Annual Meeting March 19, 2015. The “Worlds” of FHC 2 ConsumerGlobal Public Sector Global Market $4-6 Billion Family Planning HIV/AIDS Global Condom Public.

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Presentation transcript:

Annual Meeting March 19, 2015

The “Worlds” of FHC 2 ConsumerGlobal Public Sector Global Market $4-6 Billion Family Planning HIV/AIDS Global Condom Public Health $ 400 – 500 Million

FHC Stake Holders 3 Investors Customers – Procurers Government/UN Agencies Customers – Users Employees Partners - NGO’s, Social Marketing, Advocacy Groups Suppliers Distributors Society, Countries, Regulatory Bodies

Adding New Stakeholders 4 Retailers Healthcare Professionals Consumers

Adding New Team Capabilities 5 Sales and Marketing Capabilities Being Added without Incremental Headcount VP Sales and Marketing US Sales and Marketing Director Global Commercial Director Consumer Marketing Manager Operations Leader with Significant Global Male Condom Experience

FHC Company Brand Quality, Reliability, Safety Partnership in solving significant global issues – HIV/AIDS, other STIs – Poverty – Family planning – Female empowerment and rights Partnership in solving personal health issues – Non-hormonal birth control – Female empowerment/choice – Triple protection: Unwanted pregnancy, STIs, Fertility 6

8 years profitable No debt Accumulated cash for acquisitions Brazil tender for up to 50 million units / 25 million units ordered Strategy to accelerate growth in current markets and expand into new markets NOL’s utilized to reduce cash payments for income taxes 7 FY 2014 – 2013 Results 2014 (millions) 2013 (millions) Units Revenue$ 24.5$ 31.5 Gross Margin$ 13.1$ 17.5 Operating Income$ 3.9$ 9.8 Tax Expense (Benefit)$ 1.5($ 4.4) Net Income$ 2.4$ 14.3 EPS – Without Valuation Allowance Adjustment $ 0.10$ 0.23 Cash from Operations before Capital Changes $ 5.0$ 10.4

% sales of lower price, higher margin, next generation FC2 8 FC1 FC1 & FC2 FC CAGR 13.2 % Unit Growth 42.5

Geographic Expansion FC2 Now Distributed Into 144 Countries Yellow shading shows distribution 9

FHC Growth Strategy Invest in strategic growth initiatives to create long term shareholder value and 1.Grow FC Demand Explore potential in high value consumer market Further develop existing global public sector presence through sales and marketing activity II.Diversify the Portfolio Drive Company growth and improve the consistency of revenues and earnings 10

Progress on Growth Strategy FC2 Growth Initiatives – New tender activities in focus countries – Consumer research completed, branding underway – Online store and other infrastructure put in place for consumer launch Diversification – Over 75 products/companies evaluated – Ongoing discussions with top targets – Expected first deal announcement in calendar

Online Store 12

Consumer Market Research US women are generally unhappy with hormonal based birth control citing side effects as biggest issue Side effects most often cited include weight gain, mood disorder and unwanted hair growth The main option available to date for non-hormonal birth control has been male condoms. Many users report reduced pleasure with male condoms due to interruption, restriction, loss of sensation 13

Consumer Market Research Coming Soon: – New Brand – New Package – New Condom Colors – requires FDA pre-approval 14

Why FC2 Demand Will Continue To Grow Continued Global Focus on HIV – Feminization of AIDS – leading cause of death women age – 35 million persons living with AIDS, 2.3 million newly infected in 2012 Exploding incidence of STIs around the world – 20M new cases every year in the US alone, half occurring in young people aged Tapping into Consumer Market - Non-hormonal birth control alternative – Many US women report dissatisfaction with the side effects of hormonal birth control Female Controlled Protection – Basic rights, education, opportunity 15

FHC Summary Stable, profitable company New strategy focused on driving Company growth Small percentage of total potential market reached to date = opportunity for growth Experienced leadership 16

Thank you for your continued support