The report summarizes the company's strategy, SWOT analysis, financial performance, and projections for shareholders. Key points include: - The company differentiates through product lifecycle focus and segments into traditional, low end, and high end markets. Research and development and marketing are strategic focuses. - SWOT analysis examines contribution margins, market share, customer awareness, cash flow, and financial ratios over time compared to competitors. - Financial analysis using the DuPont model shows the company outperforming competitors on metrics like return on equity and assets. - Future projections estimate growing earnings per share, share price, revenues and returns for shareholders through dividends and stock appreciation.

1. REPORT TO SHAREHOLDERS
T E R Y N J O H N S O N
K E L L Y L I S Z E W S K I
H S I N T A R N G
O L I V I A K A R C H
Chester Co.

2. 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

3. Our Strategy
 Differentiator with Product Lifecycle Focus
 Segment Focus:
 Traditional
 Low End
 High End
 Specific Focus:
 Research and Development
 Marketing Investment

4. SWOT Analysis
•Contribution Margin
•Research and
Development
•Marketing Approach
•Asset Liquidity
•Sales Forecast
•Capacity Forecast
•Cost Savings
•Production Constraints
•Leverage Ratio
•Company Profitability

5. 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

6. 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

7. Contribution Margin: High End
2015 2016 2017 2018 2019 2020 2021 2022
High 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

8. Market Share vs. Industry

9. Company Market Share

10. Market Share vs. Competition
SWOT

11. 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

12. Cash Flow
SWOT

13. 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

14. DuPont Model Analysis
ROE
ROA
ROS
Inv.
Turnover
Leverage

15. 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

16. 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)

17. Return on Assets: Total Sales

18. Return on Assets: Total Assets
DuPont
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Chester
Baldwin
Chester
Baldwin
Chester
Baldwin
Chester
Baldwin
Chester
Baldwin
Chester
Baldwin
Chester
Baldwin
Chester
Baldwin
2015 2016 2017 2018 2019 2020 2021 2022
Baldwin Total Assets Chester Total Assets

19. Leverage Ratio Analysis
1.41.4
1.50
2.10
2.00
2.5
2.1
1.9
0
0.5
1
1.5
2
2.5
3
20222021202020192018201720162015
LeverageRatio
Competitor (Baldwin) Chester
DuPont

20. 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

21. Porter’s Five Forces

22. 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(Earning)
EPS Share Price

23. 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

24. Closing
 Maintaining Industry Leadership
 Research and Development Approach
 Additional Cash Investment
 Continued Growth in the Future
 New sales forecast model
 Minimizing inventory carrying costs

25. Any Questions?

26. Works Cited
 Capsim Portal. N.p., n.d. Web. 22 Apr. 2014.
<http://new.capsim.com/student/portal/index.cfm?templ
ate=dashboard&CFID=1474539&CFTOKEN=9538c5727d7
04a0c-4D974D8D-F062-C5B0-FBB346CAE620E9BC>.

28. A D D I T I O N A L M A T E R I A L F O R R E F E R E N C E
Supplemental Slides

29. Customer Awareness Analysis
71% 69% 70%68%
60%
64%
Traditional Low End High End
CustomerAwareness-
2018
Chester Competitor (Baldwin)
89% 88% 88%
76%
63%
78%
Traditional Low End High End
CustomerAwareness-
2022
Chester Competitor (Baldwin)

30. 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%

31. 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)