The Financial Statements of Demag Cranes AG for the financial year 1 October 2008 to 30 September 2009 are prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the Interpretations of the International Financial Reporting Interpretations Committee (IFRIC) applicable at the balance sheet date and as adopted by the European Union (EU). The supplementary requirements in Section 315a (1) of the German Commercial Code are also met.

Certain items in the Income Statement and the Balance Sheet are combined for the sake of clarity. These items are explained in the Notes. The Income Statement is prepared using the cost of sales method. Assets and liabilities are presented in the Balance Sheet using a current/non-current classification.

The Financial Statements are prepared on a historical cost basis with the exception that derivative financial instruments and available-for-sale financial assets are measured at fair value where this can be reliably determined.

Preparation of the Financial Statements has required the use of estimates and assumptions that affect the recognition and measurement of assets and liabilities, the amounts of expense and income items, and disclosures relating to contingent assets and contingent liabilities. Judgements that the Management Board has made in applying IFRS and that have a significant effect on the Financial Statements are described along with the main estimates whose review may result in material changes in the next year in Note 6, Estimates and Judgements.

The Financial Statements are prepared in euros, the functional currency of Demag Cranes AG. All figures are rounded to the nearest thousand euros unless otherwise stated. All percentages relate to figures stated to the nearest euro. The amount shown for each individual item and total is the figure with the smallest rounding difference. Reported totals may therefore differ slightly from the sum of the individual reported amounts.