1. INVESTOR PRESENTATION FY 2014 12/1/14
female
The Health Company
INVESTOR PRESENTATION
FY 2014
12/1/14

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 Core product FC2 Female Condom
Gross margin ~54%
Operating margin ~16%
Total current assets $13 million
no L/T debt at 9/30/14

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

5. Global 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 U.S. 20 million new STIs annually; half occurring in young people aged
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

6. FC2 Female Condom vs. Male Condom
FC2 is simply an alternative to the male condom
Found to be acceptable by
women and partners in many cultures
Material, nitrile polymer, is stronger than latex, reducing the probability of tearing, and is non-allergenic
Allows access to more prevention
options
Transfers heat, warming to body temperature for natural feeling sex
Non-interruptive, can be inserted in advance of sexual activity
Reduces health costs by increasing HIV/AIDS prevention *
* Every $1 spent on Female Condoms represents $20 in healthcare savings per the Johns Hopkins
Study published in AIDS and Behavior, 2012.

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

8. 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
Exploding incidence of STIs around the world
20M new cases every year in the US alone, half occurring in young people aged 15-24
New Global Focus on Family Planning
Gates/DFID Summit – New Funding
Female Controlled Protection
Basic rights, education, opportunity

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

10. Geographic Expansion FC2 Now Distributed Into 144 Countries
Female Health owns certain worldwide rights to FC2
Patents and Trademarks
Yellow shading shows distribution 10

11. FHC Key Goals/Strategy
Accelerate and Grow Demand for FC2
Add sales and marketing team
(Redeploy portion of training budget)
Growth in existing markets
Geographic expansion
Explore the potential for consumer product
Diversification of Product Offering
Leverage unique channel, market focus or capabilities
Acquisition of another product, technology and/or business
Lower business risk, improve consistency in revenue/earnings 11

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

13. 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
Market research into consumer product underway

14. 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 over 10 million views.
184 training and education sessions in 7 countries with an estimated 118,000 people participating in these sessions.
More than 40 countries asked for and received information and advice on training and education.

15. 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
Shifting training/education spending to sales/marketing
$2 M unused credit facility
NOL carryforward:
UK: ~$63 M – No expiration date
US: ~$17 M – Expiring in years 2018 to 2027
State: ~$17 M – Expiring in years 2018 to 2027

16. FY 2014 – 2013 Results 8 years profitable No debt
Accumulated cash for acquisitions
Recently awarded Brazil tender for up to 50 million units
Strategy to accelerate growth in current markets and expand into new markets
2014
(millions)
2013
Units
42.5
54.8
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 - Diluted
$ 0.08
$0.50

17. Unit Sales CAGR 13.2 % 54.8 42.5 19.6 FC1 FC1 & FC2 FC2
100% sales of lower price, higher margin, next generation FC2
CAGR
13.2 %
54.8
42.5
19.6
FC1
FC1 & FC2
FC2

18. Net Revenues $31.5 $24.5 $14.8 FC1 FC1 & FC2 FC2
100% sales of lower price,
higher margin,
next generation FC2
$31.5
$24.5
$14.8
FC1
FC1 & FC2
FC2

19. Gross Margin 53.6 37.0 FC2 FC1 FC1 & FC2 100% sales of lower price,
higher margin,
next generation FC2
53.6
37.0
FC1
FC1 & FC2
FC2

20. Talented New 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
Royal DSM – President Biologics and
BioSolutions
The Female Health Company –
Executive Vice President
Baxter International
Michele Greco – Executive Vice President and Chief Financial Officer
Effective January 1, 2013
Previous Experience
Ernst & Young LLP Audit Partner
Susan Ostrowski – Executive Vice President of Sales and Marketing
-- Effective July 10, 2014
DuPont, BASF, DSM, and Cambrex
Martin Tayler – Executive Vice President of Global Operations
Effective September 15, 2014
SSL International PLC (under Durex and Dr Scholl’s brands),Reckitt Benckiser Group plc

21. Competition
FC2
Cupid
PATH – Women’s Condom

22. Competition FC2 Cupid PATH – Women’s Condom Nitrile Polymer
Natural rubber latex
Polyurethane
2 retention rings:
External ring covers the lips of the vagina
Internal ring lies against the cervix and anchors the device
Octagonal outer ring. Sponge to anchor the device internally.
Large external ring:
-Tabs on the exterior of the device that reportedly adhere to the vaginal wall
- Inserter made from a water soluble polymer that melts in the body and may help keep the product in place
Non-allergenic
Allergenic
Pre-lubricated
Not Pre-lubricated
-Must be lubricated at time of use
-Only internal side of product may be lubricated. External lubrication may prevent tabs from working
May use water and oil based lubricants
May only use water based lubricants
May be inserted in advance

23. FC2 Barriers To Entry
Patents principally on use of nitrile and nitrile/design elements:
38 patents in 50 countries
FC2 proprietary material formulation
Worldwide product specific training and education
Country registration process
FDA approval/WHO clearance 23

24. 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 24