The increase in restructuring provision relates to the restructuring programme approved by the Supervisory Board of Demag Cranes AG in May 2009. A restructuring provision was recognised on announcement of the restructuring plan to the parties affected. The amount of the provision is based on management’s best estimate of the present value of expenditure directly associated with the restructuring and not attributable to operating activities. A breakdown of the restructuring provision by segment and explanatory information on the restructuring expenses are provided in Note 32, Segment Reporting.

Group companies give various product warranties under which they provide a warranty with a specific warranty period for supplied products and rendered services. Provisions for expected future costs under product warranties are recognised when products are sold. The warranty provisions include individual provisions and provisions recognised on a class basis. The material warranty claims will be settled in the next two years. As the time value of money is not material in this connection, Demag Cranes AG does not discount the provisions to present value.

Provisions for risks of threatened and pending litigation against Demag Cranes Group companies are recognised if it is more likely than not that a liability will result. Estimates of the probability of the provisions being used incorporate judgements of lawyers and appraisers representing the Company. The amount recognised as a liability is the probable amount of any compensation claims and the probable cost of any sanctions. Demag Cranes AG estimates that the litigation to which the provisions relate will not result in costs significantly in excess of the provisions recognised as at 30 September 2009.

The provisions for customer complaints relate to known individual risks in connection with notified defects and reductions in invoice amounts.