UPDATED INVESTOR PRESENTATION The Hydroponics Company (ASX:THC), in - PDF document

www.thcl.com.au ASX RELEASE (6 th June 2017) UPDATED INVESTOR PRESENTATION The Hydroponics Company (ASX:THC), in accordance with ASX Listing Rule 3.1, provides an updated Investor Presentation. This presentation is being used for current roadshows and investor briefings by the Company. For further information, please contact : Henry Kinstlinger, Company Secretary The Hydroponics Company Limited Level 2, 131 Macquarie Street, Sydney NSW 2000 Australia P: +61 2 9251 7177 M: +61 418 613 028 E: henryk@thcl.com.au The Hydroponics Company Limited Level 2, 131 Macquarie Street, (ASX: THC) ACN: 614 508 039 Sydney NSW 2000 Australia

ASX:THC A l e a d i n g , g l o b a l c a n n a b i s b u s i n e s s Investor Presentation June 2017

DISCLAIMER The material in this presentation ( ma material ) is not and does not Such statements relate to future events and expectations and, as such, constitute an offer, invitation or recommendation to subscribe involve known and unknown risks and uncertainties. Actual events and for, or purchase any security in The Hydroponics Company results may differ materially from those expressed or forecasted in Limited ( TH THC ) nor does it form the basis of any contract or forward-looking statements due to a number of factors. The principal commitment. THC makes no representation or warranty, express important risk factors that could cause THC’s actual performance and or implied, as to the accuracy, reliability or completeness of this future events and actions to differ materially from such forward-looking material. THC, its directors, employees, agents and consultants statements, include, but are not limited to, continuing volatility in the shall have no liability, including liability to any person by reason capital or credit markets and other changes in the securities and capital of negligence or negligent misstatement, for any statements, markets, changes in market prices of THC’s investments, the occurrence opinions, information or matters, express or implied, arising out of one or more catastrophic events, such as an earthquake, hurricane, of, contained in or derived from, or for any omissions from this or act of terrorism, changes in laws or regulations, changes in income material except liability under statute that cannot be excluded. tax laws, and changes in general economic and market factors that Statements contained in this material, particularly those affect the prices of securities or the industries in which it does business. regarding possible or assumed future performance, costs, This presentation includes certain statements, estimates and dividends, production levels or rates, prices, resources, reserves projections that rely upon various assumptions. Those assumptions may or potential growth of THC, industry growth or other trend or may not prove to be correct. The Presentation does not purport to projections are, or may be, forward looking statements. contain all the information that a prospective investor may require. The information may not be appropriate for all persons, and it is not possible for The Hydroponics Company Limited to have any regard to the investment objectives, financial situation and particular needs of each recipient who reads or uses this information. 2

THE HYDROPONICS COMPANY CANNABIS IS THE WORLD’S NEW HIGH GROWTH SECTOR Medi Medicina nal canna nnabi bis s di divisi sion n – New technol olog ogy in water pumps, , water pharmaceut pha eutical model del for Aus Australia pur purification n and nd canna nnabi bis s genet genetics targeting est. $100m market ta End-to En to-end end cover erage e of canna nnabi bis s ma markets with significant synergies Hydr Hy dropo poni nics s di divisi sion n with h more e tha han n 5 5 years profitable trading ye Mo More e tha han n 17 17 yea ears s of canna nnabi bis s growing gr ng exper perienc ence Greenhouse div Gr ivis isio ion enab ablin ling next- Po Positioned for future acquisitions ge generat ation indoor farming in internatio ionally ally 3

SHARE STRUCTURE The Hydroponics Company Limited at 1 June 2017 Sh Share Price Sh Shares on Issue Fr Free Trading Es Escrow owed ed Shares es Ma Market Cap Top 20 To Number of Nu Sh Shares Sh Shareholders THC: TH C: 30c 30c 104.1 104.1 47.1 47.1 57.0 57.0 $31.2 $31.2 46.3% 46.3% 1622 1622 TH THCO: million mi million mi mi million mi million (IPO: (I : 752) 7. 7.3c 3c ASX: THC 4

CANNABIS IS A THRIVING OPPORTUNITY US US USA Legal Cannabis market 29 US States + DC me medicinal cannabis legalised (medicinal + recreational) estimated 7 US States recreational ma marijuana legalised US$20B by 2021 US 2021 Ca Canada US Cannabis-related estimated Medicinal ca cannabis legalised industry revenues 1 July 2018 le legis isla latio ion US$24B-US US US$44B in 2020 of recreational marijuana 89% of the US 89% Australia Au support doctor recommended medicinal cannabis Great demand po potent ential al 1. 1.8m 8m pa patient ents with neuropathic pain 5

PORTFOLIO APPROACH TO CANNABIS Can Cannab abis is is is a a new inve in vestment sector Growth Gr Options fo Op for diversifi fication op oppor ortunities are • Self managed diversified Why Diversify? Wh globa gl bal and nd unev uneven en portfolio • ETF in medical marijuana Many Ma ny list sted ed compa pani nies es Mul Multipl ple e busi business ness types ypes ha have e no no rev evenue enue in in can annab abis is spac ace 6

PORTFOLIO APPROACH TO CANNABIS Continued Multiple sector Exposure to USA, Canada, exposure, each with Separate divisions for farm Central America, Europe, Expansion through new high growth potential establishment, growing supplies Australia technology introduction and medicinal cannabis Profitable Positioned for future hydroponics division acquisition and further 7 positive diversification

A VERTICALLY INTEGRATED, DIVERSIFIED BUSINESS The Hydroponic Th ics Company Lim imite ited (THC) IP IP Res esea earch and Hydroponic Hy Greenhouse Design, Gr Devel Dev elopmen ent Equipment Eq Construction and Managem Co emen ent A&B A& B Collaboration Ca Canndeo eo Limited ed Cr Crystal Mountain Products Design and Construction Medicinal Cannabis Distribution and Wholesale of Greenhouses Pegasus Agriculture Pe Dr Dragon Vision Am American Indoor Farming Epigenetic Process IP Acquisition Manufacturing Large Scale Greenhouses Su Supa-St Stelth Pu Pumps Australia Au Marketing Agreement As Asia Am Americas In Inna Water er Marketing Agreement Canada Ca 8

CANNDEO Gr Growin ing & Ex Extrac actio ion Te Technology Converting unique intellectual property in cannabis breeds and Product Pr extraction technology to Fu Future IP De Development De Delivery approved products for the Research Re Me Metho hods ds Australian market Sa Sales of Australian Aus Pr Proprietary Ma Manuf nufactur uring ng Medicines Medi nes This division aims to lead the development of therapeutically superior, paramount quality and cost effective medicines derived from Ca Cannabis sativa. 9

A NEW CLASS OF MEDICINAL PRODUCTS Australia Clear strategy for bringing Collaborative R&D discovery medicinal cannabis to the projects for medicinal cannabis Australian market, estimated at $100 $100-400m 400m Target multiple markets with high purity cannabidiol (CBD) Pursuing a pharmaceutical Production under Government model licensing program A A ne new class of medi dicina nal pr produc ducts +17 years of Ca Cannabis sativa targeting dementia, neurological, breeding, variety selection and epilepsy and other disorders growth management 10

CANNABIS CBD (Ca CBD Cannabidiol) ) An Anxiolytic CB 1 (+)5- HT 1A (+) Antipsychotic TRPV! (+) An ∆ 9 TH CBD CBDV THCA An Antiepileptic [Ca 2+ ] ↓ Bo Bone-st stimulant Antiproliferative An Neuroprotective [Ca 2+ ] I ↓ ROS ↓ Ne Antispasmodic An Vaso Va sorelaxant PPAR Y (+) Antispasmodic An An Antiproliferative Anti-is An ischemic ic 5-HT 1A (+) Diverse Div An Antiproliferative, anticancer [Ca 2+ ] I ↓ ROS ↓ CB 2 (+) Id-1 ↓ CBC CBC Me Medi dical Antiemetic An Anti-in An infla lammatory Uses Us An Antibacterial Analgetic An Antidiabetic An Bone-st Bo stimulant Antipsoriatic An An Antimicrobial Intes In estin inal l anti-pro proki kine netic An Antiproliferative Analgesic An ∆ 9 TH THCV CBG CBG Bo Bone-st stimulant Anorectic CB1(-) An An Antiproliferative Anti-in An infla lammatory Bone-st Bo stimulant CB2(+) Bo Bone-st stimulant TNF-a ↓ Adenosine Uptake ↓ An Antiepileptic CB1(-) GABA An Antibacterial Im Immunosuppres essiv ive e T-cells↓ TRENDS in Pharmacological Sciences 11

EPIGENETIC TECHNOLOGY IP Innovative Plant Breeding for accelerated growth and higher return Non GMO Selectively bred No foreign DNA Thrive under myriad introduced environmental stressors Grows 33% to 40% faster Stable Quicker and higher Ideal candidates for returns to breeders gene silencing 12

ALLIANCE WITH PHOENIX LIFE SCIENCES Delivery of a Pharmaceutical Model in Australia 13

PHOENIX LIFE PRODUCT STREAM 14