The Group’s policy is to maintain sufficient cash and cash equivalents at all times to meet its present and future cash requirements. This policy objective is met through:

• implementation of measures designed to generate cash;
• developing and maintaining access to the capital markets; and
• containment of exposure to customer financing.

EADS benefits from a strong cash position, with €10.6 billion of consolidated gross cash (including securities of €1.0 billion) at 31st December 2005. This cash position is further supported by a €3.0 billion syndicated back-up facility. Overall, financial liabilities (short and long-term) amounted to €5.1 billion at 31st December 2005.

EADS calculates its consolidated net cash position as the difference between (i) cash, cash equivalents and securities and (ii) financial liabilities (as recorded in the consolidated balance sheet). The net cash position at 31st December 2005 was €5.5 billion. The factors affecting EADS’ cash position, and consequently its liquidity risk, are discussed below.