Airbus SE — Interim / Quarterly Report 2011

May 13, 2011

Unaudited Condensed IFRS Consolidated Financial Information of EADS N.V. for the three-month period ended March 31, 2011

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 March 31, 2011……………………………………………….…………………………6
1. The Company………………………………………………………………………………………6
2. Accounting policies……………….……………………………………………………………6
3. Segment information…………………………………………………………………………7
4. EBIT pre-goodwill impairment and exceptionals…………………………………………8
5. Significant income statement items………….…………………………….……………9
6. Significant items of the statement of financial position…….…………………………10
7. Significant cash flow items………………………………………………………………….12
8. Number of shares……………………………………………………………12
9. Earnings per share…………………………………………………….………………………12
10. Related party transactions.……………………………………….…………………………13
11. Number of employees ……………………………….……………….……………………13
12. Litigation and claims ……………………………….……………….……………………13
13. Subsequent events ……………………………….……………….……………………14

Unaudited Condensed IFRS Consolidated Income Statements

	January 1 - 2011	March 31,	January 1 - 31, 2010	March	Deviation
	M €	%	M €	%	M €
Revenues	9,854	100	8,950	100	904
Cost of sales	-8,515	-86	-7,844	-88	-671
Gross margin	1,339	14	1,106	12	233
Selling, administrative & other
expenses	-589	-6	-527	-6	-62
Research and development
expenses	-650	-6	-572	-6	-78
Other income	48	0	48	1	0
Share of profit from associates
under the equity method and other
income from investments	33	0	18	0	15
Profit before finance result and
income taxes	181	2	73	1	108
Interest income	99	1	82	1	17
Interest expense	-146	-1	-135	-1	-11
Other financial result	-150	-2	130	1	-280
Finance result	-197	-2	77	1	-274
Income taxes	5	0	-47	-1	52
Profit (loss) for the period	-11	0	103	1	-114
Attributable to:
Equity owners of the parent
(Net income (loss))	-12	0	103	1	-115
Non-controlling interests	1	0	0	0	1
Earnings per share	€		€		€
Basic and diluted	-0.01		0.13		-0.14

Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income

in M €	January 1 - March 31, 2011	January 1 - March 31, 2010
Profit (loss) for the period	-11	103
Foreign currency translation adjustments for foreign operations 1)	-54	99
Net change in fair value of cash flow hedges	2,616	-3,006
Net change in fair value of available-for-sale financial assets 1)	10	52
Unrealized changes from investments accounted for
using the equity method 1)	120	35
Tax on income and expense recognized directly in equity	-808	949
Other comprehensive income, net of tax	1,884	-1,871
Total comprehensive income of the period	1,873	-1,768
Attributable to:
Equity owners of the parent	1,873	-1,767
Non-controlling interests	0	-1
Total comprehensive income of the period	1,873	-1,768

1) Other comprehensive income recognized for investments accounted for using the equity method is presented separately. Comparative information has been adjusted accordingly.

Unaudited Condensed IFRS Consolidated Statements of Financial Position

	March 31, 2011		December 31, 2010		Deviation
	M €	%	M €	%	M €	%
Non-current assets
Intangible assets	11,246	13	11,299	14	-53	0
Property, plant and equipment	13,346	16	13,504	17	-158	-1
Investments in associates under the
equity method	2,602	3	2,451	3	151	6
Other investments and long-term	2,300	3	2,386	3	-86	-4
financial assets
Other non-current assets	2,730	3	1,975	2	755	38
Deferred tax assets	3,637	4	4,250	5	-613	-14
Non-current securities	5,759	7	5,332	6	427	8
	41,620	49	41,197	50	423	1
Current assets
Inventories	22,564	26	20,862	25	1,702	8
Trade receivables	6,091	7	6,632	8	-541	-8
Other current assets	4,226	5	3,632	4	594	16
Current securities	5,688	7	5,834	7	-146	-3
Cash and cash equivalents	4,958	6	5,030	6	-72	-1
	43,527	51	41,990	50	1,537	4
Total assets	85,147	100	83,187	100	1,960	2
Total equity Equity attributable to equity owners of the parent
Capital stock	817	1	816	1	1	0
Reserves	7,685	9	7,691	9	-6	0
Accumulated other comprehensive income	2,331	3	446	1	1,885	423
Treasury shares	-126	0	-112	0	-14	13
	10,707	13	8,841	11	1,866	21
Non-controlling interests	95	0	95	0	0	0
	10,802	13	8,936	11	1,866	21
Non-current liabilities
Non-current provisions	8,087	9	8,213	10	-126	-2
Long-term financing liabilities	2,887	3	2,870	3	17	1
Deferred tax liabilities	1,409	2	1,195	2	214	18
Other non-current liabilities	17,062	20	18,203	22	-1,141	-6
	29,445	34	30,481	37	-1,036	-3
Current liabilities
Current provisions	5,818	7	5,766	7	52	1
Short-term financing liabilities	1,346	2	1,408	2	-62	-4
Trade liabilities	8,617	10	8,546	10	71	1
Current tax liabilities	229	0	254	0	-25	-10
Other current liabilities	28,890	34	27,796	33	1,094	4
	44,900	53	43,770	52	1,130	3
Total liabilities	74,345	87	74,251	89	94	0
Total equity and liabilities	85,147	100	83,187	100	1,960	2

Unaudited Condensed IFRS Consolidated Statements of Cash Flows

	January 1 -	January 1 -
	March 31, 2011	March 31, 2010
	M €	M €
Profit (loss) for the period attributable to equity owners of the
parent (Net income (loss))	-12	103
Profit for the period attributable to non-controlling interests	1	0
Adjustments to reconcile profit (loss) for the period to cash provided by (used for) operating activities
Depreciation and amortization	408	384
Valuation adjustments	199	-92
Deferred tax (income) expense	-45	17
Change in income tax assets, income tax liabilities and provisions for
income tax	-35	-29
Results on disposals of non-current assets	0	-3
Results of companies accounted for by the equity method	-31	-19
Change in current and non-current provisions	83	25
Change in other operating assets and liabilities	112	-1,112
Cash provided by (used for) operating activities	680	-726
Investments:
- Purchases of intangible assets, PPE	-367	-345
- Proceeds from disposals of intangible assets, PPE	3	7
- Payments for investments in associates and other investments and long-term financial assets	-22	-83
- Proceeds from disposals of associates and other investments and long-term financial assets	15	23
Change of securities	-371	136
Contribution to plan assets for pensions	-8	-1
Cash (used for) investing activities	-750	-263
Change in long-term and short-term financing liabilities	44	-1,010
Changes in capital and non-controlling interests	7	-2
Change in treasury shares	-14	-1
Cash provided by (used for) financing activities	37	-1,013
Effect of foreign exchange rate changes and other valuation adjustments
on cash and cash equivalents	-39	67
Net (decrease) in cash and cash equivalents	-72	-1,935
Cash and cash equivalents at beginning of period	5,030	7,038
Cash and cash equivalents at end of period	4,958	5,103

As of March 31, 2011, EADS' cash position (stated as cash and cash equivalents in the Unaudited Condensed IFRS Consolidated Statements of Cash Flows) includes 747 M € (735 M € as of December 31, 2010), which represents EADS' share in MBDA's cash and cash equivalents deposited at other shareholders. These funds are available for EADS upon demand.

in M €	Equity attributable to equity owners of the parent	Non-controlling interests	total
Balance at January 1, 2010	10,535	106	10,641
Profit for the period	103	0	103
Other comprehensive income	-1,870	-1	-1,871
Capital decrease	0	-3	-3
Change in treasury shares	-1	0	-1
Others	2	0	2
Balance at March 31, 2010	8,769	102	8,871
Balance at January 1, 2011	8,841	95	8,936
Profit (loss) for the period	-12	1	-11
Other comprehensive income	1,885	-1	1,884
Capital increase	7	0	7
Change in treasury shares	-14	0	-14
Balance at March 31, 2011	10,707	95	10,802

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements as at March 31, 2011

1. The Company

The accompanying Unaudited Condensed Consolidated Financial Statements present the operations 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 is the manufacturing of commercial aircraft, civil and military helicopters, commercial space launch vehicles, missiles, military aircraft, satellites, defence systems and defence electronics and rendering of services related to these activities. The Unaudited Condensed IFRS Consolidated Financial Statements for the three-month period ended March 31, 2011 were authorized for issue by EADS' Board of Directors on May 12, 2011.

2. Accounting policies

These Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting (amended 2010) as adopted by the European Union (EU). EADS' Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and as endorsed by the European Union (EU) as at March 31, 2011 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 International Financial Reporting Interpretations Committee ("IFRIC") or former Standards Interpretation Committee ("SIC").

These Unaudited Condensed IFRS Interim Consolidated Financial Statements should be read in conjunction with EADS' Consolidated Financial Statements as of December 31, 2010. Except for the revised or amended Standards to be applied for the first time in the first three months 2011 (mentioned below in the next section), EADS' accounting policies and techniques are unchanged compared to December 31, 2010.

Financial reporting rules applied for the first time in the first three months 2011

The following revised or amended Standards were applied for the first time in the first three months 2011 and are effective for EADS as of January 1, 2011. If not otherwise stated, they do not have a material impact on EADS' Consolidated Financial Statements as well as its basic and diluted earnings per share.

The IASB issued a revised version of IAS 24 "Related Party Disclosures" that simplifies the disclosure requirements for government related entities and clarifies the definition of a related party.

The amendment to IAS 32 "Classification of Rights Issues – Amendment to IAS 32 Financial Instruments: Presentation" addresses the accounting for rights issues (rights, options or warrants) that are denominated in a currency other than the functional currency of the issuer. In particular, when the amendment is retrospectively applied, rights (and similar derivatives) to acquire a fixed number of an entity's own equity instruments for a fixed price stated in a currency other than the entity's functional currency would be equity instruments, provided the entity offers the rights pro rata to all of its existing owners of the same class of its own non derivative equity instruments.

The third omnibus of amendments to IFRS Standards (2010) includes amendments to 8 IFRS Standards and 1 Interpretation. The amendments refer to IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 21, IAS 28, IAS 31, IAS 34 and IFRIC 13. Most of the amendments are mandatory for annual periods beginning on or after 1 January 2011 with separate transition provisions for each amendment.

To correct an unintended consequence of IFRIC 14, the IASB issued amendments to IFRIC 14 "Prepayments of a Minimum Funding Requirement (Amendments to IFRIC 14)". Without these amendments in some circumstances entities are not permitted to recognise some voluntary prepayments for minimum funding contributions as an asset. This was not intended when IFRIC 14 was issued, and the amendments correct this issue.

3. Segment information

The Group operates in five reportable segments which reflect the internal organizational and management 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 and related services; aircraft conversion.
• Airbus MilitaryDevelopment, manufacturing, marketing and sale of military transport aircraft and special mission aircraft and related services. Airbus Military integrates the former Military Transport Aircraft Division (MTAD) and Airbus A400M operations.

The reportable segments Airbus Commercial and Airbus Military form the Airbus Division.

• EurocopterDevelopment, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter related services.
• Astrium — Development, manufacturing, marketing and sale of satellites, orbital infrastructures and launchers; provision of space 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 secure communications 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 allocable to the reportable segments are disclosed in the column "HQ / Conso.".

in M €	Airbus Commer cial	Airbus Military	Euro copter	Astrium	Cassidian	Other Busines ses	Total segments	HQ/ Conso.	Consoli dated
Three-month period ended March 31, 2011
Revenues	6,707	434	823	1,171	878	246	10,259	-405	9,854
Research and development expenses	-516	-9	-44	-13	-53	-2	-637	-13	-650
Profit (loss) before finance result and income taxes	118	1	31	51	6	-3	204	-23	181
EBIT pre-goodwill imp. and exceptionals (see definition below)	125	1	31	52	8	-3	214	-22	192
Three-month period ended March 31, 2010
Revenues	5,989	384	798	924	928	246	9,269	-319	8,950
Research and development expenses	-431	-2	-47	-18	-57	-1	-556	-16	-572
Profit (loss) before finance result and income taxes	0	1	25	40	19	-1	84	-11	73
EBIT pre-goodwill imp. and exceptionals (see definition below)	6	1	26	41	21	-1	94	-11	83

4. 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

EADS N.V. Unaudited Condensed IFRS Consolidated Financial Information for the three-month period ended March 31, 2011

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 fair value adjustments from these transactions. EBIT pre-goodwill impairment and exceptionals is treated by management as a key indicator to measure the segments' economic performances.

The reconciliation from profit before finance result and income taxes to EBIT pre-goodwill impairment and exceptionals is set forth in the following table (in M €):

in M €	January 1- March 31, 2011	January 1- March 31, 2010
Profit before finance result and income taxes	181	73
Goodwill and exceptionals:
Exceptional depreciation (fixed assets in cost of sales)	11	10
EBIT pre-goodwill impairment and exceptionals	192	83

5. Significant income statement items

Revenues of 9,854 M € (first quarter 2010: 8,950 M €) increase by +904 M €, mainly at Airbus Commercial (+718 M €) and Astrium (+247 M €). Airbus Military includes revenues related to the A400M programme of 165 M € recognized under the percentage of completion method based on milestones (first quarter 2010: 0 M €). Moreover, Eurocopter also contributes to the increase of revenues whereas Cassidian revenues decrease slightly. Positive mix effects drive the improvement at Airbus Commercial.

The Gross Margin increases by +233 M € to 1,339 M € compared to 1,106 M € in the first quarter of 2010. This improvement is mainly related to better performance of legacy programmes and favorable phasing effects at Airbus Commercial. The operational improvement at Airbus, Astrium and Eurocopter is partly compensated by unfavorable foreign exchange rate effects at Airbus Commercial.

Research and development expenses increase by -78 M € to -650 M € (first quarter 2010: -572 M €) principally reflecting an increase for the Airbus A350XWB.

Share of profit from associates under the equity method and other income from investments of 33 M € (first quarter 2010: 18 M €) mainly consists of the result of Dassault Aviation of 30 M € (first quarter 2010: 30 M €). The Dassault Aviation equity accounted-for income in the first quarter 2011 includes a negative catch-up on 2010 results amounting to -3 M € (first quarter 2010: +3 M € positive catch-up on 2009 results).

Finance result amounts to -197 M € (first quarter 2010: 77 M €) comprising interest result of -47 M € (first quarter 2010: -53 M €). Other financial result amounts to -150 M € (first quarter 2010: 130 M €) and mainly includes charges from the negative revaluation of financial instruments (-56 M €, first quarter 2010: -3 M €), the negative impact from foreign exchange translation of monetary items (-47 M € vs. first quarter 2010: a positive impact of 170 M €) and the unwinding of discounted provisions (-37 M €, first quarter 2010: -59 M €).

The income tax benefit of 5 M € (first quarter 2010: an income tax expense of -47 M €) corresponds to an effective income tax rate of 31% (first quarter 2010: 31%).

6. Significant items of the statement of financial position

Non-current assets

Intangible assets of 11,246 M € (prior year-end: 11,299 M €) include 9,786 M € (prior year-end: 9,809 M €) of goodwill. This mainly relates to Airbus Commercial (6,425 M €), Cassidian (2,505 M €), Astrium (641 M €) and Eurocopter (117 M €). The last annual impairment tests, which were performed in the fourth quarter of 2010, did not lead to any impairment charges.

Eliminating foreign exchange-rate effects of -114 M €, property, plant and equipment decrease by -44 M € to 13,346 M € (prior year-end: 13,504 M €), including leased assets of 665 M € (prior year-end: 759 M €). Property, plant and equipment also comprise "Investment property" amounting to 75 M € (prior year-end: 77 M €).

Investments in associates under the equity method of 2,602 M € (prior year-end: 2,451 M €) mainly reflect the increase in the value of the equity investment in Dassault Aviation, amounting to 2,460 M € (prior year-end: 2,318 M €).

Other investments and other long-term financial assets of 2,300 M € (prior year-end: 2,386 M €) are related to Airbus for an amount of 1,608 M € (prior year-end: 1,765 M €), mainly concerning the non-current portion of aircraft financing activities including a foreign exchange rate effect of -43 M €.

Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The increase by +755 M € to 2,730 M € (prior year-end: 1,975 M €) is mainly caused by the positive variation of the non-current portion of fair values of derivative financial instruments (+689 M €).

Deferred tax assets of 3,637 M € (prior year-end: 4,250 M €) are presented as non-current assets as required by IAS 1. The decrease is mainly due to the positive variation of fair values of derivative financial instruments.

The fair values of derivative financial instruments are included in other non-current assets (1,291 M €, prior year-end: 602 M €), in other current assets (658 M €, prior year-end: 364 M €), in other non-current liabilities (984 M €, prior year-end: 2,109 M €) and in other current liabilities (479 M €, prior year-end: 821 M €) which corresponds to a total net fair value of 486 M € (prior year-end: -1,964 M €). The volume of hedged US dollar-contracts increases from 70.2 billion US dollar as at December 31, 2010 to 71.1 billion US dollar as at March 31, 2011. The US dollar spot rate became less favorable (USD / € spot rate of 1.42 at March 31, 2011 vs. 1.34 at December 31, 2010). The average US dollar hedge rate for the hedge portfolio of the Group slightly improves from 1.38 USD / € as at December 31, 2010 to 1.37 USD / € as at March 31, 2011.

Current assets

Inventories of 22,564 M € (prior year-end: 20,862 M €) increase by +1,702 M €. This is partly driven by higher unfinished goods and services for Airbus Commercial (+654 M €), Cassidian (+285 M €), Eurocopter (+248 M €) and Astrium (+109 M €) programmes. Airbus also records higher finished goods (+308 M €).

Trade receivables decrease by -541 M € to 6,091 M € (prior year-end: 6,632 M €), mainly caused by Airbus (-234 M €), Cassidian (-203 M €) and Eurocopter (-103 M €).

Other current assets include "Current portion of other long-term financial assets", "Current other financial assets", "Current other assets" and "Current tax assets". The increase of +594 M € to 4,226 M € (prior year-end: 3,632 M €) comprises among others an increase of +302 M € in claims to value added tax rebates and of +294 M € in positive fair values of derivative financial instruments.

Cash and cash equivalents slightly decrease from 5,030 M € to 4,958 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 10,707 M € (prior year-end: 8,841 M €). The increase in equity is mainly due to other comprehensive income for the period of +1,885 M €, mainly due to the change of fair values in cash flow hedges.

Non-controlling interests remain stable at 95 M € (prior year-end: 95 M €).

Non-current liabilities

Non-current provisions of 8,087 M € (prior year-end: 8,213 M €) comprise the non-current portion of pension provisions with an increase of +16 M € to 5,053 M € (prior year-end: 5,037 M €).

Moreover, other provisions are included in non-current provisions, which decrease by -142 M € to 3,034 M €. The decrease mainly reflects provisions for loss making contracts (-70 M €) and provisions for aircraft financing activities (-63 M €) due to foreign exchange rate effects.

Long-term financing liabilities, which mainly comprise bonds, increase by +17 M € to 2,887 M € (prior year-end: 2,870 M €).

Other non-current liabilities, comprising "Non-current other financial liabilities", "Non-current other liabilities" and "Non-current deferred income", decrease in total by -1,141 M € to 17,062 M € (prior year-end: 18,203 M €). The decrease mainly comes from the non-current portion of liabilities for derivative financial instruments (-1,125 M €), amounting to 984 M € (prior year-end: 2,109 M €).

Current liabilities

Current provisions increase by +52 M € to 5,818 M € (prior year-end: 5,766 M €) and comprise the current portions of pensions (184 M €) and of other provisions (5,634 M €). An increase in provisions for personnel expenses (+55 M €) and in provisions for outstanding costs (+39 M €) is partly compensated by a decrease of provisions for loss making contracts (-68 M €). The provisions for loss making contracts include provision for the A400M programme of 2,263 M € (prior year-end: 2,344 M €).

Other current liabilities include "Current other financial liabilities", "Current other liabilities" and "Current deferred income". They increase by +1,094 M € to 28,890 M € (prior year-end: 27,796 M €). Other current liabilities mainly comprise current customer advance payments of 24,413 M € (prior year-end: 23,285 M €), increasing by +1,128 M €.

7. Significant cash flow items

Cash provided by (used for) operating activities increases by +1,406 M € to +680 M € (first three months 2010: -726 M €). Gross cash flow from operations (before changes in other operating assets and liabilities) of +568 M € improves compared to the prior period's level (first three months 2010: +386 M €). Changes in other operating assets and liabilities amount to +112 M € (first three months 2010: -1,112 M €), mainly reflecting a higher level of advance payments received and a reduction of trade receivables partly compensated by an increase in inventories (mainly at Airbus).

Cash used for investing activities amounts to -750 M € (first three months 2010: -263 M €). This mainly comprises a change in securities of -371 M € (first three months 2010: +136 M €) and purchases of intangible assets and property, plant and equipment of -367 M € (first three months 2010: -345 M €), namely in Airbus division.

Cash provided by (used for) financing activities improves by +1,050 M € to +37 M € (first three months 2010: -1,013 M €). The outflow in 2010 primarily comprised the repayment of the first tranche of the EMTN bond (1 billion €) included in financing liabilities.

8. Number of shares

The total number of shares outstanding is 810,835,530 and 810,886,053 as of March 31, 2011 and 2010, respectively. EADS' shares are exclusively ordinary shares with a par value of 1.00 €.

During the first three months of 2011, the number of treasury shares held by EADS increased from 5,341,084 as of December 31, 2010 to 6,011,879 as of March 31, 2011.

In the first three months 2011, EADS issued 444,687 new shares (in the first three months 2010: no issuance of shares).

9. Earnings per share

Basic earnings per share are calculated by dividing profit (loss) for the period attributable to equity owners 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 March 31, 2011	January 1 to March 31, 2010
Net income (loss) attributable to equity owners of the parent	-12 M €	103 M €
Weighted average number of ordinary shares outstanding	810,699,249	810,894,262
Basic earnings per share	-0.01 €	0.13 €

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. After the end of the vesting period for the performance and restricted shares, the Group's only category of dilutive potential ordinary shares is stock options. Since the average price of EADS shares exceeded the

EADS N.V. Unaudited Condensed IFRS Consolidated Financial Information for the three-month period ended March 31, 2011

exercise price of the 4th and the 5th stock option plan in the first three months of 2011 (in the first three months of 2010: none of the stock option plans), 1,255,698 potential shares (in the first three months 2010: no shares) were considered in the calculation of diluted earnings per share. In the first three months 2010, 1,280,857 shares related to performance and restricted shares were considered in the calculation, since the average price of EADS shares in the first three months 2010 exceeded the price of performance and restricted shares.

	January 1 to March 31, 2011	January 1 to March 31, 2010
Net income (loss) attributable to equity owners of the parent	-12 M €	103 M €
Weighted average number of ordinary shares outstanding
(diluted)	811,954,947	812,175,119
Diluted earnings per share	-0.01 €	0.13 €

10. Related party transactions

The Group has entered into various transactions with related companies in the first three months of 2011 and 2010 that have all been carried out in the normal course of business. As it is the Group's policy, all related party transactions have to be carried out at arm's length. Transactions with related 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 on aggregate. The transactions with the French State include mainly sales from the Eurocopter, Astrium and Cassidian divisions. The transactions with SEPI include mainly sales from Airbus Military and Cassidian. The French and Spanish State are also customers of the A400M programme.

11. Number of employees

The number of employees as at March 31, 2011 is 122,899 as compared to 121,691 as at December 31, 2010.

12. Litigation and claims

The following supplements and amends the discussion set forth under note 32 "Litigation and claims" in the notes to the consolidated financial statements for the year ended 31 December 2010:

WTO Proceedings - On 31 March 2011, the final report was published in the case brought by the EU concerning subsidies to Boeing and has also been appealed. Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between the US and the EU. Unless a settlement, which is currently not under discussion, is reached between the parties, the litigation is expected to continue for several years.

13. Subsequent events

EADS and Airbus Military finalised the contract amendment negotiations with OCCAR and the seven A400M launch customer nations on 7 April 2011. The contract amendment implements the changes which were agreed in principle by the participating nations with EADS and Airbus Military in the A400M Understanding signed on 5 March 2010.

Following a joint announcement regarding Eurocopter's intention to accomplish a supported takeover bid for Vector Aerospace Corporation, Toronto (Canada), on 28 March 2011, Eurocopter and Vector Aerospace announced on 21 April 2011 that the formal bid circular to acquire all of the outstanding common shares of Vector Aerospace, including all shares that may be issued on the exercise of options granted under Vector Aerospace's stock option plan, has been mailed to Vector Aerospace's shareholders. Vector Aerospace has also mailed its directors' circular recommending that Vector Aerospace's shareholders deposit their shares under the offer. The offer is scheduled to expire on 26 May 2011, but is subject to extension beyond such date. Completion of the offer is subject to, amongst other things, obtaining all necessary regulatory clearances.

EPI arbitration - On 26 April 2011, Airbus Military SL (AMSL) and Europrop International GmbH (EPI) agreed to terminate the stayed arbitration proceedings before the International Chamber of Commerce (ICC), following signing of an amendment to the engine agreement related to the A400M aircraft programme.

Press Release

Solid Start to the Year: EADS Reports Results of First Quarter 2011

• Successful market introduction of A320neo
• Revenues up 10 percent to € 9.9 billion
• EBIT* before one-off: around € 230 million
• Free Cash Flow of € 0.3 billion
• Net Income: € -12 million, impacted by negative dollar accounting revaluation
• Record Net Cash position of € 12.2 billion

Leiden, 13 May 2011 – EADS (stock exchange symbol: EAD) releases encouraging results for the first quarter 2011 while the recovery of the global economy continues to support the growth of passenger traffic. Based on this positive momentum, Airbus is analysing a further increase in its single aisle production rate which is currently scheduled to increase to 40 aircraft per month by Q1 2012. A decision is expected shortly. In the first three months of 2011, the order intake(4) amounted to € 6.3 billion. EADS' order book of more than € 422 billion provides a solid platform for future deliveries. First quarter earnings reflect the usual seasonality pattern in our institutional businesses. Revenues amounted to € 9.9 billion. The EBIT* before one-off of around € 230 million benefited from good underlying performance on legacy programmes and favourable phasing of costs at Airbus Commercial. The reported EBIT* amounted to € 192 million. At € 12.2 billion, thanks to strong cash-flow management in the first quarter, the Net Cash position remains a key asset to foster future growth. The impacts from events in Japan and North Africa on the commercial aircraft market are expected to be of a temporary nature. These developments are being actively managed, while budget pressures in institutional markets, helicopters and defence and the currency volatility are being monitored.

"Our first quarter financial results reflect a good start to 2011. The early market success of the A320neo validates the significant prospects we envisage for this programme and the acquisition of Vector Aerospace in Canada is a major step forward in expanding our services offering. We also signed the A400M contract amendment, which provides a solid base to further advance this key programme", said Louis Gallois, CEO of EADS. "While advancing with the A350 XWB through achieving several critical milestones, this decisive programme continues to require our closest attention."

In the first quarter, EADS' revenues increased 10 percent to € 9.9 billion (Q1 2010: € 9.0 billion). This growth is driven primarily by mix effects at Airbus Commercial and Astrium. Deliveries remained at a high level with 119 aircraft at Airbus Commercial, 81 helicopters at Eurocopter and the 42nd consecutive successful Ariane 5 launch. In the first quarter, Airbus Military recorded revenues for the A400M programme of € 165 million, based on milestones. Series production has started and civil certification is planned for 2011. On 7 April 2011, the Customer Nations and EADS concluded the A400M contract amendment negotiations. The contract amendment implements the changes which were agreed in principle by the Customer Nations and EADS on 5 March 2010.

EBIT* before one-off (adjusted EBIT*) – an indicator capturing the underlying business margin by excluding non-recurring charges or profits caused by movements in provisions or foreign exchange impacts – stood at around € 230 million (Q1 2010: around € 150 million) for EADS and at around € 160 million for Airbus (Q1 2010: around € 80 million). It benefited from good underlying performance in Airbus legacy programmes as well as in core business activities in the other Divisions. It also included favourable phasing effects, particularly of non series costs at Airbus Commercial, which should reverse throughout the year and an unchanged A380 impact compared to last year.

EADS' reported EBIT* stood at € 192 million (Q1 2010: € 83 million).

Net Income (loss) amounted to € -12 million (Q1 2010: € 103 million), or earnings per share of € -0.01 (earnings per share Q1 2010: € 0.13). The finance result amounts to € -197 million (Q1 2010: € 77 million). The interest result of € -47 million is roughly stable with the 2010 level (Q1 2010: € -53 million). Meanwhile, the other financial result deteriorated considerably by € 280 million year-on-year. It amounted to € -150 million (Q1 2010: € 130 million). The main change comes from the negative accounting revaluation of US dollar and British pound (GBP) cash assets due to the deterioration of the closing spot rate at the end of March compared to the end of December 2010. The change in time value of EADS' hedging options has also led to a negative valuation. On the other hand, the net change in fair value of cash-flow hedges had a positive impact of € 1.8 billion on EADS equity.

Self-financed Research & Development (R&D) expenses increased to € 650 million (Q1 2010: € 572 million), driven mainly by development on the A350 XWB at Airbus.

Free Cash Flow before customer financing improved to € 208 million (Q1 2010: € -972 million), thanks to better operational performance. The improvement in working capital of € 1.2 billion is driven by higher advance payments received, partially reduced by a ramp-up in inventories, particularly at Airbus. The level of capital expenditures increased slightly compared to last year, as expected, as investment continues to ramp-up on the A350 XWB programme. Customer financing generated cash of around € 100 million in the first quarter as the lessor and banking market appetite continues to gain momentum. Free Cash Flow after customer financing amounted to € 309 million (Q1 2010: € -1,124 million).

EADS' Net Cash position amounted to € 12.2 billion (year-end 2010: € 11.9 billion), remaining a solid foundation for the Group's operational needs as well as future growth.

The Group's order intake(4) of € 6.3 billion was lower than one year ago (Q1 2010: € 14.4 billion) which included a high level of commercial aircraft orders for the A330 and A350 XWB at Airbus. The First Quarter 2011 order intake is net of 68 commercial aircraft cancellations and conversions. By the end of March 2011, EADS' order book(4) stood at € 422.4 billion (year-end 2010: € 448.5 billion), providing good visibility for the future. The Airbus Commercial backlog has been reduced by a negative revaluation impact of around € 22 billion due to the deterioration of the US dollar closing spot rate since the year-end 2010. The defence order book is almost stable at € 57.0 billion (year-end 2010: € 58.3 billion).

At the end of March 2011, EADS' workforce consisted of 122,899 employees (year-end 2010: 121,691).

Outlook

EADS confirms its 2011 guidance based on an assumption of € 1 = \$ 1.35 for the year-end closing spot rate. In 2011, Airbus should deliver 520 to 530 commercial aircraft and its gross orders should be above its deliveries. EADS' 2011 revenues should be above the 2010 revenues.

EADS expects 2011 EBIT* before one-off to remain stable compared to the 2010 level, at around € 1.3 billion. Increasing volume and price improvement at Airbus Commercial are roughly compensated by the deterioration of hedge rates, increasing R&D and less favourable mix of activities at Cassidian.

Going forward, reported EBIT* and Earnings Per Share (EPS) performance of EADS will be dependent on the Group's ability to execute on the A400M, A380 and A350 XWB programmes, in line with the commitments made to its customers.

Reported EBIT* and EPS also depend on exchange rate fluctuations. At € 1 = \$ 1.35, EADS expects 2011 EPS to be above the 2010 level of € 0.68. Free Cash Flow is expected to be positive.

In 2012, the Group expects a significant improvement in its EBIT* before one off thanks to higher volume, better pricing and improvement of A380 performance at Airbus.

EADS Divisions: Passenger traffic growth continues, signs of recovery in civil helicopter market and pressure on European defence budgets

Airbus consolidated revenues of € 7,013 million show an increase of 12 percent compared to the same period last year (Q1 2010: € 6,264 million). The Airbus consolidated EBIT* amounted to € 115 million (Q1 2010: € 7 million).

Airbus Commercial revenues amounted to € 6,707 million (Q1 2010: € 5,989 million). Deliveries of 119 commercial aircraft (Q1 2010: 122 aircraft, thereof 119 with revenue recognition) included four A380. Compared to one year ago, Airbus Commercial revenues benefited from a favourable mix effect. Airbus Commercial reported EBIT* increased to € 125 million (Q1 2010: € 6 million). Compared to one year ago, the Airbus Commercial EBIT* before one-off of around € 170 million (Q1 2010: around € 80 million) benefited from favourable mix effects and a pricing improvement net of escalation. The underlying performance also includes favourable phasing effects, particularly non series costs that should reverse as the year progresses. The improvement year-on-year is partially reduced by a hedge rate deterioration of around € 110 million and higher R&D expenses, particularly on the A350 XWB.

Airbus Military revenues increased 13 percent to € 434 million (Q1 2010: € 384 million), driven by an A400M revenue recognition of € 165 million (Q1 2010: € 0 million). Airbus Military EBIT* remained stable at € 1 million (Q1 2010: € 1 million).

Airbus booked 69 gross commercial orders in the first quarter, including 10 A380s. In the same period, 68 cancellations were registered. Early market success for the A320neo (new engine option) continues, with commitments in excess of 330 aircraft just four months after the programme's launch. In response to the successful market reception, Airbus advanced the entryinto-service date to October 2015.

Progress continues on the A350 XWB, with its largest carbon fibre fuselage panel completed. The start of the Final Assembly Line is still targeted for the end of the year and Entry-into-Service for the second half of 2013 but the programme remains challenging.

Airbus Military delivered 3 C295 aircraft to Mexico, Chile and Portugal. One new CN235 was booked for the Yemen. The A400M contract amendment was signed in early April. The flight tests continue and in February the programme commenced series production. The first A330 Multi-Role Tanker Transport (MRTT) aircraft for the Royal Saudi Air Force successfully completed its maiden flight.

As of 31 March 2011, Airbus' consolidated order book was valued at € 374.9 billion (year-end 2010: € 400.4 billion). Airbus Commercial backlog amounted to € 353.6 billion (year-end 2010: € 378.9 billion) which represents 3,434 units (year-end 2010: 3,552 aircraft). It was reduced by a negative revaluation impact of around € 22 billion due to the deterioration of the US dollar closing spot rate since the year-end 2010. This backlog supports significant volume uplift in the mid-term across the product range. The Airbus Military order book includes 239 aircraft. It stood stable at € 22.5 billion (year-end 2010: € 22.8 billion).

In the first quarter of 2011, revenues at Eurocopter amounted to € 823 million (Q1 2010: € 798 million). Deliveries totalled 81 helicopters (Q1 2010: 86 helicopters). The Division's EBIT* increased to € 31 million (Q1 2010: € 26 million) due to a favourable mix effect. The ramp-up of R&D expenses will be back-loaded in 2011.

Eurocopter participated in HeliExpo 2011 in Orlando, Florida, where it unveiled the innovation-packed EC145 T2, the next generation of the twinengine EC145, as well as a comprehensive evolution of its product line with new enhanced versions of four of the company's light, medium and heavy helicopters. Eurocopter also signed contracts and letters of intent for 68 helicopters, indicating first signs of a recovery, particularly in the US civil market. Those new contracts and letters of intent include 15 EC175 with Russian operator UTair. Cumulative net bookings at the end of the quarter have reached 99 orders for new helicopters, which is above the level of 84 net orders one year ago.

In March, Eurocopter announced the signature of an agreement with Vector Aerospace Corporation for the acquisition of the latter. The acquisition of Vector, a leading global provider of MRO services for multi-platform helicopters and for airplane and helicopter engines, marks a key step forward in Eurocopter's expansion of its worldwide services footprint, in accordance with EADS' strategic goals set out in its Vision 2020. Final closing is now subject to some pending regulatory approvals and acquiring the necessary shares to meet the legal threshold. Eurocopter's order book stood stable at € 14.5 billion (year-end 2010: € 14.6 billion) with 1,140 helicopters (year-end 2010: 1,122 helicopters).

Astrium revenues in the first three months of 2011 increased 27 percent to € 1,171 million (Q1 2010: € 924 million) as did the EBIT* to € 52 million (Q1 2010: € 41 million), reflecting a strong start to the year driven by solid operational performance. The revenue improvement year-on-year is due to higher volume in launchers, earth observation and telecommunication satellites. The EBIT* increase was reduced by lower volume in geo-information services which is experiencing a slow-down in the current business environment. The Division continues to work on its transformation programme, AGILE, to increase efficiency and prepare for a challenging competitive environment. The implementation of AGILE will trigger some non-recurring cost and higher R&D in the next quarters.

Astrium successfully launched the Automated Transfer Vehicle (ATV) "Johannes Kepler" in the quarter, also marking the 42nd consecutive successful Ariane 5 launch. The ATV, built by Astrium, performed a perfect automatic dock-on manoeuvre with the International Space Station.

Order intake reached € 781 million in the first quarter (Q1 2010: € 1,234 million), including two export contracts, an earth observation satellite for Vietnam and a contract to equip Kazakhstan's Satellite Integration and Test Centre. At the end of March 2011, the order book for Astrium amounted to € 15.3 billion (year-end 2010: € 15.8 billion).

In the first three months of 2011, revenues of Cassidian reached € 878 million (Q1 2010: € 928 million). In addition to the usual seasonality effect, revenues reflect an unfavourable phasing of Eurofighter volume as well as lower volume in Secure Communications. EBIT* decreased to € 8 million (Q1 2010: € 21 million). R&D expenses of € 53 million are mainly focused on Unmanned Aerial Systems (UAS) and Secure Communications.

As announced previously, Cassidian is beginning to feel the first pressure from the home countries' defence budget situation both in terms of delayed order intake and R&D which remains at a high level. The German government has postponed communication on its defence reform plans until later in the year. Meanwhile, Cassidian continues to prepare its transformation programme and develop its strategy of global growth, particularly in security. In the first quarter, Cassidian and Atlas Elektronik announced the foundation of Signalis, the world's leading provider of maritime safety and security solutions.

The order intake amounted to € 821 million (Q1 2010: € 964 million). Orders included a contract for EMIRAJE Systems, a joint venture of Cassidian and C4 Advanced Solutions, for the first phase of the United Arab Emirates Command and Control System (ECCS). At the end of March 2011, the Division's order book remained solid at € 16.7 billion (year-end 2010: € 16.9 billion).

Headquarters and Other Businesses (not belonging to any Division)

Revenues of Other Businesses stood stable at € 246 million (Q1 2010: € 246 million) as a ramp-up in Light Utility Helicopter (LUH) deliveries compared to last year and higher revenues in Sogerma offset lower ATR deliveries. EBIT* of Other Businesses reached € -3 million (Q1 2010: € -1 million), reflecting the lower ATR deliveries which were in line with expectations, mitigated by the recovery in the jet engine Maintenance, Repair & Overhaul business at Sogerma.

With 25 aircraft orders already received (Q1 2010: 8 aircraft orders) and continued strong commercial momentum, ATR marked a promising start into the year. Deliveries in 2011 are back-loaded with only 6 aircraft deliveries in the first quarter (Q1 2010: 13 aircraft).

In January 2011, EADS North America received a contract from Lockheed Martin to supply its TRS-3D radar for the US Navy Littoral Combat Ships. Under the terms of its contract, EADS North America will deliver the first radar unit to Lockheed Martin for installation in 2012.

On 31 March 2011, the order book of Other Businesses stood at € 2.6 billion (year-end 2010: € 2.5 billion). The order intake of almost € 400 million in the first quarter reflects a strong demand for ATR aircraft in an environment of high fuel prices. Sogerma's backlog has benefited from the increase in Airbus and ATR production rates.

* 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.

EADS is a global leader in aerospace, defence and related services. In 2010, the Group – comprising Airbus, Astrium, Cassidian and Eurocopter – generated revenues of € 45.8 billion and employed a workforce of nearly 122,000.

***

Note to editors:

Live-Transmission EADS Analysts Conference Call on the Internet

You may listen to the Analysts Conference Call today at 11:00 a.m. CET with Chief Financial Officer Hans Peter Ring on the EADS website www.eads.com.

Please click on the front page banner. A recording of the call will be available later on.

EADS – Q1 2011 Results (unaudited)

(Amounts in euro)

EADS Group	Q1 2011	Q1 2010	Change
Revenues, in millions	9,854	8,950	+10%
thereof defence, in millions	1,951	1,925	+1%
EBITDA (1), in millions	589	457	+29%
EBIT (2), in millions	192	83	+131%
Research & Development expenses, in millions	650	572	+14%
Net Income (loss) (3), in millions	-12	103	-
Earnings Per Share (EPS) (3)	-0.01	0.13	-0.14 €
Free Cash Flow (FCF), in millions	309	-1,124	-
Free Cash Flow before Customer Financing, in millions	208	-972	-
Order Intake (4), in millions	6,268	14,382	-56%

EADS Group	31 March 2011	31 Dec 2010	Change
Order Book (4), in millions	422,362	448,493	-6%
thereof defence, in millions	56,950	58,257	-2%
Net Cash position, in millions	12,172	11,918	+2%
Employees	122,899	121,691	+1%

For footnotes please refer to page 10.

by Division	Revenues				EBIT (2)
(Amounts in millions of Euro)	Q1 2011	Q1 2010	Change	Q1 2011	Q1 2010	Change
Airbus Division (5)	7,013	6,264	+12%	115	7	+1,543%
Airbus Commercial	6,707	5,989	+12%	125	6	+1,983%
Airbus Military	434	384	+13%	1	1	0%
Eurocopter	823	798	+3%	31	26	+19%
Astrium	1,171	924	+27%	52	41	+27%
Cassidian	878	928	-5%	8	21	-62%
Headquarters / Consolidation	-277	-210	-	-11	-11	-
Other Businesses	246	246	0%	-3	-1	-
Total	9,854	8,950	+10%	192	83	+131%

by Division	Order Intake (4)				Order Book (4)
(Amounts in millions of Euro)	Q1 2011	Q1 2010	Change	31 March 2011	31 Dec 2010	Change
Airbus Division (5)	3,748	11,158	-66%	374,891	400,400	-6%
Airbus Commercial	3,647	11,035	-67%	353,574	378,907	-7%
Airbus Military	105	146	-28%	22,487	22,819	-1%
Eurocopter	779	1,057	-26%	14,506	14,550	-0%
Astrium	781	1,234	-37%	15,282	15,760	-3%
Cassidian	821	964	-15%	16,721	16,903	-1%
Headquarters / Consolidation	-255	-230	-	-1,604	-1,639	-
Other Businesses	394	199	+98%	2,566	2,519	+2%
Total	6,268	14,382	-56%	422,362	448,493	-6%

For footnotes please refer to page 10.

Footnotes for pages 8 to 9:

• 1) Earnings before interest, taxes, depreciation, amortisation and exceptionals.
• 2) Earnings before interest and taxes, pre goodwill impairment and exceptionals.
• 3) EADS continues to use the term Net Income. It is identical with Profit for the period attributable to equity owners of the parent as defined by IFRS Rules.
• 4) Contributions from commercial aircraft activities to EADS Order Intake and Order Book based on list prices.
• 5) Following integration of former Military Transport Aircraft Division into Airbus Division, Airbus is reporting in two segments: Airbus Commercial and Airbus Military. The Airbus Commercial perimeter includes EFW and aerostructures but excludes the A400M activity. Airbus Military includes the former Military Transport Aircraft Division as well as all A400M activity. Eliminations are treated at the Division level.

Safe Harbour Statement:

Certain statements contained in this press release are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management's beliefs. These statements reflect the EADS' views and assumptions as of the date of the statements and involve known and unknown risk and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

When used in this press release, words such as "anticipate", "believe", "estimate", "expect", "may", "intend", "plan to" and "project" are intended to identify forward-looking statements.

This forward looking information is based upon a number of assumptions including without limitation: assumption regarding demand, current and future markets for EADS' products and services, internal performance, customer financing, customer, supplier and subcontractor performance or contracts negotiations, favourable outcomes of certain pending sales campaigns.

Forward looking statements are subject to uncertainty and actual future results and trends may differ materially depending on variety of factors including without limitation: general economic and labour conditions, including in particular economic conditions in Europe, North America and Asia, legal, financial and governmental risk related to international transactions, the cyclical nature of some of EADS' businesses, volatility of the market for certain products and services, product performance risks, collective bargaining labour disputes, factors that result in significant and prolonged disruption to air travel world wide, the outcome of political and legal processes, including uncertainty regarding government funding of certain programs, consolidation among competitors in the aerospace industry, the cost of developing, and the commercial success of new products, exchange rate and interest rate spread fluctuations between the euro and the U.S. dollar and other currencies, legal proceeding and other economic, political and technological risk and uncertainties. Additional information regarding these factors is contained in the Company's "registration document" dated 19 April 2011. For more information, please refer to www.eads.com.