Set forth below is a breakdown of EADS’ consolidated EBIT* by division for the past three years.

2005 compared to 2004. EADS’ consolidated EBIT* increased to €2.85 billion for 2005 from €2.43 billion for 2004, primarily reflecting stronger performance at Airbus.

Airbus’ EBIT* increased to €2.3 billion for 2005 from €1.9 billion for 2004, reflecting (i) an increase in the number of aircraft delivered (378 in 2005, as compared to 320 in 2004) and (ii) operational efficiency gains resulting from the “Route 06” cost savings programme implemented in 2002 (totalling €400 million through year-end 2005). Partially offsetting these positive factors was a negative €(670) million exchange rate effect of generally less favourable rates of hedges maturing in 2005 as compared to 2004 (based on Airbus’ 2005 compounded conversion rate of €-U.S.$1.04, as compared to €-U.S.$0.98 in 2004).

The MTA Division’s EBIT* increased to €48 million for 2005 from €26 million for 2004, reflecting a reduction in research and development expense and the non-recurrence in 2005 of early retirement costs recorded in 2004.

EBIT* at the Eurocopter Division increased to €212 million for 2005 from €201 million for 2004, reflecting a 20% increase in deliveries (334 in 2005, as compared to 279 in 2004) and the effects of the first-time consolidation of Australian Aerospace. This volume impact was partially offset by a (i) negative effect from the U.S. Dollar, (ii) a negative mix effect, (iii) higher selling and general administrative expenses and (iv) increased R&D expenses for the EC175.

The DS Division’s EBIT* decreased to €201 million for 2005 from €226 million for 2004 (which included the release of a €106 million provision relating to a concluded litigation with Thales). Despite improved operational performance at the division in 2005, ongoing unmanned aerial vehicles (“UAV”) projects had a €100 million negative impact on 2005 EBIT*. Restructuring expenses were €53 million lower than in 2004, while research and development expenses were €22 million higher.

The Space Division’s EBIT* increased to €58 million for 2005 from €9 million for 2004, primarily reflecting (i) the positive impact of operational efficiencies derived from prior years’ restructuring efforts and (ii) the release of an allowance for receivables recorded in 2004 relating to Starsem.

Operational and impairment losses, as well as restructuring charges, at Sogerma in 2005 led to a €173 million decrease in EBIT* of Other Businesses as compared to 2004. The losses at Sogerma widened by €198 million and were partially offset by improved positive EBIT* at ATR, Socata and EFW.

Headquarters / Consolidation EBIT* increased to €197 million for 2005 from €49 million for 2004, primarily reflecting the increase in ‘share of profit from associates’ from EADS’ investment in Dassault Aviation, including a positive €64 million catch-up of Dassault Aviation’s 2004 IFRS results (as compared to a negative €(33) million catch-up in 2004), as well as gains from real estate disposals totalling €31 million.

2004 compared to 2003. EADS’ consolidated EBIT* increased to €2.4 billion for 2004 from €1.5 billion for 2003, primarily reflecting (i) the turnaround at the Space Division from negative €(400) million in 2003 to positive €9 million in 2004 and (ii) stronger performance at Airbus resulting mainly from higher deliveries.

Airbus’ EBIT* increased to €1.9 billion for 2004 from €1.4 billion for 2003, reflecting both an increase in number of aircraft delivered (320 in 2004, as compared to 302 in 2003) and a more favourable product mix. Also affecting EBIT* were the initial results of the “Route 06” cost savings programme implemented in 2002 (€50 million).

Airbus’ EBIT* also included a €232 million positive accounting currency effect resulting from the difference between the historical exchange rates used to convert U.S. Dollar-denominated customer advances received and the corresponding U.S. Dollar-denominated costs for aircraft delivered in 2004. See “Critical Accounting Considerations, Policies and Estimates — Accounting for Foreign Currency Denominated Operations in the Financial Statements”. This was partially offset by a negative €(100) million impact of less favourable rates of cash flow hedges maturing in 2004 as compared to 2003.

The MTA Division’s EBIT* decreased to €26 million for 2004 from €30 million for 2003, reflecting the effects of higher early retirement costs and commercial costs associated with the U.K. AirTanker programme.

EBIT* at the Eurocopter Division increased to €201 million for 2004 from €160 million for 2003. The increase primarily reflects the ramp-up of the NH90 and Tiger programmes and the effect of a revaluation of fixed assets (€18 million).

The DS Division’s EBIT* was €226 million for 2004, as compared to €171 million for 2003. Excluding the effect of the release of a €106 million provision relating to a now-concluded litigation with Thales, the DS Division’s EBIT* would have decreased, primarily as a result of ongoing restructuring costs (€88 million in 2004 as compared to €50 million in 2003).

The results of several years of intensive restructuring efforts were reflected in the Space Division’s positive EBIT* of €9 million for 2004, a €409 million increase from 2003.

EBIT* of the Other Businesses decreased to €2 million for 2004 from €57 million for 2003. The decrease reflects EBIT* degradation in Sogerma’s maintenance, repair and overhaul business, as well as the continuing downturn of the regional aircraft market.

The decrease of Headquarters / Consolidation EBIT* to €49 million for 2004, from €172 million for 2003, reflects the decrease in “share of profits from associates” from EADS’ investment in Dassault Aviation, including a negative €(33) million catch-up of Dassault Aviation’s 2003 IFRS results (as compared to a positive €77 million catch-up in 2003).

Hedging Impact on EBIT*. Nearly two-thirds of EADS’ consolidated revenues in 2005 were denominated in currencies other than the Euro. Given the long-term nature of EADS’ business cycles (evidenced by its multi-year backlog), the Company hedges its net foreign exchange exposure to mitigate the impact of exchange rate fluctuations on its EBIT*. See “Hedging Activities — Foreign Exchange Rates” and “1. Financial Market Risks — Exposure to Foreign Currencies”.

During 2005, cash flow hedges covering approximately U.S.$12.7 billion of EADS’ U.S. Dollar-denominated revenues matured. In 2005, the compounded exchange rate at which hedged U.S. Dollar-denominated revenues were accounted for was €-U.S.$1.056, as compared to €-U.S.$0.987 in 2004. This difference resulted in a €720 million decrease in EBIT* from 2004 to 2005, of which approximately 90% was at Airbus.

During 2004, cash flow hedges covering approximately U.S.$9.9 billion of EADS’ U.S. Dollar-denominated revenues matured. In 2004, the compounded conversion rate at which hedged U.S. Dollar-denominated revenues were accounted for was €-U.S.$0.987, as compared to €-U.S.$0.971 in 2003. This difference resulted in a €160 million decrease in EBIT* from 2003 to 2004, of which approximately two-thirds was at Airbus.

It is expected that the hedge book will increase in coming years in line with the forecasted growth in demand for aircraft and the corresponding impact on future deliveries combined with the active hedging policy of EADS. The conversion rates of the new hedges will reflect the state of the U.S. Dollar versus the Euro at the time such hedges are entered into.

The tables below set forth the notional amount of foreign exchange hedges in place as of 31st December 2005, and the average U.S. Dollar rates applicable to corresponding EBIT*.

Restructuring. Since its formation in 2000, EADS has implemented, and continues to implement, a number of restructuring plans to further enhance its competitive position in the challenging markets in which it operates. Total restructuring charges of €62 million were recorded in the 2005 IFRS consolidated statement of income, decreasing from €129 million for 2004. For 2005, this included new provisions and current year charges primarily related to (i) the DS Division (€35 million, mainly MBDA) and (ii) restructuring at Sogerma (€27 million).

The related, yet to be implemented, restructuring burden is accounted for at year-end both as a provision and as other liabilities.