Annual Meeting

March 19, 2015

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

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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Adding New Stakeholders

Retailers

Healthcare Professionals

Consumers

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Adding New Team Capabilities

Sales and Marketing Capabilities Being Added withoutIncremental Headcount

• VP Sales and Marketing• US Sales and Marketing Director• Global Commercial Director• Consumer Marketing Manager

Operations Leader with Significant Global Male CondomExperience

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

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• 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

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FY 2014 – 2013 Results

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 – Without Valuation Allowance Adjustment

$ 0.10 $ 0.23

Cash from Operations before Capital Changes

$ 5.0 $ 10.4

2006 2007 2008 2009 2010 2011 2012 2013 20140

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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

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FC1 FC1 & FC2 FC2

54.8

CAGR 13.2 %

Unit Growth

42.5

Geographic ExpansionFC2 Now Distributed Into 144 Countries

Yellow shading shows distribution

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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

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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 2015

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Online Store

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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

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Consumer Market Research

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

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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

• 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

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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

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Thank you for your continued support