The restructuring 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.

Group member 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 costs under product warranties are recognised when products are sold. The warranty provisions include individual provisions and provisions recognised on a collective 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 member 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 2010.

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

There is no offsetting of provisions with income items.