INVESTOR PRESENTATION - June 2021 - cloudfront.net
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INVESTOR PRESENTATION
June 2021
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Forward Looking Statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Forward-looking statements are neither historical facts nor assurances of future performance.
Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies,
projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such
as: "anticipate," "believe," "project," "expect," likely," "may," "should," "will" and similar references to future periods.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are
difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those
indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that
could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among
others, the following:
• Public health crises, epidemics and pandemics such as the COVID-19 pandemic
• The extent of the impact of theCOVID-19 Pandemic, including the duration, spread, severity, and any recurrence of the COVID-19 pandemic, the
duration and scope of related government orders and restrictions, the impact on our employees, and the extent of the impact of the COVID-19
pandemic on overall demand for our services and products
• Local, regional, national and international economic conditions that have deteriorated as a result of the COVID-19 pandemic, including the risks
of a global recession or a recession in one or more of our key markets, the impact of these economic conditions may have on us and our
customers and our assessment of that impact.
• The impact of the COVID-19 pandemic on our supplies, including disruptions and inefficiencies in the supply chain.
Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date
on which it is made. We undertake no obligation to publicly update any forward looking statement whether as a result of new information, future
developments or otherwise, except as required by law.
This presentation includes information supplied from sources we believe to be reliable but we cannot guarantee accuracy
2
is to cultivate a vibrant, welcoming and
distinctive lifestyle — inspired by the
culture, spirit and artistry of local
communities, and embodied in our
properties, products and experiences —
that people will make their own,
permanently.
3
OVERVIEW
Gaucho Group Holdings, Inc. is a rapidly growing, Symbol VINO
e-commerce driven holding company, with a Exchange NASDAQ
concentration on fine wines, luxury real estate,
Stock Price (a/o 6/3/21) $3.6
leather goods and accessories.
Market Capitalization $30.4 Million
Shares Outstanding 7.4 Million
Debt to Equity Ratio 38%
Debt to Asset Ratio 14%
We are home to six exceptional brands rooted in complementary
experiential luxury lifestyle sectors.
We seek to become a world class provider of luxury brands and e-commerce,
including direct to consumer Fine Wines, Leather Accessories and Fashion,
as well as hospitality and experiential projects such as Luxury Boutique
Hotels and a 4,138 acre Luxury Vineyard Real Estate development.
4
SIGNATURE ASSETS
LUXURY LIFESTYLE BRANDS
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MARKET OPPORTUNITY
LUXURY LIFESTYLE BRANDS
• Argentina can benefit from • The global e-commerce market • The global market for Luxury
potential tourism boom for spirits and wine is expected to Goods in 2020 was estimated
post pandemic – surpassing nearly double in 2021 at $349B
2 Billion USD by 2022
• Wine market in the U.S. alone • Expected to grow to $403B by
• Tourists can spend more estimated at $88B in 2020 2027, a 15.5% increase
money at hotels,
restaurants and other • U.S. Alcohol e-commerce market
attractions with a favorable value grew by 80% in 2020
exchange rate • U.S. on track to be biggest alcohol
e-commerce market by 2021
6
MARKET OPPORTUNITY
GLOBAL GROWTH OF E-COMMERCE
FOR LUXURY ITEMS & SPIRITS
7
LUXURY’S FUTURE IS DIGITAL
TAKING ADVANTAGE OF THE GLOBAL GROWTH OF E-COMMERCE
AND THE ACCELERATED DIGITAL ECONOMY
COVID-19 A CATALYST FOR E-COMMERCE GROWTH* DELOITTE ON CHANGING
CONSUMER BEHAVIOR, AND THE
• COVID-19 boosted e-commerce revenue an IMPACT OF COVID-19:
estimated $174.87 billion in 2020
• DIGITAL SALES GREW 18% IN Q1 2020
COMPARED TO Q1 2019
• Consumers spent $861.12 billion online with U.S.
merchants in 2020 • TRAFFIC GREW 13% IN Q1 2020
COMPARED TO Q1 2019
• U.S. online spending up 44.0% year over year • DESKTOP TRAFFIC GREW BY 9% IN Q1
2020.
• U.S. online spending up from 15.8% in 2019 and 14.3%
• 14% OF SHOPPERS MAKE PURCHASES
in 2018
THROUGH SOCIAL MEDIA
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*SOURCE: https://www.digitalcommerce360.com/article/us-ecommerce-sales/
https://www2.deloitte.com/content/dam/Deloitte/il/Documents/consumer-business/Future_Retail_Tech_2020.pdf
FROM WINE & SPIRTS, FASHION
TO EXPERIENTIAL LUXURIES
Experiences are defining today’s luxury market, as even the top luxury goods conglomerates have
become more known for embracing experiential luxuries such as hospitality, travel and leisure.
(PPRUY) (LVMUY) (CFRHF)
Market Cap: Market Cap: Market Cap:
USD 82 Billion USD 318.7 Billion USE 53.62 Billion
9
*GAUCHO GROUP HOLDINGS, INC. IS NOT THE COPYRIGHT HOLDER OF THESE IMAGES AND THERE IS NO RIGHT TO REPRODUCE OR OTHERWISE USE THESE IMAGES FOR COMMERCIAL PURPOSES.
LIFE, LIBERTY, & THE PURSUIT OF HAPPINESS
IN A POST COVID-19 WORLD
VIDA, AFTER THE PANDEMIC
HEALTH, WELLNESS + VIDA VIDA @ ALGODON WINE
ESTATES, VINEYARD LIVING:
• Amid the Covid-19 pandemic, health and wellness have
• ALGODON VINEYARD HOMES CAN BE
become more important than ever before
BUILT FOR CENTS ON THE DOLLAR
• Places far from densely packed cities are drawing people • ALGODON HOMES CAN BE RENTED
eager to escape from infection hot spots OUT FOR PASSIVE INCOME
• A POST COVID-19 TOURIST BOOM
• Working from anywhere allows families to move further
COULD BE A RENAISSANCE OF
away from cities, where they can afford a bigger home in
CULTURE & GROWTH IN ARGENTINA
a nice community
• The idea of a bigger house with a beautiful backyard,
surrounded by nature is more appealing than ever before
10DEVALUATION OF THE PESO
TAKING ADVANTAGE OF THE DEVALUED PESO’S
EFFECT ON BUSINESS AND TOURISM
PRODUCTION, EXPORTS AND TOURISM ADVANTAGES OF PESO
DEVALUATION:
• By producing wine and other goods in Argentina, we
pay for manufacturing and labor in pesos • LOWER (COGS) COST OF GOODS SOLD
• LOWER OVERHEAD & LABOR
• We can sell to consumers at a favorable exchange rate
• INCREASED MARGINS ON EXPORTS
in USD to the U.S. and the world
• INCREASED TOURISM FROM
NEIGHBORING BRAZIL AS WELL AS
• Tourists can spend more money at hotels, restaurants
FROM THE U.S. AND E.U.
and other attractions with a favorable exchange rate
11WORLD LUXURY STAGE
LUXURY LIFESTYLE BRANDS
Lacking Widespread Global Presence LUXURY LIFESTYLE MARKETS
Buenos Aires lacks presence in the Fine Wines
global luxury lifestyle market.
Luxury Real Estate
• The “Paris of South America”
• Ranks as the best city to live in Latin America Leather Accessories & Fashion
• Culturally vibrant, creative, entrepreneurial
Home & Living
• Fine art, fashion, & architecture
• World’s best steak, tango & leather
Hospitality
• Highly educated population
Olive Oil
Popular American Consumer
Luxury Lifestyle Cities MILAN PARIS TOKYO NEW YORK LONDON
12GROWTH STRATEGY
SCALEABLE BUSINESS MODEL:
FOCUS ON E-COMMERCE: • Our existing brands are already built: the biggest
path to execution is done
• We are positioned to take advantage of e-
commerce global growth • Increase production of wines, home goods and
leather goods
• COVID-19 boosted e-commerce global
revenue an estimated $174.87 B in 2020 • Real estate appreciation + interest income on
financed lots + maintenance income for each lot
• U.S. spending up over 44% Y/Y sold + develop global leads via e-commerce
• Potential partnership with global hospitality
brands for future development
PESO DEVALUATION:
• We produce wines and other goods in
Argentina = pay for manufacturing and labor
in devalued peso ACQUISITIONS:
• We can then sell to global consumers at a • We seek to grow through acquisition by
favorable exchange rate utilizing a “roll up strategy” to acquire
• Exchange rate impacts favorably on tourism, additional luxury brands synergistic with our
benefiting our hospitality assets. own to create long term value.
13LEVERAGING E-COMMERCE
TO ACHIEVE GLOBAL SCALE
14LEVERAGING E-COMMERCE
Algodon can now accept bitcoin as
payment to purchase lots
• Bitcoin is a catalyst for growth of
the consumer and demands of the
future
• Real estate transactions are
evolving especially due to Covid-19
and Bitcoin makes it easier to buy
• Bitcoin can expand our reach with
millennials who primarily move
with Bitcoin
15COMPETITIVE ADVANTAGES
WHY US?
Our companies are built, up and running. Our leather goods & accessories brand has a
totally unique voice in the market:
• Buenos Aires positioned to become the new
• Draws on the cosmopolitan vibe of Buenos
global luxury destination for a post Covid-19
Aires and the spirit of traditional gaucho
world
culture
• Huge barrier to entry for anyone entering
• We are one of the only luxury fashion brands
the Buenos Aires market now
out of South America with the potential for
• We have been there since 2007 global scale
Our luxury vineyard real estate project is
Our wines have a unique story:
incredibly unique.
• We are introducing the world to Bonarda,
“the new Malbec” and 2nd most widely • One of the last affordable places to purchase
planted grape in South America. We are one ample vineyard real estate in any leading
of the only wineries in the world producing World Wine Center
high quality Bonarda varietals and blends.
• Lots available for a fraction of the cost of
• Our oldest vineyards were planted in 1946 comparable properties in Napa, Tuscany or
Provence
16BRAND PARTNERSHIPS
BOOSTING BRAND EQUITY & CREDIBILITY
THROUGH LUXURY BRAND PARTNERSHIPS
17GAUCHO HOLDINGS’ HISTORICAL MILESTONES
1819
BARRIERS TO ENTRY
THE ADVANTAGES OF BEING ESTABLISHED
There is a huge barrier to entry for ANYONE entering
the Buenos Aires market now, but we have been there
since 2007.
• Diversified portfolio
• All companies are built, up and running
BUENOS AIRES
• Synergies among our assets: joint resources allow us to streamline
operations across platforms
• Supporting megatrends especially during the pandemic: strong demand
of luxury goods, e-commerce, wine escape / hideaways
• Wine and leather accessories brands ready for GLOBAL scale
20MEET THE TEAM
LUXURY LIFESTYLE BRANDS
Scott L. Mathis Maria I. Echevarria Sergio Manzur Odstrcil Rick Stear
CHAIRMAN & CEO CORPORATE CFO CFO & COO OF DIRECTOR OF
Scott is an entrepreneur Maria has over 21 years of ARGENTINA MARKETING
and an accomplished experience in Accounting, SUBSIDIARIES Rick has over 14 years of
senior executive with over Compliance, Finance, Sergio is a Certified Public experience in luxury
25 years of professional Information Systems and Accountant whose brand development,
experience in the financial Operations, including 10 professional experience business marketing and
industry. He has extensive years in the banking includes administration communications. He
experience in investment industry where she and management manages all marketing,
and management related specialized in Mortgage positions for companies in branding, and corporate
to Argentina’s real estate Quality Control, Argentina, Brazil, Mexico communications
development, hospitality Compliance, Financial and Chile. strategies for the
and wine sectors. Analysis and Mortgage company, its subsidiaries
Accounting. and wholly owned
businesses.
21WHY GAUCHO HOLDINGS?
LUXURY LIFESTYLE BRANDS
• Our existing award-winning luxury brands are already • Buenos Aires lacks presence in the global luxury lifestyle
built: the biggest path to execution is done. market, but we have been there since 2007.
• We have proven, scalable business models. • We can leverage the arbitrage between the USD and the
devalued peso (+ lower cost of goods & labor)
• We are poised to take advantage of the accelerated
global growth of e-commerce. • Roll up strategy to acquire additional luxury brands
synergistic with our own to create long term value.
For Additional Information:
Scott Mathis
Gaucho Group Holdings, Inc.
smathis@gauchoholdings.com
22THANK YOU
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