The Group’s objective is to maintain sufficient cash and cash equivalents at all times to meet its present and future cash requirements and maintain a favourable credit rating. It attempts to achieve this policy objective by:

• Implementing measures designed to generate cash;
• Developing and maintaining access to the capital markets; and
• Containing its exposure to customer financing.

EADS benefits from a strong positive cash position, with €11.8 billion of consolidated gross cash (including securities of €4.3 billion) at 31^st December 2007. This cash position is further supported by a €3.0 billion syndicated back-up facility. Overall, financial liabilities (short and long-term) amounted to €4.8 billion at 31^st December 2007.

EADS defines its consolidated net cash position as the difference between (i) cash, cash equivalents and securities and (ii) financial liabilities (as recorded in the Consolidated Balance Sheet). The net cash position at 31^st December 2007 was €7.0 billion. The factors affecting EADS’ cash position, and consequently its liquidity risk, are discussed below.