The following table sets forth the composition of investments in associates accounted for under the equity method, other investments and long-term financial assets:

Investments in associates accounted for under the equity method as of December 31^st, 2006 and 2005, mainly contain EADS’ interest in Dassault Aviation Group (46.30% at December 31^st, 2006 and at December 31^st, 2005) of 1,985 M € and 1,867 M €. The Dassault Aviation Group reported in 2006 a net income of 281 M € of which EADS recognised an amount of 130 M € according to its share of interest.

The 2005 equity investment income from Dassault Aviation also included a positive catch up of the prior year financial performance in accordance with IFRS, which amounted to 64 M €. In addition as at December 31^st, 2006, 34 M € (in 2005: (18) M €) were recognised in AOCI in relation with the Dassault Aviation equity investment.

The following table illustrates summarised financial information of the EADS investment of 46.3% in Dassault Aviation as of December 31^st, 2006 and 2005:

A list of major investments in associates and the proportion of ownership is included in Appendix “Information on principal investments”.

Other investments comprise EADS’ investment in various non-consolidated entities, the most significant being at December 31^st, 2006, the investment in Embraer of 123 M € (2005: 106 M €) and a participation of 10% in Irkut amounting to 77 M € (2005: 54 M €). Regarding the investment in Embraer, please refer to Note 37 “Events after the balance sheet date”.

Long-term financial assets of 1,121 M € (in 2005: 1,397 M €) and the current portion of long-term financial assets of 103 M € (in 2005: 237 M €) encompass mainly the Group’s sales finance activities in the form of finance lease receivables and loans from aircraft financing. They are reported net of accumulated impairments. These sales financing transactions are generally secured by the underlying aircraft used as collateral (see Note 29 “Commitments and contingencies” for details on sales financing transactions).

Loans from aircraft financing are provided to customers to finance the sale of aircraft. These loans are long-term and normally have a maturity which is linked to the use of the aircraft by the customer. The calculation of the net book value is:

Finance lease receivables from aircraft financing are as follows:

Future minimum lease payments from investments in finance leases to be received are as follows (not discounted):

Additionally included are 437 M € and 389 M € of other loans as of December 31^st, 2006 and 2005, e.g. loans to employees.

Defeased bank deposits of 927 M € and 1,102 M € as of December 31^st, 2006 and 2005, respectively have been offset against financial liabilities.