Updated Investor Presentation - The Hydroponics … updated Investor Presentation. This presentation is being used for current roadshows and investor briefings by the Company. For

The Hydroponics Company Limited (ASX: THC) ACN: 614 508 039

Level 2, 131 Macquarie Street,

Sydney NSW 2000 Australia

www.thcl.com.au

ASXRELEASE(6thJune2017)

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:+61292517177M:+61418613028E:[email protected]

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

InvestorPresentationJune2017

ASX:THC

DISCLAIMER

2

Thematerialinthispresentation(material)isnotanddoesnotconstituteanoffer,invitationorrecommendationtosubscribefor,orpurchaseanysecurityinTheHydroponicsCompanyLimited(THC)nordoesitformthebasisofanycontractorcommitment.THCmakesnorepresentationorwarranty,expressorimplied,astotheaccuracy,reliabilityorcompletenessofthismaterial.THC,itsdirectors,employees,agentsandconsultantsshallhavenoliability,includingliabilitytoanypersonbyreasonofnegligenceornegligentmisstatement,foranystatements,opinions,informationormatters,expressorimplied,arisingoutof,containedinorderivedfrom,orforanyomissionsfromthismaterialexceptliabilityunderstatutethatcannotbeexcluded.Statementscontainedinthismaterial,particularlythoseregardingpossibleorassumedfutureperformance,costs,dividends,productionlevelsorrates,prices,resources,reservesorpotentialgrowthofTHC,industrygrowthorothertrendprojectionsare,ormaybe,forwardlookingstatements.

Suchstatementsrelatetofutureeventsandexpectationsand,assuch,involveknownandunknownrisksanduncertainties.Actualeventsandresultsmaydiffermateriallyfromthoseexpressedorforecastedinforward-lookingstatementsduetoanumberoffactors.TheprincipalimportantriskfactorsthatcouldcauseTHC’sactualperformanceandfutureeventsandactionstodiffermateriallyfromsuchforward-lookingstatements,include,butarenotlimitedto,continuingvolatilityinthecapitalorcreditmarketsandotherchangesinthesecuritiesandcapitalmarkets,changesinmarketpricesofTHC’sinvestments,theoccurrenceofoneormorecatastrophicevents,suchasanearthquake,hurricane,oractofterrorism,changesinlawsorregulations,changesinincometaxlaws,andchangesingeneraleconomicandmarketfactorsthataffectthepricesofsecuritiesortheindustriesinwhichitdoesbusiness.

Thispresentationincludescertainstatements,estimatesandprojectionsthatrelyuponvariousassumptions.Thoseassumptionsmayormaynotprovetobecorrect.ThePresentationdoesnotpurporttocontainalltheinformationthataprospectiveinvestormayrequire.Theinformationmaynotbeappropriateforallpersons,anditisnotpossibleforTheHydroponicsCompanyLimitedtohaveanyregardtotheinvestmentobjectives,financialsituationandparticularneedsofeachrecipientwhoreadsorusesthisinformation.

THE HYDROPONICS COMPANYCANNABIS IS THE WORLD’S NEW HIGH GROWTH SECTOR

Medicinalcannabisdivision–pharmaceuticalmodelforAustralia

targetingest.$100mmarket

Newtechnologyinwaterpumps,waterpurificationandcannabisgenetics

Hydroponicsdivisionwithmorethan5yearsprofitabletrading

End-to-endcoverageofcannabismarketswithsignificantsynergies

Greenhousedivisionenablingnext-generationindoorfarming

Morethan17yearsofcannabisgrowingexperience

3

Positionedforfutureacquisitionsinternationally

SHARE STRUCTURE

SharePrice SharesonIssue FreeTradingShares

EscrowedShares MarketCap Top20 NumberofShareholders

THC:30cTHCO:7.3c

104.1million

47.1million

57.0million

$31.2million

46.3% 1622(IPO:752)

TheHydroponicsCompanyLimitedat1June2017

ASX:THC

4

CANNABIS IS A THRIVING OPPORTUNITY

5

USALegalCannabismarket(medicinal+recreational)

estimated

US$20Bby 2021

USCannabis-relatedestimatedindustryrevenues

US$24B-US$44Bin2020

89%oftheUSsupportdoctorrecommended

medicinalcannabis

US

29USStates+DCmedicinalcannabislegalised

7USStatesrecreationalmarijuanalegalised

Canada

Medicinalcannabislegalised

1July2018legislationofrecreationalmarijuana

Australia

Greatdemandpotential

1.8mpatientswithneuropathicpain

PORTFOLIO APPROACH TO CANNABIS

6

WhyDiversify?

Multiplebusinesstypesincannabisspace

Manylistedcompanieshavenorevenue

Optionsfordiversification• Selfmanageddiversified

portfolio• ETFinmedicalmarijuana

Cannabisisanewinvestmentsector

Growthopportunitiesareglobalanduneven

PORTFOLIO APPROACH TO CANNABISContinued

Separatedivisionsforfarmestablishment,growingsupplies

andmedicinalcannabis

Multiplesectorexposure,eachwithhighgrowthpotential

ExposuretoUSA,Canada,CentralAmerica,Europe,

AustraliaExpansionthroughnewtechnologyintroduction

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Profitablehydroponicsdivision

Positionedforfutureacquisitionandfurtherpositivediversification

A VERTICALLY INTEGRATED, DIVERSIFIED BUSINESS

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Australia

Asia

Americas

Canada

CanndeoLimitedMedicinalCannabis

AmericanIndoorFarmingLargeScaleGreenhouses

IPResearchandDevelopment

HydroponicEquipment

GreenhouseDesign,ConstructionandManagement

TheHydroponicsCompanyLimited(THC)

A&BCollaborationDesignandConstruction

ofGreenhouses

PegasusAgricultureEpigeneticProcessIPAcquisition

CrystalMountainProductsDistributionandWholesale

Supa-Stelth PumpsMarketingAgreement

DragonVisionManufacturing

InnaWaterMarketingAgreement

CANNDEO

Thisdivisionaimstoleadthedevelopmentoftherapeuticallysuperior,paramountqualityandcosteffectivemedicinesderivedfromCannabissativa.

Growing&ExtractionTechnology

ProductDevelopmentDeliveryMethods

AustralianManufacturing

SalesofProprietaryMedicines

FutureIPResearch

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ConvertinguniqueintellectualpropertyincannabisbreedsandextractiontechnologytoapprovedproductsfortheAustralianmarket

A NEW CLASS OF MEDICINAL PRODUCTSAustralia

Clearstrategyforbringingmedicinalcannabistothe

Australianmarket,estimatedat$100-400m

+17yearsofCannabissativabreeding,varietyselectionand

growthmanagement

CollaborativeR&D discovery projects formedicinalcannabis

Target multiple markets withhighpuritycannabidiol(CBD)

ProductionunderGovernmentlicensing program

Anewclassofmedicinalproductstargetingdementia,neurological,epilepsyandotherdisorders

Pursuingapharmaceuticalmodel

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CANNABIS

TRENDSinPharmacologicalSciences

Antiproliferative

Anxiolytic CB1(+)5- HT1A (+)

Antispasmodic

Vasorelaxant PPARY (+)

Neuroprotective[Ca2+]I↓ROS↓

AntipsychoticTRPV!(+)

Antiepileptic [Ca2+]↓

Anti-ischemic5-HT1A (+)

Antiproliferative,anticancer[Ca2+]I↓ROS↓CB2 (+)Id-1↓

Antiemetic

Antibacterial

Antidiabetic

Antipsoriatic

Intestinalanti-prokinetic

Analgesic

Bone-stimulant

Anti-inflammatoryTNF-a↓AdenosineUptake↓

ImmunosuppressiveT-cells↓

CBD(Cannabidiol)

DiverseMedicalUses

Bone-stimulantCBDV

Antiproliferative

Antispasmodic

∆9 THCA

Anti-inflammatory

Analgetic

Bone-stimulant

Antimicrobial

Antiproliferative

CBC

Antiproliferative

Bone-stimulant

Antibacterial

CBGAnorecticCB1(-)

Bone-stimulantCB2(+)

AntiepilepticCB1(-)GABA

∆9 THCV

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EP IGENET IC T ECHNOLOGY I PInnovativePlantBreedingforacceleratedgrowthandhigherreturn

NoforeignDNAintroduced

Non GMO

Quickerandhigherreturnstobreeders

Grows 33% to 40% faster

Thriveundermyriadenvironmentalstressors

Selectively bred

Idealcandidatesforgenesilencing

Stable

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ALLIANCE WITH PHOENIX LIFE SCIENCES

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DeliveryofaPharmaceuticalModelinAustralia

PHOENIX LIFE PRODUCT STREAM

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PHOENIX LIFE SCIENCES – F.A.S.T.

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ChronicPain

• Unparalleledqualitycontrol,GMP

• Comparativedatatomarketedcompounds

• Optimizedformulationtomaximizesymptomrelief

• Hempextract,highCBD,NOTHC

PhoenixLifeSciencesF.A.S.T.product istargetedinUSAforinflammatory,neuropathic,and

post-surgicalpain.

CANNDEO TIMELINE*

Applicationforresearchlicenselodged

AlliancewithInternationalPartner

Establishmarketandchannel

Internationalpartners:SalesandIPagreement

Pre-clinicalinvestigationofhighpotentialextracts

CollaborationwithgovernmentonR&D

Domesticmarketgrowththroughexpandedproductuse

Marketexpansionthroughinternationalpartnersales&licensing

Co-fundinghighpotentialnewmedicines

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2017 Q3/Q42017 Q1/Q2 2018 Q1/Q2

*Performanceanddatesaresubjecttochangeandareindicativeonly.

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OUR EXPERIENCED BOARD

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MaryVerschuerNon-ExecutiveDirector

Experiencednon-executivedirectorwithmorethan20yearsinseniormanagementincludinginitiating,executingandintegratingacquisitions

AlanBeasleyChairman

Morethan30yearsininvestmentbankingandmanagement,withseniorrolesatBankersTrustAustralia,GoldmanSachsandBNPParibas

IanMuttonNon-ExecutiveDirector

Practicingdirectorofalawfirmspecialisingincontractrelatedmatters,competitionandproductliabilitylaws.Assistslistedcompaniestoimplementsystemsforongoingcompliancewiththelistingrulesandregulations

PeterWallaceNon-ExecutiveDirector

Morethan30yearsexperienceasacompanydirector,spanningprivateequity,corporateadvice,non-executivedirectorshipsandfinancialcontrol.

HamishMacDonaldChiefExecutiveOfficer

Extensivebiotechnologyexperience.Spearheadeda500MWHofftakeagreementwithClenergen Ltd,jointventurewithLincEnergyLtd

JohnHallExecutiveDirector

Over30yearsinplantbreeding,cropmanagementandmonitoringsystems,includingmajorAustralianinnovations

THANK YOUTheHydroponicsCompanyLimitedwww.thcl.com.auwww.crystalmountainproducts.comwww.canndeo.com

HamishMacDonald- CEOLevel2,131MacquarieSt,Sydney2000+61-9251-7177HenryKinstlinger – CompanySecretary+61-418-613-028