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

Level 2, 131 Macquarie Street, Sydney, NSW, Australia. 2000

p: +61 2 9251 7177

www.thcl.com.au

ASXRELEASE(16thMay2017)

PROACTIVEINVESTORPRESENTATION The Hydroponics Company Limited (ASX: THC) is pleased to advise that Dr Andrew Beehag, Chief Executive Officer of Canndeo Limited, THC’s medicinal cannabis division, will be presenting at Proactive Investors’ Spotlight CEO Sessions Series in Melbourne today.

In accordance with ASX Listing Rule 3.1 please see the attached updated Investor Presentation.

Dr Beehag will also be presenting to investors in Sydney tomorrow, Wednesday 17th May.

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

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

InvestorPresentationMay2017

ASX:THC

DISCLAIMER

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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

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Positionedforfutureacquisitionsinternationally

SHARE STRUCTURE

SharePrice SharesonIssue FreeTradingShares

EscrowedShares MarketCap Top20% NumberofShareholders

THC:34cTHCO:11.5c

104.1million

47.1million

57.0million

$35.4million

46.3% 1450(IPO:752)

TheHydroponicsCompanyLimitedat15May2017

ASX:THC

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PORTFOLIO APPROACH TO CANNABIS

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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

CANNABIS IS A THRIVING OPPORTUNITY

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USALegalCannabismarket(medicinal+recreational)

estimated

US$20Bby 2021

USCannabis-relatedestimatedindustryrevenues

US$24B-US$44Bin2020

89%oftheUSsupportdoctorrecommended

medicinalcannabis

US

29USStates+DCmedicinalcannabislegalised7USStatesrecreationalmarijuanalegalised

Canada

Medicinalcannabislegalised

1July2018legislationofrecreationalmarijuana

Australia

Greatdemandpotential

1.8mpatientswithneuropathicpain

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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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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HYDROPONICS DIVISIONHydroponicequipmentandnutrients

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ThecornerstoneofTHC’s

acquisitions

NewdistributionacrossUSAandEurope

Tradingprofitablyfor5+years

acrossCanada,UK,EUandUSA

22%increaserevenue1stQtr 2017

Over600products,9trademarks

Strongdistributionnetworks

DISTRIBUTION

Proprietarytrademarkedproductsinclude:

• Lightingandpowersupplies

• LightingrelaysandClimatecontrol

• VentilationandTrimming

• Extractionbags

• Plantrotationsystems

• Eyewear

• Nutrientsandaccessories

100%owned byTHC

WholesalenetworkintheUS,CanadaandUK

StrongsourcingandqualitycontrolteaminChina

FastpacedandinnovativeR&DDivisionwithincreasedresourcesofferingconsiderablegrowth

potential

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MANUFACTURING

Exclusivelicenseforhydroponicsmarketdistribution

INNAWATER WATER STERILISATION AND CONDITIONER SYSTEMS

SUPA-STELTH WATER PUMPS

Innovativepumpsthatminimiseelectricityconsumption

Exclusiveinternationalmarketinganddistributionrightsfor

hydroponicandindoorfarming

Awardwinningchemicalfreewaterpurificationsystems

NEW PRODUCTS IN 2017

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Awardwinningsystems,exclusiveworldwidelicence,internationaldistributionrights

ADVANCED HYDROPONIC GREENHOUSES

A&BHydroponicsisaworldleaderinthefieldofhydroponics,specializinginthedesignand

manufactureofthefinestcommercialhydroponicgreenhousesandgrowingsystemsavailableforany

typeofenvironment

THC hasalsosecuredtheexclusiveservicesofagronomistJimBarlowtorepresentTHCthroughouttheAmericastodeveloplarge

commercialhydroponicgreenhouses

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OUR EXPERIENCED BOARD

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MaryVerschuerNon-ExecutiveDirector

Experiencednon-executivedirectorwithmorethan20yearsinseniormanagementincludinginitiating,executingandintegratingacquisitions

AlanBeasleyChairman

Morethan30yearsininvestmentbankingandmanagement,withseniorrolesatBankersTrustAustralia,GoldmanSachsandBNPParibas

IanMuttonNon-ExecutiveDirector

Practicingdirectorofalawfirmspecialisingincontractrelatedmatters,competitionandproductliabilitylaws.Ianalsoassistslistedcompaniestoimplementsystemsthatareintendedtoensureongoingcompliancewiththelistingrulesandregulations

PeterWallaceNon-ExecutiveDirector

Morethan30yearsexperienceasacompanydirector,withacareerthatspansprivateequity,corporateadvice,non-executivedirectorshipsandfinancialcontrol.

HamishMacDonaldChiefExecutiveOfficer

Extensivebiotechnologyexperience.Spearheadeda500MWHIndianofftakeagreementwithClenergen Ltd,formingajointventurewithLinc EnergyLtd

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