| (EUR million) | 2008 | 2007 |
|---|---|---|
| Operating earnings (EBITA)* | 676.1 | 539.5 |
| + Interest income** | 43.2 | 72.2 |
| Return | 719.3 | 611.7 |
| Shareholders' equity (including minority interests) | 2,861.4 | 3,000.8 |
| + Pension provisions | 76.7 | 29.0 |
| + Financial liabilities | 2,926.8 | 1,966.8 |
| - Deferred tax assets | 204.7 | 169.4 |
| + Deferred tax liabilities | 93.8 | 82.1 |
| Net assets at December 31 | 5,754.0 | 4,909.3 |
| Average net assets | 5,331.6 | 4,107.2 |
| Return on net assets (RONA) | 13.5 | 14.9 |
| Value created (absolute) | 186.6 | 201.3 |
The Group generated a return of EUR 719.3 million, nearly an 18 percent improvement on the prior year. Average net assets rose year on year from EUR 4.1 billion to EUR 5.3 billion. This represents growth of some 29 percent. The increase in net assets is due to the Group's strong capital expenditure in the last two years.
Value created by the HOCHTIEF Group was on a par with the solid level achieved in the prior year, at EUR 186.6 million. All divisions, with the exception of HOCHTIEF Europe, reported a positive figure for value created despite the difficult economic situation. This is a result of our sustained strategy geared to value growth.
The HOCHTIEF Americas division once again comfortably exceeded its cost of capital with RONA of 19 percent (2007: 21.8 percent). As a result of very healthy growth at our US subsidiaries Turner and Flatiron, the division generated a return of EUR 90.2 million, up some 15 percent on the prior year. The impact of adverse exchange rate effects on this figure was more than offset by higher operating earnings. The latter rise is not fully reflected in RONA because of a substantial year-on-year increase to net assets. This was due to Flatiron being included in full in average net assets for the first time.
HOCHTIEF Asia Pacific again kept well ahead of its cost of capital, generating RONA of 22.7 percent (2007: 32.2 percent). Operating earnings, at EUR 435.3 million, almost regained their high prior-year level. Most of the increase in net assets is accounted for by acquisitions of business interests for Al Habtoor, Devine Limited and MacMahon, the full amount of these acquisitions being included in net assets for the first time. At EUR 213 million, value created is down on the prior year due to the reduced return combined with the increase in net assets.
The HOCHTIEF Concessions division achieved RONA of 14 percent (2007: 20.7 percent), above its cost of capital.
Our airport holdings performed well above expectations in the year, producing a return of EUR 145.2 million. When looking at the comparative prior-year figures, it should be borne in mind that the EUR 186.9 million earnings record in 2007 included extraordinary income due to a German corporate tax reform, a special dividend from Sydney Airport and success fees for Budapest Airport. As a result of its strong earnings, HOCHTIEF Airport once again significantly exceeded its cost of capital with RONA of 14.2 percent (2007: 22.1 percent). Net assets grew mostly as a result of the purchase of the stake in Budapest Airport