ADT 2003 Annual Report Download - page 10

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progress in our mission not only to return Tyco to profitability
but also to establish Tyco as a world-class operating company.
The Board of Directors and I believe that transparency,
integrity and honesty must be the foundation upon which
everything is built at Tyco. Last year, we took several fundamental
steps to move the company toward best-in-class status in these
critical areas.
First, we now have an entirely new Board of Directors, a
group of respected, independent, and inquisitive leaders whose
mandate is to aggressively and constantly challenge the entire
leadership team as we move this company forward.
We also have recruited a new corporate leadership team;
men and women of outstanding reputation and expertise, all
chosen because of their success and leadership in large, globally
complex and diverse organizations. Our ability to attract talent
of this caliber is a clear indicator of Tyco’s viability and promise.
This has been one of the most thorough corporate leadership
makeovers ever undertaken, and I am very proud of the talented
people we have recruited over the past 18 months.
To r estore our financial stability, we solved our near-term
liquidity crisis by raising new capital and renegotiating credit
agreements. Relying on Tyco’s strong cash flow, we also reduced
our overall debt by $3.3 billion.
AMONG OUR OTHER 2003 HIGHLIGHTS, WE:
•• Adopted best-in-class governance standards, including a strict
new code of conduct, and initiated a comprehensive ethics
education program for our employees worldwide.
•• Implemented new performance-based compensation and
benefits programs with strong management and Board
oversight.
•• Launched a rigorous new internal operating and strategic
review process, which will fundamentally improve both our
long-term decision making and the quarter-to-quarter
predictability of the company’s performance.
•• Initiated a broad-based divestiture and business restructuring
program to sharpen the focus on core businesses, and to
improve profitability across the company.
08
2004 Focus
With our attention now squarely on 2004, the immediate
challenge for our team is to continue to improve our operating
rigor, further strengthen our balance sheet, solidify our gov-
ernance standards, generate more cash, and begin to establish
our reputation as a world-class operating company. Most
importantly, we need to deliver on our 2004 operating and
financial commitments.
2003 TYCO REVENUE BY SEGMENT
($in billions)
ELECTRONICS
$10.3
PLASTICS AND ADHESIVES
$1.9
HEALTHCARE
$8.6
ENGINEERED PRODUCTS
AND SERVICES
$4.7
FIRE AND SECURITY
$11.3
REVENUES
($in billions)
2001 $34.0
2002 $35.6
2003 $36.8