Live Longer Live Happier

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Annual Report 2022

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Our!Mission!To! ensure! people! live! a! longer,! happier! life! by! providing! awareness!through!our!proven!system!and!diversified!products.!

What We Stand For !

Our!Vision!!One!day,!all!people!will!have!the!awareness!to!live!a!longer,!happier!life.!

• We!reach!new!people!by!expanding!our!business,!both!technologically!and!geographically.!!

• Our!business!strategy!drives!our!success!in!a!globally!sustainable!fashion.!!!

• Our!concern!for!our!customers!drives!our!business!strategy!and!helps!enable!them!to!have!successful,!meaningful!lives.!

!• Our!team!is!committed!to!our!values!

and!the!forward!progress!of!society.!!

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Baldwin Values !

“We are an engaged and specialized team who cares deeply for individuals in the prevention of genetic disorders.”!!!!!!!!!!!!!!!!!!!

! ?The!Baldwin!Team!

Commitment

• Provide(cutting(edge(products(to(ensure(the(highest(tier(of(accuracy(and(speed(

• Commit(to(the(well(being(and(satisfaction(of(our(customers(

Quality

• Dedicate(to(creating(quality(products(that(we(can(be(proud(of(

• Deliver(a(higher(quality(of(life(to(those(dealing(with(the(uncertainty(of(disease(

• Place(high(value(on(our(state(of(the(art(equipment(as(well(as(our(world(class(people(

Accuracy

• Provide(state(of(the(art(equipment(at(an(affordable(price(

• Research(continuously(to(create(products(with(the(most(precision(in(the(industry(

Accountability

• Take(initiative(to(find(new(processes(and(products(

• Accept(new(and(difficult(challenges(

Innovation

• Invest(in(the(innovation(of(both(our(products(and(our(industry.(

• Recognize(that(innovation(will(directly(lead(to(the(betterment(of(our(company,(and,(through(our(efforts,(the(betterment(of(society.(

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Dear Baldwin Investor

What(does(one(do(to(achieve(success(in(an(ever(changing(global(market?(How(do(you(define(success?(In(a(time(of(continuous(technological(advancement,(how(does(one(stay(relevant(in(the(marketplace?

At(Baldwin,(we(are(focused(on(organic(growth.(By(laying(the(foundation(in(early(years,(we(have(doubled(our(sales(in(2021,(and(doubled(them(again(in(2022.(Our(industry(has(been(saturated(with(several(products(from(five(different(companies.(Thus,(at(this(point(in(our(business(cycle,(we(are(looking(to(gain(market(share(quickly(in(order(to(increase(our(competitiveness(with(companies(like(Ferris.(( In(2014(we(decided(to(focus(on(America(and(European(markets.(They(were(immediately(profitable(compared(companies(who(competed(in(Asia(had(several(years(of(lost(profits(before(entering(the(black.(Because(we(had(this(focus(from(the(beginning(we(find(it(to(be(in(our(best(interest(to(steer(away(from(the(Asian(market(until(we(have(joined(the(ranks(of(the(top(three(companies.(Holding(this(decision(in(mind(saves(our(company(from(enduring(the(risk(and(cost(of(holding(inventory(in(three(different(markets.((In(2016(we(realized(the(costPleadership(section(of(the(market(was(being(underserved(while(there(was(intense(competition(in(the(performance(sector.(Thus,(we(changed(our(strategy(to(fit(the(demand(of(our(customers.(This(strategy(worked(incredibly(well(to(begin(with.(In(2017(we(held(nearly(40%(of(the(market(and(capitalized(with(over($48(million(in(sales.(This(free(range(of(the(market(attracted(the(attention(of(competitors(however.(In(2018(Ferris(entered(the(European(market(cutting(our(sales(in(half(by(2019.(They(were(focused(on(gaining(automation(and(capacity(faster(than(any(other(company.(This(actually(gave(them(a(temporary(competitive(advantage.(((( ( ( ( (

“At Baldwin, we define success by the number of l ives we enrich with our products.”

We#attempted#to#focus#on#using#our#reserve#cash#to#catch#up#to#their#levels#of#automation#and#capacity,#but#this#produced#no#better#results.#By#2020#we#reached#a#five#year#low,#however#the#future#is#bright.#We#decided#to#focus#solely#on#awareness#and#availability#to#improve#our#bottom#line.#This#small#decision#had#vast#implications#taking#our#profits#from#losing#$152,000,#to#making#over#two#million.#We#will#continue#to#utilize#this#focus#on#sales#in#the#future#to#drive#profits,#while#using#extra#cash#to#pour#into#capacity.#

Our#focused#cost#leadership#strategy#displays#our#commitment#to#people,#and#our#overall#goal#to#make#the#world#a#happier,#healthier#place.#Baldwin’s#unique#approach#towards#customer#care#ensures#that#every#person#with#a#need#for#genetic#testing#has#the#technology#to#do#so,#no#matter#his#or#her#budget.#We#are#proud#to#be#the#3rd#highest#product#in#customer#satisfaction#in#both#America#and#Europe.#

The#consistency#this#strategy#provides#is#invaluable.#We#have#maintained#one#of#the#most#stable#stock#prices#in#our#industry#allowing#our#investors#a#strong#AA#bond#rating.#In#recent#years#the#industry#average#of#debt#has#been#skyrocketing#while#our#debt#level#has#been#steadily#falling#since#2015,#placing#us#well#below#the#industry#average.#Our#commitment#to#maintaining#a#profitable#business#responsibly#and#without#incurring#unnecessary#debt#sets#us#apart#in#our#industry#and#serves#to#ensure#that#your#investment#is#being#allocated#wisely.#

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Signed,##

# # # # # The Baldwin Team

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Five Year Plan Advancing Product Growth Baldwin!is!dedicated!to!offering!quality!genetic!testing!devices!at!a!lower!cost!than!competitors.!Baker!has!been!modeled!as!a!mid;level!product,!which!is!sold!at!an!affordable!amount!to!our!clientele.!Baker!is!a!reliable!product!for!those!wanting!average!speed!and!accuracy!from!their!testing!device.!Our!economically!sensitive!solution,!Brown,!is!perfect!for!our!most!price;sensitive!customers.!It!provides!reliable!results!for!a!low!price.!

Expanding Global Business After!much!deliberation,!the!Baldwin!team!has!decided!that!Europe!is!the!best!foreign!market!for!our!company!to!engage!in.!Currently!there!is!18%!growth!rate!in!the!European!budget!market!as!opposed!to!the!small!6%!growth!in!the!American!budget!market.!In!order!to!attain!the!maximum!value!from!the!opportunity!in!Europe,!we!have!pushed!heavily!into!this!up!and!coming!market!while!maintaining!a!holding!pattern!in!America.!Concentrating!on!raising!promotion!and!awareness!efforts!in!Europe!would!be!a!more!lucrative!long;term!option!for!Baldwin.!Continuing!this!strategy!will!enable!Baldwin!to!capitalize!on!the!high!growth!and!profitability!of!the!European!market.!Due!to!the!considerable!stake!that!our!competitors!have!already!established!in!the!Asian!market,!an!expansion!into!Asia!has!been!difficult!up!to!this!point.!The!Asian!market!growth!is!on!an!exponential!curve.!Thus,!moving!into!the!market!at!this!time!will!provide!the!greatest!number!of!sales!in!the!future.!!

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2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022! 2023! 2024! 2025! 2026!

Market Growth!

America!

Europe!

Asian!Pacific!

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Cscdv

Accelerating Progress Towards Efficiency With!our!commitment!to!providing!access!to!our!products!to!the!most!people,!our!production!strategy!will!incorporate!as!much!automation!than!our!low;cost!competitors.!While!remaining!mindful!of!our!stakeholders!and!their!interests,!we!will!wisely!invest!in!our!plant,!both!its!capacity!and!automation,!such!that!we!retain!a!competitive!plant.!Because!we!offer!a!highly!competitive!product!with!regards!to!price!and!specifications,!we!will!not!require!an!incredibly!large!capacity!to!be!successful.!However,!we!will!invest!in!our!capacity!such!that!our!customers!are!never!wanting!for!our!product!with!a!capacity!consistently!growing!with!our!demand!as!a!function!of!the!various!regional!growth!rates.!Although!our!automation!levels!must!remain!high!and!competitive!in!order!to!provide!the!cost!efficiency!our!profits!will!require,!we!will!constantly!be!in!communication!with!our!marketing!department!in!order!to!insure!we!are!capitalizing!on!our!automation!abilities!while!still!exceeding!our!customers’!expectations.!We!will!increase!our!automation!levels!as!quickly!as!possible,!given!our!cash!on!hand.!The!marketing!and!production!departments!will!continuously!evaluate!the!maximum!automation!without!sacrificing!customer!satisfaction!as!Baldwin!grows.!Collectively,!these!actions!will!insure!our!production!department!contributes!significantly!towards!Baldwin’s!success.!!

Financing for Long-term Results In!order!to!secure!the!strategies!stated!and!also!obtain!a!high!net!profit!and!ensure!we!have!sufficient!funds!to!produce!and!sell!our!products,!we!plan!to!finance!our!expansion!through!our!IPO!and!long;term!debt.!We!believe!this!will!offer!our!stockholders!the!most!amount!of!value!so!as!to!keep!our!stock!price!both!high!and!competitive!amongst!other!corporations.!By!sustaining!market!shares!in!the!Americas!and!Europe,!we!believe!this!will!help!us!to!obtain!high!ROA!and!ROS!ratios,!ideally!achieving!ratios!no!lower!than!6%.!We!also!plan!on!keeping!our!accounts!payable!and!accounts!receivable!relatively!low!in!order!to!keep!production!at!a!high!level.!We!believe!that!increased!availability!of!our!product!is!crucial!to!both!the!financial!and!overall!performance!of!our!company.!

2022 Highlights Over!the!past!eight!years,!our!plant!capacity!and!automation!has!become!increasingly!more!competitive!in!our!industry.!Our!market!share!has!been!small!enough!that!it!has!not!demanded!as!much!capacity!as!some!of!our!competitors.!As!such,!we!slowly!increased!our!capacity!from!2,000!to!2,500!from!years!three!through!five.!We!also!have!slowly!increased!our!automation,!although!we!did!not!do!so!aggressively!until!years!six!and!seven.!Over!our!first!five!years,!we!increased!our!automation!from!3.0!to!3.8,!while!we!have!increased!it!to!5.0,!a!highly!competitive!level,!in!the!past!three!years.!We!made!the!decision!to!invest!so!much!cash!into!automation!because!companies!in!the!same!section!of!the!market!were!enjoying!larger!margins!with!similar!sales!and!thus!enjoying!a!higher!profit.!We!knew!this!was!an!area!we!had!to!improve!in!to!become!more!competitive!and!bring!more!value!to!our!stockholders.!!

In!the!past!six!years!we!have!seen!less!growth!than!we!would!have!liked.!However,!this!is!turning!around.!From!2020!to!2021,!we!nearly!doubled!our!sales!and!tripled!our!profits.!From!2021!to!2022,!we!increased!our!sales!another!27.7%.!While!our!stock!price!over!the!years!hasn’t!been!quite!at!the!level!of!our!competitor’s!average,!we!continually!made!it!a!priority!to!ensure!a!steady!growth!so!as!not!to!face!drastic!drops!in!the!stock!price.!Additionally,!we!have!been!able!to!keep!both!our!debt!and!interest!expense!low!compared!to!the!other!firms!in!the!industry.!Keeping!our!accounts!receivable!and!accounts!payable!low!was!a!strategy!we!have!practiced!from!our!start!in!2014,!and!we!were!able!to!continue!that!throughout!the!years.!In!doing!this,!we!were!able!to!keep!our!production!at!a!level!we!felt!was!best!for!our!products.!We!saw!that!our!production!was!spot!on,!but!our!sales!were!seriously!falling!behind.!In!response!we!made!a!heavy!push!in!marketing!to!increase!the!awareness!and!accessibility!of!Brown!and!Baker.!The!positive!effect!from!this!decision!can!be!seen!by!the!drastic!increase!in!both!our!sales!and!profits!in!the!last!two!years.!!!

Making!the!strategic!decision!not!to!enter!the!Asian!market!was!one!we!made!early!in!the!company’s!history.!We!considered!the!American!and!European!markets!to!be!more!sturdy!and!lucrative,!and!opposed!the!uncertainty!of!the!Asian!market.!By!the!end!of!2017!we!held!32.2%!of!the!European!market!and!10%!of!the!American!market.!Our!vast!growth!in!Europe!was!diminished!by!the!entrance!of!Ferris!whom!cut!our!market!share!by!nearly!10%!by!the!end!of!2018.!Our!products!have!been!up!to!appropriate!standards!for!quality!and!age.!Because!our!forecasting!predicted!more!volatility!in!the!market!than!we!experienced!in!the!early!years,!Baldwin!held!more!“emergency!cash”!than!necessary.!This!cash!could!have!been!used!for!investing!heavily!into!automation!and!capacity!early.!In!hindsight,!we!could!have!used!more!cash!and!taken!on!more!debt!to!accommodate!this!factor!early!to!get!our!variable!costs!as!low!as!possible.!!!

2022 Analysis

The Future for Baldwin As!our!two!products!continue!to!gain!traction!we!expect!to!forecast!accordingly,!and!gain!market!share.!We!will!not!enter!the!Asian!market!in!the!near!future!because!we!are!focused!on!the!American!and!European!markets!we!are!already!competing!in.!Our!dedicated!strategy!and!stable!business!model!has!drawn!the!attention!of!leaders!in!the!differentiated!product!segment!of!the!market.!Recently!we!have!been!talking!to!larger!corporations!in!the!industry!who!are!interested!in!an!acquisition.!The!stockholders!would!gain!considerable!value!if!this!comes!to!fruition.!

Strengths)!;!We!harnessed!a!very!specific!!!market!;!AA!bond!rating!;!Sturdy!stock!price!;!Multiple!products!allow!for!!!!maneuvering!in!the!market!;!Lowest!debt!of!any!company!

Weaknesses)!;!Our!stock!price!has!not!grown!quickly!;!Our!plant!capacity!is!behind!the!industry!average,!which!increases!variable!costs!;Lower!contribution!margin!than!!!!!!!competition!!

Opportunities)!;!Continue!to!improve!capacity!as!sales!grow!;!Be!purchased!by!a!larger!company!;Continue!to!increase!awareness!and!accessibility!to!drive!profits!upwards!!

Threats)!;!Larger!companies!such!as!Digby!could!enter!the!cost!leadership!model!decreasing!Baldwin!sales!!

Income Statement

2014 2015 2016 2017 2018 2019 2020 2021 2022 Sales $48,174 $59,211 $54,710 $81,834 $77,638 $57,421 $45,750 $72,001 $91,966 Variable Cost $33,989 $41,807 $40,159 $58,129 $57,984 $39,009 $34,315 $55,506 $74,703 Depreciation $2,400 $2,400 $2,453 $2,827 $3,075 $3,561 $3,961 $4,228 $4,361 SG&A $5,755 $11,776 $12,093 $11,523 $10,936 $5,524 $4,759 $6,032 $6,107 Other (Fees, Write-offs, Bonuses)

$0 $602 $0 $0 $0 $0 $0 $0 $28

EBIT $6,030 $2,626 $5 $9,355 $5,643 $9,326 $2,715 $6,235 $6,768 Interest (Short term / long term)

$1,716 $2,310 $2,275 $2,068 $1,976 $1,518 $1,261 $594 $594

Taxes $1,510 $1,268 $151 $4,518 $3,057 $3,784 $1,584 $3,559 $4,185 Profit Sharing $56 $0 $8 $55 $34 $80 $23 $42 $40 Net Profit $2,748 ($951) ($2,429) $2,713 $577 $3,943 ($152) $2,040 $1,949 !

Balance Sheet

2014 2015 2016 2017 2018 2019 2020 2021 2022 Cash $8,342 $17,825 $21,676 $10,410 $2,598 $830 $11,150 $6,832 $4,730

Accounts Receivable

$3,960 $4,867 $4,497 $6,726 $6,381 $4,720 $3,760 $5,918 $7,559

Inventory $1,768 $5,091 $0 $8,524 $15,947 $12,734 $0 $0 $4,207 Total

Current Assets

$14,070 $27,782 $26,172 $25,660 $24,926 $18,284 $14,911 $12,750 $16,496

Plant and Equipment

$36,000 $36,000 $36,800 $42,400 $46,120 $53,420 $59,420 $63,420 $65,420

Accumulated Depreciation

($12,000) ($14,400) ($16,853) ($20,443) ($22,755) ($26,316) ($30,277) ($34,505) ($38,867)

Total Fixed Assets

$24,000 $21,600 $19,947 $24,677 $23,365 $27,104 $29,143 $28,915 $26,553

Total Assets $38,070 $49,382 $46,119 $71,704 $48,292 $45,388 $44,053 $41,665 $43,049 Accounts Payable

$2,922 $3,409 $2,766 $4,203 $4,761

$2,579 $1,658 $4,200 $5,973

Current Debt

$0 $0 $2,200 $0 $4,400

$0 $6,600 $0 $0

Long Term Debt

$13,200 $19,200 $17,000 $17,000 $12,600

$12,600 $6,000 $6,000 $6,000

Total Liabilities

$16,122 $22,609 $21,966 $21,998 $21,761 $15,179 $14,258 $10,200 $11,973

Common Stock

$5,808 $11,846 $11,846 $11,846 $11,846 11,846 $11,846 $11,846 $11,145

Retained Earnings

$16,140 $14,927 $12,307 $14,537 $14,684 $18,363 $17,949 $19,619 $19,932

Total Equity $21,948 $26,773 $24,153 $26,383 $26,530 $30,209 $29,795 $31,455 $31,076 Total

Liabilities Owners Equity

$38,070 $49,382 $46,119 $48,380 $48,292 $45,388 $44,053 $41,665 $43,049

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Cash Flow Statement ! 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cash Flows From Operating Activities

Net Income (Loss) $2,748 ($951) ($2,429) $2,713 $577 $3,943 ($152) $2,040 $1,949 Adjustment For Non Cash Items

Depreciation $2,400 $2,400 $2,453 $2,827 $3,075 $3,561 $3,961 $4,228 $4,361 Extraordinary Gains/Losses/Write-off

$0 $0 $0 $0 $0 $0 $0 $0 $0

Changes in current assets and liabilities

Accounts Payable $922 $488 ($643) $2,232 ($237) ($2,183) ($921) $2,543 $1,772 Inventory ($1,768) ($3,322) $5,091 ($8,524) ($7,423) $3,213 $12,734 ($0) ($4,207) Accounts Receivable

$3,040 ($907) $370 ($2,229) $345 $1,662 $959 ($2,158) ($1,641)

Net Cash From Operations

$7,342 ($2,293) $4,842 ($2,982) ($3,663) $10,197 $16,581 $6,653 $2,235

Cash Flows From Investing Activities

Plant Improvements (Net)

$0 $0 ($800) ($5,600) ($3,720) ($7,300) ($6,000) ($4,000) ($2,000)

Cash Flows From Financing Activities

Dividends Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Common Stock

$0 $6,038 $0 $0 $0 $0 $0 $0 $0

Purchase of Common Stock

$0 $0 $0 $0 $0 $0 $0 $0 ($1,863)

Cash from Long Term Debt Issued

$0 $6,000 $0 $0 $0 $0 $0 $0 $0

Early Retirement of Long Term Debt

$0 $0 $0 $0 $0 $0 $0 $0 $0

Retirement of Current Debt

$0 $0 ($2,200) $0 ($4,400) $0 ($6,600) $0 $0

Cash From Current Debt Borrowing

$0 $0 $2,200 ($2,200) $4,000 (4,400) $6,600 ($6,600) $0

Cash From Emergency Loan

$0 $0 $0 $0 $0 $0 $0 $0 $0

Net Cash From Financing Activities

$0 $12,038 $0 ($2,200) $0 ($4,000) $0 ($6,600) ($1,863)

Effect of Exchange Rate

$0 ($262) ($191) ($484) ($429) ($264) ($262) ($371) ($474)

Net Change In Cash Position

$7,342 $9,483 $3,851 ($11,265) ($7,812) ($1,768) $10,320 ($4,318) ($2,103)

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Industry Analysis

Industry Trends Our!industry!is!highly!competitive!with!frequent!changes!in!business!models!and!product!qualities.!Each!decision!made!by!our!five!competitors!creates!opportunities!for!us!to!maximize!value!to!our!customers.!At!Baldwin,!we!strive!to!provide!the!leading!economic!option!by!achieving!high!automation!and!capacity!in!our!plants,!and!competing!in!strategic!regions!to!achieve!economies!of!scale.!!Andrews Andrews!is!chasing!the!customers!who!demand!the!highest!performing!products.!With!a!speed!and!accuracy!of!8.0!last!year,!they!were!able!to!achieve!significant!market!share!across!the!globe.!They!made!over!$3!million!in!America!last!year,!but!lost!nearly!$1.6!million!of!that!in!Asia.!If!they!are!able!to!seal!this!leak!they!will!be!the!leader!amongst!their!differentiated!competitors.!!Chester Chester!is!attempting!to!compete!with!Andrews!and!Digby!with!their!differentiated!products.!They!enjoyed!a!43.4%!contribution!margin!in!America!and!32.65%!in!Europe.!They!hold!a!small!portion!of!America!(9.3%)!and!moderate!in!Europe!(19.3%).!Their!high!prices!and!multiple!products!are!key!to!their!Focused!Differentiation!strategy,!similar!to!Andrews.!Increasing!

their!product!performance!could!be!the!key!to!Chester’s!future!their!success.!Digby Digby!currently!holds!the!highest!contribution!margin!in!all!three!markets;!48.61%!in!America,!46.39%!in!Europe!and!25.05%!in!Asia!Pacific.!Digby!does!not!follow!a!cost!leader!or!differentiation!strategy.!They!currently!have!one!product,!Daze,!that!is!priced!the!highest!of!all!the!products!in!all!of!the!markets.!In!addition!to!their!low!labor!costs!and!high!material!costs,!they!have!achieved!an!overwhelming!net!profit!of!$12,120,553.!While!their!strategy!of!pricing!their!product!high!is!increasing!their!profit,!their!customer!satisfaction!in!budget!is!0!in!America,!Europe,!and!Asia!Pacific!compared!to!Baldwin!holding!the!highest!customer!satisfaction!in!America!at!21.!Erie Erie’s!price!places!them!in!competition!with!the!highest!performance!companies!in!every!market.!However,!their!product!is!middle!of!the!road!when!it!comes!to!quality.!They!are!enjoying!a!high!contribution!margin,!but!customers!are!not!getting!their!equitable!stake!of!value.!Erie!is!also!placing!most!of!their!focus!on!their!product!Eat!in!Europe.!They!are!dominating!the!market!here!with!both!the!highest!market!share!and!net!profit.!However,!they!lost!$1.5!million!last!year!in!America!and!are!in!serious!financial!America!and!are!in!serious!financial!problems!with!

! 13!

!!! !

a!looming!$19!million!emergency!loan.!Currently!they!hold!a!high!level!inventory!in!all!markets.!Erie’s!new!product,!EArm,!broadens!their!competitive!advantage!and!gives!them!a!Differentiation!strategy.!Their!Differentiation!strategy!will!help!the!company!pay!off!their!expenses!in!the!long!run.!!Ferris Ferris!is!a!strong!competitor!in!the!costYleadership!area!of!the!industry. Their!dedication!to!increasing!automation!and!capacity!has!given!them!a!competitive!advantage!in!the!industry. They!currently!have!two!products,!Fierce!and!Fast.!Utilizing!these!two!products,!they!have!achieved!market!share!with!both!costYleadership!and!differentiated!customer!groups!in!America!(35.6%)!and!Europe!(30.1%).!Luckily!they!have!decided!to!not!!compete!in!Europe,!giving!Baldwin!the!!

Looking Forward Baldwin’s!largest!opportunity!is!to!take!control!of!the!budget!segment!in!Europe.!As!the!only!cost!leadership!company!in!the!market,!our!unique!business!strategy!has!placed!us!in!a!potentially!favorable!position.!Harnessing!this!potential!and!capitalizing!on!this!opportunity!will!be!the!main!objective!of!Baldwin!strategy.!Providing!value!at!a!reasonable!price!will!be!essential!in!our!pursuit!to!achieve!higher!market!share!in!the!Americas.!Allowing!our!new!product,!Brown,!to!become!our!performance!product!as!Ferris!has!done!will!be!the!key!to!satisfying!an!even!larger!amount!of!customers.!As!a!company!driven!by!the!needs!of!people,!placing!our!devices!in!as!many!hands!as!possible!will!be!the!ultimate!measure!of!our!success.!!

opportunity!to!become!the!costYleader.!

Strategic Position &

Competitive Scope

! 14!

Capacity and Automation At#Baldwin,#we#do#the#best#we#can#to#keep#our#prices#low#for#our#customers.#Our#capacity#and#automation#may#be#lower#than#our#customers,#but#our#customer#satisfaction#rankings#remain#high.#

Competitors Capacity and Automation

! ! ! !Company:) Capacity) Automation)Andrews) 2,355! 4.1!

!Baldwin) 2,200! 3.3!!Chester) 2,250! 3.5!!Digby) 2,800! 4.7!!Erie) 2,500! 3.5!!Ferris) 3,000! 5.0!!!

!

0!500!

1000!1500!2000!2500!3000!3500!4000!4500!5000!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Capacity!

Capacity!

Ind.!Avg.!Capacity!

0.0!

1.0!

2.0!

3.0!

4.0!

5.0!

6.0!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Automation!

Automa]on!

Ind.!Avg.!Automa]on!

! 15!

Future Goals We#plan#to#continue#investing#at#capacity#such#that#we#can#keep#up#with#growing#demand#for#our#products.#We#also#plan#to#continue#to#produce#very#near#our#capacity#and#outsource#the#remaining#demand.#We#believe#this#strategy#will#keep#our#business#running#most#efficiently#with#the#means#we#earn.#

Production and Outsourcing To#meet#the#high#demand#for#our#products,#our#outsourcing#has#increased#in#recent#years.#

Inventory Levels To#prevent#the#shortage#that#Baldwin#experienced#in#2016#from#reoccurring,#our#goal#will#be#to#keep#an#adequate#amount#of#inventory#at#all#times#without#overstocking.#

Contribution Margin Baldwin#has#caught#up#with#the#industry#average#in#2017#and,#we#plan#on#surpassing#the#competition#in#the#future.#

0!

2000!

4000!

6000!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Production and Outsourcing!

Produc>on! Outsource!

0!100!200!300!400!500!600!700!800!900!

1000!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Inventory !

Asia! Europe! America!

0%!

10%!

20%!

30%!

40%!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Contribution Margin!

Our!CM! Ind!Avg!

! 16!

Financial Snapshot

Americas

Revenue

Europe

Baldwin#achieved#the#most#market#share#of#the#genetic#testing#industry#in#Europe#during#2017#through#2018.#Baldwin#is#currently#not#in#the#Asian#market,#and#has#no#immediate#plans#to#enter#due#to#steep#competition.#Reclaiming#a#larger#share#in#the#Americas#and#Europe#are#our#company’s#main#focus.#

!$Y!!!!

!$10,000,000!!

!$20,000,000!!

!$30,000,000!!

!$40,000,000!!

!$50,000,000!!

!$60,000,000!!

!$70,000,000!!

!$80,000,000!!

!$90,000,000!!

!$100,000,000!!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Baldwin!

Industry!Average!

$0!!

$10,000,000!!

$20,000,000!!

$30,000,000!!

$40,000,000!!

$50,000,000!!

$60,000,000!!

$70,000,000!!

$80,000,000!!

2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Baldwin!

Industry!Average!

! 17!

Book Value

Share Price

Earnings Per Share

!$Y!!

!$4!!

!$8!!

!$12!!

!$16!!

2014!

2015!

2016!

2017!

2018!

2019!

2020!

2021!

2022!

Baldwin!

Industry!Average!

!$Y!!!$10!!!$20!!!$30!!!$40!!!$50!!!$60!!!$70!!!$80!!

2014!

2015!

2016!

2017!

2018!

2019!

2020!

2021!

2022!

Baldwin!

Industry!Average!

Y$2!!

!$Y!!

!$2!!

!$4!!

!$6!!

!$8!!

2014!

2015!

2016!

2017!

2018!

2019!

2020!

2021!

2022!

Baldwin!

Industry!Average!

! 18!

Baldwin Products !

Baker Baker is a product that provides customers with a sense of certainty and stability. This product is among the leaders in its class with the third highest customer satisfaction rate in the budget segment of the industry. Baker also ranked in the top three of units sold in the budget segment. Our future goals for Baker are to create a top tier budget product for the customer who appreciates higher quality at a reasonable price. Baker’s age is kept low at 1.9 years, as it is constantly being updated to reflect our company’s emphasis on ingenuity and innovation. As a result, Baker’s price in the Americas has risen by seven dollars and by five euros in Europe to compensate for such improvements. With new speed and accuracy levels of 7.9, Baldwin is confident that Baker will soon rise above the budget competition.#

Brown Brown is our secondary product. Its main purpose is to allow us to cushion the effects of the small contribution margins necessary to be competitive in the cost leadership segment. With Brown in our product mix, we can constantly have a product priced to be competitive in the Budget segment, while also maintaining a product with higher speed and accuracy specifications and a higher contribution margin. Due to the costs of research and development, of both time and money, Brown has not yet been produced to our desired specifications. On September 10, 2019, an update will take effect to increase both its speed and accuracy levels to 7.4. This will place it perfectly in the Budget segment. From this point forward, either Brown or Baker will always be placed to perfectly capture the Budget segment, while the other will be placed slightly higher, with a higher price, to capture a higher contribution margin.#

0!

1000!

2000!

3000!

4000!

5000!2014!

2015!

2016!

2017!

2018!

2019!

2020!

2021!

2022!

Units Sold!

Baldwin!

Industry!Average!

! 19!

Regions & Markets !

We have seen a shift in recent years with companies transitioning to an integrated strategy rather than strictly competing in cost leadership or differentiation. This has led to more intense competition internationally. Andrews, Chester, and Digby keep their core business in differentiated products. This allows them to enjoy high margins and profits. Andrews and Chester have developed multiple products allowing them to compete in multiple segments in all markets. Andrews is capitalizing on this integrated strategy enjoying a comfortable 21% of global sales. Digby is sticking to their core product, which has earned them 14% of international business.

Multiple companies are now competing in the cost leadership sector, but none are enjoying the success of Ferris. It currently has the highest automation and the highest capacity levels, which allows it to keep prices low and maintain a healthy contribution margin. It has been exclusively competing in the American and Asian Pacific markets, but has recently made a move for Europe. With 26.6% of global sales, it is safe to say that Ferris is the current world leader in genetic testing devices.

We are in the process of implementing our second product, Brown. Utilizing it will allow us to achieve higher contribution margins in America and Europe going forward into the future.#

0%!

5%!

10%!

15%!

20%!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Market Share in Americas !

0%!

10%!

20%!

30%!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Market Share in Europe!

! 20!

Bond & Stock Analysis

At#the#end#of#the#2019#fiscal#year,#

Baldwin#had#a#modest#amount#of#

$15,179#in#total#liabilities.#This#is#

almost#half#of#the#industry#average#

of#$29,022.50.#We#primarily#used#

debt#for#expansion#in#the#early#

stages#of#the#company#in#order#to#

serve#our#customers#in#an#efficient#

and#quick#manner.#Our#plan#going#

forward#is#to#retire#debt.!Baldwin’s#small#amount#of#debt#has#helped#

the#company#maintain#a#solid#

financial#position#over#the#years.!

Baldwin#currently#has#$1,518#in#interest#expenses#versus#the#$3,902#industry#average.##Over#time#the#

gap#between#our#interest#expenses#and#that#of#our#competitors#has#widened,#placing#us#well#below#the#

industry#average.##Our#interest#expenses#have#been#consistently#decreasing#at#a#rate#that#we#will#

continue#to#uphold.#

!$Y!!

!$1,000!!

!$2,000!!

!$3,000!!

!$4,000!!

!$5,000!!

!$6,000!!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Interest Expense!

Baldwin!

Industry!Average!

!$Y!!!!

!$10,000!!

!$20,000!!

!$30,000!!

!$40,000!!

!$50,000!!

Debt Analysis!

Baldwin!

Industry!Average!

! 21!

√

Our#current#leverage#is#1.5#versus#a#1.64#industry#average.#Stock#was#issued#in#2015#to#launch#business#functions,#but#none#has#been#issued#since.##We#have#not#paid#dividends#at#this#point#because#our#focus#is#on#the#expansion#of#our#business.#We#look#forward#to#bringing#even#more#value#to#our#stockholders#by#offering#dividends#in#the#future.#Our#plan#for#our#shareholders#is#to#offer#dividends#by#2022#to#thank#them#for#their#dedication#and#investment#in#our#company.#####

1.3!

1.4!

1.5!

1.6!

1.7!

1.8!

1.9!

2!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Leverage !

$0!

$1,000!

$2,000!

$3,000!

$4,000!

$5,000!

$6,000!

$7,000!

2014! 2015! 2016! 2017! 2018! 2019! 2020! 2021! 2022!

Stock Issued !

Baldwin!Stock!Issued! Industry!Average!

! 22!

Wyesha Dillard,!Evans,)GA)Chief)Marketing)Officer)(CMO))BBA)Management)Wyesha!Dillard!is!the!Chief!Marketing!Officer!for!Baldwin.!Her!responsibilities!include!all!aspects!of!product!awareness,!accessibility,!and!regional!placement.!She!is!a!fourth!year!student!at!UGA.!!

The Baldwin Team

Caleb Meek,)Jefferson,)GA)Chief)Financial)Officer)(CFO))BBA)Management))Caleb!Meek!is!the!Chief!Financial!Officer!for!Baldwin.!His!responsibilities!include!overseeing!all!financial!aspect!of!the!corporation!and!ensuring!that!the!Baldwin!is!always!in!a!safe!and!successful!financial!position.!

Elaina Riggs,!Knoxville,)TN)Chief)Financial)Officer)(CFO))BBA)Management)Elaina!Riggs!is!the!Chief!Financial!Officer!for!Baldwin.!Her!responsibilities!include!overseeing!all!financial!aspect!of!the!corporation!and!ensuring!that!the!Baldwin!is!always!in!a!safe!and!successful!financial!position.!She!brings!a!year!experience!as!the!VP!of!Finance!for!Pi!Beta!Phi!GA!Alpha!Sorority.!!Jackie Byrd Chief)Operating)Officer)(COO))BBA)Management)Jackie!Byrd!is!Chief!Operating!Officer!for!Baldwin!Corp.!Her!responsibilities!include!all!aspects!of!production,!including!plant!capacities,!outsourcing,!and!inventory!maintenance.!She!is!a!fourth!year!student!at!the!University!of!Georgia.! !John Walrath, Lawrenceville,)GA Chief)Technology)Officer)(CTO))BBA)Economics)John!Walrath!is!Chief!of!Technology.!!His!basic!responsibilities!include!oversight!of!R&D!of!tech!heavy!products!as!well!as!ensuring!efficiency!of!machinery!&!management!of!all!IT!departments.!! !

! 23!