Roushan ChowdhuryHEAD OF HR/TQM

Overall Performance Analysis Presentation

2016 - 2024

Joanne RichardCEO, HEAD OF MARKETING/FINANCE

Sam SilvaHEAD OF R&D/PRODUCTION

Presented to the Board of Directors

To be the inspired solution for High Quality and Affordable sensors

Vision

Inspire Innovation and Sustainability

Build Talent and Strategic Relationships

Achieve Excellence and Ambitious Profitable Growth

Mission

• Year 2017 – Broad Differentiator• New Products (Product CREW)• Excellent Designs• High Awareness and Accessibility• Prices above average

• Year 2018, & 2021 – “The Capacity” Strategy• Sold our existing plant capacity • Company was struggling in terms of profits, Inventory, Contribution Margin, ROS, ROE, ROA, and other

ratios• Improve company’s net profits, EPS, ROE, ROS, ROA, and other ratios

• Year 2019, 2020, 2022, 2023, & 2024 – Niche Differentiator (High Tech)• Excellent Designs• High Awareness and Accessibility• Higher Demand, Higher Prices, and Higher Profits

Our Strategies

2016 2017 2018 2019 2020 2021 2022 2023 2024-$10,000,000.00

$0.00

$10,000,000.00

$20,000,000.00

$30,000,000.00

$40,000,000.00

$50,000,000.00

$60,000,000.00

$70,000,000.00

$80,000,000.00

$90,000,000.00

• Affordable and competitive Prices, Improved Promo and Sales budgets, Accurate Sales Forecasts

Marketing - Goals

Cake

Coat

Cure

Crew

0 500 1000 1500 2000 2500

999

358

314

1520

455

398

1600

603

460

1428

794

629

594

1826

938

1098

1532

2100

1495

1391

1969

202420232022202120202019201820172016

Units Sold

Marketing - Goals

Cake

Coat

Crew

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

55%

46%

57%

48%

59%

63%

35%

70%

73%

53%

78%

79%

67%

85%

85%

80%

202420232022202120202019201820172016

Customer Awareness

• Acquiring required capital, Maximizing the return to shareholders, Selecting and monitoring performance measures that support CHESTER’s strategies

Finance - Goals

2016 2017 2018 2019 2020 2021 2022 2023 2024$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

Finance - Goals

2016 2017 2018 2019 2020 2021 2022 2023 2024

-$4.00

-$2.00

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

• Spending maximum on recruiting/training, Investing heavily in TQM in order to improve productivity

HR/TQM - Goals

2019 2021 20230.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

0.05%

7.61%11.69%

0.08%3.70%

13.89%

0.05%

6.61%

56.85%

0.03%

40.01%

40.01%

Material Cost Reduction Labor Cost Reduction Admin Cost Reduction Reduction R&D Cycle Time

HR/TQM - Goals

2021

2022

2023

117.70%

120.60%

123.50%

• CPI Systems

• Vendor/JIT

• Quality Initiative Training

• Channel Support Systems

• Concurrent Engineering

• UNEP Green Programs

• Benchmarking

• Quality Function Deployment Effort

• CCE/6 Sigma Training

• GEMI TQEM Sustainability Initiatives

• Grow capacity to meet the demand, Improve Automation Levels, Reduce Labor and Material Costs, Manage inventory efficiently

Production - Goals

Cake Cedar Coat Crew0

1

2

3

4

5

6

7

8

4

5

3

4

5

3

4.5

5

4

5

5.5

4.5

3

6

6.5

5.5

5

6.5

7

6 6

6.5

7

6 6

2016 2017 2018 2019 2020 2021 2022 2023 2024

Auto

mati

on L

evel

• Accurate Product Positioning, Introducing new products, Improving PFMN and reducing Sizes based on customer requirements, Achieving higher MTBF ratings

R&D - Goals

2016 (PFMN)

2017 (PFMN)

2018 (PFMN)

2019 (PFMN)

2020 (PFMN)

2021 (PFMN)

2022 (PFMN)

2023 (PFMN)

2024 (PFMN)

2016 (SIZE)

2017 (SIZE)

2018 (SIZE)

2019 (SIZE)

2020 (SIZE)

2021 (SIZE)

2022 (SIZE)

2023 (SIZE)

2024 (SIZE)

0

2

4

6

8

10

12

14

16

18

20

Cake (Trad)Cedar (Low)Cid (High)Coat (Pfmn)Cure (Size)Crew (Trad)

R&D - Goals

2016 2017 2018 2019 2020 2021 2022 2023 20240%

5%

10%

15%

20%

25%

30%

13%

21%

17% 17%14% 13%

15%13% 14%

4%

1%

0.06 0.09

0.12

0.120.13

Cake Crew Others

Trad

ition

al M

arke

t Sha

re27% of

Traditional

Market !!!

Return on Sales (ROS)

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

4.10%

-3.80%

5.80%

2.20%

-3.10%

0.00%

6.80%

12.30%

11.90%

ROA

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

4.40%

-3.30%

6.30%

2.50%

-2.60%

0.00%

6.30%

11.40%

9.80%

1.84%

4.76%

4.42%3.41%

2.97% 3.26%

2.21%

1.14% 1.06%

Vs.

ROE

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

8.70%

-9.30%

13.20%

5.20%

-6.90%

0.00%

15.90%

22.80%

17.70%

8.99%

22.48%

19.16%

13.83%

11.16%

13.15%11.61%

6.45% 6.26%

Vs.

Contribution Margin

2016 2017 2018 2019 2020 2021 2022 2023 20240.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

28.30%

23.60%

32.90% 33.20% 33.50%

40.30%47.50%

46.90%

44.30%

28.30%

30.30%

32.30%

34.30%

36.30%38.30%

40.30%42.30%

44.30%

Profits/Cumulative Profit

2016 2017 2018 2019 2020 2021 2022 2023 2024

-$10,000,000.00

$0.00

$10,000,000.00

$20,000,000.00

$30,000,000.00

$40,000,000.00

$50,000,000.00

$60,000,000.00

$70,000,000.00

$80,000,000.00

$90,000,000.00

$4,188,507.00

-$4,834,783.00

$7,906,465.00

$3,384,451.00

-$5,006,251.00

-$19,657.00

$13,727,824.00

$28,334,903.00$31,167,866.00

$4,188,507.00-$646,276.00

$7,260,189.00

$10,644,640.00

$5,638,389.00 $5,618,732.00

$19,346,556.00

$47,681,459.00

$78,849,325.00

Q U E S T I O N S ?