Exact Sciences (EXAS) 8-KRegulation FD Disclosure

June 21, 2023 We aim to eradicate cancer with tests that help prevent it, detect it earlier, and guide treatment. EXACT SCIENCES

 

This presentation contains forward-looking statements concerning our expectations, anticipations, intentions, beliefs or strategies regarding the future. These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions and events to differ materially from those anticipated. Therefore, you should not place undue reliance on forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results; expectations for development of new or improved products and services; our strategies, positioning, resources, capabilities and expectations for future events or performance; and the anticipated benefits of our acquisitions, including estimated synergies and other financial impacts. Risks and uncertainties that could adversely affect the Company’s business and prospects, and otherwise cause actual results to differ materially from those anticipated, include without limitation, those described in the filings made by the company with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in expectations or any change in events, conditions or circumstances on which any such statements are based. In addition to the company's financial results determined in accordance with U.S. GAAP, the company provides non-GAAP measures that it determines to be useful in evaluating its operating performance and liquidity. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management uses non-GAAP financial measures to establish budgets, manage the Company’s business, and in setting incentive and compensation arrangements. The company presents EBITDA, adjusted EBITDA, non- GAAP gross margin, non-GAAP gross profit, core revenue, and free cash flow. Please refer to the appendix accompanying this presentation for discussion of non-GAAP financial measures and reconciliations to GAAP financial measures. Safe harbor and non-GAAP disclosures 2EXACT SCIENCES

 

Today’s agenda Jake Orville GM, SCREENING Jorge Garces CHIEF SCIENCE OFFICER Brian Baranick GM, PRECISION ONCOLOGY Sarah Condella EVP, HUMAN RESOURCES Everett Cunningham CHIEF COMMERCIAL OFFICER Jeff Elliott EVP, CHIEF FINANCIAL OFFICER Kevin Conroy CHAIRMAN AND CEO 10:00 am Welcome and opening Kevin 10:20 am Invest in world-class talent Sarah 10:25 am Tests that impact decisions Jorge, Jake, Brian 11:10 am Generate rock-solid evidence Jorge 11:25 am Increase access & drive adoption Everett 11:35 am Break, lunch provided 11:55 am Provide a seamless experience Everett 12:05 pm Drive profitable revenue Jeff 12:20 pm Panel Q&A session All presenters 1:05 pm Break 1:10 pm Physician panel 1:40 pm Patient testimonial Christi Andringa 1:50 pm Closing remarks Kevin EXACT SCIENCES 3

 

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Kevin Conroy Chairman and CEO We aim to eradicate cancer with tests that help prevent it, detect it earlier, and guide treatment. EXACT SCIENCES 5

 

Innovation Accountability Our core values are embedded in everything we do IntegrityTeamworkQuality 6EXACT SCIENCES

 

LEADERSHIP EXPECTATIONS AND BEHAVIORS T ne team approach puts team ahead of self eeks and acts on feedback Celebrates success and frames failure as progress Acts on curiosity and al ays learning Acts like an o ner makes decisions and moves uickly Takes personal accountability to deliver uality results istens, thinks, plans and then acts Relentlessly focuses on our customers and front line T T Insists on high standards and holds others accountable Attracts and keeps the best people and able to make tough people decisions Develops and coaches others istens attentively, speaks candidly, and treats others respectfully parks innovation and inspires ne ideas Big vision and paints a po erful picture that energi es people to ard the future as courage to take risks and fail Challe nges the status uo EXACT SCIENCES 7

 

Provide a seamless experience for customers Invest in world-class talent dedicated to fighting cancer Offer tests that impact decision-making Increase access & drive adoption Generate rock-solid clinical evidence Drive profitable revenue 8EXACT SCIENCES

 

TOP-LINE BLUE-C RESULTS VISIONARY COLLABORATIONS Progress towards eradicating cancer EXACT SCIENCES 9

 

next-generation A new standard in non-invasive screening 10EXACT SCIENCES

 

next-generation 90% specificity including no findings 92% cancer sensitivity 69% high-grade dysplasia sensitivity 42% advanced precancer sensitivity DeeP-C 93% specificity including no findings 94% cancer sensitivity 75% high-grade dysplasia sensitivity 43% advanced precancer sensitivity BLUE-C Source: Imperiale TF et al., N Engl J Med (2014) Source: Exact Sciences internal data 87% specificity including non- advanced findings 91% specificity including non- advanced findings 11 EXACT SCIENCES

 

MRD & recurrence Prognosis & prediction Hereditary testing Screening & diagnosis Early-stage therapy expected 2023 How we help detect cancer earlier and provide smarter answers at every step multi-cancer liver, esophageal, & others Includes tests in development, which are not available for sale or approved by FDA 12EXACT SCIENCES

 

13 13EXACT SCIENCES

 

Sarah Condella EVP, Human Resources Invest in world-class talent 1414EXACT SCIENCES

 

Provide a seamless experience for customers Invest in world-class talent dedicated to fighting cancer Offer tests that impact decision-making Increase access & drive adoption Generate rock-solid clinical evidence Drive profitable revenue 15 EXACT SCIENCES

 

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6,300+ teammates dedicated to defeating cancer 100% of teammates are shareholders 54% gender diversity The driving force behind our flywheel is our team 40+ locations globally in 18 cities Source: Exact Sciences internal data 17 EXACT SCIENCES

 

ATTRACT DEVELOP RETAIN 1818EXACT SCIENCES

 

2017 2018 2019 2020 2021 2022 1Q23 23K+ AVERAGE # OF QUARTERLY JOB APPLICATIONS Our magnetic, purpose-driven culture attracts the best talent Source: Exact Sciences internal data ATTRACT 19EXACT SCIENCES

 

Creating a more sustainable, cancer-free world for future generations 20 ATTRACT AND HIRE ATTRACT EXACT SCIENCES

 

330K annual training hours 80%+ of teammates participate in wellness program 2 in 5 teammates enrolled in mentorship program Developing and promoting career growth is key to our success EXACT SCIENCES Source: Exact Sciences internal data 21 DEVELOP & GROW DEVELOP

 

Fostering innovation through engagement Best Workplaces in BiopharmaTM Best-in-State Employer GREAT PLACE TO WORK RESULTS 82% 57% Typical company Source: Exact Sciences internal data RETAIN 22EXACT SCIENCES

 

Changing lives, together 23EXACT SCIENCES

 

Jorge Garces Chief Science Officer Develop tests that impact decisions 2424EXACT SCIENCES

 

Provide a seamless experience for customers Invest in world-class talent dedicated to fighting cancer Offer tests that impact decision-making Increase access & drive adoption Generate rock-solid clinical evidence Drive profitable revenue 25EXACT SCIENCES

 

OUR CAPACITY 100K+ square feet of operational R&D lab space 4 R&D centers globally OUR TEAM 285 scientists 110 PhDs in R&D Broad scientific capabilities & leadership Source: Exact Sciences internal data 26EXACT SCIENCES

 

Research & development Approval Adoption & access Sample & data collection discovery, evaluation, feasibility, development, proof of concept Analytical performance sensitivity, specificity, precision, repeatability, reproducibility, limits of detection Clinical performance & safety sensitivity, specificity, NPV and PPV, comparisons to SOC or alternative device Clinical benefit vs. risk impact on mortality, disease-free survival, clinical decisions, adherence, preferences, anxiety Real-world benefit vs. risk net health benefit, health economic impact, safety monitoring CLIA, FDA, NY, CMS, CE Mark providers, payers, guidelines Methodical approach to product and evidence development EXACT SCIENCES 27 27 T SCIENCES

 

Multi-omics is the answer San Diego, CA Transcriptomics (RNA) Madison, WI Munich, Germany Proteomics (Proteins) Madison, WI San Diego, CA Boston, MA Genomics (DNA) 28EXACT SCIENCES

 

Lung Liver Stomach Colon Bile duct Esophagus Prostate Pancreas Sample acquisition Whole methylome sequencing Marker selection Marker refinement Marker testing in tissue and plasma Refining assays and finalizing markers Methylation Unmatched marker discovery capabilities Breast Ovary Lymphoma Uterus Cervix Melanoma Renal Bladder 500 methylation markers validated across 16 of the deadliest cancers Source: Exact Sciences internal data 29EXACT SCIENCES

 

30 Validate in blood, stool, other Marker selection process Methylation Unmatched marker discovery capabilities Discover markers in tissue Source: Marinelli et al., Gyn Onc, 2022; Chiesa et al., BMC BIX, 2020 F Dataset Learning dataset Independent test set Training set Validation set Feature selection Build classifier Evaluation Evaluation Best model 5-fold cross validation M a rk e rs w ith G re a te s t S ig n a l to N o is e Healthy controls Ovarian cancers M ar ke rs w it h g re at es t si g n al t o n o is e EXACT SCIENCES

 

Mutations Unmatched marker discovery capabilities 31EXACT SCIENCES

 

Proteins Unmatched marker discovery capabilities Protein Discovery Platform Assay Platform Thousands of proteins and phosphopeptides 1 cancer sample Source: Exact Sciences internal data Sample preparation Liquid chromatography Mass spectrometry Spectra interpretation Protein quantification Data analysis 32EXACT SCIENCES

 

Expertise across technologies with an automated platform SANGER SEQUENCING HIGH-THROUGHPUT NGS PRODUCTION-SCALE NGS Sequencing power for all applications with 60 platforms Source: Exact Sciences internal data 26K transcriptomes sequenced 2.6K genomes sequenced 247K exomes sequenced 33EXACT SCIENCES

 

Expertise across technologies with an automated platform SaferSeqS & RealSeqS Safer Sequencing System & Repetitive Element AneupLoidy Sequencing System Exact Sciences maintains exclusive rights Detects variants at frequencies below 1 in 100K DNA molecules Reduces the error rate of existing PCR-based molecular barcoding approaches by >100-fold Method can detect aneuploidy in samples containing as little as 3 pg of DNA 300-400K amplicons distributed throughout the genome are clustered and analyzed 34EXACT SCIENCES

 

Expertise across technologies with an automated platform TELQASTM Chemistry Target Enrichment Long probe Quantitative Amplified Signal Developed and owned by Exact Sciences Single copy detection Faster time to result Multiplex PCR 12 cycles 4,096-fold amplification LQAS Limited sample 0 20 40 60 80 100 120 0 10 20 30 40 R F U Cycle # LQAS TaqMan 10K 100 10K 100 Source: Exact Sciences internal data 35EXACT SCIENCES

 

300 Hamilton liquid handlers 130 Real-time ABI 7500 systems 60 Sequencers Source: Exact Sciences internal data Exact Sciences is technology agnostic Expertise across technologies with an automated platform 36EXACT SCIENCES

 

Expertise across technologies with an automated platform LBgard® Proprietary technology increases yield and decreases contamination 109% increase in plasma recovery yield 52% decrease in gDNA contamination Source: Dodson G et al., Advances in Liquid Biopsy: LBgard® Blood Tubes for Multi-omic Testing Applications Whitepaper (2021) Plasma Cell-free DNA (cfDNA) Proteins Exosomes Buffy coat layer White Blood Cells (WBC) Circulating Tumor Cells (CTC) Plastic external tube Glass internal coating Red Blood Cells (RBC) 37EXACT SCIENCES

 

38 Proficiency optimizing comprehensive algorithmstraining sets cross validation validation sets independent test sets artificial neural networks multi-marker approach proprietary chemistry machine learning classifier 70 person bioinformatics team 38EXACT SCIENCES

 

900+ patents issued worldwide 400+ patent applications filed Strong intellectual property portfolio protects unique advantages Source: Exact Sciences internal data 39EXACT SCIENCES

 

Jake Orville General Manager, Screening Offer tests that impact decisions 40EXACT SCIENCES

 

MRD & recurrence Prognosis & prediction Hereditary testing Screening & diagnosis Early-stage therapy expected 2023 How we help detect cancer earlier and provide smarter answers at every step multi-cancer liver, esophageal, & others Includes tests in development, which are not available for sale or approved by FDA 41EXACT SCIENCES

 

Therapy selection & monitoring MRD & recurrence Prognosis & prediction Hereditary testing Screening & diagnosis Early-stage therapy expected 2023 Providing the best screening tests to help prevent and detect cancer earlier multi-cancer liver, esophageal, & others Includes tests in development, which are not available for sale or approved by FDA 42EXACT SCIENCES

 

unscreened Americans ages 45-85 60M Diagnosed in stage IV 1 out of 10 survive Source: Fisher D et al., ASCO Gastrointestinal Cancers Symposium (2022); Exact Sciences estimates based on 51% screening rate for ages 50-85 and 10-15% screening rate for ages 45-49; Siegel RL et al., Cancer Statistics (2022) COLORECTAL CANCER 43EXACT SCIENCES

 

No sedation No time off work No preparation 94% 91% Easy to use Non-invasive 24/7 support Source: Imperiale TF et al., N Engl J Med (2014); Siegel RL et al., Cancer Statistics (2022); Exact Sciences internal data Diagnosed in stages I & II 9 out of 10 survive COLORECTAL CANCER 92% 87% specificitycancer sensitivity 44EXACT SCIENCES

 

2013 2015 2017 2019 2021 Announced DeeP-C results Apr Medicare Stars Apr ~90% insurance coverage Jul 2M people screened Feb 2023 2025 2027 30M+ expected people screened 2012 2014 2016 2018 2020 2022 Completed DeeP-C enrollment Nov FDA approval Aug Medicare NCD Oct USPSTF guidelines Jun HEDIS measures Oct 1M people screened Feb 10M people screened Nov 2024 2026 2028 Expected USPSTF update COLORECTAL CANCER COLORECTAL CANCER 45EXACT SCIENCES

 

expected people screened by 2027 35M+ expected people screened by 2027 COLORECTAL CANCER 46EXACT SCIENCES

 

A test and services Options and services COLORECTAL CANCER 47EXACT SCIENCES

 

70% of cancers have no SCREENING OPTIONS Source: United States Preventive Services Task Force. A and B recommendations (2022); Siegel RL et al., A. Cancer Statistics (2021); Siegel DA et al., JAMA Oncol. (2021); Richards TB et al. Morb Mortal Wkly Rep. (2020); American Cancer Society statistics on average 5-year relative survival rates for 19 leading cancers Diagnosed in stage IV 2 out of 10 survive MULTI-CANCER 48EXACT SCIENCES

 

Americans ages 45-85 135M Source: U.S. Census data; American Cancer Society statistics on average 5-year relative survival rates for 19 leading cancers Diagnosed in stage I 8 out of 10 survive MULTI-CANCER 49EXACT SCIENCES

 

35% improvement in early-stage sensitivity 29% 3 marker classes 39% 4 marker classes Adding mutation to methylation improves accuracy DETECT-A The first prospective study 10K asymptomatic people Doubled cancers found compared to SOC alone 2/3 were earlier stages Source: Lennon AM et al., Science (2020); Douville et al., ESMO congress poster (2022) MULTI-CANCER Case-control data presented at ESMO 2022 50EXACT SCIENCES

 

Refine clinical implementation practices Generate real-world evidence Optimize ordering workflow MULTI-CANCER 51EXACT SCIENCES

 

TO CREATE TM BUILT ON THE FOUNDATION CREATED BY EXACT SCIENCES ACQUIRES THRIVE 52EXACT SCIENCES

 

MRD & recurrence Prognosis & prediction Hereditary testing Screening & diagnosis Early-stage therapy expected 2023 How we help detect cancer earlier and provide smarter answers at every step liver, esophageal, & others Includes tests in development, which are not available for sale or approved by FDA 53EXACT SCIENCES

 

Brian Baranick General Manager, Precision Oncology Offer tests that impact decisions 54EXACT SCIENCES

 

MRD & recurrence Prognosis & prediction Hereditary testing Screening & diagnosis Early-stage therapy expected 2023 Enabling personalized medicine through our Precision Oncology portfolio liver, esophageal, & others Includes tests in development, which are not available for sale or approved by FDA 55EXACT SCIENCES

 

56 KATIE COURIC VIDEO https://exactsciences.app.box.com/s/z od7dxyokb5iyeanxe4t2rrn841nnkoi 56EXACT SCIENCES

 

~1M U.S. patients spared unnecessary chemotherapy Oncotype DX established a new standard in personalized cancer care ~1.2M cumulative U.S. patients tested $400M+ U.S. revenue 80%+ U.S. market penetration Source: Sparano et al., N Engl J Med (2018); Geyer et al., NPJ Breast Cancer (2018); Exact Sciences internal data 57EXACT SCIENCES

 

Oncotype DX is supported by unmatched evidence and all major guidelines Range: 0-100 ASCO® NCCN® ESMO ST. GALLEN NICE 100K+ patients with published prospective outcomes TAILORx 10K women, 12 years RxPONDER 5K women, 5 years Source: Sparano et al., N Engl J Med (2018); Geyer et al., NPJ Breast Cancer (2018) 58EXACT SCIENCES

 

Oncotype DX provides an international Precision Oncology footprint Solidify standard of care in established markets Increase adoption in growing markets Launch in new markets 110 sales team members 120 country presence + Source: Exact Sciences internal data 59EXACT SCIENCES

 

Our platform provides unique advantages in Precision Oncology Commercial channel Relationships with 90%+ of oncologists Tissue access ~200K samples each year EMR platform Seamless ordering and resulting Logistics capabilities Experience with complex workflows Lab operations excellence Automation enables scale Patient compliance engine Facilitates recurring testing Portfolio of oncology tests Multiple tests per patient Global footprint Presence in 120 countries Source: Exact Sciences internal data 60EXACT SCIENCES

 

Hybrid capture technology Targets and captures specific DNA fragments Proprietary detection algorithm Operationally reliable Superior LBgard® collection tubes 61EXACT SCIENCES

 

Whole genome technology Expanded breadth of mutations Attractive cost profile 62EXACT SCIENCES

 

EXACT SCIENCES Second largest opportunity Established evidence & reimbursement Synergies with Cologuard Largest opportunity Demonstrate clinical utility through partnerships Significant synergies with Oncotype DX Universal MRD platform Tumor-informed and -agnostic approaches Synergies with Cancerguard COLON CANCER BREAST CANCER ADDITIONAL CANCER TYPES Universal platform supports entrance into colon cancer and expansion soon after Source: Exact Sciences estimates 63CT SCIENCES

 

Providing ultra-comprehensive genomic profiling, including DNA and RNA 20,000 genes ~325 20,000+ targets ~50 OncoExTraOther tests DNA (tumor + inherited) RNA Protein Source: Exact Sciences internal data 64EXACT SCIENCES

 

HEREDITARY CANCER MRD BASELINE MRD SURVEILLANCE MRD SURVEILLANCE MRD SURVEILLANCE RS result + - + - 48 + - + - + - Selena, a colorectal cancer patient Illustrative example, not a real patient + - 65 EXACT SCIENCES

 

MRD BASELINE MRD SURVEILLANCE MRD SURVEILLANCE MRD SURVEILLANCE RS result + - 48 + - + - + - Selena, a colorectal cancer patient SCREENING + - + - Illustrative example, not a real patient 66 EXACT SCIENCES

 

MRD BASELINE MRD SURVEILLANCE MRD SURVEILLANCE MRD SURVEILLANCE RS result + - 48 + - + - + - Selena, a colorectal cancer patient EARLY-STAGE CANCER + - -+ Illustrative example, not a real patient 67 EXACT SCIENCES

 

MRD BASELINE MRD SURVEILLANCE MRD SURVEILLANCE MRD SURVEILLANCE RS result + - 48 + - + - + - Selena, a colorectal cancer patient RECURRENCE TESTING + - -+ Illustrative example, not a real patient 68 EXACT SCIENCES

 

MRD BASELINE MRD SURVEILLANCE MRD SURVEILLANCE MRD SURVEILLANCE RS result + - 48 + - + - + - Selena, a colorectal cancer patient RELAPSE + - -+ 69 Illustrative example, not a real patientEXACT SCIENCES

 

Jorge Garces Chief Science Officer Generate rock- solid evidence 707EXACT SCIENCES

 

Provide a seamless experience for customers Invest in world-class talent dedicated to fighting cancer Offer tests that impact decision-making Increase access & drive adoption Generate rock-solid clinical evidence Drive profitable revenue 71EXACT SCIENCES

 

Generating evidence “the xact way” Clinical trials definitively establishing test performance Real-world evidence and long-term outcomes supporting test use Modeling studies demonstrating population impact 727EXACT SCIENCES

 

73 6 NEJM publications Exact Sciences conducts studies that make a difference over the long term 10K 5K 10K 10K 20KBLUE-C TAILOR-X RxPONDER DeeP-C DETECT-A Source: Sparano JA et al., N Engl J Med (2018); Kalinsky K et al., N Engl J Med (2021); Imperiale TF et al., N Engl J Med (2014); Paik S et al., N Engl J Med (2004); Sparano JA et al., N Engl J Med (2015); Sparano JA et al., N Engl J Med (2019); Lennon A et al., Science (2020) EXACT SCIENCES

 

439K 271K 186K 116K 69K 10K 9K 1K Plasma Stool Buffy coat Serum Tissue Cell pellet Blood Urine Aliquots in storage by sample type 100+ Clinical Affairs team members 275+ completed/ongoing clinical studies 292K+ cumulative people enrolled We have access to more than 1.1M high-quality samples Source: Exact Sciences internal data 74EXACT SCIENCES

 

next-generation BLUE-C Source: Exact Sciences internal data; Imperiale TF et al., N Engl J Med (2014) 94% cancer sensitivity 91% specificity including non- advanced findings CLINICAL TRIALS Category, n (%) BLUE-C (n=20,208) DeeP-C (n=9,989) Colorectal cancer 98 (0.48) 65 (0.65) Advanced pre- cancerous lesions 2,146 (10.6) 757 (7.6) Non-advanced adenomas 6,983 (34.6) 2,893 (29.0) Negative 10,981 (54.3) 6,274 (62.8) 75EXACT SCIENCES

 

DETECT-A Source: Buchannan A et al., ASCO (2023); Lennon A et al., ASCO (2023) 100% 86% of early-stage diagnosed and treated patients still living cancer free of surgically-treated patients in remission <1% of false-positive results developed cancer annually over 4 years REAL-WORLD EVIDENCE 76EXACT SCIENCES

 

90K patients with invasive breast cancer 9 years of follow up Source: Geyer C et al., ASCO abstract (2023) SEER data Confirmed Oncotype DX was prognostic for breast cancer-specific mortality REAL-WORLD EVIDENCE 77EXACT SCIENCES

 

100+ health economic studies in the last 3 years 40K+ scenarios simulated 21K lines of code in one colorectal cancer model Source: Exact Sciences internal data MODELING STUDIES 78EXACT SCIENCES

 

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Everett Cunningham Chief Commercial Officer Increase access and drive adoption 808EXACT SCIENCES

 

Provide a seamless experience for customers Invest in world-class talent dedicated to fighting cancer Offer tests that impact decision-making Increase access & drive adoption Generate rock-solid clinical evidence Drive profitable revenue 81EXACT SCIENCES

 

1,200 person commercial organization Field team Health technology Provider marketing Market access Health systems Consumer marketing Medical geneticists 1,000 person field team Primary care Women’s health Gastro- enterology International oncology Oncology Surgeons Source: Exact Sciences internal data 82EXACT SCIENCES

 

The most powerful commercial engine in diagnostics 780 in-network agreements 370K cumulative providers have ordered brand awareness 85% 60 biopharma partnerships electronic connections 275 PAYERSHEALTH CARE PROFESSIONALS PATIENTS PHARMAHEALTH SYSTEMS Source: Exact Sciences internal data 83EXACT SCIENCES

 

Deploying an all-encompassing sales and marketing strategy Educating health care professionals Health systems and payer relationships Surround sound marketing 848EXACT SCIENCES

 

85 1.6M+ FIELD CALLS EACH YEAR Source: Exact Sciences internal data EDUCATING HEALTH CARE PROFESSIONALS 8EXACT SCIENCES

 

Educating health care professionals Data-driven insights promote agility and consistency EDUCATING HEALTH CARE PROFESSIONALS 86EXACT SCIENCES

 

EDUCATING HEALTH CARE PROFESSIONALS 87EXACT SCIENCES

 

88 400 largest U.S. health systems 85 strategic account managers 60 oncology centers and integrated delivery networks Health technology solutions Targets Source: Exact Sciences internal data HEALTH SYSTEM & PAYER RELATIONSHIPS 8EXACT SCIENCES

 

90% of 21K unscreened people being ordered a Cologuard Cologuard auto ordered for cancelled or no-show colonoscopies INFORMATION TECHNOLOGY SUPPORT Source: Exact Sciences internal data HEALTH SYSTEM & PAYER RELATIONSHIPS 89EXACT SCIENCES

 

90 Sizzle reel video SURROUND SOUND MARKETING 90EXACT SCIENCES

 

SEARCH HCP CHANNELS SOCIAL RADIO TRADITIONAL VIDEO VIDEO STREAMING 10B+ advertisement impressions each year Source: Exact Sciences internal data SURROUND SOUND MARKETING 91EXACT SCIENCES

 

Optimizing spend as revenue grows 63% 50% 35% 52% 44% 55% 58%112% 2023E is midpoint of Exact Sciences guidance provided on May 9, 2023 92EXACT SCIENCES $99M $266M $454M $876M $1.49B $1.77B $2.08B $2.40B 2016 2017 2018 2019 2020 2021 2022 2023E Total revenue Sales & marketing expense 49% 41% 40% 44% 55% 58%114% Low 30’s

 

Everett Cunningham Chief Commercial Officer Provide seamless experience 93EXACT SCIENCES

 

Provide a seamless experience for customers Invest in world-class talent dedicated to fighting cancer Offer tests that impact decision-making Increase access & drive adoption Generate rock-solid clinical evidence Drive profitable revenue 94EXACT SCIENCES

 

e don’t just have great tests, we offer great services 95EXACT SCIENCES

 

15M+ patient calls each year 75%+ enabled by technology Source: Exact Sciences internal data 96EXACT SCIENCES

 

$62M $87M $113M $131M Customer experience Customer support team Test volume Investing in a seamless customer experience 2021 2022 2023E2020 Source: Exact Sciences internal data 97EXACT SCIENCES

 

We have been working to perfect the customer experience for nearly a decade 220+ experiments conducted Source: Exact Sciences internal data 98EXACT SCIENCES

 

doubled completion rate of schedule UPS pickup feature 3 min → 30 seconds amount of time to complete task 8 min→5.5 min total app time Cologuard kit return “app” improving ease of use Source: Exact Sciences internal data 99EXACT SCIENCES

 

AWARENESS SCREENING DIAGNOSIS RX SELECTION & MONITORING MAINTENANCE Difficult to track patients who need screening Leave EMR to order tests Ambiguous imaging creates difficult next- step decision Implications of genetic testing confusing, hard to explain Unsure which treatment to use with too many options Unaware/unsure of screening tests they need Anxious for results; test status unclear Overwhelmed by diagnosis – don’t kno what to do next Overwhelmed by tumor profiling info – don’t kno here to get explanations Difficult to keep track of when next test/ screening is due Challenges in cancer care Provider Patient Waiting for answers until follow-up visit; anxious about having cancer Test status, patient completion, time to receive results uncertain Illustrative example, not a real patient or provider 100EXACT SCIENCES

 

Waiting for answers until follow-up visit; anxious about having cancer AWARENESS SCREENING DIAGNOSIS RX SELECTION & MONITORING MAINTENANCE Provide list of patients eligible for screening Order EXAS test directly in EMR Help patient comply; provider tracks test completion Provide diagnostic/ prognostic support tools Refer patients to genetic counseling service and tools Offer clinical decision support tool to help determine best treatment Digital tool shows provider and patient they need to be screened Telehealth tool provides convenient access to provider for questions Track sample throughout process; know when result is ready Diagnosis details and next steps clearly explained Easy-to-consume, patient-specific result explanations available Receive reminders and links to re-order tests, telehealth support offered Challenges in cancer care Provider Patient Difficult to track patients who need screening Leave EMR to order tests Test status, patient completion, time to receive results uncertain Ambiguous imaging creates difficult next- step decision Implications of genetic testing confusing, hard to explain Unsure which treatment to use with too many options Unaware/unsure of screening tests they need Anxious for results; test status unclear Overwhelmed by diagnosis – don’t kno what to do next Overwhelmed by tumor profiling info – don’t kno here to get explanations Difficult to keep track of when next test/ screening is due Illustrative example, not a real patient or provider 101EXACT SCIENCES

 

EXACT SCIENCES Jeff Elliott Chief Financial Officer Drive profitable revenue 102T SCIENCES

 

Provide a seamless experience for customers Invest in world-class talent dedicated to fighting cancer Offer tests that impact decision-making Increase access & drive adoption Generate rock-solid clinical evidence Drive profitable revenue 103EXACT SCIENCES

 

EXACT SCIENCES Grow the core business Increase profits and cash flow Allocate capital 104T SCIENCES

 

EXACT SCIENCES $450M $598M 1Q22 1Q23 ($90M) $46M 1Q22 1Q23 ($207M) ($68M) 1Q22 1Q23 72.3% 74.0% 1Q22 1Q23 Adjusted EBITDA Free cash flowNon-GAAP gross marginCore revenue +33% +1.7 pts +$136M +$140M Q1 was a record-breaking quarter Please refer to the appendix accompanying this presentation for discussion of non-GAAP financial measures and reconciliations to GAAP financial measures GROW THE CORE BUSINESS 105T SCIENCES

 

EXACT SCIENCES ~15% compounded annual revenue growth 2022-2027 (excluding COVID and prostate) 20%+ adjusted EBITDA margin in 2027 FINANCIAL TARGETS Note: compounded annual revenue growth based on total revenue in 2022, excluding revenue generated from COVID-19 testing and the divested Oncotype prostate test 106T SCIENCES GROW THE CORE BUSINESS

 

EXACT SCIENCES $39M $99M $266M $454M $810M $815M $1.06B $1.42B $1.78B 2015 2016 2017 2018 2019 2020 2021 2022 2023E Screening revenue 8-year CAGR: 60%+ Growth drivers Commercial productivity Rescreens Health system connections 45-49 age group CAGR revenue calculated using GAAP figures; 2023E is midpoint of guidance provided on May 9, 2023; Exact Sciences acquired PreventionGenetics in January 2022 107T SCIENCES GROW THE CORE BUSINESS

 

EXACT SCIENCES $394M $456M $440M $562M $601M $613M 2018 2019 2020 2021 2022 2023E 5-year CAGR: 9% Precision Oncology revenue Growth drivers Therapy selection International expansion Biopharma partnerships Node-positive adoption CAGR revenue calculated using GAAP figures; 2023E is midpoint of guidance provided on May 9, 2023; Exact Sciences combined with Genomic Health in November 2019 and acquired Ashion Analytics in April 2021 108T SCIENCES GROW THE CORE BUSINESS

 

EXACT SCIENCES $15M $54M $188M $338M $660M $1.14B $1.31B $1.51B $1.75B 2015 2016 2017 2018 2019 2020 2021 2022 2023E Non-GAAP gross profit 73%+ Non-GAAP gross margin 8-year CAGR: 80%+ Key drivers Rescreen mix increasing Volume leverage Next-generation Cologuard Automation projects 2023E is midpoint of guidance provided on May 9, 2023; Please refer to the appendix accompanying this presentation for discussion of non-GAAP financial measures and reconciliations to GAAP financial measures 109T SCIENCES GROW THE CORE BUSINESS

 

EXACT SCIENCES ($90M) ($46M) ($13M) $5M $46M 1Q22 2Q22 3Q22 4Q22 1Q23 Adjusted EBITDA grew $136M Y/Y 2023 guidance 2027 target 5% 20% Expect adjusted EBITDA margin to increase 15 pts by 2027 2023 guidance for adjusted EBITDA margin refers to midpoint of guidance provided on May 9, 2023; Please refer to the appendix accompanying this presentation for discussion of non-GAAP financial measures and reconciliations to GAAP financial measures INCREASE PROFITS & CASH FLOW 110T SCIENCES

 

EXACT SCIENCES ~30 pt ~20 pt higher compliance for 2nd rescreen higher compliance for 1st rescreen Source: Exact Sciences internal data based on 90-day adherence rates 0.8M 1.3M 1.3M 1.7M 2.0M 0.1M 0.3M 0.4M 2021 2022 2023E 2024E 2025E Eligible for second rescreen Eligible for first rescreen INCREASE PROFITS & CASH FLOW 111T SCIENCES

 

EXACT SCIENCES ($124M) ($86M) ($21M) ($68M) 2Q22 3Q22 4Q22 1Q23 2Q23E Positive Free cash flow Please refer to the appendix accompanying this presentation for discussion of non-GAAP financial measures and reconciliations to GAAP financial measures INCREASE PROFITS & CASH FLOW 112T SCIENCES

 

EXACT SCIENCES Core business Pipeline opportunities Retaining cash flow Disciplined capital allocation ALLOCATE CAPITAL 113T SCIENCES

 

EXACT SCIENCES 20 25 30 35 40 45 50 Jan 22 Mar 22 May 22 Jul 22 Sep 22 Nov 22 Jan 23 Mar 23 20-day decrease in DSOs 0K 5K 10K 15K 20K 25K 30K 35K Jan 22 Mar 22 May 22 Jul 22 Sep 22 Nov 22 Jan 23 Mar 23 99% decrease in Cologuard claim errors Source: Exact Sciences internal data ALLOCATE CAPITAL 114T SCIENCES

 

EXACT SCIENCES $200M cumulative cost savings expected by 2030 Enhancing our state-of-the-art labs ALLOCATE CAPITAL 115T SCIENCES

 

116 Total market penetration 20%0% 40% 60% 80% 100% Market size ($) Source: U.S. Census data and Exact Sciences estimates; U.S. markets only Esophageal Therapy selection Breast MCED $25B CRC $18BMRD $15B Liver Hereditary cancer testing Lung Thyroid Pancreatic Rare disease ALLOCATE CAPITAL 116EXACT SCIENCES

 

EXACT SCIENCES $1.75B $230M 1 2 $316M $44M 1 2 Dx group average ~7x incremental revenue growth Dx group average ~8x non-GAAP gross profit dollars Source: Exact Sciences guidance provided May 9, 2023; FactSet Dx group includes 23andMe, Adaptive, GeneDX, Guardant Health, Invitae, Myriad, Natera, NeoGenomics, Personalis, Veracyte Please refer to the appendix accompanying this presentation for discussion of non-GAAP financial measures and reconciliations to GAAP financial measures 117T SCIENCES

 

EXACT SCIENCES Q&A session 118T SCIENCES

 

EXACT SCIENCES Expert health care professional panel Charles Geyer MD, FACP Chief Scientific Officer, NSABP Foundation Professor of Medicine, UPMC Hillman Cancer Center Lisa Ravindra MD, FACP Assistant Professor of Medicine, Division of General Internal Medicine Associate Chief Medical Informatics Officer, Rush University Medical Center Seth A. Gross MD, FACG, FASGE, AGAF Professor of Medicine Clinical Chief, Division of Gastroenterology and Hepatology, NYU Langone Health Ronan J. Kelly MD, MBA Director of the Charles A. Sammons Cancer Center, Baylor University Medical Center Chief of Oncology, Baylor Scott & White Health System W.W. Caruth Jr. Endowed Chair of Immunology at Baylor University Medical Center Clinical Professor, Texas A&M University College of Medicine Adjunct Associate Professor of Oncology, Sidney Kimmel Comprehensive Cancer Center, Johns Hopkins Professor, Clinical Sciences Division at the Translational Genomics Research Institute (TGEN) The members of the HCP Panel have been asked to share their views and opinions based on their professional and clinical experience. They are being compensated for their time today. 119T SCIENCES

 

EXACT SCIENCES 120 120T SCIENCES

 

EXACT SCIENCES Exact Sciences is a powerful innovator and growth engine our team powers our flywheel best-in-class scientific capabilities profitable growth for years to come 121

 

EXACT SCIENCES We aim to eradicate cancer with tests that help prevent it, detect it earlier, and guide treatment. 122EXACT SCIENCES

 

EXACT SCIENCES In addition to the company's financial results determined in accordance with U.S. GAAP, the company provides non-GAAP measures that it determines to be useful in evaluating its operating performance and liquidity. The company presents EBITDA, adjusted EBITDA, non-GAAP gross margin, non-GAAP gross profit, core revenue, and free cash flow. EBITDA and adjusted EBITDA consist of net loss after adjustment for those items shown in the table below. The company defines non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding amortization of acquired intangible assets. The amortization of acquisition-related intangible assets used in the calculation of non-GAAP gross profit and non-GAAP gross margin pertain only to the amortization associated with developed technology acquired and recorded through purchase accounting transactions. The amortization of these intangible assets will recur in future periods until such intangible assets have been fully amortized. Core revenue is calculated to adjust for recent divestitures, COVID-19 testing revenue and foreign currency exchange rate fluctuations. To exclude the impact of change in foreign currency exchange rates from the prior period under comparison, the Company converts the current period non-U.S. dollar denominated revenue using the prior year comparative period exchange rates. The company considers free cash flow to be a liquidity measure and is calculated as net cash used in or provided by operating activities, reduced by purchases of property, plant and equipment. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the company’s core operating results and comparison of operating results across reporting periods. The company uses this non-GAAP financial information to establish budgets, manage the company’s business, and in setting incentive and compensation arrangements. The company believes free cash flow provides useful information to management and investors since it measures our ability to generate cash from business operations. Non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental information purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. For example, non-GAAP gross margin and non-GAAP gross profit exclude the amortization of acquired intangible assets although such measures include the revenue associated with the acquisitions. Additionally, adjusted EBITDA excludes a number of expense items that are included in net loss. As a result, positive adjusted EBITDA may be achieved while a significant net loss persists. For a reconciliation of these non-GAAP measures to GAAP, please see below tables. The company presents certain forward-looking statements about the company’s future financial performance that include non-GAAP measures. These non-GAAP measures include adjustments like stock-based compensation, acquisition and integration costs including gains and losses on contingent consideration liabilities that are difficult to predict for future periods because the nature of the adjustments pertain to events that have not yet occurred. Additionally, management does not forecast many of the excluded items for internal use. Information reconciling forward-looking non-GAAP measures to U.S. GAAP measures is therefore not available without unreasonable effort and is not provided. The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact the Company’s GAAP results. Appendix Non-GAAP disclosure 123

 

EXACT SCIENCESEXACT SCIENCES 124 EXACT SCIENCES CORPORATION Selected Unaudited Financial Information EBITDA and Adjusted EBITDA Reconciliations (Amounts in thousands) (1) Interest expense (income) for the three months ended March 31, 2023, includes a $10.3 million net gain recorded on the settlement of convertible notes, which represents the difference between (i) the fair value of the consideration transferred and (ii) the sum of the carrying value of the debt at the time of the exchange. (2) Represents stock-based compensation expense and 401(k) match expense as the Company matches a portion of Exact Sciences employees' contributions annually in the form of the Company's common stock. (3) Represents acquisition and related integration costs incurred as a result of the Company's business combinations and asset acquisitions. This includes fees for professional services and the remeasurement of the contingent consideration liabilities in connection with business combinations. (4) Represents severance and legal fees incurred by the Company as a result of proactive measures the Company put in place to address the impact of the inflationary environment and other macroeconomic trends. (5) Represents the loss on the sale of the intellectual property and know-how related to the Company's Oncotype DX Genomic Prostate Score® test to MDxHealth SA and related severance, accelerated stock-based compensation, legal, and other professional service fees related to the divestiture. (6) Represents impairment charges on the Company’s long-lived assets including acquired developed technology and supply agreement intangible assets and building leases. (7) The Company presented a settlement offer of approximately $29 million to the United States Department of Justice ("DOJ") concerning the DOJ's investigation of Genomic Health's compliance with the Medicare Date of Service billing regulations. As a result, the Company increased its accrual from $10 million that was initially accrued for in the third quarter of 2021 to $29 million. This represents the Company's best estimate of the probable loss for this matter, but the recorded amount may be materially adversely affected by an ultimate unfavorable resolution of this matter. (In thousands) 1Q22 2Q22 3Q22 4Q22 1Q23 Net loss $ (180,937) $ (166,063) $ (148,761) $ (127,745) $ (74,151) Interest expense (income) (1) 4,478 4,511 5,235 5,410 (4,107) Depreciation and amortization 47,647 51,861 48,569 49,481 49,743 Income tax (benefit) expense (2,015) (1,751) (3,116) (2,182) 1,657 EBITDA $ (130,827) $ (111,442) $ (98,073) $ (75,036) $ (26,858) Stock-based compensation (2) 65,481 64,494 58,328 50,789 61,897 Investment loss (income) 1,487 3,719 8,584 5,635 (490) Acquisition and integration costs (3) (25,961) (23,742) (4,992) 1,175 (8,547) Reduction-in-force severance (4) — 14,613 — 18,886 907 Loss on sale of asset and divestiture related costs (5) — 17,165 53 — Impairment of long-lived assets (6) — 6,591 5,946 3,432 69 Legal settlement (7) — — — — 18,936 Adjusted EBITDA $ (89,820) $ (45,767) $ (13,042) $ 4,934 $ 45,914