v

Attracting Talent &

Driving Growth in Wisconsin

2nd Annual Future Wisconsin

Economic Summit

Kevin Conroy, Chairman & CEO

December 9, 2015

Exact Sciences’ progress and growth since 2009

Pillars of Wisconsin’s long-term prosperity

Importance of entrepreneurship in Wisconsin

WMC Foundation: Second Annual

Future Wisconsin Economic Summit Why is Wisconsin’s high-tech industry critical to our growth?

2

Exact Sciences' progress and growth since 2009

3

To work with patients, payers and providers to help play a role in the

eradication of colorectal cancer

OUR FIRST

MISSION

Jamie

Truesdell

Wendy

Finch

4

Sources:

ACS Cancer Facts & Figures 2015; all figures annual

J Natl Cancer Inst. 2011; 103:1-12 (Mariotto)

Our challenge: eradicating the second deadliest cancer

new diagnoses in 2015

15,590

27,540

40,560 40,730

49,700

158,040

Esophageal Prostate Pancreas Breast Colorectal Lung

Annual US cancer mortality

$20B Projected annual U.S. spending

on colon cancer treatment

#2 cancer killer

5

Sources: J Natl Cancer Inst. 2009; 101:1225-1227 (Itzkowitz)

N Engl J Med 2012;366:687-96 (Zauber);

Gastro 1997;112:594-692 (Winawer)

Why is colon cancer the most preventable cancer?

Pre-cancerous polyp Four stages of

colon cancer

10+

years

6

Source: SEER 18 2004-2010

Detecting colorectal cancer early is important

9 out of 10 Survive 5 years

1 out of 10 Survive 5 years

Diagnosed in Stages I or II Diagnosed in Stage IV

7

America’s stagnated colon cancer screening rate

50.0% 52.1% 58.6% 58.2%

80.0% 80.0%

2005 2008 2010 2013 2018 2020

8

A cutting edge non-invasive test with

a lab focused on compliance

7 DNA mutation

2 DNA methylation

1 Hemoglobin

1 Beta-actin

Cologuard®

at-home sDNA testing

Exact Sciences Labs

compliance program

+

9

Source: Imperiale TF et al. N Engl J Med. 2014;370(14):1287-1297

Cologuard’s® performance in a 10,000 patient study

Developing a world-class lab to deliver results

Capable of processing more than 1 million Cologuard® tests per year

11

*Patient compliance rate: number of valid test results reported divided by the number of collection kits shipped to patients 60 or more days prior to September 30, 2015.

Cologuard’s® comprehensive screening program

driving compliance

73% Patient

Compliance*

Physician

orders

Customer

outreach

Cologuard

completed

Physician

provided

result

12

Cologuard’s® U.S. market opportunity

80M people

$3B U.S. opportunity

13

Aug 2014 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Physicians ordering Cologuard® continues expanding

• ~500 new physicians order Cologuard weekly

Q4 2014

Q1 2015 Q2 2015 Q3 2015

4,100

8,300

14,700

21,000

14

Completed Cologuard® tests continues growing

4K

11K

21K

34K

>42K

>240K

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016

Completed Cologuard Tests

Guidance Guidance

15

Increasing America’s screening population (ages 50 -74)

49% screened with

colonoscopy

Screening history of Cologuard® users

42% never

screened before

Source: Colorectal Cancer Screening with Multi-target stool DNA-based Testing Previous Screening History of the Initial Patient Cohort, poster presented at

American College of Gastroenterology's Annual Scientific Meeting (ACG 2015), Oct. 16-21, 2015

9% screened only

with FIT/FOBT

16

Building and retaining high-quality talent

3 35 61 87

102

409

719

2009 2010 2011 2012 2013 2014 2015

Exact Sciences employee growth since moving to Madison

17

18

Broad skillset across Wisconsin-based team

Breakdown of Exact Sciences 400+ team members by function

Lab 80

Customer care center 90

Finance, accounting & billing 50

Operations & manufacturing 50

Sales & marketing 45

Research & development 65

Source: Results of the 2015 Great Workplace Award Recipients &

participation in the Gallup Q12 Engagement Survey (2015)

Mission-driven, engaged team

2015 employee engagement index1: ranks in line with Gallup’s World Class Clients

0%

“The mission or

purpose of the

company makes me

feel my job is

important”

“My team members are

committed to doing

quality work”

“This last year, I have

had opportunities at

work to learn and

grow”

Exact Sciences’

percentile rank

compared to

Gallup database

99th 98th 92nd

0% 100% 0% 100% 0% 100%

19

Importance of entrepreneurship in Wisconsin

20

Source: U.S. Census Bureau,

2010-2030 5-Year American

Community Survey Estimation

Wisconsin’s aging population and workforce

2010 2011 2012 2013 2015 2020 2025 2030

20 - 44

45 - 64

65+

Projecting Wisconsin Population by Age

21

Wisconsin’s declining per capita income

Median household income falling

$56,269

2000 2013

$51,467

Source: U.S. Census Bureau Data 22

New firms are largest drivers of America’s job creation

Source: Kaufman Foundation 23

Startups create more jobs than all other companies…

24

Source: U.S. Census Bureau; fivethirtyeight.com

… But the share of new businesses is declining

Startups as a percentage of total

25

Wisconsin ranks last for startup activity

Only 100 new ventures per 100,000 residents

50th Kauffman Foundation

2015 Ranking

Source: Kaufman Foundation 26

Wisconsin Minnesota

Population 5.7M 5.4M

Per capita income (2013) $52,413 $59,836

Gross state production (GSP) $282B $312B

Percentage of college graduates 25.6% 32.5%

Venture capital funding (2010-15) $396M $1.4B

*2015 projection from the

nonpartisan Legislative Fiscal Bureau

Sources: www.stats.indiana.edu

US Census Bureau 2014

U.S. Bureau of Economic Analysis (BEA)

27

A successful prototype . . . with room for

improvement

28

Entrepreneurs

Pillars of Wisconsin’s long-term prosperity

Innovation Enhancing our culture of entrepreneurship

Building on our high-tech research capabilities

Strengthening UW System & industry collaboration

Talent Aligning education with employers’ skill needs

Focusing on K-12 science, technology, engineering

and math (STEM)

Trade Developing strong connection to global markets

Focusing on the China, India and Brazil

Enhancing foreign direct investment

Infrastructure Modernizing our roads, bridges and rail system

Expanding broadband access statewide

Strengthening communities for economic growth

29

30