2016 Corporate Social Responsibility Report

Keysight Technologies

2016 Corporate Social Responsibility Report

Letter from Our CEO Increasing global concern about diminishing natural resources and rising social issues have highlighted the important role industry can play in making life on our planet more sustainable. Keysight Technologies acknowledges our responsibility to be part of the solution for these global issues by conducting business in an environmentally sustainable and socially responsible fashion. Our corporate social responsibility (CSR) program has a dual purpose: to help achieve the company’s goals of growth in revenue, profit and total shareholder return, and to build a better planet by moving the world’s technology forward and with operations that adhere to high ethical, environmental sustainability and social responsibility standards. At the foundation of Keysight’s CSR program are “pillars” – key elements that focus our programs, policies and activities to meet our annual goals. I am pleased to report that in 2016, we made progress in all of our six foundational CSR pillars. For example, we have a technology refresh program that provides our customers options to extend the service life of their existing equipment, enabling us to repurpose older instruments for resale and recover parts, reducing diversion to landfills. Other highlights from our fiscal year 2016 include programs aimed at making a positive difference in communities and with non-profit and education organizations around the world. Through Keysight’s annual Giving Program, more than $1.5 million in employee donations and company matching funds were given to 844 non-profit organizations. Our University Relations Program delivered more than $3.5 million in research grants and equipment donations to universities in the Americas, Europe and Asia. Detailed results from actions taken in all our pillars are included in this 2016 Corporate Social Responsibility Report. Looking ahead to the next several years, Keysight anticipates our CSR program will help us meet key business goals while continuing to achieve our sustainability objectives. Positive outcomes expected include

• Improved talent attraction and employee retention from opportunities for new-hire engagement in company training, philanthropic and volunteerism programs
• Enhanced innovation in areas of strategic business growth through university engagement and research grants
• Cost containment through water and energy conservation and carbon footprint reduction
• Expense management through efficient resource utilization, such as our continued transition to digital print materials
• Alignment with a growing population of investors making corporate social responsibility an

investment priority

I believe the steps Keysight is taking will continue to build a strong foundation for long-term growth and value creation, while at the same time meeting our sustainability goals and reinforcing our commitment to corporate social responsibility.

VISION

Keysight’s CSR vision is to build a better planet by moving the world’s technology forward and employing a global business framework of ethical, environmentally sustainable and socially responsible operations. To achieve this vision, Keysight implements programs and initiatives that support our business commitments – revenue growth, profitability and value creation – while positively impacting the planet through natural resource conservation, emission reduction, waste minimization and pollution prevention. We also promote human rights within the company’s sphere of influence and make contributions in communities where we have a presence to improve education and the quality of life.

KEYSIGHT BUSINESS STRATEGY

Keysight Technologies is a leading technology company that helps its engineering, enterprise and service provider customers optimize networks and bring electronic products to market faster and at a lower cost. Keysight solutions go where the electronic signal goes, from design simulation, to prototype validation, to manufacturing test, to optimization in both physical and virtual networks. Customers span the worldwide communications ecosystem, aerospace and defense, automotive, energy, semiconductor and general electronics end markets. Our largest research and development and manufacturing facilities worldwide are located in California and Colorado in the U.S., and in China, India, Japan, Malaysia, the United Kingdom, Germany, Singapore, Spain, Finland and Romania. To maximize Keysight’s success, we are implementing a strategy to transform from a hardware[1]centric product company to a software-centric solutions company. While hardware still represents an important part of our business, we are on the leading edge of a trend in electronic design and test to provide total customer solutions that are software-centric and include a greater emphasis on services.

MATERIAL CORPORATE SOCIAL RESPONSIBILITY TOPICS

A materiality assessment was conducted to identify and understand environmental and

social risks as well as strategic opportunities for our business.

As part of the materiality assessment, Keysight contracted with a third-party specialist to conduct:

• Peer analyses of five similar companies to understand where Keysight stands globally in its corporate social responsibility efforts
• Internal functional and executive stakeholder interviews across global business functions, including investor relations, order fulfillment, global sales, corporate services, human resources, workplace solutions, product innovation and quality, and business industry groups
• External stakeholder interviews representing customers, investors, industry associations, academics and non-governmental organizations to identify common themes in priorities for the next three to five years and potential performance improvement trends in corporate citizenship

CSR STRATEGY

In developing Keysight’s CSR strategy, we relied heavily on our materiality assessment and priority material topics to guide the program. For ongoing alignment, we also regularly engage with critical stakeholders – including customers, investors, suppliers, company executives and non[1]governmental organizations – to ensure they are informed about our business and sustainability efforts and to understand their expectations and perspectives of our business. This ongoing stakeholder engagement is accomplished through consultation, surveys, ad-hoc feedback and reviews. Based on this work, Keysight adopted six foundational pillars that support our CSR vision and commitment. These pillars, shown on the right, include programs and policies with action plans, accountabilities and goals.

CSR GOVERNANCE

Keysight’s CSR program is managed by a cross-functional governance team responsible for meeting the company’s corporate citizenship vision and stakeholder expectations by identifying program elements and driving accountabilities companywide. Governance team members represent their functional areas in the development and oversight of the CSR strategy, and are responsible for completing program deliverables. The governance team has direct oversight from Keysight’s senior vice president of Corporate Services, with an executive steering committee composed of executives and senior managers from finance, environment health and safety, global procurement, human resources, investor relations, corporate counsel, corporate communications, and product environmental and regulatory compliance.