The Supervisory Board of Demag Cranes AG comprises 12 members. In accordance with provisions concerning German stock corporations and co-determination, six of the members are shareholders and six are employee representatives. More information on the members of the Supervisory Board can be found on the Internet at www.demagcranes-ag.de/supervisoryboard. Furthermore, the Report of the Supervisory Board of the 2009/2010 Annual Report, available on the Internet at www.demagcranes-ag.com/financialreport2009/2010, provides details on the activities of the Supervisory Board and its committees in the reporting period.

The Supervisory Board has specified concrete objectives regarding its composition which, while allowing for the Company’s business situation, aim to take into account the international scope of the Company, potential conflicts of interest, an age limit for Supervisory Board members and diversity. In addition to the Rules of Procedure for the Supervisory Board, the Supervisory Board set down the following specific objectives for its future composition:

• Internationality
  As a global supplier, Demag Cranes manufactures in 16 countries on five continents and operates a worldwide sales and service network that is present in over 60 countries through its subsidiaries, representative offices and a joint venture. The Supervisory Board reflects this internationality in its composition.
  
  The Supervisory Board should therefore continue to include at least two members with several years’ international expertise.
• Potential Conflicts of Interest
  The Supervisory Board also takes into account potential conflicts of interest in its composition. Each member of the Supervisory Board therefore undertakes to follow the recommendations and comments of the German Corporate Governance Code with regard to conflicts of interest for as long as they sit on the Board. Furthermore, each member of the Supervisory Board shall declare to the Chairman of the Supervisory Board prior to issue of the annual Compliance Statement that no conflicts of interest involving himself/herself have arisen in the past year.
• Stipulated Age Limit
  The composition of the Supervisory Board reflects the stipulated age limit. Under this rule, members of the Supervisory Board should not generally serve on the Supervisory Board after the close of the Annual General Meeting following their 70th birthday. Proposals for election by the Supervisory Board that deviate from the stipulated age limit must be well-founded.
• Diversity
  The composition of the Supervisory Board takes account first and foremost of appropriate qualifications and diversity and aims to include appropriate representation of women. The Supervisory Board should therefore include women as soon as suitable candidates can be found. The Supervisory Board will take this into account in its proposals for the election of shareholder representatives on the Supervisory Board. The same applies in the case of judicial appointment.

The Supervisory Board currently includes a number of members whose careers have given them several years’ international expertise. Conflicts of interest involving members of the Supervisory Board must be disclosed to the Chairman of the Supervisory Board. No conflicts of interest arose in the reporting period. Each member of the Supervisory Board declared for the purpose of this year’s Compliance Statement that no conflicts of interest involving himself/herself arose in the past year. The Supervisory Board currently includes one member who is older than 70. At the time of his appointment to the Supervisory Board, the member had not yet turned 70. There are no women on the Supervisory Board at the present time.

The Supervisory Board regularly discusses business performance and plans, as well as the strategy and its implementation with the Management Board. The two boards also discuss the interim financial reports prior to their publication. The Supervisory Board must be involved in decisions of fundamental importance to the Company. The Supervisory Board has issued itself Rules of Procedure to govern its work.

No former members of the Management Board are members of the Supervisory Board of Demag Cranes AG. No advisory or other service agreements or contracts for work between members of the Supervisory Board and the Company existed in the reporting period. Members of the Supervisory Board take care that they have sufficient time to perform their mandate. No member of the Supervisory Board exercises a directorship or similar position or advisory tasks for major competitors of the Company.

Members of the Supervisory Board receive appropriate support from Demag Cranes AG in undertaking the training and development activities required to perform their duties.