Hello, ladies and gentlemen, and welcome to the conference call on EVM's Results for the Q1 2019 2020 Financial Year. At this time, all participants have been placed on a listen only mode. The floor will be opened for questions following the presentation. Let me now turn the floor over to your host, Mr. Stefan Shyskovitz.
Good morning, and welcome to the conference call on IVAN Triclouds for the Q1 of 2019 2020 financial year. We have started with a sound performance in 'nineteen 'twenty financial year. After finishing the Q1 at the end of December, the day delivered results by above the previous year. Most importantly, we delivered the initial normalization of our supply business. Last year, our supply company, EMEA and KT, suffered from higher wholesale prices, both in terms of reduced margin as well as the valuation of hedges.
After implementing the price increases in 2017 'nineteen and changing the methodology of the accounting of hedges, we managed to bring the operational results of the equity composite company eventually back to normalized level. I would also like to highlight that the share of the group's renewable generation was 50% in the Q1 compared to 34% in the previous year. Starting, this is a rise in renewable generation as a result of last year's expansion of our mid power capacity. As you know, we now have an installed capacity of 3 67 megawatt. In addition, the termination of the coal fired generation in general last summer contributed out substantially last year's pretense production mix.
With our setup, Evang Group is in the best position when it comes to enabling the transformation of the energy system. Turning to service design brings us to our communication efforts to the general public and to investors in special. So again, we shall be recognized as an enabler of the energy transition. In the coming years, we will further expand our renewable generation fleet, This will not only include things, but also large scale of the work guide. For the later, we have identified the potential of up to 100 megawatts for the group.
We currently assess patients and have timing to implement such forward eye potential. The execution reached under breakdown of the transformation of the energy system. Therefore, the major portion of our investment program is dedicated towards upgrading the network infrastructure for the integration of growing volatile and decentralized electricity generation of wind and sun. Let me remind you that the EN is number 1 in all sales impact biomass heating and that we have a strong leverage in the environmental business. In a nutshell, and to conclude, we think that all of these activities will place broader demand on ASG oriented investors.
I would also like to use today's call to provide some information on our new project in Odette. Let me turn to the next slide now. The generated contract was awarded by the Woundheim Phasequarter project. The project consists of 2 parts. 1st, phase accounted for the construction and utilization of the base water pressure plant within the public private partnership.
Our German subsidiary of the VTE, HAPIFRISN could serve as the general contractor. The project value is about €600,000,000 The capacity of the plant it's for 500,000 cubic meters a day, which corresponds to the base quota of about 1,700,000 people. In the past, WTE already realized projects of comparable sites, for example, in Warsaw, Iraq, Pakistan, Switzerland. According to the PPP structure, WTI customer under the EPC contract will be a project company, which further received project financing from a consortium of banks, including the German Cardew assets. We enjoy the shareholders of this project company with great institutions.
WTE will be a minority shareholder with a split of 20% with respect equity contribution to be invested is about €30,000,000 The equity contribution is covered by a state currency from the German Republic of Germany. Construction period of the plant is 2.5 years. The after W3 will be sponsor in collaboration of the plant for a period of 10 to 12 years. The biggest part of the Kuela project is a general contractor assignment for the construction of the respective sewage infrastructure. This means pipes and presentation to transport the data to the plant that defuified water bags to be used for irrigation of panel.
The switch infrastructure has a further decline of about €350,000,000 Revenue sharing this contract is the 1st. The payment of this EPC contract is entirely financed at the state of COVID. Construction for this part of the project is scheduled to extend after 4 years. I will now continue with the key financials of the reporting period. As well as the volume and price effect in the network sector.
And that's exactly consistent with the energy revenue in this area revenue in the International Project Business. I would cover here of EVA in CAC as well as its sound performance in Southeast Europe supported an improvement in EBITDA, which was up 15.8% at €190,600,000 Weight is the scatter depreciation was higher due to the investments in the remuneration we had to do after the impairment estimate at the end of last financial year. We completed new fixed of €61,950,000,000 for €118,800,000,000 On total, we generated a good year result of €82,900,000 during the Q1 of fiscal year and due year, which corresponds to an increase by 20.3% on a year to year basis. Now I would like to move to the next slide, which provides our information regarding the food's balance sheet structure. Our communication regarding capital structure and financial objectives remains unchanged.
We believe the net debt will remain at a level of €1,000,000,000 for the time being subject to funds to solicitations. As of the end of December 2019, net debt stood at €4,100,000,000 disclosed that the net debt was also due to which had an effect of about €70,000,000 in the 1st quarter. The plan to invest is approximately €400,000,000 per year over the coming years, therefore roughly €200,000,000 annually are dedicated to our networks, renewables, biometrics and going to work in lower cost. Upon the go to digital instrument in detail, I would like to give you a general overview on the ADTR development for our business segments. The overview of ADTR development perspective illustrates the key drivers of our performance during the quarter period.
On the positive side, we continue to improve in the energy in the Southeast Europe segment. In contrast performance of this generation, the network segment remained in the low prior year, which is how the line of this segment offers us to create in December. This is very general overview. Let's now move to the next slide which covers the generation segment in more detail. The conditions in new business and our mixed waterfalls in the Danube and the Inuit are relevant for our electricity purchasing rights, they are above the previous year.
In contrast, had the low average hydrological conditions for our small hydro power plants. In closing, we had above the long term average, but below previous year. However, last year's commissioning of new wind parks led to an increase in wind generation. In total, competitive generation of renewables in the generation segment exceeded last year, whereas lumber generation volume declined. This is due to the cost of our coal fired plant in Guinea River and lower use of our gas fired plant and pipes for network cannibalization.
The total electricity generation volumes in the segment were down by 32.3% year on year. Special revenues declined in line with the government. Generation segment also reported lower EBITDA of €34,500,000 Scheduled depreciation and up due to the investments and reevaluations, resulting in a lower EBIT of €17,900,000 We will accelerate the Energy segment. Energy segment was by a €22,700,000 below the previous year. This was primarily due to the decline in marketing of oil waste and energy generation and the reduction in natural gas trading.
The lower usage of primary energy carriers were rising over atomic energy down at 33.6%. Energy's share volume showed capital development. Volumes and liquidity were up 10.4%, following higher supplies to larger customers in Alto In general, natural gas sales volumes were down by 1.9%. As already mentioned, our electricity and natural gas supply business, which is handled by E VNKG, recovered from the current normalized earnings levels. E VNKG's contribution to our equity result was €6,300,000 in the Q1 after a loss of €6,000,000 last year, which was caused by higher operating costs and negative effects on the operational pressures at the same time.
SME Developments and Energy segment reported an EBITDA of €31,700,000 and an EBIT of €26,700,000 On the next slide, I will present the developments in our network segment. The net sales volumes showed a different development, whereas volumes for electricity were slightly up. The natural gas distribution volumes declined in view of the reduced in support of the power plant in the Wallachs. I would also like to remind you that the new regulatory peers have a lower luck start distribution as of January 2019, which means that that's lower WACC supply in our Q1 of 2019. Based on volume developments in few of lower tariffs, revenues came down about 5.1%.
As expected, the network segment generated lower EBITDA of €68,600,000 which corresponds to a decline by 40.7%. EBIT was down by €27,400,000 or €36,200,000 due to a higher scheduled depreciation. At the beginning of the new year calendar, we also recapture the total determined net interest. While tariffs related to the increased by 4.8% on average. Gross natural gas royalties were 8.1% on average.
On the next slide, I will continue with the Southeast U. S. Segment. China's energy sales and natural distribution volumes suffered in the In total, E and A of the segment was up by a decrease by €3,000,000 and aided at €55,500,000 I would like to As of the end of last December, we were working on 8 general contract assignments in Lithuania, Poland, Romania and Bahrain. Development of the quarter book has resulted in interest in the development of the IDM segment.
The rise in revenue from the international project business which we continue by the corresponding rise in corporate expenses. The share of results from equity accounted industries with an operational nature was below the previous year. Please remember that last year still included final earnings contribution from the waste water project in Iraq. In total, this development led to the 2nd decline in EBITDA is required €75,000,000 at an EBITDA of €2,500,000 Finally, I would like to update you on the recent developments in connection to the termination of the base of the treatment project in Ukraine. Board of Defense projects in Buito and Multimutho.
The Board of Testing also received May to support Asian and we determined the contract and started negotiations with the representatives of the municipal in the public of Montreal. Last December, the enforcement of claims led to payment of the guarded guaranteed amount of €29,500,000 either public or the legal municipality to have repaid its obligations. This is the reason why in general, the depreciation proceeds declined and the guarantee contract of the municipal initiated to force 500.26. As at the end of January 2020, the U. S.
Water basin also ended its internalistic operation of the wastewater treatment plant, which has been completed in late 2018 and handed the takeover to the municipal system. With this, I will do the presentation of the segment. On the next slide, I will continue the development of gross cash flows. Gross cash flow fell by 29.9 percent to €140,700,000 in the Q1 of this financial year. This was caused by lower legal payments from equity accounted activities.
Due to the negative development of our working capital as of the €100, cash from operating activities amounted to minus €28,900,000 Cash flow from investing activities reflect this net investment in the 12 equity promotion of the crude debt project, which is contrasted by of loans. The net change in cash and cash equivalents amounted to minus €90,400,000 I would like now to conclude our today's call with the outlook for the group. With today's Q1 results, we confirm our full year guidance. Assuming average conditions in the Energy business, we expect that the operating itself will remain constant, This brings us to expect that the operating results for NIS is in the range of NIS 200,000,000 to NIS 200,000,000. When comparing the outlook with our results for the last fiscal year, please bear in mind that this included COVID deceleration effects of approximately €110,000,000 after tax.
And I would like to inform you that based on the information provided by EPW first at the end of December 2019, we note that the asset sales decreased further compared to 28.6 percent to 28.4 percent, which brings us up to an increase of 20.6%, including our cash of around 1%. I have now reached the end of my presentation of the event results for the Q1 of 'nineteen, 'twenty financial year. I'm now looking forward to answering your questions.
We have the first question from Vanessa Shinveit.
I have a few. First one is you mentioned lower hedging effect in your report. How much lower were these effects compared to the CHF 40,000,000 reported in the Q1 last year? Then the second question is on the networks. If you could give us also value for the reduction of the transmission costs in the networks because they were lowered as well.
And regarding the SCE results were really strong, surprisingly strong. Is this a benchmark for the rest of the year? What do you expect in terms of EBITDA for Southeast Europe? And the last one is quick one. What was the nonrecurring effect at RHE and how much was it?
Okay. So thanks a lot, Madam, and she's right. So firstly, regarding the change in the valuation of the hedges, it's around 14,000,000,000. And to take a closer look, 20% to 20,000,000 coming from KG. Regarding the calculation, the yearly adoption of the crude prices, Actually, it is true that the completion cost reduction is also included.
But under the bottom line, we've kind of a small increase is what is the total calculation reflecting the cost adoption. In the network costs, there are higher also to higher market prices. This is always a moving circulation. And having Southeast, actually, we think it's very guiding costs for relating HBT has increased in the comparison year to year comparison of the 1st quarters. I would confirm that we expect the daily between EUR 40,000,000 to EUR 60,000,000 per year, more on the upper side.
But please keep in mind that the prices are always adopted by the 1st July, and we have to rate that last year's measures compensated this year's measures. So there's also a timing effect here. Of the change in the special production portfolio or the expectation regarding themselves there, coming up in December, something like what's happening in the Q4 of last year. And therefore, with our energy results on a yearly basis, this is a time.
Okay. So if we put average contribution in the 4th quarter and the 1st quarter, is a hint about the onetime effect. Am I right?
It's more stable than it looks. It's just that the balance sheet paid in the first quarter date on comparatives.
Okay. Thank you. Got it. Next question comes from Mr. Peter Crampton.
Mr. Crampton, your line is open.
Good morning. Thank you for taking my question. We've seen good recovery in your energy subdivision. And I just wanted to know when do you expect these kind of negative one offs to kind of fully have washed through? And what would be kind of a reasonable EBIT margin or kind of EBIT for the energy transition in kind of a stable state environment?
Actually, we expect one more year, still the real actual volumes on this hedge accounting basis is coming to a more normalized level. As of course, the volatility as we have seen over the last years is increasing due to volatility of energy markets in general. And regarding the margin, we are expecting over a longer period around 5% margin in this kind of retail business. So thank you for joining today's conference call. We will publish our half year results for 'nineteen-twenty on Thursday, 28th May.
Please join us, Ben and Jen and his