1. 2016 PwC Case Competition
The future of Greenlight
--Sunshine Group
2 Nov 2016
Cynthia Morris
Qiaochu (Kelly) Geng
Yi (Zoe) Li
Yuxuan(Lily) Chi

2. Overview
Situation Environmental issues
Impacts Penalties; Reputation; Long-term sustainability
Goals Restoring the reputation; Sustainability
What are the
options & Cost-
Benefit Analysis
Impacts on
Financial
Statements & Tax
How can PwC
help
Q & A

3. What are the options?
Investing
internally –
building a
similar
capability “ in
house”
Option A
Purchasing
RubberUp as a
subsidiary
Option B
OR
Purchasing
RubberUp as a
subsidiary
Option B

4. Option B Revenue Multiple
Company RubberUp A B C D E F G
Revenue 7.0 4.7 3.2 0.8 5.4 3.1 2.7 3.5
Cash Flow 0.3 0.7 0.3 0.2 0.6 0.7 0.4 0.5
Inventory 0.5 0.3 0.25 0.1 1.3 0.1 0.2 0.3
# of
Employees 50.0 55.0 38.0 9.0 50.0 18.0 12.0 12.0
Ask Price 4.5 3.2 1.5 0.5 3.9 2.2 1.6 2.5
Ask Price/
Revenue 68% 47% 56% 72% 71% 60% 71%
Average
Multiples 64%
Revenue of RubberUp *Average multiple= 4.5 Million
All numbers in Millions; Comparable companies data sources: BizBuySell.com

5. Cost-Benefit Analysis
Option A Option B
Cost
• Time consuming:
1. Equipment
2. Operation
3. Labor
• Barrier to entry
• Acquisition cost: $4.45 M
• Labor transition
Benefit
• Start up, R&D cost:
$1.85-$2.25 M
• Choice of factory
location
• Create a reputation
• Quick action and immediate utility
• Easy and efficient management
• Increase core competition ability
• Expand market coverage
• Restore the reputation in a short
period

6. Impact on Financial Statements
Greenlight
Cash Flow Summary (in thousands)
2014 2015 Consolidated 2015
Starting: Cash & Equivalent $4151.4 $5,754.5 $5,754.5
Net Cash Provided by Op 2814.7 4,059.9 4,359.9
Net Cash Used in Investment (270.1) (297.8) (4,747.8)
Net Cash Used in Fin (941.5) (1,720.2) (1,720.2)
Change in Cash & Equivalent 1603.1 2,041.9 (2,108.1)
Ending: Cash & Equivalent $5754.5 $7,796.4 $3,646.40
Greenlight
Balance Sheet ( in thousands)
2014 2015 Consolidated 2015
Total Assets $15,293.0 $17,624.3 $18,624.3
Total Liabilities 11,506.9 11,553.7 12,553.7
Total Owner's Equity 3,786.1 6,070.6 6,070.6
Total Liabilities & Owners Equity $15,293.0 $17,624.3 $18,624.3

7. Impact on Financial Statements
Greenlight
Income Statement ( in thousands)
2014 2015 Consolidated 2015
Sales, net $26,798.7 $28,865.6 $35,865.6
Total Expenses 21,965.5 22,520.7 28,520.7
Operating Income 4,833.2 6,344.9 7,344.9
EBIT 4,799.4 6,312.7 7,312.7
Income Tax Expense 1,897.8 2,289.4 2,629.4
Net Income $ 2,901.6 $4,023.3 $4,683.3
Tax Implications: Minimal
• Federal: Greenlight will not suffer increase in tax rate
• Local: Companies will file as they always have
• RubberUp’s addition will not cause significant difficulty

8. How can PwC help?
Impairment
Tests
Tax
Valuations
Financial Analysis
& Derivatives
Valuation
Service

9. Consulting
Transform
Human
Capital
Operations
Risk
Management
Strategy
Consulting
Sustainable
Business
Solution
How can PwC help?

10. Thank you!
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