For the third consecutive year, an increase of dividend is proposed based on EADS’ robust earnings growth. In 2005, EADS’ Board adapted its dividend policy taking into account dividend continuity as a desirable shareholder policy objective over the following years.

The institutional investor ownership of EADS shares progressed during 2005, with European institutions lifting their investments. Continental institutional investors increased their stake significantly from 34% to 40%. Meanwhile, the UK and US investors’ stake has receded somewhat from 55% to 48%.

EADS’ share price reached all-time highs in 2005.

Closing the year at €31.95, the EADS share price was up a full 50% from a year earlier, while the CAC 40 and the aerospace and defence sectors of the market gained 23% and 21% respectively over the period. In a context of rising share prices, trading volume remained high, averaging around two million shares daily.

The start of 2005 was slow, with the share price consolidating following news of delays hitting the A380 programme, management succession issues and conservative financial guidance for 2005 announced in December 2004. EADS shares gained a meagre 1.73% in the four and a half months to mid May. This was despite reassuring delivery guidance, and good full-year 2004 results published in the first quarter, along with a financial guidance upgrade and a 25% dividend increase.

But EADS shares gained considerable momentum following the publication of first quarter 2005 results in May, a very fruitful Paris Airshow, as well as the announcement of new management in June. These events opened a perception of renewed strategic initiative, combined with market success. In late July, first-half results and cash flow, and a further guidance increase, reinforced investor appetite for EADS shares, despite continued US Dollar uncertainty, rising fuel prices and openly heated competition in civil aviation between Airbus and its main competitor.

Between mid May and year end, the EADS share price rose by almost 50%. It reached an all-time peak on 22nd December at €33.45, in the midst of heavy news flow, including a substantial Chinese order and a follow-on Paradigm order for Astrium. The stock price then consolidated until year end in low trading volumes, largely influenced by US Dollar weakness and fuel price anxieties.

ISIN code: NL0000235190
Number of issued shares as of 31st December 2005: 817,743,130
Offer price on 10th July 2000: €19 for institutional investors, €18 for retail investors
Highest share price 2005 on Paris Stock Market: €33.45 on 22nd December 2005
Lowest share price 2005 on Paris Stock Market: €20.76 on 5th January 2005

In April 2006, DaimlerChrysler and Lagardère SCA announced they entered into simultaneous transactions aimed at reducing their respective stakes in EADS by 7.5% each. This adds to EADS’ stock liquidity. At the same time, DaimlerChrysler and Lagardère SCA confirmed their continued commitment to remain core shareholders of EADS. Under the shareholder agreements, the balance of control between the core shareholders in EADS’ corporate governance remains unchanged.