3. Product Development
Began with five products that fell short of
customer preference
Invested heavily in R&D
Committed to our mission
Keeping investors in mind
5. Be Sure, Use Baker
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10
20
30
40
50
60
70
80
2016 2017 2018 2019
Customer Awareness
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Accessibility
Customer satisfaction increased from 21% in 2015
to 69% in 2019
Sold 1,356 units in 2019
Market Share 11%
6. Bid right, Win Big!
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20
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50
60
70
80
2016 2017 2018 2019
Customer Awareness
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Accessibility
Customer satisfaction increased from 21% in 2015 to 42% in 2019
Sold 1,235 units in 2019
Transitioned from high end market into traditional market
Market share 11%
7. Build better with Bead!
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10
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30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Awareness
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Accessibility
Customer satisfaction increased from 21% in 2015
to 42% in 2019
Market Share 19%
Sold 2,682 units in 2019
8. Be Bold, be the Best!
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10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Awareness
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Accessibility
Customer satisfaction increased from 21% in 2015
to 70% in 2019
Market Share 19%
Sold 752 units in 2019
9. Beyond the Cutting Edge with Buddy
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Awareness
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019
Customer Accessibility
Customer Satisfaction increased from 21% in 2015
to 73% in 2019
Highest Market Share 23%
Sold 886 units in 2019
10. Bring it with Brilliance
Customer Satisfaction after two years 41%
Awareness 72%
Accessibility 100%
Sold 718 units in 2019
Market Share 15%
11. Become the Best with Bolster
Introduced in mid-year 2019 to the high end market
Customer Satisfaction 68%
Awareness 58%
Accessibility 100%
Sold 398 units
20. Facing the Future with
Success
Potential challenges
Disruptive technology and innovations
3D Printing
Potential opportunities
New markets in:
Artificial Intelligence
The Internet of Things
21. Why Invest with Baldwin?
Successful marketing strategies
Increasing sales
Continued growth in profits
Investments to increase efficiency
High market share
Consistently improving stock price
Past and future dividends
Planning for the future
Editor's Notes
Baldwin began with five products that fell short of customer preference in 2015
Since that time, we have invested heavily in R&D to improve our existing products and launch two new products.
Our company has worked strategically to stay true to our mission of bringing quality sensors to every market segment.
We have kept investors in mind every step of the way. Our products have been developed strategically to provide optimal sensors to every market while minimizing R&D costs.
We have increased automation for every product and optimized our low end and traditional automation rates in order to maximize the contribution margin on these larger markets
Capacity has been redistributed to increase utilization of the 2nd shift in our traditional and low end products. We have increased capacity for the higher growth rate markets and added two production lines for our two new products.
We have increased productivity and maximized our plant utilization by automating our production lines early.
Fewer stock outs than competitors… right??
Use of second shift (BP p.19)
Retention/turnover? Turnover rate decreased.
Productivity is affected by training, etc. which we’re investing in pretty well…
Customer satisfaction increased from 21 in 2015 to 69 in 2019
Sold 1,356 units in 2019 at $23 each
Baker currently has the optimal performance and size for the traditional segment and an acceptable reliability of 17,500
Customer satisfaction increased from 21 in 2015 to 42 in 2019
Sold 1,235 units in 2019 at $27.50 each
Bid was transitioned from the high end market into the traditional market to capture higher sales with minimal R&D costs. Because of this Bid has superior reliability, performance and size for it’s market.
Overall, with Bid and Baker we control 22% of the market share.
Customer satisfaction increased from 21 in 2015 to 42 in 2019
Sold 2,682 units in 2019 at $18 each
Bead is the perfect low end product with ideal size and performance for its segment and a reliability of 14000
Customer satisfaction increased from 21 in 2015 to 70 in 2019
Sold 752 units in 2019 at $33 each
Bold continues to offer our Performance segment an ideal product with a reliability of 27,000, 13.2 size and 13.4 performance.
Customer satisfaction increased from 21% in 2015 to 73 in 2019
Sold 886 units in 2019 at $33 each
Buddy is an ideal product for those who care about size with a reliability of 19,000, 6.8 performance and perfect size of 6.6.
Brilliance 2009 1.9 25000 11.6 performance 8.4 size
Customer Satisfaction after two years on the market is already at 41, awareness is at 72% and accessibility is at 100%.
Sold 718 units in 2019 at $37.50 each
Brilliance strives to provide a premier product on the cutting edge of the sensor industry. In 2018 the product was released at the ideal spot for the high end market and by investing in R&D for Bid we continue to provide a superior sensor.
Bolster was introduced in 2019 to the high end market.
Customer satisfaction debuted at 68, awareness at 58% and accessibility at 100%.
Sold 398 units in 2019 at $38.00 each
(this is duplicated from the slide about Brilliance) Brilliance strives to provide a premier product on the cutting edge of the sensor industry. In 2018 the product was released at the ideal spot for the high end market and by investing in R&D for Bid we continue to provide a superior sensor.
Awareness: we have invested strategically in our marketing efforts to hit our segments where they are listening. We have found a strategic level of investment that will keep us top of mind without eating in to our profit margins.
Access: By providing optimal sales and support by 2019, we are able to reduce our investments in this area.
High awareness for each product
100% Accessibility in every market segment
Pricing strategy on point with our quality products and overall business strategy
R&D investments that keep our products at the top of the market in every segment.
Baldwin’s market share has increased from 16.67% at the start of our first year to 22% in year 4, making us the industry leader.
Our marketing strategy has allowed us to surpass our competition in sales.
Sales have increased from $125M to $209M, 67% growth over 4 years.
All our products have contribution margins greater than 23% resulting in an overall contribution margin of 35.9% in 2019.
With profitable product lines and strong initial investments have contributed to the success with profits of $4.7 million.
Our stock price has grown and surpassed our competitors.
Stock price increased from $18.08 in 2016 to $33.64 in 2019, a growth of 86%.
When compared to our competitors we have the best stock price and have shown the most increase.
We consistently increasing our earnings per share and return on equity. Our growth and return to our investors is reflected in our increase in the stock price and our ability to pay out a dividend to our investors.
So with improvements and innovations in technology, there are going to be things that come along that threaten our business. One example is the advent of 3D printing, which allows just about anyone who can afford the initial investment, the ability to produce just about anything they want or need, such as sensors. This could be problem for Baldwin, because once our customers are able to produce their own sensors at a low cost, they’re probably going to stop buying them from us. In order to deal with this potential problem, is going to make every effort, first to keep our costs down, so that we can offer our sensors at a competitive price and retain as many customers as possible. We will improve our customer relationships and get their input in our R&D efforts to increase value for them. We may, if financially feasible, even embrace the new technologies ourselves and adapt to the changing environment.
Some of new opportunities that we are ready to take advantage of are the growing and emerging markets for sensors. Huge improvements in Artificial Intelligence technology make sensors even more in-demand, as they are often essential in gathering data that makes AI effective. And the Internet of Things, which has also been called “the Sensor Revolution” appears as a vast opportunity for us to capture a whole new market. As our world becomes more and more connected and networked, sensors are going to be in high demand, since nearly everything we’re going to connect with/to will require a sensor. As Baldwin is working to stay on the forefront of new technology, we are positioning ourselves to capture those new markets and remain ahead of our competitors.
Our marketing strategies have been successful and we are starting to reach high levels of awareness, so that will begin to be even more noticeable in our financial results.
Our sales and profits have shown continual improvements in the last 4 years, and will continue to grow in the next several years.
We invested a lot in the first few years to increase efficiency in many areas. We lowered labor costs, increased productivity, and improved employee retention. We invested in a lot of areas to improve our key ratios, and those will be investments are going to be paying off more and more in the next several years.
We’ve captured the largest market share in the industry and our brands land in the top slots for sales and customer satisfaction.
Our stock price has gone up from day one. We paid out a dividend last year, and as our initial investments pay off more and more, you can expect your investments in Baldwin to continue to pay off.
We are planning for the future. We have strategies in place to successfully guide us through potential disruptive innovations that will affect the sensor market. We are also doing the work now to be able to capture any new markets that will emerge in the next few years.
Baldwin doesn’t make decisions with just the immediate future in mind. We make decisions based on what increase our profitability over the long-term. We are looking to the future and planning for the future in every decision.
To put it simply, invest with Baldwin and win with Baldwin!!
*be vague about new product development – don’t say yes or no to it.
