1847 Holdings LLC · OTC:LBRA
1847 — Investor Presentation (August 2020)
17 slides from 1847's investor presentation, Aug 28, 2020
Slide 1: A Uniquely Diversified Public Approach to Private Company Ownership
GOEDEKER’'S Asien’s APPLIANCE Neese Inc. Sales - Service - Rentals A Uniquely Diversified Public Approach to Private Company Ownership
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation contains certain forward-looking statements within the meaning of the federal securities laws. These statements may be made a part of this presentation or by reference to other documents we file with the SEC. Some of the forward-looking statements can be identified
Slide 3: Quote on buying unpopular, mundane businesses
It's not always easy to do what's unpopular, but that's where you generate above average returns. Buy businesses that look mundane to narrow-minded investors and hang on until their real value is recognized.
Slide 4: Corporate Overview
Corporate Overview o Owner and manager of a diverse group of lower middle-market businesses that have traditionally been owned by private investors, headquartered in the US, operating across an array of 1847 industries = Current and future subsidiaries are niche market leaders that generate high fre
Slide 5: Investment Highlights
Investment Highlights Growth and Income - fueled by the diversified cash flows from 1847's current and future controlled operating subsidiaries Access to a Unique Asset Class - provided through the 1847 strategy of acquiring leading lower middle-market niche businesses (Positive EBITDA < or = $2.0MM
Slide 6: Peer Comp Performance
Peer Comp Performance Compass Diversified Holdings (NYSE: CODI), with current market cap in excess of $955 million, has proven the positive return possibilities available for a “true” public-private holding company platform while seeking acquisitions in the highly competitive middle market category.
Slide 7: Acquisition Strategy & Philosophy
Acquisition Strategy & Philosophy = Mission - preferred partner for today’s “nano-cap” companies in the U.S. " Objective - acquire stable businesses at accretive pricing to our existing book value with limited risk of cash flow volatility and technological disintermediation = Acquisition Size and St
Slide 8: Acquisition Criteria
Acquisition Criteria Y¥ Targeting lower middle-market (LMM) companies with revenues of $7.5M+ and historically consistent cash-flow positive operations Y Positive EBITDA less than $2M in trailing 12-month period Y Clearly identifiable “blueprint” for growth with potential breakout growth driven by i
Slide 9: Current Subsidiaries
Current Subsidiaries Neese Inc. Sales - Service - Rentals Headquartered in Grand Junction, lowa, Neese Inc. has provided a wide array of products and services for the agricultural industry for over 28 years. Neese's largest and fastest growing revenue source is providing waste disposal and land appl
Slide 10: Deal Flow Generation
Deal Flow Generation OUTBOUND CALLING DIGITAL OUTREACH Q Sophisticated database construction | @ ~3,000 person mailing list Q ~1,000 intermediaries from 700 firms @ Systematic review and update of list annually Q Systemic review and annual list update Q Develop specific marketing brochures Q 4profes
Slide 11: Acquisition Process
Acquisition Process Financing Documentation | Investment Internal : - Committee Dialogue _— Post-LOI | | Diligence Fund and Close
Slide 12: Portfolio Company Management
Portfolio Company Management o Weekly dialogue with management o Extensive strategic planning sessions o Quarterly board meetings o Active involvement of operating partners o Development of operating metrics, sales and financial reporting packages o Establish authority matrices and other governance
Slide 13: Financial Highlights
Financial Highligh Diversified revenues and customer base Total Revenues {in millions) $50 2019 Segment Revenue 40 (audited) $30 $20 $10 , = = " 2017 2018 2019 Asien's Appliances = Goedeker's Quarterly Revenue m Neese {in millions) $20 $15 $10 $0 3Q19 4Q19 1020 Future acquisitions expected to furthe
Slide 14: Value Creation
Value Creation Drive Deal Flow Proactively drive deal flow with a willingness to investigate anything and everything without preconceived bias Buy Right Acquire stable, mature businesses at attractive prices Build to Own in Perpetuity Institute return driven metrics/accountability and introduce reso
Slide 15: Senior Leadership Team
Senior Leadership Team Ellery W. Roberts, Founder & CEO 18 years of private equity investing experience; directly involved in $3+ billion of transactions. Formed RW Capital Partners LLC, an investment manager, approved by the Investment Committee of the U.S. Small Business Administration in 2010 to
Slide 16: Corporate Structure
Corporate Structure Public Unit Holders zg a3 3 as Management Services Credit Agreement Facility 1847 ‘And Profit Allocation eatey Holdings LLC Controlling Equity Interests, | Offsetting Management | Services | Agreements And Transaction Services Agreements
Slide 17: Corporate Headquarters and Investor Relations Contact
OTCQB: EFSH GOEDEKER'S Asien’s APPLIANCE Neese Inc. Sales - Service - Rentals Corporate Headquarters 1847 Holdings LLC 590 Madison Avenue, 21st Floor New York, NY 10022 Phone: 212.417.9800 Investor Relations Contact Craig Brelsford RedChip Companies Phone: 407.571.0902