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The Need for Growth inWisconsin’s Tech Sector

Forward FestAugust 25, 2015

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Exact Sciences progress since 2013

Five keys to changing Wisconsin’s economy

Importance of entrepreneurship in Wisconsin

Forward Fest 2015Why the success of Wisconsin’s tech industry is critical

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Cologuard®: The Foundation to Our Success

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Physicians Ordering Cologuard® is Rapidly Expanding

14,700 ordering physicians

Adding ~500 new physicians weekly

14Source: Exact Sciences Laboratories LLC data (unpublished)

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Cologuard’s® Strong Demand and Launch Trajectory

Q4 Q1 Q2 Q34K

11K

21K

>32K

Completed Cologuard Tests

Guidance

Source: Exact Sciences Laboratories LLC data (unpublished)

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Never screened be-

fore

Screened with colonscopy

only

Screened with colonscopy

and FIT/FOBT

Screened with FIT/FOBT only

36%36%

Source: Exact Sciences Laboratories LLC data (unpublished), n = 2,997

8%20%

Screening History of Cologuard® UsersIncreasing America’s screening population

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Building a Team with High-Quality Talent

2009 2010 2011 2012 2013 2014 2015

3 35 61 87102

409

682Exact Sciences personnel growth: 2009 through Today

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Developing a World-Class LabCapable of processing more than 1 million Cologuard® tests per year

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Committing to Growing in Madison

10Source: Exact Sciences Data

Innovation Requires InvestmentNine financings raised more than $685 million

Jun-09 Apr-10 Nov-10 Dec-11 Aug-12 Jun-13 Apr-14 Dec-14 Jul-15

$8.2 M $18.9 M

$69.0 M

$28.8 M

$61.2 M $78.1 M

$146.6 M

$100.0 M

$175.0 M

Pancreatic Esophageal Lung

Developing a Pipeline of Tests to Detect Cancer Early

Combined: 270,000

US deaths per year

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Remaining Committed to Wisconsin

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Entrepreneurs Really Matter to Wisconsin

14Source: U.S. Census Bureau, 2010-2030 5-Year American Community Survey Estimation

Aging Population and Workforce

2010 2011 2012 2013 2015 2020 2025 2030

20 - 44

45 - 64

65+

Projecting Wisconsin Population by Age

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Wisconsin’s Shrinking Middle ClassMedian household income falling

$56,208

2005 2013

$51,467

Source: U.S. Census Bureau Data

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New Firms are the Largest Drivers of Job Creation

Source: Kaufman Foundation

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Startups Create More Jobs than All Other Companies

18Source: U.S. Census Bureau; fivethirtyeight.com

But the Share of New Businesses has DeclinedStartups as a percentage of total

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Wisconsin’s Ranking for Startup Activity

Only 100 new ventures per 100,000 residents

50thKauffman Foundation

2015 Ranking

Source: Kaufman Foundation

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Wisconsin MinnesotaPopulation 5.7M 5.4M

Per capita income (2013) $51,467 $59,836

Gross state production (GSP) $293B $326B

Budget surplus/deficit (projected) - $233M* $1.9B

Percentage of college graduates 25% 31%

Venture capital funding (2013) $34M $270M

Source: www.stats.indiana.edu

21Source: MoneyTree; PWC

Venture Capital Investment (2010 – 2015)Minnesota outpaced Wisconsin by more than 3X

Wisconsin Minnesota

$396 million

$1.4 billion

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Ideas for Wisconsin’s Long-Term Growth

Education Raise standards, more apprenticeship programs, focus on entrepreneurship

Collaboration Improve connectivity among startups ;Renew 2000-2003 UW Economic Summit

Change industry mix Focus public policy on growth industries: information systems, health care, life sciences

Capital formation Attract more venture capital, angel investors, banks and early-stage financing

Accountability Hold UW System and WARF accountable for startup formation

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Five Keys to Changing Wisconsin’s Economy

Talent

Collaboration

Innovation

Capital

Entrepreneurship