PROACTIVE INVESTOR PRESENTATION The Hydroponics Company Limited ( - - PDF document

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PROACTIVE INVESTOR PRESENTATION The Hydroponics Company Limited ( - - PDF document

www.thcl.com.au ASX RELEASE (16 th May 2017) PROACTIVE INVESTOR PRESENTATION The Hydroponics Company Limited ( ASX: THC ) is pleased to advise that Dr Andrew Beehag, Chief Executive Officer of Canndeo Limited, THCs medicinal cannabis division,


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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

ASX RELEASE (16th May 2017)

PROACTIVE INVESTOR PRESENTATION

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

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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

May 2017

ASX:THC

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SLIDE 3

DISCLAIMER

2 The material in this presentation (ma material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in The Hydroponics Company Limited (TH THC) nor does it form the basis of any contract or

  • commitment. THC makes no representation or warranty, express
  • r implied, as to the accuracy, reliability or completeness of this
  • material. THC, its directors, employees, agents and consultants

shall have no liability, including liability to any person by reason

  • f negligence or negligent misstatement, for any statements,
  • pinions, information or matters, express or implied, arising out
  • f, contained in or derived from, or for any omissions from this

material except liability under statute that cannot be excluded. Statements contained in this material, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves

  • r potential growth of THC, industry growth or other trend

projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The principal important risk factors that could cause THC’s actual performance and future events and actions to differ materially from such forward-looking statements, include, but are not limited to, continuing volatility in the capital or credit markets and other changes in the securities and capital markets, changes in market prices of THC’s investments, the occurrence

  • f one or more catastrophic events, such as an earthquake, hurricane,
  • r act of terrorism, changes in laws or regulations, changes in income

tax laws, and changes in general economic and market factors that affect the prices of securities or the industries in which it does business. This presentation includes certain statements, estimates and projections that rely upon various assumptions. Those assumptions may

  • r may not prove to be correct. The Presentation does not purport to

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.

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THE HYDROPONICS COMPANY

CANNABIS IS THE WORLD’S NEW HIGH GROWTH SECTOR

Medi Medicina nal canna nnabi bis s di divisi sion n – pha pharmaceut eutical model del for Aus Australia ta targeting est. $100m market New technol

  • log
  • gy in water pumps,

, water pur purification n and nd canna nnabi bis s genet genetics Hy Hydr dropo poni nics s di divisi sion n with h more e tha han n 5 5 ye years profitable trading En End-to to-end end cover erage e of canna nnabi bis s ma markets with significant synergies Gr Greenhouse div ivis isio ion enab ablin ling next- ge generat ation indoor farming Mo More e tha han n 17 17 yea ears s of canna nnabi bis s gr growing ng exper perienc ence

3

Po Positioned for future acquisitions in internatio ionally ally

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SLIDE 5

SHARE STRUCTURE

Sh Share Price Sh Shares on Issue Fr Free Trading Sh Shares Es Escrow

  • wed

ed Shares es Ma Market Cap To Top 20% Nu Number of Sh Shareholders

TH THC: C: 34c 34c TH THCO: 11. 11.5c 5c 104.1

104.1

mi million

47.1 47.1

mi million

57.0 57.0

mi million

$35.4 $35.4

mi million

46.3% 46.3% 1450 1450

(I (IPO: : 752)

The Hydroponics Company Limited at 15 May 2017 ASX: THC

4

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PORTFOLIO APPROACH TO CANNABIS

5

Wh Why Diversify?

Mul Multipl ple e busi business ness types ypes in in can annab abis is spac ace Ma Many ny list sted ed compa pani nies es ha have e no no rev evenue enue Op Options fo for diversifi fication

  • Self managed diversified

portfolio

  • ETF in medical marijuana

Can Cannab abis is is is a a new in inve vestment sector Gr Growth

  • p
  • ppor
  • rtunities are

gl globa bal and nd unev uneven en

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PORTFOLIO APPROACH TO CANNABIS

Continued

Separate divisions for farm establishment, growing supplies and medicinal cannabis Multiple sector exposure, each with high growth potential Exposure to USA, Canada, Central America, Europe, Australia Expansion through new technology introduction

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Profitable hydroponics division Positioned for future acquisition and further positive diversification

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SLIDE 8

CANNABIS IS A THRIVING OPPORTUNITY

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USA Legal Cannabis market (medicinal + recreational) estimated

US US$20B by 2021 2021

US Cannabis-related estimated industry revenues US US$24B-US US$44B in 2020 89% 89% of the US support doctor recommended medicinal cannabis US US 29 US States + DC medicinal ca cannabis legalised 7 US States recreational ma marijuana legalised Ca Canada Medicinal ca cannabis legalised 1 July 2018 le legis isla latio ion

  • f recreational marijuana

Au Australia Great demand po potent ential al 1. 1.8m 8m pa patient ents with neuropathic pain

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CANNDEO

This division aims to lead the development of therapeutically superior, paramount quality and cost effective medicines derived from Ca Cannabis sa sativa. Gr Growin ing & Ex Extrac actio ion Te Technology Pr Product De Development De Delivery Me Metho hods ds Aus Australian Ma Manuf nufactur uring ng Sa Sales of Pr Proprietary Medi Medicines nes Fu Future IP Re Research

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Converting unique intellectual property in cannabis breeds and extraction technology to approved products for the Australian market

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A NEW CLASS OF MEDICINAL PRODUCTS

Australia

Clear strategy for bringing medicinal cannabis to the Australian market, estimated at $100 $100-400m 400m +17 years of Cannabi annabis sa sativa breeding, variety selection and growth management Collaborative R&D discovery

projects for medicinal cannabis Target multiple markets with

high purity cannabidiol (CBD) Production under Government

licensing program

A A ne new class of medi dicina nal pr produc ducts targeting dementia, neurological, epilepsy and other disorders Pursuing a pharmaceutical model

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EPIGENETIC TECHNOLOGY IP

Innovative Plant Breeding for accelerated growth and higher return

No foreign DNA introduced

Non GMO

Quicker and higher returns to breeders

Grows 33% to 40% faster

Thrive under myriad environmental stressors

Selectively bred

Ideal candidates for gene silencing

Stable

10

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HYDROPONICS DIVISION

Hydroponic equipment and nutrients

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Th The cornerstone

  • f
  • f THC’s

acq acquis isit itio ions

Ne New d distribution across

USA and Europe

Tr Trading profita tably fo for 5+ years

across Canada, UK, EU and USA

22% 22% inc ncrea ease se rev evenue enue 1st 1st Qt Qtr 2017 2017 Over 600 prod

  • ducts,

,

9 trademarks

St Strong distribution

networks

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DISTRIBUTION

Pr Proprietary trademarked products 
include:

  • Lighting and power supplies
  • Lighting relays and Climate control
  • Ventilation and Trimming
  • Extraction bags
  • Plant rotation systems
  • Eyewear
  • Nutrients and accessories

100% 100% owned ned by THC Wh Whole lesale ale network in the US, Canada and UK Strong sourcing and quality 
control te team in China Fa Fast paced and innovative R&D Division with increased resources offering 
considerable growth potential

12

MANUFACTURING

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Exclusive license for hydroponics market distribution

INNAWATER WATER STERILISATION AND CONDITIONER SYSTEMS SUPA-STELTH WATER PUMPS

Innovative pumps that minimise electricity consumption Exclusive international marketing and distribution rights for hydroponic and indoor farming Award winning chemical free water purification systems

NEW PRODUCTS IN 2017

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Award winning systems, exclusive worldwide licence, international distribution rights

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ADVANCED HYDROPONIC GREENHOUSES

A& A&B Hydr Hydropo poni nics s is a world leader in the field of hydroponics, specializing in the design and manufacture of the finest commercial hydroponic greenhouses and growing systems available for any type of environment TH THC has also secured the exclusive services of agronomist Jim Barlow to represent THC throughout the Americas to develop large commercial hydroponic greenhouses

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OUR EXPERIENCED BOARD

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Ma Mary Ve Verschuer

Non-Executive Director Experienced non-executive director with more than 20 years in senior management including initiating, executing and integrating acquisitions

Al Alan Beasley

Chairman More than 30 years in investment banking and management, with senior roles at Bankers Trust Australia, Goldman Sachs and BNP Paribas

Ia Ian Mutton

Non-Executive Director Practicing director of a law firm specialising in contract related matters, competition and product liability laws. Ian also assists listed companies to implement systems that are intended to ensure ongoing compliance with the listing rules and regulations

Pe Peter Wallace

Non-Executive Director More than 30 years experience as a company director, with a career that spans private equity, corporate advice, non-executive directorships and financial control.

Ha Hamish MacDonald

Chief Executive Officer Extensive biotechnology experience. Spearheaded a 500MWH Indian offtake agreement with Clenergen Ltd, forming a joint venture with Linc Energy Ltd

Jo John Hall

Executive Director Over 30 years in plant breeding, crop management and monitoring systems, including major Australian innovations

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THANK YOU

The Hydroponics Company Limited

www.thcl.com.au www.crystalmountainproducts.com www.canndeo.com Hamish MacDonald - CEO Level 2, 131 Macquarie St, Sydney 2000 +61-9251-7177 Henry Kinstlinger – Company Secretary +61-418-613-028