ADT 2008 Annual Report Download - page 105

spin-offs of Covidien and Tyco Electronics, formerly our Healthcare and Electronics businesses,
respectively, into separate, publicly traded companies (the ‘‘Separation’’) in the form of a distribution
to Tyco shareholders. As a result of the Separation, the operations of Tyco’s former Healthcare and
Electronics businesses have been classified as discontinued operations in all periods prior to the
Separation.
Tyco’s registered and principal office is located at Second Floor, 90 Pitts Bay Road, Pembroke
HM 08, Bermuda, and its telephone number at that address is [phone]. Its management office in
the United States is located at 9 Roszel Road, Princeton, New Jersey 08540.
Segments
See Note 21 to the Consolidated Financial Statements for certain segment and geographic financial
data relating to our business.
ADT Worldwide
Our ADT Worldwide segment designs, sells, installs, services and monitors electronic security
systems for residential, commercial, industrial and governmental customers around the world. We are
one of the world’s largest providers of electronic security systems and services. We have a significant
market presence in North and South America, Europe and the Asia-Pacific region. With 2008 net
revenue of $8.0 billion, our ADT Worldwide segment comprises 40% of our consolidated net revenue.
In 2007 and 2006, net revenue totaled $7.6 billion or 42% of our consolidated net revenue and
$7.2 billion or 42% of our consolidated net revenue, respectively.
Strategy
We intend to strengthen our commercial customer base by focusing our sales and marketing efforts
on key vertical markets such as retailer, banking, government, education, oil and gas and
transportation. By adopting a vertical market-focused approach, we believe we can effectively target
those market segments where ADT Worldwide can differentiate its core capabilities and deliver security
solutions customized to specific customer needs. Our goal is to increase the number of commercial and
residential customers by more effectively generating leads and by enhancing productivity in our sales
force through improved incentives and performance management systems. We also plan to strengthen
our customer base by acquiring additional accounts from our network of authorized dealers. Further,
we continue to focus on our customer account attrition rates through enhanced retention and re-sale
programs, albeit at a more moderate rate than in the past few years.
ADT Worldwide operates in many regions including North America, Europe, Middle East and
Africa (‘‘EMEA’’), Asia, Australia/New Zealand and Latin America. Operating performance can vary
region to region for a number of reasons, including the mix of revenues between residential and
commercial customers as well as the mix of higher-margin contractual revenue vs. lower-margin product
installation revenue. We have identified certain strategic actions that we are executing to improve our
operating performance in certain regions that are currently underperforming. These actions include
implementing common ERP and CRM platforms, expanding training programs to improve skill levels,
consolidating administrative functions and transferring best practices across regions and individual
markets.
We plan to continue pursuing opportunities in attractive emerging markets where we believe we
can leverage the skills, technologies and brand equity that we have developed in the markets we
currently serve. We also intend to continue partnering with our Safety Products segment to reduce
product costs, develop new technologies and explore potential partnerships and acquisition
opportunities that will allow ADT Worldwide to strengthen its service offerings, enhance its market
positions and expand into higher-growth, adjacent markets.
2 2008 Financials