It definitely needs some help, but you're starting out with a great little guitar.
There are two things to be concerned about.
The first is the structural. Repairing the cracks is an obvious first step, but to make the guitar play as well as it can, things like string height, neck geometry, intonation, etc., all need to be evaluted.
The second has to do with cosmetics. It looks like the lacquer finish may have been sanded off the sides, and there looks to be some loss on the neck as well. How much of that you want to have dealt with is your call, though the lacquer protects the guitar as well as helping its appearance.
For all that you need the advice of an experienced luthier. I don't know who might be in your area, but someone here will know, so stay tuned.
In any case, good luck -- that's a great gift for the wife!
Glenn