Foreword

The Consolidated Financial Statements of Demag Cranes AG on which this report is based were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted in the EU. Demag Cranes AG is the parent company of the Demag Cranes Group. As Group parent, it performs the usual functions of a management holding company as well as assuming responsibility for operational management. In this capacity, the Company manages and administers its Group member companies and associated companies. It also fulfils corporate strategy, investor relations, treasury, purchasing, accounting, financial controlling and corporate communication functions. The position and future development of Demag Cranes AG depend mainly on the business success of the Group. The Financial Statements of Demag Cranes AG on which this Combined Management Report is based were prepared in accordance with the provisions of the German Commercial Code (HGB) and the German Stock Corporations Act (AktG).