THEHEALTH COMPANY

INVESTOR PRESENTATIONFY 201412/1/14

FEMALE

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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 dualprotection against: Unintended pregnancy Sexually transmitted infections (STIs), including HIV/AIDS

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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

The “Worlds” of FHC

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Consumer Global Public Sector

Global Market

$4-6 Billion

Family Planning

HIV/AIDS

Global Condom Public Health

$ 400 – 500 Million

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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 15-24

58%Female

42%Male

• 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

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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.

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

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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

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FHC Stake Holders

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InvestorsCustomers – Procurers

Government/UN Agencies

Customers – UsersEmployees

Partners - NGO’s, Social

Marketing, Advocacy

Groups

Suppliers

Distributors

Society, Countries,

Regulatory Bodies

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• Female Health owns certain worldwide rights to FC2

• Patents and Trademarks

Yellow shading shows distribution

Geographic ExpansionFC2 Now Distributed Into 144 Countries

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

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State-of-the-Art Manufacturing

100 million unit capacity, with ability to add

up to an additional 100 million units.

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

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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.

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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

• 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

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2014(millions)

2013(millions)

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

FY 2014 – 2013 Results

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2006 2007 2008 2009 2010 2011 2012 2013 20140

10

20

30

40

50

60

70Millions

25.9

34.740.2 38.9

61.6

32.9

19.6

100% sales of lower price, higher margin, next generation FC2

FC1 FC1 & FC2 FC2

54.8

CAGR 13.2 %

Unit Sales

42.5

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Net Revenues

2006 2007 2008 2009 2010 2011 2012 2013 201405

10152025303540

$ in millions

$19.3

$25.6 $27.5

$22.2$18.6

$35.0

$14.8

100% sales of lower price, higher margin, next generation FC2

FC1 FC1 & FC2 FC2

$31.5

$24.5

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Gross Margin

2006 2007 2008 2009 2010 2011 2012 2013 20140

10

20

30

40

50

60% of net revenue

37.041.9

49.1

58.253.1

58.9 55.6

37.0

100% sales of lower price, higher margin, next generation FC2

FC1 FC1 & FC2 FC2

53.6

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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– Previous Experience

• 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– Previous Experience

• DuPont, BASF, DSM, and Cambrex• Martin Tayler – Executive Vice President of Global

Operations– Effective September 15, 2014– Previous Experience

• SSL International PLC (under Durex and Dr Scholl’s brands),Reckitt Benckiser Group plc

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Competition

FC2 Cupid PATH – Women’s Condom

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CompetitionFC2 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 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 use water and oil based lubricants

May be inserted in advance

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

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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

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