HOCHTIEF Annual report 2008 - Management Report > Measuring return on capital: Return on net assets

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Divisions	Return	Net Assets	RONA	WACC	Value created	Value created
	2008 (EUR million)	2008 (EUR million)	2008 (in %)	2008 (in %)	2008 (EUR million)	2007 (EUR million)
HOCHTIEF Americas	90.2	474.0	19.0	14.1	23.2	27.8
HOCHTIEF Asia Pacific	435.3	1,920.7	22.7	11.6	213.2	292.1
HOCHTIEF Concessions	174.5	1,250.9	14.0	10.1	48.8	110.2
Of which HOCHTIEF AirPort*	145.2	1,024.6	14.2	10.2	41.0	100.8
Of which HOCHTIEF PPP Solutions	29.4	226.9	13.0	9.6	7.7	10.2
HOCHTIEF Europe	2.2	544.3	0.4	11.3	(59,3)	(172,5)
HOCHTIEF Real Estate	90.6	891.7	10.2	9.6	5.4	17.6
HOCHTIEF Services	28.4	177.8	16.0	9.6	11.4	9.6

Group	719.3	5,331.6	13.5	10.0	186.6	201.3

and of additional shares in Sydney Airport. The EUR 41 million value created figure underscores the stable growth trend at our airports.

HOCHTIEF PPP Solutions likewise exceeds its required minimum return with RONA of 13 percent (2007: 14.9 percent). The return was up on the prior year. A larger number of projects also meant a year-on-year boost in net assets. At around EUR 8 million, value created was slightly down from the prior-year figure, as net assets grew proportionately faster than return.

HOCHTIEF Europe achieved RONA of 0.4 percent (2007: minus 21.2 percent). Although value created is still negative, it represents a marked improvement on the prior year. The upward trend in new orders and the initiated restructuring in German building construction delivered a sharp boost to earnings. Our international activities also contributed to stronger earnings growth. We expect to have value added back in positive figures by the medium term.

HOCHTIEF Real Estate significantly improved on its prioryear earnings with strong rentals on real estate developments in progress. At 10.2 percent (2007: 12.7 percent), its return was once again above its cost of capital. The slight drop compared with the prior year reflects substantial growth in net assets. The increase in net assets is due to a higher number of project starts and the acquisition of aurelis Real Estate.

The HOCHTIEF Services division likewise delivered a further stable contribution to the Group's successful results. It again exceeded its minimum return requirement, with RONA of 16.0 percent (2007: 16.6 percent). The division achieved a 25 percent year-on-year increase in return, primarily from the expansion of its international activities and earnings contributed by its energy management business. Value created came to EUR 11.4 million, above the prior-year figure as a result of the broadened asset base. Net assets increased as the average net assets figure now includes the business acquisition in energy management in full.

Outlook

The strong business performance in 2008 underscores our strategy geared to sustained value growth. All divisions aside from HOCHTIEF Europe achieved positive figures for value created.

We currently expect to generate stable value created for our shareholders, workforce and clients in fiscal 2009. However, the forward outlook depends substantially on the general economic environment.