EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

First Half-year 2007 Report

Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the first half-year 2007
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Income Statements for the second quarter of 2007
and 2006…………………………………………………………………………………................................3
Unaudited Condensed IFRS Consolidated Balance Sheets….…..………….……………...……...…4
Unaudited Condensed IFRS Consolidated Cash Flow Statements……………....…...…………..…5
Unaudited Condensed IFRS Consolidated Statements of Recognised
Income and Expenses…………………………………………………….…………………………………..6
Additional Information: Unaudited Condensed IFRS Consolidated Reconciliation of Movementin Equity attributable to equity holders of the parent and Minority interests…..…………….....…7
Condensed Notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at June 30, 2007……...….…………………………………………….…………...…………..….....…....7
1. The Company……………………………………………………………………………………..…..7
2. Accounting policies……………….………………………………………………..…………….....7
3. Changes in the consolidation perimeter of EADS…………………………....…….……….....9
4. Segment information………………………………..…………..…………………………..……....95. EBIT pre-goodwill impairment and exceptionals…..……..…………………………………..11
6. Significant income statement items………….…………………..………….………..……......11
7. Significant balance sheet items…………………...…………………………………...……......12
8. Significant cash flow items……………………………………………………..…...…..……….14
9. Number of shares………………………………………………………..........................….....…15
10. Earnings per share……………………………………..……………….………...………,……….15
11. Related party transactions ………………..…………………...…….……………………..……16
12. Number of employees ……………………………….……………….……………..........………16
13. Subsequent events ……………………………….……………………………..…….………..…16

1

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Unaudited Condensed IFRS Consolidated Income Statements

January 1 June 30, 2007
Revenues*)
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses
Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance costs andincome taxes
Interest income
Interest expenses
Other financial result
Finance costs*)
Income taxes
Profit for the period*)
Attributable to:Equity holders of the parent(Net income)*)Minority interests

Earnings per share
*)
Basic
*)
DilutedM€
18,493-15,9782,515January 1 June 30, 2006

%
100
-86
14

M€
18,980-15,352
3,628-1,191-7-1,268

Deviation

%
100
-81
19

M€
-487
-626
-1,113%-1,132

-6

-59

5

-7

-1,139

-6

-129

11

132

1

196

1

-64

-33

143

1

69

0

74

107

331
230
-334
-108
-212
-34
85

2
1
-2
-1
-2
0
0

1,622
218
-274
-89
-145
-440
1,037

8
1
-1
-1
-1
-2
5

-1,291
12
-60
-19
-67
406
-952

-80
6
22
21
46
-92
-92

71
14

0
0

1,056
-19

6
-1

-985
33

-93
-174

-3
4
-31

€

€

€

0.09
0.09

1.32
1.31

-1.23
-1.22

*) For retrospective adjustments concerning the first half-year 2006 please refer to Note 2 “Accounting policies” and Note 10“Earnings per share”.

2

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Unaudited Condensed IFRS Consolidated Income Statements for the second
quarter 2007 and 2006

April 1 June 30, 2007
Revenues
Cost of sales *)Gross margin
Selling, administrative & otherexpenses
Research and development
expenses
Other income
Share of profit from associates andother income from investments
Profit before finance costs andincome taxes
Interest income
Interest expenses
Other financial result
Finance costs*)
Income taxes
Profit for the period*)
Attributable to:Equity holders of the parent(Net income) *)Minority interests

Earnings per share
Basic *)
Diluted *)

M€
9,509
-8,112
1,397

April 1 June 30, 2006

%
100
-85
15

M€
9,897
-7,973
1,924

-565

-6

-718
88

Deviation

%
100
-81
19

M€
-388
-139
-527

%

-557

-6

-8

-8

-603

-6

-115

19

1

40

0

48

120

52

1

44

1

8

18

254
126
-199
-39
-112
-50
92

3
1
-2
0
-1
-1
1

848
122
-149
-56
-83
-225
540

8
1
-1
-1
-1
-2
5

-594
4
-50
17
-29
175
-448

-70
3
34
-30
35
-78
-83

81
11

1
0

534
6

5
0

-453
5

-85
83

-4
2
-27
1

€

€

€

0.10
0.10

0.67
0.66

-0.57
-0.56

*) For retrospective adjustments concerning the second quarter 2006 please refer to Note 2 “Accounting policies” and Note 10“Earnings per share”.

3

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Unaudited Condensed IFRS Consolidated Balance Sheets
June 30, 2007
M€%

December 31, 2006
M€%

10,863
14,32115
20

10,855
14,315

15
20

8
6

0
0

2,110

3

2,095

3

15

1

1,561

2

1,666

2

-105

-6

3,519
2,543
2,486
37,403

5
3
3
51

4,231
2,624
1,294
37,080

6
4
2
52

-712
-81
1,192
323

-17
-3
92
1

19,246
4,426
5,077
772
6,539
36,060

26
6
7
1
9
49

16,892
4,852
4,545
549
8,143
34,981

23
7
6
1
11
48

2,354
-426
532
223
-1,604
1,079

14
-9
12
41
-20
3

0

0

76

0

-76

-100

Total assets

73,463100

72,137

100

1,326

2

Total equity
Equity attributable to equity holders of
the parent
Capital StockReserves
Accumulated other comprehensive
incomeTreasury shares

818
7,838

1
11

816
7,593

1
11

2
245

0
3

4,444

6

4,955

7

-511

-10

-357
12,743
159
12,902

0
18
0
18

-349
13,015
137
13,152

0
19
0
19

-8
-272
22
-250

2
-2
16
-2

9,129
3,370
2,423
13,37528,297

12
5
3
18
38

9,063
3,561
2,465
12,68027,769

13
5
3
17
38

66
-191
-42
695
528

1
-5
-2
5
2

3,558
2,230
7,058
239
19,17932,264

5
3
10
0
26
44

3,631
2,196
7,461
218
17,64631,152

5
3
10
0
25
43

-73
34
-403
21
1,533
1,112

-2
2
-5
10
9
4

0

0

64

0

-64

-100

60,561
73,46382
100

58,985
72,137

81
100

1,576
1,326

3
2

Non-current assets
Intangible assets
Property, Plant and Equipment
Investments in associates under theequity method
Other investments and long-term
financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Other current assets
Current securities
Cash and cash equivalents
Non-current assets / disposalgroups classified as held for sale

Minority interests
Non-current liabilities
Non-current provisions
Long-term financial liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Short-term financial liabilities
Trade liabilities
Current tax liabilities
Other current liabilities
Liabilities directly associated with
non-current assets classified asheld for sale
Total liabilities
Total equity and liabilities

4

Deviation
M€%

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Unaudited Condensed IFRS Consolidated Cash Flow Statements
January 1 - June 30, January 1 - June 30,
2007
2006
M€
M€
Profit for the period attributable to equity holders of the parent (Netincome)1)
Profit (loss) attributable to minority interests
Adjustments to reconcile profit for the period (net income) to cash
provided by operating activities
Depreciation and amortization
1)
Valuation adjustments and CTA release
Deferred tax expense
Change in tax assets, tax liabilities and provisions for actual
income tax
Results of disposal of non-current assets
Results of companies accounted for by the equity method
Change in current and non-current provisions
Change in other operating assets and liabilities
Cash provided by operating activities- Purchase of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE- Acquisitions of subsidiaries and joint ventures (net of cash)- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-term financial assets- Proceeds from disposals of associates and otherinvestments and long-term financial assets- Dividends paid by companies valued at equity- Increase in equipment of leased assets- Proceeds from disposals of leased assets- Increase in finance lease receivables- Decrease in finance lease receivables
Disposals of non-current assets / disposal groups classified asheld for sale and liabilities directly associated with non-current
assets classified as held for sale2)
Change of securities
Cash (used for) provided by investing activities2)
Change in long-term and short-term financial liabilities
Cash distribution to EADS N.V. shareholders
Payments related to liability for puttable instruments
Capital increase
Purchase of treasury shares
Cash (used for) financing activities
Effect of foreign exchange rate changes and other valuation
adjustments on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents2)
Cash and cash equivalents at beginning of period2)
Cash and cash equivalents at end of period2)

71
14

1,056
-19

810
379
156

805
55
216

62
-110
-78
1,005
-1,676
633
-947
71
0
35

89
-271
-48
-81
-1,219583-1,118
72
-20
81

-323

-91

327
39
-18
34
-4
87

505
46
-6
23
-5
35

26
-1,411-2,084
-72
-97
0
42
-8
-135

214
1,638
1,374
405
-520
-129
82
-41
-203

-18
-1,604

-25
1,729

8,143
6,539

5,386
7,115

1) For retrospective adjustments concerning the first half-year 2006 due to the revised IAS 19 “Employee benefits” please refer
to Note 2 “Accounting policies”.
2) For retrospective adjustments concerning the first half-year 2006 of “Cash and cash equivalents” please refer to Note 2“Accounting policies” and Note 8 ”Significant cash flow items”.

As of June 30, 2007, EADS’ cash position (stated as cash and cash equivalents in the unaudited
consolidated cash flow statements) includes 667 M € (597 M € as of December 31, 2006), which

526.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

represent EADS’ share in MBDA’s cash and cash equivalents deposited at other shareholders. These
funds are available for EADS upon demand.

Unaudited Condensed IFRS Consolidated Statements of Recognised Income
and Expenses
January 1 June 30, 2007

January 1 June 30, 2006

Foreign currency translation differences for foreign operations

-67

-192

Changes in fair value of cash flow hedges

-604

1,672

Net change in fair value of available-for-sale financial assets

in M €-39

9

Changes in actuarial gains and losses

400

-22

Others-470

Tax on income and expense recognised directly in equity

57

-579

Income and expenses recognised directly in equity

-300

888

85

1,037

-215

1,925

-235
20
-215

1,944
-19
1,925

*)

Profit for the period *)Total recognised income and expense of the period
Attributable to:Equity holders of the parent
Minority interests
Total recognised income and expense of the period*) For retrospective adjustments concerning the first half-year 2006 due to the revised IAS 19 “Employee benefits” please refer
to Note 2 “Accounting policies”.

6

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Additional Information: Unaudited Condensed IFRS Consolidated
Reconciliation of Movement in Equity attributable to equity holders of theparent and Minority interests
Equityattributable toequity holders of
the parent
13,726in M €
Balance at January 1, 2006

Minority
interests

total
176

13,902

-672

-23

-695

13,054153

13,207

Total recognised income and expenses

1,944

-19

1,925

Cash distribution to shareholders

-520

0

-520

Capital Increase

82

0

82

Disposals of treasury shares

-41

0

-41

Others20

525

Balance at June 30, 2006

14,539139

14,678

Balance at January 1, 2007

13,015

137

13,152

Total recognised income and expenses

-235

20

-215

Cash distribution to shareholders

-97

0

-97

Capital Increase

42

0

42

Purchases of treasury shares

-8

0

-8

Others26

2

28

12,743

159

12,902Retrospective adjustments*)

Balance at January 1, 2006, adjusted*)

Balance at June 30, 2007*) For retrospective adjustments as of January 1, 2006 and concerning the first half-year 2006 please refer to Note 2“Accounting policies”.

Condensed Notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at June 30, 2007
1. The Company
The accompanying Condensed Interim Consolidated Financial Statements (unaudited) present theoperations of European Aeronautic Defence and Space Company EADS N.V. and its subsidiaries(“EADS” or the “Group”), a Dutch public limited liability company (Naamloze Vennootschap) legallyseated in Amsterdam (Le Carré, Beechavenue 130-132, 1119 PR, Schiphol-Rijk, The
Netherlands), and are prepared and reported in Euros (“€”). EADS’ core business is the
manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the first half-year 2007 were authorized for issue by EADS’ Board of
Directors on July 25, 2007.
2. Accounting policies
These Condensed Interim Consolidated Financial Statements have been prepared in accordancewith IAS 34 Interim Financial Reporting as adopted by the European Union (EU). EADS’
Consolidated Financial Statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”), adopted by the International Accounting Standards Board (“IASB”)

7

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

as endorsed by the EU as at June 30, 2007. They comprise (i) IFRS, (ii) International AccountingStandards (“IAS”) and (iii) Interpretations originated by the International Financial Reporting
Interpretations Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
As of January 1, 2007, the following amendment to existing Standards, new Standard and newInterpretations became mandatory to EADS. The corresponding announcements have beenreleased by the IASB throughout 2005 and 2006:
EADS applies new IFRS 7 “Financial Instruments: Disclosures” and the complementary
amendment to IAS 1 “Presentation of Financial Statements” regarding “Capital Disclosures”(August 2005). Furthermore, EADS applies new Interpretations IFRIC 7 “Applying the Restatement
Approach under IAS 29”, IFRIC 8 ”Scope of IFRS 2”, IFRIC 9 “Reassessment of Embedded
Derivatives” and IFRIC 10 “Interim Financial Reporting and Impairment”.
IFRS 7 Financial Instruments: Disclosures
The application of IFRS 7 will lead to disclosures in the annual financial statements regarding thesignificance of EADS’ different financial instruments. Many of these requirements have previously
been covered by IAS 32. In addition, the Standard requires the disclosure of qualitative andquantitative information about an entity’s risk exposure arising from these financial instruments,
including sensitivity analyses of market risks.
Amendment to IAS 1 Presentation of Financial Statements – Capital Disclosure
The IAS 1 amendment introduces new qualitative and quantitative annual disclosure requirements
regarding managing capital in order to provide useful information for assessing an entity’s risk
profile as well as its ability to withstand unexpected adverse events. The requirements include
information about an entity’s objectives, policies and processes for managing capital as well as
quantitative data about what it regards as capital.
The application of the IAS 1 amendment and new IFRS 7 will lead to additional disclosures in
EADS’ annual Consolidated Financial Statements prepared for year end 2007. However, neither
the new Standard, nor the amendment, nor the new Interpretations mentioned above have a major
impact on these Condensed Interim Consolidated Financial Statements.
Amendment to IAS 19 Employee Benefits
With the application of amended IAS 19 “Employee Benefits” in 2006, EADS changed its
accounting policy regarding the recognition of actuarial gains and losses which led to retrospective
adjustments in the Consolidated Financial Statements for the prior period presented:
The amendment to IAS 19 introduced the recognition of actuarial gains and losses outside theincome statement within retained earnings as a third option (“Equity Option”). As of January 1,
2006, EADS applied the newly introduced alternative and changed its accounting policy regarding
the recognition of actuarial gains and losses arising from defined benefit plans for its 2006
Consolidated Financial Statements from the formerly applied corridor approach. Variations ofactuarial gains and losses are now directly recognised in equity in the period in which they occur.
Prior period figures presented have been adjusted accordingly as required under IAS 8“Accounting Policies, Changes in Accounting Estimates and Errors” (please refer to Note 7“Significant balance sheet items”).
Compared to the corridor approach, the accounting of actuarial gains and losses as at January 1,
2006 led to an increase in pension provision of 1,118 M € and in deferred tax assets of 423 M €and to a decrease in equity of 672 M € and in minority interests of 23 M €.
The 2006 change in the accounting policy for the recognition of actuarial gains and losses from thecorridor to the equity approach implied the reversal of actuarial gains and losses under the corridor

8

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

approach accounted for as expenses. In the first half-year 2006, the application of the equity
approach led to positive impacts of 22 M € to EBIT and 13 M € to Net Income. This impact on the
EBIT has been allocated to Airbus (+6 M €), Eurocopter (+4 M €), Defence & Security (+8 M €),Astrium (+2 M €) and Headquarters (+2 M €).
Since 2006 year-end closing, EADS accounts for its participation in BAE Systems’ UK pension
plans by applying defined benefit accounting based on information provided by BAE Systems in
December 2006. Before that date, the information provided by BAE Systems was judged not to be
sufficient to identify EADS’ share in the UK pension schemes for accounting purposes.
Consequently in previous years, EADS had expensed the contributions made to the pension
schemes as if the plans were defined contribution plans.
The new 2006 information basis resulted in a change in accounting estimates as at 2006 year-end
closing and was accounted for accordingly under IAS 8 “Accounting Policies, Changes in
Accounting Estimates and Errors”.
The inclusion of EADS’ share in BAE Systems’ pension schemes as of December 31, 2006, withthe application of the newly introduced equity approach contributed 897 M € to the total increase inpension provisions, 44 M € to the increase of deferred tax assets, 827 M € to the decrease inequity and 26 M€ to the decrease in minority interests.
Cash and cash equivalents
For 2006 year-end Consolidated Financial Statements EADS restricted its interpretation of the
cash equivalents’ definition as provided in IAS 7 “Cash Flow Statements” to better reflect its shortterm investment strategy. IAS 7 states that “cash equivalents are held for short-term cash
commitments […], must be readily convertible to a known amount of cash and be subject to an
insignificant risk of changes in value. Therefore, an investment normally qualifies as a cash
equivalent only when it has a short-term maturity of, say, three months or less from the date ofacquisition.” EADS now strictly limits its cash equivalents to such investments having a maturity of
three months or less from acquisition date. Prior periods have been adjusted accordingly as
required under IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”.
Besides consequential changes as mentioned above the accounting policies used in the
preparation of the Condensed Interim Consolidated Financial Statements are consistent with thoseused for the annual Consolidated Financial Statements for the year ended December 31, 2006,
which are disclosed as an integral part of the Group’s Annual Report 2006. The annual
Consolidated Financial Statements were authorised for issue by EADS’ Board of Directors on
March 8, 2007.
3. Changes in the consolidation perimeter of EADSIn January 2007, EADS transferred its naval business to the Atlas Elektronik group. In connection
with this contribution, EADS increased its percentage of ownership from 40% to 49%. Atlas
Elektronik group is proportionately consolidated.
Following an agreement dated January 10, 2007, EADS sold the remaining 60% shares ofSogerma Services as well as the shares of its subsidiaries Barfield and Sogerma Tunisia.
Apart from these transactions, other acquisitions or disposals by the Group that occurred in thefirst half-year of 2007 are not material.
4. Segment information
The Group operates in five divisions (segments) which reflect the internal organizational andmanagement structure according to the nature of the products and services provided.

926.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

• Airbus — Development, manufacturing, marketing and sale of commercial jet aircraft of morethan 100 seats and the development and manufacturing of aircraft for military use.
• Military Transport Aircraft — Development, manufacturing, marketing and sale of militarytransport aircraft and special mission aircraft.
• Eurocopter — Development, manufacturing, marketing and sale of civil and military helicoptersand maintenance services.
• Defence & Security — Development, manufacturing, marketing and sale of missiles systems;
military combat and training aircraft; provision of defence electronics, defence-related
telecommunications solutions; and logistics, training, testing, engineering and other related
services.
• Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructuresand launchers; and provision of space services.
The following table presents information with respect to the Group’s business segments.
Consolidation effects, the holding function of EADS headquarters and other activities not allocableto the divisions are disclosed in the column “HQ/ Conso.”. “Other Businesses” comprises thedevelopment, manufacturing, marketing and sale of regional turboprop aircraft and lightcommercial aircraft, aircraft components as well as civil and military aircraft conversion andmaintenance services.

in M €

AirbusMilitary
Transport
AircraftEurocopter

Defence &Security

Astrium

Other
HQ/ Conso.
Businesses

Consolidated

Six months ended June 30, 2007
Revenues

12,889

307

1,644

2,235

1,420

608

-610

18,493

Research anddevelopment
expenses-1,070

-10

-38

-83

-34

-3

-30

-1,268

19

-29

35

77

47

49

169

367

13,154

1,244

1,473

2,274

1,273

660

-1,09818,980

-952

-8

-35

-91

-31

-3

-19

-1,139

1,497

6

88

104

38

-143

64

1,654

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

Six months ended June 30, 2006
Revenues
Research anddevelopment
expenses
EBIT pre-goodwill
imp. and exceptionals(see definition below)*)*) For retrospective adjustments concerning the first half-year 2006 please refer to Note 2 “Accounting policies”.

10

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

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.
A reconciliation from Profit before finance costs and income taxes to EBIT pre goodwill impairment
and exceptionals is set forth in the following table (in M €):January 1June 30, 2007

January 1June 30, 2006

331

1,622

Disposal of Goodwill

120

Fair value adjustments

24

32

367

1,654

in M €
Profit before finance costs and income taxes *)Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals*)*) For retrospective adjustments concerning the first half-year 2006 please refer to Note 2 “Accounting policies”.

6. Significant income statement items
Revenues of 18,493 M € (first half-year 2006: 18,980 M €) decrease by 3% mainly due to MTA(no milestone recognition achieved in the A400M program in the first half-year of 2007 ascompared to the first half-year 2006). This was partly compensated by positive developments at
Eurocopter and Astrium.
The Gross Margin decreases by -1,113 M € to 2,515 M € compared to 3,628 M € in the first halfyear 2006. This decrease mainly results from Airbus (in particular due to the negative impact
resulting from accrued “Power 8” restructuring charges, A350 XWB launch charges and the impactof A380 program) whereas Astrium and Defence & Security record slightly increased levels ofgross margins.
Research and development expenses of -1,268 M € (first half-year 2006: -1,139 M €) mainly
increase because of aircraft programs and more research & technology efforts at Airbus. With
A380 development moving from basic to continuing development, EADS capitalized no further
development costs for A380 in the first half-year of 2007 (in the first half-year 2006: 145 M €).
EADS started their amortization on a straight line basis (-37 M €).
Other income decreases by -64 M € to 132 M €, mainly due to the non-recurring gain of 106 M €resulting from the sale of LFK GmbH and TDW GmbH to MBDA Group accounted for in the firsthalf-year 2006.
Share of profit from associates under the equity method and other income frominvestments of 143 M € (first half-year 2006: 69 M €) is mainly influenced by the result ofDassault Aviation of 77 M € (first half-year 2006: 48 M €). The result in the first half-year 2007 of
Dassault Aviation includes positive 2006 IFRS catch up adjustments amounting to +19 M €.
Additionally in the first half of 2007, the sale of EADS’ interest in Embraer resulted in a nonrecurring gain of 46 M €.

11

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Net finance costs amount to -212 M € (first half-year 2006: -145 M €) including the update of thepresent value of A380 and A350 provisions in Airbus division which are discounted under IFRS
principles.
Income taxes of -34 M € (first half-year 2006: -440 M €) correspond to an effective income tax
rate of 28.6 %.

7. Significant balance sheet items
Non-current assets
Intangible assets of 10,863 M € (prior year-end: 10,855 M €) include 9,570 M € (prior year-end:
9,565 M €) of Goodwill. It mainly stems from Airbus (6,374 M €), Defence & Security (2,474 M €),Astrium (582 M €) and Eurocopter (111 M €). The annual impairment tests, which were performedat the end of the year, did not lead to any impairment charges. No triggering events for a new
impairment test are identified as of June 30, 2007.
Eliminating foreign exchange-rate effects of -44 M €, property, plant and equipment increase by+50 M € to 14,321 M € (prior year-end: 14,315 M €), including leased assets of 1,836 M € (prioryear-end: 1,992 M €). Property, plant and equipment comprises “Investment property” amounting
to 133 M € (prior year-end: 137 M €).
Investments in associates under the equity method of 2,110 M € (prior year-end: 2,095 M €)increase due to the change in the equity investment in Dassault Aviation, amounting to 2,009 M €(prior year-end: 1,985 M €).
Other investments and long-term financial assets of 1,561 M € (prior year-end: 1,666 M €) areallocated to Airbus in the amount of 1,008 M € (prior year-end: 1,012 M €), mainly concerning thenon-current portion of aircraft financing activities. The decrease is mainly justified by the sale of
Embraer shares (-123 M €).
Non-current other assets mainly comprise “Non-current derivative financial instruments” and“Non-current prepaid expenses”. The decrease by -712 M € to 3,519 M € (prior year-end:
4,231 M €) is mainly caused by the variation of the non-current portion of fair values of derivative
financial instruments (-725 M €).
Deferred tax assets of 2,543 M € (prior year-end: 2,624 M €) are presented as non-current assets
as required by IAS 1.
Non-current securities increase by +1,192 M € to 2,486 M € (prior year-end: 1,294 M €) due to ahigher level of investments in medium-term securities.
The fair values of derivative financial instruments are included in non-current other assets with
an amount of 2,510 M € (prior year-end: 3,235 M €), in current other assets (2,124 M €, prior yearend: 2,007 M €), in non-current provisions (306 M €, prior year-end: 152 M €) and in current
provisions (19 M €, prior year-end: 79 M €) which corresponds to a total net fair value of 4,309 M €(prior year-end: 5,011 M €). The volume of hedged US dollar-contracts increases from 45.1 bn US
dollar as at December 31, 2006 to 46.7 bn US dollar as at June 30, 2007. The US dollar exchange
rate became less favourable (USD / € spot rate of 1.35 at June 30, 2007 vs. 1.32 at December 31,2006). The average US dollar hedge rate for the hedge portfolio of the Group changed from 1.16
as at December 31, 2006 to 1.21 as at June 30, 2007 (US dollar / € rate respectively).

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Current assets
Inventories of 19,246 M € (prior year-end: 16,892 M €) increase by 2,354 M € in all divisions. Thisis mainly driven by a higher level of unfinished goods and services (mostly for A400M (+432 M €)and for A380 (+261 M€))and advance payments made (+268 M €) at Airbus, an increase in
Eurocopter (+513 M €), mainly concerning NH 90 and Tiger, a higher level of unfinished goods
and services at Defence and Security (+358 M €) and a higher work in progress at Astrium (+358
M €) boosted by Astrium’s service and space transportation businesses.
Other current assets include “Current portion of long-term financial assets”, “Current otherassets”, “Current tax assets” and “Current prepaid expenses”. The increase of +532 M € to 5,077
M € (prior year-end: 4,545 M €) comprises among others a +120 M € increase in value added tax
claims.
Cash and cash equivalents decrease from 8,143 M € to 6,539 M €.

Total equity
Equity attributable to equity holders of the parent (including purchased treasury shares) amounts
to 12,743 M € (prior year-end: 13,015 M €). The decrease is mainly due to income and expenses
recognised in equity of -235 M €, primarily resulting from consumption as well as changes in fairvalues of derivative financial instruments. The negative amount includes positive changes in
actuarial gains and losses (please refer to “Non-current provisions”). Moreover, a cash distribution
to shareholders leads to an additional reduction in equity. The January 1, 2006 figure had beenadjusted retrospectively by -672 M € because of the application of the Equity option of IAS 19 as
amended in 2006 (please refer to Note 2 “Accounting policies”).
Minority interests increase to 159 M € (prior year-end: 137 M €) due to the allocation ofrecognised income and expenses.

Non-current liabilities
Non-current provisions of 9,129 M € (prior year-end: 9,063 M €) comprise the non-current
portion of pension provisions with a decrease of -284 M € to 5,318 M € (prior year-end: 5,602 M €).
Compared with year-end 2006, the assumed discount rate in Euro-countries for the calculation ofpension provisions increases from 4.5 % to 5.2 %, thus leading to a decrease in the net actuarial
losses of -400 M €. Since EADS applies the equity approach for actuarial gains and losses, theeffect is considered in non-current pension provisions with a corresponding net of tax increase inequity (please refer to Note 2 “Accounting policies” and “Equity”). Actuarial gains and losses for
the EADS’ share in BAE Systems’ pension schemes have not been adjusted, since not allnecessary information is available.
Moreover, other provisions are included in non-current provisions, which increase by +350 M € to
3,811 M €. A large part of the increase is dedicated to the non-current portion of the restructuringprovisions for the “Power 8” program. Provisions for derivative financial instruments according to
IAS 39 increased by +154 M € to 306 M €. Other provisions include among others aircraft
financing activities and obligations for settlement and buy-out charges for the A380 and A350
programs. A reclassification to “Other non-current liabilities” is made for those obligations for whichan agreement is signed.
Long-term financial liabilities of 3,370 M € (prior year-end: 3,561 M €), excluding foreignexchange-rate effects of -36 M €, decrease by -155 M € in particular due to Airbus.

13

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

Other non-current liabilities comprise “Non-current other liabilities” and “Non-current deferredincome” and increase in total by +695 M € to 13,375 M € (prior year-end: 12,680 M €). They
mainly include non-current customer advance payments received of 6,513 M € (prior year-end:
6,308 M €) and the non-current portion of European Government refundable advances amounting
to 5,008 M € (prior year-end: 5,029 M €). The main part of non-current deferred income of 971 M €(prior year-end: 1,110 M €) is linked to deferred revenues of Airbus and ATR according to Residual
Value Guarantee clauses. The remaining portfolio, which is included in non-current deferredincome, is depreciated over the guaranteed period. Moreover, obligations from signed agreements
for settlement or buy-out charges in connection with the A380 and A350 programs have been
reclassified from “Non-current other provisions”.

Current liabilities
Current provisions decrease by -73 M € to 3,558 M € (prior year-end: 3,631 M €) and comprisethe current portions of pensions (267 M €) and other provisions (3,291 M €). The reduction mainlyreflects a decrease in miscellaneous other provisions (-466 M €), including a reclassification to“Other current liabilities” regarding signed agreements of settlement charges in connection with theA380 program. The decrease is partly compensated by an increase due to the current portion of
restructuring provisions for the “Power 8” program (+323 M €).
Short-term financial liabilities of 2,230 M € (prior year-end: 2,196 M €) increase by +34 M €.
Trade liabilities decrease by -403 M € to 7,058 M € (prior year-end: 7,461 M €), mainly comingfrom Airbus (-406 M €), Military Transport Aircraft (-73 M €) and Defence & Security (-68 M €),partly offset by Eurocopter (+167 M €).
Other current liabilities include “Current other liabilities” and “Current deferred income”. They
increase by +1,533 M € to 19,179 M € (prior year-end: 17,646 M €). Other current liabilities mainlycomprise current customer advance payments of 15,567 M € (prior year-end: 14,172 M €).
Obligations from signed agreements in connection with the A380 program have been reclassified
from “Current provisions”.
8. Significant cash flow items
Cash provided by operating activities increases by +50 M € to 633 M € (first half-year 2006:
583 M €). Gross cash flow from operations (excluding working capital change) with 2,309 M €exceeds prior year’s level (first half-year 2006: 1,802 M €), while changes in other operating assets
and liabilities (working capital change) amount to -1,676 M € (first half-year 2006: -1,219 M €).
Cash used for (provided by) investing activities amounts to -2,084 M € (first-half year 2006:
1,374 M €). This comprises purchases of intangible assets and property, plant and equipment,
namely in Airbus and Astrium, customer financing activities of Airbus and a net purchase of
securities of -1,411 M €.
Cash used for financing activities improves by +68 M € to -135 M € (first half-year 2006:-203 M €). The outflow mainly contains the cash distribution to shareholders and the net
repayment of financial liabilities.
Since EADS restricted its interpretation of the cash equivalents definition (please refer to Note 2“Accounting policies”), cash and cash equivalents at January 1, 2006 were decreased from 9,546
M € to 5,386 M € and at June 30, 2006 from 9,307 M € to 7,115 M €. The amounts concerned
have been reclassified to securities. Consequently the line “change in securities” for the first halfyear 2006 records an amount of 1,638 M €, compared to -330 M € under the previous
interpretation. Cash provided by investing activities is shown with an amount of 1,374 M €,14

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

compared to -594 M € before. Instead of a decrease of -239 M €, cash and cash equivalents
increase by +1,729 M € during the first half-year 2006.
9. Number of shares
The total number of shares outstanding is 803,684,354 and 800,081,334 as of June 30, 2007 and2006, respectively. EADS’ shares are exclusively ordinary shares with a par value of 1.00 €.
During the first half-year 2007, the number of treasury shares held by EADS increased from13,800,531 as of December 31, 2006 to 14,663,571 as of June 30, 2007.
378,566 new shares (in the first half-year 2006: 4,117,940 shares) were issued as a result of theexercise of stock options in compliance with the implemented stock option plans. Under the 2007
Employee Stock Ownership Plan, 2,037,835 shares were issued in May 2007. (In 2006, no
Employee Stock Ownership Plan was issued).
10. Earnings per share
Basic earnings per share are calculated by dividing loss (profit) for the period attributable toequity holders of the parent (Net loss / income) by the weighted average number of issued
ordinary shares during the period, excluding ordinary shares purchased by the Group and held astreasury shares:
January 1 toJune 30, 2007

January 1 to June30, 2006

Net loss/income attributable to equity holders of the parent

71 M €

1,056 M €Weighted average number of ordinary shares outstanding

802,298,558

798,747,495

0.09 €

1.32 €

Basic earnings per share

The effect from applying in the first half-year 2006 the IAS 19 equity approach instead of thepreviously applied corridor approach contributes 0.01 € to basic earnings per share. For further
details please refer to Note 2 “Accounting policies”.

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
shares during the first half-year 2007 exceeded the exercise price of the stock options under the
1st, 2nd, 4th and 5th stock option plans (in the first half-year of 2006: the 1st, 2nd, 3rd, 4th, 5th and 6thstock option plans) initiated by the Group, the inclusion of the related potential ordinary shares
increases the weighted average number of shares. 2,743,717 shares (first half-year 2006:
6,810,912 shares) are considered dilutive according to IAS 33.
January 1 toJune 30, 2007

January 1 to June30, 2006

Net loss/income attributable to equity holders of the parent

71 M €

1,056 M €Weighted average number of ordinary shares outstanding(diluted)

805,042,275

805,558,407

0.09 €

1.31 €

Diluted earnings per share15

26.07.2007

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the six months period ended June 30, 2007

The effect from applying in the first half-year 2006 the IAS 19 equity approach instead of thepreviously applied corridor approach contributes 0.02 € to diluted earnings per share. For further
details please refer to Note 2 “Accounting policies”.
11. Related party transactions
The Group has entered into various transactions with related companies in the first half-year 2007
and 2006 that have all been carried out in the normal course of business. As is the Group’s policy,
all related party transactions have to be carried out at arm’s length. Transactions with relatedparties include the French State, DaimlerChrysler, Lagardère, and SEPI (Spanish State). Except
for the transactions with the French State, such transactions are not considered material to theGroup either individually or in the aggregate. The transactions with the French State include
mainly sales from the Eurocopter, Defence & Security and Astrium divisions.
Mr. Jean-Paul Gut, an EADS Board and Executive Committee member, has been notified on June11, 2007, of his departure from the company. On the basis of the terms of Mr. Jean-Paul Gut’s
employment contract, EADS is committed to pay: A four-months notice period (up to September
30, 2007); a termination package (2 years of total gross annual income) and an indemnity aiming
at compensating his accumulated pension rights at the date of his departure. In addition, EADS
considers the possibility to conclude with Mr. Jean-Paul Gut a long-term Service Provider’s
Agreement, in order to retain Mr. Gut’s specific expertise in the field of marketing and M&A
activities.
12. Number of employees
The number of employees at June 30, 2007 is 116,848 as compared to 116,805 at December 31,
2006.
13. Subsequent events
Following recent changes in the A400M program management, modifications in the costorganisation structure and recent developments in the course of the production program, EADS
intends to analyse the A400M estimate-at-completion in the second half-year 2007 and if
necessary account for any resulting adjustments accordingly.
A reduction in the future income tax rate from 39 % to 30 % in Germany(“Unternehmenssteuerreform 2008”) has been enacted on July 6, 2007 and has therefore to be
applied in the third quarter 2007. A revaluation of the net deferred tax balance for German
companies will be performed in the third quarter 2007 with only minor impacts expected.
Starting in the second half-year 2007, EADS will implement a contractual trust arrangement (CTA)
following the Board of Directors’ decision to fund pension obligations with an amount to be
determined each year. Funds transferred into the CTA will only be available to cover spending of
EADS’ future pension payments. The initial contribution will be 500 M € in the second half-year,
mirrored by a corresponding decrease of the pension provision.

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