ADT 2008 Annual Report Download - page 108

users as well as engineering, procurement and construction companies, contractors, OEMs and
distributors. Flow Control operates an extensive network of sales, service and distribution centers to
serve our wide range of global customers. Flow Control is a global company with 39% of sales in
Europe and the Middle East, 24% from the Americas, 23% from the Pacific region and 14% from
Asia.
Competition
The flow control industry is highly fragmented. We compete against a number of international,
national and local manufacturers of industrial valves as well as against specialized manufacturers on the
basis of product capability, product quality, breadth of product line, delivery and price. Our major
competitors vary by region.
Fire Protection Services
Our Fire Protection Services segment designs, sells, installs and services fire detection and fire
suppression systems. We believe we are one of the largest providers of these systems and services, with
2008 net revenue of $3.6 billion. Our Fire Protection Services segment comprises 18% of our
consolidated net revenue. In 2007 and 2006, net revenue totaled $3.4 billion or 18% of our
consolidated net revenue and $3.2 billion or 19% of our consolidated net revenue, respectively.
Strategy
Our goal is to grow our customer base and deepen our market penetration by focusing our sales
and marketing efforts across global accounts and along key vertical markets, such as healthcare,
government, education, lodging, manufacturing and commercial/industrial. By combining this vertical
market approach with increased focus on the delivery and responsiveness of our service offerings, we
believe we can differentiate our offerings to better serve our customers’ needs. We also plan to
aggressively pursue recurring revenue opportunities with existing customers. We intend to expand our
product offerings in high-growth, emerging markets where we believe we can capitalize on the skills
and technologies that we have developed in our existing markets. By working closely with our Safety
Products segment, we intend to develop offerings that address key technologies driving customer
demand, such as mass notification, as well as new business generated from changes and expansions in
fire and life-safety codes and standards. We will continue to promote operational excellence by
standardizing internal processes across business units and consolidating back office capabilities.
Services and Products
We design, sell, install and service fire alarm and fire detection systems, automatic fire sprinkler
systems and special hazard suppression systems. Fire Protection Services operates under various leading
trade names, including SimplexGrinnell, Wormald, Mather & Platt, Total Walther, Dong Bang, Zettler and
Tyco. A significant portion of the components used in our fire detection systems are manufactured by
our Safety Products segment.
We offer a wide range of fire alarm and fire detection systems. These alarm and detection systems
include fire alarm control panels, advanced fire alarm monitoring systems, smoke, heat and carbon
monoxide detectors, voice evacuation systems and emergency lighting systems. We also offer a wide
range of fire suppression systems, the majority which are water-based sprinkler systems. In addition, we
provide custom designed special hazard suppression 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 suppression in certain manufacturing, power generation, petrochemical, offshore
oil exploration, transportation, data processing, telecommunications, commercial food preparation,
mining and marine applications.
2008 Financials 5