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TWST: Can we begin with a quick introduction to BBAG (Frankfurt: OBRV.F) including a brief historical sketch and your core markets?

Mr. Büche: BBAG is a Pan-European beverage company. The corporate headquarters is based in Austria. We’re mainly operating in three core divisions which are: the beer business, the soft drinks business, and the real estate business. The beer activities account for around two thirds of the total group EBIT and we are focusing on Central Europe. Our goal is to become the number one brewery group in Central Europe. We started with the internationalization of our business some 10 years ago. We first of all entered Hungary, taking over two breweries there. Since then, we have increased our market share from 11% to currently 27%. Step-by-step we expanded our business to other countries. We came to the Czech Republic in 1994. We came to Romania, in the first wave, between 1996 and 1999 where we took over four breweries, followed by a major acquisition of three additional breweries in the year 2000. We are now market leader by far with around 34% of the market. Also in the year 2000, we entered the Polish beer market which is the largest beer market in Central Europe. We took over three breweries there. Not to forget Austria, where we are market leader as well, with a market share of roughly 55%, whereas the number two has only about 8%. As to the soft drinks business, we operate with our mineral water in Austria. But more importantly, we have a fruit juice brand called Pago. We were able to internationalize this business since the early 90’s when we had literally no export at all. Today we have two thirds of the volume sold outside of Austria. Our main markets are: Italy, Austria, France, Spain, and Croatia. Those five markets represent around 94% of our total volumes. Our third core division is the real estate business. We introduce innovative as well as creative development projects, like business parks in the south of Vienna and close to Graz, the second largest city in Austria. Also the Europe-wide only furniture store Cluster, again in Graz.

TWST: Can you talk about the growth opportunities for the three businesses and your strategy going forward?

Mr. Büche: Let’s stick first of all to the beer business. Geographically, we’re operating in a fascinating area. We have a huge expertise in Central Europe. And we have built up a “center of competence” here in Austria, in the heart of Europe, over the last 10 years. Given the scenario of an EU enlargement for those countries that are our target areas, we’re very confident to benefit very much from this enlargement and from the accession process. On the one hand, there are direct effects like savings in the procurement area. At BBAG we will be able to buy raw material without that level of customs and taxes that we pay today. And there is the consumption perspective, given the purchasing power in those countries. It could be raised over the last year significantly, but there is still a lot of potential for the consumers living in Central Europe. Just to give you an example about different consumption levels: Mature markets like Austria or Germany have very high per capita consumption -- 107 liters in Austria and 123 liters in Germany; whereas the average per capita consumption in Central Europe reaches only a level of 70 liters. And on the other hand you have countries like Romania, where the per capita consumption is 50 liters, or Poland with 62 liters. In those countries, we expect excellent growth opportunities.