Investor PresentationQ3 2015

NASDAQ: FHCO

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Female Health Company

Markets FC2 Female Condom Worldwide500 Million Units Sold to Date

Saves Lives and Reduces Healthcare CostsImproves Women’s Health

Yellow shading shows distribution of FC2

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FC2 Female Condom

FC2 is the only product currently available: Approved by the FDA and cleared by the World Health Organization (WHO) Under a women’s control

Which provides dual protection 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 ~58%

Operating margin ~23%

Total current assets $21 million no L/T debt at 6/30/15

Profitable Since 2006

Debt Free $2M Unused Credit Facility

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FC2 MarketWomen’s Health Issues

HIV/AIDS

• Leading 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

STIs

• Explosive incidence numbers around the world• In U.S., Center for Disease Control (CDC) sees 20

million new cases annually of the 3 STIs tracked; half of cases occur within the 15-24 age group

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

The Condoms Markets

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Consumer Global Public Sector

Global Market

$4-6 BillionUnits ~10-12

Billion

Family Planning

HIV/AIDS

Global Condom Public Health

$ 400 – 500 Million Units ~10 Billion

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FC2 Female Condom vs. Male Condom

FC2 is an alternative to the male condom

Found to be preferred by women and partners in many countries

Material, nitrile polymer, is stronger than latex, reducing the probability of tearing,

and is non-allergenic

Allows the woman to take control of protection

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 Washington D.C. Study published in AIDS and Behavior, 2012.

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FC2 Market Advocacy• One of few markets where independent groups advocated use of

company’s product• Well organized and funded independent women’s groups

– Advocate for gender equality– Through increased funding for/availability of female condoms worldwide

• Examples– Center for Health and Gender Equity (CHANGE) – Washington, D.C.– Universal Access to Female Condoms (UAFC) – Netherlands

• UAFC Sponsors– Global Female Condom Conference 2015 – Durban, RSA, Dec 1-3, 2015– Worldwide attendees– Meeting mission: “Make female condoms available/affordable for all”

• Positive long term market impact

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Market Changes andPotential Expansion

Opportunities• Market Changes

– Female condoms (FC2) reimbursable under Obamacare– Growing need for non-hormonal birth control– Role of social marketing to young women– Increasing online purchasing of condoms

• Potential Opportunities

– Direct-to-consumer marketing– Women seeking non-hormonal birth control– Female condoms less disruptive, more pleasurable

– Selling FC2 to institutions where non-hormonal birth control products are important, i.e. for patients with breast cancer

– Selling to health care organizations/physicians to access reimbursement from Obamacare

– Online sales via ShopFemaleHealth.com/Amazon/Walgreens/etc.

Online Sales

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•ShopFemaleHealth.com•Amazon•Walgreens

Product DevelopmentConsumer: What’s Next

• Coming Soon: – New Brand– New Package– New Condom Colors – requires FDA pre-approval

– Social marketing campaign to target users

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FC2 Barriers To Entry

• Patents principally on use of nitrile and nitrile/design elements:— 38 patents in 50 countries

• FDA approval/WHO clearance

• FC2 proprietary material formulation

• Worldwide product specific training and education

• Country registration process

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Competition

FC2 Cupid PATH – Women’s Condom

Marketed Globally Marketed Outside U.S. Not Marketed

Only one other female condom approved by WHO – Cupid – not approved by FDA

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Competition

FC2 Cupid PATH – Women’s CondomNitrile 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

FHC capacity 100MM, with ability to double

Website indicates approx 10MM capacity

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FHC Strategy

• Focus: return on investment/impact on shareholder value

• Capitalize on: long-term female condom public sector growth; FHC’s position as market leader

• Product development/marketing• Pursue female condom market expansion opportunities

– direct-to-consumer/online purchasing• Diversify product line based on ROI/impact on

shareholder value

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

• Tapping into Direct-to-Consumer Market, Non-hormonal birth control alternative, Online Sales– Many US women report dissatisfaction with the side

effects of hormonal birth control

• Advocacy by independent women’s groups– Create gender equality and increase funding for

global availability of female condoms

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Talented Management Team• OB Parrish – Chairman and Chief Executive Officer

– Effective July 13, 2015– A FHCO founder– Previous Experience

• Pfizer – Executive V.P. of International Division

• G.D. Searle – President of Global Pharmaceuticals

• 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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State-of-the-Art Manufacturing

100 million unit capacity, with ability to add

up to an additional 100 million units.

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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• $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

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Tax Loss Carry Forward

FHC:• No longer records P&L NOL benefit• Records tax charge• Continues to benefit from NOL cash impact• Example:

FY 2015 first 9 monthsTax Charge - $ 2,261,775Taxes Paid - $ 267,394Cash Saved - $ 1,994,381

• 9 years profitable• No debt• Brazil tender for up to 50

million units: 25 million units shipped with an additional 15 million units ordered, for a total of 40 million ordered

• Strategy to accelerate growth in current markets and expand into new markets

• NOL’s utilized to reduce cash payments for income taxes

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Q3 YTD 2015(millions,

except EPS)

2014(millions,

except EPS)Units 47.3 42.5

Revenue $25.4 $ 24.5

Gross Margin $14.8 $ 13.1

Operating Income

$5.9 $ 3.9

Tax Expense (Benefit)

$2.3 $ 1.5

Net Income $3.6 $ 2.4

EPS - Diluted $0.13 $ 0.08

Tax-cash payments

$0.27 $0.77

Adjusted EBITDA

$6.8 $4.5

EPS – Diluted, as adjusted

$0.24 $0.16

FY 2015 – 2013 Results

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*0

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 13.0 %

Unit Sales

42.547.3

*Through Q3

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Net Revenues

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*0

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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

$24.5 $25.4

*Through Q3

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Gross Margin

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*0

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

53.658.3

*Through Q3

FHC Summary

• Stable, profitable company

• New strategy focused on driving Company growth

• Potential 10 billion unit condom market virtually untapped = opportunity for growth

• Experienced leadership with track record of success

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