Should Greenlight acquire RubberUp or build the same capabilities in house. This decision is being made alongside possible environmental fines. How do we maintain Greenlight's image and keep the company in the black.

1. Greenlight
Mind the GAAP
Angela Bruzzi, Brendan Kirsch, Mark Hammerschmidt, Natalia Hoyos, Shiv Moola
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2. 2
Agenda
Recommendation
Social Media
Short Term Plan
Long Term Plan
Financials
Risks and Mitigation
Why PwC?

3. 3
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
Our Recommendation
● Greenlight does not acquire RubberUp Inc.
● Greenlight sets up an “in house” operation to maintain the integrity of the
motto “Built at Greenlight for Greenlight,” that recycles rubber into
components that can be sold and used.
● Investment into Research and Development.
● Social Media campaign to combat poor public image with regard to
environmental sustainability.
Why
PwC?

4. 44
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
Social Media Campaign
Why
PwC?

5. Social Media Campaign-Tire Tracker
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
Why
PwC?

6. 6
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
Short Term
● Collect used tires from auto shops and tire graveyards to ensure no
more future waste and also to ensure future profit.
● Tires can be acquired for an average of $1.25 and sold for rubber mulch
and scrap steel for $2.40. Greenlight can start production on playground
equipment.
● While this is done our R&D team will be investigating our capabilities to
use rubber for playground, turf, and track production.
Why
PwC?

7. 7
Rubber Expansion
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
● Used tires will be sold for its components
up until we build capabilities to create:
○ Playgrounds
○ Turf fields
○ Tracks
● This new expansion will dig into
Greenlights cash assets but some of the
stress felt there will be relieved by the
immediate selling of the stock we are
gathering for profit
Why
PwC?

8. 888
Long Term
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
● Greenlight’s recycling division turning a profit
● Market Cap equal to that of RubberUp Inc.
Lower Cost of Production→Larger scale→Higher Profit Margins
● Operate on B2B and B2C level
● Market leader
● Wider range of products
● Convert recycling division into a Non-profit wing
● Acquire RubberUp Inc.?
Why
PwC?

9. 99
Financials
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
● Our team of experts have analyzed the impact of this into financial
statements and conclude that the effects of our plan would be
damaging in the short term.
● However, this situation could be the best thing that has ever happened
to Greenlight. With our plan we estimate Greenlight could start to make
profit in the recycling business.
● R&D expense restructuring
● Structured Settlement
Why
PwC?

10. Projections of Greenlight with the added costs and revenues of building in
house capabilities equal to that of RubberUp over the course of 3 years (2015-
2018)

11. 1111
Risk and Mitigation
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
● Acknowledge the environmental issue.
● Take appropriate steps minimize fines and restitution by incorporating our
suggested social media plan, to reiterate Greenlight’s sustainable
business practices to the public.
● Reassure investors
● Assure the public that this problem can not happen again.
● BP Oil?
Why
PwC?

12. Why PwC?
We are here to help!
● We support the integration of sustainability with business
● Identify your issues and goals
● Prioritise these issues from both a sustainability and commercial point of view
● Map the short and long-term ambitions for your sustainability vision
Recommendation Social Media Short Term Long Term Financials Risks
Risk and
Mitigation
Why
PwC?

13. Why not Rubber Up?
● Unstable
● Further investigation needed
● High purchase value-66.7%*
*Net income/total assets

14. The Data
● Max amount spent on “in house” operation- $2.25m-1m inventory=$1.25m
● Over three years=$583,000 per year, about 60% increase in R&D spending
from current spending in the first year
● Restructure R&D spending- cut previous R&D expense by about 105,000 and
use towards new operation. New per year R&D spending=$478,000.