Ellaktor S.A. (ELLAKTOR) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by. I'm Constantinos, your Chorus Call operator. Welcome, and thank you for joining the ELLAKTOR Group conference call to present and discuss the bondholders' briefing on the first quarter 2020 ELLAKTOR's restricted group results. [Operator Instructions] The conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Anastasios Kallitsantsis, CEO of ELLAKTOR Group; Mr. George Poulopoulos, group CFO of ELLAKTOR; and some representatives of the IR team. Mr. Kallitsantsis, you may now proceed.

Good evening, ladies and gentlemen. Thank you for your participation in today's conference call on the Q1 2020 ELLAKTOR Group financial results. I'm Anastasios Kallitsantsis. I'm the group CEO, and I'm joined today by ELLAKTOR's newly appointed group CFO, Mr. George Poulopoulos, whom I am very pleased to introduce to you today. As the transformation of ELLAKTOR Group is progressing, George brings significant expertise, which is required to see these large-scale projects through. George brings 25 years of experience from the banking sector, serving as -- in senior position with Piraeus Bank, 1 of the 4 [ Greece's significant ] banks. During his long career with Piraeus Bank, George served as group CFO, acting CEO as well as Vice Chairman of Executive Committee and COO. So I would like to formally welcome George to ELLAKTOR. Moving on, a few words about the current macro environment. The trajectory of the COVID-19 epidemic in Greece continues to be smooth with a downward tendency. From an epidemiological and healthcare standpoint, Greece has performed very well compared to other countries. The next challenge that the country, the Greek government, but Europe more broadly, are facing is how to respond to the onset of this global economic crisis. The announcement made by European Commission regarding the EUR 750 billion recovery plan is a very ambitious program, and though the details still need to be outlined, it is a program that Europe needs. In this context, Greece will be allocated EUR 22.5 billion in the form of grants and EUR 9.5 billion in the form of loans from the European Commission, which in total accounts for around 18% of the country's debt if approved. This improves the medium-term prospects of the economy. And according to the Greek government, infrastructure spending will be a priority going forward. Before I hand over to George to run you through the financials of our group in detail, I would like to make some remarks regarding key metrics and our outlook. The performance of Q1 2020 with EBITDA at EUR 50 million shows the resilience of the group as all segments of EBITDA improved versus the previous quarter of Q4 '19. This despite the impact from COVID-19, which affected the group and our Concession segment in particular. Cash and liquid assets at the end of March 2020 increased to EUR 372 million versus EUR 342 million at the end of 2019. Net debt at the end of Q1 2020 stood at EUR 663 million, with net debt-to-EBITDA ratio of 3.3 on the basis of an annualized Q1 2020 EBITDA. Looking at the group's business segments. In Concessions, traffic growth in all of our motorways were strong in January and February, with Attiki Odos traffic growing by more than 4% and our other motorways between 7% and 20%. March performance was impacted by the COVID-19 pandemic as the Greek government implemented increasingly severe restriction in movement, leading to a full lockdown on March 23. The lockdown is being lifted, starting on May 4. We are seeing clear sense of gradual improvement in traffic with Attiki Odos averaging 196,000 vehicles per day between May 18 and May 28, which means 10 days compared to an average of 61,000 in April. In addition to our motorway concession assets, ELLAKTOR Concession signed the Alimos Marina concession agreement on May 13. In the Renewables, we are continuing our ambitious growth program. And in Q1 2020, a further 90 megawatts were connected to the grid. This brings our total installed capacity to 491 megawatts as at the end of March of 2020. It is important to note that electricity production and sales from existing -- this portfolio of 491 megawatts is currently unaffected by the COVID-19 pandemic. In Environment, prospects appear strong. As Greece needs to urgently proceed with new infrastructure projects in order to comply with national and the European wealth management legislation. We remain in prime position to capitalize on this favorable macro dynamic. I will now pass the floor to George to run you through our restricted group financials in detail. George, please, the floor is yours.

Thank you, Sakis. I'm very pleased to have joined ELLAKTOR, and I'm committed to help on delivering the goals of this management team and Board of Directors. I remind you that the restricted group financial information has been prepared in accordance with IFRS, except for the accounting treatment used for the unrestricted group. In specific, investment in unrestricted group represents the net equity of the subsidiaries included in unrestricted group and more specifically subsidiaries under the Construction segment, Real Estate segment and Moreas SA. During the periods presented, the restricted group functioned as part of the larger group of companies controlled by ELLAKTOR. Also, the financial information of the restricted group is presented prior to elimination and risk related to investment in subsidiaries and intercompany loans, liabilities to and receivables from companies forming the unrestricted group. Last, the accounting policy used in preparing these financial information are in accordance with those used in the preparation of the annual financial statements for the year ended 31st December 2019. Now I would like to present the Q1 restricted group results by following some slides from Q1 2020 restricted group results presentation. If you go on Page 4 of our presentation, restricted group revenues stood at EUR 91 million in Q1 '20 compared to EUR 90 million in Q1 '19, an increase of EUR 1 million. The increase of revenues is related to RES and Environment segments that absorbed the decrease of revenues in Concessions as a result of the decreased traffic due to lockdown measures. Restricted group EBITDA stood at EUR 50 million in Q1 '20 compared to EUR 56 million in Q1 '19 posting a reduction of 12%. The [ decreased ] EBITDA year-on-year is mainly related to lower EBITDA from the Concessions, reduced by EUR 6 million year-on-year due to the COVID-19 impact. Restricted group profit before tax was at EUR 9.7 million in Q1 '20 compared to minus EUR 9.3 million in Q1 '19. Restricted group net income, excluding the share of loss from the unrestricted group, stood at EUR 9.8 million in Q1 '20 versus EUR 19.3 million in Q1 '19, mainly as a result of decreased profitability in Concessions due to COVID-19 impact also. On Page 5, you see the contribution of each segment from restricted group EBITDA in Q1 '20 and in Q1 '19. Moving on Page 6. Total restricted group total assets were at EUR 1.889 billion at the end of March 2020 versus EUR 1.838 billion at the end of 2019, recording an increase of 2.7%. Total restricted group shareholders' equity stood at EUR 523 million at the end of March 2020 compared to EUR 533 million at the end of 2019. On Page 7, we present the cash evolution. At the 1st of January 2020, cash was at EUR 220 million, while at the end of March '20 was at EUR 244 million and increased by EUR 24 million. Please note that beyond the cash position, as illustrated by the cash flow statement, the restricted group also has EUR 39 million in restricted cash mainly from debt service obligations and debt service reserve account, time deposits over 3 months disclosed under receivables of EUR 44 million and investment-grade bonds of EUR 44 million also disclosed as other financial assets at amortized cost. Operating cash inflows was EUR 20 million in Q1 '20 versus inflows of EUR 29 million in Q1 '19, mainly due to increased accounts receivables and decreased liabilities. Investment cash outflows amounted to EUR 38 million in Q1 '20 versus inflows of EUR 18 million in Q1 '19, mainly related to RES CapEx. Cash flow for financial activities were an inflow of EUR 42 million in Q1 '20 versus outflows of EUR 3 million in Q1 '19, mainly from the proceeds of the high-yield bonds that concluded in January '20 while the main outflow was related to the Attiki Ados dividend distribution by EUR 14 million. On Page 8, we present the net debt of the group with a split in restricted and unrestricted group. Total restricted group debt at the end of March '20 was at EUR 1.035 billion versus EUR 967 million at the end of December 2019. Cash and liquid assets for restricted group stood at EUR 372 million in Q1 '20 versus EUR 342 million in Q1 '19, an increase of EUR 30 million. Net debt of the restricted group amounted to EUR 663 million in Q1 '20 versus EUR 625 million in Q1 '19, with net debt-to-EBITDA ratio standing at 3.1x. It has to be mentioned that the debt incurred to fund growth at the Renewables level will not fully contribute in Q1 '20 EBITDA, but will generate run rate EBITDA going forward. If we consider the additional EBITDA contribution by the funding in newly built RES portfolio, the net debt-to-EBITDA ratio will be lower. In Q1 '20, the restricted group has contributed through loan facilities an amount of EUR 27 million to unrestricted group by using the buildup basket by EUR 9.3 million and the general permitted investment basket by EUR 17.7 million, in line with the framework provided in the notes. No further use of the basket has been made from the beginning of Q2 '20 till today. Now let me go through the segmental analysis in Q1 '20. On Page 10, we have the Concessions highlights. Concessions revenues of the restricted group stood at EUR 45 million in Q1 '20 versus EUR 51 million in Q1 '19, a decrease by 13%. The decrease of revenues in Q1 '20 is due to the decreased traffic in Attiki Odos by 11% as a result of restrictions in movement and eventual full lockdown by the state in response to the COVID-19 epidemic. As you see on the bottom left diagram, there are clear signs of gradual improvements in Attiki Odos traffic since early May '20. Traffic volume in Q1 '20 also dropped in Attiki Odos by 10% and in Gefyra by 11%. On Page 11, we present the RES highlights. Revenues stood at EUR 23.9 million in Q1 '20 versus EUR 20.4 million in Q1 '19 or up by 17% due to the increased installed capacity. As of 31st of March '20, the installed capacity were at 491 megawatts, of which 196 megawatts in trial operation. An additional 88 megawatts is under construction. EBITDA stood at EUR 19.8 million in Q1 '20 versus EUR 16.3 million in Q1 '19 or up by 22%. Last, on Page 12, we have the Environment segment highlights. Revenue stood at EUR 22.4 million in Q1 '20 compared to EUR 18.4 million in Q1 '19 or plus 22% due to the increased completion rate of construction projects. EBITDA stood at EUR 4 million in Q1 '20 versus EUR 4.4 million in Q1 '19 or minus 8% due to the decreased profitability of the Environment construction projects and increased overheads from full consolidation of ASA Recycle. And this is the end of my presentation. Thank you.

Well, thank you, George. We could proceed with the Q&A.

[Operator Instructions] The first question is from the line of [indiscernible] with Meriton Asset Management.

My first question is regarding the payments to the unrestricted part of the group. I think you mentioned it before, but it wasn't very clear from the line. Can you just remind us how much you transferred to the unrestricted part of the group in Q1 and if there had been any further transfers since then?

As I mentioned, in Q1, restricted group has contributed through loan facilities an amount of EUR 27 million to unrestricted group by using the buildup basket by EUR 9.3 million for general permit investments and EUR 17.7 million of permitted investment basket. No further use of the basket has been made from the beginning of Q2 till today.

Understood. And do you have any plans for further transfers?

For further?

Transfers to the unrestricted group for the rest of the year?

This is something that we are working with the restructuring of the Construction, and this is we're assessing, always subject to what is permitted under the laws. But as I mentioned before, we haven't moved any money from Q2 till today. But we are assessing the situation, and we will decide accordingly to the notes permitted.

Okay. And just from the point of view of the Construction growth because I realize it's not a part of the restricted group, but still it is having an effect on the market perception. Can you just comment quickly on the construction side? I think there was still a negative EBITDA, but it seems to have been a bit better? Can you just comment on the state of the construction, particularly some of these loss-making projects in Australia?

Yes. On the construction, the EBITDA for the first quarter were a marginal loss of EUR 1 million, that was the results of Q1 in EBITDA. The revenues has dropped compared to the previous quarter and the previous quarter of the last year. And we are under this restructuring plan that I mentioned before, in which we envisage to reduce further the cost base of the company. We have introduced a new procurement office group -- office, which -- with a task to review all procurements in order to reduce eventually cost of sales. To dispose assets already -- let's say, Construction segment has disposed during Q2 some assets like Hellas Gold, which helps the cash flow of the company. And we are looking also some other possibilities to restructure further, which it is underway, and we're expecting to complete this restructuring plan in the next 2 months. So we are going to present it to the investment community in August with H1 results. Regarding Australia. On Australia, the project has been almost completed. Out of the 6 projects, 3 have been already completed as far as I'm aware. And 2 are on the trial operations, and the last 1 is very close to completion. So out of the 6, almost 5 have been completed, and 1 is on -- very near to be completed.

Okay. And in terms of -- I think in the past, you've taken write-downs regarding the Australia projects, I mean, should we expect more write-down? Do you think you're quite happy with the level of provisioning for the Australian project?

We believe that almost all of the write-downs have been reflected. The fact that all projects are completed or very close to completion makes us feel quite secure, but no further write-downs or revisits.

Okay. And just last 1 for me, just on some of the other construction projects. Have there been any provisions, any write-downs in other projects outside of these in Australia?

For the time being, yes. In Q1, there were no further write-downs. We don't see -- we review that on a quarterly basis according to IFRS. We have to -- we review. But we don't see something coming at least till now in the second quarter. I'm talking about the first 2 months of the second quarter. But that has to be assessed every quarter. So you cannot -- you have to assess that accordingly, how the development of the project, the environment is moving on. But we don't see something right now significant.

The next question is from the line of Osman Memisoglu with Ambrosia Capital.

If I can ask you -- if you could give us the figures for Attiki Odos revenues and EBITDA. I know it's a big part of the Concession business, but it would be helpful to have it for this year's Q1 and last year's Q1, if possible. And then regarding to that, you will -- I'm assuming you have a dividend payment in June or so. If you could give us any color on the size of that, just ballpark or versus what you've done in February. Any kind of guidance would be helpful.

Regarding EBITDA, if you go in presentation on Page 5, you see the development of EBITDA in Q1. On the right hand, you see the EBITDA on Concession, which were at EUR 31 million in first quarter. Compared to the first quarter last year, that was EUR 36 million. That was mainly due to the developments on the COVID-19. I remind you that the first 2 months, Concession were in the normal course of business. And in most cases, they were up compared to year-on-year, while March due to the gradual slowing down of the economy and the restriction of movements, we have seen significant decrease of traffic movement. That continued in April, but in May, we have seen a restore of this situation, and this is what we present on Page 10 of the presentation. If you go on Page 10 you see this development that I just described on the bottom left graph. We started with positive growth year-on-year at Attiki Odos, which is the main Concession that we own. And a drop due to these issues in March and especially in April, but a significant recovery in May.

Okay. But you won't be sharing actual figures of Attiki Odos on revenue and EBITDA? Or is that something you can share?

So only for the Attiki Odos, the revenues in the first quarter were at EUR 41 million. The EBITDA only for Attiki Odos was at EUR 28 million, only for the Attiki Odos.

And for 2019, are you able to give us for comparison purposes?

One moment, please. Okay. Can we try to find the information. We can provide that in a while? We will follow if you have another question, and then we will answer to that, okay?

On the dividends, any color you can provide?

This year dividend is in line with the previous year profits. Now depending on the developments for the full year, we have to assess what will be the impact because the revenues will be impacted. The EBITDA will be impacted because of this slowdown of the traffic year-to-date. So some impact is expected, but nothing significant, but some impact is expected for next year dividend, not for this year.

Okay. So June should be relatively stable versus February? _

Actually, we have to wait and see. Today, actually, the first day of June, the traffic was back to the normal. Actually because we had also the reopening of the primary schools. So traffic was higher. But we have to see the developments to be sure. So I don't want to make a guess for June right now, but things are improving, definitely.

The next question is from the line of Sequera, Raul with Chenavari Investment Managers.

Congratulations on these results. I just want to check with you on the Construction side. Could you actually provide us with the cash flow from operations in Construction in Q1 '20 versus the year before? And in Q1 '20, the breakdown between what is the cash attributable to past project losses that were basically written off or provisioned for in the past and what is basically seasonal working capital build-up for Q1 2020, if any? And also, if you had any kind of guidance for the second quarter of 2020 as well in Construction, if that will be possible. The other question I had on Construction is that we -- I remember you were discussing about securing funding for the Construction business. So that -- I was assuming that was going to be about potentially new loans to fund the business, either factoring or reverse factoring or [indiscernible], which the construction business is [ lacking ]. Where do you stand in relation to that? And do you -- are you waiting for the new [ state act ] guarantee program for -- from the government, actually for large corporates to see whether you could use some of that for the Construction business? Or where are your discussions with the lenders in that respect?

Yes. The operating cash flow in Construction were negative by EUR 60 million in Q1 '20. Out of which approximately 60% were related to funded losses recognized in prior years in foreign operations. So that was the main part of the outflow. In Q2, the Construction has collected some amounts that was pending from -- for a long time and also our financial report has sold Hellas Gold stake and has covered all the needs for the second quarter till today, while the restructuring plan is in an advanced progress. Actually, as I mentioned before, we will be in a position to give more details about construction in the next 3 months as the restructuring plans will be completed and to have also several actions. But I can say a few things about this restructuring, our goal is to return Construction first to breakeven point and cash neutral position and then to profitability with a positive cash flow. In targets or actions, the restructuring plan are the following: First, cost base by reviewing all cost with a zero-based approach. Second, to reduce further the cost of sales with the recent introduction of the new group procurement office that will improve gradually to the margins of certain projects. Third, further exploitation of the segment's assets as we did already with Hellas Gold shares. And last but important also to pursue discussion for additional potential funding that we are -- that are underway as we speak. So in the next 2 to 3 months, and actually, in the next 2 months, we expect to have a complete restructuring, that we will be in a position to present to the investment community. Things are moving. We cannot say right now more as things are in process.

So you're saying that the -- for the second quarter, with the collection of overdue receivables from past projects and the sale of Hellas Gold of $7 million or something, I don't remember, you are able to fund the operating cash flow burn for the second quarter, at this juncture?

[indiscernible ] smaller actions, yes, the Hellas gold was $7.5 million [ of 17 ].

Yes. Yes. Okay. Okay. All right. So that's why you didn't have actually any requirements for funding from the restricted group for this quarter?

Yes, the company and the segment has succeed to manage with own facilities and means the situation in the segment.

Okay. Can we come back on the working capital movement for the receipt improvement, particularly from Renewable Energy Sources? Because there has been an increase in receivables, I guess, that is visible in the cash flow from operating activities, I think you're alluding to that, and a decrease in liabilities. Is that because there is an increase in the RES segment as well, where basically there is probably a little bit more, I would say, days of sales of turnover in receivables as opposed to the pure Concession segment. Shall we actually assume that as the RES segment increases in terms of capacity, we should also increase the receivables as a function of that? And what kind of KPI should we use in terms of days of sales versus -- days of sales, for example, for working capital purposes?

Can you repeat your question, just to clarify to be -- to us as well?

Yes, so the more way, the Concession business is actually relatively straightforward, I guess, in terms of working capital movement because the total [ roads ] are paid for crossing or a direct debit or basically credit cards or these are payments which are immediate. Whereas the RES, I'm assuming is a bit different in terms of its collection cycle, being longer. Shall we actually assume that as the RES segment grows, all things being equal, we should also grow the trade receivable or the -- I think it's the accrued income balances that would have a negative -- slightly negative impact in the working capital and into cash flow from operating activities. Like how do we sensitize the collection cycle of the RES into the cash flow from operating activities as the RES is actually growing the [ dominance ]?

If I understood well, there were progress for new Construction and to increase the capacity for the installments, which takes some time. So there was progress also in Q1 with some payments in order to proceed with the construction process, which due to the COVID there were some delays in the implementation. But that is on the pipeline to be complete. So you see some developments there. But due to the COVID impact has not been implemented into real construction in order to be measured as construction impact. But things are moving on and are moving on more gradually as April and May things have normalized more, if I can say.

So basically, payments for construction activity related to the RES effectively?

Wind farms?

Yes, yes, for the wind farms. So that's actually for the subcontractors and the EPC companies that are building the wind farms. Is that correct? So those are maximum payment that you provide to them?

There are a lot of constructions, the ones that you mentioned, but also you need also to build for roads and to open the -- to prepare the space, which is before you have these constructions.

Okay. Got it. Got it. Understood. Understood. Can you clarify this mechanism of wind farms in trial capacity, in trial operation? Do you invoice actually the customer when you're in trial operation? And do you collect the cash there? Or you have to wait until it's connected? I was just trying to understand, effectively, what's the difference between trial operation and connected.

During trial operation, we produce. But this will be invoiced once we have the operation permit, which means once all these trials have been successfully completed.

So that means that...

We produce energy, but we will invoice it, let's say, retroactively once we get the operating permits.

But do you recognize in revenue and EBITDA?

No.

Okay. Okay. Okay. So it's once you have the approval for the operation from the utility or for the system that you can invoice and then what you invoice, you recognize in the EBITDA.

[indiscernible]

Okay. Okay. So if we look at our models for Renewables, I think it's in Slide 11. So 401 contributed to revenue and cash flow in Q1 and remaining [ mix ] were connected at the end, but it means that if we look at the -- for Construction of the revenue, we should take 401, which is the average capacity -- average operating capacity, right?

401 is the average in the first quarter. You should assume that that will be increased in Q2 because we are going to have the permission for the [ wattage ] in the trial.

But the ones that were in the trial were 196 because that doesn't tie to the 401 actually.

491 will be at the end of March, which will be for the average, we will start the base for the average of the Q2.

Okay. Okay. All right. So we should use 491 for the average of Q2.

More or less yes.

[Operator Instructions] The next question is from the line of [indiscernible] with Axia Ventures.

One clarification question regarding the funding to the restricted group -- to the unrestricted group. Looking at the financial statements of the restricted group on the cash flows, you mentioned that loans to related parties affected investment cash flows in Q1 by EUR 40 million. Can you help me bridge that with the EUR 27 million exposure that you mentioned previously?

Yes. As I mentioned that -- the EUR 27 million that I mentioned to you before, on top, there were EUR 13 million, which was contributed as an intra-group loan facility from restricted group to unrestricted group that was signed before the issue of the notes that had been also announced and presented in the previous quarter. And also, it is also in the notes or in the offering of the notes that we had issued. So this EUR 27 million plus EUR 13 million, the EUR 40 million. That note -- that agreement was August '19, but has not been disposed till the issuance of the note and has been disposed during the first quarter of 2020. So this is the EUR 13 million.

Okay. So the EUR 40 million -- so I guess the EUR 27 million plus EUR 13 million, but the actual cash outflow happened in Q1 '20, did I get that correctly?

Correct.

Okay. So there were pre-agreed, let's say, kind of transactions executed within Q1?

Correct.

And regarding the dividend flows. If we take the full year 2019 adjusted profits that were in the tune of EUR 72 million, and we assume that 50% of that could be distributed to the -- as dividend, is that correct to assume that this is the max that we could see as outflow from this specific basket for 2020, understanding your comments that you will need to reassess? So it will take into account the operating performance, but let's say, as a reference level.

If you're talking about the build-up basket, if I understand well, this is what -- are you talking about? Correct?

Yes. Yes, correct.

The build-up basket is primarily equal to 50% of the consolidated net income of the restricted group for the period. Could be quarter, could be cumulative 6 months, could be whatever. So in Q4, that amount of profit were at the level of just below EUR 20 million, EUR 19.87 million, if I remember right.

Okay. And you paid those EUR 9 million?

That was the EUR 9.3 million in Q4 last year, that was in Q1 this year, that we have transferred. So this is the calculation. The 50% of the consolidated net income, it's not dividend. It is ability.

Next question is from the line of Donati Stefano with BlackRock.

Welcome onboard. Three clarifications if possible. The first 1 regarding the Concession business. So if you assume the Concession business runs at today or the second half of May level, say, 20% below what it was before the crisis, can you give any guidance in terms of the operating profitability of it, just to get a sense versus historical? Second clarification, you mentioned you are going to present investors with the restructuring plan for Construction in the next reporting season. Just to clarify, you mean you're going to present to us done, agreed restructuring or you're going to address banks and other investors with the plan?

Regarding construction, as I mentioned, the Q1 has been almost steady in terms of EBITDA. As Sakis has mentioned, I'm new in the group, I'm just 3 weeks on the group. So it's very early to make any view on the construction for the full year. I have seen that in the past few -- at least the last 2 years, a significant loss has been recognized, especially from abroad and the focus on the construction is mainly for Greece and Romania, in which the group has significant more expertise and know-how and better understanding and with a better margin. So it's difficult for me to say any view for the full year as I'm very new of the group. So I think I will stop on that. I cannot say more on that. But I see the strategy, which is on the right direction, to focus on the one area that you know better, and the markets in the past were materially better than abroad. Moving to the restructuring plan. As I mentioned, this is underway. We will present it, and we are expecting to be completed by the summer, so before August, and we are planning to present the main elements of the restructuring plans to the investment community after the completion of that. That includes, as I mentioned before, reduction, of course, new procurement office in place, further exploitation of assets that the segment has in order to support the cash flow issues and to pursue discussion with the potential funding from third parties, including banks, which are underway discussions. So I cannot say more, but everything is under -- in progress, and we will be in a point to mention significant more details of that plan in August.

Understood. On the first point, sorry, maybe I wasn't clear. I was referring to Concession. If you think about Concession at current operating rates by 20% below the historical level, more or less. Can you give any guidance in terms of what does it mean in terms of profitability of that specific division?

Sorry, I was referring to the Construction as most of the questions before were to that, sorry. On the Concession, Q1, as you can see in Q1, the profitability -- the EBITDA on Page #5 has been reduced compared to the previous year, mainly impacted by the COVID. That in Q2, as we had the full month of March with-- of April with the lockdown, that should expect to be lower and gradually to return. So year-on-year, for the full year, it's going to be a hit on the EBITDA compared to the previous year because of the COVID. I think what you should expect on the real GDP growth on the economy, a similar impact should be on the Concession, but we have to assess as the economy develops and what will be the restoration of the situation in the economy gradually. But since the beginning of the unlock of the economy, we see a significant restoration. This is what we present on Page 10. So in one note, similar impact as the GDP, which is roughly close to 10% impact on the GDP this year, something similar, I would assume for the Concession for the EBITDA, for example.

The next question is from the line of Memisoglu Osman with Ambrosia Capital.

Again, just follow-up on the working capital side. So can we say for Q1 increase, which is roughly around just north of EUR 20 million, Renewables was the key driver for the working capital increase. And if you could give us any kind of -- once the trial operations are done, is it going to be lower working capital? That's my first question. The second 1 is given the increased focus or potential increased focus of government on infrastructure, is there any update on the Athens metro line project? And any update on the process? Any color you can provide.

On the first question, you are correct. This is what I described. Second one, Sakis?

Well, on the second one, there was a dispute in the Supreme Court for how will you [indiscernible] measures, something like that. And now the injunction, yes. And now the Board of Directors of Attiko Metro will come back with a reply to what the Supreme Court has pointed out as irregularities, let's say. So we expect this to come up within the next few weeks. And then we'll have a better view of what will be the next step. It seems that it will take some more time.

Just to complete the previous question that you have raised in the first round. The EBITDA of Attiki Odos in Q1 '19 were at EUR 33 million, as I mentioned, and '20 were at EUR 28 million, okay?

EUR 33 million for revenues. EBITDA was...

No, that was EBITDA.

Okay.

Revenues were EUR 45 million in Q1 '19. EUR 33 million was EBITDA in Q1 '19.

[Operator Instructions] Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you.

Ladies and gentlemen, thank you for your attendance to today's call. We all know that 2020 will be impacted by COVID-19 pandemic. Nonetheless, we remain cautiously optimistic. The group's transformation is progressing. ELLAKTOR diversified its Concessions portfolio with Alimos Marina, the only major Concession project done recently. And the Renewables are proceeding with its ambitious expansion program. And although the completion of the 88-megawatt may be delayed due to the pandemic, we expect to reach our goal of 579 megawatts installed capacity in 2021. In Environment, we remain in a great position to capitalize on upcoming growth opportunities, while in parallel, we complete the restructuring of Construction. Therefore, we expect 2020 to be challenging, yet better than 2019 in terms of profitability. Well, thank you all for your attendance, and I wish you a good evening.

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling, and have a pleasant evening.