How we support Faber Kabel’s operational
business model, helping them minimise risk
Case Study: trade credit insurance for the wholesale supply of wiresand cables
We have developed a strong working relationship with Faber Kabel based on an in depth understandingof their business operation and goals over the past 40 years. Ulrich Spies, Head of Finance andAccounting at Faber Kabel, has described Atradius Credit Insurance as central to the development of
their customer relationships.

Aims

At a glanceCompanyKlaus Faber AG (operating asFaber Kabel AG)
Trade SectorWholesale supply of wires andcables
MarketGlobalTheir credit insurance aims
To support the strategic
development of our business
relationships
How we made it happen
Using a thoroughunderstanding of Faber
Kabel’s market and customers,
to provide a secure operational
platform

The primary aim of Faber Kabel’s
approach to credit insurance is to securea sustainable balance sheet. As Ulrich
Spies explains: “We generally secure allof our receivables – both on a nationaland an international level.

For us, effective communication withour credit insurers is very important, as
it allows us to take decisions and offer
credit terms to customers quickly andeffectively.”“Credit insurance supports us in thestrategic development of our business,in particular with regard to loss
prevention and debt default.

As a supplier of cables and wires
to a domestic and international
market, we need a credit insurerthat understands our business risks
and can respond quickly to ourneeds with effective communication.
Atradius fulfils these requirements.
Ulrich Spies,
Head of Controlling, Financeand Accounting
Klaus Faber AG

Our role
Our role is to provide Faber Kabel withcredit insurance and business information
to support their strategic development
and business goals through a minimised
exposure to risk. We work closely with thebusiness and have built a strong working
relationship dating back more than 40years.
In practice this includes the evaluationof Faber Kabel’s customers and potential
customers, which we do both rapidly andobjectively. In addition, the company uses

Alexander Ruppenthal
Leiter der Vertriebsniederlassung
Mitte

our wide-ranging knowledge concerning
the current economic situation ofindustries, countries and companies as
an information tool when managing theirtrading activities.
The amount of credit protection we grant
for each of their customers is used byFaber Kabel as an indication of volume
limit for their sales department. This
allows them to trade effectively while
minimising risk.

Outcomes
During the global financial crisis in 2008, wewere able to demonstrate our importanceas a critical partner for Klaus Faber AG. As
Ulrich Spies acknowledges: “The downturnof several economies, in combination withfinancially weak enterprises and burdeningcurrency exchange rates, were risks which
we were able to deal with adequately thanks
to the support of Atradius. That’s why wehave come through the crisis better thanothers.
“However, we also recognise that credit
insurance is not just for financial crises. That
is why we don’t want to relinquish credit
insurance even in economically good times.
Our operational strategy is to minimise risk,
regardless of the economic climate.

“This approach is relevant for all of ourcustomer sectors, but is particularly
important for the developing renewableenergies sector. Booming industries like thesolar and photovoltaic industry are subject
to global competition, with sometimes
ruinous, price wars. For this reason there
can be widespread risks of payment default,
even if the economy in general is running
well.
“Moreover, our principal banks value ourthoughtful and risk-minimising commercialpolicy. This perception of our company
is also reflected by the financial strengthof Faber Kabel and a range of positive
company valuations made by different
economic institutions”.

About Klaus Faber AG
Located in Germany’s industrial heartland,
the Saarland, Klaus Faber AG specialises
in the sale of cable and wire. The company
supplies customers domestically inGermany as well as distributing its products
throughout the Europe and the world.
Today, Faber Kabel is one of Europe’s largest
cable distributors.

The company commits to customer-delivery
anywhere in Germany within 48 hours andoperates an infrastructure that supports
global deliveries, no matter how complex.
Faber Kabel prides itself on providing
high quality cable and wire and excellent
customer service built on a cornerstone of astrong internal team ethic.

With an inventory comprising more than
8,000 products, Faber Kabel can offer
customers a choice of more than 80,000
packaging units and an infinite number ofcable length variations.

Connect with Atradius
linkedin.com/company/atradius@atradius
youtube.com/user/atradiusgroup

Atradius Credit Insurance N.V.
David Ricardostraat 1
1006 JD Amsterdam
The Netherlands
www.atradius.com
Tel. +31 (0)20 553 9111
ATR.CS.FK.001