ADT 2006 Annual Report Download - page 5

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CHAIRMAN’S LETTER
designs, manufactures and markets products for customers
in industries ranging from automotive, appliances and aero-
space and defense, to telecom munications, computers and
consumer electronics. Tyco Electronics employs over 99,000
people worldwide – including 8,000 engineers – and offers
global manufacturing, sales and customer service capabilities.
Tyco Electronics has many strengths which position the
company well for the future, including its global leadership
in the passive components sector, strong customer rel ation-
ships, process and product technology leadership, a diverse
product mix and customer base, broad and balanced geo-
graphic sales mix and an experienced management team.
Upon separation, Tyco Electronics will be better positioned
to pursue its own unique strategy for growth, including
leveraging its size and scope to further strengthen its market
leadership and market share; pursuing new oppor tunities
in attractive and emerging markets; supplementing its
current organic growth efforts with strategic acquisitions;
and accelerating its new product development and research
investments at a pace that is appropriate for its industries
and its investors. Tyco Electronics will be even more agile
– and better able to react quickly to changing industry
dynamics – as a stand-alone company.
Tyco Healthcare is a global leader in developing, man-
ufacturing and distributing medical devices and supplies,
diagnostic imaging agents and pharmaceuticals for use in
clinical and home settings. Tyco Healthcare’s products are
sold under some of the most respected brand names in the
healthcare fi eld, including United States Surgical, AutoSuture,
Valleylab, Mallinckrodt, Nellcor, Puritan Bennett and
Kendall. With 2006 revenue of $9.6 billion, the company
has more than 43,000 employees around the world.
Going forward, Tyco Healthcare is well-positioned to
capitalize on the attractive dynamics of the healthcare
industry and to realize more robust growth. The upcom-
ing separation will create an independent leading global
healthcare company, which we expect to benefi t from a
focused and independent healthcare culture to help attract
strategic partners, as well as increasing the company’s
access to emerging healthcare-related technologies. With
market-leading positions in many markets in which the
company competes, Tyco Healthcare will conduct its
business through segments offering medical devices,
imaging solutions, pharmaceutical products, medical
supplies and retail products. Whether it is competing
for talent or business, investing in its future or pursuing
a more focused industry-specifi c growth strategy, Tyco
Healthcare will have the fl exibility and fi nancial resources
to thrive as an independent public entity.
Tyco International, Tyco Electronics and Tyco Health-
care. These are great companies, each with a bright future.
We thank you for your continued support as we prepare
them to provide the sustained, long-term growth and
value we believe they can deliver going forward.
EDWARD D. BREEN
Chairman and Chief Executive Officer
Tyco International Ltd.
R&D AND CAPITAL EXPENDITURES
(In US$ Billions)
ADT Dealer Account Purchases
R&D
Capital Expenditures
$254
$778
$1,127
2004
$328
$833
$1,354
2005
$373
$914
$1,569
2006 2004 2005 2006
CAPITALIZATION
(In US$ Billions)
Total Shareholders’ Equity
Total Debt
$30.4 $32.5 $35.4
$16.5
$12.5 $10.2