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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!