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The Female Health Company Investor Presentation Q2 2014

Discover the world of The Female Health Company and their flagship product, the FC2 Female Condom, providing dual protection against unintended pregnancy and STIs. Learn about market performance, investor returns, global initiatives, and growth strategies.

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The Female Health Company Investor Presentation Q2 2014

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  1. female TheHealth Company INVESTOR PRESENTATION Q2 2014 6/12/14

  2. The Female Health Company manufactures and markets the FC2 Female Condom. • FC2 is the only product currently available: • Approved by the FDA and cleared by the WHO • Under a women’s control • Which provides dual • protection against: • Unintended pregnancy • Sexually transmitted infections • (STIs), including HIV/AIDS

  3. At a Glance NASDAQ FHCO Market cap ~$165 million Core product FC2 Female Condom Gross margin ~55% Operating margin ~22% Total current assets $15 million no L/T debt at 3/31/14 Cash dividend $0.07 per share quarterly Current yield ~4.90%

  4. Shareholder Return • Closing stock price on March 31, 2014 - $7.76 vs. March 28, 2013 - $7.24, an increase of 7% • Total return (appreciation plus dividends) for FY2013 was 42% • The average annual total return for the eight year 2005-2013 period (since becoming profitable) was 67% Stock Prices

  5. The “Worlds” of FHC Consumer Global Public Sector HIV/AIDS Global Market $4-6 Billion Family Planning Global Condom Public Health $ 400 – 500 Million

  6. HIV/AIDS Market Overview • No. 1 cause of death globally for women age 15-44 • 80% of female cases contracted via heterosexual transmission • Male and female condoms are the only prevention products available • No near-term alternative prevention products on the horizon • In Sub-Saharan Africa, women • represent >58% of adults • with HIV/AIDS infections(1 ) • Worldwide, women living with • HIV/AIDS is 50% of the global total(1 ) (1) Source: World Health Organization

  7. FC2 Female Condom vs. Male Condom FC2 is simply an alternative to the male condom * Every $1 spent on Female Condoms represents $20 in healthcare savings per the Johns Hopkins Study published in AIDS and Behavior, 2012.

  8. FHC Brand • Quality, Reliability, Safety • Partnership in solving significant global issues • HIV/AIDS, other STIs • Poverty – Family planning • Female empowerment and rights • Environment – Population control • Delivers to all stakeholders

  9. Why FC2 Demand Will Continue To Grow • Continued Global Focus on HIV • Feminization of AIDS – leading cause of death women age 15-44 • 35 million persons living with AIDS, 2.3 million newly infected in 2012 • New Global Focus on Family Planning • Addresses poverty, climate change, human rights • Gates/DFID Summit – New Funding • Female Controlled Protection • Basic rights, education, opportunity

  10. FHC Stake Holders Society, Countries, Regulatory Bodies Customers – Procurers Government/UN Agencies Investors Partners - NGO’s, Social Marketing, Advocacy Groups Distributors Customers – Users Employees Suppliers

  11. Geographic ExpansionFC2 Now Distributed Into 144 Countries • Female Health owns certain worldwide rights to FC2 • Patents and Trademarks Yellow shading shows distribution

  12. FHC Key Goals/Strategy • Continue Market Growth • Expand existing programs • Geographic expansion • Capacity / Cost Optimization • Current capacity at 100 million units • Acquired additional space for further expansion • Explore Product/Business Opportunities • Leverage unique channel and capabilities 12

  13. State-of-the-Art Manufacturing 100 million unit capacity, with ability to add up to an additional 100 million units.

  14. US Programs Highlights • FC2 Prevention Programs in Key US Cities – concentrated where HIV/AIDS most prevalent. • College Campus Program launched – raise awareness of and access to FC2 on campus. • Online Ordering Presence

  15. Global Program Highlights • Multilingual (English, Portuguese, Spanish and French) website that provides downloadable training and education is visited 1,500 times per month. • YouTube multilingual FC2 animation and instruction site has received 9 million views during the last year. • 133 training and education sessions in 7 countries with an estimated 19,749 people participating in these sessions. • More than 30 countries asked for and received information and advice on training and education.

  16. Low Risk, Unique Business Model • Modest inventory level, production primarily against orders • Low foreign currency exchange risk, FHCO & Subs Report in $USD • Minimal credit risk, less than 1% bad debt in past five years • Low sales and marketing expense, provide training and education • Strong free cash flow • $2 M unused credit facility • NOL carryforward: • UK: ~$63 M – No expiration date • US: ~$19 M – Expiring in years 2018 to 2027 • State: ~$17 M – Expiring in years 2018 to 2027

  17. FY 2013 – 2012 Results

  18. Unit Sales 100% sales of lower price, higher margin, next generation FC2 CAGR 18.7 % 54.8 19.6 FC1 & FC2 FC1 FC2

  19. Net Revenues 100% sales of lower price, higher margin, next generation FC2 $31.5 $14.8 FC1 FC1 & FC2 FC2

  20. Gross Margin 100% sales of lower price, higher margin, next generation FC2 37.0 FC2 FC1 & FC2 FC1

  21. Dividends 18 Consecutive quarterly dividends paid totaling $29.4 million. - Initially $0.05/share; increased 20% to $0.06/share Q2 FY2012; increased 17% to $0.07/share Q2 FY2013 *Not Taxable

  22. Talented Management Team • OB Parrish - Chairman • A FHCO founder • Previous Experience • Pfizer – Executive V.P. of International Division • G.D. Searle – President of Global Pharmaceuticals • Karen King – CEO and President • Effective January 20, 2014 • Previous Experience • Royal DSM – President Biologics and BioSolutions • The Female Health Company – Executive Vice President • Baxter International • Michele Greco – CFO and Vice President • Effective January 1, 2013 • Previous Experience • Ernst & Young LLP Audit Partner • Susan Ostrowski – Vice President -Sales/Marketing/Support • Previous Experience • DuPont, BASF, DSM, and Cambrex • Mike Pope – Vice President of Global Operations • Previous Experience • Chartex, Franklin Medical, Warner Surgical Products

  23. Competition FC2 Cupid PATH – Women’s Condom

  24. Competition

  25. FC2 Barriers To Entry • Patents principally on design and rings: • 42 patents in 56 countries • FC2 proprietary material formulation • Worldwide product specific training and education • Country registration process • FDA approval/WHO clearance 25

  26. FHC Summary • Stable, profitable company • Partner in resolving critical societal needs • Unique cost-effective business model • Small percentage of total potential market reached to date = opportunity for growth • Experienced leadership 26

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