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Presentation26-27.pptxCHESTER INC
3.31.2028
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 build on the foundation which we established from the past few years to increase a presence In all segments by continuing to keep R&D, Production, and material costs to a minimum.
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FOCUS FOR 2026-2027
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 continued trending upwards for both years in addition we expanded plant capacity and increase efficiencies in the company.
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 increased 4 years in a row!
Chester was able to raise profit by:
Increasing efficiencies with TQM
Continue to lead all competition in sales
Not taking out any loans
Introducing a new product
Going forward we intend to grow profits by:
Increasing our plant utilization
Ensuring our pricing is competitive
Continuing to increase efficiencies
Being agile with our inventory
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Kept prices within the desirable range from Customer Buying Criteria for each product
ROS grew by 18%
ROS increase indicates we have…
Improved our efficiency
Employed a better pricing strategy
Increased sales volume
Several benefits have arisen from this situation:
Increase in investor confidence
Higher likelihood of generating profit and providing a return on investment
RETURN ON SALES
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Anthony, thank you for a solid start to our meeting. Today, I’m excited to share some fantastic news about our company’s performance. Starting out the conversation with our Return on Sales (ROS) ration and then moving onto Market Share.
For 2024 was 1.3%. In 2025, this ratio made a significant leap to 7.2%, increasing close to 18%. The increase in ROS is a positive situation, indicating that we have improved our efficiency, employed a better pricing strategy, and increased sales volume.
These improvements have helped our company generate more profit per dollar of sales, resulting in improved profitability, better corporate financial health, and enhanced investor confidence.
As a result, Chester Inc. has experienced several benefits, including an increase in investor confidence and a higher likelihood of generating a profit and providing a return on investment.
We will continue to focus on improving our efficiency, pricing strategy, and sales volume to sustain and further increase our ROS in the future.
Our improved ROS positions us well for future growth and will enable us to invest in new initiatives to drive further success.
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Presence within all five market segments for sensors
All five products are competitively positioned with respect to customer criteria
Carefully planned research and development to stay ahead of the competition
Market leader among competitors
Lower priced, high-quality sensors doing well with our customer base
MARKET SHARE
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As the pie chart notates, Chester Inc is currently the leader among competitors with obtaining 22% market share. Our company products have a presence in all five market segments and are competitively positioned against the customer buying criteria. Our mission is to provide customers with high-quality products at an affordable price so we carefully plan research and development activities to stay ahead of the competition.
After reviewing market share levels across the industry, we will now review our company’s standing within the various segments. The graph shows our market share rate in 2024 as well as 2025. As we review the graph, you will notice that all five of our products had an increase in market share year over year.
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MARKET SHARE BY SEGMENT/PRODUCT
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The top half of this graph contains the market share by segment and product for the year 2024. The bottom half contains the market share by segment and product for the year 2025. Our Low-tech and High-tech sensor products both had the largest increase in market share across our five segments but all five experienced growth.
We will continue researching competitors’ strategies regarding their product movement as well as ensure we are meeting customer requirements. In addition, our company plans to invest further into promotion and sales departments to ensure our customers cannot only access our products but are very aware of them as well.
Let’s move from market share and pick up with our Chief Production Officer, Elizabeth, who will discuss Return on Assets and Return on Equity.
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Decrease on return on assets
2026 ROA 12.6%
2027 ROA 11.6%
Contributing factors
Product
Capacity
RETURN ON ASSETS
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Decreased return on equity:
2026 ROE 23.9%
2027 ROE 20.1%
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 18% increase from 0.98 in 2024.
Generated more revenue per dollar of assets in 2025 than in 2024, contributing to increased 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, an increase in the asset turnover ratio is a positive sign indicating the company has improved efficiency in generating revenue from our assets. This year, we were pleased to see that our Asset Turnover Ratio increased by 18%, making us a market leader among our competitors.
This increase is a result of our management team's hard work in better utilizing our assets and increasing efficiency within operations. Specific actions taken included increasing automation capabilities for several products. As a result, our labor and material costs were reduced, product lines became more efficient, and our employees were able to redirect their time and attention where it was needed. This solution generated more revenue per dollar of assets in 2025 than in 2024, contributing to increased 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, Manoj as he provides information on stock price and market capitalization topics. Take it away, Manoj.
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STOCK PRICE
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Stock Price Forecast
In 2025 the stock prices for the five companies will increase apart from the Erie’s
Andrews will lead the market with stock rice of 55 from 35
Chester will follow at 50 from 34
Baldwin will raise from 35 to 45
Digby’s stock price will increase from 22 to 35
Erie’s will slightly drop from 37 to 36
Our stock price forecast for 2025 shows that four out of five companies will experience significant increases. Andrews is projected to lead the market with a stock price of 55, up from 35, while Chester is expected to follow closely behind with a stock price of 50, up from 34. Baldwin will also experience an increase, rising from 35 to 45. Digby's stock price is expected to see a significant jump from 22 to 35. Unfortunately, Erie's stock price is the only one forecasted to slightly drop, decreasing from 37 to 36. Overall, the forecast is positive for most companies, indicating potential growth and success in the coming years.
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MARKET CAPITALIZATION
All five companies will realize an increase
Andrews 85-132
Chester 67-101
Baldwin 78- 98
Erie 75-76
Ferris 75-76
Digby 62-89
All five companies will realize an increase
Andrews 0.9-6.6
Chester 0.8-6.0
Baldwin 2.1-3.4
Erie 1.8-2.1
Ferris 1.8 – 2.1
Digby -1.3 – 3.5
EARNINGS PER SHARE
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Earnings Per share
All five companies will experience an increase in earnings per share according to the following ranges: Andrews from 0.9 to 6.6, Chester from 0.8 to 6.0, Baldwin from 2.1 to 3.4, Erie from 1.8 to 2.1, Ferris from 1.8 to 2.1, and Digby from -1.3 to 3.5.
Market capitalization
All five companies are projected to experience an increase in their market capitalization. Andrews' market capitalization is expected to increase from 85 to 132, Chester's from 67 to 101, and Baldwin's from 78 to 98. Erie and Ferris are expected to see a more modest increase, with market capitalizations rising from 75 to 76, while Digby's is expected to increase from 62 to 89.
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MEET THE TEAM
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Let’s take a moment and break from the numbers so our management team can officially introduce ourselves. I am Christine and am the Chief Marketing Officer here at Chester Inc. Anthony is our Chief Financial Officer, Elizabeth is our Research and Development Director, with Manoj as our Chief Production Officer. Please note that Anthony also covers the Human Resources and Total Quality Management groups but we all pitch in when needed.
The next slide discusses what our project plan is going forward into future years here at Chester Inc. and I will be touching on those items then Manoj will step back in and wrap up this meeting with a summary slide. We will all then be available for any questions.
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WHAT’S NEXT
LAST YEAR GOAL STATUS
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Add new product
Add new employees
NEXT YEAR GOALS
This slide reveals our business priorities for the next year. As listed above, we plan to increase customer satisfaction by 2%, maintain growth, add more capacity to our plant, add new products as Anthony mentioned earlier, and add new employees. On the other side of that list, we want to improve our social media presence, increase customer awareness/accessibility by 2.5%, as well as ensure development costs stay under budget. The employees will have the opportunity to benefit from the additional training that was budgeted for this year and we encourage them to invest in themselves. We will have a few company-wide activities where employees can let loose and play games (or relax and watch others play). From our experience, these are a few ways we as a management team can boost morale and relationships without exceeding budgeted spend.
Manoj will now wrap up the meeting with the Summary/conclusion slide. Manoj, the stage is yours.
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SUMMARY
OUR BUSINESS IS GOOD
Profits are up from last year, increasing by $11M (or 40%)
Stock price grew by 34% and we had a 13% increase in EPS
WE’RE GETTING OUR WORK DONE
Leading in Market Share by 20%
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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The business has been performing exceptionally well with profits increasing by $11 million, representing a 40% increase from last year. The stock price has also grown by 34%, and there was a 13% increase in earnings per share (EPS). The company has been leading in market share by 20% and has been investing in plant and equipment to cater to the increasing demand. The increase in cash flow enabled a decrease in borrowing of funds, and the company has issued a dividend for the first time in its history. With a 4% increase in customer retention, the company initiated a new product launch and has been able to lower labor and material costs while exceeding customer expectations.
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THANK YOU
Chester Inc.
WWW.CHESTER.COM
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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