In this paper we define the notion of an axiom dependency hypergraph, which explicitly represents how axioms are included into a module by the algorithm for computing locality-based modules. A locality-based module of an ontology corresponds to a set of connected nodes in the hypergraph, and atoms of an ontology to strongly connected components. Collapsing the strongly connected components into single nodes yields a condensed hypergraph that comprises a representation of the atomic decomposition of the ontology. To speed up the condensation of the hypergraph, we first reduce its size by collapsing the strongly connected components of its graph fragment employing a linear time graph algorithm. This approach helps to significantly reduce the time needed for computing the atomic decomposition of an ontology. We provide an experimental evaluation for computing the atomic decomposition of large biomedical ontologies. We also demonstrate a significant improvement in the time needed to extract locality-based modules from an axiom dependency hypergraph and its condensed version.