Baldwin Sensor Company

Introduction Baldwin Sensor Company: Founded in 2015 In the last five years has cumulative profits of over $18,000,000 and stock price has more than doubled Market share has increased Customer satisfaction has significantly risen Turnover rate has fallen

Baldwin Backbone Company Vision Statement: To serve our customers better than the competition, and to preserve our integrity as we become a leader in the sensor industry.

Meet the Baldwin Executives Randy Gold, Chief Marketing Officer Hannah Wagner, Chief Human Resource Officer Trav Foster, Chief Financial Officer Each executive will talk about their area of expertise, and then we will enter into a time of question and answer

Strategy: Overview Increase awareness and accessibility quickly Specifically marketing each product Higher automation levels reducing material and labor cost Lower prices on our products TQM Investments Adapting to mistakes made in year 1

Higher Automation Traditional Low End Automation level of 7.5 Plans of extending to 8.5 Production cost of $13 Selling for $25 $12 profit on every item sold 2,591,000 sold this year Automation level of 10 Production cost of $6.34 Selling for $16.75 $10 profit on every item sold 3,569,000 sold this year

Higher Automation Versus Lower Automation Traditional Example Company: Eerie Low End Automation level of 5 Production cost of $15.36 $2 more expensive than our product Automation level of 8 Production cost of $9.50 $3 more expensive than our product

Adapting to Mistakes What happened exactly in year 1 R&D Adapting from the early year 1 mistake in R&D Catching up products from TQM investments (R&D) Concurrent Engineering & Quality Function Deployment Effort Dominate early strategy helped cope with R&D error Able to recover from a $45,000,000 emergency loan in year 4 Turnaround with a profit of $18,000,000 in year 5 The future of Baldwin is bright

Actual and Potential % of Total Market Share (2020) Products Baker (Traditional) Bold (Performance) Bead (Low End) Buddy (Size) As you have noticed in year 4 (2019) we decided to also sell our High End product. We predicted that the new products being introduced by the 3 other industries would be High End products and our High End product, still lacking in R&D and would for years to come, wouldn’t be able to compete at all. Looking at this year and seeing that the High End market is way over-saturated with products 8 in total this was a great call that we made as a team. This has been a huge factor in our ability to dominate every product we offer allowing us to completely focus on being the best and selling the most as we did this year with the highest market share in every product we offer.  Actual and Potential % of Total Market Share (2020) Traditional Low Performance Size Actual 22.6% 23.0% 27.3% 22.8% Potential 20.9% 21.6% 29.3%

Awareness/ Promotion Since the beginning, we have kept our promotional budget around roughly $1,700,000 for each product. The Sales budgets are roughly $2,750,000 for each product. Customer Awareness: > 83% Customer Accessibility: > 82%

Marketing and Sales Plans Advertising specific to the target market for each product For example, Baker and Bead customers respond better to Print Media, Direct Mail, and some Trade Shows, while Buddy and Bold customers respond better to Web Media and Email

Human Resources Aim to maximize recruitment spending and training hours We spend approximately $5,000,000 on Recruiting and Train each employee for 80 hours We focus on high caliber in order to have a higher productivity and the lowest turnover possible Turnover Rate: 6.7% Productivity (2020): 116.7% Projected (2021): 120.3% Benefits

Key Ratios Future Stock Projections: 2021: $87.14 2022: $114.04 2023: $137.96

Balance Sheet

Income Statement

Statement of Cash Flows