week 7 DQ

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CHESTER INC 4.9.2030 STOCKHOLDER MEETING

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AGENDA INTRODUCTION PERFORMANCE OVERVIEW COMPETITIVE ANALYSIS QUESTIONS CLOSING 2

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INTRODUCTION

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MISSION To become a leader in the industry increasing a presence In all segments by maximizing our reach in all product segments. 4 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

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RESEARCH & DEVELOPMENT {5C22544A-7EE6-4342-B048-85BDC9FD1C3A} 2028 2029 Cake 26% 38% Cedar 21% 27% Cid 46% 48% Coat/Coats 33% 46% Cure 34% 33%

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Marketing budgets increased resulting in higher ROI in 2028 and 2029 compared to 2027. Marketing ROI for all products in 2029 was at least 28 times the amount spent. Customer awareness and accessibility improved steadily from 2027 to 2029, but the customer survey score remained low. Need to improve survey strategies to better customer insights. Revenue per marketing dollar was consistent, but campaign-generated revenue increased in 2028 and 2029. Cedar had the highest revenue per marketing dollar spent in 2027 and 2028, while Coats had the highest in 2029. MARKETING

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Plant Utilization is 200% utilization, this will not be able to produce additional product, and therefore might miss sales opportunities. Overall Equipment Effectiveness (OEE) is a measure of how efficiently your equipment is being used to produce goods. Inventory Turnover Ratio is a measure of how quickly your inventory is being sold and replaced. Production Lead Time is the time it takes to complete a production cycle, from the start of production to the finished product. Cost of Goods Sold (COGS) is the cost of producing the goods that were sold. Gross Margin is the difference between the revenue generated from sales and the cost of goods sold. 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 10

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Return on Sales Return on Assets Return on Equity Asset Turnover Ratio 2028 16.9% 2029 27.6% Product and Capacity 2028 24.5% 2029 36.3% Investments 2028 1.32 2029 1.41 Better utilize assets, increase efficiency. 2028 12.8% 2029 19.6 Efficiency in converting sales into profits . 11

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COMPETITIVE ANALYSIS

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MARKET SHARE 13 Chester has the highest market share among all companies (25%). Andrews is in second place (21%) followed by Baldwin at 17%. Digby, Erie, and Ferris have relatively lower market shares (12-13%). Chester is currently the dominant player in the industry; however, Andrews and Baldwin are closing the gap. Digby, Erie, and Ferris may need to take action to increase their market share in order to remain competitive. Chester plans to focus on maintaining and growing our market share while keeping an eye on our competitors and identifying area for growth.

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STOCK PRICE 14 Stock Price Forecast In 2029 the stock prices for the five companies will increase apart from Erie’s Chester will lead the market with a stock price of 250 from 140. Andrews will follow at 190 from 136 Baldwin will rise from 90 to 140. Digby’s stock price will decrease from 30 to 10. Ferris will decrease from 50 to 1.

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CLOSING

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R&D Overall growth Marketing Assist with sales growth Production Successes and Opportunity Human Resource Decreased employee turnover Total Quality Management Reduced Labor (14%) & Material (12%) Costs 16 SUMMARY

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THANK YOU Chester Inc. WWW.CHESTER.COM

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Thank you, Elizabeth. Good afternoon, shareholders. Today, we will be discussing the marketing performance of our company over the past few years. In 2028 and 2029, we saw significant growth in revenue, gross profit, and marketing ROI, all thanks to the increased marketing budgets. In fact, the marketing ROI for all products in 2029 was at least 28 times the amount spent, indicating a highly effective marketing strategy. While we saw steady improvements in customer awareness and accessibility between 2027 and 2029, the customer survey score remained low. To address this, we need to improve our survey strategies to better understand our customers and their needs. Interestingly, revenue per marketing dollar was consistent, but campaign-generated revenue increased in 2028 and 2029. Cedar had the highest revenue per marketing dollar spent in 2027 and 2028, while Coats had the highest in 2029. Overall, our marketing efforts have been successful in increasing revenue and gross profit, but we need to continue to improve our understanding of our customers to ensure sustained success. Manoj will now continue the discussion with an update on operations and production.

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In the Operations and Production department, we need to focus on several key performance indicators to ensure that we are meeting our production targets efficiently. The Production Output or Units Produced over the years 2028-2029 has been a steady increase in production output, which is a positive trend period of 2028-2029. The Plant Utilization rate is an important metric because it represents the percentage of time that our plant is being used to produce goods. If the plant is underutilized, we are paying for depreciation and interest on underused assets. On the other hand, if the plant is overused, we might miss sales opportunities. The plant Utilization rate has been consistently above 90% over the past two years. This is a positive sign because it indicates that our plant is being used efficiently to meet the demand for our products. However,we should be careful not to overuse our plant, as this can lead to maintenance issues and lower product quality. Therefore, it is important to maintain a balance between the plant utilization rate and the demand for our products.

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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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Thank you, Elizabeth. Good news, shareholders! In terms of market share, Chester is leading the pack with a significant 25%. Andrews and Baldwin come in at second and third place with 21% and 17%, respectively. While Digby, Erie, and Ferris have lower market shares ranging from 12-13%. It's important to note that Chester is currently the dominant player in the industry. However, Andrews and Baldwin are slowly catching up, and Digby, Erie, and Ferris may need to take action to increase their market share to stay competitive. Nevertheless, Chester plans to focus on maintaining and growing our market share, while keeping a watchful eye on our competitors and identifying opportunities for growth. Manoj will discuss stock prices then Elizabeth will close out this presentation. 13

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The projected stock prices for five companies in 2029 indicate a mixed performance. Erie's stock prices are expected to remain stagnant or decline, while Chester is forecasted to lead the market with a significant increase from 140 to 250. Andrews is projected to follow closely behind with a stock price of 190 from 136, while Baldwin is expected to experience a rise from 90 to 140. However, Digby's stock prices are predicted to decrease from 30 to 10, indicating a decline in the company's performance. Unfortunately, Ferris's stock prices are also predicted to decrease from 50 to 1. Overall, the forecast for the five companies' stock prices in 2029 suggests a mix of positive and negative trends, with Chester, Andrews, and Baldwin experiencing growth while Erie, Digby, and Ferris struggle. 14

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Please know we very much appreciate your time and attendance. Thank you again and enjoy your day! 17

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CHESTER INC Christine Baxter Manoj Khatri 12 2023-04-09T07:49:44Z

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430 1485 Microsoft Office PowerPoint On-screen Show (16:9) 156 17 17 0 12 false Fonts Used 6 Theme 3 Slide Titles 17 Arial Calibri Noto Sans Symbols Roboto Söhne Times New Roman Simple Light 1_Office Theme 1_Office Theme CHESTER INC AGENDA INTRODUCTION PowerPoint Presentation PERFORMANCE OVERVIEW PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation PowerPoint Presentation COMPETITIVE ANALYSIS PowerPoint Presentation PowerPoint Presentation CLOSING PowerPoint Presentation THANK YOU false false false 16.0000

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