The following table sets forth a summary of the statement of changes in consolidated total equity for the period 1st January 2005 through 31st December 2005.

The decrease in consolidated total equity in 2005 primarily reflects the effects of changes in accumulated other comprehensive income (“AOCI”), partly offset by the year’s higher net income. Set out below is a discussion of AOCI and its impact on consolidated total equity. For a discussion of the other line items impacting consolidated total equity, see “Notes to Consolidated Financial Statement (IFRS) — Note 20: Total equity”.

In 2005, AOCI decreased by €3,698 million. The change in AOCI was due to the negative variation (after accounting for deferred taxes) of the year-end mark-to-market valuation of that portion of EADS’ hedge portfolio qualifying for hedge accounting under IAS 39.

At 31st December 2005, the notional amount of the outstanding portfolio of hedges qualifying for IAS 39 hedge accounting treatment (“cash flow hedges”) amounted to approximately U.S.$47.1 billion hedged against the Euro and the Pound Sterling. The year-end mark-to-market valuation of EADS’ portfolio of cash flow hedges resulted in a negative valuation change of €5.7 billion from 31st December 2004, based on a closing rate of €-U.S.$1.18, as compared to a positive valuation change of €0.9 billion from 31st December 2003 based on a closing rate of €-U.S.$1.36.

Positive pre-tax mark-to-market values of cash flow hedges are included in other assets, while negative pre-tax mark-to-market values of cash flow hedges are included in provisions for financial instruments. Year-to-year changes in the mark-to-market value of cash flow hedges are recognised as adjustments to AOCI. These adjustments to AOCI are net of corresponding changes to deferred tax assets (for cash flow hedges with negative mark-to-market valuations) and deferred tax liabilities (for cash flow hedges with positive mark-to-market valuations).

Set out below is a graphic presentation of cash flow hedge related movements in AOCI over the past three years (in €m).

As a result of the negative change in the fair market valuation of the cash flow hedge portfolio in 2005, AOCI-related net assets decreased to €3.0 billion for 2005 from €8.8 billion for 2004. The corresponding €2.0 billion tax effect decreased the AOCI-related deferred tax liability to €1.1 billion at 31st December 2005.

The negative €(58) million currency translavtion adjustment (CTA) related impact on AOCI in 2005 reflects the consequences (negative €(237) million) of the merger of Airbus Groupement d’intérêt économique (“Airbus GIE”) (a U.S. Dollar-denominated entity) into Airbus SAS (a Euro-denominated entity), which were mostly offset by the positive effects of the strengthening U.S. Dollar. Before the merger, Airbus GIE operations were recorded at the current exchange rate of the period except for those hedged with financial instruments. As from 1st January 2004, former Airbus GIE operations are recorded on the basis of historical exchange rates. As a result, no additional CTA is generated by former Airbus GIE operations. The portion of outstanding CTA as at 31st December 2003, booked in respect of non-monetary balance sheet items relating to transactions realised as from 1st January 2004 (i.e., mainly aircraft deliveries), is gradually released to the consolidated statement of income, in line with such deliveries.