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

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.

The effect from applying in 2006 the IAS 19 equity approach instead of the corridor approach contributes 0.03 € to basic earnings per share. For further details please refer to Note 2 “Summary of significant accounting policies” and Note 21 b) “Provisions for retirement plans”.

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 2006, the average share price of EADS exceeded the exercise price of the stock options under the 1^st, 2^nd, 3^rd, 4^th, 5^th and 6^th stock option plan (in 2005: 1^st, 2^nd, 3^rd, 4^th, 5^th, and 6^th stock option plan; in 2004: 4^th and 5^th stock option plan). Hence, 4,130,499 shares (2005: 5,482,133 shares; 2004: 3,047,837 shares) were considered in the calculation of diluted earnings per share.

The effect from applying in 2006 the IAS 19 equity approach instead of the corridor approach contributes 0.03 € to diluted earnings per share. For further details please refer to Note 2 “Summary of significant accounting policies” and Note 21 b) “Provisions for retirement plans”.