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A GILENT T ECHNOLOGIES UBS G LOBAL L IFE S CIENCES C ONFERENCE 2011 NICK ROELOFS,PH.D. PRESIDENT LIFE SCIENCES GROUP SEPTEMBER 19, 2011 NEW Y ORK, NY
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UBS GLOBAL LIFE SCIENCES C 2011...Page 4 FY 2011 FINANCIAL HIGHLIGHTS Q1 FY11 Actual Q2 FY11 Actual Q3 FY11 Actual FY11 Guidance** (Mid‐Point) Revenue* $1.52B $1.68B $1.69B $6.65B

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  • AGILENT T ECHNOLOG IES

    UBS  GLOBAL LIFE SCIENCESCONFERENCE 2011

    NICK ROELOFS, PH.D.PRESIDENTLIFE SCIENCES GROUP

    SEPTEMBER 19, 2011NEW YORK, NY

  • This presentation contains forward-looking statements (including, without limitation, information and future guidance on our goals, priorities, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earnings, the continued strengths and expected growth of the markets we sell into, operations, operating earnings, and tax rates) that involve risks and uncertainties that could cause results of Agilent to differ materially from management’s current expectations.

    In addition, other risks that the company faces in running its operations include the ability to execute successfully through business cycles; the ability to successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross margin pressures; the risk that our cost-cutting initiatives will impair our ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties on our markets and our ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix, and other risks detailed in the company's filings with the Securities and Exchange Commission, including our quarterly report on Form 10-Q for the quarter ended July 31, 2011.

    The company assumes no obligation to update the information in these presentations. These presentations and the Q&A that follows include non-GAAP numbers. A presentation of the most directly comparable GAAP numbers and the reconciliations between the non-GAAP and GAAP numbers can be found at http://www.investor.agilent.com under “Financial Results” and accompany this slide set.

    SAFE HARBOR

    Page 2

  • Page 3

    LTM Revenue*$1.1B

    LTM Revenue*$1.0B

    LTM Revenue*$2.7B

    Electronic Measurement

    Group

    ChemicalAnalysisGroup

    LifeSciences

    Group

    FY10 Revenue: $2.8BFY10 Operating Margin* 16%

    FY10 Revenue: $1.2BFY10 Operating Margin* 23%

    FY10 Revenue: $1.5BFY10 Operating Margin* 15%

    Ron NersesianPresident

    Mike McMullenPresident

    Nick RoelofsPresident

    FY10 Revenue $5.5B, +19% organic growth Y/Y, 17% Operating Margin*FY10 Non-GAAP EPS $2.00*. Up from $0.80* in FY09

    *Presented on a non-GAAP basis; reconciliations to closest GAAP equivalent provided

    THE WORLD’ S PREMIER MEASUREMENT COMPANY

  • Page 4

    FY  2011  F INANC IAL H IGHL IGHTS

    Q1 FY11 Actual

    Q2 FY11Actual

    Q3 FY11 Actual

    FY11 Guidance**(Mid‐Point)

    Revenue* $1.52B $1.68B $1.69B $6.65B

    Organic Revenue Growth* 19% 21% 19% 17%

    Operating Margin* 17.7% 19.3% 20.2%

    EPS* $0.60 $0.74 $0.77 $2.91

    ROIC* 21% 25% 25%

    Operating Cash Flow $120M $378M $252M $1,100M

    *Presented on a non-GAAP basis; reconciliations to closest GAAP equivalent provided**FY11 guidance as of August 15, 2011

    • Sustained performance in Q3; revenue growth continues to outpace markets.• Q3 results exceeded the top range of guidance for Revenue and EPS.• Operating Margin of 20.2% is a historical high for Agilent, up 220 basis points YoY.• Achieved 31% operating profit YoY incremental.

  • Continue to focus on four point strategy• Market reach and customer trust

    • Sales, service, and support reach into over 100 countries• #1 customer loyalty ranking in every major product category*• 42% of employees based in Asia

    • Technology leadership• 10% Revenue invested in R&D and ~2600 employees • Highest performing Oscilloscopes, Sources & Signal Analyzers, Network

    Analyzers, Liquid and Gas Chromatographs, and Mass Spectrometers• Scale

    • Among the lowest instrument cost of sales in the industry• Purchasing power and infrastructure leverage

    • Team• Top quartile employee satisfaction• Well below average industry turnover

    *Source: Lieberman Research Worldwide

    Page 5

    All built on Agilent’s operating model

    AGILENT’S STRATEGY TO WIN

  • Q3’11  SEGMENT REVENUE DISTRIBUTION BY GEOGRAPHY

    Page 6

    • Q3’11 YoY organic revenue growth: Americas 18%, Europe 9%, Asia Pacific 27%• Q3’11 percentage of Agilent revenues: U.S. 29%, China 17%, Japan 9%• ~75% sales through direct channels, ~25% through indirect channels• Best in class manufacturing capability with continued focus on manufacturing cost reductions

  • Page 7

    AGILENT OPERAT ING MODEL*

    FY11 Guidance**(Mid-Point)

    -1σ MOSTPROBABLE***

    +1 σ

    Organic RevenueGrowth %

    17% 4% 8% 12%

    OM % 18% 20% 21%

    YoY OM Incremental %

    20% 36% 43%

    ROIC % 23% 25% 27%

    *Presented on a non-GAAP basis**FY11 guidance as of August 15, 2011 ***Not company guidance

  • 31% growth

    (1) Market size and growth data per Company estimates(2) Percentages of Agilent revenue based on last four quarters of revenue: Q4 FY10 – Q3 FY11; Percentages of growth based on year‐over‐year organic revenue growth in Q3’11 vs. Q3’10.

    Page 8

    AGILENT ’ S OUTLOOK &  GROWTH IN END MARKETS

    13% of AgilentrevenueChemical & Energy

    • Drivers:  Positive outlook driven  by oil & commodity demand; alternative energy development

    • Market Growth:  Mid to high single digits

    10% of AgilentrevenueAerospace & Defense

    • Drivers:  Capitalize on shift to non‐US Aerospace & Defense (>30% of Agilent’s A&D segment); homeland security programs

    • Market Growth:  Flat to slightly down

    18% of AgilentrevenueCommunications

    • Drivers:  4G/LTE (Wireless R&D); smartphone explosion; China 3G (Wireless Manufacturing) 

    • Market Growth:  Mid to high single digits 

    14% of AgilentrevenuePharma & Biotech

    • Drivers:  Research shift to developing economies; emerging country demand for domestic therapeutics

    • Market Growth:  Mid single digits 

    • Drivers:  Emerging markets (China); high speed digital I/O demand driving  need for technology refresh 

    • Market growth:  Mid single digits

    21% of Agilentrevenue        

    Industrial, Comps &     Semi

    10% of Agilentrevenue

    Environmental &   Forensics

    • Drivers:  Increasing global regulations; emerging markets demand• Market Growth:  Low to mid single digits 

    6% of AgilentrevenueFood

    • Drivers:  Capitalize on increased global demand from export and domestic public health issues (i.e. China, India, US, Europe)

    • Market Growth:  Mid to high single digits

    8% of Agilentrevenue

    Life Sciences Academia & Government

    • Drivers:  Shift to “omics”, synthetic biology, synthetic fuels, food• Market Growth:  Low to mid single digits

    +31% growth

    +33% growth

    +17% growth

    +25% growth

    ‐2% growth

    +7%  growth

    +8%  growth

    +10% growth

  • Market Size: $20B Growth: 3-6%

    Growth Drivers• Academic and government investment

    • Life Science applications – “omics”

    • Growth in generics, developing economies

    • Therapeutic target conversion to New Biological Entities

    • UHPLC acceleration of Pharma LC replacement cycle

    14% of Agilent revenue

    8% of Agilent revenue

    Academic and Government(Not‐For‐Profit)

    Pharma/Biotech(For Profit)

    L I FE S C IENCES MARKET OVERV IEW

    Page 9

    (1) Market size and growth data per Company estimates(2) Percentages of Agilent revenue based on last four quarters of revenue: Q2 FY10 – Q1 FY11

  • NMR and MRI

    OpenLab Informatics Portfolio

    Sophisticated Sample Prep Solutions

    Converting Data into InformationAccurate & Reliable Detection

    TECHNOLOGY ‐ LEAD ING L IFE S C IENCE PORTFOL IO

    RapidFire Drug Screening Technology

    SureSelect XT Target Enrichment System

    708-DS Dissolution Apparatus

    SampliQ Solid Phase Extraction

    SurePrint CGH + SNP Microarrays

    DNA, RNA and Protein Bioreagents Multiple Affinity Removal Kits

    GeneSpring Multi-omicsAnalysis Software

    6000 Series LC/MS XRD

    Automation

    Powerful Separation

    HPLC Columns

    1200 Infinity LC Series

    Lab 901 Electrophoresis

    Capillary Electrophoresis & BioAnalyzer

    HPLC-Chips Bio-Inert LC

    qPCR

    Breakthrough products and

    solutions

    Page 10

  • Channel – Immediate Impact• Rapidly staffing global service, support• Solid orders growth, long cycle products

    mean future revenueTechnology – Changes in 2012

    • New consoles shipping from Penang• US R&D teams relocated to Agilent sites• Planning to build world’s largest magnet

    Significant Customer Wins• Trinity College Dublin (Ireland)• Technische Universitaet Muenchen (Germany)

    Agilent NMR portfolio delivers complete analytical solutions from research through production

    Page 11

    NMR:  TRANSFORMING OUR PORTFOL IO

  • CAG + LSG Services & Consumables

    FY10: 22% growth (10% organic)

    Opportunity: Penetrate Agilent installed base; extend to competitor installed base

    Strategies: Consumables

    • Leverage broadened portfolio with expanded customer reach

    • Distribution and direct marketing capabilities

    Services• Apply Service delivery model

    Non-Agilent Installed Base• Cross Lab program for Services and

    Consumables

    Page 12

    60%21%

    19%

    CAG + LSG FY10 revenueServices revenue* $520MConsumables revenue* $556M

    Services

    Consumables

    Instruments

    *FY10 CAG+LSG combined, inclusive of partial-year Varian

    AGGRESSIVE EXPANSION OF RECURRING REVENUE BUSINESS

  • Q3FY11 Revenue Distribution Q3 Global Workforce Distribution

    • Rebalance manufacturing to drive cost and leverage Agilent’s global scale• Automation Instrumentation in Singapore – FY09• LCMS 100% in Singapore - FY11• NMR electronics 100% in Penang - FY11

    • Expanding Life Science Bangalore India Application Research Center• Building PCR Instrumentation R&D team in Penang

    LSG  GEOGRAPHIC FOOTPR INT

    Page 13

  • LSG  EMERGING MARKETS POS IT IONChina

    • Strong market growth in Academia and Pharma• LSG’s second largest country – 36% growth (28%

    organic) in FY11 YTD• Investing in dedicated life science sales, technical

    support and service teams

    India• Strong rebound in Pharma market• LSG sees 16% growth (11% organic) in FY11 YTD• Expanding Life Science Application Center in

    Bangalore

    Brazil• Varian acquisition expands infrastructure• Government backing developing Pharma industry• Small LSG revenue base drives 104% growth (91%

    organic) in FY11 YTD

    Page 14

    (1) Percentages of growth based on year‐over‐year revenue growth in Q1‐Q3 FY11 vs. Q1‐Q3 FY10.

  • Grow Market Share • Deliver leading-edge application solutions customers demand• Drive emerging application trends • Leverage strong global presence to expand in developing

    geographies

    Strengthen Technology Base• Develop breakthrough products and technologies• Lead new technology restatement and market creation • Excel in customer service and support

    Leverage Agilent’s Breadth and Scale• Incorporate leading-edge electronics across instrumentation • Drive Cost of Sales improvement via Agilent’s geographic

    procurement strength• Enable scalable and sustainable growth by leveraging

    Agilent’s global manufacturing footprint

    L IFE S C IENCES :  STRATEGY TO WIN

    Page 15

  • APPENDIX

  • Page 17

    AGILENT OPERAT ING MODEL*

    - 1 σ MostProbable**

    +1 σ

    EMG Organic Rev. Growth %Operating Margin %YoY OM Incremental %

    2%19%-11%

    6%21%40%

    11%23%48%

    CAG Organic Rev. Growth %Operating Margin %YoY OM Incremental %

    5%22%30%

    8%23%40%

    11%24%44%

    LSG Organic Rev. Growth %Operating Margin %YoY OM Incremental %

    8%15%28%

    10%15%30%

    13%16%36%

    *Presented on a non-GAAP basis**Not company guidance

  • Page 18

    HOW TO MANAGE IN AN UNCERTAIN ENVIRONMENT?

    • Grow expenses slower than targeted organic revenue growth

    GTargetedRevenueGrowth

    MaximumExpenseGrowth

    ResultingIncremental

    Operating Margin

    EMGCAGLSG

    AgilentGIO*

    6%8%

    10%8%

    3.6%5.6%7.0%4.8%2.5%

    40%40%30%36%

    • Default rule: productivity offsets inflation, no incremental spend• Any additional spend must create value• If revenue upside, deliver higher incremental operating margin• Maintain a high % of variable / flexible expenses*Global Infrastructure Organization: IT, Workplace Services, Labs, Finance, Corporate Development, HR, Legal

  • Page 19

    • Net cash & short term investments of $1.0B* as of July 31, 2011. Most cash held outside of the United States.

    • Priority use of cash: Reserve for organic, inorganic investments meeting strategic & return criteria. Increasing pipeline.

    • Use available cash in the U.S. to repurchase shares.

    • No plans to borrow to repurchase stock.

    CASH AND CAP ITAL STRUCTURE UPDATE

    *Presented on a non-GAAP basis; reconciliations to closest GAAP equivalent provided

  • Platforms Applications Markets Competitors• Preparative and Analytical LC in

    R&D /QC• Molecular biology, cancer research • Education & Research / Routine

    testing

    • Pharma and Biopharma

    • Life Science Research• Academic/Government

    • Waters• Shimadzu• Thermo/Dionex

    LC/MS • NCE/NBE Discovery and Development

    • Diff. Expression and Pathway Analysis

    • Protein ID, Protein Quantitation

    • Pharma and Biopharma

    • Metabolomics

    • Proteomics

    • Waters• Danaher• Thermo• Bruker• Shimadzu

    Genomics • SureSelect: target enrichment for NGS

    • SurePrint GE Arrays: Microarrays for GE profiling

    • SurePrint CGH Arrays: Microarrays for cytogenetic testing

    • Academic/Govt., Pharma

    • Academic/Govt., Pharma

    • Academic/Government

    • Life• Illumina• Affymetrix• Nimblegen

    NMR/MRI • Structure elucidation, molecular dynamics and in vivo imaging for broad range of small molecules, nucleic acids, proteins

    • Academic research• Pharma discovery and

    development• Industrial R&D, process

    development

    • Bruker • JEOL

    HPLC

    LC/MS

    GENOMICS

    NMR/MRI

    L IFE S C IENCES GROUP:  KEY P LATFORMS

  • Page 21

    Applications Markets Competitors

    GCGas chromatography

    Used to separate a liquid or gas sample into its individual components.

    Major uses are for research and quality control in the chemical and petroleum industries, and in forensics/drug testing.

    • Shimadzu• Perkin Elmer• Thermo Fisher• Bruker

    Agilent is the acknowledgedmarket leader

    GC-MSGas chromatography-

    mass spectroscopy

    Used to identify known and unknown components or contaminants.

    Major uses are for environmental testing and analysis, food safety testing, forensics/drug testing, and oil and gas analysis.

    • Thermo Fisher• Shimadzu• Bruker• Perkin Elmer

    Agilent is theacknowledged market leader

    CHEMICAL ANALYS I S GROUP:  KEY P LATFORMS

  • ICP-MS with MassHunter Workstation

    MS40+ Large CapacityRotary Vane

    FRG-720Full Range Gauge

    GC Columns HPLC Columns

    TransportableGC/MSD

    Sample Prep Workbench

    Turbo 850GC-MS

    Triple Quad

    MS Analyzed Vials

    Driven by Technology Leadership

    Expand leadership in Atomic and Molecular Spectroscopy

    Broaden GC-MS portfolio and sample prep solutions

    Expand Chemistries and Supplies offering

    Leverage unique position of instrument and vacuum leadership

    Exoscan

    Page 22

    Headspace Sampler

    Polymeric ColumnsSolid Phase ExtractionConsumables UV-VisAA and OES

    Micro GC

    Ion Trap

    CAG  ADVANTAGE:  PORTFOL IO TRANSFORMAT ION

  • Page 23

    Leverage Agilent Asia supply chain. Shift manufacturing and material sourcing to lower-cost countries; leverage existing capability.

    Reduce vertical integration. Outsource internal sub-assemblies.

    Streamline distribution and commercial centers. Eliminate redundancy, gain efficiency and new scale.

    Re-engineer products. New product designs and components, coupled with engineering heritage.

    Agilent Penang campus

    CAG  VARIAN COST SYNERGY OPPORTUNIT IES

    Expected Cost of Sales improvement of 10 ppt over 4 years

  • Page 24

    Focus on Growth Geographies. Strong foundation, Agilent core competency.

    Leading Technology. Innovative products, emerging applications, investment model.

    Superior Customer Experience. Proven Sales and Services model.

    M&A Synergy-Capture Capabilities. Varian revenue and margin.

    Operational Excellence. Manufacturing and Logistics model.

    CHEMICAL ANALYS I S :  OUR WINNING FORMULA

  • Page 25

    Applications Markets Competitors

    Tests components for cell phones and base stations

    •General Purpose •Aerospace Defense •Wireless•Computers, Semiconductors, Industrial

    •Rohde & Schwarz•Anritsu

    Verifies new computer bus signals

    •Computers, Semiconductors, Industrial•GP/Education•Aerospace/Defense•Wireless

    •Danaher (Tek)•LeCroy

    Verifies base stations performance

    •Wireless•Aerospace Defense•General Purpose

    •Rohde & Schwarz•Anritsu

    Tests wireless devices under real world conditions

    •Aerospace Defense•Wireless•General Purpose

    •Rohde & Schwarz•Aeroflex•Anritsu

    4  KEY EMG  PLATFORMS

  • $0.0

    $0.2

    $0.4

    $0.6

    $0.8

    $1.0

    $1.2

    $1.4

    $1.6

    $1.8

    0

    200

    400

    600

    800

    1,000

    1,200

    1,400

    1,600

    1,800

    Hand

    set T

    &M M

    arket ($B

    )

    Million

    s of H

    andsets S

    hippe

    d Each Y

    ear

    1G 2G 3G 4G Handset T&M Market ($B)

    Page 26

    • LTE requires recapitalization of Test and Measurement (T&M) equipment• Foresee wireless handset T&M equipment growth from $1B to $1.6B from 2010 ‐ 2013• Agilent’s 4G position stronger than previous 3G position

    Handset Test represents approximately 25% of the 

    Communications Test market

    POST‐RECESSION WIRELESS OPPORTUNITY WITH LTE

  • • Largest and strongest portfolio in industry

    • Exceptional direct sales force with strategic relationships

    • Expanding China sales operations

    • Expanding indirect sales channel

    • Highest customer loyalty in key product categories

    • Investment in core technologies

    • Introductions of world’s highest performing T&M products

    • World’s largest T&M supply chain centered in low cost region

    • Delivering to the Agilent operating model

    Market reach &customer trust

    Technology leadership

    Scale and leverage

    Delivered by world class talent

    Page 27

    E LECTRONIC MEASUREMENT:  HOW WE WIN

  • RECONCILIATIONS

  • (In millions, except margins and ROIC data)

    Q1 Q2 Q3 Q4 TotalOrders 797$ 844$ 842$ 2,483$

    Net revenue 771$ 834$ 856$ 2,461$

    Gross margin % 58.1% 59.5% 57.7% 58.5%

    Income from operations 156$ 191$ 204$ 551$

    Operating margin % 20.3% 22.9% 23.8% 22.4%

    Segment Assets 2,092$ 2,171$ 2,167

    Return On Invested Capital (a) , % 34% 42% 44%

    Q1 Q2 Q3 Q4 TotalOrders 642$ 784$ 750$ 818$ 2,994$

    Net revenue 629$ 699$ 692$ 764$ 2,784$

    Gross margin % 57.3% 58.8% 58.8% 58.7% 58.4%

    Income from operations 58$ 100$ 127$ 153$ 438$

    Operating margin % 9.3% 14.2% 18.3% 20.0% 15.7%

    Segment Assets 2,243$ 2,284$ 2,191$ 2,245$

    Return On Invested Capital (a) , % 13% 20% 25% 32%

    The preliminary segment information is estimated based on our current information.

    Income from operations reflect the results of our reportable segments under Agilent's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of intangibles, the impact of restructuring charges, the acquisition of Varian, Inc., and the sale of our businesses.

    In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.

    (a) Return On Invested Capital (ROIC) is a non-GAAP measure and is defined as income from operations less other (income) expense and taxes, annualized, divided by the average of the two most recent quarter-end balances of assets less net current liabilities. The reconciliation of ROIC can be found on page 13 of these tables, along with additional information regarding the use of this non-GAAP measure.

    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

    AGILENT TECHNOLOGIES, INC.ELECTRONIC MEASUREMENT SEGMENT

    (Unaudited)PRELIMINARY

    FY 2011

    FY 2010

  • (In millions, except margins and ROIC data)

    Q1 Q2 Q3 Q4 TotalOrders 388$ 380$ 400$ 1,168$

    Net revenue 349$ 381$ 383$ 1,113$

    Gross margin % 51.1% 50.3% 50.7% 50.7%

    Income from operations 65$ 72$ 79$ 216$

    Operating margin % 18.7% 18.9% 20.6% 19.4%

    Segment Assets 1,716$ 1,756$ 1,748

    Return On Invested Capital (a) , % 15% 16% 18%

    Q1 Q2 Q3 Q4 TotalOrders 242$ 231$ 350$ 401$ 1,224$

    Net revenue 244$ 238$ 329$ 389$ 1,200$

    Gross margin % 55.1% 54.5% 52.7% 52.5% 53.5%

    Income from operations 67$ 57$ 69$ 86$ 279$

    Operating margin % 27.5% 23.9% 21.0% 22.1% 23.3%

    Segment Assets 529$ 527$ 1,592$ 1,635$

    Return On Invested Capital (a) , % 60% 48% 17% 20%

    The preliminary segment information is estimated based on our current information.

    Income from operations reflect the results of our reportable segments under Agilent's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of intangibles, the impact of restructuring charges, the acquisition of Varian, Inc., and the sale of our businesses.

    In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.

    (a) Return On Invested Capital (ROIC) is a non-GAAP measure and is defined as income from operations less other (income) expense and taxes, annualized, divided by the average of the two most recent quarter-end balances of assets less net current liabilities. The reconciliation of ROIC can be found on page 13 of these tables, along with additional information regarding the use of this non-GAAP measure.

    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

    AGILENT TECHNOLOGIES, INC.CHEMICAL ANALYSIS SEGMENT

    (Unaudited)PRELIMINARY

    FY 2011

    FY 2010

  • (In millions, except margins and ROIC data)

    Q1 Q2 Q3 Q4 TotalOrders 442$ 479$ 445$ 1,366$

    Net revenue 404$ 464$ 453$ 1,321$

    Gross margin % 53.3% 52.2% 51.3% 52.2%

    Income from operations 48$ 61$ 60$ 169$

    Operating margin % 11.8% 13.2% 13.2% 12.8%

    Segment Assets 1,707$ 1,852$ 1,855

    Return On Invested Capital (a) , % 12% 15% 14%

    Q1 Q2 Q3 Q4 TotalOrders 336$ 331$ 391$ 468$ 1,526$

    Net revenue 340$ 334$ 374$ 431$ 1,479$

    Gross margin % 54.4% 55.0% 53.8% 51.2% 53.5%

    Income from operations 55$ 48$ 56$ 62$ 221$

    Operating margin % 16.3% 14.2% 14.9% 14.5% 15.0%

    Segment Assets 1,162$ 1,107$ 1,493$ 1,564$

    Return On Invested Capital (a) , % 21% 18% 15% 17%

    The preliminary segment information is estimated based on our current information.

    Income from operations reflect the results of our reportable segments under Agilent's management reporting system which are not necessarily in conformity with GAAP financial measures. Income from operations of our reporting segments exclude, among other things, charges related to the amortization of intangibles, the impact of restructuring charges, the acquisition of Varian, Inc., and the sale of our businesses.

    In general, recorded orders represent firm purchase commitments from our customers with established terms and conditions for products and services that will be delivered within six months.

    (a) Return On Invested Capital (ROIC) is a non-GAAP measure and is defined as income from operations less other (income) expense and taxes, annualized, divided by the average of the two most recent quarter-end balances of assets less net current liabilities. The reconciliation of ROIC can be found on page 13 of these tables, along with additional information regarding the use of this non-GAAP measure.

    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

    AGILENT TECHNOLOGIES, INC.LIFE SCIENCES SEGMENT

    (Unaudited)PRELIMINARY

    FY 2011

    FY 2010

  • AGILENT TECHNOLOGIES, INCRECONCILIATION FROM GAAP TO NON-GAAP

    TWELVE MONTHS ENDED OCTOBER 31, 2009(Unaudited)

    Acceleration of Share-Based

    Restructuring Compensation Patentand Other Asset Business Expense Related to Intangible Pension Litigation Litigation Adjustment for

    (In millions, except per share amounts) GAAP Related Costs Impairments Disposals Worforce Reduction Amortization Curtailment Judgement Settlement Other Taxes Non-GAAP

    Orders Change Year Over Year -22% 4,486$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4,486$ -22% Change Year Over Year

    Net revenue Change Year Over Year -22% 4,481$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4,481$ -22% Change Year Over Year

    Costs and expenses: Cost of products and services Gross Margin 51.1% 2,189 (74) (11) - - (37) 4 - - (3) - 2,068 53.8% Gross Margin Research and development As a % of Revenue 14.3% 642 (36) (4) - - - 4 - - (1) - 605 13.5% As a % of Revenue Selling, general and administrativ As a % of Revenue 35.8% 1,603 (137) (29) - (5) (8) 8 - (17) - 1,415 31.6% As a % of Revenue Total costs and expenses 4,434 (247) (44) - (5) (45) 16 - - (21) - 4,088

    Income from operations Operating Margin 1.0% 47 247 44 - 5 45 (16) - - 21 - 393 8.8% Operating Margin

    Other income (expense), net (40) - - (8) - - (6) 13 2 - (39)

    Income before taxes 7 247 44 (8) 5 45 (16) (6) 13 23 - 354

    Provision for taxesTax rate (incl. Valuation

    Allowance) 543% 38 - - - - - - - - - 36 74 21%Tax rate (incl. Valuation Allowance)

    Net income (loss) Net Margin -0.7% (31)$ 247$ 44$ (8)$ 5$ 45$ (16)$ (6)$ 13$ 23$ (36)$ 280$ 6.2% Net Margin

    Net income (loss) per share - Basic and Diluted:

    Basic (0.09)$ 0.71$ 0.13$ (0.02)$ 0.01$ 0.13$ (0.05)$ (0.02)$ 0.04$ 0.07$ (0.10)$ 0.81$ Diluted (0.09)$ 0.71$ 0.13$ (0.02)$ 0.01$ 0.13$ (0.05)$ (0.02)$ 0.04$ 0.07$ (0.11)$ 0.80$

    Weighted average shares used in computing net income (loss) per share:

    Basic 346 346 346 346 346 346 346 346 346 346 346 346 Diluted 346 348 348 348 348 348 348 348 348 348 348 348

    Non-GAAP Adjustments

  • AGILENT TECHNOLOGIES, INCRECONCILIATION FROM GAAP TO NON-GAAP

    TWELVE MONTHS ENDED October 31, 2010(Unaudited)

    Varian Acceleration of Varian Acquisition Share-Based

    Restructuring Acquisition & Related Fair Compensation Taxand Other Related Asset Intangible Transformational Litigation Business Integration Value Expense Related to Sharing Adjustment for

    (In millions, except per share amounts) GAAP Costs - FY 2009 Plan Impairments Amortization Restructuring Settlement Divestitures Costs Adjustments Worforce Reduction Settlement Other Taxes Non-GAAP

    Orders Year 28% 5,744$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5,744$ 28% Year

    Net revenue Year 21% 5,444$ -$ -$ -$ -$ -$ -$ -$ 19$ -$ -$ -$ -$ 5,463$ 22% Year

    Costs and expenses: Cost of products and services Gross Margin 53.8% 2,514 (8) (5) (49) (15) - - (1) (32) - - (1) 2,403 56.0% Gross Margin Research and development As a % of Revenue 11.2% 612 (3) - (7) - - - - - - (1) 601 11.0% As a % of Revenue Selling, general and administrative As a % of Revenue 32.2% 1,752 (53) (14) (28) (17) - (13) (101) - (1) - (2) 1,523 27.9% As a % of Revenue Total costs and expenses 4,878 (64) (19) (77) (39) - (13) (102) (32) (1) - (4) - 4,527

    Income from operations Operating Margin 10.4% 566 64 19 77 39 - 13 102 51 1 - 4 - 936 17.1% Operating Margin

    Other income (expense), net 126 - - - - (8) (129) - - - (54) 1 - (64)

    Income before taxes 692 64 19 77 39 (8) (116) 102 51 1 (54) 5 - 872

    Provision for taxesTax rate (incl.

    Valuation Allowance) 1% 8 - - - - - - - - - - - 158 166 19%Tax rate (incl. Valuation Allowance)

    Net income Net Margin 12.6% 684$ 64$ 19$ 77$ 39$ (8)$ (116)$ 102$ 51$ 1$ (54)$ 5$ (158)$ 706$ 12.9% Net Margin

    Net income per share - Basic and Diluted:

    Basic 1.97$ 0.18$ 0.05$ 0.22$ 0.11$ (0.02)$ (0.33)$ 0.29$ 0.15$ -$ (0.16)$ 0.01$ (0.44)$ 2.03$ Diluted 1.94$ 0.18$ 0.05$ 0.22$ 0.11$ (0.02)$ (0.33)$ 0.29$ 0.14$ -$ (0.15)$ 0.01$ (0.44)$ 2.00$

    Weighted average shares used in computing net income per share:

    Basic 347 347 347 347 347 347 347 347 347 347 347 347 347 347 Diluted 353 353 353 353 353 353 353 353 353 353 353 353 353 353

    The preliminary reconciliation from GAAP to Non-GAAP net income is estimated based on our current information.

    Non-GAAP Adjustments

  • AGILENT TECHNOLOGIES, INCRECONCILIATION FROM GAAP TO NON-GAAP

    THREE MONTHS ENDED July 31, 2010(Unaudited)

    Varian Acceleration of Restructuring Varian Acquisition Share-Based

    and Other Acquisition & Related Fair CompensationRelated Costs Asset Intangible Transformational Litigation Business Integration Value Expense Related to Adjustment for

    (In millions, except per share amounts) GAAP FY 2009 Plan Impairments Amortization Restructuring Settlement Divestitures Costs Adjustments Worforce Reduction Other Taxes Non-GAAP

    Orders Change Year Over Year 39% 1,491$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,491$ 39% Change Year Over Year

    Net revenue Change Year Over Year 31% 1,384$ -$ -$ -$ -$ -$ -$ -$ 11$ -$ -$ -$ 1,395$ 32% Change Year Over Year

    Costs and expenses: Cost of products and services Gross Margin 52.4% 659 (1) - (16) (7) - - - (22) - - - 613 56.0% Gross Margin Research and development As a % of Revenue 11.1% 154 (1) - - (2) - - - - - (2) - 149 10.7% As a % of Revenue Selling, general and administrative As a % of Revenue 32.9% 456 (4) - (12) (5) - (6) (50) - - 3 - 382 27.4% As a % of Revenue Total costs and expenses 1,269 (6) - (28) (14) - (6) (50) (22) - 1 - 1,144

    Income from operations Operating Margin 8.3% 115 6 - 28 14 - 6 50 33 - (1) - 251 18.0% Operating Margin

    Other income (expense), net 112 - - - - (7) (129) - - - 5 - (19)

    Income before taxes 227 6 - 28 14 (7) (123) 50 33 - 4 - 232

    Provision for taxesTax rate (incl. Valuation

    Allowance) 10% 22 - - - - - - - - - - 19 41 18%Tax rate (incl. Valuation Allowance)

    Net income Net Margin 14.8% 205$ 6$ -$ 28$ 14$ (7)$ (123)$ 50$ 33$ -$ 4$ (19)$ 191$ 13.7% Net Margin

    Net income per share - Basic and Diluted:

    Basic 0.59$ 0.02$ -$ 0.08$ 0.04$ (0.02)$ (0.35)$ 0.14$ 0.10$ -$ 0.01$ (0.06)$ 0.55$ Diluted 0.58$ 0.02$ -$ 0.08$ 0.04$ (0.02)$ (0.35)$ 0.14$ 0.09$ -$ 0.01$ (0.05)$ 0.54$

    Weighted average shares used in computing net income per share:

    Basic 347 347 347 347 347 347 347 347 347 347 347 347 347 Diluted 352 352 352 352 352 352 352 352 352 352 352 352 352

    The preliminary reconciliation from GAAP to Non-GAAP net income is estimated based on our current information.

    Non-GAAP Adjustments

  • AGILENT TECHNOLOGIES, INCRECONCILIATION FROM GAAP TO NON-GAAP

    THREE MONTHS ENDED January 31, 2011(Unaudited)

    VarianVarian Acquisition

    Restructuring Acquisition & Related Fair and Other Intangible Transformation Integration Value Adjustment for

    (In millions, except per share amounts) GAAP Related Costs Amortization Initiatives Costs Adjustments Other Taxes Non-GAAP

    Orders Change Year Over Year 33% 1,627$ -$ -$ -$ -$ -$ -$ -$ 1,627$ 33% Change Year Over Year

    Net revenue Change Year Over Year 25% 1,519$ -$ -$ -$ -$ 5$ -$ -$ 1,524$ 26% Change Year Over Year

    Costs and expenses: Cost of products and services Gross Margin 53.7% 703 - (17) (4) (1) 1 1 - 683 55.2% Gross Margin Research and development As a % of Revenue 10.5% 159 - - (1) - - - - 158 10.4% As a % of Revenue Selling, general and administrative As a % of Revenue 29.4% 446 (2) (11) (6) (14) - - - 413 27.1% As a % of Revenue Total costs and expenses 1,308 (2) (28) (11) (15) 1 1 - 1,254

    Income from operations Operating Margin 13.9% 211 2 28 11 15 4 (1) - 270 17.7% Operating Margin

    Other income (expense), net (13) - - - - - 1 - (12)

    Income before taxes 198 2 28 11 15 4 - - 258

    Provision (benefit) for taxesTax rate (incl. Valuation

    Allowance) 3% 5 - - - - - - 41 46 18%Tax rate (incl. Valuation Allowance)

    Net income Net Margin 12.7% 193$ 2$ 28$ 11$ 15$ 4$ -$ (41)$ 212$ 13.9% Net Margin

    Net income per share - Basic and Diluted:

    Basic 0.56$ 0.01$ 0.08$ 0.03$ 0.04$ 0.01$ -$ (0.12)$ 0.61$ Diluted 0.54$ 0.01$ 0.08$ 0.03$ 0.04$ 0.01$ -$ (0.11)$ 0.60$

    Weighted average shares used in computing net income (loss) per share:

    Basic 347 347 347 347 347 347 347 347 347 Diluted 355 355 355 355 355 355 355 355 355

    The preliminary reconciliation from GAAP to Non-GAAP net income is estimated based on our current information.

    Non-GAAP Adjustments

  • AGILENT TECHNOLOGIES, INCRECONCILIATION FROM GAAP TO NON-GAAP

    THREE MONTHS ENDED April 30, 2011(Unaudited)PRELIMINARY

    VarianAcquisition

    Restructuring Acquisition & Related Fair and Other Asset Intangible Transformation Integration Value Adjustment for

    (In millions, except per share amounts) GAAP Related Costs Impairments Amortization Initiatives Costs Adjustments Other Taxes Non-GAAP

    Orders Change Year Over Year 27% 1,703$ -$ -$ -$ -$ -$ -$ -$ -$ 1,703$ 27% Change Year Over Year

    Net revenue Change Year Over Year 32% 1,677$ -$ -$ -$ -$ -$ 2$ -$ -$ 1,679$ 32% Change Year Over Year

    Costs and expenses: Cost of products and services Gross Margin 53.7% 777 - (3) (18) (4) (2) (1) - - 749 55.4% Gross Margin Research and development As a % of Revenue 9.8% 165 - - - - (1) - - - 164 9.8% As a % of Revenue Selling, general and administrative As a % of Revenue 28.0% 469 2 (2) (10) (7) (10) - - - 442 26.3% As a % of Revenue Total costs and expenses 1,411 2 (5) (28) (11) (13) (1) - - 1,355

    Income from operations Operating Margin 15.9% 266 (2) 5 28 11 13 3 - - 324 19.3% Operating Margin

    Other income (expense), net (6) - - - - 1 - (7) - (12)

    Income before taxes 260 (2) 5 28 11 14 3 (7) - 312

    Provision for taxesTax rate (incl. Valuation

    Allowance) 23% 60 - - - - - - - (9) 51 16%Tax rate (incl. Valuation Allowance)

    Net income Net Margin 11.9% 200$ (2)$ 5$ 28$ 11$ 14$ 3$ (7)$ 9$ 261$ 15.5% Net Margin

    Net income per share - Basic and Diluted:

    Basic 0.58$ (0.01)$ 0.01$ 0.08$ 0.03$ 0.04$ 0.01$ (0.02)$ 0.03$ 0.75$ Diluted 0.56$ (0.01)$ 0.01$ 0.08$ 0.03$ 0.04$ 0.01$ (0.02)$ 0.04$ 0.74$

    Weighted average shares used in computing net income (loss) per share:

    Basic 347 347 347 347 347 347 347 347 347 347 Diluted 355 355 355 355 355 355 355 355 355 355

    The preliminary reconciliation from GAAP to Non-GAAP net income is estimated based on our current information.

    Non-GAAP Adjustments

  • AGILENT TECHNOLOGIES, INCRECONCILIATION FROM GAAP TO NON-GAAP

    THREE MONTHS ENDED July 31, 2011(Unaudited)PRELIMINARY

    Restructuring Varianand Other Acquisition & Acquisition Agilent

    Related Costs- Asset Intangible Transformation Integration Fair Value Foundation Adjustment (In millions, except per share amounts) GAAP FY 2009 Plan Impairments Amortization Initiatives Costs Adjustments Donation Other for Taxes Non-GAAP

    Orders Change Year Over Year 13% 1,687$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,687$ 13% Change Year Over Year

    Net revenue Change Year Over Year 22% 1,691$ -$ -$ -$ -$ -$ 1$ -$ -$ -$ 1,692$ 21% Change Year Over Year

    Costs and expenses: Cost of products and services Gross Margin 52.7% 799 (1) (19) (6) (3) 1 771 54.4% Gross Margin Research and development As a % of Revenue 9.6% 162 162 9.6% As a % of Revenue Selling, general and administrative As a % of Revenue 26.6% 449 (2) (3) (10) (5) (8) (6) 2 417 24.6% As a % of Revenue Total costs and expenses 1,410 (2) (4) (29) (11) (11) - (6) 3 - 1,350

    Income from operations Operating Margin 16.6% 281 2 4 29 11 11 1 6 (3) - 342 20.2% Operating Margin

    Other income (expense), net - - - - - - (10) - (10)

    Income before taxes 281 2 4 29 11 11 1 6 (13) - 332

    Provision for taxesTax rate (incl. Valuation

    Allowance) -17% (49) - - - - - - - - 105 56 17%Tax rate (incl. Valuation Allowance)

    Net income Net Margin 19.5% 330$ 2$ 4$ 29$ 11$ 11$ 1$ 6$ (13)$ (105)$ 276$ 16.3% Net Margin

    Net income per share - Basic and Diluted:

    Basic 0.95$ 0.01$ 0.01$ 0.08$ 0.03$ 0.03$ -$ 0.02$ (0.04)$ (0.30)$ 0.79$ Diluted 0.92$ 0.01$ 0.01$ 0.08$ 0.03$ 0.03$ -$ 0.02$ (0.04)$ (0.29)$ 0.77$

    Weighted average shares used in computing net income (loss) per share:

    Basic 348 348 348 348 348 348 348 348 348 348 348 Diluted 357 357 357 357 357 357 357 357 357 357 357

    The preliminary reconciliation from GAAP to Non-GAAP net income is estimated based on our current information.

    NON-GAAP ADJUSTMENTS

  • LSG CAG EMG Agilent LSG CAG EMG Agilent LSG CAG EMGNumerator: Q1'11 Q1'11 Q1'11 Q1'11 Q1'10 Q1'10 Q1'10 Q1'10 Q4'10 Q4'10 Q4'10Non-GAAP income from operations 48$ 65$ 156$ 270$ 55$ 67$ 58$ 181$ 62$ 86$ 153$ Less: Taxes and Other (income)/expense 7 10 24 43 9 14 5 30 10 17 27

    Segment return 41 55 132 227 (a) 46 53 53 151 (a) 52 69 126

    Segment return annualized 164$ 220$ 528$ 908$ 184$ 212$ 212$ 604$ 208$ 276$ 504$

    Denominator:Segment assets (b) 1,707$ 1,716$ 2,092$ 5,516$ 1,162$ 529$ 2,243$ 3,934$ 1,564$ 1,635$ 2,245$ Less: Net current liabilities (c) 312 228 556 1,094 221 148 515 886 327 262 660 Invested capital 1,395$ 1,488$ 1,536$ 4,422$ 941$ 381$ 1,728$ 3,048$ 1,237$ 1,373$ 1,585$

    Average invested capital 1,316$ 1,430$ 1,560$ 4,307$ 877$ 354$ 1,617$ 2,844$ 1,220$ 1,363$ 1,600$

    ROIC 12% 15% 34% 21% 21% 60% 13% 21% 17% 20% 32%

    ROIC calculation:(annualized current quarter segment return)/(average of the two most recent quarter-end balances of Segment Invested Capital)

    (a) Agilent return is equal to non-GAAP net income of $212 million plus net interest expense after tax of $15 million for Q1'11, and $135 million plus net interest expense after tax of $16 million for Q1'10. Please see "Non-GAAP Net Income and Diluted EPS Reconciliations" for a reconciliation of non-GAAP net income to GAAP net income.

    (b) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross goodwill and other intangibles, deferred taxes and allocated corporate assets.(c) Includes accounts payable, employee compensation and benefits, deferred revenue, other accrued liabilities and allocated corporate liabilities.

    The preliminary reconciliation of ROIC is estimated based on our current information.

    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

    AGILENT TECHNOLOGIES, INC.RECONCILIATION OF ROIC

    (In millions)(Unaudited)

    PRELIMINARY

    Return on Invested Capital (ROIC) is a non-GAAP measure that management believes provides useful supplemental information for management and the investor. ROIC is a tool by which we track how much value we are creating for our shareholders. Management uses ROIC as a performance measure for our businesses, and our senior managers' compensation is linked to ROIC improvements as well as other performance criteria. We believe that ROIC provides our management with a means to analyze and improve their business, measuring segment profitability in relation to net asset investments. We acknowledge that ROIC may not be calculated the same way by every company. We compensate for this limitation by monitoring and providing to the reader a full GAAP income statement and balance sheet.

  • LSG CAG EMG Agilent LSG CAG EMG Agilent LSG CAG EMG AgilentNumerator: Q2'11 Q2'11 Q2'11 Q2'11 Q2'10 Q2'10 Q2'10 Q2'10 Q1'11 Q1'11 Q1'11 Q1'11Non-GAAP income from operations 61$ 72$ 191$ 324$ 48$ 57$ 100$ 201$ 48$ 65$ 156$ 270$ Less: Taxes and Other (income)/expense 8 11 30 49 8 12 13 34 7 10 24 43

    Segment return 53 61 161 275 (a) 40 45 87 167 (a) 41 55 132 227

    Segment return annualized 212$ 244$ 644$ 1,100$ 160$ 180$ 348$ 669$ 164$ 220$ 528$ 908$

    Denominator:Segment assets (b) 1,852$ 1,756$ 2,171$ 5,780$ 1,107$ 527$ 2,284$ 3,917$ 1,707$ 1,716$ 2,092$ 5,516$ Less: Net current liabilities (c) 375 271 631 1,277 245 165 609 1,019 312 228 556 1,094 Invested capital 1,477$ 1,485$ 1,540$ 4,503$ 862$ 362$ 1,675$ 2,898$ 1,395$ 1,488$ 1,536$ 4,422$

    Average invested capital 1,436$ 1,486$ 1,538$ 4,463$ 902$ 372$ 1,702$ 2,973$ 1,316$ 1,430$ 1,560$ 4,307$

    ROIC 15% 16% 42% 25% 18% 48% 20% 23% 12% 15% 34% 21%

    ROIC calculation:(annualized current quarter segment return)/(average of the two most recent quarter-end balances of Segment Invested Capital)

    (a) Agilent return is equal to non-GAAP net income of $261 million plus net interest expense after tax of $14 million for Q2'11, and $152 million plus net interest expense after tax of $15 million for Q2'10. Please see "Non-GAAP Net Income and Diluted EPS Reconciliations" for a reconciliation of non-GAAP net income to GAAP net income. (b) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross goodwill and other intangibles, deferred taxes and allocated corporate assets.(c) Includes accounts payable, employee compensation and benefits, deferred revenue, other accrued liabilities and allocated corporate liabilities.

    The preliminary reconciliation of ROIC is estimated based on our current information.

    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

    AGILENT TECHNOLOGIES, INC.RECONCILIATION OF ROIC

    (In millions)(Unaudited)

    PRELIMINARY

    Return on Invested Capital (ROIC) is a non-GAAP measure that management believes provides useful supplemental information for management and the investor. ROIC is a tool by which we track how much value we are creating for our shareholders. Management uses ROIC as a performance measure for our businesses, and our senior managers' compensation is linked to ROIC improvements as well as other performance criteria. We believe that ROIC provides our management with a means to analyze and improve their business, measuring segment profitability in relation to net asset investments. We acknowledge that ROIC may not be calculated the same way by every company. We compensate for this limitation by monitoring and providing to the reader a full GAAP income statement and balance sheet.

  • LSG CAG EMG Agilent LSG CAG EMG Agilent LSG CAG EMG AgilentNumerator: Q3'11 Q3'11 Q3'11 Q3'11 Q3'10 Q3'10 Q3'10 Q3'10 Q2'11 Q2'11 Q2'11 Q2'11Non-GAAP income from operations 60$ 79$ 204$ 342$ 56$ 69$ 127$ 251$ 61$ 72$ 191$ 324$ Less: Taxes and Other (income)/expense 9 12 32 52 11 14 24 43 8 11 30 49

    Segment return 51 67 172 290 (a) 45 55 103 208 (a) 53 61 161 275

    Segment return annualized 204$ 268$ 688$ 1,158$ 181$ 220$ 412$ 832$ 212$ 244$ 644$ 1,100$

    Denominator:Segment assets (b) 1,855$ 1,748$ 2,167$ 5,772$ 1,493$ 1,592$ 2,191$ 5,276$ 1,852$ 1,756$ 2,171$ 5,780$ Less: Net current liabilities (c) 348 248 593 1,188 290 239 576 1,104 375 271 631 1,277 Invested capital 1,507$ 1,500$ 1,574$ 4,584$ 1,203$ 1,353$ 1,615$ 4,172$ 1,477$ 1,485$ 1,540$ 4,503$

    Average invested capital 1,492$ 1,492$ 1,557$ 4,543$ 1,244$ 1,306$ 1,645$ 4,195$ 1,436$ 1,486$ 1,538$ 4,463$

    ROIC 14% 18% 44% 25% 15% 17% 25% 20% 15% 16% 42% 25%

    ROIC calculation:(annualized current quarter segment return)/(average of the two most recent quarter-end balances of Segment Invested Capital)

    (a) Agilent return is equal to non-GAAP net income of $276 million plus net interest expense after tax of $14 million for Q3'11, $191 million plus net interest expense after tax of $17 million for Q3'10 and $261million plus net interest expense after tax of $14 million for Q2'11. Please see "Non-GAAP Net Income and Diluted EPS Reconciliations" for a reconciliation of non-GAAP net income to GAAP n (b) Segment assets consist of inventory, accounts receivable, property plant and equipment, gross goodwill and other intangibles, deferred taxes and allocated corporate assets.

    (c) Includes accounts payable, employee compensation and benefits, deferred revenue, other accrued liabilities and allocated corporate liabilities.

    The preliminary reconciliation of ROIC is estimated based on our current information.

    Readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, GAAP financial measures. They should be read in conjunction with the GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

    AGILENT TECHNOLOGIES, INC.RECONCILIATION OF ROIC

    (In millions)(Unaudited)

    PRELIMINARY

    Return on Invested Capital (ROIC) is a non-GAAP measure that management believes provides useful supplemental information for management and the investor. ROIC is a tool by which we track how much value we are creating for our shareholders. Management uses ROIC as a performance measure for our businesses, and our senior managers' compensation is linked to ROIC improvements as well as other performance criteria. We believe that ROIC provides our management with a means to analyze and improve their business, measuring segment profitability in relation to net asset investments. We acknowledge that ROIC may not be calculated the same way by every company. We compensate for this limitation by monitoring and providing to the reader a full GAAP income statement and balance sheet.

  • PercentFY'10 FY'09 Inc/(Dec)

    GAAP Revenue 5,444$ 4,481$ Varian acquisition fair value adjustments 19 - Non-GAAP Revenue 5,463$ 4,481$

    Less revenue from acquisition and divestitures included in segment results (423) (240) Non-GAAP Revenue, adjusted 5,040$ 4,241$ 19%

    Management believes that this measure provides useful information to investors by reflecting an additional way of viewing aspects of Agilent's operations that, when reconciled to the corresponding GAAP measures, help our investors to better identify underlying growth trends in our business and facilitate easier comparisons of our revenue performance with prior and future periods and to our peers. We excluded the effect of the Varian acquisition and recent divestitures because the nature, size and number of these can vary dramatically from period to period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.

    AGILENT TECHNOLOGIES, INC.REVENUE RECONCILIATION

    (In millions)(Unaudited)

    PRELIMINARY

    Revenues, excluding the impact of the Varian acquisition and recent divestitures, are a non-GAAP measure and are defined to exclude the fair value adjustment to acquisition related deferred revenue balances for the Varian acquisition and exclude the impacts of the Varian acquisition and the divestitures of our Network Systems and Hycor businesses.

  • PercentQ1'11 Q1'10 Inc/(Dec)

    GAAP Revenue 1,519$ 1,213$ 25% Varian acquisition fair value adjustments 5 - Non-GAAP Revenue 1,524$ 1,213$ 26%

    Less revenue from acquisition and divestitures included in segment results (134) (47) Non-GAAP Revenue, adjusted 1,390$ 1,166$ 19%

    Management believes that this measure provides useful information to investors by reflecting an additional way of viewing aspects of Agilent's operations that, when reconciled to the corresponding GAAP measures, help our investors to better identify underlying growth trends in our business and facilitate easier comparisons of our revenue performance with prior and future periods and to our peers. We excluded the effect of the Varian acquisition and recent divestitures because the nature, size and number of these can vary dramatically from period to period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.

    AGILENT TECHNOLOGIES, INC.REVENUE RECONCILIATION

    (In millions)(Unaudited)

    PRELIMINARY

    Revenues, excluding the impact of the Varian acquisition and recent divestitures, are a non-GAAP measure and are defined to exclude the fair value adjustment to acquisition related deferred revenue balances for the Varian acquisition and exclude the impacts of the Varian acquisition and the divestitures of our Network Systems and Hycor businesses.

  • PercentQ2'11 Q2'10 Inc/(Dec)

    GAAP Revenue 1,677$ 1,271$ Varian acquisition fair value adjustments 2 - Non-GAAP Revenue 1,679$ 1,271$

    included in segment results (191) (41) Organic Non-GAAP Revenue 1,488$ 1,230$ 21%

    PercentOrganic Non-GAAP Revenue by Region Q2'11 Q2'10 Inc/(Dec)Americas 474$ 421$ 12%

    Europe 358 294 22% Asia Pacific 656 515 27% Organic Non-GAAP Revenue 1,488$ 1,230$ 21%

    The preliminary reconciliation of GAAP to Organic Non-GAAP revenue is based on our current information.

    AGILENT TECHNOLOGIES, INC.RECONCILIATION OF ORGANIC REVENUE

    (IN MILLIONS)PRELIMINARY

    Non-GAAP revenue is defined as revenue excluding the fair value adjustment of the deferred revenue balances related to the Varian acquisition. Organic Non-GAAP revenue is defined as Non- GAAP revenue excluding the impact of acquisitions and divestitures that have closed within the past year.

    Management believes that these measures provide useful information to investors by reflecting an additional way of viewing aspects of Agilent's operations that, when reconciled to the corresponding GAAP measures, help our investors to better identify underlying growth trends in our business and facilitate easier comparisons of our revenue performance with prior and future periods and to our peers. We excluded the effect of the Varian and other recent acquisitions and divestitures because the nature, size and number of these can vary dramatically from period to period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.

  • PercentQ3'11 Q3'10 Inc/(Dec)

    GAAP Revenue 1,691$ 1,384$ 22% Varian acquisition fair value adjustments 1 11 Non-GAAP Revenue 1,692$ 1,395$ 21%

    Less revenue from acquisition and divestitures included in segment results (30) - Organic Non-GAAP Revenue 1,662$ 1,395$ 19%

    PercentOrganic Non-GAAP Revenue by Region Q3'11 Q3'10 Inc/(Dec)Americas 608$ 515$ 18%

    Europe 391 358 9% Asia Pacific 663 522 27% Organic Non-GAAP Revenue 1,662$ 1,395$ 19%

    The preliminary reconciliation of GAAP to Organic Non-GAAP revenue is based on our current information.

    AGILENT TECHNOLOGIES, INC.RECONCILIATION OF ORGANIC REVENUE

    (IN MILLIONS)PRELIMINARY

    Non-GAAP revenue is defined as revenue excluding the fair value adjustment of the deferred revenue balances related to the Varian acquisition. Organic Non-GAAP revenue is defined as Non- GAAP revenue excluding the impact of acquisitions that have closed within the past year. Due to the close date of the Varian acquisition which occurred on May 15, 2010, we have also excluded the first two weeks of Q3 2011 revenue related to Varian in our revenue adjustment from acquisitions.

    Management believes that these measures provide useful information to investors by reflecting an additional way of viewing aspects of Agilent's operations that, when reconciled to the corresponding GAAP measures, help our investors to better identify underlying growth trends in our business and facilitate easier comparisons of our revenue performance with prior and future periods and to our peers. We excluded the effect of the Varian and other recent acquisitions and divestitures because the nature, size and number of these can vary dramatically from period to period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.

  • Q3'11 Q3'10 $ Change Incremental

    AGILENT GAAPRevenue 1,691$ 1,384$ 307$

    Income from Operations 281$ 115$ 166$ 54%

    AGILENT Non-GAAPRevenue 1,692$ 1,395$ 297$

    Income from Operations 342$ 251$ 91$ 31%

    EMG Revenue 856$ 692$ 164$

    Income from Operations 204$ 127$ 77$ 47%

    The preliminary reconciliation of incremental change is estimated based on our current information.

    AGILENT TECHNOLOGIES, INC.RECONCILIATION OF INCREMENTAL REVENUE DOLLAR TO BOTTOM LINE

    (IN MILLIONS)PRELIMINARY

    Year over Year

  • Q3'11 Q3'10

    Cash and cash equivalents $ 3,101 $ 2,317 Restricted cash and cash equivalents — 1,551 Short-term debt — (1,501)Senior notes, par value (2,100) (2,100)

    Total Net Cash 1,001$ 267$

    Management believes this metric provides useful information to investors about the Company's overall liquidity and financial position. Net Cash is a measure at a point in time and does not reflect the Company's future financial prospects or liquidity.

    AGILENT TECHNOLOGIES, INC.NET CASH(In millions)(Unaudited)

    PRELIMINARY

    The preliminary reconciliation of net cash is estimated based on our current information.

    Agilent_UBS Life Science 2011UBS Life Science 2011_FinancialsSegment Details_Q311Institutional Investors August 2011 Reconciliations v1Institutional Investors June 2011 Reconciliations.pdfInstitutional Investors June 2011 Reconciliations.pdfInstitutional Investors June 2011 Reconciliations2

    AgilentQ211_Net CashNet Cash