Report to Shareholders
- 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
- 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
- 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
- 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)