Market-Defining and Diversified Innovations Driving Value Creation
Consistent and Disciplined Capital Allocation Priorities
1
Sustained Investment to Drive Organic Growth
•
•
•
R&D: Sustained investment at -16% of revenue
Sales: Channel capacity, strengthen SW and e-commerce capabilities
Capex: Increase capacity and enable ongoing technology differentiation; FY22
($185M), FY23E ($250M), and FY24E ($225M); $200M/yr. thereafter
2 Disciplined M&A
Accelerate value creation through M&A aligned to strategic and financial criteria
Robust funnel in adjacent markets aligned with targeted growth opportunities
3 Return of Capital
~
NEW $1.5B share repurchase authorization
$0.3 $0.3
Free Cash Flow ($B)
$1.1
$1.1+
$0.9 $0.9
$1.0
$0.4
$0.3
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23E
Cash Utilization
(FY15 - FY22)
5%
15%
■ Acquisitions
$6.5B 45%
■Share Repurchase
■Capex
35%
■ Other
Offset dilution from equity-based compensation
Opportunistic repurchases as a function of liquidity, valuation, and M&A outlook
Enabling value creation and compounding returns
✔KEYSIGHT
Supply chain dynamics unfavorably impacted FY22 FCF
95
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