CHESTER REPORT TO THE BOARD 2024 Presented By: Celeste Wellsbury Derek Major Op sihota

MISSION STATEMENT Chester will offer products with a mix of reliability and technology that will capture our target market. Our brand will always offer value. Our stakeholders are bondholders, stockholders, customers, and management.

STRATEGY Gain a competitive advantage in margin by keeping R&D, production, and material costs low. Invest in automation Avoid running second shifts until demand warrants

Business Model Canvas Chester Company January 1, 2017 Marketing R&D Key Partners Key Activities Value Proposition Customer Relationship Customer Segments Marketing R&D Bondholders Price Inside sales teams Niche Cost Leader Production Low Cost Expansive distribution channel Other Manufacturers Stockholders Market to Distributors Variety of old and new products Key Resources Channels Low End Requirements Part Suppliers Manufacturing Facility Outside Sales Cost Reduction Inside Sales Traditional Requirements Government Automated Systems Distributors Cost Structure Revenue Streams Fixed Costs (Salaries, Rent, Utilities Recruitment & Training Promotion Direct Sales Wholesale Research & Development Sales

Reacting to customer feedback Quality build products with TQM Lower priced products Current and modern Better trained staff Low end products Cutting edge technology through R&D Reliable & Quality Product New products Traditional Products TQM Increasing costs Parts for existing products Mediocre Product Selection New Production Introductions Too many old Products Manufacturing Automation

PERFORMANCE METRICS Average Market Share: 40% Average Return on Equity: 25% Ending Stock Price: 35%

CHESTER’S PLAN

RESEARCH AND DEVELOPMENT Focus on the “low End” and “traditional” segments “Traditional” products will be permitted to age into the “Low End” market. Eliminate existing “High End” and “Performance” products Modify higher performing and smaller sized products to compete in the “traditional” market. Introduce new products to capture market share

MARKETING Keep pace with awareness and accessibility of our competitors products. Revisit sales and promotion budgets and adjust them as needed to maintain a cost leadership position.

PRODUCTION TACTICS Invest in automation to lower production costs. Postpone automation investments until products fit target market Avoid investing in capacity increases with the goal that automation will lower production costs in the long-term.

FINANCE Long-term Bond issues will be the preferred financing method. Stock issues will provide a secondary source of financing, but will be avoided unless absolutely necessary. Asset to equity ratio target range will be 2.0 to 3.0.

CHESTER ANNUAL RESULT 2017-2024 Speaker: Celeste?

YEAR ONE FISCAL RESULTS 2017

YEAR TWO FISCAL RESULTS 2018

YEAR THREE FISCAL RESULTS 2019

YEAR FOUR FISCAL RESULTS 2020

YEAR FIVE FISCAL RESULTS 2021

YEAR SIX FISCAL RESULTS 2022

YEAR SEVEN FISCAL RESULTS 2023

YEAR EIGHT FISCAL RESULTS 2024

CHESTER SUCCESSFULLY FULFILLED COMMITMENT TO SHAREHOLDER AND BONDHOLDERS BY;

CHESTER FUTURE PROFITS Metrics Round 9 Round 10 Round 11 Round 12 Round 13 Total Debts $ 260,913.00 $ 178,384.00 $ 145,990.03 $ 98,107.83 -$ 3,709.38 Profit minus interest $ 82,529.00 $ 32,393.97 $ 47,882.20 $ 101,817.20 $ 98,533.92 Balance After $ 178,384.00 $ 98,107.83 -$ 3,709.38 -$ 102,243.30