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ChesterPresentation28-29.pptxCHESTER INC
3.31.2030
STOCKHOLDER MEETING
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AGENDA
INTRODUCTION
PERFORMANCE OVERVIEW
COMPETITIVE ANALYSIS
MANAGEMENT REVIEW
WHAT’S NEXT
CLOSING
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INTRODUCTION
MISSION
To become a leader in the industry increasing a presence In all segments by maximizing our reach in all product segments.
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FOCUS FOR 2028-2029
To provide high-quality products for an affordable price, bringing solid value to all customers.
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RESULTS FROM LAST YEAR
LET’S DIVE IN
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Profits took a huge leap forward in the past two years establishing ourselves as leader in the industry by continuing to invest in plant expansion while maintaining an advantage with our pricing.
Today we’ll review our wins and losses from last year and give you an overview of what you can expect for next year.
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NET PROFIT has now increased for 6 years!
Chester was able to raise profit by:
By becoming a leader in sales
Increasing our pricing while still maintaining a competitive edge
Reducing debt
Continuing to maximize TQM efficiencies
Going forward we intend to grow profits by:
Increasing our plant utilization by some of the largest levels yet
Keeping pricing ahead of our competition but still profitable.
Making large investments in our marketing program.
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Financial metric that measures how much profit a company makes for every dollar of sales
ROS increased from 8.9% in 2026 to 9.1% in 2027
This increase in ROS indicates that our company has become more efficient in converting sales into profits.
It's important to note that while an increasing ROS is generally a positive sign, it's not the only factor to consider when evaluating a company's financial health.
RETURN ON SALES
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Firstly, let me express my gratitude to Anthony for providing us with this valuable data. Now, let's talk about one of the most important financial metrics for any company - Return on Sales (ROS). In simple terms, ROS measures how much profit a company generates for every dollar of sales it makes. In this slide, we can see that our company's ROS has increased from 8.9% in 2026 to 9.1% in 2027, which is certainly a positive sign. It shows that we have become more efficient in turning our sales into profits. However, as with any financial metric, ROS should not be viewed in isolation. It's crucial to take other factors into account, such as revenue growth, operating expenses, and debt levels. In short, while an increasing ROS is certainly good news, we must keep an eye on other aspects of our financial performance to ensure overall health and sustainability.
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Chester currently dominates the market with a 22% market share, followed by Andrews at 19%, Baldwin at 16%, and Digby at 15%.
Erie and Ferris have a market share of 14%, making them the smallest players in the market.
The market is fragmented, with the top player only having a 22% market share, leaving room for competition and growth.
It is important to focus on maintaining and growing our market share, while keeping an eye on our competitors and identifying areas for growth.
This data provides valuable insights into the competitive landscape of our industry and can help inform our strategic decision-making.
MARKET SHARE
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This pie chart illustrates the market share of our industry and competitors. As we can see, our company, Chester, is currently leading with a market share of 22%. Andrews is the next biggest player with a market share of 19%, followed by Baldwin at 16%, and Digby at 15%. Erie and Ferris both have a market share of 14%, making them the smallest players in the market.
It's important to note that the market is quite fragmented, with the top player only having a 22% market share. This indicates that there is plenty of room for competition and growth in the industry. As a company, we should focus on maintaining and growing our market share, while also keeping an eye on our competitors and identifying areas where we can gain an advantage.
The data shows that we are the dominant player in the market, but it's essential to recognize that our competitors are not far behind. Therefore, we need to remain vigilant and continue to innovate to stay ahead of the competition. We can achieve this by developing new and innovative products, improving customer service, and investing in marketing and advertising.
This information provides us with valuable insights into the competitive landscape of our industry, and we can use it to inform our strategic decision-making going forward. By analyzing our competitors' strengths and weaknesses, we can identify areas where we can gain a competitive advantage and develop strategies to capitalize on these opportunities. Ultimately, our goal is to maintain and increase our market share, and with the right strategy, we can achieve this.
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MARKET SHARE BY SEGMENT/PRODUCT
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This slide shows the percentage of market share for different products in various segments. As of the end of 2026, Cake, Cedar, Cid, Coat, and Cure were the products listed, with Cid holding the largest share at 27.1%. Fast forward to the end of 2027, and we see that there has been some shift in the market share percentages for each product. However, Cid still holds the largest share at 40.6%. These numbers will be helpful to us as we assess our strengths and weaknesses in each market segment and strategize for the upcoming year.
Elizabeth, our Chief Production Officer, will now turn your attention towards our company’s Return on Assets and Equity.
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Decrease on return on assets
2028 ROA 16.9%
2029 ROA 27.6%
Contributing factors
Product
Capacity
RETURN ON ASSETS
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Decreased return on equity:
2028 ROE 24.5%
2027 ROE 36.3%
Net profit:
2026 $19,199,398
2027 $20,259,234
Contributing factors:
Reinvestment
Forecasting
RETURN ON EQUITY
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Market leader among competitors with an Asset Turnover Ratio of 1.28 in 2027, an 13% decrease from 1.41 in 2026.
Generated more revenue per dollar of assets in 2026 than in 2027, contributing to decrease profitability.
Management took specific steps to better utilize assets and increase efficiency, including increasing automation capabilities.
Continued focus on customer buying criteria and monitoring competitor strategies will enable us to sustain and further increase our asset turnover ratio.
Improving asset turnover will allow us to invest in new initiatives to drive further success and increase shareholder value.
ASSET TURNOVER RATIO
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As we all know, a decrease in the asset turnover ratio is a negative sign indicating the company has decrease its efficiency in generating revenue from our assets. This year, we were pleased to see that our Asset Turnover Ratio decreased by 13%, making us a market leader among our competitors.
This decreases as result of our management team’s not working hard to better utilize assets and decreasing efficiency within operations. Specific actions taken included reduced automation capabilities for several products. As a result, our labor and material costs were increased, product lines became less efficient, and our employees were not able to redirect their time and attention where it was needed. This solution resulted in less revenue per dollar of assets in 2027 than in 2026, contributing to decreased profitability.
Going forward, we will continue to focus on customer buying criteria and monitor our competitors' strategies to sustain and further increase our asset turnover ratio. Improving our asset turnover ratio will allow us to invest in new initiatives to drive further success and increase shareholder value.
Next, you will hear from our Chief Manufacturing Officer.
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STOCK PRICE
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Stock Price Forecast
In 2027 the stock prices for the five companies will increase apart from the Erie’s
Andrews will lead the market with stock rice of 110 from 80
Chester will follow at 100 from 80
Baldwin will raise from 35 to 55
Digby’s stock price will decrease from 55 to 50
Erie’s will slightly raise from 55 to 60
In the year 2027, the stock prices for four out of five companies are expected to increase. Andrews is anticipated to lead the market with a stock price of 110, up from 80. Chester is predicted to follow closely behind with a stock price of 100, also up from 80. Baldwin's stock price is expected to increase from 35 to 55.
However, Digby's stock price is expected to decrease from 55 to 50. The only company that is expected to have a slight increase in its stock price is Erie's, which is predicted to go up from 55 to 60.
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MARKET CAPITALIZATION
All five companies will realize an increase
Andrews 192-266
Chester 162 - 200
Baldwin 144-132
Erie 107 - 123
Ferris 107 - 123
Digby 78 - 124
All five companies will realize an increase
Andrews 8.4 -13.2
Chester 9.6 -10.1
Baldwin -0.1 – 6.9
Erie 5.3 – 4.5
Ferris 5.3 – 4.5
Digby 5.1 – 1.9
EARNINGS PER SHARE
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Earnings Per share
Three companies will experience an increase while two a decrease in earnings per share according to the following ranges: Andrews 8.4 -13.2 Chester 9.6 -10.1, Baldwin -0.1 – 6.9, Erie 5.3 – 4.5, Ferris 5.3 – 4.5 and decrease Digby 5.1 – 1.9
Market capitalization
All five companies are projected to experience an increase in their market capitalization. Andrews' market capitalization is expected to increase from 192 to 266, Chester's from 162 to 200, and Baldwin's from 144 to 132. Erie and Ferris are expected to see a more modest decrease, with market capitalizations rising from 107 to 123, while Digby's is expected to increase from 78 to 124.
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MEET THE TEAM
Chief Finacial Officer
Chief Marketing Officer
Chief Operating Officer
Chief Production Officer
WHAT’S NEXT
LAST YEAR GOAL STATUS
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Continue improving customer satisfaction
Add another new product
Focus resources on/update strategy for capacity additions
NEXT YEAR GOALS
Thank you, Elizabeth.
It's exciting to report that our company has achieved significant progress in several areas over the past year. We successfully added a new product to our performance market segment, resulting in a 100% achievement rate. This addition also helped us increase our sales by $16 million, reaching a total of $216 million.
While we have been making efforts to invest in work/life balance, there is no specific metric to report at this time. One of our top priorities has been improving customer satisfaction, and we are making progress in this area. Our current rating is at 85 out of 100, with a target to reach and/or exceed our goal by 2029.
To ensure that we can meet the increased demand for our products, we added 149 new employees to our team, surpassing our goal of 100 new hires. We also successfully improved our social media presence by increasing our followers, likes, and comments by 18%, beating our goal by 3%.
We are proud to report that we have stayed under budget with development costs, beating our budget by $5,000. Additionally, we exceeded our goal of increasing customer awareness by 2.5%, achieving a 10% increase.
Although we still face challenges, we recognize the need to add capacity for increased demand of our products, and we are focusing our resources to resolve this issue over the next two years.
Looking towards next year, we plan to further improve customer satisfaction and add another new product. We will also focus resources and strategize on capacity additions. Despite any challenges we face, we remain committed to achieving our goals and continuing to grow our company.
Thank you for your time and attention, Manoj will now bring the meeting to a close.
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SUMMARY
OUR BUSINESS IS GOOD
Profits are up from last year, increasing by $1.1M (or 5.7%)
Stock price grew by 31,25% and we had a 57.14% increase in EPS
WE’RE GETTING OUR WORK DONE
Leading in Market Share by 22%
Investing in plant and equipment to source demand
WE’RE DELIVERING FOR OUR SHAREHOLDERS
An increase in money flow enabled us to decrease borrowing of funds
Issued dividend for the first time in the company’s history!
OUR CUSTOMERS KEEP COMING BACK
We increased customer retention by 4%
Initiated new product launch
Lowered labor and material costs while meeting (or beating) customer expectations
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Chester has experienced positive growth and success in multiple areas. Profit has increased by $1.1M or 5.7%, stock price has grown by 31.25%, and EPS has increased by 57.14%.
The company is focused on getting work done and investing in the future, with a 22% lead in market share and investments in plant and equipment to source demand.
Shareholder satisfaction is a priority, with a decrease in borrowing and the issuing of a dividend for the first time in the company's history.
Customer retention is also a key focus, with a 4% increase in retention and initiatives such as new product launches and cost reduction strategies while maintaining customer satisfaction.
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THANK YOU
Please know we very much appreciate your time and attendance. We will all be here for 30 mins following the last speaker in case there are additional questions. Thank you again and enjoy your day!
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