The profit for the period attributable to equity holders of the parent (Net income) for 2004 and 2003 was adjusted due to retrospective application of IFRS 2 “Share-based Payment” amounting to €(12) million in 2004 (in 2003: €0 million) and IAS 32 “Financial Instruments: Disclosure and Presentation” (revised 2004) in 2004 with an amount of €185 million (in 2003: €54 million).

Basic earnings per share – Basic earnings per share are calculated by dividing profit for the period attributable to equity holders of the parent (Net income) by the weighted average number of issued ordinary shares during the year, excluding ordinary shares purchased by the Group and held as treasury shares.

Diluted earnings per share – For the calculation of the diluted earnings per share, the weighted average number of ordinary shares is adjusted to assume conversion of all potential ordinary shares. The Group’s only category of dilutive potential ordinary shares is stock options. In 2005, the average share price of EADS exceeded the exercise price of the stock options under the 1st, 2nd, 3rd, 4th, 5th, and 6th stock option plan (in 2004: 4th and 5th stock option plan). Hence, 5,482,133 shares (2004: 3,047,837 shares) were considered in the calculation of diluted earnings per share. In 2003, there was no dilution impact of shares under all existing stock option plans. As a consequence, the weighted average number of shares outstanding was the same for both basic and diluted earnings per share.