Tektronix Company Overview Markets, Strategy, and Results

Tektronix Company Overview Markets, Strategy, and Results

Safe Harbor Statement Comments during today s presentations may include forward looking statements. There are many risk factors that affect the company's business and its operational results that may cause the actual results in future periods to differ materially from those currently expected or desired. Please look at our company filings with the Securities and Exchange Commission, including the most recent forms 10Q and 10K, for discussion of these and other factors. 2

Agenda Test, measurement & monitoring market overview Tektronix overview Company strategy Key financial data 3

Key Messages Focused on profitable growth in the new digital world Targeting markets with long term growth opportunities Proven strategy to enable faster-than-market growth Leveraged business model drives faster growth in earnings and cash flow Committed to improve value for our customers, employees and shareholders 4

Market Landscape A leading player in Test Measurement & Monitoring 5 Test Measurement & Monitoring Technology based tools that enable the design, manufacturing, service, and management of other technologies and products Approximately $10B market Industry has many product categories Tektronix Position Tektronix is the #2 player Tektronix overall market share ~11% Tektronix has a #1 or #2 position in 6 larger categories Addressable market share ~35% Agilent General Purpose Tektronix Fluke R&S General Purpose Spectrum Analyzers Signal Sources Logic Analyzers Oscilloscopes ~$10B Market Video Communications Competitive Position National Instruments Anritsu JDSU Spirent Keithley Aeroflex Ixia LeCroy $3.3B Addressable Market Video Many types Card Modular Others Communications Network management Network diagnostics 35% 45% 28% Addressable Market Share: 35%

Target Markets Focused on larger segments for future growth Targeted Industries Computer Communications - Operators - Equipment manufacturers Sales by Industry Education Government Consumer Semiconductor Numerous Tektronix Sales 50% 30% 20% Targeted Applications Research & development Sales by Application Monitoring & maintenance Numerous Tektronix Sales 55% 25% 20% Sales by Geography Americas Sales by Geography Europe Asia/Pacific Japan Tektronix Sales 38% 27% 20% 15% 6

Business Drivers Focused on key industry and technology trends Market Trend Faster, easier connections Wireless everywhere Smarter devices Video explosion Next billion wireless subscribers IP everywhere Enabled by New Digital World High-speed serial Digital RF Embedded digital Digital video Multi-service fixed and wireless networks Tektronix Approach Driving need for New class of high performance test tools New generation of digital video test tools New network diagnostics and performance monitoring solutions Specialize in NEXT generation computer & network technologies Deliver smarter more flexible instruments Leverage our video expertise Add value through sales, service, installation & support Help customers become more productive 7

Tektronix Approach Building on Two Platforms General Purpose and Video Test Spectrum Oscilloscopes Logic Analyzers Signal Sources Video Test Analyzers Communications Test & Monitoring Network Diagnostics Network Management 8

Tektronix Approach Building on Two Platforms 9

Growth Strategy 10

Focused for Faster-than-market Growth Strategy Winning a Category at a Time Be a market leader in the categories in which we choose to participate by: Growing market share in established categories Delivering pipeline of leadership products in Instruments Business Winning customers in the technology transition to modern networks in the Communications Business Leveraging our core strengths into adjacent categories Expanding our addressable market Being disciplined in our execution 11

Execution of Strategy Unprecedented Portfolio of Leadership Products 12

Execution of Strategy Winning in next generations networks Communications Business Winning a customer at a time Winning the majority of targeted tier one next generation network footprints Tektronix ranked first in the wireless market in 2006, with a market share of 39.6 percent....tektronix has managed to extend its lead in the market each year since 2004. Frost & Sullivan 13

Execution of Strategy Expanding our addressable market Leveraging our strengths into adjacent Product Categories Real-time spectrum analyzers Signal sources >30% CAGR In new product categories over the last four years Sales of Spectrum Analyzers & Sig nal Sources 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 Expanding the Addressable Market Focus on fast-growing regions like China, India, and Eastern Europe Develop solutions for key applications 14

Financial Results 15

Financial Results History of profitable growth Four year orders growth of 10% Four year revenue growth of 8.7% 1 Earnings per share at a record level in FY07 $M 1,200 1,000 800 600 400 200 Earnings Per Share $2.00 $1.50 $1.00 $0.50 Generated excellent operating cash flow each year FY03 FY04 Orders FY05 Sales FY06 FY07 EPS (Non-GAAP) 1 Excluding R&S distribution, 4-year revenue CAGR is 11.5% 16

Financial Results Looking forward, positioned for continued growth Strong portfolio of products in instruments Leveraging footprint wins in communications Flexibility to add acquisitions strategically Revenue 1,200 1,000 800 600 400 200 Potential Acquisitions add to growth Targeting high single-digit sales growth Focused for Faster-than-market Growth Strategy Winning a Category at a Time Be a market leader in the categories in which we choose to participate by: Growing market share Delivering pipeline of leadership products in Instruments Business Winning customers in the technology transition to modern networks in the Communications Business Leveraging our core strengths into adjacent categories Expanding our addressable market Being disciplined in our execution FY03 FY04 FY05 FY06 FY07 Sales from Cont Ops 13 May 2007 17

Financial Results Committed to faster earnings growth Leveraged operating model will enable earnings to grow faster than sales Targeting >$.30 operating income for each incremental $1.00 in sales Resulting in EPS growth of midhigh teens on high single digit sales growth Down Cycle _ Market Cycle 10% 12% 14% 16% 18% Operating Margin 59% 63% Gross Margin 17% 16% R&D Expense Up Cycle + Largely completed incremental investment for new products and next generation network installations 32% 29% SG&A Expense >30% Leverage 18

Financial Results Generating continued strong cash flow Average free cash flow per year over the past five years of $84M FY07 FCF of $123M Ending cash balance of $358M Buyback Spend ($M) 250 Share Count (M) 100 Recapitalization enables accelerated repurchase of stock Expect to repurchase $300M within 1 year 200 150 95 90 Priorities for excess free cash : Opportunistic share buyback Strategic acquisitions Maintain modest dividend ($0.24/year, ~20% of free cash flow) 100-50 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 Buyback Spend Diluted Share Count 85 80 75 19

Looking Forward Focused on profitable growth in the new digital world What to expect next Continued emphasis on execution of our business strategy Institutionalization of continuous productivity improvements Alignment of cost structure to deliver leverage on sales growth Increasingly effective use of our balance sheet All with expectations to improve earnings 20

Key Messages Focused on profitable growth in the new digital world Targeting markets with long term growth opportunities Proven strategy to enable faster-thanmarket growth Business model drives leverage in earnings and cash flow Committed to improve value for our customers, employees and shareholders 21