We Can Handle It.__ One of the world’s leading manufacturers of crane and port technology with its “Demag” and “Gottwald” brands __ Established in more than 60 countries__ World’s largest installed base: more than 650,000 cranes and electric hoists__ More than 850 Mobile Harbour Cranes in operation __ Comprehensive service and refurbishment programme __ Unrivalled technological leader with more than 1,000 registered patents__ Closely-knit global service and sales network__ Capital market orientated: listed on the stock exchange since 2006 and quoted on the MDAX ® share index of Deutsche BörseThe Demag Cranes Group at a GlanceWe Can Handle It.Table of Contents02 Products at a Glance08 Globalisation Winner10 Our Commitment to Technological Leadership12 Ground-Breaking Products and Servicesto Meet Tomorrow‘s Needs18 Trendsetters in Research and Development20 Attractive Employer25 Facts & Figures / Contact2Products At a Glance 1 _G lobal market leader in action: Mobile Harbour Cranes handlingcontainers and cargo in Porto Di Carrara, Italy.2 _O pening up new fields of application: Floating Craneshandling bulk cargo on the Mississippi, USA.3 3 _G round-breaking technology: fleet of ecologically compatibleAutomated Guided Vehicles in the Port of Hamburg, Germany.System solution plus software.4 _I nnovations for more efficiency:A utomated Stacking Cranes in the Port of Antwerp, Belgium.Here also: A system solution with software.45 _S peed and reliability in the mechanical engineering sector:Standard Cranes in the production of machine toolsat Deckel-Maho in Seebach, Germany.6 _P recision operations for high-tech products:Process Cranes are used for precisely positioningwing sections at Airbus in Broughton, United Kingdom.5 7 _F lexibility for production processes: Engines are assembled usingt he KBK crane construction kit at DEUTZ in Cologne, Germany.8 _D rive solutions tailored to meet individual requirements:Travel units are used to transport aluminium bars at Amag in Randshofen, Austria.VisionWe want to be the first choicein our markets. 6789Globalisation WinnerSpeaking of “global” trade: For many years now, global container handling has been growing by about nine percent a year. And economic forecasts do not see any slowdown in the medium term. Growing volume is presenting challenges to terminal operators as an increasing number of con- tainers need to be loaded and unloaded from ships and transported throughout the terminals. Demag Cranes offers worldwide-leading and innovative solutions.The role of our Services segment is growing in our business. More and more, our customers areoutsourcing maintenance and refurbishments services and spare parts management to us, the manu-facturer. Over 650,000 cranes and electric hoists bear the Demag logo worldwide, the result of our many years of serving the market. Currently, we provide services for about half of our installed base. There is still much to do.Currently, we earn more than 80 percent of our revenue through business abroad. Emerging markets in particular, in the BRIC countries (Brazil, Russia, India and China) will continue to play a major role for our growth in future. These emerging countries have been investing more than elsewhere in the development of their infrastructure. New industries are being established; roads, airports and terminals are being built.A huge volume of material needs to be moved, lifted and conveyed. We profit from this movement with our highly valued products around the globe.For us, good servICe starts WItH projeCt plannIng.We analyse the project goals together with our customers, produce aproposal for its solution and undertake its implementation. We alsomake sure that it operates smoothly. Our service employees are therefor our customers 24 hours a day, seven days a week.10Being a trendsetter for research and development, however, does not mean going solo on techno-logical crusades without tangible benefits for the users. Our customers remain the focus of our activities, so we can determine their current and future needs. Our standardised and individual solutions enable us to achieve measurable added-value. That is why our products and services are distinguishable from those of our competitors, in particular thanks to low operating costs, environmental compatibility and safety. These distinctive features enable us to develop the necessary trust and establish long-term customer relationships from which all sides can benefit.No wonder Demag Cranes’ commitment is: “We Can Handle It.” On one hand, our commitment applies to maintaining and improving our capability of transporting loads reliably and safely from one place to another. On the other hand, refers, to Demag Cranes’ commitment to tackle new challenges and develop and implement efficient solutions.We are not just aiming to be the first choice among national and international customers.Demag Cranes is also pursuing this ambitious goal on the capital market. Our clear strategic aim of achieving sustained, profitable growth as well as our pursuit of realistic goals and a transparent infor-mation policy are crucial instruments for underlining the attractiveness of the Demag Cranes share as a long-term investment and for meeting the returns expectations of our shareholders.There are numerous reasons for our strong market position and worldwide repu-tation as a premium supplier. For example, with “Demag” and “Gottwald”, the Group has two brands with a long tradition that are among the most successful in their sectors. In addition we also have a clear vision: “We want to be the first choice in our markets.” This vision spurs us on to new and outstanding achievements time and again. The Demag Cranes Group has been the leader in its market sectors with regard to innovation and technology for some time now.Our Commitment to Technological LeadershipFuture trend For port automatIon – We supplysystem solutions from a single source. Automated Guided Vehiclesand related software increase the efficiency of logistics in theterminal for our customer CTA.111213Ground-Breaking Products and Services with a Future Industrial Cranes from demag CranesOur Standard Cranes and hoists can be used in large industrial companies and also in smaller busi-nesses. Our individually developed Process Cranes, which are integrated into complex production processes, fulfil our customers’ specific technical requirements. These cranes can lift and move loads of up to 540 tonnes. Thanks to the capability and the associated efficiency of our cranes, customers are most satisfied. The “Demag” brand has enjoyed international recognition for decades. With our highly flexible KBK crane construction kits, we have been world market leaders since the product was launched in 1963. The KBK crane construction kit has established itself in particular in industries with frequently changing demands on the production process, such as in the automotive industry, as an attractive alternative to traditional, more time-consuming solutions. In addition to cranes and crane construction kits, the product range of the Demag Cranes Industrial Cranes segment includes high-quality components such as rope and chain hoists as well as travel units and motors. Proximity to the customer is a major factor of our success. For this reason, we have a closely-knit global production network in this segment. Three central production plants in Wetter an der Ruhr (Germany), Sao Paulo (Brazil) and Shanghai (China) manufacture the necessary components. In addition, we have 22 crane assembly facilities in industrialised countries. In the other regions, we cooperate with experienced and reliable partners. These alliances enable us to be established around the globe with our high-quality products and to profit from emerging markets at a very early stage. With the traditional brands “Demag” and “Gottwald”, the name Demag Cranes has been synonymous with industrial cranes and port technology, meeting the highest standards of quality and safety for decades. Thanks to our broad range of products and services, we develop and implement innovative field-tested solutions for material flow, logistics and drive applications.“one man per engIne” is an underlying principle of the production concept at the diesel engine assembly facility operated by our customer DEUTZ. As a global leader, our KBK crane construction kit has provided the flexibility required at workplaces all over the world for more than 40 years.14port technology from demag CranesAt present, about half of the Mobile Harbour Cranes sold annually are built by Demag Cranes.In this product sector, we are the undisputed world market leader. Of these Mobile Harbour Cranes,850 currently operate in some 300 national and international ports. No other manufacturer can boastsuch a broad base.This outstanding success is due, in no small part, to high customer satisfaction with our productportfolio. Our product portfolio ranges from Mobile Harbour Crane models for average-rate cargohandling to heavy-duty cranes for high-performance and continuous-duty container and bulkhandling. Particularly our new Generation 5 cranes with their higher lifting capacities, greaterhandling performance and shorter delivery lead-times are shaping the market for Mobile HarbourCranes. We have therefore set standards in a competitive environment.In the field of port automation, too, the Port Technology segment of Demag Cranes leads the waywith innovative and outstanding technological achievements. Currently, we are the world’s solesupplier of integrated systems that develops and produces Automated Stacking Cranes andAutomated Guided Vehicles and their related software. We can provide these components as asingle integrated system. We support these particularly complex and cost-intensive projects not onlyas planners and consultants. Demag Cranes also offers specialist software to provide realisticsimulation of the designated material flow in terminals.services from demag CranesToday, we have one of the largest networks for the maintenance and refurbishment of IndustrialCranes and hoists with more than 220 service centres and approximately 1,650 service employeesworldwide. In addition, we supply spare parts and provide full-service contracts. We welcome thenew trend of our customers who prefer to outsource maintenance and refurbishment services andspare parts management to us, the manufacturer.The high level of service competence we provide is also much appreciated by users of third-partyproducts. We are looking at further growth potential in the Services segment to supplement theDemag Cranes product portfolio. Currently, Demag Cranes services about 44 percent of its owninstalled base and the potential for growth remains high.doWntIme Costs money. According to their specific field ofapplication, our Mobile Harbour Cranes are in continuous operation.Excellent and fast service is essential. This is our main focus.We are also located close to our customers.1516Mission StatementWe ease the workload of our customers.We shape markets.We raise values.171819Demag Cranes works constantly to optimise the quality, reliability and performance of the existing product range. However, these developments are also aimed at reducing the complexity and thus the engineering-related production and process costs, thus providing benefits to our customers and our company equally.The resolve to be and remain an innovator is also reflected in the level of Demag Cranes’ investments in research and development. Compared to its international competitors, Demag Cranes invests twice as much, in relative terms, to further increase its lead in innovation. With resounding success: Demag Cranes is the undisputed technological leader for industrial cranes and port technology. Our company is the market leader in many significant key markets. More than 1,000 registered patents are further evidence of the exceptional innovative strength of Demag Cranes.Research and development is conducted exclusively in Germany. This is where the majority of our technologically-advanced components is manufactured despite the fact that wage costs at our headquarters are no longer competitive in global terms. The success of our commitment to Germany as a competitive location is self-evident. The productivity of workers in Germany is ranked higher than low-cost countries and most industrialised nations. Achieving quality and providing quality assurance continue to be the focus of our activities. We aim to continue to benefit these advantages and, at the same time, to contribute to securing jobs in Germany.Trendsetters in Research and DevelopmentAs a premium supplier aiming to further extend its market and technological leader-ship, we constantly set new standards through product innovations. Some of our recent innovations include, for example, the Generation 5 Mobile Harbour Cranes, the development of the first fully automated stacking crane as well as a new generation of rope and chain hoists.HIgH-teCH For HIgH-teCH – Precision and safety play a particu-larly important role in the aviation sector. This already begins at theproduction stage. Our Process Cranes are used to position sensitiveparts down to the millimetre, such as vertical tail planes here at Airbus.20We are well aware that we must foster and encourage our team time and again to maintain the high level of commitment and innovative strength. We give everyone responsibility and enable every individual to contribute to the success of Demag Cranes.A continuous training programme, designed to meet the special needs of our employees, guarantees above-average professional competence and helps our employees to develop. This applies both to senior management and to all other the members of our team.Demag Cranes seeks out qualified talent with potential at schools, colleges and universities. We wish to have the best graduates committed to our company as early as possible. Students are given the opportunity, for example, to do practical training or their thesis or dissertation on aspects of our company. As a manufacturing company, we rely on highly qualified specialists, as one would expect. This is why we invest significantly in our own training programmes. And with success: our apprentices are regularly recognised as some of the best in all of Germany. This is why Demag Cranes offers employment opportunities to our apprentices and trainees on completion of their programme.Attractive EmployerIt is ultimately our employees that contribute to the success of Demag Cranes. This is why we do our utmost to offer an attractive working environment. We provide the freedom and the opportunities for individual development. Committed recruits from school, college and university can profit from the multitude of challenging opportun-ities for an excellent start to their professional career within the Demag Cranes Group.CosmopolItan. We believe a highly skilled and global-thinkingteam essential for an internationally successful business. We promotecooperation between different cultures and beliefs and invest in thevocational and personal development of our employees. Potential forthe future.21Mission Statement We focus on sustained andprofitable growth.We are committed totechnological leadership.Harald j. joosCEO“As long as there is gravity,we’re in business.”25Britta HeynManager Corporate CommunicationsPhone: +49 (0) 211 7102-1020Fax: +49 (0) 211 7102-51020E-mail: britta.heyn@editor-in-chief: Nikolai Juchem, Head of Corporate Communications and Marketing Layout: IR-One AG & Co. KG, Hamburg, GermanyPhotography: Michael Dannenmann, Christoph Bünten, Düsseldorf, Germany ContactFacts & Figures 1 F inancial year 2007/2008 (ended as at 30 September 2008)2 E mployees as at the end of the financial year on 30 September 2008 excluding temporary employees, apprentices and trainees/including Holding__ revenue 1: EUR 1,225.8 million of which inside Germany: 20.7%of which outside Germany: 79.3%__ no. of employees 2: 6,093of which inside Germany: 3,008of which outside Germany: 3,085__ Headquarters: Düsseldorf, Germany __ Management Board: Harald J. Joos, Chairman Rainer Beaujean, Thomas H. HagenDemag Cranes AG Forststrasse 1640597 DüsseldorfGermanyPhone: +49 (0) 211 7102-1009 Fax: +49 (0) 211 7102-51009 。