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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
MATERIAL COSTS LOW.
R&D, PRODUCTION, AND
• INVEST IN AUTOMATION
• AVOID RUNNING
SECOND SHIFTS UNTIL DEMAND WARRANTS
Business Model Canvas
Key Partners
Key Activities
Chester Company
Value Proposition
Customer Relationship
Marketing
Key Resources
Channels
Outside Sales
Inside Sales
Distributors
Cost Structure
Revenue Streams
January 1, 2017
Customer Segments
Lower priced products
Current and modern
Low end products
Traditional Products
Reliable & Quality Product
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
“TRADITIONAL” MARKET.
• INTRODUCE
NEW PRODUCTS TO CAPTURE MARKET SHARE
TO COMPETE IN THE
MARKETING
• KEEP PACE WITH
AWARENESS AND ACCESSIBILITY OF OUR COMPETITORS PRODUCTS.
• REVISIT SALES AND PROMOTION BUDGETS
LEADERSHIP POSITION.
AND ADJUST THEM AS NEEDED TO MAINTAIN A COST
PRODUCTION TACTICS
• INVEST IN AUTOMATION
TO LOWER PRODUCTION COSTS.
• POSTPONE AUTOMATION INVESTMENTS
• AVOID INVESTING
UNTIL PRODUCTS FIT TARGET MARKET
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
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
Total Debts
Profit minus interest
Balance After
$
$
$
Round 9
260,913.00 $
82,529.00 $
178,384.00 $
Round 10
178,384.00
32,393.97
145,990.03
$
$
$
Round 11
Round 12
145,990.03 $
98,107.83 -$
47,882.20 $
101,817.20 $
98,107.83 -$
3,709.38 -$
Round 13
3,709.38
98,533.92
102,243.30