Chester Corporation

Chester Corporation

“Bringing you the next generation of affordable motion efficiency”

April 19, 2023 Chester Corporation 2

Inside Chester

Why invest in us?–What we do well

How do we strive for perfection?–Recognize our faults

What are our plans for the future?–Making you our priority


Why Invest in Chester?


Customer Satisfaction: A Comparison

Traditional Low High Performance Size0

10

20

30

40

50

60

70

Customer Satisfaction Yr. to Yr.

Year 1Year 2Year 3Year 4

Sensor Segment

Dece

mbe

r Sur

vey

Scor

e


Performance Assessment

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

26.10%

35.30% 34.90%36.20%

Contribution Margin Yr. to Yr.

Contribution

Round

Cont

ributi

on in

Per

cent

age

1 2 3 4


Industry Assessment

Andrews Baldwin Chester Digby Erie Ferris0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

33.13%

Average Contribution Margin Industry Wide

Industry Averages

Company

Cont

ributi

on in

Per

cent

age


Sales Assessment

Andrews Baldwin Chester Digby Erie Ferris0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000$130,429,934

Industry Sales Averages

Average

Company

Sale

s in

Dolla

rs


Asset Turnover Assessment

1 2 3 40

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Asset Turnover Yr. to Yr.

Asset Turnover

Round

Asse

t Tur

nove

r

Ideal Level at 1.3


Balance Scorecard Assessment

1 2 3 41

2

3

4

5

6

Customer Buying Criteria

Turnover Ratio

Round

Ratio

Ideal Level of 5


Recognizing our Faults to Achieve Perfection


ROE Assessment

-60

-50

-40

-30

-20

-10

0ROE Yr. to Yr.

Round 1Round 2Round 3Round 4

Rounds

RO

E in

Per

cen

tage


Profits Assessment

-35,000,000

-30,000,000

-25,000,000

-20,000,000

-15,000,000

-10,000,000

-5,000,000

0

Cumulative Profits


Round

Pro

fits

in D

olla

rs


Loan Assessment

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Emergency Loans Yr. to Yr.


Round

Loa

ns

in D

olla

rs


Income Assessment

-16,000

-14,000

-12,000

-10,000

-8,000

-6,000

-4,000

-2,000

0

Net Income Yr. to Yr.


Round

Net

In

com

e in

Dol

lars


Inventory Assessment

Cake Cedar Cid Coat Cure Cyprus0

100

200

300

400

500

600

700

Excess Inventory/ Product

Round 1Round 2 Round 3Round 4

Round

Exc

ess

Inve

nto

ry in

Un

its


What are our Competitors doing Wrong?


Profits Assessment

Digby Erie

-30,000

-25,000

-20,000

-15,000

-10,000

-5,000

0

Net Profits Yr. to Yr.


Round

Pro

fits

in D

olla

rs


Profits Assessment

-250,000,000

-200,000,000

-150,000,000

-100,000,000

-50,000,000

0

Cumulative Profits

Round 1Round 2Round 3Round 4Total

Round

Cu

mu

lati

ve P

rofi

ts in

Dol

lars

Andrews Baldwin Digby Erie Ferris


Loan Assessment

Andrew Baldwin Digby Eerie Ferris0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

Emergency Loans Yr. to Yr.

Round 1Round 2Round 3Round 4Total

Company Round to Round

Emer

genc

y Lo

an in

Dol

lars


ROE Assessment

-300

-250

-200

-150

-100

-50

0

ROE from Yr. to Yr.


Round

ROE

in P

erce

ntag

e

Digby Erie


Looking Ahead to the Future


Forecast for Contribution Margin

Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Round 7 Round 80.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%


ROS Forecast

Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Round 7 Round 8

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%


Profits Forecast


-20,000,000

-10,000,000

0

10,000,000

20,000,000

30,000,000

40,000,000


ROE Forecast


-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%


Balance Scorecard Forecast


10

20

30

40

50

60

70

80

90


Our Competitive Advantage


Competitive Advantage

Round 1 Round 2 Round 3 Round 40

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

109,848,078

120,555,661

134,046,938

152,117,388

Industry AvgChester


Why Chester?

Financial Strengths:

• Yearly increase in contribution margin

• Yearly increase in profits

• Yearly increases in all ratios, ROA, ROE, & ROS

• Great turnover rate

• Opportunities for current and new shareholders to gain a profit


Products:

• Achieved a competitive advantage over other industries

• Yearly increase in sales

• Great customer satisfaction

• Great market share for all our products

• Great customer survey scores for Traditional, Low, High, and Performance segments

• Significant expansion opportunities for all products


Shareholder Value:

• Focus on enhancing shareholder value• Focus on profits• Focus on most efficient use of capital


Thank you for your Time!

Documents

Chester Corporation