Annual Meeting
March 19, 2015
The “Worlds” of FHC
Consumer
Global Market
$4-6 Billion
Global Public Sector
Family Planning
HIV/AIDS
Global Condom Public Health
$ 400 – 500 Million
2
FHC Stake Holders
Investors
Society,
Countries,
Regulatory Bodies
Customers – Procurers
Government/UN Agencies
Partners - NGO’s,
Social Marketing,
Advocacy Groups
Distributors
Customers – Users
Employees
Suppliers
3
Adding New Stakeholders
Retailers
Healthcare Professionals
Consumers
4
Adding New Team Capabilities
Sales and Marketing Capabilities Being Added without
Incremental Headcount
•
•
•
•
VP Sales and Marketing
US Sales and Marketing Director
Global Commercial Director
Consumer Marketing Manager
Operations Leader with Significant Global Male Condom
Experience
5
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
6
FY 2014 – 2013 Results
2014
(millions)
2013
(millions)
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
Units
• 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
7
Unit Growth
100% sales of lower
price, higher margin,
next generation FC2
Millions
70
61.6
60
54.8
50
40
34.7
30
20
CAGR
13.2 %
40.2
42.5
38.9
32.9
25.9
19.6
10
0
2006
FC1
2007
2008
2009 2010
FC1 & FC2
2011
2012
2013
FC2
2014
8
Geographic Expansion
FC2 Now Distributed Into 144 Countries
Yellow shading shows distribution
9
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
10
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
11
Online Store
12
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
13
Consumer Market Research
• Coming Soon:
– New Brand
– New Package
– New Condom Colors – requires FDA pre-approval
14
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
15
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
16
Thank you for your continued support