Standards and Interpretations Effective in Financial Year 2008/2009

Application of the following standards was required in financial year 2008/2009.

• Amendments to IAS 39 and IFRS 7: Reclassification of Financial Assets

Under IAS 39, in certain circumstances financial assets classified as at fair value through profit or loss may be reclassified to another category and financial assets classified as available-for-sale financial assets may be reclassified as loans and receivables. Reclassifications must be disclosed under IFRS 7 in the notes to the consolidated financial statements.

• Amendments to IAS 39 and IFRS 7: Reclassification of Financial Assets: Effective Date and Transition

These amendments provide clarification about the effective date and transitional provisions.

As there were no reclassifications in the past financial year, the amendments had no effect on the Financial Statements.

The EU additionally endorsed a number of standards and interpretations that Demag Cranes AG is not required to apply until the following financial year. Demag Cranes AG has not elected early application.

Standards and Interpretations Effective in Later Financial Years

A number of new International Financial Reporting Standards were issued during financial year 2008/2009 and endorsed by the EU. These are effective for future periods and Demag Cranes AG has not elected to adopt them early.

• Amendments to IAS 39 Eligible Hedged Items

The amendments clarify the circumstances in which a hedged risk or a portion of cash flows qualifies for hedge accounting. The amendments are effective for annual periods beginning on or after 1 July 2009. Demag Cranes AG does not expect the amendments to IAS 39 to have a material effect on the Company’s financial position, financial performance or earnings per share.

• IFRIC 15 Agreements for the Construction of Real Estate

IFRIC 15 standardises accounting practice for sales of units before construction is complete. The Interpretation is not relevant to the Demag Cranes Group and has no effect on the Financial Statements.

• Amendments to IFRS 3 and IAS 27: Business Combinations

The revised standard introduces several changes in the presentation of business combinations. The main changes relate to the identification and measurement of consideration, the measurement of non-controlling interests (formerly “minority interests”) and accounting for step acquisitions. Contingent consideration must be recognised at the acquisition date on purchase price allocation. Transaction costs directly attributable to the acquisition are not capitalised as acquisition-related costs but immediately recognised as expenses. The new standard introduces an option of recognising goodwill in connection with any non-controlling interests. Finally, for the first time, it lays down requirements on the accounting treatment of step acquisitions. The acquisition date in a step acquisition is deemed to be the date control is achieved. The changes may have an effect on the presentation of the Company’s financial position and financial performance or on earnings per share depending on the nature and scope of future transactions (from financial year 2009/2010).

• Amendments to IFRS 1 and IAS 27: Consolidated and Separate Financial Statements

The revised standard lays down different rules on accounting for transactions between the parent and non-controlling interests (minority interests). Acquisitions and disposals of interests in a subsidiary that do not result in a loss of control are accounted for within shareholders’ equity as transactions with owners. When control is lost, the subsidiary is deconsolidated and any retained interest is recognised at its fair value at the date control is lost. In departure from the previous rules, non-controlling interest are attributed their share of any losses even if this results in them having a deficit balance. The changes may have an effect on the presentation of the Company’s financial position and financial performance or on earnings per share depending on the nature and scope of future transactions (from financial year 2009/2010).

• IFRIC 16: Hedges of a Net Investment in a Foreign Operation

IFRIC 16 addresses specific issues in connection with hedges of a net investment in a foreign operation. The issues clarified include the risk to be hedged, the maximum amount to be hedged and which entity in a group can hold the hedging instrument. The Demag Cranes Group does not expect that first-time application in the next financial year will materially affect the presentation of its financial position or financial performance or its earnings per share.

• IFRIC 12: Service Concession Agreements

IFRIC 12 relates to service concessions granted to private-sector operators by government or government agencies in order to provide public services. The Interpretation addresses the accounting treatment of rights and obligations under such agreements for private sector operators. The Interpretation is not relevant to the Demag Cranes Group and has no effect on the Financial Statements.

• Annual Improvements

In May 2008, the IASB issued its first set of annual improvements to various standards with the primary aim of removing inconsistencies and clarifying wording. Transitional provisions apply for a number of the standards affected. The amendments are effective for annual periods beginning on or after 1 January 2009. Demag Cranes AG does not expect applying the amendments to have a material effect on the Company’s financial position, financial performance or earnings per share.

• Amendments to IFRS 1 and IAS 27: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate

The amendments facilitate measurement of the cost of an investment in a subsidiary, jointly controlled entity or associate in the separate financial statements of the parent by allowing first-time adopters of IFRS to use either cost under IAS 27 or the carrying amount under national GAAP. The amendments also deal with initial measurement of cost in the separate financial statements of a parent formed as a result of reorganisation. The Interpretation is not relevant to the Demag Cranes Group and has no effect on the Financial Statements.

• Amendments to IAS 32: Financial Instruments: Presentation and IAS 1 Presentation of Financial Statements

The revisions to IAS 32 and IAS 1, which apply from the coming financial year, lay down rules on the classification of certain items as equity and financial liabilities together with the corresponding disclosure requirements. Demag Cranes AG does not expect that the changes will have any effect on the presentation of its financial position or financial performance or on its earnings per share.

• Amendments to IAS 1: Presentation of Financial Statements

The main changes concern the statement of changes in equity, the presentation of comprehensive income and the titles of financial statements. The statement of changes in equity now relates solely to transactions with shareholders. All non-owner changes in equity must be presented either in a single statement of comprehensive income or in two statements comprising an income statement and a statement of comprehensive income. If retrospective changes affect the balance sheet, a restated balance sheet must additionally be presented as at the beginning of the earliest comparative period. The new titles for financial statements introduced in the revised IAS 1 are not mandatory. The changes apply from the coming financial year. Demag Cranes AG does not expect that they will have a material effect on the Financial Statements.

• IFRIC 14 IAS 19: The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

IFRIC 14 explains the circumstances in which economic benefits from a pension plan are considered to be available to the entity. The Interpretation also addresses how the measurement of defined contribution pension plan assets or liabilities is affected by a statutory or contractual minimum funding requirement. It clarifies to what extent such a requirement restricts the availability of economic benefits and whether the requirement triggers recognition of a liability. The Demag Cranes Group does not expect that first-time application in financial year 2009/2010 will affect the presentation of its financial position or financial performance or its earnings per share.

• IFRIC 13: Customer Loyalty Programmes

IFRIC 13 addresses accounting for loyalty award credits granted to customers on buying goods or services. Specifically, it stipulates how the consideration paid by customers is allocated between the goods or services and the loyalty credits and when the portion allocated to the loyalty credits is recognised as revenue. The Interpretation is not relevant to the Demag Cranes Group and has no effect on the Financial Statements.

• Amendments to IFRS 2: Share-Based Payment

The revised IFRS 2 restricts the definition of vesting conditions to include only service conditions and perfor-mance conditions. Non-vesting conditions must be taken into account when estimating the fair value of granted equity instruments. The revised standard also clarifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment. The changes apply from financial year 2009/2010. Demag Cranes AG does not currently expect that they will affect the presentation of its financial position or financial performance or its earnings per share.

• Amendments to IAS 23: Borrowing Costs

Under the revised IAS 23, the capitalisation of borrowing costs as part of the cost of a qualifying asset ceases to be optional. These borrowing costs must now be capitalised. The Demag Cranes Group does not currently expect that first-time application in the next financial year will materially affect the presentation of its financial position or financial performance or its earnings per share.

• IFRS 8: Operating Segments

IFRS 8 Operating Segments replaces IAS 14 Segment Reporting. The new standard, which applies from the coming financial year, introduces the management approach to segment reporting, thus bringing IFRS into line with US-GAAP. Demag Cranes AG does not currently expect that the changes will have any material effect on the presentation of its financial position or financial performance or on its earnings per share.