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

2. 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.

3. 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

4. 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

5. 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

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

7. CHESTER’S PLAN

8. 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

9. 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.

10. 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.

11. 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.

12. CHESTER ANNUAL RESULT 2017-2024
Speaker: Celeste?

13. YEAR ONE FISCAL RESULTS 2017

14. YEAR TWO FISCAL RESULTS 2018

15. YEAR THREE FISCAL RESULTS 2019

16. YEAR FOUR FISCAL RESULTS 2020

17. YEAR FIVE FISCAL RESULTS 2021

18. YEAR SIX FISCAL RESULTS 2022

19. YEAR SEVEN FISCAL RESULTS 2023

20. YEAR EIGHT FISCAL RESULTS 2024

21. CHESTER SUCCESSFULLY FULFILLED COMMITMENT TO SHAREHOLDER AND BONDHOLDERS BY;

22. CHESTER FUTURE PROFITS
Metrics
Round 9
Round 10
Round 11
Round 12
Round 13
Total Debts
$ ,913.00
$ ,384.00
$ ,990.03
$ ,107.83
-$ ,709.38
Profit minus interest
$ ,529.00
$ ,393.97
$ ,882.20
$ ,817.20
$ ,533.92
Balance After
$ ,384.00
$ ,107.83
-$ ,709.38
-$ ,243.30