The Board of Directors met ten times during 2006 and was regularly informed of developments through reports from the Chief Executive Officers (CEOs), including rolling forecasts and strategic and operational plans. The average attendance rate at meetings was 95%.

Following a detailed review of the A380 production and delivery programme, Airbus informed the Board on 13^thJune that the aircraft’s delivery schedule for 2006 to 2009 had been revised. The Board immediately disclosed the new schedule and its financial impact, making a further disclosure on 3^rd October 2006.

Management was strengthened and streamlined. On 2^nd July 2006, the Board appointed Louis Gallois as Co-CEO of EADS, replacing Noël Forgeard, and appointed Christian Streiff as new President and CEO of Airbus. Both became Members of the Executive Committee. In a further change to the management structure, Louis Gallois was additionally appointed Airbus President and CEO on 9^thOctober, following Christian Streiff’s resignation. EADS’ non-Airbus Divisions report to Co-CEO Thomas Enders. On 31^stOctober, the Board appointed EADS Chief Operating Officer (COO) Finance, Hans Peter Ring, additionally as Airbus Chief Financial Officer. Also on that date, Fabrice Brégier was appointed COO of Airbus and Lutz Bertling CEO of Eurocopter. Both are Members of the Executive Committee.

Topics discussed at the Board meetings included: strategy (including merger & acquisition strategy relating to acquiring BAE Systems’ stake in Airbus); major business issues such as the A380 recovery plan and the Power8 programme; the A350 industrial launch decision and Airbus future product strategy; reviews of the EADS Unmanned Aerial Vehicle and A400M programmes; the review of EADS Sogerma’s future strategy; approval or postponement of operational plans; reorganisation topics; budgets; the Group’s financial results and forecasts; financial optimisation; and implementation of an ethics alert system. The Board also discussed personnel and human resources issues.

The Audit Committee met five times during 2006, reviewing the 2005 results, 2006 half-year results and quarterly financial reviews. The Remuneration and Nomination Committee met five times to make recommendations to the Board regarding major appointments. Additionally, it reviewed the following topics: compensation policy, the new Executive Committee Members’ salaries, 2005 bonus payments, the long-term incentive plan and the 2006/07 employee share ownership plan. It also reviewed Executive Committee Members’ salaries for 2006.

In line with the Board’s policy of more thoroughly assessing its performance every three years, an independent and internationally reputable consulting firm was commissioned in late 2006. In the course of the evaluation, the external consultant held individual meetings with all EADS Directors (Executive and non-Executive).

While recognising the unique shareholding structure, the review concluded that the Board has been working as a cohesive entity, in an open, constructive and interactive atmosphere. Board members emphasised that decisions are always taken in EADS’ best interests.