HOW WE OPERATE

Keysight's Leadership Model

Keysight customers are leaders in technology. They are the visionaries and innovators who achieve breakthroughs that connect and secure the world.

To accelerate their innovation, Keysight must anticipate technology trends and be ready with leading-edge solutions ahead of market windows, forging deep relationships to provide them the insights to be first and best.

Keysight's Leadership Model (KLM) is the company's enabler to continuously deliver greater value to customers, shareholders, and employees. It is the philosophy that permeates every aspect of our operations – driving innovation, speed, and excellence in execution.

Keysight Leadership Model

KLM DELIVERS BUSINESS VALUE

4-5%

Sustainable compound
annual growth rate,
3 – 5 year period

21-22%

Operating margin by 2021,
400 basis point improvement
from our prior baseline

40%

Operating margin incremental
on core growth
at or above 4%

≥10%

EPS growth by 2021,
an increase from our prior
8-10% range

Customer Success

CUSTOMER SUCCESS

The Heart of Everything We Do

Enabling our customers’ business and technological success drives everything we do. When our customers are successful, it enables us to deliver the returns and performance our shareholders expect, and it allows us to be a healthy business with opportunities for our employees.

At Keysight, customer success is all about our relentless drive to deeply understand our customers’ business and help them achieve positive, sustained outcomes through the application of new insights and the use of Keysight solutions. The forward-looking, sustained partnerships we forge with our customers foster growth for them and for our company.

KLM'S PILLARS

Market Insight

At Keysight, we drive for meticulous understanding of market trends to act on the best opportunities that create value for customers. Market insight informs our merger and acquisition (M&A) priorities, focuses our product and solution roadmaps, and becomes a key factor in our hiring priorities and talent development plans. Our market insight allows us to move with speed and focus, outpacing our competitors and delivering first-to-market solutions for our customers’ biggest challenges.

Capital Allocation

Keysight maintains balance sheet flexibility to invest early in core technology, supplement portfolio gaps, and expand markets with disciplined M&A while returning capital to shareholders. The result: a balanced capital allocation strategy to drive value for both our customers and our shareholders.

First To Market Solutions

Keysight’s commitment to customers is to be the first to deliver solutions to their business and technology challenges. Being first means doing what has never been done before – ahead of any competitors and in time to meet our customers’ needs, where time and need are defined by our customers, not by us. Starting with customer insight, Keysight combines deep technology and measurement expertise as well as ongoing leadership in standards bodies to innovate solutions that include hardware, software, and services – first.

Operational Excellence

At Keysight, no practice or process stays untouched. We have a relentless focus on operational excellence across all functions. From accelerating R&D by developing common technology platforms, maximizing margins through cost reductions and supply optimization, and LEAN+ processes for continuous improvement, Keysight relies on its operational rigor to drive long-term competitive advantage.

Employee Growth

Keysight’s mission of accelerating innovation to connect and secure the world inspires our employees to blaze technological trails, tackle problems passionately, delight our customers, and create value for shareholders. Employee growth aligns directly with Keysight’s business strategy. When our people grow, our customers succeed, and our company grows.

KLM'S ENABLING VALUES

Our values define our culture and purpose. They attract and retain talent, and are the foundation to delivering on Keysight's Leadership Model.

We operate with uncompromising integrity. We do what's right.

We are committed to corporate social responsibility. We have a long history of environmental sustainability and of ethical and socially responsible operatons.

We seek external viewpoints and are inspired to constantly improve so we always deliver to the highest standards of performance.

We embrace a fearless vision of where technology can take us and we possess the courage and passion to tackle challenging problems at the speed of our customers.

We operate as One Keysight. This means we bring the entire organization to bear when solving customer problems and driving results for our shareholders.

Our mission across the world and with every one of our 12,000+ employees is simple:
To be the market leader in accelerating our customers' innovations to connect and secure the world. And KLM is our means to achieve it.

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