EADS Results 2000

Philippe Camus - Rainer Hertrich, CEOsAxel Arendt, CFO

Conference call - Amsterdam - March 19th, 2001

1) 2000 Overview
2) Operating performance by activity
3) Financials4) Outlook

1

EADS 2000 financial Highlights
Variationfrom 99Revenues€ 24.2 bn+7%

New orders€ 49.1 bn+50%

Total backlog€ 131.9 bn+29%

EBIT pre-goodwill& exceptional€

1.4 bn+11% *Free Cash Flow€

1.5 bn+673%* net of gain on disposal of SEXTANT in 1999

Î Record level of orders and EBIT on track in spiteof restructuring charges

Key points 8 months after EADS creation
What we said

What we did• Drive industrial consolidation• AIC creation, MBDA, EMAC, EDSN, Patria,cooperation agreement in Russia• Business growth• Revenues growing 7% from 1999,• record order intake growing 50%,
• launch of A380, increase of production rate
• Commitment for METEOR• Positive decision on A400M• Value creation= € 580 m per year

• more than 600 projects identified to create
value over initial target of € 600 m (afterconsolidation of 100% AIC)
• restructuring of Defence & Civil Systems,• First steps of Headquarters streamlining= Integration• EBIT margin target*= 8% in 2004

• 2000 profitability in line with plan
• we raise our 2004 target to 10%* pre goodwill and exceptional

Î EADS is an integrated company with a new increased
profitability target

2Key points 8 months after EADS creation
What we said

What we did• Penetrate the US military market• Agreements with Northrop Grumman in
defence electronics,• defence electronics contract awarded bythe US Navy,• Develop in Services activities• JV with Northrop Grumman formaintenance in the US• Telecom internet services on civil aircraft• FSTA project : tanker aircraft service
packageÎ EADS is reinforcing its core businesses

1) 2000 Overview
2) Operating performance by activity
3) Financials4) Outlook

3

EADS sales breakdown
pro-forma 2000 sales
regional breakdown

pro-forma 2000 revenues
by division
SpaceDefence& Civil Systems

Aeronautics

Rest of theWorld

Military
Transport Aircraft *10% 1%
11%59% Airbus
19%

Asia

10%
9%
28%

Northamerica

53%

Europe* before A400M program

pro-forma 2000 sales
military/civil

pro-forma 2000 backlogregional breakdown
Rest of theWorld

Military

Asia

20%

10%8%

Civil

80%

Northamerica

Europe35%47%

Î A strong business baseAirbus 2000 performance and key drivers€mpro-forma
2000

pro-forma
1999

AIRBUS VISION PROVEN RIGHT

Revenues

14,856

12,639R&D self-financed
in % of revenues

920
6.2%

870
6.9%

and good geographical repartition=> strong resistance to cycles• Strong traffic growth in 2000

EBIT*
in % of revenues

1,412
9.5%

925
7.3%

• A380 successful launch (66 firm commitments

104,387
7.0

79,5006.3• Major step in Revenues and Profit from 2002

Order bookTimes sales* pre- goodwill and exceptional• Year-end 2000 backlog = 1,626 a/c(above 5% in 2000 in every part of the world)
as of March 1st 2001)

with first deliveries of A340-500/600• Commercial success => backlog + 2001

positive first months => production rateincrease (from 311 deliveries in 2000 toaround 450 in 2003)• AIC creation : value creation = € 100 M/year(for 100% of AIC) + € 250 M from EADS = €350 M/year• Strong $ hedged improves future earninggrowthÎ A very strong outlook backed by our backlog

4

Military Transport Aircraft
2000 performance and key drivers€m

KEY DRIVERS

pro-forma
2000

pro-forma
1999

316241• High replacement market

59
18.7%

156.2%• A400M program decided :EBIT*(63)(20)

intents for 228 aircraft

Order bookTimes sales

873
2.8

700
2.9

• World leader on light andRevenues**
R&D self-financed
in % of revenues

potential

medium segment• Mission aircraft project (FSTA)* pre- goodwill and exceptional** figures not comparable in 1999 and 2000

Î A400M order expected in 2001

Aeronautics
2000 performance and key drivers€mpro-forma
2000

pro-forma
1999

FUTURE GROWTH FROM

• Strong market in 2000 forRevenues

4,704

4,280

R&D self-financed
in % of revenues

128
2.7%

121
2.8%

EBIT*
in % of revenues

296
6.3%

202
4.7%

13,067
2.8

8,800
2.1

Order bookTimes sales

MAJOR PROGRAMS
helicopters• Further growth potential of Tiger
and NH90 programs• Positioning of the Maintenancebusiness to profit of the fast growing
Airbus fleet (namely in the US) andfreighter market• Eurofighter program on schedule* pre- goodwill and exceptional

to deliver significant growth andcash; first export success comingwith Greece• EMAC creation

Î A strong increase of profitability

5Space 2000 performance and key drivers
pro-forma
2000

pro-forma
1999

A CHALLENGING COMPETITIVE

Revenues

2,535

2,518

• 6 satellites contracts with major

R&D self-financed
in % of revenues

61
2.4%

692.7%• reliability & dependability of Ariane VEBIT*
in % of revenues

67
2.6%

973.9%• Astrium creation is enhancing process

Order bookTimes sales

4,826
1.9

4,400
1.7

• Opportunities in Services€mENVIRONMENT
customers (Inmarsat and Intelsat)
designed for growing demand of heavy
satellites
optimisation(platform related services strategy)• Creation of an integrated company to lead

* pre-goodwill and exceptional but
including non-recurring expenses :€ 28 m to write off Globalstar€ 37 m of restructuring

efficiently the production of Ariane• M51 contract signed with Frenchgovernment, confirming unique
technological competence in Europe• Reactive, cost driven and flexible

reorganisation plan to seize strategic
opportunities

Î Space 2000 EBIT impacted by non-recurring expenses

Defence & Civil Systems
2000 performance and key drivers€mpro-forma
2000

pro-forma
1999

RESTRUCTURING TO ENSURE ARevenues** 2,909

3,830• Restructuring plan implemented toR&D
in % of revenues

161
5.5%

197
5.1%

EBIT*
in % of revenues

(110)

86
2.2%

Order bookTimes sales

9,722
3.3

9,000
2.3

* pre- goodwill and exceptional but including€ 63 m of restructuring charge**impact of civil telecom deconsolidation is € 550 million

SUCCESSFUL BUSINESS
optimise transition from development
to production secured by backlog...

• Strong backlog (3 years of activity)
secures the success of therestructuring plan

• Missiles export successes : MICA,ASTER, MM40,…confirming strong
competitiveness• METEOR : a technological successand EADS strategy proven right• Telecom : EDSN creation at the righttime: successes (Mexico,…)• Defence electronics : focus on corebusiness; promising win with the US
Navy, agreement with NorthropGrumman,...

Î Deep restructuring to ensure profitable growth61) 2000 Overview
2) Operating performance by activity
3) Financials4) Outlook

Key financial highlights
Pro forma 2000

Pro forma 1999

€ million€ million

Revenues24,208

22,553

EBIT*

1,399

1,445

EBIT* pre-SX disposal

1,399

1,263

Free Cash Flow

1,531

+ 7.3%+10.8%

198in yearsof salesDeviation+673.2%in yearsof salesOrder intake

49,0792.0

32,7001.5+ 50%

Year-end backlog

131,874

5.5

102,400

4.5

+ 29%

* pre-goodwill and exceptional
but including € 262 m of non-recurrent expenses(restructuring and Globalstar write-off)Î A strong growth in Free Cash Flowand an EBIT in line with Plan7

Revenues and EBIT by Division
Pro forma 2000
€ million

Pro forma 1999Revenues

EBIT
pre-goodwill& exceptional

EBIT
margin

Revenues

EBIT
pre-goodwill& exceptional

EBIT
margin14,856

1,412

9.5%

12,639925

7.3%(8.3%)

AirbusMilitary
Transport Aircraft

316(63)(19.9%)

241(20)

Aeronautics

4,704

296

6.3%

4,280

202

4.7%

Space

2,535

67

2.6%

2,518

97

3.9%

Defence &Civil Systems

2,909

(110)

( 3.8%)

3,830

86

2.2%

Elimination &headquarters(1,112)

(203)

(955)

155**

EADS Total

24,2081,399*

22,553

1,445**

5.8%

6.4%

* including € 152 million of restructuring expenses and € 110 m of Globalstar depreciation** of which € 182 m of gain on SEXTANT disposalÎ 2000 EBIT in line with plan, in spiteof heavy restructuring

Pro forma summarised profit & loss
Pro forma 2000€m€ million

in % ofrevenues

Pro forma 1999
€ million

in % ofrevenues

Revenues

24,208

EBITDA

2,334

9.6%

2,124

EBIT pre-goodwill & exceptional

1,399

5.8%

1,445

6.4%

200

0.8%

769

3.6%

Operating income after goodwill/exceptional *Financial resultsof which due to hedging accounting

22,553(1,315)(1,436)(1,846)(1,916)

Income Tax

22033

Minority

(14)

(2)

(909)

(1,046)(1,088)(152)(110)
0(593)(98)
0182

Net income *9.4%* of which, pre-tax :- goodwill & exceptional- restructuring expenses- Globalstar write-off- SEXTANT disposalÎ Net result affected by non-recurring items and, as alreadyexplained, by hedging accounting

8

Free cash flow
pro-forma2000€ million

pro-forma
1999

Net Cash position as of January 1st(946)343Cash flow from operations*

1,699753

Working capital requirement reduction

1,460785

Cash flow from invest. activities(1,628)(1,340)Free cash flow

1,531198

Capital increase

1,5400

Dividend payments **(31)(1,305)

Others49(182)

2,143(946)Net cash position as of Dec. 31st* before working capital requirement reduction** proposed 2000 dividend to be paid in 2001 is about € 400 million

Î An improved cash flow from operations and a strong freecash flow

In 2001, allocate hedging to each underlying
commercial contract• Existing “macro” reduced from $13.6 Bn on January 1st 2000
to $1.4 Bn on January 1st 2001

• Why ?

•Compliance with IAS39 rule effective from January 1st 2001
•Management decision to allocate hedging to each underlying commercialcontract• What does this change mean ?
- for existing “micro” : no change => recorded in EBIT using hedged rate
- for new “micro” : recorded now at the level of EBIT, using forward of 2000
year-end dollar rate
- remaining “macro” : $ 1.4 Bn to be consumed in 2001 ($ 0.5 Bn) and 2002($ 0.9 Bn)- total existing financial provision ( € 1.7 bn as of December 31 2000) of the balance
sheet to be progressively consumed (no cash effect).

Î net result volatility reduced by 90%=> visibility on EPS

9Strong dollar has allowed for hedging that
improves visibility and enhance profitability• Main hedging rules :- hedge on a period that gives visibility and security- hedge only part of already booked orders => no speculative hedging• As of march 1st 2001, existing hedging is roughly $ 28 bn in total(of which only $ 1.4 bn of remaining “macro”)
Ç The hedging of the coming years is as follows :Hedged part in $ bn
in % of firm orders
corresponding $ (for recorded EBIT)

2001*
8.198%
0.99

2002
8.098%
1.00

2003
6.182%
0.98

2004
3.462%
0.95* 12 months

Ç The first A380 firm commitments to be delivered from 2006 to 2008
have also been hedged at dollar stronger than 1€, much better than ourbusiness case assumptions

Î Dollar is an operating variable on which we have
improved control

1) 2000 Overview
2) Operating performance by activity
3) Financials4) Outlook

10A record level of orders and backlog
Year-end 2000 backlog€ bnEADS 2000 orders andrevenues in € billion

Airbus
MTA
Aeronautics
Space
Defence andCivil Systems
Elim. & HQ
Total

34.2

14,949.0

x 2000
sales
7.0
2.8
2.8
1.9

104.4
0.9
13.1
4.8
9.7
(1)
131.9

3.3
5.5

Orders

Revenues

8,3

24.2

4,70,5 0,3

3,0

2,5

3,9 2,9orders revenues
AirbusMilitary
Transport
AircraftAeronautics

Space

Defence &CivilSystems

Î All divisions booked orders higher than revenues
Î Book building ratio is 2.0
Î Backlog represents 5.5 years of activity

Value creation on track• We have already identified more than 600 projects generating
more than € 580 m of value creation per year from 2004
thereon (€600 m with AIC 100% consolidation)• identified projects with expected value creation of around€ 60 m in 2001 (10% of the initial target, as planned)
Some examples :Value creation in 2001

Purchase price negotiation : aluminium,titanium, electrical and electronics parts,
fasteners, group travel services, IT supply,…

€ 35.0 m

Missiles activity : cutting R&D duplications,
Euromissile restructuring,…

€ 2.7 mSatellites activity : project management method
standardisation, streamline heritage of 3
platforms into one, industrial policy
integration,...

€ 3.5 mÎ We deliver in 2001 what has been announced

11

2001 is a year of investment andimplementation of restructuring actions
to secure targeted value creation• Airbus : implement the synergies from Airbus Integrated
Company creation and build-up the success of production
rate increase• Space : cost reduction plan and reorganisation to keepcompetitiveness and opportunities in a market poised tochange• DCS : restructuring year to ensure future profitable growthbacked by an exceptional backlog and state-of-the-arttechnology• Headquarters : streamline

Î Challenging goals to become stronger

Financial outlook•

Continuing strong backlog : book building expected ratio > 1.0 every year(orders/revenues)•

2001 Revenues growth around 15%; from 2001 thereon 6/7% per year,
while controlled growth of headcount ( around 1 % per year)•

2001 EBIT* 15% up in spite of heavier R&D•

2004 EBIT* margin target raised to 10% in 2004 (in spite of the A380 cost)•Free CF = “close to zero” in 2001 and 2002 in spite of the A380 financing ;Strong Free CF generation from 2003•

2000 proposed dividend : € 0.5 per share* pre-goodwill and exceptional

Î Merger integration success and strong backlog
allow to raise our profitability target

12Why to invest in EADS ?
• An exceptional visibility :- € 132 bn record backlog represents more than 5 years of sales- 2001 first months show continuing commercial success- hedging policy => better visibility of the financial markets on ourearning growth• Medium-term profitability target raised :- quick and successful Integration => synergies starting to havepositive impact from 2001

- 2000 year results on track in spite of restructuring provision- current hedging positions secure most of 2001-2004 years at afavourable Dollar exchange rate

Î Growth is secured and profitable => EBIT margin toreach 10% by 2004

BACK-UP

13

EBIT (pre-goodwill exceptional depreciation)
Pro forma 2000

€ million
Revenues

24,208Gross margin

4,136

Gross margin pre-adjustment
on fair value of assets

4,795

Selling Administrative & others(2,510)Research & development

in % ofrevenues

Pro forma 1999

€ million

in % ofrevenues

22,553
16.8%

4,255

18.9%

19.8%4,424

19.6%

10.4%

(2,213)9.8%(1,339)5.5%(1,324)

5.9%

Other operating income

342

1.4%

475

2.1%

Income from investments

111

0.5%

83

0.4%

1,399

5.8%

1,445

6.4%

EBIT*

* pre- goodwill and exceptional

Operating income(after goodwill amortization)
Pro forma 2000

Pro forma 1999

EBIT pre-goodwill & exceptional
income from investment elimination *

1,399
(111)

1,445
(83)

Goodwill amortization

(429)

(424)

fixed assets

(176)

(169)

inventories(483)

0200769€m

Exceptional depreciation
on fair value adjustments on :Operating income* included in financial incomeÎ accelerated depreciation on inventories in 2000

14

Restructuring expenses€mpro-forma
2000

Defence & Civilsystems
SpaceHeadquarters
Total

63
3752152• Defence & Civil Systems : restructuring of Defence electronics
and missile activities• Space : headcount Reduction in Astrium and launcher activity• Headquarters restructuring : headcount reduction throughstreamlining of processes and outsourcing of some functions.

EADS headcountEmployees

pro-forma
2000

pro-forma
1999

Airbus33,927

31,534

MTA

3,548

3,201

Aeronautics

23,091

22,716

Space9,400

9,545

DCS

17,48520,085

Headquarters and R&D centre

1,428

1,550

EADS total

88,87988,63115

Financial result breakdown

Pro forma 2000

€ million

Dec. 31st closing rate Euro versus $Interest expense

Pro forma 1999

0,93

1,00

10(13)

Income from investments

111

83

Cost for hedge accounting(1,436)(1,916)

Total financial result(1,315)(1,846)

Î Strong $ and macro-accounting generated
financial loss in 2000

Cash flow from operations before working
capital reduction€mNet Result

pro-forma
2000

pro-forma
1999

(909)

(1,046)

Minority result

142

Gain on disposal

(77)

(290)

1,540

1,272

Depreciation & amortisation
on fixed assets
Fair value adjustment on inventory

483

Change in accrued liabilities

1,259

838

Change in deferred taxes

(611)

(23)

Total

1,699

753

16Working capital reduction€mpro-forma
2000

Inventory variation(1,201)

Trade receivables

252

Other assets

484

Trade liabilities

479

Other liabilities

1,446

Working Capital reduction

1,460

Cash flow from Investments€mpro-forma
2000

pro-forma
1999(1,291)(1,146)

Financial investments

(722)

(980)

Disposals385

786(1,628)(1,340)

Fixed asset expenditures

Cash Flow From investments

17Balance sheet€ million

pro-forma
2000

pro-forma
1999

Fixed Assetsof which intangible assetsof which property, plant & equipmentof which financial assets
Current Assetsof which cash & equivalents,securitiesof which working capital assets
Deferred Tax Assets
Pre-paid Expenses
Total Assets

20,894
8,165
8,120
4,609
16,745
7,922
8,823
3,151
654
41,444

19,952
8,329
7,693
3,930
13,794
4,750
9,044
2,821
651
37,218

Shareholders´ Equity
Minority interest
Total Accrued Liabilitiesof which Pension
Deferred Tax Liabilities & Income
Other Liabilitiesof which trade liabilitiesof which debt
Total Shareholders´ Equity & Liabilities

10,250
221
8,684
2,986
4,042
18,247
4,268
5,779
41,444

9,377
212
7,432
2,916
4,080
16,117
3,856
5,696
37,218Net cash position at year-end

2,143(946)pro-forma
1999
CORRECTED

pro-forma
1999
RELEASED

Fixed Assetsof which intangible assetsof which property, plant & equipmentof which financial assets
Current Assetsof which cash & equivalents,securitiesof which working capital assets
Deferred Tax Assets
Pre-paid Expenses
Total Assets

19,952
8,329
7,693
3,930
13,794
4,750
9,044
2,821
651
37,21819,711
7,710
7,950
4,051
13,684
4,750
8,934
2,239
651
36,285

Shareholders´ Equity
Minority interest
Total Accrued Liabilitiesof which Pension
Deferred Tax Liabilities & Income
Other Liabilitiesof which trade liabilitiesof which debt
Total Shareholders´ Equity & Liabilities

9,377
212
7,432
2,916
4,080
16,117
3,856
5,696
37,218

8,343
188
7,477
2,916
4,091
16,186
3,734
5,696
36,285

Balance sheet correction€ million

18