A U G U S T 2 1,

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1 A U G U S T 2 1,

2 This communication contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. These forward-looking statements involve risks and uncertainties that could significantly affect the expected results and are based on certain key assumptions of Keysight s management and on currently available information. Due to such uncertainties and risks, no assurances can be given that such expectations or assumptions will prove to have been correct, and readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Keysight undertakes no responsibility to publicly update or revise any forward-looking statement. The forward-looking statements contained herein include, but are not limited to, information and future guidance on the company s goals, priorities, revenues, demand, financial condition, earnings, the continued strengths and expected growth of the markets the company sells into, operations, operating earnings, and tax rates that involve risks and uncertainties that could cause Keysight s results to differ materially from management s current expectations. Such risks and uncertainties include, but are not limited to, changes in the demand for current and new products, technologies, and services; customer purchasing decisions and timing, and the risk that we are not able to realize the savings or benefits expected from integration or restructuring activities. The words estimate, expect, intend, will, should, forecast, and similar expressions, as they relate to the company, are intended to identify forward-looking statements. In addition to the risks above, other risks that Keysight faces include those detailed in Keysight s filings with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended October 31, 2017, and Keysight s quarterly report on Form 10-Q for the period ended April 30, This 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 share-based compensation, restructuring and related costs, separation and related costs, acquisition and integration costs, amortization of acquisition-related balances, pension curtailment and settlement gains, Northern California wildfire related costs, acquisition-related compensation expense and others. 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. 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. Accordingly, no reconciliation to GAAP amounts has been provided. 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 slide 22 for more details on Non-GAAP financial measures. 2

3 Record non-gaap revenue of $1B grew 17% y/y, or 15% on a core* basis Record non-gaap EPS of $0.89 increased 45% y/y Orders grew 15% y/y, or 12% on a core* basis; fourth consecutive quarter of double-digit core* order growth and second quarter of last four quarters with orders over $1 billion Triple-digit 5G order growth; momentum continues for Keysight s differentiated 5G solutions and software applications Seventh consecutive quarter of double-digit automotive and energy solutions order growth Aerospace, Defense & Government revenue grew 22% y/y; fourth consecutive quarter of double-digit order growth ISG revenue of $119M; strong sequential revenue improvement following extensive integration activities in the prior quarter * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months. ** Reconciliations to closest GAAP equivalent provided. Refer to slide 22 for details of non-gaap financial measures. 3

4 Orders: $1,007M, +15%y/y (+12% core*) Revenue**: $1,008M, +17%y/y (+15% core*) Operating Margin**: 21.3%, +230 basis points y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months. ** Reconciliations to closest GAAP equivalent provided. Refer to slide 22 for details of non-gaap financial measures. 4

5 Q3 18 Non-GAAP Revenue*: $1,008M * Reconciliations to closest GAAP equivalent provided. Refer to slide 22 for details of non-gaap financial measures. 5

6 Regional Highlights (Y/Y Non-GAAP Revenue Growth**) Americas +16% (+16% core*): Strength in ADG, CC, EI and SS, and flat in ISG Asia Pacific +14% (+13% core*): Strength in ADG, CC, EI, and SS, with softness in ISG Europe +25% (+18% core*): Strength in ADG, CC, EI, ISG and SS * Core revenue growth excludes the impact of currency, acquisitions and divestitures closed in last twelve months. ** Reconciliations to closest GAAP equivalent provided. Refer to slide 22 for details of non-gaap financial measures. Key: ADG Aerospace, Defense & Government CC Commercial Communications EI Electronic Industrial Solutions IS Ixia Solutions SS Services Solutions 6

7 Revenue: $515M, +23% y/y (+23% core*) Operating Margin: 22.2%, +650 basis points y/y Commercial Communications: Triple-digit 5G order growth driven by 5G-related R&D spending across the wireless ecosystem; early investment in next-generation 400G and PAM-4 network test Aerospace, Defense & Government: Fourth consecutive quarter of double-digit order growth driven by continued demand across space, satellite, radar and electronic warfare applications * Core revenue growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months. CSG revenue excludes the impact of fair-value adjustments to acquisition-related deferred revenue balances for the Anite acquisition. Segment revenue and income from operations are consistent with the non-gaap financial measures on slide 22. 7

8 Revenue: $258M, +19% y/y (+14% core*); a record revenue quarter Operating Margin: 28.5%, +320 basis points y/y; a quarterly OM% record Double-digit order and revenue growth in automotive and energy solutions across all regions Double-digit general electronics revenue growth with strength in the Americas and Asia Pacific Double-digit order and revenue growth in semiconductor solutions driven by on-going capital investments in newly constructed fabs and increased capacity * Core revenue growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months. Segment revenue and income from operations are consistent with the non-gaap financial measures on slide 22. 8

9 Revenue: $119M, -1% y/y (-1% core*) Operating Margin: 8.1%, -11.8ppts y/y Strong sequential revenue improvement following extensive integration activities in prior quarter Continued progress on optimizing business; healthy funnel of opportunities and first significant 5G order booked this quarter ISG net revenue excludes the impact of fair-value adjustments to acquisition-related deferred revenue balances for the Ixia acquisition. Segment revenue and income from operations are consistent with the non-gaap financial measures on slide 22. 9

10 Revenue: $116M, +9% y/y (+7% core*) Operating Margin: 15.0%, -310 basis points y/y Second consecutive quarter of strong double-digit order growth with strength in the Americas and Europe Revenue growth across all services and solutions end markets (calibration, remarketed and repair) Acquired Thales Calibration Services; now largest calibration and support services organization in Australia * Core revenue growth excludes the impact of currency and acquisitions closed in last twelve months. Segment revenue and income from operations are consistent with the non-gaap financial measures on slide

11 End Market Revenue YoY % Commercial Communications Aerospace, Defense & Government Electronic Industrial Solutions $314M +23% $201M +22% $258M +19% Ixia Solutions $119M -1% Services Solutions $116M +9% Total* $1,008M +17% * Reconciliations to closest GAAP equivalent provided. Refer to slide 22 for details of non-gaap financial measures. 11

12 Guidance Q4 18 GAAP Revenue $996M - $1,016M Non-GAAP Revenue $1,000M - $1,020M Non-GAAP Revenue Growth +11% to +13% Non-GAAP Earnings per share $0.85 to $0.91 The GAAP vs. non-gaap revenue differential is due to the impact of fair-value adjustments to the acquired deferred revenue balances from Ixia; refer to reconciliations for details. Refer to Safe Harbor on page 2 for risks related to forward-looking statements. 12

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14 $M Q3'18 Q3'17 GAAP income (loss) from operations $ 128 $ (4) Amortization of acquisition-related balances Share-based compensation expense Acquisition and integration costs 6 12 Separation and related costs 4 Restructuring and related costs 3 3 Other 8 2 Non-GAAP income from operations $ 215 $ 164 GAAP OM% 12.8% (0.4)% Non-GAAP OM% 21.3% 19.0% Refer to slide 22 for details of non-gaap financial measures. 14

15 $M Q3'18 Q3'17 GAAP net income (loss) $ 121 $ (18) Amortization of acquisition-related balances Share-based compensation expense Acquisition and integration costs 6 12 Separation and related costs 4 Restructuring and related costs 3 3 Other 8 2 Adjustment for taxes (38) (35) Non-GAAP net income $ 170 $ 115 Shares Outstanding (a) GAAP Diluted EPS $ 0.63 $ (0.10) Non-GAAP Diluted EPS $ 0.89 $ 0.61 (a) EPS impact on Non-GAAP adjustments and non-gaap Net income is based on adjusted shares outstanding of 188 million for three months ended July 31, Refer to slide 22 for details of non-gaap financial measures. 15

16 KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF REVENUE EXCLUDING IMPACTS OF CURRENCY AND ACQUISITIONS OR DIVESTITURE (In millions) (Unaudited) PRELIMINARY Q4'18 Guidance Year-over-year compare Low end High end Q3'18 Q3'17 Percent Inc/(Dec) GAAP Revenue $ 996 $ 1,016 $ 1,004 $ % Amortization of acquisition-related balances Non-GAAP Revenue $ 1,000 $ 1,020 $ 1,008 $ % Less: Revenue from acquisition and divestiture included in segment results (10) (2) Currency impacts (5) - Non-GAAP Core Revenue $ 993 $ % Refer to slide 22 for details of non-gaap financial measures. 16

17 KEYSIGHT TECHNOLOGIES, INC. RECONCILIATIONS OF NON-GAAP REVENUE BY SEGMENT AND REGION (in millions) (Unaudited) PRELIMINARY Year-over-Year Amortization of acquisitionrelated GAAP Revenue balances Non-GAAP Revenue Revenue by Segment Q3'18 Q3'17 YoY % Chg. Q3'18 Q3'17 Q3'18 Q3'17 YoY % Chg. Communications Solutions Group $ 515 $ % $ - $ - $ 515 $ % Electronic Industrial Solutions Group % % Ixia Solutions Group % (1)% Services Solutions Group % % Keysight $ 1,004 $ % $ 4 $ 31 $ 1,008 $ % Amortization of acquisitionrelated GAAP Revenue balances Non-GAAP Revenue Revenue by Region Q3'18 Q3'17 YoY % Chg. Q3'18 Q3'17 Q3'18 Q3'17 YoY % Chg. Americas $ 403 $ % $ 2 $ 19 $ 405 $ % Europe % % Japan (2)% (2)% Asia Pacific ex-japan % % Total Revenue $ 1,004 $ % $ 4 $ 31 $ 1,008 $ % Asia Pacific $ 416 $ % $ - $ - $ 416 $ % Refer to slide 22 for details of non-gaap financial measures. 17

18 KEYSIGHT TECHNOLOGIES, INC. RECONCILIATIONS OF NON-GAAP CORE REVENUE BY SEGMENT AND REGION (in millions) (Unaudited) PRELIMINARY Year-over-Year Non-GAAP Revenue Revenue from acquisitions or divestiture Currency Adjustments (a) Non-GAAP Core Revenue Revenue by Segment Q3'18 Q3'17 YoY % Chg. Q3'18 Q3'17 Q3'18 Q3'18 Q3'17 YoY % Chg. Communications Solutions Group $ 515 $ % $ - $ 2 $ 2 $ 513 $ % Electronic Industrial Solutions Group % % Ixia Solutions Group (1)% (1)% Services Solutions Group % % Keysight $ 1,008 $ % $ 10 $ 2 $ 5 $ 993 $ % Non-GAAP Revenue Revenue from acquisitions or divestiture Currency Adjustments (a) Non-GAAP Core Revenue Revenue by Region Q3'18 Q3'17 YoY % Chg. Q3'18 Q3'17 Q3'18 Q3'18 Q3'17 YoY % Chg. Americas $ 405 $ % $ 2 $ 1 $ - $ 403 $ % Europe % % Japan (2)% (4)% Asia Pacific ex-japan % % Total Revenue $ 1,008 $ % $ 10 $ 2 $ 5 $ 993 $ % Asia Pacific $ 416 $ % $ - $ 1 $ 3 $ 413 $ % (a) We compare the year-over-year change in revenue excluding the effect of foreign currency rate fluctuations to assess the performance of our underlying business. To determine the impact of currency fluctuations, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the actual exchange rate in effect during the respective prior periods. Refer to slide 22 for details of non-gaap financial measures. 18

19 KEYSIGHT TECHNOLOGIES, INC. SEGMENT REVENUE RECONCILIATION (in millions) (Unaudited) PRELIMINARY Keysight Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 832 $ 878 $ 837 $ 990 $ 1,004 Amortization of acquisition-related balances Non-GAAP/Segment Revenue $ 863 $ 902 $ 856 $ 999 $ 1,008 Communications Solutions Group Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 418 $ 462 $ 420 $ 535 $ 515 Amortization of acquisition-related balances Segment Revenue $ 418 $ 462 $ 420 $ 536 $ 515 Electronic Industrial Solutions Group Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 218 $ 206 $ 203 $ 255 $ 258 Amortization of acquisition-related balances Segment Revenue $ 218 $ 206 $ 203 $ 255 $ 258 Ixia Solutions Group Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 89 $ 100 $ 108 $ 82 $ 115 Amortization of acquisition-related balances Segment Revenue $ 120 $ 124 $ 127 $ 90 $ 119 Services Solutions Group Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 107 $ 110 $ 106 $ 118 $ 116 Amortization of acquisition-related balances Segment Revenue $ 107 $ 110 $ 106 $ 118 $ 116 Refer to slide 22 for details of non-gaap financial measures. 19

20 KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF NON-GAAP REVENUE BY REGION (In Millions) (Unaudited) PRELIMINARY Keysight Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 832 $ 878 $ 837 $ 990 $ 1,004 Amortization of acquisition-related balances Non-GAAP Revenue $ 863 $ 902 $ 856 $ 999 $ 1,008 Americas Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 328 $ 354 $ 343 $ 379 $ 403 Amortization of acquisition-related balances Non-GAAP Revenue $ 347 $ 369 $ 354 $ 384 $ 405 Europe Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 138 $ 148 $ 169 $ 182 $ 185 Amortization of acquisition-related balances Non-GAAP Revenue $ 150 $ 157 $ 177 $ 186 $ 187 Asia Pacific Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 GAAP Revenue $ 366 $ 376 $ 325 $ 429 $ 416 Amortization of acquisition-related balances Non-GAAP Revenue $ 366 $ 376 $ 325 $ 429 $ 416 Refer to slide 22 for details of non-gaap financial measures. 20

21 KEYSIGHT TECHNOLOGIES, INC. RECONCILIATION OF NON-GAAP REVENUE BY END MARKET (In millions) (Unaudited) PRELIMINARY Amortization of acquisition-related GAAP Revenue balances Non-GAAP Revenue Percent Percent Q3'18 Q3'17 Inc/(Dec) Q3'18 Q3'17 Q3'18 Q3'17 Inc/(Dec) Aerospace, Defense & Government $ 201 $ % $ - $ - $ 201 $ % Commercial Communications % % Electronic Industrial % % Ixia % (1)% Services % % Total Revenue $ 1,004 $ % $ 4 $ 31 $ 1,008 $ % Refer to slide 22 for details of non-gaap financial measures. 21

22 Non-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 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. Non-GAAP Core Revenue is non-gaap revenue (see Non-GAAP Revenue above) excluding the impact of foreign currency changes and revenue associated with businesses acquired or divested 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. Non-GAAP Income from Operations, Non-GAAP Net Income and Non-GAAP Diluted EPS may include the following types of adjustments: 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 determining their non-gaap financial measures. 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 transaction and certain other cash costs associated with business acquisitions that are not normal recurring operating expenses, including amortization of amounts paid to redeem acquires 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. Separation and Related Costs: We exclude all incremental expenses incurred to effect the separation of Keysight from Agilent. We exclude expenses that would not have been incurred if we had no plan to spin-off including, among other things, branding, legal, accounting and advisory fees, costs to resize and optimize our infrastructure and other costs to separate and transition from Agilent. 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. Restructuring and Related Costs: 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 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. Northern California wildfire-related costs and Other Items: We exclude certain other significant income or expense items that may occur occasionally and are not normal, recurring, cash operating 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 would not anticipate occurring as part of our normal business on a regular basis. While not all-inclusive, examples of certain other significant items excluded from non-gaap financial measures would be: costs related to unusual disaster like Northern California wildfires, significant realized gains or losses associated with our employee benefit plans, gain on sale of assets and small divestitures etc. 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 third fiscal quarter of 2018 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 statements, including our Condensed Consolidated Statement of Cash Flows, portray those effects. Although we 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. 22