainly in Airbus) and changes insecurities of +794 M € (first nine months 2012: +2,920 M €).
Cash provided by financing activities increases by +148 M € to +458 M € (first nine months
2012: +310 M €). This mainly comprises changes in treasury shares of -1,913 M € (first ninemonths 2012: -5 M €) and a cash distribution to shareholders of -467 M € (first nine months 2012:-369 M €), more than compensated by changes in long-term and short-term financing liabilities of+2,620 M € (please refer to Note 7 “Significant items of the statement of financial positions”) (firstnine months 2012: +548 M €) and by changes in capital and non-controlling interests of +219 M €16

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

(first nine months 2012: +138 M €), mainly due to the exercise of stock options and the issuance ofshares for 2013 ESOP.

9. Financial instruments
The fair value of a financial instrument is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement
date. Fair values of financial instruments have been determined with reference to available market
information at the end of the reporting period and the valuation methodologies discussed below.
Considering the variability of their value-determining factors and the volume of financial
instruments, the fair values presented herein may not be indicative of the amounts that the Group
could realise in a current market environment. In the case of financial instruments held by EADS,
which are not measured at fair value, the carrying amounts of such instruments correspond moreor less to fair values. The following items are the main exceptions to this general rule:

30 September 2013

Financial Instruments
Total

in M €
Book Value
Other investments and other long-term
financial assets- thereof at cost
Long-term and short-term financing liabilities

Fair Value

374

*)

7,219

7,385

*) Fair value not reliably measurable

For the fair value measurement of financial instruments EADS generally applied the same
methodologies as described in detail in note 34 b) to the 2012 Consolidated Financial Statements.

17

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

The following table allocates the financial assets and liabilities measured at fair value to the threelevels of the fair value hierarchy as of 30 September 2013:
30 September 2013
In M €

Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
Financial assets measured at fair value
through profit or loss

2,666

120

36

2,822

Derivative financial instruments for hedge
relations

-

1,888

8

1,896

Available for Sale financial assets

7,951

279

-

8,230

Total

10,6172,287

44

12,948Financial liabilities measured at fair value
through profit or loss and earn-out
liabilities

-

-208

-51

-259

Derivative financial instruments for hedge
relations--1,050--1,050

Written put options on non-controllinginterests

-

-

-127

-127

Total

-

-1,258-178-1,436

Financial liabilities measured at fair value

The development of financial instruments of Level 3 is as follows:

Financial assets andliabilities on Level 3

Total gains orlosses inBalance atother
1 Janu profit compre
aryor hensie
2013 loss income

Balance
EquityattransSettleme Reclassi- 30 Septemb
actions Issues
nts fication
er 2013

Financial assets
Financial assets
measured at fair value
through profit or loss
Financial instruments forhedge relations
Total

41

-5

-

-

-

-

-

36

8
49

-5

-

-

-

-

-

8
44

-5
1)
-52

+1

-

-

-

5
-

-

0
-51

-57

+1

+1
+1

+2
+2

-101
-101

+3
+8

-32
-32

2)

-127
-178

Financial liabilities
Financial instruments forhedge relations
Earn- out liabilities
Written put options on
non-contr. interest

Total

18

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 20131)

52 M € of earn-outs for entities acquired in 2012 have been recorded within Other Provisions of 2012
Financial Statements and have been reclassified to Level 3 financial liabilities at fair value through profit
or loss.

2)

Reclassification of 32 M € for written put option on non-controlling interests from financial liabilities
recognized at amortised cost.

The fair value of securities included in available-for-sale investments (mainly bonds and money
market funds) is determined by reference to their quoted market price at the end of the reporting
period (level 1). If a quoted market price is not available, fair value is determined on the basis ofgenerally accepted valuation methods on the basis of market information available at the end of
the reporting period (level 2).
EADS determines Level 2 fair values for derivative financial instruments for hedge relations using
recognised valuation techniques such as option pricing models and discounted cash flow models.
The valuation is based on market data such as currency rates, interest rates and credit spreads aswell as price and rate volatilities obtained from recognised vendors of market data.
Financial instruments are classified as Level 3 if their valuation incorporates inputs that are notbased on observable market data, and if the unobservable element has a significant impact on thefair value.
Financial Assets classified as Level 3
The Financial assets measured at fair value that are classified as Level 3 mainly consist of shortterm commodity contracts whose notional amounts vary with the actual volumes of certain
commodity purchases made by the Group in specific months. For fair value measurement
purposes, the notional amounts, being the unobservable input, are set with reference to monthly
commodity volumes that management expects to purchase based on planning forecasts. The fairvalues are otherwise determined using observable market data including quoted interest rates andpricing information obtained from recognised vendors of market data.
A deviation of 10% of actual monthly volumes purchased from expected monthly volumes
purchased would increase or decrease (depending on whether actual volumes are 10% more or
10% less than expected volumes) the total Level 3 fair value of these short term commodity
contracts by 4 M €.
Financial Liabilities classified as Level 3
The Financial liabilities measured at fair value that are classified as Level 3 consist of several
written put options on non-controlling interest (“NCI puts”) of EADS subsidiaries. The fair values ofthese NCI puts (ie the net present value of their redemption amount on exercise) are derived froma discounted cash flow analysis of the latest operating planning figures of the respective entities.
The fair value measurements are performed on an annual basis in line with the operative planning
cycle. For interim financial statements an analysis of the input parameters is performed for
determination of significant changes since the last measurement date that would call for an
adjustment of the value of the put options.
Apart from the detailed five-year operating planning figures, there are two unobservable inputs thatsignificantly affect the values of the NCI puts: the weighted average cost of capital (”WACC”) used
to discount the forecasted cash flows and the growth rate used to determine the terminal value. An
increase (decrease) of the discount rates by 50 basis points results in a decrease (increase) of the19

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

NCI put values by 11 M € (13 M €). An increase (decrease) in the growth rates by 50 basis point
increases (decreases) the NCI put values by 10 M € (9 M €) respectively.
Another element of financial liabilities measured at fair value classified as Level 3 are earn-out
payments that have been agreed with former shareholders of entities acquired by EADS in
business combinations. Fair Value measurement is based on the expectation regarding theachievement of defined target figures by the acquired entity or its ability to close identified
customer contracts.

10. Number of shares
The total number of shares outstanding is 779,479,422 and 821,870,560 as of 30 September 2013
and 2012, respectively. The decrease is mainly affected by the share buy-back programmecomprising 50,748,348 shares in the first nine months 2013. EADS’ shares are exclusively
ordinary shares with a par value of 1.00 €.
During the first nine months 2013, the number of treasury stock held by EADS decreased from
5,226,305 as of 31 December 2012 to 2,803,113 as of 30 September 2013. Shares in the amountof 50,774,040 were bought back from the market, while 53,197,232 shares have been alreadycancelled in the first nine months 2013.
In the first nine months 2013, EADS issued 8,111,822 new shares due to the exercise of stock
options and due to the 2013 Employee Share Ownership Plan (“ESOP”) (in the first nine months
2012: 4,995,464 new shares).
Besides the annual ESOP, a free share plan was implemented during the third quarter due to the
new shareholding structure and governance of the Group. Each eligible employee will be granted
ten free shares in EADS resulting in a distribution of about 1,490,000 shares in November 2013.
Such shares will be bought from the market and therefore have no impact on the issued sharecapital.

11. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
owners of the parent (Net income) by the weighted average number of issued ordinary shares
during the period, excluding ordinary shares purchased by the Group and held as treasury shares:
1 January to
30 September
2013

1 January to
30 September
2012

Net income attributable to equity owners of the parent*)

1,195 M €880 M €

Weighted average number of ordinary shares outstanding

796,762,889

818,525,740

1.50 €

1.08 €

Basic earnings per share*)*) Previous year’s figures are adjusted due to revised IAS 19.

20

14.11.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. The Group’s only
category of dilutive potential ordinary shares is stock options. Since the average price of EADS
th
th
th
th
shares exceeded the exercise price of the 5 , 6 , 7 and 8 stock option plan in the first ninethththmonths of 2013 (in the first nine months 2012: the 5 , 6 and 8 stock option plan), 1,428,686
potential shares (in the first nine months 2012: 1,291,765 shares) were considered in thecalculation of diluted earnings per share.
1 January to
30 September
2013
Net income attributable to equity owners of the parent*)
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share*)

1 January to
30 September
2012

1,195 M €880 M €

798,191,575

819,817,505

1.50 €

1.07 €*) Previous year’s figures are adjusted due to revised IAS 19.

12. Related party transactions
On 5 December 2012, EADS had announced that their Board of Directors and core shareholders
had agreed on a far-reaching change of the company’s shareholding structure and governance.
This agreement aimed at normalising and simplifying the governance of EADS while securing ashareholding structure that allows France, Germany and Spain to protect their legitimate strategicinterests. On 27 March 2013, the shareholders approved in an Extraordinary General Meeting all
resolutions that were required to authorize the Completion (“Consummation”) of the Multiparty
Agreement announced on 5 December 2012. On 2 April 2013, the Completion (“Consummation”)
of the Multiparty Agreement occurred, following the authorization by the shareholders. Previously
existing shareholder agreements were terminated. From this date onwards EADS considers, thatgovernmental shareholders are not meeting the definition of a related party under IAS 24.

Before 2 April 2013, transactions with related parties included the French government, Daimler
AG, Lagardère group and the Spanish government (SEPI) and its related entities. The Group hasentered into various transactions with related entities up to 2 April 2013 that have all been carriedout in the normal course of business.

13. Number of employees
The number of employees as at 30 September 2013 is 144,156 as compared to 140,405 as at
31 December 2012.

21

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

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 material governmental, legal or arbitration proceedings (including
any such proceedings which are pending or threatened), during a period covering at least theprevious twelve months which may have, or have had in the recent past significant effects on
EADS N.V.’s or the Group’s financial position or profitability.

WTO
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 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US
assessing funding to Airbus from European governments. On 1 December 2011, the EU informed
the WTO that it had taken appropriate steps to bring its measures fully into conformity with its
WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the US
did not agree, the matter is now under WTO panel review pursuant to WTO rules.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the
EU assessing funding to Boeing from the US. The EU has cited the failure by the US to implement
the findings prior to the due date of 23 September 2012 in commencing a new proceeding on theadequacy of US compliance.
Exact timing of further steps in the WTO litigation process is subject to further rulings and tonegotiations 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.

Securities Litigation
Following the dismissal of charges brought by the French Autorité des marchés financiers foralleged breaches of market regulations and insider trading rules with respect primarily to the A380
delays announced in 2006, proceedings initiated in other jurisdictions have also been terminated.
Nevertheless, following criminal complaints filed by several shareholders in 2006 (including civil
claims for damages), a French investigating judge is still carrying out an investigation based on thesame facts. It is expected that the investigating judge will decide later in 2013 on whether to close
the file (ordonnance de non-lieu) or to bring the case to trial (renvoi devant le tribunal
correctionnel).

CNIM
On 30 July 2010, Constructions Industrielles de la Méditerrannée (“CNIM”) brought an action
against EADS and certain of its subsidiaries before the commercial court of Paris, alleging anticompetitive practices, breach of long-term contractual relationships and improper termination ofpre-contractual discussions. CNIM is seeking approximately €115 million in damages on a joint

22

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2013

and several basis. On 12 January 2012, the court rejected all of CNIM’s claims, following which
CNIM filed for appeal.

GPT
Prompted by a whistleblower’s allegations, EADS has conducted internal audits andcommissioned an external investigation relating to GPT Special Project Management Ltd. (“GPT”),
a subsidiary that EADS acquired in 2007. The allegations called into question a service contract
entered into by GPT prior to its acquisition by EADS, relating to activities conducted by GPT in
Saudi Arabia. Following the allegations, EADS conducted comprehensive internal audits in 2010that did not detect any violations of law. The UK Serious Fraud Office (the “SFO”) subsequently
commenced a review of the matter. In 2011, EADS retained PricewaterhouseCoopers (“PwC”) to
conduct an independent review, the scope of which was agreed with the SFO. In the period underreview and based on the work it undertook, nothing came to PwC’s attention to suggest that
improper payments were made by GPT. Further, the review did not find evidence to suggest thatGPT or through GPT, any other EADS Group company, asked specific third parties to make
improper payments on their behalves. The PwC review was conducted between November 2011
and March 2012, and a copy of its report was provided by EADS to the SFO in March 2012.
Separately, in August 2012, the SFO announced that it had opened a formal criminal investigation
into the matter. EADS is cooperating fully with this investigation.

Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian
public prosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach oftrust by current and former employees of EADS Deutschland GmbH and Eurofighter Jagdflugzeug
GmbH as well as by third parties relating to the sale of Eurofighter aircraft to Austria in 2003.
EADS is cooperating fully with this investigation and has also engaged external legal counsel toconduct an independent review of the matter which is currently still ongoing.

Commercial disputes
In May 2013, the Group has been notified of a commercial dispute following the decision taken by
the Group to cease a partnership for sales support activities in some local markets abroad. The
Group believes it has solid grounds to legally object to the alleged breach of a commercial
agreement. However, the consequences of this dispute and the potential outcome of any future
procedures to be initiated by the parties cannot be assessed at this stage.
In the course of another commercial dispute, the Group has received in the third quarter 2013 astatement of claim alleging liability for refunding part of the purchase price of a large contract
which the customer claims it was not obliged to pay. The Group believes that this claim whichgoes back many years ago should be dismissed in principle. As always, the outcome of a legal
proceeding is uncertain.

23

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