Set forth below is a breakdown of EADS’ consolidated EBIT* by division for the past three years.

2007 compared to 2006. EADS’ consolidated EBIT* decreased by 87.0%, from €0.4 billion for 2006 to €0.1 billion for 2007, primarily reflecting the increased loss at Airbus as well as the loss at the MTA Division. This decrease was partially offset by an increase in EBIT* at Other Businesses and at Astrium.

Airbus’ EBIT* decreased by 54.0%, from €(0.6) billion for 2006 to €(0.9) billion for 2007, primarily reflecting (i) a larger loss-making contract provision recorded in respect of the A400M programme, (ii) a restructuring expense recorded in respect of Power8 implementation, (iii) charges recorded in respect of the A350 XWB programme, and (iv) an approximate €(0.2) billion deterioration in the price of delivered aircraft. See “Overview — Significant Programme and Restructuring Developments in 2006 and 2007”. Also contributing to the decrease was an approximate €(0.2) billion negative impact of exchange rate effects relating to (x) generally less favourable rates of hedges that matured in 2007 as compared to 2006 (based on Airbus’ 2007 compounded conversion rate of €-U.S.$1.14, as compared to €-U.S.$1.10 in 2006) which had a negative effect of €(0.4) billion and (y) revaluation of loss-making contract provisions which had a negative effect of €(0.4) billion, partially offset by (z) gains on maturing A380 hedges and some positive impact of the revaluation of certain assets and liabilities and other currency translation adjustments. See “Critical Accounting Considerations, Policies and Estimates — Foreign Currency Translation”. The decrease in EBIT* was partially offset by (i) an increase in the number of aircraft delivered (453 in 2007, as compared to 434 in 2006), (ii) lower charges recorded in respect of the A380 programme, and (iii) initial savings from Power8.

The MTA Division’s EBIT* decreased from €75 million for 2006 to €(155) million for 2007, primarily reflecting (i) a margin reduction of €(92) million recorded in respect of the A400M programme as a result of the announced delay, combined with revenue recognition of only two milestones in 2007 as compared to five in 2006, and (ii) €(62) million of inventory write-down related to medium and light aircraft. See “Overview — Significant Programme and Restructuring Developments in 2006 and 2007”.

The Eurocopter Division’s EBIT* decreased by 17.9%, from €257 million for 2006 to €211 million for 2007, primarily reflecting a margin correction and provision in the NH90 programme for €(125) million. The decrease in EBIT* was partially offset by a record level of deliveries (488 in 2007, as compared to 381 in 2006) with a favourable mix effect.

The DS Division’s EBIT* decreased by 2.3%, from €348 million for 2006 to €340 million for 2007, due primarily to (i) the change of consolidation effect relating to MBDA in 2007, and (ii) higher one-time effects in 2006 (mainly €121 million higher capital gains). The decrease in EBIT* was partially offset by (i) improved operating performance at Defence & Communication Systems, Defence Electronics and Military Air Systems, and (ii) restructuring costs that were lower than in 2006. At comparable perimeter, the DS Division’s EBIT* increased by 6.9% in 2007 compared to 2006.

Astrium’s EBIT* increased by 33.8%, from €130 million for 2006 to €174 million for 2007, primarily reflecting an increased contribution from services, in particular from Paradigm Secure Communications Ltd., as well as a volume increase and better process efficiency in space transportation. The increase in EBIT* was partially offset by a decline in the satellites business.

The EBIT* of Other Businesses increased from €(288) million for 2006 to €94 million for 2007. EBIT* in 2006 primarily reflected the burden of non-recurring asset impairment charges and restructuring provisions recorded at EADS Sogerma. In contrast, EBIT* was positive at EADS Sogerma in 2007, while also increasing at ATR, EFW and Socata.

Headquarters/Consolidation EBIT* decreased by 40.1%, from €449 million for 2006 to €269 million for 2007, primarily reflecting the €(169) million consolidation adjustment at group level in respect of the A400M programme in 2007, in contrast to the positive €286 million adjustment in 2006. See “Overview — Significant Programme and Restructuring Developments in 2006 and 2007”. Partially offsetting the decrease in EBIT* was an increase in “share of profit from associates accounted for under the equity method” from EADS’ investment in Dassault Aviation, including a positive €17 million IFRS catch-up in 2007 (as compared to the absence of an IFRS catch-up in 2006), as well as a higher €69 million in gains from real estate disposals and the sale of Embraer shares totalling €46 million.

2006 compared to 2005. EADS’ consolidated EBIT* decreased to €0.4 billion in 2006 from €2.9 billion in 2005, primarily reflecting the loss at Airbus and the impairment and restructuring charges recorded at EADS Sogerma. This decrease was slightly offset by an increase in EBIT* at EADS’ four other operating divisions.

Airbus’ EBIT* decreased to €(0.6) billion in 2006 from €2.3 billion in 2005, primarily reflecting (i) cost overruns, provisions and impairment charges recorded in connection with the A380 programme, (ii) a loss at completion provision recorded in respect of the A400M programme, and (iii) a provision recorded for the buy-out of delivery commitments under firm orders for the former A350 aircraft. See “Overview — Significant Programme and Restructuring Developments in 2006 and 2007”. Also contributing to the decrease was (i) an approximate €(720) million negative impact of exchange rate effects relating to (x) generally less favourable rates of hedges that matured in 2006 as compared to 2005 (based on Airbus’ 2006 compounded conversion rate of €-U.S.$1.10, as compared to €-U.S.$1.04 in 2005) which had a negative effect of €(820) million, partially offset by (y) a €100 million positive impact of the revaluation of certain assets and liabilities and other currency translation adjustments, as well as (ii) a €376 million increase in research and development expenses in 2006. The decrease in EBIT* was partially offset by an increase in the number of aircraft delivered (434 in 2006, as compared to 378 in 2005), as well as operational efficiency gains resulting mainly from the “Route 06” cost savings programme totalling approximately €500 million.

The MTA Division’s EBIT* increased to €75 million for 2006 from €48 million for 2005, primarily reflecting the margin impact on revenue recognition for the completion of five milestones under the A400M programme in 2006 (including the positive €17 million EBIT* impact from the shift of revenue recognition for one milestone to the first quarter of 2006), compared to only one milestone in 2005.

The Eurocopter Division’s EBIT* increased to €257 million for 2006 from €212 million for 2005, primarily reflecting (i) a record level of deliveries (381 in 2006, as compared to 334 in 2005) with a favourable mix effect, (ii) progress made on military programmes and (iii) increased customer support activities. This volume impact was partially offset by (i) a negative effect from the U.S. dollar, (ii) higher selling and administrative expenses following activity ramp-up and (iii) increased production contract costs related to the NH90.

The DS Division’s EBIT* increased to €348 million for 2006 from €201 million for 2005, due primarily to (i) improved operating performance, (ii) capital gains in 2006 totalling €127 million (mainly on the sale of LFK GmbH to MBDA), and (iii) €58 million in lower costs in 2006 relating to unmanned aerial vehicles (“UAV”) projects, which in 2005 had a €100 million negative impact on EBIT*. The EBIT* increase was partially offset by restructuring costs that were €73 million higher than in 2005 and by perimeter effects.

Astrium’s EBIT* increased to €130 million for 2006 from €58 million for 2005, primarily reflecting (i) a volume increase relating to progress made on Ariane 5 production, ballistic missile deliveries and Paradigm services and (ii) the positive impact of operational efficiencies derived from prior years’ restructuring efforts.

The EBIT* of Other Businesses decreased by €117 million compared to 2005, to €(288) million. The decrease was primarily due to asset impairment charges and restructuring provisions recorded at EADS Sogerma prior to the sale of its remaining 60% share in Sogerma Services as well as the shares of the subsidiaries Barfield and Sogerma Tunisia to the TAT Group in January 2007. EADS Sogerma recorded EBIT* of €(351) million in 2006 (compared to €(237) million in 2005), with an underlying operation loss of €(96) million in addition to these impairment charges and restructuring provisions. The loss at EADS Sogerma was partially offset by positive EBIT* at ATR, EFW and Socata.

Headquarters/Consolidation EBIT* increased to €449 million for 2006 from €197 million for 2005, primarily reflecting the consolidation reversal of the provision related to the A400M programme recorded at Airbus. See “Overview — Significant Programme and Restructuring Developments in 2006 and 2007”. Partially offsetting this increase was a decrease in “share of profit from associates accounted for under the equity method” from EADS’ investment in Dassault Aviation, reflecting the absence of a catch-up in 2006 of Dassault Aviation’s 2005 income (as compared to a €64 million catch-up in 2005 for 2004 results).

Foreign Currency Impact on EBIT*. More than 60% of EADS’ consolidated revenues in 2007 were denominated in currencies other than the Euro. Given the long-term nature of its business cycles (evidenced by its multi-year backlog), EADS hedges a significant portion of its net foreign exchange exposure to mitigate the impact of exchange rate fluctuations on its EBIT*. See “Hedging Activities — Foreign Exchange Rates” and “Financial Market Risks — Exposure to Foreign Currencies”. In addition to the impact that hedging activities have on EADS’ EBIT*, the latter is also affected by the impact of revaluation of certain assets and liabilities at the closing rate, such as loss-making contract provisions, and currency translation adjustments related to former Airbus GIE, as described above.

During 2007, cash flow hedges covering approximately U.S.$16.3 billion of EADS’ U.S. dollar-denominated revenues matured. In 2007, the compounded exchange rate at which hedged U.S. dollar-denominated revenues were accounted for was €-U.S.$1.16, as compared to €-U.S.$1.12 in 2006. This difference resulted in an approximate €(450) million decrease in EBIT* from 2006 to 2007, of which approximately €(400) million was at Airbus. This decrease, together with the revaluation of loss-making contract provisions which had a negative effect of €(400) million, was partially offset by the €667 million positive impact of gains on matured A380 hedges and some higher positive impact of the revaluation of certain assets and liabilities and currency translation adjustments related to former Airbus GIE.

During 2006, cash flow hedges covering approximately U.S.$14.7 billion of EADS’ U.S. dollar-denominated revenues matured. In 2006, the compounded exchange rate at which hedged U.S. dollar-denominated revenues were accounted for was €-U.S.$1.12, as compared to €-U.S.$1.06 in 2005. This difference resulted in an approximate €(900) million decrease in EBIT* from 2005 to 2006, of which approximately €(820) million was at Airbus. This decrease was partially offset by the €100 million positive impact of the revaluation of certain assets and liabilities and currency translation adjustments related to former Airbus GIE.

The tables below set forth the notional amount of foreign exchange hedges in place as of 31^st December 2007, and the average U.S. dollar rates applicable to corresponding EBIT*.

Restructuring. Total restructuring expenses of €(677) million were recorded in 2007, compared to €(168) million in 2006. For 2007, this included expenses primarily related to (i) Airbus (€(624) million), relating to Power8 implementation, and (ii) the DS Division (€(53) million). The related, yet to be implemented, restructuring burden is accounted for at year-end both as a provision and as other liabilities.