aero-notes N°34, November 2012

Dear Shareholder,

As the year draws to a close we can already see that our targets in terms of growth and underlying profitability are well within reach. Year on year, our nine months revenues are up 14 percent and our EBIT before one-off is up 82 percent. But we can see too a need to remain fully focused on challenges at hand.

Our management is devoting the utmost attention to programme management and execution. We are making good progress in many of our most complex programmes. The A400M flight testing programme continues with a first delivery to France targeted for Q2 2013. Certification of retrofit and forward fit A380 wing rib solutions is expected around the end of 2012. On the A350, with two aircraft now in final assembly, the static test aircraft and first flying aircraft, Airbus continues to target entry into service for H2 2014. Securing an efficient series production in the years ahead remains a key focus of this challenging programme.

Meanwhile at Eurocopter, talks are continuing with a number of NH90 and Tiger customers who are seeking to reduce deliveries. The outcome of these important discussions is still open.

Ongoing ramp-up efforts at Airbus and Eurocopter, in particular, as well as our back-loaded A380 delivery pattern this year, have led to a significant temporary increase of inventory this quarter. In the weeks and months ahead, aircraft deliveries will therefore be a high priority, both to reach our break-even cash-flow target for the year and to drive the profitability improvement beyond.

Following the recent effort to accelerate the company’s strategic development, our top management team is now reassessing the options for our portfolio of businesses, especially with regards to our defence activity and the industrial footprint outside Europe.

Our company is fortunate in being in a position to examine its strategic possibilities in an orderly manner. Our underlying performance is improving and our growth perspectives are good. Our net cash gives us flexibility while our hedge book provides stability in a volatile macro environment. Our order book at €548 billion is a platform for several years of business. Even Cassidian, the EADS Division most heavily exposed to government budget constraints, continues to show a respectable order backlog of €16 billion.

I believe that with its sound business fundamentals and its ongoing growth perspectives EADS will remain a pace-setter in the aerospace sector for many years to come. I am also fully convinced that through its firm focus on delivery and performance, our Company is doing all it can to justify the commitment shown by you, our loyal shareholders.

PHILIPPE BALDUCCHI - EADS Head of Investor Relations and Financial Communication

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