wk6 pp
Thomas1122
ChesterPresentation28-29_revised.pptxCHESTER INC
4.7.2030
STOCKHOLDER MEETING
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AGENDA
INTRODUCTION
PERFORMANCE OVERVIEW
COMPETITIVE ANALYSIS
QUESTIONS
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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PERFORMANCE OVERVIEW
2028 2029
Traditional 26% 38%
Low 21% 27%
High 30% 26%
Performance 33% 34%
Size 34% 33%
RESEARCH & DEVELOPMENT
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Sales growth (year-over-year or quarterly)
Customer acquisition cost (CAC)
Types of promotions/sales pitch
Return on marketing investment (ROMI)
Brand awareness and customer satisfaction metrics
Market penetration in targeted segments
Make sure to highlight any significant achievements, positive trends, and areas of concern in each department. Comparisons to industry benchmarks or competitors can also provide valuable context for the shareholders.
MARKETING
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How have people been acting to our products over the years? Awareness and accessibility, customer surveys? Add more marketing content/discussion, share with stockholders, adding more flavor….one or multiple of the 5 P’s…..result of market share benefiting from marketing campaign….is stock price increasing or what is causing it not too?
Blending in more marketing for shareholders and board report (more history but not too much, stay more focused on today with brief history/background)
Production output or units produced
Plant utilization rate
Overall equipment effectiveness (OEE)
Inventory turnover ratio
Production lead time and cycle time
Cost of goods sold (COGS) and gross margin
Make sure to highlight any significant achievements, positive trends, and areas of concern in each department. Comparisons to industry benchmarks or competitors can also provide valuable context for the shareholders.
OPERATIONS & PRODUCTION
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Employee turnover rate continues to decrease
Productivity increased to 122%
Total Quality Management (TQM) initiative has continued to make an impact
Reduced Labor (14%) & Material (12%) Costs
Reduced Admin Costs by 60%
Reduced R&D Cycle Times by 40%
Increased Demand by 14.4%
HR & TQM
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Total Profit increased for both years
Profit Margin increased with profit for both years
Sales contributed to profit for the past two years
NET PROFIT, NET PROFIT MARGIN, & SALES
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.
Return on Sales
Return on Assets
Return on Equity
Asset Turnover Ratio
2028 ROA 16.9%
2029 ROA 27.6%
Contributing factors: Product and Capacity
2028 16.9%
2029 27.6%
Contributing factors:
2028 1.32
2029 1.41
Better utilize assets, increase efficiency
2028 12.8%
2029 19.6%
Increase shows more efficiency in converting sales into profits.
COMPETITIVE ANALYSIS
MARKET SHARE
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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.
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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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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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CLOSING
R&D
Overall growth
Marketing
Sale improvement
Production
Improve on production and capacity
Human Resource
Decreased employee turnover
Total Quality Management
Reduced Labor (14%) & Material (12%) Costs
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SUMMARY
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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. Thank you again and enjoy your day!
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