Although Demag Cranes AG shares also displayed a comparatively high level of volatility in the reporting period, they rose in value for the first time since financial year 2006/2007. Following the general upward trend, the share price climbed from EUR 24.50¹ on 1 October 2009 to EUR 28.14¹ on 30 September 2010, an increase of almost 15 percent overall. The Company’s market capitalisation therefore rose less sharply than the MDAX, but more sharply than the DAX. In the previous financial year, the share price had dropped by 11.8 percent.

At the beginning of the financial year on 1 October 2009, the XETRA closing price was EUR 24.50. However, over the following weeks, it dropped in parallel with the market as a whole and, on 28 October 2009, reached its low point for the year at EUR 21.33.

On 8 December 2009, Demag Cranes announced its results for financial year 2008/2009, which were impacted by the negative effects of the economic and financial crisis. Although, in what was a year of crisis, the Company managed to generate positive free cash flow and almost completely clear its net debt, the share price subsequently dropped slightly and did not make a noticeable recovery until the second quarter of financial year 2009/2010.

The Annual General Meeting in Düsseldorf on 2 March 2010 was attended by shareholders representing 45.21 percent of the voting rights. The shareholders voted by a large majority in favour of all motions put by the Boards. The proposal submitted by the Management and Supervisory Boards not to pay a dividend for financial year 2008/2009 in view of the performance of the business in that year was also accepted with only a small number of votes against. Just a little later, on 12 March 2010, the shares closed at over EUR 27 again for the first time and, on 14 April 2010, they surpassed the EUR 28 mark.

At the end of the first six months, Demag Cranes AG reported that business in all three segments had stabilised, key Group performance indicators had improved and order intake had increased. It also reaffirmed its guidance for the year as a whole. On 21 May 2010, financial investors Cevian Capital announced that, by 20 May 2010, they had acquired 10.07 percent of Demag Cranes AG shares. Cevian say they are impressed by Demag Cranes as a technology and innovation leader and firmly believe in the further success of the strong Demag and Gottwald brands.

The upper and lower limits of the upward trend that had emerged since autumn 2008 were tested on several occasions during the third and fourth quarters. After touching a low of EUR 24.49 in early July and EUR 23.72 in the second half of August, the share price was always able to make a comeback and on 21 September 2010 hit EUR 28.76, its highest point in financial year 2009/2010.

At the beginning of financial year 2010/2011, demand for Demag Cranes shares increased significantly on reports that appeared in the media speculating that Demag Cranes AG may be taken over by foreign companies. On 8 October 2010, the shares closed at EUR 37.35 and, on 15 October, they reached EUR 38.96, the highest level so far this year.

On 8 October 2010, Demag Cranes AG responded to these media reports by issuing a clear statement explaining that it had received preliminary and conditional non-binding indications of interest from foreign companies. After carefully examining these unsolicited expressions of interest, the Management Board had decided, in agreement with the Supervisory Board, that further discussions with the relevant parties were not in the interest of the Company or its stakeholders. In doing so, it once again underscored the excellent position of the Company, from which it will be able to meet the challenges of the future, and its clear standalone strategy, which is based on substantially expanding the business in emerging markets by introducing new product lines and on achieving significant growth in the highly profitable service business. Furthermore, the Demag Cranes Group has a sound capital base, enabling it to pursue attractive opportunities to participate in the process of consolidation with a view to increasing value.

Even after the latest rise in the share price, Demag Cranes shares are still attractively valued based on the standard valuation multiples of companies in its peer group.

Demag Cranes shares are traded on the Berlin/Bremen, Düsseldorf, Frankfurt, Munich and Stuttgart stock exchanges and on XETRA. With global investor appetite for equities as an asset class generally on the wane, the volume of Demag Cranes shares being traded also dropped sharply in 2009/2010. The average daily trading volume during the reporting period was around 140,000 shares (previous year: around 200,000 shares).

In the course of financial year 2009/2010, the shares failed to advance up Deutsche Börse AG’s ranking of MDAX companies by free float weighted market capitalisation, instead falling from 38th place in September 2009 to 41st place. Ranked by turnover, Demag Cranes shares were down from 33rd place in September 2009 to 36th place in September 2010. At the start of the current financial year, however, they were able to improve their position in the rankings and on 31 October 2010 reached 36th place by market capitalisation and 29th place by trading volume, or turnover.

¹ As per XETRA closing.