#1Keysight Technologies Q1 Fiscal Year 2023 Results FEBRUARY 21, 2023#2Safe Harbor This communication contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. Statements preceded by, followed by, or that otherwise include the words "anticipate," "assume," "plan," "estimate," "expect," "guidance," "intend," "implied," "target," "believe," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," or "could", or statements regarding the company's goals, priorities, anticipated revenues, anticipated demand, growth opportunities, customer service and innovation plans, new product introductions, anticipated financial condition, anticipated gross and operating margins, future earnings, the anticipated continued strengths and expected growth of the markets the company sells into, and future operations, earnings, and tax rates are intended to identify forward-looking statements. Keysight disclaims any intention to, and undertakes no responsibility to, update or revise any forward looking statement, whether as a result of new information, a future event, or otherwise. The forward-looking statements contained herein include, but are not limited to, predictions, guidance, projections, assumptions, beliefs, opinions, and expectations regarding the company's future goals, revenues, financial condition, earnings, and operations that involve risks and uncertainties that could cause Keysight's results to differ materially from those expressed in such statements. Such risks and uncertainties include, but are not limited to, impacts of global economic conditions such as inflation or recession, slowing demand for products or services, supply chain constraints and the availability of raw materials; impacts of US export control regulations; impacts of geopolitical tension and conflict; impacts related to net-zero emissions commitments; customer purchasing decisions and timing; order cancellations. For additional risks and uncertainties that could impact Keysight's actual results, please see our latest Form 10-K filed with the SEC on December 15, 2022, included but not limited to the discussion under "Risk Factors" therein, which may be viewed at www.sec.gov. presentation includes a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Non-GAAP measures exclude primarily the impacts of amortization of acquisition-related balances, share-based compensation, acquisition and integration costs, restructuring and related costs, and any one-time adjustments that may have a material effect on the Company's expenses and income from operations calculated in accordance with GAAP. Also excluded are tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. For future periods, most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. This limits our ability to provide a reconciliation of the expected non-GAAP earnings per share to the GAAP equivalent. The definitions of these non-GAAP financial measures may differ from similarly titled measures used by others, and such non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. Keysight generally uses non-GAAP financial measures to facilitate management's comparisons to historic operating results, to competitors' operating results and to guidance provided to investors. In addition, Keysight believes that the use of these non-GAAP financial measures provides greater transparency to investors of information used by management in its financial and operational decision-making. Refer to last slide for more details on the use of non-GAAP financial measures. ✔KEYSIGHT 2#3Q1'23 Highlights Strong first quarter financial results Record Q1 revenue of $1.38B grew 10% y/y, or 14% on a core* basis, and exceeded high end of guidance Gross margin* of 65% and operating margin* of 30%; non-GAAP EPS of $2.02 grew 22% y/y and exceeded high end of guidance Orders of $1.3B declined 13% y/y, or 10% on a core basis vs. 22% growth last year Customers exercising caution in response to macroeconomic uncertainty Keysight's diversified portfolio and variable cost structure well-positioned to weather current macro dynamics Includes approximately 350bps y/y headwind from China trade restrictions and suspension of Russia business CSG achieved record first quarter revenue ● ● • Commercial communications record first quarter revenue with strength across 5G R&D deployments, O-RAN, data center networking with increased focus on 800G and terabit communications solutions Aerospace, defense and government record first quarter revenue driven by double-digit growth in Americas EISG achieved record first quarter revenue, and 10th consecutive quarter of double-digit revenue growth Automotive/energy achieved all-time record revenue, with strong growth across all regions driven by EV/AV ● › General electronics achieved double-digit revenue growth driven by digital health, loT, advanced research ● ● ● • Semiconductor orders sustained by continued capacity investments *Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months. Reconciliations provided for non-GAAP financial measures. ✔KEYSIGHT 3#4Q1'23 Non-GAAP Financial Highlights Revenue $1.381 B Operating Margin 29.7% +10% y/y (+14% core*) +170 basis points y/y $ in billions $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 40% 30% 20% 10% 0% Orders $1.300B -13% y/y (-10% core*) Orders Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 ✔KEYSIGHT Operating Margin 1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 $ in billions $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $2.40 $2.00 $1.60 $1.20 $0.80 $0.40 Revenue Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 EPS $2.02 +22% y/y EPS * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. Reconciliations to closest GAAP equivalent provided for current period for all non-GAAP measures. For prior periods, please refer to investor.keysight.com. Q1'20Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22Q2'22 Q3'22 Q4'22Q1'23 4#5Revenue by Segment & by Region Q1'23 REVENUE: $1,381 M ✔KEYSIGHT EISG By Segment 32% Asia Pacific 41% OO CSG 68% By Region Europe 18% Americas 41% LO 5#6Revenue Trend by Region $ in millions Americas $563 $562 rii Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 $600 $450 $300 $150 $483 ✔KEYSIGHT $594 $561 +16% y/y (+16% core*): Strength in EI, CC, and ADG $ in millions $300 $225 $150 $75 $226 Europe $217 $207 $231 $257 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 +14% y/y (+20% core*): Strength in El, ADG, and CC * Core revenue growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. $800 $600 $400 € $200 $ in millions $541 Asia Pacific $607 $571 $618 $563 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Key: ADG - Aerospace, Defense & Government CC Commercial Communications El Electronic Industrial Solutions +4% y/y (+10% core*): Strength in El and CC 6#7Q1'23 Communications Solutions Group Highlights $ in millions $ $1,000 $800 $600 $400 $200 ✔KEYSIGHT Revenue $939M +7% y/y (+10% core*) Operating Margin 28.7% +180 basis points y/y $878 Q1'22 CSG Revenue $963 $970 Q2'22 Q3'22 Record first quarter CSG revenue Commercial Communications: Record first quarter revenue driven by 5G, O-RAN, 800G and terabit communications solutions Aerospace, Defense & Government: Record first quarter revenue driven by increased U.S. government spending and strength in space and satellite, including new applications for non-terrestrial networks. $992 Q4'22 $939 Q1'23 $ in millions $300 $250 $200 $150 $100 $50 $- CSG Income from Operations $271 $237 Q1'22 Core revenue growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. Segment revenue and income from operations are consistent with the non-GAAP financial measures slide, refer last slide for details. Q2'22 $288 Q3'22 $289 Q4'22 $269 Q1'23 7#8Q1'23 Electronic Industrial Solutions Group Highlights $ in millions $ $500 $400 $300 $200 $100 ✔KEYSIGHT Revenue $442M +19% y/y (+23% core*) Operating Margin 31.8% +110 basis points y/y $372 Q1'22 EISG Revenue $388 Q2'22 $406 Q3'22 Record Q1 revenue; 10th consecutive quarter of DD revenue growth. Automotive: All-time record revenue driven by continued investment in new EV and AV technology Semiconductor: Orders sustained by continued capacity investments General Electronics: Double-digit revenue growth driven by digital health, loT, advanced research $451 Q4'22 $442 Q1'23 $ in millions $140 $120 $100 $80 $60 $40 $20 $- T EISG Income from Operations $114 Q1'22 * Core revenue growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. Segment revenue and income from operations are consistent with the non-GAAP financial measures slide, refer last slide for details. $118 Q2'22 $127 Q3'22 $142 Q4'22 $140 Q1'23 8#9Q1'23 Revenue By End Market Electronic Industrial Solutions 32% ✔KEYSIGHT Aerospace, Defense & Government 22% Commercial Comms 46% End Market Commercial Communications Aerospace, Defense & Government Electronic Industrial Solutions Total Revenue $629M $310M $442M $1,381M YoY % +8% +5% +19% +10% 9#10FY22 Non-GAAP Highlights and Annual Trend Revenue $5.420B 8% CAGR $ in billions $6 $5 $4 $3 $2 $1 $0 30% 20% 10% 0% ✔KEYSIGHT Orders $5.984B 10% CAGR $4.1 2018 18.8% 2018 $4.4 2019 24.0% Orders 2019 $4.5 Operating Margin 2020 25.3% 2020 $5.4 2021 27.9% 2021 $6.0 2022 29.3% 2022 $ in billions $6 $5 $4 $2 $1 $8 $7 $6 $5 $4 $3 $2 $1 Operating Margin 29.3% +1,050 basis points $3.9 2018 $3.24 2018 $4.3 2019 $4.72 2019 Revenue $4.2 2020 EPS $4.85 2020 EPS $7.63 24% CAGR $4.9 2021 $6.23 2021 $5.4 2022 $7.63 2022 5-Year annual trend represents 2018-2022. Reconciliations to closest GAAP equivalent provided for all non-GAAP measures.. Non-GAAP revenue excludes the impact of fair-value adjustments to acquisition-related deferred 10 revenue balances for FY 18 and FY19. For prior periods, please refer to investor.keysight.com.#11Guidance and Financial Considerations Revenue Revenue Growth Non-GAAP Earnings per share FY23 Financial Considerations ● ● ● ● Net Interest and Other Income/Expense: $6M - $8M net income / quarter Non-GAAP tax rate of 12% Q2'23 Guidance ✔KEYSIGHT Refer to Safe Harbor on page 2 for risks related to forward-looking statements. $1.37B - $1.39B 1% -3% $1.91 $1.97 - Guidance assumes Q2 weighted average diluted share count of approximately 179M shares Expected 2023 capital expenditures of approximately $250M R&D Capitalization (Section 174): ~$50M increase in cash taxes paid in Q2 FY23; $25M in Q3 and in Q4 Y23 11#12Investor Resources Recent Reports 2021 CSR Report Year in 2001 ✔KEYSIGHT HEYSIGHE 2021 CSR Report: OUR STRATEGY, PROGRESS, AND ACCOUNTABILITY 2021 DEI Report: YEAR IN REVIEW Company Overview and Strategic Direction Culture and Talent Transformation Technology Leadership and Software Differentiation Communications Solutions Electronic Industrial Solutions Quick Links Investor Day March 2020 Videos (single-click access to each executive's presentation) Why Keysight Recent Investor Presentations and Webcasts The Keysight Leadership Model Corporate Social Responsibility Global Services Global Marketing Global Sales Financial Update Closing Remarks 12#13Reconciliations ✔KEYSIGHT 13#14Income from operations, as reported Amortization of acquisition-related balances Share-based compensation Acquisition and integration costs Restructuring and others Non-GAAP income from operations GAAP Operating margin, % Non-GAAP Operating margin, % ✔KEYSIGHT Refer to non-GAAP financial measures slide KEYSIGHT TECHNOLOGIES, INC. NON-GAAP OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY 2023 Three months ended January 31, 322 23 55 2 7 409 23.3% 29.7% $ $ 2022 271 26 51 3 351 21.7% 28.0% 14#15Gross Profit, as reported Amortization of acquisition-related balances Share-based compensation Non-GAAP Gross Profit GAAP Gross margin, % Non-GAAP Gross margin, % ✔KEYSIGHT Refer to non-GAAP financial measures slide KEYSIGHT TECHNOLOGIES, INC. NON-GAAP GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY $ $ 2023 Three months ended January 31, 883 9 9 901 63.9% 65.2% $ $ 2022 804 12 8 824 64.3% 65.9% 15#16GAAP Net income Non-GAAP adjustments: Amortization of acquisition-related balances Share-based compensation Acquisition and integration costs Restructuring and others Adjustment for taxes (a) Non-GAAP Net income KEYSIGHT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) Weighted average shares outstanding - diluted ✔KEYSIGHT Refer to non-GAAP financial measures slide (Unaudited) PRELIMINARY $ $ Net Income 2023 260 $ 23 55 1 22 363 $ 180 (a) For the three months ended January 31, 2023 and 2022, management uses a non-GAAP effective tax rate of 12%. Three months ended January 31, Diluted EPS 1.45 0.13 0.30 0.01 0.01 0.12 2.02 Net Income $ $ 2022 229 $ 26 51 3 3 (7) 305 $ 184 Diluted EPS 1.24 0.14 0.27 0.02 0.02 (0.04) 1.65 16#17Revenue Adjustments: Revenue from acquisitions or divestitures Currency impacts Core Revenue ✔KEYSIGHT Refer to non-GAAP financial measures slide KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY $ Q1'23 1,381 (2) 49 1,428 Year-over-year Q1'22 $ $ 1,250 1,250 Percent Inc/(Dec) 10% 14% 17#18Revenue by Segment Communications Solutions Group Electronic Industrial Solutions Group Total Revenue Revenue by Region Americas Europe Asia Pacific Total Revenue $ $ $ Q1'23 KEYSIGHT TECHNOLOGIES, INC. RECONCILIATIONS OF CORE REVENUE BY SEGMENT AND REGION (In millions) (Unaudited) PRELIMINARY 939 $ 442 1,381 $ Q1'23 561 $ 257 563 1,381 $ ✔KEYSIGHT Refer to non-GAAP financial measures slide Revenue Q1'22 878 372 1.250 Revenue Q1'22 483 226 541 1,250 YOY %Chg. 7% 19% 10% YOY % Chg. 16% 14% 4% 10% Revenue from acquisitions or divestitures Q1'23 1 Q1'23 2 Year-over-Year Revenue from acquisitions or divestitures 1 1 2 Q1'22 $ Q1'22 Currency Adjustments Q1'23 (31) $ (18) (49) $ Currency Adjustments Q1'23 (17) (32) (49) $ Q1'23 Core Revenue Q1'22 969 $ 459 1,428 $ Q1'23 878 561 $ 273 594 1,428 $ 372 1,250 Core Revenue Q1'22 483 226 541 1,250 YOY %Chg. 10% 23% 14% YOY %Chg. 16% 20% 10% 14% 18#19✔KEYSIGHT Aerospace, Defense and Government Commercial Communications Electronic Industrial Total Revenue Refer to non-GAAP financial measures slide KEYSIGHT TECHNOLOGIES, INC. REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY $ Q1'23 310 629 442 1,381 Q1'22 294 584 372 1,250 Percent Inc/(Dec) 5% 8% 19% 10% 19#20Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results "through the eyes of management" in addition to seeing our GAAP results. This information enhances investors' understanding of the continuing performance of our business and facilitates comparison of performance to our historical and future periods. Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, including industry peer companies, limiting the usefulness of these measures for comparative purposes. These non-GAAP measures should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The discussion below presents information about each of the non-GAAP financial measures and the company's reasons for including or excluding certain categories of income or expenses from our non-GAAP results. In future periods, we may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, adjustments for these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. Non-GAAP Revenue generally relates to an acquisition and includes recognition of acquired deferred revenue that was written down to fair value in purchase accounting. Management believes that excluding fair value purchase accounting adjustments more closely correlates with the ordinary and ongoing course of the acquired company's operations and facilitates analysis of revenue growth and business trends. We may not have non-GAAP revenue in all periods. Core Revenue is GAAP/non-GAAP revenue (as applicable) excluding the impact of foreign currency changes and revenue associated with material acquisitions or divestitures completed within the last twelve months. We exclude the impact of foreign currency changes as currency rates can fluctuate based on factors that are not within our control and can obscure revenue growth trends. As the nature, size and number of acquisitions can vary significantly from period to period and as compared to our peers, we exclude revenue associated with recently acquired businesses to facilitate comparisons of revenue growth and analysis of underlying business trends. Free cash flow includes net cash provided by operating activities adjusted for investments in property, plant & equipment. Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Diluted EPS may include the following types of adjustments: Acquisition-related Items: We exclude the impact of certain items recorded in connection with business combinations from our non-GAAP financial measures that are either non-cash or not normal, recurring operating expenses due to their nature, variability of amounts and lack of predictability as to occurrence or timing. These amounts may include non-cash items such as the amortization of acquired intangible assets and amortization of items associated with fair value purchase accounting adjustments, including recognition of acquired deferred revenue (see Non-GAAP Revenue above). We also exclude other acquisition and integration costs associated with business acquisitions that are not normal recurring operating expenses, including amortization of amounts paid to redeem acquiree's unvested stock-based compensation awards, and legal, accounting and due diligence costs. We exclude these charges to facilitate a more meaningful evaluation of our current operating performance and comparisons to our past operating performance. Share-based Compensation Expense: We exclude share-based compensation expense from our non-GAAP financial measures because share-based compensation expense can vary significantly from period to period based on the company's share price, as well as the timing, size and nature of equity awards granted. Management believes the exclusion of this expense facilitates the ability of investors to compare the company's operating results with those of other companies, many of which also exclude share-based compensation expense in determini their non-GAAP financial measures. Restructuring and others: We exclude incremental expenses associated with restructuring initiatives, usually aimed at material changes in the business or cost structure. Such costs may include employee separation costs, asset impairments, facility-related costs, contract termination fees, and costs to move operations from one location to another. These activities can vary significantly from period to period based on the timing, size and nature of restructuring plans; therefore, we do not consider such costs to be normal, recurring operating expenses. We also exclude "others", not normal, recurring, cash operating income/expenses from our non-GAAP financial measures. Such items are evaluated on an individual basis, based on both quantitative and qualitative factors and generally represent items that we do not anticipate occurring as part of our normal business. While not all-inclusive, examples of such items would include net unrealized gains on equity investments still held, significant non-recurring events like realized gains or losses associated with our employee benefit plans, costs and recoveries related to unusual events, gain on sale of assets/divestitures, etc. We believe that these costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to our operating performance in other periods. Estimated Tax Rate: We utilize a consistent methodology for long-term projected non-GAAP tax rate. When projecting this long-term rate, we exclude any tax benefits or expenses that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Additionally, we evaluate our current long-term projections, current tax structure and other factors, such as existing tax positions in various jurisdictions and key tax holidays in major jurisdictions where Keysight operates. This tax rate could change in the future for a variety of reasons, including but not limited to significant changes in geographic earnings mix including acquisition activity, or fundamental tax law changes in major jurisdictions where Keysight operates. The above reasons also limit our ability to reasonably estimate the future GAAP tax rate and provide a reconciliation of the expected non-GAAP earnings per share for the second quarter of fiscal 2023 to the GAAP equivalent. Management recognizes these items can have a material impact on our cash flows and/or our net income. Our GAAP financial ents, including our Condensed Consolidated Statement of Cash Flows, portray those effects. Although believe it is useful for investors to see core performance free of special items, investors should understand that the excluded costs are actual expenses that may impact the cash available to us for other uses. To gain a complete picture of all effects on the company's profit and loss from any and all events, management does (and investors should) rely upon the Condensed Consolidated Statement of Operations prepared in accordance with GAAP. The non-GAAP measures focus instead upon the core business of the company, which is only a subset, albeit a critical one, of the company's performance. ✔KEYSIGHT 20