Second Round Case

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha,
Nebraska, United States. The company has averaged an annual growth in book value of 19.0% to its shareholders
since 1965 (compared to 9.7% from the S&P 500) with dividends included for the same period), while employing
large amounts of capital, and minimal debt. Berkshire now owns a diverse range of businesses including
confectionery, retail, railroad, home furnishings, encyclopedias, manufacturers of vacuum cleaners, jewelry sales,
newspaper publishing, manufacture and distribution of uniforms, and several regional electric and gas utilities.

Recently with a growing Middle to Affluent Class (MAC) population and a thriving economy propped on RMG, IT
export and Pharmaceuticals, Bangladesh has cemented its position as one of the fastest growing economies in
South East Asia. Berkshire Hathaway plans to invest significantly in Bangladesh over the next decade and has
preemptively hired IPDC Finance Ltd. to provide investment advisory support for a specific industry.

You are an investment consultant working for IPDC and will be spearheading the project team in carrying market
research, industry analysis and providing investment strategy support to the Berkshire global team.

Initially, Berkshire has asked your team to conduct analysis on the cement industry of Bangladesh and provide
investment advisory support. Your objective is to conduct a deep-dive industry evaluation and rate the
attractiveness of Bangladeshs cement industry from 1 to 10, (1 being the worst and 10 being the best) with
credible justifications.

As a group, you will be pitching to the Berkshire global team in 5 days and you must incorporate a few essential
parameters and chapters in your presentation. The structure of the presentation remains on you but the content
must include the following topics:

Market size:
o Current market size based on available data.
o Potential market size projection based on parameters you have singled out.
Drivers of Industry Growth
Demand vs. Supply Dynamics
Revenue and Cost Drivers
Opportunities vs. Challenges
Regulatory parameters:
o Ownership structure restrictions
o Tax policy
A financial analysis of the required number of companies in the industry assigned to you.
Other relevant details about the industry essential
Investment decision with justifications
Additional Recommendations:
You are time pressed so its best to divide the work between the team.
You wont be judged based on the amount of information you provide to the judges but on your analytical
ability of the data available to you.
You must show concrete justifications for your investment decision. You wont be marked based on your
decision but rather the holistic analysis you have done to come to your conclusion.
Best sources of industry information are local financial newspaper, government websites and published
market study reports.
Youre not allowed to directly copy any information from published reports but you can cite sources.
Credible sources should be presented to best justify your data and market study.
Annual reports of your assigned industry will be provided to you.

Team Deliverables:
One Excel file with market sizing calculations and financial analysis.
Presentation with investment decision.
Any other documents/materials deemed important by your team.

All calculations must be done in MS Excel Please use text boxes for any justifications and assumptions. Then
prepare a PowerPoint file that will contain all the required assumptions, calculations, research findings, key
analyses findings, final decisions and all the other important points that you feel important to be presented to the
global team. Based on your presentation, they will evaluate your ideas and justify your decision.
Judgment Criteria of the files Breakdown Total

Industry Analysis

Market Sizing 20

Drivers of Industry Growth

Demand vs. Supply Dynamics
Revenue and Cost Drivers 40
Opportunities vs. Challenges

Regulatory parameters:
o Ownership structure restrictions 10 70
o Tax policy

Financial analysis 10

Organization of PowerPoint files 10

Organization of Excel files 10

Total 100

Your excel files and the submitted PowerPoint file will carry the above 100 marks.
Presentation

You will have 15 minutes to present your analysis, research and findings to the judges. These presentations will
carry 100 marks in total. The mark distribution of these 100 marks in presentation is provided below.

Judgement criteria of presentation. Marks

Delivery of the presentation 30

Q & A session 20

Assumptions of the solution 10

Justifications of the solution 10

The quality of the research conveyed 10

Logical framework displayed 10

Member co-ordination during the presentation 5

Time Management 5

Total 100

*Your PowerPoint file will contain all the required assumptions, calculations, research findings, key analysis
findings, final decisions and all the other important points that you feel is important to be presented to the global
team. Based on your presentation, they will evaluate your ideas and justify your decision. You have to present both
the PowerPoint and the excel file.
* Presentation time- 15 minutes followed by 10 minutes for Q&A session.
* File marks will be converted to 50% and presentation will be converted to the rest 50%.
* Top two teams from each group will advance to the finale

Link to the financial statements of the important companies in the cement industry:
https://drive.google.com/open?id=0ByjRZ2LMZ1h7eS05MTU4OFpCZ1E
Submission guidelines:

1. The name of your university, team name or a participants name should not be mentioned anywhere in the files.
Any mention of the above items will lead to disqualification of the team.

2. Submission Deadline: Thursday, 10th August, 2017, 12.01 pm (afternoon)

3. All files (PowerPoint and Excel worksheets) must be submitted to the following email address:

nsufinanceclub@gmail.com

4. All files must be renamed in this manner: Team Name_Optimity 2017_Round 2 Submission_ cement industry.

Note:

An excel file to show all calculations

A PowerPoint file for presentation. Your presentation will be based on the PowerPoint file submitted on
the 10th of August. The presentation will take place at North South University on 11 th August. Team
leaders will be informed about the time later.
Any other documents/materials deemed important by your team.

5. The subject if the email must be in this manner: Team Name_Optimity 2017_Round 2 Submission.

6. The body of the email must contain the following details:

Team name

Team members names (all members) and University IDs

Team leaders contact number