Xstrata Alloys - VMA Group talks to the CFO

Hanré Rossouw began his career as a metallurgical engineer at Anglo American and subsequently worked for Accenture and De Beers before joining Xstrata plc as a Manager in the Strategy and M&A team. He has been Head of Investor Relations at Xstrata since 2007 and, in April this year, took up the role of CFO of Xstrata Alloys in South Africa. Lisa Wannell spoke to him about his move from IRO to CFO.

Hanré is a strong believer of IR as an invaluable training ground for finance executives ('It makes for more fully rounded finance professionals'), and those looking to other management positions within their own or another organisation. Equally, for him, the experience he gained in M&A and strategy was crucial to him going on to head up the IR function at Xstrata. The key role he played in the evaluation, due diligence and execution of various transactions, including Xstrata's integration of its $20bn Falconbridge acquisition, gained him the buy-in of senior management and valuable market /transactional experience. The best IR, he believes, happens when IR is combined with this real company experience - 'time in the trenches' as he putsit.

As Head of IR, his input into the formulation and execution of both the Group and business unit strategies reflects the recognition of IR not only in terms of a company's strategy but in the execution of that strategy. IR, he believes, has definitely come of age and is now regarded as a fully fledged function rather than a support role.

IROs in the majority of FTSE diversified mining companies have, on average, a 2-3 year stint in IR. He is quick to point out that IR is not alone in providing invaluable skills in the armoury of any prospective CEO or CFO; those coming into their role without an understanding of capital markets, of how banking, the sell-side and the buy-side all fit together will find it tough. Crucially, an understanding of public markets gives a unique perspective of your own company and its investment case. IROs recognise the 'privileged' position they hold, being one of very few other functions who enjoy the same 'helicopter view' of an organisation as the CEO & CFO. 'There's a crucial skill that IROs need to develop from this: the ability and agility to 'think big but act small', to move from the big picture to the detail and to make sense of what is valid in an overload of information in order to keep shareholders informed. '

IR at Xstrata is driven by this big picture thinking, an input into M&A and corporate strategy and the dictate that there must never be any surprises to shareholders. 'By being an effective conduit for communication, IROs help investors to view the company from theperspective of the senior management and equally this facilitates a deeperunderstanding of investors' viewpoints,' he says.

And so to the question of career IROs versus those who move on from IR. Hanré's view is that both are, of course, valid and both have their own challenges and merits. Switching industries within IR can beenormously fulfilling depending on what happens within a company. On a personal level, he feels that learning curves peak at around 3 to 4 years into a role and so for him, moving into a senior role in finance was always part of the game plan.

Will he miss anything from his time in IR?

'As CFO I know I'll lose the strategic level of thinking I've had and I'll miss that.'

Bet he won't miss the weather though.

We wish Hanré all the very best in his new role.