EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

First three quarters 2008 Report
Unaudited Condensed Consolidated
Financial Information of EADS N.V.
for the nine-month period ended September 30, 2008
Unaudited Condensed IFRS Consolidated Income Statements ………………………………......…2
Unaudited Condensed IFRS Consolidated Income Statements for the third quarterof 2008 and 2007…………………………….…………………………………….......................................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 Expense..…………………………………………………….…………………………………..6
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at September 30, 2008……...….…………………………………….…………...…………..….....…....7
Additional Information: Unaudited Condensed IFRS Consolidated Reconciliation of Movementin Equity attributable to equity holders of the parent and Minority interests…..…………….....…7
1. The Company……………………………………………………………………………………..…..7
2. Accounting policies……………….………………………………………………..…………….....8
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 balance sheet items…………………...…………………………………...……......12
8. Significant cash flow items……………………………………………………..…...…..……….16
9. Number of shares………………………………………………………..........................….....…16
10. Earnings per share……………………………………..……………….………...………,……….16
11. Related party transactions ………………..…………………...…….……………………..……17
12. Number of employees ……………………………….……………….……………..........………17
13. Litigation and claims.. ……………………………….……………….……………..........………17
14. Subsequent events ……………………………….……………………………..…….………..…18

1

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Unaudited Condensed IFRS Consolidated Income Statements

January 1 September 30, 2008
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expensesM€
29,440-24,323
5,117

January 1 September 30, 2007

%
100
-83
17

M€
27,551-24,815
2,736-1,591-5-1,792
94

Deviation

%
100
-90
10

M€
1,889
492
2,381

%

-1,656-665-6-1,903

-7

111

-6

0

194

0

-100

-52

7
-2
87
-4

Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit (loss) before finance costs
and income taxes
Interest income
Interest expenses
Other financial result
Finance costs
Income taxes
Profit (loss) for the period

155

1

211

1

-56

-27

1,983
479
-469
-328
-318
-567
1,098

7
2
-2
-1
-1
-2
4

-418
373
-556
-277
-460
178
-700

-2
1
-2
-1
-2
1
-3

2,401
106
87
-51
142
-745
1,798

-574
28
-16
18
-31
-419
-257

Attributable to:Equity holders of the parent /Net income (loss)
Minority interests

1,082
16

4
0

-705
5

-3
0

1,787
11

-253
220

Earnings per share
Basic
Diluted

€

€

€

1.34
1.34

-0.88
-0.88

2.22
2.22

Note: For retrospective adjustments concerning the first nine months 2007 please refer to Note 3 “Changes in the consolidation
perimeter of EADS”.

2

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Unaudited Condensed IFRS Consolidated Income Statements for the third
quarter of 2008 and 2007

July 1 September 30, 2008
Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses
Other income

M€
9,701
-7,730
1,971

July 1 September 30, 2007

%
100
-80
20

M€
9,195
-8,949
246

-538

-5

-662

Deviation

%

M€

%

100
-97
3

506
1,219
1,725

6
-14
701

-482

-5

-56

12

-7

-637

-7

-25

4

32

0

65

1

-33

-51

45

1

68

1

-23

-34

Profit (loss) before finance result
and income taxes
Interest income
Interest expenses
Other financial result
Finance result
Income taxes
Profit (loss) for the period

848
189
-169
154
174
-335
687

9
2
-2
2
2
-4
7

-740
148
-222
-169
-243
209
-774

-7
2
-3
-2
-3
2
-8

1,588
41
53
323
417
-544
1,461

-215
28
-24
-191
-172
-260
-189

Attributable to:Equity holders of the parent / Net
income (loss)
Minority interests

679
8

7
0

-776
2

-8
0

1,455
6

-188
300

Share of profit from associates andother income from investments

Earnings per share
Basic
Diluted

€

€

€

0.84
0.84

-0.97
-0.96

1.81
1.80

Note: For retrospective adjustments concerning the third quarter 2007 please refer to Note 3 “Changes in the consolidation
perimeter of EADS”.

3

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Unaudited Condensed IFRS Consolidated Balance Sheets
September 30, 2008
M€%

December 31, 2007
M€%

11,06012,57715
16

10,832
13,489

14
18

228
-912

2
-7

2,302

3

2,238

3

64

3

1,575

2

1,553

2

22

1

2,355
3,512
2,946
36,327

3
5
4
48

3,543
2,705
2,691
37,0515
4
3
49-1,188
807
255
-724

-34
30
9
-2

19,919
5,089
4,934
5,654
4,327
39,923

26
7
6
7
6
52

18,906
4,639
5,713
1,598
7,549
38,405

25
6
8
2
10
51

1,013
450
-779
4,056
-3,222
1,518

5
10
-14
254
-43
4

444

0

0

0

444

Total assets

76,694100

75,456

100

1,238

2

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

815
8,601

1
11

814
7,406

1
9

1
1,195

0
16

2,661

4

5,076

7

-2,415-48-146
11,931
143
12,074

0
16
0
16

-206
13,09085
13,175

0
17
0
17

60
-1,15958-1,101

-29
-9
68
-8

7,368
3,009
2,448
16,45029,275

10
4
3
22
39

8,055
3,090
2,188
14,88028,213

11
4
3
20
38

-687
-81
260
1,570
1,062

-9
-3
12
11
4

4,252
962
7,153
136
22,62035,123

6
1
9
0
29
45

4,378
1,724
7,398
179
20,38934,068

6
2
10
0
27
45

-126
-762
-245
-43
2,231
1,055

-3
-44
-3
-24
11
3

222

0

0

0

222

64,62076,69484
100

62,28175,456

83
100

2,339
1,238

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 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
Liabilities directly associated with
non-current assets classified asheld for sale
Total liabilities
Total equity and liabilities

4

Deviation
M€

%

4
2

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Unaudited Condensed IFRS Consolidated Cash Flow Statements

Profit (loss) for the period attributable to equity holders of theparent (Net income (loss))
Profit for the period attributable to minority interests
Adjustments to reconcile profit (loss) for the period to cash
provided by operating activities
Depreciation and amortization
Valuation adjustments
Deferred tax expense (income)Change in income tax assets, income 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 sale
Change in securities
Cash used for investing activities
Change in long-term and short-term financing liabilities
Cash distribution to EADS N.V. shareholders
Dividends paid to minority interests
Change in minority interests and capital increase
Change in treasury shares
Cash used for financing activities
Effect of foreign exchange rate changes and other valuation
adjustments on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

January 1 September 30, 2008
M€

January 1 September 30, 2007
M€

1,082
16

-705
5

1,159
354
389

1,194
673
-78

-121
-27
-128
-377
713
3,060
-1,066
19
-197
2

13
-121
-142
2,177
-1,9101,106-1,343
135
0
31

-104

-526

113
50
0
57
-96
129

401
39
-29
322
-155
104

0
-4,357-5,450
-790
-97
-3
26
39
-825

26
-2,013-3,008
-681
-97
-1
43
2
-734

-7
-3,222-47-2,683

7,549
4,327

7,900
5,217

Note: For retrospective adjustments concerning the first nine months 2007 please refer to Note 3 “Changes in the consolidation
perimeter of EADS”.

5

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

As of September 30, 2008, EADS’ cash position (stated as cash and cash equivalents in theunaudited condensed consolidated cash flow statements) includes 543 M € (602 M € as of December
31, 2007), which represent EADS’ share in MBDA’s cash and cash equivalents deposited at othershareholders. These funds are available for EADS upon demand.

Unaudited Condensed IFRS Consolidated Statements of Recognised Income
and Expense
January 1 September 30,
2008

January 1 September 30,
2007

15

-153

-3,423121

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

-92

-68

Changes in actuarial gains and losses

300

400

0

-8

972

-50

Income and expense recognised directly in equity-2,228242

Profit (loss) for the period

1,098

-700

Total recognised income and expense of the period-1,130-458-1,15020-1,130

-493
35
-458

in M €
Foreign currency translation differences for foreign operations
Changes in fair value of cash flow hedges

OthersTax on income and expense recognized directly in equity

Attributable to:Equity holders of the parent
Minority interests
Total recognised income and expense of the period

Note: For retrospective adjustments concerning the first nine months 2007 please refer to Note 3 “Changes in the consolidation
perimeter of EADS”.

6

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at September 30, 2008

Additional Information: Unaudited Condensed IFRS Consolidated
Reconciliation of Movement in Equity attributable to equity holders of theparent and Minority interests

in M €
Balance at January 1, 2007

Equityattributable toequity holders of
the parent
13,015

Minority
interests

total
137

13,152

Total recognised income and expense

-493

35

-458

Cash distribution to shareholders

-97

-1

-98

Capital Increase

43

1

44

Change in minority interests

0

-94

-94

Change in treasury shares

2

0

2

Others44044Balance at September 30, 2007

12,51478

12,592

Balance at January 1, 2008

13,09085

13,175

Total recognised income and expense-1,15020-1,130Cash distribution to shareholders

-97

-3

-100

Capital Increase

24

1

25

Change in minority interests

0

41

41

Change in treasury shares

39

0

39

Others25-1

24

11,931

143

12,074

Balance at September 30, 2008

Note: For retrospective adjustments concerning the first nine months 2007 please refer to Note 3 “Changes in the consolidation
perimeter of EADS”.

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 nine-month period ended September 30, 2008 were authorized for
issue by EADS’ Board of Directors on November 13, 2008.

7

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

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”)
as endorsed by the EU. They comprise (i) IFRS, (ii) International Accounting Standards (“IAS”)
and (iii) Interpretations originated by the International Financial Reporting Interpretations
Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
The Condensed Interim Consolidated Financial Statements do not include all the information anddisclosures required in the annual financial statements, and should be read in conjunction with the
EADS’s Consolidated Financial Statements as of December 31, 2007.
New Interpretations
The following Interpretation has become effective as of January 1, 2008:
IFRIC 11 “IFRS 2 – Group and Treasury Share Transactions" (endorsed June 1, 2007). The
application of IFRIC 11 did not have an impact on EADS’ Consolidated Financial Statements.

Endorsement by the EU for IFRIC 12 is expected in the first quarter 2009 and for IFRIC 14 before
the end of 2008:
IFRIC 12 “Service Concession Arrangements” (issued November 30, 2006). EADS is currently
investigating potential impacts from the application of IFRIC 12.
IFRIC 14 “IAS 19 – The Limit of a Defined Benefit Asset, Minimum Funding Requirements andtheir Interaction” (issued July 5, 2007). The application of IFRIC 14 is not expected to have an
impact on EADS’ Consolidated Financial Statements.
Besides consequential changes as mentioned above the accounting policies used in the
preparation of the EADS’ Condensed Interim Consolidated Financial Statements are consistent
with those used for the annual Consolidated Financial Statements for the year ended December
31, 2007, which are disclosed as an integral part of the Group’s Annual Report 2007. The annual
Consolidated Financial Statements were authorised for issue by EADS’ Board of Directors on
March 10, 2008.
3. Changes in the consolidation perimeter of EADSThe percentage of the proportionate consolidation of MBDA has changed from 50 % to 37.5 % asof January 1, 2007 reflecting EADS ownership in MBDA. Income statement, cash flow statement,
statement of recognised income and expense, reconciliation of movement in equity, segment
information and the reconciliation to EBIT pre-goodwill impairment and exceptionals have beenadjusted retrospectively for prior period figures published in prior year’s condensed nine-month
period consolidated financial information.
On April 22, 2008, EADS acquired PlantCML California / USA, a leading provider of emergency
response solutions, which is fully consolidated from that date. The difference between thepurchase price and the acquired net assets (not yet finally determined) led to the recognition of apreliminary goodwill of 207 M €.

8

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

On July 28, 2008, EADS acquired an additional 41% of Spot Image, Toulouse / France, a world
leader in the provision of satellite imagery and geo-information value-added services. Thereby,
EADS increased its stake in Spot Image to 81% and consolidates it fully. This additional purchase
led to the recognition of a goodwill of 2 M €.
Apart from these transactions, other acquisitions or disposals by the Group that occurred in thenine-month period ended September 30, 2008 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.
• 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” mainly comprises
the development, manufacturing, marketing and sale of regional turboprop aircraft and lightcommercial aircraft, aircraft components as well as civil and military aircraft conversion andmaintenance services.

913.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

in M €

AirbusMilitary
Transport
AircraftEurocopter

Defence &Security

Astrium

Other
HQ/ Conso.
Businesses

Consolidated

Nine-m onth period ended September 30, 2008
Revenues

19,445

1,949

2,781

3,490

2,749

1,106

-2,08029,440Research anddevelopment
expenses-1,462

-5

-89

-117

-56

-7

-56

-1,792

Profit (loss) before
finance costs andincome taxes

1,484

-69

164

212

137

63

-8

1,983

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

1,501

-68

164

219

140

63

-1

2,018

Nine-m onth period ended September 30, 2007*)
Revenues

18,856

1,014

2,599

3,149

2,191

967

-1,22527,551

Research anddevelopment
expenses-1,586

-13

-61

-118

-52

-6

-67

-1,903

Profit (loss) before
finance costs andincome taxes

-694

-145

112

107

68

66

68

-418

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

-677

-144

113

126

71

66

92

-353

*)

For change of percentage in proportionate consolidation of MBDA please refer to Note 3 “Changes in the consolidation
perimeter of EADS”. Some minor activities have been transferred to “Other Businesses”.

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 €):10

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Janua ry 1 Sept em ber 30 ,2008

Jan uary 1Se ptem be r 30,
2 007

1,983

-418

Disposal of Goodwill

012

Fair value adjustments

35

53

2,018

-353

in M €
Profit (loss) before finance costs and income taxes
Goodw ill and exceptionals:

EBIT pre-goodwill impairment and exceptionals

Note: For retrospective adjustments concerning the first nine months 2007 please refer to Note 3 “Changes in the
consolidation perimeter of EADS”.

6. Significant income statement items
Revenues of 29,440 M € (first nine months 2007 retrospectively adjusted by -216 M € to 27,551 M€) increase by 7% despite an unfavorable US Dollar impact, supported by higher activities in alldivisions. Airbus delivers more commercial aircraft (349 units versus 330 in the first nine months
2007) and Defence and Eurocopter also record increased volumes. The increase also includes
803 M €, resulting from the move to the early stage accounting methodology in the A400M
contract (see “inventories” in note 7).
The Gross Margin increases by +2,381 M € to 5,117 M € compared to 2,736 M € in the
retrospectively adjusted first nine months of 2007. This improvement is mainly related to Airbus inparticular due to the higher impact in the first nine months 2007 of charges resulting from therevised delivery schedule for the A400M, A350XWB burdens and accrued Power8 restructuring
charges. In the first nine months 2008, all divisions increase their level of gross margins. Strong
operational performance with delivery ramp-up, Power8 savings and improvements in all divisions
further contribute to the increase in the gross margin.
Research and development expenses of -1,792 M € (first nine months 2007: -1,903 M €) mainlyreflect a decrease for the Airbus A380-800 partly compensated by an increase on the A350XWB
program.
Other income decreases by -100 M € to 94 M € (first nine months 2007: 194 M €). In the first ninemonths 2007, other income included among others gains from the sale of land and buildings.
Share of profit from associates under the equity method and other income frominvestments of 155 M € (first nine months 2007: 211 M €) is mainly influenced by the result ofDassault Aviation of 123 M € (first nine months 2007: 140 M €). The result in the first nine months
2008 of Dassault Aviation Group does not include any IFRS catch-up adjustments (first ninemonths 2007: +19 M €). Additionally, in the first nine months 2007, the sale of EADS’ interest in
Embraer resulted in a non-recurring capital gain of 46 M €.
Net finance costs amount to -318 M € (first nine months 2007 retrospectively adjusted: -460 M €)including the unwinding of the discounting on A380, A350XWB and Power8 provisions and therevaluation of capitalized option premiums.
The income tax expense of -567 M € (first nine months 2007: a benefit of 178 M €) corresponds
to an effective income tax rate of 34% (20% in the first nine months 2007). For interim periods,

11

13.11.2008

EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

income tax expense is calculated by applying the expected effective tax rate for the fiscal year on
the pre-tax result, except for certain items of the period such as valuation allowances.

7. Significant balance sheet items
Non-current assets
Intangible assets of 11,060 M € (prior year-end: 10,832 M €) include 9,731 M € (prior year-end:
9,519 M €) of goodwill. This mainly relates to Airbus (6,374 M €), Defence & Security (2,588 M €),Astrium (572 M €) and Eurocopter (111 M €). The related annual impairment tests, which were
performed at the end of the year 2007, did not lead to any impairment charges. In the absence ofevidence of major changes in the retained long-term assumptions, the reference used for
determining Airbus’ recoverable amount at the end of the first nine months 2008 (including
assessment of the terminal value) is still based on the best available assumptions as per year-end
2007 including the market forecast of Airbus.
As of June 30, 2008, Airbus developed a set of sensitivities to reflect current market uncertainties(particularly with regard to the financial difficulties encountered by some airlines) and major
business parameters (including EADS market capitalization compared to EADS equity, US dollar
rate and productivity targets). The conclusion of this sensitivity analysis was that the likelihood of a
combination of changes in these key assumptions to an extent that would cause the recoverable
amount to fall below the comparable carrying value of its net assets was remote.
In the third quarter 2008, potential negative impacts from financial market uncertainties areaccompanied by potential positive impacts from a significant strengthening of the USD / € rate. As
a consequence, no goodwill impairment need has been identified on the basis of the sensitivities
developed at half year.
The annual Airbus goodwill impairment test is scheduled to be performed in the fourth quarter
2008, based on the then available information. This will take into account, amongst other factors,
the then prevailing outlook for US dollar foreign exchange rates, an updated Airbus operating plan,
the Power8 expected achievements as well as impacts of potential further management actions.
Eliminating foreign exchange-rate effects of -202 M €, property, plant and equipment decreaseby -710 M € to 12,577 M € (prior year-end: 13,489 M €), including leased assets of 1,028 M €(prior year-end: 1,319 M €). Property, plant and equipment also comprise “Investment property”
amounting to 89 M € (prior year-end: 96 M €).
Investments in associates under the equity method of 2,302 M € (prior year-end: 2,238 M €)mainly increase due to the change in the equity investment in Dassault Aviation, amounting to2,197 M € (prior year-end: 2,121 M €).
Other investments and other long-term financial assets of 1,575 M € (prior year-end: 1,553 M€) are related to Airbus for an amount of 1,116 M € (prior year-end: 1,013 M €), mainly concerning
the non-current portion of aircraft financing activities including a foreign exchange rate effect of+18 M €.
Non-current other assets mainly comprise “Non-current derivative financial instruments” and“Non-current prepaid expenses”. The decrease by -1,188 M € to 2,355 M € (prior year-end: 3,543
M €) is mainly caused by the variation of the non-current portion of fair values of derivative
financial instruments (-1,305 M €) partly compensated by revalued option premiums at Airbus in
the course of US dollar hedgings.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Deferred tax assets of 3,512 M € (prior year-end: 2,705 M €) are presented as non-current assets
as required by IAS 1.
The fair values of derivative financial instruments are included in non-current other assets with
an amount of 1,135 M € (prior year-end: 2,440 M €), in current other assets (1,988 M €, prior yearend: 2,955 M €), in other non-current liabilities (1,099 M €, prior year-end: 258 M €) and in othercurrent liabilities (56 M €, prior year-end: 36 M €) which corresponds to a total net fair value of
1,968 M € (prior year-end: 5,101 M €). The volume of hedged US dollar-contracts increases from
51.3 billion US dollar as at December 31, 2007 to net of 64.9 billion US dollar including 9 billion ofhedged US dollar vanilla options as at September 30, 2008. The US dollar exchange rate became
more favourable (USD / € spot rate of 1.43 at September 30, 2008 vs. 1.47 at December 31,2007). The average US dollar hedge rate for the hedge portfolio of the Group changed from 1.26
as at December 31, 2007 to 1.35 (excluding US dollar plain vanilla options as out of the money) as
at September 30, 2008 (US dollar / € rate respectively).

Current assets
Inventories of 19,919 M € (prior year-end: 18,906 M €) increase by +1,013 M €. This is driven by
all divisions except for Airbus: Eurocopter (+626 M €) with an increase in unfinished goods andservices thanks to the ramp-up of all commercialized programs (mainly SuperPuma and Dauphin)and governmental programs (mainly NH90 and Tiger), Defence & Security (+377 M €) especiallyin relation with Eurofighter and Astrium (+305 M €) with a higher level of work in progress, boosted
by the satellite and launcher business. The decrease at Airbus by -293 M € mainly reflects a lower
level of unfinished goods and services of -496 M €, partially compensated by higher finishedgoods.
On September 25, 2008 EADS announced an undefined delay of the first flight of the A400M,
mainly due to the unavailability of the propulsion system, which is developed by subcontractors of
Airbus. Because the engine supplier, which is driving the critical path, declared its inability to
specify a new delivery date and beyond that – but not first flight critical – major suppliers of
mission critical systems and system integration are struggling with the very challenging
requirements. Due to that, a revised technical schedule and the related financial implications of thecorresponding delay can no longer be reliably assessed. While the customer is expecting a
reliable time schedule for the delivery of the aircraft, EADS has adressed technical, specification,schedule and some contractual issues for further discussions with customers and suppliers.
Currently, as the outcome of the A400M construction contract cannot be estimated reliably, EADS
cannot comply with all requirements to account for the contract under the estimate-at-completionaccounting methodology according to IAS 11 (Construction Contracts). Consequently and in linewith IAS 11, EADS has suspended the application of estimate at completion methodology
accounting and has recognised contract costs incurred to date as expenses in the income
statement as well as corresponding revenues as far as such contract costs are expected to be
recoverable under the “early stage method of accounting” (see also “revenues” and “tradereceivables”).
Therefore, EADS has expensed all A400M related work-in-progress previously recognised in thebalance sheet, leading to a decrease in unfinished goods and services. Relating expenses
exceeding corresponding revenues due to the fact that a portion of the work-in-progress was
expected to be non-recoverable, were compensated by the utilization of a portion of the existing
loss-at-completion provision, thus not impacting the result of the period.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Finally, the loss-at-completion provision was then updated. While possible additional costs linked
to the unspecified new delivery schedule have not been – as well as potential benefits fromdiscussions with customers – taken into account when re-assessing the new provision, only theadditional production costs under the contract which EADS was able to estimate reliably were
included in the reassessment of the provision (see also “current provisions”).
All such other possible additional costs have been considered to qualify as contingent liabilities
due to the fact that they cannot yet be currently reliably estimated.
Trade receivables increase by +450 M € to 5,089 M € (prior year-end: 4,639 M €), thereby
including an increase of 792 M € of IAS 11-receivables in MTA related to the suspension ofmilestone accounting for the A400M contract (see “inventories”). Excluding such receivables, theremaining trade receivables decrease by -389 M €, mainly coming from Defence & Security (-313M €) and Eurocopter (-209 M €), partly compensated by an increase at Airbus (+114 M €).
Other current assets include “Current portion of other long-term financial assets”, “Current otherassets”, “Current tax assets” and “Current prepaid expenses”. The decrease of -779 M € to 4,934
M € (prior year-end: 5,713 M €) comprises among others a decrease of -967 M € regarding
positive fair values of derivative financial instruments. This is partly compensated by claims to tax
rebates (Value Added Tax) (+106 M €).
Current securities increase from 1,598 M € to 5,654 M € (see also note 8 “Significant cash flow
items”).
Cash and cash equivalents decrease from 7,549 M € to 4,327 M €. The decrease mainly resultsfrom a change in securities (see also note 8 “Significant cash flow items”).
Due to the closing of negotiations for the sale of the Airbus site of Laupheim and the highprobability of a positive outcome of the final negotiations concerning the sale of the Airbus site in
Filton as well as regarding the disposal of the investments in Socata and Revima, the respective
non-current and current assets amounting to 444 M € (prior year-end: 0 M €) are reclassified to
non-current assets / disposal groups classified as held for sale. Liabilities directly
associated to non-current assets classified as held for sale amount to 222 M € (prior yearend: 0 M €).

Total equity
Equity attributable to equity holders of the parent (including purchased treasury shares) amounts
to 11,931 M € (prior year-end: 13,090 M €). The decrease is mainly due to income and expense
recognised in equity of -1,150 M €, which includes the profit for the period attributable to the equity
holders of the parent of +1,082 M € as well as changes in the fair value of cash flow hedges of-2,360 M € net of tax. The amount of equity is reduced by the cash distribution to shareholders of-97 M €.
Minority interests increase to 143 M € (prior year-end: 85 M €) mainly in relation to initialconsolidations as well as the allocation of recognised income and expense.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Non-current liabilities
Non-current provisions of 7,368 M € (prior year-end: 8,055 M €) comprise the non-current
portion of pension provisions with a decrease of -306 M € to 4,076 M € (prior year-end: 4,382 M €).
Compared with year-end 2007, the assumed discount rate in Euro-countries for the calculation ofpension provisions increases from 5.25% / 5.35% to 6.75%, thus leading to lower recognised
actuarial losses. Based on the latest available information of half-year 2008, BAe Systems’
pension schemes also lead to a decrease of recognised actuarial losses. Since EADS applies theequity approach for actuarial gains and losses, the decrease of -320 M € is recorded in noncurrent pension provisions with a corresponding net of tax increase in equity (+203 M €) andminority interests (+8 M €).
Moreover, other provisions are included in non-current provisions, which decrease by -381 M € to
3,292 M €. A significant part of the decrease is dedicated to the provision for the A380 and
A350XWB due to the strengthening of USD / € rate and due to utilisations and reclassification forsettlement and buy-out charges for the A350 program. Other provisions include among others
aircraft financing activities with a decrease of -10 M € to 694 M € (thereof foreign exchange effects
of +17 M €).
Long-term financing liabilities of 3,009 M € (prior year-end: 3,090 M €), excluding foreignexchange-rate effects of +23 M €, decrease by -104 M € in particular due to Airbus.
Other non-current liabilities comprise “Non-current other liabilities” and “Non-current deferredincome” and increase in total by +1,570 M € to 16,450 M € (prior year-end: 14,880 M €). They
mainly include non-current customer advance payments received of 9,254 M € (prior year-end:
8,420 M €), the non-current portion of European Government refundable advances amounting to
4,724 M € (prior year-end: 4,854 M €) and non-current negative fair values of derivative financial
instruments of 1,099 M € (prior year-end: 258 M €). The main part of non-current deferred incomeof 534 M € (prior year-end: 753 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
deferred income, is reversed over the guaranteed period.

Current liabilities
Current provisions decrease by -126 M € to 4,252 M € (prior year-end: 4,378 M €) and comprisethe current portion of pensions (286 M €) and other provisions (3,966 M €). The decrease mainlyreflects a utilization of a loss-at-completion provision for the A400M contract in Airbus for costs
expected to be non-recoverable (see “inventories”), partly offset by an increase in provisions foroutstanding costs at Defence & Security and Eurocopter.
After reassessing the loss-at-completion provision for the A400M contract, an amount of € 387 M €(including foreign exchange rate effect) was provided for to cover additional expected losses under
the contract which EADS was able to reliably estimate.
Short-term financing liabilities of 962 M € (prior year-end: 1,724 M €) decrease by -762 M € due
to a reduced amount of outstanding commercial paper of EADS B.V. (-501 M €).
Trade liabilities decrease by -245 M € to 7,153 M € (prior year-end: 7,398 M €), mainly relating toAirbus (-132 M €) and Defence (-68 M €).

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Other current liabilities include “Current other liabilities” and “Current deferred income”. They
increase by +2,231 M € to 22,620 M € (prior year-end: 20,389 M €). Other current liabilities mainlycomprise current customer advance payments of 18,471 M € (prior year-end: 16,214 M €).
8. Significant cash flow items
Cash provided by operating activities increases from 1,106 M € to 3,060 M €. Gross cash flowfrom operations (excluding working capital change) of 2,347 M € falls below prior period’s level(first nine months 2007: 3,016 M €); changes in other operating assets and liabilities (working
capital changes) amount to +713 M € (first nine months 2007: -1,910 M €). Working capital mainly
improves thanks to lower additions to inventories and higher advance payments received.
Cash used for investing activities amounts to -5,450 M € (first nine months 2007: -3,008 M €).
This mainly comprises a change in securities of -4,357 M € and purchases of intangible assets,
property, plant and equipment and investment property of -1,066 M €, namely in Airbus andAstrium.
Cash used for financing activities decreases by -91 M € to -825 M € (first nine months 2007:-734 M €). The outflow mainly comprises the net repayment of financing liabilities as well as the
cash distribution to shareholders.
9. Number of shares
The total number of shares outstanding is 809,263,685 and 804,017,011 as of September 30,
2008 and 2007, respectively. EADS’ shares are exclusively ordinary shares with a par value of
1.00 €.
During the nine-month period ended September 30, 2008, the number of treasury shares held by
EADS decreased from 9,804,998 as of December 31, 2007 to 5,505,427 as of September 30,
2008.
New shares amounting to 14,200 (in the first nine months 2007: 424,537 new shares) were issued
as a result of the exercise of stock options in compliance with the implemented stock option plans.
Under the 2008 Employee Stock Ownership Plan, which was granted in June 2008, 2,031,820
shares were issued in July 2008. (Under the 2007 Employee Stock Ownership Plan 2,037,835
shares were issued in June 2007).
10. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
holders of the parent (Net income (loss)) by the weighted average number of issued ordinary
shares during the period, excluding ordinary shares purchased by the Group and held as treasury
shares:January 1 to
September 30,
2008

January 1 to
September 30,
2007

Net income (loss) attribut. to equity holders of the parent

1,082 M €-705 M €Weighted average number of ordinary shares outstanding

806,251,855

802,805,702

1.34 €-0.88 €

Basic earnings per share

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

For calculation of the diluted earnings per share, the weighted average number of ordinary sharesis adjusted to assume conversion of all potential ordinary shares. The Group’s only category of
dilutive potential ordinary shares is stock options as well as performance and restricted shares.
Since the average price of EADS shares during the nine-month period ended September 30, 2008
did not exceed the exercise price of any stock option plan (in the nine-month period ended
September 30, 2007: the 1st, 2nd, 4th and 5th stock option plans) initiated by the Group, there
were no related potential ordinary shares to increase the weighted average number of shares.
468,041 shares (nine-month period ended September 30, 2007: 2,524,149 shares) are considereddilutive according to IAS 33.
January 1 to
September 30,
2008

January 1 to
September 30,
2007

Net income (loss) attribut. to equity holders of the parent

1,082 M €-705 M €Weighted average number of ordinary shares outstanding(diluted)

806,719,896

805,329,851

1.34 €-0.88 €

Diluted earnings per share
11. Related party transactions

The Group has entered into various transactions with related companies in the first nine months of2008 and 2007 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 withrelated parties include the French State, Daimler, Lagardère and SEPI (Spanish State). Except for
the transactions with the French State and SEPI, such transactions are not considered material to
the Group either individually or in the aggregate. The transactions with the French State include
mainly sales from the Eurocopter, Defence & Security and Astrium divisions for programs like
Tiger, M51 / M45 ballistic missiles and SCALP naval cruise missiles. The transactions with SEPI
include mainly sales from MTAD and Defence & Security divisions for programs like the A400M
and Eurofighter.
In 2007, Lagardère and the French State through Sogéade had granted to the Group theirreceived dividend in relation with 2006 for an amount of 29 M € as an interest free loan.

12. Number of employees
The number of employees at September 30, 2008 is 118,487 as compared to 116,493 at
December 31, 2007.

13. Litigation and claims
On April 1, 2008, EADS, as well as the concerned EADS and Airbus executives, took notice of thedecision of the AMF Collège to initiate proceedings, respectively for breach of market information
duties and for breach of insider trading rules. For the first time, EADS and the persons involved will
be able to confront AMF’s interpretation with their explanations of the facts of the case.

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EADS N.V.
Unaudited Condensed Consolidated Financial Information for the nine-month period ended September 30, 2008

Considering the fact that there is no decision on the substance so far, EADS insists that the
principle of presumption of innocence be upheld. EADS considers that the financial risk associatedwith the procedure against the Group and its possible consequences on EADS is not material.
However, it recognizes that these proceedings may have significant consequences on its image
and reputation.

On June 12, 2008, two actions were initiated in the United States District Court for the Southern
District of New York, one of which has since been voluntarily withdrawn. The remaining action
purports to be a class action brought on behalf of U.S. purchasers of EADS securities from July27, 2005 through March 9, 2007. Named as defendants are EADS and four either present orformer executives of EADS and Airbus. The action seeks damages for alleged violations of the US
securities laws in connection with disclosures relating to the delivery schedule for the A380. The
action is in its preliminary stage and defendants are currently preparing a response to theoperative complaint. The Group anticipates a vigorous defense.

14. Subsequent events
On October 2, 2008, the sale of the site of Laupheim, Germany from Airbus to Diehl / Thales was
closed with effect from October 1, 2008, thereby transferring all operational business.

On November 3, 2008, EADS and DAHER announced the conclusion of the agreement for
DAHER to acquire a 70% majority share in EADS Socata. The association of DAHER and EADS
Socata will allow the creation of a European industrial leader in the area of Aerostructures,
Business Aviation and Services and the development of joint projects in these areas.

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