EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Year 2012 Report

Unaudited Condensed IFRS Consolidated
Financial Information of EADS N.V.
for the year ended 31 December 2012
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….……...3
Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...……...…4
Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....……………..…5
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..……………...........6
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at 31 December 2012….……………………….…………………..……...…………..…......…...........6
1. The Company………………………………………………………………………………..…..……6
2. Accounting policies……………….………………………………………………..…..……..........7
3. Changes in the consolidation perimeter of EADS ….…………………………………………8
4. Segment information………………………………..…………..……………………..…….....…..95. EBIT pre-goodwill impairment and exceptionals…..……..………………….…………..…..10
6. Significant income statement items………….…………………..………….……………........11
7. Significant items of the statement of financial position…….……………………...…........12
8. Significant cash flow items……………………………………………………..…...…..……….14
9. Number of shares……………………………………………………….....................................14
10. Earnings per share……………………………………..……………….………...……...………..15
11. Related party transactions.………………..…………………...…….……………………..……15
12. Number of employees ……………………………….……………….……………..........………16
13. Litigation and claims …..…………………………….……………….……………..........………16
14. Subsequent events…………………………………………………………………………………18

1

27.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Unaudited Condensed IFRS Consolidated Income Statements

1 January 31 December 2012
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

1 January 31 December 2011

DeviationM€
56,480-48,545
7,935

%
100
-86
14

M€
49,128-42,285
6,843

%
100
-86
14

M€
7,352
-6,260
1,092-3,093-5-2,629-5-464-3,142-5-3,152

-7

10

184

0

359

1

-175

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

247

0

192

0

55

2,131
237
-522
-168
-453
-449
1,229

4
0
-1
0
-1
-1
2

1,613
377
-364
-233
-220
-356
1,037

3
1
-1
0
0
-1
2

518
-140
-158
65
-233
-93
192

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

1,228
1

2
0

1,033
4

2
0

195
-3

Earnings per share

€

€

€

Basic and diluted

1.50

1.27

0.23

2

27.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Incomein M €
Profit for the period
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

1 January 31 December
2012

1 January 31 December
2011

1,229

1,037

-46

-25

1,964

-536

189

-20

-1,031

-747

-211

129

Tax on income and expense recognized directly in equity

-278

331

Other comprehensive income, net of tax

587

-868

Total comprehensive income of the period

1,816

169

1,817
-1
1,816

163
6
169

Actuarial losses on defined benefit plans
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

327.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

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

31 December 2012
M€%

31 December 2011
M€%

Deviation
M€

13,422
15,26815
16

12,786
14,220

14
16

636
1,048

5
7

2,662

3

2,677

3

-15

-1

2,115

2

2,352

3

-237

-10

2,801
4,518
5,987
46,773

3
5
7
51

1,884
4,318
7,229
45,466

2
5
8
51

917
200
-1,242
1,307

49
5
-17
3

23,216
6,790
4,239
2,328
8,756
45,32992,102

25
7
4
3
10
49
100

22,563
6,394
4,503
4,272
5,284
43,01688,482

26
7
5
5
6
49
100

653
396
-264
-1,944
3,472
2,313
3,620

3
6
-6
-46
66
5
4

827
8,153

1
8

820
7,990

1
9

7
163

1
2

1,513

2

153

0

1,360

889

-84
10,40925
10,434

0
11
0
11

-113
8,850
15
8,865

0
10
0
10

29
1,559
10
1,569

-26
18
67
18

9,816
3,506
1,504
18,19433,020

11
4
2
19
36

9,144
3,628
1,043
18,30032,115

10
4
1
21
36

672
-122
461
-106
905

7
-3
44
-1
3

6,045
1,273
9,917
458
30,95548,64881,668
92,102

7
1
11
0
34
53
89
100

5,856
1,476
9,630
308
30,23247,502
79,61788,482

7
2
11
0
34
54
90
100

189
-203
287
150
723
1,146
2,051
3,620

3
-14
3
49
2
2
3
4

%

*) Please refer to Note 3 ‘Changes in the consolidation perimeter of EADS’. Comparative information is adjusted
retrospectively in accordance with IFRS 3.45. Main changes comprise: Intangible assets by +41 M €, property,
plant and equipment by -13 M €, other investments and long-term financial assets by -26 M €, non-controllinginterest by -5 M € and non-current provisions by +19 M €.

427.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Unaudited Condensed IFRS Consolidated Statements of Cash Flows
1 January 31 December 2012
M€
Profit for the period attributable to equity owners of the parent (Netincome)1 January 31 December 2011
M€

1,228

1,033

1

4

Depreciation and amortization

2,053

1,884

Valuation adjustments

607

-104

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

40

103

33

-54

Results on disposals of non-current assets

-21

-29

Results of companies accounted for by the equity method

-241

-164

Change in current and non-current provisions

216

230

Change in other operating assets and liabilities

-76

1,386

3,840

4,289

-3,270-2,197- Proceeds from disposals of intangible assets, PPE

73

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

Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided byoperating activities

Cash provided by operating activities
Investments:- Purchases of intangible assets, PPE-201-1,535- Proceeds from disposals of subsidiaries (net of cash)

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

-328

-312

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

232

77

- Dividends paid by companies valued at equity

46

50

3,422

-378

Cash (used for) investing activities-26-4,198Change in long-term and short-term financing liabilities

-125

414

Cash distribution to EADS N.V. shareholders

-369

-178

Dividends paid to non-controlling interests

-10

-5

Changes in capital and non-controlling interests

144

-65

Change in treasury shares-5-1Cash (used for) provided by financing activities
Effect of foreign exchange rate changes and other valuation adjustments
on cash and cash equivalents

-365

165

23

-2

Net increase in cash and cash equivalents

3,472

254

Cash and cash equivalents at beginning of period

5,284

5,030

Cash and cash equivalents at end of period

8,756

5,284

Change of securities

As of 31 December 2012, EADS’ cash position (stated as cash and cash equivalents in the Unaudited
Condensed IFRS Consolidated Statements of Cash Flows) includes 374 M € (710 M € as of 31
December 2011), which represents EADS’ share in MBDA’s cash and cash equivalents deposited atother shareholders. These funds are available for EADS upon demand.

5

27.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity
in M €
Balance at 1 January 2011

Equityattributable to Non-controlling
equity owners ofinterests
the parent
8,841
95

total
8,936

Profit for the period

1,033

4

1,037

Other comprehensive income

-870

2

-868

Total comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Equity transaction (IAS 27)

163

6

169

-178

-5

-183

-46

-79

-125

Capital increase / change in non-controlling interests

63

3

66

Change in treasury shares

-1

0

-1

Others808Balance at 31 December 2011

8,850

20

8,870

Balance at 1 January 2012

8,850

20

8,870

Retrospective adjustment *)

0

-5

-5

Balance at 1 January 2012, adjusted

8,850

15

8,865

Profit for the period

1,228

1

1,229

589

-2

587

1,817

-1

1,816

-369

-10

-379

144

0

144

Equity transactions (IAS 27)

-46

14

-32

Change in treasury shares

-5

0

-5

Others18

725

10,40925

10,434

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

Balance at 31 December 2012*) Please refer to Note 3 ‚Changes in the consolidation perimeter of EADS‘.

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 31 December 2012
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

627.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Financial Statements for the year ended 31 December 2012 were authorized for issue by EADS’
Board of Directors on 26 February 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 31
December 2012 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”).
The IFRS rules applied by EADS for preparing 2012 year-end Consolidated Financial Statements
are the same as for the previous financial year except for those following the application of new,revised or amended Standards or Interpretations respectively and changes in accounting policies
as detailed below.
a)New, Revised or Amended Standards

The application of the following amended standard is mandatory for EADS for the fiscal year
starting 1 January 2012. The following amended Standard did not have a material impact on
EADS Consolidated Financial Statements as well as its basic and diluted earnings per share.
In October 2010, the IASB issued amendments to IFRS 7 “Financial Instruments: Disclosures” aspart of its comprehensive review of off balance sheet activities relating to transfers of financial
assets. The objective of the amendments is to help users of financial statements evaluate the risk
exposures relating to such transfers and the effect of those risks on an entity’s financial position.
The amendments also require additional disclosures if a disproportionate amount of transfer
transactions are undertaken around the end of a reporting period. The amendments have to be
applied prospectively. They were endorsed in November 2011.
b) New or Amended Interpretations
There are no new or amended interpretations which became effective for the financial period
beginning after 31 December 2011.
c)

New, revised or amended IFRS Standards and Interpretations issued but not yet applied

A number of new or revised standards, amendments and improvements to standards as well asinterpretations are not yet effective for the year ended 31 December 2012 and have not been
applied in preparing these Consolidated Financial Statements. The potential impacts from theapplication of those newly issued standards, amendments and interpretations are either described
below or not expected to be material or still currently under investigation:
IFRS 9 “Financial Instruments” (not yet endorsed);
IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements”, IFRS 12“Disclosure of Interests in Other Entities” and consequential amendments to IAS 27“Separate Financial Statements” and IAS 28 “Investments in Associates and Joint
Ventures”. All of the new or amended standards have been endorsed in December 2012;
Transition Guidance (Amendments for IFRS 10, IFRS 11 and IFRS 12) (not yet
endorsed);
IFRS 13 “Fair Value Measurement” (endorsed in December 2012);

7

27.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Amended version of IAS 19 “Employee Benefits” (endorsed in June 2012). Under theamendment, full recognition of actuarial gains and losses directly in equity, a method
already used by EADS, will become mandatory. Furthermore, the standard will introduce a
net interest approach, under which both plan assets and the defined benefit obligation are
discounted using a single interest rate, and it will require past service costs to be fullyrecognized in the period of 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. Initially applying the amended standard in 2013, EADS’
consolidated profit before finance cost and income taxes will be reduced by approximately
48 M €.
Amendments to IAS 1 “Presentation of Financial Statements” (endorsed in June 2012);
In December 2010, the IASB issued amendments to IAS 12 “Income Taxes” (endorsed in
December 2012) providing practical guidance for the measurement for deferred tax
relating to an asset by introducing the presumption that recovery of the carrying amount ofan asset will normally be through sale. Respective amendments supersede SIC 21“Income Taxes – Recovery of Revalued Non Depreciable Assets”. The amendments areapplicable for annual periods beginning 1 January 2013.
Amendments to IAS 32 “Financial Instruments: Presentation” (endorsed in December2012); andAnnual Improvements 2009-2011 Cycle (not yet endorsed). The amendments refer to
IFRS 1, IAS 1, IAS 16, IAS 32 and IAS 34.
EADS’ accounting policies are not expected to be affected by various other pronouncements
issued by the IASB during the last months.

3. Changes in the consolidation perimeter of EADSFor some M&A transactions recognized during 2011, EADS received new information about facts
and circumstances that existed at the respective acquisition dates of the companies concerned.
According to IFRS 3.45, comparative information is adjusted retrospectively.

The following individually insignificant M&A activities of EADS’ divisions were finalised during thebusiness year 2012 resulting in a total investment of 314 M € and a total goodwill of 199 M €. All
acquired companies contributed a total amount of 65 M € to EADS’ group revenues 2012.
On 3 April 2012, Astrium acquired 66.8% of Space Engineering SpA, Rome (Italy), a specialist indigital telecommunications, RF and antenna equipment engineering for both space and groundbased applications.
On 28 May 2012, Cassidian reduced its current shareholding of 87.4% in Grintek Ewation (Pty)Ltd., Pretoria, South Africa, to 75% to comply with local black economic empowerment (BEE)
requirements.
On 1 July 2012, Cassidian acquired 51% of Rheinmetall Airborne System GmbH, Bremen(Germany), to pursue Rheinmetall’s activities related to Unmanned Aerial Systems (UAS) as wellas cargo loading systems (CLS) together with Rheinmetall within a new entity.

8

27.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

On 1 October 2012, Cassidian acquired 75.1% of the shares of Carl Zeiss Optronics GmbH,
Oberkochen (Germany) with the intention to run the optics and optronics activities of Carl Zeiss
Optronics GmbH together with Carl Zeiss AG. Carl Zeiss Optronics GmbH is a manufacturer of
optronic, optic and precision-engineered products for military and civil applications.
On 16 November 2012, Cassidian acquired 99.8 % of Netasq, Villeneuve d’Ascq (France), a
leading expert and pioneer in the IT security market.
On 20 November 2012, EADS acquired Eltra Holdings Pte Ltd., Singapore (Singapore), anaerospace group involved in various aerospace supply chain and MRO activities.
Finally, Vector Aerospace Corp., Toronto (Canada), expanded its MRO engine business via
several asset deals in the first half year 2012, primarily in the Asia-Pacific region.

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.
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. “Other
Businesses” mainly comprises the development, manufacturing, marketing and sale of regional
turboprop aircraft, aircraft components as well as the Group’s activities managed in the US.
Consolidation effects, the holding function of EADS Headquarters and other activities not allocableto the reportable segments are disclosed in the column “HQ / Conso.”.

927.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

in M €

AirbusCommercial

AirbusMilitary

Eurocopter

Astrium

Other
Total
Cassidian Businessegments
ses

HQ/
Conso.

Consolidated

Year ended 31 December 2012
Revenues
Research anddevelopment
expensesProfit before financeresult and income
taxes
EBIT pre-goodwill
imp. and exceptionals(see definition below)

36,943

2,131

6,264

5,817

5,740

1,524

58,419-1,93956,480-2,431

-11

-297

-128

-234

-12

-3,113-29-3,142

1,100

92

310

308

136

32

1,978

153

2,131

1,125

93

311

312

142

49

2,032

154

2,186

Year ended 31 December 2011
Revenues

31,159

2,504

5,415

4,964

5,803

1,252

51,097-1,96949,128

Research anddevelopment
expenses-2,467

-14

-235

-109

-275

-10

-3,110-42-3,152

Profit before financeresult and income
taxes

517

48

258

263

312

29

1,427

186

1,613

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

543

49

259

267

331

59

1,508

188

1,696

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 €):1027.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012
1 January 31 December
2012

in M €
Profit before finance result and income taxes

1 January 31 December
2011

2,131

1,613

Impairment and disposal of goodwill

17

42

Exceptional depreciation/ disposal (fixed assets in cost of sales)

38

41

2,186

1,696

Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals

6. Significant income statement items
Revenues of 56,480 M € (2011: 49,128 M €) increase by +7,352 M €, mainly at Airbus
Commercial (+5,784 M €), Astrium (+853 M €) and Eurocopter (+849 M €). Except for Airbus
Military and Cassidian, all segments contributed positively to the increase of revenues.
Companies, which were acquired in 2011, contributed to the revenues by 1,552 M € and 455 M €,respectively.
The Gross margin increases by +1,092 M € to 7,935 M € compared to 6,843 M € in 2011. This
improvement is mainly related to better performance of the long range and single aisle programs in
Airbus Commercial and the contribution of governmental helicopter programmes and service
activities in Eurocopter and to Astrium.
Based on an updated technical solution concept to fix permanently the retrofit of the A380 wing rib
issue, an additional amount of -251 M € was recognized in 2012 for the repair costs on delivered
aircraft. Contractually, Airbus Commercial is not liable versus airlines for loss of use, revenue or
profit or for any other direct, incidental or consequential damages related to wing ribs issue.
However, in view of overall commercial relationships, contracts adjustments may occur, and beconsidered on a case by case basis. As disclosed in the half-year 2012 notes, the A350 XWB
Entry Into Service has moved into the second half of 2014. Airbus Commercial booked in the firsthalf-year 2012 a charge of -124 M €, which accounts for an actual delay incurred of around threemonths. In relation to the end of the Hawker 900 business jet programme where Airbus
Commercial was a subcontractor, a charge of -76 M € was recorded in the third quarter 2012.
Eurocopter is continuing its high stake discussions with several NH90 and Tiger customers,
whereby a charge of -101 M € for expected impacts of the renegotiation of governmental programs
is included. Cassidian recognized a restructuring charge (in total) of -98 M €, of which -49 M € areallocated to cost of sales, and an additional expense of -100 M € for impairment charges.
Research and development expenses decrease by +10 M € to -3,142 M € (2011: -3,152 M €)mainly reflecting programs of Airbus Commercial. The main contribution to the expenses comesfrom the A350 XWB programme.
Share of profit from associates under the equity method and other income frominvestments of 247 M € (2011: 192 M €) mainly comprises the share of the result of Dassault
Aviation, which includes a catch-up on 2011 results. Since for the second half-year 2012 nopublished financial information is yet available from Dassault Aviation at the date of authorization
for issue of 2012 financial statements, EADS uses a best estimate for the net income of Dassault
Aviation.

11

27.02.2013

EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Other income decreases by -175 M € to 184 M € (2011: 359 M €) mainly due to a release ofrefundable advances of +192 M € in 2011 in Airbus Commercial, which were related to thetermination of the A340 programme.
Finance result amounts to -453 M € (2011: -220 M €) comprising interest result of -285 M €(2011: +13 M €). Last year it included a positive impact of +120 M € related to a release ofrefundable advances following the termination of the A340 programme. Other financial result
amounts to -168 M € (2011: -233 M €) and mainly includes charges from the unwinding of
discounted provisions (-180 M €, 2011: -172 M €), the negative revaluation of financial instruments(-11 M €, 2011: -94 M €), compensated by the positive impact from foreign exchange valuation ofmonetary items (+41 M €, 2011: +109 M €).
The income tax expense of -449 M € (2011: -356 M €) corresponds to an effective income tax
rate of 27% (2011: 26%).

7. Significant items of the statement of financial positionNon-current assets
Intangible assets of 13,422 M € (prior year-end, adjusted: 12,786 M €) include 11,003 M € (prioryear-end, adjusted: 10,812 M €) of goodwill. This mainly relates to Airbus Commercial (6,670 M €),Cassidian (2,711 M €), Astrium (1,236 M €) and Eurocopter (323 M €). The annual impairment
tests, which were performed in the fourth quarter, led to an impairment charge of 17 M € in Other
Businesses. Capitalization for development costs of the A350 XWB programme started in thesecond quarter 2012. Since 1 April 2012, a total amount of 366 M € was capitalized.
Eliminating foreign exchange-rate effects of +44 M €, property, plant and equipment increase by+1,004 M € to 15,268 M € (prior year-end, adjusted: 14,220 M €), including leased assets of 576 M€ (prior year-end: 574 M €). The increase is mainly driven by the A350 programme. Property,
plant and equipment also comprise “Investment property” amounting to 72 M € (prior year-end: 74
M €).
Investments in associates under the equity method of 2,662 M € (prior year-end: 2,677 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. The 30 June 2012 equity components have been used to estimate the2012 year-end consolidated equity position of Dassault Aviation.
Other investments and other long-term financial assets of 2,115 M € (prior year-end, adjusted:
2,352 M €) are related to Airbus for an amount of 1,273 M € (prior year-end: 1,659 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 +917 M € to 2,801 M € (prior year-end: 1,884 M €) ismainly caused by the positive variation of the non-current portion of fair values of derivative
financial instruments (+711 M €).
Deferred tax assets increase by +200 M € to 4,518 M € (prior year-end, adjusted: 4,318 M €).
The fair values of derivative financial instruments are included in other non-current assets(1,197 M €, prior year-end: 486 M €), in other current assets (321 M €, prior year-end: 404 M €), inother non-current liabilities (1,159 M €, prior year-end: 2,140 M €) and in other current liabilities

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012(852 M €, prior year-end: 995 M €) which corresponds to a total net fair value of -493 M € (prioryear-end: -2,245 M €). The volume of hedged US dollar-contracts increases from 75.1 billion US
dollar as at 31 December 2011 to 83.6 billion US dollar as at 31 December 2012. The US dollar
spot rate is USD/ € 1.32 at 31 December 2012 vs. 1.29 at 31 December 2011. The average US
dollar hedge rate for the hedge portfolio of the Group improves from 1.37 USD/ € as at 31
December 2011 to 1.35 USD/ € as at 31 December 2012.

Current assets
Inventories of 23,216 M € (prior year-end: 22,563 M €) increase by +653 M €. This is mainly
driven by higher unfinished goods and services at Airbus (+724 M €) and Eurocopter (+195 M €)programmes, partly offset by Cassidian (-131 M €) and Astrium (-75 M €).
Trade receivables increase by +396 M € to 6,790 M € (prior year-end, adjusted: 6,394 M €),mainly caused by Airbus (+214 M €), Eurocopter (+145 M €) and Astrium (+60 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 -264 M € to
4,239 M € (prior year-end: 4,503 M €) comprises among others a decrease of VAT receivables(-129 M €) and of receivables from related parties (-114 M €).
Cash and cash equivalents increase from 5,284 M € to 8,756 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 10,409 M € (prior year-end: 8,850 M €). The increase is mainly due to a net income of +1,228 M€ and other comprehensive income of +589 M €, partly compensated by a cash distribution toshareholders of -369 M €.
Non-controlling interests increase to 25 M € (prior year-end, adjusted: 15 M €).

Non-current liabilities
Non-current provisions of 9,816 M € (prior year-end, adjusted: 9,144 M €) include the noncurrent portion of pension provisions with an increase of +493 M € to 6,121 M € (prior year-end:
5,628 M €), which is partly offset by additional funding to plan assets. Compared to year-end 2011,
the discount rates applied to the calculation of pension provisions decrease from 4.5 % to 3.7 %(Germany), from 4.75 % to 3.5 % (France) and from 4.8 % to 4.5 % (UK), leading to an increase of
the pension provision with a corresponding effect in deferred tax assets and actuarial losses inequity.
Moreover, other provisions are included in non-current provisions, which increase by +179 M € to
3,695 M € (prior year-end, adjusted: 3,516 M €). This mainly reflects the increase of the onerous
contract provision for the A350 XWB, where a charge of 124 M € has been recorded in the firsthalf-year 2012.
Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions,decrease by -122 M € to 3,506 M € (prior year-end: 3,628 M €).

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, decrease in total by -106 M € to 18,194 M €(prior year-end, adjusted: 18,300 M €), mainly due to a decrease of fair values for financial
instruments (-981 M €), mostly offset by higher advance payments received (+625 M €) and anincrease in refundable government advances (+228 M €).

Current liabilities
Current provisions increase by +189 M € to 6,045 M € (prior year-end, adjusted: 5,856 M €) andcomprise the current portions of pensions (312 M €) and of other provisions (5,733 M €).
Trade liabilities increase by +287 M € to 9,917 M € (prior year-end: 9,630 M €), mainly at Airbus(+599 M €) and at Eurocopter (+336 M €), partly offset by Astrium (-410 M €) and Cassidian(-259 M €).
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They increase by +723 M € to 30,955 M € (prior year-end: 30,232 M €).
Other current liabilities mainly comprise current customer advance payments of 25,333 M € (prioryear-end: 25,006 M €), increasing by +327 M €.

8. Significant cash flow items
Cash provided by operating activities decreases by -449 M € to +3,840 M € (2011: +4,289 M€). Gross cash flow from operations (before changes in other operating assets and liabilities) of+3,916 M € improves compared to the prior period’s level (2011: +2,903 M €). Changes in otheroperating assets and liabilities amount to -76 M € (2011: +1,386 M €), reflecting a ramp-up andthus an increase in inventories at Airbus and Eurocopter, which are nearly offset by customer
advance payments received at Airbus and Astrium.
Cash (used for) investing activities amounts to -26 M € (2011: -4,198 M €). This mainlycomprises purchases of intangible assets and property, plant and equipment of -3,270 M € (2011:-2,197 M €) (mainly in Airbus) and payments for investments in associates and other investments
and long-term financial assets of -328 M € (2011: -312 M €), nearly balanced out by a change insecurities of +3,422 M € (2011: -378 M €). Compared to prior year, investing activities are also
affected by lower volume of business acquisitions in 2012 (-201 M € versus -1,535 M € in 2011).
Cash (used for) provided by financing activities decreases by -530 M € to -365 M € (2011:+165 M €). The cash distribution to shareholders of -369 M € (2011: -178 M €) and changes inlong-term and short-term financing liabilities of -125 M € (2011: +414 M €) are partly offset bychanges in capital and non-controlling interests of +144 M € (2011: -65 M €) mainly related to theissuance of new shares due to the exercise of stock options and due to the 2012 Employee Stock
Ownership Plan.

9. Number of shares
The total number of shares outstanding is 827,367,945 and 814,896,511 as of 31 December 2012
and 2011, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

During the year 2012, the number of treasury shares held by EADS decreased from 5,585,780 asof 31 December 2011 to 5,226,305 as of 31 December 2012.
In 2012, EADS issued 5,261,784 new shares (in 2011: 1,712,892 new shares) as a result of theexercise of stock options in compliance with the implemented stock option plans. Under the 2012
Employee Stock Ownership Plan, which was granted in June 2012, 2,177,103 shares were issuedin July 2012. For the 2011 Employee Stock Ownership Plan 2,445,527 shares were issued.

10. 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
31 December
2012
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding
Basic earnings per share

1 January to
31 December
2011

1,228 M €1,033 M €819,378,264

812,507,288

1.50 €

1.27 €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 in 2012 the average price of
th
th
th
th
EADS shares exceeded the exercise price of the 5 , 6 and 8 stock option plan (in 2011: the 4thand the 5 stock option plan), 1,173,667 potential shares (in 2011: 1,194,624 shares) wereconsidered in the calculation of diluted earnings per share.

1 January to
31 December
2012
Net income attributable to equity owners of the parent
Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share

1 January to
31 December
2011

1,228 M €1,033 M €820,551,931

813,701,912

1.50 €

1.27 €

11. Related party transactions
The Group has entered into various transactions with related companies in 2012 and 2011 thathave all been carried out in the normal course of business. As it is the Group’s policy, related party
transactions have to be carried out at arm’s length. Transactions with related parties include theFrench government, Daimler AG, Lagardère group and the Spanish government (SEPI) and its

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EADS N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

related entities. Except for the transactions with the French and Spanish government, suchtransactions are not considered material to the Group either individually or on aggregate. The
transactions with the French government include mainly sales from Eurocopter, Astrium, Cassidianand Airbus Military. The transactions with the Spanish government include mainly sales from
Airbus Military and Cassidian. The French and Spanish government are also customers of the
A400M programme.
On 5 December 2012, EADS announced that their Board of Directors and core shareholders haveagreed on a far-reaching change of the company’s shareholding structure and governance. Thisagreement aims at normalising and simplifying the governance of EADS while securing ashareholding structure that allows France, Germany and Spain to protect their legitimate strategicinterests. Subject to customary regulatory conditions and the approval of the shareholders in an
Extraordinary General Meeting, the implementation of the changes shall be closed in 2013.

12. Number of employees
The number of employees as at 31 December 2012 is 140,405 as compared to 133,115 as at
31 December 2011.

13. 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.
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.

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

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Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

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
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 concerning GPT Special Project Management Ltd.
(“GPT”), an EADS subsidiary, and certain aspects of the conduct of its business in Saudi Arabia,
EADS conducted comprehensive internal audits in 2010 which did not detect any violations of law.
To enable further investigation of the case, EADS engaged PricewaterhouseCoopers (“PwC”),
which conducted an independent review into certain allegations made about GPT, the scope of
which was agreed with the UK Serious Fraud Office (“SFO”). In the period under review and basedon 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 that GPT 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.

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Unaudited Condensed IFRS Consolidated Financial Information for the year ended 31 December 2012

Eurofighter Austria
In March 2012, a 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 launched its own independent
review into the matter by outside legal counsel.
14. Subsequent events
On 31 January 2013, ST Aerospace Ltd., Singapore (Singapore) acquired a 35% equity stake inElbe Flugzeugwerke, Dresden (Germany) (EFW) to support the establishment of a strategic
partnership for the development of an A330 passenger-to-freighter conversion program. EADS as
the former sole shareholder retains 65% of the shares of EFW. In 2012 EFW contributed 207 M €to EADS group revenues on a preconsolidated base.

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