Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — Lufthansa Technik — Investor Day (December 2024)
83 slides from Deutsche Lufthansa's investor day presentation, Dec 10, 2024
Slide 1: Lufthansa Technik – Capital Markets Day
Lufthansa Technik – Capital Markets Day December 10th 2024 Lufthansa Technik AG, Hamburg
Slide 2: Best-in-class management team
Best-in-class management team Lufthansa Technik is setup for continued long-term success 25+ 25+ 20+ 24 15 21 Sören Stark William Willms Harald Gloy 17 9 18 CEO CFO COO & CHRO ▪ CEO since 2022 after being COO since ▪ CFO since 2021 ▪ COO & CHRO since 2022 2019 ▪ Previously EVP Lufthansa Group and ▪
Slide 3: Agenda
Agenda 1 Opening Remarks 11:00-11:15 4 Touch & Feel + Lunch 12:30-14:15 Till Streichert (CFO Lufthansa Group) Engine Shop Tour & Exhibition and Lunch Buffet 2 MRO Market Environment 11:15-11:45 5 Strategy & Ambition 2030 14:15-14:45 Sören Stark (CEO Lufthansa Technik) Sören Stark (CEO Lufthansa Tech
Slide 4: Opening remarks by Lufthansa Group
Opening remarks by Lufthansa Group Till Streichert CFO Lufthansa Group lufthansagroup.com
Slide 5: MRO Market Environment
MRO Market Environment Sören Stark CEO Lufthansa Technik lufthansagroup.com
Slide 6: MRO is mission-critical to airlines – LHT is the 'Gold Standard'
Introduction | MRO is mission-critical to airlines – LHT is the ‘Gold Standard' Customer perspective No aircraft Our value proposition MRO is… takes off Lufthansa Technik is… without MRO … #1 warrantor for … accredited by flight safety all major authorities … the industry ‘Gold … essential for Stand
Slide 7: Market segments: core MRO services cover entire aircraft
Market segments | Core MRO services cover entire aircraft, from nose to tail Aircraft maintenance services Engine services Line maintenance ▪ Engine checks/overhauls performed ▪ Transit checks off-wing (every 7-9 years) ▪ A-checks (every 500–700 flight ▪ Engine parts and accessories repair hours) ▪
Slide 8: MRO market determined by global fleet, MRO events and fees
Market size | MRO market determined by global fleet, MRO events and fees c Fleet size & Number of MRO Average fees MRO composition events per A/C per event market Key Stable growth (~3% p.a.) Mostly determined by Strong influence of cost takeaways based on order books airworthiness regulation of OEM
Slide 9: Steady MRO market with 1-2% p.a. volume growth until 2030
Market growth | Steady MRO market with 1-2% p.a. volume growth until 2030 A/C production and MRO Market have the same size Commercial MRO market (€bn, volume growth)1) Airlines 1.4% The commercial 100 103 93 MRO market has 13 the same size as 18 the commercial 18 aircraft production market 45 '23 '2
Slide 10: Regions: EMEA largest market, APAC highest growth
Regions | EMEA to remain largest market, APAC with highest growth rate – Lufthansa Technik active and well positioned in all geographies Commercial MRO market per region1) xx% % of total market (€bn, volume growth) 31% 29% 39% 36% 30% 34% 0% +3% +1% 36 37 35 29 30 28 '23 '30 '23 ‘30 '23 '30 Americas
Slide 11: Four types of players – ~40-50% covered by MRO specialists
Competition | Four types of players – ~40-50% covered by MRO specialists MRO specialists Illustrative Airlines Airline- Engine & Inhouse affiliated Independent Component OEMs Market share ~ 10–20% ~ 40–50% ~ 40–50% MTU Aero Engines Examples AFI KLM E&M ST Engineering Delta TechOps AAR Main competiti
Slide 12: Top MRO specialists: LHT is global leader
Top MRO specialists | LHT is global leader with high share of external revenue External Company name MRO type Scale (rev. 2023)1 revenue share2 Business strength Market focus #1 Airline affiliated Nose to tail Global MTU Aero Engines Independent Engines (+OEM & Mil) EMEA, APAC StandardAero Independe
Slide 13: Lufthansa Technik has prime position in attractive MRO market
Summary | Lufthansa Technik has prime position in very attractive MRO market Substantial Sustained Long-term High entry Global market size growth visibility barriers leadership Attractive $100bn. Attractive and Backed by order Constrained market Lufthansa Technik market – same size steady market boo
Slide 14: Lufthansa Technik Business Segments
Lufthansa Technik Business Segments Harald Gloy COO & CHRO Lufthansa Technik lufthansagroup.com
Slide 15: Segment portfolio: core MRO, engineering and digital service provider
Segment portfolio | Core MRO, engineering and digital service provider – Nobody understands an aircraft better than Lufthansa Technik Engine Services Broadest engine portfolio, including NewGen Digital Fleet Services Aircraft Component Services Market leading TechOps offering Largest and most effici
Slide 16: ENG: Engine Services
ENG: Engine Services lufthansagroup.com
Slide 17: ENG: Leading segment with >2.5k engines served
Engine Services ENG | Leading business segment with >2.5k engines served globally Key Facts Global Footprint >4,500 >2,500 DUB employees worldwide Engines under contract SNN YUL TUL Certified by SZX FAA and 12 Engine Service HAM Arnstadt EASA and further Facilities and 8 test cells Market growth (€b
Slide 18: Market coverage: capabilities for regional & narrow-body engines
Engine Services Market coverage | Deep capabilities to serve almost all regional & NB1) engines Lufthansa Technik engine capability coverage in 2030 Narrow-body Regional jet Wide-body ~10,000 ~15,000 Engines ~45,000 Engines Engines covered by Lufthansa 80% Technik capability covered by Lufthansa 30%
Slide 19: Value chain: modular service offer
Engine Services Value chain | Modular service offer to address customer-specific needs Overview of value chain MES Mobile Engine Services LHT performs local small-scale on- and near-wing repair services # Cycles Incident # Cycles Incident Customer Overhaul Customer ~25% OVH Customer (airline/OEM) se
Slide 20: Overhaul network: legacy and NewGen engine types
Engine Services Overhaul network | LHT covers all relevant legacy and NewGen engine types Service provider Engine specialization Ownership LHT share Employees1) Location CFM, PW: LEAP, V2500 & Fully owned 100% >1,800 Hamburg CFM-56 engines GE and PW engines for regional Fully owned 100% >600 Alzey a
Slide 21: LHT ideally positioned to win NewGen engine transition
Engine Services Summary | LHT ideally positioned to win the NewGen engine transition Broad capabilities High reliability, Strong OEM Future-proof setup Local presence in and know-how quality & flexibility relationships for new technologies all regions 1 2 3 4 5 Ability to repair more Superior engine
Slide 22: ACS: Aircraft Components Services
ACS: Aircraft Components Services lufthansagroup.com
Slide 23: ACS: Components market leader
Aircraft Components Services ACS | Components market leader with unrivaled capabilities & efficiency Key Facts Global Footprint Copenhagen Helsinki >4,500 >4,700 employees In 40 aircraft under contract Kaltenkirchen locations London Montreal Hamburg Toronto Zürich Frankfurt Seoul Tulsa Tokyo Sofia S
Slide 24: Market coverage: >90% of A/C covered by LHT pool
Aircraft Components Services Market coverage | >90% of all narrow- & wide-body A/C covered by LHT pool Lufthansa Technik component coverage in 2030 Narrow-body Regional jet Wide-body ~5,000 ~7,000 aircraft ~22,000 aircraft aircraft covered by Lufthansa 41% Technik capability covered by Lufthansa 91%
Slide 25: Service models: Open Loop vs Closed Loop
Aircraft Components Services Service models | Open Loop is "All-inclusive", Closed Loop is customized Open Loop Closed Loop "All inclusive" maintenance package MRO offer with support ranging Scope covering repairs, availability guarantees, from single events to exclusive or 24/7 pool access and logi
Slide 26: Parts pool: highest service levels through scale and AI
Aircraft Components Services Parts pool | Highest service levels and efficiency realized through scale and AI Highest A/C availability for customers Unique coverage A320 Stock per A/C type (Apr-22) Unmatched setup enabling service the world's largest fleets ▪ 3.5x larger than next biggest competitor
Slide 27: LHT best-in-class in coverage and quality
Aircraft Components Services Summary | LHT is best-in-class in terms of coverage and level of quality Extensive parts Fast and reliable Local parts Cost competitive portfolio service delivery availability offering 1 2 3 4 All important A/C type- Low turnaround times and Dense network of warehouses,
Slide 28: AMS: Aircraft Maintenance Services
AMS: Aircraft Maintenance Services lufthansagroup.com
Slide 29: AMS: Leading base maintenance MRO
Aircraft Maintenance Services AMS | Leading base maintenance MRO with >50k events per year Key Facts Global Footprint No. 1 Aircraft Maintenance >3,800 base maintenance GERMANY & Admin employees Lufthansa Technik provider in EMEA BUDAPEST Lufthansa Technik Lufthansa Technik MILAN SOFIA Lufthansa Tec
Slide 30: Setup: specialized offer and streamlined production network
Aircraft Maintenance Services Setup | Specialized offer and streamlined production network Locations Bays FTE1 Partners Area of specialty Bulgarian Airways Narrowbody focus - Center of Bulgaria 8 NB >1,100 Group Excellence for 737 Narrowbody focus - Center of Hungary 5 NB ~300 Fully LHG-owned Excell
Slide 31: High service level at low cost in commoditized market
Aircraft Maintenance Services Summary | LHT offers high service level at low cost in commoditized market Best-cost maintenance Close proximity to Comprehensive Next level efficiency by location setup customer operations service offer digitize the core 1 2 3 4 Best-in-class service level Production f
Slide 32: OES: Original Equipment and Special Aircraft Services
OES: Original Equipment and Special Aircraft Services lufthansagroup.com
Slide 33: OES: Engineering & production powerhouse
Original Equipment and Special Aircraft Services OES | Engineering & production powerhouse for VIP, commercial, and business aviation Key Facts Global Footprint >140 No. 1 cabin completions for VIP and market leader for VIP and Head of State customer business jet cabin management systems Hamburg str
Slide 34: Service portfolio: broad range of services
Original Equipment and Special Aircraft Services Service portfolio | Broad range of services for a large variety of customer types VIP & Special Original Equipment Special Engineering Defense Mission Innovation Services VIP customization NICE Cabin modification P8 ▪ Completion, maintenance and ▪ Dev
Slide 35: Deep capabilities enable growth in high-margin markets
Original Equipment and Special Aircraft Services Summary | Deep capabilities enable LHT to grow in high-margin markets Specialized competences Solid foundation to enter Strong industry reputation for as key differentiator new attractive markets engineering services 1 2 3 Ability to develop long-last
Slide 36: DGF: Digital Fleet Services
DGF: Digital Fleet Services lufthansagroup.com
Slide 37: DGF: No. 1 industry leader for digital solutions
Digital Fleet Services DGF | LHT is the No. 1 industry leader for digital solutions in tech ops Key Facts Global Footprint Solutions in Portfolio >800 No. 1 employees in the Digital industry leader for innovative TechOps solutions systems digital solutions1 3 >200 unique TechOps solutions offered al
Slide 38: Digital TechOps Ecosystem with industry leading position
Digital Fleet Services Digital solutions | Lufthansa Technik’s Digital Tech Ops Ecosystem with industry leading position and unique market offer TechOps Ecosystem suite comprises …each of which leverages unique strengths and market-leading solutions… offers an unmatched combination Management & exec
Slide 39: Digital Tech Ops Ecosystem combining digital and engineering expertise
Digital Fleet Services Digital Solutions | Digital Tech Ops Ecosystem is combining digital and engineering expertise to transform how work gets done in Tech Ops A/C & parts Ownership/ OPS MRO End-of-Life production asset mgmt. ASSET RELIABILITY TROUBLE- MATERIAL Mechanic MANAGER MANAGER SHOOTER PLAN
Slide 40: Digital solutions complement core MRO offer
Digital Fleet Services Summary | LHT's digital solutions perfectly complement core MRO offer Market Unmatched Unique data Combination of Strengthening leaders capabilities access know-how LHT 1 2 3 4 5 Each solution leading in Only player offering AI- Market share and value Combining digital and Cus
Slide 41: LTLS: Lufthansa Technik Logistics Services
LTLS: Lufthansa Technik Logistics Services lufthansagroup.com
Slide 42: Logistics Services: end-to-end capabilities
Logistics Services | End-to-end capabilities to ensure high service levels Global logistics network In-house capabilities LTLS is transforming the logistics process into an end-to-end controlled supply chain for all LHT segments Seattle Toronto Tulsa Montreal Transportation New York Los Angeles Dall
Slide 43: Each segment with clear value proposition
Key takeaways | Each Lufthansa Technik segment with clear value proposition ENG: NewGen ACS: Unique AMS: Cost- OES: Tailored DGF: Broadest leader business model efficient offer solutions ecosystem Licenses and Pioneer and No. 1 in Streamlined main- Highly customized Most comprehensive capacities in
Slide 44: Our people
Our people lufthansagroup.com
Slide 45: Highly skilled and loyal employee base
People | Highly skilled and loyal employee base is our foundation for success Employee distribution Entry Years of employment by type programs with Lufthansa Technik Post-Graduate Apprentices & Trainees Trainees Dual Study >30 <1 Leadership 7% Programs 27 18% 14% Engineering 9% Production 88 37% 26-
Slide 46: Employer value proposition: strong people strategy
Employer value proposition | LHT has strong people strategy in place People strategy secures value proposition ▪ Innovative attraction channels ▪ 20+ attractive entry programs Attract ▪ Task forces for specific target groups (IT & production) ▪ In-house dedicated training company (Lufthansa Technica
Slide 47: Our purpose video
Our purpose video Capital Markets Day 10.12.2024 Page 46
Slide 48: Break: Lunch and Engine Shop Visits
Break Lunch and Engine Shop Visits lufthansagroup.com
Slide 49: Strategy & Ambition 2030
Strategy & Ambition 2030 Sören Stark CEO Lufthansa Technik lufthansagroup.com
Slide 50: How to win in MRO – strategic imperatives
How to win in MRO – 5 strategic imperatives Direct & local customer access Relevance through global scale Differentiated MRO offer – digitally enabled Competitive costs, labor, & operational excellence Access to price-competitive material and restricted OEM IP Capital Markets Day 10.12.2024 Page 49
Slide 51: How to win in MRO – strategic imperatives
How to win in MRO – 5 strategic imperatives Direct & local customer access Relevance through global scale Differentiated MRO offer – digitally enabled Competitive costs, labor, & operational excellence Access to price-competitive material and restricted OEM IP Capital Markets Day 10.12.2024 Page 50
Slide 52: OEM relationship: strong ties to OEMs
OEM relationship | Strong ties to OEMs crucial as they take on multiple roles How we relate to OEMs Suppliers Customers OEM delivering MRO OEM sub-contracting MRO services to services and parts to Lufthansa Technik Lufthansa Technik Example: new engine OEM parts sourcing Example: engine shop inducti
Slide 53: Part sourcing: decreased dependency on OEMs
Part sourcing | Decreased dependency on OEMs through alternative solutions There are four options to recreate the airworthy status of the aircraft: Lufthansa Technik alternative materials and capabilities Lufthansa Technik OEM parts & repair proprietary repair Used Serviceable Parts from in-house pr
Slide 54: Capabilities: unrivalled access to NewGen IP
Capabilities | Unrivalled access to NewGen IP unlocks growth potential Legacy technology NewGen technology Repair capabilities and usage of alternative parts Fleet Size, A/C IP network established Increase efficiency and reduce costs (% of total fleet)1 A320 A330/ 24000 A320 737 Aircraft types ceo 7
Slide 55: Ambition 2030: clear targets
AMBITION 2030 | Clear targets in place to drive sustainable success LEADING GLOBAL MRO > €10bn EUR revenue > 50% 2030 INDUSTRY TRANSFORMATION THROUGH DIGITAL Cash conversion > 10% ESTABLISHED FOOTPRINTS IN NEW PRODUCTS, MARKETS PRODUCTS BUSINESS & BUSINESS MODELS & MODELS EBIT margin Environmental a
Slide 56: Global MRO: key strategic initiatives
Global MRO Global MRO | Key strategic initiatives in execution to strengthen segments LEADIN and regions G AMERICAS EMEA APAC Focus on GROWTH INCREASE market share Retain LEADERSHIP POCKETS Engine Services • Ramp up production and efficiency of LEAP engine business and expand MES globally Aircraft C
Slide 57: Key projects: strategic investments to enable growth
Global MRO Key projects | Strategic investments to enable growth in core MRO segments Strategic growth Expand mobile engine Ramp up repair Become an established Grow global widebody initiative service offer production business player in Closed Loop business Project North America Santa Maria da Feira
Slide 58: Digital: forefront of transforming the MRO industry
Digital Digital | Lufthansa Technik at the forefront of transforming the MRO industry Digitize the core: Stream- lining ops and step change Digitally-enabled MRO products in efficiency strengthen competitiveness Digital TechOps Ecosystem: Newest LHT product line Digital creating value in our airline
Slide 59: New products, markets and business models
New products, markets and business models New | LHT leverages existing capabilities to enter new high-margin markets beyond core MRO Expand along commercial Cabin mgmt. system Digital TechOps Ecosystem aviation value chain Focus on high-margin adjacencies A/C & parts Ownership/ Leverage existing OPS
Slide 60: ESG strategy: clear targets & dedicated initiatives
Environmental and social responsibility ESG strategy | Clear targets & dedicated initiatives set for each dimension Becoming CO2 neutral by '451) Empowering a diverse workforce Upholding responsible operations Environmental Cut 50% CO2 emissions by '30: Scope 1+2 Inclusivity: 20% women in leadership
Slide 61: Key takeaways: clear strategic agenda for 2030
Key takeaways | Lufthansa Technik has a clear strategic agenda for 2030 Leading global Digital New products and Environmental and MRO transformation businesses social responsibility Strong position across all Fully integrated digital Entries in new markets Decarbonization embedded regions and segmen
Slide 62: Financials
Financials Dr. William Willms CFO Lufthansa Technik lufthansagroup.com
Slide 63: Track record: history of topline growth and profit
Track record | A history of topline growth and profit contribution Development of key financials (net revenue in €bn, CAGR %) 8.2% 8.0% 8.0% 6.7% 6.3% 7.9% 9.7% 8.8% 8.9% 8.0% 7.7% 7.2% 7.1% n/m 5.3% 9.2% 9.6% x% Adj. EBIT margin >7.0 Long-term track record of growth 6.9 6.5 5.7% 5.9 5.6 Effective m
Slide 64: Ambition 2030: clear financial targets
AMBITION 2030 | Clear financial targets in place to drive future value creation Superior topline growth Sustainable high margins Value-accretive capital Clear path to leading with high visibility through the cycle allocation cash conversion > €10bn > 10% ~ 15% > 50% > 7% CAGR > €1bn > €0.5bn '23-'30
Slide 65: Six key messages summarizing financial agenda
Overview | Six key messages summarizing our financial agenda 1 2 3 Superior top line growth Sustainable high margins Clear path to leading with high visibility through the cycle cash conversion Value-accretive Synergetic segments with Further upside to capital allocation winning financial profiles b
Slide 66: Top line: 7%+ revenue CAGR
Superior top line development with high visibility 1 Top line | 7%+ revenue CAGR driven by market growth and NewGen Superior organic growth Revenue development '21–'30E (€bn) High visibility: 40-50% of revenue target with high visibility for '25-'28 already signed >7% Share of absolute top line grow
Slide 67: Bottom line: steady increase in profitability
Sustainable high margins through the cycle 2 Bottom line | Steady increase in profitability despite inflationary pressures Sustainable high margins Adj. EBIT development '21–'30E (€bn) through the cycle 5.3% 9.2% 9.6% >10% Share of absolute EBIT growth1 10-15% 5-10% >1.0 10-15% > 10% 25-35% 0.6 0.5
Slide 68: Cash: levers for leading cash conversion by 2030
Clear path to leading cash conversion 3 Cash | Various levers launched for leading cash conversion by 2030 Non-exhaustive Clear path to leading Cash conversion '23-'30E (%) “cash mindset” embedded throughout LHT organization cash conversion +>20%p Selected cash flow measures >50% Turnaround time opt
Slide 69: Capital allocation: strategic investments contributing to ROCE
Value-accretive capital allocation 4 Capital allocation | Strategic investments contributing to ROCE increase Value-accretive capital CapEx projects1 (illustrative) allocation Footprint optimization Footprint expansion Components / EPAR shop Base Maintenance in Santa Maria da Feira, Portugal Southea
Slide 70: Deep Dive: Digital transformation with Digitize the Core
Value-accretive capital allocation 4 Deep Dive | Digital transformation with Digitize the Core Asset & >300 Material Management ~300 Planning & mEUR initiatives started, Engineering total project thereof >50% Commercials, Data Mgmt. & expenses until '28 completed Customer Analysis, Interfaces Fulfil
Slide 71: Segment deep dives: distinct strategic role
Synergetic segments with winning financial profiles 5 Segment deep dives | Each segment with distinct strategic role ENG ACS AMS OES DGF2) Powering Strengthening Delivering steady Creating new Transforming our growth our bottom line cash flows opportunities our business % of rev. '23 & '30E1) 1) Exc
Slide 72: Deep dive ENG: powering our growth
Synergetic segments with winning financial profiles 5 Deep dive ENG | Powering our growth through strong top and bottom line POWERING OUR GROWTH Financial profile Key drivers of ENG development Revenue Revenue growth, EBIT margin '21-'30E (€bn, %) visibility '25-'28 High share of material costs (~75
Slide 73: Deep dive ACS: superior profitability
Synergetic segments with winning financial profiles 5 Deep dive ACS | Driving shareholder value through superior profitability STRENGTHENING OUR BOTTOM LINE Financial profile Key drivers of ACS development Revenue Revenue growth, EBIT margin '21-'30E (€bn, %) visibility '25-'28 Open Loop: Insurance
Slide 74: Deep dive AMS, OES & DGF
Synergetic segments with winning financial profiles 5 Deep dive AMS, OES & DGF | Distinct accretive portfolio contribution Financial AMS OES DGF1) development Adj. EBIT (21%) (1%) 4% >9% 13% 10% 4% >10% n/m n/m (14%) >18% margin ~2-3% ~4-5% 0.6 >0.7 >0.7 ~13-15% 0.5 0.6 0.5 0.6 0.5 Net Revenue >0.3
Slide 75: M&A: focused strategy with clear guardrails
Further upside to be unlocked via M&A 6 M&A | Focused strategy with clear guardrails for on-top value creation Selective upsides Segment growth priorities (illustrative) through ENG EPAR MES Asset Americas Mgmt. ACS EBIT margins >10% midterm Components LHT M&A objectives Profitable growth Geo & scal
Slide 76: Key takeaways: ideally positioned for future growth
Key takeaways | Lufthansa Technik ideally positioned for future growth Strong growth Superior margin Clear path to high Value-accretive Synergetic Mergers & trajectory development cash conversion capital allocation segments Acquisitions Outperforming the Setting stringent cost Rolling out compre- Ap
Slide 77: Lufthansa Technik plays key role within LHG
Summary | Lufthansa Technik plays key role within LHG Supporting overall financial stability and performance through strong & consistent EBIT contributions to the Group Acting as an integral part of Group strategy guaranteeing brand values such as reliability, safety & German engineering Ambition 20
Slide 78: Thank you for your attention
Thank you for your attention lufthansagroup.com
Slide 79: Q&A
Q&A Till Streichert, Sören Stark, Harald Gloy, William Willms lufthansagroup.com
Slide 80: Glossary
Glossary Abbreviation Explanation Abbreviation Explanation A/C Aircraft DAT Disassembly, Assembly and Testing ACS Aircraft Component Services DGF Digital Fleet Services AES Aircraft Engineering Services EASA European Union Aviation Safety Agency AFI KLM M&E Air France Industries KLM Engineering And
Slide 81: Glossary (cont'd)
Glossary (cont’d) Abbreviation Explanation Abbreviation Explanation LLP Life-limited Parts PW Pratt & Whitney LRU Line-replaceable-unit ROCE Return On Capital Employed LTLS Lufthansa Technik Logistik Services RR Rolls-Royce LHT Lufthansa Technik AG STC Supplemental Type Certificate Lufthansa Technik
Slide 82: Disclaimer
Disclaimer IMPORTANT: The following applies to this document and the oral presentation of the information in this document by Deutsche Lufthansa Aktiengesellschaft (the “Company”, and together with its consolidated subsidiaries, the “Group”) or any person on behalf of the Company, any question-and-a
Slide 83: Disclaimer
Disclaimer This Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of the Company, its affiliates or an inducement to enter into investment activity in the Unite