EADS principal businesses fall under five Divisions: (1) Airbus, (2) Military Transport Aircraft, (3) Eurocopter, (4) Defence and Security Systems and (5) Space. The chart set out in “Simplified Group Structure Chart” illustrates the allocation of activities among these five Divisions.

In June 2005, the former Aeronautics Division, which included the Eurocopter, ATR, EADS EFW, EADS Socata and EADS Sogerma Services BUs, was dissolved and a new Eurocopter Division was created. Following this change to EADS’ organisational structure, EADS EFW and EADS Sogerma Services are under the direct responsibility of Gustav Humbert and ATR and EADS Socata are under the direct responsibility of Hans Peter Ring. In the adapted segment reporting, EADS allocates the four legacy Aeronautics BUs to “Other Businesses”.

Airbus

Airbus is one of the world’s two leading suppliers of commercial aircraft of more than 100 seats. Since it was founded in 1970 up to the end of 2005, Airbus has received 6,307 orders for aircraft from 225 customers worldwide. Its market share of annual deliveries worldwide has grown from 15% in 1990 to 57% in 2005, surpassing its rival Boeing for the third time. At 31st December 2005, its backlog of orders (2,177 aircraft) stood at 80% of total EADS worldwide backlog. Gross order intake was 1,111 aircraft and after accounting for cancellations, net order intake for 2005 was 1,055 aircraft. In 2005, the Airbus Division of EADS earned revenues of €22.2 billion, representing 65% of EADS total revenues. See “Airbus”.

Military Transport Aircraft

The MTA Division manufactures and sells light and medium military transport aircraft and is responsible for the development of the European heavy military transport A400M project. In addition, the MTA Division produces and sells mission aircraft, which are derived from existing platforms and dedicated to specialised military tasks such as maritime surveillance, antisubmarine warfare and in-flight refuelling capabilities. The MTA Division also designs and manufactures aerostructure elements. The MTA Division earned consolidated revenues of €763 million accounting for 2% of EADS’ total revenues for 2005. The €19.7 billion contract to manufacture and deliver the A400M was signed in 2003, contributing to significant future revenue growth for EADS. See “Military Transport Aircraft”.

Eurocopter

Eurocopter is one of the world’s leading producers of helicopters and the leader in the European civil and military helicopter market. Management expects Eurocopter sales in the military market to increase substantially due to the commencement of delivery of the Tiger attack helicopter, the strong backlog of the NH90 military transport helicopter and the increasing demand in military and para-military export markets. In 2005, Eurocopter captured 52% of the worldwide market for civil helicopters and 18% of the worldwide market for military helicopters. The Eurocopter Division earned consolidated revenues of €3.2 billion representing 9% of EADS’ total revenues for 2005. See “Eurocopter”.

Defence and Security Systems

The Defence and Security Systems Division (the “DS Division”) is active in the field of integrated defence and security solutions including missile systems, combat aircraft, defence electronics, military communications and “homeland security”. Its customers are military forces and law enforcement agencies worldwide. In 2005, EADS’ subsidiary MBDA maintained as the worldwide leader missile system manufacturer. Its Military Air Systems unit is a leading partner in the Eurofighter consortium and is also active in the UAV field. EADS is the third largest supplier of defence electronics in Europe and plays a significant role in the secure and encrypted military communications market. The DS Division is also increasingly active in the ‘homeland security’ market. On a consolidated basis, the DS Division earned revenues of €5.6 billion for 2005, representing 16% of EADS’ total revenues. See “Defence and Security Systems”.

Space

EADS is the third largest space systems manufacturing company in the world after Boeing and Lockheed Martin and the leading European supplier of satellites, orbital infrastructures and launchers. The Space Division designs, develops and manufactures satellites, orbital infrastructures and launchers largely through its subsidiaries EADS Astrium and EADS Space Transportation (“EADS ST”), and provides space services through its EADS Space Services subsidiary. The Space Division also provides launch services, through its shareholdings in Arianespace, Starsem and Eurockot, as well as services related to telecommunications and earth observation satellites, through dedicated companies, such as Paradigm. For 2005, the consolidated revenues of the EADS Space Division amounted to €2.7 billion, or 8% of EADS’ total revenues. See “Space”.

Investment

Among its significant investments, EADS holds a 46.3% stake in Dassault Aviation, a major participant in the world market for military jet aircraft and business jets. See Investments”.