Corporate Avengers Final Presentation - November 8th 2016

Sustainability at Greenlight

www.pwc.com

Project Proposal

Team Members:

● Ryan Downer

● Christopher Han

● Kristin Hogue

● Lucy Szeto

● Lawrence Kotovets

(Santa Cruz, California; , 2015)

(Union Beach, NJ;, 2015)

(Prince Edward Island, Canada;, 2015)

Four Strategic Solutions

Short Run Solutions● Recycle tires immediately through outsourcing● Create brand loyalty program

Long Run Solutions● Develop an internal tire recycling capability● Establish Greenlight Foundation

Short Term Solutions

● Use our distribution network to collect used tires● Partner with existing recycling companiesImpact● Create immediate new revenue stream (50%

recycling rate: 555K ~ 1.1M)● Immediate recycling market entry and cash flow● Strengthen public image in response to issues● Offset internal R&D costs for long term internal

recycling solution

Recycle Immediately Through Outsourcing

Create Brand Loyalty Program

● Reward and incentivize customers● Point-to-Credit System● Track tire serial numbers

Impact● Boost volume of purchases● Develop better customer relationships● Raise brand loyalty and customer lifetime value● Prevention of future environmental crises

Long Term Solutions

Develop Internal Recycling Capability● Advising against acquiring Rubber Up, Inc.● Develop internal recycling solution in 1-2 years● Create new revenue streams from a variety of

productsImpact● Attract new customers via new products● Creates new marketing channels and distribution

relationships● Aligns with company values, e.g. “Built by

Greenlight, for Greenlight”

Internal Recycling Solution

● Greenlight’s est. of internal recycling development is approx. 1.85M-2.25M

● Internal recycling costs offset by short run recycling solution

● In line with Greenlights values

Greenlight Internal Recycling vs. Acquisition

Rubber Up, Inc

● Based on the financials provided, we have valued Rubber Up, Inc. at >$3.13M

● Valuation Methods: WACC & Capitalization of OCF

Greenlight Foundation

● Establish non-profit organization● Funded by percentage of revenue of recycled

products

Impact● Purpose is restoration of the Louisiana

Wetlands● Enforce company values and practices

Greenlight Foundation● Benefits of Corporate Foundation

○ Philanthropy increases name recognition and company image

○ Tax incentives○ Creates new strategic relationships○ Involves local community

● Importance of Louisiana Wetlands○ Flood protection through erosion control○ Supports wildlife and commercial fisheries○ Carbon sequestration○ Watershed for 49% of U.S. tributaries

Louisiana Wetlands Tributary Map

Minimizes risks

Short and long run solutions

Restores Greenlight’s reputation

Strengthens core

company values

Why is This the Best Solution?

Summary

● Recap of Presentation○ Solutions○ Impact

● How it adheres to Values & Goals○ Greenlight’s “Why”○ Re-alignment with Business practices

● Why you should pursue our recommendations

Questions?

Thank you for choosing PricewaterhouseCoopers!