2016-2017 pricewaterhousecoopers case competition

PricewaterhouseCoopers:AcuMentality

October 14th , 2016

PwC

Our Team

Tian-Shi (Fudi) Xu

Cassie Zhang

Jessie Gu

David Perez

Shandara Smith

PwC

Introduction

Review

Research

Results

Recover

Respond

Our Plan

Results!

Review

PwC

Challenges

Tires & TheEnvironment

Branding & Reputation

Financial

Greenlight’s tires were discovered in the Mississippi River, harming the environment and polluting the ecosystem.

The public image of Greenlight has been tarnished as a result of this incident.

The fines and penalties, along with the financial statements, are a severe challenge for Greenlight.

Review

Research

Results

Recover

Respond

Research

PwC’s Global Crisis Center

Financial

Humanitarian

Technology/IP

Reputational

Legal

Operational

Human Capital

PwC

Challenge: Tires & Environment

The products include soles of shoes, belts, crumb rubber, welcome mats, railroad ties, anti-fatique mats, portable speed bumps. Products

Rubberized asphalt highways ride quieter, last longer, and use significantly less paving material than traditional asphalt. Asphalt

Resistant to wind, water, and sunlight. Reduces bug and rodent infestation. Does not decompose or compress. Will not fade for up to 12 years.

Rubber Mulch

Tire-derived Fuel (TDF), Viable Alternative to Fossil Fuels, Pyrolysis.Fuel

Review

Research

Results

Recover

Respond

PwC

Challenge: Tires & Environment

Rubber Recycling Companies

Review

Research

Results

Recover

Respond

RubberUp, Inc.

Challenge: Brand & Reputation

Review

Research

Results

Recover

Respond

Challenge: Brand & Reputation

Review

Research

Results

Recover

Respond

PwC

Challenge: Financials

Assets = Liability + Owners Equity

Debt to Equity ration is

4:3

Review

Research

Results

Recover

Respond

Huge Accounting Mistake

Greenlight is overstated by

over $5.7 million.

Equity in Greenlight is overvalued by

83%

Section 1

Review

Respond

Challenge: Tires & Environment

Declining RubberUp Inc.

$1 Million

Profit

$1.5 Million

Total Assets

2.5Average Industry

Ratio

$6.25 Million Proposing Price excl. Goodwill

Review

Research

Results

Recover

Respond

Challenge: Tires & Environment

Liberty Tire Recycling

1.5 B lbs of Rubber

Reclaimed

1.5 B lbs of Rubber

Reclaimed

150 Remediated Dump Sites

150 Remediated Dump Sites

140 m Tires

Recycled Yearly

140 m Tires

Recycled Yearly60,00

0Locations

60,000Locatio

ns1100 Employees

1100 Employees

2002 Founded

2002 Founded

#1 in North America

#1 in North America

ExperienceExperience

ExpertiseExpertise

Challenge: Tires & Environment

20% Pulp &

Paper Mills

8% Dedicated

Tire-to-Energy

Facilities

41% Cement Industry18%

Electric Utilities

13% Industrial/ Institutional

Boilers

Of the 130 million scrap tires used as fuel per year:

Pyrolysis

Review

Research

Results

Recover

Respond

PwC

Challenge: Brand & Reputation

We’re no stranger to Press Releases here at PwC…

Public Statement

Admit Fault

Reiterate Values & Mission

Explain the Plan

Press Conference

Review

Research

Results

Recover

Respond

PwC

Challenge: Financial

Review

Research

Results

Recover

Respond

PricewaterhouseCoopers’s

Audit Services

Financial Statement

Audit

Corporate ReportingOur

Services Include: IFRS

Reporting

Regulatory compliance

Capital Markets

Accounting Advisory

Internal Audit Etc.

Why PwC?

One of the Big 4

Provided services to 422 Fortune Global 500

Companies223,000

Employees Worldwide

743 Locations

Initiatives for Diversity & Inclusion

Gross Revenues were $35.9B in

2016Etc.

Section 1Recover

PwC

Developing Credibility through Partnership

Review

Research

Results

Recover

Respond

PwC

Donations to CharityI

nternalN

ationalL

ocal

Review

Research

Results

Recover

Respond

PwC

Driving Revenue through Sales & Promotions

4Tire 4 Tire: Exchange & Recycle Old Tires for Discounts off New Ones.

Tire & Tickets: With the purchase of tires, customers receive discounted or free tickets to support local businesses near the Mississippi River

Review

Research

Results

Recover

Respond

Section 1Results

PwC

Results: The OverviewWhy Our Solutions Work

Environmental / TiresBrand &

Reputation Financials

Partnership with Liberty Tire Recycle

Holding a Press Conference

Gaining Credibility through Partnership

Donating to Charities

Creating Sales & Promotions

Review

Research

Results

Recover

Respond

Utilizing PwC

PwC

Results: The OverviewHow Our Solutions Work

Sta

ge

of

Pro

po

sal

Respond Immediately(within 1 year)

Long-term Recover(2-5 Years)

Release a Public

Statement

Partner with Liberty Tire

Recycling

Build Credibility

through Partnership

Create Sales & Promotions

Donate to Charities

FinancesFinances

Tire & Tire & EnvironmentalEnvironmental ResponsibilityResponsibility

Branding & Branding & ReputationReputation

Imp

rov

emen

t

Review

Research

Results

Recover

Respond

Results: The 5 Year Plan

Work with PwC to fix Finances

Thank you for choosing PricewaterhouseCoopers for your

consulting needs.

One Last Thing…