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Annual Review Financial Statements and
Corporate Governance
Business, Legal and
Corporate Responsibility
Contents
EADS 2006 at a Glance
Financials 2006
The Year 2006 in Review
The Divisions
Key Figures 2006
EADS Shares
EADS Global Footprint
Management & Responsibility
Letter from the
Chairmen of the Board
Chief Executive Officers’ Statement
The CEOs in Dialogue
Corporate Governance
Organisational Structure
Executive Committee
The Full Picture: Transformation
It´s About Moving On.
Look at all Sides of the Story.
Continue to Ask Questions…
The Business Year 2006
Markets and Perspectives

Commercial Aviation

Defence & Security

Space

Airbus
Power8
Military Transport Aircraft
Eurocopter
Defence & Security
Astrium
Inside EADS
Research & Technology
Sourcing
Human Resources
Corporate Social Responsibility

Encouraging Female Scientists

PAMELA: A new Dimension in Environmental Care

Useful Information
Glossary
Addresses
Financial Calendar 2007
IR Contact
Contents
Financial Policy
Risk Factors
Financial Market Risks

Exposure to Foreign Currencies

Exposure to Sales Financing Risk

Counterparty Credit Risk

Exposure on Equity Investment Portfolio

Business-Related Risks
Legal Risks
Industrial and Environmental Risks
Net Assets – Financial Position – Results
Contents
Management's Discussion and Analysis of Financial Condition and Results of Operations

Certain Information

Overview

Critical Accounting Considerations, Policies and Estimates

Scope of and Changes in Consolidation Perimeter

Employee Benefits – IAS 19

U.K. Pension Commitments

Fair Value Adjustments

Impairment of Assets

Research and Development Expenses

Accounting for Hedged Foreign Exchange Transactions in the Financial Statements

Foreign Currency Translation

Accounting for Sales Financing Transactions in the Financial Statements

Measurement of Management’s Performance

Order Backlog

Use of EBIT

EBIT Performance by Division

EADS Results of Operations

IFRS Consolidated Statements of Income

Consolidated Revenues

Detailed Explanation of IFRS Consolidated Statements of Income

Changes in Consolidated Total Equity (including Minority Interests)

Liquidity and Capital Resources

Introduction

Cash Flows

Consolidated Cash and Cash Equivalents

Consolidated Financial Liabilities

Sales Financing

Hedging Activities

Foreign Exchange Rates

Interest Rates

Financial Statements

Contents

Consolidated Financial Statements (IFRS)

Consolidated Income Statements (IFRS)

Consolidated Balance Sheets (IFRS)

Consolidated Statements of Cash Flows (IFRS)

Consolidated Statements of Recognised Income and Expenses (IFRS)

Additional Information: Reconciliation of Movement in Capital and Reserves (IFRS)

Notes

Appendix: Information on principal investments - Consolidation Scope

Auditors‘ Report on the Consolidated Financial Statements (IFRS)

Company Financial Statements

Balance Sheet of the Company Financial Statements

Income Statement of the Company Financial Statements

Notes

Supplementary Information

Statutory Auditors´ Fees
Information Regarding the Statutory Auditors
Corporate Governance
Introduction
Contents
Management and Control

Board of Directors, Chairmen and Chief Executive Officers

Audit Committee

Remuneration and Nomination Committee

Executive Committee

Internal Control and Risk Management Systems

Overview

RM System

IC System

Business Processes Covered by the IC System

Interests of Directors and Principal Executive Officers

Compensation Granted to Directors and Principal Executive Officers

Long Term Incentives Granted to the Two Chief Executive Officers

Related Party Transactions

Loans and Guarantees Granted to Directors

Employee Profit Sharing and Incentive Plans

Employee Profit Sharing and Incentive Agreements

Employee Share Ownership Plans

Long Term Incentive Plans

2007 Calendar of Financial Communication
Contents
Information on EADS Activities
Contents
Presentation of the EADS Group

Overview

2006 Highlights

Strategy

Organisation of EADS Businesses

Summary Financial and Operating Data

Relationship Between EADS N.V. and the Group

Airbus

Introduction and Overview

Strategy

Market

Customers

Organisation of Airbus

Products and Services

Production

Military Transport Aircraft

Introduction and Overview

Strategy

Market

Products

Eurocopter

Introduction and Overview

Strategy

Market

Products and Services

Customer Support

Customers and Marketing

Production

Defence & Security

Introduction and Overview

2006 Highlights for the DS Division

Strategy

Defence and Communications Systems (DCS)

Defence Electronics (DE)

Military Air Systems

Missile Systems

Astrium

Introduction and Overview

Strategy

Satellites – Astrium Satellites

Orbital Infrastructure/Launchers and Launch Services – Astrium ST

Space Services – Astrium Services

Production

Other Businesses

Regional Aircraft – ATR

General Aviation

Aircraft Conversion and Floor Panels

Investments

Insurance

Legal and Arbitration Proceedings

Incorporation by Reference

Recent Developments
Corporate Social Responsibility
Contents
Introduction

Introduction

EADS Code of Ethics

EADS CSR policies

Business Ethics

Proper Business Practices

Export Control Compliance

Compliance with Law Regarding all EADS' Activities

Corporate Governance Standards

Sustainable Growth

Product Quality and Customer Satisfaction

Sustaining and Protecting Innovation

Supplier Management: Fostering a Mutually Beneficial Relationship with EADS' Suppliers

Environmental Care

Policy

Organisation

Performance and Best Practices

Human Resources: Employer – Employee Relationship

Workforce Information and Organisation of Work

Human Resources Organisation

Human Resources Policies and Performances

Health and Safety: Providing a Safe Workplace for EADS Employees and Subcontractors

Caring for EADS Employees and EADS Know-How

Diversity: Commitment to Ensure Equal Opportunity for all EADS Employees

Career Development: Efficient Management of Skills and Know-How

Employee Relations: A Proactive Dialogue

Corporate Citizenship

Maintaining an Open Dialogue with EADS' Stakeholders

Encompassing Community Interests in EADS' Global Strategy

General Description of the Company and its Share Capital
Contents
General Description of the Company

Commercial and Corporate Names, Seat and Registered Office
Legal Form

Governing Laws

Date of Incorporation and Duration of the Company
Objects of the Company
Commercial and Companies Registry
Inspection of Corporate Documents
Financial Year
Allocation and Distribution of Income

General Meetings

Disclosure of Holdings

Mandatory Tender Offers

General Description of the Share Capital

Modification of Share Capital or Rights Attaching to the Shares

Issued Share Capital

Authorised Share Capital

Securities Granting Access to the Company's Capital

Changes in the Issued Share Capital Since Incorporation of the Company

Shareholdings and Voting Rights

Shareholding Structure

Relationships with Principal Shareholders

Relationships with Principal Shareholders

Transfer of EADS Shares

Control of EADS

Change of Control

Events of Default Other Than Change of Control

Specific Rights and Undertakings of the French State

SOGEADE

DADC

Form of Shares

Changes in the Shareholding of the Company Since its Incorporation

Persons Exercising Control over the Company

Simplified Group Structure Chart

Purchase by the Company of its Own Shares

Dutch Law and Information on Share Buy-Back Programmes

French Regulations

German Regulations

Spanish Regulations

Description of the Share Buy-Back Programme to be Authorised by the Annual General Shareholders' Meeting to be held on 4th May 2007

Dividends

Dividends and Cash Distributions Paid Since the Incorporation of the Company

Dividend Policy of EADS

Unclaimed Dividends

Taxation

Annual Securities Disclosure Report
Entity Responsible for the Registration Document