Basic earnings per share — Basic earnings per share are calculated by dividing profit (loss) for the period attributable to equity holders of the parent (Net income (loss)) by the weighted average number of issued ordinary shares during the year, excluding ordinary shares purchased by the Group and held as treasury shares.

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 2007, the average share price of EADS exceeded the exercise price of the stock options under the 1^st, 2^nd, 4^th and 5^th stock option plan (in 2006 and 2005: 1^st, 2^nd, 3^rd, 4^th, 5^th, and 6^th stock option plans). Hence, 2,420,180 shares (2006: 4,130,499 shares; 2005: 5,482,133 shares) were considered in the calculation of diluted earnings per share.