REPORT TO SHAREHOLDERS

TERYN JOHNSONKELLY LISZEWSKI

HSIN TARNG OLIVIA KARCH

Chester Co.

Table of Contents

Our Strategy SWOT

Contribution Margin Market Share Customer Awareness Cash Flow

DuPont ROA ROS ROE Leverage Ratio

Porters Five Forces Future Projections Return to Shareholders Closing

Our Strategy

Differentiator with Product Lifecycle Focus Segment Focus:

Traditional Low End High End

Specific Focus: Research and Development Marketing Investment

SWOT Analysis

•Contribution Margin•Research and Development•Marketing Approach

•Asset Liquidity •Sales Forecast

•Capacity Forecast•Cost Savings

•Production Constraints•Leverage Ratio•Company Profitability

Contribution Margin: Traditional

2015 2016 2017 2018 2019 2020 2021 2022

Traditional (Chester) 32% 29% 30% 38% 36% 35% 36% 36%

Traditional (Baldwin) 29% 30% 34% 38% 42% 37% 35% 31%

32%

29% 30%

38%36%

35%

36% 36%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Contribution Margin

Year

Contribution Margin: Low End

2015 2016 2017 2018 2019 2020 2021 2022

Low End (Chester) 29% 32% 25% 36% 31% 33% 29% 30%

Low End (Baldwin) 27% 27% 35% 43% 40% 35% 34% 29%

29%32%

25%

36%

31%

33%29%

30%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Contribution Margin

Year

Contribution Margin: High End

2015 2016 2017 2018 2019 2020 2021 2022High End (Chester) 34% 36% 34% 36% 35% 33% 32% 34%

High End (Baldwin) 35% 35% 35% 39% 35% 38% 29% 28%

34%36%

34%

36% 35%

33%

32%34%

20%

25%

30%

35%

40%

45%

50%

55%

60%

Contribution Margin

Year

SWOT

Market Share vs. Industry

Company Market Share

Market Share vs. Competition

SWOT

Customer Awareness Analysis

0%10%20%30%40%50%60%70%80%90%

100%

2015 2016 2017 2018 2019 2020 2021 2022

Traditional (Baldwin) High End (Baldwin) Low End (Baldwin)

Traditional Low End High End

SWOT

Cash Flow

SWOT

Units of Inventory on Hand

16,394

4,857

20,297 18,448

44,195

10,106

27,834

5,926

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2015 2016 2017 2018 2019 2020 2021 2022

Chester Competitor (Baldwin)

SWOT

DuPont Model Analysis

ROEROA

ROS

Inv. Turnove

rLeverage

Return on Equity vs. Competitor

29%

21%

31%

14%

19%

1%

10%10%

0%

5%

10%

15%

20%

25%

30%

35%

20222021202020192018201720162015

Competitor (Baldwin) Chester

DuPont

Return on Assets

5.43%

4.77% 0.36%

9.59%

6.90%

20.99%

15.00%

21.20%

0%

5%

10%

15%

20%

25%

2015 2016 2017 2018 2019 2020 2021 2022

ROA

Year

Chester Competitor (Baldwin)

Return on Assets: Total Sales

Return on Assets: Total Assets

DuPont

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Ches

ter

Bald

win

Ches

ter

Bald

win

Ches

ter

Bald

win

Ches

ter

Bald

win

Ches

ter

Bald

win

Ches

ter

Bald

win

Ches

ter

Bald

win

Ches

ter

Bald

win

2015 2016 2017 2018 2019 2020 2021 2022

Baldwin Total Assets Chester Total Assets

Leverage Ratio Analysis

1.41.41.50

2.102.00

2.5

2.11.9

0

0.5

1

1.5

2

2.5

3

20222021202020192018201720162015

Leve

rage

Rati

o

Competitor (Baldwin) Chester

DuPont

Return on Sales vs. Competitor

11%

9%

13%

6%

7%

0%

4%5%

0%

2%

4%

6%

8%

10%

12%

14%

20222021202020192018201720162015

Competitor (Baldwin) Chester

DuPont

Porter’s Five Forces

Future Projections

$20.22 $14.73 $20.85 $27.11 $35.40 $46.45 $61.24 $81.12

$137.56 $143.62 $183.91

$216.84

$283.19

$371.58

$489.88

$648.96

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

2020 2021 2022 2023 2024 2025 2026 2027

Price

(Ear

ning

)

EPS Share Price

Return to Shareholders

Dividend Payout Continually increasing our Cash Position

Pay out a growing dividend • Want to average dividend growth at 1% year to year

Increases Chester’s Stock Intrinsic Value

Stock Price Growth Grow our Earnings Per Share at 2% each year

Continually increasing Stock Price

Closing

Maintaining Industry Leadership Research and Development Approach Additional Cash Investment

Continued Growth in the Future New sales forecast model

Minimizing inventory carrying costs

Any Questions?

Works Cited

Capsim Portal. N.p., n.d. Web. 22 Apr. 2014. <http://new.capsim.com/student/portal/index.cfm?template=dashboard&CFID=1474539&CFTOKEN=9538c5727d704a0c-4D974D8D-F062-C5B0-FBB346CAE620E9BC>.

ADDITIONAL MATERIAL FOR REFERENCE

Supplemental Slides

Customer Awareness Analysis

71% 69% 70%68%60%

64%

Traditional Low End High End

Customer Awareness-2018

Chester Competitor (Baldwin)

89% 88% 88%

76%

63%

78%

Traditional Low End High End

Customer Awareness-2022

Chester Competitor (Baldwin)

Customer Awareness Analysis

Chester 2015 2016 2017 2018 2019 2020 2021 2022

Traditional 54% 61% 67% 71% 73% 76% 84% 89%

Low End 52% 59% 66% 69% 72% 75% 83% 88%

High End 53% 61% 66% 70% 73% 77% 82% 88%

Competitor (Baldwin) 2015 2016 2017 2018 2019 2020 2021 2022

Traditional (Baldwin) 57% 61% 63% 68% 70% 72% 74% 76%

Low End (Baldwin) 54% 56% 57% 60% 59% 60% 62% 63%

High End (Baldwin) 51% 55% 58% 64% 69% 72% 75% 78%

Customer Accessibility Analysis

69% 70% 71%69%65% 68%

Traditional Low End High End

Customer Accessibility-2018

Chester Competitor (Baldwin)

89%94%

89%84% 83%

88%

Traditional Low End High End

Customer Accessibility-2022

Chester Competitor (Baldwin)