ADT 2006 Annual Report Download - page 67

worldwide network of sales offices, operating globally under various trade names including
SIMPLEXGRINNELL, WORMALD, DONG BANG, ANSUL, SCOTT, SABRE and TYCO.
We install fire protection systems in both new and existing buildings. Our fire protection systems
are purchased by owners, construction engineers and mechanical or general contractors. In recent years,
the retrofitting of existing buildings has grown as a result of legislation mandating the installation of
fire protection systems, especially in hotels, healthcare facilities, educational establishments and other
buildings accessible to the general public. We continue to focus on system maintenance and inspection,
which have become more significant parts of our business.
The majority of the fire suppression systems installed by Tyco are water-based. However, we are
also the world’s leading provider of custom designed special hazard fire protection systems which
incorporate specialized extinguishing agents such as foams, dry chemicals and gases, in addition to spill
control products designed to absorb, neutralize and solidify spills of hazardous materials. These systems
are often especially suited to fire protection in certain manufacturing, power generation, petrochemical,
offshore oil exploration, transportation, data processing, telecommunications, commercial food
preparation, mining and marine applications.
We manufacture and distribute SCOTT and SABRE breathing systems for use by firefighters and
other first responders and for industrial applications. Military forces from various countries use our
breathing apparatus and more than one million U.S. firefighters rely on our SCOTT AIR-PAK brand of
self-contained breathing apparatus. SCOTT and SABRE products are sold globally through a network
of distributors and are subject to government funding availability. SCOTT is considered the world
leader in respiratory protection innovation for first responders.
In Asia and Europe, Tyco designs, installs and maintains integrated systems which monitor and
manage urban traffic control systems, as well as lighting, ventilation, fire detection, surveillance and
traffic control for bridges, tunnels, railways and mines.
A significant portion of the mechanical components (and, in North America, a high proportion of
the pipe) used in our fire protection systems are purchased from Tyco Engineered Products and
Services. We use computer-aided-design technology that reduces the time required to design systems
for specific applications and coordinates the fabrication and delivery of system components.
Competition in the fire protection contracting business varies by region. In North America, Tyco
competes with thousands of smaller contractors on a regional or local basis for the installation of fire
protection, alarm and detection systems. In Europe, Tyco competes with many regional or local
contractors on a country-by-country basis. In Australia, New Zealand and Asia, we compete with a few
large fire protection contractors, as well as with many smaller regional or local companies. Tyco
competes for fire protection systems contracts primarily on the basis of price, service and quality.
III. Healthcare
Tyco is a global leader in the medical products industry. With 2006, 2005 and 2004 net revenue of
$9.6 billion, $9.5 billion and $9.1 billion, respectively, our Healthcare businesses comprised 24% of our
consolidated net revenue in each year. The group’s products include:
• a wide variety of medical devices and supplies, including laparoscopic instruments, sutures and
surgical staplers, electro-surgical instruments, pulse oximeters, ventilators, needles and syringes,
wound care products, incontinent care products, and products for vascular therapy;
• home use portable liquid oxygen systems, sleep disorder diagnostic systems and sleep therapy
systems;
• imaging reagents, delivery systems, and nuclear diagnostic agents;
2006 Financials 5