The consolidated balance sheet of the Demag Cranes Group developed as follows in the period under review:

Net working capital – inventories, advance payments made and trade receivables less trade payables and advance payments received – decreased from EUR 254.0 million at 30 September 2008 to EUR 210.5 million at 30 September 2009. The decrease is the outcome of active management of net working capital. A key challenge in strategic purchasing during the past financial year therefore consisted of trimming working capital – primarily supplies and inventories – to match reduced order intake.

The Demag Cranes Group’s total assets came to EUR 818.8 million at 30 September 2009, down EUR 106.7 million down compared with 30 September 2008. The main assets-side factor in this change consisted of a EUR 49.2 million reduction in trade receivables and a EUR 54.4 million decrease in inventories. Cash and cash equivalents also rose by EUR 13.7 million. On the shareholders’ equity and liabilities side, shareholders’ equity was reduced by EUR 43.5 million to EUR 227.7 million. Most of the change in shareholders’ equity is accounted for by the EUR 29.6 million dividend distribution and a charge of EUR 19.7 million recognised directly in equity for actuarial gains and losses on pensions. There was also a EUR 34.1 million decrease in trade payables. Advance payments received were down by EUR 27.0 million. In the opposite direction, pension obligations increased by EUR 19.9 million, from EUR 112.7 million in the previous year to EUR 132.5 million at the end of the period under review. The increase mostly related to German pension plans.

It resulted from a decrease in the annual discount factor from 6.50 percent to 5.35 percent and is recognised directly in equity without affecting profit or loss. The Demag Cranes Group sets the discount rate with reference to the interest rate yield curve computed by Watson Wyatt Heissmann and the Iboxx € Indices for corporate bonds with an AA rating and a ten-year or longer (10+) time to maturity. Other current provisions additionally increased by EUR 32.8 million, from EUR 18.5 million to EUR 51.4 million. The additional amount consists primarily of restructuring provisions in connection with 750 layoffs across the Group.

In addition to the liabilities shown on the balance sheet, there are significant guarantees for third-party liabilities in the form of contingent liabilities relating to buy-back arrangements entered into in the Port Technology segment in connection with sales of certain Company plant and machinery products (see the Notes to the Financial Statements under Note 36, Contingencies and Other Obligations). The maximum potential obligation amounted to EUR 48.5 million at 30 September 2009, compared with EUR 60.4 million at 30 September 2008.

Gearing – the ratio of net debt to shareholders’ equity – improved in the period under review due to the reduction in net debt, from 6.8 percent to 2.7 percent at 30 September 2009.