ADT 2003 Annual Report Download - page 13

Tyco Fire and Security is the leader in fire protection and electronic
security solutions for residential, business and government cus-
tomers around the world. Our brands are synonymous with
safety, security and peace of mind.
•• The majority of Fortune 500 companies, as well as approxi-
mately 80% of the world’s top retailers, depend on ADT to
protect their most valuable assets.
•• ADT safeguards nearly six million homes worldwide.
•• Three-quarters of the world’s largest petrochemical refineries
are protected by Tyco fire protection and safety systems.
•• More than 700,000 firefighters trust their lives in the line of
duty to SCOTT breathing systems.
•• Fire detection and suppression systems provided by Tyco
safeguard the majority of vessels at sea.
•• With more than 1.3 million customers, SimplexGrinnell is
the leading provider of fire detection and alarm systems in
North America.
Operationally, 2003 was a challenging year for Tyco Fire and
Security, and we’ve taken a number of aggressive actions to posi-
tion this business for long-termsustainablegrowth and profitability.
AMONG OUR 2003 HIGHLIGHTS
•• Achieved strong cash flow, further demonstrating the overall
strength and resiliency of the segment’s core businesses.
•• Refocused our business strategy around core fire and
security businesses, enabling us to begin divesting non-
strategic businesses.
•• Consolidated Tyco Fire and Security’s European operations
from three units into a single, fully integrated organization,
which will result in lower operating costs, greater operational
synergies and better customer service.
•• Organized Tyco Safety Products to unify a worldwide team of
R&D engineers and production facilities into a single global
operation to deliver greater efficiency, reduce cost, and
improveproduct quality and competitiveness.
•• Revamped the global ADT business model to accelerate its
impact as a growth engine and to deliver greater return on
investment and value to customers.
•• Implemented senior management changes across a number
of operations to ensure that we have a strong leadership team
focused on growth, profitability and operational excellence.
Looking Ahead
With heightened global concern over security issues, new
building codes for fire protection and other regulatory changes,
the market for fire and security products and services worldwide
is poised to grow into the future. The industry trend toward com-
plete safety solutions will require innovation, strong customer
service and global support. In this environment, Tyco Fire and
Security is uniquely positioned to meet this burgeoning demand.
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Protecting the World —
One Customer at a Time
Tyco’s ADT introduced the SAFEWATCH EZ SYSTEM,
the first of a new generation of products with simplic-
ity at its core. A homeowner can arm and disarm the
Safewatch EZ system simply by turning a deadbolt
key — no codes are required.
In many ways, Tyco Fire and Security was right there alongside the 13,000
firefighters who fought the 2003 SOUTHERN CALIFORNIA WILDFIRES, having
produced many of the fire suppression products used to fight the blazes. These
include Ansul fire extinguishers and firefighting foam, special water pumps
designed for forestry applications and Niedner fire hoses that are made to with-
stand the high water pressure needed to combat intense wildfires.
SENSORMATIC ANTITHEFT SYSTEMS continue to lead
the industry in protecting stores from theft. A part of
the retail landscape, Sensormatic systems are used
by leading stores around the world.
With the introduction of the SCOTT AIR-PAK NXG2, a
new breathing system for firefighters and other
emergency responders, Tyco Fire and Security
continues its history of developing technically
innovative products that sustain its position as the
North American market leader.
SEGMENT HIGHLIGHTS