THEHEALTH COMPANY

INVESTOR PRESENTATIONQ2 20146/12/14

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

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%

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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

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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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

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– Environment – Population control

• 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

• New Global Focus on Family Planning– Addresses poverty, climate change, human

rights– 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

• 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

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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

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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 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.

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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• 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

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2013(millions)

% Change 2013 vs. 2012

Q2 YTD FY2014

(millions)

% Change 2014 vs. 2013

Units 54.8 -11.2% 19.1 -43%

Revenue $ 31.5 -10.2% $ 11.0 -43%

Gross Margin $ 17.5 -15.1% $ 6.1 -47%

Operating Income $ 9.8 -10.5% $ 2.4 -66%

Tax Benefit $ 4.4 -2.2% * *

Net Earnings $ 14.3 -6.3% $ 1.8 -74%

EPS - Diluted $ 0.50 -0.7% $ 0.06 -75%

2012 results in part reflect catch up from delayed 2011 orders.

*Tax Benefit will be considered at end of FY2014.

FY 2013 – 2012 Results

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2006 2007 2008 2009 2010 2011 2012 20130

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 18.7 %

Unit Sales

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Net Revenues

2006 2007 2008 2009 2010 2011 2012 20130

5

10

15

20

25

30

35

40$ 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

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Gross Margin

2006 2007 2008 2009 2010 2011 2012 20130

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

Dividends

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Taxable Dividend

Return of Capital*

2010 0% 100%

2011 21.06% 78.94%

2012 2.06% 97.94%

2013 42.21% 57.79%

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

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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

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Competition

FC2Cupid PATH – Women’s

Condom

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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 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 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

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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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