EADS Guidance for 2006

Status as of 8th March 2006 (confirmed on 16th May 2006)

EBIT* expected between € 3.2 bn
and € 3.4 bn
EPS expected between € 2.35 and € 2.55
Revenues more than € 37 bn expected
Free Cash Flow before
customer financing
expected to remain robust
Airbus deliveries expected to grow by at least 10%
(378 aircraft in 2005)


EADS expects its 2006 revenues to grow to more than € 37 billion (FY 2005: € 34.2 billion), powered by the over 10 percent increase of Airbus deliveries and higher volume from its combined defence businesses. EADS uses a planning rate of € 1 = US$ 1.30.

EBIT* is expected to grow to between € 3.2 billion and € 3.4 billion (FY 2005: € 2.85 billion) reflecting the higher volume at Airbus, but also due to better operational efficiencies across all divisions (including Route06 cost saving programme), however partially offset by higher than expected losses at Sogerma and the continuing US Dollar headwind arising from the maturity of less attractive hedges. In light of the above, EADS confirms its 2006 EBIT* guidance. The EBIT* guidance, as a range, recognizes the existence of contingencies for risk which can only be adjusted as the year progresses.

Free Cash Flow before Customer Financing is expected to remain robust in 2006, despite the build up of inventories related to the delivery ramp-up, particularly for the A380.

2006 EPS is expected to grow to between € 2.35 and € 2.55 (FY 2005: € 2.11), based on an expected average of around 795 million shares, and taking into account a US Dollar year-end closing rate similar to 2005.

This outlook does not reflect further impact of a potential exercise of BAE Systems' put option regarding its 20 percent stake in Airbus.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.


In addition to historical information, this web site includes forward-looking statements. The forward-looking statements are generally identified by the use of forward-looking words, such as “anticipate”, “expect” “estimate”, “intend”, “plan”, “predict, “project”, “will”, “believe”, “should”, “may” or other variations of such terms, or by discussion of strategy that involves risks and uncertainties. These statements relate to Airbus Group’s future prospects, developments and business strategies and are based on analyses or forecasts of future results and estimates of amounts not yet determinable. These forward-looking statements represent the view of Airbus Group only as of the dates they are made, and Airbus Group disclaims any obligation to update forward-looking statements, except as may be otherwise required by law. The forward-looking statements in this web site involve known and unknown risks, uncertainties and other factors that could cause Airbus Group's actual future results, performance and achievements to differ materially from those forecasted or suggested herein. These factors include changes in general economic and business conditions and currency exchange rates, as well as those described in the EADS Registration Document 2009 - Section: Risk Factors.