1. business and industrial
2. company
3. annual report

Building a Sustainable Growth Company
May 1, 2015
HOLX Investor Overview / May 1, 2015
Safe Harbor Statement
This presentation contains forward-looking information that involves risks and uncertainties, including statements about the Company’s plans, objectives,
expectations and intentions. Such statements include, without limitation: financial or other information based upon or otherwise incorporating judgments or
estimates relating to future performance, events or expectations; the Company’s strategies, positioning, resources, capabilities and expectations for future
performance; and the Company's outlook and financial and other guidance. These statements are based upon assumptions made by the Company as of the
date hereof and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations.
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: the ability of the Company to successfully manage leadership and organizational changes, including the ability of the
Company to attract, motivate and retain key employees; U.S., European and worldwide economic conditions and related uncertainties; the Company’s reliance
on third‐party reimbursement policies to support the sales and market acceptance of its products, including the possible adverse impact of government
regulation and changes in the availability and amount of reimbursement and uncertainties for new products or product enhancements; uncertainties regarding
healthcare reform legislation, including associated tax provisions, or budget reduction or other cost containment efforts; changes in guidelines,
recommendations and studies published by various organizations that could affect the use of the Company’s products; uncertainties inherent in the
development of new products and the enhancement of existing products, including FDA approval and/or clearance and other regulatory risks, technical risks,
cost overruns and delays; the risk that products may contain undetected errors or defects or otherwise not perform as anticipated; risks associated with
strategic alliances and the ability of the Company to realize anticipated benefits of those alliances; risks associated with acquisitions, including, without
limitation, the Company’s ability to successfully integrate acquired businesses, the risks that the acquired businesses may not operate as effectively and
efficiently as expected even if otherwise successfully integrated; the risks that acquisitions may involve unexpected costs or unexpected liabilities; the risks of
conducting business internationally, including the effect of exchange rate fluctuations on those operations; manufacturing risks, including the Company’s
reliance on a single or limited source of supply for key components, and the need to comply with especially high standards for the manufacture of many of its
products; the Company’s ability to predict accurately the demand for its products, and products under development, and to develop strategies to address its
markets successfully; the early stage of market development for certain of the Company’s products; the Company’s leverage risks, including the Company’s
obligation to meet payment obligations and financial covenants associated with its debt; risks related to the use and protection of intellectual property;
expenses, uncertainties and potential liabilities relating to litigation, including, without limitation, commercial, intellectual property, employment and product
liability litigation; technical innovations that could render products marketed or under development by the Company obsolete; competition; and the Company’s
ability to attract and retain qualified personnel.
The risks included above are not exhaustive. Other factors that could adversely affect the company's business and prospects are described in filings made
with the SEC. 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.
Hologic, Aptima, Aptima Combo 2, Genius, Horizon, MyoSure, NovaSure, Panther, Selenia, The Science of Sure, ThinPrep, Tigris and associated logos, as
may be used in this presentation, are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in the United States and/or other
countries. Procleix is a trademark of Grifols Diagnostic Solutions Inc.
HOLX Investor Overview / May 1, 2015
2
Non-GAAP Financial Measures
Hologic has presented the following non-GAAP financial measures in this presentation: revenues; gross margins; operating expenses; operating income;
interest expense; pre-tax income; net income; EPS; and adjusted EBITDA. In this presentation, Hologic defines its non-GAAP revenues to primarily include
contingent revenue earned post-acquisiton in FY13 under its blood screening collaboration that was eliminated under purchase accounting. Hologic defines
adjusted EBITDA as its non-GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense included in its non-GAAP
net income. Hologic defines its non-GAAP gross margins, operating expenses, operating income, interest expense, pre-tax income and EPS to exclude, as
applicable: (i) the amortization of intangible assets and impairment of goodwill and intangible assets; (ii) acquisition-related charges and effects, such as
charges for contingent consideration, transaction costs, integration costs including retention, and credits and/or charges associated with the write-up of
acquired inventory and fixed assets to fair value, and the effect of a reduction in revenue related to contingent revenue under the Company’s blood screening
collaboration; (iii) non-cash interest expense related to amortization of the debt discount for the equity conversion option of convertible debt securities; (iv)
restructuring and divestiture charges; (v) non-cash extinguishment losses and debt transaction costs; (vi) litigation settlement charges (benefits); (vii) otherthan-temporary impairment losses on investments; and (viii) other one-time, nonrecurring, unusual or infrequent charges, expenses or gains that may not be
indicative of Hologic’s core business results; and to include income taxes related to such adjustments.
Hologic believes the use of non-GAAP revenues is useful to investors as it eliminates certain effects of purchase accounting on its recognition of revenue, as
well as other unusual or non-recurring items. Hologic believes the use of non-GAAP net income is useful to investors by eliminating certain of the more
significant effects of its acquisitions and related activities, non-cash charges resulting from the application of GAAP to convertible debt instruments with cash
settlement features, charges related to debt extinguishment losses, investment impairments, litigation settlements, and restructuring and divestiture initiatives.
These non-GAAP measures also reflect how Hologic manages its businesses internally. In addition to the adjustments set forth in the calculation of Hologic’s
non-GAAP net income and EPS, its adjusted EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. As with
the items eliminated in its calculation of non-GAAP net income, these items may vary for different companies for reasons unrelated to the overall operating
performance of a company’s business. When analyzing Hologic’s operating performance, investors should not consider these non-GAAP financial measures
as a substitute for net income prepared in accordance with GAAP.
HOLX Investor Overview / May 1, 2015
3
Presentation Outline
Overview
Markets and products
Financials and milestones
Financial appendix
HOLX Investor Overview / May 1, 2015
4
Hologic Today
• Diverse, innovative healthcare products focused on early detection and intervention
– Strong position in women’s health
– Revenue of $2.5 billion in FY14*
• Revenue composition in 1H FY15
By Business
Diagnostics
46%
By Type
By Geography
OUS
25%
Breast
Health
38%
Service
16%
Capital
21%
US
75%
Consumables
63%
Surgical
12%
Skeletal
4%
* All figures are annual and exclude ~ $20 million one-time contribution from restructuring of
Roka license in 2014. Hologic’s fiscal year runs from October to September.
HOLX Investor Overview / May 1, 2015
5
Investment Highlights
• US market leader in key franchises*
HOLX
~55%
Others
45%
#1
Others
25%
HOLX
~75%
#1
Others
25%
Others
30%
HOLX
~70%
#1
HOLX
~75%
#1
Others
40%
HOLX
~60%
#1
Others
30%
HOLX
~70%
#1
• Improving sustainable, long-term revenue growth
– Multiple important product cycles underway
– Untapped international opportunity
* All market shares are Hologic estimates for the US market on a unit basis in 2014. Procleix
blood screening products are marketed globally by Hologic’s partner, Grifols.
HOLX Investor Overview / May 1, 2015
6
Investment Highlights (cont.)
• Strong profitability and cash flows
– Near-term, primary use to pay down debt
• Long-term opportunities for margin expansion
– Reduce interest expense and tax rate
• New management team leading broad, deep turnaround
– Focusing on better resource and capital allocation, executional excellence
HOLX Investor Overview / May 1, 2015
7
Strong Start to Fiscal 2015
Growth continues into first half
$700
$631
$626
$622
$612
-3%
$613
$625
+2%
$633
+1%
$640
+3%
$653
+7%
$655
+5%
$600
$500
2013
2014
Q1
* Total GAAP revenue growth as reported with the exception of 4Q FY14.
4Q excludes ~ $20 million one-time contribution from restructuring of Roka
license. Percentage changes are versus prior year periods.
Q2
Q3
2015
Q4
HOLX Investor Overview / May 1, 2015
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Evidence of the Turnaround
Commercial execution has consistently improved
+6.6%
+4.9%
+ 3.0%
+ 2.0%
+ 1.0%
1Q 2014
2Q 2014
3Q 2014
4Q 2014
1Q 2015
2Q 2015
-3.0%
* Total GAAP revenue growth as reported with the exception of 4Q FY14. 4Q excludes
~ $20 million one-time contribution from restructuring of Roka license. Percentage
changes are versus prior year periods.
HOLX Investor Overview / May 1, 2015
9
FY14 Performance by Quarter
Progress has been broad and deep
1Q
2Q
3Q
4Q
Diagnostics
Breast
Surgical
Skeletal
Total US
Diagnostics
Breast
Surgical
Skeletal
Total OUS
Diagnostics
Breast
Surgical
Skeletal
Total WW
* Total GAAP revenue change as reported with the exception of 4Q FY14. 4Q excludes ~
$20 million one-time contribution from restructuring of Roka license. Green ovals = growth,
red rectangles = decline, both compared to prior year periods.
HOLX Investor Overview / May 1, 2015
10
FY15 Performance by Quarter
Broad-based growth continues
1Q
2Q
Diagnostics
Breast
Surgical
Skeletal
Total US
Diagnostics
Breast
Surgical
Skeletal
Total OUS
Diagnostics
Breast
Surgical
Skeletal
Total WW
* Constant currency growth rates.
HOLX Investor Overview / May 1, 2015
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Presentation Outline
Overview
Markets and products
Financials and milestones
Financial appendix
HOLX Investor Overview / May 1, 2015
12
Breast Health Overview
• Mammography includes sales and service
of 2D digital and Genius 3D systems and
ancillaries
– US: market upgrading to tomosynthesis
– OUS: opportunities to place 2D systems
• Hologic leads US market with ~55% share
FY14 Revenue
$945 Million
Other
2%
Interventional
18%
– Gains from multi-faceted Genius 3D
mammography marketing campaign
• Interventional includes breast biopsy
solutions, complement to mammography
systems
• Service represents ~40% of total
Imaging
80%
– Outstanding team of field engineers
* Represents FY14 data
HOLX Investor Overview / May 1, 2015
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Growth Driver: Genius 3D Mammography
• Hologic first to US market with FDA-approved product in 2011
• Four recent catalysts for faster adoption
– JAMA study confirmed clinical superiority of Hologic Genius
technology to 2D
41%
increase in
invasive breast
cancers
29%
increase in all
breast cancers
15%
decrease
in recall rates
– Favorable CMS reimbursement took effect January 1, 2015
» Pathway for private insurers to follow
– Competitive product launches boost market conversion,
illustrate our product advantages
– Multi-faceted Genius 3D mammography marketing campaign
HOLX Investor Overview / May 1, 2015
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Breast Tomosynthesis Opportunity
• More than 13,000 total digital mammography
units in US
• Hologic installed base end of FY14
www.genius3dmammography.com
– Approximately 6,000 2D
– More than 1,400 Genius 3D
• Early stages of new product cycle
– Over time expect almost entire market to convert
– Less than 15% penetrated today
– Genius consumer marketing campaign in
October 2014
» 850,000+ consumer interactions
• Future breast tomosynthesis US market
opportunity $3.5-$4 billion
• OUS markets represent long-term upside
HOLX Investor Overview / May 1, 2015
15
Hologic Competitive Advantages
• Positive feedback from RSNA
– 71 papers and posters on breast tomosynthesis
– 68% increase in leads generated versus prior year
– Emphasized superiority of Hologic 3D tomosynthesis
to 2D, competition
HOLX Investor Overview / May 1, 2015
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Diagnostic Solutions Overview
• Market leader in three primary segments
– Cervical cancer
FY14 Revenue
$1,167 Million*
» ThinPrep liquid Pap testing
» Aptima HPV
– Sexually transmitted diseases
Blood
19%
» Aptima molecular assays for CT, NG and trichomoniasis
– Blood screening: Procleix NAT assays, marketed by
partner Grifols
» HIV, HCV, HBV, West Nile virus in US
» Plus HEV in Europe, Japan
» And Parvo/HAV in plasma
Cytology &
Perinatal
42%
Molecular
39%
• Two complementary, well-respected sales teams
calling on OB/GYN physicians and labs
* Total revenue for 2014 excludes ~ $20 million one-time contribution from
restructuring of Roka license. Represents FY14 segment mix.
HOLX Investor Overview / May 1, 2015
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Growth Driver: Panther System
• Already lead in high-volume accounts with Tigris
– Panther offers leading-edge automation to labs of
all sizes
– Increase molecular testing in hospitals
– Consolidate menu on single platform
• New product cycle has two elements
– System placements
» Closing in on goal of 1,000 by end of FY15
– Menu expansion and increasing assay pull-through
» First viral load assay recently launched
» New Fusion platform will add PCR capabilities to large
installed base
* In clinical diagnostics and blood screening markets.
HOLX Investor Overview / May 1, 2015
18
GYN Surgical Solutions
• Product line focused on diagnosing, treating
common gynecologic conditions
• Two market-leading products that treat abnormal
uterine bleeding
FY14 Revenue
$308 Million
Other
1%
– NovaSure
» Endometrial ablation solution offering safe, fast,
customized treatment
» More than 2 million uses since FDA approval
– MyoSure
» Tissue removal solution offering incision-less, fast removal
of fibroids, polyps, etc.
* Represents FY14 data.
MyoSure
28%
NovaSure
71%
HOLX Investor Overview / May 1, 2015
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Skeletal Health Solutions
• Two areas of focus
– Osteoporosis screening/diagnosis and obesity
management via bone densitometer
– Orthopedic imaging via “Mini” C-Arm
• FY14 revenue of $91 million
• Revitalized commercial operations through
Horizon new product launch and sales force
expansion
– Reversed long-term sales decline
• Now poised for innovation and segment expansion
HOLX Investor Overview / May 1, 2015
20
Significant International Opportunities
• Hologic is underdeveloped outside the United States
• Hired new executive with proven track record to oversee all international
business units
• Specific areas of opportunity
-
2-D mammography in developed, emerging markets
3-D upgrades in established markets
ThinPrep to replace conventional Pap
Molecular diagnostics in Europe, Japan
Strengthen partnerships with dealers
• Integrate with international operations, tax strategy
HOLX Investor Overview / May 1, 2015
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Presentation Outline
Overview
Markets and products
Financials and milestones
Financial appendix
HOLX Investor Overview / May 1, 2015
22
Financial Highlights 2Q Fiscal 2015
• Another quarter of strong top-line growth in all four businesses
– Growth led by 3D mammography, blood screening, US molecular diagnostics, GYN Surgical
– Continued stabilization in ThinPrep, NovaSure
Non-GAAP
2Q15
2Q14
Reported
Change
CC Change
Diagnostics
$296.7
$290.8
2.0%
4.1%
Breast Health
$255.5
$238.7
7.0%
9.4%
GYN Surgical
$79.1
$72.0
9.8%
11.9%
Skeletal Health
$24.2
$23.5
3.3%
8.1%
$655.5
$625.0
4.9%
7.2%
US
$495.2
$463.6
6.8%
6.8%
OUS
$160.3
$161.4
(0.7%)
8.0%
Revenue ($M)
Total Revenue
HOLX Investor Overview / May 1, 2015
23
2015 Financial Guidance
Non-GAAP*
In millions, except EPS
2014
Change
vs. 2013
2015 Guidance
Reported
Change
vs. 2014
Non-GAAP*
Constant
Currency
vs. 2014
Revenues
$2,511
-0.1% $2,600 - $2,620 3.6 - 4.4% 5.8 - 6.6%
Gross Margin
63.1%
90 bps
$781
3.7%
32.8%
50bps
Net Income
$407
0.0%
Diluted EPS
$1.46
-2.3%
EBITDA
$885
-1.5%
Oper. Expenses
Oper. Margin
$1.57 - $1.59
* Total revenue for FY14 excludes ~ $20 million one-time contribution from
restructuring of Roka license. Guidance provided by press release on 4/29/15.
Presentation here is not, and should not be construed as, re-affirmation of guidance.
Guidance assumes diluted shares outstanding of 289 million for the full year and an
annual effective tax rate of 34.25%.
7.5 - 8.9%
11.6 13.0%
3Q15
Guidance
Reported
Change
vs. 2014
Constant
Currency
vs. 2014
$645 - 655
2.0 - 3.5%
4.7 - 6.3%
$0.38 $0.39
2.7 - 5.4%
8.1 - 10.8%
HOLX Investor Overview / May 1, 2015
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Committed to Debt Reduction
• Free cash flow will be primarily used to reduce
debt
Net Debt and Leverage Ratio*
5.0
4.5
• Net debt* $3.4 billion at mid-year FY15
– $0.6 billion in debt payments during fiscal 2014, including
$0.1 billion voluntary prepayment of Term Loan B
$4.5
$4.0
4.0
3.5
$3.5
5.5x
3.0
4.6x
2.5
• Continuing to reduce debt ahead of schedule
– $0.3 billion voluntary prepayment of
Term Loan B in December 2014
$3.3
4.0x
2.0
1.5
3.6x
1.0
0.5
• Will continue to reduce leverage over next
several years
0.0
FY12
FY13
FY14
1H15
– Target to reach 2.5x by fiscal 2017 year end
*Net debt is total debt minus cash; Leverage ratio is net principal debt to TTM adjusted EBITDA.
**As of YTD March for fiscal 2015 only.
HOLX Investor Overview / May 1, 2015
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Goals for Fiscal Year 2015
• Continue turnaround momentum
• Achieve revenue and EPS guidance
• Continue paying down debt
• Define innovation roadmaps for each business
• Establish a clear performance-driven culture led by new senior team
* Financial goals per guidance provided by press release on 11/5/14. Presentation here is not,
and should not be construed as, re-affirmation of guidance. Guidance assumes 286 million
diluted shares outstanding and tax rate of 34.75%.
HOLX Investor Overview / May 1, 2015
26
Long-Term Opportunities for Revenue Growth and
Margin Expansion
TOP LINE
• 3D tomo rollout
• Panther placements
and menu expansion
• International growth
• Pipeline products
BOTTOM LINE
• Operational
improvements
• G&A leverage
• Debt reduction
• Tax strategy
HOLX Investor Overview / May 1, 2015
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Presentation Outline
Overview
Markets and products
Financials and milestones
Financial appendix
HOLX Investor Overview / May 1, 2015
28
Quarterly Financial Performance
Non-GAAP
1Q15
Change vs.
1Q14
2Q15
Change vs.
2Q14
Revenues
$652.8
6.6%
$655.5
4.9%
Gross Margin
63.3%
10bps
63.4%
90bps
Oper. Expenses
$198.5
1.2%
$195.9
4.3%
Oper. Margin
32.9%
170bps
33.5%
110bps
Net Income
$111.6
18.6%
$118.9
15.3%
Diluted EPS
$0.39
$0.05
$0.41
$0.04
EBITDA
$233.1
9.2%
$238.6
7.3%
In millions, except EPS
HOLX Investor Overview / May 1, 2015
29
Business Segments Revenue Detail (unaudited)
$s in millions
Fiscal Year 2012
1Q12
12/24/11
2Q12
3/24/12
3Q12
6/23/12
4Q12
9/29/12
Full Year
Business Segment Revenues
Cytology & Perinatal
Molecular Diagnostics
Blood Screening
$137.3
$134.7
$139.8
$144.3
$556.1
16.8
17.1
18.9
76.1
128.9
33.1
33.1
-
-
-
Total Diagnostics
$154.1
$151.8
$158.7
$253.5
$718.1
Breast Imaging
$167.4
$169.5
$164.0
$181.3
$682.2
40.5
41.5
38.9
41.0
162.0
7.5
7.6
8.5
8.0
31.6
$215.4
$218.6
$211.5
$230.3
$875.8
Surgical
$78.5
$77.2
$77.7
$79.7
$313.1
Skeletal Health
$24.7
$23.5
$22.4
$25.1
$95.7
Total Revenues
$472.7
$471.2
$470.2
$588.5
$2,002.7
Interventional Breast Solutions
Other
Total Breast Health
HOLX Investor Overview / May 1, 2015
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Business Segments Revenue Detail (unaudited)
$s in millions
Fiscal Year 2013
1Q13
12/29/12
Business Segment Revenues
Cytology & Perinatal
Molecular Diagnostics
2Q13
3/30/13
3Q13
6/29/13
4Q13
9/28/13
Full Year
$137.0
126.0
$124.9
122.2
$132.2
108.7
$124.8
113.5
$519.0
470.4
42.9
49.4
56.5
51.7
200.5
Total Diagnostics
$305.9
$296.5
$297.4
$290.0
$1,189.8
Breast Imaging
$173.8
$171.3
$182.9
$188.0
$716.0
41.1
42.6
41.4
41.2
166.3
5.9
6.2
5.7
5.0
22.8
$220.8
$220.1
$230.0
$234.2
$905.1
Surgical
$80.9
$73.7
$75.8
$76.7
$307.1
Skeletal Health
$23.7
$22.4
$22.9
$21.2
$90.2
Total Revenues
$631.4
$612.7
$626.1
$622.1
$2,492.3
Blood Screening
Interventional Breast Solutions
Other
Total Breast Health
HOLX Investor Overview / May 1, 2015
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Business Segments Revenue Detail (unaudited)
$s in millions
Fiscal Year 2014
1Q14
12/28/13
2Q14
3/29/14
3Q14
6/28/14
4Q14
9/27/14
Full Year
Business Segment Revenues
Cytology & Perinatal
$121.6
$119.4
$122.7
112.8
112.5
116.2
137.3*
478.8*
51.3
58.9
54.2
58.9
223.3
Total Diagnostics
$285.7
$290.8
$293.1
$317.2*
$1,186.8*
Breast Imaging
$178.0
$189.4
$192.7
$196.3
$756.5
42.9
43.2
41.4
41.4
168.8
5.6
6.1
3.9
3.8
19.4
$226.5
$238.7
$238.0
$241.5
$944.7
Surgical
$78.9
$72.0
$78.5
$78.5
$307.8
Skeletal Health
$21.4
$23.5
$23.0
$23.4
$91.3
Total Revenues
$612.4
$625.0
$632.6
$660.6*
Molecular Diagnostics
Blood Screening
Interventional Breast Solutions
Other
Total Breast Health
* Excluding the $20.1 million revenue benefit related to an amendment to the Company’s
license agreement with Roka Bioscience (all of which was in the U.S.), 4Q14 molecular
diagnostics revenue would have been $117.2 million, total diagnostics revenue would have
been $297.1 million, and total revenues would have been $640.5 million. Similarly, FY14
molecular diagnostics revenue would have been $458.7 million, total diagnostics revenue
would have been $1,166.7 million, and total revenues would have been $2510.6 million.
$121.0
$484.7
$2,530.7*
HOLX Investor Overview / May 1, 2015
29
Business Segments Revenue Detail (unaudited)
$s in millions
Fiscal Year 2015
1Q15
12/27/14
Business Segment Revenues
Cytology & Perinatal
Molecular Diagnostics
2Q15
3/28/15
$120.1
119.1
$113.3
119.7
64.9
63.7
Total Diagnostics
$304.1
$296.7
Breast Imaging
$197.5
211.0
41.9
42.7
2.6
1.8
$242.0
$255.5
GYN Surgical
$84.4
$79.1
Skeletal Health
$22.3
$24.2
Total Revenues
$652.8
$655.5
Blood Screening
Interventional Breast Solutions
Other
Total Breast Health
3Q15
6/27/15
4Q15
9/26/15
HOLX Investor Overview / May 1, 2015
30
For more information:
Michael Watts
VP, Investor Relations and Corporate Communications
858-410-8588
HOLX Investor Overview / May 1, 2015
34