2019 Performance Review

Agilent Investment Thesis Market leader in an oligopolistic industry with multiple barriers to entry #1 player with -20% share; top 5 participants account for -75% market share Regulatory requirements and high-touch nature of aftermarket services limit customer switching Instrument IP and periodic refresh cycles make it difficult for low-cost players to provide competitive offerings Strong secular growth trends support elevated revenue growth Increasing regulatory requirements and consumer expectations drive growth in testing for pharmaceutical, diagnostics, energy, food and environmental safety end markets High-growth emerging markets account for ~1/3 of Agilent's revenue (China = 20% of rev.) High degree of recurring revenue results in economically resilient profit stream Recurring revenue = 60% of total revenue; growing at double the rate of instrument sales Organic revenue declined only 2% in 2009; recurring revenue then was 44% of total vs 60% today Delivering strong performance under current leadership team Since 2014, improved organic revenue growth to >6% and expanded EBIT margins by >500bps Significant future margin expansion and capital deployment opportunity Source: Company filings 31

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