Hydrofarm is an excellent way to take advantage of the growth in the Controlled Environmental Agriculture industry.

Massive Market Opportunity
Tailwinds for our growing end-markets as we anticipate expansion of cannabis legalization
Unique Position
Truly unique ability to invest pure-play in the long-term growth of CEA and cannabis
Differentiated branded product offering
Majority of sales are from products that are only or primarily sold by Hydrofarm and allow for advantaged margins
High proportion of consumables
~2/3 of sales come from consumables, which creates an opportunity for recurring revenue
Winning platform
Supply chain excellence with just-in-time coverage of the U.S. and Canada and disruptive DMI technology
Impressive growth algorithm
Long history of double-digit compound annual growth with a path to mid-teens+ organic topline growth over the long-term
Driving Profitability
Opportunity to drive productivity savings and favorable sales mix to improve profit margins

Hydrofarm is a leading independent CEA and pure-play hydroponics solution provider in the U.S. and Canada

FY 2022 Sales from margin-advantaged proprietary and preferred brands
Net Sales CAGR over past 15 years
'20 - '25 CAGR Global CEA Market
Years of operating experience
Sales from consumables with opportunity for recurring revenue streams
Reduced food waste
Lower fertilizer & pesticides usage
CEA can grow plants with up to 98% less water than soil based agriculture
The yield of vertical farming, a form of CEA, is 20x more than that of outdoor farming per acre
Reduced carbon emissions

                                                  Statistic source: 2021 and 2022 Annual Reports