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TWST: Could we start with a quick introduction to Thiel Logistik (Frankfurt:931705.F), including a brief historical sketch?

Mr. Krabbes: Thiel was founded in 1985 and went public to the Neuer Market stock exchange in the year 2000 as a very high growth company. The Company focuses on logistics and especially on outsourcing, contract logistics, value-added services and healthcare logistics and services. We have made several acquisitions in Europe. Our latest acquisition was Birkart, which is quite a global company, in January.

TWST: Can you elaborate on your business segments?

Mr. Krabbes: We have actually recently changed our reporting from our former segments -- contract logistics, value-added services and healthcare logistics and services -- into regional segments. The reason is that this is a very fast growing company. We have now close to 10,000 employees and now, according to US GAAP, we report by 5 regions, which is basically Western Europe, Middle and East Europe, Southern Europe, Intercontinental, with Switzerland separately because it’s not a member of the European Union.

TWST: Do you have quite a diverse customer base?

Mr. Krabbes: Yes, we have actually quite a range of different customers because we are working in several different sectors. With Birkart, for example, we also acquired the fashion logistic part where we are working for the major retail industry companies in Germany, such as Quelle and C&A. We also work in automotive industry for DaimlerChrysler and BMW, for example; in the chemical industry, where Dupont for example, is one of the customers; in the fast food industry where for example Burger King in Germany and Master Foods and Red Bull are customers of ours. Red Bull is actually one of our major customers and they in fact outsource everything to us: we provide services starting with filling the cans, painting the cans and then the whole distribution process worldwide. That gives you a good picture of what we actually can do. It’s all aspects of the logistics, not only the freight forwarding but all the processes that are involved. Another of our divisions is healthcare logistics and services. We generate up to 20% of our annual turnover in the healthcare sector, focusing on, for example, hospitals and other types of healthcare facilities.

TWST: How does the current environment for outsourcing in Europe look?

Mr. Krabbes: The outsourcing rate in Europe is much lower than for example in United Kingdom or in the United States. But this is actually a direction in the industry that everything is heading towards. So that will grow in the future. Actually, in the whole logistics outsourcing field, the analysts expect a three times GDP growth. So, on one side, you have quite high outsourcing quotes in the United States, the United Kingdom, and in Scandinavia. But on the other side, Continental Europe is still pretty low. However, we see some changes and developments that we expect to take place that will actually significantly speed up and expand the outsourcing process. Unfortunately, because of the economic situation, this has slowed down a little bit. So it will take a little longer before we achieve the same outsourcing quote as the United States or the United Kingdom.

TWST: Putting much of this together, where would you reasonably expect to see the company positioned three years down the road from now?

Mr. Krabbes: I would hope that we are positioned as one of the leading five or ten players in Europe and in a position where, based on the structure of the company, nobody is afraid of a takeover. I would also expect us not to be dependent on any sector and providing the services along the supply chain. I think then we would be in a very good position.